BUDGETING MANAGEMENT AND FINANCIAL PERFORMANCE OF SELECTED

UNIVERSITIES IN JUBA CITY, SOUTH SUDAN

BY

MONI CECILIA ELUZAI

MBA-D/43490/143/DF

A THESIS SUBMITTED TO THE COLLEGE OF ECONOMICS AND MANAGEMENT

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD
OF A MASTER OF BUSINESS ADMINISTRATION, FINANCE
AND ACCOUNTING OF KAMPALA
INTERNATIONAL UNIVERSITY,
UGANDA

APRIL, 2019

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 DECLARATION
I, Moni Cecilia Eluzai, hereby declare that this work is a result of my own effort under the
guideline of my Supervisor. I also declare that this thesis has materials from other researchers
which have fully been acknowledged within the theses and in the references. Finally, I declare
that this thesis has never been submitted for any academic award in any other University or
Institutions of higher learning.

Sign…………………………………………………

Date………………………

i
 APPROVAL
The work reported in this thesis has been done by the candidate under my guidance and
supervision.

Sign………………………………………………… Date………………………

Name: Dr. Sunday Arthur

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 ACKNOWLEDGEMENT

I first of all thank God for the grace, knowledge, wisdom, strength and provisions that he gave to
me. If it wasn’t for Him, I would have not managed this task.

In a very special way I would like to appreciate my supervisor for devoting time in guiding me
through the whole process of conducting this work. Thank you so much Dr. Arthur Sunday.

I would also like to thank my family most especially my husband and children for all the
financial, moral and spiritual support they accorded them. I’m indebted to you all.

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 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

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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

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4.1.2 Respondents’ Demographic data ......................................................................................... 27
4.2: Objective One: The effect of budget planning on financial performance ............................. 31
4.3: Objective two: The relation between budgetary participation and financial performance .... 41
4.4: Objective three: Budgetary control links to financial performance ....................................... 53
4.5 Testing the Hypotheses ........................................................................................................... 66

CHAPTER FIVE: ....................................................................................................................... 68

DISCUSSIONS, CONCLUSIONS, RECOMMENDATIONS .................................................... 68
5.1 Discussion of the findings ....................................................................................................... 68
5.1.1 Discussion on the effect of budget planning on financial performance............................... 68
5.1.2 Discussion on the effect of budgetary participation on financial performance ................... 69
5.1.3 Discussion on the effect of budgetary control links on financial performance ................... 69
5.2 Conclusions ............................................................................................................................. 70
5.3 Recommendations ................................................................................................................... 71
5.4. Areas for Further research ..................................................................................................... 73
5.5 Limitations of the Study.......................................................................................................... 73

REFERENCES ............................................................................................................................ 74

APPENDICES ............................................................................................................................. 78
APPENDIX 1: TRANSMITTER LETTER .................................................................................. 78
APPENDIX 2: INFORMED CONSENT ..................................................................................... 79
APPENDIX 3: RESEARCH INSTRUMENT .............................................................................. 80

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 LIST OF TABLES
TABLE PAGE

Table 4.1: Age of the Respondents 26

Table 4.2: Gender of the Respondents 27

Table 4.3: Highest level of Education of the Respondents 27

Table 4.4 Marital Status of the Respondents 28

Table 4.5: Working Experience of the Respondents 28

Table 4.6: Level in Management of the Respondents 29

Table 4.7: Descriptive Statistics of Budgetary Planning 29

Table 4.7:1 Descriptive Statistics of Budgetary Planning 31

Table 4.8: Correlation of Budgeting Planning and Financial Performance 33

Table 4.9: Model Summary of Budgetary Planning and Financial Performance 34

Table 4.10: ANOVA of Budgetary Planning and Financial Performance of Juba 35

University

Table 4.11: Coefficients of Budgetary Planning and Financial Performance 36

Table 4.12: Descriptive Statistics of Budgeting Participation 36

Table 4.12:1 Descriptive Statistics of Budgeting Participation 38

Table 4.13: Correlation of Budgeting Participation and Financial Performance 40

Table 4.14: Model Summary of Budgeting Participation and Financial 42

Performance

Table 4.15: ANOVA of Budgeting Participation and Financial Performance 43

Table 4.16: Coefficients of Budgeting Participation and Financial 44

Performance

Table 4.17: Descriptive Statistics of Budgetary Control 45

Table 4.17:1 Descriptive Statistics of Budgetary Control 47

Table 4.18: Correlation of Budgetary Control and Financial Performance 49

Table 4.19: Model Summary of Budgetary Control and Financial Performance 50

Table 4.20: ANOVA of Budgetary Control and Financial Performance for Juba 50

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 University

Table 4.21: Coefficients of Budgetary Control and Financial Performance for 51

Juba University

Table 4.22: Descriptive Statistics of Financial Performance 52

Table 4.22:1 Descriptive Statistics of Financial Performance 55

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 LIST OF ABBREVIATIONS

CPA Comprehensive Peace Agreement

CSO Cuvil Society Organization
CUOSS Catholic University of South Sudan
GOSS Government of South Sudan
IRR Internal Rate of Return
JU Juba University
NGOs Non governmental Organizations
NPV Net Present Vaue
TOC The Theory of Constraints
SAI Supreme Aduit Institution
SD Standard Deviation
SMEs Small Scale Enterprises
SPLM Sudan Peaples Liberation Movement
SSPs Scientific parkage for Social Sciences
BMP Budget management policy

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 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.

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 CHAPTER ONE
INTRODUCTION
1.0 Introduction
In this chapter the researcher introduces the research subjects related to research area of budget
Management and financial performance of selected Universities in Juba city, South Sudan. This
is a comparative study; looking at both public and private universities. This section has the
background of the study (historical perspectives, theoretical perspective, conceptual perspective
and contextual perspective), the statement of the research problem, purpose of the study, specific
objectives of the study, the research questions, hypothesis, study scope, significance of the study,
and operation definitions.

1.1 Background to the Study

1.1.1 Historical Perspectives
Many developing countries in Africa have engaged in detailed planning exercise of various types
in the period after independence and this has resulted in wide range of literature on
planningUmblaba Development Services (2017). Careful planning is at the root of any firm’s
financial Success. Planning is therefore the process of deciding what objective to pursue during
the future time and what to do in order to achieve these objectives.

According to Bartle (2008), budgets provide a focus for the organization aid in the coordination
of activities and facilitate control. Budgeting at both management and operation level looks at
the future and lays down what must be achieved. Annual budgets ensure regular checks over
aggregate expenditure and generate full particular of financial performance statement on
resources utilization but not concerned with long termed development plans over a medium-term
activity (Barger,2013; Bartle, 2008). Budgeting entails setting of goals, giving an account of
actual financial performance evaluation in terms of set financial goals. According to Adongo
and Jagongo (2013), Budgetary controls checks whether plans are realized and put into effect
corrective measures where deviation is occurring. The authors emphasized that without effective
controls an enterprise was at mercy of internal and external forces which can disrupt its
efficiency and be an aware, such enterprise cannot be able to combat such forces.

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According to Kariuki (2010), budgeting is a process of planning the financial operation of a
business. Budget as a management tool helps organizations to organize and formulize
management planning activities. Budgets as financial tools are useful for both evaluation and
control of organizations in planning of future activities. Application of these tools can greatly
impact on financial performance of an institution (Bhimani et al, 2015).

Budgeting process starts with development of Budget for the coming year several months before
the end of the current yearas stated by Weygandt, Kimmel, Kieso and Aly (2012).Budgeting
process typically begins with strategic planning by the organizational top level management. The
strategic plan communicates the goal and objective of the organization for relatively long period
of time (5 – 10) years. Furthermore, Weygandt et al (2012) explained that some companies start
budgeting process on the last year’s numbers whereas others employ Zero based budgeting. The
authors argued that budgeting process usually starts with the data collection of each
organizational unit of the company.

Managing a budget necessitates adherence to strict internal organizational protocols on the

expenditures. Budget management is sometimes used interchangeably as management control.
This term was first used in the 1970s. It was a collective name given to budgeting, product
costing and management accounting (Greve, 2009). PM4DEV (2015) highlights the steps and
tasks included in budget management. These include, Defining the Budget, Executing the
Budget, Controlling the Budget and Updating the Budget.

Worth noting is that the budget management must have a plan. This plan describes the methods
on how expenses are managed. It can also describe how budget variances are managed, the level
of approving changes to the budget and the process of requesting for those changes (Ax et al.,
2011). According to PM4DEV (2015), the plan may be formal or informal basing on the needs of
stakeholders.

Financial performance describes subjective measures of how well a firm can use assets from its
primary mode of business and generates revenue. It is also a general measure of firms’ overall
financial heath over a given period of time and thus can be used to compare firms across the

2
same industries and sectors in aggregation. According to Kibet, Makokha and Namusonge
(2016) the importance of financial stability ranges from enabling an organization to have
sufficient resources for quality services delivery, enabling an organization to pay staff, vendors
and creditors on time and maintenance of good credit risk. This makes financial performance an
important area of concern that attracted the attention of researchers, organizational managers,
government and the entre public. It is increasingly recognized that an organization can have a
sound budget and financial system but still fail to achieve its intended targets. This suggests that
the rule of game by which the budget is formulated and implemented are equally important and
that they do influence outcomes (Kariuki, 2010; Dunk, 2009).

According to Attipoe, ChoudharyandJonga (2014), the Government Budgeting is the principle

channel of allocating financial resources and managing Government expenditure to usher in
economic growth and to implement plans and programmes in the Country. Budgeting
management when effectively done, contributes not only to better cash management but also
helps increase financial clout, control financial results and performance measurements within an
institution. Thus the link between the Budgeting management and strategic plansis a
demonstration of commitment by those governing institutions to convert plans into an effective
programme of action.According to Davies and Smith (2010), the Government of South Sudan
has fairly large domestic revenue for post conflict Country which is mostly from oil. However, it
is regrettable to note that the Education sector receives one of the worst transfers compared to
other sectors.

After the birth of the republic of South Sudan, five universities were transferred from the north to
the south. However, South Sudan has six universities, of which five are public and one private.
Accordingly, Juba University is the biggest, leading and only university with good physical
infrastructures and the others have temporary structures. Public universities suffer severely from
austerity measures that the Government imposed to manage plummeting oil prices compared to
private Universities (Jok and Mosley (n.d).

1.1.2 Theoretical perspective

This study was guided by the theory of constraints (TOC) which was introduced in Goldratt
(1984). The theory states that all companies have certain aspects of their business that creates

3
bottlenecks that limits the company’s potential profitability. An important aspect of managing
the value chain is identifying these constraints. The theory of constraints is a specific approach
used to identify and manage constrains to achieve company’s goal as stated by Weygandt et al
(2012). This theory will therefore guide the researcher to identify the week areas that need
improvement and finds solutions the areas spotted in the Publicand private Universities in Juba.

1.1.3 Conceptual perspective

A lot of studies have been done on the subject of budgeting and financial performance (Adongo
& Jagongo, 2013; Isaboke & Kwasira, 2016; Fajinmi, 2016; Marcormick & Hardcastle, 2011)
and none has focused on budget management and how it can influence an organization. The
researcher defines budgeting and budgeting management as follows: -

Budget management is the rules and procedures that confirm the way budget is used to achieve
the targeted goals while Mogale City (2016) added that budget Management as the financial plan
and budget that moves towards achievement of goals within the constraints of available
resources. Budget management involves setting of budget management policy (BMP) which
specifies applicable legislative requirements as well as appropriate process and procedures to be
adhered to by all the role players in budget management. PM4DEV (2015) defines budget
management as the process by which expenses incurred are formally identified, approved and
paid.

According to Kariuki (2010), budgeting is a process of planning the financial operation of a

business. Budgetmanagement process as the process of quantifying the plans of an organization
so as to enable it achievesits objective in defined period. It further provides right climate for
good decisions, excellence and controls of activities and is intelligent and timely for
organizations. It is measured by budgeting planning, participation and budgetary control.
Budgeting management was examined against financial performance measured by financial
sustainability and solvency. Due to this the researcher intends to find relationship between
budget management and financial performance.

