BUDGETING AND BUDGETARY CONTROL TECHNIQUES AND IMPLEMENTATION IN THE INSTITUTION OF HIGHER LEARNING
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The success of an organization can be derived from the efficiency and effectiveness of its resource use. Some organizations can do well with minimum resources, but there are others which do not do well even with abundant resources. The difference, between both depends on the method of allocation of resources and the use to which they are put. As a result, the importance of resources management in achieving organizational success cannot be under estimated. And so the need for a planning and control, management of any university must always look into the post, present and plan for the future. The performance is helpful in planning for the future, in sense that it provides basic for estimating the probable future operating conditions.
Fundamentally, management is the con-ordination of human efforts that is the accomplishment of goals by utilizing the effort of other people. The management process may be viewed as the total management effort operating in a particular endeavour that include that basic management functions planning,. Co-ordination and control to accomplish specific objectives.
One of the most important approaches that has been developed for facilitating effective performance of these management functions is budgeting.
A budget is a plan quantified in monetary terms prepared and approved subject to a defined period of time, usually showing planned income to be generated or expenditure to be incurred during the period and the capital employed to attain a given objective. Budget has been defined by different people, Economist defined it as an official document showing the expected revenue and expected expenditure for a given fiscal year.
Cost accountant defined it a plan quantified in monetary terms, prepared and approved prior to a defined period of time, usually showing planned income to be generated or expenditure to be incurred during that period and the capital employed to attain a given objective.
To the management accountant, it is a formal expression of managerial plans. Its quantities and financial terms encompassing different phases of business operations and aimed at helping management towards the attainment of organization objectives.
Planning, which according to Ogbozor (1999) involves mental effort by which the executives anticipate the possible census or factors that may effect or change the activities and objectives of a particular organization. With the end in view of controlling the nature and direction of changes and determining what measures or actions necessary to accomplish pre-determined goals, is an important function of budgeting.
Budgeting is concerned about making plans for the future, implementing these plans and monitoring activities to see whether they conform to the plans.
Co-ordination is the synchronization of individual action with the result that each sub-division of an entity effectively works towards the common objectives. It involves the interpersonal relationship of people in the work situation, as they exchange view, ideas, prejudices and other attitudes. Budgeting provides for the co-ordinations of activities, particularly through master budget which summarize all the supporting budgets.
Planning and controlling functions of management has budgetary control as its accounting tools. Budgetary control may be described as a managerial activity that relate to responsibility centres of an organization. It is also the use of budgets for assignment of responsibilities, planning and controlling performance and guiding managerial and other activities towards the achievement of organizational goals.
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BUDGETING AND BUDGETARY CONTROL TECHNIQUES AND IMPLEMENTATION IN THE INSTITUTION OF HIGHER LEARNING
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