ALLOCATION AND CONTROL OF FUNDS IN THE PUBLIC SECTOR WITH SPECIAL REFERENCE TO EXCESS EXPENDITURE. (A CASE STUDY OF ENUGU SOUTH L.G.A)

ALLOCATION AND CONTROL OF FUNDS IN THE PUBLIC SECTOR WITH SPECIAL REFERENCE TO EXCESS EXPENDITURE.

(A CASE STUDY OF ENUGU SOUTH L.G.A)

ABSTRACT

The project I have written brings out on attempt to study of the allocation and control of funds in public section with special reference to excess expenditure.

The research effort at achieving the following objectives

1. Finding out that excess expenditure was to improper maintenance of department votes expenditure analysis books (DVEAB).


2. Ascertaining that the occurrence of excess expenditure is as a result of careful attitudes of the vote controller.


3. Having found the various ways of controlling excess expenditure, which should depend on the academic background of those hading the vote books ie. If they are well trained in of the are of accounting as to understand the various use of departmental vote expenditure analysis book.

These goals were achieve through a surely of the local government revenue allocation and expenses with special regards to excess expenditure will be made and a simple size which was statistically determined, questionnaires instrument were sued to collect the primary data for the study.

The government financial and annual audit report served as useful source of secondary data. To solidity the reliability of the result of the questionnaire interview were conducted which finally confirmed the result got from the questionnaire

CHAPTER ONE

• BACKGROUND STUDY 1

1.1    INTRODUCTION                                                                  1

• STATEMENT OF PROBLEM 5


• PURPOSE OF STUDY 7


• OBJECTIVES OF STUDY 8


• STATEMENT OF RESEARCH QUESTIONS 9


• SCOPE OF STUDY 10


• DELIMITATIONS OF THE STUDY 11


• LIMITATIONS OF THE STUDY 11


• SIGNIFICANT OF THE STUDY           12


• DEFINITION OF TERMS 13

CHAPTER TWO

• OVERVIEW OF PUBLIC SECTOR

ACCOUNTING IN NIGERIA                                                          14

2.1    REVIEW OF RELATED LITERATURE                              17

• SOURCE AND STRUCTURE OF LOCAL

GOVERNMENT REVENUE                                                18

• AUTHORIZATION OF EXPENDITURE FROM

GOVERNMENT FUNDS                                                      20

• LOCAL GOVERNMENT EXPENDITURE 21


• EXTENT OF EXCESS EXPENDITURE IN

THE LOCAL GOVERNMENT                                              22

• DISBURSEMENT OF FUNDS 22


• EXCESS EXPENDITURE IN VOTE CONTROLLING 27


• THE EXTENT OF EXCESS EXPENDITURE 28


• WHEN MAY A VOTE CONTROLLER DISHONOR

GENUINE CLAIM                                                                  32

• MANAGEMENT AND ACCOUNTABILITY                             33


• EXPENDITURE CONTROL 36


• CLASSIFICATION OF CONTROL 41

 

CHAPTER THREE

• RESEARCH METHODOLOGY AND TECHNIQUE

METHOD OF DATA COLLECTION                          45

3.1    METHOD OF DATA COLLECTION                          45

3.2    RESEARCH INSTRUMENTS                                    46

3.3    METHODS OF DATA ANALYSIS                                       48

3.4    STATEMENT OF RESEARCH

QUESTION TO BE TESTED                                     50

CHAPTER FOUR

• ANALYSIS OF DATA PRESENTATION 59

4.1    QUESTIONNAIRES DISTRIBUTION AND COL.    59

• TEST AND RESULT OF RESEARCH QUESTIONS 68

CHAPTER FIVE

• SUMMARY OF FINDINGS COLLUSION AND RECOMMENDATION                                       71

5.1    SUMMARY OF FINDINGS AND OBSERVATION   71

• CONCLUSION 75


• RECOMMENDATIONS 76

 

APPENDIX                                                                            81

PROPOSAL

It is a widely held opinion by financial experts that the public sector in Nigeria controls about seventy percent (70%) of the asset base of this country.

Nigeria is a federation made up of one central government, 36 state government. The federal capital tem troy, and about 774 local government each performing clearly spat out functions and having distinguishable taxing powers.

Much of the taxing powers expectedly is concentrated in the federal government supposedly to make it strong and able to cope with the numbers responsibilities.          The federal government has preponderance of powers in administration and collection of tax.

The few that are left for the states and local government have very low tax yield comparatively,

Equity, reasoning and fair play suggest that the function to be performed by each unit should correspond to the revenue made available to it. It follows therefore that the federal government should perform most function in line with it’s overwhelming revenue capability. Yet some of the these functions are most suitable in the lower rings of the federal.

The major tool employed by the government in normalizing reasonable the inequalities in the revenue generating powers of the three tiers of government in Nigeria accordingly by sec. 149(5) of the constitution.

