Evaluation of the budget execution in EP EMAPAR and its impact on financial management

Abstract

Introduction: The budget is a fundamental tool for the harmonious and efficient administration of expenses and income of an organization. That is why both public and private companies make use of it, since it allows future situations to be foreseen, devising mechanisms and strategies that allow the proper use of available resources. Therefore, the budget is considered an instrument for planning, coordinating, and controlling activities and functions. Objectives: To provide suggestions or recommendations that allow efficient and effective administrative processes in the "EP EMAPAR" a study was carried out whose main objective was to evaluate the execution of the budget in the mentioned company. Methodology: Documentary and field research techniques were applied, with a descriptive level. Results: Once the analysis was completed through direct and documentary observation, as well as through the application of an unstructured interview, it was possible to conclude that the budget execution procedure is adequate, but it has some deficiencies, the most highlighting the failures in the distribution and execution of expenses by the company's directorates, since each of them made more than seven transfers during the year, as well as the lack of manuals of administrative norms and procedures. Conclusions: For this reason, the authorities of EP-EMAPAR are encouraged to the budget execution procedure is adequate, but it presents weaknesses in the distribution and execution of expenses by the units and administrative coordinations, for which it required more than seven transfers each, during the year.