| Content | Abstract
This study is primarily concerned with finding out the impact of Education Tax Fund (ETF) in tertiary institutions in Nigeria. In the course of this study, three research questions were mapped out to guide the researchers and related works of literature were also reviewed in this study. The research design was descriptive survey method and the population comprised of all the students, lecturers and management of staff of Alvan Ikoku Federal College of Education Owerri, Imo State. The sampling techniques used were simple size of 200 and purposive sampling techniques for lecturers and management staff with a sample size of 10. the data generally were analyzed with simple percentage and the result showed that education Tax Fund has not really impacted much on our Tertiary institutions as they still have a lot of work to do on meeting its statutory obligations, sound internal control system and consideration of students opinion before approving any school project. Based on the findings, the following recommendations were made, that the sharing ratio of fundS by education Tax Fund (ETF) should be according to the number of students admitted per session and the accounts of education Tax Fund (ETF) should be Audited twice a year, independent corrupt practices commission (ICPC) should always investigate corrupt activities in Education Tax Fund (ETF), and Accounts of Stewardship of members of the board of trustees should be presented to the floor of National Assembly once a year. Finally, there should be a penalty for companies that fail to pay the two percent (2%) Education tax. | PUBLIC EXPENDITURE AND THE ROLE OF ACCOUNTING IN THE CONTROL OF IN NIGERIA (A CASE STUDY OF BANK)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This project is on Public expenditure and the role of accounting in the control of in Nigeria (a case study of bank). The role of accounting in enterprises in Nigeria is primary to ensure accurate accountability in these sectors and true and fair financial position of the enterprise. This role is of utmost importance in any organization. An organization can only grow or profit when the resources at its disposal are well managed. The role of accounting seems to be more pronounced 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 into oblivion, if the government had recognized the role of accounting all most of the problems witnessed would not have occurred. No Enterprise can move forward without having a well-organized and functional account department which will provide accurate financial information for the Enterprise and other interest group(s).
Public expenditure is the spending made by the government of a country on the collective needs and wants of her citizenries such as spending on; the provision of infrastructures, pension provision etc. Until the 19th century, Public expenditure was limited as Laissez faire philosophies which believed that money left in private could bring better returns. In the 20th Century John Maynard Keyness argued the role of Public Expenditure in determining levels of income and distribution in the economy. Since then government expenditures has shown an increasing trend. In the 17th and the 18th Century Public Expenditure was considered as wastage of money. Thinkers are of the view that Government should stay with their traditional functions of spending on defense and maintaining law and other.
Public Expenditures are incurred through budget implementation. The macro-economic goals of the state budget are administered in specific and complex systems which were developed in the managerial information unit of the General Accounting department under the name of “Budget Implementation macro system” The role of accounting in the control of public expenditures relates mostly on setting of standards via budgeting and ensuring that the standard set are adhered to. The accounting controls also ensure the actualization of the macro-economic goals which are viz:
- Maintaining the total framework of the planned expenses.
- Adjustment of expenditure rate to the rate of the reception of incomes.
- Regular follow-up of compliance with deficit goals.
- Planning of the financing of the deficit in order to reduce the national debt-product ratio etc.
In Nigeria, public enterprises are engaged in a wide 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 into:
- Public Utilities
- Regulatory of Service body
- Financial Institutions
- Commercial and Industrial Enterprises.
Nigeria being a mixed enterprises. Eze (2013) opined that a firm is classified as private enterprises when it is funded, owned and managed by an individual or group of individuals.
These firms are expected to be registered in the state within which they operate. The activities of the public enterprises have been on the increase in recent times which necessitated the introduction of the accounting to check and monitor the financial activities of these enterprises.
