The effect of budgetary control process in Nyeri County Saccos
Budgetary control systems are universal and have been considered an essential tool for financial planning. The purpose of budgetary control is to provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. Due to the mandate charged to it on observing budgetary issues in cooperative societies, challenges facing budgetary control would be well identified by focusing on this organization. The objective of this study was to examine the effect of budgetary control process in Saccos with specific reference to SACCOs in Nyeri County. Descriptive research design was chosen because it enables the researcher to generalize the findings to a larger population. The population of this study was the 120 finance officers of SACCOs in Nyeri according to ministry of cooperative development and marketing 2011. From each stratum the study selected 30% of stratum population using simple random sampling method. Primary data is information gathered directly from respondents and for this study the researcher used questionnaires. The study concludes that finance and administration departments participated in budgetary control processes. Budgetary control processes are not intimately linked with considerations of labor controls. Participation of all the stakeholders makes the budgetary process too lengthy and time consuming. There is no coordination of the Sacco's strategies and budget in a single, integrated process, characterized by continuous feedback. The study recommends the SACCO to involve all departments in preparation and control of budget. Budgetary controls should be linked with considerations of labor controls. SACCOs need to employ sophisticated corporate planning and corporate financial plans in its budgeting system. There should be coordination of the Sacco's strategies and budget in a single, integrated process, characterized by continuous feedback. Staff and board members need to be involved budgetary process.