THE EFFECT OF BUDGETING AND BUDGETARY CONTROL ON

ORGANIZATION PERFORMANCE IN LOCAL GOVERNMENT

(A STUDY OF OJO LOCAL GOVERMENT)

BY

AGBO CHINWENDU VICTORY

FPI/HND/ACC/23/065

A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTANCY, SCHOOL

OF BUSINESS STUDIES, FEDERAL POLYTECHNIC IDAH, KOGI STATE

IN PARTIAL FULFILMENT OF THEE REQUIREMENTS FOR THE AWARD OF

HIGHER NATIONAL DIPLOMA (HND) IN ACCOUNTANCY

AUGUST, 2025

1
 APPROVAL PAGE

The research work has been read and approved having met the requirements for the award of
Higher National Diploma (HND) in Accounting, Department of Accountancy, School of
Business Studies, Federal Polytechnic, Idah.

_______________________________ ___________________

SANI P. M Date

Project Supervisor

_____________________________ __________________

DR. ONALO UGBEDE Date

Head of Department

____________________________ __________________

External Examiner Date

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 DEDICATION

This project is dedicated to Almighty God, the creator, and the giver of wisdom and
knowledge for seeing me through the Higher National Diploma (HND) programme.

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 ACKNOWLEDGEMENTS

I am very grateful to Almighty God for his unceasing guidance and protection and
also for his enabling grace and inspirations to make this work a successful one.

My humble gratitude goes to my supervisor, SANI P. M whose fatherly and

constructive guidance led to the success of this research work. I also acknowledge the Head
of Department (HOD), DR. ONALO UGBEDE for his leadership style which is the architect
of my success. and all the lecturers in the Accountancy Department.

I sincerely appreciate the efforts of my lovely and caring parents in financial support,
spiritual and moral aspect I say thank you, you are the best.

Finally, I will not forget to acknowledge my good friends, for their prayers and
support, my course mates and those who supported me in one way or the other, May God
bless you all.

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 ABSTRACT

This study investigates the impact of budgeting and budgetary control on the performance of
local government, with a specific focus on Ojo Local Government in Nigeria. The increasing
complexity of business operations and the dynamic nature of the economic environment
necessitate effective budgeting as a tool for planning and control. The objectives of the study
include assessing the impact of budgeting on decision-making, evaluating its role in resource
allocation, and examining its motivational effects on staff. The research employs a
quantitative approach, utilizing questionnaires administered to employees within the finance
unit of Ojo Local Government. A total of 40 out of 50 distributed questionnaires were
returned, yielding an 80% response rate. Data analysis was conducted using descriptive
statistics and chi-square tests to evaluate the formulated hypotheses. Key findings reveal that
budgeting and budgetary control significantly enhance planning and decision-making, ensure
rational allocation of resources, and serve as a motivational factor for staff. The study
concludes that effective budgeting is crucial for the operational success of public sector
organizations. Recommendations include the adoption of robust budgeting techniques,
regular reviews of budgetary practices, and enhanced training for personnel to optimize
revenue collection and control mechanisms. This research contributes to the understanding
of budgeting practices in local government and provides a framework for improving financial
management in the public sector.

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 TABLE OF CONTENTS
Title page - - - - - - - - - - -i
Approval page- - - - - - - - - - -ii
Dedication - - - - - - - - - - -iii
Acknowledgement - - - - - - - - - -iv
Abstract - - - - - - - - - - -vi
Table of contents - - - - - - - - - -vii

CHAPTER ONE: INTRODUCTION

1.1 Background to the study - - - - - - - -1
1.2 Statement of Problem - - - - - - - -2
1.3 Objective of the Study - - - - - - - -2
1.4 Purpose of Study - - - - - - - - -3
1.5 Significance of Study - - - - - - - -3
1.6 Scope and Limitation - - - - - - - -3
1.7 Historical Background of Case Study - - - - - -4
1.8 Research Questions - - - - - - - - -5
1.9 Research Hypothesis - - - - - - - -5
1.10 Definition of Terms reference - - - - - - -6

CH5APTER TWO: REVIEW OF RELATED LITERATURE

2.1 The concept of Budget - - - - - - - -7
2.2 The concept of Budgeting - - - - - - - -8
2.3 The Nature of Budget - - - - - - - -8
2.4 Type of Budget as it relates to the Local Government - - -9
2.5 The Budgeting Procedure - - - - - - - -9
2.6 Revenue Budget - - - - - - - - -10
2.7 The Master Budget - - - - - - - -11
2.8 The Fixed Budget and the Flexible Budget - - - - -11
2.9 Budget Period - - - - - - - - -11
2.10 The Budget Committee - - - - - - - -12
2.11 Budget Manual - - - - - - - - -12
2.12 Budgetary Control and Accounting System - - - - -13
2.13 The Concept of control in Budgeting - - - - - -13
2.14 Essential Features of Budgetary Control - - - - - -14
2.15 Advantage of Budgetary and Budgetary Control- - - - -14
2.16 Performance of Budget and Budgetary Control - - - - -14

CHAPTER THREE :METHODOLOGY

3.1 Restatement of Hypothesis - - - - - - -16

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3.2 Research Design - - - - - - - - -16
3.3 Sources of Data - - - - - - - - -16
3.4 The Population of Study - - - - - - - -16
3.5 Sampling Size - - - - - - - - -15
3.6 Questionnaire Design - - - - - - - -15
3.7 Administration of Questionnaire - - - - - -17
3.8 Analysis Technique - - - - - - - -
-17
3.9 Methodology Limitation - - - - - - - -17

CHAPTER FOUR :PRESENTATION AND ANALYSIS AND ANALYSIS OF DATA

4.1 Presentation of Personal Data - - - - - - - -19
4.2 Presentation of Research Questions - - - - - - -21
4.3 Testing and Analysis of Hypothesis - - - - - - -27

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of the Major Findings - - - - - - -31
5.2 Conclusion - - - - - - - - - -31
5.3 Recommendation - - - - - - - - -32
Reference
Bibliography