4
Performance is deemed to be the fulfillment of an obligation. Financial performance is a
combination of various aspects which are economically important. Financial performance is the
measuring of the results of firms polices and operations in monetary terms. These results are
reflected in a firm’s financial sustainability, solvency, return on investment, return on asset
among others. In a broader sense financial performance refers to the degree to which financial
objectives has been accomplished and is an important aspect of finance risk management
(Likalama, 2017; Obi, 2015; Siyanbula, 2013).The authors describe financial performance as a
general measure of the organization’s financial health over a given period of time.

1.1.4 Contextual Perspective

South Sudan is a country born out of war, having been involved in a civil war for about fifty (50)
years since Sudan attained independence from Britain in 1956. According to the Country profile
by Jok and Mosley (n.d) the world pushed through the Comprehensive Peace Agreement (CPA)
between the North and South of the Country which ended the civil war (1983-2005) and gave
way for separation. Thus, the birth of South Sudan in 2011. The authors however note that even
after 10 years after signing the peace agreement, not all promises, and expectations have been
fulfilled.

According to Jok and Mosley (n.d), South Sudan has five national universities and one private
university. University of Juba is the leading national University others include University of
Upper Nile in Malakal, University of Bahr - el- Ghazal in Wau, University of Rumbek, John
Grang memorial University of Science and Technology plus the private Catholic University of
South Sudan in Juba. In Juba city, there are two public Universities located in the researcher’s
area of study that is the University of Juba and the Upper Nile University.The private university
is also located with Juba city.

1.2 Statement of the Research Problem

In 2005 after a Comprehensive Peace Agreement (CPA), a semi-autonomous Government of
South Sudan (GoSS) was established and this ended the 22 years of conflict between the
Government of Sudan and Sudan People’s Liberation Movement (SPLM).Formal and informal
budgeting practices that existed both before and during the conflict shaped what was possible in

5
terms of systems development at the start of the peace. It has however proved to be practically
difficult to establish suitable institutions that use budget practices and sustain them over time
especially due to perceived low financial standing of the public-sector (Jok & Mosley (n.d);
Davies and Smith, 2009; Attipoe, Choudhary & Jongo, 2014). After the war, the technical
capacity of these involved in budgeting was noted to be low. Yet officials who were used to
unconstrained approaches of budget management resisted the changes that were being introduced
to streamline the public and private budgeting systems. Besides, poor local infrastructure, pre-
fabricated offices, weak IT capacity and limited communication have been witnessed in many
private and public institutions, universities inclusive. Due to such associated problems it
becomes difficult to practice planned budget as witnessed in their financial performance (Davies
& Smith, 2010; World Bank-Africa, 2015; Kauny, 2016). The effect of this is mostly seen in the
negative variance in the expenditure and income account of such universities besides having
greater impact on controlling the finance of the Universities since 2011 when budgets were
reduced as part of national austerity measures It should be noted that since the country has never
experienced real peace even after its independence in 2011 several systems within the university
have remained unfunctional. Additionally, budget management affects the financial performance
of any institution (Attipoe, Choudhary &Jongo, 2014). So, with malfunctioning systems,
universities are at a risk of deteriorating their financial sustainability, cost-effectiveness, reduced
resources to maximize service delivery among others. There has been no study conducted within
South Sudan universities in relation to the variables of budget management and financial
performance. Given this situation, there is a great need to determine the relationship between
budget management and financial performance in both public and private Universities of South
Sudan. Thus, there is need to carry out this comparative study to bridge the knowledge gap.

1.3 Purpose of the Study

The purpose of this study was to examine the effect of budget management on financial
performance in public and private Universities in Juba city, South Sudan.

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1.4 Objectives of the Study
1. To evaluate the effect of budget planning on financial performance in public and private
Universities in Juba city, South Sudan.
2. To examine the effect of budgetary participation on financial performance in public and
private Universities in Juba city, South Sudan.
3. To assess the effect of budgetary control links on financial performance in public and
private Universities in Juba city, South Sudan.

1.5 Research Questions

1. What is the effect of budget planning on financial performance in public and private
Universities in Juba city, South Sudan?
2. What is the effect between budgetary participation on financial performance in public and
private Universities in Juba city, South Sudan?
3. How does Budgetary control link affect financial performance in public and private
Universities in Juba city, South Sudan?

1.6 Hypotheses
Ho1: Budget planning has no significant effect on financial performance in public and private
Universities in Juba city, South Sudan.
Ho2: Budgetary participation has no significant influence on financial performance in public and
private Universities in Juba city, South Sudan.
Ho3: Budgetary control has no significance influence on financial performance in public and
private Universities in Juba city, South Sudan.

1.7. Scope of the Study

1.7.1 Content Scope
The content scope for this study was on budget management and financial performance. It
focused on comparing the budget management and financial performance in public and private
universities in Juba city, South Sudan.

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1.7.2 Geographical Scope
The study was conducted in Juba city, Jubek State in South Sudan. Juba city is the capital and the
biggest city in South Sudan with estimated population of 400,000 people. The latitude of
4.885363 and longitude of 31.571251.It is located within the central equatorial region.Juba city
has three universities, being the only city with such a number. Two of the universities are public
while the third one is private. The study was conducted in both public and private universities.

1.7.3 Theoretical Scope

The researcher was guided by the theory of constraints(TOC) which was introduced in 1984 by
DrEliyahu M. Goldratt in his bestselling business novel. The theory of constraints was
established on June 11, 2012. The theory states thatall companies have certain aspects of their
business that creates bottlenecks that limits the company’s potential profitability. An important
aspect of managing the value chain is identifying these constraints. The theory of constraints is a
specific approach used to identify and manage constrains to achieve company’s goal as stated by
Weygandt et al (2012). This theory will therefore guide the researcher to identify the week areas
that need improvement and finds solutions the areas spotted in the Publicand private Universities
in Juba.

1.7.4 Time scope

The Study was startedin September 2017 with proposal writing. After proposal hearing in
January 2018, the researcher worked on the comments and later embarked on designing the
questionnaires and data collection. Therefore, the time scope for this study has been 17months
from September 2017 to March2019. This timewas enough for the researcher because the
research was conducted in the researcher’s area of residence. The information collected for the
study was for the period from 2009 to 2017 to minimize on recall biases.

1.8. Significance of the Study

The research findings would be shared with the Universities and will help to improve financial
performance in the Universities of South Sudan especially in situations where they are not
performing well.

8
Policy makers especially in the ministry of finance and economic planning will benefit from this
study as it will give and provide information about the financial performance of not only public
but also private universities thus informing their policy reviewers/development process.

Since it’s the first of its kind in South Sudan, the study will provide new knowledge for future
scholars and will contribute to the archives in the field of budgeting and financial performance.
Development partners will use the research findings to guide/advise their partner’s institutions on
issues concerning the relationship between budging and financial performance of the institution.

1.9 Operation definition of key terms

Financial Performance is generally defined as the use of outcome based financial indicators
that are assumed to reflect the fulfillment of the economic goals of the firm (Adongo &Jagongo,
2013; Kariuki, 2010). In this study, the researcher used the term financial performance to imply
having a sound financial system that will enhance continuity of the institution.

Budget:It is something that express expectations and commitment within an institution regarding
financial consequences for an upcoming period (Ax et al, 2011). In this study, the researcher
used the term budget to mean a quantitative plan for an institution within a specified period.

Budget Management: is the process of exerting control over the firms operation and resources
Namazi, (2012). In this study the researcher operationalized it to mean the daily running of the
firm, the strategic position, behavior issues and the provision of incentives to employees.

Budget Management Policy: is a financial plan which has been agreed upon with the aim of
achieving goals within constraints of available resources PM4DEV (2015) in this regard the
researcher used it to mean a formal procedure which is prepared and agreed upon in respect to
usage of scares resources.

9
Budget Management plan: is a description of method for how expenses will be managed
including preliminary disbursement schedule. In this context the researcher used this to mean
how expenditures are incurred and disbursements acknowledged with the aim of attaining
management goal.

10
 CHAPTER TWO
REVIEW OF RELATED LITERATURE

2.0 Introduction
In this chapter the researcher reviews a related literature pertaining to the study which will help
in developing the conceptual frame work and review past empirical studies in Budget
management and financial performance in Universities.

2.1Theoretical Review
2.1.1The theory of Constraints

The researcher was guided by the theory of constraints (TOC) which was introduced in 1984 by
Dr Eliyahu M. Goldratt in his bestselling business novel. The theory states that all companies
have certain aspects of their business that creates bottlenecks thus limiting the company’s
potential profitability. An important aspect of managing the value chain is identifying these
constraints. The theory of constraints is a specific approach used to identify and manage
constrains in order to achieve company’s goal as stated by Weygandt et al (2012). This theory
was therefore used to guide the researcher in identifying the week areas that need improvement
and finds solutions the areas spotted in the Public and private Universities in Juba.

2.1.2Priority Based budgeting theory

The priority-based budgeting theory was propounded by Kavanagh, Johnson and Fabian (2011).
The theory focuses on corporate priorities and allocates growth and savings in budget
accordingly but does not require zero-sum. The underlining philosophy of priority driven
budgeting is about how an entity should invest resources to meet its stated objectives Kavanagh
el al (2011) argues that small and medium enterprises (SMEs) like all other business have their
budgeting process governed by the need to have proper funding transparency and accountability
at all level. Priority based model was linked to this study because it provided a possible
explanation as to how public and private Universities are affected by prioritization through
planning and budgetary information systems that enhance transparency and accountability in
budget management

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2.2The conceptual frame work
A conceptual framework is a set of broad ideas and principles taken from relevant fields of
inquiry and used to structure a subsequent framework (Kombo and Tromp 2009). It forms part of
the agenda for negotiation to be scrutinized, tested reviewed and reformed as a result of
investigation and it explains the possible connections between the variables. The conceptual
framework for the study shows the relationship of budget management and financial
performance of Universities in South Sudan and has been reflected in the figure below.

Dependent variables Independent variables

Budget Management Financial Performance
a) Budgeting Planning
enquiry a) Financial Sustainability
b) Budgetary participation b) Return on investment
c) Budgetary Control c) Return on assets
d) Solvency

Source: Developed by the Researcher (2018).

The conceptual framework was developed by the researcher after reviewing studies about budget
management and financial performance. Some of scholars that guided the researcher’s thinking
include Dunk (2009), Adongo and Jagongo (2013), Bhamani, et al (2015), Kariuki (2010) and
Marcormick and Hardcastle (2011). The dependent variable is Budget management which has
been measured by three concepts include budgeting planning, budgetary participation and
budgetary control. These are taken to be reliant to the independent variable which is financial
performance. The research measured the independent variable using financial sustainability and
solvency.

2.3 Budget and Budgeting

A budget is an organization’s operational plan, It identifies the resources and competences
required to fulfill the organizations’ goal for the period identified (Thuita&Kibati 2016).

12
Planning, choosing goals, predicting results are some of the virous ways of achieving the
organization goals and then deciding how to attain the desired goals. A budget includes both
financial and non-financial aspect of planned activities and acts as a blue print for an
organization flow into the upcoming period. Budgets covering financial aspect quantifies
management expectations regarding future income, cashflow and financial position. According
to Obi (2015), a budget for a period is both a guideline for operation and a projection of the
operating results for the budgeted period. A master budget is a comprehensive expression of
managements operation and financial plans for the future time period as summarized in a set of
budgeted financial statement.

According to Obi (2015), Budgets and budgeting process is intertwined with all aspects of
management. In addition to being a plan of operations, budgets play an important role in
allocating resources, coordinating and operations. It further helps in identifying constraints,
communicating and authorizing actions, motivating and guiding implementation, providing
guidelines for controlling operations and managing cash flows. Similarly,Preetabh (2010, August
27th) agreed that budgets are key future of most management control. When administered wisely
budgets compel planning including the implementation of plans, provide performance criteria
and promote coordination and communication within the organization. Budgeting preparation
allows the management time to work out any problem the company might face in the coming
period.

