FINANCIAL CONTROL AND ACCOUNTABILITY IN THE

PUBLIC SECTOR.

( A CASE STUDY OF ABIA STATE MINISTRY OF FINANCE)

ABSTRACT

The primary concern here is to identify to what extent good

accounting system in the Public Sector can ensure Financial

Control and Accountability in the Public sector Financial or is a

critical factor in management and therefore must be prudently

handled and accounted for if the public sector is to realize its

goals and objectives. It is on this account that this research

work has been undertaken to try and unravel the reasons why

government ministries and department most times finds it

difficult to control and properly account for finances available to

them. Subsequently, a number of reasons have been deduced

as being responsible for poor financial control and

accountability. They include; Poor implementation of financial

regulations, lack of effective internal control system,

inadequate reward system and sharp practices by public

servants. The Abia State Ministry of Finance was used as case

study, and information was sourced through sampled

population in the Ministry by means of questionnaire. Data was

collected, analyzed and interpreted using tables and chi-

square. Findings showed that unless financial regulations are

strictly followed and defaulters punished accordingly, financial

control and accountably may still elude the public sector.

TABLE OF CONTENTS

Chapter One

1.0 Introduction

1.1 Background of the study

1.2 Statement of Research problems

1.3 Objectives of the study

1.4 Research question

1.5 Research Hypothesis

1.6 Scope of the study

1.7 Limitation of the study

1.8 Significance of the study

1.9 Definition of Terms

1.10 Theoretical Framework.

Chapter two

2.0 Introduction
2.1 Financial Regulation in the Public Sectors

2.2 Methods of financial control in the Public Sector

2.3 key officers in Government Accounting and

their Responsibility

2.4 Objectives of financial control and accountability

2.5 problems of financial control and Accountability in

the Public Sector.

2.6 Conclusion

Chapter three

3.0 Research Design and Methodology

3.1 Study Population

3.2 Sampling and sample techniques

3.3 Research design

3.4 Sources of Data

3.5 Research instrument

3.6 Validity and Reliability

3.7 Method of data analysis

3.8 Method of Data collection.

Chapter four

4.1 Data presentation and Analysis

4.2 Background of sample elements

4.3 Distribution of sample element

4.4 Finding and Analysis of questionnaire

4.5 Testing of Hypothesis.

Chapter five

Introduction

Discussion of Findings

5.1 Summary of Findings

5.2 Conclusions

5.3 Recommendations.

References

Appendices

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Government activities nowadays have largely increase. The

increase in government functions and activities come as a

result of the complex nature of the modern society. For

government to live up to its responsibility, care must be taken

in the management of scare resources available to achieve

these laudable goals.

 Other than maintenance of law and orders, peace and

stability, government is also involved in providing social

services such as provision of good roads, transport, portable

drinking water, power and energy etc. All these services need

money (finance). It is also the duty of government to generate

revenue for the achievement of its set goals and objectives-

creating social welfare and harmony in the society.

Finance is a critical resource in the chain of production

and therefore must be prudently used to achieve results. It is

on this premise that financial control and accountability in

public sector becomes imperative. This research work attempts

to discover the reason(s) behind poor performance by

government in relation to financial control and accountability in

the public sector.

Government agencies or the public sector is very

heterogeneous in nature and so the nature of financial control

is completely different from that of the private sectors in so

many ways. At one end we have government owned

companies that must be operated like private business, in the

middle, our parastatal, that are somewhat amorphous, often

having conflicting goals to achieve and then the government

machinery itself which is a services outfit, (Azubuike and

Njemanze 2006, 15)

Consequently upon the heterogeneous nature of the public

sector, the financial regulations guiding the activities or

financial transaction in public sector is contained in the law

setting it up. Some of such financial statutory regulations are:

a. Finance (Control an Management) Act 1958

b. The Nigerian Constitution

c. Financial Memorandum

d. Financial Regulation

e. Gazette

f. Treasury and circular Letter

g. Accounting manual.

These regulatory framework of public sector accounting

mentioned above are applied in varied ways depending on the

mode of operation of the government agencies or ministry.

Amara (2009) sums up the benefit of financial control and

accountability in the public sector as follows:

- It justifies the estimates of public sector.

- It ensures and superintends the use of appropriated funds

 - It is device for timing the rate of expenditure and

auditing of accounts

In the same vein, Johnson (1999) also list a number of

importance associated with financial control and accountability

to include the following.

1. That it provides the broad and specific accounting system

adopted in recording financial transactions.

2. Ensure that transactions remain within the framework of

law and further reduces the risk of fraud

3. It provides the basis for financial management and

control

The Abia state Ministry of finance is one of the parent

ministries in the Abia State Government. The state governor is

the chief accounting officer of the state. He is the executive

head of government and head of the executive council of the

executive arm of government.

As the minister of finance is the chief accounting officer in

the federal ministry, the commissioner is also the chief

accounting officer in Abia State finance Ministry outside the

permanent secretary. The ministry has other departments and

units, some of which include Auditing department, board of

internal revenue, statistics and record, accounts unit, budget

and logistics among others.

The ministry of finance is in charge of rendering

accounts and controlling all financial transactions. The ministry

through the accountant-general of the state is saddled with

responsibility of general supervision of all the accounts of the

different ministries and departments within the state, and

prepares the annual financial statement of account of the state

as required by the ministry.

The finance Ministry is vested with the statutory

responsibility of auditing the state accounts as provided by the

financial regulations. The Auditor –general is empowered by

law to audit the account of all accounting officers and all

persons entrusted with the collection, custody, receipts, issues

or payment of public funds, (Adams 2001).

Ministry of finance in the Abia State government is

populated with one hundred employees who make up

workforce of the ministry. These are the people who are

responsible for ensuring compliance with the laid down

procedure for financial transactions as contained in the financial

regulations and legal books

1.2 STATEMENT OF RESEARCH PROBLEM

Nigerian Public Sector is plagued with a number of problems.

These problems hinder it from discharging its duties and

responsibilities effectively and efficiently for the betterment of

the people. One of such problem is that of financial control and

accountability.

