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The Impact of Budgetary Control in Local Government Administration A Case Study of Ohafia Local Government in Abia State

The Impact of Budgetary Control in Local Government Administration

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Reference ID: PS-12-TM


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The Impact of Budgetary Control in Local Government Administration (A Case Study of Ohafia Local Government in Abia State)


Preliminary Pages


  • 1.0 Introduction
  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objectives of the study
  • 1.4 Research questions
  • 1.5 Scope of the study
  • 1.6 Limitation of the study
  • 1.7 Operational definition of terms


  • 2.0 Literature Review
  • 2.1 Brief History of the case study
  • 2.2 Definition of Budget
  • 2.3 The Budget control process
  • 2.4 Types of Budget for planning and control
  • 2.5 Objectives of keeping a Vote book
  • 2.6 Budget Preparation
  • 2.7 The process of Budgeting

Chapter Three

  • 3.0 Research deign and methodology
  • 3.1 Introduction
  • 3.2 Sources/ Method of data collection
  • 3.3 Population and Sample size
  • 3.4 Method of data analysis

Chapter Four

  • 4.0 Presentation and Analysis Of Data
  • 4.1 Presentation of data
  • 4.2 Analysis of data

Chapter Five

  • 5.0 Summary, Conclusion and Recommendations
  • 5.1 Summary of findings
  • 5.2 Conclusion
  • 5.3 Recommendations






This project The Impact of Budgetary Control in the Local Government Administration is an attempt to analyze and evaluate the level of success made in the implementation and management of budgetary control in Ohafia Local Government Area, Abia State. The research discovered vast waste of resources, inability to forecast and predict value, inability of management to meet her objective as a result of in appropriate budgeting and these are considered as problems facing the organization. The research tends in many ways remediate their problems, the research tend to measure the effective use of budgetary control and to evaluate performance based on variation of the actual and budgeted. Personal inter-view was conducted and questionnaire was designed in a view of obtaining data that will help in the course of this research. A touch is also made on the analysis of data in order to prove its viability. The budgeting process starts with a circular flow from the state burea of budgeted and planning. The receipts of the circular forms the busiest period of the budgeting after which the committee coordinates and collect all budget input of the organization. Based on the finding the following recommendations were made include seeking governments assistance for find to implement the program, government approval for corporation to eliminate institution weakness and proper accountability which is the central management control system.


The Impact of Budgetary Control in Local Government Administration (A Case Study of Ohafia Local Government in Abia State)


1.0 Introduction

1.1 Background Of The Study

Performance evaluations have been considered as one of the core problems facing our organization today, to measure manpower and machinery contributions to actualize the mandate of the organization. in recent years, this problems have been attributed to the large dispention of fund (cash) which most times have caused over seen in management operation, and have maintained a large negative effects not only to the organization but to the general economy to remediate this problem and associated effects management have seek ways of harnessing these operation by running a check on the budget and budgetary control.

Osondu 20.173, defined a budget as a plan of action qualified in monetary terms while budgeting refers to be act of preparing budgets. They are based on predetermined objectives and represents what is likely to happen after a careful consideration of the priorities of the organization budgeting can be described as the process of efficiently allocation of resources to unlimited objectives. Here a budget which could be said to be a pre-determined statement objectives during a given period, a standard for companies with the result actually achieved.

Chartered institute of management accountants (CIMA) defined a budget as a financial as a quantitative statement prepared and approved prior to a defined period of time of the policy to be pursed during that period for the purpose of a given objective.

1.2 Statement Of Problem

This research explores the effective use of budgetary control in local government administration, it intend to find out the effectiveness of management control system with special interest to budget and budgetary control among others, it has been discovered that;

  1. Inability of management and organization to meet her mandates is based on inappropriate budgeting.
  2. The vast waste of resources, Financial resources are as a result of lack of budgetary control in organization.
  3. Ability to forecast/predict value using the budgetary trend in organization. these are considered as problems facing the organization through the use of budget and its control as this research trends to in many ways to remediate these problems.

1.3 Objective Of Study

Budgeting is designed in such a way that it can be used for future forecasting. This research tends to measure the effective use of approaches of budgetary control in government parastatals and to evaluate performance based on variation of the actual and budgeted. Ohafia Local government Area zone is used as a case study to facilitate government based administration. The objectives if therefore considered as follows;

  1. To highlight the effectiveness to use of budget and budgetary control in Ohafia local government area zone.
  2. To provide a reference point for effective use of budget ad budgetary control.
  3. To increase general knowledge of individuals and serves as general contribution to human known.
  4. To help induce managers to the new aid of management control system.
  5. To enumerate associated problems with power holding company of Nigeria and other related and organization.

