EFFECTIVENESS OF BUDGETING AS A MANAGEMENT TOOL IN THE PUBLIC SECTOR: (A CASE OF ISIALA NGWA SOUTH LOCAL GOVERNMENT AREA)

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE

1. introduction

1.1  Background of the study

1.2  Statement of problem

1.3  Objectives of the study

1.4  Research question

1.5  Significance of the study

1.6  Scope of the study

1.7  Limitation of the study

1.8  Definition of terms

CHAPTER TWO

• Literature review

2.1  Introduction

2.2  The Broad objectives of the annual Budget of a local government

2.3  principles and practices of budgeting

2.4  benefits of budgeting

2.4.1 Budgeting as a motivational tool

2.4.2 Measuring effectiveness

2.5  Computerized budgeting

2.6  Fundamental budgeting principles as a criteria for effective management

2.7  Types of budgeting

2.8  Annual operating budget

2.9  Budgeting process in the public sector

2.10 Stages in budget preparation

2.11 Approaches of budget preparation

2.12 Management use of budgets

2.13 Management by objectives (MBO)

       References

CHAPTER THREE

• Research design and methodology

3.1  Introduction

3.2  Research design

3.3  Methods of data collection

3.4  Population and sample size

3.5  Sample techniques

3.6  Validity and reliability of measuring instrument

3.7  Method of data analysis

CHAPTER FOUR

• presentation and analysis of data

4.1  Introduction

4.2  Presentation of data

4.3  Analysis of data

4.4  Interpretation of result

CHAPTER FIVE

• Summary, conclusion and recommendation

5.1  Introduction

5.2  Summary of findings

5.3  Conclusion

5.4  Recommendation

       Reference

       Appendix

CHAPTER ONE

• INTRODUCTION

1.1  BACKGROUND OF THE STUDY

       Organizations be it public or private sector, finds it necessary to prepare and institute budgeting control for the purpose of translating policies, co-ordinating activities as well as financial control in order to achieve the best possible results in that organization.

       Moreover, one of the most important responsibilities of management is to make sure that more ways or means of introducing new techniques that will help the organization in carrying out its budgetary work, which will reduce the element of uncertainty in making organization decision relating to their budgetary work in the public sector.

       Budgeting is not a new invention, it has a wide application even before the advent of large scale business or governmental organization, but is has not developed to the state where it serves organization the way it should, besides there still exists lack of understanding of what budgets are and how it can be utilized to serve management. Also as the process of management increase in complexity and as the economy increase then the risk in budgeting should plan an increasing important role.

       Furthermore, the effectiveness with which an organization manages its budget has come to be recognized in most instances as perhaps the single, most essential ingredient to large-scale success of an organization. therefore management is viewed from the process as the total management effort, which includes decision making, the application of selected techniques, procedures and motivation of individuals and groups to accomplish specified objectives for management is therefore dynamic and their activities are continuous.

       Moreover, for the purpose of this study, the economy of a country like Nigeria should be understood as falling under two broad categories i.e the public section, which is represented by the three tiers of government namely the federal, the state and local government. Secondly the private section which is financed, owned and run by private entrepreneurs and it is based on the former (public sector) that the whole work has been carried on which confines to Isiala Ngwa south local government.

       Also the public sector just like the private sector adheres to the standard principles of budgeting, note that not all these principles are adhere to practically, especially in the Nigerian context, but it is the (on this basis that the nations financial management is being appraised for the basis of the three tier of government which constitutes the public sector will depend mostly on its budgeting procedures in operation among other factors. A budgeting system procedure which is not accurate with little or no adherence to the standard budgeting requirement will result in a weak management while an effective management all thing being equal is achieved if sound budgeting system with emphasis on the principles and procedures of standard budgeting.

       Budgeting in its final form involves the qualification in monetary terms of the overall objectives which the government has set for itself and for affecting and controlling the numerous activities resulting from its operations which forms their yearly allocation within the overall availability of annual revenue and a part of plan execution. This help to determine the level of resources needed to achieve a plan objective, these resources set the policy for conducting the activities.

       However, if budgets were not adjusted to meet changing circumstances they would be of hindrance, than an aid to management.

       Obviously, budgeting in an organization is much more than accounting, this is because budget is a plan, actual performance is recorded and compared with the plan and necessary actions are initiated whenever planned and actual performance differs significantly since. Budgeting is such a comprehensive operation and involves planning, control and co-ordination. This is a realistic management function and fails within the authority of financial entity.

       Basically, organization budget forces the executives to plan and their activities are properly co-ordinated for adequate records pin-point efficiency and inefficiency for the effectiveness of budgeting as a management tool and the public sector concerns itself mostly on the operational aspect of budgeting such as income and expenditure receipt and payment.

       Also budgeting is a house hold in every organization and it touches the very heart of management because the success of it. Rests largely on the correctness of its assumptions and the support it receives from the subordinates for which it is drawn (Okoro Felix 188-p4).

       Budget has been given varied definitions by various individuals and professionals though they all tend towards one thing-future i.e organizations plans and controls and some of these defines it as a plan expressed in quantitative and usually monetary terms, covering a specified period of time, normally the period covered is one year and C.T Horngren opined that budget is a quantitative expression for a set of time of a proposed future plan of action by management or government and it can cover both financial and non-financial aspect of the plans. Certified institute of management accounts (CIMA) in essence said that budget should represent management policy and plan carefully assembled from different competent sources and tested for feasibility by the management which helps to measure the actual achievement of individuals department.                Finally, properly applied budgeting can contribute significantly to greater efficiency, effectiveness and accountability in the management of an organizations financial resources.