Budget and Budgetary Control Practices in the College of...

BUDGET AND BUDGETARY CONTROL PRACTICES IN THE COLLEGE OF TECHNOLOGY EDUCATION, KUMASI 1.0 BACKGROUND OF THE STUDY Universities and colleges need to recognize that they too are businesses (Dr. Brendan Nelson, 2002). Investors, senior executives and the business community have long sought for ways to better control the companies and enterprises they run. As part of a broader micro-economic reform of the public sector, the higher education sector has been targeted for its perceived role for improving the economic status of a nation (Currie Vidovich,1998; Marginson, 1997b). Government skeptical about the effectiveness and efficiency of University operations have issued policies and undertaken reviews of the sector with the intention of†¦show more content†¦These budgets from different units, subunits and other sections are incorporated into a master budget period of implementation. In the course of implementation, actual results are compared with budgeted, variances are noted and appropriate measures implemented for correction. In the view of Garrison and Noreen (2003) this is what budgetary control is all about. This suggests that for effective budgeting to be realized budgetary control must be an accompanied tool. According to Anthony and Young (1999) budgeting and budgetary controls though important for all organizations, it’s more important in non- profit making organization than in profit making organization due to its cost structure and spending flexibility. 1.2 STATEMENT OF THE PROBLEM Budgeting and budgetary control practices are employed by many institutions to ensure the orderly and efficient running of their operations as well as compliance to management policies and internal control practices. Every organization develops a set of goals such as 3 profitability, growth and other with the hope of achieving them in the face of limited resources. Economic theory however states that an organization should conduct itself in a certain economic manner to be able to ensure an optimum allocation of resources for any anticipated objective to be achieved (McConnel and Brue, 1999). Managers who have opted and practiced budgeting and budgetary control are of the opinion that theShow MoreRelatedLiterature Review on Training and Development8683 Words   |  35 Pagesstress on human resource training and development (HR Tamp;D) to provide strategic and cost efficient training services for employees has never been higher.Employee performance expectation keeps rising while the economic recession has caused training budget to shrink causing the Human Resource Training and Development unit to do more with less. Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as