Budgeting Process
The budgeting process consists of activities that encompass the development, implementation
and evaluation of a plan for the provision of services and capital asset. As stated by Weygandt et
al (2012), Budgeting process starts with development of Budget for the coming year several
months before the end of the current year. However, Dunk (2009) and Bartle (2008) identified
that Budgeting process traditionally is bottom up process dependent on the departmental
manager providing a detailed plan for the upcoming, month, quarter or a year. Similarly, a frame
work for improved state and local government budgeting stated that a good budgeting process is
not simply an exercise of balancing revenue and expenditure one year at a time but it is strategic
in nature encompassing a multiyear financial and operation plan that allows resources on the

13
bases of identified goals. Furthermore, Weygandt et al (2012) explained that some companies
start budgeting process on the last year’s numbers whereas others employ Zero based budgeting.
Past performance is often the starting point of setting the future budget goals. Budgets are
developed within the economic condition of the country, industrial trend and market share of the
Universities (Kavanagh, et al, 2011).

2.3.1 Budgeting Planning

Yang (2010) viewed Budget as management tool concerned with planning and Management of
firms. Therefore, budgeting is fundamentally a plan. Athapaththu (2016) argued that Planning is
the phase that involves the interpretation of the broader strategic polices derived during the
formulation of strategy and their translation into more specific short-range plans. When these
short-term plans are quantified, they become budgets. While Yang (2010) added that when
budgeting is administered wisely, it derives management planning and provides best framework
for judging financial performance. Therefore, budgeting planning refers to developing
quantitative goals of the organization and preparing various budgets (Bhamani et al, 2015).
Organizations use long term budgets to lay out the planned financial goals and actions over
periods ranging from two to ten years. Furthermore, Adongo (2012) and Athapaththu (2016)
explained that long term budgets are part of an integrated business strategy along with
production and marketing plans which guide the firm towards strategic goal. This imprecise that
Strategic plans are closely related to long termed budgets.

A good budgetary planning should involve not only an analysis of capital allocation requests but
also the capital needed to generate data/information (Adongo & Jagongo, 2013). However, it is
noted that capital budgeting and expenses budgeting are separate processes. Budgets fail due to a
number of reasons including budgets being used as pressure tools, lack of training and central
decision-making process. These findings were from a study conducted about the challenges
faced by budgetary control systems (Adongo & Jagongo, 2013).

The budgeting planning or process should include a number of steps. These include; the
preliminary analysis of spending priorities; an assessment of the costs to see adequacy and
effectiveness of current programs; and a stage of inspecting the new spending proposals

14
(Fajinmi, 2015 Johansson, 2014; Dunk, 2009). Management of the budget as a planning tool
influences performance of any financial institution. Planning involves financial forecasting
aiming at launching the revenue and expenditures for organizations for the accomplishment of
the objectives (Fajinmi, 2015). The modernization of the process of drafting the budgets
guarantees the development and efficient management of funds. Any good budgeting process
must incorporate the long-term perceptive for that organization, establish linkages to the goals,
focus budget decisions on results and outcomes and promote effective communication with the
different primary stakeholders. The annual budget is often sub-divided into quarters or months
and the budget amount revisited as the year unfold (Isaboke & Kwasira, 2016).

2.3.2 The Budgetary participation

Employee participation in the budgeting management is critically evaluated by Johansson (2014)
and Dunk (2009) as a way of increasing the possibility of the organization achieving its goals.
Skills and competence are a big requirement to be able to determine budget variations. This
involves a propose budget analysis which skills are lucking among a number of staffs. It doesn’t
require only calculations but also thinking through the whole process. The process is a
systematic one staged into four steps including flexing the budget, analyzing the variances,
identifying the causes and taking appropriate action. The first three steps are the worth doing if
the last one which is the value addition activity is taken in time to help future results (Obi, 2015;
Thuita, & Kibati, 2016). Involving staff into the whole process will enhance their skills and thus
their involvement in monitoring and detecting the variations early enough.

Likalama (2017) and Siyanbula (2013) note that it is important that when setting a budget, the
staff members of the organization are supposed to participate. Their participation involves
defining budgetary goals and the subsequent revision of these goals with management. The
authors further note that participation can also be done with different levels of management
especially where budget variances happen. With staff participation, it becomes easy to identify
the possible reasons for variance and come up with corrective actions. A number of scholars note
that through staff budgetary participation, sharing information is accomplished. It is a setting
through which managers can exchange information and ideas to enhance budgetary planning and
control(Silva, 2012; Dunk, 2009).

15
2.3.3The Budgetary Control
According to Weygandt et al, (2012), Budgeting as a tool to manage costs and cash flow in big
organization was first introduced in 1920s. The recent development of management accounting
and budging techniques has however been as a result of the emergence of scientific management
philosophy which laid emphasis on the detailed information as a basis for taking decisions
(Bartle, 2008). Today, budgets provide a focus for the organization, facilitate control and also aid
the coordination of activities. Budgets provide management with a basis of looking at the future
and laying down what has to be achieved (Bartle, 2008). He stresses that when the system of
budgeting and control is in place, budgets will be established which sets out in financial terms
the responsibility of a manager in relation to the obligation of the overall policy of the
organization.

Budgets are financial tools that are useful in assessing and controlling the planning of future
activities. It is noted that the application of the budgeting tool has a great impact on the financial
performance of an institution. Modern budgeting can better support performance management if
control and accountability mechanisms are not lost. This can be done by integrating financial
known financial outcomes coupled by re-forecasting of the budget and linking it to the analyzed
performance trends (Isaboke & Kwasira, 2016; Adongo, 2012).

Budgetary controls are vital tools in any institution. This is because it enhances finances being
put to optimum use extending benefits to the target beneficiaries. It also reduces wastage of
resources (Adongo & Jagongo, 2013; Fajinmi, 2015). The deviance between the budgeted and
actual expenditure will enable determine the weakness of an organization. Budgetary control has
a number of aims (Marcormick & Hardcastle, 2011; Preetabh, 2010, August 27th; Siyanbula,
2013). The authors highlight the aims to include planning, coordination, and responsibility and
performance evaluation. However, there are four steps that should be taken before realizing an
overall budgetary control system. These include; Set up plans and budgets for each functional
area, such as sales, production, personnel, purchase as indicated in the organization’s
organogram; Measure and record actual performance and deviation; Compare actual
performance with the planned one and measure the deviation while identifying the function

16
responsible for this; Take collective actions and ensure that the deviation doesn’t arise in future.
Budgetary controls system compares actual cost with budgeted costs by computing variances
between the actual and planned costs for the actual level of activity. Since managers have more
control over usage of inputs than over their prices efficiency variance provides specific signal
regarding the need of corrective actions and where the action should be focused (Mowen &
Hansen, 2008).

Adongo and Jagongo (2013) noted a number of management functions that were found to have a
positive relation with budgetary controls and among them was financial performance. In a study
to find out the determinants of effective budget implementation conducted in Kenya, it was
found out that effective budgetary control improved financial performance of local authorities.
Yet in another related study still in Kenya, a weak positive effect of budgetary control on
performance was revealed among non-government organizations (Obi, 2015).

Standard costing system enhances planning and control and improve performance measurement.
Unit standards are fundamental requirement for flexible budgeting system. Mowen and Hansen
(2008) explain why it is important to adopt standard costing. The authors emphasise that
standard costing system enhances planning, control and improves performance measurement. A
study undertaken by Ashok and Mishra (2009) states that the control process follows the logic of
planning where the performance standards are set, performance measured, performance is
compared to the standards and corrective action is taken if needed. Weygangt et al (2012) also
argued that performance evaluation is at the centre of responsibility accounting which measures
actual results with budgeted goals and uses behavial and reporting principles. It should however
be noted that in cases where the budgeted amount are frequently revisited within the year, budget
execution becomes difficult to control (Adongo, 2012; Likalama, 2017).

2.4 Financial Performance

Financial performance is the measuring of the results of firms polices and operations in monetary
terms. These results are reflected in a firm’s financial sustainability, solvency, return on
investment, return on asset, among others. In a broader sense financial performance refers to the
degree to which financial objectives has been accomplished and is an important aspect of finance

17
risk management (Likalama, 2017; Obi, 2015; Siyanbula, 2013).The authors describe financial
performance as a general measure of the organization’s financial health over a given period of
time.

2.4.1 Financial sustainability

Financial sustainability’s importance ranges from enabling the organization have sufficient
resources to maximize the potential of service delivery and also for quality service delivery,
enhancing the ability to pay staff, and maintenance of good credit risk. Due to all this, the field
of financial performance then becomes of more importance attracting the attention of not only
researchers but also managers, government and the public at large (Adongo & Jagongo, 2013;
Bartle, 2008). Even when there are some studies that indicate no relationship between financial
performance and financial sustainability, Dunk (2009), Adongo (2012) and Fajinmi (2015)
empirically concluded that the two variables have a strong positive relationship. Relatedly, in a
study done in Austria to establish the relationship between sustainable practices and financial
performance of construction companies, it was revealed that companies that were using non-
financial reports outperformed those that did not (Ioannou & Serafeim, 2010).

Every private business’ concern is profitability. Profits are the past records, the investment lode
star for the future. Without profits, a business becomes weak and lifeless. Profits are the soul of
any business. It should be noted that profits are needed to finance growth and expansion apart
from remunerating capital (Porter and Kramer, 2011). Profitability is one measure for financial
performance. This measure is important as assessing the extent to which a business can be able
to generate profits out of the factors of production. Relatedly, when a company is profitable, it
pays cash dividends regularly. Additionally, on a periodic basis, the shareholders are issued with
shares, also called bonus shares. It is noted that in a financially performing firm, even bond
holders are paid a percentage interest on their bonds (Porter and Kramer, 2011; .

2.4.2Solvency
According to Padachi (2006), a well-designed and executed financial management positively
contributes to the creation of an organization’s value. The problem in financial management is to
achieve the desired trade-off between solvency, liquidity and profitability. In a study conducted

18
on the effect of budgeting process on budget variance in Kenya among NGOs, it was revealed
that budget preparation, control and implementation has a significant influence on the budget
variance (Isaboke & Kwasira, 2016). A number of authors (Likalama, 2017; Obi, 2015;
Siyanbula, 2013) highlight the importance of financial stability. He mentions that it enables an
organization or firm to have sufficient resources for the potential of service delivery, quality
service delivery, enhances the ability to pay staff, creditors and vendors on time and also
maintain good credit worth. It should however be noted that a crisis in some circumstances can
be indirectly an influence of financial stability. This makes the long-term capital to remain at the
same level since it is comprised of equity and long term financial debts. However, the short-term
capital could decrease.

Workers’ participation in the budgetary process improves staff willingness for them to accept the
budgetary goals which in turn improves the organization performance. The improved perception
among workers in an organization will also enhance their job satisfaction leading to better
financial performance of the organization (Adongo & Jagongo, 2013).

2.5 Research Gaps

It is thus glaring from the literature review that budget management and financial performance
are important part of any institution’s credibility. Therefore, every institution should take keen
interest in trying to see that they coordinate the budgeting management with its financial
performance and this will contribute to its sound financial sustainability. However, from all the
literature reviewed (Likalama, 2017; Isaboke & Kwasira, 2016; Obi, 2015; Siyanbula, 2013;
Weygandt et al, 2012), there is no or limited studies done within South Sudan and Juba city
universities on the two variables of budget management and financial performance. This poses a
research gap in the context of South Sudan that this study finding intended to fill.

Besides, none of the studies reviewed (see for example, Likalama, 2017; Isaboke & Kwasira,
2016; Obi, 2015) took a comparison approach in their methodology. Yet such an approach is
important as it depicts what exactly happens in the different settings on institutions according to
ownership. This study compared budget management and financial performance in public and
private universities, filling that gap. Furthermore, most of the available literature on the variables

19
of study seems old. That is more than five years and above. This necessitates an update in
literature of such variables since the international practices keep changing and as such
universities are expected to compile with the changes. The findings of this study provided an
updated literature on the variables.

20
 CHAPER THREE
RESEARCH METHODOLOGY

3.0 Introduction
This chapter discusses the methodology used in this study. It presents the research design, study
population, sampling design, study area, data collection instruments, data collection procedure,
data processing and analysis, research validity and the anticipated limitation to the study.

