Abstract
This project work examines the evaluation of
financial control and management system in government agencies. Nigeria has steadily decline into a corrupt nation
without morals because accountability is lacking in the public sector. To this
effect, the broad objective of the study is to ascertain if proper financial control
contributes to management efficiency and also to examine if proper management
of working capital enhances adequate profitability. The primary source of data
collection was adopted in the study where stratified questionnaires were
distributed to the population of the study. A total number of 100 questionnaires
were distributed, out of which 75 were retrieved and used for the study. The
simple random sampling technique was adopted and the chi-square statistical
tool was used to test the stated hypotheses of the study. The findings revealed
that proper management of working capital enhances adequate profitability and
that management of the fund is in line with public interest and in conformity
with the relevant data. The study concludes that the assessment, collection and
allocation of education tax need to be urgently improved on. The study
recommends among others that government should adopt the process of
computerization of tax records to make them readily available and assessable.
TABLE
OF CONTENTS
Title
Page i
Certification ii
Dedication
iii
Acknowledgements iv
Abstract v
Chapter One:
Introduction
1.1
Background to the Study 1
1.2 Statement of
Problem 4
1.3 Research Questions
5
1.4 Objective of the Study 5
1.5 Statement of Hypothesis(es) 6
1.6 Significance of
the Study 6
1.7 Scope of the Study
7
1.8 Limitations of the
Study 8
1.9 Definition of
Terms 8
Chapter Two:
Review of Related Literature 10
2.1 Introduction 10
2.2 Financial Management in Public Sector 12
2.3 The Objectives and
Goals of Financial Management in Public Sector 13
2.4 Purpose of Budgeting 15
2.5 Problems of Budgeting 16
2.6 Concept of Control 19
2.7 Budgetary Control 20
2.8 Budgetary
Control Process 23
2.9 Differences
between Financial Management in Public and Private Sector 25
2.10 A Review of the Decree
Establishing Education Trust Fund28
2.11 The Organizational Structure of Education Trust Fund
33
2.12 Sources of Funds
of Education Trust Fund 45
2.13 Disbursement of the Proceed from Tax 48
2.14 Disbursement
of Contingency and Internally Generated Funds 48
Chapter
Three: Research Method and Design 50
3.1 Introduction 50
3.2 Research Design 50
3.3
Description of Population of the Study 50
3.4
Sample Size 51
3.5
Sampling Techniques 51
3.6
Sources of Data Collection 51
3.7 Method of Data Presentation 52
3.8 Method of Data Analysis 52
Chapter Four:
Data Presentation, Analysis and Interpretation 53
4.1
Introduction 53
4.2
Presentation of Data 53
4.3
Data Analysis 53
4.4
Hypothesis Testing 66
Chapter Five: Summary
of Findings, Conclusion and Recommendations 72
5.1 Introduction
72
5.2 Summary
of Findings 72
5.3 Conclusion
73
5.4
Recommendations 73
References 75
Appendices 77
CHAPTER
ONE
INTRODUCTION
1.1 Background to the
Study
Wants are numerous while resources are
limited but there is every tendency to waste or underutilize the limited
resources by the human factor involved in the production of goods and services.
With various companies competing with one another, only few that are able to
produce at least possible cost will survive the growing competition in the market.
Therefore, it is paramount for every serious business undertaken to produce at
that possible minimum cost so as to remain in business and also achieve the
corporate objectives of profitability and stability. In view of this, there is
every need to do a realistic the financial planning of the activities of the
firm taking into consideration the limiting factors and the long term
objectives of the firm (Lockyer, 2013).
The
success of financial controls and management system in government agencies
today depends in large part on management’s ability to deal effectively with
financial controls in such a task and management of government agencies need
the knowledge of the structure of the organization. The subject matter has to
do with financial control and management system. This information can be made
available by the accountant. The principal accounting officer should constantly
make available to the Chief Executive officer, such information in readily
understandable reports to enable management evaluate the proper disbursement of
fund for a successful and continuous existence of the organization. This is so,
because the nature of government accounting is not for profit making but for
the administrative and political unity of the people and the satisfaction of
the social ends of people.
Public
service is defined by Batty
(2008) as the collectivity of government institutions or specialized agencies
by law, financed with public money, staffed by professionals as carrier
bureaucrats, for the purpose of executing public policies. The public service
is often used to refer to all institution in the public section ministries,
parastatal, public corporations, the armed forces, and the police amongst
others.
From
the above explanation, it is clear that Education Trust Fund (ETF) as a civil
service institution falls into the public sector.
To
be specific it is one of the government parastatals in Nigeria Civil Service,
established by Decree 7of 1993, that Act was amended by Act No. 40 of 1998 as
an organ of the government to manage proceeds from the Education Trust Fund.
