Abstract
The
project examines the influence of accounting system on public expenditure
control in Nigeria
using Etsako West Local Government as a case study. The main objective of this
study is to find out how local government accounting system helps to control
and regulate public expenditure in Nigeria and also to find out the
extent to which the treasury department serves as a custodian of all other
public expenditure. The primary source of data collection was used in gathering
data from respondents. A structure questionnaire was designed by the researcher
and validity by two experts from the statistics department was used to obtain
data, Chi-Square (X2) was used to test hypotheses formulated. Due to
the findings, it was discovered that actual expenditure does not always conform
with budget expenditure and it was found that no limit is exercised over public
expenditure by the control. The study concludes that accountant tries as much
as possible to keep expenditure, which has been decided and planned within the
limit set by management and the units of available hinds. It was also
recommended amongst others that chartered accountants should be employed to
head the accounts department thus, he will help improve on the system of
accounting control over public expenditure already in operation.
TABLE
OF CONTENTS
Title
Page
Certification
Dedication
Acknowledgements
Abstract
Table
of Contents
Chapter One: Introduction
1.1 Background to the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Statement of Hypothesis(es)
1.6 Scope of the Study
1.7 Significance of the Study
1.8 Limitations of the Study
1.9 Definition of terms
Chapter
Two: Review of Related Literature
2.1 Introduction
2.2 Classification of Public Expenditure Revenue and
Capital Expenditure
2.3 Importance of the Public Expenditure
2.4 Canons of Public Expenditure
2.5 Factors
Affecting the Increase in Public Expenditure
2.6 Effects of Public Expenditure on Production:
Economic Growth Distribution
2.7 The Role of Government Accounting in the Control of Public Expenditure
2.8 Budgetary
Control in Public Expenditure
2.9 The Role of an Accountant in the Control of Public
Expenditure
Chapter
Three: Research Method and Design
3.1 Introduction
3.2 Research Design
3.3 Description of Population of the Study
3.4 Sample Size
3.5 Sampling Techniques
3.6 Sources of Data Collection
3.7 Methods of Data Presentation
3.8 Methods of Data Analysis
Chapter
Four: Data Presentation, Analysis and Interpretation
4.1
Introduction
4.2 Presentation of Data
4.3 Data Analysis
4.4 Hypothesis Testing
Chapter
Five: Summary of Findings, Conclusion and
Recommendations
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendations
References
Appendix
I
Appendix
II
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In the past, public expenditure was an
area of study relatively unexplored despite the significant increase that have
been recorded times, this field has still not gained a prominent position in
our national economic nor has the focal point been a well balanced one. Easily
economist who was actually concerned with the economic of public spending was
more engaged with the taxation aspects rather than with the expenditure of
public monies.
The circumstance surrounding the law
spread of development in this field of human Endeavour could perhaps be
ascribed to many factors such as lack of readily accessible information about
the composition and incident of expenditure and also the structure of
institution which surround public expenditure decisions.
However of
recent, there has been rapid increase in public expenditure in West African
countries. Particularly Nigeria
due to the fact that the functions of the various levels of government have
equally increased both intensively and extensively.
In modern times the application of public expenditure by the government
as a variable tool for development is a clear manifestation of its overriding
importance.
Through
public expenditure in a developing nation like Nigeria can not overemphasized.
a properly planned and executed public expenditure promotes social and economic
overheads facilitates balanced regional growth rapid development of
agricultural and industrial sector and an efficient exploitation and
spectacular development of mineral resource of any nation thus it can be safely
concluded that the role of public expenditure as a pivot of economic
development in any nation is both tremendous and fascinating.
1.2 Statement
of Problem
One of the
most fundamental requirement of any government, be it local, state, central
government does through, public expenditure. Public expenditure in this country
has been characterized in the past by reckless spending, embezzlement
mobilization for contracts not eventually executed and a host of other short
practice budgeting has become a ritual exercise without a corresponding control
of its systematic implementation
It is the
intention of this study to examine .the impact of effective accounts procedure
on the control of public expenditure. The recommendation o this study is
expected not only to enhance accountability in public office. But as well
ensure that there is a commensurate infrastructure development to account for
such expenditure.
