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THE ROLE OF BUDGETING IN GOVERNMENT PARASTATALS ACCOUNTABILITY (A CASE STUDY OF ENUGU STATE HOUSING DEVELOPMENT AUTHORITY)

Amount: ₦5,000.00 |

Format: Ms Word |

1-5 chapters |



ABSTRACT

The aim of this project is to address the role of budgeting in government  parastatals  accountability in Enugu State Housing Development Authority. It stresses the usefulness of budgeting and budgeting controls in government accountability. The major problems is the inability of organizations to plan and accomplish goals which can be traced to their inability to apply controls and accountability in the budgeting system. The researcher uses both primary and secondary data but reliance was placed more on primary data because of its relative factual nature. They include personal   observation,   interviews,   questionnaire,   about   60 personnel   of   the   organization   were   interviewed   and   their responses analysed by simple percentage. The major findings reveals that there is a great degree of relationship between budgetary implementation and their actual performance. This lack or no implementation of the budget hinders the achievement of the organizational goal. Budgetary control also as a management tool contributes to efficiency and effectiveness of management productivity. The researcher based on these findings proposes many recommendations. Which include educating the other levels of  management on the importance of adhering strictly on the provisions of the budgets and implement it as such. The organization should adopt technique that is easy to implement which include flexible and zero based budgeting techniques. The researcher concluded that when budget are effectively implemented at all levels, it will become an essential standard in ensuring actual performance.

CHAPTER ONE INTRODUCTION

1.1    BACKGROUND OF THE STUDY

This project addresses the role of budgeting as a tool for accountability in government parastatals in Enugu State Housing Development Authority. This is not intended to be a complete work on all budgeting system; rather it stresses on the usefulness of budgets in promoting accountability in government parastatals.

Like every other parastatals, Enugu State Housing Development Authority is fast growing, hence the need for accountability becomes necessary with the use of budgeting.

Budgeting  system  is  the  process  involved  in  using  the scarce resources to achieve the desired goals and objectives of the corporation (Ikpe and Oba, 2004:66).

Budget is also seen as a financial or quantity statement prepared and approved prior to a defined period for the process of attaining a given goal or objectives. It may include income, expenditure and employment of capital (ICMA; 2008).

Therefore in order to achieve these objectives, the organization must deploy the economic resources and

discover the means of achieving these goals. These goals can only be realized when the properly planned use of available resources are controlled and coordinated effectively.

Thus  the  system  of  managing a business  by making a forecast of different activities imperative.

These forecast are guided by the formulation and adoption of planned systems such as techniques in budgeting variance analysis etc. Budgets may be prepared for the firm as a whole or smaller units like departments, operations like production and sales, financial and resource items like personnel, purchase, cash and capital expenditure etc.

Budgetary control at same time is a system of controlling cost through the preparation of budget coordinating departments, establishing responsibilities, relating the responsibilities of the executives to the requirements of a policy. It entails comparism of actual performance with the budgeted and ensuring that the remedial  actions  are  taken  promptly to  achieve  organizational objectives.

It is therefore germane to say that the level of importance that is attached to these plan and effort made in

controlling the variance differ in organizations once goals are set which must be based on the detailed analysis of feasibility within the content of political and social values and the financial plans will be enable to strive towards its attainment.

Often than not when these plans are put into operation, condition prevails which tends to cause deviation to the plan and corrective controls and measures are always taken to steer the business back on the right track.

The process already mentioned as it is applied entails budgets and its control. And to lend credence to goal congruence, suitable techniques should be applied to specific areas needs. Special attention, hence the measurement of budgeted with actual to arrive at variance cannot be over emphasis. A business is said to be on the right track; if the outcome of budgeted estimates is favourable as against the actual.

Enugu  State  Housing  Development  Authority  a  Historical

Background

The history of Enugu State Housing Development Authority started in the days of East Central State Housing

Development Corporation that was established in 1971; by Ajei

Ukpabi Asika’s administration.

It was charged with the responsibility of building houses and estates to be used for both industrial and residential purposes.

However, following the creation of states by the then Murtala Mohammed government in 1976, the corporation was renamed Anambra State Housing Development Corporation owing to the splitting of East Central State to Anambra and Imo States.

In 1991, the government of Ibrahim Babangida once again created Enugu State from the Old Anambra State thus changing the name once again to the present Enugu State Housing Development Corporation.

