PRUDENT MANAGEMENT OF PUBLIC FUND (A CASE STUDY OF ENUGU STATE MINISTRY OF WORKS, HOUSING AND TRANSPORT)
PRUDENT MANAGEMENT OF PUBLIC FUND
(A CASE STUDY OF ENUGU STATE MINISTRY OF WORKS, HOUSING AND TRANSPORT)
ABSTRACT
This research project was undertaken with a view to examine critically the way public funds are being managed by accounting officers in government and its ministries with particular reference to Enugu State Ministry of Works, Housing and Transport. Public funds are misconceived by some people as belonging to “nobody” and consequently, people entrusted with such funds exercise little or no care in their management resulting to outright deviation from the legal budgetary classification as stated in the constitution.
However, effort has been made in this research to explain those things that aid embezzlement, misappropriation and manipulation of government accounts and money. The contribution of Auditors in ensuring accountability in management of publicly owned funds were discussed. The effects of the solution to unanswered audit reports and queues, which have been a cause for concern in the recent times have also been delved into.
Also, in the research work is constructive explanation of the scope, objectives, basis, concepts and principles of accounting and financial control applicable in the government sector as an aid to solving the problems enumerated above. It is therefore suggested in the study that accounting officers in public sector should get acquainted with the techniques and principle of government accounting for prudent approach to their job.
CHAPTER ONE
1.1 Statement of Problem 3
1.2 Purpose of the Study 4
1.3 Significance of the Study 5
1.4 Statement of Hypothesis 6
1.5 Scope of Study and Limitation of the Study 8
1.6 Definition of Terms 9
CHAPTER TWO
2.0 Review of Related Literature 11
2.1 Meaning of Public Fund 11
2.2 Classification of Public Fund 14
2.3 Sources of Revenue for Enugu State Ministry of Works and Housing and Accounting for Public Fund (Accountability) 16
2.4 Guiding Rules for Government Accounting 23
2.5 Management of Public Funds/Expenditure Control 26
2.6 The Roles of Internal Audit Unit in Management of Public Funds
2.7 The Roles of External Auditors 34
2.8 Areas of Co-operation between Internal and External Auditors in Public Funds Management 37
2.9 Integrity Factory 40
CHAPTER THREE
3.0 Research Design and Methodology 45
3.1 Introduction 45
3.2 Study Area 45
3.3 Sources of Data 45
3.4 Methods of Investigation 46
3.5 Problems and Limitations of the Methodology 48
CHAPTER FOUR
4.0 Presentation and Analysis of Data 50
4.2 Test of Hypothesis 51
CHAPTER FIVE
5.0 Summary of Findings, Conclusion and Recommendations
5.1 Findings 65
5.2 Discussion of Findings 67
5.3 Conclusion 68
5.4 Recommendation 70
Bibliography 72
Appendix 75
CHAPTER ONE
1.0 INTRODUCTION
The management and control of the public fund is the heart of governmental administration! ‘About three decades ago, the scope of financial management was circumscribed to raising of funds. Whenever needed and little significance used to be attached to the financial decision making and solving. The urge to improve and use public funds wisely or maximize wealth in the case of private sector has lit to a shift of emphasis “from raising funds to efficient and effective use of fund”.
Consequently, the roles and responsibilities of financial managers and public officers entrusted with the management of public funds have widened in scope. Not only will the officer make sure that funds are made available in good time and for the right length of time but also he will ensure that such funds so generated are properly and prudently accounted for. In other words, the officers should exercise due care, skill, diligent and prudence in discharging of their duties. This, if done, will promote the purpose of government accounting which is to demonstrate propriety of transactions and their conformity with established rule, norms and restrictions.
It is lack of prudence in management of public funds and outright deviation of government accounting officers from the established rules that have necessitated the check being carried out by both internal and external auditors at intervals. These checks carried out immediately internal and external auditors are called “AUDITING”.
