Project Topic:

PROBLEM AND PROSPECT OF FINANCIAL CONTROL TOOL

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 63 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   972 people found this useful

Project Department:

BANKING FINANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Financial control as the name implies means the proper management and control of financial aspects, the efficiency effective and management of finance of the organisation. The finance control and management law 1968 is designed for control and management for the public financial and matters connected there with and it stipulates under section 33 that the accountant general shall under to the auditor general accounts showing the financial position of the state at the end of every financial year and these include:

(a) Statement showing the sums estimated to be received as revenue into the consolidated revenue fund and sums actually so received in the period of account.

(b) Statement of assets and liabilities.

(c) A statement showing the sums estimated to be issued out of the consolidated revenue fund and the sums actually so issued in the period of accounts.

So in every organisation or public sector, there is the need for financial control.

Therefore, owerri North ministry of finance should not be an exception. Every staff of the ministry is involved to some extent in controlling of financial as well answerable to their conduct.

Almost all the workers in the civil services especially those involved in government financial operation and well acquainted with and an updated knowledge of the principles of financial controls.Financial control is linked with financial planning. This is not withstanding control parameter are outcomes of financial planning decisions.

However, systematic planning in itself requires a degree of control in terms of its process and procedures. In most cases, government constitutes largest single business entity and in many places, the core of the economy.

Its pattern of expenditure or manner of resources allocation determines the extent to which accountability for economy, efficiency and effectiveness can be achieved.

1.2 HISTORICAL BACKGROUND OF THE CASE STUDY

Owerri North is a caLol Government Area of Imo State, Nigeria. Its headquarters are in the town of Orie Uratta. It has an area of 198 km² and a population of 175,395 at the 2006 census. The postal code of the area is 460 Owerri North is a Local Government Area of Imo State, Nigeria. Its headquarters are in the town of Orie Uratta. It has an area of 198 square km and a population of 175,395 at the 2006 census. The postal code of the area is 460.

Owerri North is semi-urban government area. It encircles Owerri Municipal like a peninsular. Six major roads that lead out of the municipal cuts across Owerri North Communities. In the North, Orlu road leads to Amakaohia and Akwakuma communities. In the East, Okigwe road leads to Orji Community. In the West, MCC road off Wetheral to Obibi Uratta and Ihitaoha communities. In the South, Mbaise road leads to Egbu and Emekuku communities, while Aba road leads to Nazi, Agbala and Ulakwo communities.

Natural and Agricultural Resources

– Palm Products/Palm Oil, Nuts – Maize – Cassava – Crude Oil

Businesses and Investments

– Palm Oil Null – Food Processing – Fruit Processing – Refinery – Feed Null – See more at: http://www.imostate.gov.ng/imo-government/imo-local-governments.php?idx=owerri_north_lga_imo_state#sthash.kmhfJCVj.dpuf

1.2    STATEMENT OF THE PROBLEM

There is a general notion that government finance is fraught with numerous problems ranging from frivolous expenditure, lack of fraught to embezzlement and mismanagement of public funds. This situation calls for adequate financial control measure.

Some of the identified problems and prospect of financial control   in the public sector organization in owerri North includes:

1.   Lack of effective internal control and audit system.

2.   Indifference to revenue generation.

3.   Failure to conform to financial instructions and regulations.

4.   Late auditing of ministerial accounts

5.   Late finalization and publication of account and poor keeping of internal accounting records.

6.   Personal problems involving lack of knowledge and expertise among government accountants occupying higher levels of responsibility

7.   Excess authorization of expenditure.

1.3    OBJECTIVES OF THE STUDY

The main objectives of this research work include the following:

1.   To know the extent of financial control and prospect of financial control in public sector in owerri North.

2.   To highlight the need for financial control and public sector organization.

3.   To ascertain the prospects and problems occurred in the system.

4.   To review what financial control and public sector problem and prospect.

1.4    SIGNIFICANCE OF THE STUDY

We gain nothing in saying that owerri North as an organized public sector has enormous need for a sound and good accounting system. To say the least, government occupies a pivotal position on any economy. Award that the pattern of expenditure determines the extent to which allocation can be made to a ministry, it is therefore of practical importance that an effective control system and machinery for accountability are installed. There is also the need for every public sector organization to establish and maintain an effective accounting information system, which could be timely, reliable and compatible with decision making and management control.