Convergent funds are public funds sourced from the various revenue potentials of the government. All such revenue are collected and accounted for under different government funds. It is from these funds that following authorization, expenditures could be made. The constitution of the federal republic of Nigeria, financial legislation and particularly, financial regulation pf the federal government of 1976 regulate the authorization of expenditure from the various government funds.

The research want to study the allocation and control of funds in public sector with special reference to excess expenditure.

The research effort aim at achieving the following objectives

1. To find out the cause(s) of excess expenditure.


2. To ascertain if the occurrence of excess expenditure is as a result of careful attitudes of the vote controller.


3. To know the academic background the those handing the vote books so as to know if they are well trained in the areas of accounting as to understand the various use of the department vote expenditure analysis book.

 

These goals will be achieved through a survey of the local government revenue allocation and expense with special regard to excess expenditure will be made and a sample size which will be statistically determined.

Questionnaires instrument is going to be used in collecting the primary data for the study. The government financial and annual audit report will serve as useful sources of secondary data. To solidity the reliability of the results of the questionnaires, interviews will be conducted which is going to confirm the result that the researcher will get from the questionnaire

 

 

 




CHAPTER ONE

1.0    BACKGROUND OF THE STUDY

1.1    INTRODUCTION

Sequel to the economic and the financial of the federal republic of Nigeria in 1986, the government directed that the ministries, parastatals agencies and institutions must keep systematic records of their operation and activities for both policy planning and management. They are also required to prepare and public their audited annual reports within six months of the end of each financial year. These government institutions are required to make brief quarterly reports to the presidency through their supervising organs, highlighting the development in the past quarter and their expenditure for the net.

To achieve this an analysis and statically information culture must be inculcated within these agencies and parastatals so that normal management habit must be sustained.

Recently, as observed by  (Mr. Omi 1992 1-20), management and control of public fund constitutes the center around which government resources allocation and control of resource in form the funds cannot  be over looked in  government activities. In the context of this project allocation and control of find will be discussed as to related to disbursement of public funds

Allocations of find steps on the fact that the nature government business relates to the provision of understructure facilities of the public. These therefore generate problem that are mostly great complexity.  Profit are most times their target, recognizing that the cast of performance is of significant interest and importance which is primary used as a measure of operational efficiency to which planned programme results are achieve using the available fund

This implies that in the absence of allocation of funds there could be no adoption of any accounting basis such as cash basis, accrual basis, commitment basis and budgetary accounting. It this vein, there would be no accounting of and disbursement of finds and the issue of control will not come up to the surface.

Control of funds in the public sector defined as procedure, which gives the assurance  that financial resource are obtained economic and efficiently used in the accomplishment of desired goals. When   viewed within the control of financial control system, financial control forms parts of planning, budgeting accounting reporting and reviews (Oni 1992). Most decision  for government activities have financial implications which id die to the fact that they directly or indirect result in expenditure either by consumptions or disposals of efforts, all which have bearing on cost.

Revenue, allocation and control of funds are aimed at ensuring that financial decision are co-ordinate in such ways that are mutually insistent bearing in mind the overall objectives of the government

The question then arises, how are these funds allocated to the various units and sub – heads of the local to entire a title bit into the preparation of estimates in the local government  levels (Adeyemo 1982: 54-- - 59)

Budgeting during the presidential system of government by Adepoju 1.0 1981. The estimates are metamorphosed through the following stage v12.

(a)     Department estimate committee

(b)     Treasury department

(c)     Estimate committee.

(d)     State house of assembles.

 

The budget estimate are collected form the different department mental units of the local government and presented to the state house of assemble for approval. When the budget is finally approved the accounts officer through his accounting officer (treasuer) then allocates the funds as approved by the state house of assemble to different units and set tools of control expenditure.

He makes sure that the revenue allocated for each unit is properly accounted for in the  course of  his administration. He also makes sure that cost does not excess the available fund causes of excess expenditure and its control are what we are going to discuss out the course of his research study

 

 

• STATEMENT OF PROBLEM

It can be expressed without mistaking that Nigeria as a country is not running short of plans and prospects which when put into action would give a wonderful setting local government providing viable avenues for rapid  political and economic progress.

The problems of revenue allocation and control of finds in Enugu – south local government can be located in the following factors:-

1. inter – government relations conflicting interest in the system of local government administration poses a major problem where succeeding administration seems to have its own idea of how to make the system of local government work. This has made it difficult for then to build on the gains of their predecessors. Resulting in inconsistency, instability and conflicting demands for political participation and control.


