SAMARA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

ASSESSMENT OF BUDGETARY PERFORMANCE

(CASE STUDY DUBTI WOREDA FINANCE )

A RESEARCH PROPOSAL PAPER SUBMITED TO DEPARTMENT

OF ACCOUNTING IN PARTIAL FULFILLMENT OF
REQUIRMENTS FOR BACHLOR OF ART(BA) DEGREE IN
ACCOUNTING

BY:-
ABDU MUHIE

ADVISOR:-
EYASU PAWLOS(Msc)

APRIL 2015
SAMARA, ETHIOPIA

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 TABLE OF CONTENTS
Title Page
1. Table of Content ------------------------------------------------------I

CHAPTER ONE
1. Introduction
1.1 Background of the study ---------------------------------------1
1.2 Statement of the problem --------------------------------------3
1.3 Objective of the study--------------------------------------------4
1.3.1 General Objective---------------------------------------------4
1.3.2 Specific Objective----------------------------------------------4
1.4 Significance and Scope-------------------------------------------5
1.4.1 Significance of the study-------------------------------------5
1.4.2 Scope of the study--------------------------------------------5
1.5 Limitation of the study-------------------------------------------6
1.6 Methodology -------------------------------------------------------7
1.6.1. Source of data-----------------------------------------------7
1.6.1.1. Primary data-----------------------------------------7
1.6.1.2. Secondary data--------------------------------------7
1.7. Sampling techniques-----------------------------------------------7
1.8. Method of data analysis -------------------------------------------8
References ----------------------------------------------------------10

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 CHAPTER ONE

INTRODUCTION
1.1 Background of the study
Budget is a predetermined statement of management policy during a given
period, which provides a standard for comparison with results actually
achieved (Brown and Haward 8th edition). Write here budgetary performance of
the organization against many problems such as budget deficit, unequal
distribution of budget, etc. Hence, there should be an inviting effort to
minimize budget deficit (Chandra 1998 in page 205). This study attempts to
give a good answer for why budgetary performance are assess on the
organization and why budgetary performance are needed to the office.

The study will focus on the assessment of budgetary performance in the

organization. Each year there is an inventory valuation process, which is
taken up on regular basis out according to the growth of the office; it was not
fully recorded and not taken the extent as a means of budget utilization.

Most of the time budget deficit should be controlled by finance office and by
periodical performance of the office. However, taking this case into account
there is a gap created within the office system which affect the goal of the
office.

The study will be focus to show the solution of budgetary performance, deficit
and how to assess or utilize the budget to the office. The objective of the study
is to assess the budgetary performance in Dubti woreda finance and economy
development office. If they are good position it is better to keep on, if not to
reduce them try to manage it.

Properly managed budgetary performance is good to the office development.

But absence of this the office will be not fulfill their goals and objectives.

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The budget at the right place supports the governmental objectives. Office
performance is similar in all governmental finance offices and all need
adequate budgetary performance management, Assessment of budgetary
performance will be consistent with the finance office to utilize the planned
budget.

Generally now a day, every business is required budgetary performance, it will

be available management tool, express plan for the future year and it states
how available resources will be employ and what additional resource will be
need.

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 1.2 Statement of the problem
The office always prepare annual budget for the current year activities by
designed budget proposal and its active implementation of objectives.
Budget is one of the techniques used to control the organization activity and it
is also quantitative expression for set of time period and a proposed future plan
of action by management (Habtamu M.2011, p-9)

Budget is the formal expression of the plan and objective of management to the
organization which covers all phases of operations for a specific period of time.
(Habtamu m, 2011:p-16)

According to Habtamu, Good budgetary performance can be a vehicle for

addresing of objectives and goals in the most carful way. But in preparing
budget many problems were take place and consequence creats a great impact
on the performance of the organization. The problems are using inappropriate
budget preparation procedures & not well utilization of budget for each
department within the organization.