3.1 Research design

This study used a descriptive comparative design to explain the relationship between budget
management and financial performance. This design was considered because it was easy to
collect original data from the respondent. Besides, Kothari (2004) notes that a descriptive study
involves finding what, how, where of a phenomenon making it the suitable design for this study.
In this research quantitative data collection methods and analysis were used.

3.2 Study area and population

The study area covered both public and private universities that were within the Juba City, Jubek
state. This city is found within the central part of the Equatorial region in South Sudan. Within
Juba city, there two are public and one private university. Two universities were selected for this
study; Juba University and Catholic University of South Sudan.

The study population comprised employee from the two universities including Juba University
(which is public) and Catholic University of South Sudan (which is private). The study
participants included top Management (Vice chancellor of the University, two deputy vice
chancellors, controller of accounts, the University advisor, and legal advisor), middle
management (Director of schools/centres/ colleges, academic Registrar, Deputy Deans, Heads of
departments, Head of Security guards and Head of support staff) and lower management level
(Accountants, Cashiers, administrators). In total, fifty-five staff of both universities were
considered in this study (Head of Department- Education; Juba University, 2018 and Administer,
Catholic University of South Sudan, 2018).

21
3.3 Study sample and size
There are three universities within Juba City; two are public and one private. Since the study was
conducted in both public and private universities, purposive sampling was applied to select one
public and one private university which were based in Juba city. Juba university (a public
university) was purposively selected because it is the leading and biggest public university not
only within Juba city but also the country. Catholic University of South Sudan was also
purposively selected since it was the only private university within Juba city, the study area.

In the two universities, there were four members of top management team, twenty middle
managers and thirty-one lower managers. In total, the study population was fifty-five staff
members. Therefore, using the Krejcie& Morgan (1970), the sampling size for this study was
forty-eight respondents. The sample size included two top managers, twenty-nine middle
managers and seventeen lower managers.

Table 3.1 Summary of sample size

Respondent Sample size

Top management 2

Middle management 29

Lower management 17

Total Number 48

Source: Primary data (2018)

22
3.4. Sampling techniques
The two public universities, one was purposely selected. For private universities, Catholic
University of South Sudan was selected because this was the only recognised private University
in South Sudan. The top and middle managers were purposively selected to ensure that the
information gathered is sufficient due to their understanding of the budget process. The lower
managers (administration and finance department) were randomly sampled. A list of each
university lower managers was drawn and randomly sampled using a sampling interval of one.

3.5 Data collection methods and instruments

The quantitative data was collected using structured questions. The questionnaire was self-
administered, and it contained closed questions. The questionnaire was selected because it was
cheap and can easily be filled without the presence of the researcher since the questions are
clearly structured.

3.6 Validity and Reliability

3.6.1 Validity
According to Carole and Almut (2008), validity is often defined as the extent to which an
instrument measures what it purports to measure. According to Amin (2005), content validity
refers to the degree to which the test actually measures or is specifically related to the traits for
which it was designed. The content validity is determined by expert judgment which requires
experts in the area covered by the instrument to assess its content by reviewing the process being
used in developing the instrument as well as the instrument itself and thereafter make judgment
concerning how well items represent their intended content area. The decision rule is to accept an
instrument as valid if CVI coefficient is greater than 0.7 (Amin, 2005). Therefore, the CVI
coefficient was computed using the following formula:

CVI = Total Number of items declared valid ……………………………………… (3.1)

Total Number of items in the Instrument
= 46 = 0.88
52

23
From the equation 3.1 computed above, the CVI is 0.88. Given that the calculated CVI is greater
than 0.7, the research instrument was declared valid and accepted.

3.6.2 Reliability
Amin, (2005) argued that internal consistency is a commonly used form of reliability. To
evaluate reliability of the research instrument, the researcher used the test-retest method and
Cronbach’s Alpha. The questionnaire was given to 12 academic staff of Juba University South
Sudan. Same instrument was re-administered to the respondents after 10 days. Data collected
from the two intervals were correlated using Pearson product moment correlation coefficient.
Hence a reliability coefficient of 0.92 was obtained. The Pearson product moment correlation
coefficient of 0.92 implies that the questionnaire was highly reliable for the study. According to
Amin (2005) an instrument is considered reliable when it has a coefficient ranging from 0.60-
0.99. The Cronbach’s Alpha was also computed using SPSS and the estimates are presented in
Table 3.2.

Table 3.2: Results of Reliability Test

Variable Anchor Number of Items Cronbach’s Alpha
Value
Budget Management 5-Point 32 .894
Financial Performance 5-Point 15 .789
Average 0.842
Source: Primary data (2018)

From Table 3.2, the reliability test conducted with the Cronbach’s Alpha has an average
coefficient of 0.842. This indicates that the research instrument is reliable since Cronbach’s
Alpha coefficient is greater than 0.7.

24
3.7 Data analysis
Quantitative data was cleaned and entered into excel sheets and later exported to Statistical
Package for Social Sciences (SPSS). It was later analyzed using SPSS. With SPSS, descriptive
statistics were extracted and information on frequency, percentages distributions, correlations,
regressions and coefficient.

The parameters of the variables were estimated using regression model. The hypotheses
formulated in Section 1.6 were tested using the t-test because the sample size from each of the
university was less than 36. The hypotheses were constructed in the null and after running the t-
tests; they were either accepted or rejected at the 5% significance level. The decision rule is to
reject the null hypotheses if the t-statistics is greater than 1.96, and to accept the null hypotheses
if the t-statistics is less than 1.96.

The following numerical values were adopted to interpret the descriptive statistics of responses
from of the constructs in the questionnaire:

Table 3.3: Mean Range Guide

Mean Range Respondent Interpretation

4.0 – 5.00 Strongly agree Very good

3.0 – 3.99 Agree Good

2.5 – 2.99 Not sure Fair

1.5 – 2.49 Disagree Poor

1.00 – 1.49 Strongly disagree Very poor

Source: Primary data (2018)

The results of the tests are presented in chapter four and according to the hypothesis set in
chapter one.

25
3.8 Ethical consideration
Introductory letter from the school of post graduate studies and research education centre of
Kampala International University was received. This introductory letter acted as approval for the
student to conduct the study.

At the universities, approval was sought from the university secretary before conducting
research. These are the human resources offices of the universities. These offices also provided
guidance and help to make an appointment for the top and middle managers. The Human
resource Offices provided a list of the staffs in the finance department and the budget holders of
the university to enhance the process of randomly sampling the respondents. During data
collection, the respondents were asked for formal consent. It included informing the respondents
that the study was purely for academic and how they stand to benefit from the findings. They
were also informed that their names would not be recorded expect their views. Whoever
respondents consented to participate, they were asked to fill the consent form. Those who refused
were informed that their refusal will not in any away affect them.

26
 CHAPTER FOUR:
DATA PRESENTATION, ANALYSIS AND INTERPRETATIONS
4.0 Introduction
This chapter presents the research findings which are in line with the research objectives and
variables. Quantitative data was presented in form of tables. Comparison of data in relation to
CUOSS and Juba University was done; identifying similarities among and differences between
different data. Analysis of results was done according to the purpose of the study; Budget
management and financial performance (in CUOSS and Juba University).Therefore, the chapter
presents respondents’ demographic data, the empirical findings and their interpretation, tested
hypothesis and a discussion of the findings.

4.1 Demographic Characteristics of Respondents

4.1.1 Response rate
Response rate is usually conducted to ascertain the percentage of the targeted respondents that
actually responded to the questionnaire. From the analysis of respondents, out 48 respondents
who were given questionnaires, 46 of them filled and returned the questionnaires. This represents
a response rate of 96%. This percentage was considered high and good enough to represent the
target population, given the busy schedule of the targeted population. The questionnaires
returned from the field were assessed and found to be duly completed for use in this study.

4.1.2 Respondents’ Demographic data

Table 4.1: Age of the Respondents
Age Category (Years) CUOSS Juba University

Frequency Percent Frequency Percent

20-30 11 61.1 5 17.9

31-40 4 22.2 7 25.0

41-50 3 16.7 16 57.1

Total 18 100.0 28 100

Source: Primary data (2018)

27
The frequency table4.1 above shows that in Catholic University of South Sudan the majority of
respondents lies between the age of twenty to thirty which is about 61% followed by the age
between 31 to 40 about 22% and 16% between age of 41 to 50. Compared to Juba University
that was led by elderly staff between age of 41 to 50 was 57% followed by 25% between age of
31 to 40 and the younger staff forms the least group about 17%.

Table 4.2: Gender of the Respondents

Gender Category CUOSS Juba University

Frequency Percent Frequency Percent

Male 15 83.3 17 61.0

Female 3 16.7 11 39.0

Total 18 100.0 28 100

Source: Primary data (2018)

In table4.2 the respondents were requested to show their respective gender and the result shows that in
both Universities the majority of the respondents were male that forms 83% in catholic university of
South Sudan (CUOSS) and 61% in Juba University. There were few female respondents about 16% in
CUOSS and 39% in Juba University.
Table 4.3: Highest level of Education of the Respondents
Highest level of CUOSS Juba University
Education

Frequency Percent Frequency Percent

Secondary 1 5.6 6 21.4

Undergraduate 6 33.3 5 21.4

Post graduate 5 27.8 8 28.6

Others 6 33.3 8 28.6

Total 18 100.0 27 100

Source: Primary data (2018)

28
As represented by the frequency table 4.3above in CUOSS, 33% of the respondents were
bachelor holders, 27% were post graduate holders, 5% finished secondary school and 33% have
higher qualifications. While in Juba University there were 28% who have either post graduate
certificate or higher level of education, and 21% have either Secondary school certificate or
Undergraduate. Therefore, this indicates that though Catholic University of South Sudan is
small the respondents have higher education level compared to Juba University.

Table 4.4 Marital Status of the Respondents

Marital Status CUOSS Juba University

Category

Frequency Percent Frequency Percent

Single 9 50.0 3 10.7

Married 9 50.0 20 75.0

Divorced 0 0 2 7.15

Others 0 0 2 7.15

Total 18 100.0 27 100

Source: Primary data (2018)

The Frequency table in above table 4.4 shows that in Catholic University of South Sudan half of
the respondents were married that is 50% and another half were not married. In Juba University
75% of the respondents were married while 10% of the respondents were not married. Besides,
7.15% of the respondents divorced and another 7.15% were not sure whether they got married or
not. This implies that in catholic University of South Sudan the respondents were not matured
while in Juba University the majority of the respondents are married and matured.

29
Table 4.5: Working Experience of the Respondents

Working Experience
(Years) CUOSS Juba University

Frequency Percent Frequency Percent

1-3 9 50.0 0 0

3-5 5 27.8 3 10.7

5-8 1 5.6 11 39.3

More than 8 years 3 16.7 13 50.0

Total 18 100.0 27 100

Source: Primary data (2018)

As represented by the frequency table 4.5 the researcher also investigated the level of working
experience in both Universities. It was found out that, most of the respondents in CUOSS have
working experience of between one to three years compared to Juba University were by majority
have higher experience of more than eight years. This implies that majority of the respondents in
Juba University were experienced than the Catholic University of South Sudan.

Table 4.6: Level in Management of the Respondents

Management Level CUOSS Juba University

Frequency Percent Frequency Percent

Top level 1 5.6 1 3.6

middle level 8 44.4 19 67.9

lower level 2 11.1 8 28.5

Others 7 38.9 0 0

Total 18 100.0 27 100

Source: Primary data (2018)

30
 As shown by the table 4.6, the researcher also sought to find out the level of Management of
respondents. It was found out that most of the respondents in both Universities were middle
managers who were either heads of departments or budget holders but not necessarily in finance
department equals to 68% in Juba University and 44% in catholic University.