Financial control and accountability becomes a problem

when there is no strict measure to ensure compliance with the

laid down regulations guiding financial transaction and

accountability in public sector. In other words, the lack of

justification of estimate, superintending the use of appropriated

funds and timing the rate of expenditure and auditing of

account constitute the problems which triggers this

investigation

In addition to the above mentioned problems, other

problematic areas in the public sector finance includes:

 Fraudulent practices by public officer and agencies.

 Maintaining and operating proper accounting system as

required by law.

 Inadequate internal system in each unit.

  Problem of poor coordination

1.3 OBJECTIVES OF THE STUDY

Within the ambit of this research topic, “Financial control

and accountability in Public Sector”, The purpose of study is not

far fetched. The purposes of the study can be summarized in

these ways:

(a). To determine ways of checking fraud.

(b). To ascertain to what extent compliance with financial

regulations can help government in achieving set goals and

objectives.

(c) To establish standard and appropriate financial system for

recording and extracting financial information.

1.4 SIGNIFICANCE OF THE STUDY

This research work will be of immense benefit to those in the

top management cadre in the government ministries and

parastatals and to the general public. For top management, the

information gained from this work will help them streamline

their financial regulation and assist in fraud detection.

Secondly, young researchers will also find the result of this,

work a very useful resources material for work. This is so

because the information have given them the basic knowledge

needed to pursue their work to a logical conclusion. On a

more general note, the research will also add to the existing

body of knowledge in the subject matter.

Conclusively, this work will as a matter of fact help public

organizations know whether or not they have appropriate

control mechanism in terms of recourse management and fraud

detection.

1.5 RESEARCH HYPOTHESES

Research hypothesis are tentative statement of propositions

made about the research in a testable or verifiable manner.

The term “verifiable” or “testable” as used here mean that

hypothesis can be accepted or rejected.

Therefore, the following research hypotheses are formulated

based on the research problems stated above:

Ho1: Fraudulent practices by public servants is not a

hindrance to achievement of public sector goals and

objectives.
H1: Fraudulent practices by public servants is a hindrance to

achievement of public sector goals and objectives.

HYPOTHESIS II

Ho: Maintaining and operating proper accounting system as

required by law is not a means of ensuring financial control

and accountability.

H1: Maintain and operating proper accounting system as

required by law is a means of ensuring financial control

and accountability.

HYPOTHESIS III

Ho: Internal control system does not contribute to

financial control and management.

H1 : Internal control system contributes in financial control

and management.

1.6 THEORETICAL FRAMEWORK

The public sector accounting concepts are numerous. For this

research work, the most appropriate concept or theory on

which this research can be analyze is the matching concept of

government accounting.

Matching theory of government accounting holds that for

any accounting period, the earned revenue and all the incurred

cost that generate that revenue must be matched and

reported for the period (Oshisam 1992). This concept only

applies to economic unit in the public sector, which seeks the

determination of profit or adopts the accrued basis of

accounting (Adams 2001)

In other words, the matching concept of government

accounting means that cost and expenses should be tied to the

revenue and its associated costs and expense are accounted

for in the same accounting period. This concept succinctly

explains financial accountability in the public sector.

1.7 SCOPE OF THE STUDY

The research work is aimed at examining the effect of financial

control and accountability in the public sector. On this account,

a case study of Abia State Ministry of Finance is chosen.

Therefore is delimited to Abia State Ministry of Finance alone.

1.8 LIMITATIONS OF THE STUDY

In studies such as this, a number of seen and unforeseen

circumstances militate against the researcher. Prominent

amongst the problems encountered by the research are the

followings:

1. Bureaucratic Bottlenecks: Here, members of the Abia

State Ministry of Finance had to take orders or

permission from their superior officer before releasing

information pertaining the study.

2. Education: the level of education of most of junior

workers in the ministry posed another problem. Some did

not understand the importance and urgency needed to

execute the research. Again as a result of their low level

of education, some of the questionnaire was invalidated.

3. Funds: As a student, the researcher funds it difficult

raising funds for the execution of the project work.

4. Time: Time constitute a major constraint in the course of

carrying out the work. The time assign this research work
 to be completed was not sufficient. For this reasons, it

was imperative for the researcher to skip some details

1.9 RESEARCH QUESTIONS

i. To what extent strict compliance with financial

regulations can help government ministries in achieving

goals and objectives.

ii. How does financial control check fraud in government

circles?

iii. How can financial control and accountability aid in

establishing appropriate system for recording and

extracting financial information.

iv. To what extent does accountability ensure judicious use

of public funds?

1.10 OPERATIONAL DEFINITION OF TERMS

According to Aguwa (2005), the primary goal of operational

definition is to remove ambiguity wherever it is likely to occur

in the research work. Therefore where there is no likelihood of

ambiguity, it becomes unnecessary to define terms. The

technical or ambiguous terms used in this work are the only

ones being defined.

MANAGEMENT: For the purpose of this research,

management means or connotes ‘the condition of being

prudent in the use of scarce resources.

ACCOUNTABILITY: Accountability in this research work is

considered as the quality of being answerable to one’s action or

conduct.

CONTROL: Control means ensuring that the functions of the

different unit and agents in the public sector do not work at

cross purposes but in rhythm to ensure achievement of

corporate goals.

INTERNAL CONTROL: Auditing guideline defines internal

control as “the whole system of controls, financial and

otherwise established by management in order to carry out

government business”

GOVERNMENT FINANCES: Government finance refers to the

wide range of activities undertaken by government in financial

and economic matters (The new Encyclopedia Britannica 1988).

ETHICS: Ethics simply put refers to what is ‘right’, just and

what ‘just’ in the decisions and actions that affects other

people as a financial or accounting officer or manager in the

public sector.
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 INTRODUCTION:

Financial control and accountability in the public sectors is

primarily concerned with the fiscal administration and

management of financial resources of government. It is based

on this notion that Olowe (2006) defines financial management

as “that part of total management which is concerned with

financial affairs of an organization (government) and the

translation of actions both past and proposed with meaningful

and relevant information for use in the management process’.

