Budgetary Management and Control of Finance and Economic Cooperation Organization in Mettu Woreda of Ilu Ababor Zone: An Assessment

The main purpose of this study was to investigate the gaps in budget management and control in the Finance and Economic Cooperation Office in Mettu Woreda of Illu Ababora zone, Oromia. This investigation is focused on eight purposely selected sectors and Finance & Economic Cooperation Office. From the total population, (Kothari 2004) formula was used to determine sample of respondents. For the purpose of data collection the management team along with workers of Budget and Finance & Economic Cooperation Office of Mettu, the workers of poverty eradicates sectors and standing committee of finance in the woreda were selected. The SPSS was used to analyze the data using descriptive statistics. For this study, five independent variables were identified including proper plan & budget preparation, budget execution, analyzing & feedback budgetary record and competent internal audit staff. The dependent variable effective & efficient budget management & control which was measured under Binary logistic regression. According to the logistic regression output, proper plan & budget preparation, budget execution, competent internal audit staff & budget monitoring and evaluation were contributed for the budget management & control in the Finance & Economic Cooperation significantly and positively. The remaining variables: the analyzing & feedback budgetary record for the budget management & control is negatively related and insignificant. All these five independent variables are contributions for assessment of budget management & control in the Finance & Economic Cooperation Office in the Woreda. Then, the researcher recommended that the office need to be understand the contributions of these four variables collectively significant and their odd ratio were greater than one to infinity indicate the relationship type between those predictors and the outcomes and add values for the budget management & control in the offices.


