BUDGETARY CONTROL AND PROFITABILITY OF AN ORGANIZATION

Summary

From the findings it is obvious that the focus on the budget has assumed greater prominence in recent years with increasing democratization, civil society participation and the desire to respond to development challenge of poverty. In Nigeria, the return to civilian rule after many years of military rule has put issues of budget in the public domain. The budget is an important instrument of governance in any modern state. It has the potential of aiding planning and contributing to development. But it is shrouded in a lot of myths and illusions, which essentially excludes citizens from participation and promote secrecy, corruption and underdevelopment. There is therefore the need to interrogate the reality of budgeting in Nigeria with a view to transforming it in such a way that it will not only become participatory, transparent and accountable but will also lead to poverty eradication and sustainable development and achieve desirable performance in the short and long run. However, the findings show that budget coordination can have positive effect on budget performance. Budget coordination can also ensures evaluation of budget bids, as well as budget coordination Increase Company’s performance. Budget coordination has and it 60 will still prevent maximization of personal interest by top management, budget coordination can ensures good organization plan and objectives. There is positive impact of budget statement from coordination on budget performance, as well as seen that budget coordination does not coordinate functional units of a company. Budget coordination can serves as an effort to motivate employees to work in accordance for the good of the company. This will go a long way in coordination and bring different part of the budget together reconciled into a common plan. It is an effective means of accomplishing managerial efficiency and improving communication among staffs in the organization. Consequently, it is evident that budget committee can review budget process, prepare estimates that are not captured at the group level. They undertake quality participation in checking of budget estimates, as well as capture actual results for budget preparation, which will bring positive impact on the relationship of budget participation and budget performance. Budget participation also involves employees throughout the organization to participate in budget preparation, and participation which aids in the decision making of an organization. Budget participation can also affects lower subordinate negatively in budget preparation, because it is sometimes used as an avenue to influence figures while preparing the budgets. This process can lead to reduction budget participation leading to vacillation and delay