Analysis Of Sources And Uses Of Fund In Government Institutions

The Effect of Sources and Uses of Revenue in Kaduna Polytechnic is the title of the Project work. In carrying out this research study, the researcher examines the effect of sources and uses of revenue system in an institution with respect to its effectiveness and tested information were obtained through the use of questionnaire and personal interview. Data collected were presented analyzed and discussed and hypothesis was tested using statistical method. The result of the study gathered from different authors views showed that most of the practices as carried out in the institution were in compliance on the subject matter. Among other things narrated were the significant of sources and uses of revenue not only in the area of the study i.e. Kaduna Polytechnic, but to other institutions. There is need to employ skilled and experienced people to handle the affairs of revenue generation and its utilization in an institution and not just employing layman to carry at the function.

1.0 Introduction

1.1 Background to the Study

Money is an organization tool which is used for proper management, control and coordination.

Economically, it is said to be scare in supply and the scare nature of it makes it necessary for good and effective management. Every organization whether small or large, requires good Accounting system for efficient management and control of her finances which may be done through a specified method as:

Controlling of Assets

Internal/External Auditing

Keeping of Proper Books

Preparation of Financial Statement

Compliance with Legislation/Statutory Requirement.

A good Accounting System would provide orderly assembly of Accounting Information and from the basis of continuity. Polytechnics though tertiary institutions like any other organization are required by law establishing them to prepare accounts which are in conformity with general accepted principles of accounting so also with Kaduna Polytechnic which form the basis of this study.

Higher institution of learning established by Decree/Act (Kaduna Polytechnic) been one, operate accounting system some how similar to a great extent. It is of paramount importance at this juncture to have a broad knowledge of accounting system and funds accounting as it applies to tertiary institution.

Accounting system is the art of recording and controlling an organization by keeping accurate bookkeeping of business transactions articulate to form an accounting process.

Finney and Miller (1971) define Funds Accounting as "an independent fiscal and accounting entity with a selfbalancing set of recording cash and other resources together with all related liabilities, obligation, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restriction or limitation.

Public funds accounting tends to vary due to management policies differences. Though this higher institution of learning which are established for objective reasons are not profit oriented , there accounting systems are based on Historical cost concept, which indicates that Assets and liabilities are shown in the accounts at their Historical cost rather than current market value.

It is a common knowledge that all businesses and non business organizations including government runs on money equally, like there are wide range or ways of spending (expending funds). So also there are also variety of ways of generating it.

Source of fund refer to the different ways available to business enterprises through which it can mobilize money (fundsO to finance its operation i.e. from planning, conception, take up buying of fixed assets to day to day operations. Example of this are:

Decrease in assets i.e selling off your business assets such as land, building equipments, machineries to raise funds which can be recycled back into the business.

An increase in liabilities i.e borrowing from banks and other financial institutions in a form of loans, overdraft and debentures.

Plough back profit (Net profit reinjection). Instead of paying dividend to shareholders, the •profit is recycled back into the business.

Reserves and depreciating: This is an amount kept aside for some special purposes and for the rainy day. It is normally taken out of the net profit yearly during appropriation.

An increase in equity holding: That is creation and issuance of additional common stock and preferred stock to raises more funds.

Sales of stock of goods: By stock of goods, we mean both raw materials, work in progress and finish goods. Any of them, can be disposed off, to a willing buyer to raise additional funds.

Grants, Aids and Donations from government and nongovernmental agencies both local and foreign donor agencies, multilateral organizations, economic and financial institutions across the world.

Internal sources, sale of forms, transcript forms employment forms, sales of bread and tender fee.

Just like funds are generated through different means and way, so also its usage. Organizational funds are primarily spent in any or combination of the under listed ways:

An increase in assets i.e buying more assets such as land, buildings, equipment and machineries etc.

A decrease I liabilities, that is paying off debts, debentures and other sundry liabilities and commitments.

Payment of dividend to equity holders - funds generated can be used to settle dividend darning payable to shareholders of the business firm.

Purchase and or retirement of shares, stock and bonds. That is a business concerned investing its surplus funds to buy shares and bonds of another company, with a view to diversifying its investment portfolio and risks.

Net operating loses. Net operating loses when recorded has the potentials of eroding firm or business assets base. If the enterprise therefore, want to maintain its former position, it will then have to source for additional funds to bridge the gap.

Purchase of stock i.e raw materials and other inputs that are necessary for day to day operation in the firm (inventories).

