A Project On Addis Ababa University Budget System A case study on Technology Faculty North camJlusl
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Date
2006-08
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A.A.U
Abstract
The study was conducted to describe how Addis Ababa University prepare and
administer recurrent budget (The Case Study Of Technology Faculty North Campus
Budget System).
While budgets are a useful management tool, they must be applied correctly for
management to reap the greatest benefit. Certainly, budgets are not a substitute for
skilled management, and it must be remembered that they depict only a series of
estimates, which appear to represent good means of measurement at the time the
budget is established. Nevertheless, in the budget system of AAU there is discrepancy
between policy and reality since sound policy decision-making and proper budgeting
are not implemented well.
Spending units do not have work plan and program priority for their budget request at
all. Their expenditure plan is merely copy of previous year and no reasonable
justification. Thus the approved budget is insufficient and there is high volume of
budget transfer within the budget line. Due to lack of coordination and transparence
among the various units results a rush to expend all the available money in the month
of Sene and there is commonly inferior, defective and obsolete items are procured in
the faculty. In general this all is the result of mismanagement of limited resource . ..
The study is descriptive type and includes in-depth interviews that were conducted
with department heads and budget center heads to collect the required data. Besides
the AAU financial policy and procedures are included.
Out of an over all analysis of the responses, it can be said that the management and
spending unit's emphasis toward reCUlTent budget is still quiet low and it lacks
openness and coordination. Thus, further consolidation of the financial management
system based on strict and accurate rules of high transparency and responsibility is
fundamental. This might not always work for every ones satisfaction.
Description
Mba Program
Keywords
Faculty North camJlusl