Budgetary Control Research Articles

Cost Reduction Techniques on Firm Performance of Selected Quoted Manufacturing Companies in Nigeria

The operational level managers are always faced in identifying the technique that would help in reducing this cost. Based on this challenges this study examines into the impact of cost reduction techniques on firm performance of selected quoted manufacturing companies in Nigeria. The study employed panel data that was sourced within 2018 to 2022, from the audited financial statement of ten consumer goods companies listed on the Nigeria Stock Exchange. The panel (static) regression analysis was employed to determine inference between the dependent variable and independent variable. The Eview 10 was employed. The findings reveals that administrative cost and Changes in material cost has negative significant effect on Net profit margin while Changes in turnover has positive significant effect on Net profit margin. It is therefore recommended that companies should focus on reducing administrative cost while still maintaining needful administrative functions like streamlining production process, outsourcing non-core functions and implementation of technology solutions. The companies should focus on cost reduction strategies, budget control, managing materials cots like supplier management and in the long-run boost turnover.

The Results of the Fiscal Control Activity in the Member States of the European Union in the field of VAT

The article presents an analysis of the influence that the results of the control activity obtained by the Member States had on the value-added tax. An important part of the work is dedicated to the activity of international fiscal control due to international cooperation resulting from cross-border economic activities. Analyzing the budgetary control activity carried out by the 28 member states of the European Union during 6 consecutive years, a series of similarities and differences can be noted both in terms of the implementation method and the results obtained. Among the financial obligations taxpayers owe, the proposed econometric analysis focuses on the value-added tax. Thus, to carry out the econometric analysis, we used the dependent variable: VAT related to fiscal revenues, and as an independent variable: additional VAT established, as a result of fiscal control, against the total of additional budgetary obligations resulting from fiscal control activity. The result indicates a statistically valid linear regression model, whereby a percentage increase in the value-added tax established by the tax control activity leads to a 0.14% increase in the total tax revenues collected.

Zero-Based Budgeting as a Tool of Budgetary Control in Panchayati Raj in India

Zero-based budgeting (ZBB) is a systematic approach to budgeting that starts from a "zero base," aiming to analyze the requirements and costs of each activity. The aim of this article is to explore the application of ZBB as an effective means of budgetary control within the Panchayati Raj institutions in India, with Nigeria serving as an example of its successful implementation. As the cornerstone of decentralized governance, Panchayati Raj plays an important role in implementing rural development programs while ensuring optimal use of resources. However, traditional methods of incremental budgeting often lead to inefficiency, misuse of funds, and lack of accountability. The study delves into the principles of ZBB and its ability to increase financial discipline, prioritize spending, and align budget allocations with development objectives in the rural governance framework. Nigeria's implementation of ZBB highlights its ability to eliminate redundant programs, reallocate resources to critical sectors, and enhance transparency through stakeholder involvement and technological integration. Despite these advantages, ZBB faces challenges such as high time investment, manpower turnover, lack of experienced personnel, administrative complexity, bureaucratic inertia, local political resistance, and resistance to change. While ZBB requires considerable effort in terms of training and stakeholder engagement, it can significantly improve financial management and service delivery in Panchayati Raj institutions. The study concludes by emphasizing the need for capacity building and institutional reforms to achieve sustainable and equitable development in India's villages and offers policy recommendations for integrating ZBB into rural governance systems.

Influence of Financial Literacy, Budgetary Control, and Strategic Planning on Business Success of Startups in Indonesia

This study investigates the influence of financial literacy, budgetary control, and strategic planning on the business success of startups in Indonesia. Using a quantitative approach, data were collected from 150 startup founders through structured questionnaires, and multiple regression analysis was employed to assess the relationships between the variables. The results reveal that financial literacy, budgetary control, and strategic planning all have positive and significant impacts on business success, with strategic planning being the strongest predictor. The findings emphasize the critical role of financial management and strategic foresight in enhancing the growth and sustainability of startups. Practical implications include the need for increased financial education and support for strategic planning within the entrepreneurial ecosystem. Limitations and directions for future research are discussed

Buy Now, Pay Later: Impact of Installment Payments on Customer Purchases

“Buy now, pay later” (BNPL) installment payments allow customers to pay for purchases in a series of interest-free installments over a short period of time. This research provides novel insights into how customer adoption of BNPL installment payments impacts spending. The authors leverage customer-level transaction data before and after the introduction of a BNPL installment payment service at a large U.S. retailer. A difference-in-differences analysis indicates that the adoption of BNPL installment payments is associated with (1) an increase in purchase incidence and (2) larger purchase amounts. These effects are statistically and economically significant over time. Moreover, this increase in spending is greater for smaller- (vs. larger-) basket shoppers and for shoppers who relied more heavily on credit (vs. debit) cards before adoption. Three preregistered experiments show that BNPL installment (vs. lump sum) payments increase spending by reducing perceived financial constraints. Specifically, BNPL installments alleviate perceived financial constraints by reducing perceived costs and facilitating budget control. These findings highlight the substantive role of BNPL installment payments in shaping purchase behavior and provide important implications for the management of BNPL payment schemes.

