BUDGET AND BUDGETARY CONTROL AS A TOOL FOR ACCOUNTABILITY IN GOVERNMENT PARASTATALS

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BUDGET AND BUDGETARY CONTROL AS A TOOL FOR ACCOUNTABILITY IN GOVERNMENT PARASTATALS

CHAPTER ONE

BACKGROUND OF THE STUDY

INTRODUCTION

Budget and Budgetary control is the paramount tool in fund management in private and public sectors. It helps to determine how funds will be spend in any aspect of an organization be it private or Government parastatals. Budgets help to estimate what will happen in future or to anticipate about future is equally observed that the existing funds management system is to be improved through budget and budgetary control in terms of development. This situation has negated the management sometime do not adhere strictly to the procedure of budget and budgetary control system of the organization.

1.2      STATEMENT OF THE PROBLEM

The administration of the Akwa Ibom State Housing and Urban Development designed a lot of problems. It has been noticed that the managers and some of the principal officers of the ministry covert their responsibilities and the resources of the company without approval from the appropriate authority. It is equally observed that the existing fund management system is to be improved through budget and budgetary control in terms of development. This situation has negated the management sometime do not adhere strictly to the procedure of budget and budgetary control system of the organization.

OBJECTIVE OF THE STUDY

The objective of this study includes:

To determine the extent of which budget and budgetary control help management in the public sector adhere to Generally Accepted Budgetary control system.

To find out if there has been budget implementation in government parastatals of Akwa Ibom State.

To examine the reason for non adherence to proper accounting procedures and its effects on development performance.

To determine the budget standard in the government parastatals.

To analyze the problem find out in the course of this research and make appropriate recommendation that will help reverse the trend.

PURPOSE OF THE STUDY

The purpose of the study is to examine budget and budgetary control as a tool for accountability in government parastatals and to uncover operation flaws in the system and examine the success toward fund management which is aid to budget.

SIGNIFICANT OF THE STUDY

This research work will explore new ideas to the ministry as well as outsider, examining the role played by budget and budgetary control as a tool of accountability of public fund. It is equally expected that this research work will adequately educate the student’s interest, group and members of the public. The study will also serve as a source of information to students and future researchers. Also help ministers to minimize cost.

The study will contribute in attainment of budgets and control performance also serve as an eye-opener to ministers in creating awareness on financial control toward efficient performance.

1.5     SCOPE OF THE STUDY

The scope of this research is a budget and budgetary controls in ministry of Housing and Urban Development. This project topic is centered on budget and performance appraisal of Akwa Ibom State Ministry of Housing and Urban development.

1.7     LIMITATION OF THE STUDY

The study was constrained by found limitations such as time, finance, materials and cooperation from the respondents. The restricted the study to the use of sample size instead of assessing the entire population.

1.8     RESEARCH QUESTION

In this research, the following questions have been formulated and used as a working principle in the study.

Will the official be able to show or to keep accounting principles and procedure regarding budget in the corporation?

Will the official of Akwa Ibom State Housing and Urban Development Authority be able to indicate the approaches to budget in the corporation?

Will the management of the Housing and development Authority in Akwa Ibom State be able to indicate the steps taken by the corporation to improve on unfavourable variances?

Will the official of the ministry be able to disclose the type of variances expected in the corporation?

Will the officials of housing and Development Authority in Akwa Ibom State be able to show the advantage of budget and budgetary control applicable in the corporation to the public?

Will the public be able to tell how budget and budgetary control impact on management of the corporation?

I.9      HYPOTHESIS TESTING

The following hypothesis will be accepted or rejected after being subjected to the test for the purpose of this research work.

Ho:      A significant number of Government parastatals in Akwa Ibom State do not apply effective budgeting techniques

H1:      A significant number of Government parastatals in Akwa Ibom State do apply effective budgeting techniques

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