Ayemba Jackline

UGANDA COLLEGE OF COMMERCE, TORORO
THE IMPACT OF BUDGETARY CONTROL ON SERVICE DELIVERY IN
MUNICIPAL COUNCILS
CASE STUDY: BUSIA MUNICIPAL COUNCIL
AYEMBA JACKLINE
UBB058/2018/BDA/159
A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF UGANDA DIPLOMA
IN BUSINESS STUDIES OF UGANDA BUSINESS AND
TECHNICAL EXAMINATIONS
BOARD (UBTEB)
DECEMBER, 2020
DECLARATION
I AYEMBA JACKLINE do here by declare that this research report is my own work and has
never been submitted to any university or tertiary institution and was written in respect of the
rules and guidelines of Uganda Business and Technical Examinations Board.
Signature…………………………………..
AYEMBA JACKLINE
UBB058/2018/BDA/159
Date……………………………….
ii
APRROVAL
This is to certify that this research report written by AYEMBA JACKLINE under the topic “the
impact of budgetary control on service delivery in municipal councils a case study of Busia
Municipal Council” has been prepared under my supervision and is now ready for submission to
Uganda Business and Technical examinations Board with my approval.
Signature……………………………………
Mr. GULOBA SAMUEL

(Academic supervisor)
Date…........................................................
iii
DEDICATION
This research report is dedicated to my parents Mr. Benjamin Omondi Ekesa and Mrs. Judith
Nanjekho Omondi for the support rendered to me during my studies.
iv
ACKNOWLEGEMENT
My sincere appreciation goes to the almighty God for opening my ways financially and helping
me through writing my report.
Great thanks go to the management of Busia municipal council for allowing me to carry out my
industrial training in their place. More thanks go to the administration of Uganda college of
commerce Tororo for their efforts rendered to me in organizing my industrial training report.
My great thanks also go to my college supervisor Mr. Guloba Samuel for his guidance,
encouragement and support towards writing my report. Special thanks go to my dear, my
brothers and Sisters for the support and encouragement they granted to me.
Lastly I appreciate my friends who have been there for me during my research study. May the
Almighty lord be with them all.
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TABLE OF CONTENTS
DECLARATION.............................................................................................................................ii
APRROVAL..................................................................................................................................iii
DEDICATION................................................................................................................................iv
ACKNOWLEGEMENT..................................................................................................................v
TABLE OF CONTENTS...............................................................................................................vi
LIST OF TABLE............................................................................................................................ix
LIST OF ACRONYMS..................................................................................................................xi
ABSTRACT..................................................................................................................................xii
CHAPTER ONE..............................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.0 Introduction................................................................................................................................1
1.1 Background of the study............................................................................................................1
1.2 Statement of the problem...........................................................................................................3
1.3 Purpose of the study...................................................................................................................3
1.4 Objectives of the study..............................................................................................................3
1.5 Research questions.....................................................................................................................3
1.6 Scope of the study......................................................................................................................4
1.6.1 Subject Scope..........................................................................................................................4
1.6.2 Geographical Scope................................................................................................................4
1.6.3 Time Scope.............................................................................................................................4
1.7 Significance of the study...........................................................................................................4
CHAPTER TWO.............................................................................................................................5
LITERATURE REVIEW................................................................................................................5
2.0 Introduction................................................................................................................................5
2.1 Factors affecting Budgetary Control.........................................................................................5
2.2 Service delivery.........................................................................................................................7
2.3 Relationship between budgetary control and Service delivery................................................11
2.4 Conclusion...............................................................................................................................12
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CHAPTER THREE.......................................................................................................................13
METHODOLOGY........................................................................................................................13
3.0 Introduction..............................................................................................................................13
3.1 Research design.......................................................................................................................13
3.2 Study Area...............................................................................................................................13
3.3 Study Population......................................................................................................................13
3.4 Sample size..............................................................................................................................13
3.5 Sampling Technique................................................................................................................14
3.6 Sources of Data........................................................................................................................14
3.6.1 Primary data..........................................................................................................................14
3.6.2 Secondary data......................................................................................................................14
3.7 Data collection methods/Instruments......................................................................................15
3.7.1 Questionnaire........................................................................................................................15
3.7.2 Observation...........................................................................................................................15
3.7.3 Interview guide.....................................................................................................................15
3.8 Data collection procedure........................................................................................................15
3.9 Data analysis............................................................................................................................16
CHAPTER FOUR.........................................................................................................................17
PRESENTATION, ANALYSIS, INTERPRETATION AND DISCUSSION OF FINDINGS....17
4.0 Introduction..............................................................................................................................17
4.1 Response Rate..........................................................................................................................17
4. 1 Background of the respondents..............................................................................................17
4.2 Budgetary Control...................................................................................................................19
4.3 Service Delivery......................................................................................................................23
4.4 Relationship between budgetary control and service delivery................................................26
4.5 Examining the impact of budgetary control on service delivery.............................................29
4.6 Interpretation............................................................................................................................29
CHAPTER FIVE...........................................................................................................................30
DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS..............................................30
5.0 Introduction..............................................................................................................................30
5.1 Summary of findings...............................................................................................................30
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5.1.1 Summary of findings on budgetary control..........................................................................30
5.1.2 Findings on Service Delivery...............................................................................................30
5.1.3 Findings on budgetary control and service delivery.............................................................31
5.2 Conclusions..............................................................................................................................31
5.3 Recommendations....................................................................................................................31
5.4 Limitations and Delimitations of the study.............................................................................32
5.5 Areas for further research........................................................................................................32
REFERENCES..............................................................................................................................33
Appendix A: Questionnaire...........................................................................................................35
Appendix B: Research Budget.......................................................................................................39
Appendix C: Time Frame..............................................................................................................40
LIST OF TABLE
viii
Table 4.1: The age group of the respondents.................................................................................17
Table 4.2: The gender of the respondents......................................................................................18
Table 4.3: The marital status of the respondents...........................................................................18
Table 4.4: The education levels of respondents.............................................................................18
Table 4.5: The length of service at the organization.....................................................................19
Table 4.6: Most organizations have adopted broad budgetary control that ensures that the entire
budget system is a control system.................................................................................................19
Table 4.7: Organizations can use budgetary control in forecasting techniques in order to make
plan and budget for the future........................................................................................................20
Table 4.8: Management of the organizations implements budgetary control to prevent losses
resulting from theft, fraud and technological malfunction............................................................21
Table 4. 9: To ensure the firm’s resources are not wasted, the organization must be able to come
out with an effective budgeting system.........................................................................................21
Table 4.10: Budget also can be used an indicator of the performance of the ruling government. 22
Table 4.11: Public services are given to hospital, schools accessible in Busia Municipal Council
.......................................................................................................................................................23
Table 4.12: Public service are given priority in the council budget..............................................23
Table 4.13: The amount allocated to service delivery are portrayed in the quality of service......24
Table 4.14: It is very difficult to measure the level of effectiveness of service delivery in the
municipal council especially Busia Municipal Council................................................................24
Table 4.15: There is proper garbage management in the council.................................................25
Table 4.16: The division leadership is informed about the importance of budget management..25
Table 4.17: Budgetary control involves the preparation of a budget and recording of actual
achievements improves service delivery.......................................................................................26
Table 4.18: A budget provides a detailed plan of action for an organization over a specified
period of time which leads to proper service delivery...................................................................26
Table 4.19: Budgetary control helps to reduce on costs and achievement of goals is enhanced and
thus service delivery......................................................................................................................27
Table 4.20: The implementation of budgetary procedures leads to improved service delivery....28
Table 4.21: Budgetary control as a proven management tool helps organization management and
improves service delivery..............................................................................................................28
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Table 4.22: Spearman’s correlation on the impact of budgetary control on service delivery in
Busia municipal council................................................................................................................29
LIST OF ACRONYMS
UBTEB................................................Uganda Business Technical Examinations Board
x
UCC.....................................................Uganda College of Commerce
MDG…………………………………Millennium Development Goals
xi
ABSTRACT
The research topic was to establish the impact of budgetary control on service delivery in Busia
municipal council, Busia district. The study consisted of the following objectives; to establish the
level of budgetary controls in Busia municipal council, to determine the level of service delivery
in Busia municipal council, to analyze the relationship between budgetary control and service
delivery in Busia municipal council.
Chapter one covered introduction, background to the study, statement of the problem, objectives
of the study, research questions, and scope of the study
Chapter two is a focus of literature of writers on budgetary control, service delivery, the
relationship between budgetary control and service delivery and conclusion
The methodology consists of research design, the study population, sampling design, data,
sources which included both primary and secondary source, data collection instruments, which
included questionnaire, data analysis and presentation, study sample and limitation of the study.
The researcher presented, interpreted, and discussion of the study findings in chapter five. The
researcher concluded and recommended what needs to be done for purpose of this research.
ρ= 6∑d²
n (n²-1)
Where n= number of pairs of two observations

