THE ROLE OF ACCOUNTING IN THE CONTROL OF GOVERNMENT EXPENDITURE

THE ROLE OF ACCOUNTING IN THE CONTROL OF GOVERNMENT EXPENDITURE

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CHAPTER ONE  –       INTRODUCTION

  • GENERAL MEANING OF PUBLIC ACCOUNTING 1
  • DEFINITION OF TERMS 1
  • SOURCES OF MONEY INTO PUBLIC ACCOUNT 3

CHAPTER TWO –       LITERATURE REVIEW

  • AREAS OF EXPENDITURE FROM PUBLIC ACCOUNTS 7
  • TYPES OF ACCOUNTING OFFICERS IN THE PUBLIC 10
  • THE ROLE OF ACCOUNTING OFFICERS IN THE

CONTROL OF PUBLIC EXPENDITURE                                 13

  • PROBLEMS HINDERING ACCOUNTANTS-

FROM IMPLEMENTING EFFECTIVE CONTROL                   16

  • SUGGESTIONS AS TO THE SOLUTION OF –

THESE PROBLEMS                                                           17

CHAPTER THREE

  • SUMMARY AND CONCLUSION 21
  • RECOMMENDATION 22

BIBLIOGRAPHY                                                               26

 


CHAPTER ONE

INTRODUCTION

1.1   GENERAL MEANING OF PUBLIC ACCOUNTING

In the public sector organization exhibit a variety of social economic, political and legal characteristics. They have different pattern of accountability. They have different objectives and are financial in many ways. They also have different organizational structure.

Generally, public accounting may be defined as  a composite activity of collecting, analyzing, recording, summarizing and interpretation of the financial transactions of the government units.

 

1.2   DEFINITION OF TERMS

ACCOUNTING: It may be defined as a systematic means of writing an economic history and plans of organization in both quantities and financial manner so that facts can be revealed and property analyzing such facts for the purpose of advising management.

ACCOUNT PERIOD: This is a period of the time usually one year at the end of which financial statements are prepared.

CERTIFIED PUBLIC ACCOUNTANCY (CPA): A professional accountant who has passed a professional examination obtained practical experience and satisfied other requirement, an is certified by the estate to practice public accounting including the auditing of a financial statement of organization.

BUDGET: A balance sheet of estimate revenue and expenditure designed for financing an entity for a future period.

EXPENDITURE: The use of to pay for an expense for the acquisition of an asset for the repayment of a debt or for any other business purpose.

REVENUE: This is the increase in owner’s equity or capital resulting from earnings.

 

 

 

1.3   SOURCES OF MONEY INTO PUBLIC ACCOUNTS

The revenues of fund are the life-wire of any successful undertaking not only for the private sector but also for the public sector. The function which government must perform can only be discharged with resources in the form of money.

The various categories of sources of money for government pursues are as follows:

  1. TAXATION: It is the compulsory levy, which the government imposes on the income of the individuals and incorporate establishments for fund raising purposes.
  2. FESS, FINES, AND SPECIFIC CHARGES: These are income derived from payment for the use of public services eg. Vehicles license, water bill, tool fees, electricity bills, stamp duties and so on.
  3. RENT, PROFITS AND RAYALTIES: These are income received from the use of government property, profit from government business establishment and income from mining tights.
  4. LOANS: These are income assistance received from other countries. It is also incomes generated by borrowing from private individuals or from countries to finance projects.
  5. GRANTS: These are financial assistance received from other countries or from international organization. Internally government could receive grants from patriotic citizens and establishment.
  6. LAUNCHING: The Nigerian government often times organize fund raising launching wealthy individuals and corporate bodies donate generously towards finding of government projects.

 

STATEMENT OF PROBLEM

Scale the mid 19th century, the role of the accountant has grown from the simple reporting of historical data to complex advising on all types of business decisions. In the outline of the fourth National development plan (1981-1985), it was observed that storage of skilled manpower constitute the most serious bottleneck to the capacity of the economy to absorb the increasing volume of investment made possible by oil revenue.

The constraint must be released if the economy is to make rapid progress in the direction of self-reliance. In the same plan it

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