Background of the Study
Currently in the world, organizations 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 performance results and evaluation of performance in terms of the predetermined goals. Then, budgeting is defined as a form of financial planning and as such budget is utilized to impose the strategy of a country. Therefore, a budget is composed of different functional budgets that could help a country for development such as agriculture, technology, tourism and other (Smith and Mcgeary, 1997). Also, among the essential reasons for having a budget plan are to effectively allocate resources, coordinate, and render service to the public and measure the activities of the country.
Then budgetary control can be explained as the process of using budgets as control mechanism to evaluate organizations performance by considering deviations from budget figures to actual figures. Accordingly, budgetary control is a system that uses budgets as a controlling and planning tool. Furthermore, the Chartered Institute of Management Accountants of England (2007) defined the process of budgetary control in the following way: "Budgetary control is the establishment of budgets relating to the responsibilities of executives of a policy and the continuous comparison of the actual with the budgeted results, either to secure by individual action the objective of the policy or to provide a basis for its revision." The advantage of using budgetary control is that top management is able to detect deviation from the plan and is able to react accordingly in order to increase efficiency throughout the activities (Venkatasivakumar, 2009). Budgetary control systems are universal and have been considered an essential tool for financial planning. The purpose of budgetary control is provide a forecast of revenues and expenditures this is achieved through constructing a model of how organization might perform financially speaking if certain strategies, events and plans are carried out (Churchill 2001).
Most organizations use budget control as the primary means of 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 organization (Carr and Joseph 2000). 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 (Hokal and Shaw, 2002) In Ethiopia, Public sector offices are part of the public body which is partly or wholly financed by government budget and concerned with providing basic government services to the whole society which is achieved through controlling public finance and, controls are mainly in-built in the public financial management system. Public financial management includes the legal and organizational framework for supervising all phases of the budget cycle, including the preparation of the budget, internal control and audit, procurement, monitoring and reporting arrangements, and external audit. The broad objectives of public financial management are to achieve overall fiscal discipline, allocation of resources to priority needs, and efficient and effective provision of public services (MoFED, 2004).
Presently Ethiopian government is investing in various infrastructures like the Grand renaissance dam, railway, roads and industrial parks to accelerate the growth and development of the country. To achieve these, Ethiopian government implemented the growth and transformation plan (GTP). Most regional states, however, do not cover their budget requirements from their own source of revenue. As a result, it is through the Federal Block Grant Transfers that each regional state covers its major proportion of their budget. The Oromia Regional State is one of the nine (9) states which get block grant to cover its budget deficits (MoFED, 2009). On the other hand, as one of the 9 regional states, it has the full autonomy as per the FDRE constitution of 1995 article 52 which allows it to enact and execute its own state constitution and ratify laws as long as they comply with the federal constitution (FDRE constitution, 1995). So, the states draw up and administer the state budget. The regional state has 20 (twenty) zonal administration and 6 (six) city administration at zonal level. Iluabor zone is one among these zonal administration located at south-west Oromia. It consists 13 (thirteen) woreda & one town administration. One of these woredas is Mettu. Mettu woreda in Iluabor zone is get block grant to cover its budget deficit from Oromia regional government to achieve the growth and transformation plan by means of enhancing budget credibility and control through a repetitive cycle of planning and control and usually followed by appropriate information about actual result to the management for comparing them against the budgeted and initiating a control action is necessary. Thus, the purpose of this study is to evaluate the budget management and control in case of Mettu woreda Finance and Economic Cooperation. efficient, effective & accountable public finance & properly administration & controlling system." (MoFED of FDRE). In order to achieve these missions and objectives, the organization must build a strategy according to the existing situations. It should also prepare annual plan and budget based on the strategy. One of the responsibilities of budget users is controlling costs and constantly improving the ways of doing things. The Finance and Economic Cooperation is responsible to follow and control for managing budget users to respect the rule, regulation and directives of finance (MoFED of FDRE 2004). According to L. R. Gay (2012) another source of initiation to the research problem is to examine some of the questions the researcher commonly ask himself about concerned sector from his personal experience through different intervention. Accordingly, the researcher has been serving for more than one decade in Mettu woreda in different organizations and in the Finance and Economic Cooperation Office as expert and organization heads. Thus, many years' experience on the study area was obtained and identified that the woreda administration faced a greater problem in budget deficit but mostly it used under adjusted budget because of poor budget management and control of the woreda's Finance and Economic Cooperation Office.
Globally, studies like (Carolyn et al. 2007) examined the association between effects of budgetary control on performance using a sample of large US cities Financial Bonds and found that effective level of budgetary control is significantly and positively related to bond rating. Dunk (2007) carried out a study in Europe on budgetary participation and managerial performance in nonprofit making firms and concluded a positive correlation between budgetary participation and managerial performance in nonprofit making organizations. Moreover, Nyageng"o (2014) carried out a study to identify determinants to effective budget implementation among local authorities in Kenya. The results of the study revealed that effective budgetary control led to improved performance of local authorities. Besides, locally, (Tilahun 2010) carried out the study on budget management and control by emphasizing on ministry of national defense by using descriptive and qualitative research approach and come up with that budget of the ministry of defense was prepared without considering reasonable cost estimation and current market price. He also revealed that there is the idle cash in the ministry of defense due to the lack of consistent purchase program which lead to rush expenditure toward the end of budget year.
Eliyas (2018) also examined assessment on budget implementation and controlling case of Addis Ababa city administration Finance and Economic Development Bureau and revealed that there are lack of internal control system implementation. From the review of past research, most studies have concentrated on only budget preparation, practice, and budget implementation in the public sectors.
According to researcher's experience different sectors in the woreda's administration was unable to provide proper service for the community and the capital budget was not budgeted according to directives given from finance and economic cooperation bureau as well. As a result, the community asks a lot of question regarding poor governs related with lack of service. Therefore, the study aimed to investigating the gaps in budget management and control in case of Mettu woreda finance and economic cooperation office.

Research Hypothesis
In line with the broad purpose statement, the following hypothesis were formulated for the investigation. Hypothesis of the study stands on the theory related to budget management and control in FECo. Office. The results from the literature review were used to establish expectation of the different factor on the budget management and control. Hence, based on the objectives the study formulated and tested the hypothesis listed below.

H01:
Proper plan and budget preparation has no significant effect on budget management and control of the office;

H02:
The budget execution has no significant effect on budget management and control of the office; H03: Monitoring and evaluation of budget have no significant effect on budget management and control of the office; H04: Analysing and feedback in budgetary records has no significant effect on budget management and control of the office;

H05:
The competent internal audit staffs in the office has no significant effect on budget management and control.

General Objective
The general objective of the study is to identify the gaps in assessment of budget management and control in case of Mettu Woreda Finance and Economic Cooperation Office.

Specific Objectives
The specific objectives of the study were: -1. To identify the causes of mismatch between plan and budget; 2. To identify weakness observed in budget execution; 3. To identify and know the suitable control mechanisms for budget execution 4. To find out deviations observed in budgetary records compared to the country's rules and regulation.

