JIGDAN COLLEGE DISTANCE EDUCATION

DIVISION

DEPARTMENT OF ACCOUNTING
A RESEARCH ON
REPAYMENT PERFORMA IN CASE OF LION
INTERNATIONAL BANK IN DESSIE BRANCH

A Research Paper Submitted to JIGDAN College, for the partial

Fulfillment of the Requirement for the Bachelor of Arts Degree in
Accounting.
PREPARED BY: - MOMINA HASSEN ENDRIS
ID No:-Acc 86/09/C
MOBILE: - 0912376238

ADVISOR Name_________

APRIL 2019

Logiya Afar

December, 2019

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 ACKNOWLEDGMENT

First of all I would like to thanks our God for this endless help from beginning of my life to
reach this stage.
Next, I would like to express my deep appreciation and gratitude to my advisor ………..
……..who assisted me in writing this paper through his valuable suggestion and guidance?

My family deserves my appreciation for their love and care. They coverlet me down in the
hardship I had come through during my studies. Especially I had also thankful to my family who
had provided the financial and material support which is needed to accomplish this papper.

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 Abstract

ThisstudyhasbeenconductedsinceMay 2019toinvestigatebudgetary performance in Duptiwereda.

Themainobjective ofthestudywasto the assessment of budgetary performance in case study of
dubtiwereda finance organization in Afar National Regional State.The
studyusedbothqualitativeandquantitative methods.A total of 14 employee were considered and
all are response the questionnaires. Both primary and secondary data have been collected and
analyzed for receiving the conclusion. The data gathered were analyzed by different measures of
descriptive method and the results were displayed using tables and percentage. The outcomes of
the research showed lack of budget performance valuation and update the loan processing
parameters and formats, lack of strong education program in the quality of project appraisal
and sufficient technical instance of borrower and also lack of formal finance department are
considered as major challenge to the budgetary performance in the bank. For those problems the
researchers concludes and recommend in the research paper.

Key Words:
Budgetary performance, duptiwereda

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Table of Contents
ACKNOWLEDGMENT...............................................................................................................................II
Abstract....................................................................................................................................................III
Table of Figures.........................................................................................................................................VII
CHAPTER ONE..............................................................................................................................................1
1. INTRODUCTION.......................................................................................................................................1
1.1. Background of the study...................................................................................................................1
1.2. Statement of the problem................................................................................................................2
1.3 Basic Research Questions..................................................................................................................2
1.4 Objectives of the study......................................................................................................................2
1.4.1. General Objective......................................................................................................................2
1.4.2 Specific Objectives......................................................................................................................3
1.5. Significance of the Study...............................................................................................................3
1.6 Scope of the study.............................................................................................................................3
1.7 Organization of the Study..................................................................................................................3
CHAPTER TWO.............................................................................................................................................4
2. LITERATURE REVIEW................................................................................................................................4
2.1. Meaning of Budget...........................................................................................................................4
2.2. Characteristics of budget..................................................................................................................4
2.3. Effect of budget control....................................................................................................................4
2.4. The Master Budget...........................................................................................................................5
2.5. Budget Implementation....................................................................................................................5
2.6. Budget relative to time.....................................................................................................................6
2.6.1 Long range goal:.........................................................................................................................6
2.6.2 Short term plan...........................................................................................................................6
2.6.3 Intermediate Objective:..............................................................................................................6
2.7. The structure of budget....................................................................................................................6
2.7.1 Operational budget:....................................................................................................................6
2.7.2 Financial budget:........................................................................................................................6
2.7.3 Sales budget...............................................................................................................................6
2.8. CASH BUDGET...................................................................................................................................7
2.8.1 The receipt section:-...................................................................................................................7