Narrowly speaking, financial control and accountability is

an aspect of fiscal administration which is concerned with the

policy, planning and control of financial resources and its

allocation. By focusing on financial management rather than

fiscal administration, we are able to look at the problems and

issues associated with the acquisition, custody, allocation,

utilization of funds and accountability of the finances of the

public sector.
 Consequent upon the above explanation, it is therefore

clear what financial control and accountability is all about. The

next question is-what then is financial accountability.

On a general note, accountability is defined in several

ways as there are authorities trying shed light on the subject

matter. Authors define the word according to their inclinations

or perspective. Accountability has been defined as the quality

of being answerable for one’s actions and conduct. Or as the

state or quality of being liable to be required by a specific

person or group of persons to report on and justify actions in

relation to specified matters (Amara 2009:180)

By implication, the definitions above suggest that public

officers are liable to render account and report of their

stewardship to the people whom they owe responsibility but

unfortunately, it is always so in Nigeria.

Amara (2009) in his book “principles and Practice of

Public Enterprise in Nigeria defines financial accountability as

“involving the establishment of a pattern of control over all

receipts and expenditure of public funds”. Shellukindo in

Amara (2009) further defines financial accountability as “the

justification of estimates, the superintendence of use of

appropriated funds, the devices for timing the rate of

expenditures and auditing of account. In addition to the above

definitions and explanation, financial accountability also

involves procedural rules which are laid down for compliance by

public officers and agencies. These are achieved through the

process of fund control, fund allotment, financial reporting and

auditing.

2.2 FINANCIAL REGULATIONS IN THE PUBLIC SECTOR

ACCOUNTING

Financial regulation are internal and external regulations that

are intended to provide a frame work of financial control and

place prime responsibility for elementary control and anti-

fraud duties on executive departments while recognizing the

role of internal audit. The minister who is representing the

federal government, is in charge of financial matters in

accordance with, and under the authority of the finance Act,

1984 as amended.

Federal regulations seek to outline the system of financial

administration to be operated at departmental level,without

necessarily setting out in details arrangement and systems that

might be incorporated in separate codes or manuals of financial

procedures and instructions.

Financial regulations are guided by statutory documents

such as:

1. THE NIGERIAN CONSTITUTION: The Nigeria constitution is

the supreme law for regulating the finances of

government. The amended 1999 constitution how the

following financial focuses

(a) Establishment and operation of the consolidated

revenue fund: section 80 (1) provides that all

revenue or other money raised or received by the

federation (not being revenues or other money

payable under this constitution or any other public

fund of the federation established for a specific

purpose) shall be paid into and form one

consolidated revenue fund of the federation

(b) Establishment and operation of the contingency

fund: under section 83(1) the national Assembly may

make provision for the establishment of a

contingencies fund for the federation and authorizing

the president if satisfied that there has arisen an

 urgent and unforeseen need for expenditure for

which no, other provision exist to make advances

from the fund to meet the needs.

(c) Establishment and operation of the federation

account: section 162(1) states that the federation

shall maintain a special account called the

“federation account” into which shall be paid all

revenue collected by government of the federation.

2. ACCOUNTING MANNUAL: This is detailed accounting codes

or instruction in agreement with the general provision of

the financial regulation but dealing with peculiarities of a

ministry or unit. They state departmental procedure of

treating transaction, define individual responsibilities and

ensure continuity of the system in the event of frequency

staff changes. Accounting manual and financial regulations

are jointly called or refer to as “written rules”.

3. FINANCIAL MEMORADA: The financial memoranda are the

local government version of financial regulation.

4. TREASURY AND CIRCULAR LETTERS: It is an instrument

issued to amend the financial regulation or to introduce

 new guideline used in directing daily operation of

government units (Njemanze 2004, 19).

5. GAZETTE: The gazette is the official bulletin of

government containing government policy statement that

may guide financial transaction.

6. FINANACE (CONTROL AND MANAGEMENT) ACT 1958 This

act came into operation on the 13th day of July 1958 is

considered as the foundation or springboard for all laws

regulating the finances of government. The act is in six

parts containing the following:

PART 1: A cover issue relating to financial affairs of

federal Government and empowers the minister of finance

in this regard and to ensure full account is made to the

national Assembly.

PART 2: Emphasizes on the establishment of the

consolidated revenue fund (CRF) of the management to

be according to the provision of the constitution.

PART 3: Deals with investment valuation principles of

government investments, authorized securities etc.

 PART 4: Deals with budget preparation by the minister of

finance presentation to the president for approval, its

authorization by legislative arm of government.

PART 5: Focuses on other public fund (other than

consolidation revenue fund) deemed to have been

established with effect from 1st of April 1958. Such funds

include contingency fund, capital development fund etc

PART 6: Legislates on annual accounts of all funds.

7 THE AUDIT OF 19856: This act came into operation on the 1st

April 1956, deals with the appointment, duties, tenure, and

termination etc of the Auditor-General of the Federation.

2.3 METHODS OF FINANCIAL CONTROL AND

ACCOUNTABILITY IN PUBLIC SECTOR:

Financial control and accountability in the public sector is

of two categories viz; internal and external control. Internal

control refers to those cheeks and balances established by

either the financial regulations or prescribe by the ministry,

department or unit of government. On the other hand, External

control measures relate to control machineries used on

government ministries according to acts of parliament. Such

parliamentary legislation include the constitution, finance ACT,

1958, The Audit Act of 1956, The Financial Year Act 1980,

Treasury and Circular letter and Gazette.

INTERNAL CONTROL:

Financial control and accountability in the public sector is

collective responsibility of all accounting officers and persons

entrusted with the collection, custody, receipt, issue or

payment of public funds. The most important of the control is

the one established by the financial regulations.

EXTERNAL CONTROL

As noted earlier, external control aspect in public sector

accounting relates to efforts of government to instill discipline

in the financial operations of government. Tools employed to

ensure strict compliance with laid down rules include budget

implementation, external auditing, management auditing,

issuance of guideline and regulations (Van Home 1983).

2.4 KEY OFFICERS IN GOVERNMENT ACCOUNTING AND

THEIR RESPONSIBILITY:

1. Accountant General of the federation: The AGF is the

chief accounting officer of the receipts and payments of the

federal government saddled with the responsibility of general

supervision of the account of all the ministries and departments

within the federation and prepares the annual financial

statement of account of the nation as required by the minister

of finance.

