TABLE OF CONTENTS
CHAPTER ONE
Introduction
1.1 Background to
the study
1.2 Statement of Problem
1.3 Objective of the Study
1.4 Purpose of
Study
1.5 Significance
of Study
1.6 Scope and
Limitation
1.7 Historical
Background of Case Study
1.8 Research
Questions
1.9 Research
Hypothesis
1.8 Definition of Terms reference
Reference
CHAPTER TWO
LITERATURE
REVIEW
2.0 Introduction
2.1 The concept of
Budget
2.2 The concept of
Budgeting
2.3 The Nature of
Budget
2.4 Type of Budget
as it relates to the Local Government
2.5 The Budgeting
Procedure
2.6 Revenue Budget
2.7 The Master
Budget
2.8 The Fixed
Budget and the Flexible Budget
2.9 Budget Period
2.10 The Budget Committee
2.11 Budget Manual
2.12 Budgetary Control and Accounting System
2.13 The Concept of control in Budgeting
2.14 Essential Features of Budgetary Control
2.15 Advantage of Budgetary and Budgetary Control
2.16 Performance of Budget and Budgetary Control
Reference
CHAPTER
THREE
RESEARCH
METHOD
3.0 Introduction
3.1 Restatement of
Hypothesis
3.2 Research
Design
3.3 Sources of
Data
3.4 The Population
of Study
3.5 Sampling Size
3.6 Questionnaire
Design
3.7 Administration
of Questionnaire
3.8 Analysis
Technique
3.9 Methodology
Limitation
Reference
Questionnaire
CHAPTER FOUR
PRESENTATION AND ANALYSIS AND
ANALYSIS OF DATA
4.0 Introduction
4.1 Presentation of Personal Data
4.2 Presentation of Research Questions
4.3 Testing and Analysis of Hypothesis
CHAPTER FIVE
5.1 Summary of the Major Findings
5.2 Conclusion
5.3 Recommendation
Reference
Bibliography
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The increasing complexity of
business operation and the ever-changing conditions of the business environment-social, economic,
technology and political factors make it increasingly difficult for a company
to consistently earn a profit that constitutes a fair return on the capital
investment. The internal operation of a firm using financial tools has been a
very long time; management has to have a plan of action as a means of
monitoring profit and financial control.
Budgeting is the accepted basis
for profit, planning and financial control. It has been practice effectively and
profitably by many progressive companies who generally regard it not simply as
a procedure but as one of the more important of process of management.
Budgeting is one of the management tools that force manager to perform
according to a given level of expectation.
The process of preparing the
budget forces the executive to become better administrator. It puts planning in
the first key and budgeting primary attention directing because it helps
managers to focus in the operating problem early enough. For effective planning
or action, budgeting is usually been as an integral of various plans and
providing feedback for the actual result. Budgeting has many purposes. The
primary purpose of budgeting is conducted under favourable conditions, there is
no doubt that a firm which budget will tend to perform rather better than a
similar one that does not budget.
Budgetary control is control
technique which when the compares of the planned state of affairs with actually
state of affairs and the continuous devising of means of correcting the
deviation. It involves the use of available technique such as operational
research, computer science and so on, to ensure that the budget is realistic as
possible. The budget is without doubt, the most widely used control device in
both business and government circle. The budget is drawn up for control
purpose, that is an attempt to control the direction that the firm taking. Indeed, it is used extensively to many people,
the word budget is synonymous with control still, and the preparation of budget
originates as a part of planning process. Some companies in other to avoid the
negative reaction that are many a time associated with the concept of control.
Refer to their budgetary controls as either profit plan or profit path. The aim
of budgetary control is to provide a formal basis for monitoring the progress
of the organization as a whole of its component parts towards toward the
achievement of the objectives specified in the planning budget.
Budget planning budget control
is part of the overall system or responsibility accounting within an
organization. A vast number of organization and company are getting involved in
budgeting and budgeting control in Nigeria, and this is taking different forms,
but the one that seems to be gaining more recognition is based on the concepts
and ideas developed in budgetary control.
1.2 STATEMENT OF PROBLEM
Some problems are identified to
why public sector organization make deficit budget. These problems include:
i.
Inability to
evaluate and assess the viability of the organization.
ii.
What tools to be
employed in comparing organization or actual performance with the planned or
future performance and how tools can be implemented a good deviation and
control?
iii.
What tools to be
adopted in assessing the organization performance in terms its fair return on
the capital investment?
iv.
Going by these
problems, the study then consider budgeting and budgeting control on
organization performance in local government?
1.3 OBJECTIVE OF THE STUDY
The objective of the appraisal
and evaluation of business organization in the following areas:
i.
To itemize the
impact of budgeting and budgeting control in local government.
ii.
To exemplify by
using budgeting and budgeting control by management for planning, control and
decision making.
iii.
To know what is
budgeting and budgeting control and why it is of interest and to whom.
iv.
To look into ways of
encouraging human support for budgeting control.
1.4 PURPOSE OF STUDY
The purpose of this study is to identify the
effectiveness or otherwise in the presentation of budgeting and its control in
local government. Our analysis would however be limited to Ojo local
government.
The study also determining ways and
means of improving the operation and effectiveness of the system for as much as
the success or failure of budgeting and budgeting control depend on the
acceptance by the people in the organization. Consequently, consideration is
given to why employees react the way the they do, the use, the usefulness of
budgets in making budgets more successful
and acceptable can be considered within a particular situation facing modern
day business circle.
