Assessment of Budget Utilization and Allocation Practice: In Jimma University, Ethiopia

Abstract

Proper budget utilization is a priority for any organization. The deviations between actual and planned that hamper proper budget utilization could be contributing directly or indirectly to the service delivery. Allocating more money by itself does not necessarily produce results, it is crucial to ensure that resources throughout the system are used more efficiently. The purpose of this study is to assess the practice of budget allocation and utilization, identify major challenges and factors affecting proper budget utilization in Jimma University. The researcher used descriptive and explanatory types of research design and both primary and secondary data collection technique. Primary data were collected from finance employees and officers, planning office experts and internal auditors, deans, directors and administrator by open ended and closed ended questionnaires. Secondary data was collected from the IBEX database of Jimma University for the past five years (2007-2011 E.C) .The target population of this study were 80 employees of Jimma University. The researcher used census sampling technique because census is a process of collecting data by distributing questionnaire to all population in the study area. The collected data was analyzed using SPSS version (23). In addition, descriptive and inferential statistical tools such as mean, percentage, frequency, normality test, correlation and multiple regressions were used to analyze the collected data from questionnaires. This study result indicated that lack of adequate data, lack of transparency, lack of clear criteria, lack of accountability, frequency of requested additional budget, strict procurement procedure, strict finance procedure, employee turnover, planning gaps, lack of adequate training for staff are challenges to allocate and utilize budget very well. On the other hand decentralization of finance office, automation and monitoring & evaluation system are the strength of Jimma University with respect to budget utilization. Therefore, Budget prepared and allocated must be utilized on time effectively and efficiently for the right purpose by following financial calendar of the University.