d= difference between the rank of the values of corresponding variable
Service delivery was seen to increase due to the strong relationship implying that service
delivery in is greatly attributed to the effectiveness on the budgetary control aspects carried out
by the administration and employees of Busia municipal council. Improved service delivery has
greatly improved due to the advent of budgetary control and expertise.
From the information, it can be observed that there is a very strong positive and perfect
relationship between budgetary control and service delivery in Busia municipal council with a
correlation of 0.775. Meaning that the variable, that is budgetary controls and service delivery
are strongly related
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CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter highlighted the background of the study, statement of the problem, purpose of
the study, objectives of the study, research questions, scope of the study and the significance
of the study.
1.1 Background of the study
In the business world today, Municipal Councils have developed a variety of processes and
techniques designed to contribute to the planning and control functions. One of the most
important and widely used of these processes is budgeting. Budgeting involves the
establishment of predetermined goals, the reporting of actual service delivery results and
evaluation of performance in terms of the predetermined goals (Churchill, 2011). Budgetary
control systems are universal and have been considered an essential tool for financial
planning. Jayamaha, (2012) explained that the purpose of budgetary control is to provide a
forecast of revenues and expenditures this is achieved through constructing a model of how
our business might perform financially speaking if certain strategies, events and plans are
carried out.
Carr and Joseph, (2010) asserts that Municipal Councils use budget control as the primary
means of corporate internal controls, it provides a comprehensive management platform for
efficient and effective allocation of resources. Budgetary controls enable the management
team to make plans for the future through implementing those plans and monitoring activities
to see whether they conform to the plan, effective implementation of budgetary control is an
important guarantee for the effective implementation of budget in the municipal council.
Dunk, (2009), states that budgetary control is the process of developing a spending plan and
periodically comparing actual expenditures against that plan to determine if it or the spending
patterns need adjustment to stay on track. This process is necessary to control spending and
meet various financial goals. Municipal Councils rely heavily on budgetary control to
manage their spending activities, and this technique is also used by the public and the private
sector as well as private individuals, such as heads of household who want to make sure they
live within their means.
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The extent to which budgetary control influence the service delivery of organizations is
determined by the way in which budgets are used by Municipal Councils (Drunk, 2011). If
budgets are primarily used as a planning tool, then budget planning makes controls easier
hence resulting to improved performance. In contrast, if budgets are mainly used as a control
mechanism, then it is improbable that budget planning will result to service delivery.
Municipal council’s various departments work together through the co-ordination of various
executives and subordinates which leads to achievement of budgetary targets (Waren, 2011).
It is therefore important to net that budgetary control process entails budget preparation;
budgetary control hence plays a major role in a corporate financial planning.
Oboth (2011), asserts that service delivery is a system or arrangement under which there is a
periodical performance of supplying public service. On the other hand, service delivery is a
philosophy in which all employees of the company feel and act accountable for creating
satisfied customers. It is further emphasized that everyone in the organization is accountable
when it comes to public satisfaction (Reilly, 2013).
Budgetary control is a management tool used by public institutions to effectively manage

public finances in order to efficiently meet their service delivery goals. Siegel and Allison
(2011) stated that available literature on budgetary control suggests that budgets from an
important basis for financial control and service delivery. Budgetary control in government
entities entails financial planning, controlling, financial evaluation and performance of
budgets in order to efficiently achieve the public finance management goals, on proper
resource allocation as per proposed budgets (Jones et al, 2009). The rationale behind
budgetary control is to present organization’s estimations of revenue and expenditure through
construction a model to show its financial plans indicating how certain strategies and events
have been carried out which in turn facilities measurements of actual financial operation
against the forecast.
Municipal Councils have shifted focus to budgetary control as a way of enhancing

effectiveness in their background to services. Recognizing the role of budgetary control has
gained attention which has led some organizations the study to establish departments for
implementation. This has attributed budget monitoring and project implementation
committees as an integral part of the administrations to Municipal Councils (Busia Municipal
Council annual report, 2017).
According to Ronald, Michael & Frank (2008) there is need to find out how budgetary
control has assisted Municipal Councils in planning and controlling their activities for better
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service delivery. Most of the Municipal Councils show evidence of financial challenges like
low revenues, poor service delivery and poor garbage collection among others. It is not clear
whether the challenge is due to inadequate funding or poor financial management. Research
has been done on the effect of budgetary control on service delivery of Municipal Councils in
Busia district (Oduor, 2012), but there are differences in regulations and policies in the
operations. So, there still remains a gap to be researched on the effect of budgetary control as
a tool on service delivery in Municipal Councils in Busia district. Therefore the researcher is
still investigating why service delivery is still poor though budgetary control exits or there are
other factors determining its performance.
1.2 Statement of the problem
Budgetary control is used by most organizations as a tool for proper management of

resources in the organization and its activities. An organization with well formulated
budgetary controls easily assigns its managers the responsibility for the use of designated
financial resources to achieve their assigned operational objectives. Budget controls provides
comparisons of actual results against budget plan. Departures from the budget can then be
investigated and the reasons for the differences can be divided into controllable and non-
controllable factors, this essential is reducing inefficiencies and poor budget practices leading
to efficient allocation of scarce resources (Joshi and Abdulla, 2016).
Despite the above contribution of budgetary control, Busia Municipal Council faces problems
like poor service delivery, poor garbage collection, and delay in financial reports, so, there
still remains a gap to be researched on the effect of budgetary control as a tool on service
delivery in Municipal council.
1.3 Purpose of the study
The purpose of the study was to establish the impact of budgetary control on service delivery
of Busia Municipal Council.
1.4 Objectives of the study
i. To analyze the factors affecting budgetary control in Busia Municipal Council.