5.
To know the presence of performance auditing practice to evaluate the effectiveness and efficiency of the office budget utilization.

Significances of the Study
The study is helpful for Mettu Woreda Finance and Economic Cooperation office management, employees, Mettu Administration office and any other concerned body in addressing the problems related to budget management and control. Moreover, the study can contribute to create awareness on budget management and control to the success the office mission and serve as motivation for financial decision making. Finally, the study can be baseline for other researchers who would like to conduct their research in similar area

Scope of the Study
The study was delimited geographically, conceptually, and timely. The study geographically was carried out in Oromia Regional State Ilubabor Zone at Mettu Woreda Finance and Economy Cooperation Office. Conceptually it is delimited to assess the budget management and control of Mettu Woreda Finance and Economy Cooperation Office. The study was also limited to assess the budget management and control of Mettu Woreda Finance and Economy Cooperation Office in the time between 2007 E.C -2011E.C by descriptive survey method with quantitative and qualitative approach.

Description of the Study Area
Mettu woreda is located in Ilu Ababor Zone at a distance of 600 km from Addis Ababa. In absolute terms; Mettu extends from 8 0 23'5"E latitudes and 35 0 20'31''N longitude. The elevation of the woreda ranges from 1300 to 1600 meters with average annual rainfall 1,153mm. The total population of the woreda is estimated 87,298, from which male account 43656(50.008%) and female 43642 (49.99%). The estimation of the households is about 13367 (Basic data of Mettu woreda FECo, 2019).

Research Design
Research design is the plan of action that links the philosophical assumptions to specific methods (Creswell & Planoclark, 2007). For Upagade & Shende (2012), research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Hence, in this study descriptive survey research specifically Cross-sectional designs was employed. Because the major goal of Cross-sectional designs asks large numbers of people questions about their behaviors, attitudes, and opinions. In addition, a cross-sectional study is one that produces a 'snapshot' of a population at a particular point in time (Louis Cohen et al, 2007). Additional explanatory research is applied; because the research has dependent and independent variables. Descriptive research design is concerned with describing the characteristics of a particular individual, or of a group by aiming at obtaining accurate information in the study. Explanatory research establishes cause-and-effect relationships; it attempts to explain why one variable causes change in another variable.

Research Approaches (Methods)
There are two basic approaches to research, viz., quantitative approach and the qualitative approach. The former involves the generation of data in quantitative form which can be subjected to rigorous quantitative analysis in a formal and rigid fashion. Qualitative approach to research is concerned with subjective assessment of attitudes, opinions and behavior. Such an approach to research generates results either in non-quantitative form or in the form which are not subjected to rigorous quantitative analysis. Generally, the techniques of focus group interviews and depth interviews were used. For this study the researcher have used both quantitative and qualitative research approach. Because it is helpful to get balanced information and to triangulate the data from primary and secondary data sources.

Data type and sources
In order to strengthen the findings of the research the relevant data for the study was generated from both primary and secondary sources. To carry out this research, the researcher used primary data sources. Kothari, (2004) stated that, primary data are those which are collected afresh and for the first time, and thus happen to be original in character. In this study, the major sources of primary data were employees of Mettu Woreda FECo. Office from different department, woreda administrative council and budget and finance affairs committees.
The secondary sources of data were the FEDC office documented records of financial report auditor's feedback and action plan and monitoring check list of the year 2007 E.C up to 2011 EC and others research works, journals, articles, books and internet and other related documents from the town such as annual plans, performance reports, directives, etc. These files were observed to strengthen the data obtained through questionnaires and interviews.

Population
Population refers to the total of items about which information is desired (Kothari, 2004). The total population of this study was employees of the woreda FECo. Office and woreda's poverty eradication sectors (244), the management committee of FECo. Office (8) and budget and finance affairs standing committees (5).

Sample Frame
Sampling frame consists of a list of items from which the sample is to be drawn (Kothari, 2004). Accordingly, the sample frame of this study was the woreda FECO, woreda's poverty eradication sectors and budget and finance affairs standing committees.

Sampling Techniques
Both probability and non-probability sampling technique were employed in this study. Simple random and purposive sampling techniques will be conducted to identify respondents from the population. Since the woreda has 31 government organizations, the researcher took the most government focused area (poverty eradication sectors). The simple random sampling technique was employed for employees of poverty eradication sectors that are 8 in number and employees of FECo, because simple random technique gives equal chance of being included in a sample. Purposive sampling technique was also employed to select respondents from FECo. Since the management members are familiar with the issue of study due to their responsibility and due to their manageable size of population, office management committee & budget and finance standing committee were used purposively by using purposive sampling technique.

