SALALE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS DEPARTMENT OF

ACCOUNTING AND FINANCE

ASSESSMENT OF BUDGET IMPLEMENTATION AND CONTROL SYSTEM

A Case of Ethio-telecom North shoazone Fichetown

By: -
Simona Semagn
Advisor: - May 2024
Meseret Dame (Ass.prof.) Fiche, Ethiopia
 Acknowledgement
First of all, I would like to thank my almighty God for helping me for every up and down in
accomplishment of this research work. This research would have not been completed
successfully without the support of my families and individuals. I would like to say thanks
to all. However, it is difficult to mention the names of all those individuals who have
contributed their effort. My deepest gratitude goes to my advisor Meseret Dame /Asst.
Prof./who has given me a guidance until the completion of the research paper.Finally, I
would like to offer my gratitude to Salale university, and all my instructors for their effort
to build my capacity throughout my stay in thecampus.
Presentation out line
► Introduction
 Background of the study
 Statement of problem
► Objective of the study
► Organization of the study
► Scope and limitation of the study
► Hypothesis
► Conceptual framework
► Research methodologies
► Recommendation
► References
Introduction
 Budget is one of the most widely used tools for planning and
controlling an organization's performance.
 The word budget is the formal an estimate of the likely
incomes and expenditures for a definite future period of a firm
(Paresh,
 Poor 2010)
performance is often to be found in the weak links
between policy making, planning and budgeting.
 Monitoring and evaluation are a very vital component of
project management and is an indispensable tool that is
significant in ensuring the primary objectives and goals of
projects are achieved (yemisrach).
Statement of problem
►In Ethiopia ethiotelecom is one of the grand organization
operating almost in all region of the country. They use to
control and collect their budget by traditional way which
affected the performance of organization some how specially
at local areas.
►This Poor performance is often to be found in the weak
links between policy making, planning and budgeting.

►So Monitoring and evaluation are a very vital for this

organization to ensure its primary objective and goals.
Research questions
 This study attempts to address the following questions on budget
implementation and control system in ethiotelecom at North
Shao Zone Fiche Town.

►Does the budget implement according to their plan?

►How the organization budget controlled and
monitored?
►Does the Planning and budget department have a
means to take corrective action on the weaknesses of
budget preparation and utilization?
Objective of the study
General objective
The main objective of the study is to assess budget
implementation and controlling practice of organization.

Specific objective

 To evaluate the procedures of budget preparation

 To identify the factors affecting budget utilization.
 To assess budget controlling and monitoring of the organization.
 To examine the corrective measure on the weakness of budget
utilization of the organization.
Scope and limitation of the study

 The study delimits to the ethiotelecom, budgetary

implementation and control system particularly in fiche
town.
 To conduct this research in extensive way there was many
challenges we have faced, among challenges budget and
political instability in our countries were majors that we
couldn’t collect data’s from primary sources to accomplish
our research.
Hypothesis

 an assumption that is made based on some evidence. This

is the initial point of any investigation that translates the
research questions into predictions. It includes components
like variables, population and the relation between the
variables.
 To conduct this research in extensive way there was many
challenges we have faced, among challenges budget and
political instability in our countries were majors that we
couldn’t collect data’s from primary sources to accomplish
our research.
Conceptual framework
Research methodologies
Research Design

Description of the study area

Population, sampling and sample size

Gathering Data from sources

Data analysis

Interpretation and validation

Applying result
Data analysis and interpretation
Measurement & evaluation Frequency %

Financial audit 6 20%

Department report 3 15%
Both auditing and reporting 21 65%
Others - -
Total 30 Budget Implementation and
100%
controlling Performance
Budget Preparation Pearson Correlation Sig. (2- .943** .000 30
tailed) N
Budget Utilization Pearson Correlation Sig. (2- .931** .000 30
tailed) N
Budget Monitoring Pearson Correlation Sig. (2- .961** .000 30
tailed) N
Budget Evaluation Pearson Correlation Sig. (2- .764** .000 30
tailed) N
Conclusion and recommendation
 The result of correlation coefficient shows that all determinate factors
predict on the study significantly and positively correlated with budget
implementation and controlling performance the result of analysis
shows that there was significant difference between the annual total
budget allowed by higher authorities to the organization and the budget
they used annually. The audit of the organization was very weak.
Therefore, they should audit the budget within few month in a year and
use the budget in a proper way and they should use recent technologies.
 Due to varies constraints we couldn’t conduct our investigation detail
we recommend the future researcher to investigate further on the issue
without any limitation we have faced during our investigation.
References
1. Allen, R., 2009. The challenge of reforming budgetary institutions in developing countries (No.
9-96). Washington, DC: International Monetary Fund.
2. Abebe, M., 2018. Assessment Of Budget Implementation And Control System: A Case Of Ethio
Telecom South West Addisababazone (Doctoral Dissertation, St. Mary's University).
3. Govindarajan, V. and Anthony, R.N., 1998. Management control systems. Irwin McGraw-Hill.
4. Cheratony,M.T. (2004). Effective planning and budget admiration. Journal of General
Management,21(1), 24-46.
5. Einwiller (2002).The challenges of budget management. Journal of organization Management,
15, 69-92.
6. Elizabeth W. (2010) The challenge of budget implementation in public institutions MBA thesis
university of Nairobi.
7. Ethiotelecom. (2018). Annual reports 2012-2016.
8. Ethiotelecom. (2016). Budget policy of ethio telecom.
9. George &Mallery. (2003). Examining instrument reliability, validity program effectiveness.
Journal of education research.vol.15
10. Gershon,K.(2012). Budgeting, Budgetary control and performance evaluation. CEMBA thesis
kwame Nkrumah University of Science and Technology.
11. Ketema Muluneh. (2015), Assessment of Budget Preparation and Utilization: Case of Addis
Ababa City Administration Health Bureau. M.A Thesis of Addis Ababa University published.
12. Malcolm, H. (2003).. A Review of Experience in Implementing Medium Term
13. Micheal , R.D. (2005). The Use of Executive Guidance in State Budget Preparation, Public
Budgeting & Finance.
THANK
YOU!