Abstract:
Private Educational Institution as a learning center takes the responsibility of educating the youths in the community in an attempt to bridge the gaps in funding by the government. Private investors have been involved in education in Nigeria, starting from the primary to the tertiary institutions. They generate funds from tuition fees paid by
parents and in turn create job opportunities for many within the community, thereby reducing the level of unemployed rate. Expectedly, institutions should make projection into the future and on the direction of their investiment on a yearly plan, an approach which is known as an advance planning and control of financial functions in all activities. The invasion of COVID -19 has posed a great challenge to the financial plans of the institutions as many could not pay their staff during the total lockdown. This study therefore investigates the implication of COVID-19 on institutional financial budgets and budgetary control. The study is quantitative whereby data were collected from institutions in Osogbo area of Osun-state, Nigeria. The paper explores finding from accounting officers of known private primary, secondaries and tertiary schools. The study found that so many institutions in the state operate without reporting the financial position to any government established or stakeholder as majority of the institutions are sole proprietors. It was also observed that majority of the institutions were never prepared for any unforeseen circumstance, making it difficult to grant palliative measure to their staff during the lockdown. Few institutions that were able to start online lessons for their students started as a means of getting money from parents so as to pay bills. However, the expenses incurred to secure internet facilities for the delivery was high and not subsidized for during the pandemic period. The study revealed that COVID -19 has negative implication
on financial budgets and budgetary control. This paper will impact on government’s policies on financial budget and budgeting control as it suggests possible solutions and application of necessary force and lawful control to the investment of private institutions in the country.
