DOWNLOAD THE COMPLETE PROJECT

1103 Users found this project useful

CHAPTER ONE 
INTRODUCTION
1.1   BACKGROUND OF STUDY
One on the ultimate means of evaluating the performance of a public sector can be attributed to budget or budgetary control. Most managers planning and control to determine the goals and objectives of an organization is geared towards accomplishing all activities of the organization to achieve its desired goals. In other words, to ensure that the company will make a projection of its cost and revenue (budget) while (control) is the cost of ensuring that corrective actions are taken whenever cost/expenses incurred are not of the same tune with what is budgeted by means of the management performance evaluation. Budget, when cost exceeds the expenditure (Surplus) and expenses may exceed cost (Deficit). It is balanced when cost equals to expenses. Budgeting is universal and can be applied in private and public sectors, since it has the sole aim of achieving its organizational goals.
According to Wildavsky (1964), budgeting could serve as a planning purpose. Planning is very vital, that’s why all business embraces the planning actions to achieve corporate goals. It’s the process of establishing goals and objectives and courses of action to attain it. Planning does not really guarantee the success of an organization, because plans may be futile sometimes due to the faulty performance of the functions of organizing, motivating and controlling. In budgeting, the budgets must know the company’s areas of excellence, areas of monopolistic power, areas of competence and weakness as well as applying ‘SWOT ANALYSIS’. To ensure that a realistic budgeting is produced, the company should know the existing and foreseeable threats and opportunities in their operating environments. This project is centered on budgeting as a means of performance evaluation in public sector, using Lagos State University (LASU) Ojo as a case study. Investigations will be carried out on how the institution prepares and executes its budget and how variances are reported for control purpose.The setting of this study is Lagos State University (LASU) located at Ojo local government area of Lagos State. A bill passed by the Lagos State House of Assembly and assented by the state government on the 22nd of April, 1983 established the institution. There (3) committees were involved and they recommended the followings: (i) Agbalajobi committee (April 1981) University of Technology.
(ii) Sobowale review committee (June 1982) conventional university. (iii) Dele Fagbemirokun review committee (Feb. 1984) continued with the University project and recommended a main campus at Ojo and Law and Humanities (Administrative Record, Lasu 2004). Lagos State University took 342 students in 1984, in 1989 the number of students increased to 4459, while in 1994, it increased with 968 staffs made up of 300 academic, 176 administrative technical staff and 492 junior staff, about 60% of the academic were professors (Administrative Records, LASU 2004). Presently, the institution have about Eleven (11) campuses, both Part-Time and Full-Time with satellite campus, amongst are; Ojo, Epe, LASU Comm, School of Communication, Anthony, Agege, Jibowu, Isolo. Ojo is the main campus, located at Badagry Expressway, Ojo Lagos while Epe is the mini campus for Engineering and Pre-science degree programme. Ikeja is the Medical school, while the rest are satellites campuses. Hence, in all, the institution now have about Eight Faculties, comprising of Arts, Science, Social Science, Management Sciences, Law, Education and Engineering. The institution runs diplomas, degree and postgraduate programme. The following professors served as Vice Chancellor of Lagos State University: (i) Professor Folabi Olumide (1983-1989) (ii) Professor (Mrs) Jadesola Akande (1989-1993) (iii) Professor Enitan A. Bababunmi (1993-1995) (iv) Professor Fatiu Akesode (1996-2001) (v) Professor Abisogun Leigh (2001-2005) (vi) Professor Lateef Akande Husein (2005 to date) With the relevance to the focus of this study, administrative records, Lagos State budget allocation record, and other Financial documents like Education Trust Fund (ETF) will be used. 
1.2   STATEMENT OF PROBLEM
Budgeting is an outline of organizations revenue expectation and expenditure during a fiscal year. Hence, the budget is a powerful instrument in the public sector in achieving set objectives, most especially, management objectives. Against this backdrop, this research work is meant to proffer solution to the following problems putting the case study into consideration; Does Lagos State University management embrace the formulation and implementation of a comprehensive budget?
What system of budgeting is the management of LASU using?
Does the system of budgeting adopted, enhance quality performance of LASU? How efficient and effective are the procedures involved in the reporting of variances?
Does the LASU management use the budget as the basis of performance evaluation in its administration?
Does the budgeting form the basis of LASU’s Management decision-making process or it’s just left as the paper work?
1.3   OBJECTIVES OF STUDY
The research is aimed at investigating and identifying the problems facing institution that formulates and implement budget as a means of performance evaluation in the public sector. It seeks to face the followings enhance quality performance of Lagos State University, Ojo To compare budgeting as a means of performance evaluation based on the literature review and study the public sector. To investigate how variances are reported. To describe the objectives and procedures involved in the budget processes. To compare the importance of budgeting in decision-making.
