THE CONTROL OF REVENUES IN THE HOTEL INDUSTRY

CHAPTER ONE

INTRODUCTION

 

  • BACKGROUND OF THE STUDY

It is generally accepted that the historical origin of the hotel and catering workforce lie in the class of domestic servants who maintained the homes of the ruling classes in the latter half of the 19th century and first half of the 20th century (Sanders, 1981a; Riley, 1985). According to Sanders (1981a) the decline in the number of domestic servant, in the part of the 20th century, coincided with the first significant growth in hotel employment. Many domestic workers were leaving their employment as a result of push factors such as lack of employment protection (which made domestic labour less attractive) and the improvements being made in domestic technology (that reduced the need for servants). Riley (1985 argued that the location of such domestic servant employment geographically mapped the growth areas for hotel and catering, notably in seaside resort, country Spas and large urban conurbations. Sander argues that this process of labour transfer meant that by the end of the second world war, conditions made it seem logical that substantial number of male and female domestic staff drift into the expanding hotel and catering industry (sanders 1981a: 83).

Since the 1940s the term hotel industry has come into common usage. It embraces the economic activities of undertaking aim to satisfy the demand for accommodation, food and drink away from home. To a greater or lesser extent many products of the group as well as other characteristics distinguish its entrepreneurs from others. They have a common function to supply those away from home with their basic needs. These are the considerations which combine this heterogeneous variety of units into a group, described here as an industry.

The hotel and catering industry is one of the largest employers in many developed and increasingly, less developed countries. Some 10% of the British workforce are engaged in hotel and catering employment representing some where between 2 & 2 and a half million person. The hospitality industry as it is now commonly referred to is the most important element in the wide tourism sector.

 

  • STATEMENT OF PROBLEM

Economists, frequently point to the heterogeneous nature of hotel industries. The industry comprises units ranging from the most humble café to the largest luxury hotel owned by a multinational corporation. Hospitality industry employers stress the catering people oriented nature of hotels and catering, generating a glamorous, mystic that is all too easily reinforced by images in popular media (wood, 1990 a).

Furthermore, the industry is often presented as a paragon of conservative virtues, low barriers to entry mean that, in theory at least, the hotel and catering sector is fertile grouped for the small time entrepreneur. Similarly, a view is promulgated of a career development in the industry as open and meteoritic: even the kitchen pan washer can rise to become general manager of the hotel with hard work and dedication. Supporting these powerful images in an educational system that post school students separate courses in hotel and catering management from those in general business studies, encouraging an insularity that is characteristics of the industry as a whole.

This insularity manifests itself in a variety of ways, most commonly in places from those connected with it for the industry to be regarded as unique and special requiring specialist skills and training, a special attitude of mind and body, specialist professional associations, and above all special academic understanding. Those engaged in hotel and catering industry cannot disguise the true nature of much hospitality industry employment, of how wages and poor working conditions, of exploitation and minimal job security, of monotonous yet demanding works of degrading and low status occupations.

The purpose of this research is to investigate and provide answers to such problem and question as:

  1. Do hotel industry control revenue appropriately?
  2. Can high rate of loss in a hotel industry be attracted to poor working conditions?
  3. Are the staff of hotel industry exploited?
  4. Is hotel industry of low status occupation?
  5. Do the staff of hotel industry see their jobs as minimally secured?
  6. Attempts to make suggestions which will be of help to any hotel that is not measuring up to expectation with regards to the control of revenue.

 

  • OBJECTIVES OF THE STUDY

It is clear that the persistence of hotel and catering industry as major employers cannot be explained in terms proposed by Riley and Sanders. Other contemporaries discussion of hospitality industry employment tend to be couched in terms of the attractiveness of such work to persons who are in some way socially and / or psychologically marginal (Mars, Bryant and Michell 1979). Thus, in explain the attractiveness of hotel and catering work in the face of poor formal rewards, Mars and Mitchell (1976) argues that hotel workers obtain satisfaction from their employment that is not easily obtained in other occupations, satisfaction which can offset low earnings. This view can be trace back to whyte (1948) who comments that: apparently there are many people who require a high rate of social activity in order to be happy in their work.

The restaurant fills this need for them (whyte 1948: 13) Thus, the objectives of the study are:

  1. Identify the problems in revenue control of the hotel industry
  2. Find out the extent to which hotels can reduce loss / fraud through auditing process.
  • Find out what really causes the procurement of loss in the business.
  1. Find out the extent to which loss can occur in a hotel industry
  2. Make recommendations / suggestions that can go a long way to influence the internal control system and move things into normality.

 

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Jul 24

ACCOUNTING PLANNING AND CONTROL KEY TO EFFECTIVE MANAGEMENT

ACCOUNTING PLANNING AND CONTROL KEY TO EFFECTIVE MANAGEMENT A CASE STUDY OF OWERRI MUNICIPAL

CHAPTER ONE

  •  INTRODUCTION:

The process of managing a business or an organization consists of the basic elements of planning, control and decision making. Planning and control are parts and parcel of   our daily likes. Planning and control of cost and operations is the key to good management. Accounting  control is a process of developing plans for a company’s    expected operations to help to carryout those plans.