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 CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The increasing complexity of business operation and the ever-changing
conditions of the business environment-social, economic, technology and
political factors make it increasingly difficult for a company to consistently earn
a profit that constitutes a fair return on the capital investment. The internal
operation of a firm using financial tools has been a very long time; management
has to have a plan of action as a means of monitoring profit and financial
control.
Budgeting is the accepted basis for profit, planning and financial control. It has
been practice effectively and profitably by many progressive companies who
generally regard it not simply as a procedure but as one of the more important
of process of management. Budgeting is one of the management tools that force
manager to perform according to a given level of expectation.
The process of preparing the budget forces the executive to become better
administrator. It puts planning in the first key and budgeting primary attention
directing because it helps managers to focus in the operating problem early
enough. For effective planning or action, budgeting is usually been as an
integral of various plans and providing feedback for the actual result.
Budgeting has many purposes. The primary purpose of budgeting is conducted
under favourable conditions, there is no doubt that a firm which budget will
tend to perform rather better than a similar one that does not budget.
Budgetary control is control technique which when the compares of the
planned state of affairs with actually state of affairs and the continuous
devising of means of correcting the deviation. It involves the use of available
technique such as operational research, computer science and so on, to ensure
that the budget is realistic as possible. The budget is without doubt, the most
widely used control device in both business and government circle. The budget
is drawn up for control purpose, that is an attempt to control the direction that
the firm taking. Indeed, it is used extensively to many people, the word budget
is synonymous with control still, and the preparation of budget originates as a

1
part of planning process. Some companies in other to avoid the negative
reaction that are many a time associated with the concept of control. Refer to
their budgetary controls as either profit plan or profit path. The aim of
budgetary control is to provide a formal basis for monitoring the progress of the
organization as a whole of its component parts towards toward the achievement
of the objectives specified in the planning budget.
Budget planning budget control is part of the overall system or responsibility
accounting within an organization. A vast number of organization and company
are getting involved in budgeting and budgeting control in Nigeria, and this is
taking different forms, but the one that seems to be gaining more recognition is
based on the concepts and ideas developed in budgetary control.

1.2 STATEMENT OF PROBLEM

Some problems are identified to why public sector organization make deficit
budget. These problems include:
i. Inability to evaluate and assess the viability of the organization.
ii. What tools to be employed in comparing organization or actual
performance with the planned or future performance and how tools can be
implemented a good deviation and control?
iii. What tools to be adopted in assessing the organization performance in
terms its fair return on the capital investment?
iv. Going by these problems, the study then consider budgeting and
budgeting control on organization performance in local government?

1.3 OBJECTIVE OF THE STUDY

The objective of the appraisal and evaluation of business organization in the
following areas:
i. To itemize the impact of budgeting and budgeting control in local
government.
ii. To exemplify by using budgeting and budgeting control by management
for planning, control and decision making.
iii. To know what is budgeting and budgeting control and why it is of interest
and to whom.

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iv. To look into ways of encouraging human support for budgeting control.
1.4 PURPOSE OF STUDY
The purpose of this study isto identify the effectiveness or otherwise in the
presentation of budgeting and its control in local government. Our analysis
would however be limited to Ojo local government.
The study also determining ways and means of improving the operation and
effectiveness of the system for as much as the success or failure of budgeting
and budgeting control depend on the acceptance by the people in the
organization. Consequently, consideration is given to why employees react the
way the they do, the use, the usefulness of budgets in making budgets more
successful and acceptable can be considered within a particular situation facing
modern day business circle.

1.5 SIGNIFICANCE OF THE STUDY

The outcome of this study cannot be overemphasized. These are:
i. The effectiveness of budgeting on achieving their corporate goals.
ii. The study will help in the formulation of corporate policies concerning
local government.
iii. It will help management to to understand ways in which budgeting could
be a powerful tool for planning, control and decision making.
iv. It will reveal how rational allocation of resources can be ensured.
v. It will serve as a tool for further research studies.

1.6 SCOPE AND LIMITATION

The researcher intends to cover budgeting and budgeting control as it relates to
the private sector and special consideration been given to in the manufacturing
or industrial sector.
The expected limitation form a thorough analysis includes the following:
i. Time
ii. Respondents
iii. Finance
As a result of these, the researcher will limit the evaluating of budgeting and
budgeting control in Ojo Local Government.

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1.7 HISTORICAL BACKGROUND OF CASE STUDY
Ojo local government was created in May, 1989 under the military
administration of General Ibrahim GbadamosiBabaginda, as the president of the
Federal Republic of Nigeria, under the military governor of General RajiRasaki.
Before the creation of Ojo local government, out of the old Badagry local
government, the area was adjudged the most popular in the federation going by
the National Population Censor conducted in Nigeria in 1991. The population as
at that time was put at 1.01 million. Ojo local government was divided into two
segments, the revenue and the upland. It is in habited by mainly the Aworis,
who are very accommodating and progressives.

In 1996, under the military administration of General Sanni Abacha, two local
governments were carved out of the old Ojo local government; AmuwoOdofin
and AjeromiIfelodun local government. It is on record the administration of
AlhajiJakande as the executive governor of Lagos state, Ojo local government
that did not have the backing of the federal government under President
ShehuShagari, was created in 1980 with AlhajiAjakaiye as the chairman from
1980-1983. However, the military governor of General MuhammaedBuhari and
TundeIdiagbon scrapped the local government when they struck in 1983 and the
new council returned to Badagry local government.
Today, two local government have been carved out of the old Ojo local
government; Iba local Council Development Area and OtoAwori Council
Development Area with this development there were boundary adjustment. As
of today, Ojo local government shares boundaries with Oto-Awori on its south
west; it is bounded in the East by Oriade local government in the North by Iba
local council development and in the south by the lagoon. It also shares
boundary with AmuwoOdofin local government between Ojo
Military Barracks and the Trade Fair complex. The local government has a total
land mass of 18sq km with about 300/0 of it constituting the Revenue Area.
Today part of this Revenue Area is being shared with Oto-Awori Local Council
Development Area.
Despite the fact that the indigenous inhabitations are the Aworis, OJ today is

4
natural habit as of the Igbos, who deal in electronics and general materials at the
popular Alaba international market created in 1973 within the local government
are and the Hausa who deal in rams cows.
The Ojo indigenes are mainly farmers, mat weavers, fisher men, hunters and
petty traders. But some of them today are big time businessmen, educationists
and great politicians. The hither to sleepy town of Ojo, is today flourishing with
business activities that can be compared to major town in Lagos State.
There is no doubt that the fact that revenue Area of Ojo Local Government
needs special attention in the area of electricity, a bridge to link the upland with
the reverine and other basic infrastructural facilities. Tahe communities include;
Irewa, Taffi-Hausa, Taffi-Awori, Itogbesa, on the other hands, the upland has
caught up with the best modern cities in the world with an express road to link
neighbouring country, companies, market and higher institutions, the settlement
include Ojo, Ira Ajangbadi, Sabo-Oniba, Ilufe, Igbede, Agric, Arufa, Olugbemi,
Muwo and others.

