BUDGETARY CONTROL AND MANAGEMENT FINANCIAL PERFORMANCE

ABSTRACT

The research work examined the relationship between budgetary control and management financial performance. The research work was carried in access bank Head quarter, Victoria Island, Lagos, Nigeria. Descriptive and inferential statistics have been used to analyze the research data through formulated research questionnaires. To get the sample size of 50 respondents across the target population (financial communication department, account department, audit department, and selected departmental heads), the study employed a convenience judgmental sampling approach and a stratified sampling method. Respondents from the top and intermediate management levels made up the majority of respondents. The questionnaire data was analyzed using Microsoft excel to obtain the frequencies, percentages, and descriptive analysis. The Cronbach’s Alpha was used to test for the validity and reliability of the data using SPSS. Simple percentage method of data analysis was used to analyze the respondent’s data while the hypothesis was tested using analysis of variance (ANOVA) statistical technique. From the examination of research work, relatively to the objective of the study, the result shows a positive impact of budgetary process on management financial performance, positive effect of accountability on management financial performance and a positive effect of budgetary control on the support of top management staff. It was found that the top management in Access bank headquarters is aware of the importance of budgetary control practices and it supports them. Considering all related findings to the objective of the study, all departments and stakeholders should be actively involved in the budgetary formulation exercise and the budgetary controls should not be top-down in nature, instead the top management should make efforts to elicit feedback from subordinates at different levels in developing the organizational budget and also there is need to widen and extend the scope of accountability following the budget implementation process i.e., the performance report as well as explaining causes of budget deviations.