THE ROLE OF ACCOUNTING IN THE CONTROL OF GOVERNMENT EXPENDITURE

By

EWULONU UCHECHI

Presented To

Department of Accountancy

TABLE OF CONTENTS

COVER PAGE I

TITLE PAGE II

DEDICATION III

ACKNOWLEDGEMENT IV

TABLE OF CONTENT V

CHAPTER ONE - INTRODUCTION

1.1 GENERAL MEANING OF PUBLIC ACCOUNTING 1

1.2 DEFINITION OF TERMS 1

1.3 SOURCES OF MONEY INTO PUBLIC ACCOUNT 3

CHAPTER TWO - LITERATURE REVIEW

2.1 AREAS OF EXPENDITURE FROM PUBLIC ACCOUNTS 7

2.2 TYPES OF ACCOUNTING OFFICERS IN THE PUBLIC 10

2.3 THE ROLE OF ACCOUNTING OFFICERS IN THE

CONTROL OF PUBLIC EXPENDITURE 13

2.4 PROBLEMS HINDERING ACCOUNTANTS-

FROM IMPLEMENTING EFFECTIVE CONTROL 16

2.5 SUGGESTIONS AS TO THE SOLUTION OF -

THESE PROBLEMS 17

CHAPTER THREE

3.1 SUMMARY AND CONCLUSION 21

3.2 RECOMMENDATION 22

BIBLIOGRAPHY 26

CHAPTER ONE

INTRODUCTION

1.1 GENERAL MEANING OF PUBLIC ACCOUNTING

In the public sector organization exhibit a variety of social economic, political and legal characteristics. They have different pattern of accountability. They have different objectives and are financial in many ways. They also have different organizational structure.

Generally, public accounting may be defined as a composite activity of collecting, analyzing, recording, summarizing and interpretation of the financial transactions of the government units.

1.2 DEFINITION OF TERMS

ACCOUNTING: It may be defined as a systematic means of writing an economic history and plans of organization in both quantities and financial manner so that facts can be revealed and property analyzing such facts for the purpose of advising management.

ACCOUNT PERIOD: This is a period of the time usually one year at the end of which financial statements are prepared.

CERTIFIED PUBLIC ACCOUNTANCY (CPA): A professional accountant who has passed a professional examination obtained practical experience and satisfied other requirement, an is certified by the estate to practice public accounting including the auditing of a financial statement of organization.

BUDGET: A balance sheet of estimate revenue and expenditure designed for financing an entity for a future period.

EXPENDITURE: The use of to pay for an expense for the acquisition of an asset for the repayment of a debt or for any other business purpose.

REVENUE: This is the increase in owner's equity or capital resulting from earnings.

1.3 SOURCES OF MONEY INTO PUBLIC ACCOUNTS

The revenues of fund are the life-wire of any successful undertaking not only for the private sector but also for the public sector. The function which government must perform can only be discharged with resources in the form of money.

The various categories of sources of money for government pursues are as follows:

a. TAXATION: It is the compulsory levy, which the government imposes on the income of the individuals and incorporate establishments for fund raising purposes.

b. FESS, FINES, AND SPECIFIC CHARGES: These are income derived from payment for the use of public services eg. Vehicles license, water bill, tool fees, electricity bills, stamp duties and so on.

c. RENT, PROFITS AND RAYALTIES: These are income received from the use of government property, profit from government business establishment and income from mining tights.

d. LOANS: These are income assistance received from other countries. It is also incomes generated by borrowing from private individuals or from countries to finance projects.

e. GRANTS: These are financial assistance received from other countries or from international organization. Internally government could receive grants from patriotic citizens and establishment.

f. LAUNCHING: The Nigerian government often times organize fund raising launching wealthy individuals and corporate bodies donate generously towards finding of government projects.

STATEMENT OF PROBLEM

Scale the mid 19^th century, the role of the accountant has grown from the simple reporting of historical data to complex advising on all types of business decisions. In the outline of the fourth National development plan (1981-1985), it was observed that storage of skilled manpower constitute the most serious bottleneck to the capacity of the economy to absorb the increasing volume of investment made possible by oil revenue.

The constraint must be released if the economy is to make rapid progress in the direction of self-reliance. In the same plan it had been estimated that the country would need at least 10,200 accountants to enhance the implementation of the event aspects of the plan. The vital question on why there has been this slow growth in the accounting profession in Nigeria despite the pre-professional educational function provided by many colleges and universities.

Furthermore, the question would not restrict itself to the measurement of the number of accountants but also by the scope and quality of services the profession revenue to the community. Given the poor state of the economy at present and the complex tools economic management introduced by the government, the accounting profession seems to be faced with a high rate of inflation makes profits, rates of return and other performance measures to lose their meaning. In other words, the prospect of the accounting profession is called in question, this therefore provides a fertile ground for survey and hence the belief that necessitated this research works.

PURPOSE OF THE STUDY

Since the economy of Nigeria is a developing one, the emergency of a virile accounting profession providing services to industry, commerce agriculture and government cannot be over emphasized. Hence the research study is carried out with the aim of appraising the growth the prospect of accounting profession in Nigeria. Problems militating against good growth a prospect will be analyzed and solutions and recommendation given.