Sample Size
To determine the sample size of the study, the researcher employed (Kothari, 2004) formula. According to Kothrie (2004) during the determination of the sample size, level of precision or acceptable error, standard deviation of the population, confidence or risk level and standard variant at given confidence level should be considered. Therefore, by considering these issues sample size for this research was determined.
Kohtar's (2004) formula, n = z 2 pqN/e 2 (N-1)+z 2 pq (1) Where: n =the sample size; N= the study population; e =the level of precision; z = standard variation at given confidence level; pq = standard deviation of population; 1= designates the probability of the event occurring; In line with this, the sample size is computed as follows.
The total population of the study N=244, the level of precision e =0.02, the standard error at 98% confidence level z=2.005 and the standard deviation of population pq, p=0.02 and q=1-p,

Data Collection Methods
In order to gather the data, the researcher employed both open and closed ended questionnaires since it is more convenient and easier to collect the required information.
Interview: the Office of Finance and Economic Cooperation plan & budget, monitoring and evaluation process owners, the audit team, financial administration process owner's team, woreda FECo.Office management members and budget and finance affairs committee interviewed.
Questionnaires: two types of questionnaires that one is for plan, budget, monitoring and controlling process employee and the other for Finance core process and Internal Audit Core Process employees. The questionnaires which comprise both close ended and open-ended was prepared in English that respondents easily understand the question and give appropriate answer.

Data Analysis Method
The researcher reviewed the appropriate statistical data analysis tools namely descriptive, and test statistics. Before analyzing the data, raw data Collected were cleaned and edited for completeness and consistency. It then systematically organized to confirm if it represents the target population and to facilitate objective analysis at a later stage. The responses also screened for correctness and accuracy and then they were assigned numerical values which are representing various attributes being the researcher measure and the filled in Microsoft excel. The data can analysis to establish the measures of central tendency and variation that include the mean, maximum, minimum, range, frequency, and standard deviation highlighting the key findings. The Statistical Package for Social Science (SPSS) was used to analyze the data obtained from primary sources. Specifically, descriptive statistics tables, percentages, bars and logistic regression was used for analysis of this study. The results were interpreted with the help of odds ratio (i.e. e βi ), instead of the actual coefficient, as the interpretation of odds ratio is more intuitive. It would mean that for a unit change in the independent variable there would be a corresponding change in the Odds ratio.
In order to assess the reliability and consistency of the instrument the Cronbach"s Alpha (α) analysis was conducted. Then to determine the relationship among the variables and to test the research hypothesis logistic regression were used.

Introduction
This chapter presents analysis and findings of the study as set out in the research methodology. The study findings were presented to establish the budget management & control in Mettu Woreda FECo. The data was gathered exclusively from the questionnaire as the research instrument. The questionnaire was designed in line with the objectives of the study. The discussion begins with the questionnaires" response rate followed by the descriptive statistics of the respondents related questions; like the gender, age , educational status , marriage status & work experience. The results of the reliability analysis and the logistic regression test also reported and finally the results of hypothesis testing were presented.

Response Rate
The data were collected and then analyzed in response to the problems posed in the first chapter of this study. The findings are based on the responses of those selected public sector & finance standing committee with the help of questionnaire. 83 questionnaires were distributed and 73 returned from respondents and 10(12%) questionnaires were not returned. This represents a response rate of 88 percent. Therefore, data were analyzed based on the data collected using questionnaires from 73(88%) respondents.

