The Effects of Budgetary Controls in an Organization's Performance: A Case Study of Action Aid Uganda
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Date
2010-12
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Kampala International University, College of Economics and Management
Abstract
This is a research report on the effects of budgetary controls in a "not for profit" organisation
called AAU. It is a study on budgetary control as a financial tool in guiding the making of
optimal financial decisions to attain high-level performance. It was carried out to investigate on
budgetary practices (budgetary controls) in AAU, to evaluate the performance of the
organisation and whether there was a relationship between these controls and the organisation
performance of AAU.
To achieve the study objectives, the researcher collected data, which included both primary and
secondary data. With primary data, the researcher selected a sample size amounting to 48 and
Questionnaires were issued of which only 26 responded to the researcher Physical observations
as well as personal interviews were used as primary data by the researcher. While, journals,
newspapers, Government publications and research agency resource centers were used as
secondary data. After collecting data, the researcher employed both qualitative and quantitative
methods with the aid of descriptive analysis of performance of AA U was carried out in terms of
activities performed by the organisation as well as the challenges and successes scored.
The research findings are discussed basing on the objectives of the study. The researcher found
out that budgetary control exists in AAU though not fully enhanced by managers who are not
strong enough to commit to these controls and this has resulted in a failure to achieve the
objectives of the organisation. Instead of committing funds to planned activities, the funds are
instead directed to the plan and this really leaves AAU with a threat of liquidation.
The researcher recommends that the organisation put in place restrictions and strong measures to
make sure that managers strongly commit themselves in enhancing budgetary control policy to
help AAU achieve its objectives. Further recommendations included in the organisation gives
short-term courses in relevant fields of Accounting, Finance and Effective IT Techniques.
Description
A Research Report Submitted in Partial Fulfillment to the School of Business and Management for the Award of a Bachelor's Degree in Business Administration of Kampala International University
Keywords
Budgetary Controls, Organization's Performance, Action Aid