ii. To assess the factors that lead to service delivery in Busia Municipal Council.
iii. To analyze the relationship between budgetary control and service delivery in Busia
Municipal Council.
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1.5 Research questions
i. What are the factors affecting budgetary control in Busia Municipal Council?
ii. What are the factors that lead to good service delivery in Busia Municipal Council?
iii. What is the relationship between budgetary control and service delivery in Busia
Municipal Council?
1.6 Scope of the study
1.6.1 Subject Scope
The study covered the effect of budgetary control on service delivery.
1.6.2 Geographical Scope
The study was carried out from Busia Municipal Council located in Busia district along
Majanji road
1.6.3 Time Scope
The study was conducted for a period of 5 years from 2014 to 2019; this was considered by a
researcher so as to access all necessary information about the study.
1.7 Significance of the study
The academicians will also use the findings of this study to embark on a related study. In
other terms, the study findings in this research will act as reference for other future academic
researchers.
The information will be useful for policy makers, planners and decision makers in different
institutions dealing with cash.
The findings and recommendations will also be useful to the management of Busia Municipal
Council involved in budgetary control to determine proper service delivery towards
attainment of financial freedom.
The study will help the government in correcting the areas of weakness as far as service
delivery is conducted.
The study will enable the researcher to fulfill one of the requirements for the award of a
Diploma in Business Studies of Uganda Business and Technical Examination Board
(UBTEB)
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter consisted of the literature review on the factors affecting budgetary control,
service delivery, the relationship between budgetary control and service delivery and the
conclusion.
2.1 Factors affecting Budgetary Control
Hokal and Shaw, (2012) asserts that most organizations have adopted broad budgetary
control that ensures that the entire budget system is a control system, which it is the
formation of a prior, during and after the whole process of control system through the budget
preparation, budget evaluation, reward and punishment by monitoring of budget execution.
With a narrow budgetary control, an organization can prepare a good budget as a basis for
performance management and standards on a regular basis in order to compare actual
performance with the budget to analyze differences in the results and take corrective
measures, which mainly involves the process of budget implementation, evaluation and
control.
Epstein and McFarlan, (2011), state that budgetary control is a system of management control
in which the actual income and spending are compared with planned income and spending, so
that the firm can make decisions if plans are being followed and if those plans need to be
changed in order to make a profit. Budgetary control is the one of best technique of
controlling, management and finance in which every department’s budget is made with
estimated data. Organizations can use budgetary control in forecasting techniques in order to
make plan and budget for the future.
Suberu, (2010) notes that the management of the organizations implements budgetary control
to prevent losses resulting from theft, fraud and technological malfunction. These instructions
also help management to ensure that expenses remain within budgetary limits. The
importance of budgetary control is that it can be implemented by three departments in an
organization to enhance effectiveness.
5
In reference to Robinson and Last (2009), budgeting system is a tool used by the firm as a
framework for their spending and revenue allocation. To ensure the firm’s resources are not
wasted, the organization must be able to come out with an effective budgeting system. This is
important as it ensure that the outputs produced and services delivered achieve the objectives.
According to this theory, a good budgeting system must be able to addresses the efficiency
and effectiveness of the organization’s expenditure. A good budget is determined by the level
of income of the organization (Robinson, 2009).
A firm that is able to run its operations efficiently is able to allocate more revenues for the
organization. This is achieved through cutting costs in order to increase the quality and
quality of goods and service offered by the firm. However, if an organization has lesser
income they might have to find a way to fund their estimated budget by borrowing and tax
restructuring (Robinson and Last, 2009). That is why the budget is mostly regarded as the
control of expenditure. As the total amount of the annual expenditure; the organization must
not exceed the allocation of budget.
Sawhill and Williamson, (2001) contends that in some countries for example Malaysia the
budgeting process is done through a political process which is mainly done in the parliament.
Budget is important not only as political tools but also as a pledge between the ruling
organization and the public as their commitment to satisfy the need and demand of the
people. Budget also can be used an indicator of the performance of the ruling government. It
is a statement of whether they are competent in administering the organization and the
national resources. One of the models of budgeting system is Performance Based Budgeting
System.
Robinson and Last (2009), performance-based budgeting system (PBBS) aims to improve the
efficiency and effectiveness of public expenditure. Unlike other budgeting system, PBBS use
the resources to ensure that it can help in achieving the expected results and outcome based
on the targeted area or planning. In simple words, the PBBS is seen as managing for results
(Marc Robinson and Duncan Last, 2009). According to Perrin (2012), a budgetary control
program will be successful if it has a complete acceptance and support of the persons who
occupy important management positions. If lower personnel notice that top management is
not serious about budgetary controls, they put up a nonchalant attitude towards the system.
Elger, (2007) was of a view that budgetary control is known as the way of controlling
organization in which different budgets are made and with these budgets, organization finds
its weak points and then it improves these weak points. Budgetary control involves analyzing
the results of the budget once you implement it, where different techniques are used such as
6
variance analysis, responsibility accounting, adjustment of funds, Zero Based Budgeting
(ZBB).
Budgetary control is a tool implored by management to keep track of actual performance to