Demographic Characteristics of the Respondents in the Organization
In order to have clear understanding about the result of the study, it is important to be familiar with demographic characteristics of the sample respondents who are close to public budget. 73 respondents were returned the questionnaire distributed to the 83 samples, which were found in Woreda FECo. Office, woreda poverty eradication sector, finance standing committee.
Then in this sub section, variables such as sex, age, marriage status. work experience and educational status of the respondents in the organization were analyzed. The information processed by SPSS is summarized as follows. As it can be seen in the above table there were a large number of male respondents which accounts for 49(59%) and 24(28.9%) of female working on FECo.Office and selected organizations in Mettu Woreda. This enables the researcher that there is no bias in the survey instrument related to the gender of the respondents.  Another commitment of employees to competence that contributes to effectiveness of budget management & control is the level of education the employees possess. This competence is referred to as academic competence. The management & control system reveals that a good education level has a positively determine the effectiveness of internal management & control in organizations. As summarized in the above table, majority of the respondents 43(51.8%) were qualified in first degree and 6.8% were master's degree which is favorable and led to contribute the presence of budget management & control in the governmental organizations. This is an indication that the respondents are also at suitable education level to understand the concept of budgeting and budget management & control system. Experience is one of the competences to understand managing & controlling activities in organization. Experience also referred to as professional competence which comes through practice. In the literature it is indicated that commitment to this competence by employees is one part of effective managing & control system.
Then purpose of the above table is to assess the experience of the respondents. Accordingly, 6% of respondents worked 1-5 years, 9.6% worked 6-10 years, and 28.9% respondents worked 11-15 years. In addition, 20.5% worked 16-20 years and 22.9% of respondents worked above 20 years. From this majority of respondents (72.3) worked in government organization for more than 11 years & above. Hence the more experienced employees are the more they understand about the public budget management and control they perform.

Reliability Analysis
To measure the consistency of the questionnaire particularly the Likert-type scale, the reliability analysis is essential in reflecting the overall reliability of constructs that it is measuring. To carry out the reliability analysis, Cronbach"s Alpha (α) is the most common measure of scale reliability and a value greater than 0.700 is very acceptable (Field 2009; Cohen and Sayag 2010) and according to Cronbach"s (1951), a reliability value (α) greater than 0.600 is also acceptable. From Table 6 above, the value for Cronbach's Alpha (α) was 0.765 for all variables. When these calculated reliability values are greater than 0.700 and compared with the minimum value of alpha 0.600 advocated by Cronbach's (1951), then the responses generated for all of the variables used in this research were reliable enough for data analysis.

Determinants of Budget Management and Control
The determinants of effective budget management & control in Mettu Woreda FECo.Office w e r e asked positively using likert scale through which respondent shown their level of agreement. The identified variables expected to improve the budget management & control. The respondent was asked to indicated their level of agreement with the factors on the following measurements scale such as 1=strongly agree 2= Agree, 3=Neutral, 4= Disagree, and 5= strongly disagree. Their responses organized in the following manner.

Prepare Proper Plan and Budget
According to Anwar S. (2007), to prepare proper budget plan, three preconditions were recommended as follows: The budget preparation and planning process has to consultative and participatory in order to ensure ownership to both the process and the approved budget; A systematic process of budget & planning preparation is based on suitable professional employees, reliable basic data, understanding strategic plan before prepare annual work plan & the budget it needs t h e n budget estimates must be realistic, and achievable. The respondents" response in relation to this and budget management & control was interpreted as follows: ➢ Unplanned activities came from the regional government without budget.
➢ Budget was not allocated according to prepared plan. Mostly it depends on the previous budget year.
➢ Human resource management in the Woreda was poor; that manpower in some sector excess.

➢
Most of capital budget was prepared without design, specification & engineering estimated cost of the project.

➢
Lack of SWOT analysis

Suitable Budget Execution
As per Allen and Tommasi (2001), successful budget execution depends on numerous factors, such as the implementation capacities of the agencies concerned.
Every budget user unit has the obligation to register daily inflow and outflow budget movement and maintain the balance on the ledger prepared for this purpose. The Finance & Economic Cooperation is authorized to follow how the allocated budget implemented with regarding to the prepared plan. The plan, budget, monitoring & evaluation work process in FECo responsible to evaluate take corrective action about the budget implementation & transfer.
However, according to the discussion shown by the Wereda's FECo. Office management members in interview part the following problems were observed in budget execution.

Budget Monitoring and Evaluation
Budget monitoring and evaluation is a key determinant for effectiveness, through an evaluation and monitoring, the organization can clarify what direction the evaluation should take based on priorities, resources, time, and skills needed to achieve the evaluation. To enhance effectiveness and transparency the management team should be actively involved in the process of monitoring and evaluation of budgetary control processes and procedures (Hancock 2009).
Then the survey result and analysis related to budget monitoring and evaluation in the Mettu Woreda FECo. Office is presented as follows.

