TABLE OF CONTENTS
CHAPTER ONE
1.0
Introduction
1.1 Historical Background of Study
1.2
Statement of Problem
1.3
Objectives of Study
1.4
Research Questions
1.5
Research Hypotheses
1.6
Significance of Study
1.7
Scope And Limitation of Study
1.8
Definition of Terms
1.9
Summary/Conclusion
References
CHAPTER TWO
LITERATURE REVIEW
2.0
Introduction
2.1 Purpose of Budgeting
2.2 Types of Budget
2.3 Preparation of Budget
2.4 The Structure of the Budget
2.5 Budgeting Improvements Techniques
2.6 Performance Budgeting
2.7 Budgetary Control
2.8 Budgetary Control in the Public Sector
2.9 Variance Analysis
2.10 Summary
References
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Data Collection Procedure
3.4 Questionnaire Design
3.5 Identification of Population
3.6 Determination of Sample Size
CHAPTER
FOUR
PRESENTATION
AND ANALYSIS OF DATA
4.1 Introduction
4.2 Data Analysis and Classification
4.3 Classification of Data
4.4 Summary
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Findings
5.3 Recommendations
5.4 Conclusion
5.5 Suggestion For Further Reading
Bibliography
Questionnaire
CHAPTER ONE
1.0 INTRODUCTION
One on the ultimate means of
evaluating the performance of a public sector can be attributed to budget or
budgetary control. Most managers planning and control to determine the goals
and objectives of an organization is geared towards accomplishing all activities
of the organization to achieve its desired goals. In other words, to ensure
that the company will make a projection of its cost and revenue (budget) while
(control) is the cost of ensuring that corrective actions are taken whenever
cost/expenses incurred are not of the same tune with what is budgeted by means
of the management performance evaluation.
Budget, when cost exceeds the expenditure (Surplus)
and expenses may exceed cost (Deficit). It is balanced when cost equals to
expenses.
Budgeting is universal and can be applied in private
and public sectors, since it has the sole aim of achieving its organizational
goals.
According to Wildavsky (1964),
budgeting could serve as a planning purpose. Planning is very vital, that’s why
all business embraces the planning actions to achieve corporate goals. It’s the
process of establishing goals and objectives and courses of action to attain
it. Planning does not really guarantee the success of an organization, because
plans may be futile sometimes due to the faulty performance of the functions of
organizing, motivating and controlling.
In budgeting, the budgets must know the company’s
areas of excellence, areas of monopolistic power, areas of competence and
weakness as well as applying ‘SWOT ANALYSIS’. To ensure that a realistic
budgeting is produced, the company should know the existing and foreseeable
threats and opportunities in their operating environments.
This project is centered on budgeting as a means of
performance evaluation in public sector, using Lagos State University (LASU)
Ojo as a case study. Investigations will be carried out on how the institution
prepares and executes its budget and how variances are reported for control
purposes.
1.1 HISTORICAL
BACKGROUND OF STUDY
The setting of this study is Lagos State University
(LASU) located at Ojo local government area of Lagos State. A bill passed by
the Lagos State House of Assembly and assented by the state government on the
22nd of April, 1983 established the institution. There (3)
committees were involved and they recommended the followings:
(i)
Agbalajobi
committee (April 1981) University of Technology.
(ii)
Sobowale review
committee (June 1982) conventional university.
(iii) Dele Fagbemirokun review committee (Feb. 1984)
continued with the University project and recommended a main campus at Ojo and
Law and Humanities (Administrative Record, Lasu 2004).
Lagos State University took 342 students in 1984, in
1989 the number of students increased to 4459, while in 1994, it increased with
968 staffs made up of 300 academic, 176 administrative technical staff and 492
junior staff, about 60% of the academic were professors (Administrative
Records, LASU 2004).
Presently, the institution have about Eleven (11)
campuses, both Part-Time and Full-Time with satellite campus, amongst are; Ojo,
Epe, LASU Comm, School of Communication, Anthony, Agege, Jibowu, Isolo.
Ojo is the main campus, located at Badagry
Expressway, Ojo Lagos while Epe is the mini campus for Engineering and
Pre-science degree programme. Ikeja is the Medical school, while the rest are
satellites campuses.
Hence, in all, the institution now have about Eight
Faculties, comprising of Arts, Science, Social Science, Management Sciences,
Law, Education and Engineering. The institution runs diplomas, degree and
postgraduate programme. The following professors served as Vice Chancellor of
Lagos State University:
(i) Professor
Folabi Olumide (1983-1989)
(ii) Professor
(Mrs) Jadesola Akande (1989-1993)
(iii) Professor
Enitan A. Bababunmi (1993-1995)
(iv) Professor
Fatiu Akesode (1996-2001)
(v) Professor
Abisogun Leigh (2001-2005)
(vi) Professor
Lateef Akande Husein (2005 to date)
With the relevance to the focus of this study,
administrative records, Lagos State budget allocation record, and other Financial
documents like Education Trust Fund (ETF) will be used.
1.10 STATEMENT OF PROBLEM
Budgeting is an outline of organizations revenue
expectation and expenditure during a fiscal year. Hence, the budget is a
powerful instrument in the public sector in achieving set objectives, most
especially, management objectives.