2. Auditor - General of the federation: He is the officer

recognized by law to engage in auditing accounts of all

accounting officers and all persons entrusted with the

collection, custody, receipts, issues or payment of public funds.

He is also expected to write a report at the end of audit.

3. Accounting Officer: The accounting officer is the one

charged with the responsibility of day-to-day financial affairs of

the ministry or extra-ministerial department.

4. Sub-Accounting Officer: This is an officer with the

receipts, custody and disbursement of public money. He is

expected to maintain one of the recognized cash books,

together with such other books that may be required by the

accountant-general.

5. Revenue collector: He is junior accountant officer below

the sub-accounting officer. He is also in charge of receipts and

some other particular money. Revenue collector also keeps or

maintain a cash book.

6. Imprest Holder: Impress holder is directly in-charge of

public money whose voucher cannot be immediately presented

to the sub-accounting officer. He keeps an impress cash book.

7. Officer controlling Expenditure: This is an officer

controlling a sub-head as delegated to him by an accounting

officer

8. Federal pay Officer: This is an officer who is in charge of

a federal pay office in the state. He performs the same

function as the sub-accounting officer. However, whereas the

sub-accounting officer is at the headquarters of each ministry,

the federal pay officer is responsible for all financial

transactions between the federal government and state

government, federal government and local government as well

as all branches of the federal government in each state of the

federation.

2.5 OBJECTIVES OF FINANCIAL CONTROL AND

ACCOUNTABILITY
The whole essence of financial control in public organizations

and even private enterprise is to ensure proper use of financial

resources, instill discipline and control waste of scarce

resources available. Infact, financial control and management

is the heart of management. It involves the identification of the

financial needs of the ministries and extra-ministerial

department and units, the development of strategies to accrue

them, allocating them such that they carter maximum benefit

to the public, ensuring the most judicious and frugal use and

insisting on adequate recording of the transactions arising from

such usage and reinforcing accountabilities for those put in

position of the finances (Onoja, 1989).

In addition to the above stated objective of financial

management, other objectives include the following:

a. To broadly specify the accounting system to be adopted in

recording financial transaction and extracting financial

statement.

b. Minimize fraudulent practices

c. Provide the basis for financial management and control.

d. Ensure that financial operations remain within the law.

e. To empower the internal audit department in the conduct of

its function and ensure that independence is maintained.

Financial accountability on the other hand is primarily

concerned with the establishment of standard pattern of control

over receipt and expenditure of public funds. It also involves

the justification of estimates, the superintendence of the use of

appropriated funds, the methods for timing the rate of

expenditure and auditing of accounts (Mintzberg 1973:154). T

C. Amara(2009) sums up the benefits of accountability

whether it is political, legislative, financial, judicial or

institutional accountability to include the follows:

a. Protection of citizens against administrative rascality

b. Judicious use of public funds by public servant and

c. Portray public servant as responsible people before the eye

of citizens.

2.6 HINDRANCE TO FINANCIAL CONTROL AND

ACCOUNTABILITY IN PUBLIC SECTOR

The public sector is not devoid of challenges and problems.

Some of these are actually cause by government while others

are caused by the lack of discipline from the workforce. The

 masses too contribute immensely to the many problems

plaguing the public sector, in Nigeria. The following form the

major reason why the public sector under performs in term of

finance control and accountability

1. CONFLICT:

Modern day civil service is made up of two major categories of

person-bureaucrats and the technocrats, respectively. The

bureaucrats are those public servants working in governments

ministries and extra-ministerial department while technocrats

are experts employed by government to assist in special

areas and then offer advice to government agencies and

department on some pressing issues.

The distinction or classification or differentiation existing

between the two groups is responsible for the conflicting

situation in the public sector. This conflict has a detrimental

effect on the way work is done in the public sector. Ayo in

Amara (2009) confirms that there exist acrimonious and

frictional relationship amongst these two people. The Public

Service Revenue Committee Report of 1974 further confirms

that ‘the relationship is that acrimony in that the professional

develop cyclical and lukewarm attitude to work and the

administrators plods wearily on without the benefit of sound

advice from the professionals expertise. Until the unholy

marriage of professionals and generalist is resolved or

dissolved, it remains a problem in the public sector.

2. ETHICAL PROBLEMS IN THE PUBLIC SECTOR: Ethics in lay

man’s language connotes acceptable and standard ways of

doing things in any particular setting or organization. It is what

is right, just and proper, The above explanation conform with

Wamauwa (1993), view that abandonment of ethics

(accountability) creates the fertile ground and climate in which

unethical behaviour thrives.

Public servant, while discharging their duties, shall be

non-partisan, loyal, honest, neutral, fair and just among

others. On this note, public servant must learn to disregard

whatever his personal opinion or attitude may be while doing

government business. In Nigeria, this is very difficult.

Consequently, government puts a number of rules and

regulations in a single book-civil service handbooks. The code

of ethics embodied in this book is to guide the civil servant on

what is wrong and right in the civil or public sector.

2.7 CONCLUSIONS:

Financial control and accountability in the public sector is very

central to the management of resources in the public sector.

The need for effective and efficient financial management

become more compounded and profound as organizations and

socio-economic activities of modern government become more

complex. It is on this note therefore that the civilian

administration of 1960 tried the Public Accounts Committees as

an instrument for ensuring public control and accountability.

The implementation measure becomes defective in the long

run.

Again, government borrowed the ombudsman from the

Scandinavian people without success. Lately, government came

up with other measure of checking financial rascality by public

office holder by introducing the Economic and Financial Crime

Commission (EFCC), Independent Corrupt Practices

Commission (ICPC) all to no avail. This problem of public

finance management has continued to be great concern to

Nigeria and Nigerians alike even though it is universal issue.

 The impact of financial control and accountability in the

public sector will be felt positively if government is sincere in

its implementation of all the financial regulation guiding the

financial transactions in the local, state and federal government

levels. Public officer in charge of finance also must be made to

comply with laid down rules and ethics which guide the

discharge of their duties.