1.8 RESEARCH QUESTIONS

The research intends to test the following research questions in the course of this
project.
i. Does budgeting and budgeting control enhance planning and decision
making efficiently?
ii. Does budgeting and budgeting control ensure rational allocation of
resources?
iii. Does budgeting and budgeting control a motivational tool for staff?

1.9 RESEARCH HYPOTHESES

The hypothesis would be formulated as null and alternative
1. Ho: Budgeting and budgeting control does not enhance planning and
decision making efficiently
Hi: Budgeting and budgeting control enhances planning and decision
making efficiently
2. Ho: Budgeting and budgeting control does not ensure rational allocation
of resources Hi: Budgeting and budgeting control ensure rational

5
 allocation of resources
3. Ho: Budgeting and budgeting control is not a motivational factor
Hi: Budgeting and budgeting control isa motivational factor
1.10 DEFINITION OF TERMS
 Budget: A budget IS a summary statement of plans expressed in
qualitative term
 Budgeting: This is the process of preparing a summary statement of plans
expressed in monetary quantitative terms.
 Decision Making: Involve selection from among alternative course of
action or most preferred choice out of many alternative
 Budgetary Control: This IS the control technique of planning In advance
of the various functions of a business so that the business as a whole can
be controlled.
 Control: The process of setting goal and objectives In advance and
determining ways to achieving it.
 Plans: A set of things to do in order to achieve something usually done in
advance.
 Planning: This is the process of setting goals and objectives in advance
and determines way of achieving it.
 Responsibility Accounting: This is the term used to describe a system of
decentralization of authority with performance of the decentralized units
measured in term of accounting results.

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7
 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 THE CONCEPT OF BUDGET
Budgets have been defined in many ways by different authors. Some of these
definitions can be examined as follows:
According to Eddy Omolehinwa (1991) views budget as the plan of the
dominant individuals in an organization expressed by monetary terms and
subject to the constraints imposed by other participation and the environment
indicating how the available resources may be utilized to achieve whatever the
dominant individuals agree to be the organization priorities.

The definition expressed these points:

i. Dominant individual plan that is management
ii. Organization priorities that is objective
Don T. Decoster and Eldon Shchafer (1979) defined budget as the formal
statement of management goals and objectives expressed in financial terms for
specific future period of time. The budget permits every level of activity.
Integrating revenue plans, expense plans, asset requirement and finance needs.
Alan Upchiman (1988) defined 'budget as a qualified plan target at achievement
of an objective (or objectives)
This definition encompasses three elements:
i. Budget is a plan, it is future oriented, and the past is only relevant
having provided a reasonable indication of the future.
ii. We must be clear that a plan is not end itself but a means to an end.
iii. Budget is a control prepares to achieve objective. It assesses how for
performance, budget and objectives are in line with each other. It was
defined by Chartered Institute of Management Accountant (CIMA)
terminology as 'A plan quantified In monetary terms prepared and
approved nor to defined period of time usually showing planned
Income to be generated and or expenditure to be incurred during the
period and the capital to be employed to attain a given objective'.
The definition shows that:
i. A plan of work

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 ii. A predication or future forecast
iii. A link between financial resources and humane behaviour
iv. A mechanism for making choice among alternative expenditures.

2.2 THE CONCEPTS OF BUDGETING

Budgeting means the process of converting plans into budgets. Budgeting is
concerned with measuring and projecting profitability for a future period. It is a
financial process in a comprehensive planning network.
Budgeting primary attention is directing, because it helps managements to focus
on the operating problems early enough for affective planning, no organization
can expect to operate successfully without planning for the future. The
compilation of budgets forecast is an integral part of effective planning. Hence,
the business viewpoint budgeting is a management accounting technique
intended to assist in the process of economizing in the use of business
resources. More specifically, it serves as a means of co-ordination and
controlling the various activities of a business in order to ensure that the overall
objectives of the enterprise are achieved by the most efficient tools.

2.3 THE NATURE OF BUDGET

Alan Upchimah (1988) defines budget as a qualified plan targeted at
achievement of an objective (objectives) however, this definition of budget
does not cover much about the nature of budget or of budgetary control. The
process of preparing a budget it is for planning
The budget like any other plans needs to possess some vital futures the extent
to which a budget reflects these futures is the measure of its probable success.
Meanwhile, there are certain aspects of budgets that differentiate them from
other plans. First a budget is been prepared in order to provide a means for
controlling operations. As a means of controlling operations effectively, a
separate budget is usually prepared for each of the several functions within an
organization unit. Second, a budget is designed to cover a specific period of
time. The fiscal years is the unit of time used most, frequently, but this may to
sub-divided into semi-annual, quarterly or monthly period. It can also be greater

9
than be year, as in the case of capital expenditure budgets.
Also, budgets are expressed in financial terms since Naira serve well as a
common denominator and thereby permit the comparison and coordination of
all phases of a company's operation. Budgets in another view readily identified
and show the need for corrective action.
Preparation of budgets, undoubtedly defined the planning process necessary for
the establishment of standards or goals. However, the greater value of budgeting
lies in its contribution to improve coordination and control. During the
preparation of budgets for all organization units, a basis is been provided for
coordinating of the efforts of the organization. At the same time, budget
establish in basis for the corrective action of control. Since deviation from
expected results are more readily identified and measured. Thus, the preparation
of budgets may be expected to result in better planning and improved
coordination and provide a basis for control, which is the primary purpose for
establishing budgets.

