Budget Goals Research Articles

An advanced tool for dynamic risk modeling and analysis in projects management

Risk is inherently present in all projects. Quite often, many projects fail to achieve their time, quality, and budget goals. Despite its high relevance to the success of megaprojects, risk management remains one of the least developed research issues. Therefore, advanced risk assessment is essential in minimizing losses and enhancing profitability. This paper proposes an advanced decision support tool using Fuzzy Cognitive Maps (FCMs) for dynamic risk assessment in project management. The proposed tool is able to predict the impact of each risk on the other risks or the outcomes of projects by considering uncertainties and complex interdependencies among risk factors. This tool could help project managers to manage the risks in a more effective and precise way and offer better risk mitigation solutions. The proposed tool could be undertaken by all organizations with the highest level of risk management maturity in the largest and most complex projects. In addition, it can be applied as an advanced decision support tool in variety of problems such as prioritization, failure analysis, etc. An academic numerical example related to outsourcing illustrates the applicability and simplicity of the proposed method.

Numbers You Can Trust? The Fiscal Accountability of Canada's Senior Governments, 2017

Canadians entrust their governments with major responsibilities, and pay taxes and underwrite borrowing to fund them. Financial reports are a vital tool for understanding governments’ financial plans and activities. Over the past 15 years, federal, provincial and territorial governments have done much to improve the transparency of their reports, and most of them have come closer to delivering on their budget promises. Yet too many continue to present opaque numbers, fail to satisfy their legislative auditors, take too long to present budgets or report, and spend far more than they budgeted. This latest edition of the C.D. Howe Institute’s annual report on the fiscal accountability of Canada’s senior governments assesses the quality of their financial information, and their success or failure in achieving their budgetary goals over the past 15 years. In looking at the quality of governments’ financial reporting, it asks whether an intelligent and motivated non-expert – a citizen, taxpayer or legislator – can get valid, timely and readily understood figures for total revenue and spending in the budget each government presents at the beginning of the year, and in the financial statements released with its public accounts at the end of the year. Alberta and New Brunswick earn the top scores for the quality and timeliness of their budgets and public accounts, with the federal government and British Columbia also doing well. Newfoundland and Labrador and Nova Scotia, though not in the top tier, have improved markedly. Quebec and Prince Edward Island do relatively poorly among the provinces, and Northwest Territories and Nunavut also present figures that our idealized reader would struggle to find and interpret. On the question of accuracy in hitting budget targets, the overall record is one of significant overshoots of both spending and revenue. On average, over all governments and all 15 years, governments spent 2.3 percent more than budgeted, which cumulates to a remarkable $69 billion. The Prairie provinces and the territories recorded the worst overruns; Ontario and Quebec did much better. Over the same period, revenues also overshot projections by 2.3 percent annually, cumulating to $95 billion more than budgeted. Although the overshoots tended to get smaller over the 15 years, a suspicious pattern of in-year spending “surprises” coinciding with in-year revenue “surprises” suggests less than prudent management of public funds. Legislators and Canadians generally should push senior governments to produce timelier, more transparent and reliable financial information, and should use that information to hold governments to account – at budget time, and throughout the fiscal year.

The effect of budget goal clarity, organizational commitment, accounting control, and adherence to laws on the perception of government performance of Central Lombok Regency

This research was conducted to examine the effect of budget goal clarity, organization-al commitment, accounting control and adherence to laws on the perceptions of gov-ernment performance. The respondents consists of the structural positions in a region-al government such as the chair person of a body, an agency, a division, a subdivision, and the team of government performance report of Central Lombok Regency. It used a purposive sampling method to get the respondents. They were asked to respond a set of questions in a questionnaire. Of the 90 questionnaires distributed, only 78 question-naires were valid for analysis. The data were analyzed using multi-linear regression method with SPSS 18.0. The results show that budget goal clarity and organizational commitment have an effect on the perception of government performance. The ac-counting control and adherence to laws have no effect on the perceptions of govern-ment performance. It implies that is important to have observation of planning and budget execution as well as the local government commitment to make the financial transaction control and adherence of laws run effectively. The local government shall obey the existing laws in order to integrate the strategic plan system, governance accounting system, budgeting system and exchequer system into an integrated system by improving human resource and information technology.

