The relationship between budget allocated and budget utilized of faculties in an academic institution

Budget planning enables an organization to set priorities towards achieving certain goals and to identify the highest priorities to be accomplished with the available funds, thus allowing allocation of resources according to the set priorities and constraints. On the other hand, budget execution and monitoring enables allocated funds or resources to be utilized as planned. Our study concerns with investigating the relationship between budget allocation and budget utilization of faculties in a public university in Malaysia. The focus is on the university's operations management financial allocation and utilization based on five categories which are emolument expenditure, academic or services and supplies expenditure, maintenance expenditure, student expenditure and others expenditure. The analysis on financial allocation and utilization is performed based on yearly quarters. Data collected include three years faculties' budget allocation and budget utilization performance involving a sample of ten selected faculties of a public university in Malaysia. Results show that there are positive correlation and significant relationship between quarterly budget allocation and quarterly budget utilization. This study found that emolument give the highest contribution to the total allocation and total utilization for all quarters. This paper presents some findings based on statistical analysis conducted which include descriptive statistics and correlation analysis.