THE ROLE OF ACCOUNTING IN THE CONTROL OF PUBLIC EXPENDITURES IN NIGERIA
Price: 2000 Naira
This research examines the role of accounting in the control of public expenditures in Nigeria, a case study of control bank of Nigeria, Enugu State. The researcher adopted descriptive survey design. The population of the study is the combination of internal audit department staff and accounting department staff making it a total of 41. The research used both primary and secondary source of data. In view of this, three research questions were formulated to generate expected answers. Literal works were reviewed for proper understanding and guidance. Questionnaires, personal interview and observation were used for collect of primary data. Secondary source of data were collect from text books, periodical, articles and journals. Tables and simple percentage were used for data analysis, hypothesis were tested using chi-square statistics. Based on the findings, the researcher found out that few of the staff were not following due accounting principles thereby causing inadequate and improper pursuit of the accounting records Omission of certain book-keeping records, improper audit. The staff and management of central bank of Nigeria has now adopted accounting standard, and the balance of power on NASC, financial analyst government agencies and others. Finally the researcher proffered among other use of accounting principle and standard in the company.
1.1 BACKGROUND OF THE STUDY
In most developing countries including Nigerian government participation in economic activity is usually significant. One of the ways through which government has intervened in Nigerian economy is through the establishment of public enterprises and statutory bodies operating service of an economic or social character on behalf of the government.
Since the colonial era, especially after independence 1960, Nigerian public enterprises have witnessed a steady growth unit recently. Its Olisa (1988-133) pet it. Beginning as a trickle in the period between this era of the second world war and Nigeria risen to flood level since independence the establishment of public enterprise in Nigeria are many add to available rational capital for the support of development and welfare programme, making to be controlled by a few individual, it possible for important profitable enterprise to be controlled by a few individual or group organization certain critical activities national survival and economic stability and providing employment opportunities (Ademolukun 1983). However, after a long period of growing starts intervention in the Nigeria economy through public enterprises, the 1980’s onwards had witnessed a reversed which has sometimes been dramatic in public opinion therefore public policy.
This has been brought by the persistent losses which state enterprises that trivet been running over fears. Consequently, there has been a willingness to look at alternative policy strategies for the achievement of economic development. At the forefront of these strategies is the minimization privatization of public enterprises.
In Nigeria, public enterprises are engaged in a while spectrum of economic activities including agriculture, mining, construction, manufacturing, commerce and services. The classification of public enterprises in Nigeria has been made according to varieties of criteria by different authorities. The public service review commission (1975:101) classified public sector int.
Regulatory of service body
Commercial and industrial enterprises
Being a mixed economy, individuals also own and operate private enterprises. A firm classified as private enterprises when it is founded and managed by an individual and or a group of individual. These firms
are expected to be registered in the local government within which they operate.
The rational for the establishment of private enterprises are numerous just like establishment of public enterprises. They include amongst others; provision of employment opportunities generating income for the owner of the enterprises government interest in profit growth of the enterprises which performance of the public sector through competition. Moreover, the general public is concerned with contribution which makes towards social enlistment which is exhibit to the environment in which the business is loaded and its willingness to contribute to the development of the environment.
The activities of the public enterprises have been on the increase in recent times which necessitated the introduction of the accounting practice to check and monitor the financial activities of these enterprises. In this book, titled principles of accounting, by Bimage (1985) Accounting is defined as a process by which data relating to the economic activities of an organization are measured recorded and communicated to interested parties for analysis and interpretation. The earliest methods of accounting records were kept in physical quantities. These records came from the Eastern (early) civilization
which involved in the countries around the Mediterranean Sea such as Mesopotamia, Egypt, Crete, Italy etc. Money was recorded as soon as money took the place of barter as a medium of exchange and unit of accounting practice has been closely related to the economic development of the country. If the business organizations grows in size and complexity management and outsiders groups which include owners of the firm (stock holder) creditor, government, employer and the general public.
The differentiation necessitated the need to have accounting department in the enterprises to give accurate financial of the management and to satisfy the outside demands or the general public who are already interest on whether the enterprises in growing or not. The role of accounting in public enterprises in Nigeria is primarily to ensure accurate accountability in these sectors and present the time and fair financial position of the enterprises. The role is of utmost importance in any organization. An organization can only grow or profit when the resources can only be well managed if accounting department of the organization give accurate financial information to know how much the enterprises having. It only when this is done that the firm allocate its resources and knows what is to be done. The role of accounting seems to be more pounced in the public enterprises. In
recent times, there are cases of mis appropriation of funds in the public enterprises and improper accountability. These factors have led to a lot of public enterprises go into Obiwon, if the government has reorganization the role of accounting, all these feeble should not have risen. No enterprises can more forward without having a well organized financial department to give accurate financial, information about the firm. This is because if improper accounting records are not minimized or where possible eradicated these is bound to be cases of public enterprises failure. Consequently, staff of such enterprises will force out of their job. This will result to economic and social activities in the society.
