BUDGETARY CONTROL IN COMMERCIAL BANKS: A STUDY OF SELECTED BANKS IN NIGERIA.
BUDGETARY CONTROL IN COMMERCIAL BANKS: A STUDY OF SELECTED BANKS IN NIGERIA.
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Date
1996-10
Authors
MAGDALENE, SILVA SAAJI
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Abstract
Budgeting is a powerful management tool which is
used to accomplish four major objectives: planning,
coordination, motivation and control. The budget is a
planning tool that represents the expected results of
operations for the coming year, and thus it is a way of
formulating and expressing in monetary terms the
objectives of an organization and the operational plans
for achieving those objectives.
For budgets to be effective, budgeting must be
accompanied by control. Budgetary control involves the
periodic comparisons of planned objectives and actual
performance. The management can then take corrective
action in areas where significant differences between the
budget and actual performance are reported. A budget is
therefore a control tool.
An important part of budget preparation is
consideration of the importance of goal definition,
individual aspirations and goals. The purpose of a budget
in budgetary control is to specify the standard of
acceptable performance in the banks. When a bank sets
standards of acceptable performance, it has to be done
with good judgement or else motivation may be misplaced.
If a budgetary control system is not accepted by the
people who have to operate it, they may hamper and
obstruct the information flow so that realistic planning
and control decisions will be difficult to take.
Therefore, for the budgetary process to be successful, it
requires top-management support, co-operative and
motivated middle management staff and well-organised
reporting systems, who will in turn direct lower level
management staff in their duties towards achieving the
goals set out in. the budget for the benefit of the bank.
A study of budgetary control procedures adopted by
commercial banks has been undertaken in this research
work. In this study, the problems associated with
budgetary control in commercial banks have been
identified. Solutions to these problems of budgetary
control have been proffered in order to improve the
situation, so that commercial banks will have an
efficient and effective budgetary control system.
Description
A DISSERTATION SUBMITTED TO THE POST GRADUATE SCHOOL,
AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE
DEGREE OF MASTER OF SCIENCE (ACCOUNTING & FINANCE).
Keywords
BUDGETARY,, CONTROL,, COMMERCIAL,, BANKS,, STUDY,, SELECTED,, NIGERIA