Effectiveness Of Financial Control In Public Sector
In the realm of public finance, the effectiveness of financial control plays a pivotal role in ensuring transparency, accountability, and responsible resource management. Government entities face the intricate challenge of handling public funds, necessitating robust financial control mechanisms to prevent misuse and foster fiscal discipline. Financial controls encompass a spectrum of strategies, including budgetary oversight, internal audits, and compliance monitoring. These mechanisms are particularly vital in addressing the unique complexities of the public sector, where the allocation and utilization of funds impact a diverse range of services and programs. By implementing stringent financial controls, governments can mitigate the risks of financial mismanagement, fraud, and corruption, thus safeguarding the public interest. This not only enhances the credibility of public institutions but also fosters public trust in the effective stewardship of taxpayer money.
The project tilled the effectiveness of a financial control in the pubic sector is very special to the government units. Federal, state and local gout etc.
Filament funds are faced with a 1st of problems such as the difficulty in acquisition of funds as well as application of such funds so raised. The adaptation of weak system of accounting funds in the cash unit etc.
The first part of this project will deal with introductory part of the study historical back ground, it further highlighted the contributions of the federal misty to national economy as well the props and scope of this study.
Chapter two will show the nature and attributes of financial control, it’s utility in pubic sector.
Chapter three aims at how data were collected through secondary sources.
Chapter four deals with how data analyzed and presented through questionnaires, simple percentage was used. The hypothesis which assumption of excess expenditure and fraud being due to the altitude of vote controller was tested using percentage .chapter five, this is summary conduction and recommendation of the evaluations of the effectiveness of financial control in the pubic sector.
Title page
Approval page
Abstract
Dedication
Acknowledgement
Table ofcontent
Chapter one
Introduction
1.1 Background of the study
1.2 Statement
1.3 Purpose / objective of the study
1.4 Significance of the study
1.5 Limitation of the study
1.6 De4finition of terms
Reference
Chapter two
Review of related literature
2.1 Historical background of financial control in Nigeria
2.2 Financial control in Nigeria public sector
2.3 The objective of financial control in the public sector
2.4 Control over delegation of ditties
2.5 Department vote expenditure and allocation book
2.6 The certificates
2.7 Economy
Chapter three
Research design and methodology
3.1 Source of data
3.2 Location of data
3.3 Method of data collection
Chapter four
Summary of finding
Chapter five
Recommendation and conclusion
5.1 Recommendation
5.2 Conclusion
Bibliography
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The management of financial resources in the pubic sector is the heart of government administration of financial manning and control in pubic sector.
Financial control can then be sera as the process, which assures that financial resources are obtained economically, and used effectively and effectively in the accomplishment of descried galas.
Thus of can be said to be an assurance process, which includes the process of decision – making.
In the blight of current economic problems in the country, the finical manners especially those in the pubic sector concerned with the financial control of the government funds are faced with a lot of problems, example include direct embezzlement, large scale salary frauds contract inflates.
Financial control also stresses on the acquisition of adequate funds as well as application of such funds so raised.
The researcher were mutilated to chose this topic decease of the necessity for the government to prevent and minimize fraud and embezzlement in the pubic sector through the proper book keeping of income and expenditure in pubic sector.
This study aims at the effective application of financial control vote expenditure and allocation books (DVEA)
1.2 STATEMENT PT THE PROBLES.
In the light of current economic problems in Nigeria, the financial planners especially those in the pubic sector concerned with the financial control of government fun with a lot of problems such as he inflation of contract prices payment of salaries to ghost workers payment of contractors for services not rendered and goods not applied, contractors and payment for unauthorized expenditures.
It is intended to see how effective the use of the DVEA book been a control tool for pubic sector accounting.
The amount of information than what could be found in the normal ledger used to record the double entry system of the pubic sector accounting.
It is intended that the information in the DVEA book is to be reviewed to ascertain its adequacy.
1.3 Objective of the study
This study is aimed at revealing the amount and quality of information contained in the DVEA book with a view to assessing its relevance to the control objective of government accounting.
1. Financial control and management are the essential sectors.
2. The study aims at developing a realistic picture of how financial control can help make the government sector efficiently effective and successful.
