Public sector consist of organizations where control lies in the hand of the public as opposed to private owners, and whose objectives involves the provision of services where profit is not a primary objective. Comparisons between the financial performance of the public sector and that of the private sector are difficult to make because the public sector organizations multi-purpose, not dealing with single product or services, and they have different sources of finance performance in measurement in the public sector is hindered by lack of profit motive. The theory of public sector should focus on how government should source and utilize funds.
The major goal of government is how to raise enough fund to carryout its objectives because they are numerous. Government its objectives because they are numerous. Government has its duties to perform and they need sufficient fund to perform its functions as affect the economy as a whole that is why, the Nigeria government should try and see that at least more than half of its proposal every year is being achieved.
1.1 Statement Of The Problem
In public sector, the government has to live and perform its duties to the nation. As a result there must be a mass of livelihood called money. Also this money generated by government has to be spend appropriately and wisely to avoid mis-management of fund. Therefore, this research work intends to know the impact of public sector accounting on:
- Where government generates its revenue?
- How to utilize the money?
- How to keep the money?
- The effect of expenditure control on public fund?
1.2 Objectives Of The Study
The basic objective of the government in the society is to ensure the highest degree of Happiness and contentment or largest number of people in the society. With regards to the above statement, the objectives of this study are as follows:
- To find out whether the revenue accruing to the government are properly recorded.
- To observe the need for due process in executing government plans.
- To establish a proper system of accounting record in the effective management of the sector.
- To establish expenditure control in order to ensure that all expenditures are wholly, necessarily, reasonably and exclusively incurred for the purpose for which they are meant for.
1.3 Need For The Study
This study will enable the citizens to know the importance of expenditure control on public funds, and also to ensure that a sound system of accounting record are kept in various ministries of the government.
1.4 Research Question Of Hypothesis
In order to carryout this study effectively, the objectives and sources of the problems associated with the study gave rise to those research question.
- Are the revenues accruing to the government properly recorded?
- Does the observation of due process help in the execution of government plans?
- Does the exercise of expenditure control help the government to make expenses that are wholly, necessarily, reasonably and exclusively?
Hypothesis Of The Question
- Ho: The revenues accruing to the government are not properly recorded.
- Hi: The revenue accruing to the government are properly recorded.
- Ho: The exercise of expenditure control will not help the government to make expenditures that are wholly, necessarily, reasonably and exclusively.
- Hi: The exercise of expenditure control will help the government to make expenditures that are wholly, necessarily, reasonably and exclusively.
- Ho: The ministry of finance Imo State observation of due process will not help in the execution of government plans.
- Hi: The ministry of finance Imo State observation of due process will help in the execution of government plans.
1.5 Scope of the Study
The scope of the research is to cover adequately all aspect of revenue generation and expenditure control in government parastatals, but due to the vastness of the scope, the researcher restricted the scope of the study to the ministry of finance Imo State.
1.6 Assumptions of the Study
In carrying out his research work, the impact of public sector accounting on government revenue generation and expenditure control on public und, the management and staff of the ministry of finance Imo State would be enough to carry out the research work. Also that the ministry stands to represent other ministries not covered by the researcher, due to some limitations and constrains.
1.7 Limitations of the Study
In carrying out the research work, the following limitations and constrains were encountered by the researcher.
- Inadequate Information: It was not easy for the management and staff of the ministry f finance to disclose all information needed in this research, duties to current happenings and for security reasons.
- Finance: As a student who is still dependent on the parents to provide all financial needs, the money involved in carrying this research work was not enough.
- Time: The research is time consuming, as a student who has other things to do, time constraint do not invalidate this work.
1.8 Definition Of Terms
Public Sector Accounting: This is the process of recording, communicating, summarizing, Analyzing and interpreting government financial statement in aggregate and in details reflecting all transactions in the receipts, custody and disbursement of government fund.
Recording: This is the documentation of financial transactions and events affecting the various units in to appropriate books of account.
Classifying: This is the classification of revenue and predetermined expenditure into account groups according to predetermined codes, that is revenue head and sub head.
Analyzing: This is the procedure of separating transaction into relevant parts.
Summarizing: This is the gathering of data into sub-total and totals in accordance with the management specification.
Communicating: This is the communication of the out come of the operations on the financial data of the government to intended users.
Interpreting: This is the interpretation of the meaning of the financial statement on the activities of the various levels of government.
Parastatals: These are some of the administrative groups of government such as ministries authority statutory corporations and agencies whose intentions and objectives is not profit oriented.
Public Revenue: This referees to the income accruing to the government from the performance of its economic activities.
Public Expenditure: This also refers to the expenses which the government incurs for maintaining itself and the economy as a whole.
Expenditure Control: This is the procedure that is needed to regulate the use of public fund and to ensure proper authorizations of the government spending.
Fraud: A deceptive trick planned to obtain an unjust or illegal financial advantages.
Fund Management: This means efficient and effective use of organizational money or funds to achieve the objectives of which the fund was given issued.
Expenditure: This is the outflow of resources or the incurring of obligations for goods and services required to generate funds.
Fund: This is a separate fiscal and accounting entity governed by specific regulations separated from other funds and established for a specific purpose.
Account: A formal record of a transaction expressed in money and kept in a journal. It is popularly called the language off the business.