The Impact of Budget Implementation in an Organization, a Case Study of Niger State
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To ascertain whether frequent change of administrators in the ministry affect the budgeting process in Niger state.
- To determine how budget implementation can be enhanced in Niger state.
- To ascertain major causes of poor budgetary implementation practices in Niger state.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
BUDGETARY IMPLEMENTATION
A precise definition of budget might equally be misleading or one sided. The accountants see budget from preparation perspective. Management understands it from implementation aspects, while the behavioural scientists views it from the human implication aspects. As non of these views is entirely irrelevant or encompassing, an attempt must be made to combine the salient facts of the views to obtain the best functional definition of budget. The concept, budget, according to Horgreen et al (1990:148), must be conceived as a formal quantitative expression of management plans. He went further to state that the master budget summarizes the goals of all subunits of an organization sales, production, distribution and finance. It quantifies targets for sales, production, net income and cash position and any other objectives that management specifies. However, Lucy (1980:313) described a budget as “quantitative expression pf a plan of action prepared in advance of the period to which it relates. “This suggests that the process of preparing and agreeing budgets is a means of translating the overall objectives of the organization into detailed feasible plans of action. A more comprehensive definition of budge is the one given by the institute of cost and management accountants (ICMA, in Pickless (1974:3154), which defines budget as “a financial and quantitative statement, prepared and approved prior to a defined period of the policy to be pursued during that period for the purpose of attaining a given objectives”. From the on-going contributions of different writers and bodies, budget may be taken to mean a plan, quantified in monetary terms prepared and approved prior to a defined period of time and usually under a state to display planned income to be generated and /or expenditure to be incurred, equally the capital to be employed to attain the underlying objectives. On the other hand budgetary implementation according to smith et al (1948:587) is “the actual execution of the budget plan with special efforts being directed towards corrective action when departures are revealed”. Implementation is an integral part of policy formulation. According to Harcourt G.C et al (1973:27), “it is a system of controlling costs which includes the preparation of budgets, coordinating the departments and establishing responsibilities, comparing actual performance with the budgeted and acting upon results to achieve maximal profitability.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the impact of budget implementation in an organization, A case study of Niger State
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information the impact of budget implementation in an organization, A case study of Niger State. 200 staff of ministry of works and housing in Niger state was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
DATA ANALYSIS
The data collected from the respondents were analyzed in tabular form with simple percentage for easy understanding.
A total of 133(one hundred and thirty three) questionnaires were distributed and 133 questionnaires were returned.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was the impact of budget implementation in an organization, A case study of Niger State. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of budget implementation in an organization
Summary
This study was on the impact of budget implementation in an organization, A case study of Niger State. Three objectives were raised which included: To ascertain whether frequent change of administrators in the ministry affect the budgeting process in Niger state, to determine how budget implementation can be enhanced in Niger state and to ascertain major causes of poor budgetary implementation practices in Niger state. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staffs of works and housing in Niger state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made directors, administrative staffs, senior staff and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
On the basis of findings in this research work, the following far conclusions were reached. Efficient budgetary implementation practices are so important that its role in the efficiency of any business establishment cannot be over-looked. For any business establishment to thrive, it must adopt a procedural method of estimating for actions it intends to achieve in future (budgeting) and work persistently in line with it (budget implementation). Based on the result of the findings, it has been identified that the budgetary implementation practices in construction companies (megastar technical and construction company limited) is not commendable. Laissez- faire attitude of budget official (personnel‟s towards work), manipulation of budgets by corrupt officials, non adoption of budget standards and principles, role conflict between budget staff and line personnel, budget abandonment as an ordinary paper work that should be carried out for formality, over exertion of external control on major policy decision were all evident in megastar technical and construction company limited.
Recommendation
- TIMELY RELEASE OF BUDGET: owing to the problems of late release of budget especially in a highly inflationary economy, the researcher recommend that budgets should be made available before the inception of the period which it serves. This will check over and or under spending which has always been occurring.
- EFFICIENT MONITORING: It is recommended that a committee be set in each department to check how budget has been implemented as the month or year goes on. The report of this committee should be submitted to the company executives monthly or yearly as the case may be. The executives after receiving the report from the committee should take proactive measures immediately based on the recommendations of the committee.
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