ASSESMENT OF BUDGET PREPARATION AND CONTROLLING SYSTEMIN CASE OF BURAUE OF FINANCE AND ECONOMIC DEVELOPMENT, EASTERNHARARGE ZONEA RESEARCH PROPOSAL SUBMITTED IN THE PARTIAL FULFILLMENT OF THEREQUIREMENT FOR BACHELOR OF ART (BA) DEGREE IN ACCOUNTING ANDFINANCEPREPARED BY AHMED ABDULJEBARID NO ; - 0855/07ADVISOR;- ANAF.AHARAMAYA UNIVERSITYCOLLEGE OF BUSSINESS AND ECONOMICSDEPARTMENT OF ACCOUNTING AND FINANCEJANUARY, 2017 HARAMAYA, ETHIOPIA
CHAPTER ONEINTRODUCTIONBack ground of the studyBudget is a formal expression of the expected income and expense for definite period of the timeto achieve the organization objective budget can be expressed in terms of quantitative andmonetary term (Horngren, 2009). The budget represent a set of guide lines for controllinginternal operation of the organization the management through budget can evaluate theperformance of the organizations. The discrepancy between planned performances and actualperformance highlighted through the budget. Budget is culmination of prediction and assumptionachieving a financial and non-financial objectives (David N. 2005). The government budget represent a plan or forecasts by government of its expenditure andrevenues for specified period. Communally government is prepared for a year or financial year(public finance, 2005).During imperial period the government of Ethiopia initiated the budget cycle each year on thefirst day of Tikimti October. Now the federal government of Ethiopia prepare annual budget athamle 01 to sane 30 E.C.(FGE teaching material, March 2015). The budget involves such asdifferent tasks on the expenditures and revenues side of government finance. It is also a commonaccounting tool company use for implementing strategy management used to archiveorganization objectives (Horn green 2009).Poor performance is often to be found in the weak links between policy making, planning andbudgeting. At one level, policy making and planning are unconstrained by what a country will beable to afford over the medium term. At another level, policy making and planning areinsufficiently informed by their budgetary implications and by their likely impacts in the widercommunity. The inadequacy of hard budget restraints on decision makers at the planning andbudget formulation stage of the cycle leads to inadequate funding of operations, poor expenditurecontrol and unpredictability in the flow of budgeted resources to agencies responsible for servicedelivery (Malcolm 1998).