2.4 TYPES OF BUDGET AS IT RELATES TO THE LOCAL

GOVERNMENT
The types of recognizable budget in local government relate to the policy in
general management of the public sectors. These budgets are merged together to
form the master balance sheet. The most common types are:
1. Cash budget
2. Capital expenditure budget
3. Re-current expenditure budget
4. Re-current working capital
5. Estimated working capital
6. Revenue budget

2.5 THE BUDGETING PROCEDURE

Budget means different things to different people according to their different
point of view. Managers see them form the implantation aspects, and
behavioural scientists see them from the human implication aspect. Ordinarily
the details of budgeting system are affected by the type and degree of

10
complexity of a particular company: the amount of the revenue, its various
divisions (the relevant importance) and another factor.
Budgets procedures used by a large electronics local government differ in
many ways from system designed for a state government. Several months prior
to the end of the current years, the preparation of budget for a following fiscal
year usually beings. The responsibility of their development is ordinarily
assigned to a committee called the budget committee. The committee is made
up of the budget director and high level executives like the controller, the sales
manager, production manager and so on.
It is important that all level of management and all departments participate in
the preparation and submission budget estimates. The supervisory personnel
involvement promotes co-operation within and among departments. It also
intensifies awareness of each department importance in the overall process of
the public sector. Management is thus encouraged to set goal and in control
operations in a manner that strengthen the possibilities of achieving the goals.
Technical procedure involves in the preparation and use of budge figures is
similar for most organization. There IS standard of what is expected to reflect
the future events. This estimation is then compared to what actually happened
and the differences are study the variance. However, the results of the
budgeting process include:
 Balance sheet at the end of the period
 Revenue statement for the planning period

2.6 REVENUE BUDGET

The revenue budget summarize information contained in other budgets and
makes projection about surplus expectations for the ensuring financial year.
The revenue budget comprises of:
 Operating cost estimation including expenditures and projected manpower
cost for the budget period.
 The budget period income estimates. It is the responsibility of the
managers and it is their function to extort the maximum influence on the
performance on the performance of the business and they must reflect this
in the revenue.

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2.7 THE MASTER BUDGET
The master budget is the surplus and deficit statement for the next financial year
or other periods covered by the budget. It is usually accompanied by a balance
sheet. However, there is need for each major division to prepare its own budget.
The mast budget represents a consolidation of all supporting budgets and it
represents the financial effects of the total plan. For the local government,
chairman approves the master budget, which is supported by the top
management. It becomes financial summary of the agreed plan for the budget
period.

2.8 THE FIXED BUDGET AND THE FLEXIBLE BUDGET FIXED BUDGET
According to B. R. Yusuf, fixed budget is a budget with no provision for
adjustment, should actual activities turn out to be different from the planned.
The major purpose of fixed budget is as the planning state when it serves to
define the board objectives of the form. It is used for planning purpose.

FLEXIBLE BUDGET
Flexible budget is a budget which by recognizing the difference in behaviour
between fixed and variable costs in relation to fluctuations in turnover and is
designed to change appropriately with such fluctuation. The main purpose of a
flexible budget is an aid to controlling costs.

2.9 BUDGET PERIOD

This is the period in which the budget covers, usually 12 months. Traditionally,
there are two periods: The long term period and short term period.
The long-term period is regarded as imperative but the business needs demand
something more effective as a day to day tool crisis will occur and unless
arrangement is made on an ad-hoc basis so that it spends its time only dealing
with the crisis of the day, then essential control must be the short term budget.
The short-term budget might be arranged depending on the circumstances as
short term span as weekly, monthly or quarterly. There are some considerations
which govern what form to be used.

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2.10 THE BUDGET COMMITTEE
The budget committee should consist of high level executives who represent
the major segments of the firm. Its major task is to ensure that budgets are
realistically established and that they are coordinated satisfactorily. The normal
procedure is for the functional heads to present their budget to committee for
approval. If the budget does not reflect a reasonable level of performance, it will
not be approved and the functional heads will for approval. It is important that
the person whose performance is being measured should agree that the revised
budget can be achieved, otherwise, if it is considered to be impossible to
achieve, it will not act as a motivational device.
The budget committee should appoint a budget officer, into will normally be the
accountant. The role of the budget officer is to co-ordinate the individual gets
into a budget for the whole firm, so that the budget committee and budgeted can
see the impact of an individual budget on the firm as a whole.

2.11 BUDGET MANUAL

The budget manual should be prepared by the accountant. It will describe the
objectives and procedures involved in the budgeting process, and will provide a
useful reference source for managers responsible for budget preparation.
In addition, the manual may include a time-table specifying the order in which
the budget should be prepared and the dates when they should be presented to
the budget committee.
The manual should be circulated to all individuals who a responsible for
preparing budgets.

CONTENTS OF BUDGET MANUAL

a. Introduction stating the purpose, which is preferably
Written by the chief executive.
b. Objectives and explanation of the budgetary process
c. Organization structures and responsibilities
d. Explanations on budget preparation the various assumptions and policies
that have been made.

13
e. Budget development and administration procedures.
i. Budget committee members and term of reference
ii. Time-table for budget preparation and publications
iii. Sequence of budget preparation
f. Accounting procedures
i. Name and term of reference of the budget office
ii. Time-table for accounting reports date.

2.12 BUDGETARY CONTROL AND ACCOUNTING SYSTEM Adequate

accounting system is not only an essential requirements for setting up budget
but is also for carrying it out if the control functions of budgeting is to
successful, it is an imperative for a firm to have a well-defined and complete
accounting system.
In ensuing that the actual performance indicated by the records is comparable
with planned performance there are two main conditions:
a. The compilation of the budget items should be according to the
accounting classification.
b. Detailed accounts should be classified m terms of the organizational
authority and responsibilities. There have been a recent development of
accounting system known as responsibility accounting that recognized
that budget and responsibility placement for control are interdependent
in reporting.
The application of responsibility accounting ensures preparation of accounting
state ensure all level of management. The essence of responsibility accounting
is the accumulation of costs and revenue according to responsibility is as in
order to identify deviations from budgets and standard cost with the
responsible group or individual.

2.13 THE CONCEPT OF CONTROL IN BUDGETING

One of the basic functions of budget is to provide a benchmark for controlling
actual performance. The control process involves a number of steps. First, the
accounting system monitors actual performance in the financial terms. Second,
actual performance is compared with the plan and any significant is compared

14
with the plan and any significant deviation from the plan is identified. The
principle of management by exception suggests the plan, the activity is in
control, and no intervention is required. Third, there must be a feedback is
made as soon as possible often the activity is performed.
Fourth, action may be required where there is a deviation in term the plan
corrective measure should be taken to bring all future activities in live with the
plan. Action may involve enforcing existing policies, if the deviation is a result
of the plan that is unrealistic or incorrect, the plan may have to be revised.

2.14 ESSENTIAL FEATURES OF BUDGETARY CONTROL

The essential requirements for effective budgetary control are as follows:
i. The employees must have clear objectives
ii. The employees must be thoroughly educated on the need for a budgetary
control system. They must be assured that budgeting is a positive vehicle
for realizing the employee's individual's aspiration and that if the firm.
iii. Top management support for the operation of the system is needed for its
success.
iv. The use of available techniques such as operation research, computer
system to ensure that the budget is realistic as possible.
Basically, all factors that might impede the attainment of the corporate objective
must be highlighted and resolved in the best interest of the firm as a whole.