Optimizing Cost Efficiency through Cost Control in Construction Projects: A Review

This study explores various methodologies and factors influencing budget performance across different sectors, particularly in construction and public budgeting. Construction projects are inherently complex and prone to cost overruns, making cost control a critical aspect of project management. This study investigates the impact of cost control on cost efficiency in construction projects. A neural network model was utilized to identify key management factors affecting project budget performance, focusing on critical aspects such as project manager experience, team turnover, and budget updates. Several monitoring techniques for cost and performance deviations, including Activity-Based Ratios, were also analyzed, revealing their varying effectiveness. In the public sector, performance-based budgeting systems were discussed, with an emphasis on integrating planning and performance metrics for more informed decision-making. Challenges in implementing such systems were highlighted, particularly regarding political and organizational barriers. In construction, various approaches were examined, including cost estimation frameworks and performance-based budgeting tools. The research underlined the importance of accurate budgeting and cost control measures in both construction projects and public administration, suggesting that strategic adjustments, better forecasting, and active stakeholder participation could improve overall budget performance. This research paper presents a comparative analysis of various process-based cost control models utilized in construction projects. The objective is to evaluate each model’s effectiveness, advantages, and limitations to provide insights for project managers in selecting the most suitable approach for their specific project needs. Key Words: Cost Efficiency, Cost Control, Construction, Projects

Dampak Anggaran Biaya Operasional terhadap Profitabilitas Perusahaan

This study examines the impact of operational cost budgeting on company profitability in Indonesia through a literature review approach. Analysis of various studies over the past decade reveals a significant positive relationship between effective operational cost budget management and increased profitability. However, this relationship is complex and influenced by factors such as the optimal point of budget control, management information systems, and external conditions like the COVID-19 pandemic. Variations across industry sectors were also found, with the manufacturing sector showing the strongest correlation. This research identifies best practices in budgeting as well as implementation challenges in Indonesia. These findings provide important implications for financial management practices and open directions for further research in the context of Indonesia's dynamic business environment.

Integrated Financial Management System and Financial Control in Uganda: A Review of Issues and Concerns

Purpose: This study aimed to analyze the issues and concerns within the government’s policy on Integrated Financial Management System as a financial control in Uganda. Methodology: The study adopted a literature review approach in which the reviewers identified, assessed and studied obtainable literature from a variety of sources majorly on line and from the government libraries. Results: The review indicated that IFMS contributed to financial control in many ways, such as enhanced internal controls, improved budget execution and control as well as strengthened cash and debt management. However, a number of challenges emerged mid-way viz, resistance to change, inadequate user training, technological challenges and weak project management. To counter, the challenges there is need to strengthen change management strategies, enhance capacity building and training, improve technological infrastructure and integration, strengthen governance, and ensure strong political commitment and support. Unique contribution to theory, practice and policy: This review contributes to the understanding and further appraisal of the government policy on IFMS learning from its successes as a way of thwarting the emerging threats and failures. The review encourages for a deliberate investment in comprehensive training programs for users at all levels to ensure they understand FMIS functionalities and can utilize them effectively; regularly reporting on the IFMS performance and sharing lessons learned with key stakeholders so as to promote transparency, accountability, and continuous improvement; Developing a robust and resilient IT infrastructure and establishing robust data quality assurance processes to validate the accuracy and reliably of information entered into IFMS, ensuring decision making is based on reliable data.

Analysis of Budget Planning and Control for the Implementation of Sustainable Development Goals (SDGs): A Case Study at Yayasan Kebudayaan Rancage

This study analyzes budget planning and control in a non-profit organization focused on Sustainable Development Goals (SDGs). The main objective is understanding the budget implementation process supporting SDG objectives at Yayasan Kebudayaan Rancage (Rancage Cultural Foundation). Using a qualitative methodology with a single instrumental case study and action research methods, data was collected through observations, interviews, and documentation. Narrative and comparative analysis methods were employed to evaluate the actual field conditions. The study results indicate that the foundation needs a structured budget. Based on these findings, developing a strategic plan, work plan, and detailed budget is recommended. These recommendations aim to create a more systematic budgeting process, enhance awareness, and improve engagement with the SDGs.