The accounting information system should be understandable and disclose government financial condition as well as results of its operations. The question now and: is there a system of financial control in owerri North Local Government Imo State Ministry of finance? If no; why? Yes the effective is the financial control system already in operation. What is the possibility of putting one in place?

1.5    LIMITATION OF THE STUDY

The scope of study is limited to the Owerri North Imo state ministry of finance. The study will look into problem and prospect of financial control and public sector organization and final ways of achieving it where none exists. The word will attempt to evaluate the effectiveness and efficiency of the internal control system on the ministry with reference to the Imo State financial instruction volume 1. The investigation will highlight the impact of the state audit department and public accounts counted on the process.

CHAPTER TWO

REVIEW OF RELATED LITERATURE

A review of the nature of the problem and prospect of financial control in public sector organization , it adopts is a representation of what obtains in the public sector organization in Owerri North. The ministry is in charge of the finances of the local government, that is the revenues and expenditures of the Owerri North local government area in Imo State. The ministry collects from the state account un behalf of the local government, the state statutory allocation which is disbursed by the state ministry of finance on monthly basis. In conjunction with other ministered and non-ministerial departments, the ministry collects fees and taxes, stamp duties and other miscellaneous revenues.

Through deliberate economic policies, the ministry mobilized savings and domestic capital supervises and overseas the activities of parastatals of the government whose function include mobilization and revenue generation in order to enhance economic and social activities in the state. Such institution include Development Finance and Investment Company Limited (DPIC), Finance Broken Limited, etc.

The ministry is in-charge of all government investment and the revenues occurring there from. On expenditure, the ministry controls government expenditure through supplementary estimates, budgetary allocation and financial instructions to determine the mode, pattern and volume of expenditure.

The ministry also discharge the public debt obligations of the state.

The ministry collects analysis and data concerning the natural, human and financial resources of the state. It co-ordinates inter-ministerial, inter-state economic matters and those between the state and the federal government.

2.1    WHAT FINANCIAL CONTROL AND PUBLIC SECTOR IS ALL ABOUT

Financial control is the process, which assumes that financial resources are obtained economically and used effectively in the accomplishment of desired goals.

It can also described as a process which assumes that financial plans and resources are applied efficiently for the accomplishment of set organizational goal and objectives. In other words, there is a pre-determined objective which financial control seeks to ensure its accomplishment.

Accountability, although has not been precisely defined, but attempts have been made to explain what it means and implies; in the book “Financial management in the public sector” written by Dean and Oshisanic, accountability is simply defined as “answerability” that it to say, expectation from public office holders to give account of the responsibility entrusted in there through their superior officers to the general public.

Accountability is as old as human history. In every organized society, items of value are held for custody and for management, also by groups or individuals who are are not owned of the items. Anyone who holds and controls resources belonging to others is accountable to owners of the funds or items. Accountability in position has to do with resources of a community. Community here could be referred to be the state of the entire nation. Therefore, accountability has been entered in the various constitutional provisions enacted at various points in time, here in Nigeria to make accountability imperative for every public office holder whose is in a position of trays, as in practiced in every civilized society.

In ancient days, the accounts of a estate, the domain or manor were examined by reading them out by those who complied teem to the person in authority. Thus, there was an element of answerability. This illustrates the stewardship function of accountability in government. The explanation having been given, we will therefore focus on Enugu state ministry of finance, its principal officers, and other instruments put in place to ensure effective and efficient financial control in Owerri North Local Government public sector organization in Imo state.

THE COMMISSIONER

The office of the commissioner is a non-elective political position. The commissioner for finance is the chief executive of the ministry. He holds the office at the pleasure of the governor who is the only office holder recognized by the constitution of the FNN 1979. The commissioner is a member of the state executive council. The commissioner has the final say on policy matters involving the ministry. He imitates and defends such policies at the state executive council meeting.

