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Budgeting And Budgetary Control As A Tool For Financial Planning And Control
[A CASE STUDY OF UNIVERSITY OF ILORIN]
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1.5 SCOPE OF THE STUDY
The research used university of Ilorin, Nigeria, a tertiary educational institution as a case study which uses budgeting and budgetary control as a technique or tool also considered the ways in which budgets are being formulated and applied in an organization
1.6 SIGNIFICANCE OF THE STUDY
Several researches have been successfully conducted in relation to budgeting and budgetary control and their importance in various organizations. However, only few emphasized on the effect of budgetary system on financial planning and control, especially of an educational institution. For instance, False (2003), limited his work on types of budgeting and budgetary operation in organizations to this end, this research work concentrated more on budgeting and budgetary control as tool for financial planning and control in an educational institution. Budgetary system was been considered as a tool to eliminate poor financial planning and control and some other sub-optimalities in organizations.
Also budgetary in its nature of setting standards for employees may serve as a motivation factor for labour efficiency because every employee works towards the target ahead of them. Herefore, this study also examined whether and how budgetary systems motivates employees in the performances of duties.
1.7 PLAN OF THE STUDY
This research is divided into five chapter, chapter one highlights on general introduction, background of the study, statement of the problem, objectives of the study, Hypothesis of the study, scope of the study, significance of the study, plan of the study and definition of terms.
Chapter two highlights on literature revue, control budgeting cycle and budget process, benefits of budget, conditions for a successful budgeting, effects of limiting factor on budget, behavioral implication of budget, application of budgeting to non-profit making organization, budget improvement techniques, and review of empirical studies on budgeting and budgetary control.
While, chapter three highlights on research methodology, historical background of the case study, research design , population of the study, sampling method and sample size, sources of data method of data collection, method of data analysis and limitation of the study.
Also chapter four highlights on analysis of data and presentation, responses to questionnaire, data presentation, purpose of budget in Unilorin and test of hypothesis.
Finally, chapter five highlights on summary, conclusion and recommendations.
1.8 DEFINITION OF TERMS
Budgeting is the mechanism involved in developing a budget while budget can be define by the institution of cost and management accountant “1982†(ICMA as a financial and qualitative statement prepared and approved prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objective it may include income, expenditure and employment of capital. From these definitions it can be deduced that budget is a statement which is prepared prior to the commencement of the operation of the organization and this statement express not only monetary terms of the business and intend to achieve with the spans of time covered in the budget. Such policies, programme and strategies and the totality of all programmes aimed at systematically achieving the cooperate objectives. In 2009 Amos A. Abohi describe budget as the qualification of a plan of action proposed towards some future objectives it gives written details of a plan shown activities required to achieve the objectives, the inter-relationship of the activities and most importantly the available resources required for each activities and cost involved, it will be seen from the above definition that budget are qualitative statement that translate the intention of the business organization
ENCYCLOPEDIA BRITANICAL 1971
Defines a business budget as a financial document representing management best estimated plans for the performance of a company during a definite future period. It also involves the integrated group of forecast of expenditure, the receipt profit and changes in assets. It therefore follow that the business budget is a representation of the best and most promising conceivable plans of a business in matching the expected level of expenditure, receipt, income and change in various definitions are major features of a most controlled system.
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