A CRITICAL ANALYSIS OF BUDGETARY CONTROL: ITS EFFECTIVENESS AND EFFICIENCY IN A NON PROFIT MAKING ORGANIZATION
(A CASE STUDY OF N.C.R.I BADEGGI)
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CHAPTER ONE: Introduction
- Purpose of the study
- Statement of the problem
- Objective of the study
- Scope of the study
- Research question
- Research hypothesis
- Limitation of the study
- Definition of terms
- Budgetary control in a non profit organization
- Background information
- And administration of budgetary control
- Budget preparation
- Budget implementation and control process
- Reasons for production of a budgetary control system
- Problems associated with the budgetary control system
- Organization structure
- Research design
- Area of the study
- Population of the study
- Sample and sampling procedure/ technique
- Instrument for data collection
- Validation of the instrument
- Reliability of the instrument
- Method of data collection
- Method of data analysis
PRESETATION OF DATA AND ANALYSIS
- Presentation and analysis of data
- Testing of hypothesis
- Summary of result
- Interpretation of results
CHAPTEWR FIVE SUMMARY/ CONCLUSION AND RECOMMENDATION
- Discussion of results and findings
- Suggestions for further research
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 cmmittee 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.
1.1 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.
- 2 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.