Budgetary practice and financial performance in selected private universities in Mogadishu, Somalia

Abstract

This study was set out to establish the extent to which budgetary practice affect financial performance of selected private universities in Mogadishu, Somalia; specifically the study intended to establish the (i) profile of the respondents, (ii) level of which budgetary practice, (iii) level financial performance, (iii) whether there is a significant difference in the level of which budgetary practice and financial performance in selected private universities in Mogadishu Somalia. The study used a survey design; specifically descriptive correlation and descriptive comparative; data were collected from 109 respondents using self administered questionnaires as the key data collection instruments. Data were analyzed at universities level using frequency counts and summary statistics and Pearson Linear Correlation coefficient at bi-variate level. The study findings revealed that there was a moderate level of which budgetary practice, there was also moderate level of financial performance, the level of budgetary practice and financial performance significantly differed among universities in Mogadishu city and that budgetary practice in the selected universities in Mogadishu is significantly correlated with financial performance From the above findings appropriate conclusions and recommendations including those for further research were made. Recommendations from the study were (i) The board of trustee should have appointed a permanent central budget authority committee that help the university budget formulation with the standards of university that exist in the world, the authority should also be given an office they operate and control the budget (ii) When formulating the budget, there should be methodology used for establishing the economic assumption of the budget publicly available, and economic planning office that develops the economic assumption should be opened the finance director shouldn’t be given in authority to increase spending once the budget has been approved by board of trustee of the university(iii)The university should improve an internal audit system and the finding of the audit institution should be performed to board of university and it should be transparent and available to the public (iv) The central budget authority committee should control for the achieving financial performance and should in charge of monitoring compliance with the.(v)Owners of the private universities should work hard to meet the budget practice as may be required continuously adjustment to fulfill those financial performance. in the private universities in Mogadishu