THE ACCOUNTANT GENERAL

The accountant general is the head of treasury operations and accounts production department of the ministry of finance. He is the chief accounting officer of government, and has specific responsibility for the production, management and supervision of government accounts and for the regulation of government’s cash balances.

The accountant general is a cancer civil servant, and he has under his supervision all grades of accountants and executives officers (Accounts) including the sub-treasurers deployed in the various sub-treasures and pay offices.

THE PERMANENT SECRETARY

The permanent secretary is a career civil servant, next to command to the commissioner in the hierarchy. He is the chief accounting officer of the ministry. He has the responsibility for all financial matters of the ministry.

BUDGETARY CONTROL

Before defining budgetary control, it will be pertinent to define what budget is. Is can be defined as an estimate of probable future income and expenditure, especially that made by a government, society, private person etc.

Budgetary control is therefore defined as the control stages of the management planning and control cycle beginning with the budget and also included in controlling and measuring, reporting, analyzing and feedback. In a nutshell, budgetary control is concerned with ensuring that actual expenditure is in line with the objectives and levels of activities envisaged in the budget are achieved. The budgetary control operates a well defined accounting system will helps to ensure accountability through compliance with the system operational procedures. In budgetary control, however, appropriate financial reports serves as a basis for evaluating the extent of compliance with the standard, established by the various “naira stewardship” relationship in government environment. Therefore, budgetary control is part of the control system or points, which helps to ensure accountability.

THE CONSTITUTION OF THE FEDERAL REPUBLIC OF NIGERIA

Section 79(2) of the 1979 constitution brought the accounts of all state ministries, departments, statutory co-operations and parastatals and government controlled companies under the arm bit of the auditor general for state. Is to ensure accountability.

FINANCIAL INSTITUTIONS

Financial instructions are yet another denial used for the purpose of control and accountability in public sectors. The financial institution usually states the broad principles to be followed in respect of financial control over expenditure.

AUDIT DEPARTMENT

The auditor general of that state heads the audit department of a state. The auditor general should be free from undue influence both in his attitude and in the structural relations between him and other public functionaries. The highest independence is an aspect the auditor general and his staff has to develop as professional. It is his duty to audit public account and report to the state house of Assembly.

PUBLIC ACCOUNTS COMMITTEE

The public account committee (PAC) is the legacy which the British parliamentary system of government gave to Nigeria and which inspite of changes in the legislative system over the years has itself not changed. It was introduced into Nigeria’s parliamentary system on 1988. The public account committee report constitution a detailed commentary on financial management and accountability in the public sector. It considers auditors reports and implements recommendation.

AUDIT ALARM COMMITTEE

The audit alarm committee is a committee changed with the responsibility of preventing irregular payments before they are made and examining all cases of alarm raised and brought before it.

2.2    THE NEED FOR FINANCIAL CONTROL IN PUBLIC SECTOR

ACCOUNTABILITY IN OUR PUBLIC SECTOR

Fund is a limited resource. Its application should therefore be a subject of systematic planning with reference to set objective. For the accomplishment of goals, there is the need for control of available resources. The control will not only direct implementation of strategies but also ensure correctio9n and fortification as the case may be. A management of public resources owes it as a responsibility to give account of how he has managed the resources of a state to the citizens.

Since government is an institution of society and at the complete discretion of society, its survival necessarily depends on its ability to fulfill and to continue to fulfill the goals for what society requires the institution of government. This demands that government renders full account of its stewardship including the efficiency, effectiveness, and the economy with which it has utilized society’s resources in the performance of its duties and obligations to society.

Financial control is needed to ensure responsible citizenship and enable government to discharge its responsibilities to the citizens.

2.3    PROBLEMS/PROSPECT OF FINANCIAL CONTROL IN PUBLIC SECTOR

Financial control in the public sector can be duly appreciated when the meaning of the key words (control) is fully understood.