Accounting planning has to do with setting out aims and objectives to be achieved over a period of time and control monitors how well the aims and objective are achieved. The preparation of a company’s finance is the single important aspect of its success. As a tool of management, it can increase the efficiency of the organization at a while since all the departments are involved. The accounting planning and efficiency are not achieved by an organization if they are not properly financed. The efficiency and effectiveness of any organization, therefore depend on a number of factors which may be categorized as clarify of purposes, management, planning, control and communication.

There is a need to have a clear knowledge of the objectives of the organizations, otherwise it will not be possible to identify goals set target for their achievements in form of planning, control   and management of its finance.  accounting  management has to do with planning, controlling, acquiring and utilizing of funds in a way that maximized the efficiency of the firm, most especially, (finance is the evaluation and acquisition product assets, procurement of funds and disbursement of which involved funds). The finance received by any business may be influenced by the followinFixed assets necessary for producing and distribution of products e.g. plants and machines.

b)Raw materials plants and miscellaneous supplies to purchase.

C)Wages and other expenses to be paid.

There are alternative involved in  accounting  decision which include the use of internal and external source. The source is mostly used for the firms operation and should not be over looked when planning finance. They are generated from operation or retained in current assets. The external sources are made up of three main types namely: short term, medium term which consist of back   loan, hire purchase and sale and lease back equipment.  Long term consist of debenture with a fixed charge or floating charge.

The need for Accounting planning arises becauseAccounting resources are limited and costly and even where the resources are available; the areas into which they could be applied to make profit are diverse.  Planning and control acts as a device that   enable management to anticipate changer are adopting it. No business exists without this concept and success in business is proportionate to its planning and skill with which it is controlled.

  • BACKGROUND OF THE STUDY

Owerri municipal council

Owerri municipal council officially came into existence on December 5, 1989 during the regime of Gen. Ibrahim Babangida. It is striking to note that the new Owerri urban district was created under   eastern region legal notices No 218 of 1955. Further in 1958 it was renamed country council and in 1960 it was properly called local government. In 1966, East central state was created and the local system was abolished and civil war broke out.

After civil war, in 1971 the local administration was called decision administration and Owerri   division was created comprising the present Owerri municipal, Ngor  okpala L.G.A, Owerri north L.G.A and  Owerri west L.G.A.  in 1976,  under the murtala Mohammed  state  creation  exercise, Owerri suddenly

 

bounded bank into  prominence and it regained its lost glory by becoming the capital of  Imo state   with  the development trappings  associated  with the New role.

Another major local government  review  headed  by chief  Arthur  mbaneto  was  carried  out during  the regime of Gen. Ibrahim  Babangida and on December 5, 1989, the federal government gave Owerri urban, the original Owerri people  a municipal council area which  comprises the following villages: umuoronjo, Amawom, umuonyeche, umuodu and umuonyina popularly called Owerri- nchi-ise. Other areas included are: The federal and state housing estates, as well as commercial and industrial layout. Owerri municipal is now seriously  assuming the regional head quarters of the East, with the federal government  locating most of its zonal offices  in Owerri, viz: customs, immigration, equally followed suit because of  its strategic location in the heart of Imo state.

According to 2005 national causes figure, Owerri municipal is tentatively put to be 127, 213, where 62, 990 are male and 64, 223 are female. However, this projection has almost been double. Owerri municipal council is strategically located at the center or heart of Imo state.  This has caused its dominance of other semi-urban L.G.A.  In Imo state to suffer and upsurge in population and traffic congestion everyday. Reasonably, the federal and state government as well ass non-governmental and international organizations intervene appropriately: its peaceful nature will result to total clean-lines as it has assumed for now.

  • STATEMENT OF THE PROBLEM:

The problems associated with this study are the following:

  • Inadequate fund: The sources of revenue of some organization (local government) are just too limited for their commitments. Consequently, they would require subsides from the state government to execute capital project.
  • Lack of qualified staff: This is true of most local government particularly the professional cadre. The problem is not unconnected with the unattractive conclusion of service to this cadre in the local government as compares with colleagues in the state/ federal services.
  • Lack of basic infrastructure: Absence of skilled manpower to manage and direct the affairs of local government to manifest in the absence of basic infrastructure.
  • Some organizations are not doing well during their operations due to wrong accounting planning, control and also poor management.
  • OBJECTIVE OF THE STUDY:

accounting  planning and control is the key ingredients of successful management at all levels. The objectives of this study will be:

  • To assess the effectiveness of forecasts of cash receipt and disbursement.
  • To evaluate how the allocation are being carried out and evaluated.
  • To find out the borrowing requirement of organization
  • To find out how organization plan their investment programmes.
  • To know how efficient and effective operation which have been adopted and approved by government to strengthen the accounting base of the council. E.g. Revenue derivatives, slaughter slab fees, shops and kiosk rate etc.
  • To know and assess the extend of lending, bank borrowing, hire purchase, sale and lease, bank in the council.
  • RESEARCH   QUESTION:

To carry this research effectively, certain   questions were asked in order to ascertain the relevant information needed. Such questions are:

  • How does the management of Owerri municipal council, Imo state attend to the problem of accounting planning and control in their organization?
  • How does planning and control enhance management decision?
  • Enumerate the efficiency of management in respect with accounting planning and control.
  • What are the techniques for  accounting  planning and control?
  • How dose planning and control boost an organizational goal.
  • What are the benefit management drive from planning and control?