4.2: Objective One: The effect of budget planning on financial performance

This Section provides the analysis conducted to achieve objective one of this study.
Table 4.7: Descriptive Statistics of Budgetary Planning
Statement Frequency Percentages

Your university uses activity-based budgeting planning Strongly 3 11.1%

disagree

Disagree 5 18.5%

Neutral 3 11.1%

Agree 11 37%

Strongly 6 22.2.4%
agree

Your university uses a bottom-up budgeting planning process Strongly 3 11.1%

disagree

Disagree 5 18.5%

Neutral 6 22.2%

Agree 8 25.9%

Strongly 6 22.2%
agree

Top management adjusts the total budget size to conform with Strongly 2 7.4%
overall goals and strategies disagree

Disagree 3 11.1%

31
 Neutral 3 11.1%

Agree 16 55.6%

Strongly 4 14.8%
agree

The university has a written budget plan Strongly 1 3.7%

disagree

Disagree 2 7.4%

Neutral 5 18.4%

Agree 13 44.4%

Strongly 7 25.9%
Agree

The university written budget plan is comprehensive Strongly 0 0

disagree

Disagree 4 14.%

Neutral 5 18.5%

Agree 12 40.7%

Strongly 7 25.9%
agree

The university budget plan covers the time horizon attribute Strongly 1 3.7%
disagree

Disagree 5 18.5%

Neutral 8 29.6%

Agree 10 33.3%

Strongly 4 14.8%
agree

Your university has a budget information system Strongly 1 3.7%

32
 disagree

Disagree 4 14.8%

Neutral 2 7.4%

Agree 13 44.4%

Strongly 8 29.6%
agree

Planning and budgeting is important to the success of your Strongly 0 0

University disagree

Disagree 1 3.7%

Neutral 4 14.8%

Agree 8 29.6%

Strongly 15 51.9%
agree

The budgets in your University are set relative to the Strongly 2 7.4%
competition disagree

Disagree 9 33.3%

Neutral 6 22.2%

Agree 9 29.6%

Strongly 2 7.4%
agree

Budget targets are strong commitments and cannot be changed Strongly 2 7.4%
during the year disagree

Disagree 5 14.8%

Neutral 3 11.1%

Agree 13 48.1%

33
 Strongly 5 18.6%
agree

Budget planning process is continuous as it demands regular Strongly 0 0

and frequent attention disagree

Disagree 3 11.1%

Neutral 3 11.1%

Agree 12 40.7%

Strongly 10 37%
agree

Source: Primary data (2018)

The above table 4:7 shows descriptive statistics of Budgetary planning which are presented as
55.6% of the respondents agreed that top Management adjusts the total budget size to conform
with the overall goal and strategies. Yet, 51.9% of the respondents strongly agreed that planning
and budgeting is very important to the success of the organization. This implies that Juba
University consider planning and budgeting to be very important for the success of the
University and the top management normally depends on the budget to be reflected in the overall
goal and strategies of the University.

Table 4.7:1 Descriptive Statistics of Budgetary Planning

Descriptive statistics of budgeting planning Frequency Percentages

Your university uses activity-based budgeting planning Strongly 1 5.6%

disagree

Disagree 0 0

Neutral 2 11.1%

Agree 7 38.9%

34
 Strongly 8 44.4%
agree

Your university uses a bottom-up budgeting planning Strongly 1 5.6%

process Disagree

Disagree 3 16.7%

Neutral 6 33.3%

Agree 3 16.7%

Strongly 5 27.8%
agree

Top management adjusts the total budget size to Strongly 0 0

conform with overall goals and strategies disagree

Disagree 1 5.6%

Neutral 1 5.6%

Agree 12 66.7%

Strongly 4 22.2%
Agree

The university has a written budget plan Strongly 0 0

disagree

Disagree 0 0

Neural 0 0

Agree 6 33.3%

Strongly 12 66.7%
agree

The university written budget plan is comprehensive Strongly 0 0

disagree

Disagree 1 5.6%

35
 Neutral 2 11.1%

Agree 7 44.4%

Strongly 8 38.9%
agree

The university budget plan covers the time horizon Strongly 0 0

attribute disagree

Disagree 0 0

Neutral 5 27.8%

Agree 8 44.4%

Strongly 5 27.7%
agree

Your university has a budget information system Strongly 1 5.6%

disagree

Disagree 3 16.7%

Neutral 1 5.6%

Agree 9 50%

Strongly 22.2%
agree

Planning and budgeting is important to the success of Strongly 0

your University disagree

Disagree 2 16.7%

Neutral 4 11.1%

36
 Agree 9 22.2%

Strongly 2 50%
agree

The budgets in your University are set relative to the Strongly 3 16.7%
competition disagree

Disagree 1 5.5%

Neutral 9 50%

Agree 3 16.7%

Strongly 2 11.1%
agree

Budget targets are strong commitments and cannot be Strongly 1 5.5%

changed during the year disagree

Disagree 2 11.1%

Neutral 7 38.9%

Agree 6 33.3%

Strongly 2 11.1%
agree

Budget planning process is continuous as it demands Strongly 1 5.5%

regular and frequent attention disagree

Disagree 2 11.1%

Neutral 1 5.5%

Agree 8 44.4%

Strongly 6 33.3%
agree

Source: Primary data (2018)

37
From the table 4.7.1 above 55.6% of the respondents in Juba University agreed that top
management adjusts the total budget size to conform overall goals and strategies of the
University compared to 66.7% in Catholic University of South Sudan. Yet, 51.9% in Juba
University and 50% in CUOSS agreed that planning and budgeting is very important to the
success of the University. While 44.4% in Juba University and 66.7% in CUOSS agreed that the
University has a written budget plan. Whereas 50% of respondents in Catholic University and
33.3% of the respondents in Juba University are not in agreement that budgeting in the
Universities are set relative to competition.

Looking at both tables 4.7 and 4.7.1, the researcher concluded that top management uses budget
planning as a tool for measuring against overall goal and strategies of both public and private
Universities. Both public and private Universities are in agreement that planning, and budgeting
is very important factor for the success of Universities and this is always documented in written
budget plan of the Universities.

Although the majority of the respondents in both Universities agreed in certain factors still half
of the respondents in CUOSS seems not to have known whether budgeting planning is set
relative to competition in the university compared to Juba university with at least the majority
seems to have known that their budgets are set relative to the trend of competition of Universities
in South Sudan. This can also be noted that budgets planning may either have negative or
positive implications of the University Financial performance

Table 4.8: Correlation of Budgeting Planning and Financial Performance

Catholic University of South Sudan

Financial
Budget Planning Performance

Budget Planning Pearson Correlation 1 .195

Sig. (2-tailed) .437

N 18 18

Financial Performance Pearson Correlation .195 1

38
 Sig. (2-tailed) .437

N 18 18

Juba University

Financial
Budgetary Planning Performance

Budgetary Planning Pearson Correlation 1 .555**

Sig. (2-tailed) .003

N 27 27

Financial Performance Pearson Correlation .555** 1

Sig. (2-tailed) .003

N 27 27

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Primary data (2018)

Correlation results in table 4.8 show that there is no associative relationship between budgeting
planning and financial performance in CUOSS (r = 1.95; Sig= 0.437). This is because r value of
0.437 is greater than 0.05. Since this relationship is not predictive, there is no need of regression
analysis. However, there is an associative significant relationship between budgeting planning
and financial performance in Juba University (r= 0.555; Sig 0.003). This positive relationship is
predictive and means that if budgeting planning increases, financial performance will also
increase, or if budgeting planning decreases, financial performance will also decrease. This
therefore necessitated carrying out regression analysis as presented in table;

Table 4.9: Regression Results of Budgetary Planning and Financial Performance

Model Summary

Adjusted R
Model R R Square Square Std. Error of the Estimate

1 .555a .308 .280 .60730

a. Predictors: (Constant), Budgetary Planning

39
ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 4.103 1 4.103 11.124 .003a

Residual 9.220 25 .369

Total 13.323 26

a. Predictors: (Constant), Budgetary Planning

b. Dependent Variable: Financial Performance

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) 1.105 .693 1.596 .123

Budgetary
.627 .188 .555 3.335 .003
Planning

a. Dependent Variable: Financial Performance

Results in table 4.9, illustrate that the adjusted R Square for Juba University, which is a
coefficient of determination, was 0.280. The figure of 0.280 indicates that there was variation of
28 % on financial performance due to changes in budgetary planning. It explains the extent to
which changes in the dependent variable can be explained by the changes in the independent
variables or the percentage of variation in the dependent variable (financial performance) that is
explained by budgetary planning. This therefore, means that other components not studied in this
research contribute 72 % of variance in the dependent variable; R is the correlation coefficient
between the independent variable (Budgetary planning) and the dependent variable (Financial
performance).

40
Regression results in ANOVA table indicate that budgetary planning aspects are collectively
explanatory factors of financial performance in Juba University (F = 11.124, Sig. 0.003). This is
also supported by the regression mean square value of 4.103 compared to the residual mean
square of 0.369. There is thus a statistically strong significant effect of budgetary planning on
financial performance in Juba University.

Results from the coefficient table give t-values. The t-values test the hypothesis that the
coefficient is different from 0. To reject this, you need a t-value greater than 1.96 (for 95%
confidence). The t-value for budgetary planning in the model is 3.335; which is greater than
1.96. This implied that in Juba University, budgetary planning is a significant factor (P=0.003) in
financial performance. Also, the standardized beta coefficient of 0.555 implies that one unit
increase in financial performance is caused by 0.555 units increase in budgetary planning based
on the equation Y=βx + C where Y= Financial Performance (Dependent variable), x = Budgetary
Planning (Independent variable, β = 0.555 and C= constant (Financial performance when
budgetary planning is zero).

4.3: Objective two: The relation between budgetary participation and financial
performance
This Section provides the analysis conducted to achieve objective two of this study.

Table 4.10: Descriptive Statistics of Budgeting Participation

Statement Frequency Percentage

The assumptions used on major financial and operational Strongly 1 3.6%

matters to the Company’s internal/external stakeholders. disagree

Disagree 2 7.1%

Neutral 12 42.9%

Agree 9 32.1%

Strongly 4 14.3%

41
 agree

The budget process is a means of discussion among top Strongly 2 7.1%

management of the changes occurring in the Company. disagree

Disagree 1 3.6%

Neutral 11 39.3%

Agree 6 24%

Strongly 8 28.5%
agree

There is a lot of interaction between top management and Strongly 0 0

department managers in the budget process. disagree

Disagree 4 14.3%

Neutral 2 7.1%

Agree 14 50%

Strongly 8 28.6%
agree

Budgeting information is often used as a means of Strongly 0 0

questioning and debating the ongoing decisions and disagree
actions of department managers.
Disagree 2 7.1%

Neutral 4 14.3%

Agree 15 53.6%

Disagree 7 25%

You are involved in budget setting Strongly 1 3.6%

disagree

Disagree 5 17.9%

Neutral 4 14.3%

42
 10 35.7%

Agree

Strongly 8 28.6%
agree

You can make a decision at your level without reference Strongly 1 3.6%
to the hierarchical authority. disagree

Disagree 5 17.9%

Neural 2 7.1%

Agree 8 28.6%

Strongly 2 7.1%
agree

Budgets are usually adjusted during the year to those Strongly 1 3.6%
circumstances that could not be foreseen at the time the disagree
budget was drawn up.
Disagree 2 7.1%

Neutral 7 25%

Agree 14 50%

Strongly 4 14.3%
agree

Budgets are updated periodically to suit new business Strongly 2 7.1%

environment. disagree

Disagree 2 7.1%

Neutral 1 3.6%

Agree 17 60.7%

Strongly 6 21.4%
agree

The Company are transparent on the budgeted Strongly 2 7.1%

43
performance disagree

Disagree 2 7.1%

Neutral 5 17.9%

Agree 12 42.9%

Strongly 7 25%
agree

You have influence on the final budget Strongly 0 0

disagree

Disagree 7 25%

Neutral 8 28.6%

Agree 10 35.7%

Strongly 3 10.7%
agree

Your contribution to the university budget is important Strongly 3 10.7%

disagree

Disagree 5 17.9%

Neutral 4 14.3%

Agree 6 21.4%

Strongly 11 39.3%
agree

Technical staff are involved in the budget process Strongly 1 3.6%

disagree

Disagree 2 7.1%

Neutral 3 10.7%

Agree 16 57.1%

44
 Strongly 6 21.4%
agree

Source: Primary data (2018)

From the table 4:10, 50% of the respondents agreed that there is a lot of interaction and sharing
between top Management and department managers during the budgeting management. Besides,
53% of the respondents also agreed that budgeting information is used as a means of questioning
and debating on decision making and action to be taken by the departmental Managers. While
50% of the respondents agreed that Budgets are usually adjusted during the year to those
conditions that could not have been seen during the time the budget was prepared. The good
number of the respondents about 60.7% agrees that Budgets are updated periodically to suit new
business environment. Yet, 57% of the respondents agreed that technical staff are involved in the
budget process. This implies that the University of Juba Top Management and the departmental
managers are the core staff involved in the Budgeting management including the technical staff
who were the accountants, distracters and cashiers doing the technical work in the University.