SASARAN DAN EVALUASI ANGGARAN: KETIDAKPASTIAN LINGKUNGAN DAN PENGALAMAN MANAJER SEBAGAI VARIABEL KONTINJENSI

Most of budgets studies have focused on budget participation. It was argument that level of participation in budgeting process is most important part of budgeting procedure. The activity could predict and reduce future uncertainty. The others components of budgeting like budget goal and budget evaluation lacked attention. This study aims to investigate the impact of budget goal difficulty and budget evaluation style on managerial performance and job satisfaction with contingency approach. Level of difficulty would arise when environment uncertainty exist. It should need different style of budget evaluation. But, experience managers seem could anticipate it. Results support hypothesis that budget goal difficulty and budget evaluation style were contingent with manager experience and environment uncertainty

Evidences from China: Impacts of Information Asymmetry, Budgetary Participation, Emphasis, Procedural Justice, Interactive Justice, Clarity and Difficulty of Budgetary Goals on Subordinate Manager Propensity of Creating Budgetary Slack

Subordinate managers’ propensities of creating budgetary slack (PCBS) will induce the dysfunction of budget system. This paper analyzes the inducements of PCBS, including information asymmetry, budgetary participation, budgetary emphasis, procedural justice, interactive justice, clarity and difficulty of budgetary goal, and tries to find out their ways affecting PCBS. On the basis of the researches of Dunk, Onsi, Kren, Kenis, Van der Stede, and Moorman and Kenis, we designed a 6-point 33-item Likert scale and formulated eight research variables and a control variable. We have investigated data of 28 Chinese enterprises and gotten 269 valid samples. Our empirical evidences suggest PCBS is positively affected by information asymmetry and budgetary emphasis, and has been negatively affected by budgetary participation from single factor, and given high (low) level of participation, high (low) subordinate-superior information asymmetry and high (low) emphasis on budget standards, PCBS is high (low). These conclusions support the theoretic hypothesis of Dunk’s and strengthen the notes of Dunk and Perera. However, our results are different from the empirical result of Dunk and Chong et al. (2003). It is found that interactive justice is negatively related to PCBS, and difficulty of budgetary goal is positively related to PCBS.

PENGARUH PARTISIPASI ANGGARAN TERHADAP KINERJA MANAJERIAL DENGAN PERSEPSI KEADILAN ANGGARAN DAN KOMITMEN TUJUAN ANGGARAN SEBAGAI VARIABEL INTERVENING (Studi Kasus pada Universitas Diponegoro)

This study aims to examine the influence of budget participation to managerial performance. It also to examine whether perception of distribution budgetary fairness, perception of procedural budgetary fairness and goal commitment mediate the relationship of budget participation and managerial performance.This study used questionnaires and interview to collecting data. From 189 questionnaires were given to managers in Diponegoro University. The questionnaires that complete the answers were 72 questionnaires. Path analysis was utilized to examine the direct and indirect effects of budget participatio to managerial performance. The results of this study showed that budget participation has a direct effect to managerial performance. Budget participation also has a positive effect to perception of distribution budgetary fairness, perception of procedural budgetary fairness and goal commitment. But budget participation didn’t has indirect effect to managerial performance with perception of distribution budgetary fairness, perception of procedural budgetary fairness and goal commitment as intervening variables

User satisfaction and system success: an empirical exploration of user involvement in software development

For over four decades user involvement has been considered intuitively to lead to user satisfaction, which plays a pivotal role in successful outcome of a software project. The objective of this paper is to explore the notion of user satisfaction within the context of the user involvement and system success relationship. We have conducted a longitudinal case study of a software development project and collected qualitative data by means of interviews, observations and document analysis over a period of 3 years. The analysis of our case study data revealed that user satisfaction significantly contributes to the system success even when schedule and budget goals are not met. The case study data analysis also presented additional factors that contribute to the evolution of user satisfaction throughout the project. Users' satisfaction with their involvement and the resulting system are mutually constituted while the level of user satisfaction evolves throughout the stages of software development process. Effective management strategies and user representation are essential elements of maintaining an acceptable level of user satisfaction throughout software development process.