According to Onyekwelu (2010:2) Accounting is defined as the process by which data relating to the economic activities of an organization are measured, recorded and communicated to interested parties for making informed decision. The earliest methods of accounting records were kept in physical quantities. These records came from Eastern early civilization which involved countries around the Mediterranean sea such as Mesopotamia, Egypt, Greece Italy etc. Money was recorded as soon as it was received. Money took the place of barter as a medium of exchange and unit of account. This practice has been closely related to economic development of countries. If the operation of Public enterprise grow in size and complexity, management and other stakeholders will like to be informed on the enterprise’s operation. Accounting is the only means via which such information which are financial in nature can be communicated to the stakeholders.
In summary, the role of accounting in the control of public expenditure deals with the process of setting cost standards and ensuring that the standard set are maintained, However, if the already set standards appear to be in realistic such standard can be reviewed and adjusted for it to be more realistic. Control of public expenditure can be done through adequate budget implementation.
1.2 STATEMENT OF PROBLEM
The amount of public expenditure to be incurred by the government in any fiscal year is contained in the annual budget. It is the goal of government to maintain balanced budget, but many countries especially the developing ones have rather witnessed budget deficit this implies excess of expenditure over revenue. The resources to finance this deficit are always unavailable and most government has failed to acknowledge the need for adequate forecasting and adjustment of forecast to ensure that a balanced budget is attained.
There are increasing cases of financial mismanagement and misappropriation in virtually all public enterprises in Nigeria, this is occasioned by non-existence of proper accounting system that will ensure accountability and transparency in the execution of public expenditures. Furthermore, non-application of standard costing during forecasting by public administrators has made the control of public expenditures a difficult task. Standard costing, which is a good accounting technique for cost forecasting and control has not been adopted by public administrator hence, there are numerous cases or incidents of unfavorable or adverse variance between the budgeted or standard amount of public expenditure and the actual amount of public expenditure. Thus, there is need to evaluate the role of accounting in the control of public expenditure in Nigeria.
1.3 OBJECTIVES OF STUDY
The aim of this research work in general is to vividly evaluate the role of accounting in the control of public expenditures in Nigeria. The specific objectives for this research work are:
- To ascertain whether adequate government budgeting can regulate public expenditures and improve the productivity of public expenditures.
- To ascertain whether an effective and efficient accounting system in public institutions can ensure accountability and transparency in the execution of public expenditures.
- To evaluate the impact of standard costing on the control of public expenditures and also on the productivity of public expenditures when adopted by public institution administrators.
1.4 RESEARCH QUESTIONS
- How can adequate government budgeting regulate public expenditures and improve its productivity?
- How does an effective and efficient accounting system guarantee transparency and accountability in the execution of public expenditures?
- How does the application of standard costing in the administration of public institutions regulate public expenditures and enhance the productivity of such expenditures?
1.5 RESEARCH HYPOTHESES
HYPOTHESIS ONE
H0 - Adequate government budgeting does not regulate public
Expenditures and improve the productivity of public expenditures.
HYPOTHESIS TWO
H0 - Effective and efficient accounting system in public institution
Does not ensure transparency and accountability in the execution of public expenditures.
HYPOTHESIS THREE
H0 - Application of standard costing in the management of public institution will not enhance the regulation of public expenditure and its productivity.
1.6 SIGNIFICANCE OF THE STUDY
This research work which focuses on the impact or role of accounting in the control of public expenditure in Nigeria will be of great importance to federal, state and local governments who are basically responsible for incurring public expenditure.
This is because this research work will awaken their consciousness on the enormous role accounting plays on the control of public expenditures.
This research will also be of great importance to administrators of public institutions who before now may be ignorant of the roles accounting plays in ensuring transparency and accountability in the execution of public expenditures.
Finally, this research will also serve as a stepping stone for students of institution of higher learning who may be researching on similar or topic related to this. It could help precisely on the review of related literature.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
In the course of this research the researcher examined the role of accounting in the control of public expenditure in Nigeria. However, this research covered only the FIST Bank of Nigeria, Enugu branch.
This research work is not free of limiting factors. The researcher was constrained by the following factors:
FINANCE: Previously, research project such as this use to be a joint or group work, but now is embarked upon individually. Thus, the meager fund at the disposal of the researcher constrained her from extending the research to other branches. Some other public (government) establishment in addition to the FIST bank would have been visited by the researcher if not for this constraint.
