A CRITICAL ANALYSIS OF BUDGETARY CONTROL:
ITS EFFECTIVENESS AND EFFICIENCY IN A NON PROFIT MAKING ORGANIZATION
A CASE STUDY OF N.C.R.I BADEGGI
PROPOSAL
            This research work will be A very crucial study for non- – profit making organization in Nigeria. The role of non – profit making organization in any economy is indispensable. To give this effort proper direction, it is identifiable that the key ingredient in translating this dream into reality is to bring about a clearer understanding of the need for an effective and efficient budgetary control in a non – profit making organization.    The  research will be carried out through series of oral interviews and distribution of questionnaire in collection of data and relevant information to the employees of national cereals research institute Badegi. The  data collection  will be analyzed as well as interpreted  by there researcher from the testing and proofing of hypothesis. The researcher will be faced with the following constraints:
-                      Insufficient time
-                      Poor response from the employees
-                      Insufficient money
                        inorder for the company  to achieve their objectives the researcher will recommend  that there should  be budgetary control so that works will be aware of the objective of the organization and  sud- ordinates opinion considered in the preparation of the company’s budget estimate.
TABLE OF CONTENTS
CHAPTER ONE:  Introduction           
1.1              Purpose of the study
1.2              Statement of the problem
1.3              Objective of the study
1.4              Scope of the study
1.5              Research question
1.6               Research hypothesis
1.7              Limitation of the study
1.8              Definition of terms
CHAPTER TWO
LITERATUREE REVIEW
2.1              Budgetary control in a non profit organization
2.2              Background information
2.3              Mgt. And administration of budgetary control
2.4              Budget preparation
2.5              Budget implementation and control process
2.6              Reasons for production of a budgetary control system
2.7              Problems associated with the budgetary control system
2.8              Organization structure
CHAPTER THREE
RESEARCH METHODOLOGY
3.1              Research design
3.2              Area of the study
3.3              Population of the study
3.4              Sample and sampling procedure/ technique
3.5              Instrument for data collection
3.6              Validation of the instrument
3.7              Reliability of the instrument
3.8              Method of data collection
3.9              Method of data analysis
CHAPTER FOUR
PRESETATION OF DATA AND ANALYSIS
4.1              Presentation and analysis of data
4.2              Testing of hypothesis
4.3              Summary of result
4.4              Interpretation of results
CHAPTEWR FIVE SUMMARY/ CONCLUSION AND RECOMMENDATION
5.1              Discussion of results and findings
5.2              Conclusion
5.3              Recommendation
5.4              Suggestions for further research
Bibliography.
                                                CHAPTER ONE
INTRODUCTION
    The  essence of budgeting is to provide an essential element of control in an organization  in order to facilitate the achievement of set objectives .The control process is the fundamental   organization           link between the manager and the other people in an  organization   in  a non profit making organization output various with the objective with which they were established. The objective of public organization could be social and or development in nature
. however this does not  means  that public organization can not make profit if government policy changes to   privatizing or commercializing them. The main structural problem of these type of organization is the sacrifice of the organization  profitability for social efficacy which must be achieved in research  institute Badeggi falls into this category.
With the use of budget as a control tool, there is Ned for planning a the performance of an organization.  Planning  as  defined by C.I.M.A is  an the establishment of objective and the  formulation evaluation and selection of the formulation of the policies strategies  tactics and action required to achieve these objective, by planning activities in advance more economical use is made  of the  organization resource and facilities and a fairly accurate estimates of it s future resources requirement can be determined.
One of the outstanding features of budgetary control is that policy plans resource s and activities of the organization are coordinated integrated   and controlled to achieve the desired objectives.
Budgetary control is a means of providing some centralizing control where activities and also responsibilities are decentralized.
It is also the use of budget for assigning responsibilities planning and controlling performance and guiding managerial and other activities of the firm towards the achievement of organizational objectives. It involves, setting out clearly defined  forgets of output , income and expenditure for each section of the organization .Embodying these forgets of performance in sectional divisional and departmental  budgets co0mpariing these budget standards with actual performance .identifying deviations or variances from the budget and taking corrective action or bringing performance in line with budget targets .this is because all the heads of departments in the organization are involved in the preparation and implementation of budgets, while management5 control the whole activities of the organization.
                        Budgets are prepared as a result of committee work .Each cmmittee constituting of representatives of various departments and functions to be controlled .the heads of departments are  responsible for the respective department budget
Each executive or manager can then fully appreciate his responsibilities ,as they are reflected in his department budget .Any deviation of the actual result from the estimate and  forecast are traced back to the department head or manager.