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 2.8.2 The disbursement section...........................................................................................................7
2.8.3 The cash surplus or deficit section..............................................................................................7
2.8.4 The financial section:..................................................................................................................7
2.9. The budget process..........................................................................................................................7
2.10. The Need for Budgetary Control.....................................................................................................8
2.11. THE BASIC OBJECTIVE OF BUDGETARY CONTROL...........................................................................8
2.12. Purpose of budgeting system.........................................................................................................9
2.13. Basic Principles of budgeting........................................................................................................10
CHAPTER THREE........................................................................................................................................12
3. Research Design and Methodology.......................................................................................................12
3.1. Research Design /Approach............................................................................................................12
3.2. Sample and Sampling Techniques..................................................................................................12
3.2.1. Target population....................................................................................................................12
3.2.2. Sampling Methods...................................................................................................................12
3.4. Data Collection tools /Instruments.................................................................................................12
3.5. Methods of Data analysis...............................................................................................................13
CHAPTER FOUR..........................................................................................................................................14
4. DATA AN LYSIS AND INTERPRETATION..................................................................................................14
4.1 Introductions...................................................................................................................................14
4.2. Personal profile of the Respondents...............................................................................................14
4.3. General response of the respondents............................................................................................15
CHAPTER FIVE............................................................................................................................................18
5. CONCLUSIONS AND RECOMMENDATIONS............................................................................................18
5.1 Conclusions......................................................................................................................................18
5.2. Recommendations..........................................................................................................................19
REFERENCES..............................................................................................................................................20
Appendix...................................................................................................................................................21

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 Table of Figures
Table 1 personal profile of respondents...................................................................................................14
Table 2 Responses Given by Respondents.................................................................................................15
Table 3 Respondent response related to budget.......................................................................................16

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CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study

Budget is a predetermined statement of management policy during a given period, which
provides a standard for comparison with results actually achieved (Brown and Haward 8 th
edition).write here Budgetary performance is the organization against many problem such as
budget deficit, unequal distribution of budget, etc. Hence, there should be an inviting effort to
minimize budget deficit (Chandra 1998 in page 205). This study attempts to give a good answer
for why budgetary performance are assess on the organization and why budgetary performance
are needed to the organization.
The study was focused on the assessment of budgetary performance in the organization. Each
year there is an inventory valuation process which is taken up on regular basis out according to
the growth of the organization; it was not fully recorded and not taken the extent as a means of
budget utilization.
Most of the time budget deficit should be controlled by finance organizations and by periodical
performance of the organizations. But taking this case into account there is a gap created within
the organizational system which affects the goal of the organization.
The study will be focused to show the solution of budgetary performance, deficit and how to
assess or utilize the budget to the organization. The objective of the study will to assess the
budgetary performance in Dubtiwereda finance organization & to see the organization if they are
earning a good return on budget or not.
If they are good position it is better to keep on, if not to reduce them try to manage it.
Properly managed budgetary performance is good to the organization development. But absence
of this the organization would be not fulfill their goals and objectives.
Generally now a day, every business is required budgetary performance, it should be available
management tool, express plan for the future year and it states how available resources would be
employed and what additional resource would be needed.

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1.2. Statement of the problem
Organization always prepare annual budget for the current year activities by designed budget
proposal and its active implementation of objectives. Budget is one of the techniques used to
control the organization activity and it is also quantitative expression for set of time period and a
proposed future plan of action by management.
Budget is the formal expression of the plan and objective of management to the organization
which covers all phases of operations for a specific period of time.
Good budgetary performance can be a vehicle for addressing of objectives and goals in the most
carful way. But in preparing budget many problems were take place and consequence creates a
great impact on the performance of the organization. The problems are using inappropriate
budget preparation procedures & not well utilization of budget for each department within the
organization. The problem of budgeting is not only in preparation stage but also on
implementation. The concern of this study will be examining the assessments of budgetary
performance in particular area Dubtiwereda finance in Afar region. The study primary will be
focus on the organization, in order to give the final solution and suggestion to the problems.

1.3 Basic Research Questions

The researcher will raise the following question that would be answered in this course of study.
1. What are the factors that affect budgetary performance of the organization?
2. How to assess budget utilization on Dubtiwereda finance organization?
3. Why budgetary performance is necessary?
4. What means the organization use to prepare good budget system?

1.4 Objectives of the study

1.4.1. General Objective
The general objective of the study was to the assessment of budgetary performance in case study
of dubtiwereda finance organization in Afar National Regional State.