However, Enugu State Ministry of Work and Housing is chosen as the case study because it is one of the biggest expenditure heads of the state government as well as one of the investment priorities of the government. In the light of this, coupled with the incessant non payment of worker salary and poor execution of government contracts, it is necessary for an investigation to be conducted to assess what the ministry is doing with regard to prudent management of funds allocated to it. This is the sole aim of this research project work.
1.1 STATEMENT OF PROBLEM
The rate of involvement of accounting officers in acts ranging from mis-appropriation to embezzlement of public funds has put to question the integrity and reliability of those entrusted with management of public funds. Civil servants who are involved in accounting work or who direct expenditure votes regards government money as “National cake” which belongs to nobody and therefore swindle it carelessly. These fraudulent attitudes of those entrusted with the management of public funds result to several problems in the society today like irregularity in payment of worker’s salary, denial of workers salary, denial of workers legal entitlement, poor execution of government contracts mismanagement of government assets, lack of maintenance of our assess/roads, to mention but a few. The efforts of the Internal Audit Unit established by the constitution of the Federal Republic of Nigeria to deal which prudence management of public funds have not helped matters either. Some of the Auditors reported are lately implemented or out- rightly not implemented at all.
This observation has motivated the researcher to choose this topic as to analyse and assess the probable effects on non-compliance to establish rules by people in control of public funds. Efforts are being made to usher in some appropriate recommendation which the writer deemed necessary to remedy the effect.
1.2 PURPOSE OF THE STUDY
The purpose of this research work is to examine critically the ways public funds are prudently managed by accounting officers in government ministries, particularly in Enugu State Ministry of Works and Housing. Efforts are also made to x-ray the consequences of mismanagement of fund to government and the society in general.
Furthermore, the researcher tries to evaluate both proximate and remote causes of mismanagement of public funds by those entrusted with it. Finally, the writer proposes measures that should be adopted to stem the present mismanagement or misappropriation of funds by some accounting officers especially those controlling expenditure votes in the ministry.
1.3 SIGNIFICANCE OF THE STUDY
The researcher from the numerous topical issues in the economy has carefully selected the topic of this study. The rate at which accounting officers are involved in financial misappropriation has made the job of auditors (internal and external) more challenging.
However, the problem remains that some of the Auditors findings are never implemented. On the other hand, the auditors cannot go scot – free some of them due connive with the accounting officers of government to siphon public funds, after which a camouflagious report will be given to hide the fraud.
No wonder why government had established “tribunal on recovery of public funds and property”. The establishment of the “tribunal” gave rise to recovery of huge amount of money hitherto forgotten due to no implementation of audit report or non compliance of the auditors to the doctrine of skill and diligence in discharging their duties.
The researcher therefore hopes that this study will be relevant to:
More importantly, this study has been a source of inspiration and the writer find it very valuable to her academic advancement. It has exposed her to so may things which ordinary would have escape her notice.
1.4 STATEMENT OF HYPOTHESES
The ministries in Nigeria have been performing below expectation as a result of undue influence and pressure put on government ministries from very high quarter, lack of qualified personnel, inadequate funding and integrity factors on the part of the staff and officials of these ministries.
Deriving from the above statement, which of course forms parts of the hypothesis of this study, the following operational hypothesis are generated.
HO: The concept of prudent management of public funds has been properly applied by Enugu state ministry of works and housing.
HI: The concept of prudent management of public funds has not been properly applied by Enugu state ministry of works and housing.
HO: State government has been adequately implementing auditors findings and recommendation in the prudent management in our ministries.
HI: State government has not been adequately implementing auditors findings and recommendation in the prudent management in our ministries.
HO: The independence given to auditors in the ministry is sufficient for the funds to be prudently managed.
HI: The independence given to auditors in the ministry is not sufficient for the funds to be prudently managed.
