AN ASSESSMENT OF EFFECTIVENESS OF FINANCIAL CONTROL IN PUBLIC SECTOR (A CASE STUDY OF MINISTRY OF FINANCE ENUGU)
AN ASSESSMENT OF EFFECTIVENESS OF FINANCIAL CONTROL IN PUBLIC SECTOR
(A CASE STUDY OF MINISTRY OF FINANCE ENUGU)
1.0 Introduction 1
2.0 Review of Related Literature 8
federal ministry of finance 22
3.0 Methodology 23
4.1 Summary of findings 32
5.0 Discussion, Implication and Recommendation 34
Bibliography 42
Questionnaire 44
4.1: Responses of the respondents on the major accounting book kept in the accounts division
4.2: Responses of the respondents on the causes of fraud and embezzlement
4.3: Responses of the respondents on the duties of the vote controller
4.4: Responses of the respondents on the effect of ineffective internal control
4.5: Responses of the respondents on if an introduction of a computerized accounting system and provision of proper incentive to worker will enhance the financial control and workers attitude to work.
4.6 Responses of the respondents on the effect of the vote controllers attitude towards causes of fraud and embezzlement.
ABSTRACT
Financial planning and control have become very vital part and parcel of effective management. We have come to realize that it is a key factor to the success of all public and private enterprise in the country.
This project strives at finding how environment and other public enterprises have achieved their efficiency through financial planning and control.
The project covers mainly the method of financial control in the federal ministry of finance, showing the attitude of the vote controller towards the DVEA books. It analysis the regular entries made in the vote books and the need for a frequent reconciliation of vote books on a regular basis.
Finally, the project covers the role of audit department sowing how internal and external auditors aid in detecting fraud and embezzlement and keeping it under control.
To conduct the study, the researcher designed a questionnaire for both the junior and senior staffs of the ministry; structured interviews were also used in conducting the study.
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The government unit federal, state and local government is a typical institution outside private business enterprise that needs extensive accounting. The federal government of Nigeria owns a great aggregate of properties, do extensive industrial projects such as construction, mining and establishment of new refineries etc. It also engage on non – industrial operations and handles excessive cash. The recent past witnessed a huge commitment in public finance. The third and fourth national development plans involved estimated expenditure of N43. Billion and N82 billion respectively. Every part of the public expenditure has been increasing greatly. The administrative cost is enormous. The government is now investing heavily on industrial projects as mentioned above to see that Nigeria attains a high level of industrial development in no distant future.
Moreover, the growth in oil earning though slowing down now, contributes immensely to the increased expenditure. Revenue has been growing rapidly during the years. Oil revenue contributed greatly to the growth of public finance while non oil revenue sector has remained a small and slow contributor. For all these, the government records accounting. Similarly, the state and local government often carry out some commercial markets, houses etc.
To understand properly, the role of accounting and management control in public sector, it would be necessary to look at accounting as a profession.
ACCOUNTANCY: This is a profession that coordinate the function of financial account, costing and management accounts, auditing, investigation and the financial management account. As a principle, it is concerned with recording analysis, summary interpretation of business transactions, forecasting of income and wealth.
The accountancy profession has a very broad contact with the public it is required in everyday activity. The government, manufacturers, exporters, clubs, etc require the service of an accountant. The accountants are not only concerned with accounting for revenue and expenditure but also in a position to advise the government on all revenue matters. They also have authority to accept or reject any request for expenditure in both public and private sectors. The role of public accounting portrays accounting as a catalyst to responsibility.
1.2 STATEMENT OF THE PROBLEM
The financial planners especially those in public sector concerned with the financial control of the government funds are with a lot of problems.
The planning for the acquisition of adequate funds as well as application of such funds so raised is no longer an easy task. A weak system of accounting is adopted which gives rise to fraud and embezzlement that is difficult to control.
There is inadequate information on government’s income and expenditure in this sector of the economy. External auditors cannot perform efficiently in the cash unit.
There is also lack of proper control of government funds which gives rise to a situation where a cashier practice a kind of fraud known as “Teaming and ladding” ie the cashier continues to use the government fund for his own personal use.
Finally, in most cases, the budgeting and planning unit creat more problems in that they do not comply with the stated budget figures for the period.
The above problems have made it impossible for these accountants to work effectively in planning and forecasting accurately. Meanwhile, the accountants general of the federal government is expected to correct these problems by introducing a sound accounting system and book keeping whereby fraud and embezzlement is checked at the highest levels.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to examine the role of accounting in public finance, in order to see how it has been increasing over the years. It would provide a detailed information as to the mounting role of accounting in the civil service.
The study of financial control and management in private and public sectors aim at developing realistic picture of how financial control can help make the government sector more efficient, effective and successful.
