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THE IMPACT OF BUDGETARY CONTROL IN LOCAL GOVERNMENT ADMINISTRATION A CASE STUDY OF OHAFIA LOCAL GOVERNMENT IN ABIA STATE

ABSTRACT

This project “ The Impact of Budgetary Control in the Local Government Administration” is an attempt to analyze and evaluate  the level of success made in the implementation and management of budgetary control in Ohafia Local Government Area, Abia State. The research discovered vast waste of resources, inability to forecast and predict value, inability of management to meet her objective as a result of in appropriate budgeting and these are considered as problems facing the organization. The research tends in many ways remediate their problems, the research tend to measure the effective use of budgetary control and to evaluate performance based on variation of the actual and budgeted. Personal inter-view was conducted and questionnaire was designed in a view of obtaining data that will help in the course of this research. A  touch is also made on the analysis of data in order to prove its viability.  The budgeting process starts with a circular flow from the state burea of budgeted and planning. The receipts of the circular forms the busiest period of the budgeting after which the committee coordinates and collect all budget input of the organization. Based on the finding the following recommendations were made include seeking governments assistance for find to implement the program, government approval for  corporation to eliminate institution weakness and proper accountability which is the central management control system.

TABLE OF CONTENTS

Title page                                                      i

Approval page                                                ii

Dedication                                                      iii

Acknowledgement                                          iv

Abstract                                                         vi

Table of contents                                            vii

CHAPTER ONE

Introduction                                     1

Background of the study                   1

Statement of the problem                 3

Objectives of the study                     4

Research questions                           5

Scope of the study                            6

Limitation of the study                      8

Operational definition of terms           10

CHAPTER TWO

Literature Review                                    14

Brief History of the case study                  14

Definition of Budget                                 15

The Budget control process                      19

Types of Budget for planning and control  21

Objectives of keeping a Vote book            22

Budget Preparation                                  23

 The process of Budgeting                        25

CHAPTER THREE

3.0 Research deign and methodology               27

3.1 Introduction                                             27

3.2 Sources/ Method of data collection             27

3.3 Population and Sample size                       30

3.4 Method of data analysis                             31

CHAPTER FOUR

4.0 Presentation and Analysis Of Data                            32

4.1 Presentation of data                                         32

4.2 Analysis of data                                               34

CHAPTER FIVE

Summary, Conclusion and Recommendations    53 

5.1  Summary of findings                                       53

5.2  Conclusion                                                     55

5.3  Recommendations                                          56

       Bibliography                                                   58

       Appendix                                                       59

       Questionnaire                                                 60

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Performance evaluations have been considered as one of the core problems facing our organization today, to measure manpower and machinery contributions to actualize the mandate of the organization. in recent years, this problems have been attributed to the large dispention of fund (cash) which most times have caused over seen in management operation, and have maintained a large negative effects not only to the organization but to the general economy to remediate this problem and associated effects management have seek ways of harnessing these operation by running a check on the budget and budgetary control.

Osondu 20.173, defined a budget as a plan of action qualified in monetary terms while budgeting refers to be act of preparing budgets. They are based on predetermined objectives and represents what is likely to happen after a careful consideration of the priorities of the organization “budgeting” can be described as the process of efficiently allocation of resources to unlimited objectives. Here a budget which could be said to be a pre-determined statement objectives during a given period, a standard for companies with the result actually achieved.

Chartered institute of management accountants (CIMA) defined a budget as a financial as a quantitative statement prepared and approved prior to a defined period of time of the policy to be pursed during that period for the purpose of a given objective.

STATEMENT OF PROBLEM

This research explores the effective use of budgetary control in local government administration, it intend to find out the effectiveness of management control system with special interest to budget and budgetary control among others, it has been discovered that;

Inability of management and organization to meet her mandates is based on inappropriate budgeting.

The vast waste of resources, “Financial resources” are as a result of lack of budgetary control in organization.

Ability to forecast/predict value using the budgetary trend in organization. these are considered as problems facing the organization through the use of budget and its control as this research trends to in many ways to re-mediate these problems.

HOW TO RECEIVE PROJECT MATERIAL(S)

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