TABLE OF CONTENTS
Table of contents
- Statement of the problem
- Need for the study
- Objectives of the study
- Research questions
- Scope of the study
- Limitation of the study
- Operational definition of terms
- Summary of findings
- Areas for further study
Performance evaluation have been considered as one of the core problems facing our organization today, to measure manpower and machinery contributions to actualize the mandate of the organization. in recent years, this problems have been attributed to the large dispention of fund (cash) which most times have caused over seen in management operation, and have maintained a large negative effects not only to the organization but to the general economy to remediate this problem and associated effects management have seek ways of harnessing these operation by running a check on the budget and budgetary control.
Mr. C.a Osondu 2nd Edition of Basics and practice of cost Accounting (p.173) defined a budget as a plan of action qualified in monetary terms while budgeting refers to be act of preparing budgets. They are based on predetermined objectives and represents what is likely to happen after a careful consideration of the priorities of the organization “budgeting” can be described as the process of efficiently allocation of resources to unlimited objectives. Here a budget which could be said to be a pre-determined statement objectives during a given period, a standard for companies with the result actually achieved.
Chartered institute of management accountants (CIMA) defined a budget as a financial as a quantitative statement prepared and approved prior to a defined period of time of the policy to be pursed during that period for the purpose of a given objective.
1.1 HISTORY OF STUDY
Use of power holding company of Nigeria (PHCN) as case study
Around the world, electric industries are under going extensive restructuring the trend, which started in the united kingdom and achieve in the 1980, has rapidly spread to many countries in like America, Asia, Europe and Africa.
The main motivation of during forces for restructuring the electric industry in different countries are not the same, in some countries such as the united kingdom and other developed countries privatization of electricity has provided value to the economy, adding relieving the government burden on power, in countries where centralization control system is used (e.g central and eastern Europe) the process follows a general trends.
Power Holding Company of Nigeria (PHCN) formally known as National Electric Power Authority (NEPA) is a public corporation owned by the federal power to the general public. NEPA was formally changed to power holdings company of Nigeria (PHCN) in January 2004 in readiness for privatization. To provide the legal framework for the restructuring of electricity supply industry (ESI) the electric power sector reform but was signed into law on the 11th of March 2005.
The bill seeks to provide for the formation of successor throughout the country and that of Owerri Zone would not be left out. The classification of the branch is the same as other branches nationwide. The zone has fourteen (14) business unit under it and responsible for everything that happens in the unit. It is considered a case study to understand the effectiveness of budget and budgetary control.
Although it has been stipulated that the fund allocation to power has not been stable or insufficient, as there have generated lot more problems to the economy therefore, the budget allocation is review under flexible budget with standard casting to understand the effective use of budget and budgetary control system.