IMPACT OF BUDGETARY CONTROL IN LOCAL GOVERNMENT ADMINISTRATION

IMPACT OF BUDGETARY CONTROL IN LOCAL GOVERNMENT ADMINISTRATION

(A CASE STUDY OF OTUKPO LOCAL GOVERNMENT AREA, BENUE STATE)

ABSTRACT

The researcher examined the budgetary control in local government, more local government specifically it to Otukpo local government area as the case study. Therefore, examined the present of budgetary control system being practiced in Otukpo local government. The purpose of this research work is to know the two basic method of data collection and how it has been employed in the collection of budgetary control in Otukpo local government and how they prepare budget as a means of development, this system confirm through research assumption earlier postulated in the research work. The budget has been an effective and efficient instrument of control and constantly being compared with budget estimates. So deviation and variance are corrected in good time. With the peculiar difficulties associated with budgetary control and its subject could be done in a way that be of benefit for an efficient budgetary control system can be properly be reaped.

CHAPTER ONE

Introduction

1.1    Background of the Study

Every organization is set out to achieve on objective or the other such objective is usually streamlined through the planning process. Good planning process involves pre-determining what is expected to happen in future. It brings about reliability the best laid down plans may failed either because there is occurrences of unfavorable event. Which are external to the people and beyond their control? It is a result of this effect that management control is installed. Management control is concerned with the process of ensuring that the human physical financial and technological resources of the organization. A minister is judiciously and efficiently such control system.

Homes (1992) defined budget as a plan which deals with future allocation and, utilization of a various resources to different enterprise activities over a given period of time.

Budgetary control is the establishment of departmental budget relating the responsibility of executive to the requirement of policy and the continuous comparison of actual with budgeted result either to secure by individual acts. The objective or the policy provides a four basis at this division (Francis 1990). Generally, budgetary control is a managed techniques used to plan executive and control operation and activities aimed at achieving target a stipulated time frame.

Lexicon (2013) Budgetary control has becomes significant factor for effective and efficient financial management in organization, hence the need for it great importance to the manger together with decision making of modern costing. Therefore, the budget is one of the most important devices for management control both government ministries and private sectors budget is repaid to serve as means of control in the financial management of an organization (Mailumo 1994) What is needed in an organization is a budget that does not conflict with any of the co-operate objective that is why it is necessary to make a series of draft stating with one fairly broad term and ending it successfully with acceptable result are obtained. There are important aspects that have not been given enough emphasis and the continuous comparison of actual with budgetary result have not been given the requirement yield and benefits. This has becomes a problem in the question arises as to what aspect of budgetary and the control adopted is required to yield efficient and effective financial management and what requirement must be satisfied to have a sound budgetary control system. There are some areas of difficulties experiences and are being experienced presently in organization.

1.2     Objective of the Study

The following objective will guide this research work.

• To examine procedure of budgetary control in Otukpo local government council.
• To identify the impacts of budgetary control on the policies of the local government.
• To find out the sources of the revenue, its collection and management in the local government.
• To make useful suggestions and recommendation on how budget can be planned control and implemented for benefit of the organization.
• To make critical look at the existence of the budgetary control system in the local government.

1.3    Significance of the Study

Budgetary control is of great importance to the individual corporate bodies and the government in particular because, it serve as a guide, procedure and operational tools for achieving the actualizing the significance of budgetary control in all field of life. It will among others provide a way of determining cause of all deviation from standard. This will provide a basic for corrective actions. It serves as a benefit and point of references to other tires of government because it will guide then in their activities they undertake. It will also serve as an example to other business enterprise as its guide them in their planning. The study will help the management of the public sector to re-adjust budgetary executive and control of the limited resources.

The study will help the student in their research work and even the future academic researcher. Lastly, educationalist, researcher, critics and student may discover this research as a goldmine composed of significance and interesting.

1.4    Scope and Limitation of the Study

The scope and limitation of the study is to analysis the budgetary control references of Otukpa local government council which is to be serve as guide to this research work, would also guide the researcher in an organization where there is budget in an organization which control system of funds would be adequately implement so as to prevent and protects mismanagement or misappropriate on funds. This research work is for year (2009) which is taken into consideration to serve as a means of looking at the ways budget is being implemented and how budget is being in controlled in Otukpo local government and to know how the local government fund is been raised and utilized.

This research work like any other research is surrounding by certain constraint otherwise known as limitation that militate against the smooth process of the reserve on some official documents of the government establishments. It was very difficult to get enough materials for the project. The lukewarm attitude of some respondents to the researcher has tried as much as possible to see that the objectives of the research work have been achieved to reasonable extents.

1.5    Research Hypothesis

HO: budgeting plays no significant role in planning.

HI: budgeting plays significant role in planning.

1.6    Definition of Terms

Capital budget:

 Capital budget in the sense that, it’s the investment of each potential project values should be estimated using a discounted cash flow valuation to find its net present value. It also defined budgetary control as system of managing a business by applying a financial value to each forecast activity.

Budget officers:

Defined a budget officer as a trained professional who work to keep the budget balance, for a company over a set a period. He is often expected to plan and make changes to the budget as it needs to improve over time.

Budget:

 Budget as a plan for the accomplishment of programs related to objective and goals with a definite time period.

Local government:

Is a form of public administration which in  a majority of context, exist as the lowest tire of administration within a given state. As such local government is the government of the people at the grassroots.

Local government administration:

Is a sub-governmental organ or body created by the central government or at of parliament to be in charge of political administration of a locality or a local unit in a state.

---

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

---