1.1       PURPOSE OF THE STUDY
     Most of the non_ profit making organization in Nigeria are  governmental in nature, this is because they are mainly set up for social and developmental purposes, this usually leads to a poor planning and control measures. The purpose of this study is to critically analyze the budgetary control system as a planning tool in non_ profit making organization using National cereals  Research  institute as a case study. This research work intend to bring about clearer understanding of the need for an effective and efficient budgetary control in a  nonprofit making organization which will also  be of benefit to other similar
Organization leading to an improvement in government owned organization budgetary control system.
1. 2    STATEMENT OF PROBLEMS
     public sector  and other nonprofit making organization are often noted for inefficiencies  and poor management, which is as a result of poor  planning through repetitive budgeting. Recent studies in the area of budget and resources allocation have shown lack of proper analysis. There is a general lack of the concept of why we have a budget at all. This issue calls for immediate  investigation of budgeting as a tool for resources planning and performance control and to recommend how it can function properly.  
1.3.       OBJECTIVE OF THE STUDY
      The  main  objective to be achieved from this research work is that, it will; serve as a means of measuring the output or the work performed and to compare it with the cost of input. This comparison provides a basis for indicating efficiency and effectiveness.
      The process of comparing actual results with planned and evaluating variance if any set a control frame works which help expenditure to be kept within an agreed limit.  If this deviations are noted, so that action can be taken to correct this in the future.
1.4       SCOPE OF THE STUDY
           The study intend to cover budgetary control as it affect National cereals Research institutes {N.C.R I} . it will  examine its budgeting control as a measure of performance.
1.5              RESEARCH QUESTIONS
The followings are the research questions of the study.
1.                  Historical Background
A         Was there any Decree /Act by Government that established the institute? (If any, quote with date.)
B         What are the objectives of the Federal Government in establishing the institute?
C         How does the institute relates with the ministry?
 D        What is the organization structure of the institute like?
E          Looking at the organization structure, what are the function of this department?
2.                  Funding / Expenditure
A         How do you budget for the institute / or what are the Department that participate in the preparation of budget and disbursement of the fund to Department etc?
B         Do you have a budget committee for the preparation of budget. What does it comprise of?
C         It is understood that Federal Government plays a major role in funding, what are the other sources of fund, with regard to sponsorship, loans, etc. Take a look at three consecutive financial fear.
3.                  Budgetary Control   
A         How does the management control the activities of the institute with regards to administration of budget, in respect of resources, personnel etc?
B         Is there any external monitory agent from the parent ministry that supervise the management? How is this carried out?
PROVISION FOR NO 2 ©
Funding / Expenditure for a particular fiscal year
Sources of fund
Federal Government Grant
Sales of produced crops
Sponsorship
Loans
Budget    Actual    Variance    remark
  Staff salaries/ wages
Branch members allowance
Insurance and iciness
Rents
Electricity water and gas
Professional charges
Stationeries, printing
Admin/ establishment Gener. expense
Advertisement
Board meeting expenses
Transport and travelling
Audit fees and expenses
Bank changes and commission
Staff training and conference
Research works:
-          Mechanical
-          Field work etc.    Budget    Actual       Variance             remark
 1.6       RESEARCH HYPOTHESIS
The underlisted hypothesis from the framework for carrying out the study
HO:      Budgetary control effective and it s efficiency is not facilitated by the financing inducing role of government.
HI: Budgetary control effectiveness and its efficiency is facilitated by the financial inducing role of government
HO: Effectiveness and efficiency of budgetary control does not depend excessively on the provision of basic infrastructures .
H1: Effectiveness and efficiency of budgetary control expends excessively on the provision of basic infrastructures.
HO: Budgetary control are not the hallmark for development of the economy
H1: Budgetary control are the hallmark for development of the economy.
1.7              DEFINITION OF TERMS
Actual Performance – Is the real facts on how well or badly the targeted objective was achieved.
Budget – Is a statement showing how money will be spent over a period of time.
Critical –      Expressing  disapproval  on the expected performance.
Efficacy –     The ability to produce
Effectiveness – Ability to produce  the intended or actual result being
     efficacious and efficient.
Evaluation – Finding out or stating the value of something.
Forecast -        To  budget in advance what is likely to happen
HO       -           Null hypothesis
H1        - Alternative hypothesis Alternative hypothesis is what the researcher
thinks most of the respondent will agree with in relation to the research problem or the true description of the phenomena. Null hypothesis is not and the opposite.
Hallmark – Mark to indicate standard.
Inducing – Persuade, bring in labour
Planning – Is the act or process of intending  to achieve an objective in advance.
Variance – Is the amount which brings difference between the actual and the budgeted.