The latest trend in Australian port privatisation: Drivers, processes and impacts

This paper presents the latest trend in Australian port privatisation, long-term leasehold sale, and discusses its impact on port governance structure and port management. Since 2010, Australia has been exercising port privatisation at major capital city ports, driven by the government's policy of recycling capital for funding other infrastructure projects and the budgetary goal of reducing State Governments' debts. Except for land, the State Government transfers major port assets and the port corporation to a state-owned holding company and then sells it to a private winning bidder. Of notice is that the privatisation involves private equity ownership and foreign ownership of Australian ports. Consequently, the governance structure at the privatised ports is a private/public model, with the private port company being the port authority and landlord managing the port. The regulatory function following the privatisation is the public sector's responsibility while operator functions are undertaken by stevedores. Although the Australian port privatisation has positive effects on State Governments' balance sheets in the short term, it may result in a risk of undervaluing port assets, increased port charges, impeded port competition, less port investment, and less concern for the public interest in the long term. In terms of these findings, this paper provides some thoughts for further port privatisation in Australia.

Keadilan Prosedural dalam Hubungan Antara Budgetary Goal Characteristic dan Kinerja Manajerial Pejabat Pemerintah

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Efecto del locus de control en la relación entre participación presupuestaria y rendimiento: un estudio experimental

More and more organizations involve their staff in budget processes under the premise that more participation will enhance the achievement of budgetary goals. However, budgetary participation does not always lead to improvements of an individual's performance, since the personality characteristics make individuals react differently to similar budgetary positions. In this study, the role of the locus of control in the relationship between participation and performance is analyzed, by means of an experiment involving 115 undergraduates. The results confirm that the locus of control is a personality trait that influences the effects of budgetary participation on the efficiency of individuals. Our results also show that an individual with external locus of control is less productive than an individual with internal locus of control in participatory environments, but they do not reach different results depending on the environment. In addition, our results show that only for low levels of locus of control (internal) increased participation results in higher performance.

PUBLIC DEBT ANALYSIS BASED ON SUSTAINABILITY INDICATORS

This article is an analysis of public debt, in terms of sustainability and vulnerability indicators, under a functioning market economy. The problems encountered regarding the high level of public debt or the potential risks of budgetary pressure converge to the idea that sustainability of public finances should be a major challenge for public policy.Thus, the policy adequate to address public finance sustainability must have as its starting point the overall strategy of the European Union, as well as the economic development of Member States, focusing on the most important performance components, namely, reducing public debt levels, increasing productivity and employment and, last but not the least, reforming social security systems. In order to achieve sustainable levels of public debt, the European Union Member States are required to establish and accomplish medium term strategic budgetary goals to ensure a downward trend in public debt.

FAKTOR-FAKTOR YANG MEMPENGARUHI KINERJA MANAJERIAL SATUAN KERJA PERANGKAT DAERAH (SKPD) PEMERINTAH KOTA MAGELANG

The purpose of this study was to test empirically and analyzes the factors that influence the performance of managerial work units (SKPD) Magelang city government. These factors include participation in budgeting, budget goal clarity and decentralized structure.
 Management accountable local government, can not be separated from local government budgets. In preparing the budget, the government has implemented the participation of each unit of work in preparing the budget. The key to effective performance is the participation of subordinate plays an important role in achieving these objectives. Budget goal clarity illustrate the scope of the budget stated clearly and specifically, and understood by those responsible for their achievement. The existence of a clear budget targets will allow employees to draw up budgetary targets. Budget goal clarity will help employees to achieve the expected performance, which by knowing the budget target performance levels can be achieved. The more decentralized structure of government organizations in the region, the higher the head SKPD performance in running the financial management area. This led to research in the field of local government budgets, to be relevant and important. The study population was 26 Unit (SKPD) in the city of Magelang with a total sample of 75 people consisting of employees of accounting and budgeting. Data was collected by questionnaire and analyzed using multiple regression analysis. The result is that participation in budgeting, budget goal clarity and structure of decentralization affect the improvement of managerial performance SKPD either partially or simultaneously.
 