SCARCITY OF RELATED LITERATURE: Most of the libraries visited lacked journals with articles related to the topic of this study. Even when there is related article, such article will not give detailed analysis of the topic. More so, there is scarcity of already made research on this topic. Although one was gotten in the course of the research for it, but its contents were insufficient for this study. All of these constrained the research from making intense analysis.
STAFF NON COORPERATION: The uncooperative attitude of some of the staff of the FIST bank of Nigeria, Enugu in terms of releasing data constituted a major setback for the researcher. Most of the staff is not willing to let out some of the needed data for this research.
1.8 DEFINITION OF TERMS
PUBLIC EXPENDITURE: Okwo (2011:40) defined it as the spending made by the government of a country on the collective needs and wants of her citizenry. It normally leads to the provision of infrastructures.
ACCOUNTING: Onyekwelu (2010:2) defined it as the process by which data relating to economic activities of an organizational are measured recorded summarized interpreted and communicated to users to enable them make informed decisions.
STANDARD COSTING: Nweze (2014:80) defined it as a system of cost accounting which makes use of predetermined cost relating to each element of cost layout, material and overhead for each line of product manufactured or service supplied.
BUDGETING: Adeniji (2009) defined it as the processes involved in making a budget. That is the act of constructing a budget.
BUDGET: Adeniji(2009:596) defined it as a financial summary of estimated incomes and expenditure of government for a fiscal year.
BUDGET IMPLEMENTATION: The is defined as the execution of budget through either revenue generation or public expenditure.
BUDGETARY CONTROL: This is the methodical control of an organization’s operations through establishment of standards and targets regarding income and expenditure and a continuous monitoring and adjustment of performance against them.
ACCOUNTING CONTROLS: These are measures instilled by a good accounting system to ensure accurate recording of transaction, adherence to rules, safety of assets and accuracy of financial statement.
ACCOUNTING SYSTEM: This is defined as an organized set of manual and computerized accounting methods, procedures and controls established to gather, record, classify, analyze, summarize, internet and present accurate and timely financial data for management decisions.
PUBLIC INSTITUTION: This is defined as an institution or organization owned and majority managed by the government for the interest of the general public.
ADMINISTRATOR: This is an individual who administers affairs, one who directs, manages, executes or dispenses, whether in civil judicial, political or ecclesiastical affairs. He is also known as a manager.
MIXED ECONOMY: This is defined by Udeabah (2004:22) as an economic system in which public and private ownership of means of production exist and in which government participates extensively in the regulation management and supervision of economic activities.
PRODUCTIVITY OF PUBLIC EXPENDITURE: This is defined as the ability of government expenditure to yield the required outcome for which such expenditure was incurred. | Abstract
The role of accounting system in measuring organizational performance of transport company ( A Case study of ABC Transport). This research work is designed to show that the best companions in the management of any transport is a good accounting system with particular emphasis on ABC transport company. It is worthy to say that good accounting system is really maintained in most privately owned companies in Nigeria. Only few among them lack good accounting system. Hence this project strives to show that good accounting system exist in most private companies. This discussion in this project is done in five chapters. | MARKETING OF BANKING SERVICES IN NIGERIA A STUDY OF FIRST BANK PLC
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This project is on Marketing of banking services in Nigeria a study of first bank plc. A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Banks no longer restricted themselves to traditional banking activities, but explored newer avenues to increase business and capture new market. Grönroos., (1990)
- In the 1990s, greater emphasis being placed on technology and innovation.
- New concept like personal banking, retail banking, total branch automation, etc. were introduced
Banks’ activities can be divided into retail banking, dealing directly with individuals and small businesses: business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services to high network individuals and families: and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profit organizations.
