Factors Affecting Budgetary Control

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The study examined a number of objectives which included; to establish the procedures used in budget preparation, to establish the objectives of budgetary controls, to establish whether budgetary controls affect performance and to examine the factors affecting budgetary controls in icddr,b. This chapter presents the summary of the research findings, conclusions and the requisite recommendations. The recommendations of the study were derived from the major findings under study and the exact situation in icddr,b. 6.1 Highlight of Findings The findings of the study indicate that as a result of these problems, the cash budgets are sometimes overstated. From this study the consultant has been able to describe the budgeting practice in icddr,b…show more content…
The research study also revealed objectives of budgetary controls in icddr,b, as to enable planning as a basis for decision making and to ensure that departmental managers are responsible for the operation of their own departments as this will force management think ahead to anticipate what is likely to happen, and to ensure controls in place so that the set targets and objectives of the organization are achieved. This process informs management of any function such as grants revenue, operating expenses and indirect costs of operating expenses and others that is not operating according to the predetermined plan and hence allow corrective action to be…show more content…
Budgeting acts as a motivator to staffs when targets are met, increases performance efficiency, eliminates misuse and controls costs, coordinates the activities of the various departments as far as operations are concerned, so that plans and objectives laid down in the budgets are achieved. 6.1.4 Relationship between budgetary controls and organizational performance The consultant also found out that there is a substantial relationship between budgetary controls and performance. Therefore, management of icddr,b try to address the problems that hinder the attainment of the set targets. 6.1.5 Factors affecting budgetary controls and performance In establishing and examining the limitations of budgetary controls in icddr,b, the study revealed some factors affecting budgetary controls such as price fluctuations due to inflation which leads to increase in the cost of operation hence affecting the total cost of service delivery, limited knowledge about budgetary controls, changing business environments, unexpected expenditures and diminishing local currency against the US dollars which in turn affects the achievement of the set

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