ensure budgeted standards are met (Kpedor, 2012). It entails a repetitive circle of planning
and control which is usually followed by appropriate information about actual result to the
management for comparing them against the budgeted and initiating a control action if
necessary (Defranco, 2017). Absence of effective budgetary control breeds disregard for laid
down procedures, loss of focus and shoddy coordination of activities and these are capable of
crippling an organization.
2.2 Service delivery
Berkoutz (2014) defined service delivery as a provision of intangible items such as services,
Airtime, trips, telephone calls that an organization provides to their customers. To obtain
service from the municipal council, customer/ public needs to exchange money for something
else of value such as their own time. He classified service into intangibility, inconsistency,
instability and inventory. He further stressed that service delivery is a process used to offer
service to the customers or people by private organizations or municipal councils.
Ferrel (2014) states service delivery as the tangible product involving a deep performance or
an effort that cannot be physically passed. He further noted that a few products can be
classified as per product for example when consumers purchase occur is a physical item for
transport but the warranty associated with the purchase is a service.
Balunywa (2008) confirms that before determining the service delivery of the organization
should be a measure of increased access to resource of the organization. The municipal
council improves on the facilities in order to extend service to the public. However, Trench
states that it is very difficult to measure the effectiveness of service delivery of the municipal
council and that most organization are providing largely intangible service that are not only
hard to measure but also restrict qualitative feedback to clients.
According to the chartered institution of marketing (2011) asserts that Poverty takes many
forms, and demands a corresponding breadth of responses. Making services accessible to the
poor is integral to the effort to achieve the Millennium Development Goals (MDGs). Basic
government services allow people to be productive members of society; therefore, the
provision of fundamentals like agricultural support and irrigation, roads, health, and primary
education are essential for accelerating attainment of the MDGs. For citizens that face
7
adversity, the provision of social protection is particularly important. Government services in
the fields of economic development and culture, for instance, are also deemed to be ‘public
goods’ that bring benefits to individuals and communities.
Ferrel (2014), states that effective service delivery requires good governance and
performance management, so that funds are directed quickly to the most urgent needs, and
incentives enable service providers to make good use of available resources. Christopher
(2009) in his article guarantee suggests that the municipal council guarantees the public about
the provision of quality service. He defines service guarantee as a situation where service
firms promise their customers with the provision of quality service and failure to do so the
unsatisfied customers are compensated with stated guarantee.
Carl (2010) stated that the substantial improvements in the provision of public services are
keys to achieving most of the MDGs. For example, most child deaths in developing countries
so the municipal councils prevents them through the implementation of effective and low-
cost public health interventions, such as the provision of free vaccinations. As such, attaining
the MDGs will require financial resources, although the solution is not just about allocating
more money. Effective delivery is situation-specific and requires tailored delivery
arrangements that fuse the efforts of state and non-state actors. Each of these actors also
needs to better assess their challenges and determine suitable and sustainable service delivery
responses.
Municipal research and service centre (2013) added that service delivery in municipal
councils is done through collecting refuse and disposing it or lighting the streets. Whitaker
(2010) conquers with this argument and observes that depending on the kind of service being
offered, each service has a primary intervention of transforming the customers and that the
client himself or herself is the principle beneficially. Whether it is learning new ideas or new
skills (education), acquiring healthier habits or changing one’s outlook on family or society
(social service), only the individual served can accomplish the change.
Ghatack (2011) argues that municipal council delivers service by a review of relationship
between beneficiaries, politicians and service providers (such as bureaucrats, doctors and
teachers). They insist that it is necessary to analyze the incentives that govern the behavior of
politicians and service providers, if services are to match the best interest of the beneficiaries.
The authors further argue that the main concern in public service provision is now the
obligation of the different parties is defined and enforced.
8
Aminuzzaman (2010) argues that municipal councils target service delivery primarily
through capacity building of the ‘supply’ side of service provisioning, such as institutional
strengthening, strategic planning, training and increased budgetary allocations. A common
feature of such programmes is their ‘top-down’ bias of formulation and implementation,
official protestations to the contrary notwithstanding. This top-down bias is premised on
pressure from central government and development partners to institute reforms and disburse
funds and the ‘expert-driven’ generation of the data that is informing the implementation of
the reforms.
Gwayi (2010) adds that the strengthening of service delivery is an integral part of the
municipal council’s Poverty Reduction Strategy. Improved service delivery is also the
overriding objective of the country’s major reform programmes, including the Municipal
council Reform Program, the Public Sector Reform Program, the Public Financial
Management Reform Program and the Legal Sector Reform Program. Other reform
programmes, such as the Health Sector Reform and the Primary Education Development
Program, target improvement of service delivery directly.
A study conducted by Aminuzzaman (2010) in Bangladesh revealed that some of the critical
institutional challenges facing service delivery at the level of local authorities include limited
manpower and resource. Considering the work load and responsibilities local authorities also
lack logistic supports like computers and transport and resources to design and run innovative
service delivery in areas like employment generation, health and education.
The author further found out that there is a problem of coordination between local authorities
and extension service on workers of the government at the field level. The author noted that
there are no formal links even between the standing committees of the local authorities with
the extension workers of the corresponding line ministries of the government. Such isolation
makes lots of the service of the service of the local authorities by dysfunctional and
ineffective. This also deprives the local authorities of getting technical assistance and other
professional support from the government line agencies.
Aminuzzaman’s study (2010) were; lack of appropriate rules and regulations, ineffective
monitoring, lack of accountability and transparency, political manipulation, non-cooperation
from central government based bureaucracy, limited community understanding, exclusion of
women, limited and insecure revenue base, highly centralized project and programmed
design, poor relationship between administration and elected representatives.
9
A similar study was conducted in UK by sarschar and Moore (2016) on improving service
delivery in facilities management. The major challenges that hindered service delivery were
identified as, lack of strategic awareness; despite their being an important national plan of
directives and processes, the study revealed that many staff at a supervisory and auctioneer
level was unaware of the issues raised within it and the impact it should have been having on
their day to day operational.
Lack of capacity since authorities’ operational staff is unaware of both national controls
assurance standards requirements and their respective responsibilities. Another issue
application to all service was performance monitoring because although each of the service
had monitoring because although each of the services had monitoring systems in place, there
was an overall lack of consistency and integration between the various systems in place.
Poor coordination process for determining service requirements, planning delivery and
managing suppliers, the directorates coordination was still based on informal mechanisms,
including face to face communication and meetings and the different service groups lacked
clear and enforceable performance standards.
Bateman (2011) states that for service delivery to be achieved in Busia Municipal Council
there must be a relationship between the leaders and the subordinates. Leaders sometimes
attribute unsatisfactory service delivery to their subordinates hence this is to some extent seen
Busia Municipal Council.
Before determining the level of service delivery of the municipal council, a measure of
increased access to resource, the municipal council must improve on the existing facilities in
order to extend to the better service delivery. Staff competence also influences the level of
service delivery in the municipal council, since staff must have the necessary skills,
knowledge and attitude to ensure effective service delivery (Balunywa, 2006).
Jennifer (2016) service delivery as it is necessary to go beyond studies of quality dimension

as to also take into account the inherent characteristics of service delivery and that factors
that differential one service experience from another.
It is very difficult to measure the level of effectiveness of service delivery in the municipal
council especially Busia Municipal Council which does not have a clear cut verifiable output
that led themselves to objectives and measurement (Zawaki, 2009). Most organizations
producing both tangible and intangible products by putting in place an effective electronic
budgetary control which in the long run enhances on the level of service delivery.
10
Kaplan, (2013), stated that reliability determine service delivery in organization. This is done
when good and services are reliable for supply to the market. Pollamen (2010) argued that
competence is a determinant of service delivery because the more the industry and the
customers are competent services is well delivered.
Prendergast (2012) was of view that responsiveness determines service delivery in an

organization since it boosts the supply of goods and services where customers are able to
respond to their supplier adequately.
2.3 Relationship between budgetary control and Service delivery
Budgetary control involves the preparation of a budget, recording of actual achievements,

ascertaining and investigating the differences between actual and budgeted performance and
taking suitable remedial action so that budgeted performance may be achieved effectively so
as to improve on service delivery (Controllers report, 2011). Budgetary control is the system
of controlling costs through budgets. It involves comparison of actual performance with the
budgeted with the view of ascertaining whether what was planned agrees with actual
performance (Coates, 2005).
To achieve effectiveness in budget preparation the management team of the firm should
ensure the budgets for the allocated projects are implemented with the stipulated time and
costs to enhance efficiency (Municipal council policy, 2013). The basic objectives of
budgetary control are planning, coordination and control to enhance service delivery. It’s
difficult to discuss one without mentioning the other (Arora, 2015). A budget provides a
detailed plan of action for an organization over a specified period of time which leads to
proper service delivery.
Churchill, (2011) contends that by implementing proper budgetary control planning, the firm
is able to reduce costs and improve on quality of its services based on its budgetary
allocations which indicates proper service delivery. Budgetary control helps to reduce on
costs and achievement of goals is enhanced and thus service delivery (Mathis, 2009). By
budgeting, managers coordinate their efforts so that objectives of the organization harmonize
with the objectives of its parts. Control ensures that objectives as laid down in the budgets are
achieved. Budgets project future service delivery which enables evaluating the financial
viability of a chosen strategy. In most organizations this process is formalized by preparing
annual budgets and monitoring performance against budgets. Budgets are therefore merely a
collection of plans and forecasts (Silva and Jayamaha, 2012).
11
They reflect the financial implication of business plans, identifying the amount, quantity and
timing of resource needed (Shields and Young, 2013). The implementation of budgetary
procedures leads to improved service delivery. The establishment of short to medium-term
objectives serves the purpose of providing estimates of future sales revenues and expenses, to
provide short and long-term objectives for a coordinated management policy. Benchmarks
for management and task controls are provided by comparing actual results with budgeted
plans and to take corrective actions if necessary (Sharma, 2012).
Phyrr, (2010) explains that compared to the traditional budgeting system which focuses on
the amount of inputs, performance based budgeting system focused more towards the
outcome. As the organization spending stretches annually, it is important to understand the
nature of spending of the organizations which is always being stated in the budget. It is
therefore essential for the organization to understand it s budgeting system and give priority
to urgent matters that require attention. it is important for the firm to determine the patterns of
the expenditure of the organization and its service delivery.
Garri Son & Norren, (2000), asserts that the need for better performance in public institutions
requires proper financial standing in order to run operations. Budgetary control as a proven
management tool helps organization management and improves performance of a public
institution. In the absence of budgetary control too many managers spend all of their time
dealing with daily demands.
Budgets and the budgeting process has become a mainstay, given that a sound budget
provides both financial and operational benefits. However, the process does not go without
some myriad of challenges that can stifle the achievement of the full benefits of budgets and
budgetary control unless adequately handled. Margah (2005) contends that there are new
competitive realities and rapidly changing environments and complexities that require
management to apply flexible and adaptable budgetary planning and control systems which
affect service delivery.
2.4 Conclusion
Budgets are considered to be the core element of the control-process and consequently vital
part to the umbrella concept of service delivery measurement. Research has shown that there
is no single approach to budgeting suitable for all businesses to improve service delivery.
Instead, the suitability of a particular approach is argued to be contingent upon characteristics
of a business including its size, strategy, structure, and also management’s perception of the
uncertainty of the environment within which the business operates to best link its budgetary
12
control procedures that is planning, evaluation, monitoring and control to affect service
delivery in Municipal Councils.
CHAPTER THREE
METHODOLOGY
3.0 Introduction
This chapter described the research design, area of the study, population of the study, sample
size and sampling methods, Source of data, data collection methods, data collection
procedures, data analysis and presentation.
3.1 Research design
The study used descriptive research design to get both qualitative and quantitative data. The
qualitative research design is employed throughout the whole research development with
objective findings creation and subsequently advancing to the study questions. The study
involved the evaluating the effect of budgetary control on service delivery of Busia
Municipal Council design was used to establish factors affecting Budgetary control and
service delivery in Busia Municipal Council.
3.2 Study Area
The area of the study was Busia Municipal Council, Busia District located along Majanji road
because it is where the researcher discovered that there is ineffective service delivery.
3.3 Study Population
The researcher targeted a population size of 35 people consisting of Top administrators,

