ASSESSMENT OF BUDGET UTILIZATION AND CONTROL (A CASE OF ETHIO AGRI-CEFT PLC

Abstract

The main purpose of this study is to conduct as assessment of the budget utilization and control in Ethio Agri CEFT PlC . The general objective of the research paper is to assess the budget utilization and control and the study was designed to assess methods and processes of budget utilization in these company. This research examines effectiveness and efficiency of budget utilization and control, to assess budget control system and to investigate challenges that have been facing during budget preparation and utilization. The research adopt quantitative and qualitative analysis. A total of 75 respondents while the interview was conducted with 3 finance officers. The data collected using primary and secondary. Data were analyzed with the statistical package for social sciences (SPSS) version 20. As the findings show that budget utilization and controlling process of the company is inefficient, budget monitoring and evaluation didn’t performed on regular and timely schedules. Therefore study concluded that budget controlling and utilization process of the company is inefficient. Finally the research the following recommendations: the company should plan its annual budget by participating departments and analyzing the actual performance of the past budget years against the demand of expenditure: operational units, capital investment and running costs and it has some weakness in its budget utilization system and controlling mechanism. Thus the company should improve its budget planning/preparation that enables the management of to compare the planned ones with the actual results and based on that they can take an action to modify budget variance and operation of the business