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 1.4.2 Specific Objectives
 To see the organization effectively implement its budget or not
 To indicate for the finance organization how properly managed budget is important
successfully and to exhibit which factors affect the demand for budgetary performance.
 To know the purpose of budgetary performance in the finance organization
 To identify ways and means by which the organization budgetary performance improved
to best level expectation.

1.5. Significance of the Study

This study helps the organization to have a good budgetary practice and to properly budget the
available resources and to effectively implement it. In addition to this study used to provide
ground line information for the organization about its budgetary performance, which is very help
full for the organization advancement to provide a better service.
The study helps to examine about the factor affecting budgetary performance in the organization
and create awareness to the organization about budget utilization and implementation, which
requires improvement. Furthermore, it helps to identify ways and means by which the
organization budgetary performance is improved to the best level expectation.

1.6 Scope of the study

The study would better if the study conducted on over all organization performance as compared
with other similar organizations performance but

1.7 Organization of the Study

This paper includes five chapters. The first chapter present the introduction part which reflecting
the background, statement of the problem objective of the study, significance of the study, scope
of the study, limitation of the study and organization of the paper. The second chapter described
literature review. The third chapter deals with methodology of the study. The fourth chapter
described data analysis and interpretation and the fifth chapter consists of summary, conclusion
& recommendation.

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 CHAPTER TWO

2. LITERATURE REVIEW

2.1. Meaning of Budget

According to Cherington budget is defined as follows
Budget is an itemized estimate of the operating result of enterprise for a future time period.
Forms of budget vary from organization to organization. Budget is eventually summarized in to
the form of normal financial statements. The major difference between budget and the financial
statement is the data used to develop each, financial statement are based in actual result of past
operations, whereas budget are based on planned operations for a future time period, because of
this budget is a performa statements. (Cherington P.140)

2.2. Characteristics of budget

Budget has many characteristics, According to MN. ARORA budget have the following
characteristics
 A budget is primary planning and control device
 A budget is prepared in monetary term and/or quantitative term
 A budget is prepared for defined future period
 It shows planed income and expenditure and also the capital to the employed
 Purpose of budget is to implement the policies formulated by management for attaining
the given objective (Source MN. ARORA, 8thedn, P 13)

2.3. Effect of budget control

Budget is major future of management control system. In general they can:-
 Provide performance criteria
 Compel planning including the implementation of plan
 Promote communication and coordination within the organization
 Effect behavioral and organizational processes.

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2.4. The Master Budget
A master budget is a set of period budgets that have been consolidated into forecasted financial
statements for the entire company. Each period supplies the projected costs and revenues for a
part of the company. When combined these budget show all anticipated transaction of the
company for a future accounting period.
Three steps lead up to the completed master budget
1. Periodic budget are prepared
2. For casted income statements prepared
3. Forecasted balance sheet is prepared
(SOURCE NEEDLES, ANDERSON, CALDWELL, P. 805)

2.5. Budget Implementation

Budget implementation is the responsibility of the budget directory. Communication and
support determine the success of budget implementation process proper communication of
expectation and targets to all key people in the company is essential. All employees involved
in the operations of the business must know what is expected of them and they must receive
directions on how to achieve their goals. Equally important top management must support the
budgeting processes and encourage implementation of the budget. The processes will succeed
only if middle, and lower level managers can see that top management truly is interested in the
outcome and willing to reward people for meeting the budget goals.
Budgets must be classified and then charged to the different general ledger account the
projected financial statement are the end product of the budgeting process
At this point, management must decide whether to accept the proposed master budget, as well
as the planned operated results , or ask the budget director to change the plans and do part of
the budget over again.
(SOURCE NEEDLES, ANDIRSON, CALDWELL, P.812)