Finance staff, and audit staff, Heads of department, operating staff, and community members.
The identified population members were appropriate in having data on budgetary control and
service delivery.
3.4 Sample size
This sample size was selected from different department of the organization such as 30
members of accounting and finance department, internal audit department, administration and
other departments within the organization and community members.
13
Table 3.1: The sample size of the respondents
Category Frequency Percentage

Administration 3 10
Accounting and finance department 4 13.3
Internal audit department 2 6.7
Other departments 15 50
Community members 6 20
Total 30 100
Source: Primary data
3.5 Sampling Technique
This was the process of systematically selecting part of the study for the study. This study
was carried out using systematic sampling where there is selection of sampling units at equal
interval after all to their units. The researcher used stratified random sampling technique
during the study. Stratified random sampling technique is a process of sample selection that
involved dividing the population into none overlapping groups called strata or selecting the
sample from each stratum using a simple random technique. This was because it was not
possible to survey the entire population due to financial and time constraint. These methods
of sampling helped the researcher to obtain information from widely scattered geographical
area of Busia Municipal Council.
3.6 Sources of Data
3.6.1 Primary data
This involved the researcher going to the field to obtain the necessary information from the
field by observing, interviewing, and questionnaires to respondents. The researcher employed
questionnaires that facilitated the provision in terms of quantity and quality of raw data
compiled. All the methods of data gathering availed various merits and disadvantages to the
study. It provides first-hand information directly from the respondents. Primary data gives
accurate and data which is free from bias.
14
3.6.2 Secondary data
The researcher obtained the data from already existing information like magazines,
newspapers, text books, historical document website and conferences. This was aimed at
supplementing on the primary data already collected to enable the researcher obtain more
information regarding the study variables. Effortlessness and minimal costs is the benefit
obtained when secondary data is applied during periods of data collection. There is minimal
time put during data compilation in comparison to dependence on primary data compilation
methods.
3.7 Data collection methods/Instruments.
3.7.1 Questionnaire
This was a method of data collection where questionnaires are sent to persons concerned with
the questions to answer the questions and to return the questionnaires to the researcher.
The tool was used to collect information from respondents other than clients of the
organization. The questionnaire method of data collection is used because of being cheap and
that the method collects responses with minimum errors and high level of confidentiality.
3.7.2 Observation
The researcher used the observation method to access the Busia Municipal Council service
delivery reports. Observation method is sought by the way of investigators or research on
direct observation without asking the respondents or sample units of interest.
This method was good because the information as accurately happening and it is not
interfered by either future intentions or passed behaviors. The researcher used eyes to get and
obtain information which is free from bias. None response errors are limited because of
interactions.
3.7.3 Interview guide
This method of data collection is where a researcher is brought into contact with the
respondent and asks him or her various questions about the subject under study. The
researcher carried out face to face interaction with the respondents in order to obtain
information that was relevant and adequate to this research.
15
3.8 Data collection procedure
After the topic and research instruments have been approved. The researcher identified a
research topic as the effect of budgetary control on service delivery of Busia Municipal
Council and submitted it to the research supervisor for approval then she wrote a research
proposal that guided her in writing the sample questionnaire and interview guide. The
researcher then got an introductory letter from the research coordinator of Uganda College of
Commerce, Tororo which she presented to the administrators of Busia Municipal Council for
permission to obtain data within their jurisdiction. The researcher distributed the
questionnaires to different respondents and picked them later when fully filled and then
compiled, analyze and compute the data in an organized manner. The first draft of the
research study was compiled and submitted to the supervisor for approval and after approval
with few adjustments the final copy was compiled, bind and submitted to the supervisor who
in turn handed to the research supervisor for final submission to Uganda Business and
Technical Examination Board.
3.9 Data analysis
The researcher used frequency table forms. Qualitative data was analyzed by concluding
views of respondents. Quantitative data was analyzed using spearman’s rank correlation
coefficient method is expressed with the formula below;
ρ= 6∑d²
n (n²-1)
Where n= number of items observed
d= difference between the rank of the values of corresponding variables
∑= Summation of values
ρ = Spearman’s correlation coefficient value
n= Number of rating respondents
16
CHAPTER FOUR
PRESENTATION, ANALYSIS, INTERPRETATION AND DISCUSSION OF

FINDINGS
4.0 Introduction
This chapter covered the presentation, analysis, interpretation and discussion of findings
obtained from the field on the topic “the impact of budgetary control on service delivery in
Busia municipal council”.
4.1 Response Rate
The study was based on the survey population of 35 respondents consisting of a cross section
of administration, municipal departments, and community members. However the researcher
only managed to get 30 respondents representing a response rate of 85.7%. This was due to
the busy schedule of most of the workers of the Busia municipal council.
4. 1 Background of the respondents
4.1.1 Findings on the age group of the respondents
Table 4.1: The age group of the respondents
Age group Frequency Percentage %

20-29 years 2 7
30-39 years 24 80
40-49 years 3 10
Above 50 years 1 13
Total 30 100
Table 4.1: shows that 7% of the respondents were in the age group 20-29 years, 80% were
between 30-39 years, 10% were between 40-49 years, 13% years were above 50 years. This
implied that majority of the respondents were in the group of 30–39 years. This showed that
they were energetic o carry out budgetary control.
17
4.1.2 Findings on the gender of the respondents
Table 4.2: The gender of the respondents
Response Frequency Percentages %

Male 18 60
Female 12 40
Total 30 100
The observation of the responses indicated that the percentages of male respondents were
60% while that of the females was 40%. This implied that organization employs males more
than females attributing to the fact that Ugandans favours males in the job market than
females.
4.1.3 Findings on the marital status of the respondents
Table 4.3: The marital status of the respondents
Status Frequency Percentage %

Married 18 60
Single 12 40
Total 30 100
From table 4.3, 60% of the respondents were married and 40% were single. This implied that
majority of the respondents were married and this indicated that they were responsible
regarding their jobs.
4.1.4 Findings on the academic level of respondents

Table 4.4: The education levels of respondents
Level Frequency Percentage %

Masters 3 10
Bachelors 17 56.7
Diploma 7 23.3
Certificate 3 10
Total 30 100
18
From table 4.4, Respondents were found to be of different academic backgrounds. Most of
them were University graduates. Within this group, 56.7% were holding degrees from
universities across the country, 23.3% were holding diplomas, and those holding certificates
were 10%. This implied that the respondents had knowledge and skills about budgetary
control and service delivery.
4.1.5 Findings on the length of service in the organization

Table 4.5: The length of service at the organization
Length Frequency Percentage %

