Sources And Application Of Funds In A Government Parastatal
(A Case Study Institute Of Management And Technology Imt Enugu)
Sources and application of funds in a government parastatal typically involve a variety of revenue streams and expenditures aimed at fulfilling its mandate. Sources of funds may include budget allocations from the central government, revenue generated from the provision of goods or services, grants, loans, and other forms of financing. These funds are then applied towards various activities such as infrastructure development, operational expenses, employee salaries, research and development, and any other necessary expenditures to support the parastatal’s objectives. Proper management of these funds is crucial to ensure transparency, accountability, and effectiveness in the delivery of services or the execution of projects, ultimately contributing to the socioeconomic development goals of the government. Additionally, adherence to financial regulations and reporting standards is essential to maintain public trust and confidence in the parastatal’s operations.
Research proposal is a document that tire to show the direction of the thinking of the researcher to do it., how he/she wants to do it, his source of data, the significance of it to the organization or society at large
It also helps to show the limit to what he/she is doing in term s of creation area techniques to be followed, time frame energy application and material to be employed. From the above description and definitions, research proposal can be referred as a plan that is to be followed in the process of research effort a guiding toward the development of research process and a means of developing a certain the successful completion of the project as well as organ that helps the researcher to maintain a sequential continuity to the various step or section and stage of the work to be done. In treating research proposal, three major sections of the research project are ;-
A The introductions
B The review of the literature
C The research methodology
But this research work will discuss on the topic that says the source and application of fund in a government parastatal in Nigeria, using the institute of management and technology enugu as a case study from (1995-2005). The research methods that will be adopted are,
1 Primary and secondary source for gathering a lot of data
2 Graphs
3 Normal distribution table and regression will also be applied and analyzed
The research work will be benefic to the government of Nigeria and the institute of management and technology Enugu in reviewing the source available in I M T and where this fund goes to or managed in
the institute. The significance of this study is to consider the present poor performance that institute is faced with and they include the constant face off between the management and trade unions respect of regular payment of salaries, lack of promotion to staff that are due to be promoted inability to maintain their fixed assets like building, motor vehicles, furniture and fitting etc inability to settle their other numerous overhead costs and absence of new structure to replace the dilapidated once. All these problems I have mentioned gave raise to find out the cause of this problems and a way to solve them.
This research topic will also help to ascertain the extent the lack of steady source of funds had made (I.M.T ) scale down its work force, how made difficult it was to (I.M.T ) to put –up new class room blocks in relation to number of students government discontinued funding to (I.M.T ) financial stability to find out why staff are not been promoted as at when due and the extent the institute maintain their fixed assists
Also in order to achieve this issues, problems, effectiveness of source and application of funds in government parental in our country the significance of the this topic have to be stated and that is to educate b/e fund sourced in the most appropriate manner, to know other ways or avenues of raising funds, to reduced the friction between the management and the trade union in term of regular payment of salaries and promotions
In conclusion, this research work will be a source of inspiration for it adds to researcher academic advancement
TITLE PAGE
CERTIFICATION
DEDICATION
ACKNOWLEDGMENT
PROPOSAL
TABLE OF CONTENT
CHAPTER ONE;
0.1 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 SLOPE OF THE STUDY
1.5 RESEARCH QUESTIONS
1.6 RESEARCH HYPOTHESIS
1.7 SIGNIFICANCE OF THE STUDY
1.8 DEFINITION OF TERMS
REFERENCE
CHAPTER TWO:
2.0 LITERATURE REVIEW
2.1 HISTORICAL BACKGROUND OF IMT
2.3 PHILOSOPHY AND MANPOWER PRODUCTION STRUCTURE OF THE INSTITUTE OF MANAGEMENT AND TECHNOLOGY
2.4 THE ACCOUNTING SYSTEM IN USE IN A GOVERNMENT PARASTATAL
2.5 RESOURCE CONTROL AND DECISION MAKING
2.6 INTERNAL CONTROL MECH ANLSMS IN GOVERNMENT PARASTATAL.
2.7 ORGANIZATIONAL STRUCTURE OF IMT
2.8 THE VARIOUS FUND AVAILABLE TO IMT ENUGU
2.9 REFERENCE
CHAPTER THREE;
3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
3.2 SOURCES OF DATA
3.21 PRIMARY SOURCES
3.22 SECONDARY SOURCES
3.3 DETERMINATION OF SAMPLE SIZES
CHAPTER FOUR;
4.0 REPRESENTATION AND ANALYSIS OF DATA
4.1 QUESTION ONE
4.2 QUESTION TWO
4.3 QUESTION THREE
4.4 QUESTION FOUR
4.5 QUESTION FIVE
4.6 QUESTION SIX
4.7 QUESTION SEVEN
4.8 QUESTION EIGHT
4.9 QUESTION NINE
4.10 QUESTION TEN
REFERENCE
CHAPTER FIVE ;
5.1 DISCUSSION OF RESULTS
5.2 CONCLUSION
5.3 RECOMMENDATIONS
5.4 SUGGESTIONS FOR FURTHER STUDY
5.5 LIMITATIONS OF THE STUDY
REFERENCE
BIBLOGRAPHY
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organization both profit and non- profit oriented need funds (financial assets) for their numerous operations. That is why all organizations irrespective of their legal forms, device a means their day- to –day operations. The funds sourced are not normally kept idle by the organization rather they are either being re invested to generate future profit or consumed immediately to achieve the origination day to day goals hence the word “ source and application of funds” in accounting profession
Source and application of funds simply means the various avenues available to an organization thought which it source it’s financial assets and all the outlet through which the sourced financial assets leaves the coffers of the organization
In recent past, government pareastalal which institute of management and technology is one, depended revenue grants in forms of subvention for few existence and growth, in this era of privatization, the government has decided to shade off it’s financial responsibilities in almost government paratatal so as to concentrate in it’s constitutional role of providing enabling environment for economic activities to thrive. This scenario has left many government paratatal in total financial drought
For instance, the immediate lost years in the which institute of management and technology has been a hectic one as financial starvation meted to it by the government has left the which institute with the following identifiably problems;-
1) Constant face off between management and trade union in respect regular payment of salaries
11) Lack of promotion to staff that are due to be promoted
111) inability to maintain their fixed assets such as
a) Building
b) Motor vehicle
c) Furniture and fittings
1V) inability to settle their other numerous over heard costs
V) Absence of non structures to replace the dilapidated once etc
The colossal nature of these problems enumerated above made the institute of management and technology IMT various avenue of source for the following
I) Creation of non–existing charges such as accreditation fees, development fees and upward review of other existing charges;
ii) Carrying out aggressive campaign to increase the number of students intake by reaching out to all seventeen local government in the state and beyond
iii) Scaling down the work force
iv) Denial of promotion to staff those are due to be promoted
those member yielded a positive result as a report is issued by admission department shows that nearly over 20,000 student were admitted in this academic year and the management can now pay their monthly salary bills of over 39 million naira and other overhead cost. But the sustainability of the current trend is fillgloomy as the funds sourced from these measures would be applied in solving short term problem which is mainly revenue in nature. While capital projects would be unattended to based on this it has become of paramount importance that a re appraised of all sourced of fund available to IMT and how the fund sourced would be applied be made to funds for it’s capital and revenue expenditure.
Hence my choice of this topic source and application of funds I a government parastatal” A case study of institute of management and technology IMT Enugu. Those research is concern with exposing the source and application of funds.
1.2 STATEMENT OF PROBLEMS
Most organization both profit and non profit oriented has problem knowing how to raise funds for their operation and most often fail utilize the available funds. The following problem below are found as obesities inherent in sources and application of funds in institute of management and technology IMT enugu.
i) it was difficult to know the extent steady sources of fund had made (I.M.T ) scale down it’s cout force.
ii) I.M.T funds it difficult to erect new structures show as class-room student intake
iii) it was difficult to know wetter I.M.T applies the funds it sourced in most appropriate manner,
iv) the impact of government discontinued finding to I.M.T was unknown Objectives/
1.3 PURPORT OF THE STUDY;
THIS research topic ‘socures and application of funds in government parasratal was set towards establishing the following objectives:
i) to ascertain the extent the lack of steady source of funds had made IMT scale down it’s work force
ii) to find out how difficult it was to IMT to put up new class room blocks in retaliation to number of student in take
iii) to know whatever IMT applies the fund its scoured in most appropriate manner
iv) to determine the impact of government discontinued finding to IMT financial stability
v) to ascertain why staffers not promoted when due
vi) to keep the extent IMT management their fixed asset
1.4 SCOPE OF THE STUDY;
This research work is limited to the source of funds available to IMT enugu and how such funds ar4e expended the study will examine reports covering from (2000 to 2005)
the major constraints of this project re money, tine and materials. Each of these factors in addition to secrecy exhibited by some staff of the institute.
