PREFACE
This term paper is a dear
exposition of role of accounting in the control of forernment expenduture.
The writer has brought her
considerables research report as a student who has really gone through research
studies by analyszing the role of accounting in the control of government
expendeture. This term paper will enable
accountin student to develop their ability to focus on what is relevant and ways
means and methods of accounting in the control of thermment expenduture which
will improve the auality of accountability in government expenditure.
It is arranged in such a way that one
chapter flows and naturally leads to another. It is arranged in three chapters
the study starts in chapter two analyses of the areas of expenditure, explain
account and analysis of the differences of public expenditure planning and
chapter three summaries of the topics.
Generally, this term paper is ideal
for studies studing accounting academicans will also find this a worth
reference material.
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Accounting
is said to be a language of business.
Accounting is the act of recording, classifying and summarizing;
analyzing, interpreting and reporting financial transaction. Every body in the society works with
accounting concepts and information in their duty activities, whether preparing
a household budget, balancing check book, prepaid income tax return, running an
association or an organization.
Therefore the owners and managements of any firms need accounting
knowledge in order to understand what accounting is al about.
The major
purpose of accounting is to provide financial information or records about an
economic entity. In order to do this
there is need of keeping track of the daily business activities. The methods used by a business to keep
records of its periodic accounting reports comprises the accounting system is
to create a systematic record of the everyday business transaction or activity
in terms of many ways, such as follows;
i.
By writing with pen and pencil
ii.
By printing with mechanical or electronic e.g digital
computer
iii.
By punching roles or making magnetic impressions cards
or tape.
Accounting
information can be created thus;
Recording
Classifying
Summarizing
Accounting
reports are usually rewered by users of accounting information. since the information needs of various users
differ. It follows that the accounting
system of a business eutity must be able to provide various types of accounting
reports. The information in these
reports must be presented in accordance with certain ground rules and
assumption, so that users of the reports will be able to interpret the
information propery.
1.2
STATEMENT OF PROBLEMS
It has been said that accountants plays an
important role in the control of government expenditure and this role they play
have some effect. The problems inudering
accountants from implemented effective control are stated below;
1.
Lack of understanding of the purpose of government
accounting among the society in general and the following specific groups in
particular, the policious, the administrations and a subsantial proportion of
the accounting personnel in government.
2.
Lack of co-ordination between budgetring and
accounting which are complimentary functions, non use of government accounts
for budgeting function by the budget department.
3.
shortage of qualified accounting staff due to lack of
training facilities within and outside government.
4.
difficulty of pusing through proposals of improvement
in financial administration at both national, state and departmental levels.
5.
failure to apply computerization effectively to the
accounting systems.
6.
accounting personnel poses inadequate accounting
education, therefore poor undrstanding of the role of accounting function in
government consequently cannot make desirable impact of the allnoties of his
organization.
1.3
PURPOSE AND OBJECTIVE OF THE STUDY
It is the
aim of the research work to examine and recommend suggested solution where
possible to the following problems.
1.
There is need to educate the society at large on
public accountability. The mass media
and the creasing coned co-operate to formulate a programme for this purpose .
2.
Treasures all over the country should be strengthened
by relocation, internal re-organization and by legislation.
3.
Training programmes for accounting staff to be
expanded and a professional certificate in government accounting introduced.
4.
Teasing should commission a writer or an author or a
study group to write a standand and comprehensive accounting manual for the
treasury.
5.
government should set up tribunal to ensure recovering
of the misappropriated funds and expenditures by some irresponsible public
officers.
6.
government should employ honest workers as staff.
1.4
SIGNIFICANCE OF THE STUDY
In
realization to the major activity of an organization accounting is not a
central financial in the same way as production and marketing are, but it is
nevertheless equally as important as these functions. The donations drawn between ‘line’ and
‘service’ functions (ie production and marketing being line functions and
accounting and distraction service function) services indicate those functions
which are central and fundamental to the society and an organization and those
which may not be. The accounting
function is one of those without which the society or an organization would not
be able to carry on for a long time without crumbling. The society or an organization can be managed
successful if there was no adequate flow of essential operative financial data
within the society. It ability is to
promote efficiency through providing periodic information which improves
decisions and judgment in the control of funds and expenditures.
1.5
SCOPE AND LIMITATIONS
The scope
of the study shall be limited to two specialized areas of accountancy:
Budget
execution and funds control activities are the process by which government
finds are spent, momtored, tracked, managed and regulated.
Budget
execution provides a basis for making funds available to organizations,
establishing evtity policy and procedure for budgetary resources; monitoring,
tracking and reporting on federal funds; and supporting the establishment of
budgetary limitations.
The funds control process record transaction
affecting resources usage. E.g commitments, obligations earned. It also provides appropriate warnings and controls
to ensure that budgetary limitations are not exceeded.
1.6
DEFINITION OF TERMS
ACCOUNTING
This can be summarily
defined as the art of recording, classifying and summarzing in a significant
manner and in terms of money transactions and events which are, in part at
least of a financial character and interpreting the result thereof.
ACCOUNT PERIOD:
This is a period of time
usually one year at the end of which financial statement are prepared.
CERTIFIED PUBLIC ACCOUNTANT (CPA)
This is a professional accountant
who has passed a professional examination obtained practical experience and
satisfied other requirement and is certified the state to practice public
accounting industing the auditing of a financial statement of an organization.
BUDGET
A balance
sheet of estimate revenue and expenditure designed for financing an entity for
a future period.
EXPENDITURE
The use of cash to pay for
an expense for the acquistion of an asset for the repayment of a debt or for
any other business purpose.
REVENUE
This is the increase in
owners equity or capital resulting from earnings.
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