Intrinsic Factors Affecting Budget Utilization in Ethiopian Public Universities
Higher education budget utilization has been adversely affecting proper implementation of government policies, programs and projects in Ethiopia. This study sought to investigate internal (intrinsic) factors that affect budget utilization in public universities of Ethiopia in 2016. A total of 178 respondents were randomly selected from Dilla, Wolaita Sodo and Bule Hora Universities. Primary data were collected using closed and open questionnaires. To supplement the survey result secondary data were collected from federal general auditor annual report. The data were analyzed using various descriptive statistics. The findings indicated significant improvement of budget allocation to public universities from time to time. However, lack of proper planning and allocation of budget in these Universities were found to be serious challenges. Inadequate timely revision of initial proposed physical activity plan based on the approved and available budget, inadequate knowledge on the concept of program budgeting system, shortage of adequate number of human resources and insufficient involvement of all concerned bodies during the budget plan preparation were found to be main the causes of the aforementioned problems. Decentralized budget administration system, absence of result oriented evaluation of budget performance and regular revision of plan in accordance with the available budget, lack of effective communication, lack of effective budget monitoring and evaluation, and absence of full involvement of the line managers in planning process were identified as the most important internal factors that affected budget utilization in public universities. This study recommended that due attention should be given by University top management during budget plan, allocation and implementation. The result also suggested capacitating the employees' skill, knowledge and attitude through continuous on job training programs. Keywords: Budget Utilization, Public Universities, Internal Factors, Ethiopia