1.5 RESEARCH   HYPOTHESIS:

In order to ensure that the conclusion made from the study is free from bias of any sort, the hypothesis are formulated and tested.

HO: Null Hypothesis

HA: Alternative Hypothesis

HO: There is no relationship between  accounting  planning and control to management efficiency.

HA: there is a relationship between AccountingAccounting planning and control to management efficiency.

  • SIGNIFICANCE OF THE STUDY:

The important of this study will be in the development of method using Accounting planning and relevant policy decision which if well applied will increase their efficiency and effectiveness. It will also make the government of various areas to know the need of setting a target and how to achieve those targets made and controlling those plans in order to ensure those targets are achieved and monitored. Some importances of Accounting planning are:

  • Accounting planning and control helps  management anticipate and

Systematically prepare for future resources.

  • Planning helps Owerri municipal council keep on top of the ever present charges in information technology.
  • Planning helps to develop much users and the organizations needs.
  • Planning and control facilitates management approval and users view

 

  • SCOPE/ DELIMITATION OF THE STUDY:

Here, we up how managerial function can assist the local government outline the things to be alone, the method to be adopted to accomplish the purpose and the activity within allowable limits as measured from expectations. These expectations may be implicit or explicitly stated in terms of objectives, plans, procedures or rules and regulations. This study covers Owerri municipal council but the result case shed is generalize for other council in Nigeria

  • LIMITATIONS OF THE STUDY:

This study was limits by the following:

  • Time constraint is against the much demanding nature of the work in the areas of visits the organization of study.
  • Unavailability of enough Accountingbanks up necessary for the required achievement of the objectives of the tasks.
  • Uncompromising attitude of some staff.

1.9 DEFINITIONS OF TERMS

  • Finance: This is the evaluation and acquisition of productive assets, procurement of funds and disbursement of funds.
  • Efficiency: this is the effective achievement of result. It is the ratio output to input. This has to do with the equality of people in which the resources are required to achieve an organizational goal.
  • Planning: This is setting centre of an organization in examining the future and scheduling causes of action.
  • Management: This is a process of achieving organizational goals or objectives through the use of people and other resources of the organization.
  • Control: this is the means to ensure that organizations are achieving their objectives.
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Jul 24

AN EVALUATION  OF INDUSTRIAL EMISSION DAMAGE FUNCTION REGULATION ,IMPLEMENTATION AND ITS SUITABILITY IN THE CONTROL OF AIR POLLUTION IN THE NIGERIA OIL AND GAS INDUSTRY

AN EVALUATION  OF INDUSTRIAL EMISSION DAMAGE FUNCTION REGULATION ,IMPLEMENTATION AND ITS SUITABILITY IN THE CONTROL OF AIR POLLUTION IN THE NIGERIA OIL AND GAS INDUSTRY(A CASE STUDY OF ELEME PETEROCHEMICAL INDUSTRY PORTHARCORT RIVERS STATE)

 

ABSTRACT

The broad environmental issues faced by the oil and gasexploration and production industry are manifested at bothlocal and global levels. They include: habitat protection andbiodiversity, air emissions, marine and freshwater discharges,incidents and oil spills, and soil and groundwater contami­nation. Research Methodology: The aim of this chapter is to briefly intimate the reader with various research designs used by the researchers. And Chi-square were used to analyse the techniques used.

Presentation, analysis and interpretation of data: This chapter deals with the presentations, analysis and interpretation of the da8ta collected. The data collected will be used to answer the research questions and test the hypothesis.

In conclusionhave gone ahead to erect effective legal regimes in the form of laws and regulations to control and reduce this environmental menace.

CHAPTER ONE

INTRODUCTION

The oil and gas industry is truly global, with operations con­ducted in every corner of the globe, from Alaska to Australia,from Peru to China, and in every habitat from Arctic todesert, from tropical rainforest to temperate woodland, frommangrove to offshore.

The global community will rely heavily on oil and gassupplies for the foreseeable future. World primary energyconsumption in 1994 stood at nearly 8000 million tonnes ofoil equivalents (BP Statistical Review of World Energy, June1995); oil and gas represented 63 per cent of world energysupply, with coal providing 27 per cent, nuclear energy 7 percent and hydro-electric 3 per cent. The challenge is to meetworld energy demands, whilst minimizing adverse impact onthe environment by conforming to current good practice.