We
are no doubt aware that finance is the backbone in every organization. In this,
attempt would be made to critically examine the management of the ETF finances
against the backdrop of the Decree establishing it and the public sector
financial regulations. This is in line with the public sector rules concerning
government finances reflecting all transactions in receipts, in disposition of
government fund and property with a view of demonstrating that the transactions
are in conformity with stabilized rules and procedures.
1.2 Statement of
Problem
Nigeria
has steadily decline into a corrupt nation without morals because
accountability is lacking in the public sector. In the area of rampant looting of
public fund and gross financial impropriety in the public sector, how are we
sure that those vested with the scared responsibility of managing and
disbursing the colossal sum of money Education Tax are indeed doing so with
honesty?.
Another
critical problem is the mode of collection of this Fund. About N79,358,800,995.77 assessable taxes
accountable to ETF from 1999 to 2008, only N62,122,295,666.79
was disbursed by the Fund. This is a system of serious defect that poses a set
back on the operation of this organization. Is the assessment and collection of
this special fund by the bureaucratic bottlenecks associated with the public
sector alone? What are the actual problems and how can them be minimized or
completely eradicated so that they will think that, informed imposition of education tax can be actualized.
These are some of the basic puzzle this research seeks to unravel.
1.3 Research
Questions
Research
questions are questions send to the respondents to make a request for certain
problems to gather some facts about certain problems.
i. How do proper financial control contributes
to management efficiency?
ii. Does proper management of working capital
enhances adequate profitability?
iii. Is management of the fund in line with the
public interest and in conformity with the relevant data?
1.4 Objective of the
Study
The
objective of this study include;
i. To ascertain if proper financial control
contribute to management efficiency.
ii. To examine if proper management of working
capital enhances adequate profitability.
iii. To
investigate if management of the fund is in line with the public interest and
in conformity with the relevant data.
1.5
Statement of Hypothesis
Hypothesis One
Ho: Proper financial control does not contribute to
management efficiency.
HI: Proper financial control contributes to
management efficiency.
Hypothesis Two
Ho: Proper management of working capital does not
enhance adequate profitability.
HI: Proper management of working capital
enhances adequate profitability.
Hypothesis
Three
HO: Management of the fund
is not in line with public interest and in conformity with the relevant data.
HI: Management of the fund
is in line with public interest and in conformity with the relevant data.
1.6 Significance
of the Study
From
the statement of the purpose of this study above, it is clear that this
research is set out to identifying the strength and weakness of the processes
and procedures for collection and utilization of the education tax. It goes
without saying therefore, that the findings resulting from this study will
enable the relevant authorities consolidate such strategies identified to be
effective while at the same time improve efficiency in the financial management
of the ETF and make it more responsible to its statutory responsibilities.
Other
related public organization will no doubt find the result of this exercise useful in
carrying out their specific statutory responsibilities. Thus, while this study
focus on ETF, it will be ideal for public offices to quest for efficiency,
profit and accountability in the management of public funds.
1.7 Scope
of the Study
The
public sector is a very wide area it is practically impossible to carry out a
single research on the financial management of all the organization that make
up the public sector the heterogeneity and multiplicity of public sector
organization do not however mean that each of them is totally unique.
The
research is limited to Education Trust Fund among the various agencies in
promoting the education sector in Nigeria and there are so many documents but
the researcher was not able to include all of them. The study is basically
carried out in Benin City with a sample size of 75 for effective correlation of
information.
1.8 Limitations
of the Study
The study is faced with some constraints
which may likely affect the generalization of findings; the constraints include
the following below:
·
Geographical
Coverage: Factor that may likely affect the work is the issue
of investigating all accounting firms in the country. Due to the spread of
accounting firms all over major cities in the country, the researcher could not
be able to cover the whole areas.
·
Problem
of sourcing for material: The research was faced with
problems of getting current materials, textbooks, journals, seminar papers in
relation with this research topic.
1.9 Definition of
Terms
Tax: Tax can be defined as a
compulsory levy imposed on individual’s income and companies profit or group by
the government.
Contribution: As used in this
write up depicts to mean the amount that is been made in financial management
in public sector to make it successful.
Financial Management: It
is define as the management plan and control of financial resources of the
organization to achieve the objective of the organization.
Public Sector: It is all
organization which arc not privately owned and operated.
Finance: the money held by an
organization to efficiently run or manage the activities of that organization
and through other individuals.
Sector: This is put as privately
owned and what is owned by the state, city and corporation etc.
Public: It can be as a
government. Comprising of all components or a group with a particular interest.
A matter of public knowledge is something known to everybody.
Education: It is the process of
acquiring or imparting knowledge to live well in the society. It also mean the
process of transmitting societal norms, values and desirable attitudes from one
generation to another.
Login To Comment