A Critical Analysis of Budgetary Control: Its Effectiveness and Efficiency in a Non Profit Making Organization

A Critical Analysis of Budgetary Control Its Effectiveness and Efficiency in a Non Profit Making Organization

A Critical Analysis of Budgetary Control Its Effectiveness and Efficiency in a Non Profit Making Organization

 

Quick Navigation for Final Year Undergraduates, Masters (Thesis), and Ph.D. Dissertation Students Who Need Our Services on Their Research Works

Find More Project Topics FIND HERE
Hire Us for Thesis Works HIRE NOW
Hire Us for Project Works HIRE NOW
Hire Us for Seminar Works HIRE NOW
Hire Us for Assignments HIRE NOW
Hire Us for Proposals HIRE NOW
Contact  Us HERE NOW

 

DOWNLOAD FULL PDF WORK

 

Abstract on A Critical Analysis of Budgetary Control: Its Effectiveness and Efficiency in a Non Profit Making Organization

This research work will be a very crucial study for non profit making organization in Nigeria. The role of non – profit making organization in any economy is indispensable. To give this effort proper direction, it is identifiable that the key ingredient in translating this dream into reality is to bring about a clearer understanding of the need for an effective and efficient budgetary control in a non – profit making organization. The research will be carried out through series of oral interviews and distribution of questionnaire in collection of data and relevant information to the employees of national cereals research institute Badegi. The data collection will be analyzed as well as interpreted by there researcher from the testing and proofing of hypothesis. Inorder for the company to achieve their objectives the researcher will recommend that there should be budgetary control so that works will be aware of the objective of the organization and sud- ordinates opinion considered in the preparation of the company’s budget estimate. 

Chapter one on A Critical Analysis of Budgetary Control: Its Effectiveness and Efficiency in a Non Profit Making Organization

INTRODUCTION

The essence of budgeting is to provide an essential element of control in an organization in order to facilitate the achievement of set objectives .The control process is the fundamental organization link between the manager and the other people in an organization in a non profit making organization output various with the objective with which they were established. The objective of public organization could be social and or development in nature, however this does not means that public organization can not make profit if government policy changes to privatizing or commercializing them. The main structural problem of these type of organization is the sacrifice of the organization profitability for social efficacy which must be achieved in research institute Badeggi falls into this category. With the use of budget as a control tool, there is Ned for planning a the performance of an organization. Planning as defined by C.I.M.A is an the establishment of objective and the formulation evaluation and selection of the formulation of the policies strategies tactics and action required to achieve these objective, by planning activities in advance more economical use is made of the organization resource and facilities and a fairly accurate estimates of it s future resources requirement can be determined.

One of the outstanding features of budgetary control is that policy plans resource s and activities of the organization are coordinated integrated and controlled to achieve the desired objectives. Budgetary control is a means of providing some centralizing control where activities and also responsibilities are decentralized. It is also the use of budget for assigning responsibilities planning and controlling performance and guiding managerial and other activities of the firm towards the achievement of organizational objectives. It involves, setting out clearly defined forgets of output, income and expenditure for each section of the organization. Embodying these forgets of performance in sectional divisional and departmental budgets co0mpariing these budget standards with actual performance, identifying deviations or variances from the budget and taking corrective action or bringing performance in line with budget targets .this is because all the heads of departments in the organization are involved in the preparation and implementation of budgets, while management5 control the whole activities of the organization.

Budgets are prepared as a result of committee work, each committee constituting of representatives of various departments and functions to be controlled the heads of departments are responsible for the respective department budget. Each executive or manager can then fully appreciate his responsibilities, as they are reflected in his department budget .Any deviation of the actual result from the estimate and forecast are traced back to the department head or manager.

PURPOSE OF THE STUDY

Most of the non profit making organization in Nigeria are governmental in nature, this is because they are mainly set up for social and developmental purposes, this usually leads to a poor planning and control measures. The purpose of this study is to critically analyze the budgetary control system as a planning tool in non profit making organization using National cereals Research institute as a case study. This research work intend to bring about clearer understanding of the need for an effective and efficient budgetary control in a nonprofit making organization which will also be of benefit to other similar organization leading to an improvement in government owned organization budgetary control system.

STATEMENT OF PROBLEMS

Public sector and other nonprofit making organization are often noted for inefficiencies and poor management, which is as a result of poor planning through repetitive budgeting. Recent studies in the area of budget and resources allocation have shown lack of proper analysis. There is a general lack of the concept of why we have a budget at all. This issue calls for immediate investigation of budgeting as a tool for resources planning and performance control and to recommend how it can function properly.