1.5 RESEARCH QUESTIONS;
To guide the study six research question were formulated as follows
1 What extent does the lack of steady source of funds made imt scale down its workforce?
2 To what extent does imt used it’s sourced fund to erect new class room blocks in relative to the number of the student in –take
3 Does IMT soured it’s fund internally or externally
4 To what extent does IMT apply the fund if sourced in most appropriate manner
5 Does the fund sourced goes payment of staff salaries only
6 Does the fund sourced goes solve some management problem like erecting of class room blocks setting their other numerous over heard cost, equipping student library maintaining their fixed assets such as building, motor vehicles furniture and fittings etc.
1.5 RESEARCH QUESTIONS;
To guide the study four researches were formulated as follows
I what extent does the lack of steady source of funds made imt scale down its workforce?
II To what extent does imt used its sourced fund to erect new class room blocks in relative to the number of the student in –take
1.8 DEFINITION OF TERMS
1. Application; – This means were these funds money sourced, what it is flashed for
2 Source; – place from which something comes or is obtained nova’s starting points,
3 Prasatal companies’ bodies or government bodies or institutions
4 I.M.T; – institute of management and technology imt enugu .
5 GOVERNMENT ENUGU STATE GOVERNRNMENT
Sources And Application Of Funds In A Government Parastatal:
In the context of a government parastatal (also known as a government-owned corporation, public enterprise, or state-owned enterprise), “Sources and Application of Funds” refers to the financial analysis of where the organization’s money comes from (sources) and how it is used (applications). This analysis provides insights into the financial health, efficiency, and effectiveness of the organization’s operations.
Sources of Funds:
- Government Capital Injection: Government parastatals often receive initial capital injections or subsequent funding from the government to establish and support their operations. This can come from the national budget or other government funding mechanisms.
- Borrowings: Parastatals may raise funds through loans or bond issuances from domestic or international financial institutions. Governments might provide guarantees for these borrowings to lower interest rates.
- Revenue Generation: Parastatals generate revenue through their operations, which can include sales of goods and services, fees, tariffs, and charges. This revenue can contribute significantly to their funding.
- Grants and Subsidies: Governments might provide grants or subsidies to support specific activities or projects undertaken by parastatals, especially those with social or public service objectives.
- Equity Investment: In some cases, the government might sell shares in a parastatal to private investors, thereby raising funds. This is common when the government aims to partially privatize the entity.
Application of Funds:
- Operating Expenses: These include day-to-day costs such as employee salaries, administrative expenses, maintenance, and other operational expenditures.
- Capital Expenditures: Funds are allocated for investment in capital assets like infrastructure, equipment, facilities, and technology to enhance the organization’s long-term capabilities.
- Debt Servicing: If the parastatal has borrowed funds, a portion of its income might be allocated to repay loans, cover interest payments, and fulfill other debt obligations.
- Expansion and Growth: Funds might be used to expand the parastatal’s operations, enter new markets, develop new products or services, and diversify its business activities.
- Research and Development: Investment in research, innovation, and development activities can drive improvements and keep the parastatal competitive.
- Social and Public Services: Parastatals with public service mandates, such as healthcare, education, or utilities, allocate funds to fulfill their social responsibilities.
- Reserves and Surplus: Funds might be set aside for building reserves, maintaining liquidity, and dealing with unforeseen contingencies.
- Dividends and Returns: If the parastatal generates profits, it might pay dividends to the government as its shareholder or reinvest the profits into its operations.
Analyzing the sources and application of funds helps stakeholders assess the financial sustainability, efficiency, and effectiveness of a government parastatal. It aids in decision-making, budgeting, and strategic planning to ensure the organization’s long-term viability and alignment with its objectives.