Analyzing & Feedback Budgetary Recording
Budgetary or appropriation accounting consists of tracking & registering operations concerning appropriations and there uses. It should cover appropriations, distribution, any increase or decrease in appropriation commitment/obligations expenditures at the verification /delivery stage, and payments budgetary accounting is only one element of government accounting system, but it the most crucial for both formulating policy supervising budget implemention.In particular, weakness in budgetary accounting and recording make quality analysis of the performance outputs impossible. Most develop countries keep registers for the transaction at each stage of the expenditure cycle, or at least at the obligation stage & the payment stage. This whatever their accounting system or budget implementation procedures. Many developing countries keep similar registers either at spending agency level or through centralized control procedures. However, on both cases, budgetary accounting presents insufficiencies.

Competent Internal Audit
According to (Havens 1999), the benefits of effective auditing for public budget control are determining the reliability of reports on budget execution and other financial data, Provide reliable data about program results as a basis for future adjustments in budget allocations, identify cases and patterns of waste and inefficiency that, if corrected, will permit more economical use of available budget resources, and detect irregularities involving the misuse of public funds and identify related weaknesses in management controls that may endanger the integrity of the organization and the effective implementation of budgetary and other policy decisions. The survey result and analysis on this issue; therefore, is presented as follows.

Binary logistic regression analysis
Under this study it is important to carry out a statistical analysis which would incorporate more than one predictor variable at a time. The regression analysis method adopted in this study is binary logistic regression, which would allow the identification of the effect of each of the selected predictor variables on budget control for the effects of other predictor variable

The assessment of prediction power of baseline model/null model
In this description, table shows that the null model (constant in the equation i.e. constant is analogous to the y-intercept in OLS regression) logistic coefficient (β) associated with the constant variable and the overall statistics prediction power of null models respectively. Table 4.14: the significance of the models with only constant at (0.015) which is less than the level of significance of 0.05 (i.e. p<0.05). Moreover, the overall statistic is correct to extent of 83.56%-so it is better than a cut point 0.5 (better than just guessing).   Source: SPSSResults 2020. Table above shows that when all seven predictor variables are considered together, they significantly predict the budget control in public organization at χ2 = 42.327, df= 5, N=73, p<.05.

Beginning Block
The table labeled variables not in the equation tell us that the residual chi-square statistics 42.327 Which is significant at p<0.05 (it labels this statistic overall statics).
In other words, the addition of one or more of these variables to the model will significantly affect its predictive power. If the probability for the residual chi-square had been greater 0.05 it would meant that forcing the entire variable excluded from the model into the model would not have made a significant contribution to its predictive power. In the

Evaluation of Prediction Power of Models with All Predictors
In this section, further analysis of prediction power of models with all predictors and percentage dependent variable explained by var i a bl es . Accordingly, table 13 & 14 with Cox & Snell R Square and the Nagelkerke's R 2 , they provide an indication of the amount of variation in the dependent variable. But, the Nagelkerke's R2 modification that does range from 0 to 1 is a more reliable measure of the relationship with a better model displaying a value closer to 1 and provides an indication of the model fitting information. Thus, there is good relationship between the predictors and the response variable at 76%. And also, as per table 15 model with all predictors is 84.9 % accurate in determining the dependent variable. a. Estimation terminated at iteration number 6 because parameter estimates Changed by less than .001 for split file $bootstrap split = 0. Source: compiled by author.
The overall fit of the new model is assessed using the log-likelihood statistic. In SPSS, rather than reporting the log-likelihood itself, the value is multiplied by −2 (and sometimes referred to as −2LL): this multiplication is done because −2LL has an approximately chi-square distribution and so it makes it possible to compare values against those that we might expect to get by chance alone (Cohen et.al 2003).
At this stage of the analysis the value of −2LL should be less than the value when only the constant was included in the model (because lower values of −2LL indicate that the model is predicting the outcome variable more accurately). When only the constant was included, −2LL = 193.847, but now predictor of budget management & control has been included this value has been reduced to 151.520. This reduction tells us that the model is better at predicting (Chatterjee and Hadi 2006).
The question of how much better the model predicts the outcome variable can be assessed using the model chisquare statistic, which measures the difference between the model as it currently stands and the model when only the constant was included.
We could assess the significance of the change in a model by taking the log-likelihood of the new model and subtracting the log-likelihood of the baseline model from it. The value of the model chi-square statistic works on this principle and is, therefore, equal to −2LL with predictor of budget control included minus the value of −2LL when only the constant was in the model (193.847-151.520 =42.327)