2.15 ADVANTAGES OF BUDGETARY CONTROL

The advantages are:
i. It enhances a company to state its objectives
ii. It makes the firm to determine the cost of action to achieve its
objective.
iii. It ensures that the firm is sufficiently in liquidity at all times.

2.16 PERFORMANCES OF BUDGET AND BUDGETARY CONTROL A

performance budget is one which present the purpose and objectives for which
are requested, the costs of the programmes proposed for achieving these
objectives and measures the accomplishments and work performed under each

15
programme.

DIFINITION OF TERMS
a. Cash control: This is the management of cash movement to ensure
effective executive of programmes without disruption arising from non-
availability of cash. It is to ensure that payments are made on time and
cash is put to the best possible use. Cash control is exercised through the
preparation of cash flow statement.
b. Revenue Control: is amount aimed at ensuring that amount due to
government are collected on time and that such amount are actually paid
into the government purse.
c. Expenditure Control: IS known as vote control. The study of controlling
votes lies with the accounting officers of each establishment with its
budget allocations.

16
 CHAPTER THREE
METHODOLOGY
3.1 RESEARCH DESIGN
Research design is the specification of procedure for collection and analyzing
the data necessary to help identity a problem or to help solve the problem at
hand.
According to kenear C. Thomas (1993) said that a research design is the basis
plan which guides the data collection and analysis phases of the research design.

3.2 SOURCES OF DATA

The data for the study was made up for primary data. The data was source from
primary data. Interviews and questionnaire were being used for proper and
precise responses for the sources; the questions were of the closed type. This
was done to enable the respondents;
i. Answer completely to all needed aspect of the study
ii. Increase the respondent's rate of the administered questionnaire.

iii: Understand easily the needs of the research.

iv. In order to facilitate quickly and timely response to the question

3.3 THE POPULATION OF THE STUDY

According to Taiwo S.O, population is an entirety of people or items being
considered within a specific area. It can also be defined as the totality of all
collection of animate and inanimate objects.
Example of population is the total number of peoples (students, lecturer, non-
academic staff and vendors of university) however, the studies population
comprised mostly of financing unit of the local government, been concerned
mainly in preparation of budgeting control.

3.4 SAMPLING SIZE

The sampling system was concerned with the administrative, finance and
personnel division which mainly concerned with the preparation of planning and
budget, the head of the management and other officer who were knowledgeable
17
to provide information for the research of the subjects of the study.

3.5 QUESTIONAIRE DESIGN

A questionnaire has been defined by full (1980) as a simple formularized set of
questions for electing information. A questionnaire is simply a formularized
schedule for collecting data from respondents.
It is a skill development by experience rather by reading a series of guidelines.
The questionnaire is divided into two sections;
a) Personal data; such as age, educational qualification, length of service and
position held were asked to know whether the respondents are
knowledgeable of the research topic.
b) The main body of the questionnaire; these contained questions to reflect
information.
1. The use of capital budgeting to increase revenue of local government.
2. The use of budgeting and budgetary control to motivate staffs.
3. The use of the system in enhancing decision making process in the
organization
4. The use of the system in ensuring rational allocation of resources.
5. The use of the system in establishing better financial control and the
system benefit the manufacturing.

3.6 ADMINISTERING OF QUESTIONAIRRE

Questionnaires are hand delivered to the selected local government offices for
the purpose of the study. This is to ensure that they get to the respondents.
They were giving enough time and reminder calls were been made after a
while to be able to gather up very questionnaire with this making up to two
weeks duration.
3.7ANALYSIS TECHNIQUE
The questionnaire are used to gather data and information to analyze the data
and information made available tables would be constructed and the percentage
distribution of the information gathered will be calculated.
Chi-square would be used to test relationship between the variables. The
hypothesis are formulated from a negative and positive position that is a null

18
hypothesis [Ho] the differed hypothesis for given one is called alternative
hypothesis (Hi) procedure will be carried out to enable a decision to be reached
whether to accept or reject hypothesis. This is known as test of significance,
once the chi-square is calculated a 95% confidence interval will be used to
determine the turn of the hypothesis.

3.8 METHODOLOGY LIMITATION

The first is size of the sample being used, the sample is small and the chi-
square values were used for the study. another limitation is that the fact finding
effort were concerned on financing unit as questionnaire were distributed to the
staff of Ojo local government also, research must be completed within short
time in order to meet the close ended in its learning and limited the choice of
answers in that respondent had to give the questions.

19
 CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 ANALYSIS OF PERSONAL DATA
A total of 50 questionnaires were administered, 40 were returned. This amount
to 800/0 response rate and 200/0 unreturned.
The first section of the questionnaire administered contain question which
sought for personal information of the respondent.
The tabular presentations of the responses were shown below:
Table 1: AGE DISTRIBUTION OF THE RESPONDENTS
Response Percentage %
Figure
18-25 YEARS 14 35
26-35 YEARS 18 145
36-45 YEARS 4 10
46-55 YEARS 2 5
ABOVE 55 2 5
Total 40 100
Source: Field Survey
The Table above shows that 45% respondent of the work force is between ages 26-
35, while 35% were between the 18-35 years age brackets, while 10% were within
the 36 - 45 years age bracket. Another 5% were within 46 -55 years age bracket,
while 5% of the respondents are above 55 years. This implies active workforce.

Table 2: SEX DISTRIBUTION OF THE RESPONDENTS

Response Percentage %
Figure
MALE 20 50
FEMALE 20 50
TOTAL 40 100
Source: Field Survey
The table shows that 50% of the respondents are male and the remaining 50% are
female. This implies more male respondents than female.

TABLE 3: MARITAL STATUS OF RESPONDENT

20
 Respondent Percentage %
figures
Single 10 25
Married 28 70
Divorce 2 5
Total 40 100
Source: Field Survey
The table shows that 25% of the respondents are single, 70% are married and 5%
are Divorce.

TABLE 4: EDUCATIONAL QUALIFICATION OF RESPONDENTS

Respondent Percentage
figures %
School Cert/GCE 2 5
Grade II 5 12.5
NCE/OND 20 50
HND/BSc 13 32.5
Total 40 100
Source: Field Survey
From table 4 above, 5 percent of the respondents were school leaver, 125 percent
are Grade II holders, 50 percent are NCE/OND Holder and 32.5 percent are
HND/BSc. This indicates that respondents are likely to be competent in terms of
technical know-how.

