AN EVALUATION OF THE OFFICE OF ACCOUNTANT

GENERAL IN THE MANAGEMENT OF PUBLIC FUNDS

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 Abstract

An evaluation of the Office of Accountant General cannot be over

emphasized in the public parastatals. That is why the researcher have taken
the pain to carry out an in-depth research into or on ‘’An Evaluation of the
Office of Accountant General in the Management of Public Funds’’. The
research work begins in a way of introduction, background to the study,
statement of problems, objectives of the study, significance of the study,
scope and limitations and definition of relevant terms as applied the
research project. In chapter two effort was made to cover very
valuable/important and purposeful aspect of the office of accountant
general as it contains as much as possible the meaning of accounting. It
covers the roles and functions of the accountant general office. It studies
the various departments in the office and reveals a lot of findings as to
working of the department through the various data collections method.
The researchers has adopted a descriptive design which implies that the
study concerned itself with a systematic description of data related to the
role in the management of public funds. The choice of the design is to
facilitate easy and smooth investigation. In the findings of this research
reveals that one of the problem affecting the office of the accountant
general is that; it cannot perform its duties to the latter, because most of the
qualified accountants who would have performed the needed accounting
jobs leaves the public service early. The main reason why the accountants
who are qualified leave the services early is because there are frustration by
system in which public government accounting is being operated by such
accounts or that is to be a given such qualified jobs as their counterparts in
companies or other private organizations is not considered by the office of
the accountant general. The researchers made some recommendations as to
how the problem observed in the office could be tackled which states that
the accounting system of the office of the accountant general in all
department should be computerized.

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 TABLE OF CONTENTS
Title page . . . . . . . . i
Approval page . . . . . . . ii
Dedication . . . . . . . . iii
Acknowledgement . . . . . . . iv
Abstract . . . . . . . . vi
Table of contents . . . . . . . vii
CHAPTER ONE: INTRODUCTION
1.1 Background of the study . . . . . 1
1.2 Statement of the problem . . . . . 2
1.3 Purpose of the study . . . . . . 3
1.4 Significance of the study . . . . . 3
1.5 Research questions . . . . . . 4
1.6 Scope of the study . . . . . . 5
1.7 Limitations of the study . . . . . 5
1.8 Definition of key concepts . . . . . 5
CHAPTER TWO: REVIEW OF LITERATURE
To be reviewed according to the sub-heading.
Note that every purpose must be represented with a heading.
CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Design of the study . . . . . . 17

3.2 Area of the study . . . . . . . 17

3.3 Population of the study . . . . . . 17

3.4 Sample of the study . . . . . . 18

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3.5 Description of instruments . . . . . 18

3.6 Administration and retrieval of instrument . . . 19

3.7 Method of data analysis . . . . . . 20

3.7 Problem of methodology . . . . . 20

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction . . . . . . . 21

4.2 Data presentation . . . . . . . 21

4.3 Test of hypothesis . . . . . . . 28

4.4 Discussion of findings . . . . . . 32

CHAPTER FIVE: SUMMARY, CONCLUSION AND

RECOMMENDATIONS
5.1 Summary . . . . . . . . 35

5.2 Recommendations . . . . . . . 35

5.3 Conclusion . . . . . . . . 37

Bibliography

Appendix/Appendices

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 CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY

Accounting is not limited to profit oriented organizations only,

its information is desirable both in profit and non-profit oriented
organizations, review of past activities and making of economic
decisions for future use. In respect to this the Accountant General
therefore plays a leading/valuable role in public accounting which is
the same as government accounting. It entails the usage of public
funds in terms of collection, disbursement and the production of final
accounting stating income and expenditure of government.

With regard to the above, the accountant general who is also

the chief accounting officer often sustains his or her royalty to the
state or National Government to ensure that these funds so collected
are properly kept and disbursed in accordance with section 3 (1) of
the public finance control management law (Cap 108).

Management of any organization be it a profit making or not,

requires a management information system (MIS) to carry out its
functions, the complexity of such a system will depend upon the
scale of operations and the nature of goals and objectives of such an
organization, such goals in the private sector might include usually
profit and growth.

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 Accounting information is a major part of the management
information system, this system identifies measures and
communicate qualitative monetary information to management and
other interest parties.

In this project, an attempt is made to at identifying the value of

accountant general in the effective performance of the accounting
function in the public sector with particular references to the office of
the account general

1.2 STATEMENT OF THE PROBLEMS

There are many problems hindering effective dissemination of

accounting information in the office of the accountant general, such
problem includes;

a. Inadequate arrangement of the accountant general office to carry

out it functions effectively
b. Most qualified accountants employed leave the public service
early, thereby increasing the rate of turnover of accounts.
c. The office of the accountant general is not given free hand to
organize human and material resources for the achievement of the
desired goals.
d. Posting of junior and senior staff is based on criteria than merit.
e. Inspite of the control measures adopted to check frauds, causes of
fraud and embezzlement are still on the increase.