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2.6. Budget relative to time
Development of an annual budget is only one segment of the ongoing planning process of
business, for the planning process to be more successful, there must be long range goals,
intermediate objective and short term plan of action according to Cherrington P141
2.6.1 Long range goal: Identify the direction of a company over a 5 year to 10 year the goal are
stated in general term but deal with specification in which the company intended to be
successful
2.6.2 Short term plan: Is budget or annual forecast, identify the activity to be accomplishing
during the coming year.
2.6.3 Intermediate Objective: Identifies the specific stages that will lead to accomplishing the
long term goals, they provide a link between short term plan and long term objective

2.7. The structure of budget

Budget is classified broadly into two categories these are operational budget and financial
budget.
2.7.1 Operational budget: is reflecting the result of operating decision of the firm.
2.7.2 Financial budget: is reflecting the financial decision of the firm.
The operating budget consists, sale budget, production budget, Ending inventory budget cash
receipts budget, direct material budget, factory overhead budget, selling and Administrative
expense budget. (Source Schaum’s P.70)

2.7.3 Sales budget

The starting point of any master budget is the sales revenue budget based on forecasted sale of
goods or services
Sales forecasting: is the process of predicting sale of services of goods. Various procedures are
used in sale forecasting and final forecast usually combines information from many different
sources. Many firm have top management-level market research staff whose job is to
coordinate the company’s sale forecasting efforts (source: Hilton, Maher &Selto, P.627)

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 2.8. CASH BUDGET
Cash budget is prepared in order to forecast the firm’s future financial need. It is also a tool for
cash planning and control, because the cash budget detail is the expected cash receipt and
disbursement for a designed time period, it helps to avoid the problem of either having idle
cash on hand or suffering a cash shortage, However, if a cash shortage is expected, the cash
budget includes weather shortages temporary or permanent, i.e. weather short term or long
term borrowing need. Cash budget typically consists of the following four major sections.

2.8.1 The receipt section:- Which gives the beginning cash balance, cash collection from
customers and others.
2.8.2 The disbursement section: this should all cash payment made or listed by purpose
2.8.3 The cash surplus or deficit section : This simply shows the difference b/n cash receipts
and cash disbursement action.
2.8.4 The financial section: Which provide a detailed account of the borrowing and repayment
expected during the budgeted period (Source SchamsP.75)
Estimate of cash at particular point of time may be made with the help of the following:-
1. Budgeted Balance sheets cash budget: the cash budget may be prepared inline of capital
budget with the help of budgeted balance sheet. This cash budget is essential for static type.
2. Fund flow type of cash budget: It does not show as to how the expected cash deficits arising
3. Cash account type or receipts and payment type of cash budget: Fund flow type analysis is
better balance sheet type of approach
(Source HrishikeshChakraborty&SrijitChakraborty, P. 672)

2.9. The budget process

The budget process is as important into day’s globally competive operation environment as in
traditional environments. In fact budget becomes even more important when just in time (JIT)
or total quality manager (TQM) technique are a plied and when computer and other electronic
operation and data accumulation device are used. In these new operating setting actual
operating data are made available quickly, and budgets must be updated continuously to
accommodate management’s need for performance evaluation. The basic principles of
budgeting do not change in these environments, only the speed and timing with which they are
applied (Source: Needles, Anderson, Caldwell P798)

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 2.10. The Need for Budgetary Control
Budgetary controls the process of developing plan for company’s expected operations and
controlling operations to help carry out those plans. The basic objective of budgetary control is
the following:
To aid in establishing procedures for preparing a company’s planned revenue and costs to aid in
coordinating and communicating those plans to various levels of management To formulate a
basis for revenue and cost control
A business does not benefit from budgetary control by operating haphazardly the company must
first set quantitative goals, define the role of individuals and establish operating targets or detail
operating budget.
A period budget is a forecast of operating results for segment or function or a company for a
specific period of time, it is quantitative expression of planned activity and requires timely
information and careful coordination.
(Source Needles, Anderson, Caldwell, P.800)