 REFERENCES

Minitzberg, O.M. (1973) Government Accounting And Practice,

India: The Indiana Book Ltd.

Johnson, I.E, (1993), Solving Public Accounting Problems,

Lagos: Financial Nig. Ltd.

Olowe, K. W. (2006) Ethics And Financial Management In

Africa, Lagos: Corporate Publishers Ventures

Onojo, T. K. (1989) Public Enterprise Management, Bende:

Ultimate Press Ltd.

Azubuike And Njemanze, L.O. (2006) Government Accounting,

Enugu; Ryce Kerex Publishes.

Adams, R.A, (2001) Public Sector Accounting And Finance

Made Simple, 2nd Edition, Lagos: Corporate Publishers

Ventures.
Amara, T.C. (2011) Principles And Practices Of Public

Enterprise Management In Nigeria, Aba: Ker Expert

Books,

Ogwabuma, E. M. (2007) Local Government Personal

Administration; An Unpublished Research Work, Aba:

Abia State Polytechnic,

Ngonso, H.E (2008) Human Resource Management; A Key To

Organizational Effectiveness; Unpublished Research

Work, Aba Abia State Polytechnic,

 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

This section of the research work is aimed at giving explicit

explanation to the research methodology and the procedure

that were taken to investigate the topic of discourse. It follows

therefore that this will be focused on the various processes

used by the researcher to obtain data, it is done under the

following sub-heading.

3.2 STUDY POPULATION

The study is delimited to the Ministry of Finance in Abia State,

for obvious reasons –One of the reasons is so the population

can be definite. Again, time constraints and lack of funds to

execute a larger population also form part of the reasons why

the study population is limited to the Abia State Ministry of

Finance alone. The ministry is made up of two categories of

employees- senior and Junior respectively. The senior cadre

has 15 members while junior cadre is made up of 85 members.

On the whole, the ministry boasts of 100 employees.

3.3 SAMPLE AND SAMPLING TECHNIQUE

Sample here refers to the part of the entire population that

researcher actually studied on-behalf of the population. It is

that part of population that is of interest to researcher. The

probability technique is used so that all elements have equal

chances of being selected. The procedure for sampling is the

stratified sampling method because the population is

heterogamous in nature. For the senior cadre, 15

questionnaires was distributed and 85 questionnaire went to

lower rung of the employees. Of the 100 questionnaire

distributed, only 21 was either invalidated or not returned. The

number returned was 79.

RESEARCH DESIGN

It is common knowledge to use survey or design in case-

study research work. Consequently, this work is based on

design. It therefore follows that data collection was done

through the primary and secondary sources.

3.4 SOURCE OF DATA

Information (data) in this investigation (research) was collected

or gotten through the primary sources and the secondary

sources. The primary sources of data include the questionnaire,

oral discourse with the response from the Ministry of Finance,

Abia state, and oral interviews etc.

On the other hand, secondary sources include textbooks,

journals, seminars papers on the topics, magazines,

newspapers etc. Data from the internets also formed part of

my secondary sources of data.

3.5 RESEARCH INSTRUMENT

Every research investigation must have medium of data

collection. The use of instrument in data collection becomes

necessary as it allows for a scientific text of how valid and

reliable such instruments are: For the purpose of this research,

the instrument used in collecting data is the questionnaire. The

questionnaire was supervised by my supervisor to ensure it

brings out what it intended to.

Secondly, information (data) was also acquired through

personal discussion, let’s also state here that whatever

information supplied by the respondents on personal ground

will be treated confidentially. Personal interview was conducted

so that data could be gathered.

3.6 VALIDITY AND RELIABILITY OF RESEARCH

INSTRUMENT

Validity of research instrument is concerned with the degree of

accuracy with which the instruments measures what it is made

to measure. For instance, a questionnaire may contain as much

as 25 questions out of which none may be relevant to test any

of the hypothesis formulated for the study (Amara 2009) So,

when an instrument does not measure what it purports to

measure, it is invalid.

Reliability on the other hand is the degree of consistency

with which an instrument measures what it set out to measure.

Reliability here is guaranteed by the fact that validity was

guaranteed already by my supervisor. In most cases, valid

instruments are almost always reliable.

3.7 METHOD OF ANALYSIS

The Techniques used by the investigator to extract information

from the collected data is such that clarifies the subject under

study. Tables and the chi-square are used. Chi-square is used

because the analysis involved inferential statistical method.

The researcher uses the inferential statistical analysis because

opinion was already formed based the formulated hypothesis in

chapter one.

3.8 METHOD OF DATA COLLECTION

Information (data) gathering and collection is an essential part

of project writing. It is on the same vein that Harper (1977)

said that “for any research project to be carried out data

(information) must be collected. Therefore, method of data

collection deals strictly with the procedures of gathering and

collecting information which is of relevance to the research

work.

3.8.1 PRIMARY METHOD OF DATA COLLECTION

Primary data refers to ‘raw’ information generated specifically

for the purpose of this research work and which has not been

used before by any other study. Techniques used by the

researcher to gather and collect information include

questionnaire, interview and observation.

3.8.2 THE QUESTIONNAIRE METHOD

Questionnaire is one of method data was collected. A

structured questionnaire was used. For clarity sake a

questionnaire according to Geed and Hart (1952) is defined as

‘device for screening answers to questions using a form which

the respondents fill in by himself.

3.8.3 THE INTERVIEW METHOD

Interviews are two-way purposed communication

intimated by an interviewer to obtain information that is

relevant to a research topic. Generally, the pattern of interview

is usually dictated by the interviewer through interview

schedules provided by the interviewer (Amara and Amaechi

2010).

The interview method of collecting data is one of the most

popular ways of information collection. This method of data

collection is mostly used when the researcher needs

reassurance about some facts with the aim of conforming or

rejecting already formulated hypothesis.

3.8.4 THE OBSERVATION METHOD

Observation is an important way of data collection. It is mostly

used as a primary data collection instrument. In the scientific

research, observation is a prime method of data collection. In

the context of this research work, the researcher observes his

population carefully in order to make vital judgment at a

particular point in time without prejudice.