1.5 SCOPE OF STUDY AND LIMITATION OF STUDY
For the purpose of this study, the researcher wishes to concentrate on those factors and attributes that is to ensure prudence in management of public fund. However, limitation is made to Enugu state ministry works and housing but where appropriate some generalization can be made in respect of the other ministries.
Also, the researcher while trying to obtain information from respondents encountered draw backs which hindered data collection.
The reluctance of some official to grant audience during the course of this study was a stumbling block in the way of an-in-debt study of the prudence management of public funds”.
The refusal of a key officer to release all information that requires figures, which he considered sensitive, secret and confidential posed a limitation to the scope of this study.
Intermittent strike by state Audit Civil servants during the course of study is another limitation. Death of textbook on public sector accounting is another constraint. More so, the scope of the research work was constrained by lack of finance and time.
1.7 DEFINITION OF TERMS
iii) CROSS – POLLINATED STUDY: A study of top management, middle management and lower management
vii) OFFICER: Any person in the employment of government.
viii) REVENUE SHORT ACCOUNTED: This represents amount dividend collected constituting arrears of revenue.
xii) TRANSCRIPT: Comprehensive records and account of government.
xiii) VOTES: Fund placed at the disposal of a departmental of ministry
xiv) HEADS: Code used to recognize a particular expenditure or revenue within a ministry.
xvi) VEHEMENT: Transfer of savings on one or more subheads to meet excess expenditure on another sub-head in the same vote.
xvii) ACCOUNTING CODE: Manual showing the accounting system operating in the ministry.
Download our android mobile app for more materials
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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
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.
(A CASE STUDY OF ENUGU STATE MINISTRY OF WORKS, HOUSING AND TRANSPORT)
ABSTRACT
This research project was undertaken with a view to examine critically the way public funds are being managed by accounting officers in government and its ministries with particular reference to Enugu State Ministry of Works, Housing and Transport. Public funds are misconceived by some people as belonging to “nobody” and consequently, people entrusted with such funds exercise little or no care in their management resulting to outright deviation from the legal budgetary classification as stated in the constitution.
However, effort has been made in this research to explain those things that aid embezzlement, misappropriation and manipulation of government accounts and money. The contribution of Auditors in ensuring accountability in management of publicly owned funds were discussed. The effects of the solution to unanswered audit reports and queues, which have been a cause for concern in the recent times have also been delved into.
Also, in the research work is constructive explanation of the scope, objectives, basis, concepts and principles of accounting and financial control applicable in the government sector as an aid to solving the problems enumerated above. It is therefore suggested in the study that accounting officers in public sector should get acquainted with the techniques and principle of government accounting for prudent approach to their job.
CHAPTER ONE
- Introduction 1
1.1 Statement of Problem 3
1.2 Purpose of the Study 4
1.3 Significance of the Study 5
1.4 Statement of Hypothesis 6
1.5 Scope of Study and Limitation of the Study 8
1.6 Definition of Terms 9
CHAPTER TWO
2.0 Review of Related Literature 11
2.1 Meaning of Public Fund 11
2.2 Classification of Public Fund 14
2.3 Sources of Revenue for Enugu State Ministry of Works and Housing and Accounting for Public Fund (Accountability) 16
2.4 Guiding Rules for Government Accounting 23
2.5 Management of Public Funds/Expenditure Control 26
2.6 The Roles of Internal Audit Unit in Management of Public Funds
2.7 The Roles of External Auditors 34
2.8 Areas of Co-operation between Internal and External Auditors in Public Funds Management 37
2.9 Integrity Factory 40
CHAPTER THREE
3.0 Research Design and Methodology 45
3.1 Introduction 45
3.2 Study Area 45
3.3 Sources of Data 45
3.4 Methods of Investigation 46
3.5 Problems and Limitations of the Methodology 48
CHAPTER FOUR
4.0 Presentation and Analysis of Data 50
4.2 Test of Hypothesis 51
CHAPTER FIVE
5.0 Summary of Findings, Conclusion and Recommendations
5.1 Findings 65
5.2 Discussion of Findings 67
5.3 Conclusion 68
5.4 Recommendation 70
Bibliography 72
Appendix 75
CHAPTER ONE
1.0 INTRODUCTION
The management and control of the public fund is the heart of governmental administration! ‘About three decades ago, the scope of financial management was circumscribed to raising of funds. Whenever needed and little significance used to be attached to the financial decision making and solving. The urge to improve and use public funds wisely or maximize wealth in the case of private sector has lit to a shift of emphasis “from raising funds to efficient and effective use of fund”.