2.11. THE BASIC OBJECTIVE OF BUDGETARY CONTROL

1) It lies down define targets of production and sales with corresponding allowable expenses.
Which can be exceed only with prior approval
2) It provides definite and precise guidance regarding sales, production and finance. Types and
quantities to sold and expense allowable for sale are clearly indicated. As regards production,
definite instructions regarding types, quantities materials, labour and other allowable expense
are available similarly, from the point of view of finance; guidance is available with respect to
working capital and capital expenditure to be incurred.
3) It acts as coordinating machinery between different functional heads. Otherwise, there might
be production without chance of sales, or there may be commitment for supply when chance of
production would be meager, or production might be held up for want of certain materials, or
for certain grades of labour
4) This is helpful in controlling production by limiting chance of wastage. Similarly, it keeps in
control cost and expense by limiting the allowable expenses where decentralized functioning of
is essential.
5) An aid to management in policy matters, from working of one budget management may change
future plans and programs by eliminating proper line and by concentrating on more profitable

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 illness or area. Budgetary control thus continually helps management in modification and
revision of policy, and the revised policy shall be the basis of the next plan and budget.
6) It provide objective basis of judgment executives rather than pure guess these providing them
with an opportunity to strive for some calculated better result
Budgetary control is the system of management control in which all the operations sale
purchases, production etcare for case in advance and the results, when known, are compared
with the planned targets.
(source, HRISHIKESH CHAKRABORTY & SRIJIT CHAKRABORTY, P. 584)

2.12. Purpose of budgeting system

A budget is a detailed plan, expressed in quantitative terms, that specifies how an organization
will acquire and use resources during a particular period of time.

Budgeting systems have five primary objectives

 Planning
The most obvious purpose of a budget is to quantify a plan of action, the budgeting process
forces the individual who constitute an organization to plan a head
 Facilitating Communication and Coordination
For any organization to be effective, each manger throughout the organization must be aware
of plan made by other managers. Inorder to plan reservation and ticket sale effectively for
facilitating communication and coordination is one example.
 Allocating Resources
Generally an organization resource is limited and budgets provide one means of allocating
resources among competing users.
 Managing Financial and Operational performance
A budget is a plan and plans are subjected to change. Nevertheless, a budget serve as a useful
bench mark with which actual results can be compared
 Evaluating performance and providing incentives
Comparing actual results with budgeted results also helps managers to evaluate the
performance of individuals, departments, divisions or entire companies, since budget are used
to evaluate performance, they can also be sued to provide incentive for people to perform well.

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 Different types of budget serve different purposes. A master budget, or a profit plan, is
comprehensive set of budgets covering all phase of an organizations operation for a specified
period of time. (Source Hilton, Maher, Selto, P.625

2.13. Basic Principles of budgeting

The preparation of an organizations budget is important to its success for three reasons, first,
preparing a budget forces management to look ahead & plan both long range and short range
goals and events. Second the entire management team must work together to move and
carryout the plans. Third, by comparing the budget with actual results and it is possible to
review performance of all levels of management.
1. Long - range goals principles
Annual operating plans cannot be made unless those preparing the budget known the direction
that top management expects for the organization long range goals, projections covering a five
to ten years period, must be set by top management (Needles, Anderson, Caldwell P.802)
2. Short-range goals and strategies principle
One management has set the short-range goals the controller or budget director takes charge of
preparing budget. These person designs a complete set of budget development plans & time
with deadlines for all levels and parts of the year’s operating plan (Needle, Anderson,
Caldwell, P.804)
3. Human responsibilities and interaction principle
First the section of a budget director (and staff, if necessary) is very important to an effective
budgeting system. These person must be able to communicate well with the people both above
and below in the organization hierarchy 2 nd we have mentioned that all participants should be
identified and informed of their responsibilities, the identification process begins with high
level managers. Full communication throughout the budgetary process is our final interaction
principles. In particular, the budget must be communicated clearly to the participants each one
of these people playing a part in developing the budget and implementation effective budgeting
then require participative budgeting, which means that all level of personnel task part in the
budgeting process in meaning full active way. (Source, Needle, Anderson, Caldwell P804)
4. Budget housekeeping principles
Which means that three guidelines should be followed, first a realistic approach must be taken
by the participants. Second deadlines must be meet. Third the organization must use the