However the
problem is that the burden of public expenditure in the local government
council has financial management arising from effective planning and control.
Hence the
knowledge of accounting aids the local executives to maintaining an effective
budgeting control and over leakages, wastage diversion and misapplication of
funds that are usually associated with public expenditure.
1.3 Research
Questions
In order to
achieve the objective of the study the following question area raise.
i.
How does the
local government area accounting system helps to control and regulate public
expenditure?
ii.
To what
extent the treasury department serves as a custodian of all other public
expenditure?
iii.
What can the
accountant in the local government council do to bring about accountability in
respect of public expenditure?
1.4 Objective
of the Study
In order to
provide answer to the research question stated above the following objectives
needs to be set.
i.
To examine
how the local government accounting system helps to control and regulate public
expenditure in Nigeria.
ii.
To find out
the extent to which the treasury department serves as a custodian of all other
public expenditure.
iii.
To ascertain
the ability of local accountants to being accountability in respect of public
expenditure.
1.5 Statement
of Hypotheses
In order to
achieve the objective of the study, the following hypotheses are formulated.
Hypothesis One
HO: There is no significant different between
effectives accounting system and control regulating of public expenditure.
HI: There is significant different
between effectives accounting system and control and regulating of public
expenditure.
Hypothesis Two
HO: The treasury department is not
a custodian of all documents relating to public expenditure.
HI: The treasury department is a custodian
to all departments relating to public expenditure.
Hypothesis Three
HO: Without an accountant in the
local government council there can be no accountability in respect of public
expenditure.
HI: Without an accountant in the
local government council there is accountability in respect public expenditure.
1.6 Significance of the Study
1. In the light of the present economic crises
in Nigeria and the need to bring government closer to the people at the grass
root level, the local government has deemed it imperative to develop some of
its responsibility to the local government council.
2. The study will help to bring some problem
encountered by local government authorities in effectively having a system of
book keeping and sound system of accounting to time light of the relative
authorities.
1.7 Scope of the Study
This study
will also serve as a spring board to researchers and students in accounting
department or other related field of study.
This study
is to examine the role of accounting in the control of public expenditure of a
particular area and to state whether the effective use of such control measure
could help to improve the operation of the various levels of government council
of Auchi metropolis. Using a sample size of 80 in other to get valid
information and a time frame for this investigation is 5 years i.e. 2009 –
2013.
1.8 Limitations of the Study
Researchers
have widely different information needs about an enterprise. It has been
stressed that the influence of accounting system on public expenditure in
Nigeria is one of a number of sources on information available to decision
makers though they are sometimes tempted to place more faith in accounting than
expected. It is therefore essential to highlight the limitations of accounting system
on public expenditure which in turn limit its usefulness.
i. Accounting
information in terms of money
ii. Accounting system is expressed in monetary
terms and it is assumed that a monetary unit is stable overtime.
iii. Accounting information/accounting system is
as yet an inexact science and depends sometimes on a number of estimates,
personal judgement etc.
iv. Accounting system cannot be used as only
test of managerial performance.
1.9 Definition of Terms
Accounting: This is
defined as the process of measuring recording, classifying and summarizing
financial in formation that is used in marking economic decision.
Public Finance: This
is done as the way and means in which the government deals with the economic
and expenditure of a country.
Public Expenditure: This
is expense which the government uses for its own maintained and also for the
society and the economic as a whole.
Government Accounting: This may be defined as the process of recording analysis classifying
summary communicating and interpreting financial information about government
aggregate and in clerical reflecting all transaction involving receipts and
disposition of government funds and properly.
Budget: This
referred to as a financial an d quantitative statement prepared and approved
prior to a defined of the policy to be provided during that period for
attaining a given objective which may include income expenditure and the
enjoyment of capital.
Budgeting Control: This
could be defined as the establishment of budgeting relating to the
responsibility of all executive to the requirement of a policy and the
continuous comparison of actual objectives of that policy or to provide a basis
for its revision.
Treasury: This is the
government department that control public money. It is a place valuable things
are kept.
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