Consequently, the roles and responsibilities of financial managers and public officers entrusted with the management of public funds have widened in scope. Not only will the officer make sure that funds are made available in good time and for the right length of time but also he will ensure that such funds so generated are properly and prudently accounted for. In other words, the officers should exercise due care, skill, diligent and prudence in discharging of their duties. This, if done, will promote the purpose of government accounting which is to demonstrate propriety of transactions and their conformity with established rule, norms and restrictions.
It is lack of prudence in management of public funds and outright deviation of government accounting officers from the established rules that have necessitated the check being carried out by both internal and external auditors at intervals. These checks carried out immediately internal and external auditors are called “AUDITING”.
However, Enugu State Ministry of Work and Housing is chosen as the case study because it is one of the biggest expenditure heads of the state government as well as one of the investment priorities of the government. In the light of this, coupled with the incessant non payment of worker salary and poor execution of government contracts, it is necessary for an investigation to be conducted to assess what the ministry is doing with regard to prudent management of funds allocated to it. This is the sole aim of this research project work.
1.1 STATEMENT OF PROBLEM
The rate of involvement of accounting officers in acts ranging from mis-appropriation to embezzlement of public funds has put to question the integrity and reliability of those entrusted with management of public funds. Civil servants who are involved in accounting work or who direct expenditure votes regards government money as “National cake” which belongs to nobody and therefore swindle it carelessly. These fraudulent attitudes of those entrusted with the management of public funds result to several problems in the society today like irregularity in payment of worker’s salary, denial of workers salary, denial of workers legal entitlement, poor execution of government contracts mismanagement of government assets, lack of maintenance of our assess/roads, to mention but a few. The efforts of the Internal Audit Unit established by the constitution of the Federal Republic of Nigeria to deal which prudence management of public funds have not helped matters either. Some of the Auditors reported are lately implemented or out- rightly not implemented at all.
This observation has motivated the researcher to choose this topic as to analyse and assess the probable effects on non-compliance to establish rules by people in control of public funds. Efforts are being made to usher in some appropriate recommendation which the writer deemed necessary to remedy the effect.
1.2 PURPOSE OF THE STUDY
The purpose of this research work is to examine critically the ways public funds are prudently managed by accounting officers in government ministries, particularly in Enugu State Ministry of Works and Housing. Efforts are also made to x-ray the consequences of mismanagement of fund to government and the society in general.
Furthermore, the researcher tries to evaluate both proximate and remote causes of mismanagement of public funds by those entrusted with it. Finally, the writer proposes measures that should be adopted to stem the present mismanagement or misappropriation of funds by some accounting officers especially those controlling expenditure votes in the ministry.
1.3 SIGNIFICANCE OF THE STUDY
The researcher from the numerous topical issues in the economy has carefully selected the topic of this study. The rate at which accounting officers are involved in financial misappropriation has made the job of auditors (internal and external) more challenging.
However, the problem remains that some of the Auditors findings are never implemented. On the other hand, the auditors cannot go scot – free some of them due connive with the accounting officers of government to siphon public funds, after which a camouflagious report will be given to hide the fraud.
No wonder why government had established “tribunal on recovery of public funds and property”. The establishment of the “tribunal” gave rise to recovery of huge amount of money hitherto forgotten due to no implementation of audit report or non compliance of the auditors to the doctrine of skill and diligence in discharging their duties.
