The study aims to examine the relevance of finance department in the public sector using a case study of Etsako West Local Government Area. It aims to ascertain whether there is a proper authorization of expenditure in the council and to ascertain if a sound system of internal control is being instituted over council expenditure. The data collected was presented using tables and simple percentage and both the primary and secondary sources of data collection method was used in gathering the data. It was discovered that there is no significant relationship between proper authorizations of expenditure and the council. Finally, it was recommended that the local government authority should endeavor to look into its administrative activities regularly and then prosecute any officer(s) found embezzling public funds and also make the head of the account office answerable for any such misappropriation.
TABLE OF CONTENTS
Title Page i
Table of Contents vi
Chapter One: Introduction 1
1.1 Background to the Study 1
1.2 Statement of Problem 2
1.3 Research Questions 4
1.4 Objective of the Study 4
1.5 Statement of Hypotheses 5
1.6 Significance of the Study 6
1.7 Scope of the Study 7
1.8 Limitations of the Study 7
1.9 Definition of Terms 8
Chapter Two: Literature Review 10
2.1 Introduction 10
2.2 Meaning of Public Sector Accounting 14
2.3 Objectives of Public Sector 15
2.4 The Roles of Public Sector finance in Nigerian
Financial Control System 16
2.5 Functions of Etsako West Local Government Area 18
2.6 Controls for the Local Government Operation 22
Chapter Three: Research Methodology 25
3.1 Introduction 25
3.2 Research Design 25
3.3 Description of Population of the Study 26
3.4 Sample Size 26
3.5 Sampling Techniques 27
3.6 Sources of Data Collection 27
3.7 Method of Data Presentation 28
3.8 Method of Data Analysis 28
Chapter Four: Data Presentation, Analysis and
4.1 Introduction 30
4.2 Presentation of Data 30
4.3 Data Analysis 30
4.4 Hypotheses Testing 41
Chapter Five: Summary of Findings, Conclusion and
5.1 Introduction 49
5.2 Summary of Findings 49
5.3 Conclusion 50
5.4 Recommendations 51
Appendix I 56
Appendix II 57
In recent times, there has been rapid increase in public expenditure in some African countries particularly in Nigeria due to the fact that the functions of the various levels of government have equally increased both intensively and extensively the fund being pumped into the sector which calls for adequate expenditure control.
The circumstances surrounding the low rate of development in the public sector could as well be described to lack of proper accountability, composition and incidence public expenditure and finally, the structure of institution which surrounds public sector decision.
One begins to imagine with the high rate of wealth acquisition by politicians in public offices, if stringent control are not being instituted over public funds or the finance managers in the public fund control the finance (Afolabi, 2004).
In the past, several attempts have been made to present proper and acceptable practices on finance budgeted and also to ensure an efficient financial control system in the public sector. All attempts so far have failed and short comings in the operations of establishment in the public sector have regrettably been on the increase. The work of those public officers who are charged with the responsibility of interpreting the laid-down rules and regulations leave much to be desired.
As widely reported in Udodis’ report the poor result in the operation of public sector establishment could be blamed on the interpretation and application of the financial regulation invariably adverse consequences on the availability and efficiency of government services (Ogunle, 2004).
Over the years, it has been observed that every government establishment has its own peculiar problem. The same can be said of Etsako West Local Government Area, Auchi.
Some of these problems could be as a result of the difficulties normally encountered by the finance managers in an attempt to effectively control the expenditure process of the council. Others could be as a result of administrative bottle necks and policies, executive financial misappropriation and the internal control weakness in the council in respect to detection and prevention of fraud.
Some of the major problems that may initiate against the finance managers in an attempt to effectively control council expenditure are: that sources of revenue available to Etsako West Local Government authority most often is not enough for them, poor Administration of Local Government Funds. It is as a result of this that these are still setbacks in the local government as regards to infrastructural development.
This study also seeks answers to the following questions:
In order to address the problem listed, certain objectives that should be achieved by the study are set out below:
The following hypotheses were formulated for this study.
Ho: There is no significant relationship between proper authorizations of expenditure and the council.
Hi: There is a significant relationship between proper authorizations of expenditure and the council.
Ho: There is no significant relationship between a sound system of internal control being instituted and the council expenditure.
Hi: There is a significant relationship between a sound system of internal control being instituted and the council expenditure.
Ho: There is no significant relationship between adequate financial records and the council expenditure.
Hi: There is a significant relationship between adequate financial records and the council expenditure.
Ho: There is no significant relationship between finance managers and their control over the council funds.
Hi: There is a significant relationship between finance managers and their control over the council funds.
This study is expected to be useful in the following ways:
The study centres on the relevance of finance department in the public sector using Etsako West Local Government Area as a case study. The participation is restricted only to the finance department in the public sector.
During the course of this study, many factors which were beyond the researcher’s control and some of these problems are:
1. Dominant: This is the process of having power and influence over others.
2. Council: It is a group of people who are elected to govern an area.
3. Financial: This is connected with money and finance.
4. Finance: The management of large amounts of money especially by governments or large companies. It is also a field that deals with assets and liabilities over time under conditions of certainty and uncertainty.
5. Note Book: This is memorandum account book.
6. Accounting: This is the process of identifying, measuring, communicating economic information to permit judgement and decision.
7. Accounting System: This is an organize set of manual and computerized accounting methods, procedures, and control established to gather, record, classify, analyze, summarize, interpret, and present accurate and timely financial data for management decisions.
8. Public Sector: This is that sector of the economy established and operated by the government and its agencies.
9. Public Sector Accounting: This can defined as the receiving and disbursement of funds to meet the goals/objectives such as health, education, power supply, water, transport, etc.
OTHER SIMILAR PUBLIC ADMINISTRATION PROJECTS AND MATERIALS