The Impact of Budget and Budgetary Control in Tertiary Institutions : Current School News

The Impact of Budget and Budgetary Control in Tertiary Institutions

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The Impact of Budget and Budgetary Control in Tertiary Institutions.


This study was carried out in order to find out the impact of budget and budgeting control in tertiary institution which are non-profit making organizations used Imo state university as it case study.

However, budgets are said to be a quantitative expression of plans, either physically or in financial terms or both.

It could also be said to be a method for translating the goals and strategies of an organization into operational terms.

Due to the importance of budget and its control in organization. The study investigated how tertiary institutions with particular reference and controlled to meet target goals.

Furthermore, in the process of carrying out the study a total of 40 subjects were involved in the study.

There are line (9) facilities in the university but due to limitations in both time and finance, the researcher were only able to sample for faculties which were randomly selected and only the senior staff members of the four faculties selected were targeted.

Finally, from the data collected and analyzed, the researcher discovered that budget and budgeting control as a management techniques can be applied in educational institutions showing that budget and budgeting control is important in non-profit making organization as it is in profit making organization.

It is also used as a corrective mechanism through the duties and by ensuring that authorization and approval of all concerned in the preparation of budgets are fully carried out.


Title page                                                       i

Certificate page                                               ii

Dedication                                                      iii

Acknowledgment                                             iv

Abstract                                                         v

Table of content                                              vi


1.0  Introduction                                             1

1.1 Statement of the problems                        7

1.2  Purpose of the study                                 9

1.3   Objective of the study                               10

1.4  Research question                                     11

1.5  Scope of the study                                    12

1.6  Assumptions of the study                         14

1.7  Delimitations of the study                          15

1.8  Definition of terms                                    16


2.0  Literature review                                       19

2.1  Historical background                                19

2.2  The concept of budget                               21

2.3  Development in budget control                   25

2.4  Definition of budget & budgeting control      28

2.5  Objectives and purpose of budgeting           39

2.6  Types of budgets                                      41

2.7  How budgets are prepare / administration of budgeting control                           46

2.8  Human / behavioural aspect of budgetary control as a control measure             48

2.9  Problems in budgeting / management by exceptions                                               52

2.10   Budgeting system in non profit seeking organization                                             54

2.11   Budget and budgetary control as a control mechanism                                         56

2.12  Budget and budgetary control in tertiary institution in Imo state                      58

2.13   Budgetary as a basis for comparison and enhancement of performance          60

2.14  Summary of the chapter                           61


3.0  Research methodology                             64

3.1  The population of the study                        64

3.2  Methods of sample selection                       68

3.3  The methods of data collection                   68

3.4  The method of data analysis                       69


4.0  Presentation and Analysis of data       71

4.1  Introduction                                             71

4.2  Data presentation, classification &

calculation                                               72

4.3  Analysis of data according to research

hypothesis                                               84

4.4   Analysis of data according to research         91


5.0  Summary, Conclusion, Recommendation    92

5.1  Summary                                                92

5.2  Conclusion                                               96

5.3  Area of further researcher                          97

5.4  Recommendation                                      97

Bibliography                                           100

Appendix                                               103


Budgeting is essentially concerned with planning. According to Hausen .O. (1990). Dr. Jones discovered, failure of plan, either formally or informally, can lead to financial disaster.

Careful planning is vital to the health of any organization. If that is a case, what role does budgeting play in planning and control. Simply put, plans identify objectives and action needed to achieve them.

Budget are the actions needed to achieve them. Budget are the quantitative expression of these plans. States in either physical or financial terms or both.

Thus a budget is a method for translating terms. As a plan of action budgets can be used to control by comparing actual outcome as they happen with the planned outcomes.

Furthermore, according to Professor Anya O. Anya April 28th 2006, guarding newspaper, the universities and the challenge of a knowledge is base on the economy (2) the said “we have seen that economic and human development indices presently confirm that Nigeria is a very poor country where otherwise immense resources and potentials have not been realized as a result squander and poor management.

We have dedicated from the above points that planning budgeting and control is very essential in all sphere of endearvour be it public or private sectors.

In other words, the necessary uncertainty and complexity in the socio-political economic and public sectors of Nigeria society have been made it very difficult for co-operate entities irrespective of the nature of their business (profit oriented or service oriented) coupled with the changes in social, economic, technological and political system to achieve optimal result without setting proper planned targets.

With the trend of failure recently witnessed in the financial sector, arising from factors both internal external organizations and their management should ensure that they had decision about their future.


Anayaogu C.M (1999) management accounting a functional approach.

Ackoff R.L (1970) A concept to corporate planning. New York, John Wiley & sons.

Agu C.N (1997) Aims of budget and roles of budgetary in planning process.

A paper delivered at workshop on advance management accounting and information control held Imo State 18th – 20th June.

Asein A.A. (2000) Budgeting profit planning and control process (ICAN News) January / March Vols. 5. No 7.

Batty J. (1971) Corporate planning and budgetary control. London Mac Donald and Evans Publishers.

Eruotor P.A (1997) Imperative of business budgetary. The Nigeria accountant (ICAN News April / June Vol 30-Nov. 2.

Enclopaedia American (1995) International edition Vol. 4  Grolier incorporated Danbury.

Kiabel, B.O (2000) Budgetary as a management tool. The Nigeria account (ICAN News) January / March         Vol 33. No7.

Lucky T. (1996) Management accounting and edition  London D.P Publishers.

Anya O. Anya (April 26th 2002) Guardian Newspaper. The university and the challenge of knowledge based economy. A seminar paper presented.

Adiele E.C (1973) They budget as a instrument of control. The Nigerian accountant Lagos institute of  chartered accounts of Nigeria, January / March Vol. 5.

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