Problem and Prospect of Financial Control Tool

Introduction

1.1 Background Of The Study

Financial control as the name implies means the proper management and control of financial aspects, the efficiency effective and management of finance of the organisation. The finance control and management law 1968 is designed for control and management for the public financial and matters connected there with and it stipulates under section 33 that the accountant general shall under to the auditor general accounts showing the financial position of the state at the end of every financial year and these include:

1. Statement showing the sums estimated to be received as revenue into the consolidated revenue fund and sums actually so received in the period of account.
2. Statement of assets and liabilities.
3. A statement showing the sums estimated to be issued out of the consolidated revenue fund and the sums actually so issued in the period of accounts.

So in every organisation or public sector, there is the need for financial control.

Therefore, owerri North ministry of finance should not be an exception. Every staff of the ministry is involved to some extent in controlling of financial as well answerable to their conduct.

Almost all the workers in the civil services especially those involved in government financial operation and well acquainted with and an updated knowledge of the principles of financial controls. Financial control is linked with financial planning. This is not withstanding control parameter are outcomes of financial planning decisions.

However, systematic planning in itself requires a degree of control in terms of its process and procedures. In most cases, government constitutes largest single business entity and in many places, the core of the economy.

Its pattern of expenditure or manner of resources allocation determines the extent to which accountability for economy, efficiency and effectiveness can be achieved.

1.2 Historical Background Of The Case Study

Owerri North is a Local Government Area of Imo State, Nigeria. Its headquarters are in the town of Orie Uratta. It has an area of 198 km² and a population of 175,395 at the 2006 census. The postal code of the area is 460 Owerri North is a Local Government Area of Imo State, Nigeria. Its headquarters are in the town of Orie Uratta. It has an area of 198 square km and a population of 175,395 at the 2006 census. The postal code of the area is 460.

Owerri North is semi-urban government area. It encircles Owerri Municipal like a peninsular. Six major roads that lead out of the municipal cuts across Owerri North Communities. In the North, Orlu road leads to Amakaohia and Akwakuma communities. In the East, Okigwe road leads to Orji Community. In the West, MCC road off Wetheral to Obibi Uratta and Ihitaoha communities. In the South, Mbaise road leads to Egbu and Emekuku communities, while Aba road leads to Nazi, Agbala and Ulakwo communities.

Natural and Agricultural Resources

• Palm Products/Palm Oil, Nuts
• Maize
• Cassava
• Crude Oil

Businesses and Investments

• Palm Oil Null
• Food Processing
• Fruit Processing
• Refinery
• Feed Null

1.2 Statement Of The Problem

There is a general notion that government finance is fraught with numerous problems ranging from frivolous expenditure, lack of fraught to embezzlement and mismanagement of public funds. This situation calls for adequate financial control measure.

Some of the identified problems and prospect of financial control in the public sector organization in owerri North includes:

1. Lack of effective internal control and audit system.
2. Indifference to revenue generation.
3. Failure to conform to financial instructions and regulations.
4. Late auditing of ministerial accounts
5. Late finalization and publication of account and poor keeping of internal accounting records.
6. Personal problems involving lack of knowledge and expertise among government accountants occupying higher levels of responsibility
7. Excess authorization of expenditure.

1.3 Objectives Of The Study

The main objectives of this research work include the following:

1. To know the extent of financial control and prospect of financial control in public sector in owerri North.
2. To highlight the need for financial control and public sector organization.
3. To ascertain the prospects and problems occurred in the system.
4. To review what financial control and public sector problem and prospect.

1.4 Significance Of The Study

We gain nothing in saying that owerri North as an organized public sector has enormous need for a sound and good accounting system. To say the least, government occupies a pivotal position on any economy. Award that the pattern of expenditure determines the extent to which allocation can be made to a ministry, it is therefore of practical importance that an effective control system and machinery for accountability are installed. There is also the need for every public sector organization to establish and maintain an effective accounting information system, which could be timely, reliable and compatible with decision making and management control.

The accounting information system should be understandable and disclose government financial condition as well as results of its operations. The question now and: is there a system of financial control in owerri North Local Government Imo State Ministry of finance? If no; why? Yes the effective is the financial control system already in operation. What is the possibility of putting one in place?

1.5 Limitation Of The Study

The scope of study is limited to the Owerri North Imo state ministry of finance. The study will look into problem and prospect of financial control and public sector organization and final ways of achieving it where none exists. The word will attempt to evaluate the effectiveness and efficiency of the internal control system on the ministry with reference to the Imo State financial instruction volume 1. The investigation will highlight the impact of the state audit department and public accounts counted on the process.