Thesis (MPA)--University of Stellenbosch, 2007. / ENGLISH ABSTRACT: The South African system of local government has been significantly altered since the democratic local government elections held in November 1995 and July 1996. Soon after taking office in the newly established democratic local authorities, councillors came face to face with the reality of community demands, needs and expectations on the one hand and the limited resources to fulfil these needs on the other hand. Within this challenging context, councillors and officials had to ensure sustainable service delivery and the promotion of good local governance in general. In the South African context, the delivery of sustainable municipal services and good local governance within the constraints of limited financial resources is even more challenging given the constitutional and legal requirement that communities must participate in municipal affairs – including planning and budgeting processes. The research for this study was carried out using a literature review, individual interviews with senior City of Cape Town officials and the personal experience of the researcher. This study examines public participation in the budget process of the City of Cape Town during the period 2004–2006. The Western Cape did not previously have a ward participatory (committee) system like that used in the rest of the country. In contrast, the City of Cape Town set up a metro participation forum called subcouncils with area co-ordinators and ward forums. At the time of the study, the main vehicle for public participation in the city had been the Mayoral Listening Campaign that was embarked upon in 2003. The key focus of this campaign was to invite comments from residents and other stakeholders on governance and development issues facing the city. Comments were submitted via fax, e-mail, workshops and telephone. This study concludes with a number of recommendations on capacity building, the development of ward committees, improving communication systems as well as the implementation of effective monitoring and evaluation mechanisms. These recommendations should be implemented to enhance public participation in the budget process of the City of Cape Town. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse stelsel van plaaslike regering het beduidend verander sedert die plaaslike demokratiese regeringsverkiesings in November 1995 en Julie 1996. Raadslede het kort ná die vestiging van die nuut gestigte plaaslike owerhede bewus geword van die gemeenskap se nood en die beperkte hulpbronne om daardie nood te verlig. In Suid-Afrika is die lewering van volhoubare munisipale dienste en goeie plaaslike regering binne die konteks van beperkte finansiële hulpbronne selfs meer uitdagend gegewe die grondwetlike en wetlike vereiste dat gemeenskappe aan munisipale bedrywighede moet deelneem; insluitend munisipale beplanning- en begrotingsprosesse. Hierdie studie kyk na openbare deelname aan die begrotingsproses van die Stad Kaapstad vanaf 2004 tot 2006. Die Wes-Kaap het nie voorheen ’n wykskomiteestelsel in plek gehad soos die res van die land nie. Die Stad Kaapstad het wel ’n Metro deelnameforum (sub-rade) met areakoördineerders en wyksforums gehad. In die studietydperk was die hoofmeganisme vir openbare deelname in die Stad Kaapstad die “Mayoral Listening Campaign” wat in 2003 begin het. Die hoofdoel van die veldtog was om terugvoering van die gemeenskap en rolspelers te kry aangaande die ontwikkeling van die Stad Kaapstad. Terugvoering is hoofsaaklik deur middel van e-pos, faks, telefoon en werksessies ontvang. Die studie sluit af met ’n aantal voorstelle vir kapasiteitsontwikkeling, die ontwikkeling van wykskomitees en die verbetering van kommunikasiestelsels sowel as die implementering van doeltreffende monitering- en evalueringmeganismes. Hierdie voorstelle behoort aangewend te word om openbare deelname in die Stad Kaapstad se begrotingsproses te verbeter.

A budget is an action plan that is utilized by organisations, private or public, in order to attain their objectives. Budgets are used to ensure better financial performance for organizations. They are also used to identify financial problems and take appropriate corrective measures. Public secondary schools also prepare their budgets to plan for their income and expenditure. It is through developing their budgets that public secondary schools are able to achieve their visions and missions. The purpose of the study is to evaluate the extent to which the budgeting process is effectively implemented in public secondary schools in the Gauteng South Region. To achieve this objective a questionnaire was developed to elicit responses from the participants in the research. The questionnaire was a closed-ended one with two sections, A and B. Section A of the questionnaire was developed to gather biographical information about the units of analysis, whereas Section B dealt with key issues pertaining to the budgeting process. The reliability of the questionnaire was tested through Cronbach’s alpha coefficient. The feedback from the questionnaire was analysed by means of Exploratory Factor Analysis where five factors were extracted and their reliability also tested. The factor loading matrix was computed to identify appropriate items for each factor. The items were analysed using frequencies in respect of each factor. Correlations analysis for the factors was conducted to determine the relationship between them. The findings from the study indicate that: budget planning assists school managers in comparing income and expenditure; coordination of budgeting activities is a problem at schools; lack of communication stifles effective implementation of the budget; there is no effective training and development for those involved in the budgeting process; the financial targets are not set and communicated to key stakeholders; there is lack of budget control and monitoring measures of variances of the planned and actual budget is non-existent; educators are not offered the opportunity to participate in the budgeting process let alone have the authority to make decisions on budgetary issues for those who are involved. The value of this research lies in setting appropriate guidelines for effective implementation of the budgeting process. Effective implementation of the budgeting process will facilitate efficient delivery of quality education to learners. The importance of the study is that it offers various types of budgets that public secondary schools can use to remain financially viable and sustainable.