Other purposes include: To identify the problems and the causes of already identified problems of the government sector and in public finance, to examine and make recommendations on what other possible measure that could be adopted in order to curb these problems or improve on the current state of affairs, to high light that there exist ordinances laws, principles and rules guiding the government accounting in Nigeria just as their counterparts in private organizations, to examine the attitude of the vote controller and also how developmental control book DVEA is being maintained.
1.4 SCOPE OF THE STUDY
The researcher intends to limit this study on how accounting and financial functions can assist in planning and control of the public sector.
However, the study would be narrowed down to cover only the ministry of finance and briefly on other related governmental organizations.
1.5 RESEARCH QUESTIONS
1.6 SIGNIFICANCE OF THE STUDY
The study will be of immense importance to our Nigerian leaders (policy makers) in portraying that prudent financial planning and control is one of the most important ways by which the economy could be improved.
It is also intended for staff at all levels, and is hoped that it would contribute to their skills and knowledge.
1.7 DEFINITION OF TERMS
DVEA BOOK: This is maintained for each subhead and is an integral part of the system of budget control. It is designed to facilitate vote watching. The allocation of responsibility to accounting officers to ensure that excpenditure in excess of appropriation or in excess of authority to incur expenditure does not occur.
ALLOCATION: This is the amount approved under recurrent and capital expenditure.
WARRANTS: Authority to incur expenditure are usually signed by minister of finance, to enable accountant general of the federation to disburse out of public funds.
FINANCE: The evaluation and acquisition of productive assets, procurement of funds and disbursement of funds.
STRATEGIC PLANNING: Continuous process of making present risk taking decisions by systematically and with greatest knowledge of futurity.
CONTROL: The presence in a business of that force which divide it to a predetermined policy and decision.
BUDGET: (A financial plan) quantitative expression of a plan of action and an aid to coordination and implementation.
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THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
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ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
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CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
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(A CASE STUDY OF MINISTRY OF FINANCE ENUGU)
CHAPTER ONE
1.0 Introduction 1
- Background to the Study 1
- Statement of the Problem 3
- Purpose of the Study 4
- Scope of the Study 5
- Research Questions 5
- Significance of the Study 6
- Definition of Terms 6
CHAPTER TWO
2.0 Review of Related Literature 8
- Concepts of Accounting 8
- Nigerian experience in accounting and management 11
- Financial management in Nigeria public sector 12
- Guiding rules for government account 14
- The role of the audit department 17
- The role of external auditor 18
- Department control and responsibility over the accounts 19
- When genuine claim may be dishonored by vote controller 20
- What is over expenditure in vote controlling 21
- Extent of excess expenditure and fraud on
federal ministry of finance 22
CHAPTER THREE
3.0 Methodology 23
- Research Design 23
- Area of Study 23
- Population of the Study 24
- Sample and Sampling Procedure 24
- Instrument for Data Collection 24
- Validation of the Research Instrument 25
- Reliability of the research instrument 25
- Method of administration of the research instrument 25
- Method of data analysis 25
CHAPTER FOUR
- Data presentation and results 27
4.1 Summary of findings 32
CHAPTER FIVE
5.0 Discussion, Implication and Recommendation 34
- Discussion of Results 34
- Conclusions 36
- Implications of the Results 38
- Recommendations 38
- Suggestions for further research 40
- Limitation of the study 41
Bibliography 42
Questionnaire 44
LIST OF TABLES
4.1: Responses of the respondents on the major accounting book kept in the accounts division
4.2: Responses of the respondents on the causes of fraud and embezzlement
4.3: Responses of the respondents on the duties of the vote controller
4.4: Responses of the respondents on the effect of ineffective internal control
4.5: Responses of the respondents on if an introduction of a computerized accounting system and provision of proper incentive to worker will enhance the financial control and workers attitude to work.
4.6 Responses of the respondents on the effect of the vote controllers attitude towards causes of fraud and embezzlement.
ABSTRACT
Financial planning and control have become very vital part and parcel of effective management. We have come to realize that it is a key factor to the success of all public and private enterprise in the country.
This project strives at finding how environment and other public enterprises have achieved their efficiency through financial planning and control.
The project covers mainly the method of financial control in the federal ministry of finance, showing the attitude of the vote controller towards the DVEA books. It analysis the regular entries made in the vote books and the need for a frequent reconciliation of vote books on a regular basis.
Finally, the project covers the role of audit department sowing how internal and external auditors aid in detecting fraud and embezzlement and keeping it under control.
To conduct the study, the researcher designed a questionnaire for both the junior and senior staffs of the ministry; structured interviews were also used in conducting the study.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The government unit federal, state and local government is a typical institution outside private business enterprise that needs extensive accounting. The federal government of Nigeria owns a great aggregate of properties, do extensive industrial projects such as construction, mining and establishment of new refineries etc. It also engage on non – industrial operations and handles excessive cash. The recent past witnessed a huge commitment in public finance. The third and fourth national development plans involved estimated expenditure of N43. Billion and N82 billion respectively. Every part of the public expenditure has been increasing greatly. The administrative cost is enormous. The government is now investing heavily on industrial projects as mentioned above to see that Nigeria attains a high level of industrial development in no distant future.