The exploitation of oil and gas reserves has not alwaysbeen without some ecological side effects. Oil spills,damaged land, accidents and fires, and incidents of air andwater pollution have all been recorded at various times andplaces. In recent times the social impact of operations, espe­cially in remote communities, has also attracted attention.The oil and gas industry has worked for a long time to meetthe challenge of providing environmental protection. Muchhas already been achieved but the industry recognizes thateven more can be accomplished.

The United Nations Conference on Environment andDevelopment (UNCED) held in Rio de Janeiro in June1992—’The Earth Summit’—focused world attention onthe close links that exist between the environment and socio­economic development. The Summit reviewed global envir­onmental issues and resulted in two conventions (theFramework Convention on Climate Change and theConvention on Biological Diversity), as well as the RioDeclaration and Agenda 21—plan of action. The centralmessage of Agenda 21 is one of interdependence and cross-sector partnership, and the plan of action provided a newapproach to the wide-ranging socio-economic and environ­mental challenges facing the world community.

The broad environmental issues faced by the oil and gasexploration and production industry are manifested at bothlocal and global levels. They include: habitat protection andbiodiversity, air emissions, marine and freshwater discharges,incidents and oil spills, and soil and groundwater contami­nation. The industry has responded to these issues. The chal­lenge is to ensure that all operations conform to currentgood practice.

The continual evolution of the environmental agendamust also be taken into account. Industry places muchemphasis on establishing effective management systems andhas gone a long way to ensure that environmental issues arekey components of corporate culture, with the issues relatedto health, safety and environment often being consideredtogether, because they have much in common.

BACKGROUND OF THE STUDY

The Plant commenced operations with a total number of 1,376 staff, made up of 138 expatriates Technical Back-Up Services (TBS), and 1,246 Nigerian Staff.

However, in 1999 EPCL started a gradual phase-out of the TBS Personnel as most Nigerian staff gained adequate experience on the operation and maintenance of the Plants.

At 138 expatriate TBS Personnel the cost of about $2 million per month was abominable as it had negative impact on the cost of operations and cash flow for the Company. Today, the cost stands at about $0.64 million for 43 TBS Personnel.

Historically, the Eleme Petrochemicals Complex Project was started in the Project Engineering Division of the NNPC under Mr. S. A. Kufeji as the General Manager, championed by Dr. E. I.Onyia, as Manager Petrochemicals.

In early 1982, the Petrochemicals Division of the NNPC was created, with Mr. 0. 0. Lolomari as the General Manager, while Dr. E. I. Onyia continued his lead push for the petrochemicals programme. Later that year, NNPC signed the Consultancy Agreement with Foster Wheeler International Corporation of Reading, UK.

Following a major re-organization of NNPC in October 1985, Dr.T. M. John was appointed the co-ordinator of the Petrochemical Sector. During another restructuring of the NNPC in 1988, Dr. T. M. John became the first Managing Director of Eleme Petrochemicals Company Limited (EPCL).

1.4   OBJECTIVE OF THE STUDY

The main objectives of this element of industrial fire engineering in the prevention of fire haroccus are as below:

  • To provide an orderly emergency response plan for all industrial workers.
  • To ensure all exit routes, emergency staircases are not obstructed and can be used in an orderly fashion during emergencies.
  • To ensure fast, organised and smooth evacuation of industry during emergencies.
  • To train fire engineers and emergency evacuation officers to conduct their duties successfully.
  • To test the working conditions and effectiveness of all fire and emergency equipment for all industrys in Imo State.

 

Purpose and scope

The purpose of this document is to provide an overview ofenvironmental issues in the oil and gas exploration and pro­duction industry, and of the best approaches to achievinghigh environmental performance in all parts of the world. Itshould be noted that it covers only exploration and produc­tion activities and does not discuss large scale storage andtransportation issues, or downstream processing. Nor does itattempt to cover social development issues in detail,although they are mentioned as important elements in thetext, alongside ecological issues.

This document provides an overview for key stakehold­ers in industry and government.

STATEMENT OF THE PROBLEMS

Air pollution has been becoming a necessary evil with rapid industrialization and urbanization around the world, after it results in kinds of human health problems, such as ophthalmic, respiratory and cardiovascular diseases (Brunekreef& Holgate, 2002; Giles et al., 2011; Gudmundsson, 2011;Jamrozik & Musk, 2011; Miller et al., 2007; Nandasena, 2010). The direst threat posted by air pollution may be its hard controlling caused by its strong flowability. Either could it be spread from one source location to a larger region, even the whole planet, and the sweeping radiation pollution in air originated from Fukushima in Japan is unfortunately in this case, or conversely diluted with changes of climatic conditions (Sample, 2007).

Among all types of treatments of contaminants, including microbial bioremediation, phytoremediation stands out for its benefits yielded from self-maintaining, soil stabilization and other advantages to meet greater public approval (Doty et al., 2007). And different phytoremediation process is responsible for specific pollutant. Air pollutants can be divided into anthropogenic and natural pollutants according to their sources, or primary and secondary pollutants, which stem from reactions of primary pollutants, when taking production process into account (UNEP, 2004).

1.7   RESEARCH HYPOTHESIS

A hypothesis is a proposition that is stated in testable form and prediction of particular relationship between two or more variables.