1.2 Statement of Problem

The key to success of an organization is the development of its source of revenue and effective use of the acquired revenue. Therefore the above statement will guide the researcher in the adopted approach to get answers to the following questions. What are the sources of fund available to Kaduna polytechnic? After acquiring the funds, how does Kaduna polytechnic utilized these funds?

1.3 Objectives of the Study

The main objectives of the study is to examine how revenue is generated and utilize in Kaduna polytechnic.

To find out whether there is a good accounting system in Kaduna polytechnic.

To examine the effectiveness of internal control system in Kaduna polytechnic

To determine whether the revenue generated by Kaduna polytechnic are utilize properly

To find out ways of improving the management and control of funds in Kaduna polytechnic.

1.4 Research Question

Is there good accounting system in Kaduna polytechnic?

Is the internal control system in Kaduna polytechnic effective?

Is the revenue generated by Kaduna polytechnic utilized properly?

How can Kaduna polytechnic improve the management and control of funds generated?

1.5 Significance of the Study

Kaduna Polytechnic has been in existence for more than 50 years, and there is no gainsaying that school has made any contribution in the area of staff development for the northern states, and the country at a whole.

This project will serve as a guide to the management, staff of any institution where planning, budgeting, forecasting, directing and coordinating the activities of the institution concerned. Also, this project will be of greater importance to both the policy makers, the executives and the colleges respectively.

A good designed accounting system and control of public funds of any organization, forms a good basic for management and utilization of the available resources.

1.5 Scope of the Study

The study will pay attention on one of the highest institutions of learning that is Kaduna polytechnic, with emphasis on Bursary department as they are the operator of all accounting system. The project intends to look at the rang & significant of good accounting system since the establishment of the polytechnic and controlling of public funds to enhance good management of the institution

1.7 Historical Background of the Case Study

The idea to start a technical institution in Northern Nigeria started as far back as 1951, which resulted into the establishment of Kaduna Technical Institute in 1956. The establishment of technical institute Kaduna was as a result of the acceptance by the British Government on the accommodation of the Higher Education Commission which suggested the upgrading of Yaba

Higher College to technical institute and proposed Technical Institution in Kaduna and Enugu.

The Northern Nigerian Executive Council by its meeting of the 17th August, 1962, conclusion No.1, redesigned the Technical Institute, Kaduna as the Polytechnic, Kaduna. It became Kaduna Polytechnic in 1968 by the Federal Government Decree No. 20 of 1968, which was revised in 1979 by Decree No. 79. In 1991 the institution was taken over by Federal Government by Decree No. 40 of the same year.

The Institution was established with the objective providing diverse instruction, training and research in technology, the science, commerce, the humanities and programmes of in-serv9ce institution •for members of the public service in Nigeria in 1968, it amalgamated two training centres namely, the College of Science and Technology and Staff Development Centre with Survey Unit joining later.

These formed the nucleus of its fear college structure. At 49 the institution has become the largest in Africa, South of the Sahara, and the second and largest tertiary institution in Nigeria, after Ahmadu Bello University (A.B.U) Zaria in student"s population. Kaduna Polytechnic has been at the forefront in the training of technological manpower for the various sectors of the Nigerian economy.

The Polytechnic is very cosmopolitan with students admitted from all over Nigeria and other countries. The late Premier of Northern Nigeria, Sir, Ahmadu Bello, Sarduana of Sokoto and late Aihaji Isa Kaita, Wazirin Katsina, the then Minister of Education contributed immensely towards the establishment of this institution. It is significant to note that the late Premier, Sir Ahmadu Bello opened the Staff Development Centre officially in July, 1964, after the first student"s admission in 1963. He also released his Deputy Secretary, Mr. T.H. Smith (British), to become lDirector of the centre. One of the major tasks performed by the centre in the early days of its establishment was running the three Civil Defense and Home Guard Courses for Senior Civil Servants, which the centre organized at Kachia between 1964 and 1966. The symbol, "Spider and its Web" (Gizogizo), the crest for Kauna Polytechnic was suggested during one of those courses. The symbol was designed by a local arti8st, Mr. Alexius Enuch. The Gizogizo, which in many Nigerian and African Folklore symbolizes a hero, which by its sharpness, industry land tenacity always comes on "Tsp", this aptly symbolizes Kaduna Polytechnic"s desire to excel in spread its services.

The hexagonal shape of the crest symbolizes the then six Northern States, the original owners of the Institution. The survey training school of the defunct Interim Common Service Agency (I.C.S.A) became incorporated in Kaduna Polytechnic under the names, Survey Unit in April, 1970, Department of Environmental Studies in 1974 and College of Environmental Studies in 1976. The College of Science and Technology (CST) building complex donated by the British Government was commissioned officially by the British High Commissioner to Nigeria, Sir David Hunt, on 21st November, 1968.