45
Table 4.11:1 Descriptive Statistics of Budgeting Participation

Statement Frequency Percentages

The assumptions used on major financial and operational Strongly 0 0

matters to the Company’s internal/external stakeholders. disagree

Disagree 1 5.5%

Neutral 3 16.7%

Agree 7 38.9%

Strongly 7 38.9%
agree

The budget process is a means of discussion among top Strongly 0 0

management of the changes occurring in the Company. disagree

Disagree 1 5.5%

Neutral 2 11.1%

Agree 8 44.4%

Strongly 7 38.9%
agree

There is a lot of interaction between top management and Strongly 1 5.5%

department managers in the budget process. disagree

Disagree 1 5.5%

Neutral 2 11.1%

Agree 8 44.4%

Strongly 6 33.3%
agree

Budgeting information is often used as a means of Strongly 2 11.1%

46
questioning and debating the ongoing decisions and disagree
actions of department managers.
Disagree 1 5.5%

Neutral 2 11.1%

Agree 8 44.4%

Strongly 5 27.8%
agree

You are involved in budget setting Strongly 0 0

Disagree

Disagree 5 27.8%

Neutral 1 5.5%

Agree 9 50.3%

Strongly 3 16.7%
agree

You can make a decision at your level without reference Strongly 3 16.7%
to the hierarchical authority. disagree

Disagree 7 38.9%

Neutral 0 0

Agree 4 22.2%

Strongly 4 22.2%
agree

Budgets are usually adjusted during the year to those Strongly 1 5.5%
circumstances that could not be foreseen at the time the disagree
budget was drawn up.
Disagree 4 22.2%

Neutral 3 16.7%

Agree 4 22.2%

47
 Agree 6 33.3%

Budgets are updated periodically to suit new business Strongly 4 22.2%

environment. disagree

Disagree 2 11.1%

Neutral 2 11.1%

Agree 6 33.3%

Strongly 4 22.2%
agree

The Company are transparent on the budgeted Strongly 1 5.5%

performance disagree

Disagree 2 11.1%

Neutral 2 11.1%

Agree 6 33.3%

Strongly 7 38.9%
agree

You have influence on the final budget Strongly 2 11.1%

disagree

Disagree 4 22.2%

Neutral 4 22.2%

Agree 6 33.3%

Strongly 2 11.1%
agree

Your contribution to the university budget is important Strongly 1 5.5%

disagree

Disagree 3 16.7%

Neutral 2 11.1%

48
 Agree 4 22.2%

Strongly 8 44.4%
agree

Technical staff are involved in the budget process Strongly 1 5.5%

disagree

Disagree 0 0

Neutral 3 16.7%

Agree 10 55.6%

Strongly 4 22.2%
agree

Source: Primary data (2018)

Accurate budget participation acts a tool for estimating budgets in Public and private
Universities which have either impact on the financial performance. However, 50% and 44.4%
of the respondents are in agreement that there was a lot of interaction between top management
and department managers during budget process in Juba University and CUOSS respectively.
While 53% of the respondents in Juba University agreed that budgeting information is often used
as the means of questioning and debating the ongoing decision and actions of department
managers compared to 44.4% in CUOSS. Besides, 50% of the respondents in Juba University are
in agreement that budgets are usually adjusted during the year to those circumstances that could
not be foreseen the time budgets were prepared while 33.3% in CUOSS. Still 25% of the
respondents in Juba University did not know whether budgets are adjusted within the year or not
compared to 16.7% in CUOSS respectively.In Juba University majority which is about 60% of
the respondents agreed that budgets are updated periodically to suit new business environment
compared to 33.3% of respondents in CUOSS.Yet, 55.6% of the respondents in CUOSS agreed the
technical staff are involved in budget process while 55.5% in Juba University.

Table 4.12: Correlation of Budgeting Participation and Financial Performance

49
 Catholic University of South Sudan
Financial
Budgeting Participation Performance

Budgeting Participation Pearson Correlation 1 .721**

Sig. (2-tailed) .001

N 18 18

Financial Performance Pearson Correlation .721** 1

Sig. (2-tailed) .001

N 18 18

**. Correlation is significant at the 0.01 level (2-tailed).

Juba University

Financial
Budgetary Participation Performance

Budgetary Participation Pearson Correlation 1 .668**

Sig. (2-tailed) .000

N 27 27

Financial Performance Pearson Correlation .668** 1

Sig. (2-tailed) .000

N 27 27

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Primary data (2018)

50
Correlation results in table 4.12 show that there is an associative relationship between budgeting
participation and financial performance in CUOSS (r = 0.721; Sig= 0.001). This is because r
value of 0.001 is less than 0.05. There was also an associative significant relationship between
budgeting participation and financial performance in Juba University (r= 0.668; Sig 0.000). This
positive relationship in both CUOSS and Juba University is predictive and means that if
budgeting participation increases, financial performance will also increase, or if budgeting
participation decreases, financial performance will also decrease. Since there is associative
relationship between budgetary planning and financial performance in both universities, it
necessitated carrying out regression analysis as presented in the following tables;

Table 4.13: Regression Results of Budgeting Participation and Financial Performance

Model Summary Catholic University of South Sudan

Model R R Square Adjusted R Square Std. Error of the Estimate

a
1 .721 .520 .490 .499
a. Predictors: (Constant), Budgeting Participation
Model Summary Juba University

Model R R Square Adjusted R Square Std. Error of the Estimate

a
1 .668 .446 .424 .54314
a. Predictors: (Constant), Budgetary Participation
Coefficientsa of Catholic University of South Sudan
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) .192 .829 .231 .820
Budgeting
.933 .224 .721 4.162 .001
Participation
a. Dependent Variable: Financial Performance
Coefficientsa of Juba University
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) .596 .629 .948 .352

51
 Budgetary
.767 .171 .668 4.490 .000
Participation
a. Dependent Variable: Financial Performance

Results in table 4.13, illustrate that the adjusted R Square for Catholic University of South
Sudan, which is a coefficient of determination, was 0.490. The figure of 0.490 indicates that
there was variation of 49 % on financial performance due to changes in budgetary participation.
It explains the extent to which changes in the dependent variable can be explained by the
changes in the independent variables or the percentage of variation in the dependent variable
(financial performance) that is explained by budgetary participation. This therefore, means that
other components not studied in this research contribute 51 % of variance in the dependent
variable; R is the correlation coefficient between the independent variable (Budgetary
participation) and the dependent variable (Financial performance).

For the case of Juba University, the figure of 0.424 indicates that there was variation of 42.4 %
on financial performance due to changes in budgetary participation. It explains the extent to
which changes in the dependent variable can be explained by the changes in the independent
variables or the percentage of variation in the dependent variable (financial performance) that is
explained by budgetary participation. This therefore, means that other components not studied in this
research contribute 57.6 % of variance in the dependent variable;

Regression results in ANOVA table, indicate that budgetary participation aspects are collectively
explanatory factors of financial performance in CUOSS (F = 17.321, Sig. 0.001); and in Juba
University (F = 20.162; Sig. 0.000). This is also supported by the regression mean square value
of 4.308 compared to the residual mean square of 0.249 in CUOSS and regression mean square
value of 5.948 compared to the residual mean square of 0.295 in Juba University. There is thus a
statistically strong significant effect of budgetary participation on financial performance in Juba
University.

Results from table coefficient give t-values. The t-values test the hypothesis that the coefficient
is different from 0. To reject this, you need a t-value greater than 1.96 (for 95% confidence). The
t-value for budgetary participation in the model for CUOSS is 4.162, which is greater than 1.96;
and for Juba University is 4.490 which is also greater than 1.96. This implied that in both
CUOSS and Juba University, budgetary participation is a significant factor (P=0.001 and

52
P=0.000 respectively) in influencing financial performance. Also the standardized beta
coefficient in CUOSS of 0.721 implies that one unit increase in financial performance is caused
by 0.721 units increase in budgetary participation based on the equation Y=βx + C where Y=
Financial Performance (Dependent variable), x = Budgetary Participation (Independent variable,
β = 0.721 and C= constant (Financial performance when budgetary participation is zero).

Also the standardized beta coefficient in Juba University of 0.668 implies that one unit increase
in financial performance is caused by 0.668 units increase in budgetary participation based on
the equation Y=βx + C where Y= Financial Performance (Dependent variable), x = Budgetary
Participation (Independent variable, β = 0.668 and C= constant (Financial performance when
budgetary participation is zero).

4.4: Objective three: Budgetary control links to financial performance

This Section provides the analysis conducted to achieve objective three of this study.

53
Table 4.14: Descriptive Statistics of Budgetary Control
Statement Frequency Percentages

Changes in the budget are difficult to get approved by the Strongly 2 7.4
board of directors or top management. disagree

Disagree 4 14.8

Neutral 6 22.2

Agree 13 44.4

Strongly 3 11.1
agree

Managers are required to explain in detail budget Strongly 0 0

variances on a line-byline basis. disagree

Disagree 5 18.5

Neutral 1 3.7

Agree 13 44.4

Strongly 9 33.3
agree

Top management attaches a great deal of importance to Strongly 0 0

interim budget deviations. disagree

Disagree 3 11.1

Neutral 4 14.8

Agree 13 44.4

Strongly 8 29.6
agree

Managers are required to report the actions taken to Strongly 0 0

correct causes of interim budget variances. disagree

54
 Disagree 3 11.1

Neutral 5 18.5

Agree 13 44.4

Strongly 5 18.5
agree

Managers are required to prepare interim performance Strongly 0 0

reports, which compare the results-to-date with the disagree
budget.
Disagree 1 3.7

Neutral 9 33.3

Agree 13 44.4

Strongly 5 18.5
agree

Managers are required to compare between current year Strongly 1 3.7

results and the results of previous years in the interim disagree
performance reports.
Disagree 3 11.1

Neutral 5 18.5

Agree 8 29.6

Strongly 10 37
agree

Unfavorable budget variances receive more attention Strongly 0 0

from my superiors than favorable variances. disagree

Disagree 4 14.8

Neutral 6 22.2

Agree 10 37

Strongly 7 25.9
agree

55
Calculate variance between actual performance and Strongly 1 3.7
budgeted performance disagree

Disagree 3 11.1

Neutral 6 22.2

Agree 13 44.4

Strongly 5 18.5
agree

Source: Primary data (2018)

From the table 4.14 above 33.3% of the respondents seems not have known whether Managers
are supposed to prepare interim performance report that compares the actual results with the
budgeted figure. While 44.4% agreed that changes in the budget are difficult to get approved by
the board of directors. Also 44.4% agreed that Managers are required to explain the variance
according to the budget lines. Yet, 44.4% of respondents are in agreement that top management
attaches importance to the interim budget deviation. Additionally, 44.4% indicated that
Managers are required to take action to correct causes of interim budget variance. Further still,
44.4% of the respondents agreed that difference between actual performance and budgeted
performance are calculated regularly. From the above table the researcher concluded that
although there are some staff within Juba University who did not know what is expected of
budget holders still the good number of staff knew their work very well. This also implies that
Top Management attaches great importance to budget deviation and so it could not be approved
easily since it influences the financial performance of the University.
Table 4.17:1 Descriptive Statistics of Budgetary Control
Statement Frequency

Changes in the budget are difficult to get approved by the Strongly 1 5.6%
board of directors or top management. disagree