 Keyword: participation in budgeting, budget goal clarity, decentralized structure, managerial performance

NASA sets ambitious budget goals for Space Launch System

NASA sets ambitious budget goals for Space Launch System

The Project Manager, Systems Engineer and the Conflict over Project Resources

AbstractProject teams are expected to meet scope, time and budget goals simultaneously. It has been observed that many projects conducted nowadays are not able to successfully meet all three objectives at project's completion. Looking deep into project dynamics shows us that there is a built‐in conflict originating from the need to meet scope requirements with limited time and money resources. This conflict appears to weaken the ability of project teams to meet all objectives successfully because it impairs cooperation among team members.In the paper we share some observations and suggest some tools that might help the project team to enhance cooperation, overcome the conflict and improve overall project performance. First we note that many projects have reserves of scope, schedule and budget. In part of these projects the reserves span the whole project plans. This is typical to projects for which planning is done in a conservative manner prior to taking a commitment. In other instances the reserves are found only in part of project plans while the other parts are under‐estimated. This is a reflection of the uncertainty typical for most projects as of project kick‐off and on till uncertainty is mitigated. Second we suggest some techniques to use these reserves in a way that helps the team to meet its objectives. We propose to establish and use a requirements buffer, in an analogous manner to the already established time buffer suggested in the Theory of Constraints. Then we propose a methodology to manage resource buffers in a manner that overcomes the shortcomings of current buffer management methodology. In order to further improve collaboration between project team members we suggest abandoning some common practices in the interface between the project manager and the systems engineer, practices that do not contribute and sometimes even interfere with the ability of the team to meet project objectives.

An analysis of budgetary goals impacting organizational performance

This study proposes a conceptual review of how budgetary goals impact organizational performance. The aim of this study is to get a better understanding of the direct and indirect relationship between the organization’s decision -making process and operational performances. Setting the budget particularly influences subordinates’ budget goal levels and motivations (i.e., budget goal acceptance and budget goal commitment), which ultimately enhances the organization’s performance. To test these relationships, data were collected using the three perspectives approach: budgetary goal, budgetary participation and budgetary evaluation. The study provided evidence that perception of fairness mediates the relation between the levels of budget participation and goal commitment, whereas goal commitment mediates the relation between fairness perceptions and performance. At the end of the article, there are some implications for SMEs industries and some suggestions for future studies.

An analysis of budgetary goals impacting organizational performance

An analysis of budgetary goals impacting organizational performance

An investigation of Budget-Related Antecedents of Job Performance

This study aims to investigate budget related antecedents of job performance of managers. For this purpose, the effect of budgetary participation, budget goal commitment and information sharing on job performance of managers were examined. The sample consists of 104 managers who are responsible from the budgets of their units in different private enterprises. Most of these enterprises are operating in automotive sector and located in Marmara Region of Turkey. Survey data was analyzed with confirmatory factor analyses and Structural Equation Modeling. Results indicate that budgetary participation has statistically significant and positive impact on job performance. It also positively affects budget goal commitment and information sharing. Budget goal commitment and information sharing have significant and positive impact on job performance. In addition, budget goal commitment positively affects information sharing of managers. Analyses also revealed that budget goal commitment and information sharing have partial mediation effect on the relationship between budgetary participation and job performance.

