Funds Management And Control In The Public Sector

Introduction

1.1 Background of the Study

The management and control of funds in the public sector and how it influences their standards and general performance have been a major area of concern for research, especially in recent years (Grossberg et al.2020). Public sector financial management has passed through several stages of development in the history of Nigeria. These developments are mostly responsible for the practicability of the size as well as the processes of national financial administration, as well as changing the institutions of the public sector. (Christensen et al., 2020) The confidence enlightened the raising of loans directly through the legislatures in those days for national development and infrastructure, such as railways, mortgage banks, and others, only applicable subject to legislative power supervision (Pellandini-Simányi & Vargha, 2021).
Since the establishment of the Federal Mortgage Bank of Nigeria, major events such as the mortgage institutions have undergone both policy and operational changes via privatization and commercialization (Leu & Robertson, 2021). These changes have not gone unnoticed; there is a need for research in this area of funds management and control in the public sector. There have been entire studies on funds management and control in various banks and their implications (Acharya et al., 2020). There were many historical studies on the mortgage and banking system, its operational constraints, bright prospects, and solutions. From the above review, it could be noted that no study concerning funds management and control in the Federal Mortgage Bank of Nigeria and how it affects their operations exists. Hazard theory supports efficient funds transfer between expected surplus economic units and expected deficit economic units. This means that maturity transformation friction minimization is performed at narrow margins by financial intermediaries to reduce transaction costs, thereby reducing the friction between diverse financial market actors in funds transfer (Trapanese & Lanotte, 2023).

Funds management and control in the public sector is a phenomenon that cannot be overemphasized. Competence in this area can make or break the survival of any public sector (Oko-Joseph, 2024). The consequence of effective management in any public sector can significantly influence the sustainability and stability of the world economy due to the major role of the public sector in any economic setting. However, the contributions of the public sector will continue to be minimized if the necessary finances are not provided, controlled, and managed effectively (Furqan et al.2020). Like any other public sector, the Federal Mortgage Bank of Nigeria also needs finance to carry out its operational, investment, and regulatory functions. Inefficient management of financial resources can also have an adverse effect on the Bank. Therefore, better financial management is recommended. The effective and efficient management of funds in the public sector of the Nigerian economy has been the concern of all stakeholders, including the relevant authorities (Ojogiwa2021). As a result, various accounting and auditing reforms have been implemented in the public sector to enhance transparency, accountability, and promote best practices in the public sector of the Nigerian economy. By doing so, the respondents in the public sector are expected to be public, honest, and prevent corruption and mismanagement of funds; this will definitely encourage investment in the economy. Public sector inefficiency contributes to low social and economic development. In fact, the failure of public enterprises arises from their management of economic problems facing the country (Naradda et al.2020). Public resources are utilized to run the affairs of these corporations. Just like other sectors in the economy, the Federal Mortgage Bank of Nigeria is also faced with the problem of funds management through the sale and purchase of securities.

1.2 Statement of the Problem

The management and control of funds in the public sector have been performed amidst numerous inefficiencies, including a lack of transparency and accountability in the financial operations of the Federal Mortgage Bank (Levin & Skinner, 2023). The available and relevant studies have focused largely on the assessment of loan disbursement and marketing problems of housing industries in Nigeria. In the process, there was a dearth of available literature on the operational efficiency of FMBN in the inflow and outflow of funds in the facilitation of housing development from coast to coast (Bolaji, 2022). The consequence of poor funds management and control in the organization could lead to operational mega bumps and an epic frustration for the Nigerian public and overseas-based Nigerians who want to invest millions of marginal dollars into housing development for the fast-growing Nigerian population and job creation (Houssa and Reding2023). In order to show readers what is already known on the topic and the cry for further research, it is imperative to show that several limitations, including a paucity of empirical surveys, led to the need for more studies of financial management and control in the FMBN (Madawaki and Oghoyone2023).

Hypotheses were properly stated while justifications for the research were based on the inadequacy of information on the hypothesis. Ultimately, the conclusion highlighted the consequences of poor funds management, including insecurity, mismanagement, lack of accountability, and non-transparency, which gave birth to demographic inequalities against the Federal Mortgage Bank of Nigeria (Oladeji). In the absence of these structural arrangements, it will be difficult to know how to effect a positive change in the utilized funds. By going through literature and conducting a survey of this nature, it is hoped that the outcome will use literature evidence and empirical surveys to build important tools that can help the organization gain accurate knowledge on the inflow of funds and how they were utilized. With such instruments, the organizational management can make important financial decisions based on the availability of these important accounting and finance principles (Sakun et al.2021). Coherently, suggested solutions to the overall funding and forecasting are subdivided into short- and long-term policy recommendations. This study provides a landmark in the academic discussion of funds management and control and indeed depicts the blueprint for further research on public sector management and control in international transactions.

Chapter One:

Introduction

1.1 Background of the Study

1.2 Statement of the Problem

1.3 Objectives of the Study

1.4 Research Questions

1.5 Research Hypotheses

1.6 Significance of the Study

1.7 Scope of the Study

1.8 Limitations of the Study

1.9 Definition of Terms

Chapter Two:

Literature Review

2.0 Introduction

2.1 Conceptual Framework

2.1.1 Definition of Funds Management

2.1.2 Overview of Public Sector Funds Management

2.1.3 Control Mechanisms in Public Sector Funds

2.1.4 the Role of Federal Mortgage Bank in Funds Management

2.2 Theoretical Framework

2.2.1 Agency Theory

2.2.2 Public Choice Theory

2.2.3 Stewardship Theory

2.3 Empirical Review

2.3.1 Studies on Funds Management in the Public Sector

2.3.2 Case Studies of Financial Control in Public Institutions

2.3.3 Challenges in Funds Management in Public Sector Organizations

Chapter Three:

Research Methodology

3.1 Research Design

3.2 Population of the Study

3.3 Sample Size and Sampling Technique

3.4 Data Collection Methods

3.5 Instrument of Data Collection

3.6 Validity and Reliability of Instrument

3.7 Method of Data Analysis

Chapter Four:

Data Presentation and Analysis

4.1 Introduction

4.2 Demographic Characteristics of Respondents

4.3 Analysis of Research Questions

4.5 Testing of Hypotheses

4.6 Discussion of Findings

Chapter Five:

Summary, Conclusion, and Recommendations

5.1 Summary of Findings

5.2 Conclusion

5.3 Recommendations

5.4 Suggestions for Further Studies

References

• Improving The Management Of Loanable Funds In Commercial Banks In Nigeria
• Due Process And Management Of Public Funds In Nigeria
• Evaluation Of Performance Of Banking Sector In Management Of Long And Short Term Funds
• Impact Of Effective Public Sector Accounting On Public Funds Management In Nigeria
• Taxation As A Major Source Of Government Funds And The Impact On Management Decision Making
• Management Of Funds For School Effectiveness
• Analysis Of Funds Management In Providing A Sound Banking System In Nigeria

• Accounting Project Topics and Materials