1.1 Background of the Study
There is a great need for effective planning and management of resources and the coordinating of human effort in achieve the enterprise objective. On an annual basis, Pan-African University have been preparing budget for her proposed in causes and expenditure for a fiscal period. Budgeting in private sector is usually in two phases of the financial management circle.
These consists of the short-term plans of the organization in term of policies programmed project activities and presetting of the yard stick for effective operations against which the numerous activities of the organization. They consist of execution accounting and internal control in which internally controlled. The impacts of budgeting planning and control in service of organization such as Pan-African University .
1.2 Statement of the Problem
Budgeting, planning and control as a tool for effective management of resources has fallen short of its effectuate in Pan-African University . This is because establishment of short-term plan which is designed to incorporate objective of the organization is not so. Established organization goals are not based on budget. This leads to the delay in budgets planning and control as effects that make it to be that monetary statement, financial statement qualitative cause of action which should have been approved prior to a define periods of time, does not condemn the goals and aspirates of a business outfit such as Pan-African University .
Budgeting planning and control can be the process of planning, organizing, leading and controlling and organization of human financing and information resources to budget organization goals in above is not handled by qualified executives and therefore budgetary planning and control is not done effectively and control is not done effectively by qualified managers. As a result of the above problem Pan-African University suffers a setback of budgetary planning and control. And this has suffer spurred the resources investigation into these problem in the area of budgetary planning and control so as to give solution and suggestion to management resources so as to bring in budgetary planning and control as a toll for effective management resources.
1.3 Objectives of the Study
The major objective of the study is to evaluate and access the challenges of budgeting and budgetary control in service or organization. To achieve is the following objectives are formulated.
1. To make recommend action based on the finding so far made by this study.
2. To identify if there is a effective implementation of budget in private owned establishment.
3. To evaluate and access the use of budget as an instrument of financial control in a service organization.
4. To find out if there are problem associated with preparation of budget in an organization.
5. To access the use of budget as a planning tool in achieving an organization goal.
1.4 Research Questions
1. Is budget used a tool for financial control in an establishment?
2. As a planning tool, does budget assists in attainment of organization goal and objective?
3. Is there an effective implementation of budget in the organization?
4. What are the difficulties and challenges of budgeting and planning control in the organization?
1.5 Significance of the Study
This study will be useful in some ways; firstly the management of Pan-African University will find it a useful tool for policy making. The business world may be further enlightened in the budgetary procedure, the challenges, and the use of budget as an instrument of financial control. This study may also be of importance of the government in the formulation of budgetary policy.
1.6 Scope/Limitation of the Study
This research work covers the activities and performance s of the management of Pan-African University firm who are vested with the responsibility of budget preparation and implementation. Finance at the disposal of the researchers were limited and may not permit more detailed work. The time allowed for completion and submission of this work is also a limiting factor. Despite the hindrance however the work was successfully undertaken.
1.7 Definition of term used in the study
Tools: It is an instrument used in a particular kind of work.
Planning: This is the process of drawing up course of action that is intended to be carried out in further by particular individuals with specific means to achieve specific objective at specific time.
Management: Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
Budgeting: It tells what activities are important and how resources should be allocated.
Control: It helps to check the errors and to take corrective action.
Profile Centre: This is the segment where a manager is responsible only for the profit obtained from operating the fixed assets, which are assigned to him by the head office.