1.4 Research Questions

To actualize the purpose of the objectives and states of problems, the researcher has considered the following research questions.

  • What are the significant effect undergone when an appropriate budget method is used and when not monitored?
  • The major problems associated with organization in meeting their mandate can be channel to budget and budgetary control?
  • How does budget and budgetary control contribute to the effective and efficient or organization operation?

1.5 Significance Of The Study

The significance of or importance of this work should not be over emphasized. The major or importance is listed below:

  1. The research work will assess and ascertain the level of effectiveness of budgetary control in local government administration.
  2. The aim of the local government cannot be achieved without the proper management of budget.
  3. Budgetary control improves the performance of government parastatals.
  4. Local government makes use of budgetary control in order to control revenue and expenditure of a particular year.
  5. The work will attempt to investigate and identify the areas the government should channel resources to achieve adequate result.
  6. It will also investigate and ascertain the level of corruption that lead to an inefficiency in the local government administration.

1.6 Scope Of The Study

The structure of an organization determines the scope of it, budget and budgetary control hence the diversity in budgetary control of say, manufacturing merchandizing and service organization.

This study is aim t finding out the impact of budgetary control in ohafia local government Area in Abia state.

1.7 Limitation Of The Study

In the process of this study, the researcher encountered in myriad of problem that cannot be over emphasized. However, the researcher uses his own erudite knowledge in research on inspiration from other areas to submit them. It will be pertinent hence to mention most of the domineering one.

  • Un co-operative attitude of some members of staff who refused to release vital information and document.
  • The date of literature or article relating to government parastatals were not disclosed.
  • In the area of human constraint for resistance there was exception of management to furnish the researcher with some information which they regarded as clarified and confidential.
  • Irrelevant and insufficient information supplied by some accounting officers might not be important to the work.
  • Time constraints are also a limiting factors in undertaking this study. The availability of time and short period of the study made it difficult for the researcher to carry out a wider a and more though work on the issue at the same time carried out academic activity.

1.8 Definition Of Terms

Budget: Budget is a plan qualified in monetary term prepared and approved prior to a defined period usually showing planned income to generate or expenditure to be incur during the period. According to Dr. Ifurueze:A budget is defined as plan, which is agreed in advance it must be a plan, and not a forecast.

Budgetary Control: It is a part of Overall system of responsibility accounting within an organization. it is a system of accounting within an organization in which cost and revenue and analyzed in accordance with area of personal responsibility so that the performance of the budget holder can be monitor in financial terms.

According to Dr. Ifurueze, Budgeting control is the establishment of budgets relating to the responsibilities of executives to the requirement of policy and the continuous comparison of actual with budgeted result either to secure by individual action the objective of that policy or to provide a basis for its revision.

Parastatals: This is the government owned establishment or company with the prime motive of provision of essential services at reduced cost.

Government: This is the body with the power to make and enforce laws to control country, land, area, people or an organization. It is also the management or control of a system.

Variance: This is the difference between the estimates and the actual results.

Master Budgeting: This is the total budget package which effectively combines in ones statement, the sell expenses, production and cash budget of an organization.

Revenue: Its refers to business income in general, or amount in a monetary unit received during a period of time.

Administration: The function of a political state in exercising its governmental duties or the management of any office or organization.

Planning: Planning is the process of thinking about and organizing the activities required to achieve a desired goal. It is also a basic management function involving formulation of one or more detailed to achieve optimum balance of needs and demands with the available resources.

An Expenditure: Is used to indicate a cost that company pays to acquire equipment or other assets. Expenditure also reduce liabilities or be disbursed to owners. They can be considered a type of expenses.


2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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The Impact of Budgetary Control in Local Government Administration

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Major Sections
  • Motivation for Embarking on the Project

  • Brief Background of Study

  • Statement of Problems

  • Aim of the Study

  • Specific Objectives of the Study

  • Significance of the Study (Who benefits from the project and how?)

Elective Sections
  • Relevant Research Questions

  • Relevant Research Hypotheses

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  • Motivation / Statement of Problems
  • Aims & Objective of Study
  • Scope of Study
  • Significance of Study


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  • Know the methodologies, tools and techniques used.


  • Justification of your work and things to adhered to before using the system or research work.


  • Conclusion and Recommendation

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