Moreover, the growth in oil earning though slowing down now, contributes immensely to the increased expenditure. Revenue has been growing rapidly during the years. Oil revenue contributed greatly to the growth of public finance while non oil revenue sector has remained a small and slow contributor. For all these, the government records accounting. Similarly, the state and local government often carry out some commercial markets, houses etc.
To understand properly, the role of accounting and management control in public sector, it would be necessary to look at accounting as a profession.
ACCOUNTANCY: This is a profession that coordinate the function of financial account, costing and management accounts, auditing, investigation and the financial management account. As a principle, it is concerned with recording analysis, summary interpretation of business transactions, forecasting of income and wealth.
The accountancy profession has a very broad contact with the public it is required in everyday activity. The government, manufacturers, exporters, clubs, etc require the service of an accountant. The accountants are not only concerned with accounting for revenue and expenditure but also in a position to advise the government on all revenue matters. They also have authority to accept or reject any request for expenditure in both public and private sectors. The role of public accounting portrays accounting as a catalyst to responsibility.
1.2 STATEMENT OF THE PROBLEM
The financial planners especially those in public sector concerned with the financial control of the government funds are with a lot of problems.
The planning for the acquisition of adequate funds as well as application of such funds so raised is no longer an easy task. A weak system of accounting is adopted which gives rise to fraud and embezzlement that is difficult to control.
There is inadequate information on government’s income and expenditure in this sector of the economy. External auditors cannot perform efficiently in the cash unit.
There is also lack of proper control of government funds which gives rise to a situation where a cashier practice a kind of fraud known as “Teaming and ladding” ie the cashier continues to use the government fund for his own personal use.
Finally, in most cases, the budgeting and planning unit creat more problems in that they do not comply with the stated budget figures for the period.
The above problems have made it impossible for these accountants to work effectively in planning and forecasting accurately. Meanwhile, the accountants general of the federal government is expected to correct these problems by introducing a sound accounting system and book keeping whereby fraud and embezzlement is checked at the highest levels.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to examine the role of accounting in public finance, in order to see how it has been increasing over the years. It would provide a detailed information as to the mounting role of accounting in the civil service.
The study of financial control and management in private and public sectors aim at developing realistic picture of how financial control can help make the government sector more efficient, effective and successful.
Other purposes include: To identify the problems and the causes of already identified problems of the government sector and in public finance, to examine and make recommendations on what other possible measure that could be adopted in order to curb these problems or improve on the current state of affairs, to high light that there exist ordinances laws, principles and rules guiding the government accounting in Nigeria just as their counterparts in private organizations, to examine the attitude of the vote controller and also how developmental control book DVEA is being maintained.
1.4 SCOPE OF THE STUDY
The researcher intends to limit this study on how accounting and financial functions can assist in planning and control of the public sector.
However, the study would be narrowed down to cover only the ministry of finance and briefly on other related governmental organizations.
1.5 RESEARCH QUESTIONS
- What causes fraud and embezzlement in the sector
- Why do external auditors perform inefficiently in the cash unit?
- To what extent do the attitude of the cashier affect the financial control of the sector?
- What factor contributes to excess government expenditure?
- To what extent can the inefficiency of the accountants in planning and forecasting be controlled?
1.6 SIGNIFICANCE OF THE STUDY
The study will be of immense importance to our Nigerian leaders (policy makers) in portraying that prudent financial planning and control is one of the most important ways by which the economy could be improved.
It is also intended for staff at all levels, and is hoped that it would contribute to their skills and knowledge.
1.7 DEFINITION OF TERMS
DVEA BOOK: This is maintained for each subhead and is an integral part of the system of budget control. It is designed to facilitate vote watching. The allocation of responsibility to accounting officers to ensure that excpenditure in excess of appropriation or in excess of authority to incur expenditure does not occur.
ALLOCATION: This is the amount approved under recurrent and capital expenditure.
WARRANTS: Authority to incur expenditure are usually signed by minister of finance, to enable accountant general of the federation to disburse out of public funds.
FINANCE: The evaluation and acquisition of productive assets, procurement of funds and disbursement of funds.
STRATEGIC PLANNING: Continuous process of making present risk taking decisions by systematically and with greatest knowledge of futurity.
CONTROL: The presence in a business of that force which divide it to a predetermined policy and decision.
BUDGET: (A financial plan) quantitative expression of a plan of action and an aid to coordination and implementation.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
MAKE YOUR PAYMENT INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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