Ho:   There is no significant relationship between Ergonomic specification and the control of industrial accident rate in agro allied industry

Hi:    There is great significant relationship between Ergonomic specification and the control of industrial accident rate in agro allied industry

 

1.6   RESEARCH QUESTIONS

The following questions will be treated in the course of this research work thus:

  1. What types of work are most likely to pose fire outbreak in the industry?
  2. Can carelessness of the industrial workers in the industry result to fire outbreak
  3. If yes what are the factors?
  4. Can we control fire outbreak in our industry?
  5. Do you believe that Ergonomic specification help in the control fire outbreak in the industry?

RESEARCH LIMITATION

A work of this nature is not easy to consummate or accomplish. And, as a result of financial problem, time constraints, apathly on the part of respondents and bureaucratic procedures involved in releasing data seriously affected the study.

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Jun 15

ENHANCING FINANCIAL ACCOUNTABILITY AND TRANSPARENCY IN NIGERIAN PUBLIC SECTOR

ENHANCING FINANCIAL ACCOUNTABILITY AND TRANSPARENCY IN NIGERIAN PUBLIC SECTOR (A case study of selected Public Sector Organizations in Enugu State)

ABSTRACT

The Nigerian public sectors like their counterparts in the private sector have neglected fundamental principles that should be adhered to in ensuring accountability and transparency in their various sectors. This research work is aimed at looking at the various ways in which the Accounting officers: – Chief Executives, Accountants, Auditors and in fact the Financial controllers in our country help to enhance financial accountability and transparency in the public sector. A framework for understanding the relationships between the major financial administrators and their subordinates in Public sector financial accountability and transparency was established. A questionnaire, interviews and research methodology was adopted for this research. Each question was examined as a whole to obtain an understanding of the opinions and perspectives of the respondents from each individual, organization as to what are considered to be the important factors in this study. Then, chi-square was used to test the five hypothesis propounded. The results suggested avenues of enhancing financial accountability and Transparency in the public sector. The major findings from the survey are: (1) Public Financial Managers do not enhance the implementation of financial accountability and transparency in the Nigerian public sector. (2) Financial accountability and transparency is not yet improved in the Nigerian public sector and. (3) Public financial managers do not adhere to the laid down rules for the management of accountability and transparency in the Nigerian public sector. Finally the research concluded with the following major recommendations: The Nigerian value system must be changed so as to stamp out dishonesty and the use of double standard in handling government matters and that Regular workshops, seminars and trainings should be organized on regular basis for those public accountants who rose through the ranks. This will make them fit into the accounting duties properly.

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Grand corruption is a cancer that has eaten deep into the fabric of the Nigerian polity. The general global perception about graft in Nigeria is that it is a pervasive phenomenon. It is generally acknowledged that corruption and corrupt practices are endemic and systemic in both the public and private sectors of Nigeria. Corruption has surely had debilitating effects on the country as it has had elsewhere. It is encountered in the routine processes of governance both in public and private sectors, and it pollutes the business environment generally. It equally undermines the integrity of government and public institutions.

Nigerian poverty in the midst of plenteous natural resources is as a result of bad leadership, Leadership without skill and character. In formal democracy bad leadership is to a long extent a product of flawed electoral system. So an incredible electoral system is the beginning of poor leadership. Thus good governance is identified as a critical ingredient of political stability. However at the heart of good governance i.e. transparent governance is accountability. That is the idea that the governed retain the real opportunity to know what the governors do and call them to order when they derail. A country’s journey towards good governance in reality is measured by how much the management of the public policy is open to the scrutiny of the people the people are always disconnected with the leaders because of the institutional deficiencies of liberal democracy. The culture of accountability and its institutions are strong protection against conflicts and instability.

Nigeria like the rest of African countries is caught in cusps of many conflicts including conflicts over political power. The real nature of political conflicts in these societies is that the norms and procedures for attributing between varying claims to power are incapable of restraining the tendency the overall system. Conflicts over access to political power are compounded by the oil economy which has created the resource course as a content of corruption, means that most politicians are interested in access to political powers as a pretext for access to the resources tap, weak accountability framework therefore makes it easy for leaders to gain personal control of public fund and utilize same for personal needs. The main problem with Democracy in Nigeria is lack of accountability and transparency, both cannot be easily separated.

From a relatively mild manifestation at Nigeria’s independence, this cancer grew rapidly at an alarming rate through the Second Republic (1979-1983). During the epoch of military misrule, it became institutionalized and assaulted every facet of Nigerian socio-political life. In the words of Gboyega (1996:3), “it was as if the government existed so that corruption might thrive”. Corruption have accounted for the distortion and diversion of government welfare programmes and undermined the goals and vision of development. Indeed, it has continued to undermine the effectiveness of the political process, especially the capacity of the elections management body, the Independent National Electoral Commission (INEC) to achieve and institutionalize free and fair elections.