The treatise analyses the issues around budgets and examines budget expenditure control procedures. The research method selected has been formulated from the research onion process (Saunders, Lewis and Thornhill 2009). This methodology first identifies the research approach, research strategy, timelines and data collection methods. As part of the research process, a quantitative approach has been taken and a survey was carried out in relation to the collection of quantitative data for the purposes of the treatise research. The final analysis of the survey results is reflected in the conclusion of the research findings. Budget expenditure control procedures provide a company with a method of control for managing actual spending against the budget. Most companies have a refined practice of budget preparation, and in the larger companies, these are implemented across all departments and carried out by respective managers. Once the budget is in place, it is the responsibility of the managers to ensure that those having expenditure authorisation adhere to it. If control procedures are well managed, this allows for improved efficiency in operations and can lead to benefits in budget performance. Control procedures that are inefficient and poorly managed will inhibit budget objectives being achieved. The control procedures for budget expenditure can be formulated and applied to optimise budget performance and to control budget variance. Formal budget expenditure control procedures, as part of a company’s budget strategy, can provide managers with an effective business tool that improves current budget spending control procedures. This will then result in the identification of potential efficiency gains and improve budget performance.

The primary objective of the study is to assess whether organisations are using their budgeting, forecasting and financial planning information as a strategic tool in the decision-making process. The research aims to investigate the various factors that hinder the success of the finance department in delivering a quality financial plan, budget or forecast to top management and the rest of the organisation.

M. Tech. (Department of Accountancy, Faculty of Management Sciences) Vaal University of Technology. / Efficient planning and effective budget and cost control are key to the financial survival of universities in South Africa. Given the #FeesMustFall, students and their parents, starting in 2018, no longer contribute to the development of new infrastructure, payroll expenditure, maintenance and other daily operational expenses of public universities in South Africa. A new funding model for higher education calls for even stricter planning and allocation of budgets to departments within an institution of higher education. Evenly important, stricter control over the actual spending of these allocated funds needs improved planning and implementation of more effective policies and procedures to answer to the needs of the post #FeesMustFall funding model. Public universities will then be even more greatly funded by taxpayer’s money via government grants. There is this constant factor of the current situation of the South African economy, which will always bring the need for best possible use of scarce resources of funds. To eliminate the abuse of funds and elements of corruption, internal control strategies and systematic automation of controls need to be employed and even more rigorously enforced. The current phenomenon of different political parties’ that interfere with autonomous public universities to use #FeesMustFall and free education as a political “play-ball” is in full swing. These political structures and unions will in all probability have a huge impact, largely on the principals and methods used to plan an annual budget and the procurement policies and procedures of operational needs and on the expenditure control in public universities in South Africa. This study investigates the budgetary planning processes and expenditure control in universities in Gauteng, South Africa. This research is done by means of a detailed empirical study of the budgeting processes, cost and expenditure control processes, procedures followed and the internal control mechanisms at some universities in Gauteng. The empirical study was conducted with public universities in Gauteng and applicable research online questionnaire were used to analyse. The primary objective of this empirical study was to investigate what budget model and budgetary processes and principles regarding decision making to allocate budgets to specific allocations in the budget. Furthermore, the research study investigated how cost management and expenditure are controlled and how internal control mechanisms are applied in higher education institutions that formed part of this study. This study investigated the manner in which the budgets for annual expenditure are planned and how the internal controls are employed to ensure effective control over expenditure at public universities in Gauteng, South Africa. This research is supported by a literature study into the role of higher education in South Africa, the different controlling bodies in South African Higher Education, funding of South African public universities, budgetary planning and earmarked spending, procurement and expenditure control and reporting by universities in South Africa.