CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
Universally,
it is well known fact that the management and control of public fund determine
the success of all governmental activities and it is also at the heart of
government administration hence the need for an acceptable accounting system
that will comprehensively after solution to the accounting problem of the
government and society.
The management and control of public
fund are governed by the finance (control and management) act of 1988. this was
as a result of the constitutional amendment of 1957 which in settee subsection 154A to E into section
154 which deals with the operation of the consolidated revenues fund. The
principles of this act forms the base of finance act which had s slight change
in the 1976 and 1989 constitution. Furthermore government accounting is
regulated by section 129, 148 of the constitution laws enacted by government.
In power, the fiancé (control and management act of 1958 and by decrees and
acts which were promulgated into laws.
The federal ministry of finance
performs the duty of management and control of public fund, which is directly
the peculiar responsibility of the treasury now referred to as the office of
the Accountant General. The treasury functions and duties are streamlined to
asset of guide where expenditure and receipts for the year hence, no receipt or
expenditure are transferred to the next accounting period.
The rules and regulation governing the
accounting practices (management and control public funds) are contained in the
financial regulation treasury accounting manual and treasury circulars
According to this financial regulation
(FR 519) the provision stated that “Before making any payment at sub accounting
office will satisfy immensely so far as he is in a position to do so that
a.
The expenditure has been authorized by warrant and the
voucher correctly classified in accordance with the estimates.
b.
The information furnished on the voucher is correct in
all particulars, the certificates on the voucher signed by the proper officer
c.
All proper deductions from salaries or pension
accounting of contribution repayment of advances or other liabilities have been
duly made.
These basic
functions are services rendered by the treasury.
1.1 STATEMENT OF THE PROBLEM
The
treasury as a custodian of public fund is responsible for providing a retailed
of all public and that federal ministry/Department being part of the treasury
is also vested with same responsibility.
However, the treasury is faced with
number of problems that tend to under the effectiveness of accounting system.
The following problems are therefore
identified with a view to finding this solution so that credible accounting
system will re-sure.
a.
Inadequate staying
b.
Inadequate method of revenue collection and control
c.
Delay in the preparation
of final account monthly
transcript
d.
Delay in the preparation of bank reconciliation
statement
e.
Late remittance cash transfers
Consequently,
this research work is intend to find solution to these problems that militate
against the efficient and effective implementation of accounting systems in the
government treasury.
1.2 OBJECTIVE OF THE STUDY
Reference
to the numerous problems facing the treasury in the quest to have an effective
accounting system in pursuance of nations building this work is aimed at
ascertaining the importance and significance of this government accounting
system an identify causes of this ineffectiveness.
More so, this study is aimed at
analyzing the following
a.
The role and responsibility of the accountant general
office in ensuring this, an effective accounting system and proper
accountability for public funds
b.
The importance of accounting principles on the
government and the public in general with regards to its effectiveness.
c.
The extent of compliance with financial regularities and
treasury circulars on disbursement of fund by persons or authorities entrusted
with such responsibility determining the extent and damage which fraud misappropriation
and embezzlement of such public fund have caused and persisted in the
organization.
d.
Funding solution by not any minimizing but eliminating
such bad practices completely.
e.
The cause of delay or absolute neglect in the
implementation of the accounting principles, rules and regulation.
f.
Investigate to what extent under staying or inexperience
and unskilled stay have contributed to poor output of the treasury.
1.3 SCOPE OF STUDY
This study
covers the responsibilities and duties of federal ministry/department and
implementation of the accounting principles rules and regulation for effective
and efficient performance . the duties includes the compliance to the treasury
requirement, the enforcement of the rules and regulation. In the financial
regulation so as to always produce proper and credible account of public fund.
The importance and effectiveness of this accounting system to the organization
and finally the shortcoming of the accounting system on organization of any.
1.4 LIMITATIONS OF THE STUDY
The
greatest constraint the research has is time factor which made impossible for
the researcher to carry out more study under area or division of the treasury
1.5 DEFINITION OF TERMS
The
following terms used in the study should be taken to mean the following
ACCOUNTING:
Accounting can be defined as the recording and analysis of economic transaction
and monetary terms and forecasting of future activities as part of management
information system this highlighting the use of accounting in planning.
TREASURY: This
is a government office that deals with a country’s public money.
FUND: This also
can be seen as any amount of money set apart for some special purpose.
ORGANIZATION:
Organization is a large organized group of people such as a business company.
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