Control is the process, which ensures that causes of action are maintained and that the desired ends are achieved. This control is concerned with the successful implementation of a course of action as predetermined by a decision model, observation of results to see whether plans are being carried out correctly and implies corrective action as a result of evaluation.

The obligation owed by any one occupying a position of trust or responsibility to provide appropriate response to all state holders for action carried out or performance achieved in the discharge of his duties.

Accountability is obligation because it goes as a co-ollary to the responsibility and authority to perform assigned duties. Therefore, it is a necessity whether or not request is formally required following from the definition above, the prospect of financial control and accountability in the public sector requires an effective combination of the essential element of application function.

This involves effective deployment of resources and the reality of the faithful discharge of duties as required and as accounted for. It follows therefore, that financial control gives practical efficiently and effectiveness in all aspect of investment, financing and application decisions. It provides the instrumentality of checks and balances, record keeping and documentation as well as of the activities. It serves to keep operations track, regulations effect and expected result in view. Accountability on its parts, compliments the principles of control. It translates to mean the duty to ensure and account for use of one’s discretion (over resources). Accountability is meaningless if it does not spring from transparent medium. The prospects of financial range of approaches namely:

(i)      FISCAL ACCOUNTABILITY INVOLVING

·         Adherence to applicable regulations

·         Consistency with good accounting principles.

·         Accuracy and fairness of reports

·         Reality and legitimacy of transactions

(ii)     MANAGEMENT ACCOUN

Get the complete project »


Instant Share On Social Media:


Can't find what you are looking for?
Call (+234) 07030248044.

OTHER SIMILAR BANKING FINANCE PROJECTS AND MATERIALS

A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis  ::   14507 engagements

ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »

A STUDY ON THE ACCEPTANCE AND ADOPTION OF THE CBN CASHLES POLICY IN PORT HARCOURT, NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7255 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND TO THE STUDY One of the prerequisites for the development of national economy according to Ajayi et al, 2006 is by encouraging a payment system that is secu...Continue reading »

A STUDY ON THE IMPACT OF BUDGETARY CONTROLS ON THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIDELITY BANK PLC)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   18934 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY AND PROFILE OF THE ORGANIZATION Following the uncertainties prevailing in the Nigerian business environment today, managers and stakeholders mu...Continue reading »

ANALYZING PERFORMANCE APPRAISAL TECHNIQUES IN UNION BANK NIG PLC

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   18536 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY In any evaluation of the condition necessary for the growth and survival of an organization, the role of performance appraisal is a strategic f...Continue reading »

AUDIT INDEPENDENCE: ENHANCING ACCOUNTABILITY AND TRANSPARENCY IN CORPORATE ORGANIZATIONS

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 71 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   10962 engagements

CHAPTER ONE INTRODUCTION 1.1. Background of the study The subject of transparency and accountability in modern day corporate organizations has continued to receive attention as never before. It has b...Continue reading »

CREDIT MANAGEMENT AND ISSUES OF BAD DEBTS IN COMMERCIAL BANKS IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract

The article on this topic (credit management and issues of bad debts in commercial banks in Nigeria) is an extract from literature review of the project material. The complete project work would be ma...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. JACOB from NASARAWA STATE UNIVERSITY, KEFFI said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good qualty. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 2. Ibhadam Adam H from Bayero University, Kano said "Projectclue are really good and I have enjoyed their services.".
    Rating: Very Good
  • 3. HUMPHREY from TARABA STATE UNIVERSITY said " I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good qualty. I recommend ProjectClue for any project research work.".
    Rating: Good
  • 4. Asad from Kardan said "useful information, thank you.".
    Rating: Very Good
  • 5. Mwanasinjale Bruno Y. from Catholic University College Of Mbeya (CUCoM) said "Conglatulation to all supporters of the project clue. For what your doing has great impact to the society".
    Rating: Excellent
  • 6. Agaji Gabriel from Federal University of Agriculture Makurdi said "Projectclue is the best for free research topics and material. Kudos to you guy.".
    Rating: Very Good