Goodness of Fit of Model
The following (Table 18) of Hosmer and Lemeshow test, which divides subjects into 10 ordered groups of subjects and then compares the number actually in each group (observed) to predicted probabilities of occurrence in subgroups of the model population. Each of these categories is further divided into two groups based on the actual observed outcome variable (presence of budget management & control, absence of budget management control Appendix III). A probability (p) value is computed (comparing the observed frequencies with those expected) under the linear model from the chi-square distribution with 8 (number of groups -2) degrees of freedom to test the fit of the logistic model.
Small values (with large p-value closer to 1) indicate a good fit to the data, i.e. an insignificant chi-square indicates a good fit to the data and, therefore, good overall model fit. Since the p-value is 0.847 which is insignificant therefore our fitted logistic regression model is good fit (

Parameters Estimates and Significance levels of Each Predictor in the Model
Once all above section is described well, the last important thing is identifying The Wald statistics has a chi -square distribution that provide an index of effect of the predictors on dependent variable in the equation which used to test whether all predictors' coefficients are different from zero to show and to enable to understand that at least one predictor " has effect on outcomes (Bewick et al. 2005).
Additionally, the P value is simplest way to assess the significance of each predictor.
In this case, if predictors p value is less than 0.05 (P<0.05); then each predictors have a significance effect on response/ dependent variable. Moreover, EXP(β) is namely called as odd ratio, it meant that it is the exponential of the logistic coefficients revealed relationship type between the predictors and the outcomes and also presents the extent or influence level to which raising the corresponding measure by one unit influences the odds ratio. Consequently, if the EXP (β) value just below 1 indicate the event is less likely to happen in the comparison than in the base group, and mean that there is no effect of that variable on the outcome at which result of the Wald statistic is near and became to zero and result of p-value is non-significant, if the EXP (β) value is just above 1 to infinity indicate the event is more likely to happen in the comparator than in the base group(Park and Hyeoun-Ae 2013). This study discovered in

Statistical test of hypothesis
To achieve the objective of the study and to test the related hypotheses the logistic regression statistics computed in above The main reasons are lack of adequate professionals, unplanned activities comes from the regional government without budget, employed the workers without plan and interference of woreda's administrative council that command unplanned expenditure. Also, less attention is given for the preparation of plan & budget and the plan is not revise with the allocated budget. The preparation process must consultative and participatory to ensure ownership to both the process and the approved budget, a systematic process of prioritization of programs and expenditures, which is based on informed choices, must take place, and planned outputs, activities, and expenditure allocations in the annual work plan and budget estimates must be realistic, and achievable as recommended by (Anwar S.2007).
Therefore, this result is consistent with (Mohammed and Asfaw 2014) study on government expenditure management and control in Ethiopia which revealed that there is a problem of linking the work plan with expenditure budget preparation, purchasing of goods and services is not based on the annual action plan by sectors and there is a problem of budget preparation and execution not effectively controlling budget in public sector offices.

H02: The budget execution has no significant effect on budget management and control of the office;
On the other hand, the result of logistic regression showed in

H03: Monitoring and evaluation budget have no significant effect on budget management and control of the office.
The third hypothesis of this research which is assumed to monitoring and evaluation had significant effect on budget management & control. As shown in Table 19 above the Wald test= 3.664, p =.018, Exp (β) =4.67. Then the logistic regression results also showed that monitoring and evaluation had significant effect on budget management & control at 5% significant level by rejecting H0 this was consistent with (Hancock 2009), to enhance effectiveness and transparency the management team should be actively involved in the process of monitoring and evaluation of budget management & control processes and procedures in office.