Accountability is a concept deeply rooted in political power and democracy. It is the bridge linking the People or the electorate with the Executive to whom enormous power has been entrusted. Accountability is the public servants report card on how public money is spent and used on behalf of the people. It therefore goes without saying that the notion of accountability and good governance are very connected. In fact, the first evidence of bad governance is the absence of accountability. In other words, it means saying what you mean, meaning what you say and doing what you say you are going to do – taking responsibility for words and actions.

Transparency and accountability are critical for the efficient functioning of a modern economy and for fostering social well-being. In most societies, many powers are delegated to public authorities. Some assurance must then be provided to the delegators that is, society at large that this transfer of power is not only effective, but also not abused. Transparency ensures that information is available that can be used to measure the authorities’ performance and to guard against any possible misuse of powers. In that sense, transparency serves to achieve accountability, which means that authorities can be held responsible for their actions. Without transparency and accountability, trust will be lacking between a government and those whom it governs. The result would be social instability and an environment that is less than conducive to economic growth.

Accountability is therefore the requirement that officials answer to stakeholders and publics on the disposal of their powers and duties, act and criticisms or requirement made of them and accept some responsibility.

Accountability is an ethical concept – It concerns proper behavior, and it deals with the responsibility of individuals and organizations for their actions towards other people and agencies. The concept is used in practical settings, notably in describing arrangements for governance and management in public services and private organizations. The term is often used synonymously with concepts of transparency, liability, answerability and other ideas associated with the expectation of account giving.

Accountability has two (2) forms. There is Vertical Accountability – which is the accountability of government to the voting public through the ballot box. This is closely allied with the capacity of the electorate to remove a government that fails to account to them or deliver services. It assumes the existence of a political culture where the individuals vote counts. The other form of accountability is Horizontal Accountability – which is the accountability of government institutions to anti-corruption and anti-graft agencies. It also includes the accountability of the public sector to statutory auditing agencies; oversight committees of the state assemblies and the National Assembly; human rights agencies and the media. From the foregoing, it is clear accountability is basically a feature of democratic governance. It is characterized by answerability and openness.

Accountability requires a system to monitor and control the performance of government officers and organizations particularly in relation to quality inefficiencies and abuse of resources. Financial accountability and transparency are interrelated concepts and mutually reinforcing a more effective approach to address the challenge of corruption in Nigeria.

According to MSN Encarta, Transparency is a state or quality of being transparent.  Transparency in its broadest term literally means something that can be seen through. Therefore when we talk of             Transparency in terms of government spending, we are referring to government at all levels opening its books to the public so that tax payers can see exactly where the money is going or being spent. It also ensures that the citizens’ funds are spent efficiently by making all decisions in the open and on the record.

Transparency means that citizens can review and question policy makers’ decisions, examine document root out inefficiency and hold officials accountable for the way revenue are spent.

Therefore, transparency is characterized by the following – a disclosure system; access to information; openness to public participation; absence of undue secrecy; readiness to face and accommodate legitimate scrutiny and humility on the part of Executive office holders through readiness to answer questions raised by citizens. Transparency is impossible or very difficult where freedom of or access to public information is not guaranteed in law or statute.

 

The issue of financial accountability and transparency in Nigeria is one that cannot be readily             grossed over, since they constitute pivotal features of a respectable government. Besides grand corruption that has eaten deep into the fabric of the Nigerian economy. It is generally acknowledged that corruption and corrupt practices are endemic and systematic fraud, corruption and the likes have seriously affected the level of accountability and transparency in Nigeria. The cry of the majority of the common man had been, “What is the problem of the financial management system” that government officials can defraud the local, state or national treasury and not held accountable until their regimes have ceased to exist.

In the recent years, fraudulent activities, economic mismanagement, corruption, lack of accountability and transparency have been the bane of the economy. More so, it is evidenced and undoubted that crimes such as embezzlement, over invoicing, cyber crimes, fraudulent and over production and diversion of product, currency counterfeiting, illegal capital transfer, illegal currency manipulation, large scale banking and corporate crime have now dented Nigerians international image and tagged her a financial terrorist consequent upon this the federal government adopted a strategy to extinguish completely its further perpetration.

In 2003, President Olusegun Obasanjo established the Economic and Financial Crimes Commission (EFCC) prior to the promulgation in 2002 by an act of the National Assembly. The EFCC acts as law enforcement Agency to investigate financial crimes such as advance fraud (419 frauds) and money laundering. The EFCC investigates people in all sectors who appear to be living above their means and is empowered to investigate and prosecute money laundering and other financial crimes. The EFCC was later amended in 2004 to sanitize the Nigerian Economic environment by enforcing all economic and financial crime laws. In June 2009, the Senate Committee on Drugs, Narcotics and anti-corruption moved to amend the act by setting up the Independence Corrupt practices Commission (ICPC). Both the EFCC and ICPC was to act independent of the Executives

Corruption and looting of public treasury was a major problem in the public sector accounting. Report from office of statistics Lagos show that our accounting records are balanced in arrears and our financial records are hardly balanced daily, weekly, quarterly, half-yearly and yearly basis as appropriate. This was evidenced by Chief Olusegun Obasanjo during his first maiden address to the nation immediately he was sworn-in as the President of the federal republic of Nigeria on the 29th day of May 1999. He stressed that accountability, probity and transparency has suffered a lot set-back especially in the civil service. He therefore suggested that some of the best ways to eliminate this ill in the Nigerian public service are;

  • The effective use of public accounts;
  • The use of effective legislation;
  • The effective implementation of government policies and programmes;
  • The effective use of auditors of the federal republic of Nigeria among others.