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flexible procedures for implementing the budget. Realisms is two way street. Top management
must first suggest attainable targets and goals; there each manager must provide realistic
information and not place departmental goals a head of the goal of the whole organization.
Deadlines are important because budget preparation depend on the timely cooperation of many
people if one or two people ignore a dead line for submitting information, the budget might not
be ready on time, management should communicate the important of time table to all
participant & should review time submission of budget data as part of each manger
performance evaluation.
Our final principle of budget housekeeping calls for flexibility. Budget should always be
treated as guide and not as absolute truths, budget are important guide to the action of
management.
5. Budget follow-up principle
Since the budget consist of projections and estimates, it is important that it be checked and
corrected continuously. It more sense to correct and error than to work with an incorrect guide.
Budget follow up and data feedback are part of the control aspects of budgeting cost
organization and departmental expectations can also be unrealistic. Such problems are
detected when performance reports compare actual results with budgeted results.
(Source Needle, Anderson, Caldwell, P.805

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 CHAPTER THREE

3. Research Design and Methodology

3.1. Research Design /Approach
The study was applied on the problem associated with budgetary performance in DubtiWoreda
finance organization which is found in Afar region, Zone 1 (Asaita). The study was conducted,
by using both qualitative and quantitative research approach. The proposed study was used a
descriptive approach which is plan in such a way that can provide for successful
accomplishment in quantitative data sets.

3.2. Sample and Sampling Techniques

3.2.1. Target population
The study was focus on the employee of the organization by using simple random sampling
techniques to acquire the necessary information and to make clear investigation for the current
research. The total population of the study was including 28 employees.

3.2.2. Sampling Methods

Out of the total, the researcher was study only fourteen (14) or fifty (50%) randomly selected
employees taking this in to account on factors it is found necessary to use personal judgment.
To collect the necessary data the study team used both primary and secondary source of data.
Primary data: - was gathered from employees of the organization by distributing questionnaire
and interview through related parties.

3.4. Data Collection tools /Instruments

Questionnaire: - was containing both open-end and close-end questions.
Interview: - by directly communicate with the finance manager
Secondary source of data: was collected or obtained from review of selected materials which;
are related to the assessment of budgetary performance, like reference book, magazines, used
internet and the organization budget report document.

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3.5. Methods of Data analysis
In this study the data was analyzed and interpret using different methods, the method includes
tabulation and percentage. Tabulation used to arrange data in a table or other summary format
to facilitate the process of comparison of various data analysis.

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 CHAPTER FOUR

4. DATA AN LYSIS AND INTERPRETATION

4.1 Introductions
This chapter contains analysis and interpretation of data collected from primary data (questioner
And interview) and secondary data. The analysis was made by using statistical tools of tabular
and percentage.

4.2. Personal profile of the Respondents

Table 1 personal profile of respondents
1 Gender Alternative No of respondent Percentage 

Male 9 64.28
Female 5 35.72
Total 14 100
2 Education level
12 complete 3 21.42%
Diploma
5 35.72%
Degree 6 42.85%
- -
Others
14 100%
Total
Source: own survey 2019
The above table 1 shows that about 9 (64.28%) of the respondents of the organization employees
are male and remaining 5 (35.72%) of the employees are female. the researchers concludes that
most of the respondents are male. And also 6 (42.85%) of the employees are degree holder,
5(35.72%) are diploma holders and 3(21.42%) of the employers are 12 th complete. On the other
hand there are no employees who are holders of above degree. So this implies that the employees
are competent to carry out their responsibilities or duties.