The corporation began its operation by utilizing the premises and facilities of the old East Central State and Anambra State Housing Development corporation, while the present staff were made up of employees of former corporation of Enugu State origin and new employees.

Organizational Structure

The corporation followed the line and staff method of organization. It shows who performs the actual functions of the organization and those that performs the support or auxiliary function.

Line functions are those who performs the functions as plan, layout, location and actual construction of the buildings while the support functions are those who do the other administrative function, like, personnel department, public relation departments

etc.

Edict No. 10, of 1991, clearly established the corporation and stipulates the functions of the board in section 5 which is the governing body of the corporation and shall in its capacity, manage the corporation, Exercise all the functions and powers of the corporation, and perform all other business functions as relate tot he edict.

1.2    STATEMENT OF PROBLEM

The  success of any business organization rest upon its ability to adopt a well organized budgeting and budgetary control system.

Lack of budgeting system in planning and controlling has resulted in indiscriminate spending of scarce funds meant for use in viable projects and activities. The results in many problems for many organizations which include;

1.Inability of the company to plan and accomplish goals which can be traced to their inability to apply controls and accountability in the budgeting system.

2.Budgeting goals are not fully realized due to low level of understanding of middle and low level managements.

3.Improper accountability of past jobs performed has resulted in management not being able to use past information to make proper and accurate budget for the future which leads to ineffectiveness and inefficiency.

4.Improper coordination of various cost centres and information on job progress are delayed and this results in delay of prompt management decisions.

1.3    OBJECTIVES OF THE STUDY

The primary purpose of this study are:

1.To  find  out  the  role  of  budgeting  and  budgetary control  in government parastatals.

2.To find out whether there is a relationship between budgetary implementation and their actual performance.

3.To determine whether budgetary control as a management tool contribute to efficiency and effectiveness of management productivity.

4.To find out whether budgetary control can be used in assessing management budgeting accountability.

1.4    RESEARCH QUESTIONS

The following questions will be addressed in this study.

1.What  role  do  budgeting  and  budgetary control  play in  your organization?

2.To what extent do budget implementation and their actual performance relates?

3.To what extent does budgetary control enhances management productivity?

4.What are the significant relationship between budgeting control and management accountability?

1.5    HYPOTHESES

Ho:Budgeting does not play any role in government corporation.

Hi:Budgeting      plays      a      vital      role      in      government organization/corporations.

Ho:There is no relationship between budget implementation and

their actual performance.

Hi:There is a relationship between budget implementation and their actual performance.

Ho:Budgetary control does not enhance management productivity.

Hi:Budgetary control does enhance management productivity.

Ho:There is no significant relationship between budgetary control and management accountability.

Hi:There is a significant relationship between budgetary control

and management accountability.

1.6    LIMITATIONS OF THE STUDY

The limitation of this study are:

i)Financial constraints on the part of researcher.

ii)Time constraints on the part of researcher and school timetable on the MBA programme.

iii)Government secrecy: the corporation personnel are not willing to release information in the course of this research and thus hinders the details.

1.7    SIGNIFICANT OF THE STUDY

The research is so useful in several ways:

Firstly, the government will benefit immensely from the findings and recommendations. This study will highlight the problems associated with inadequate budgetary control in government business. It will also help government on how they will effect controls in their businesses.

Secondly, corporate organizations will utilize the recommendations to effect proper budgetary control is all their affairs to ensure accountability in all its businesses.

Thirdly, the society at large will benefit because accountability will eradicate corruption. This will ensure that

all projects and activities budgeted for are completed and on the specified periods of time to their benefit.

Finally, this project study will be useful for academic purposes. It will act as a data bank to those who will carry out further study on the field in the future.

1.8    SCOPE OF THE STUDY

The study focuses on using budgeting as a tool for accountability in government and its parastatals.

However, its scope covers; the role of budgeting, the relationship  between  budgeting  and budgetary controls  budget implementation and its performance and budgeting controls and accountability in management.


This material content is developed to serve as a GUIDE for students to conduct academic research



THE ROLE OF BUDGETING IN GOVERNMENT PARASTATALS ACCOUNTABILITY (A CASE STUDY OF ENUGU STATE HOUSING DEVELOPMENT AUTHORITY)

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