1.2 STATEMENT OF PROBLEM
Obviously, every privates and public entries in Nigeria has their accounting department and there are increase cases of financial mismanagement in virtually all the public and private organization in Nigeria. The problem of this study lies on how the manages of these enterprises are able to recognizes the role of accounting in their enterprises so that these cases of improper accountability will be minimized or if possible its total eradication in our society.
1.3 PURPOSE OF STUDY
This study aims at investigating the role of accounting in the control of public enterprises in Nigeria. The purpose of this study include among others:
1. To determine the extent to which accounting records has controlled the effect of expenditures in public enterprises.
2. To find out factor that affects the accounting department preventing them from carryout their function as expected.
3. To determine government policies which promote accountability in public enterprises in Nigeria.
1.4 SIGNIFICANCE OF THE STUDY
In this study, the researchers have set out to examine the role of accounting in the public sector in this country. Nigeria with the aid of highlighting the inherent problem encountered in the account department of most organizations. It is expected that this work will be of interest to the owners of business enterprises, the government, students and the general public.
To shareholders, owners of enterprise, interested persons and the government, this study is expected to en kindle their interest the more and they will take note of various recommendations mentioned here and help steer the management team towards forming a study organizations to present an accurate financial information of their firm.
This study will also help to serve as literature to individual or corporate bodies into want to carry on further research on the role of accounting in the public sector in Nigeria.
1.5 RESEARCH QUESTIONS
1. What extent does accounting records has control in affecting the expenditure of public enterprise?
2. What are the factors that affect accounting department of most organization which makes them not to function effectively as expected?
3. What are these governments polices which promote accountability in Nigeria public enterprises?
1.6 RESEARCH HYPOTHESES
This research hypothesis is to know the findings or result of this research;
1. H0 – Good accounting records budgeting has no control effect on expenditure of public enterprises.
H1- Good accounting records budgeting has control effect on expenditure of public enterprises.
2. H0- Corruption do not affects the quality of service rendered by accountants in public enterprises.
H1- Corruption affects the quality of service rendered by accountants in public enterprises.
3. H0- Government accounting policies do not aid in promoting accountability in Nigeria public Enterprise
H1- Government accounting policies aid in promoting accountability in Nigeria Public Enterprises.
1.6 SCOPE AND LIMITATION OF THE STUDY
Scope of the study shows extent of coverage done in the study. The research topic suggests a study on the role of accounting in the public enterprises in Nigeria. The focus of the study is on Central Bank of Nigeria (CBN) Enugu State. I take this to be a fair representative of Nigerian Public Enterprise that is either avoidable or hard to come by.
There are factors as constraints that normally follow this research work, some of them are;
1. TIME: This which was a major problem was adequately not managed by the researcher. There is not enough time for the research to get the project time, get it approved and within a short time we will be talking about our exams assignment and quiz.
2. LACK OF MATERALS: The un co-operative of most people working in the library other offices where the research needed to get materials posed great problem to the research. Some of the staff do not feel safe
letting have access to some materials while other will change you more than double the cost of Photostat before one can get what he wants.
3. FINANCE: Before now our project use to be a joint project of a group of four-ten people but now it has to be on individual student. So finance hinder the projects in one way or the other. Esther by transportation to where to get the materials or where to obtain the necessary information.
1.8 DEFINITION OF TERMS
MANAGEMENT: Its function, it is centered on the running and controlling of the organization, the way the directors perform their function to attain a successful operation.
ACCOUNTING: In this context, an accountants records, classify and summaries all public expenditure in the Central Bank of Nigeria in a significant manner and in terms of monetary events and transaction which are in part at least financial character and to interpreter the result thereof.
FINANCIAL STATEMENT: An accountant makes an accounting report issued by a business to describe its financial affairs and results of the operations.
Ademolekun K.O. (1983), The Nigeria financial system, London: Macmillian Publisher.
Image E.U.(1985), Principals of Accounting, Enugu: Fourth Dimension Publisher.
Olisa, E.C. (1988), Public Enterprises and Privatization in Nigeria, Nigeria: Longman publisher.
Ostisumi K.O.(1984), Financial Management in Nigeria Public sector, London: Pitman Publisher.
Osumbor, O.A.(1991), An overview of Private Enterprises in Nigeria, Business time.
Willy N.Ugwuyi, (1997), The Nigeria Financial System (A systematic approach).
Get Complete Material