3.8.5 SECONDARY METHOD OF DATA COLLECTION

Secondary data are data gotten from sources other than the

one created by the researcher himself to collect information.

They are data which had been gathered by a different entity for

specific use by the researcher. Secondary data consist mainly

of works of other people in the past on the subject of interest

which is related to the topic being investigated. The following

materials fall under secondary data; textbooks, report,

journals, thesis, projects, seminars papers, information from

the internets etc. secondary data can be gathered from both

internal and external sources.

3.8.6 INTERNAL SECONDARY DATA

The internal data was collective within the organization. For

instance, questionnaire were distributed amongst the members

of the staff of the Abia State Ministry of Finance for information

on the impact of financial control and accountability in the

public service. Personal interviews was conducted to elicit

information from the interviewee. All these information (data)

constitute internal source of data for this work.

3.8.7 EXTERNAL SECONDARY DATA

As stated before in 3.8.6, external secondary data simply

means already existing data which was collected by the

researcher for the purpose of gaining knowledge pertaining to

the topic being investigated. Secondary data also assist the

researcher to stay focus. Sources of external secondary data

include journals textbooks, seminars papers, newspaper etc.

CHAPTER FOUR

4.1 DATA PRESENTATION AND ANALYSIS

The bulk of this chapter is centered on the presentation and

analysis of data collected. For this research work, the

summaries will be done using tables to analyze the information

gathered while chi-square is used to test the formulated

hypothesis. The table below analysis the information on the

administered questionnaire.

4.2 BACKGROUND OF SAMPLE ELEMENTS

TABLE 4.2.1-DISTRIBUTION BY SEX

Variable Raw score Percentage score

Male 50 63.29%

Female 29 39.71%

Total 79 100%

TABLE 4.2-11- DISTRIBUTION BY AGE

Variable Raw score Percentage score

25-35 20 25.32%

36-45 20 25.325
46-55 10 12.66%

56-65 10 12.66%

66-75 19 24.05%

Total 79 100%

TABLE 4.2.11- DISTRIBUTION BY QUALIFICATION

Variable Raw score Percentage score

Master-Above 10 12.66%

HND/First Degree 20 25.31%

OND/NCE 19 24.05%

WASC/GCE 20 25.31%

Other 10 12.66%

Total 79 100%

4.3 DISTRIBUTION OF SAMPLE ELEMENT

Higher Lower level Total

level

No of questionnaire 80 20 100

distributed

No of questionnaire 10 1 11
not returned

Completed and 61 18 79

returned

4.4 FINDING AND ANALYSIS OF QUESTIONNAIRE

Question 1: How long have you been working in this ministry?

Responses No of responses Parentage (%)

5 years 59 74.68%

10 years 20 25.32%

Total 79 100%

ANALYSIS OF Table 1.

Most of the respondents are old enough in the ministry to know

the effect of financial control and accountability in the public

sector.

Question 11- Would you agree that there is a system of

financial control in this ministry?

Table 2.

Responses No of Responses Percentage (%)

Yes 60 75.95%
No 19 24.05%

Total 79 100%

75.95% of respondents agree that public sector has a meaning

of this is that every government department, ministry has a

control mechanism in place to check fraud and ensure

resources are used for the right reason.

Question11- Is financial transactions always authorized before

they are carried out?

Table 3

Responses No of Responses Percentage (%)

Yes 50 63.29%

No 29 36.71%

Total 79 100%

It is clear from the table above that all transaction must be

authorized before it is carried out. This is in line with financial

regulations.
Questions iv- Would you say that internal checks alone is

enough to keep accounting officers from engaging in fraud

which hinders meeting goals and objectives of government.

Responses No of Responses Percentage (%)

Yes 9 11.40%

No 70 88.61%

Total 79 100%

The respondents in table 11 above believed that only internal

checks is not enough to ensure strict compliance with financial

regulations and keep accounting officers from engaging in

fraudulent practices.

Question V: Is independent audit department a key to

controlling and enforcing financial control and accountability.

Table 5

Responses No of Responses Percentage (%)

Yes 49 62.03%

No 30 37.98%

Total 79 100%

Analysis:
49 respondents were of the opinion that for financial control

and accountability to be entrenched in the public sector, the

auditing department must be independent

Question VI- In your opinion; is financial control and

accountability a veritable tool in management of resources in

the public sector?

Responses No of Responses Percentage (%)

Yes 54 68.35%

No 25 31.65%

Total 79 100%

Analysis:

Financial control in the public sector is an important tool in the

management of resources. This much is seen in the response

of table 6 above.

Question VII- would you say that maintaining and operating a

proper accounting system enhances government performance?

Table 7

Responses No of Responses Percentage (%)

Yes 60 75.95%

No 19 24.05

Total 79 100%

Analysis:

According to the table sixty respondents are of the opinion that

maintaining and operating a proper accounting systems

enhanced government performance.

Question VIII-Should accounting officers be held responsible

for misappropriation of government funds?

Table 8

Responses No of Responses Percentage (%)

Yes 61 77.22%

No 18 22.78%

Total 79 100%

Analysis:
Sixty people represent more than half of the total respondents.

They have agreed that accounting offices should be held

responsible for financial impropriety in the public sector

Question IX- Is it true that the culture of maintaining and

operating an effective and efficient control system is important

in fraud control?

Table 9

Responses No of Responses Percentage (%)

Yes 53 67.09&

No 26 32.91%

Total 79 100%

Analysis:

Based on the responses analyzed above more respondents (53

out of 79) think that maintaining and operating efficient

control system help in checking fraud.

4.5 TESTING OF HYPOTHESIS

The need to test hypothesis stems from the fact that

hypothesis is a tentative answer. Its okay for the researcher to

determine whether the result of the inferential statically

analysis supports the formulated Hypothesis (Amara 2010:97)

testing of hypothesis enable the researcher to know which of

the hypothesis to choose (accept).

HYPOTHESIS I

Ho: Fraudulent practice of public servant cannot hinder

achievement of goals and objectives in the public sector.

Hi: Fruadulent practices of public servant can hinder

achievement of goals and objective in the public sector.

Hypothetical ‘question item 4’ in the questionnaire is used.