TABLE 5: LENGTH OF SERVICE/WORK EXPERIENCE OF THE RESPONDENT

Respondent Percentage %
figures
1-5 Years 5 12.5
6-10 Years 10 25
11-15 Years 15 37.5
Above 20 Years 10 25
Total 40 100
Source: Field Survey
From table shows that 12.5% of the respondents have between 1-5 years’
experience, while 37.5% have between 6 and 10 years’ experience. 37.5%are
between 11-20 years and 25% are above 25 years of experience.

21
TABLE 6: PRESENT JOB POSITION OF THE RESPONDENT
Respondent Percentage %
figures
Clerk 10 25
Supervisors 8 20
Management 15 37.5
Top Management 7 17.5
Total 40 100
Source: Field Survey
From Table 6 depicts that 25% of the respondents are clerks, 20% are
supervisors, 37.5% are management and 17.5 belong to the top management
level.
4.2 PART II: THE EFFECT OF CONTROL ON ORGANISATION
GOVERNMENT
Table 1 Question 1 No.8
Q7: Budgeting and budgeting control does not enhance planning and decision
malting efficiently in Local Government

BUDGET AND BUDGETARY PERFORMANCE IN LOAL

X F Fx
STRONGLYAGREE 5 20 100
AGREE 4 13 52
UNDECIDED 3 1 3
DISAGREE 2 4 8
STRONGLYDISGREE 1 2 2
Total 40 165
Source:Field Survey
Mean (x) = ∑fx
∑f = 165/ 40 =4.125 =4
The above analysis indicate that the average mean is approximately "FOUR" which
is the weight attached to "AGREE". This shows that respondent agreed with the
statement.

22
Q8: Efficient and Effective of budget and budgetary control improve the
revenue generation of Ojo Local Government
VARIABLES X F Fx
STRONGLYAGREE 5 20 100
AGREE 4 13 52
UNDECIDED 3 1 3
DISAGREE 2 4 8
STRONGLY DISAGREE 1 2 2
Total 40 165
Source:Field Survey
Mean (x) = ∑FX
∑f = 165/40 =4.125 =4
The above analysis indicate that the average mean is approximately "FOUR" which is
the weight attached to "AGREE". This shows that respondent agreed with the
statement.

Q9: Budget and budgetary control ensure rational through financial warrant
and financial statement of Ojo Local Government
VARIABLES X F Fx
STRONGLYAGREE 5 21 105
AGREE 4 14 56
UNDECIDED 3 3 9
DISAGREE 2 1 2
STRONGLY DISAGREE 1 1 1
Total 40 173
Source:Field Survey
Mean (x) = ∑fx
∑f = 173/40 =4.325 =4
The above analysis indicate that the average mean is approximately "FOUR" which
is the weight attached to "AGREE". This shows that respondent agreed with the
statement.

23
Q10: Budget and budgetary control enhance fund control through financial
warrant and financial statement of Ojo Local Government
VARIABLES X F Fx
STRONGLYAGREE 5 19 95
AGREE 4 11 44
UNDECIDED 3 5 15
DISAGREE 2 2 4
STRONGLY DISAGREE 1 3 3
Total 40 161
Source:Field Survey
Mean (x) = ∑fx = 161
∑f 40 =4.325 = 4
The above analysis indicate that the average mean is approximately "FOUR" which
is the weight attached to "AGREE".
This shows that respondent agreed with the statement.

Q11: The Management orOjo Local Government is committed to the use

Budget and budgetary control techniques
VARIABLES X F Fx
STRONGLY AGREE 5 19 95
AGREE 4 11 44
UNDECIDED 3 5 15
DISAGREE 2 2 4
STRONGLY DISAGREE 1 3 3
Total 40 161
Source:Field Survey
Mean (x) = ∑fx = 161
∑f 40 =4.025 = 4
The above analysis indicate that the average mean is approximately "FOUR" which is
the weight attached to "AGREE".
This shows that respondent agreed with the statement.

24
Q12: Budget and budgetary control is effectively and efficiently co-ordinates
various activities or Ojo Local Government.
VARIABLES X F Fx
STRONGLYAGREE 5 21 105
AGREE 4 16 64
UNDECIDED 3 1 3
DISAGREE 2 2 4
STRONGLY DISAGREE 1 0 0
Total 40 176
Source:Field Survey
Mean (x) = ∑fx = 176
∑f 40 =4.4 = 4
The above analysis indicate that the average mean is approximately "FOUR" which
is the weight attached to "AGREE".
This shows that respondent agreed with the statement

Q13: Budget and budgetary control is efficient in distribution ofincome

through tax and benefits
VARIABLES X F Fx
STRONGLYAGREE 5 18 90
AGREE 4 14 56
UNDECIDED 3 4 12
DISAGREE 2 2 4
STRONGLY DISAGREE 1 2 2
Total 40 164
Source: Field Survey
Mean (x) = ∑fx
∑f = 164 40 =4.1 = 4
The above analysis indicate that the average mean is approximately "FOUR" which
is the weight attached to "AGREE".
This shows that respondent agreed with the statement.

25
Q14: Budget and budgetary control stabilize economy by the use or fiscal and
monetary policy.
VARIABLES X F Fx
STRONGLYAGREE 5 15 75
AGREE 4 13 52
UNDECIDED 3 5 15
DISAGREE 2 4 6
STRONGLY DISAGREE 1 3 3
Total 40 151
Source: Field Survey
Mean (x) = ∑fx= 151
∑f 40 =3.775 =0 4
The above analysis indicate that the average mean is approximately "FOUR" which is
the weight attached to "AGREE".
This shows that respondent agreed with the statement.

Q 17: Budget and budgetary control enhance the concentration on important

areas or control in Ojo Local Government
VARIABLES X f fx
STRONGLYAGREE 5 12 60
AGREE 4 10 40
UNDECIDED 3 89 24
DISAGREE 2 6 12
STRONGLY DISAGREE 1 4 4
Total 40 140
Source: Field Survey
Mean (x) = ∑fx= 140
∑f 40 =3.5 = 4
The above analysis indicate that the average mean is approximately "FOUR" which is
the weight attached to "AGREE".
This shows that respondent agreed with the statement.

26
Q18: Budget and budgetary control is motivational factor for staff of Ojo Local
Government
VARIABLES X F Fx
STRONGLYAGREE 5 14 70
AGREE 4 16 64
UNDECIDED 3 4 12
DISAGREE 2 3 6
STRONGLY DISAGREE 1 3 3
Total 40 155
Source: Field Survey
Mean (x) = ∑fx
∑f = 155=3.875 = 4
40
The above analysis indicate that the average mean is approximately "FOUR" which is
the weight attached to "AGREE".
This shows that respondent agreed with the statement.

