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Decentralization is the devolution of power to local government bodies with the view of promoting development at local level of the country. Zambia is in
Decentralization is the devolution of power to local government bodies with the view of promoting development at local level of the country. Zambia is in the process of fully implementing its decentralization program, however, the central government shall also continue to build capacity in local councils for them to improve performance of such core functions as planning and budgeting, personnel and financial management. Stakeholders expect to see value for money and local bodies need to focus on the three performance judgment terms, Economy, Efficiency and Effectiveness. As a new management accountant at one of the local authorities, you input is required regarding performance measurement in Not for Profit organizations. Required i. Discuss ANY FOUR problems associated with performance measurement in a Not for Profit organization. (10 Marks) ii. Explain the relevance of the three terms Economy, Efficiency and Effectiveness in the context of the statement above. Marks) iii. Articulate how using Zero Based Budgeting (ZBB) would benefit a Not for Profit organization as opposed to using an incremental Budget. (9 Marks) ITOTAL 25 Marksl
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