EXAMINING THE RELATIONSHIP BETWEEN PRUDENT FINANCIAL MANAGEMENT AND BUDGETING AND BUDGETARY CONTROL SYSTEM OF WA MUNICIPAL ASSEMBLY

Abstract

The relationship between budgeting and budgetary control system and prudent financial management practices in MMDAs is a vital area. Most MMDAs including WMA do not have effective financial control system due to poor budget formulation and implementation. No research work from the literature reviewed conducted study on Budgeting and Budgetary Control in any MMDA in the three Northern Regions. Therefore this study seeks to examine the relationship between prudent financial management and budgeting and budgetary control system in Wa Municipal Assembly. Descriptive approach was used with questionnaires, interviews, observations and face-to-face discussions as data collection instruments. SPSS and Microsoft suit were used to analyse the data and were presented in tables and summaries. Purposive sampling technique was used to sample fifty (50) respondents with responds rate of 92%. Data used were both primary and secondary data. The study found out that 83% of the respondents affirm that with budget formulation and implementation, WMA ensures that actual performance is in line with budgeted plans. Again 90% of the key staff of WMA indicated that the General Assembly has the exclusive fiat to approve the final budget. The research concludes that, through budgeting and budgetary control, prudent financial management practice is enhanced in Wa Municipal Assembly. Recommendations deemed appropriate for consideration by all MMDAs, central government, DACF Administrator and other policy makers were made. The study suggests a future study on "Factors affecting prudent financial management of MMDAs in Ghana".