| Abstract: | The main purpose of this study was to assess the overall budgetary system of Ethiopian Postal Service Enterprise. A descriptive type of research design was used and data were collected from all employees that are working in the budgetary system of the organization. To achieve the objective of the study, data was collected from employees of the organization using a close-ended and mixed items questionnaire and semi-structured interview as well as data from annual reports and manual of the organization. The target population includes 70 employees which consist of 27 departments or business units, 19 zone managers, 8 region managers, and purposively selected employees that were related to the budget activity of the organization that is, 5 employees from finance, 6 from planning experts, and 5 from internal auditors. 70 respondents were selected purposively and given questionnaires 65 of them have properly filled and returned. The result of the study revealed that plan and budget preparation, allocation, utilization, budget control, and evaluation of the organization is affected by several factors. Those factors are lack of lower-level management participation after plan and budget preparation, lack of proper allocation of budget, underutilization of the estimated budget, and lack of preparing budget variance analysis. Besides that, not have of using modern technology for both budgets, and financial transactions record and control, need of management attention on budget controlling and evaluation, and no corrective action taken by management members. Based on the findings, the study recommended that top managements and other concerned bodies should take all responsibilities to adjust those mentioned problems. |