Q 19: Budget and budgetary control helps in setting a clear standard of

performance in Ojo Local Government
VARIABLES X F Fx
STRONGLYAGREE 5 17 85
AGREE 4 11 44
UNDECIDED 3 6 18
DISAGREE 2 3 6
STRONGLY DISAGREE 1 3 3
TOTAL 40 156
Source: Field Survey
Mean (x) = ∑fx = 156 =3.9 = 4
∑f 40
The above analysis indicate that the average mean is approximately "FOUR" which
is the weight attached to "AGREE".
This shows that respondent agreed with the statement.

27
Q20: Budget and budgetary control is efficient in distribution or income
through tax and benefits
VARIABLES X F Fx
STRONGLYAGREE 5 8 40
AGREE 4 17 68
UNDECIDED 3 8 18
DISAGREE 2 8 16
STRONGLY DIS AGREE 1 1 1
Total 40 143
Source: Field Survey
Mean (x) = ∑fx= 143
∑f 40=3.575 = 4
The above analysis indicate that the average mean is approximately "FOUR" which
is the weight attached to "AGREE".
This shows that respondent agreed with the statement.
4.3 TESTING AND ANALYSIS OF HYPOTHESES
Hypotheses are generally referred to as ideals or assumption put forward by the
researcher for the purpose of helping him or her in arriving at a reasonable
conclusion. It can also be seen as a conjunction statement, a postulate or
preposition about an assured relationship between two or more variable. These
assumptions are believed to hold initial but the results of a researcher may prove
otherwise.
In order to arrive at a reasonable conclusion from the evaluation of the observed
sample the researchers employed the use of CHISQUARE (X2) method.
The Chi-squared is (X2) = ∑(O-E)2
E
Where 0 = Observed frequency
E = Expected frequency
∑= Summation
The degree of freedom was computed using k-l, where k= No of categories of
variable.
The test was done on 50% or 0.05 level of significance.
The table below show the hypothesis to be tested and their test questions.

28
 HYPOTHESES TEST QUESTIONS

1 7

2 9

3 18

HYPOTHESIS ONE
This related to question 7 on the questionnaire:
Ho: Budgeting and budgeting control does not enhance planning and decision
making efficiently in Local Government
Hi: Budgeting and budgeting control enhances planning and decision making
efficiently in Local Government

Table 1

Responses Observed Expected

Frequency Frequency (0 - E) (0 - E)2 (0 –E)2
(0) (E) E
STRONGLY AGREE 18 8 10 100 12.5
AGREE 14 8 6 36 4.5

UNDECIDED 4 8 -4 16 2

DISAGREE 2 8 -6 36 4.5
STRONGLY DISAGREE 2 8 -6 36 4.5
TOTAL X2cal= 28

Obtaining the X2table value given, a level of significance = 5%and df= (K- 1)
Implies X = 0.05 and df= (5 - 1)
X2(0.05,4) = 9.488

Decision Rule
Since the calculated value is 28 greater than the tabulated value of 9.488. Ho is
therefore rejected and Hi is accepted.

29
 Conclusion
This means that budgeting and budgeting control enhances planning and decision
making efficiently in Local Government

HYPOTHESIS TWO
Ho: Budgeting and budgeting control does not ensure rational allocation of
resources
Hi: Budgeting and budgeting control ensure rational allocation of resources
Table 2

Responses Observed Expected

Frequency Frequency (0 - E) (0 - E)2 (O-E)2

(0) (E) E
STRONGLY AGREE 15 8 7 49 6.125
AGREE 13 8 5 25 3.125

UNDECIDED 5 8 -3 9 1.125
4
DISAGREE 8 -4 16 2
STRONGLY DISAGREE 3 8 -5 25 3.125
TOTAL X2cal= 15

Obtaining the X2 table value given, a level of significance = 5%and df= (K- 1)
df= (5 - 1)
X2(0.05,4) = 9.488
Decision Rule
Since the calculated value IS15 greater than the tabulated value of 9.488. Ho is
therefore rejected and Hi is accepted.
Conclusion
This means that Budgeting and budgeting control ensure rational allocation of
resources.

HYPOTHESIS THREE
This question related to question 18 on questionnaire.

30
 Ho: Budgeting and budgeting control is not a motivational factor for staff of Ojo
Local Government
Hi: Budgeting and budgeting control is a motivational factor for staff of Ojo Local
Government

Table 3

Responses Observed Expected

Frequency Frequency (0 - E) (0 - E)2 (0-E)2
(0) (E) E
STRONGLY AGREE 20 8 12 144 18
AGREE 13 8 5 25 3.125

UNDECIDED 1 8 -7 49 6.125

DISAGREE 4 8 -4 16 2
STRONGLY DISAGREE 2 8 -6 36 4.5
TOTAL X2cal= 33.75
Obtaining the X2 table value given, a level of significance = 5%and
Degree of freedom = (K- 1)
= (5 - 1)
X2 (0.05,4) = 9.488
Decision Rule
Since the calculated value is33.75 greater than the tabulated value of 9.488. Ho is
therefore rejected and Hi is accepted.
Conclusion
This means that Budgeting and budgeting control is a motivational factor for
staff of Ojo Local Government.

31
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF THE MAJOR FINDINGS

Summary of the major finding that emerges from the study can be summarized
as follows:
1. Budget and budgetary control planning and decision making efficiently in
Ojo Local Government.
2. Budget and budgetary control ensures rational allocation of resources in
Ojo Local Government.
3. Budget and budgetary control ismotivational factor for staff in Ojo Local
Government
From the above mentioned summary of major findings, it IS observed that
Budget and budgetary control is very effective in public sector organization

5.2 CONCLUSION
1. Budget and budgetary control decisions are those decisions that involve
current and recurrent outlays in return for a stream of benefits in future
years.
2. Budget and budgetary control decision represent the most important
decision that an organization makes, since they commit a substantial
proportion of organization resources to actions that are likely to be
irreversible.
3. Budget and budgetary control decision apply to all sectors of the society i.e.
both private and public sectors.
4. Budget and budgetary control decision in public sectors involves the
construction of new roads, schools, airports, etc.
5. Budget and budgetary control process In concerned with decision making
on which capital projects should be accepted, the amount of capital
expenditure the firm should undertake and how portfolio of capital projects
be financed.
6. Budget and budgetary control decisions are made in terms of both
quantitative factors (monetary measure of costs and benefits) and qualitative

32
 factors (non -monetary measure of costs and benefits).
7. Budget and budgetary control decisions are particularly difficult in non -
profit organization such as national and local government organization,
since it is not always possible to precisely quantify the costs and benefits of
a project.