Marketing approach in banking sector had taken significance after 1950 in western countries and then after 1980 in Turkey. New banking perceptiveness oriented toward market had influenced banks to create new market. Banks had started to perform marketing and planning techniques in banking in order to be able to offer their new services efficiently. Marketing scope in banking sector should be considered under the service marketing framework, Performed marketing strategy is the case which is determination of the place of financial institutions on customers’ mind. Bank marketing does not only include service selling of the bank but also is the function which gets personality and image for bank on its customers’ mind. On the other hand, financial marketing is the function which relates uncongenitalies, differences and non similar applications between financial institutions and judgement standards of their customers.
The reasons for marketing scope to have importance in banking and for banks to interest in marketing subject can be arranged as:
Change in demographic structure: Differentiation of population in the number and composition affect quality and attribute of customer who benefits from banking services. Intense competition in financial service sector: The competition became intense due to the growing international banking perceptiveness and recently being non limiting for new enterprises in the sector. Increase in liberalization of interest rates has intensified the competition.
Bank’s wish for increasing profit: Banks have to increase their profits to create new markets, to protect and develop their market shares and to survive on the basis of intense competition and demographic chance levels.
1.2 HISTORICAL BACKGROUND OF FIRST BANK NIG. PLC.
First Bank is one of the oldest financial institutions in Nigeria and was the first bank to be established in West Africa. The bank was incorporated as a limited liability company in March 1894 and was listed on The Nigerian Stock Exchange in March 1971. Following the Central Bank of Nigeria’s (“CBN”). induced industry-wide consolidation in 2005, the bank acquired its merchant banking subsidiary. FBN (Merchant Bankers) Limited and MBC International Bank Plc. The bank offers a wide array of financial services to a diverse customer base through its local and offshore offices, including 465 branch offices country wide and 532 ATM’s. In addition to growing organically through new products and branch development, other viable domestic acquisitions are being explored. The intention is to extend the branch network to 600 by the end of 2008.
1.3 STATEMENT OF THE PROBLEM
Primarily, Banks are regarded as only interested in loan and saving and other related transaction but it is quite certain that beyond that, banks do engages themselves in marketing activities. To this effect, the problem of this research work is to know the extents and ways in which the banks carry out their marketing serving such as making use of E-banking, Core - Banking, corporate banking, Mobile banking, Plastic money. NRI banking etc in carrying out their marketing services.
1.4 OBJECTIVES OF THE STUDY
The aim of this research work is to analyze the marketing of banking services and the means in which the services are rendered by the banks. It will go a long way to unveil the new innovative method of marketing services used by banking sector such as E-banking, Core - Banking, corporate banking, Mobile banking. Plastic money. NRI banking etc., it will also investigate into the use of Marketing mix of banking sector in marketing services which involve the analysis of the Banks Products, Price, Pricing, Place, Promotion, Process, Physical evidence. To examine the level of market service delivery in First Bank plc. Owerri in relation to Information Technology (IT) innovations To examine the employees’ perception of the effects of IT innovations on market service delivery in First Bank plc. Owerri
1.5 SIGNIFICANCE OF THE STUDY
This work though will be carried out in reference First Bank PLC, the findings can be significantly applied to the banking industries at large. The essence of investigating into the role of marketing of banking services is to objectively unveil to improvement it has made in the banking industries in regard to the banking services delivery.
1.6 RESEARCH QUESTION
In order to achieve it aims, these project will try to offer answers to the following questions:
- Has the marketing of banking services in the banking industries improved the banking Industries?
- To what extent have the E-banking helped in marketing of banking services
- Is the use of Core - Banking still in existence?
- Is corporate banking necessary in service delivery’?
These and more are the questions this research work has set out to solve.
1.7 RESEARCH HYPOTHESES
For a clearer understanding of the research work and validation of information gotten for the purpose of this research, some hypothetical statement was formulated which will be tested later in chapter four (4). The hypotheses comprise of two: Null hypothesis (H0) and Alternate hypothesis (Hi). the null hypothesis is bound for rejection if the calculated value is greater than the observed value.
Hypothesis I
Ho: The use of New innovative method of marketing services in the marketing of banking has not contributed to the improvement of the services delivery in first bank plc.
