Evaluation of the budgeting system of University for Development Studies

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The role of Budgets cannot be over emphasized in the implementation of organizational policies and strategic plans. This study, which covered 1994 to 2003, evaluated the budgeting system of the University for Development Studies (UDS) with the view to identifying weaknesses inherent in the system. It also reviewed the methods of budgeting used to establish whether that can influence government decision to release funds to the university. Further the study identified variances and their causes in the university’s budgets. Data was gathered mainly from the university’s annual budget estimates and audited accounts. This was supplemented with information from interviews, focus group and informal discussions. The mean budget estimates and actual releases, the student t-test and ANOVA were used to seek answers to research questions. The significant differences among research variables were tested at 0.05 significant levels. It was found that the budgeting system used during the study period was weak relative the standard definition. The study also revealed that government is not influenced by the technique of budgeting used. Instead, student population, among others, are factors considered in the allocation of funds. The annual budget estimates were found to be erratic and inconsistent, but government subvention had steadily increased over the study period. There is no budget committee and budget manual. Also, the budget section is weak in terms of staffing and logistics. Based on these findings, it is recommended among other things that a budget committee be formed and training arranged for budget staff and budget holders. The University can also lobby Parliament for a special fund. Research is also needed in the University’s information management.
A dissertation submitted to the Department of Economics and Industrial Management, College of Arts and Social Sciences in partial fulfilment of the requirement for the award of MBA degree, 2005