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4.3. General response of the respondents
Table 2 Responses Given by Respondents
No. of respondents
No Question who say Percentage %
Yes No Yes No
1 Do you have known about budgetary 14 - 100 -
performance?
2 Do you participate during budget 11 3 78.57 22.43
preparation?
3 Does the organization effectively implement 6 8 42.85 57.15
its budget?
4 Is budget deficit occurred in the 5 9 35.72 64.28
organization?
5 Do you think the organization used its 5 9 35.72 64.28
capacity to reduce budget deficit?
Source: own survey 2019
As shown on table 2 above, for item number one question, out of fourteen respondents all of
them responded that they have known about budgetary performance, for question no. 2, out of
fourteen eleven 11(78.57%) participate during budget preparation, out of fourteen three
3(22.43%) does not participate during budget preparation. For question no. 3 out of fourteen six
6(42.85%) says the organization effectively implement its budget while out of the total fourteen
eight 8(57.15%) of does not the organization effectively implement its budget. For question no. 4
out of fourteen five 5(35.72%) says there is budget deficit occurred in the organization while out
of the total fourteen nine (64.28%) of the respondents are does not the budget deficit occurred in
the organization. For question no. 5 out of fourteen five 5(35.72%) says the organization used its
capacity to reduce budget deficit while out of the total fourteen nine (64.28%) of the respondents
are does not the organization used its capacity to reduce budget deficit.

Table 3 Respondent response related to budget

No Description Respondent Percentage

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 response %
1 What is the major factor affecting the budgetary performance of the
organization?
A. Employees 2 14.28
B. Shortage of fund - -
C. In appropriate budget allocation 8 57.15
D. The manager of the organization 4 28.57
2 Budgetary allocation is mostly allocated by?
A. The organization manager 9 64.28
B. The finance department 5 35.72
C. The market department - -
D. Others - -
3 In which method use the organization in order to know appropriate
utilization of budget amount?
A. By recording revenue and expense 7 50.00
B. By recording inventory valuation 5 35.72
C. By planned accordingly 2 14.28
D. By other ways - -
4 Which system used the organization in order to reduce budget deficit?
A. Adopt good budget system 7 50.00
B. Use effective manager - -
C. Effective allocation of budget 7 50.00
D. Active participation of all employees - -
Source: own survey 2019
As indicated on the above table 4.3 the respondent’s response reveals that 2 (14.28%) the major
factor affecting the budgetary performance of the organization are employees, 8 (57.15%) of the
respondents response about the major factor affecting the budgetary performance of the
organization is in appropriate budget allocation and 4 (28.57%) of the respondents response
about the major factor affecting the budgetary performance of the organization is The manager of
the organization.

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As indicated on the above table 4.3 the respondent’s response reveals that 9 (64.28%) of
respondents Budgetary allocation is mostly allocated by the organization manager, 5 (35.72%) of
department.
As indicated on the above table 4.3, 7 (50.00%) of the respondents response related to the
method use the organization in order to know appropriate utilization of budget amount by
recording revenue and expense, 5 (35.72%) of the respondents response related to the method
use the organization in order to know appropriate utilization of budget amount by recording
inventory valuation and 2 (14.28%) of the respondents response related to the method use the
organization in order to know appropriate utilization of budget amount by planned accordingly.
As indicated on the above table 4.3, 7 (50.00%) of the respondents response related to the system
used the organization in order to reduce budget deficit by adopting good budget system and 7
(50.00%) of the respondents response related to the system used the organization in order to
reduce budget deficit by Effective allocation of budget.
In general the researcher can conclude from the above table the major factor affecting the
budgetary performance of the organization in appropriate budget allocation, the manager of the
organization and Employees have their own role. Budgetary allocation is mostly allocated by the
organization manager and by finance department. The method use the organization in order to
know appropriate utilization of budget amount by recording revenue and expense, by recording
inventory valuation and by planned accordingly. The system used the organization in order to
reduce budget deficit Adopt good budget system and Effective allocation of budget.

