The Influence Of Accounting System On Public Expenditure Control In Nigeria

The Influence Of Accounting System On Public Expenditure Control In Nigeria

Abstract

The design examines the influence of account system on public expenditure control in Nigeria using Etsako West Local Government as a case study. The main ideal of this study is to find out how original government account system helps to control and regulate public expenditure in Nigeria and also to find out the extent to which the storeroom department serves as a custodian of all other public expenditure. The primary source of data collection was used in gathering data from repliers. A structure questionnaire was designed by the experimenter and validity by two experts from the statistics department was used to gain data, Chi- Square( X2) was used to test suppositions formulated. Due to the findings, it was discovered that factual expenditure doesn’t always conform with budget expenditure and it was set up that no limit is exercised over public expenditure by the control. The study concludes that accountant tries as important as possible to keep expenditure, which has been decided and planned within the limit set by operation and the units of available hinds. It was also recommended amongst others that chartered accountants should be employed to head the accounts department therefore, he’ll help ameliorate on the system of counting control over public expenditure formerly in operation.

Chapter One

Preface

Background to the Study

In the history, public expenditure was an area of study fairly unexplored despite the significant increase that have been recorded times, this field has still not gained a prominent position in our public profitable nor has the focal point been a well balanced bone . fluently economist who was actually concerned with the profitable of public spending was more engaged with the taxation aspects rather than with the expenditure of public moneybags.

The circumstance girding the law spread of development in this field of mortal bid could maybe be credited to numerous factors similar as lack of readily accessible information about the composition and incident of expenditure and also the structure of institution which compass public expenditure opinions.

still of recent, there has been rapid-fire increase in public expenditure in West African countries. Particularly Nigeria due to the fact that the functions of the colorful situations of government have inversely increased both intensely and considerably.

In ultramodern times the operation of public expenditure by the government as a variable tool for development is a clear incarnation of its overriding significance.

Through public expenditure in a developing nation like Nigeria can’t overemphasized. a duly planned and executed public expenditure promotes social and profitable charges facilitates balanced indigenous growth rapid-fire development of agrarian and artificial sector and an effective exploitation and spectacular development of mineral resource of any nation therefore it can be safely concluded that the part of public expenditure as a pivot of profitable development in any nation is both tremendous and fascinating.

Statement of Problem

One of the most abecedarian demand of any government, be it original, state, central government does through, public expenditure. Public expenditure in this country has been characterized in the history by reckless spending, embezzlement rallying for contracts not ultimately executed and a host of other short practice budgeting has come a ritual exercise without a corresponding control of its methodical perpetration

It’s 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 anticipated not only to enhance responsibility in public office. But as well insure that there’s a commensurable structure development to regard for similar expenditure.

However the problem is that the burden of public expenditure in the original government council has fiscal operation arising from effective planning and control.

Hence the knowledge of counting aids the original directors to maintaining an effective budgeting control and over leakages, wastage diversion and misutilization of finances that are generally associated with public expenditure.

Exploration Questions

In order to achieve the ideal of the study the following question area raise.

i. How does the original government area counting system helps to control and regulate public expenditure?

ii. To what extent the storeroom department serves as a custodian of all other public expenditure?

iii. What can the accountant in the original government council do to bring about responsibility in respect of public expenditure?

Ideal Of The Study

In order to give answer to the exploration question stated above the following objects needs to be set.

To examine how the original government account system helps to control and regulate public expenditure in Nigeria.

ii. To find out the extent to which the storeroom department serves as a custodian of all other public expenditure.

iii. To ascertain the capability of original accountants to being responsibility in respect of public expenditure.

Statement Of Suppositions

In order to achieve the ideal of the study, the following suppositions are formulated.

thesis One

HO There’s no significant different between effectives counting system and control regulating of public expenditure.

HI There’s significant different between effectives counting system and control and regulating of public expenditure.

thesis Two

HO The storeroom department isn’t a custodian of all documents relating to public expenditure.

HI The storeroom department is a custodian to all departments relating to public expenditure.

thesis Three

HO Without an accountant in the original government council there can be no responsibility in respect of public expenditure.

HI Without an accountant in the original government council there’s responsibility in respect public expenditure.

Significance of the Study

1. In the light of the present profitable heads in Nigeria and the need to bring government closer to the people at the lawn root position, the original government has supposed it imperative to develop some of its responsibility to the original government council.

2. The study will help to bring some problem encountered by original government authorities in effectively having a system of book keeping and sound system of account to time light of the relative authorities.

Compass Of The Study

This study will also serve as a spring board to experimenters and scholars in account department or other affiliated field of study.

This study is to examine the part of account in the control of public expenditure of a particular area and to state whether the effective use of similar control measure could help to ameliorate the operation of the colorful situations of government council of Auchi megalopolis. Using a sample size of 80 in other to get valid information and a time frame for this disquisition is 5 times i.e. 2009 – 2013.

Limitations of the Study

Experimenters have extensively different information needs about an enterprise. It has been stressed that the influence of account system on public expenditure in Nigeria is one of a number of sources on information available to decision makers though they’re occasionally tempted to place more faith in account than anticipated. It’s thus essential to punctuate the limitations of account system on public expenditure which in turn limit its utility.

Accounting information in terms of plutocrat

ii. Account system is expressed in financial terms and it’s assumed that a financial unit is stable overtime.

iii. Account information/ account system is as yet an inexact wisdom and depends occasionally on a number of estimates, particular judgementetc.

iv. Account system can not be used as only test of directorial performance.

Description Of Terms

Account This is defined as the process of measuring recording, classifying and recapitulating fiscal in conformation that’s used in marking profitable decision.

Public Finance This is done as the way and means in which the government deals with the profitable and expenditure of a country.

Public Expenditure This is expenditure which the government uses for its own maintained and also for the society and the profitable as a whole.

Government Accounting This may be defined as the process of recording analysis classifying summary communicating and interpreting fiscal information about government total and in pastoral reflecting all sale involving bills and disposition of government finances and duly.

Budget This appertained to as a fiscal an d quantitative statement prepared and approved previous to a defined of the policy to be handed during that period for attaining a given ideal 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 superintendent to the demand of a policy and the nonstop comparison of factual objects of that policy or to give a base for its modification.

Treasury This is the government department that control public plutocrat. It’s a place precious effects are kept.