Disagree 3 16.7%

Neutral 2 11.1%

56
 Agree 6 33.3%

Strongly 6 33.3%
agree

Managers are required to explain in detail budget variances on Strongly 1 5.6%

a line-byline basis. disagree

Disagree 1 5.6%

Neutral 3 16.7%

Agree 10 55.6%

Strongly 3 16.7%
agree

Top management attaches a great deal of importance to interim Strongly 0 0

budget deviations. disagree

Disagree 2 11.1%

Neutral 4 22.2%

Agree 6 33.3%

Strongly 6 33.3%
agree

Managers are required to report the actions taken to correct Strongly 0 0

causes of interim budget variances. disagree

Disagree 1 5.6%

Neutral 3 16.7%

Agree 9 50%

Strongly 6 33.3%
agree

Managers are required to prepare interim performance reports, Strongly 0 0

which compare the results-to-date with the budget. disagree

57
 Disagree 0 0

Neutral 1 5.6%

Agree 7 38.9%

Strongly 10 55.6%
agree

Managers are required to compare between current year Strongly 0 0

results and the results of previous years in the interim disagree
performance reports.
Disagree 0 0

Neutral 1 5.6%

Agree 7 38.9%

Strongly 10 55.6%
agree

Unfavorable budget variances receive more attention from my Strongly 1 5.6%

superiors than favorable variances. disagree

Disagree 2 11.1%

Neutral 2 11.1%

Agree 6 33.3%

Strongly 7 38.9%
agree

Calculate variance between actual performance and budgeted Strongly 0 0

performance disagree

Disagree 1 5.6%

Neutral 2 11.1%

Agree 7 38.9%

Strongly 8 44.4%
agree

58
From the table 4.14.1 above 55.6% and 44.4% in CUOSS and Juba University respectively of the
respondents agreed that managers are required to explain in details budget variance line by line
bases. Although 55.6% of respondents in CUOSS strongly agree that managers are required to
prepare interim performance report which compares the result to date with the budget, still good
number of respondents that is 33,3% of respondents have neither agreed nor disagreed with the
statement compared to 18.5% in Juba University of the respondents strongly agreed with the
statement above. Yet, 50% of respondents in CUOSS and 44.4% in Juba University agreed that
managers are required to report the action plan taken to correct causes of interim budget
variance. Besides, 56.6% and 29.6% in CUOSS and Juba University respectively agreed that
managers are required to prepare reports which compare between current year results with
previous years in interim performance report.

From the above findings it could mean that management played an important role in budget
management in the Universities specially when comes to budgeting control. This is backed up by
55.6% of the respondents agreed that managers are required to explain budget variances to come
up with budgeted figure verses actual expenditure. This also implies that managers are assigned
responsibility of being accountable to budget control. Managers are also required to prepare
report that compares the current budget with the previous budget to find out the current trend of
the universities financial performance.

59
Table 4.15: Correlation of Budgetary Control and Financial Performance

Correlations of CUOSS
Financial
Budgeting Control Performance

Budgeting Control Pearson Correlation 1 .354

Sig. (2-tailed) .150

N 18 18

Financial Performance Pearson Correlation .354 1

Sig. (2-tailed) .150

N 18 18

Correlations of JU

Financial
Budgetary Control Performance

Budgetary Control Pearson Correlation 1 .503**

Sig. (2-tailed) .008

N 27 27

Financial Performance Pearson Correlation .503** 1

Sig. (2-tailed) .008

N 27 27

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Primary data (2018)

60
Correlation results in table 4.15 shows that there is no associative relationship between budgeting
control and financial performance in CUOSS (r = .354; Sig= 0.150). This is because sig. value of
0.150 is greater than 0.05. However, there is an associative significant relationship between
budgeting control and financial performance in Juba University (r= 0.503; Sig 0.008). This is
because sig. value 0.008 is less than 0.05. This positive relationship is predictive and means that
if budgeting control increases, financial performance will also increase, or if budgeting control
decreases, financial performance will also decrease.

Table 4.16: Regression Results of Budgetary Control and Financial Performance

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .503a .253 .223 .63111

a. Predictors: (Constant), Budgetary Control

ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 3.365 1 3.365 8.449 .008a

Residual 9.958 25 .398

Total 13.323 26

a. Predictors: (Constant), Budgetary Control

b. Dependent Variable: Financial Performance

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) 1.208 .758 1.594 .124

61
 Budgetary
.578 .199 .503 2.907 .008
Control

a. Dependent Variable: Financial

Performance

Results in table 4.16, illustrate that the adjusted R Square for Catholic University of South
Sudan, which is a coefficient of determination, was 0.223. The figure of 0.223 indicates that
there was variation of 22.3 % on financial performance due to changes in budgetary control. It
explains the extent to which changes in the dependent variable can be explained by the changes
in the independent variables or the percentage of variation in the dependent variable (financial
performance) that is explained by budgetary control. This therefore, means that other
components not studied in this research contribute 77.7 % of variance in the dependent variable.

Regression results in ANOVA table, indicate that budgetary control aspects are collectively
explanatory factors of financial performance in Juba University (F = 8.449, Sig. 0.008). This is
also supported by the regression mean square value of 3.365 compared to the residual mean
square of 0.398. There is thus a statistically strong significant effect of budgetary participation on
financial performance in Juba University.

Results from coefficient table give t-values. The t-values test the hypothesis that the coefficient
is different from 0. To reject this, you need a t-value greater than 1.96 (for 95% confidence). The
t-value for budgetary control in the model is 2.097, which is greater than 1.96. This implied that
budgetary control is a significant factor (P=0.008 respectively) in influencing financial
performance. Also the standardized beta coefficient of 0.503 implies that one unit increase in
financial performance is caused by 0.503 units increase in budgetary control based on the
equation Y=βx + C where Y= Financial Performance (Dependent variable), x = Budgetary
Participation (Independent variable, β = 0.721 and C= constant (Financial performance when
budgetary control is zero)

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Table 4.17: Descriptive Statistics of Financial Performance

Financial Sustainability Frequency Percentages %

There is growth in tuition revenue Strongly disagree 4 14.4%

Disagree 1 3.7%

Neutral 5. 18.5%

Agree 5. 18.5%

Strongly agree 13 44.4%

Financial liquidity is stable Strongly disagree 3 11.1%

Disagree 6 22.2%

Neutral 5 18.5%

Agree 10 33.3%

Strongly disagree 4 14.8%

There is reduction in the total university cost Strongly disagree 5 18.5 %

Disagree 8 29.6%

Neutral 7 25.9%

Agree 5 18.5%

Strongly agree 2 7.4%

There is cost effectiveness in your university Strongly disagree 4 11.1%

Disagree 5 18.5%

Neutral 8 29.5%

Agree 8 25.9%

Strongly agree 3 11.1%

Solvency

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Increased Disagree 4 14.8%

The University’s market share has increased Neutral 11 37%

Agree 6 22.2%

Strongly agree 6 22.2%

Source: Primary data (2018)

Table 4.22:1 Descriptive Statistics of Financial Performance

Frequency Percentages %

Financial Sustainability

There is growth in tuition revenue Strongly disagree 0 0

Disagree 1 5.6%

Neutral 2 11.1%

Agree 8 44.1%

Strongly Agree 7 38.9%

Financial liquidity is stable Strongly disagree 1 5.6%

Disagree 7 38.9%

Neutral 5 27.8%

Agree 3 11.1%

Strongly agree 3 16.7%

There is reduction in the total university cost Strongly disagree 3 11.1%

Disagree 5 27.8%

Neutral 6 33.3%

Agree 3 22.2%

Strongly agree 1 5.6%

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There is cost effectiveness in your university Strongly disagree 3 22.2%

Disagree 2 11.1%

Neutral 5 27.8%

Agree 6 33.3%

Strongly agree 2 22.2%

Solvency

The university’s market share has increased Strongly disagree 3 16.7%

Disagree 1 5.6%

Neutral 6 33.3%

Agree 7 38.9%

Strongly agree 1 5.6%

Source: Primary data (2018)

Financial performance is measuring of results of the firm’s policies and operations in the
monetary terms. In the Financial performance table 4.22 and 4.22.1 above show 55.5% of the
respondents in CUOSS agreed that all payrolls are checked against program budgets compared to
33.3% of the respondents in Juba University. Yet, 50% in CUOSS and 27.8% in Juba University
of the respondents agree that there were procedures to ensure that procurements were carried out
in competitive manner.

In CUOSS 44.1% of respondents agrees that there was growth in tuition revenue while they were
only 18.5% at Juba University that agreed. This implies that the private universities seem to have
financial stability and as such are much more financially sound compared to public universities.
Important to note is that there was quiet a big number of respondents that didn’t know if their
institutions’ financial liquidity was stable. This was seen at 27.8% at CUOSS and 18.5% at Juba
University. This might affect their performancewhich may result in the poor financial
performance of the institutions.

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4.5 Testing the Hypotheses

In this study, the t-values were used to test the hypothesis. The t-values were only run where the
correlation results showed an associative significant relationship between the two variables. The
results of the tests are as below;

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Test for Ho1

After running the t-test, budgetary planning is a significant factor in influencing financial
performance in Juba University and none in CUOSS. Therefore, the researcher rejects the null
hypothesis at Juba University and accepts it at CUOSS.

Test for Ho2

The t-test run showed a strong significant relationship between budgetary participation and
financial performance at both CUOSS and Juba University. The research rejects the null
hypotheses at both universities.

Test for Ho3

When run, the t-test found significant relationship between budget control and financial
performance at Juba University and not at CUOSS. In conclusion, the researcher accepts the
hypothesis at Juba University and rejects it at CUOSS.

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 CHAPTER FIVE:
DISCUSSIONS, CONCLUSIONS, RECOMMENDATIONS
The current chapter is devoted to discussions of the findings, conclusions, recommendations, and
suggestion for areas of further research.

5.1 Discussion of the findings

5.1.1 Discussion on the effect of budget planning on financial performance
The objective one of this study was to evaluate the effect of budget planning on financial
performance in public and private Universities in Juba city, South Sudan. The findings at
Catholic University of South Sudan (CUOSS) showed that majority of these that participated in
budgeting are younger as compared to their counterparts in Juba University. Additionally,
majority of the staff at CUOSS had worked for 1-3 years yet those of Juba University had
worked for 5-8years. It is noted that skills and competence is built with age. Accordingly, Thuita
and Kibati(2016) noted that skills and competences are a requirement to be able to control
budget performance. This contradicts the findings especially at CUOSS University where
majority of that staffs that are involved in budgeting are between 20 and 30 years and have
worked for a maximum of 3 years.

It was also found out that staffs at different levels participate in budget planning. This was for
both universities. This agrees with the studies done by Yang (2010) and Athapaththu (2016)who
emphases the need for all staff to participate in budget planning. However, it should be noted that
at both CUOSS and Juba University middle managers are the majority of those staff who
participate in budgeting.

The findings showed that there is no connection between planning and financial performance at
the Catholic University of South Sudan. This finding seems to contradict previous studies by
Yang (2010);Likalama (2017); Silva and Jayamaha (2012) andAthapaththu (2016)that stated that
when budgeting is administered wisely, it drives management planning and provides best
framework for judging financial performance. These scholars’ position agrees with the findings
at Juba University, a public university. At this university, it was found that there was an
associative significant relationship between the two variables.

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5.1.2 Discussion on the effect of budgetary participation on financial performance
The objective two of this study was to examine the effect of budgetary participation on financial
performance in public and private Universities in Juba city, South Sudan. Budgetary
participation and financial performance have a big relationship as showed in the findings. This
was found both at the Catholic University of South Sudan and Juba University. It should be
noted that this finding contradicts the study by Siyanbula(2013) who thinks that employee
participation in budgeting has no effect onto the overall financial performance of the system.
However, the finding agrees with the studies done by Adongo andJagongo (2013);Thuita and
Kibati (2016); Obi (2015) and Dunk (2009).

5.1.3 Discussion on the effect of budgetary control links on financial performance

The objective three of this study was to assess how budgetary control links affect financial
performance in public and private Universities in Juba city, South Sudan. The finding on
budgetary control and financial performance indicated that at CUOSS, the two variables have no
associative relationship unlike at Juba University. At Juba University, there is a strong
significant effect of budgetary control on financial performance. This finding at Juba University
comes to agreement with what Preetabh (2010) and Silva and Jayamaha (2012) highlighted. The
authors stress that one of the aims of budgetary control is performance evaluation. Similarly,
Weygangt at el (2015), mention that budgetary control system enhances work at the time of
evaluating the financial performance of an institution. This was also acknowledged by Adongo
and Jagongo (2013).