2. Structure organizations Ostensibly the structure of the new local government takes the form the 1976 reform by having a chairman president over the meting unlike the 1985 reform which attempted to create a system of separation of power between legislative council and the executive aims. A good examples of the structural defect of the resent system is the appointment of portfolio councilor for education excluding the local government form the responsibility of administration for primary school. This in the argument of the national economic intelligence of Nigeria NEIC report July 1 1999 headed by mobalaji Akiko E, They said that “it is inherently wrong for the federal government to be responsibility for the running of primary school education which inherences attendant failure to enlist in the involvement to people. This however, in the 2001 budget of the federal republic of Nigeria has been reviewed and have objective of being wholly

and hoping for a better organizational structure.

3. Finance:- Most often the local government depends on the federal government to survive. Apart from the external source, the local government has no other viable source of internal revenue and there is no urge to improve internal source. they also spend heavily on recurrent expenditure to the detriment of capital expenditure, which is meant to provide welfare service tot the people. Other problem includes manager and executive capital, citizen mobilization and participation. These problems amongst other prompted theme the carry out this study with a view to finding ways of studying and solving them.

 

• PURPOSE OF STUDY

Regardless of the calculated stages of funds allocation in to the three tiers of government especially the local government, thee still exist continuously, cases of excess expenditure which are being incurred over the supplement budget of the local civil service which are submitted prior to the preparation of the annual budget for a particular financial year.

The purpose of study is to investigate into the cause of excess expenditure.

 

• OBJECTIVES OF STUDY

The vital objective of  this study is to reckon that:

1. There is appropriate information dissemination with regards to handing over of facts and figures which exists in the local government of Enugu – South between the present chairman and his predecessors.


2. Funds are channeled to most pressing units.


3. There are proper measures of appraisal of finds management in other to dictate various  on time.


4. That both capital on recurrent expenditure are effect the management grass root need of the people residing in the geographical territory of Enugu – South L.G.A


5. There is proper organization structure which enhance separation of power which exists in local government


6. To make recommendations based on the findings.

 

STATEMENT OF RESEARCH QUESTION

          The research set out to find the answer to the following question

1. The necessary document used in recording receipt and disbursement to finds in the local civil service.

2. To find out whether there is proper authorization of vouches and proper supervision on the should prepare and authorized endorse payments on the vouchers


3. how is the authority to incur expenditures treated in the DVEA books?


4. To ascertain the control measure existing in each of the sub – division that is directly involved the funds in the local government.


5. what are the disciplinary procedure /approach taken by the account office to caution vote controllers and department heads for unnecessary expenditure or excess expenditure over and above their approved estimates?


6. How often do the account section and the central pay office meet together to council their accounts in other to ensure consistency and adherence?


7. Finally to find out whether federal allocation has been fast ended enough to accountant local government expenditure.


8. SCOPE OF THE STUDY

This study is intended to cover capital expenditure recurrent expenditure and revenue allocation of departments and units in the local government civil service for the following financial year 2000.

 

• DELIMITATIONS OF THE STUDY

Considering the vast nature of this topic, the research is going touch the allocation and control of funds with special reference to excess expenditure in all public sector but will narrow it down to the local government  and Enugu – South  L.G.A Enugu state.

 

1.8    LIMITATION OF THE STUDY

Some of the constraints, which limited the study include,

1. Limited access to official financial documents on the subject.

2. Limited adequate and relevant literature on the theme the study.


3. Lack of material or report for some yeas due to frequent changes in government and local government edict or reforms.


4. This study is limited to excess expenditure in Enugu – sough.


5. The study will primarily be concerned on the voter controller and the various treatments in the DVEA which are under the control of all heads accounts.

 

1. SIGNIFICATION OF THE STUDY

The outcome of this research study will be beneficial to student who are interested in public financial and public sector, institution, government and  particular the local government for rescheduled of their expenditure control measure and tailored their revenue down to the local need of the people who are yearning form accountability and transparency from the chairman.

It will also help government and its agencies to resolve problem or conflicts arising on allocation of fund and also suggests the best way to administer revenue.

 

1.10  DEFINITION OF TERMS

ALLOCATION:   Amounts approved under recurrent and capital expenditure.

CONTROL:         This is the constitutional provisions riles and regulations guiding expenditure.

ESTIMATE:        Annual recurrent and capital expenditure estimates annual revenue estimate of local government for a particular year.

FUNDS:              Are independent fiscal and account entity with a self balancing set of accounts recording cash and other resource tother will all related liabilities, obligations reserve and equities which are segregated  for the purpose of caring on special activities

 

INTER:

DISCIPLINARY

APPROACH:      special measure taken by government to reward or discipline heads of department

INTER

DISCIPLINARY

COMMITTEE:     specialist staff pf all disciplines (accounting and administration etc) of knowledge working together as a corporate team in an effort to optimize the budget.

DVEAB:               department vote expenditure analysis book.

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

First Bank:
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.

Enter Amount

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.   

MONEY BACK GUARANTEE