Question 4 and 3

Yes No Total

Question 3 50 29 79

Question 4 9 70 79

Total 59 99 158
X2 = E(Fo- Fe)

Where Fe- RT x CT

GT

Fe= Expected frequency

RT = Row Total

Ct = Column Total

GT = Grand Total

:. Fe = 59 x 79

158 = 29.5

Fo = 99 x 79

158 =49.5

CONTINGENCY TABLE

Reponses Fo Fe (fo-fe) (fo-fe)2 (fo-fe)2

Question 3 50 29.5 20.5 420.25 14.246

yes

Question 3 29 49.5 -20.5 420.25 8.490

No
Question 4 9 29.5 -20.5 420.25 14.246

yes

Question 4 70 49.5 20.5 420.25 8.490

No

Total 158 158 0 1681 45.472

Df = (r-1)

Where r = number of cells (rows)

= (4-1) (2-2)

=3x1

=3

3df at 0.05 value of x2 = 7.815

Decision Rule:

Accept H0 If calculated value of chi-square < than critical

value, otherwise accept alternative. Consequently, H0 is

rejected and H1 is accepted because calculated value of x2

(45.472)> the critical value (7.815)

Hypothesis 2
H0: Maintaining and operating proper accounting system as

required by law is not a means of ensuring financial control

and accountability.

H1: Maintaining and operating proper accounting system as

required b law is a means of ensuring financial control and

accountability.

Hypothetical ‘question item 6, 7, 9 is used

CONTINGENCY TABLE:

Reponses Fo Fe (fo-fe) (fo-fe)2 (fo-fe)2

Fe

Question 6 yes 54 55.7 -1.7 2.89 5.189

Question 6No 25 23.3 1.7 2.89 1.403

Question 7 yes 60 55.7 4.3 18.49 3.320

Question 7 No 19 23.3 -4.3 18.49 7.936

Question 9 yes 53 55.7 -2.7 7.28 1.307

Question 9 No 26 23.3 2.7 7.28 3.124

Total 237 237 0 57.32 22.279

Df = (r-1) (2-1)

= (6-1) (2-1)

= 5 x1

=5

5Df at 0.05 value of x2 = 11.070

Decision Rule:

Accept H0 if calculated value of x2 <critical value otherwise

reject. But calculated x2 (22.279) > critical value (11.070) and

we reject H0. Accordingly we conclude that maintaining and

operating a proper accounting system as required by law is a

means of ensuring financial control and accountability in the

public sector.

HYPOTHESIS 3

H0: Internal control system does not contribute to

financial control and management.

H1: Internal control system contributes to financial control

and management.

In testing the hypothesis response from seventy nine (79)

respondents on hypothesis “question item 6 in the

questionnaire is used.

CONTINGENY TABLE

Reponses Fo Fe (fo-fe) (fo-fe)2 (fo-fe)2

Fe

Question 6 yes 54 57.5 -3.5 12.025 2.130

Question 6 No 25 21.5 3.5 12.25 5.698

Question 8 yes 61 57.5 3.5 12.25 2.130

Question 8 No 18 21.5 -3.5 12.25 5.698

Total 158 158 0 49 15.656

DF = (R-1) (C -1)
DF = (4-1) (2-1)

=3X1

=3

DF AT 0.05 VALUE OF X2 = 7.815

Decision Rule:

Accept null hypothesis if calculated value chi-square < the

critical value otherwise reject. Accordingly we reject null

hypothesis and financial control and management 8in the

public sector.
 CHAPTER FIVE

DISCUSSION, CONCLUSION AND RECOMMENDATION.

5.1 INTRODUCTION

The entire work is directed at highlighting how important a

good accounting system is to the survival of any organization

be it private or public. This project work also reveals the

undisputable truth that there is actually a system of financial

accountability and control in our public sector but that these

financial regulations have either been flouted or completely

disregarded by people who should ordinarily be made to

observe them.

On the other hand those responsible for ensuring that

these financial regulations guiding operations in the public

sector are obeyed and implemented have been found wanting

in doing their job well. Consequent upon the reason given

above, finances in the public sector have been either wasted or

not properly accounted for. The multiplier effect of this is that

government have not been able to perform their duties as

expected of them by the general public (the people).

The researcher introduce the study in chapter one,

engaged in reviewing related literature in chapter two, the

methodology was explained in chapter three and mode of data

collection and analysis dealt with in chapter four. Now,

discussion of findings, conclusion and recommendations will be

handled in this chapter.

5.2 DISCUSSION OF FINDINGS.

The issue of financial sector control and accountability in the

public sector cannot be overemphasized. This is true because

financial management is central in the management of

resources and achievement of goals and objectives in the

public sector. If the government must achieve the set goals

and objectives then the issue of financial control and

accountability must be taken seriously. Finding have shown

that;

1. Financial regulation and other control measures must

be strictly followed if the issue of financial control is to

achieved

2. All persons and group of person responsible for the

custody, collection, payment and issuance of public

 funds must be held responsible for all their actions and

decision.

3. Sticking to the laid down rules and regulations of

financial transactions in the public sector helps to

create a standard procedure or system of accounting,

and finally

4. Sharp practices by public servants can be checked by

ensuring that financial control and accountability is

effectively entrenched into the system.

5.3 SUMMARY OF FINDING

Summarily, financial control and accountability in the public

sector is concerned with ensuring that public servants are

answerable for their decision and actions and resources are

used for what it was purported for. Again, it is noteworthy that

the different units responsible for ensuring financial control and

accountability must be coordinated, and records promptly kept.

 Financial control saves or reduces waste of resources,

prevent people from engaging in fraudulent activities and

Provides a standard procedure or system of maintaining and

operating accounting transactions in the public sector.

Government can actually do more for its citizens if there is an

effective system of financial control and accountability in the

Public sector. All the things that constitute hindrances to

government performing its duties and functions as it should will

be greatly and drastically reduced if finance and other

resources are controlled and accounted for in the public sector.

5.4 CONCLUSIONS

Conclusively, it is clear that there is actually a system of

financial control and accountability in the Abia State Ministry of

finance. However, compliance with the control system has not

been duly implemented and in some cases grossly inadequate.

