Chapter I

Introduction

Student organizations were set up for various reasons; first, they

act as representatives of students to the officials of the University.

Hence, whatever the concerns of the students, the officers serve as a

bridge in bringing up the issues of the student body to the

administration. Second, student organizations are also an avenue for the

students to train themselves to become future leaders, accountants,

bookkeepers, cash custodians among others. Another is to assure the

security of the funds, safeguard the interests of the students, as well

as making sure that the funds of the students are used to improve the

student body.

Background of the Study

The study will discuss the budget practices and its relation to

the fulfillment of the student organization’s objectives in University

of Nueva Caceres. The study focuses on how the student organizations

make their budgets, its implementation and control practices and how

these can affect their targets. The researchers want to know if preparing

a budget could really meet the set objectives of a certain organization

or determining the effectivess of budgeting in an organization.

Statement of the problem

This study aims to determine and understand the relation of

Budgetary practices to the fulfillment of student organization’s

objectives in the University of Nueva Caceres

1. What is the profile of the student organizations as to:

a. Classification of the Student Organization

b. Years of Existence

c. Type of Activities Conducted

d. Sources of Funds

2. What methods do organizations apply and the factors they consider

in preparing a budget?

3. What budget practices are employed by the student organizations?

4. What are the benefits of preparing a budget with regard to the

fulfillment of the Student Organization’s Objectives?

Budgeting is not only applicable to businesses and other

organizations. Having that knowledge in budgeting enables a

person to properly manage his or her finances. This study on

budget practices
Significance of the Study

Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

The review of related literature presents the related literature

to the subject of the research study. Different researches or studies

related to the topic were provided to give clarity and explanation about

the problem associated with the topic. This chapter also discusses the

theoretical and conceptual framework which are significant for this

research.

These related literature and studies were helpful in supporting

the result of the study. Also, these were also served as a pattern on

how the study was conducted. Information regarding relationship of budget

practices to an organization’s objectives could also be found in this

chapter.

Related Literature

According to Harvard College Dean of Students Office, the first

step to building a healthy financial structure is to develop and maintain

a budget. It is a good practice to have all executive board members work

together to develop a budget in order to explore the full range of

funding sources and projected expenses. Referencing budgets from

previous years can be helpful when developing a current or projected

budget for an organization. They further discussed that a healthy

financial structure is an important factor in student organization

success and sustainability. Solid fiscal management creates a framework

that allows organizations to work proactively to accomplish their goals

and serve their communities with financially sustainable events and

programs.

Roque, in his book entitled Management Advisory Services, viewed

budget as a plan, expressed in quantitative terms, on how to acquire and

use the resources of an entity during a certain period of time. It is

also stated there the uses or advantages of budgeting in an entity. First

advantage or use is, it compels periodic planning, it forces the members

of an organization to prepare a budget in order for them to acquire and

use the scarce resources of the firm. Preparing such budget results into

a more efficient and effective utilization of such resources. Budgeting

provides a framework for performance.

Performance against budget may be part of the organization’s

appraisal system for individuals who are deemed accountable for such

performance. Progress is monitored regularly (typically monthly) by

comparing actual performance against budget. Here budget holders explain

significant favorable or unfavorable variances. Budget variance is

described as: The difference, for each cost or revenue element in a

budget, between the budgeted amount and the actual cost or revenue. Where

flexible budgeting is employed, it is the difference between the flexed

budget and the actual value (http://www.cimaglobal.com. Retrieved

September 10, 2013).

Sound financial planning is important for your organization’s

strength, stability, and permanence. Budgeting is an important planning

tool and an integral part of program planning. A budget is a projection

of income and expenses but can be revised as plans change. (University

of Wisconsin-Madison).

If an organization prepares a budget, they can be able to monitor

and determine the unnecessary or wasteful expenditures, adapt quickly

to financial changes, and achieve financial goals.