He therefore concluded by saying “when we consider how the public accounting and auditing can grow and develop, we are concerned not only with helping the public accountant or the auditor fill their position, but also with helping the whole economy and the organizational structure grow and develop” (Obasanjo). The concept should therefore make it wise for us to look more closely at the relationship between Nigeria and other countries of the world. And for Nigeria to be recognized as a corrupt-free economy, the accounting profession must be in a position to balance the financial records of the federal government daily, weekly, monthly, quarterly, half yearly or yearly basis. This is because members of the public and the international community want to see results, see the economy grow and the professions produce the final output.

 

  • Statement of the Problem:

Public sector accounting in a corrupt society is a very big problem to the economy of the nation. This is because the financial records do not reflect the true and fair view of the accounting records. There are lots of collaborations in the utilization of public funds to the extent that funds allocated through the budget are not properly utilized. The annual for the public (government) income and expenditure are at times late. Whatever is the position with timeless of delivery, these budget are never reviewed in time and deviations are not investigated to ensure prompt remedial action which will re-direct and re-orientate plans towards budgeted levels.

Another shortcoming is the threat to continually of production of qualified accountants who will replace older retiring hands. This systems form a number of factors like inadequate infrastructures (for example, training materials, computers, library facilities etc) necessary for such programmes. This point drives to a large extent from the very poor and unrealistic remuneration paid to the practicing accountant in form of salary.

Public accountants are placed on government determined salary scales, unlike their professional chartered counterparts whose fees for auditing and other professional services rendered are self determined. The implication of the forgoing deliberation is that while a professional body like Institute of Chartered Accountant and its various programmes aimed at monitoring more closely the curriculum of their counter-parts in the government employment are poorly taken care of.

Another shortcoming is the quota system in the federal service. The quota system has introduced mediocre and unethical practices in the accounting profession. In a bid to fill in vacant positions in the federal civil services, most of the unqualified personnel (mainly from certain ethnic group of the country) are employed to the detriment of the job, hence giving loopholes for embezzlement and financial misappropriation. Merits were thrown to the winds.

In fact, meritocracy has given way to mediocrity. All this, helped the administrators and some members of the society to look down on the accountants as mere “house helps” and “rubber stamp” in the system.

 

  • The Objective of the Study:

The principal objective of this research is targeted towards determining the ways of enhancing financial accountability and transparency in the Nigerian Public Sector. The objectives of the study can be sub divided as stated below:

  1. To determine the degree of implementation of financial accountability and transparency in the public sector especially in the federal civil service.
  2. To determine the best way to improve on financial accountability, and transparency in Nigeria Public Sector.
  3. To determine the actual role of the public financial managers in the enhancement of financial accountability, and transparency in Nigeria Public Sector.
  4. To determine whether public accountant in collaboration with their chief executives utilize judiciously all the allocations made from the budget.
  5. To supervise the extent at which the financial controllers or Supervisors checkmate the Executives who the funds are allotted to.

 

 

  • Research Questions:

The research question is poised to provide answers to the following questions.

  1. Do the financial managers enhance the implementation of financial accountability and transparency in the public sector?
  2. Are their ways of improvement in financial accountability and transparency in the Nigerian public sector?
  3. Do public financial managers adhere strictly to the laid down rules for the management of accountability and transparency in the Nigerian public sector?
  4. Do public financial managers and their Executives utilize judiciously all the allocations made from the budget?
  5. Do the Supervisors adequately checkmate the activities of the financial managers and the Executives?

 

 

  • Research Hypothesis:

HO1 –    Public Financial Managers do not enhance the implementation of financial accountability and transparency in the Nigerian public sector.

HO2 –    financial accountability and transparency is not yet improved in the Nigerian public sector.

HO3 –    Public financial managers do not adhere to the laid down rules for the management of accountability and transparency in the Nigerian public sector.

HO4 –    Public Financial Managers and their Executives do not utilize judiciously all the allocations made from the budget.

HO5 –    The Financial Controllers or the Supervisors do not adequately checkmate the activities of the financial managers and the Executives.

 

 

  • Significance of the Study:

The significance of this study can be viewed from two major standpoints – practical and academic

  1. Practical Significance:

This study will be of immense help to the policy makers in the federal civil service of Nigeria who will be able to know and assert the adequate role of the public accountant in the service with a view to showing up the programmes of financial accountability and transparency of the government administration.