Consequently, widespread financial recklessness is common in

the public sector. Often, timely financial report is not made and

it hinders the control process. This delay in documenting

financial report makes it difficult for managers and accounting

officers to check fraud and control wasteful activities of public

servants.

When there are no compliance with financial regulations,

it is difficult to say which accounting system is in used. In

other words, maintaining and operating a proper accounting

system is a means of ensuring financial control and

accountability.

5.5 RECOMMENDATIONS

The concept of financial control and accountability is born out

of the need to ensure that public funds are judiciously used and

the positive impact felt by a larger portion of the society. It is

on this premise that governments have fashioned out

measures of checking and instilling financial discipline in the

public sector by establishing procedure for financial

transactions and making accounting officers liable for their

actions. The following recommendation will assist in enthroning

total financial control and accountability in the public sector:

(1) The emphasis should be on detection of fraud and

not punishment. In other words certainty of

 detection should be emphasized rather than

severity of punishment.

(2) There is need to install a sound system of internal

check. Duties should be properly segregated,

clearly defined, and assigned to different person or

group of persons. Duties such as recording,

custody, payment etc should be handled by

separate persons and units.

(3) The different units responsible for financial control

and accountability must not work at cross road but

in unism.

(4) Every organization should clearly spell out their

ethics which should guide the behaviour of

employees in the organization and ensure that

punishment is matted out to any one found

flouting it.
 BIBLOGRAPHY

Adams, R.A (2001) Public Sector Accounting And Finance Made

Simple, 2nd Edition Lagos; Corporate Publisher Venture.

Aguwa, A.N.(2005) Research Methodology Aba; Waterland Ltd.

Amara, T.C.(2010) Manual Of Research Methodology And Thesis

Writing Mab; KER Expert Books.

Ayo, S.B, (1992) Exhibiting And Adopting A Critical Solution To

The Problem Of Administration In Nigeria State

Ministries, Lagos; Government Press.

Azubike,U.B. And Njemanze, L.O. (2006) Government

Accounting, Enugu; Ryce Kerex Publisher.

Johnson, I.E.(1993) Solving Public Accounting Problems, Lagos;

Financial Training Nigeria.

Mintzberg, H.(1973) The Nature Of Management Work New

York: Harper Collins.

Olowe, K.W.(2006) Ethics And Financial Management In African,

Lagos; Corporate Publisher Venture.

Onoga,T.K.(2004) Public Agency Management Markudi; Benue

Press.

Shellukind, W.N. And Baguma R. (1993) Ethical Standards And

Behavour In African Services In Sadig Rasheed And Dele

Olowu Eds (1993) Ethics And Accountability In African

Public Services, NAPA, O.A.U., Ile Ife; University Press

Walawa, W.N.(1993) Government Accounting And Auditing, Ile

Ife; University Press.

Okoye V.O.(1994) Practice Of Auditing For Tertiary Constitution,

1st Ed, Based Printing Ltd, Onitsha.

Responsibility In Relation To “Fraud” The Nigerian Accounting

April/1996 Vol.29 No.2.

APPENDIX 1

Dear Respondent,

RESEARCH QUESTIONNAIRE.
 I am studying Pubic Administration in Abia state

polytechnic, Aba. I am an HND final year student undertaking a

research work on the topic: Financial Control and Accountability

in the Public Sector”.

Please kindly give sincere response to the question in the

questionnaire. This will me help collect vital information for my

work.

Thanks

Yours Sincerely

APPENDIX 2

THE QUESTIONNAIRE

Please tick the space provided as appropriate.

Age: [ ] 20 -25 [ ] 26 – 30 [ ] 31 – above

Sex: male [ ] female [ ]

Marital Status: single [ ] marred [ ]

Position: manager [ ] clerical officer [ ] admin officer

[ ] manager [ ]

QUESTIONS:
1. Is it true that fraudulent practices can hinder goal and

objectives in the public sector: yes [ ] No [ ] Don’t

Know [ ]

2. Would you say that there is a system of internal checks

and control in the ministry? Yes [ ] No [ ] Don’t Know [ ]

3. Do you think that financial control and accountability

saves money or reduces waste of resources? Yes [ ]

No [ ] Don’t Know [ ]

4. To what extent does accounting officers comply with laid

down financial regulations? 100% [ ] 50% [ ]

0% [ ]

5. Punishment of defaulters can help in reducing fraud? Yes [

] No [ ] May be [ ]

6. Do you agree that accounting system as required by law is

one way of ensuring finance control? Yes [ ]

No [ ] may be [ ]

7. Would you then say that maintaining and operating a

proper accounting system enhances government performance?

Yes [ ] No [ ] May be [ ]

8. Would you say that the auditing department has a role to

play in ensuring financial control and accountability?

Yes [ ] No [ ]-[ ]

9. Should accounting officer be held responsible for

misappropriation of funds in the ministry? Yes [ ]

No [ ] Don’t think.[ ]

10. How would you rate the implementation of financial

regulations in the ministry?

Very high [ ] High [ ] Low [ ]

APPENDIX 3

LIST OF TABLES/ FIGURES

Table 2 in 4.2

Distribution by Age

Variable Row score Percentage% score

25-35 20 25.32%

36-45 20 25.32%

46-55 10 12.66%

56-65 10 12.66%

66-75 19 24.05%

Total 79 100%

Distribution by qualification.
Variable Row score Percentage% score

Master-above 10 12.66%

HND.first Degree 20 25.32%

OND/NCE 19 24.05%

INASCE/GCE 20 25.32%

OTHERS 10 24.05%

Total 79 100%

TABLE 7 IN 4.4

Responses No of responses Percentage%

Yes 60 75.95%

No 19 24.05

Total 79 100%

CONTINGENCY TABLE

Reponses Fo Fe (fo-fe) (fo-fe)2 (fo-fe)2

Question 54 57.5 -3.5 12.25 2.130

6 yes

Question 25 21.5 3.5 12.25 5.698

6 No
Question 61 57.5 3.5 12.25 2.130

8 yes

Question 18 21.5 -3.5 12.25 5.698

8 No

Total 158 158 0 49 15.656

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