Assessment of Public Expenditure Management Practice in Government Institutions, the Case of Ministry of Finance and Economic Cooperation (MOFEC)
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Date
2018-03
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Addis Ababa University
Abstract
The Purpose of this study is assessment of Government expenditure management practice in the public organization of Ministry of Finance and Economic Cooperation (MOFEC). The study concerns about Public Expenditure Management (PEM) or program budget in theoretical terms and its challenges in practice, this study assessed Government expenditure management practice in the public organization of Ministry of Finance and Economic Cooperation (MOFEC). The study begins by elaborating the background of the Government expenditure management practice in the public organization (MOFEC). In addition, the study raised important questions about government expenditure management practice in the public organization. This study is designed and used descriptive method. Questionnaires and unstructured interviews have been conducted with different stake holders within the organization. The results of this study show that a significant achievement has been made in reforming the Government expenditure management practice in the public organization of Ministry of Finance and Economic Cooperation (MOFEC). However, gap is identified in budget planning and its utilization, openness and transparency, limitation in the preparation of financial reports regularly and timely, the gap in Planning, Monitoring and Evaluation of the intended core activities. In addition, the research shows that insuring transparency and accountability is still at the middle of a road. Recommendations in the study are suggested that in allocating budget and spending in the organization, transparency and openness, monitoring and evaluation of the budget starting from preparation to its implementation should be given a series attention to use the scarce resources efficiently, effectively and in economical way. The findings identified in this study may lead the organization not to accomplish its established objectives, goals and the question of transparency can be raised, the scarce resource may not be utilized for the intended purpose and it is one of the critical issues that need corrective action to be adjusted for the next period of the budget year. In order to use the scarce resources effectively, efficiently and economically, there should be transparency, regularly and timely financial reports, strong budget utilization control and practical application of performance audit in line with the financial audit.
Description
Project submitted to Department of Accounting and Finance partial fulfillment of the requirements for the award of Master of Science Degree in Accounting and Auditing
Keywords
Budget, Capital budget, Public expenditure