Question

Application of budget and budgetary control measures in a nonprofitable organization: A case study of the Apostolic church of Ghana

Answer 1

  APPLICATION OF BUDGETING AND BUDGETARY CONTROL OF NON PROFIT ORGANIZATION

INTRODUCTION

OVER VIEW OF THE STUDY

The origin of budgeting could be traced to the cradle of civilization where joseph according to the bible made a forecast of corn supplies and planned pharaohs investment and consumption policy in light of its budget was used in England in 18^th century.The budget principles of supply as well as the use of funds is still fully recognized in modern business budgeting .

Modern religious organizations requires the use of some technique in the formulation and adoption of planned and defined systems include budgeting variance analysis, and budgetary control.The process of setting goals or objectives to be achieved in some future time and determining how these goals are to be reached is described as planning,translating this planning into religion targets can be described as budgeting in religious organization .

The process of establishing a budget is known as budgeting while the process of assigning responsibilities for achievement of the budget, measuring actual performance and comparing it with the planned performance is known as budgetary control .

STATEMENT OF PROBLEM

This research work is encouraged to help in highliting the problems that militate against the applicaton and effective utilization of budgeting and budgetary controls of Apostolic church of Ghana.

Specifically the following problems were addressed .

1.Parish was unable to accomplish budget goals

2.There were variances between budgeted and actual performance in the parish

3.Committee members were unable to exercise control on the budget system because of lack of adequate experience .

4.Even formulating master budget at parish level had been a problem and delayed previous years budgets .

5.Parish was unable to monitor both compliance with and deviation from the budgets target .

OBJECTIVES OF THE STUDY

Budgets are essentially forward looking .It is a means to an end and not an end itself;hence it covers the area of responsibility of one specified person so that his performance can be measured at the end of budget period .

These are the objectives of this study

1.To determine why it was unable to accomplish budget goals

2.To find why there were variance between budgeted and actual performance

3.To examine whether lack of experience contributed to committee inefficiency in terms of budgetary control .

4.To ascertain why there has been delay in formulation of budget .

RESEARCH QUESTIONS

1.What are the problems of budgeting in your organization ?

2.To what extent does budget serve as an effective tool for planning ?

3.What are the causes of variances in your budget

4.To what extent does your parish analyze the budget variances ?

5.To what extent are committee members educated on the budgetary control system ?

6.What factor do you consider in allocating cost ?

SCOPE OF STUDY

This study covers the budgeting and budgetary control of non profit making organization .The process of budgeting in church are taken care of, starting from unit level to parish level , that is preparing masters budget for the parish .

SIGNIFICANCE OF THE STUDY

It is important that after the formulation of all the budgets, all committee heads of non profit organization responsible for actual results and should accept the part that they have to play in achieving them .Hence, this study is significant in the sense that :

1. It will aid non profit making to know whether budgeting play a role towards ensuring efficient rendering service .

2. It will help Apostolic church to know the role played by committee members in budgetary process and whether they ensure adherence to the budget .

3. It will be help to non-profit making organization to know the rolr of budget as a tool for effective and efficient management of resources .

LIMITATION OF RESEARCH

In course of this research, the researcher met with some problems like non challant attitude of committee member who was rather too busy .lack of finance also posed some problem .The fairness of this results depends on how truthful the respondents are .