The Role of Budgeting in Tertiary Institutions Management (a Case Study of the University of Uyo)
Chapter One
OBJECTIVES OF THE STUDY
Budget and budgetary control, is intended to serve the management as a constant reminder of the plan they have adopted. As such, it provides a blue print they can consult from time to time as they work to implement the sense, it serves as a set of general instructions of the department / management and divisional management reflecting them the actions they have agreed to take and to results they have agreed to strive for. In summary of the following, budget and budgetary control has the below mentioned objective:
1) To examine the benefit of budgeting in the management of tertiary institutions.
2) To know the level of implementation of budgeting in the administration of tertiary institutions
3) To identify the challenges of budget implementation in tertiary institutions.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
The concept of Budget
Omolehinwa (2002) sees budget as a plan in an organization expressed in monetary terms and subject to the constraints imposed by the participants and the environments, indicating how the available resources of the organization may be utilized in order to achieve whatever the objectives of the organization. According to Brown and Howard (2002), it is a predetermined statement of management policy during a given period which provides a standard for comparison with results actually achieved. Also, Buyers and Holmes (1984) defined budget as a financial and/or quantitative statement prepared and approved prior to be pursued during that period for the purpose of attaining a given objective. To Cope (1994), it is a comprehensive plan expressed in financial terms by which an operating programme is effective for a given period of time (usually one year) including estimates of the services, activities and projects comprising the programme, resultant expenditure requirement and the resources usable for their support.
Budgetary Control
Budgetary control is defined by CIMA, (2005) as the establishment of budgets relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by individual action the objective of that policy, or to provide a basis for its revision. Budgetary control is a system of controlling costs and resources which includes comparing actual performance with the budgeted performance and subsequently acting upon the actual results to minimize variance and achieve maximum returns. In essence, budgetary control is purported to ensure that the activities carried out are providing the desired results. Budgetary control: refers to any management approach that involves setting some kind of targets, regularly measuring variances between the original targets and actual outcomes, and motivating people to reduce those variances.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine the role of budgeting in tertiary institution management. University of Uyo form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the role of budgeting in tertiary institutions management. 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 the role of budgeting in tertiary institutions management
Summary
This study was on the role of budgeting in tertiary institutions management. Three objectives were raised which included: To examine the benefit of budgeting in the management of tertiary institutions, to know the level of implementation of budgeting in the administration of tertiary institutions and to identify the challenges of budget implementation in tertiary institutions. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from University of Uyo. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Throughout discussion in this study it has been discovered that tertiary institution cannot be administered without an effective budgetary system by virtue of the research work we have undertaken. It is vital to conclude that budgeting is probably the most wide range and financial techniques used within an organization. Although, accountants tends of be the centre of budgeting activities all officers should involved in budget preparation and budgetary control. Apart from the above points budgets carry certain potential benefit including plan1ning decision making is effectively operated at all level of management. To this fact, co-operation between non financial executive and accountant is essential for the smooth running of budgeting and budgetary control system in tertiary institution.
Recommendation
The preparation of budgets in higher institutions meets a standing budget committee to care for the issue of budgeting in the institution. it is pertinent to recommend the university of Benin should make it possible committee to take the outstanding responsibility.
The provision of a budget manual should not be left out as the continued is of the paramount importance to the budget preparation stages. The reliance and government director should be a secondary guide and a sole instruction and information for the preparation of budget in the institution.
Forecasting is a judgment that can be made by anybody these persons should be competent to make such judgment such as complying with the institution objective when in used.
References
- Batty, J. (1982). Management accounting. London: Macdonald and Evans Ltd.
- Cope, O.K. (1994). Operations analysis: The basis for programme budgeting, performance budgeting and unit cost accounting for government unit. USA: Chicago Press.
- Beckett, J. (2002). Early budget theory: The progressive theory of public expenditure in Khan, A. and Hildreth, W.B (Eds.). budget theory in the public sector,London: Quorum Books.
- Brown J.L. & Howard, L.R. (2002). Principles and practice of management accounting. London: MacDonald and Evans Ltd.
- Buyers & Holmes. G (1987). Principles of cost accounting, (4th ed.). United States: Cassel Limited. Chartered Institute of Management Accountants (2000). Management accounting official terminologies. CIMA.
- Dork .O. (1975) Dictionary terms of accounting Efeyana O. (2002) Fundamentals of financial management, Enugu Emma Publishers.
- Forrester, J. (2002). The principal-agent model and budget theory in Khan, A. and Hildreth, W.B (Eds.) budget theory in the public sector. London: Quorum Books.