5.3 RECOMMENDATION
1. Budget and budgetary control decisions should be reviewed and controlled
in terms of expenditure outlay prior to the project being operational and
post-completion for public organization to effectively achieve their
objectives.
2. Public sectors managers should adopt a more robust budget techniques such
as planning, programme budgeting systems (PPBS) and Zero based
budgeting systems.
3. Cost-benefit analytical techniques should be adopted in the evaluation of
cost and benefit of capital projects.
4. Mechanism for cost control and reduction should be instituted by
management of public sector organization revenue collection.
5. Personnel of public sector organization should be trained to properly harness
various sources of revenue of the organization so as to have a very robust
revenue base.
6. Internal audit department and internal control system of public sector
organization should be strengthened to ensure safeguard of government
properties and fund.
7. Budget and budgetary control in public sections regularly reviewed and
updated to internationally best practices across the world. This will enhance
the attainment of objective of governmental institution.
8. Cost-benefit analysis (CBA) IS a project appraisal technique for analyzing
and measuring the costs and benefits of capital projects in public sector
organization because it defines both the cost and benefits in a much wider
terms than it will be defined under traditional accounting measures.
9. Budget and budgetary control aids planning of annual operations,
coordinating the activities of the various communication parts of the of plans

33
 organization, to venous responsibility centre manager, motivating managers
to achieve organizational goal. Control of activities and evaluation of the
performance of governmental institutions or government.
10. Budget and budgetary control decisions enable the management of a non-
profit organization to make more informed decision about the allocation of
resources to meet the overall objectives of the organization.

34
 REFERENCES
Adams R.A. 2002: Public Sector accounting and Finance Corporate publisher’s
ventures, Lagos
Adeniyi A. Adeniyi (2002): Simplified Management Accounting Published by
value Analysis
Ake C. (2001): Democracy and Development in Africa.
Alien B. Sandres (1983): Principles of Accounting Published by Library of
Congress in Publication Data 3rd Edition.
Baum W, C. (1978) The Project Cycle finance and development Vol. 15, No 4.
Bierman H. and Smidt (1980) The Capital Budgeting Decision Macmillan, (4th
edition) New York.
BiodunJimoh 206: Principles of Public Sector Accounting and Finance Magic
Pus Ltd, Lagos.
C.A. Jegede (2003): Principles of Finance
Douglas Auld (1983): Introducing Capital Budgeting into the public sector,
FagbohunO.B. (2003): Research Methods for Nigeria Tertiary institution Lagos.
GllpinAtan, Dictionaryof Economic Terms. Butterworrth and Co (Publishers)
Ltd, 1996.
Gerald Klien, Dictionary of Baking Financial times pitman publishing,
London 1995.
Gupta C.B. (1981): An introduction to Statistics Methodology (New Delhi,
Vikas Publication House PVT Ltd).
Hassan &Mowen (2002): Management Accounting published by International
Thompson published Company fifth edition.
Hassan, M.M. (2002) Financial management in Nigeria Local Government.
Hyden G. (1992) Government and the study of policies.
ICAN STUDY PACK public Sector Accounting and finance 2006: Pension
and gratuity, Lagos VI Publishing.
IdowuKhadijat (2003): Public Sector Accounting
Ishmael Omeh (2006): Management Accounting
Jack Mibtz& Ross Preston, (1993) Investment Canada, Capital Budgeting in the
Public sector.
JOHN Deusch (1993) Institute for the study of economic Policy, Queen

35
 University, Capital Budget in the Public Sector.
KayodeFarombi (2005) Management Accouting new ICAN Syllabus published
by FB Venture
Kinnear, C.T. & Taylor R.J. (1978) Marketing Research London McGrawhill
International Book Company.
Merret A. J. and Skyes A. (1963): The finance and analysis of capital
Projects. Longman London. Spec Book Limited Ibadan.

36
 APPENDIX
QUESTIONAIRE
PART 1; PERSONAL DATA OF THE RESPONDENT
(1) Between 18-25 years
(ii) Between 26-35years
(iii) Between 36-45years
(iv) Between 46-45
(v) Between 55years and above
(2) Sex
(i) Male
(ii) Female
(3) Marital Status
(i) Single
(ii) Married
(iii) Divorced
(4) Education and employment
(i) School Cert/GCE
(ii) Grade 11
(iii) A Level NCE/OND
(iv)HND/BSC/Professional
(5) Length of Service/working experience
(i) Less than l year
(ii) Between I-5years
(iii) Between 2-10years
(iv)Between 11-I5years
(v) 20years and above
(6) Present job position
(i) Clerk
(ii) Supervisors
(iii) Management
(iv) Top Management

37
PART II; THE EFFECT OF BUDGET AND BUDGETARY CONTROL ON
ORGANISATIONAL PERFORMANCE IN LOCAL GOVERNMENT
The keys represent the options of the respondent's to the questionnaire
S.A= Strongly Agree (5)
A = Agree (4)
U = Undecided (3)
D = Disagree (2)
S.D = Strongly Disagree (1)

SA A U D SD
7 Budget and budgetary control enhance
planning and decision making effectively and efficiently
inlocal government.
Effective and efficient of budget and budgetary control
8
improve the revenue generation ofojolocal government.
Budget and budgetary control ensure rational allocation of
9
resources in ojo localgovernment.
Budget and budgetary control enhance fund control through
10 financial warrant andfinancialstatement ofojolocal
government.
The Management or Ojo Local Government is committed to
11
the use Budget and budgetary control techniques.
Budget and budgetary control is effectively and efficiently co-
12
ordinates various activities or Ojo Local Government.
Budget and budgetary control is efficient in distribution
13
ofincome through tax and benefits.
Budget and budgetary control stabilize economy by the use or
14
fiscal and monetary policy.
Budget and budgetary control enhance the concentration on
17
important areas or control in Ojo Local Government.
Budget and budgetary control is motivational factor for staff of
18
Ojo Local Government.
Budget and budgetary control helps in setting a clear standard of
19
performance in Ojo Local Government.
Budget and budgetary control is efficient in distribution or
20
income through tax and benefits.

38