ASSESSMENT OF BUDGET PREPARATION AND UTILIZATION: CASE STUDY AT SAVE THE CHILDREN ETHIOPIA

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 assess budget preparation and budget utilization of save the children international Ethiopia. The study focused on budget preparation, monitoring and utilization activities undertaken during the project cycle periods. To achieve the objectives of the thesis, census method was used and selected. Managers of the sample organization were communicated to identify the key staffs that are responsible in the budgeting process. 44 staffs are taken as respondents from Program, Finance and Grant management departments of the organization out of 50 staffs who were recommended by the organization 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 budget preparation and utilization system in the organization 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 organization should participate the concerned staffs in budget preparation, budget monitoring and utilization.