Under 1 year 3 10
1 - 3 years 13 43
4 – 6 years 6 20
Over 6 years 8 27
Total 30 100
From table 4.5, majority of respondents were found to have worked with the organization for
a reasonable time. Within the group, 10% have worked with the organization under 1 year,
43% have worked for 1-3 years, 20% have worked for 4-6 years and 27% have worked for
more than 6 years. This implied that most employees have experience about budgetary
control and service delivery.
4.2 Budgetary Control
4.2.1 Findings on whether most organizations have adopted broad budgetary control
that ensures that the entire budget system is a control system
Table 4.6: Most organizations have adopted broad budgetary control that ensures that
the entire budget system is a control system
Response Frequency Percentage %

Strongly agree 18 60
Agree 11 36.6
Not sure 1 3.4
Disagree 0 0
Strongly disagree 0 0
Total 30 100
19
Source: Primary Data
From table 4.6, 60% of the respondents strongly agreed, 36.6% agreed that most
organizations have adopted broad budgetary control that ensures that the entire budget system
is a control system 3.4% were not sure. This implied that the majority of the respondents
strongly agreed that most organizations have adopted broad budgetary control that ensures
that the entire budget system is a control system. This was in agreement with Hokal and
Shaw, (2012) asserts that most organizations have adopted broad budgetary control that
ensures that the entire budget system is a control system.
4.2.2 Findings on whether organizations can use budgetary control in forecasting

techniques in order to make plan and budget for the future
Table 4.7: Organizations can use budgetary control in forecasting techniques in order to
make plan and budget for the future

Strongly Agree 8 26.7
Agree 5 16.7
Not sure 10 33.3
Strongly Disagree 7 23.3
Total 30 100
From table 4.7, 26.7% of the respondents strongly agree, 16.7% of the respondents agreed
that organizations can use budgetary control in forecasting techniques in order to make plan
and budget for the future, 33.3% of the respondents were not sure and 23.3% strongly
disagreed about the idea. This implied that majority of the respondents were not sure that
organizations can use budgetary control in forecasting techniques in order to make plan and
budget for the future. Epstein and McFarlan, (2011), state that Organizations can use
budgetary control in forecasting techniques in order to make plan and budget for the future.
20
4.2.3 Findings on whether management of the organizations implements budgetary
control to prevent losses resulting from theft, fraud and technological malfunction
Table 4.8: Management of the organizations implements budgetary control to prevent
losses resulting from theft, fraud and technological malfunction

Strongly Agree 12 40
Agree 9 30
Not sure 6 20
Strongly Disagree 3 10
Disagree 0 0
Total 30 100
From table 4.8, 40% of the respondents strongly agree, 30% agreed that management of the
organizations implements budgetary control to prevent losses resulting from theft, fraud and
technological malfunction, 20% were not sure and 10% strongly disagreed. This implied that
the majority of the respondents strongly agreed that management of the organizations
implements budgetary control to prevent losses resulting from theft, fraud and technological
malfunction. This was in line with Suberu, (2010) notes that the management of the
organizations implements budgetary control to prevent losses resulting from theft, fraud and
technological malfunction.
4.2.4 Findings on whether to ensure the firm’s resources are not wasted; the
organization must be able to come out with an effective budgeting system
Table 4. 9: To ensure the firm’s resources are not wasted, the organization must be able
to come out with an effective budgeting system
Response Frequency Percentages

Strongly agree 16 53.3
Agree 12 40
Not sure 0 0
Disagree 2 6.7
Total 30 100
Source; primary data
21
Results show that 53.3% of the respondents strongly agreed, 40% agreed that to ensure the
firm’s resources are not wasted, the organization must be able to come out with an effective
budgeting system and 6.7% of the respondents disagreed. This implied majority of the
respondents agreed that to ensure the firm’s resources are not wasted and the organization
must be able to come out with an effective budgeting system. The findings were in line
Robinson and Last (2009), asserted that budgeting system is a tool used by the firm as a
framework for their spending and revenue allocation. To ensure the firm’s resources are not
wasted, the organization must be able to come out with an effective budgeting system.
4.2.5 Findings on whether budget also can be used an indicator of the performance of
the ruling government
Table 4.10: Budget also can be used an indicator of the performance of the ruling
government

Agree 9 30
Not sure 0 0
Disagree 6 20
Total 30 100
Table 4.10, 50% of the respondents strongly agreed that budget also can be used an indicator
of the performance of the ruling government, 30% agreed while 20% disagreed. This implied
that majority of the respondents strongly agreed that Budget also can be used an indicator of
the performance of the ruling government. This is in agreement with Sawhill and Williamson,
(2001) contends that budget also can be used an indicator of the performance of the ruling
government.
22
4.3 Service Delivery
4.3.1 Findings on whether are public service given to hospital, schools accessible in
Busia Municipal Council
Table 4.11: Public services are given to hospital, schools accessible in Busia Municipal
Council
Responses Frequency Percentage

Agree 8 26.7
Not sure 4 13.3
Disagree 0 0
Total 30 100
Source; Primary data
Table 4.11, 60% of the respondents strongly agreed, 26.7% agreed that public services are
given to hospital, schools accessible to in Busia Municipal Council while 13.3% were not
sure. This implied majority of the respondents strongly agreed that public services are given
to hospital, schools accessible to in Busia Municipal Council.
4.3.2 Findings on whether public services are given priority in the council budget
Table 4.12: Public service are given priority in the council budget

Strongly agree 14 46.7
Agree 10 33.3
Not sure 0 0
Disagree 6 20
Total 30 100
Findings showed that 80% of the respondents strongly agreed that public services are given
priority in the council budget while 20% disagreed on the statement. This implied that
majority of the respondents strongly agreed that public services are given priority in the
council budget.
23
4.3.3 Findings on whether the amount allocated to service delivery are portrayed in the
quality of service
Table 4.13: The amount allocated to service delivery are portrayed in the quality of
service

Agree 10 33.3
Not sure 0 0
Disagree 2 6.7
Total 30 100
From the above table 4.13, 60% of the respondents strongly agreed that the amount allocated
to service delivery are portrayed in the quality of service, 33.3% agreed while 6.7%
disagreed about the idea. This implied that majority of the respondents strongly agreed that
the amount allocated to service delivery are portrayed in the quality of service.
4.3.4 Findings on whether it is very difficult to measure the level of effectiveness of

service delivery in the municipal council especially Busia Municipal Council
Table 4.14: It is very difficult to measure the level of effectiveness of service delivery in
the municipal council especially Busia Municipal Council
Response Frequency Percentage

Strongly agree 9 30
Agree 18 60
Not sure 3 10
Disagree 0 0
Total 30 100
From the above table, 30% of the respondents strongly agree, 60% agreed that the budgets it
is very difficult to measure the level of effectiveness of service delivery in the municipal
council especially Busia Municipal Council, 10% were not sure. This implied that majority of
the respondents agreed that it is very difficult to measure the level of effectiveness of service
delivery in the municipal council especially Busia Municipal Council.
24
4.3.5. Findings on whether there is proper garbage management in the council
Table 4.15: There is proper garbage management in the council

Strongly agree 0 0
Agree 20 67
Not sure 0 0
Disagree 10 33
Total 30 100
According to the table 4.15 above, 67% of the respondents agreed that there is proper garbage
management in the council 33% disagreed. This implied that majority of the respondents
agreed that there is proper garbage management in the council.
4.3.6 Findings on whether the division leadership is informed about the importance of
budget management
Table 4.16: The division leadership is informed about the importance of budget
management

