Budgeting and Budget Monitoring Practice in NGOs Operating in Ethiopia
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Date
2015-05
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Addis Ababa University
Abstract
Budgeting is about making plans for the future, implementing those plans and monitoring
activities to see whether they conform to the plan. The purpose of this study is to evaluate the
effect of budgeting and budget monitoring practice in NGOs operating in Ethiopia. The study
focused on budget development, monitoring and implementation activities undertaken during the
project cycle periods. To achieve the objectives of the thesis, convenience sampling method was
used and selected twenty charity organizations. Managers of the sample organizations were
communicated to identify the key staffs that are responsible in the budgeting process according
to the structure of each organization. 81 staffs are taken as respondents from Program, Finance
and support service departments of the organizations out of 102 staffs who were recommended
by the organizations managers. A self-administered questionnaire was distributed to
respondents. Secondary data was also collected from budget performance reports, financial
statements and manuals. As the findings show, the overall budgeting system in the sample
organizations missed the participation of concerned staffs. Participation of staffs in budget
development helps to achieve the purposes of budget such as coordination, communication and
motivation in the process of achieving the expected performance level. So it is recommended that
the charities should participate concerned staffs in budget development, budget monitoring and
implementation.
Key words: Budget preparation, budget monitoring and Budget implementation
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Keywords
Budget preparation, Budget monitoring and budget implementation