Factors Affecting Budgetary Control On the Financial Performance in Local Government. A case Study of Binyiny Town Council, Kween District

TABLE OF CONTENT PAGE

DECLARATION .................................................................................................................................................... i

APPROVAL ........................................................................................................................................................... ii

DEDICATION ...................................................................................................................................................... iii

ACKNOWLEDGEMENT ................................................................................................................................... iv

ABBREVIATIONS ............................................................................................................................................... v

CHAPTERONE .................................................................................................................................................... 1

INTRODUCTION ................................................................................................................................................. 1

1.0 Introduction ............................................................................................................................................. 1

1.1 Background ............................................................................................................................................. 1

1.2 Statement of the Problem ....•................................................................................................................. 5

1.3 Objectives of the Study .......................................................................................................................... 6

1.2.1 General Objective ................................................................................................................................... 6

1.3.2 Specific Objectives ................................................................................................................................ 6

1.3 Research Questions ................................................................................................................................ 6

1.4 Scope of the Study ................................................................................................................................. 6

1.4.1 Geographical Study ................................................................................................................................ 6

1.4.2 Time Frame ............................................................................................................................................. 6

1.5.3 Conceptual framework ........................................................................................................................... ?

1.6 Significance of the Study ....................................................................................................................... 7

CHAPTER TWO ................................................................................................................................................... 8

LITERATURE REVIEW ..................................................................................................................................... 8

2.0

2.1

2.2

2.2.1

2.2.2

2.2.3

Introduction ............................................................................................................................................. 8

Concepts .................................................................................................................................................. 9

Review of Related Literature .............................................................................................................. 10

Forms ofbudgeting .............................................................................................................................. 10

Effects of budgets on fmancial performance ..................................................................................... 11

Factors that influence Financial Performance ................................................................................... 14

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CHAPTER THREE ............................................................................................................................................. 17

METHODOLOGY .............................................................................................................................................. 17

3.0 Jntroduction ........................................................................................................................................... 17

3.1 Research Design ................................................................................................................................... 17

3.2 Target Population ................................................................................................................................. 17

3.3 Sample Size and Sampling Procedure ................................................................................................ 17

3.4 Data Collection Methods ..................................................................................................................... 18

3.5 Data Collection and Jntel]Jretation ...................................................................................................... 19

3.6 Validity and Reliability ........................................................................................................................ 19

CHAPTER FOUR ............................................................................................................................................... 21

DATA ANALYSIS, PRESENTATION AND INTERPRETATION ............................................................. 21

4.1 Jntroduction ........................................................................................................................................... 21

4.2 Profile of the Respondents .................................................................................................................. 21

4.2.1 Gender ................................................................................................................................................... 21

4. I .2 Level of education of the respondents ................................................................................................ 21

4.2.2 Analysis of Budget-based Knowledge ............................................................................................... 22

4.4. I Respondents views on whether they understand the term budgeting .............................................. 24

4.4.2 Respondents views on whether Binyiny Town Council, Kween District local government carries

out budgeting ........................................................................................................................................ 24

4.4.3 Respondents views on whether they know the department responsible for budgeting .................. 25

4.5 Assessment of how budgeting affects financial performance at Binyiny Town Council, Kween

District ................................................................................................................................................... 25

4.5.1 Rresponse on whether budgeting affects financial performance .................................................... 25

4.5.2 Response on whether budgeting has impact on effectiveness of plan implementation ................. 26

4.6 Assessing other factors that influence financial performance ofKween District Local

Government. ......................................................................................................................................... 27

4.6.1 Rresponse on Debt leverage ................................................................................................................ 27

4.6.2 Response on Liquidity ......................................................................................................................... 27

4.6.3 Respondents' response on size of the organization ........................................................................... 28

4.6.4 Response on organization age ............................................................................................................. 28

4.6.5 Respondents' response on Management Competence Index ........................................................... 28

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4.6.6 Respondents' response on Degree of innovation .............................................................................. 29

4.6.7 Respondents' response on Degree of centralization ......................................................................... 29

CHAPTER FIVE ................................................................................................................................................. 31

SUMMARY OF FINDINGS, DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS ........... 31

5.0 Introduction ........................................................................................................................................... 31

5.1 Sununary ofFindings ........................................................................................................................... 31

5.2 Discussions ........................................................................................................................................... 31

5.3 Conclusions ........................................................................................................................................... 32

5.4 Recommendations ................................................................................................................................ 33

Appendix A .......................................................................................................................................................... 35

APPENDIX II: RESPONDENTS' INTERVIEW SCHEDULE ..................................................................... 35

SECTION B: COLLECTING DATA ON INDEPENDENT VARIABLES ................................................. 35

REFERENCES ..................................................................................................................................................... 39