AN EVALUATION OF THE OFFICE OF ACCOUNTANT GENERAL IN THE MANAGEMENT OF PUBLIC FUNDS

AN EVALUATION OF THE OFFICE OF ACCOUNTANT GENERAL IN THE MANAGEMENT OF PUBLIC FUNDS

Abstract

An evaluation of the Office of Accountant General cannot be over emphasized in the public parastatals. That is why the researcher have taken the pain to carry out an in-depth research into or on ‘’An Evaluation of the Office of Accountant General in the Management of Public Funds’’. The research work begins in a way of introduction, background to the study, statement of problems, objectives of the study, significance of the study, scope and limitations and definition of relevant terms as applied the research project. In chapter two effort was made to cover very valuable/important and purposeful aspect of the office of accountant general as it contains as much as possible the meaning of accounting. It covers the roles and functions of the accountant general office. It studies the various departments in the office and reveals a lot of findings as to working of the department through the various data collections method. The researchers has adopted a descriptive design which implies that the study concerned itself with a systematic description of data related to the role in the management of public funds. The choice of the design is to facilitate easy and smooth investigation. In the findings of this research reveals that one of the problem affecting the office of the accountant general is that; it cannot perform its duties to the latter, because most of the qualified accountants who would have performed the needed accounting jobs leaves the public service early. The main reason why the accountants who are qualified leave the services early is because there are frustration by system in which public government accounting is being operated by such accounts or that is to be a given such qualified jobs as their counterparts in companies or other private organizations is not considered by the office of the accountant general. The researchers made some recommendations as to how the problem observed in the office could be tackled which states that the accounting system of the office of the accountant general in all department should be computerized.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Accounting is not limited to profit oriented organizations only, its information is desirable both in profit and non-profit oriented organizations, review of past activities and making of economic decisions for future use. In respect to this the Accountant General therefore plays a leading/valuable role in public accounting which is the same as government accounting. It entails the usage of public funds in terms of collection, disbursement and the production of final accounting stating income and expenditure of government.

With regard to the above, the accountant general who is also the chief accounting officer often sustains his or her royalty to the state or National Government to ensure that these funds so collected are properly kept and disbursed in accordance with section 3 (1) of the public finance control management law (Cap 108).

Management of any organization be it a profit making or not, requires a management information system (MIS) to carry out its functions, the complexity of such a system will depend upon the scale of operations and the nature of goals and objectives of such an organization, such goals in the private sector might include usually profit and growth.

Accounting information is a major part of the management information system, this system identifies measures and communicate qualitative monetary information to management and other interest parties.

In this project, an attempt is made to at identifying the value of accountant general in the effective performance of the accounting function in the public sector with particular references to the office of the account general

1.2     STATEMENT OF THE PROBLEMS

There are many problems hindering effective dissemination of accounting information in the office of the accountant general, such problem includes;

1.     Inadequate arrangement of the accountant general office to carry out it functions effectively

2.     Most qualified accountants employed leave the public service early, thereby increasing the rate of turnover of accounts.

3.     The office of the accountant general is not given free hand to organize human and material resources for the achievement of the desired goals.

4.     Posting of junior and senior staff is based on criteria than merit.

5.     Inspite of the control measures adopted to check frauds, causes of fraud and embezzlement are still on the increase.

Against this background, this study intends to evaluate/investigate the causes of and suggest solutions to these problems with the view to make the office of the accountant general perform more effectively.

1.3     PURPOSE OF THE STUDY

This study primarily aims at examining the value of the office of the accountant general in the management of public funds.

Again, this study will try to identify the basic problems that the office of the accountant general may be facing in the course of performing its function and find possible ways of solving such problems, furthermore, this work is aimed at:

1.     Know whether the office of the accountant general is operating in accordance with the laid down financial rules and regulations and to determine whether that theoretical aspect of accounting as laid down in the financial memorandum, financial circulars and other relevant laws are applied when trying to play its function.

2.     To determine the likely areas of weaknesses and find a reasonable solutions to such problems

3.     To establish the likely causes of such weaknesses and offer suggestions to take care of such weaknesses.

1.4     SIGNIFICANCE OF THE STUDY

 This study is significant in the following ways:

1.     It will also help in guiding accountants especially in management of public funds

2.     The study will help in providing the staff of office of the accountant general insight into most effective ways of accounting for revenue and expenditure to the state government.

1.5     RESEARCH QUESTIONS

In order to attain the objective of this study, the following research question will be investigated:

1.     Does the office of the accountant general lack suitable qualified accounting staff?

2.     Does the office of the accountant general play a valuable/important role in the management of public funds?

3.     Why do most qualified accountants employed leave the public service early?

4.     Are the annual final accounts of the government up to date?

5.     Are both senior and junior staff posted to various departments or sections based on merit.

6.     Inspite of the control measures adopted by the office of the accountant general to check frauds, do fraud still exist?

1.6     SCOPE OF THE STUDY

The research work is on the evaluation of the office of the accountant general in the management of public funds. And it intends to cover aspects of functioning of the office of the accountant general in the management of public funds.

1.7     LIMITATIONS OF THE STUDY

However, in carrying out this research finding, money will be or is needed for transportation, sourcing of valuable materials and other related documents or information’s relating to importance/value of the office of the accountant general.

1.8 DEFINITIONS OF KEY CONCEPTS

ACCOUNTING: It is the process of identifying, sorting, classifying and recording all financial transaction of an organization in a systematic manner and presenting it to the users for decision making

AUDITING: This is an official examination of business and financial records to see that they shows true and fair financial positions of the organization at a particular year.

ASSET: A thing of value, especially property that a person or company owns which can be used or sold to pay debts.

BUDGETING: This is a planning method used in estimating future income and expenditure

CAPITAL: It is the amount of money invested in a business

EXPENDITURE: It is the act of spending or using money, an amount of money spent (a reduction in public expenditure)

FRAUD: The crime of deceiving in order to get money or goods illegally

FUND: Reference to money

INCOME: The money that a person gain from investment in business.

INSPECTORATE: This is an official group of inspectors who work together on the same subject

LOAN: Money collected on credit with the intention of paying back with interest at maturity

OVERDRAFT: Taking excess fund from your bank account above saving or deposit in form of loan

RISK: Unforeseen dangers, destruction e.g. flood, fire, pest, outbreak burglary accident etc.

LIABILITY: The amount of money that a person or company owns

TREASURING: This is the control of public money and also where valuable things are stored.

VOUCHER: This is a printed piece of paper that can be used instead of money.