Determinants of effective budget implementation of donor Funded programmes: a case of ministry of agriculture, Livestock & fisheries Kenya
Mohamed, Dawe C
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The budget is a standard against which the actual performance can be compared and measured. Budgets are used to communicate top management’s expectations to managers and employees. The budgeting process provides for coordinated planning among different functional areas. Budgets are financial blueprints that quantify a firm’s plans for a future period. Budgets require the management to specify expected sales, cash inflows and outflows, and costs; and they provide a mechanism for effective planning and control in organizations. The study sought to establish the determinants of effective budget implementation of donor funded programmes in the Ministry of Agriculture, Livestock & Fisheries Kenya. This research problem was studied through the use of a descriptive research design. The research project focuses on the determinants of effective budget implementation of donor funded programmes in the MOAL&F, Kenya. The target population for this study 28 donor funded projects in the MOAL&F in the last 5 years. The study purposively selected the project manager as the respondents of the study. With regard to the determinants of effective budget implementation of donor funded programmes in the MOAL&F Kenya, the study used a survey questionnaire administered to each member of the sample population. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS (Version 22) and presented through percentages, means, standard deviations and frequencies. The information was displayed by use of bar charts, graphs, pie charts and in prose-form. In addition, the study conducted a multiple regression analysis. The researcher found that budgets are effective in the Ministry as they served their purpose of forecasting the future, assisting in control, acting as a means by which management communicates to other levels of departments, acts as a means of performance appraisal and also motivates employees to do better. The study revealed that in the process of budgeting, the Ministry faces some challenges which were; inability to achieve the required value of new businesses, management of acquisition and maintenance costs, time constraints, desire for comfort budgets, lack of continuity in the committee, competence levels of budgeting teams, non-adherence to the laid down budgets by departments, lack of adequate authority to spend despite allocation, non-achievement of the main top line income earners, cost fluctuations or inflation on costs, lack or poor participation, poor co-ordination of the exercise, measurement of some factors is difficult and at times it is inflexible to changes/adjustments and also it is expensive as a control/monitoring tool. The study revealed various challenges of budget implementation were, participation of all the stakeholders makes the budgetary process to be too lengthy, time consuming and association of extrinsic rewards with budgetary achievement as a means to motivate managers does not really help in budget implementation, bonus and promotion or new assignments are not correlated with budget performance, lower level management and senior management within programme are not linked to budget preparation and implementation and low level management do not have a significant role in both the initial and revision stages of budget preparation.