THE ROLE OF ACCOUNTING IN CONTROL OF PUBLIC EXPENDITURE IN NIGERIA
A STUDY OF CENTRAL BANK OF NIGERIA, UYO BRANCH (THE ROLE OF ACCOUNTING IN CONTROL OF PUBLIC EXPENDITURE IN NIGERIA)
1.1 BACKGROUND OF STUDY
In most developing countries including Nigeria, Government participation in economic activity is usually significant. One of the ways though which government has interviewed in Nigeria economy is through the established of public enterprises and statutory bodies operating services of all economic or social character or behalf of the government.
Since the colonial era, especially after independence in 1960, Nigeria pubic enterprises have witness a study growth write recently. Beginning as a trickle in the period between this era of second world war and Nigeria attainment of independence the creator of public corporation has rise to flood level since independence and his maintained a steady growth. The rationales behind the establishment of public enterprises in Nigeria are many. Some of the reasons include:
Generating revenue: They would add to available rational capital for the support of development and welfare programmer making to be controlled by a few individual, it possible for important profitable enterprises to be controlled by a few individual or group organization, certain critical activities national survival and economics stability and providing employment opportunities Ademolukun (1983). The public service renews commission (1975 classified public sector into public utilities.
Regulatory service body and financial Institution: Commercial and industrial enterprises being a mixed economy individual also own and operate private enterprises. A firm classified as private enterprises which it is founded and managed by an individual and organization or group of individual. There form are expected to be registered in the local government of private enterprises are numerous just like establishment of public enterprises. They include amongst other, provision of employment opportunities, generating income for the owner of the enterprises. Government interest in profit growth of the firm or enterprises which determine the tax liabilities of the firms, improve the performance of the public sector through competition.
Moreover, the general public is covered with the contribution which makes toward social upliftments which is exhibited to the environment in which the business is loaded and its willingness to contribute to the development of the environment.
The role of accounting in public enterprises in Nigeria is primarily to ensure accurate accountability in these sector and present the time and for financial position of the enterprises. All organization and effective observed over expenditure. These resource call only be well managed if accounting department of the organization give an accurate financial information to know how much the enterprises having, it is only when this is done that the firm allocation its resources and know what is to be done.
1.2 STATEMENT OF THE PROBLEM
POOR IMPLEMENT OF ACCOUNTING ROLE IN THE PUBLIC SECTOR: The role of accounting has been under apply in the public sector firm, there by operating in deficit and bring the country economy to minimum.
IN EFFECTIVE MANAGEMENT OF THE PUBLIC FUND: The deficiently of individual or personal in charge of the administration of public fund create more difficulty in managing public expenditure.
LACK OF BUDGETARY CONTROL SYSTEM: In every public or private sector there must be a budget to follow as a guide to the activities of an organization. But where this is not done or properly followed will render more calamity to the growth of the economy in the country.
1.3 OBJECTIVE OF THE STUDY
The objectives of the study include:
i. To find out if the public sector apply the role of accounting into the operating principle of the firm.
ii. To find out the contribution of accounting in the control of public expenditure.
iii. To ascertain the effect of accounting role in public enterprises.
iv. To find out the reason behind public expenditure
v. To find out the possible solution to challenges faced by public sector.
vi. To voice recommendation based on the reseal finding.
1.4 RESEARCH QUESTIONS
i. Does the public sector apply the role of accounting in its organization?
ii. Does accounting exist in the public sector?
iii. Can surplus fund cause increase in public expenditure?
iv. Can proper accounting control public expenditure?
v. Does the public sector prepare accurate record in all transaction and maintain accuracy?
1.5 RESEARCH HYPOTHESIS
Ho: There is no significance role of accounting in the control of public expenditure
HI: There is a significance role of accounting in the control of public expenditure
Ho: Public sectors do not apply the role of accounting in its enterprises.
HI: Public sectors do apply the role of accounting in its enterprises.
1.6 SIGNIFICANCE OF THE STUDY
This study will be beneficial to the public sector on how to manage it fund. It will also be significance to the private sector on how to control it expenditure in order to achieve the set up objectives or goals.
To prefect will be beneficial to student researching on similar topic.
This research work will also be beneficial to any reader that will come across this work for more knowledge.
1.7. SCOPE OF THE STUDY
This study centered on the role of accounting in control of public expenditure with a study of central bank of Nigeria (CBN) Akwa Ibom State Branch.
1.8. LIMITATION OF THE STUDY
In the cause of carrying out this research the researcher actually encounter some challenger which was a limitation to the research work.
Poor response: some respondent find it very obscure to comply with questionnaire administered to them, since they don’t really benefit from it insufficient material that is related to the research topic which would have general good information.
1.9 DEFINITION OF TERMS
PUBLIC SECTOR: Public sector accounting in an accounting method applied to non-profit pursuing entities in the public sector, which has to do with, recording, summarizing, analyzing, interpretation and communication of government financial statement.
C.B.N: Central Bank of Nigeria
PUBLIC EXPENDITURE: this simply refers to the expenses which the government incurs for its own maintenance.
CANON: This simply refers to a general role or principle guiding a particular activity.
GOING CONCERN CONCEPT: This concept always assure the business will continue to operate for an indefinitely long period prepared of time (Omya and Frank (2008).
BUDGET: Budget may be defined as the annual estimates, prepared and presented by the present and approved by the national assembly, stating the expected revenue and the estimated expenditure for a particular financial year, Andrew Essien (2013)
FISCAL POLICY: Fiscal policy is that area of public financial which concerns itself with raising of revenue through taxation and other means and the level and pattern of government expenditure that are needed to achieve a desired economic objective (s) Rideh (2010)
APPRAISAL: Appraisal simply means to asses the quality or value of something.
CIMA: Chartered Institute of Management accountancy