Budgetary Controls and Efficiency in the Bank of South Sudan, Juba

ABSTRACT The study examined the relationship between budgetary controls and efficiency in the Bank of South Sudan, juba. The specific objectives of the study were; To examine the relationship between budgetary participation and efficiency in the Bank of South Sudan, Juba; To assess the relationship between budgetary monitoring and efficiency in the Bank of South Sudan, Juba and to establish the relationship between budgetary evaluation and efficiency in the Bank of South Sudan, Juba. The study used a descriptive correlational and cross-sectional survey design using a sample size of 210. 5.2.1 Budgetary participation and efficiency in the Bank of South Sudan, Juba. It revealed that there is a significant positive relationship between Budgetary participation and efficiency in the Bank of South Sudan, Juba thereby rejecting the null hypothesis as evidenced by Pearson correlation (R0.383, P.000). it was also revealed that there is a significant positive relationship between budgetary monitoring and efficiency in the Bank of South Sudan, Juba thereby rejecting the null hypothesis as evidenced by Pearson correlation (R0.619, P.000). From the study it is concluded that there is a significant positive relationship between Budgetary evaluation and efficiency in the Bank of South Sudan, Juba thereby rejecting the null hypothesis as evidenced by Pearson correlation (R0.795, P.000). This study recommended that managers within the organisation must have a clear understanding of the role which they are required to play in ensuring budgetary compliance. This ensures that the most appropriate individuals are made accountable for budget implementation. Senior management can also use budgets to communicate corporate objectives downwards and ensure that other employees understand them and co-ordinate their activities to attain them. The act of preparation as well as the budget itself will also improve communication. It is also recommended that managers produce detailed budgetary plans to enable the implementation of the long term or strategic plan. The annual budgeting process must be embraced always as found out in this study encourages managers to plan for future operations, refine existing strategic plans and considers how they can respond to changing circumstances. This encourages managers to anticipate problems before they arise and ensures reasoned decision making

TABLE OF CONTENTS

Heading Page

DECLARATION

APROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF FIGURES ix

ABSTRACT x

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1.1 Background of the Study 1

1.1.1 Historical Perspective 1

1.1.2 Theoretical Perspective 2

1.1.3 Conceptual Perspective 3

1.1.4 Contextual Perspective 5

1.2 Statement of the Problem 6

1.3 Purpose of the Study 7

1.3.1 Research objectives 7

1.4 Research questions 7

1.5 Hypotheses 8

1.6 Scope of the Study 8

1.6.1 Geographical Scope 8

l.6.2Content Scope 8

1.7 Significance ofthe Study 8

1.8 Operational definition of key terms 9

CHAPTER TWO 11

REVIEW OF RELATED LITERATURE 11

2.0 Introduction 11

2.1 Theoretical Review 11

2.2 Conceptual Framework 13

2.2.1 Budgetary control 13

2.2.2 Budget participation 15

2.2.3 Budgetary Monitoring 16

2.3.4 Budgetary evaluation 19

2.3.5 Efficiency 19

2.3 Empirical Review 29

2.3.1 Budgetary participation and Organisational Efficiency 32

2.3.2 Budgetary monitoring and Organisational Efficiency 36

v

METHODOLOGY .41

3.1 Research design 41

3.2 Study Population 41

3.3 Sample Size 42

3.4 Sampling Procedures/Techniques 42

3.5 Data Collection Methods 42

3.5.1 Questionnaires 42

3.6 Instrument of the data collection 43

3.7 Validity and Reliability of the instruments 43

3.7.1 Validity ofthe instruments 43

3,7.2 Reliability ofthe instrument 43

3.8 Data Analysis 44

3.9 Ethical Consideration 44

CHAPTER FOUR 45

PRESENTATION, DESCRIPTION AND INTERPRETATION OF THE FINDTNGS 45

4.0 Introduction

4.1 Response rate 45

4.2 General information 46

4.2.1 Gender of the Respondents 46

4.2.2 Age of Respondents 47

4.2.3 Experience with Bank of South Sudan Juba 47

4.2.4 Education level of Respondents 48

4.3 Budgetary participation and efficiency in the bank of south Sudan, Juba 49

4.3.1 Correlational analysis between budgetary participation and efficiency in the bank of

south Sudan 52

4.4 Budgetary monitoring and efficiency in the bank of south Sudan, Juba 53

4.4.1 Inferential Analysis between Budgetary Monitoring and Efficiency in the Bank of

South Sudan 57

4.5 Budgetary evaluation and efficiency in the bank of south Sudan, Juba 58

4.5.1 Inferential analysis between evaluation and efficiency in the bank of south Sudan.. 62

4.6 Findings on efficiency in the bank of south Sudan, Juba 64

4.7 Correlation analysis 68

4.8 Multiple Regression Analysis 69

CHAPTER FIVE

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS 73

5.0 Introduction

5.1 Discussion of the findings 73

5.1.1 Budgetary participation and efficiency in the bank of south Sudan, Juba 73

5.1.2 Budgetary monitoring and efficiency in the bank of south Sudan, Juba 74

5.1.3 Budgetary evaluation and efficiency in the bank of south Sudan, Juba 75

5.1.4 Efficiency in the bank of south Sudan, Juba 76

5.2 Conclusions 76

5.2.1 Budgetary participation and efficiency in the bank of south Sudan, Juba 77

vi

5.1.2 Budgetary monitoring and efficiency in the bank of south Sudan, Juba ......74

5i.3 Budgetary evaluation and efficiency in the bank of south Sudan, Juba 75

5.1.4 Efficiency in the bank of south Sudan, Juba 76

5.2 Conclusions 76

5.2.1 Budgetary participation and efficiency in the bank of south Sudan, Juba ....77

5.2.2 Budgetary monitoring and efficiency 77

5.2.3 Budgetary evaluation and efficiency of the bank 77

5.6 Recommendations 77

5.6.1 Budgetary participation and efficiency in the bank of south Sudan, Juba ....77

5.6.2 Budgetary monitoring and efficiency 78

5.6.3 Budgetary evaluation and efficiency of the bank 78

5.7 Areas for further study 78

5.8 Limitations of the study 78

REFERENCES 80

APPENDICES 87

APPENDIX II 89

TRANSMfl1~’AL LETTER FOR THE RESPONDENTS 89

APPENDIX III 90

CLEARANCE FROM ETHICS COMMITTEE 90

APPENDIXIV 91

INFORMED CONSENT 91

APPENDIX V 92