BUDGET IN HIGHER INSTITUTION OF LEARNING IN NIGERIA A CASE STUDY OF FEDERAL POLYTECHNIC

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The practice of budgeting is as old as modern civilization and is central to effective management of learning resources. Most peoples, organisation, Institutions and companies will at one time or the other plan ahead, I terms of there activities and their available resources. This is done as a 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 serves as a quantitative expression of a plan of action and an aid to co-ordination and implementation. As well as being a plan, a budget also act as a control against which actual performance can be evaluate. In order to make its decisions wisely, the management of federal polytechnic, Okoh and other higher institutions in Nigeria must have a vision about its future, and budge enhance that. Budget provides a rational and objective basis for allocation of scare resources in that institution.

With so may competing needs of the management, the school and students, with regard to her learn resources, the discipline of budgeting compels school management to be discreet in allocating limited resources to meet unlimited expenditure possibilities. This does not suggest the absence of sentimentality and irrationality but at least these are minimized. The aim of this project is “Budgeting in Higher Institutions of learning particularly Federal Polytechnic, Okoh”. It will cover areas as expected grants, internally generated revenue as well as expected expenditure. Discussion will also be made as to the importance of Budgeting to Federal Polyphonic, Okoh including other higher Institutions of learning. In the course of the study, the system adopted by federal polytechnic, Okoh will also be discussed and suitable system recommended for use. Finally, an analysis will be made to see whether budgeting is necessary ion Federal Polytechnic, Okoh and other higher institutions of learning in Nigeria.

1.2 STATEMENT OF PROBLEM

It has become an annual ritual for the bursar of Federal polytechnic, Okoh and other higher institutions in Nigeria to send out circulars generally known as budget call circulars requesting heads of departments and units to submit an estimate of there requirements for a particular year. Such call letters are received in various department with mixed feelings, yet the exercise continues on a yearly basis. Some heads of department feel that such call letters are not important because they are essentially the same every year. Others feel the budget process is a waste of time .yet another group feels that it is waste of scarce resources of such institution. There is still a group which feels that since federal polytechnic, okoli including other higher institution of learning are not profit making organizations, they should not engage themselves in the process of budgeting. The views present above are correct in each respect considering the general fact that such groups are not well educated on the importance and reasons why budgeting is necessary.