Role of Accounting Information System in Enhancing Budgetary Control in Kaltungo Local Government Area
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Background of the Study
Budgetary control is essential for ensuring the proper allocation and utilization of resources in public sector organizations, including local government areas. Kaltungo Local Government Area has faced challenges in effectively controlling its budget, often leading to overspending and inefficient resource allocation. The integration of an Accounting Information System (AIS) can enhance the efficiency of budget monitoring and control. This study will explore how AIS contributes to improving budgetary control in Kaltungo LGA.
Statement of the Problem
Kaltungo LGA has struggled with budgetary control due to manual accounting systems that are prone to errors, delays, and lack of real-time financial data. These issues have led to inefficiencies in managing public funds, resulting in budget overruns and inadequate funding allocation. This study aims to explore how AIS can enhance budgetary control in Kaltungo LGA.
Aim and Objectives of the Study
Aim: To evaluate the role of Accounting Information Systems in enhancing budgetary control in Kaltungo Local Government Area.
Objectives:
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To assess the current state of budgetary control in Kaltungo LGA.
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To determine how AIS contributes to improving budget monitoring and control.
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To identify the challenges and benefits of implementing AIS for budgetary control in Kaltungo LGA.
Research Questions
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What is the current process of budgetary control in Kaltungo LGA?
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How does AIS enhance the monitoring and control of budgets in Kaltungo LGA?
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What are the challenges and benefits of using AIS for budgetary control in Kaltungo LGA?
Research Hypothesis
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H₀: The implementation of AIS does not significantly improve budgetary control in Kaltungo Local Government Area.
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H₀: There is no significant relationship between AIS use and the effectiveness of budgetary control in Kaltungo LGA.
Significance of the Study
This study will provide valuable insights into the potential of AIS to improve budgetary control, leading to better financial management and resource allocation in Kaltungo LGA.
Scope and Limitation of the Study
The study will focus on budgetary control practices in Kaltungo LGA and the role of AIS in improving these practices. Limitations may include data availability and challenges in assessing long-term impacts.
Definition of Terms
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Budgetary Control: The process of planning, monitoring, and controlling the allocation and expenditure of financial resources.
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Accounting Information System (AIS): A system used to collect, process, and report financial information to support decision-making and financial operations.
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