By 1990, the College had grown to fourteen departments from its initial five. The large size of the college necessitated the creation of the College of Engineering (COE) out of CST.

In 1968, the Polytechnic had only nine academic departments but today, the number had increased to thirty in four colleges. The colleges all located within Kaduna metropolis are:

The College of Science and Technology (CST) with eight department, the College of Engineering (COE) with six department, the College of Administrative and Business Studies (CABS) with ten departments and the College of Environmental Studies (CES) with six departments.

The CST and COE are located on the main campus in Tudun-Wada, CABS is located along Golf Course Road, Ungwan Rimi, with department on the Bye-Pass, while CES is along Aliyu Makarna Road, Barnawa.

The institution was owned and financed by the Nineteen Northern States, which were created from the defunct Northern Region. It was taken over by the Federal Government on 27thi August, 1991. The Board of Governors of Kaduna Polytechnic was up to august, 1991 made up of representatives of Nineteen "owner State Government", Universities and the Private Sector, it was responsible for the general supervision and control of the institution. The board is now known as the Governing Council. The Rector is the Chief Executive Officer of the Institution. In the performance of this duties, he is assisted by the Management Committee comprising the Deputy Rectors; Registrar, Bursar, Polytechnic Librarian, the College Directors, Director of Medical and health Services and the Director of Works.

The monumental growth and achievements, physically and intellectually have proved that the institution has maintained its spider image. The "Web", has spread from Nigeria to Africa and beyond.

The Table 1 below shows us the list of the Chairman Board of Councils of Kaduna Polytechnic from 1968.

1.8 Definition of Term

Advance Proposals:

Plan ahead of time for a scheme

Balance Sheet:

Written statement with details showing credit and debit.

Consultancy Services:

Given expert advice

Disbursement:

This can be from state or local government, also it can be from private organization.

Expenditure:

Spending or using of money on armaments amount expended.

F& GPC:

Finance and general purpose committee

Liabilities:

The state of being liable to pay taxes

Overhead Expenses:

Those expenses needed for carrying on work

Revenue:

Is known as government raises funds generally known as recurrent revenue (because it is raised annually) primarily for the maintenance of its services or for providing new one.

5.0 Summary, Conclusion and Recommendation

5.1 Summary

In Chapter One of this Study, a brief historical back ground of the Case Study of this research work i.e. Kaduna Polytechnic was given. The researcher went ahead to state the problems, objectives hypothesis, significance and scope and limitations of the study. The Chapter was concluded with the definition of some relevant terms.

Chapter Two review literatures and discussed more on the subject matter of this research work in Kaduna Polytechnic. The researcher proceeded to Chapter three where the methods of data collection mainly questionnaire and personal interview were started. More so, the research population, sample size, sampling and data analysis procedures were described.

In Chapter Four, an in-depth analysis of data was carried out which let to the testing of hypothesis stated in Chapter One and it also led to the findings as stated in paragraph 4.5.

5.2 Conclusion

From the finding enumerated above, we must not be deceived the way things are going, we may wake up day and find it difficult to get enough funds to run the institution, its not necessary for our institutions to find ways of generating its own revenue in other to sustain itself and not to depend on governmental subvention. As institutions in oversea countries have succeeded ingenerating between 40 45% of their recurred cost through various projects.
Perhaps one thing that is difficult for most of our institution is to think of ways to generate its revenue. Some example of means of generating revenue in institution includes:

Providing consultancy services or training needs analysis

Providing short courses of re-training for companies.

Letting he building for business or social meetings.

Selling the by-products of education programmes such as those colleges restaurant.

Income from contracts with the State or Federal Ministry of Education or other Institutions.

Establish and run guest houses, conference certain bookshop or similar commercial ventures and real estate.

Income from payments for transcript, payment for receipt and carry-over employment forms.

There are many more possibilities, start by marketing the institution skills and be prepared to inquires. It will be recognized that the universities consultancy units have taken over the Polytechnic the responsibility of tracing in which the Polytechnics have better expertise, so something must be done to reverse the situation.

"Sources and Uses of Revenue: in an institution, Case Study of Kaduna Polytechnic, Kaduna, this project will not go beyond this area.

Finally, educational management in a term work. Teaching and Research cannot take place effectively without financial support from the Bursary.

Accreditation, as a means of assuring the society of the effectiveness and efficiency of the institution through the product, the educated student is intended to remind management of its responsibility to the nation, it is hoped that the proprietor of new institution private or government or those already existing will take steps to ensure that their institutions are properly established and adequately funded to the tune shown in the education (National Minimum standard and establishment of institution) Amendments Decree 9 of June, 1993.

