Computer Based Budgetary Monitoring System in Local Government (a Case Study of Afikpo North Local Government Area of Ebonyi State)
The success of any form of business, be it public or private depends largely on the clarity of its mission and objectives , the timely implementation of appropriate operational techniques , proper assignment of functions and responsibilities, measurement of result against plan, identification of variation and adoption of control measure where necessary. The need to quality business overall expectations and to achieve the goals of an organization within a stipulated time frames necessitates the rational for budgeting. Budgeting has to do with a form’s plan of action over a given period (usually one year). The project “Computer – Based Budgetary Monitoring System in Local Government” examines the concept and development of a computerized budgeting in Afikpo North Local Government. It was evident from this study that not only is the present system incapable of the budget preparation, because it is very tedious and slow. This project has developed a computerized system that will facilitate budget preparation, produce accurate, effectiveness, efficiencies and more reliable result. This project was developed using Microsoft Visual Basic 6.0.
Dfiffner and presthus (1967) stated that budget is a fiscal tool in the hands of government which is effectively used for the accomplishment of various socio-economic objectives
ARTHUR (1955) revealed more saying that budgeting is concerned with the translation of financial resources to human purpose , he further said that since funds are limited, a budget might become a mechanism for allocating resources ,if emphasis is placed on receiving the largest detaining returns for a given sum of money and obtaining the desired objectives at the lowest cost ,a budget may become an instrument for pursuing efficiency in order to obtained desired objectives efficiency in any budget analysis
budget at every level of government is seen as a tool hat assists in estimating and meeting the cost associated with social events ,the problems faced by budget at local government level need urgent solutions , as much as it worked at other levels ,it is relevant to budget
1.1 BACKGROUND OF THE STUDY
The two basic elements of any budget are revenue and expenses according to brown and Howard “budgetary control is a system of controlling cost which includes the preparation of budgets co-ordinating the departments and establishing responsibilities comparing actual performance with the budgeted and acting upon results to achieve through a budgetary monitoring system are :
I. allocation of resources
ii. Redistributive activities
iii. Economic stability
iv. Management of public resources
1.2 STATEMENT OF THE PROBLEM
The question whether budgetary in the local government is formality or reality has attracted the attention of many scholars ,this study is an attempt to investigate the effectiveness of budgetary control in local government system, it tends to discover how local government can make use of a prepared budget to achieve effective and efficient result.
The study will specifically attempt to answer the following questions:
- what are the causes of failure in the local government areas?
- What budgetary control techniques can give efficient results?
- How can effective budget monitoring system bring about efficiency in the local government system?
- What effect can the poor application of budget monitoring system be to the local government?
1.3 OBJECTIVES OF THE STUDY
The primary objective is to determine how budget monitoring system enables government to more effectively plan, control, coordinate and evaluate its activities
The secondary objectives includes the following
- To know how effective budget monitoring system can bring about efficiency in the local government
- To know the effect of poor application of budget monitoring system to local government system
- To know whether the poor application of budget monitoring system is the cause of failure in the local government
1.4 SIGNIFICANCE OF THE STUDY
The study will be beneficial in many aspects more especially as it concerns the meaning of budget monitoring and types of budgeting
This work is also significant in the sense that it will:
- Determine whether budget monitoring system facilitates planning and controlling functions of management in any given organization
- Provides a benchmark for measuring performance
- Serves as a documentary evidence of the government policies, economic growth, development, employment etc.
1.5 LIMITATION OF THE STUDY
The author limits the scope of this work to Afikpo north local government area as regard to their budget by the use of computer system and this research work seeks to pinpoint improvement in budgeting and it’s control in every organization ,the above would enhance the researcher to reach useful conclusion and also make useful recommendation
1.6 DEFINITION OF TERMS
Nweze (2004) in his profit planning stated that budget is a plan quantified in monetary terms ,prepared and approved prior to a defined time ,usually showing planned income to be generated and or expenditures to be incurred during that period and the capital to be -employed to attain a given objectives
Akpakpan (2006) defined budgeting as the process in which the objectives, policies, and policy measure, funding requirements, sources and allocation of funds stated in the budget are determined
This is a process that determines as systematically and objectively as possible the relevance, efficiency, effectiveness, impact and sustainability of activities in the light of the budget .Evaluation is carried out during implementation, a review after completion.
This is an account of a particular event situation, activity, programme and project of concern such as a budget which provided based on due investigations and contains facts, opinions and recommendations on which to base effective decision
Akpakpan (2006), annual report could be the production and publication of an annual report and financial statement in a timely manner, completes the accounting cycle .This could report on performance against predetermined objectives and the budget approved at the start of financial year.