ASSESSMENT OF BUDGETARY CONTROL SYSTEMS IN MINISTRY OF EDUCATION

Abstract

This study pertains to assessment of existing budgetary control systems being used to control budget utilization in Ministry of Education. The study is descriptive and analytic in nature, for assessment of budgetary control systems at ministry head office in Arada and Communication and Information Centre at Mexico, Addis Ababa. Census method was implemented to collect data from 68 respondents through questionnaire using statements based on specific objectives of the study and secondary data was collected from ministry annual report, books, journals and thesis. Validity of the questionnaire was established based on external pilot study and the reliability of the questionnaire was established using Cronbach’s Alpha. Analysis of the data was conducted using SPSS and Microsoft Excel. The results of the study analysis revealed gap like feedback from budget users regarding previous year budget utilization is not collected for updating the new budget. Budget was generally underutilized because of purchasing not being done on time, some planned activities not being accomplished on time, tendency to utilize NGO’s donations rather than the allocated budget, which implicated the BCS’s. The most important fact which indicates the deficiency of controls in BCS was the lack of periodic self-explanatory reports about mismatching, realignment of budget and undertaking unplanned activities. Based on the findings it was recommended that involvement of management at every level of budget utilization is required, strong audit department for monitoring, solutions on time to adjust misalignment of planned budget, to avoid unplanned activities and it was strongly recommended that there should be budget committee for accountability and transparency regarding budget issues.