ISSUES PROBLEMS AND PROSPECTS OF ACCOUNTING IN THE NIGERIA PUBLIC SECTOR
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ISSUES PROBLEMS AND PROSPECTS OF ACCOUNTING IN THE NIGERIA PUBLIC SECTOR
ABSTRACT
In order to successfully complete the goal of this research study, questions about the role of the Nigeria accountant were formed, and a questionnaire consisting of statements selected from the research questions was prepared as well. The appointment of unqualified accountants to function as account supervisors,
as well as the negative attitude of most accountants towards account ability, result in insufficient financial and accounting record keeping, as stated by financial legislation and treasury circulars.
Accounting in the Nigerian public sector: problems and potential is the project topic, and the research includes five (5) chapters and a case study of a selected government establishment in PHCN.
The introduction/background of the study, description of problem, purpose of the study, significance of the study, scope and limitation of the investigation, and research question are all included in the chapter.
The second chapter included a review of the literature, who is an accountant, how an accountant is defined, how bookkeeping and accounting differ, how government accounting is defined, the objectives of accounting in the public sector, the legal basis, the nature of Nigeria public sector accounting government, and some identified problems in Nigeria public sector accounting.
The fourth chapter included data analysis, data presentation of demographic features, appraisal of the public sector accounting system, testing of research questions, and main conclusions.
Chapter five included a summary, recommendation, and conclusion, as well as a suggestion for future research.
If completely implemented, the research’s multiple recommendations as remedies will improve government accounting systems and records and promote prudence in the conduct of government financial transactions.
1.1 INTRODUCTION AND BACKGROUND OF THE STUDY
Accounting has been defined as the business language, and the accounting profession as the backbone of the organisation. This is because accounting, in addition to its duties, functions as the custodian of an organization’s resources and also serves as a vehicle for investing these assets in enterprises that encourage survival and growth.
However, accounting is a fluid profession. It, like language, is not static; it evolves, taking on new responsibilities along the way. The accounting profession, as it influences the public sector of the economy, gives data and information on this sector’s historical performance for future planning.
Accounting information is used to create government budgets. It is a source of pride that two Nigerian accounting bodies, the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN), have recently accredited two institutions as recognised training centres for the sole purpose of training accountants for the public sector.
The accounting technicians scheme (ATS) was launched today. Joy, Nigeria’s accounting institution, was established to teach and develop manpower for the public sector. However, as commendable as this innovation is, the substance of the ATS is woefully inadequate to produce the requisite people for the public sector.
The truth is that the curriculum for government accounting has yet to be properly created and integrated into our institutions’ accounting curricula. Aside from that, the country has a plethora of textbooks on government accounting, making the ATS a non-starter.
These are issues that must be addressed as soon as possible.
The government treasury schools provide technical skills to public sector accountants but do not offer credentials. As a result of numerous developments over the years, a complex structure of federal, state, and local government departments and training agencies, as well as various public sector organisations working at the national, state, and local levels, has emerged.
These non-proprietary groups supply goods and services that are frequently decided on a political and social basis on what is thought to be needed or signals.
Because government establishments are set up to provide social goods and services for public welfare, the need for a good book-keeping and accounting system, as well as proper accountability for public funds at the operations disposed of, is essential.
The issues frequently experienced by government establishment operators in maintaining a competent accounting system with the goal of improving accountability and prospect accounting at these establishments are the focus of this study work.
1.2 STATEMENT OF THE PROBLEM
It is important to remember that accounting information frequently suffers from significant distortion as a result of clerical, technical, and non-professional errors.
Most accounting information operators or practitioners desired for management choices. Despite the fact that these issues affect both the private and public sectors, the public sector suffers the most. Among the issues encountered by the government accounting unit are
(a) Delay in receiving information from outstations, which delays the production of financial reports.
(b)Postponement of the presentation and preparation of the annual financial statement
(c)Actual expenditure figures are not recorded due to a lack of technical capabilities among the majority of accountants in the various sub-sectors.
(d)Accounts that are not reconciled on time
(e)Inconsistency in the government accounting system, as well as circumventions of government accounting norms and processes, make planning comparisons and evaluations difficult.
(f)Using untrained employees to perform accounting duties.
(g)Inconsistent balancing of books of accounts
(h)A lack of proper and appropriate accounting systems.
(i)Inadequate accounting and internal audits.
(j)Inadequate control systems.
(k)Government officials’ negative attitude towards accountability
1.3 OBJECTIVE OF THE STUDY
This study was chosen with certain goals in mind. The study’s objectives are as follows:
1. To assess the effectiveness of the government unit’s existing accounting systems.
2. To evaluate the system and determine its adequacy
3. Identify and analyse the problems related with the accounting system used by these firms, investigate their main causes, and develop conclusions based on the findings.
4. To conduct a prospective assessment of government accounting requirements and to identify potential improvements in the development of its use by the public sector.
1.4 THE SIGNIFICANCE OF THE STUDY
It is hoped that by identifying and analysing the problems and prospects of accounting in the public sector, as well as making the desired recommendations to remedy these problems,
this project work will pave the way for improved quality of accounting information prepared and presented by government accounting personnel or practitioners. To that aim, it is anticipated that the following users will benefit from this project.
1. Government accounting staff and practitioners who might benefit from the knowledge in their work.
2. It will be useful as a reference material for accounting students, lecturers, and researchers who may be able to obtain a copy at the library for academic and research purposes in the future.
3. Furthermore, the accomplishment of this work could be of enormous use to the operations of government establishments, where financial information is critical for decision making.
4. Finally, the broader public stands to profit from this work in a variety of ways.
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