THE
IMPACT OF PUBLIC SECTOR ACCOUNTING ON ACCOUNTABILITY IN PUBLIC SECTOR
(A
CASE STUDY OF KADUNA POLYTECHNIC)
CHAPTER
ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
For
the purpose of fiscal accountability, there is first of all the auditor general
whose position, powers, security of tenure; impartiality and independence are
guaranteed by the constitution. It is his duty, through to regular auditing of
accounts, to ensure that government department/parastatal and other public
establishments spend funds appropriated for them in a proper manner, for the
purpose for which the funds were appropriated and in accordance with government
rules and regulations. He can surcharge offenders, refers cases of fraud and
misappropriation to the policy and by yearly reports, left the legislature know
how the funds that it had previously were appropriated and used.
Nigeria
for the federal and state governments, are bodies known as the public accounts
committees of which the auditor general duty is to scrutinize the accounts and
establishment to question or examine those responsible and report to the
legislature which appointed them. There is the legislature itself which are the
sole sources of money supply for public, must scrutinize all elements of funds
to carryout public service.
The
budget sessions afford every sector effective:
1. Are
the internal control measure adequate to ensure public accountability
2. What
are impact of public accountability in Kaduna polytechnic
3. What
problems likely to be encountered as regards to effectiveness and economy
1.2 STATEMENT OF PROBLEMS
More
often than not, public state and reactions addressed to how government
resources are managed accounted for in the public sector organization have left
much to be desired such statements and reactions have unfolded many
impressions. Bill before examining these impressions let us look at what Dr. Bamye
Akipa of Ahmadu Bello University, Zaria put together as public statement in the
New Nigeria of Tuesday 25th June 1991.
Occasionally
one runs into statements either in the mass media or conversation in respect of
public resources such as follows:
i.
For all the taxes we are forced to what value
we are getting for the money
ii.
Government should not have approved the
location of that project there, it is nothing but a white elephant project
iii.
That contract price was unduly inflated
iv.
How could that equipment cost that much
v.
It is government property and therefore feels
free to use it anyhow you can
vi.
Why are you bothered about this work, don’t
you know it is government work?
This
researcher was privileged to have personal experience of the situations at
Kaduna polytechnic and think the situation there like a typical public
organization would attract the same verdict as had been collated together by
Dr. B. Akpa.
The
major emphasis of the reformed civil service of 1988 was an attainment of
efficient and expedition administration, reduction in expenditure and
improvement of economy to the fullest extent consistent with efficiency in the
implementation of policies and programmes to the fullest extent practicable.
The emphasis on economy efficiency and effectiveness in executing government
programmes has constrained every government organization to set into motion
internal system to enhance the desired result. This in effect brought to bear
on the internal audit units of Kaduna polytechnic the responsibility of proper
internal auditing which will in turn advance effective internal control system
to conform to the new government policy. All these developments call for
dynamic processes of investigation and verification of activities to enable
management monitor control and measure the rate of its performance output,
bearing in mind the cost in terms of resources inputs.
The
act of investigation, verification and reporting are all audit functions. The
problem now is to determine which audit approach will be most effective in
assisting management to have a better grip of internal control and
accountability so as to effect the desired economy. Efficiency and
effectiveness for result oriented performance.
Experience
has shown that hitherto financial audit carried out in Kaduna Polytechnic,
emphasis less on economy efficiency and concern has often been to accuracy and
conformity with regulations. This is another approach will ensure the measure
of economy, efficiency and effectiveness audit (the three Es audit is advocated
here.)
The
problem of this research now therefore, remains to establish if the new audit
approach being advocated will enhance better internal control and accountability
than the hitherto financial audit. The main problem is therefore stated thus:
Is
economy, efficiency and effectiveness audit a better effective management tool
for internal control accountability financial audit?
The
problem is further broken down into small specific problem as follows:
a)
Can the three ES audit enhance the desired
system of internal control better than financial audit
b)
Can the three Es audit enhance effective
accountability than financial audits?
c)
Can the three Es audit enhance more comprehensive
stewardship reporting than financial audit?
1.3 OBJECTIVE OF THE STUDY
1.
The aims and the purpose of this work
includes; the responsibility of designing accounting system in public
parastatals and other related organizations with the need of marking right
design and having the right calibre of officers to implement the system in
order to achieve the desired results.
