THE IMPORTANCE OF ACCOUNTING ON ORGANIZATION’S EFFECTIVENESS

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ABSTRACT

The research work attempts to determine the nature and purpose of depreciation and capital with respect to long use assets of enterprises and organizations and determining ways of optimizing these purposes for the benefit of these enterprises and organization.

The research study will be of benefit to enterprises and organization that have standing depreciation policies and other enterprises that do not have any depreciation policy apparently because they do not have the where withal or have not grasp the purposes and role of depreciation with respect to long use asset and profit recognition.

A write up has been done in chapter 2 to illustrate the calculation and other accounting treatment of selected depreciation methods and capital allowances for the benefit of enterprises and or persons who may not have had a proper understanding of them.

The research study was carried out in Enugu and its environ and may move appropriately reflect the trend in Nigeria.  The problems identified and recommendations made may not have been one hundred percent exhaustive.

TABLE OF CONTENT

CHAPTER ONE

• BACKGROUND OF STUDY 1

1.1   STATEMENT OF STUDY                                       3

• OBJECTIVE OF STUDY 4
• SCOPE OF STUDY 5
• LIMITATION OF STUDY 6
• DEFINITION OF TERMS 6

CHAPTER TWO

• NATURE OF GOVERNMENT ACCOUNTING 9
  • PROCEDURE FOR GOVERNMENT

ACCOUNTING                                            12

• FINANCIAL CONTROL 15
• CONTROL TECHNIQUE 17
• TREASURY CONTROL 18
• REVENUE CONTROL 19
• EXPENDITURE CONTROL 20
• DEPARTMENT CONTROL 21
• SUMMARY OF RELATED REVIEW LITERATURE22

CHAPTER THREE

• SUMMARY 23

3.1     FINDINGS                                                              23

• RECOMMENDATION 25
• REFERENCE 26

CHAPTER ONE

INTRODUCTION

1.0     BACKGROUND OF THE STUDY

Universally it is a well-known fact that the management and control of public fund determine the success of all governmental activities and it is also at the heart of government administration hence, the need for an acceptable accounting system that will comprehensively offer solution to the accounting problem of the government and society.

The management and control of public fund are governed by the finance (Control and management) act of 1988.  This was as a result of the constitutional amendment of 1957, which inserted sub section 154A to into section 154 which deals with the operation of the consolidated revenue fund.  The principles of this act forms the base of finance act which had a slight change in the 1996 and 1989 constitution furthermore, government accounting is regulated by section 129. 148 of the constitution, laws enacted by government in power, the finance (control and management) act of 1958 and by decrees and acts which were promulgated.

The Federal Ministry of Finance performs the duty of management and control of public funds which is directly the peculiar responsibility of the treasury now referred to as the office of the Accountant General the treasury’s function and duties are streamlined to as set of guide where expenditure and receipts for the year hence, no receipt or expenditure are transferred to the next accounting period.

The rules and regulation governing he accounting practices (Management and Control of Public Funds) are contained in the financial regulation treasury, accounting manual and treasury (FR 519 the provision states that “Before making any payment a sub-accounting office will satisfy himself so far as he is in a position to do so that:-

• The expenditure has been authorized by warrant and the voucher correctly classified in accordance with the estimates.
• The information furnished on the voucher is correct in all particulars, the certificates on the voucher signed by the proper officer.
• All proper deductions from salaries or pension account of contribution repayment of advance or other liabilities have been duly made.

These basic functions are services rendered by the treasury.

 

• STATEMENT OF THE PROBLEM

The treasury as a customers or public fund is responsible for

Providing a retailed credible of all public and that Federal Ministry Department being part of the treasury is also vested with the same responsibility.

However, the treasury is faced with numerous problems that tend to hinder the effectiveness of this accounting system.

The following problem are therefore identified with a view to funding this solution so that credible accounting system will rescuer.

• Inadequate staffing
• Inadequate method of revenue collection and control

Delay