The researcher therefore hopes that this study will be relevant to:
- The management of Enugu State Ministry of Works and Housing and state in general to modify, restructure and strengthen the machinery. If necessary for achieving greater and effective control over public funds and accountability.
- Future researchers and fellow student on how to achieve greater financial accountability and control over public funds.
- leacher of the subject of government accounting who finds some issues raised in this study worth of discussion with their student.
More importantly, this study has been a source of inspiration and the writer find it very valuable to her academic advancement. It has exposed her to so may things which ordinary would have escape her notice.
1.4 STATEMENT OF HYPOTHESES
The ministries in Nigeria have been performing below expectation as a result of undue influence and pressure put on government ministries from very high quarter, lack of qualified personnel, inadequate funding and integrity factors on the part of the staff and officials of these ministries.
Deriving from the above statement, which of course forms parts of the hypothesis of this study, the following operational hypothesis are generated.
HO: The concept of prudent management of public funds has been properly applied by Enugu state ministry of works and housing.
HI: The concept of prudent management of public funds has not been properly applied by Enugu state ministry of works and housing.
HO: State government has been adequately implementing auditors findings and recommendation in the prudent management in our ministries.
HI: State government has not been adequately implementing auditors findings and recommendation in the prudent management in our ministries.
HO: The independence given to auditors in the ministry is sufficient for the funds to be prudently managed.
HI: The independence given to auditors in the ministry is not sufficient for the funds to be prudently managed.
1.5 SCOPE OF STUDY AND LIMITATION OF STUDY
For the purpose of this study, the researcher wishes to concentrate on those factors and attributes that is to ensure prudence in management of public fund. However, limitation is made to Enugu state ministry works and housing but where appropriate some generalization can be made in respect of the other ministries.
Also, the researcher while trying to obtain information from respondents encountered draw backs which hindered data collection.
The reluctance of some official to grant audience during the course of this study was a stumbling block in the way of an-in-debt study of the prudence management of public funds”.
The refusal of a key officer to release all information that requires figures, which he considered sensitive, secret and confidential posed a limitation to the scope of this study.
Intermittent strike by state Audit Civil servants during the course of study is another limitation. Death of textbook on public sector accounting is another constraint. More so, the scope of the research work was constrained by lack of finance and time.
1.7 DEFINITION OF TERMS
- i) GOVERNMENT: Enugu state government
- ii) HYPOTHESES: Tentative statement made by a researcher, which may or may not be true.
iii) CROSS – POLLINATED STUDY: A study of top management, middle management and lower management
- iv) MISAPPROPRIATION: Use of public money for purpose other than that provided by financial instruction and appropriation laws.
- v) APPROPRIATION LAWS: Financial laws passed in a regular manner by the House of Assembly of state on how to spend the revenue government.
- vi) PUBLIC FUNDS: Includes the revenue of the government any trust or other money held by any officer in his official capacity.
vii) OFFICER: Any person in the employment of government.
viii) REVENUE SHORT ACCOUNTED: This represents amount dividend collected constituting arrears of revenue.
- ix) SELF ACCOUNTING UNIT: This refers to ministries of department that are empowered to maintain all relevant records and books of accounts to records the transactions and events relating to or affecting it.
- x) BELOW-THE LINE: These are non-budgetary accounts that appear in estimates.
- xi) ABOVE-THE-LINE: These are budgetary accounts that do not appear in the estimate.
xii) TRANSCRIPT: Comprehensive records and account of government.
xiii) VOTES: Fund placed at the disposal of a departmental of ministry
xiv) HEADS: Code used to recognize a particular expenditure or revenue within a ministry.
- xv) SUB-HEADS: Code used to recognize a particular sub-division of a head.
xvi) VEHEMENT: Transfer of savings on one or more subheads to meet excess expenditure on another sub-head in the same vote.
xvii) ACCOUNTING CODE: Manual showing the accounting system operating in the ministry.
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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