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PROPER ACCOUNTING AND BUDGET IMPLEMENTATION IN NIGERIA WITH PARTICULAR REFERENCE TO ENUGU STATE

(Accounting)

PROPER ACCOUNTING AND BUDGET IMPLEMENTATION IN NIGERIA WITH PARTICULAR REFERENCE TO ENUGU STATE

ABSTRACT

As regards the rapid increase in the socio economic problems of this nation, the wastage of millions of naira at project sites and the collapse of our economic sectors especially the financial houses, the writer decided to survey the avenues in which these wasted funds could be curtailed and our economic problems ameliorated.

Based on these assumption most of these problems arose as a result of poor budgetary and economic policy implementation. On this note, the writer introduced the study in chapter one of this project with a clear statement of problems inherent in poor budgetary plans and implementation.

In chapter two which is on review of related literature, there was effort made in definition of budget. All definitions have one thing in common that budget is an estimate and refers to future.

Chapter three states the design and methodology which include the sources of data, interview questions samples used and method of investigation.

Chapter four is the data analysis collected, the questions and questionnaire are analysed with number, percentage and degree of respondents affirmed to a particular answer.

The chapter five and last chapter contains findings, conclusion and recommendations.

In conclusion, it is hoped that our planners and policy implementers should learn a lot from the write up and change the phase of our economy in Enugu state to a right and benefiting system.

TABLE OF CONTENTS

CHAPTER ONE

1.0         INTRODUCTION                                                     

1.1         BACKGROUND OF THE STUDY            

1.2         STATEMENT OF PROBLEMS     

1.3         OBJECTIVES OF THE STUDY    

1.4         SIGNIFICANCE OF THE STUDY            

1.5         HYPOTHESIS                                             

1.6         SCOPE AND LIMITATION OF THE STUDY      

1.7         DEFINITION OF TERMS               

CHAPTER TWO     

2.0         REVIEW OF RELATED LITERATURE               

2.1         MEANING OF GOVERNMENT BUDGET

2.2         OBJECTIVE OF BUDGET                         

2.3         CONTENTS OF BUDGET DOCUMENT

2.4         BUDGETARY PROCEDURES                

2.5         REPETITIVE BUDGETING                       

2.6         EFFECTS OF INFLATION ON BUDGET

CHAPTER THREE

3.0         RESEARCH DESIGN AND METHODOLOGY

3.1         SOURCES OF DATA                                 

3.2         INTERVIEW QUESTIONS                        

3.3         SAMPLE USED                                          

3.4         METHODS OF INVESTIGATION             

CHAPTER FOUR

4.0         PRESENTATION ANALYSIS AND INTERPRETATION OF DATA               

4.1         TESTING OF HYPOTHESIS                     

CHAPTER FIVE

5.0         FINDINGS                                                                            

5.1         CONCLUSIONS                             

5.2         RECOMMENDATIONS                 

BIBLIOGRAPHY                                                     

QUESTIONNAIRE                                      

CHAPTER ONE

1.0         INTRODUCTION

Proper accounting: The word proper means strict decorous of decent. It could be actual in conformity to the expected rule. Then accounting entails responsibility, answerable for or held in charge. Therefore merging these two words proper accounting we can coin them to be decorous or decent responsibility.

In this case, the question may be is there any proper accountability in our private and public sectors from the very beginning of our independence till this very moment. These few words proper accounting have been very vital in the restructuring of any economic system of any nation. The cause of every coup detats in Nigeria and the world at large is nothing but mainly for the sales of proper accountability. General Buhari and general idiagbon aggressive came into power for the quest of proper accountability. And general Abacha crowned the whole thing up by his wide speed of improper accountability.

The doom in our banking sector and other financial institutions are matters of attention. Is it the failed contracts, failed parastatals and even the external and internal crisis in our business sectors? All these and many other embezzlement problems that rake the counting have made the writer to probe into some of the matters and look for possible solutions.

1.1       BACKGROUND OF THE STUDY

For the past ages, man as a rational and devine animal, has been struggling with procurement of a reasonable standard of living the ways of managing his perpetual inadequate human and material resources to give him its expected maximum utility. The eventful development of a well organized society gave birth to the institution of government.