1.5 SIGNIFICANCE
OF THE STUDY
The outcome of this study cannot
be overemphasized. These are:
i.
The effectiveness of
budgeting on achieving their corporate goals.
ii.
The study will help in
the formulation of corporate policies concerning local government.
iii.
It will help
management to to understand ways in which budgeting could be a powerful tool
for planning, control and decision making.
iv.
It will reveal how
rational allocation of resources can be ensured.
v.
It will serve as a
tool for further research studies.
1.6 SCOPE AND
LIMITATION
The researcher intends to cover
budgeting and budgeting control as it relates to the private sector and special
consideration been given to in the manufacturing or industrial sector.
The expected limitation form a thorough
analysis includes the following:
i.
Time
ii.
Respondents
iii.
Finance
As a result of these, the
researcher will limit the evaluating of budgeting and budgeting control in Ojo
Local Government.
1.7 HISTORICAL
BACKGROUND OF CASE STUDY
Ojo local government was created
in May, 1989 under the military administration of General Ibrahim Gbadamosi
Babaginda, as the president of the Federal Republic of Nigeria, under the
military governor of General Raji Rasaki. Before the creation of Ojo local
government, out of the old Badagry local government, the area was adjudged the
most popular in the federation going by the National Population Censor
conducted in Nigeria in 1991. The population as at that time was put at 1.01
million. Ojo local government was divided into two segments, the revenue and
the upland. It is in habited by mainly the Aworis, who are very accommodating
and progressives.
In 1996, under the military
administration of General Sanni Abacha, two local governments were carved out
of the old Ojo local government; Amuwo Odofin and Ajeromi Ifelodun local
government. It is on record the administration of Alhaji Jakande as the
executive governor of Lagos state, Ojo local government that did not have the
backing of the federal government under President Shehu Shagari, was created in
1980 with Alhaji Ajakaiye as the chairman from 1980-1983. However, the military
governor of General Muhammaed Buhari and Tunde Idiagbon scrapped the local
government when they struck in 1983 and the new council returned to Badagry local
government.
Today, two local government have
been carved out of the old Ojo local government; Iba local Council Development
Area and Oto Awori
Council Development Area with this development there were boundary adjustment.
As of today, Ojo local government shares boundaries with Oto-Awori on its south
west; it is bounded in the East by Oriade local government in the North by Iba
local council development and in the south by the lagoon. It also shares
boundary with Amuwo Odofin local government between Ojo
Military Barracks and the Trade
Fair complex. The local government has a total land mass of 18sq km with about
300/0 of it constituting the Revenue Area. Today part of this Revenue Area is
being shared with Oto-Awori Local Council Development Area.
Despite the fact that the indigenous
inhabitations are the Aworis, OJ today is natural habit as of the Igbos, who
deal in electronics and general materials at the popular Alaba international
market created in 1973 within the local government are and the Hausa who deal
in rams cows.
The Ojo indigenes are mainly
farmers, mat weavers, fisher men, hunters and petty traders. But some of them
today are big time businessmen, educationists and great politicians. The hither
to sleepy town of Ojo, is today flourishing with business activities that can
be compared to major town in Lagos State.
There is no doubt that the fact
that revenue Area of Ojo Local Government needs special attention in the area
of electricity, a bridge to link the upland with the reverine and other basic
infrastructural facilities. Tahe communities include; Irewa, Taffi-Hausa, Taffi-Awori, Itogbesa, on
the other hands, the upland has caught
up with the best modern cities in the world with an express road to link neighbouring
country, companies, market and higher institutions, the settlement include Ojo,
Ira Ajangbadi, Sabo-Oniba, Ilufe, Igbede, Agric, Arufa, Olugbemi, Muwo and
others.
1.8 RESEARCH
QUESTIONS
The research intends to test the
following research questions in the course of this project.
i.
Does budgeting and
budgeting control enhance planning and decision making efficiently?
ii.
Does budgeting and
budgeting control ensure rational allocation of resources?
iii.
Does budgeting and
budgeting control a motivational tool for staff?
1.9 RESEARCH HYPOTHESES
The hypothesis would be
formulated as null and alternative
1.
Ho: Budgeting and
budgeting control does not enhance planning and decision making efficiently
Hi: Budgeting and
budgeting control enhances planning and decision making efficiently
2.
Ho: Budgeting and
budgeting control does not ensure rational allocation of resources Hi:
Budgeting and budgeting control ensure rational allocation of resources
3.
Ho: Budgeting and
budgeting control is not a motivational factor
Hi: Budgeting and
budgeting control is a motivational factor
1.10 DEFINITION OF TERMS
Ø Budget: A budget
IS a summary statement
of plans expressed in qualitative term
Ø Budgeting: This
is the process of preparing a summary statement of plans expressed in monetary
quantitative terms.
Ø Decision Making: Involve
selection from among alternative course of action or most preferred choice out
of many alternative
Ø Budgetary Control:
This IS the control technique of planning In advance of the various functions
of a business so that the business as a whole can be controlled.
Ø Control: The
process of setting goal and objectives In advance and determining ways to
achieving it.
Ø Plans: A
set of things to do in order to achieve something usually done in advance.
Ø Planning: This
is the process of setting goals and objectives in advance and determines way of
achieving it.
Ø Responsibility Accounting: This is the term used to describe a system of
decentralization of authority with performance of the decentralized units
measured in term of accounting results.
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