3. To examine and make recommendation on what other possible measures that could be improve on the current state of affairs
4. To identify the problems and the coursed of the already identified problems of the government sector and in public finance.
5. To highlight that there exist ordinance/ law principles and rules guiding the government accounting in Nigeria just as their counterparts in private organization.
1.4 SIGNTICANCE OF THE STUDY
This study is intended to highlight the benefits of departmental vote expenditure allocation book in public sector.
The researchers were motivated by the need of proper maintained of DVEA book by financial controllers to restore public trust in the information in the public sector. This will equally contract the loss of credibility in the eyes of the international financial community.
Finally, the study will be of immense importance to our policy makers in portraying whether the DVEA book is achieving its set objectives, what amendment is any should be made to it.
1.5 LIMITATION OF THE STUDY
The researcher intended to explain how DVEA books could assist in the planning and control of the public sector. However, the study would be narrowed down to cover only the federal ministry of finance and brief other related government organization.
This research is limited to the effects of proper use of DVEA books in analyzing and answering the major research question.
DEFINITION OF TERMS
This is maintained for each subhead an integral part of the system of budget control. It is designed to facilitate vote watching the allocation of responsibility to financial offers to ensure that expenditure in excess of appropriation or in excess of authority to incur expenditure does not occur.
Effectiveness Of Financial Control In Public Sector”
Financial control in the public sector is crucial for ensuring the efficient and responsible use of public funds. It involves the establishment of mechanisms, processes, and procedures to oversee, manage, and report on financial resources. The effectiveness of financial control in the public sector can have a significant impact on a country’s economic stability, public trust, and overall governance. Here are several aspects to consider when evaluating the effectiveness of financial control in the public sector:
- Transparency and Accountability: Financial control measures should ensure transparency in financial transactions and operations. This means that the public should have access to information regarding how public funds are collected and spent. Accountability mechanisms should hold public officials responsible for their financial decisions.
- Budgetary Control: Effective financial control starts with a well-structured budgeting process. The budget should reflect the government’s priorities and be subject to public scrutiny. Monitoring and comparing actual expenditures to the budget can help identify discrepancies and overspending.
- Auditing and Internal Controls: Regular audits, both internal and external, are essential to assess the accuracy and legality of financial transactions. These audits should be independent and thorough to identify any financial irregularities or fraud.
- Compliance with Laws and Regulations: Public sector financial control should ensure compliance with relevant laws and regulations. This includes adherence to accounting standards, tax laws, and procurement rules. Non-compliance can lead to financial mismanagement and legal issues.
- Risk Management: Identifying and managing financial risks is vital. Public entities should assess potential risks to their financial stability and implement strategies to mitigate these risks. This includes risks related to revenue collection, economic fluctuations, and unexpected expenditures.
- Performance Measurement: Financial control should not solely focus on compliance but also on achieving financial objectives and performance targets. Metrics and key performance indicators (KPIs) should be established to evaluate the effectiveness of financial management in achieving the government’s goals.
- Information Technology and Data Management: Effective financial control often relies on modern IT systems and data management. Automation of financial processes can improve efficiency and reduce the risk of errors and fraud.
- Training and Capacity Building: Public sector employees responsible for financial control should receive adequate training and development opportunities. This ensures that they have the necessary skills and knowledge to carry out their duties effectively.
- Public Reporting and Communication: Public entities should communicate their financial performance and decisions clearly to the public. Annual reports, financial statements, and other documents should be easily accessible to citizens and stakeholders.
- Ethical Considerations: Ethical behavior is critical in financial control. Public officials should act with integrity, avoiding conflicts of interest and corruption. Ethics training and a strong code of conduct can promote ethical behavior.
- Flexibility and Adaptability: Financial control measures should be flexible enough to adapt to changing circumstances and emerging financial challenges, such as economic crises or natural disasters.
- Independence and Autonomy: Entities responsible for financial control, such as audit institutions, should be independent from political influence and interference. Autonomy ensures they can carry out their duties objectively.
Effectiveness in financial control can vary widely between countries and regions due to differences in governance structures, political environments, and levels of development. However, regardless of these factors, a commitment to transparency, accountability, and responsible financial management is essential for the successful functioning of the public sector and the overall well-being of a society.