Public Sector Financial Reforms and Performance of Government Entities in Nigeria

A few scholars have remarked that public agencies in Nigeria are typified by corrupt activities, as well as a slew of other issues. Surprisingly, despite the fact that all succeeding Nigerian politicians and bureaucrats also acknowledge that corruption is a barrier to national growth, the bulk of them assume office as doctors but exit as patients. As a result, Nigerian Government has introduced various economic reforms to boost the performance of government entities in the country. Therefore, this study examined the effects of public sector financial reforms on performance of government entities in Nigeria. Specifically, this study examined the effects of anti-graft reforms, information technology based reforms and financial planning reforms on performance of government entities in Nigeria, The study employed survey research design to collect data from 306 personnel across 188 Ministries, Departments and Agencies (MDA) in Nigeria. Ordered logistic regression and ordinary least square (OLS) regression were employed for data analysis. The study found that anti-graft reforms (Anti-Graft agencies), information technology based reforms (IPPIS and GIFMIS), and financial planning reforms (Budgetary control) significantly enhanced the financial performance of government entities in Nigeria. Likewise, the study revealed that anti- graft reforms (Anti-Graft agencies), information technology based reforms (IPPIS), financial planning reforms (Budgetary procedure) and financial reporting reforms (IPSAS) had significant positive effects on non- financial performance of government entities in Nigeria. Overall results revealed that anti-graft reforms (Anti-Graft agencies, anti-graft legal framework), information technology based reforms (IPPIS and GIFMIS), and financial planning reforms (Budgetary procedure) significantly boosted the financial performance of government entities in Nigeria. The study concluded that public sector financial reforms boosted the performance of government entities in Nigeria, and recommended that the Nigerian government strengthen the agencies implementing public sector financial reforms to boost the performance of government entities better.

A New Probe into the Financial Management Reform of Listed Companies under the Background of Integration of Industry and Finance

Under the blessing of the development of modern information technology, the integration of industry and finance has become the mainstream development trend of enterprise financial management. The internal financial management mode of the enterprise also needs continuous reform and innovation. Based on this, the paper studies the reform and innovation of financial management model under the background of industry-finance integration. This paper discusses the specific role of financial management innovation in maintaining capital safety and promoting the steady development of enterprises under the background of financial integration, and analyzes the three principles of process, integrity and risk control that financial management innovation should follow under the background of financial integration. Finally, the article combines the financial management reform under the integration of industry and finance with the practical and difficult problems in budget management control and data analysis, and puts forward specific countermeasures to effectively prevent financial risks, innovate budget management and establish information system under the guidance of the concept of integration of industry and finance.

Crime in the Architecture, Engineering and Construction (AEC) Industry—The Role of Subcontractors

This article examines the challenges posed by criminal subcontractors in the construction industry. It aims to delineate the specific crimes committed by these subcontractors and assess their impact against the broader backdrop of industry-related criminality. Employing a scoping literature review, the study explores the existing research, summarizes key findings, and highlights gaps in the current knowledge. The construction industry’s inherent complexities and reliance on extensive subcontracting create an environment ripe for criminal activities. The research questions addressed are the following: (1) What crimes are carried out by subcontractors? (2) What are the consequences of crimes carried out by subcontractors? This study identifies several major concerns: (1) adverse impacts on project management in terms of timelines, quality, and budgetary control; (2) widespread exploitation within supply chains, ranging from wage disparities to modern slavery; (3) prevalent fraudulent practices, such as bribery, collusion, and embezzlement; and (4) the detrimental effect on Health, Environment, and Safety (HES) standards. The article underscores the diversity of legal frameworks across jurisdictions and signals the need for concerted efforts to enhance crime prevention measures, foster industry-wide collaboration, and establish robust control systems. There is an urgent need for a profound understanding of the contractor–subcontractor dynamic and procurement of substandard materials. The findings suggest that the construction industry faces formidable challenges due to criminal elements, profoundly affecting project efficiency, legal compliance, and worker welfare.