The problem of budgeting is not only in preparation stage but also on

implementation. The concern of this study will be to examine the assessments
of budgetary performance in particular area Dubti woreda finance. The study
is primarily focus on the office, in order to give the final solution and
suggestion to the problems.

The researcher can raise the following question that will be answer in this
course of study.
 What are the factors that affect budgetary performance of the office?
 How to assesse budget utilization on Dubti woreda finance office?
 Why budgetary performance is necessary?
 What means the office use to prepare good budget system?

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1.3 Objective of the study
1.3.1 General Objective
The general objective of the study will be the assessment of budgetary
performance in case study of Dubti woreda finance office.

1.3.2 Specific Objective

The specific objectives of the study are the following
 To see the office effectively implement its budget or not
 To indicate for the finance office how properly managed budget is
important successfully and to exhibit which factors affect the demand for
budgetary performance.
 To know the purpose of budgetary performance in the finance office
 To identify ways and means by which the office budgetary performance
improved to best level expectation.
1.4 Significance and scope of the study
1.4.1 Significance of the study

This study will help the office to have a good budgetary practice and to
properly budget the available resources and to effectively implement it. In
addition to this study will be use to provide ground line information for the
office about its budgetary performance, which is very help full for the office
advancement to provide a better service.

The study will helps to examine about the factor affecting budgetary
performance in the organization and create awareness to the office about
budget utilization and implementation, which requires improvement.
Furthermore, it will helps to identify ways and means by which the office
budgetary performance is improved to the best level expectation, in addition to
the above the following play a great role to avoid the problem of budgetary
performance for the future society

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 This study will Initiate the employees to undertake a great measure over the
problems concerning budgetary performance.

1.4. 2 Scope of the study

To come up with effective and better study, it was better if the study will be
conduct on over all office performance as compare with other similar offices
performance but due to the financial and other constraints this study will
conduct only in Dubti woreda finance there fore the study will be limit to the
office.
1.5 Limitation of the study

In doing this research paper, the researcher may face the following problems.
- During data collection some respondent may not be willing to give information
and there may be lack of sufficient materials from the expect office and also
there may be the time and financial constrains

1.6. METHODOLOGY
1.6.1 Source of data
To collect the necessary data the researcher will use both primary and
secondary source of data.

1.6.1.1Primary data:- Will gather from employees of the office by

distributing questionnaire and interview through related parties
Questionnaire:- contain both open-end and close-end questions
Interview:- by directly communicate with the finance manager

1.6.1.2. Secondary source of data: which will be collect or obtain from

review of select materials which are related to the assessment of

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 budgetary performance, like reference book, magazines, by using
internet and the office budget report document.

1.7. Sampling techniques

The sample selection will caring out by a research, so that it will be reliable as
to the representation of the total population, who will believe high civil servants
to the finance office.

The research, therefore, focus on the employee of the office by using simple
random sampling techniques to acquire the necessary information and to make
clear investigation for the current research. The total population of the study
will be include 28 employees out of the total, the researcher will study only
fourteen (14) or fifty percent (50%) randomly will select employees taking this
in to account on factors it will found necessary to use personal judgment.

1.8. Method of Data analysis

In this study the data will be analyze and interpret using different methods,
the method include tabulation and percentage. Tabulation will use to
arrange data in a table or other summary format to facilitate the process of
comparison of various data analysis.

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 REFERENCE

1. Cherrington “Cost Accounting managerial Approach 2nd edition

2. Hrinshikesh Chakraborty & Srijit Chakraborty 1997 Management
Accounting
3. M.N. Arora Cost Accounting Principle and Practice 8th edition New
Delhiviskas (2003)
4. Needles, Anderson & Caldweel 1994 Financial and Managerial
Accounting third edition
5. Ronald W.Hilton, Michael W.Maher & Frank H.Selto 2000” Cost
management stratagies for Business Decisions
6. Schaum’s Theory and Problem of financial management second edition
7. Habtamu Meles, assessment of budgetary performance,2011 jimma
university. Unpublished research

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