During the 15th century, when mercantilism was the order of the day, government had the right to interfere with the economic process to protect the interest of the nation as then seen in the view point of international trade mainly.

During the 18th century, Adams Smith and other great authors came out with the system of lasses faire”. The system suited its own period but the general depression of the 20th century showed  that it was not after all an economic panacea ( i.e. economic universal cure) people have to look for other economic solution. At this point, the economic scientists have to enter into the field and researches.

Thus, it was during this time that Keynes out with his own postation. To be precise, during the 1930’s Keynesian economics development and emphased the cyclical movement of economic and the need to tamper such movement by artificially manipulating the through and depressions in the cycle in order to facilitate a better economic order.

In fact, it was policy implication of Keynesian economies that have contributed to the trends which led to economic planning and budgeting as a tool in political administration.

Presently Nigeria as a nation is moving towards the 50th age of independence. Within the previous 39 years, so many budget have been pronounced and many of them are policies. All these budgets and polices were made to enhance the Nigerian standard of living which is presently nothing to talk about. We had fully experience the poor living standard of the citizens from the date of the nations independence till the present as government promisingly budgets.

1.2         STATEMENT OF PROBLEMS

Since independence, so many budgets have been made ranging from the federal done to state and local government areas. These budgets when made follow a technique and formulated method of implementations. Another problem is to know if the implementations are the proper ways to follow.

The means by which funds for the realization of this budgets are sourced, the source of this funds and the rendering returns on stewardship rotating to the management of funds or other assets to the units (government) and the use (application) of these funds sourced for into the budgeted expenditures takes us to the topic called “proper accounting and budget implementation in Nigeria with particular reference to Enugu state”.

We must take it that the most stressing visible aspect of administrative in capacities in poor (under developed) countries is the difficulty in accountability and implementing budgeting and development plans. Many at times projects are badly conceived, favourably given to wrong hands and completion are under estimated and the result will be a loss. Thus incompletion and abandonment. This will have no doubt created a great waste, loss, compassion and abandonment in the economic sector.

Also, the frustration in trying to identify suitable projects and carry them out successfully to a final stage of completion are seen as a major stumbling block to plan implementation and development in Enugu state.

Other related problems of the study are these caused by improper execution of budgeting plans and poor account of government funds (both current and reserved revenue). This is based on the fact that all plans are always militated by the problem of implementation.

Short instance, the Balloon project designed to give Nigeria a 21st communication links even with rural areas has been agonizing projects. On February 12th 1976, this project was signed at the estimated value of N89, 018. It has stayed up to many years without completion. Thus the improper accountability and inability to implement the budgetary plans has been our great terror in terms of project implementation. The ocean terminal gulped N153million of our budgetary plans and policies has scattered the economy of this nation to the number of projects which are not completed are too numerous. The un implementation of the annual budgetary plans leads to incompletion of many projects. The ending result is that it holds to wheels of our economy in a standstill position.

Not only were the projects abandoned directly, the case of “multiplier effect” which is the director of the economy is also annually affected. If projects planned are not implemented then, there could be no money to be generated into the economy. As a result, the whole economy will be static. The multiplier effect which is affected is a system through revenues is generated into the economy through awards of contract and the building of the projects awarded. We should know that this projects if implemented, affected both house hold, firms and public sector. For instance, if a contract of N1,000.000 is awarded, then this amount can generate N5,000.000 into the economy before it got completed. Therefore, all these projects started and abandoned had economically crucified this very country of ours in the area of economy and social. A lost of wealth wasted and abandoned human and material resources were and still being neglected due to improper accounting and low budgeting implementation of the planned budget.

Other outstanding problem worthy of probing into is to inconsistencies of good financial management in health sector. The writer gathered that the physical cash budgeted and allowed to the health sector is not judiciously used. It is a heavy disappointment that the money allocated for the purchase of drugs , medical equipments and the payment of workers salaries are many at times swindled into private accounts, by the top management if the hospital units to yield some interests which they could use for their own selfish interests.

The same tune of music improper accountability and un-implementation of budget is creating a crisis in he educational system of Nigeria, ranging from the primary education, secondary and up to our tertiary institutions, we have problems of improper accountability. The headmaster and mistresses are no more upholding the trust borrowed on them nor the principals in our secondary schools.