1.4   RESEARCH QUESTIONS
The following research questions are to be addressed; What are the steps involved in preparation of budget? What type of budgeting does LASU use? What are the factors responsible for preparation and implementation of the budget? Is the budget planned, actualizing the objectives of the institution and to what extent? Does budgetary control accomplish the objectives of the institution? How is budgeting in Lagos State University in conformity with what is written in literature review? What are the impacts and attitudes of budgeting on the path of students and staffs of Lagos State University? Who constitute the budget committee?
1.5   RESEARCH HYPOTHESIS
This enables the researcher to make a valid conclusion to either accept or reject the assumptions made or denied. This is in two parts: NULL and Alternative.
Ho : is denoted by null hypothesis.
H1 : is denoted by alternative hypothesis.
(i) Ho : That adequate control will not ensure efficient implementation of budget.
H1 : That adequate control ensures efficient and effective
implementation of budget.
(ii) Ho : That lack of budget discipline on the path of management and staffs does not hinder the corporate performance of the organization.
H1 : The lack of budget discipline on the path of management and staffs hinders the corporate performance of the organization.
1.6   SIGNIFICANCE OF STUDY
(i) The study will enable us to stimulate increasing interest on the paths of students and also institution sector in general.
(ii) The study is significant with its outcome and it’s expected to enlighten readers on budgeting and how it’s used as a means of performance evaluation.
(iii) It will enable us to focus on the use of budgetary control and its effect on production.
(iv) It’s expected to make organizations embrace budget and improve the quality of budgeting control in business organizations.
(v) Above all, the result is aimed at solution or ways of improving the purchase of budgeting in Lagos State University.
1.7  SCOPE AND LIMITATION OF STUDY
The entire work of this research will be focused on Lagos State University. More importantly, Lagos State University have about eight campuses within the Lagos Metropolis, therefore this research work shall be carried out at the main campus only in Ojo, Lagos. It will basically emphasize on state government budget allocation, it’s implementation and control mechanism by the management of the institution. Despite the great interest of the researcher has in topic resulting from his belief in the great importance of budgeting system as a means of performance evaluation, the study will be limited to some extent, due to the following constraints: Unavailability of some vital financial statement of the institution due to lack of transparency and accountability on the path of the management which is generally common in public sector. To some extent, researcher may not be assessable to some financial statement of the institution. Finance is another limitation to the study. This is due to cost incurred on acquisition of materials; payment for services rendered by typist, payment on photocopies bookbinding and others. This will constitute a great constraint on the path of the researcher.
It is assumed that the condition of the questionnaire by the employee may be at his disposal but not what is being practiced in the institution. Training will also contribute to the limitation of the study. Since time is very precious, the study will be limited to information within reasonable time. The study is limited to Lagos State University with the true view of what operate in other institution due to competitive advantage
1.8   DEFINITION OF TERMS
For the purpose of easier comprehension, it is necessary to gain a significant level of the familiarity with those terms, as they would be continually used in subsequent chapters. Budgeting simply means projection of the cost and revenue or organizations. It is being employed in all ramifications; parastatals, individuals etc. Budget planning and control. Planning is very important in any organization. Its universal and it helps an organization make necessary arrangement for the purpose of accomplishing all activities of the organizations to achieve corporate goals, while control is the process of comparing the actual results with the planned performance and highlighting variances encountered, which can be analyzed by cause and responsibility. Data also used in this research project could simply be referred to as various sources which materials are used for information. It can be grouped into primary and secondary data.
1.9   SUMMARY/CONCLUSION
This is the concluding chapter, denoted to summarizing what are contained in Chapter One – Four, drawing conclusions as a result of information gathered from the analysis and recommending appropriate courses of action to rectify differences in the course of study. This will involve the interview of how effective budgetary control is being used as a means of performance evaluation in public sector.
REFERENCES
Collin Drury (2000): Management and control account 5th Edition
Page 546, 551, 594
Ibitoyes S. (1983): The Hand Book of Budgeting Control, UK
First Edition page 5.
LASU (Administrative Records (2004)

  DOWNLOAD THE COMPLETE PROJECT