The importance of financial controls for maximizing results for small rural entrepreneurs

Brazil's agricultural sector is crucial for the economy and global food security, encompassing about 41% of the country's total land area and housing over 5 million agricultural establishments. According to the Brazilian Confederation of Agriculture and Livestock (CNA), agribusiness contributed 23.8% to the Gross Domestic Product (GDP) in 2023, highlighting its diverse production of agricultural commodities. While technological advancements have boosted productivity, a significant gap exists between large and small producers. Large producers often benefit from technological progress, whereas small producers—a significant portion of family farming—face substantial challenges. Family farming accounts for 67% of agricultural activity and 80% of global food production, yet it struggles with financial management, lack of knowledge, and limited access to credit and technology. Efficient rural management is essential for optimizing resources, reducing costs, and enhancing productivity on small farms. Implementing financial management practices, such as budgeting, cost analysis, and cash flow control, can help small producers make better use of their resources and lower expenses. Public policies like the National Program for the Strengthening of Family Farming (PRONAF) and the Food Acquisition Program (PAA) aim to support these producers by providing financing and securing markets for their products. Family farming holds significant potential for sustainable practices. With the right support, it can continue to play a vital role in the Brazilian economy and global food security, fostering a sustainable and prosperous future for the agricultural sector.

Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs

The study delves into the challenges and opportunities SMEs face in South-West Nigeria, focusing on the transformative impacts of digitalization, big data analytics, customer experience enhancement, and stringent budgeting controls on their financial performance. The research analyzes data from 825 SMEs through Partial Least Squares Structural Equation Modelling (PLS-SEM) analyze the data. The findings indicate that digital transformation significantly boosts customer experience, big data analytics, and budgetary controls. Enhanced customer experience and effective big data utilization reciprocally improve budgetary control processes, which are crucial for financial performance. The study reveals the mediating roles of customer experience and big data analytics in the relationship between digital transformation and budgeting control, highlighting the interconnectedness of these factors. Financial efficiency also emerges as a significant moderator in the nexus between budgetary control and financial performance, underscoring its influence on economic outcomes. This research proposed initiatives such as investments in customer relationship management systems, personalized services, and streamlined communication channels to create positive customer experiences that, in turn, positively influence budgeting outcomes.

Systematic Review of the Effect of Financial Management Practices on Service Delivery in Secondary Schools

In this systematic review analysis design, we explore the available peer-reviewed literature on the effect of financial management practices on service delivery in African secondary schools. Specifically, we reviewed the effect of budgeting, auditing and financial internal control on the service delivery in secondary schools. Study findings reveal that budgeting ensures effective implementation of education programs. In addition, the activities in the secondary school system are adequately planned and allocate resources apportioned to ensure effective execution and implementation. Besides, audits of school accounts result in good financial management and effective control mechanism that ensures overall operational efficiency. From the results of this review, we hereby suggest that Head teachers need to manage financial resources more responsively for effective performance and fulfilling of institutional needs, those of the teachers, students and other stakeholders of respective secondary schools. It is very crucial for school administrators and support staff in charge of finances and resource mobilization to regularly attend professional development course in order to acquire relevant financial skills and competencies required for effective management of resources in the school so as to tremendously improve on the quality of secondary schools’ service delivery.

The impact of audit on IT governance: A study of the financial services sector in Ghana

AbstractIn recent years, IT governance has been a subject of discussion among academics and practitioners. The concern has been on the need to implement governance mechanisms and ensure the right balance of these mechanisms. However, the audit of IT governance mechanisms has received very little attention. This paper aims to analyse the overall impact of IT governance audits on the maturity and coherence of governance mechanisms. Guided by the configurational theory, the researchers argue that when governance mechanisms operate coherently and are regularly audited, there will be improvement in IT governance and the performance of financial institutions. In this study, seven financial services companies in Ghana were reviewed, and their IT governance maturity was assessed after seven months of auditing with a COBIT 5‐driven IT audit framework. Two surveys were conducted, one before and one after the auditing. The findings of the study confirm the claim that regular auditing improves IT governance maturity and coherence. Several governance mechanisms within the case organizations improved to one higher level of maturity on the Capability Maturity Model. This improvement was after seven months of auditing. Regular auditing also improved IT roles and responsibilities, empowered IT personnel and improved the IT budgetary control and architecture of the entities. This study has implications for practice. It emphasizes the importance of independent regular IT auditing and the need to ensure coherence among IT governance mechanisms if effective IT governance is to be achieved in financial institutions.