Against this backdrop, this research work is meant
to proffer solution to the following problems putting the case study into
consideration;
·
Does Lagos State
University management embrace the formulation and implementation of a
comprehensive budget?
·
What system of
budgeting is the management of LASU using?
·
Does the system
of budgeting adopted, enhance quality performance of LASU?
·
How efficient
and effective are the procedures involved in the reporting of variances?
·
Does the LASU
management use the budget as the basis of performance evaluation in its
administration?
·
Does the
budgeting form the basis of LASU’s Management decision-making process or it’s
just left as the paper work?
1.11 OBJECTIVES OF STUDY
The research is aimed at investigating and
identifying the problems facing institution that formulates and implement
budget as a means of performance evaluation in the public sector.
It seeks to face the followings enhance quality
performance of Lagos State University, Ojo
·
To compare
budgeting as a means of performance evaluation based on the literature review
and study the public sector.
·
To investigate
how variances are reported.
·
To describe the
objectives and procedures involved in the budget processes.
·
To compare the
importance of budgeting in decision-making.
1.12 RESEARCH QUESTIONS
The following research questions are to be
addressed;
·
What are the
steps involved in preparation of budget?
·
What type of
budgeting does LASU use?
·
What are the
factors responsible for preparation and implementation of the budget?
·
Is the budget
planned, actualizing the objectives of the institution and to what extent?
·
Does budgetary
control accomplish the objectives of the institution?
·
How is budgeting
in Lagos State University in conformity with what is written in literature
review?
·
What are the
impacts and attitudes of budgeting on the path of students and staffs of Lagos
State University?
·
Who constitute
the budget committee?
1.13 RESEARCH HYPOTHESIS
This enables the researcher to make a valid
conclusion to either accept or reject the assumptions made or denied. This is
in two parts: NULL and Alternative.
Ho: is
denoted by null hypothesis.
H1: is
denoted by alternative hypothesis.
(i) Ho: That adequate control will not ensure
efficient
implementation of
budget.
H1: That adequate control ensures efficient and
effective
implementation of
budget.
(ii) Ho: That lack of budget discipline on the path of
management and staffs does
not hinder the corporate performance of the organization.
H1: The lack of budget discipline on the path of
management and staffs hinders the
corporate performance of the organization.
1.14 SIGNIFICANCE OF STUDY
(i) The study will enable us to stimulate
increasing interest on the paths of students and also institution sector in
general.
(ii) The study is significant with its outcome
and it’s expected to enlighten readers on budgeting and how it’s used as a
means of performance evaluation.
(iii) It will enable us to focus on the use of
budgetary control and its effect on production.
(iv) It’s expected to make organizations embrace
budget and improve the quality of budgeting control in business organizations.
(v) Above all, the result is aimed at solution
or ways of improving the purchase of budgeting in Lagos State University.
1.15 SCOPE AND LIMITATION OF STUDY
The entire work of this research will be focused on
Lagos State University. More importantly, Lagos State University have about
eight campuses within the Lagos Metropolis, therefore this research work shall
be carried out at the main campus only in Ojo, Lagos. It will basically
emphasize on state government budget allocation, it’s implementation and
control mechanism by the management of the institution.
Despite the great interest of the researcher has in
topic resulting from his belief in the great importance of budgeting system as
a means of performance evaluation, the study will be limited to some extent,
due to the following constraints:
·
Unavailability
of some vital financial statement of the institution due to lack of
transparency and accountability on the path of the management which is
generally common in public sector. To some extent, researcher may not be
assessable to some financial statement of the institution.
·
Finance is
another limitation to the study. This is due to cost incurred on acquisition of
materials; payment for services rendered by typist, payment on photocopies
bookbinding and others. This will constitute a great constraint on the path of
the researcher.
·
It is assumed that
the condition of the questionnaire by the employee may be at his disposal but
not what is being practiced in the institution.
·
Training will
also contribute to the limitation of the study. Since time is very precious,
the study will be limited to information within reasonable time.
·
The study is
limited to Lagos State University with the true view of what operate in other
institution due to competitive advantage.
1.16 DEFINITION OF TERMS
For the purpose of easier comprehension, it is
necessary to gain a significant level of the familiarity with those terms, as
they would be continually used in subsequent chapters.
Budgeting simply means projection of the cost and
revenue or organizations. It is being employed in all ramifications;
parastatals, individuals etc.
Budget planning and control. Planning is very
important in any organization. Its universal and it helps an organization make
necessary arrangement for the purpose of accomplishing all activities of the
organizations to achieve corporate goals, while control is the process of
comparing the actual results with the planned performance and highlighting
variances encountered, which can be analyzed by cause and responsibility.
Data also used in this research project could simply
be referred to as various sources which materials are used for information. It
can be grouped into primary and secondary data.
1.17 SUMMARY/CONCLUSION
This is the concluding chapter, denoted to
summarizing what are contained in Chapter One – Four, drawing conclusions as a
result of information gathered from the analysis and recommending appropriate
courses of action to rectify differences in the course of study. This will
involve the interview of how effective budgetary control is being used as a
means of performance evaluation in public sector.
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