H04: Analysing and feedback in budgetary records has no significant effect on budget management and control of the office;
The result of logistic regression showed in

Summary of Major Findings
This research was established to know the gaps of budget management & controls in Mettu Wereda FECo. Office, and to identify the determinants of budgetary management & controls. To accomplish these studies nine sectors were sampled using judgmental sampling by the researcher based on their closeness and most budgeted. (More governmental attention in case of poverty eradicates) From the total of 83 questionnaires distributed to sampled respondents, 73 questionnaires were collected and analyzed using the Statistical Package for Social Sciences (SPSS) using descriptive statistics and binary logistic regression analysis was employed in the research to investigate the gaps of budget management & controls at Mettu Wereda FECo. Office. The various variables affecting budget management & controls; proper plan & budget preparation, budget execution, budget monitoring and evaluation, analyzing &feedback budgetary records and competent internal audit staff, were examined individually and compared to budget management & controls, mean were used based on the likert scale used of 1 to 5 and analyzed using percentages. According to the logistic regression output all the predictors were positively contributed for budget management & control functions in Mettu Wereda FECo. Offices except analyzing & feedback budgetary records that relatively in good condition. Therefore, the office should give emphasis to use these determinant variables to make their service delivery effective, efficient, and economical. Moreover, proper plan & budget preparation, the competent internal audit's staff, bu dget execution and budget monitoring and evaluation were the major gaps of budget management & control in the office. However, the analyzing & feedback budgetary records were not significantly determining the budget management & control in the office as of the above four variables for this specific study.
This study finds that the composite measure of proper plan &budget, budget execution, competent internal audit staff, budget monitoring and evaluation, and analyzing & feedback budget records for 78% (Nagelkerke modified R 2 =0.78) variance for the budget management & control in the Worda's FECo. Offices. That means, the impact of these five independent variables contributed for the dependent variable effective & efficiencies budget management & control were 78%, and the remaining 22% were other variables that are not included in this study. Thus, the conclusions and recommendations are drawn from the findings of the study specifically related to proper plan &budget, budget execution, competent internal audit staff, and budget monitoring and evaluation given to the budget management & control activities in the Mettu Woreda FECo. Office.

Conclusion
Due to its important role, it plays for the overall management system, budget control is the major mechanism to confirm comprehensive administrations governance. The presences of effective budget control in the office links with internal control management system & proper plan and budget preparation improves organizational efficiency and effectiveness, reduce information irregularity during decision making, and ensures internal reliability of financial reporting process. By taking this aspect into consideration, this study was identified causes that determine the budget management & control in the office. And also by testing of the proposed hypotheses showed relations of these independent variables with the budget management & control, the following conclusions were drawn.
➢ The inaccessibility of adequate & experienced manpower in the office results of plan and budget preparation gaps.
➢ The employees under the plan, budget, and monitoring & evaluation work process don't have get regular training and, they didn't give training for the plan & budget workers of other sectors in the woreda.
➢ The budget expenditure indicated that there is under/overused of adjusted budget in the study period. The reasons for the variation according to physical plan there is lack of preparing annual plan based on strategies documented and also lack of reliable & reasonable estimated cost to properly prepare the budget.
➢ The wereda faces deficit of budget but the study indicated that there is unused budget is there because of no regular follow up of monitoring & evolution of budget. In addition, much deviation has not observed in budgetary records, the adoption of modified cash basis of accounting system has not been implemented fully.
➢ In Mettu Woreda FECo. Office there is a control system the survey also ensured that but there are deficiencies in the internal control system implementation practically the independence & professional skills of internal auditors doubtful. Beside internal auditors do not perform performance auditing which adversely affect the efficiency & effectiveness of budget spending. Therefore, is the fund lack of properly utilizing for intended purpose.

Recommendations
The main intention of this project paper is to identify the fundamental causes of Mettu Woreda FECo. Office budget management and control weaknesses observed and suggest possible recommendations to overcome such problems. Therefore, the following recommendations to the Woreda's FECo. Office, the Woreda's Administration council and BoFECO. Thus, the FECo. Offices assign appropriate each individual adequate knowledge on the field, the right person should be put at the right place. Also, different performance improving tools should be implemented like business process reengineering (BPR). Moreover, the opinion suggested by Oromia National Regional State Office of Auditor General should be consider carefully and very strong monitoring & evaluation of the office management needed. The office does not permit a budget for unplanned activities and it has to provide a training for all sectors in the woreda specially in preparation of plan & budget.
The Mettu Woreda's Administration council recommended to support and monitoring the FECo. Office closely but minimize interference in authority of the office. Additionally coordinate & evaluate the sectors in basic data they collect and organized. The BoFECO recommended arranged short-term training to develop uniform skills & workers under plan, budget, monitoring & evaluation. Finally, the office need to investigate other factors that contribute to better budget management & controls, like employees motivation and invest more in staff capacity building in order to enhance their performance.