- AN EVALUATION OF MANAGEMENT ACCOUNTING TECHNIQUES ON ORGANIZATION DECISION MAKING PROCESS (A CASE STUDY OF CADBURY NIGERIA PLC, IKEJA, LAGOS)
- THE IMPACT OF PERFORMANCE EVALUATION THROUGH THE ANALYSIS OF FINANCIAL STATEMENT ON INVESTMENT DECISIONS (A CASE STUDY OF LOGMAN NIGERIA PLC.)
- FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)
- EFFECTS OF PERFORMANCE EVALUATION THROUGH THE ANALYSIS OF FINANCIAL STATEMENT ON INVESTMENT DECISIONS (A CASE STUDY OF LOGMAN NIGERIA PLC.)
- EFFECT OF FINANCIAL MANAGEMENT STRATEGIES IN THE MANAGEMENT OF PUBLIC ENTERPRISE (A Case Study of NNPC)
- EVALUATION OF NIGERIA DEPOSIT INSURANCE CORPORATION (NDIC)’S ROLE IN DISTRESS MANAGEMENT OF NIGERIAN BANKS.
- WASTE DISPOSAL MANAGEMENT IN LOCAL GOVERNMENT ADMINISTRATION (A STUDY OF SURULERE LOCAL GOVERNMENT)
- EVALUATION OF FINANCIAL CRIME CONTROL IN NIGERIA (A CASE STUDY OF EFCC 1999 - 2010)
- WASTE DISPOSAL MANAGEMENT IN LOCAL GOVERNMENT ADMINISTRATION (A CASE OF SURULERE LOCAL GOVERNMENT)
- EFFECT OF BIRTH ORDER ON STUDENTS EDUCATIONAL DEVELOPMENT IN MAINLAND LOCAL GOVERNMENT AREA OF LAGOS STATE
EVALUATION OF FINANCIAL CONTROL AND MANAGEMENT SYSTEM IN GOVERNMENT AGENCIES (A CASE STUDY OF EDUCATIONAL TRUST FUND)
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
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
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
Ho: Proper financial control does not contribute to management efficiency.
HI: Proper financial control contributes to management efficiency.
Ho: Proper management of working capital does not enhance adequate profitability.
HI: Proper management of working capital enhances adequate profitability.
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.