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 CHAPTER FIVE

5. CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions
The aim of this research paper was to the assessment of budgetary performance in case study of
dubtiwereda finance organization in Afar National Regional State.
Thus based on the findings of the study presented in chapter four the following conclusion has
been drawn by the researchers:
 Out of fourteen respondents all of them responded that they have known about budgetary
performance.Out of fourteen eleven 11(78.57%) participate during budget preparation, out
of fourteen three 3(22.43%) does not participate during budget preparation. out of fourteen
six 6(42.85%) says the organization effectively implement its budget while out of the total
fourteen eight 8(57.15%) of does not the organization effectively implement its budget.
 Out of fourteen five 5(35.72%) says the organization used its capacity to reduce budget
deficit while out of the total fourteen nine (64.28%) of the respondents are does not the
organization used its capacity to reduce budget deficit.
 9 (64.28%) of respondents Budgetary allocation is mostly allocated by the organization
manager.
 8 (57.15%) of the respondents response about the major factor affecting the budgetary
performance of the organization is in appropriate budget allocation.
 7 (50.00%) of the respondents response related to the method use the organization in order
to know appropriate utilization of budget amount by recording revenue and expense.
 In general the researcher can conclude from the above table the major factor affecting the
budgetary performance of the organization in appropriate budget allocation, the manager
of the organization and Employees have their own role. Budgetary allocation is mostly
allocated by the organization manager and by finance department. The method use the
organization in order to know appropriate utilization of budget amount by recording
revenue and expense, by recording inventory valuation and by planned accordingly.

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5.2. Recommendations
Based on the forgoing and conclusion, the following are recommended for budgetary
performance implementation.
 In order to improve the quality of budgetary performance each individual have known
about budgetary performance and about its allocation.
 The budget of wereda should be cleared for organization manager, finance department
and for other concerning body to improve the performance of budget utilization in this
specific wereda.
 In order to know appropriate utilization of budget amount the organization should be
used recording revenue, expense and recording inventory valuation.
 In order to reduce budget deficit the organization should be used adopting a good budget
system and Effective allocation of budget.

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 REFERENCES

1. Cherrington “Cost Accounting managerial Approach 2nd edition

2. HrinshikeshChakraborty&SrijitChakraborty 1997 Management Accounting
3. M.N. Arora Cost Accounting Principle and Practice 8th edition New Delhiviskas (2003)
4. Needles, Anderson &Caldweel 1994 Financial and Managerial Accounting third edition
5. Ronald W.Hilton, Michael W.Maher& Frank H.Selto 2000” Cost management stratagies
for Business Decisions
6. Schaum’sTheory and Problem of financial management second edition

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 Appendix
JIGDAN COLLEGE
DEPARTMENT OF ACCOUNTING
Questionnaire
Dear respondent:- This questionnaire is designed to help in examining and assessing the
budgetary performance of the organization in Ezhawereda finance. So you are kindly requested
to give the right response you think, since it contribute a lot for the success available for the
study.
NB.:- There is no need of writing your name
Make a thick mark ()in box which you think an appropriate response
I. Personal profile
Sex Male  Female 
I.1 Education level
12 complete 
Diploma 
Degree 
Others 
II. General question
1. Do you have known about budgetary performance?
1.1 Yes  1.2 No
2. Do you participate during budget preparation?
2.1 Yes  2.2 No 
If no why? ____________________________________________________
_______________________________________________________________
3. What is the major factor affecting the budgetary performance of the organization?
3.1 Employees  3.3 In appropriate budget allocation 
3.2 Shortage of fund  3.4 The manager of the organization 
4. Does the organization effectively implement its budget?
4.1 Yes  4.3 May be yes 
4.2 No 

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 5. Budgetary allocation is mostly allocated by?
5.1 The organization manager 
5.2 The finance department 
5.3 The market department 
5.4 Others 
6. Is budget deficit occur in the organization
6.1 Yes  6.2 No
7. On basis of question No 6 if yes why? _____________________________________
__________________________________________________________________
8. Do you think the organization used its capacity to reduce budget deficit
8.1 Yes  8.2 No
9. From question no 8 if yes in what way ?___________________________________
__________________________________________________________________
10. In which method use the organization in order to know appropriate utilization of budget
amount?
10.1 By recording revenue and expense 
10.2 By recording inventory valuation 
10.3 By planned accordingly 
10.4 By other ways 
11. Which system used the organization in order to reduce budget deficit?
11.1 Adopt good budget system
11.2 Use effective manager
11.3 Effective allocation of budget
11.4 Active participation of all employees
12. To reduce the organization budgetary performance problem what means the organization
accomplish?
________________________________________________________________
_____________________________________________________________________
______________________________________________________________________
13. What are the main objectives to implement budget by the organization?
______________________________________________________________________

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