5.3 Limitation of the Study

The scope of the study is Kaduna Polytechnic in particular, for the period of five years in education and activities of the Central Administration. All data collection should be related to all of its units and other campus. In line with the topic

5.4 Recommendation

In order to achieve the desired control in the higher institutions we red that the Bursary Department should ensure that all purchase of goods and services are properly should ensure that all purchase of goods and services are properly authorized and approved by the appropriate authority before the goods are ordered and that the goods received or services rendered are properly checked against the L.P.O., Job and Control Order and services rendered in accordance with the contract signed by both parties. Those liabilities for all purchases are accurately recorded in the books of accounts and payments made in accordance with the agreed forms.

If the Bursary Department is to successes, it is recommended that the policy with the entire Department.

Similarly it should be in the position to notify other Department of any charges in financial policies of the government.

It should also promptly implement any changes that affect the staff and student welfare.

It should notify various departments of their balances monthly and quarterly and inform them where there are shortfalls.

The Department should in turn give the Bursary Department the necessary co-operation by adhering strictly to financial regulations, treasury circulars and internal checks and control introduced within the system.
Internal and External Auditors should make sure that they are doing their work effectively.

Government should improve the grants of the Federal Polytechnic to enable the institutions procure modern machinery for the training of the students and also carry out research.

The Federal Government should also make sure that subventions are released to institutions latest by 20th of every month in order to pay its staffs in time.

The workshop and laboratories in various Polytechnic should as much as possible be well equipped in order to teach the students practically and produce good middle manpower graduates.

The Federal Government should be given the Polytechnics giant contract to carry out research in various fields, e.g. Agriculture, Engineering, Geology, survey, Mineral Resources etc. as it is done in overseas. This will have the institution improve on their skills and also generate some revenue. However, regarding internally generated sources of revenue, the Polytechnic can do quite a lot.

Revenue generated is utilized for the smooth running of the institution in the course of achieving the institutional objectives for effective tapping of the source of revenue and proper utilization of the revenue generated.

The Bursar as Head of Bursary Department should be in attendance all meeting where financial matters including the award of contract are being discussed. His duty at such meeting is to give financial advice on how it will affect the institution.

The Bursary Department should be endeavoring to discharge its day to day activity.

Title

Declaration

Approval

Dedication

Acknowledgement

Abstract

Table of Continent

Chapter One

1.0 Introduction

1.1 Background of the Study

1.2 Statement of the Problems

1.3 Objectives of the Study

1.4 Research question

1.5 Significance of the Study

1.6 Scope of the Study

1.7 Historical Background of the Case Study

1.8 Definition of Terms

Chapter Two

2.0 Literature Review

2.1 Introduction

2.1 Definition of Accounting

2.2 Revenue Resources Available to Higher Education

2.3 Revenue Utilization in Accounting Procedure

2.4 Revenue Utilization in Tertiary Institution

2.5 Sources of Revenue in Kaduna Polytechnic

2.6 Usage of Revenue in Kaduna Polytechnic

2.7 Efficiency of Revenue Generated

2.8 Adequacy or Otherwise of Revenue

2.9 Conclusion

Chapter Three

3.0 Research Methodology

3.1 Introduction

3.2 Population and Sample Size

3.3 Sampling Techniques

3.4 Sources and Methods of Data Collection

3.5 Methods of Data Analysis

3.6 Justification for the Choice

Chapter Four

4.0 Data Presentation and Analysis

4.1 Data presentation, Analysis And Interpretation

4.2 Data Presentation

4.3 Data Analysis and Interpretation

4.5 Summary of Findings

Chapter Five

5.0 Summary, Conclusion and Recommendations

5.1 Summary

5.2 Conclusion

5.3 Limitation of the study

5.4 Recommendations

Bibliography

Appendix / Appendices

• Analysis Of Principals Managerial Competencies For Effective Management Of School Resources In Secondary Schools
• Comparative Analysis Of Pipeborne Water And Other Sources Of Water For Human Consumption (Independence Layout Locality)
• Comparative Analysis Of Pipe Borne Water And Other Sources Of Water Within Enugu Metropolis
• Analysis Of The Different Regular Sources Of Cooperative Finance
• Analysis Of Factors Contributing To Insufficient Facilities, Equipment, Machines, And Information Resources
• Comparative Analysis Of Sources Of Water And Water Borne Diseases
• Critical Analysis Of The Sources Of Revenue And Expenditure Pattern Of Local Government

• Public Administration Project Topics and Materials