Budgeting As Planning And Control Tool Of Prudential Spending In A Service Oriented Organization (A Case Study Of Nigerian Ports Authority)

ABSTRACT

This research work is carried out to determine the impact of budgeting as a planning and control tools of prudential spending in a service oriented organizations with special reference to small and medium scale enterprises. This topic is chosen because of dearth in the awareness as regards the contribution of budgeting and budgetary control in the improvement of the overall performance of a service oriented organization. However for the purpose of this work, the researcher highlights the purpose of an affective budgetary control of prudential spending in service oriented organization. Types of budgets preparation, budget manual as well as the budgeting concepts with emphasis on the Planning Programming Budgeting System (PPBS) was dealt with extensively in the project work by the researcher. Data were collected from both primary and secondary sources the analysis of the researcher brought out a population size that he used to determine the basis for the information gathered and analyzed. The use of chisquare (x2 ) helped to further the test of the data gathered and interpreted. The study revealed that budgets are related to activities with common objectives and the feedback system in a service oriented organization is adequate. It was also gathered that budgeting preparations in the service oriented organization is based oii traditional or incremental budgeting system. Based on the result of (lie hypothesis empirically tested the researcher concluded that the impact of budgeting as planning and control tool is positive and that effort should be made to educate staff on the need for implementation of budgetary control system. The researcher also warn strictly that for better result to be achieved in government parastatals the stated recommendation should be adopted.