An appraisal of budgeting and budgetary control in the Nigerian public enterprises

An appraisal of budgeting and budgetary control in the Nigerian public enterprises

CHAPTER ONE

1.0. BACKGROUND OF THE STUDY.
In recent times, electric power supply in the country has not be stable, this is also applicable to the federal capital territory, Abuja especially the satellite towns. Regularly, annual budget exist in the power holding company of Nigeria (PHCN) Abuja to guarantee steady power supply but reverse is always the case implementation.

This anomaly however necessitates the need to study their budget control and feedback system. A budget project to public or organization details of short and long term plan or objectives of an organization will be able to monitor and assess the workability of any plan or policy it has put in place.

Budgetary control aims at forestalling sanity towards achieving the organizations set target. Budgetary control helps an organization to be focused and grow rapidly. In maintaining an effective budgetary control, it is important to put in place a system that shows the responsiveness of the staff especially those in managerial level to these control and the attitudes of those staff to it.

The way and manner these responses are synchronized and managed by the organization determines the organizations growth. Having prepared the budget and necessary control put in place, there must be a feedback system to monitor implementation. Unfortunately, this area seems to be lacking in the case of power holding company of Nigeria Abuja. It should be noted however that the acquisition of new transformer and other basic material that would ensure stability of power supply in Abuja and its environ are always contained in power holding company of Nigeria Abuja yearly budget. Regrettably, system remains a mirage.

1.1 STATEMENT OF THE PROBLEM
Budgets are prepared and the general expectation is that the result should conform to the budget. Budget is a yearly ‘ritual’ for both private and public corporations like power holding company of Nigeria (PHCN) Abuja. One of the major problems of budgeting is the ability to actualize the desired goal. In budget performance evaluation, the issue of checks and balances (control) on the managers whether positively or otherwise needs to be studied.

Moreover, the behavioral attitude of managers and some accountants (they control and formulate) should be addressed in order to achieve an effective budgeting system. Some management do not involve their departmental managers or heads in budget formulation or process thereby running into problems in implementing the budget proper.

Another problem of budgeting is non-inclusion of tested professional in budget formulation, which may result in under or over estimate of budgetary plans. Above all, some managers are bent on satisfying their personnel interest rather than putting frantic efforts towards achieving the organizations goal. Rather than proper channelling of budgeted funds meant for special projects, they divert them to their personal account thereby, putting the organization in jeopardy.

1.2 OBJECTIVE OF THE PROBLEMS
Many texts on budget have emphasized on procedures of budgeting and the problems resulting from typical budgeting system such as parameter of setting limits, types of control measures to be put in place and how expected resources are to be obtained. This study however goes beyond typical budgeting system and problems.

This research work has the following objectives.

i. Its aims at looking at the conducive result whether the benefits of a budgeting process can actually be reaped or not, and the effects of budgeting and budgetary control on the operating managers or heads.

ii. To know whether Power Holding Company of Nigeria(PHCN) Abuja makes proper implementation of budget, I e, using the budgeted funds for procurement of transformers, cables and other accessories towards maintaining power stability in Abuja and its environ.
iii. To determine whether Power Holding Company of Nigeria (PHCN)Abuja has been efficient enough over the years in order to restore consumers confidence in them.

1.3 SIGNIFICANCE OF THE STUDY

i. An electric power consumer in the Federal Capital Territory, Abuja that can boast of steady power supply for one week should be able to make an important or positive remark about power Holding company of Nigeria [PHCN] Abuja. This is because constant supply of electricity will afford business men and government workers the opportunity of improving on their daily productivity.

ii. It will encourage both local and foreign investors to invest in Abuja. We all know that the cost of acquiring and maintaining private power supply is very exorbitant it is therefore the general believe that if power holding company of Nigeria is efficient, many consumer may not care to know about budgeting, its control and implementation in power holding company of Nigeria [PHCN]Abuja. The whole assumption would be that all is well.

iii. This research will provide customers of power holding company of Nigeria [PHCN] Abuja and other numerous consumers the opportunity of assessing the budgets, budgetary controls and implementation in power holding company of Nigeria [PHCN] Abuja. This also will enable them to know whether to reply, stick their necks on power holding company of Nigeria [PHCN] Abuja, or wait patiently for other power providing companies that may emerge due to the ongoing privatization exercise.

1.40 SCOPE AND LIMITATION OF THE STUDY
1.4.1 SCOPE OF STUDY
The role of budget in achieving organizational objectives especially in the public sector cannot be over-emphasized. This study will therefore, be restricted to the operational aspect of budgeting in addition to the stages in the process of budgeting in power holding company of Nigeria [PHCN] Abuja. From the year 2001 to 2014.

1.4.2 LIMITATION OF THE STUDY
In limitation of the study, research work in all ramification must have some kind of limitations, one of the major limitations of a research work is, financial constraint and limited time especially those that are married with children. The research questions will only be limited to residents of Karu, Naynya and Kubwa areas of Abuja.

1.5 RESEARCH HYPOTHESIS.
Reducing waste and efficient utilization of available resource in achieving set targets can be said to be aims of any budgeting system. The following questions are prepared to guide in the conduct of this research.

i. What are the criteria for selecting members of the budget planning committee?

ii. Do managers apply budgetary control measures?

iii. Is there anybody within the organization that is set up to monitor the proper implementation of budgets and subsequently provide feedback on how funds were expended?

iv. Will the involvement of departmental managers or sectional heads in budgets formulation be of any benefits to the organization?

v. What are the disciplinary measures that could be meted to managers and accountants if found guilty of misappropriation of budgeted funds?

1.6 DEFINITIONS OF TERMS.
i. Budget; An estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals.

ii. Budgetary; is a process, this means budgeting is a number of activities performed in order to prepare a budget.

iii. Budgetary; An estimate, often itemized, of expected income and expense for a given period in the future.

iv. Budgetary control; methodical control of an organizations operation through establishment of standards and targets regarding income and expenditure, and a continuous monitoring and adjustment of performance against them.

v. Control; the power to influence or direct people’s behavior or the course of events.

vi. Public; of or concerning the people as a whole.

vii. Public enterprise; a business organization wholly or partly owned by the state and by controlled through a public authority.

---

REQUEST FOR PROJECT MATERIAL

Good Day Sir/Ma,

WARNINGS!

PLEASE make sure your project topic or related topic is found on this website and that you have preview the abstract or chapter one before making payment.

Thanks for your interest in the research topic. The complete research work will cost you N2000 and we will send the material to you within 24hours after confirming your payment.

Make the payment of N2000 into any of the account number below and we will send the complete material to you within 24hours after confirming your payment.

Account Name: Agada Leonard E
Account No: 2070537235
Bank: UBA

Or

Account Name: Agada Leonard E
Account No: 3049262877
Bank: First Bank

Or
Account Name: Agada Leonard
Account No: 0081241151
Bank: Diamond Bank

After payment, send the following information to us through this email
address: enemsly@gmail.com

Topic paid for:
Amount Paid:
Date of Payment:
Teller No or Transaction ID:
Name of Depositor:
Depositor Phone Number:
Email address:

NOTE: The material will be forwarded to the email address you provided
within 24hrs after confirmation of the payment.
Thanks.
Agada Leonard E.
For: Enems Project.

 For more information visit our contact page @ CONTACT US

---