Read Also:  The Impact of Working Capital Management of the Productivity of a Manufacturing Company

OBJECTIVES OF THE STUDY

The main objective to be achieved from this research work is that, it will; serve as a means of measuring the output or the work performed and to compare it with the cost of input. This comparison provides a basis for indicating efficiency and effectiveness.

The process of comparing actual results with planned and evaluating variance if any set a control frame works which help expenditure to be kept within an agreed limit. If this deviations are noted, so that action can be taken to correct this in the future.

SCOPE OF THE STUDY

The study intend to cover budgetary control as it affect National cereals Research institutes (N.C.R.I). It will examine its budgeting control as a measure of performance.

RESEARCH QUESTIONS

The followings are the research questions of the study.

a. Was there any Decree /Act by Government that established the institute? (If any, quote with date.)

b. What are the objectives of the Federal Government in establishing the institute?

c. How does the institute relates with the ministry?

d. What is the organization structure of the institute like?

e. Looking at the organization structure, what are the function of this department? 

2. Funding / Expenditure

a. How do you budget for the institute / or what are the Department that participate in the preparation of budget and disbursement of the fund to Department etc?

b. Do you have a budget committee for the preparation of budget. What does it comprise of? 

c. It is understood that Federal Government plays a major role in funding, what are the other sources of fund, with regard to sponsorship, loans, etc. Take a look at three consecutive financial fear.

3. Budgetary Control 

a. How does the management control the activities of the institute with regards to administration of budget, in respect of resources, personnel etc?

b. Is there any external monitory agent from the parent ministry that supervise the management? How is this carried out?

RESEARCH HYPOTHESIS 

The underlisted hypothesis from the framework for carrying out the study.

Ho: Budgetary control effective and it s efficiency is not facilitated by the financing inducing role of government.

Hi: Budgetary control effectiveness and its efficiency is facilitated by the financial inducing role of government.

Ho: Effectiveness and efficiency of budgetary control does not depend excessively on the provision of basic infrastructures.

Hi: Effectiveness and efficiency of budgetary control expends excessively on the provision of basic infrastructures.

Ho: Budgetary control are not the hallmark for development of the economy.

Hi: Budgetary control are the hallmark for development of the economy.

RESEARCH QUESTIONS

1. How effective is the financial inducing role of government towards non profit making organization by the use of access to borrowing loans etc? 

2. Does inadequate infrastructure facilities like access good road telecommunication, electricity etc. effect budgetary control in on profit making organization? 

3. Has establishment promotion and development of non profit making organization been identified as a strategy to tacking poverty and sustenance of economic development.

4.  Has the funding of non-profit making organization contributed satisfactorily to budgetary control effective in the development of the economy.

5. Does non profit making organization has the hall mark for development of economy.

LIMITATION OF THE STUDY 

The constraints include:

Time factor, the period within which the research work is expected to be completed is rather two short for any meaningful work to be done. 

Financial difficulty, considering the bad economy situation in the country, effort to have sufficient research material to be able to write extensively on the Subject matter proves abortive. 

LACK OF ADEQUATE RESEARCH MATERIAL 

Many libraries visited offered little help as regard text books for the project. 

POOR RESPONSE FROM THE EMPLOYEES 

The employees are unable to disclose some information about the company which made some difficulty in writing the research work.

DEFINITION OF TERMS 

Actual Performance: Is the real facts on how well or badly the targeted objective was achieved. 

Budget: Is a statement showing how money will be spent over a period of time.

Critical: Expressing disapproval on the expected performance.

Efficacy: The ability to produce 

Effectiveness: Ability to produce the intended or actual result being 

efficacious and efficient. 

Evaluation: Finding out or stating the value of something. 

Forecast: To budget in advance what is likely to happen.

 

DOWNLOAD FULL PDF WORK

Disclaimer

This research material is intended for academic use only and should be used as a guide in constructing your research project and seminar presentation. You should never duplicate the content word for word (verbatim), as SCHOOLTHESIS.COM will not be held liable for anyone who does.

The purpose of publishing this material is to alleviate the stress of hopping from one school library to the next in search of research materials. This service is lawful because all educational institutions allow students to read past projects, papers, books, and articles while working on their own.

SCHOOL THESIS is merely giving this information as a research reference. Use the document as a reference or structure for your own research paper. This paper’s content should be able to assist you in coming up with new ideas and thoughts for your own study

A Critical Analysis of Budgetary Control: Its Effectiveness and Efficiency in a Non Profit Making Organization research paper, should only be used as a guide.