Factors Affecting Proper Utilization of Budget in Ethiopian Public Universities
Presenter's country
Ethiopia
Start Date
27-5-2016 4:00 PM
End Date
27-5-2016 5:05 PM
Location
Hall I
Submission type
Presentation
Abstract
Inefficient higher education budget utilization has been adversely affecting the implementation of government policies, programs and project implementation in Ethiopia. This study sought to investigate the main factors that affect proper budget utilization in public universities of Ethiopia in 2016. A total of 178 respondents were randomly selected from Dilla, Wolaita Sodo and Bule Hora Universities using closed and open questionnaires. To supplement the survey result secondary data were collected from federal general auditor. The data were analyzed using various descriptive statistics. The findings indicated significant improvement of budget allocation to public universities from time to time. However, lack of proper planning and allocation of budget in these Universities were found to be serious challenges. Lack of timely revision of initial proposed physical activity plan based on the approved and available budget, lack of adequate knowledge on preparing the plan and program budget, shortage of adequate number of human resources and inadequate of involvement of all concerned bodies during the budget plan preparation were found to be main the causes of the aforementioned problems. Decentralized budget administration system, absence of result oriented evaluation of budget performance and regular revision of plan in accordance with the available budget, inadequate knowledge of employees toward program budget, lack of effective communication, lack of effective budget monitoring and evaluation, and absence of full involvement of the line managers in planning process were identified as the most important internal factors that affected budget utilization in public universities. Among the external factors, imposition of the federal agencies to implement unplanned activities by Universities, delay in project implementation, low financial and technical capacity of the contractors had adversely affected the budget utilization of the study Universities. This study recommended that due attention should be given by University top management during budget plan, allocation and implementation. The result also suggested capacitating the employees' skill, knowledge and attitude through continuous on job training programs.
Keywords
Key words: Budget Utilization, Public Universities, Miss Utilization, Ethiopia
Factors Affecting Proper Utilization of Budget in Ethiopian Public Universities
Hall I
Inefficient higher education budget utilization has been adversely affecting the implementation of government policies, programs and project implementation in Ethiopia. This study sought to investigate the main factors that affect proper budget utilization in public universities of Ethiopia in 2016. A total of 178 respondents were randomly selected from Dilla, Wolaita Sodo and Bule Hora Universities using closed and open questionnaires. To supplement the survey result secondary data were collected from federal general auditor. The data were analyzed using various descriptive statistics. The findings indicated significant improvement of budget allocation to public universities from time to time. However, lack of proper planning and allocation of budget in these Universities were found to be serious challenges. Lack of timely revision of initial proposed physical activity plan based on the approved and available budget, lack of adequate knowledge on preparing the plan and program budget, shortage of adequate number of human resources and inadequate of involvement of all concerned bodies during the budget plan preparation were found to be main the causes of the aforementioned problems. Decentralized budget administration system, absence of result oriented evaluation of budget performance and regular revision of plan in accordance with the available budget, inadequate knowledge of employees toward program budget, lack of effective communication, lack of effective budget monitoring and evaluation, and absence of full involvement of the line managers in planning process were identified as the most important internal factors that affected budget utilization in public universities. Among the external factors, imposition of the federal agencies to implement unplanned activities by Universities, delay in project implementation, low financial and technical capacity of the contractors had adversely affected the budget utilization of the study Universities. This study recommended that due attention should be given by University top management during budget plan, allocation and implementation. The result also suggested capacitating the employees' skill, knowledge and attitude through continuous on job training programs.
Comments
The final paper may be presentted ethier by Dr. Semeneh Bessieor Mr Dejene Tafa, both from Madda Walabu University