In our communication system, Nigeria telecommunication system (NITEL), the issue of advance fee frauds coded 419 in our constitution has created a terror that calls for attention.

Another problems that are shaking the economy is the revenue collection problems the revenue collection equally did the nation a great economic harm since not all the money collected were accounted for. Some of these tax-men manipulated assessment to enrich themselves at the expense of government and people.

“Most of them acquired building and other property the value of which exceed their normal legitimate salaries. This, as we can see also frictions the economic wheels of our nation.

The use of the revenue collected, in the budget implementation also poses an economic problems in our country. When the revenue collected are not use for the people for their expectation, they could evert and avoid the pay of tax. The youths, when neglected feel cheated and report to robbery and vandalization of the government property.

The vandalization of electric property in Affa-Udi Local Government Area-Enugu State calls for this attention. Nobody could tell why and who did it.

Another problem is the wrong implementation of our budgetary plans. The oil pipe line from Port-Harcourt to worth of the country had taken huge sum of money. The question is “the wasting of our resources in the constitution of oil-pipe lines which could be refined in area of drilling unrational.

The Ogoni public disturbance as we know was generated by this very issue of oil problem. What is the cause of the Ogoni Chief disputes and the effective hanging of Chief Keno Sarowiwa has to teach?

In summation therefore, the nation has both economic social and political cancer. It cannot heal until the issue of proper accountability and budgetary implementation is well addressed.

1.3         OBJECTIVE OF THE STUDY

Before the writer chose this topic proper accounting and budgetary implementation, she, has some aims and objectives clearly in mind. The objectives are itemised as follows:

a.            Scrutinization:- To scrutinise some of the budget made in Nigeria with reference to Enugu State and find out how the budgetary plans implemented affects the state and the nation as a whole. And if the effect is bad, what and how could the errors amended. All are some of the aims and objectives facing the writer.

b.            Searching Related Literature: The writer has in mid of searching related literature especially those of other countries (developing countries) and find out ways through which budgetary implementation can be best affected.

c.            Proper Accountability: The improper accountability which ahs eaten the economic heart of this our great nation is also a case of our study. The distressing of our banking systems, the great frauds in different public sector and he failures of many contracts calls for a serious research.

d.            Policies and Programmes: The writer has decided to look for a management policy and system that can organise and boost the economy of this nation.

1.4         THE IMPORTANCE OF THE STUDY

The nation is presently suffering from serious economic crisis. Our political economy is more than complex and confusing, people only exist and not living. The days are difficult. The populace are scared and cry for help. Bad economy has dried the fresh of the people. Let us look a some of the benefits that could be derived from the study in relation to the solution to above problems.

a.            It will determine whether budgetary plans, if well and effectively implemented, could help in the restructuring of our economy.

b.            It evaluates the role played by every top management official in budgetary system to know if they are adhere to the set up plans and standard.

c.            The study will determine the roles of budget as a tool for efficient and effective management of resources.

d.            The study will help researchers on budgetary plans implementation and effectively act as a touch-light to government in their management system.

e.            It will evaluate the accounting sector (some) for the appraisal of accountability and suggest some management systems and policies that could help our economic managers to boost our economy and remain accountable.

1.5         HYPOTHESIS

Hypotheses serve as guides for the researcher in the entire process of research endeavour and they trim the main line of his study. They assumed answer to the principal questions of the study, the correctness of which she uses in the course of her study. Hypothesis is a preposition that have been put forward (defined) by Philip (1979 p.56) tentatively for the purpose of developing evidence for or against the proposition in question. Hypothesis helps in guiding the thinking of the researcher in her research for solution to her problems.

Hypotheses are neither proved nor disproved accepted or rejected that is a matter for future. In essence, hypotheses interpose between a statement of the problem and solution of the problem.

Enlisted below are the importance of hypothesis to the course of this study:

a.            That bud  getary plans are well implemented in Nigeria especially Enugu State.

b.            That all funds collected for government are not well accounted for.

c.            That proper accountability will be enforced if the essential management policies a

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    Project Details

    Department Accounting
    Project ID ACC0340
    Price N3000 ($14)
    CHAPTERS 5 Chapters
    No of Pages 104 Pages
    Methodology Chi Square
    Reference YES
    Format Microsoft Word