Budgeting Management And Financial Performance Of Selected Universities In Juba City, South Sudan

ABSTRACT Existing evidence indicate that there is difficulties in instituting and sustaining budget practices

over time due to perceived low financial standing of the public sector. The purpose of this study

was to examine the effect of budget management to financial performance in public and private

Universities in Juba city, South Sudan. Specifically, the study was set out to; find out the

relationship between budget planning and financial performance in public and private

Universities in Juba city, South Sudan; identify the relation between budgetary participation and

financial performance in public and private Universities in Juba city, South Sudan; and assess

how Budgetary control links to financial performance in public and private Universities in Juba

city, South Sudan. The study employed the descriptive comparative design. A sample size of 48

respondents was derived from the target population of 55 from Catholic University (CUOSS)

and Juba University (JU) in South Sudan using the Krejcie and Morgan table. The qualitative and

quantitative approaches were employed to analyse the data collected through questionnaire. The

results of qualitative analyses, using frequency counts and percentage distributions, means and

standard deviations, show that majority of the respondents were males; majority of the

respondents had postgraduate education; and that the majority of respondents in CUOSS (50%)

and JU (50%) have between 1-3 and more than 8 years experience respectively. The results of

quantitative analyses conducted using regression model show that budget planning has a

significant positive effect on financial performance at both CUOSS and JU. Further yet, there is

an associative relationship between the two variables at both universities. It was further noted

that there was a variation of 49% and 42.4% on financial performance at CUOSS and Juba

University respectively. This implies that other components not studied in this research

contribute 51% and 57.6% of the variance in the dependent variable. The results also showed

that budgetary participation has a significant positive effect on financial performance at CUOSS

but rather at Juba University. The results further indicate that budgetary control links has

significant effect on financial performance in public and private Universities in Juba city, South

Sudan. The researcher recommended since there was strong relationship in budget planning and

financial performance in Juba University compared to catholic University, Juba University

should continue to employ budget planning while Catholic University should start practicing

budget planning if it is to prosper in sound financial management. It was also recommended that

the University management should ensure that all concerned department should actively

participate in budget management if they are to achieve institutional goal. The accrediting

institution for higher education should conduct continues research on financial performance to

find out whether institutions have functional budget management and also competent staff are

involved in the monitoring and control.

TABLE OF CONTENTS

DECLARATION ............................................................................................................................. i

APPROVAL ................................................................................................................................... ii

ACKNOWLEDGEMENT ............................................................................................................. iii

TABLE OF CONTENTS ............................................................................................................... iv

LIST OF TABLES ........................................................................................................................ vii

Table 4.7: Descriptive Statistics of Budgetary Planning ......................................................... vii

LIST OF ABBREVIATIONS ........................................................................................................ ix

ABSTRACT .................................................................................................................................... x

CHAPTER ONE ........................................................................................................................... 1

INTRODUCTION .......................................................................................................................... 1

1.0 Introduction ............................................................................................................................... 1

1.1 Background to the Study ........................................................................................................... 1

1.1.1 Historical Perspectives ........................................................................................................... 1

1.1.2 Theoretical perspective .......................................................................................................... 3

1.1.3 Conceptual perspective .......................................................................................................... 4

1.1.4 Contextual Perspective........................................................................................................... 5

1.2 Statement of the Research Problem .......................................................................................... 5

1.3 Purpose of the Study ................................................................................................................. 6

1.4 Objectives of the Study ............................................................................................................. 7

1.5 Research Questions ................................................................................................................... 7

1.6 Hypotheses ................................................................................................................................ 7

1.7. Scope of the Study ................................................................................................................... 7

1.7.1 Content Scope ........................................................................................................................ 7

1.7.2 Geographical Scope ............................................................................................................... 8

1.7.3 Theoretical Scope................................................................................................................... 8

1.7.4 Time scope ............................................................................................................................. 8

1.8. Significance of the Study ......................................................................................................... 8

1.9 Operation definition of key terms ............................................................................................. 9

CHAPTER TWO ........................................................................................................................ 11

v

REVIEW OF RELATED LITERATURE .................................................................................... 11

2.0 Introduction ............................................................................................................................. 11

2.1Theoretical Review .................................................................................................................. 11

2.1.2Priority Based budgeting theory ........................................................................................... 11

2.2The conceptual frame work ..................................................................................................... 12

2.3.1 Budgeting Planning .............................................................................................................. 14

2.3.2 The Budgetary participation ................................................................................................ 15

2.3.3The Budgetary Control ......................................................................................................... 16

2.4 Financial Performance ............................................................................................................ 17

2.4.1 Financial sustainability ........................................................................................................ 18

2.4.2Solvency ................................................................................................................................ 18

2.5 Research Gaps ....................................................................................................................... 19

CHAPER THREE ....................................................................................................................... 21

RESEARCH METHODOLOGY.................................................................................................. 21

3.0 Introduction ............................................................................................................................. 21

3.1 Research design ...................................................................................................................... 21

3.2 Study area and population ....................................................................................................... 21

3.3 Study sample and size ............................................................................................................. 22

3.4. Sampling techniques .............................................................................................................. 23

3.5 Data collection methods and instruments ............................................................................... 23

3.6 Validity and Reliability ........................................................................................................... 23

3.6.1 Validity ................................................................................................................................ 23

3.6.2 Reliability ............................................................................................................................. 24

3.7 Data analysis ........................................................................................................................... 25

3.8 Ethical consideration ............................................................................................................... 26

CHAPTER FOUR: ..................................................................................................................... 27

DATA PRESENTATION, ANALYSIS AND INTERPRETATIONS ........................................ 27

4.0 Introduction ............................................................................................................................. 27

4.1 Demographic Characteristics of Respondents   ........................................................................ 27

4.1.1 Response rate ....................................................................................................................... 27