The findings also show that management played an important role in budgeting management in
the Universities especially when it comes to budgeting control. This is backed up by 55.6% of
the respondents who agreed that managers are required to explain budget variances to come up
with budgeted figure verses actual expenditure. This also implies that managers are assigned
responsibility of being accountable to budget control. Managers are also required to prepare
report that compares the current budget with the previous budget to find out the current trend of
the universities financial performance. Isaboke and Kwasira(2016)agreed that budgets as a
management tool can be used as performance measures among employees. He also indicated that
budgets can be used by the managers to as a fault-finding tool which may in turn have negative
implications on the intended budget.
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The findings indicated that the most significant budgeting process and management that
respondents found to have impact on the performance was budgeting participation. It was also
found out that the employees views are also reflected in budget targets than the budget as
imposed by the organization management. The finding also indicated that about 50% in Juba
University and 44.4% in CUOSS agreed that there was a lot of interaction between top
management and departmental managers. This also implies that the budget originates from
lower level of management and this can be redefined at higher level of management. This intern
leads to ownership of the budget by the staff. The management seems to agree with Johansson
(2014) who noted that budgetary participation is expected to be crucial channel to improve
information exchange and sharing among all levels of management and when this process is
pursued by the organization it is expected that the realization of the set targets improves.

5.2 Conclusions
1. At CUOSS, budgeting planning doesn’t affect the institution’s financial performance.
However, at Juba University, it heavily does. In conclusion there, private universities’
financial performance is not influenced by budgetary planning while in public
universities, it does.
2. At CUOSS and Juba University, Budgetary participation influences the financial
performance of universities. It is concluded therefore that, for financial performance to
increase in both public and private universities, budgetary participation must also
increase.
3. Juba University’s financial performance is influenced by budgetary control systems.
While the Catholic University of South Sudan’s financial performance is not affected by
budgetary control. In conclusion therefore, public universities’ financial performance is
influenced by budgetary control systems while these are not necessary for private
universities’ financial performance.

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5.3 Recommendations
Arising from this study, the researcher makes the following recommendations:

To private and public universities:

1. It was also found in Juba University most of the staffs have worked for 5-8 years and
they are aged compared to Catholic University of South Sudan where most of the staff
aged between 20-30 years and have worked maximally for 1-3 years. From this scenario
the researcher recommends to CUOSS to employee experienced staff and ensure that they
retain them if they are to improve on their financial performance.
2. The Board of Trustees are potential in exerting influence over the direction of
universities. The boards of private universities should ensure that all the relevant staffs
are actively involved in budget planning, monitoring and control. This is a good signal in
attracting donors and other development partners. When adopted, it will improve the
financial performance of private universities and in the long run impact on the quality of
education.
3. In Juba University, since it was found that there was a strong relationship in budget
planning and financial performance. It is therefore recommended that the University
should continue to employ budget planning so as to have financial performance increase.
4. Private and public universities should think of introducing budgeting software solutions
which can improve budgeting and track performance management. These soft-wares will
make information more accessible and as such speed up the decision making process
within the institution. The soft-wares can also foster an understanding of the drivers of
performance and the related future outcomes thus help in developing new insights
through predictions.
5. Participation of every concerned office in budget management is very essential if
financial performance is to be good within universities. It should therefore be emphasized
by both public and private universities. Management should ensure that all concerned
departments are actively involved in budget management. This is important because each
department may have a different perspective on what is necessary to achieve the
institution goals. Therefore, their involvement enhances compromise and understanding

71
 where the interest of all lay. In the end, this will easy actual budget performance
reporting.
6. In both Universities budgets are used as means of questioning and debating ongoing
discussion among departmental managers and usually adjusted during the year to the
circumstances which might not be anticipated. More so mostly technical staffs are
involved in these processes. It is therefore recommended that this is a credible exercise
that should continue since the staffs see themselves as part of the budgeting management
and this contributes to the Universities financial sustainability.

To the government and other policy markers

1. It was also found out that some Staff in both Universities are not knowledgeable
about budget management as a result they were not aware whether budgets are
adjusted within the year or not. Therefore, it was also recommended that the budget
holders need to be educated on the importance of budgeting as long as financial
performance are concerned and government should support the universities with this
task.
2. The accrediting institutions for higher education should conduct continuous research
on the financial performance of public and private universities. The research should
focus on whether institutions have functional budgeting management systems and the
competences of staff that are involved in managing the systems. The research would
also focus on the financial stability and sustainability of such institutions.
Additionally, since a review of the financial performance of the institution forms a
key part in the accreditation process, accrediting institutions in their monitoring
activities should investigate the financial performance of the institutions and advise
them accordingly. This will enhance their measuring of institutional financial
performance and identify weak performers. The accrediting agency can therefore put
a threshold for accreditation or identify the institutions that must develop/improve on
their financial performance.
3. The ministry of higher education should ask all universities to include a component of
financial performance in their mandatory reporting to the ministry. This they can do
in a number of ways including providing audited financial statements. This

72
 requirement will make the information publicly available and reduce on information
irregularities. This information can also be used to rank the best performing
institutions within the country. This will help students to apply to only those
institutions whose performance is good and as such are likely to offer quality
education.

5.4. Areas for Further research

The researcher does point out other areas of research that would contribute to the study findings
conclusions and recommendations.

I. A comprehensive study focusing on all factors that affect financial performance in both a
public and private university should be done to establish which of the factors has a more
significant role.
II. A study on factors affecting financial system of public and private Universities of South
Sudan
III. Another study focusing on managers’ understanding of the universities’ financial
performance can also be instituted to enhance in need to have knowledge of their
institutions’ financial stability and as such sustainability.

5.5 Limitations of the Study

There were some limitations that the researcher anticipated. Some of these included: -

South Sudan has political conflicts that are compounded by economic woes have also caused
displacement of people including some Universities in Juba City. Therefore, this might affect the
time for the research. However, the research was limited to more peaceful places within Juba
city.

There was wrong paraphrasing and misunderstanding of budgeting to be only used by the
Finance staff not the top and middle managers in other departments. This however was addressed
by the researcher who has background within the field of financing and accounting. It was
clarified to participants at the time of presenting the questionnaire.

73
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 APPENDICES
APPENDIX 1: TRANSMITTER LETTER

Kampala International University College of Economics and Management

Dear Sir / Madam,

ACADEMIC RESEARCH QUESTIONNAIRE

Dear Respondent,
I am a Masters Student in Kampala International University in Business Management
(Accounting and Finance Option), undertaking a research study on Budgeting management and
financial performance of Public and Private Universities in Juba cityin South Sudan. In view
of this, I request you to participate in this study, by providing answers to this questionnaire.
Kindly answer all questions as per instructions. Please be assured that the information you give
will be treated with utmost confidentiality and will be used for academic purpose only.
Before answering this questionnaire kindly read and sign the informed consent below.
Thank you very much in advance.

Yours Faithfully,

-------------------------
Moni Cecilia Eluzai
Tel :+211925561732
E-mail: ceciliamoni@hotmail.com

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 APPENDIX 2: INFORMED CONSENT
I am giving my consent to be part of the research study of Moni Cecilia Eluzaithat will focus on
Budgeting management and financial performance in Public and Private Universities in Juba,
City in South Sudan.
I am assured of privacy, anonymity and confidentiality and that I will be given an option to
refuse participation and right to withdraw my participation any time.
I have been informed that the research is voluntary and that the result will be given to me if I ask
for it.

Initials: ____________ Date: _____________

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 APPENDIX 3: RESEARCH INSTRUMENT

Part A: Profile of the Respondent

Instruction: Please kindly tick response that matches your situation in the provided space.
1. Age of the respondent
A. 20-30 [ ] B. 31-40 [ ] C. 41-50 [ ] D. Others [ ]
2. Gender: Male [ ] Female [ ]
3. Educational level: Secondary [ ] Undergraduate [ ] Post graduate [ ] others [ ]
4. Marital status: Single [ ] Married [ ] Divorced [ ] others [ ]

5. Working experience:
A. 1-3 [ ] B. 3-5 [ ] C. 5-8 [ ] D. Others [ ]
6. Level of management: Top level [ ] middle level [ ] lower level [ ] others [ ]

PART B. EXTENT OF BUDGETING MANAGEMENT IN SELECTED UNIVERSITIES

IN CENTRAL EQUATORIAL STATE IN SOUTH SUDAN
Instructions:
For the following question items, please tick the number that best describes your opinion about
the budgeting management in your University. The numbers represent the following responses:
1= strongly disagree 2= Disagree 3= Neutral 4= Agree 5= strongly agree.

Question item 1 2 3 4 5
Budgeting Planning
1. Your university uses activity based budgeting planning
2. Your university uses a bottom-up budgeting planning process
3. Top management adjusts the total budget size to conform with overall goals
and strategies
4. The university has a written budget plan
5. The university written budget plan is comprehensive
6. The university budget plan covers the time horizon attribute
7. Your university has a budget information system

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8. Planning and budgeting is important to the success of your University
9. The budgets in your University are set relative to the competition
10. Budget targets are strong commitments and cannot be changed during the
year.
11. Budget planning process is continuous as it demands regular and frequent
attention.
Budgeting participation
12. The assumptions used on major financial and operational matters to the
Company’s internal/external stakeholders.
13. The budget process is a means of discussion among top management of the
changes occurring in the Company.
14. There is a lot of interaction between top management and department
managers in the budget process.
15. Budgeting information is often used as a means of questioning and debating
the ongoing decisions and actions of department managers.
16. You are involved in budget setting
17. You can make a decision at your level without reference to the hierarchical
authority.
18. Budgets are usually adjusted during the year to those circumstances that could
not be foreseen at the time the budget was drawn up.
19. Budgets are updated periodically to suit new business environment.
20. The Company are transparent on the budgeted performance
21. You have influence on the final budget
22. Your contribution to the university budget is important
23. Technical staff are involved in the budget process
Budgeting Control
24. Changes in the budget are difficult to get approved by the board of directors
or top management.
25. Managers are required to explain in detail budget variances on a line-byline
basis.

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26. Top management attaches a great deal of importance to interim budget
deviations.
27. Managers are required to report the actions taken to correct causes of interim
budget variances.
28. Managers are required to prepare interim performance reports, which
compare the results-to-date with the budget.
29. Managers are required to compare between current year results and the
results of previous years in the interim performance reports.
30. Unfavorable budget variances receive more attention from my superiors than
favorable variances.
31. Calculate variance between actual performance and budgeted performance
32. Technical staff are involved in the budget process

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 PART C. EXTENT OF FINANCIAL PERFORMANCE IN SELECTED UNIVERSITIES
IN FORMER CENTRAL EQUATORIAL STATE IN SOUTH SUDAN
The statements below indicate the impact of budgeting management on financial performance of
selected universities in Juba town in South Sudan. Please indicate the extent to which your
University’s financial performance has been influenced by the budgeting management adopted.
Question item 1 2 3 4 5
Financial Sustainability

1. There is growth in Tuition revenue

2. Financial liquidity is stable

3. There is reduction in the total university cost

4. There is cost effectiveness in your university

Returns on investment

5. There is favorable Return on investment

6. Detailed records of individual capital assets are kept andperiodically

balanced with the general ledger accounts

7. Your university has its financial statements reviewed by an independent

public accounting firms.

8. Your organization has controls to prevent expenditure of funds in excess

of approved, budgeted amounts

Return on asset

9. Duties of finance department staff are separated so that no one

individual has complete authority over an entire financial transaction

10. All disbursements are properly documented with evidence of receipt of

goods or performance of services.

11. All bank accounts are reconciled monthly

12. All payroll charges are checked against program budgets

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13. There procedures to ensure procurement at competitive prices

14. There is an effective system of authorization and approval of capital

expenditure

15. Detailed records of individual capital assets are kept and periodically
balanced with the general ledger accounts

Solvency

The university’s market share has increased

THANK YOU FOR YOUR COOPERATION

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