Hi: The use of New innovative method of marketing services in the marketing of banking has contributed to the improvement of the services delivery in first bank plc.
Hypothesis II
H0: The application of marketing Mix strategies has not enhanced the quality of service delivery and customer satisfaction in first bank Nigeria plc.
Hi: The application of marketing Mix strategies has enhanced the quality of service delivery and customer satisfaction in first bank Nigeria plc.
1.8 SCOPE OF THE STUDY
This study concentrated on First Bank PLC and it does not in totality analyzed the functionality of the bank but limits it self on the marketing of banking services. This study therefore examines the role the marketing of banking services ,a enhancing the marketing of banking services. Considering these factor the data and response to the questionnaire were limited to staff and customers of First Bank PLC Owerri.
1.9 DEFINITION OF TERMS MARKETING
According to the Oxford Advanced Learner’s dictionary, marketing is the activity of presenting, advertising and selling an organizational products or services in the best possible way.
BANKING SERVICES: Banking services can be seen as those business transactions and services the banks carries out among them and their customers to generate income for the banks and to serve the bank’s need.
E-BANKING: The remote deliver of new and traditional banking products and services through electronic delivery channels. (FFIECJ).
E-banking is an abbreviation for electronic banking. E-banking allows you to conduct bank transactions online, instead of finding a bank and interacting with a teller. Most U.S. banks offer E-banking, though the extent of the services may vary. For instance, some banks may offer unlimited bill pay options while others restrict online activity.
CORE BANKING: Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the corporate banking division of the institution. Core banking basically is depositing and lending of money.
COOPERATE AND INVESTMENT BANKING: Corporate & Investment banking is a term used to describe a range of banking and investment products and services delivered to corporate clients, financial institutions, governments, agencies and, in some cases, to wealthy or ‘high-net-worth’ individuals and families,
MOBILE BANKING: Mobile banking (also known as M-Banking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone or Personal Digital Assistant (PDA).
PLASTIC MONEY: Generic term for all types of bank cards, credit cards, debit cards, smart cards, etc. | Assessment of Factors Responsible for Budget Failure in Nigeria
CHARPTER ONE
1.1 Introduction
This research is on Assessment of Factors Responsible for Budget Failure in Nigeria. In any modern state, for a meaningful national economic management and development, public budget is an important instrument. The state’s desire to be democratized, and having adequate civil society participation, prompt response to development and desire to eradicate or reduce poverty level in the country has altogether caused the focus on budget to assume a greater importance. The budget is the principal instrument of fiscal policy. Budget policy exercise control over size and relationship of government receipts (revenue) and expenditure (Edame, 2010). In Nigeria, return to civil rule has given budget its proper status, because the due process of articulating it is guided jealously by the legislature. During military rule budget is only prepared and read to the nation. But under civilian rule budgeting involved wider consultation because of its importance towards nation building and developmental issues.
The annual budget is a document which contains the entire programmes of the government in a given fiscal year. It shows the expectations and intentions of the government in a particular fiscal year. Most importantly, it contains the expected revenue and expenditure of government within a given financial year. Olomola (2009), observed that the role of budget in an economy cannot be overemphasized. A budget is an important economic instrument of national resource mobilization, allocation and economic management. It is an important economic instrument for facilitating and realizing the vision of government in a given fiscal year. A budget has to be well- designed, effectively and efficiently implemented, adequately monitored and its performance well evaluated.
1.2 Statement of the Problem
Development in the public sector is attributed to the fiscal and monetary actions of the government. These actions propel the need for effective allocation of resources, social cohesion and fairness dealing with structural development at all unit of the society. But the Nigerian economy is faced with series of imbalances in their implementation of budget and economic policies, despite the availability of the various source of fund to the government. Several budgets have been designed with the sole purpose of economic planning and social development, but have not led to higher level of better service delivery, more accomplishment, more improvement or more resolution of public problems because there are so many variables such as resource leakage, poor management and contractors characteristics that militate against its success. This paper is designed to assess the causes of budget failure with the view to proffer policy recommendations on how to eliminate it.
