AN ASSESSMENT OF THE BUDGET AND BUDGETARY CONTROL SYSTEM

OF NON GOVERNMENTAL ORGANISATION AND ITS IMPACT ON THE

NATIONAL BUDGET (A CASE STUDY OF MINISTRY OF FINANCE)

By:

Sesay Salamatu K.

A Dissertation Submitted to the School of Post Graduate Studies in Partial Fulfillment of

the Requirement for Degree of Masters in Finance and Accounting

University of Makeni (Fatima Campus)

2022
AN ASSESSMENT OF THE BUDGET AND BUDGETARY CONTROL SYSTEM
OF NON GOVERNMENTAL ORGANISATION AND ITS IMPACT ON THE
NATIONAL BUDGET (A CASE STUDY OF MINISTRY OF FINANCE)

By:

Sesay Salamatu K.

MFA

University of Makeni (Fatima Campus)

2022

A Dissertation Submitted in Partial Fulfillment of the Requirement for Degree of Masters

in Finance and Accounting

Department of Social Science and Law

University of Makeni (Fatima Campus)

2022
 DECLARATION

I hereby declare that this thesis/dissertation is a presentation of my original research work and
that it has not been submitted anywhere for any award. Wherever contributions of others are
involved, every effort is made to fully acknowledge such contribution.

III
 CERTIFICATION OF APPROVAL

I hereby declare that this thesis truly reflects the student own work and effort and all other
sources of information used have been duly acknowledged. The thesis is submitted to the school
of post graduate studies with my approval

Head of Department

………………………………… ……………………………… …………………………...

Name Signature Date

IV
 DEDICATION

This book is dedicated to my lovely Uncle Dr. Alimamy M. Kargbo

V
 ACKNOWLEDGEMENT

I want to first of all thank God for His immense favour in seeing me through this course and
research exercise in good fate. I also want to say many thanks to our Dean of Faculty, Head of
Accounting and Finance Department, University of Makeni (Fatima Campus) for their sound
leadership in coordinating our academic activities. My unreserved gratitude goes to my able
supervisors for his relentless guidance and assistance in helping me through this research work,
I am forever grateful. I wish to extend my sincere appreciation to all my able lecturers and Tutor
as well as my colleague students throughout these years.

My heartfelt gratitude goes to: Mr. Musa Bah, Mr. Ahmed Kamara and Mariama Sesay Deputy
Assistant Superintendent of Police and other relatives, friends and other acquaintance who
have supported me throughout this academic struggle; without whose financial and moral
support I would not have been able to go through this course successfully. I pray that God duly
reward you all.

VI
Abstract
Fiscal reports have, since 2010, documented weak budget credibility in Sierra Leone

public financial management noting that the government budget does not constitute a

dependable framework for the planning, allocation and efficient use of the nation’s

resources. The purpose of this study was to develop a budgetary reform agenda and the

research question that guided the study related to the reasons for the high monetary

variances between the approved budget and the year-end financial reports. Government

budgets and financial reports were reviewed for 2010-2014 and senior government

officials were interviewed regarding the main stages of the annual budgetary process.

The new public management model constituted the overarching conceptual foundation

based on a qualitative case study of government ministries and the House of Parliament.

The baseline criteria for efficient government budgeting developed by the Organization

for Economic Cooperation and Development served as the analytical framework from

which four themes were established to analyze the planning, preparation, approval and

the execution of the annual budget. The main finding was that the government’s budget

exhibited a lack of credibility given the significant variances between the budget and the

actual outcomes; and the ineffective role of the legislature. As part of the financial

management reforms needed, the government would have to rewrite the budget law and

recruit experienced staff to strengthen the legislative budgetary function. These changes

could contribute to the enhancement of value in the government’s use of taxpayers’

monies, causing improved economic and financial reporting and thereby promoting

positive social change for the people of Sierra Leone.

VII
TABLE OF CONTENTS
Chapter Page No
Title Page i

Declaration iii

Certification of Approval iv

Dedication v

Acknowledgement vi

Abstract viii

CHAPTER ONE INTRODUCTION TO THE STUDY

1.0 Introduction 1
1.1 Background of the Study 1-2
1.2 Problem Statement 2
1.4 Aims and Objectives of the Study 3
1.4.1 Aim of the Study 3
1.4.2 Objectives of the Study 3
1.5 Research Questions 3
1.6 Analytical Framework 3-4
1.7 Nature of the Study 4-5
1.8 Definitions 5
1.9 Assumptions 5
1.10 Scope and Delimitations 5-6
1.11 Limitations 6
1.12 Significance of the Study 7
1.12.1 Significance to Practice 7
1.12.2 Significance to Theory 7-8
1.12.3 Significance to Social Change 7-8
1.13 Summary and Conclusion to Chapter One 8

VIII

CHAPTER TWO LITERATURE REVIEW

2.0 Introduction 9
2.1 Conceptual Foundation 10-11
2.1.1 Objectives of Budgets 11
2.1.2 The Budgetary Function 12
2.2 Overview of the Conceptual Framework 12
2.2.1 Management of the Public Sector 13
2.2.1.1 Traditional/Old Model of Public Administration 13
2.2.1.2 The New Public Management 13-14
2.3 Budget Reform Theory 15
2.3.1 Organizational Life Cycle Theory 16
2.3.2 The Government Budget Cycle 16-17
2.4 Medium-Term Expenditure Framework (MTEF) 18
2.5 Public Expenditure Management and Control 25-27
2.6 In-Year Monitoring and Control of Cash Flow 27-29

CHAPTER THREE RESEARCH METHOD

3.0 Introduction 30
3.1 Research Design and Rationale 30
3.2 Quantitative Research Design 30
3.3 Qualitative Research Design 30
3.3.1 Rationale for a Qualitative Research Design 31
3.4 The Case Study Research Approach 32
3.4.1 Arguments For and Against Case Studies 32
3.4.2 Justification for the Case Study Approach 32
3.4.3 Arguments against Other Qualitative Research Approaches 33
3.5 Role of the Researcher 33
3.6 Methodology 34
3.6.1 Participant Selection Logic 34-36
3.6.2 Instrumentation 36-38
IX
3.7 Data Analysis Plan 38-41
3.8 Summary and Conclusions 42

CHAPTER FOUR RESULTS

4.0 Introduction 43
4.1 Research Setting 43-44
4.2 Demographics 44
4.3 Data Collection 45-46
4.4 Data Analysis 47-54
4.5 The Medium-Term Expenditure Framework Process 55-70
4.6 Summary 70-71

CHAPTER FIVE DISCUSSION, CONCLUSIONS, & RECOMMENDATIONS

5.0 Introduction 72
5.1 Interpretation of Findings 72-77
5.2 Recommendations for Further Studies 77-84
5.3 Conclusions 84