Budgetary Practice and Financial Performance in Selected Private Universities in Mogadishu, Somalia

ABSTRACT 

This study was set out to establish the extent to which budgetary practice affect financial performance of selected private universities in Mogadishu, Somalia; specifically the study intended to establish the (i) profile of the respondents, (ii) level of which budgetary practice, (iii) level financial performance, (iii) whether there is a significant difference in the level of which budgetary practice and financial performance in selected private universities in Mogadishu Somalia. The study used a survey design; specifically descriptive correlation and descriptive comparative; data were collected from 109 respondents using self administered questionnaires as the key data collection instruments. Data were analyzed at universities level using frequency counts and summary statistics and Pearson Linear Correlation coefficient at bi-variate level. The study findings revealed that there was a moderate level of which budgetary practice, there was also moderate level of financial performance, the level of budgetary practice and financial performance significantly differed among universities in Mogadishu city and that budgetary practice in the selected universities in Mogadishu is significantly correlated with financial performance From the above findings appropriate conclusions and recommendations including those for further research were made. Recommendations from the study were (i) The board of trustee should have appointed a permanent central budget authority committee that help the university budget formulation with the standards of university that exist in the world, the authority should also be given an office they operate and control the budget (ii) When formulating the budget, there should be methodology used for establishing the economic assumption of the budget publicly available, and economic planning office that develops the economic assumption should be opened the finance director shouldn’t be given in authority to increase spending once the budget has been approved by board of trustee of the university(iii)The university should improve an internal audit system and the finding of the audit institution should be performed to board of university and it should be transparent and available to the public (iv) The central budget authority committee should control for the achieving financial performance and should in charge of monitoring compliance with the.(v)Owners of the private universities should work hard to meet the budget practice as may be required continuously adjustment to fulfill those financial performance. in the private universities in Mogadishu.

TABLE OF CONTENTS

CNAPTER 1

One The Problem and Its Scope i

Background of the Study i

Statement of the Problem 5

Purpose of the Study 6

Research Objectives 6

Research Questions 7

Null Hypothesis 7

Scope 7

Theoretical Scope 8

Time Scope 8

Significance of the Study 8

Operational Definitions of Key Terms 8

Two REVIEW OF RELATED LITERATURE 10

Concepts, Opinions, Ideas from Authors/ Experts 10

Theoretical Perspectives 20

Related Studies 29

THREE Methodology 31

Research Design 31

Research Population 31

Sample Size 31

Research Instrument 33

Validity and Reliability of the Instrument 33

Data Gathering Procedures 34

Data Analysis 35

Ethical Consideration 36

Limitation of the Study 37

Four Presentation Analysis and Interpretation Of Data 44

Profile of the University Staff Respondents 39

The level of budgetary practice 42

Level of financial performance 46

Relation between budgetary practice and the Level of financial Performance of the selected private universities in Mogadishu, Somalia 48

Five Findings, Conclusions and Recommendations 49

Summary of Findings 51

Conclusion 53

Recommendation 53

Reference 55

Questionnaires 65

Appendices: 68

Appendix I A 68

Transmittal Letter 68

APPENDIX lB 69

Transmittal Letter for the Respondents 69

APPENDIX II 70

Clearance from Ethics Committee 70

Appendix III 71

Informed Consent 72

Curriculum Vitae 73