1.3 Objectives of the Study
The objective of this study is to assess the causes of budget failure in Nigeria. Specifically, the study seeks to:
- determine the budgetary role in the economic planning of Nigeria;
- examine the effectiveness of budgeting in social development of the Nation.
The study tests the following hypotheses
Hypothesis I
Ho: There is no significant relationship between budgeting and economic planning in Nigeria.
Hypothesis II
HO: There is no significant relationship between budgeting and social development in Nigeria.
1.4 Conceptual Issues
Ikelegbe (1996:164) define budget as a statement of purpose, anticipated revenue work proposed to be performed and money allocated to achieve work proposed. The public budget is a financial plan, a programme of action, a management planning and control technique, an evaluation technique and a performance improvement tool. Budget as a plan could be used for economic planning in specifying revenue and expenditure outlines, and as a programme it could be used to execute the social policies as what is to be done or achieved. Budget is the main instrument by which the state manages the economy to ensure growth and stability in the social circle. The fiscal and economic policies in the budget help to stimulate and direct economic growth and stability; it is the instrument by which government affects public welfare.
According to Uchendu (1998) budgets are economic tools deliberately designed through political process to aid in the allocation of available resources among competing demands. He further added that “a public budget is an economic tool deliberately fashioned through the political process to assist in the management of public sector”.
But Tosin, (2003:108) viewed budget as a financial and/or qualitative statement prepared and approved prior to a defined period of time of the policy to be achieved during that period for the purpose of attaining a given objective. According to Bello (2005:88), a budget is a plan of financial operation embodying an estimate in proposed revenue and expenditure as well as the proposed means of financing them for a given period usually a year. He explained further that budget can also be seen as an instrument of economic planning and implementation of social policy, which is to ensure that policies are translated into concrete and feasible objectives. Budget allows the government to decide about each individual revenue and expenditure throughout that period of the plan.
Edame, (2010) on the other hand; sees “Economic planning as a deliberate governmental attempt to coordinate economic decision making over the long run and to influence, direct and in some cases even control the level and growth of a nation’s principal economic variables (income, consumption, employment, investment, saving, exports, imports etc.) to achieve a predetermined set of development objectives. The budget then becomes a link between financial resources and human needs or behavior. It becomes a means of meeting the people’s needs, that is, policy objectives and political development. | PUBLIC EXPENDITURE CONTROL IN NIGERIA ACCOUNTING (A CASE STUDY OFACCESS BANK OF NIGERIA)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This research is on Public expenditure control in Nigeria accounting (a case study of access bank of Nigeria). Public expenditure is the spending made by the government of a country on the collective needs and wants of her citizenries such as spending on; the provision of infrastructures, pension provision etc. Until the 19th century, Public expenditure was limited as Laissez faire philosophies which believed that money left in private could bring better returns. In the 20th Century John Maynard Keyness argued the role of Public Expenditure in determining levels of income and distribution in the economy. Since then government expenditures has shown an increasing trend. In the 17th and the 18th Century Public Expenditure was considered as wastage of money. Thinkers are of the view that Government should stay with their traditional functions of spending on defense and maintaining law and other.
Public Expenditures are incurred through budget implementation. The macro-economic goals of the state budget are administered in specific and complex systems which were developed in the managerial information unit of the General Accounting department under the name of “Budget Implementation macro system” The role of accounting in the control of public expenditures relates mostly on setting of standards via budgeting and ensuring that the standard set are adhered to. The accounting controls also ensure the actualization of the macro-economic goals which are viz:
- Maintaining the total framework of the planned expenses.
- Adjustment of expenditure rate to the rate of the reception of incomes.
- Regular follow-up of compliance with deficit goals.
- Planning of the financing of the deficit in order to reduce the national debt-product ratio etc.
In Nigeria, public enterprises are engaged in a wide 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 into:
- Public Utilities
- Regulatory of Service body
- Financial Institutions
- Commercial and Industrial Enterprises.