2.
To evaluate the accounting system of the
ministry of finance in Kaduna State in relation to its scope of activities
3.
To evaluate the level of accountability in
the public parastal and other similar organization
1.4 RESEARCH HYPOTHESIS
Ho: That public
sector accounting does not leads to accountability in Public sector.
Hi: That public
sector accounting does leads to accountability in Public sector.
1.5 SIGNIFICANCE OF THE STUDY
The
significance of this research work cannot be over emphasized the reason is that
it is a pre-requisite for the researcher to acquired the award of National
Diploma in Accountancy.
The study
is significance to public enterprises management as it will enable them to know
the importance of public accounting towards ensuring accountability in public
organization.
The
significance of the study does not only limited to public sector, the private
organization can make use of this research work and apply the recommendations
made by the researcher to ensures proper accountability.
Lastly,
the work will serve as a source or reference for future researcher that may be
willing to undertaken research on the subject matter.
1.6 SCOPE OF THE STUDY
The
scope of the study is to critically analyze the
impact of public sector of accounting
on accountability in public sector. The research is carryout to covered Kaduna
polytechnic as the case study. Also to highlight the role of internal audit,
the role of internal control and the effect of accurate record keeping as
techniques of accountability in the public sector.
1.7 HISTORICAL BACKGROUND OF THE CASE STUDY
It
is worthwhile to state briefly and objectives of Kaduna Polytechnic. Kaduna
Polytechnic was established in 1956 as Kaduna Technical Institute. The first
significance report on the proposed establishment of a polytechnic to be built
in the then northern Nigeria was prepared by Dr. H. W French and Mr. G. H
Wiggles north of the British Ministry of Education (which later known as the
department of education and science) in June 1962. The terms of reference for
the survey were to formulate and present advice to the Nigeria Authorises on
the planning of a polytechnic college in Kaduna in the northern region of
Nigeria. These terms were later amplified to include advice on the selection of
the site, schedule of accommodation and the grouping of rooms with regard to
education, architectural and cost consideration. The site work for the building
of the institutions started in March 1966.
As a
result of the break of the north into six (6) states and the subsequent
insistence on roughly equal students representation in the proposed college
caused a much lower progress of the building that predicted.
In
April 1968, the federal military government in its decree No. 20 of 1968
formally established the Kaduna polytechnic. The official opening ceremony was
held 21st November 1968. The opening was done by British high
Commissioner from Lagos, Sir. David Hunt, KCMO’s OBE at a large gathering of
limited guest including two northern state governors. The buildings and
equipment were all gifts from the government of United Kingdom. The first
principal of the institute as Mr. F. J. Hawley and Colonel W. Martin was its
first secretary.
The
polytechnic was in the central of the northern states of Nigeria before it was
taken over the federal government on 27th August 1991 by Decree 40
of 1991.
Objectives
The
objectives of the institution have been to provide:
a)
Diverse instruction,
training and research in technology, science in technology, science commerce
and humanities.
b)
Course of in-service instrument for members
of the public service in Nigeria in general and the northern states in
particular
Kaduna
polytechnic computer of four (4) viz
i.
College of engineering
ii.
College of science and technology
iii.
College of environmental studies
iv.
College of administrative and business
studies
It
now has twenty-eight academic department offering over 120 programmes and the
post HND, postgraduates diploma at the B.E.d (technology) Higher Diploma and
certificate level. It has student population of about 19,000 and staff strength
of 3,580 as at April 2001 ending.
The
central administration of the polytechnic has various sections viz,
establishment. Academic affairs, rectory, works bursary, student affairs and
medical center.
1.8 DEFINITION OF TERMS
In
the course of this research, the following shall be used from time to time and
their meaning are as follows:
i.
Balance
Sheet: This is a statement of financial position of business organization
at a particular moment time showing its assets and liabilities
ii.
Cash
Book:
This is a book in which we record all business transaction made on cash. This
book shows the details of cash made.
iii.
Voucher
Register: This is a register which is maintained by the
accounting officer, which shows the departmental voucher number giving to
payment voucher
iv.
Capital
expenditure vote book: This is a vote book which shows the
analysis details of capital expenditure made on a particular project
v.
Notes
on the accounts: These are notes preceding the account
showing the details of how the various item totals were arrived at. This gives
the users of the account an idea of how the various figures were arrived at.