Controlling the Public Purse: The Fiscal Accountability of Canada's Senior Governments, 2016

With governments playing such massive roles in Canada’s economy and Canadians’ lives, we need transparency and accountability in fiscal policy as much as we need it anywhere. Over the past 15 years, Canadian governments have done much to improve their reporting, and stewardship, of public money. Yet major gaps remain, and the astonishing amounts by which revenue and spending have exceeded the amounts approved by legislators at budget time over the period show that failures of accountability have major real-world consequences. This latest edition of the C.D. Howe Institute’s annual report on the fiscal accountability of Canada’s federal, provincial and territorial governments assesses the quality of financial information these governments present, and looks at their success or failure in achieving their budgetary goals over the past 15 years. It measures the quality of financial reporting by a number of criteria. The key question is whether an intelligent and motivated non-expert – a citizen, taxpayer or legislator – could find valid consolidated numbers for revenue and spending in the budget each government presents at the beginning of the year, and in the financial statements released with its public accounts at the end of the year. The top presentation marks go to Alberta and Saskatchewan, with Ontario not far behind. British Columbia and New Brunswick also earn high marks for consistent and clear presentations, but auditor reservations push them out of the top tier. The federal government provides reliable numbers, but its budgets do not display them prominently, and the spending estimates members of parliament review are on an incompatible basis of accounting. As for success or failure in hitting budget targets, the dominant theme of the 15-year period is major overshoots of both spending and revenue. Cumulatively, Canada’s federal, provincial and territorial governments spent some $69 billion more than projected, with the Prairie provinces and the territories showing the biggest over-runs relative to the size of their budgets. Over the same period, revenues overshot budget projections by an even larger amount: $118 billion. More encouragingly, comparing the overshoots over the period shows some improvements: smaller misses generally, and less tendency for in-year revenue “surprises” to be accompanied by in-year spending “surprises.” Legislators and Canadians generally should insist on better financial information from governments, and use that information to hold governments to a higher standard when it comes to hitting their budget targets. Canada’s senior governments can improve their financial reporting and their adherence to targets, and legislators and voters should hold them accountable for doing so.

KEJELASAN SASARAN ANGGARAN DAN SISTIM PENGENDALIAN AKUNTANSI TERHADAP KINERJA MANAJERIAL DENGAN MOTIVASI SEBAGAI VARIABEL MODERATING

The aims of the research are to investigate and analyze 1) the effect of the clarity budget goal on the managerial performance of local government, 2) the effect of accounting control system on the managerial performance of local government, 3) the simultaneous effect of the clarity of budget goal, accounting control system, and work motivation on managerial performance, 4) the effect of motivation as the moderating variable that makes the correlation between the clarity of budget goal and accounting control system strong on the managerial performance of local government. The population of the research were the officials who were budget providers and users and responsible for accounting control system. The sample consisted of 102 people and the data were analyzed using moderating regression analysis. The results of the research indicate that 1) the clarity of budget goal has effect on the managerial performance of local government, 2) accounting control system has affect on the managerial performance of local government, 3) the clarity of budget goal, accounting control system, and work motivation simultaneously have affect on the managerial performance of local government, 4) work motivation can become moderating variable affecting the clarity of budget goal on the managerial performance of local government. Work motivation can not become effect moderating variable of accounting control system on the managerial performance of local government (an empirical study at SKPD of Merauke Regency).

An investigation of the effect of accounting controls, budget goal clarity, mental model implementation on accountability of government performance

The research examines the effect of budget goal clarity and accounting control on depen-dent variable with Mental Model as mediating variable on accountability of city gov-ernment performance. This research used sample consisting of 66 employees in The Finance Division of City Government Semarang that were managing income and ex-penditure of state budget (APBD), selected by means of judgment sampling. The hypo-thesis testing was done by using Warp Partial Least Square 3.0. The partial result of the research indicated, the budget goal clarity, accounting control are factor that affect posi-tively on Accountability of City Government Performance. Simultaneously, it indicated Mental model didnt mediate the relationship between budget goal clarity and account-ing control toward accountability of city government performance. Yet, budget goal clarity and accounting control as partial impact to Mental Model. The positive result in budget goal clarity gives the impact for city of government to apply budget stated clearly and specifically. Accounting Control system should be used to facilitate the planning and supervision of the organization. Mental model of the operational officers do not reflect operational processes in various environments. This is due to the fact that most of the budget has been set with the existing systems that is standardized by LAKIP, so it can-not be flexible adjustment in various environments.