Nigeria being a mixed enterprises. Eze (2013) opined that a firm is classified as private enterprises when it is funded, owned and managed by an individual or group of individuals.
These firms are expected to be registered in the state within which they operate. The activities of the public enterprises have been on the increase in recent times which necessitated the introduction of the accounting to check and monitor the financial activities of these enterprises.
According to Onyekwelu (2010:2) Accounting is defined as the process by which data relating to the economic activities of an organization are measured, recorded and communicated to interested parties for making informed decision. The earliest methods of accounting records were kept in physical quantities. These records came from Eastern early civilization which involved countries around the Mediterranean sea such as Mesopotamia, Egypt, Greece Italy etc. Money was recorded as soon as it was received. Money took the place of barter as a medium of exchange and unit of account. This practice has been closely related to economic development of countries. If the operation of Public enterprise grow in size and complexity, management and other stakeholders will like to be informed on the enterprise’s operation. Accounting is the only means via which such information which are financial in nature can be communicated to the stakeholders.
The role of accounting in enterprises in Nigeria is primary to ensure accurate accountability in these sectors and true and fair financial position of the enterprise. This role is of utmost importance in any organization. An organization can only grow or profit when the resources at its disposal are well managed. The role of accounting seems to be more pronounced 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 into oblivion, if the government had recognized the role of accounting all most of the problems witnessed would not have occurred. No Enterprise can move forward without having a well-organized and functional account department which will provide accurate financial information for the Enterprise and other interest group(s).
In summary, the role of accounting in the control of public expenditure deals with the process of setting cost standards and ensuring that the standard set are maintained, However, if the already set standards appear to be in realistic such standard can be reviewed and adjusted for it to be more realistic. Control of public expenditure can be done through adequate budget implementation.
1.2 STATEMENT OF PROBLEM
The amount of public expenditure to be incurred by the government in any fiscal year is contained in the annual budget. It is the goal of government to maintain balanced budget, but many countries especially the developing ones have rather witnessed budget deficit this implies excess of expenditure over revenue. The resources to finance this deficit are always unavailable and most government has failed to acknowledge the need for adequate forecasting and adjustment of forecast to ensure that a balanced budget is attained.
There are increasing cases of financial mismanagement and misappropriation in virtually all public enterprises in Nigeria, this is occasioned by non-existence of proper accounting system that will ensure accountability and transparency in the execution of public expenditures. Furthermore, non-application of standard costing during forecasting by public administrators has made the control of public expenditures a difficult task. Standard costing, which is a good accounting technique for cost forecasting and control has not been adopted by public administrator hence, there are numerous cases or incidents of unfavorable or adverse variance between the budgeted or standard amount of public expenditure and the actual amount of public expenditure. Thus, there is need to evaluate the role of accounting in the control of public expenditure in Nigeria.
1.3 OBJECTIVES OF STUDY
The aim of this research work in general is to vividly evaluate the role of accounting in the control of public expenditures in Nigeria. The specific objectives for this research work are:
- To ascertain whether adequate government budgeting can regulate public expenditures and improve the productivity of public expenditures.
- To ascertain whether an effective and efficient accounting system in public institutions can ensure accountability and transparency in the execution of public expenditures.
- To evaluate the impact of standard costing on the control of public expenditures and also on the productivity of public expenditures when adopted by public institution administrators.
1.4 RESEARCH QUESTIONS
- How can adequate government budgeting regulate public expenditures and improve its productivity?
- How does an effective and efficient accounting system guarantee transparency and accountability in the execution of public expenditures?
- How does the application of standard costing in the administration of public institutions regulate public expenditures and enhance the productivity of such expenditures?
1.4 RESEARCH HYPOTHESES
HYPOTHESIS ONE
H0 - Adequate government budgeting does not regulate public
Expenditures and improve the productivity of public expenditures.
HYPOTHESIS TWO
H0 - Effective and efficient accounting system in public institution
Does not ensure transparency and accountability in the execution of public expenditures.