Agree 0 0
Not sure 0 0
Disagree 9 30
Total 30 100
Results from the table indicate 70% of the respondents strongly agreed that the division
leadership informed is about the importance of budget management and 30% disagreed. This
implied that majority of the respondents strongly agreed that the division leadership is
informed about the importance of budget management.
25
4.4 Relationship between budgetary control and service delivery
4.4.1 Findings on whether budgetary control involves the preparation of a budget and
recording of actual achievements improves service delivery
Table 4.17: Budgetary control involves the preparation of a budget and recording of
actual achievements improves service delivery
Agree 0 0
Not sure 0 0
Disagree 0 0
Total 30 100
From table 4.17, 60% of the respondents strongly agreed, 30% agreed that budgetary control
involves the preparation of a budget and recording of actual achievements improves service
delivery, while 10% disagreed. This implied that majority of the respondent strongly agreed
that Budgetary control involves the preparation of a budget, recording of actual achievements
improves service delivery. Controllers Report, (2011) who asserted that budgetary control
involves the preparation of a budget, recording of actual achievements, ascertaining and
investigating the differences between actual and budgeted performance and taking suitable
remedial action so that budgeted performance may be achieved effectively so as to improve
on service delivery.
4.4.2 Findings on whether a budget provides a detailed plan of action for an

organization over a specified period of time which leads to proper service delivery
Table 4.18: A budget provides a detailed plan of action for an organization over a
specified period of time which leads to proper service delivery

Agree 11 37.7
Not sure 0 0
Disagree 1 3.3
Total 30 100
26
From the above table, 60% of the respondents strongly agreed, 37.7% agreed that a budget
provides a detailed plan of action for an organization over a specified period of time which
leads to proper service delivery and 3.3% disagreed of the idea. This implied that majority of
the respondents strongly agreed that a budget provides a detailed plan of action for an
organization over a specified period of time which leads to proper service delivery. This was
in line with Arora, (2015) who states that a budget provides a detailed plan of action for an
organization over a specified period of time which leads to proper service delivery.
4.4.4 Findings on whether budgetary control helps to reduce on costs and achievement
of goals is enhanced and thus service delivery
Table 4.19: Budgetary control helps to reduce on costs and achievement of goals is
enhanced and thus service delivery

Strongly agree 6 20
Agree 18 60
Not sure 3 3
Disagree 0 0
Total 30 100
From table 4.19, 20% of that respondent strongly agreed, 60% agreed that budgetary control
helps to reduce on costs and achievement of goals is enhanced and thus service delivery, 3%
were not sure, and 3% strongly disagreed. This implied that majority of the respondents
agreed that Budgetary control helps to reduce on costs and achievement of goals is enhanced
and thus service delivery. This in line with Mathis, (2009) states that budgetary control helps
to reduce on costs and achievement of goals is enhanced and thus service delivery.
27
4.4.4 Findings on whether the implementation of budgetary procedures leads to
improved service delivery
Table 4.20: The implementation of budgetary procedures leads to improved service
delivery
Agree 9 30
Not sure 6 20
Disagree 3 10
Total 30 100
From table 4.20, 40% of the respondents strongly agreed, 30% agreed that the
implementation of budgetary procedures leads to improved service delivery, 20% were not
sure, and 10% disagreed. This implied that majority of the respondents agreed that the
implementation of budgetary procedures leads to improved service delivery. This was in line
with Shields and Young, (2013) states that the implementation of budgetary procedures leads
to improved service delivery.
4.4.5 Findings on whether budgetary control as a proven management tool helps

organization management and improves service delivery
Table 4.21: Budgetary control as a proven management tool helps organization
management and improves service delivery

Agree 4 13
Not sure 0 0
Disagree 6 20
Total 30 100
From the above table, 57% of the respondents strongly agreed and 13% agreed that budgetary
control as a proven management tool helps organization management and improves service
delivery and 20% disagreed. This implied that majority of the respondents strongly agreed
that budgetary control as a proven management tool helps organization management and
improves service delivery. Garri Son & Norren, (2000), asserts that the need for better
28
performance in public institutions requires proper financial standing in order to run
operations. Budgetary control as a proven management tool helps organization management
and improves performance of a public institution.
4.5 Examining the impact of budgetary control on service delivery
Spearman’s coefficient of correlation was established to prove the relationship between

variables in Busia local government.
The correlation was from table 4.9 about to ensure the firms resources are not wasted, the
organization must be able to come out with effective budgeting system (x) and table 4.11 abut
public services are given to hospital, schools accessible to in the municipal council (y), these
were ranging from Strongly Agree (SA), Agree (A), Strongly Disagree (SD), Disagree (D),
and Not sure (NS).
Table 4.22: Spearman’s correlation on the impact of budgetary control on service

delivery in Busia municipal council
Details Freq. (x) Freq. (y) Rank (x) Rank (y) Differenc Square of difference
e
SA 16 18 1 1 0 0
A 12 8 2 2 0 0
NS 0 4 4.5 3 1.5 2.25
D 2 0 3 4.5 -1.5 2.25
SD 0 0 4.5 4.5 0 0
Total 30 30 4.5
Ƥ = 1- 6Ʃd²
n (n²-1)
= 1- 6*4.5
5(25-1)
= 1- 0.225
= 0.775
4.6 Interpretation
relationship between budgetary control and service delivery in Busia municipal council with
29
a correlation of 0.775. Meaning that the variable, that is budgetary controls and service
delivery are strongly related
CHAPTER FIVE
DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS
5.0 Introduction
This chapter covered the summary of findings, conclusions, recommendations as based on the
empirical evidence from the field, limitation faced by the researcher during the study and
areas for further research
5.1 Summary of findings
5.1.1 Summary of findings on budgetary control
Findings indicated that 60% of the respondents strongly agreed, 36.6% agreed that most
organizations have adopted broad budgetary control that ensures that the entire budget system
is a control system 3.4% were not sure. 26.7% of the respondents strongly agree, 16.7% of
the respondents agreed that organizations can use budgetary control in forecasting techniques
in order to make plan and budget for the future, 33.3% of the respondents were not sure and
23.3% strongly disagreed about the idea.
The researcher revealed that majority of the respondents 40% of the respondents strongly
agree, 30% agreed that management of the organizations implements budgetary control to
prevent losses resulting from theft, fraud and technological malfunction, 20% were not sure
and 10% strongly disagreed.
Findings further revealed that Results show that 53.3% of the respondents strongly agreed,
40% agreed that to ensure the firm’s resources are not wasted, the organization must be able
to come out with an effective budgeting system and 6.7% of the respondents disagreed. 50%
of the respondents strongly agreed that budget also can be used an indicator of the
performance of the ruling government, 30% agreed while 20% disagreed.
5.1.2 Findings on Service Delivery
Findings showed that majority of the respondents 60% of the respondents strongly agreed,
26.7% agreed that public services are given to hospital, schools accessible to in Busia
Municipal Council while 13.3% were not sure. Findings showed that 80% of the respondents
30
strongly agreed that public services are given priority in the council budget while 20%
disagreed on the statement.
Findings showed that 60% of the respondents strongly agreed that the amount allocated to
service delivery are portrayed in the quality of service, 33.3% agreed while 6.7% disagreed
about the idea. 30% of the respondents strongly agree, 60% agreed that the budgets made by
the council are focused towards service delivery, 10% were not sure. 67% of the respondents
agreed that there is proper garbage management in the council 33% disagreed.
5.1.3 Findings on budgetary control and service delivery
There was a strong relationship between budgetary control and service delivery in Busia
municipal council. This implied that the level of service delivery was high whereby
budgetary control will also be high and improve. From the information, it was observed that
there was a very strong positive and perfect relationship between budgetary control and
service delivery in Busia municipal council with a correlation of 0.775. Meaning that the
variable, that is budgetary controls and service delivery are strongly related
5.2 Conclusions
Service delivery was seen to increase due to the strong relationship implying that service
delivery in is greatly attributed to the effectiveness on the budgetary control aspects carried
out by the administration and employees of Busia municipal council. Improved service
delivery has greatly improved due to the advent of budgetary control and expertise.
Conclusively, therefore budgetary control is a worthwhile venture to expertise and put in

