ASSESSMENT OF THE BUDGET AND BUDGETARY CONTROL SYSTEMS IN ADDIS ABABA WATER AND SEWERAGE AUTHORITY

Abstract

The major objective of this study was to assess the budget and budgetary control systems in Addis Ababa Water and Sewerage Authority. To conduct the study, the researcher used both primary and secondary data sources through questionnaire, interview and annual reports. Target sampling respondents 92 (ninety two), the sampling techniques used non-probability sampling specifically purposive sampling, and data analysis was done using descriptive statistics present text and table. The finding showed that significant number of employee response unreliable budget preparation, less participatory budgeting process, does not give enough time or special attention on budgetary process, and does not efficient implementation budget. Moreover, shortage of foreign currency and unreliable budget planning increase budget variance, weak comparison of budget with actual performance, lack of skill and does not exist strong follow-up budgetary control system, insufficient skilled manpower, lack of conduct performance auditing to evaluate efficient & effectiveness of budget utilization, lack of continuity of auditing functions, and lack of careful administer budget. It was recommended that reliable budget preparation based on the current market assessment and consistently with previous year budget or based on last year approved budget, making good participatory budgeting process, avoid shortage of foreign currency by management quickly request not only National Bank but also Prime Minister Office in order to give solution within a short period of time, make continuous comparison of budget with actual performance report periodically, make strong follow-up on budgetary control system, make sufficient skilled manpower, make conduct performance auditing to evaluation of budget utilization, make continuity of auditing functions, and very carefully administer each revenue collection and expenditure budget based on cash flow and approved budget with authority and responsibility.