Budget and budgetary control practices are undeniably indispensable as organizations routinely go about their business activities and operations. These organizations are constantly on the alert on how actual levels of performance agree with planned or budgeted performance. A budget expresses a plan in monetary terms. It is prepared and approved prior to a particular budgeted period and explicitly may show the income, expenditure and the capital to be employed by organizations in achieving their goals and objectives. Budgeting control practices are then devices that organizations use to regulate their budgets. The controls are mostly comprehensive systems of budgets that aid management in carrying out its functions like planning, organizing, directing and controlling. The budgetary system takes a critical look at how organizations are divided on functional basis and into different sections known as ‘budget centres.’ It proceeds to prepare separate budgets for each budget centre, consolidates all the functional budgets to present the overall organizational budget, compares actual performance against budgeted performance and finally reports variances if there are any. Budgets can be prepared for and used by anyone and anything. That is, we can prepare and use personal budgets and organizations, ministries and non-profit making organizations can all use them. Budgets have to be prepared in advance; and for this reason, they are often referred to in terms of their being part of a feed-forward system. Feedback is a term frequently heard both in accounting and ordinary use. Feed-forward, on the other hand tends to be less frequently heard, yet this word incorporates the most important aspect of budgeting- looking at situations in advance, thinking about the impact and implications of things in advance, and attempting to take control of situations in advance. Budgets are simply exercises in calculation unless they are used. When we use a budget, we do so as part of a system of budgetary control. That is, we have some basic ideas of what we want to do, we prepare budgets to help us achieve those ideas; and then once we have done whatever it is that we wanted to do, we check to see if we kept to our budget.
1.2 PROFILE OF THE ORGANIZATION
UT Bank Ghana Ltd commenced business as a Finance house in 1997. It evolved from a lending company, to now Universal Bank following a merger between UT Financial Services and the acquired UT Bank. From humble beginnings as a privately owned company in Ghana, UT Bank (then UT Financial Services) has evolved into a publicly owned company with shares listed and actively traded on the Ghana Stock Exchange. UT Bank is therefore a listed company on the Ghana Stock Exchange with shares actively traded in the name of the Bank. With an annual turnover of about 34 million Euros, a staff of over 600 and about 25 branches, UT Bank is one of the fastest growing banks in Ghana. The Bank has positioned itself as a lending bank that seeks to change the face of banking in Ghana through fast, efficient and respectful delivery of service, maintaining the core proposition of a loan in less than 48 hours.
1.3 VISION AND MISSION
The vision of UT Bank Ghana Ltd is “Redefining Banking” with a mission statement of being “the preferred bank for business and individuals providing quality and outstanding products with speed and efficiency to delight customers and build shareholder value.” The initial focus of UT was centered on servicing the “unbanked” informal sector, but over the past few years, UT’s services have extended to cover the formal sector and providing stop gap loans and trade financing to SME’s. What set UT apart in the financial services market is its solid business structure, flexibility and timely delivery of financing to clients in less than 48 hours. 1.4 AWARDS AND ACHIEVEMENTS
In 2006 the company was recognized as the Best Financial Institution and 2nd Best...