more resources to enhance and frame better service delivery in Busia municipal council and
other organizations and departments share the same strategies for their well being and
optimism.
relationship between budgetary control and service delivery in Busia municipal council with
a correlation of 0.775. Meaning that the variable, that is budgetary controls and service
delivery are strongly related
5.3 Recommendations
Busia municipal council should be able to train its staff under the budgetary control so as to
stimulate its service delivery. Therefore, the administration and other management experts
should realize that budgetary control is not all change a life Uganda needs to perform well,
31
but there are other factors that need to be considered and integrated with administrative
strategy to yield and ascertain the synergy of resources.
5.4 Limitations and Delimitations of the study
Most respondents from Busia municipal council were not willing to give out some vital data
that they considered confidential, however, the researcher overcame this problem by assuring
them the purpose of the study was purely academic.
The exercise required a lot of funds and this made the researcher to take a lot of time to
accomplish her research due to insufficient funds during the study. However, the researcher
solved this problem by seeking more financial assistance from friends and other family
members.
The researcher also faced a problem of limited literature views on both variables. However,
the researcher solved this problem by consulting other successful researchers and visiting
libraries of neighboring institutions and schools.
5.5 Areas for further research
The following areas have not been addressed by this research report.
 The impact of budgetary control on accountability of public funds

 The effect of electronic filing on the service delivery of public finances
32
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34
Appendix A: Questionnaire
UGANDA COLLEGE OF COMMERCE, TORORO
QUESTIONNAIRE
I am Ayemba Jackline a student of Uganda College of Commerce, Tororo intending to

undertake a research on the “impact of budgetary control on service delivery, a case study of
Busia Municipal Council.” The information given was treated with Utmost confidentiality.
No one’s name was put while compiling the report for this study.
Please tick your appropriate choice.
SECTION A: Demographic characteristics
1. Age
a) 20-29 years b) 30-39 years
b) c) 40-49 d) 50 years and above
2. Gender
a) Male b) Female
3. Marital status
a) Single c) Married
4. Level of education
a) Masters b) Bachelors
c) Diploma d) Certificate
5. Length of services at the organization.
a) Under 1 year
b) 1 - 3 years
c) 4 - 6 years
d) 6 years and above
35
SECTION B: Budgetary control
Please tick the most appropriate statements concerning the factors affecting budgetary control
in the municipal council
Statement Strongly agree Strongl Disagree Not

agree y sure
disagree
Most organizations have adopted broad

budgetary control that ensures that the
entire budget system is a control system
Organizations can use budgetary control in

forecasting techniques in order to make
plan and budget for the future
Management of the organizations

implements budgetary control to prevent
losses resulting from theft, fraud and
technological malfunction
To ensure the firm’s resources are not

wasted, the organization must be able to
come out with an effective budgeting
system
Budget also can be used an indicator of the

performance of the ruling government
36
SECTION C: Service delivery
Please tick the most appropriate statement on the level of service delivery in the municipal
council
Statements Strongly Agree Strongly Disagree Not

agree disagree sure
Are public service given to hospital,

schools accessible to in Busia Municipal
Council
Are public service given priority in the

council budget
The amount allocated to service delivery

are portrayed in the quality of service
It is very difficult to measure the level of

effectiveness of service delivery in the
municipal council especially Busia
Municipal Council
There is proper garbage management in the

council
Is the division leadership informed about

the importance of budget management
37
SECTION D: Relationship between Budgetary control and service delivery in Busia
Municipal Council
Statements Strongly Agree Strongly Disagree Not

agree disagree sure
Budgetary control involves the preparation

of a budget and recording of actual
achievements improves service delivery
A budget provides a detailed plan of action

for an organization over a specified period
of time which leads to proper service
delivery
Budgetary control helps to reduce on costs

and achievement of goals is enhanced and
thus service delivery
The implementation of budgetary

procedures leads to improved service
delivery
Budgetary control as a proven management

tool helps organization management and
improves service delivery
Thank you for your cooperation
38
Appendix B: Research Budget
RESEARCH BUDGET
ITEMS UNIT QUANTITY PRICE AMOUNT
Typing and Printing 3 3 26600 80,000
Binding 3 3 2000 6,000
Transport 5,000
Supervision 100,000
Phone calls 12,000
Miscellaneous 40,000
Grand total 243,000
39
Appendix C: Time Frame
TIME FRAME
TIME PERIOD ACTIVITY
September 2019 Identification of research problem.
October 2019 Formulation of the research topic and

approval by the academic supervisor.
November – December 2019 Writing of chapter one, two and three
January – February 2020 Writing and distribution of questionnaires in

the case study.
March 2020 Collection of questionnaires from case study
March – October 2020 Covid-19 lock down
October – November 2020 Writing chapter four and five
November 2020 Approval of the research report by the

supervisor.
December 2020 Submission of the final research report to

UBTEB.
40

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UGANDA COLLEGE OF COMMERCE, TORORO

THE IMPACT OF BUDGETARY CONTROL ON SERVICE DELIVERY IN

CASE STUDY: BUSIA MUNICIPAL COUNCIL

A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENTS FOR THE AWARD OF UGANDA DIPLOMA

IN BUSINESS STUDIES OF UGANDA BUSINESS AND

Mr. GULOBA SAMUEL

Nanjekho Omondi for the support rendered to me during my studies.

me through writing my report.

encouragement and support towards writing my report. Special thanks go to my dear, my

Almighty lord be with them all.

UBTEB................................................Uganda Business Technical Examinations Board

MDG…………………………………Millennium Development Goals

Where n= number of pairs of two observations

1.1 Background of the study

Budgetary control is a management tool used by public institutions to effectively manage

Municipal Councils have shifted focus to budgetary control as a way of enhancing

1.2 Statement of the problem

Budgetary control is used by most organizations as a tool for proper management of

1.3 Purpose of the study

1.4 Objectives of the study

i. To analyze the factors affecting budgetary control in Busia Municipal Council.

1.6 Scope of the study

1.6.1 Subject Scope

The study covered the effect of budgetary control on service delivery.

1.6.2 Geographical Scope

1.6.3 Time Scope

1.7 Significance of the study

2.1 Factors affecting Budgetary Control

Budgetary control is a tool implored by management to keep track of actual performance to

2.2 Service delivery

Jennifer (2016) service delivery as it is necessary to go beyond studies of quality dimension

Prendergast (2012) was of view that responsiveness determines service delivery in an

2.3 Relationship between budgetary control and Service delivery

Budgetary control involves the preparation of a budget, recording of actual achievements,

3.1 Research design

3.2 Study Area

3.3 Study Population

The researcher targeted a population size of 35 people consisting of Top administrators,

3.4 Sample size

Category Frequency Percentage

3.5 Sampling Technique

3.6 Sources of Data

3.6.1 Primary data

3.7 Data collection methods/Instruments.

3.7.3 Interview guide

3.9 Data analysis

PRESENTATION, ANALYSIS, INTERPRETATION AND DISCUSSION OF

4.1 Response Rate

4. 1 Background of the respondents

4.1.1 Findings on the age group of the respondents

Table 4.1: The age group of the respondents

Age group Frequency Percentage %

Table 4.2: The gender of the respondents

Response Frequency Percentages %

4.1.3 Findings on the marital status of the respondents

Table 4.3: The marital status of the respondents

Status Frequency Percentage %

4.1.4 Findings on the academic level of respondents

Level Frequency Percentage %

4.1.5 Findings on the length of service in the organization

Length Frequency Percentage %