The policy makers should see the public accountants as playing the role of a coach who exposes the skills and tactics and allows the players to play the game. This is because in everything an individual or a group of individuals in varying professions, do, there is a reason and purpose. For example, in a private organization this reason or purpose is referred to as an objective or goal. Therefore, government (public service) whose realm of operation is popularly referred to as the public sector has as its objective the governance of her people. This implies the tremendous responsibility to grannies resources and allocates same towards fostering economic growth and improving the standard of living of the citizens of the nation. Again government is empowered by the laws of the land (constitution) to engage in contractual arrangements for the purpose of increasing the resources available to her in order to meet the requirements of governance, since it holds the wealth of her nation in trust for that nation. To this extent, the government of a nation owes her citizens the duty to account for the stewardship in the effective disposition of the resources entrusted to her (This is accountability).

For the government or the public sector to discharge her responsibility or stewardship effectively, there is the need to maintain proper records of the value of all programmes, activities and services, synthesize and analyze the effect of government financial transaction, classify, summarize and communicate such information for purposes of future decision-making or assessment of performance.

 

 

  1. b) Academic Significance

This study, its extensive literature review and recommendations it will contribute immensely to students, future researchers and academicians knowledge on the issue of enhancing financial accountability and transparency in the Nigerian Public Sector.

 

  • Scope of the Study:

This study attempts to establish (i) whether the directors of departments utilize judiciously all the allocations made available to them or not; and (ii) to examine the impact of public accountants in the implementation of financial accountability and transparency in the public Sector.

Sequel to this the researcher shall investigate some Federal Ministries and Parastatals in Enugu State. Five of such Federal Ministries and Parastatals were selected and the financial accountability and transparencies of their Executives and financial officers will be investigated.

 

  • Limitation of the Study:

As part of the research experience by researchers all over the globe, certain limitations and unforeseen problems hindered the effective and smooth collection of data for the work. These in specific terms include lack of time and difficulties in obtaining needed data relevant to the subject matter from top management; inadequate working fund; respondents’ poor altitude to questionnaire.

Time constraint: Time was really a big constraint in carrying out this research work as the researcher had to combine the collection of materials for the study with official government work, family and religious commitments other academic and social activities.

Financial constraints: The finance needed to carry out this work is too much and cannot be afforded by the student. Thus these to an extent hampered the success of this work.

Respondents Attitude: The Respondents as it is well known are not willing to divulge important information. Tracking of the Executives in their offices and their willingness to grant interviews due to their tight schedules all contributed.

 

  • Definition of Terms:

Corruption: This is the use of entrusted powers for private gain. This is the most common crime in the public service and takes many forms. For instance, a public official asking for, accepting bribe before carrying out any activity or asking for gratification after rendering a service and a public official diverting the ownership of government property. Other forms of corrupt activities include embezzlement, nepotism, bribery/kickbacks, extortion, illicit enrichment, questionable links between government agencies and private business etc. The perpetration of corruption in the public service is facilitated through the use of money, valuable goods or gifts, favours, promises etc.

The incidence of corruption is primarily a function of greed facilitated on the strength of the incentives, range and scale of opportunities, availability of means and the risks of punishment.

Corruption is propelled by bad governance where controls are weak and decision-making is opaque, arbitrary and lacking in accountability.

 

Embezzlement: This is the fraudulent appropriation by a person to his own use of property or money entrusted to that person’s care but owned by someone else. For instance, a clerk or cashier can embezzle money from his employer; a public officer can embezzle funds from the treasury. In embezzlement, an actual conversion must occur and the embezzler must have had the right to possess the item, and used that position of trust to convert the property.

Embezzlement sometimes involves falsification of records in order to conceal the theft. Embezzlement becomes much easier if one person is responsible for keeping track of billing, receiving and recording payments as well as managing accounts. Some of the most common methods of embezzlement are the under-reporting of income (especially for income generating public institutions) and the creation of ghost employees.

 

Bribery: This is the offering, giving, receiving or soliciting of something of value for the purpose of influencing the action of an official in the discharge of his or her public or legal duties. A bribe can consist of immediate cash or of personal favours, a promise of later payment, or anything else the recipient views as valuable.

 

Money Laundering: This is money that is made through illegal activities which needs to be placed into the Banking system so that it can be integrated into the economy and be made legitimate. Criminals have developed endless array of schemes in the process of converting ill gotten wealth from “dirty” to “clean” funds and the banks is in the potential for complicity and violation of money laundering prohibition requirements.

 

Fraud: The crime of deceiving somebody in order to collect money or goods illegally. It also means a person who pretends to have gifts and abilities, skills etc that he or she does not really have to receive others.

 

Investigation: – This means a special kind of examination of accounts or records carried on by an investigator with the predefined purpose according to the necessity of the situation (Chike Nwoha,:303, 33).

 

EFCC: This is an acronym for Economic and Financial Crimes Commission. It is a commission created by an act of the National assembly in 2002 and was amended in 2004. It is charged with the responsibility of investigating, and enforcement of crime, all laws against economic and financial crimes in its entire ramification. The commission is also designates to Nigeria Financial Intelligent Unit (NIFU) It is an autonomous central national agency, domiciled within EFCC with the responsibility of receiving and analyzing financial information

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