Management Mechanisms of Rehabilitation Hospitals in Bulgaria. Short Communication

In a market economy and financial crisis, the head of any medical institution has to make adequate decisions regarding the cost-effective functioning of the hospital. Along with reducing costs, the main task is to maintain a high level of medical care. In this paper, the economic efficiency of medical activities in three specialized hospitals for rehabilitation (previously called sanatoriums) in the cities of Hisar, Varna and Bankia in Bulgaria was studied. The competitiveness of the presented rehabilitation institutions lies in their ability to design, produce and offer rehabilitation services that are more attractive to patients in terms of price and quality characteristics and more fully meet their needs compared to the rehabilitation services of competitors. Based on the analysis, it was found that in rehabilitation hospitals, through long-term obligations, the purchase of short-term assets necessary for the implementation of activities is financed, and operating income is invested in long-term assets. This fact determines the increase in liabilities to the company by further minimizing free cash flows, which involve financing current activities, but are invested in non-current assets. At the same time, rehabilitation hospitals — budgetary organizations strictly comply with capital expenditures, which must be specified in the appropriate paragraph, with an approved budget according to the appropriate indicator, which proves strict compliance with budgetary discipline and control over the flow of funds.

Evaluation of SIMRAL with CIPP Model on the Performance of State Civil Apparatus (ASN)

SIMRAL is used to manage APBD (Regional Government Budget), planning, budgeting, implementation, reporting, accountability, and audit supervision. Therefore, its series is long and unbroken. This study evaluates SIMRAL's effect on the performance of civil servants in the PUPR (Public Works and Spatial Planning) office of Bogor City to achieve performance at the individual, unit, or organisational level. The objective of this study is to evaluate the effectiveness of SIMRAL usage and the performance of civil servants in the PUPR office of Bogor City. The research method used is a mixed-method approach, with an evaluative program/policy approach using the CIPP model. This method focuses on evaluating four main components: (1) SIMRAL usage policy and objectives, (2) human resource quality, (3) SIMRAL application process, and (4) the output and outcome of SIMRAL usage. The output of this research is a policy recommendation on using SIMRAL, considering the mayor's regulations, work effectiveness-efficiency, human resource performance competency, service quality, budget control, and proper decision-making. SIMRAL also continuously enhances work motivation and quality.

The Influence of Budget Planning on Financial Expenditure: Evidence from Tier One Commercial Banks in Nairobi County, Kenya

This study examines the influence of budget planning on financial expenditure among tier one commercial banks in Nairobi County, Kenya. The research was grounded in Agency Theory. Using a descriptive survey design, data was collected from 112 respondents across six tier one banks. The study employed correlation and regression analyses to investigate the relationship between budget planning practices and financial expenditure. Results indicate a strong positive correlation between budget planning and financial expenditure (r=0.684, p<0.01). Regression analysis revealed that budget planning significantly influences financial expenditure (β=0.327, p<0.05), explaining 32.1% of the variance. The findings suggest that effective budget planning practices lead to improved control over financial expenditure in tier one commercial banks. This study contributes to the understanding of budgetary control practices in the Kenyan banking sector and provides practical implications for bank management.

EFFECTS OF BUDGET IMPLEMENTATION ON GOAL ACHIEVEMENT OF STATE OWNED TERTIARY INSTITUTIONS IN EBONYI STATE, NIGERIA

The evaluation of budget implementation on goal achievement in Ebonyi State of Nigeria prompted the specific objectives of the research work to include: budgetary control mechanism, late approval of budget, budget variance information and late release of approved budgeted funds. Survey research design was adopted and data were collected using close-ended questionnaire. The questionnaire was structured on a 5-point Likert scale statistical rating method. The total population of the study was 259 while the sample size was 157. Collected data were presented on frequency distribution tables, simple percentages and multiple regression analysis. The data were analyzed using Statistical Packages for Social Sciences, version 20, 2023. The study adopted Stakeholders Approach Theory by Edward (1984). The study unveiled that budgetary control mechanism and budget variance information had positive and significant effects while late approval of budget and late release of approved budgeted funds had negative and no significant effects on goal achievement of state owned tertiary institutions in Ebonyi State, Nigeria. The implications of the study were that budgetary control mechanism and budget variance information do not hinder budget implementation on goal achievement. Late approval of budget and late release of approved budgeted funds hinder budget goal achievement, encourage abandonment of projects and non-quality project perfection. Analysis of budget variance aids management of state institutions to adjust budget proposal in respect to deficit budget and, idle resources from surplus budget on any item(s) of budget are reinvested in achieving other goal congruence of the institutions. The study concluded that early approval of budget and timely release of approved budgeted funds facilitate budget implementation and aid in goal achievement of budget proposals of the institutions. The research therefore recommended that the management of the state institutions’ budget committee and other budget stakeholders should be familiar with the processes of budgeting and budget operation to facilitate planning and preparation of financial year budget void of errors and omissions for enablement of early approval of budget and timely release of approved budgeted funds among other measures capable of harnessing budgeting values in the State.