HYPOTHESIS THREE
H0 - Application of standard costing in the management of public
institution will not enhance the regulation of public expenditure and its productivity.
1.5 SIGNIFICANCE OF THE STUDY
This research work which focuses on the impact or role of accounting in the control of public expenditure in Nigeria will be of great importance to federal, state and local governments who are basically responsible for incurring public expenditure.
This is because this research work will awaken their consciousness on the enormous role accounting plays on the control of public expenditures.
This research will also be of great importance to administrators of public institutions who before now may be ignorant of the roles accounting plays in ensuring transparency and accountability in the execution of public expenditures.
Finally, this research will also serve as a stepping stone for students of institution of higher learning who may be researching on similar or topic related to this. It could help precisely on the review of related literature.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
In the course of this research the researcher examined the role of accounting in the control of public expenditure in Nigeria. However, this research covered only the Access Bank of Nigeria, Enugu branch.
This research work is not free of limiting factors. The researcher was constrained by the following factors:
FINANCE: Previously, research project such as this use to be a joint or group work, but now is embarked upon individually. Thus, the meager fund at the disposal of the researcher constrained her from extending the research to other branches. Some other public (government) establishment in addition to the Access bank would have been visited by the researcher if not for this constraint.
SCARCITY OF RELATED LITERATURE: Most of the libraries visited lacked journals with articles related to the topic of this study. Even when there is related article, such article will not give detailed analysis of the topic. More so, there is scarcity of already made research on this topic. Although one was gotten in the course of the research for it, but its contents were insufficient for this study. All of these constrained the research from making intense analysis.
STAFF NON COORPERATION: The uncooperative attitude of some of the staff of the Access bank of Nigeria, Enugu in terms of releasing data constituted a major setback for the researcher. Most of the staff is not willing to let out some of the needed data for this research.
1.7 DEFINITION OF TERMS
PUBLIC EXPENDITURE: Okwo (2011:40) defined it as the spending made by the government of a country on the collective needs and wants of her citizenry. It normally leads to the provision of infrastructures.
ACCOUNTING: Onyekwelu (2010:2) defined it as the process by which data relating to economic activities of an organizational are measured recorded summarized interpreted and communicated to users to enable them make informed decisions.
STANDARD COSTING: Nweze (2014:80) defined it as a system of cost accounting which makes use of predetermined cost relating to each element of cost layout, material and overhead for each line of product manufactured or service supplied.
BUDGETING: Adeniji (2009) defined it as the processes involved in making a budget. That is the act of constructing a budget.
BUDGET: Adeniji(2009:596) defined it as a financial summary of estimated incomes and expenditure of government for a fiscal year.
BUDGET IMPLEMENTATION: The is defined as the execution of budget through either revenue generation or public expenditure.
BUDGETARY CONTROL: This is the methodical control of an organization’s operations through establishment of standards and targets regarding income and expenditure and a continuous monitoring and adjustment of performance against them.
ACCOUNTING CONTROLS: These are measures instilled by a good accounting system to ensure accurate recording of transaction, adherence to rules, safety of assets and accuracy of financial statement.
ACCOUNTING SYSTEM: This is defined as an organized set of manual and computerized accounting methods, procedures and controls established to gather, record, classify, analyze, summarize, internet and present accurate and timely financial data for management decisions.
PUBLIC INSTITUTION: This is defined as an institution or organization owned and majority managed by the government for the interest of the general public.
ADMINISTRATOR: This is an individual who administers affairs, one who directs, manages, executes or dispenses, whether in civil judicial, political or ecclesiastical affairs. He is also known as a manager.
MIXED ECONOMY: This is defined by Udeabah (2004:22) as an economic system in which public and private ownership of means of production exist and in which government participates extensively in the regulation management and supervision of economic activities.
PRODUCTIVITY OF PUBLIC EXPENDITURE: This is defined as the ability of government expenditure to yield the required outcome for which such expenditure was incurred. |
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