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 Against this background, this study intends to
evaluate/investigate the causes of and suggest solutions to these
problems with the view to make the office of the accountant general
perform more effectively.

1.3 PURPOSE OF THE STUDY

This study primarily aims at examining the value of the office

of the accountant general in the management of public funds.

Again, this study will try to identify the basic problems that the
office of the accountant general may be facing in the course of
performing its function and find possible ways of solving such
problems, furthermore, this work is aimed at:

i. Know whether the office of the accountant general is operating

in accordance with the laid down financial rules and
regulations and to determine whether that theoretical aspect of
accounting as laid down in the financial memorandum,
financial circulars and other relevant laws are applied when
trying to play its function.
ii. To determine the likely areas of weaknesses and find a
reasonable solutions to such problems
iii. To establish the likely causes of such weaknesses and offer
suggestions to take care of such weaknesses.

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1.4 SIGNIFICANCE OF THE STUDY

This study is significant in the following ways:

i. It will also help in guiding accountants especially in

management of public funds
ii. The study will help in providing the staff of office of the
accountant general insight into most effective ways of
accounting for revenue and expenditure to the state
government.

1.5 RESEARCH QUESTIONS

In order to attain the objective of this study, the following

research question will be investigated:

i. Does the office of the accountant general lack suitable qualified

accounting staff?
ii. Does the office of the accountant general play a
valuable/important role in the management of public funds?
iii. Why do most qualified accountants employed leave the public
service early?
iv. Are the annual final accounts of the government up to date?
v. Does the office of the accountant general have a free hand to
organize material and human resources for the achievement of
the desired goals?
vi. Are both senior and junior staff posted to various departments
or sections based on merit.

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 vii. Inspite of the control measures adopted by the office of the
accountant general to check frauds, do fraud still exist?

1.6 SCOPE OF THE STUDY

The research work is on the evaluation of the office of the

accountant general in the management of public funds. And it
intends to cover aspects of functioning of the office of the accountant
general in the management of public funds.

1.7 LIMITATIONS OF THE STUDY

However, in carrying out this research finding, money will be

or is needed for transportation, sourcing of valuable materials and
other related documents or information’s relating to
importance/value of the office of the accountant general.

1.9 DEFINITIONS OF KEY CONCEPTS

ACCOUNTING: It is the process of identifying, sorting, classifying
and recording all financial transaction of an organization in a
systematic manner and presenting it to the users for decision making
AUDITING: This is an official examination of business and financial
records to see that they shows true and fair financial positions of the
organization at a particular year.
ASSET: A thing of value, especially property that a person or
company owns which can be used or sold to pay debts.
BUDGETING: This is a planning method used in estimating future
income and expenditure

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CAPITAL: It is the amount of money invested in a business
EXPENDITURE: It is the act of spending or using money, an amount
of money spent (a reduction in public expenditure)
FRAUD: The crime of deceiving in order to get money or goods
illegally
FUND: Reference to money
INCOME: The money that a person gain from investment in
business.
INSPECTORATE: This is an official group of inspectors who work
together on the same subject
LOAN: Money collected on credit with the intention of paying back
with interest at maturity
OVERDRAFT: Taking excess fund from your bank account above
saving or deposit in form of loan
RISK: Unforeseen dangers, destruction e.g. flood, fire, pest, outbreak
burglary accident etc.
LIABILITY: The amount of money that a person or company owns
TREASURING: This is the control of public money and also where
valuable things are stored.
VOUCHER: This is a printed piece of paper that can be used instead
of money.

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 CHAPTER TWO
LITERATURE REVIEW

2.0 INTRODUCTION

ACCOUNTING: May be defined as a measurement of

communication system for collecting, measuring, recording,
summarizing, transmitting and interpreting the result of economic
transaction, post or prospective in resources and in claims on such
resources.

This is one of the may definitions of accounting but effort will

be made to mention various definitions to have a better
understanding of what accounting is all about.

John G. Helmkamp, Lerry, F.I. Indiek and Ruth, E Smith in

their book ‘’Principles of accounting, recording, classifying and
summarizing financial information that is used in making economic
decision.

Another definition of accounting is given by American

Accounting Association (AAS) defines accounting in their book as the
process of identifying, measuring, and communicating economic
information to permit, informed, judgement and decision by the
users of the information.

Also, American Institute of Certified Public Accountant (1961)

defined accounting as the act of recording, classifying, and

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summarizing in terms of money, those transactions and events which
are financial in nature and interpreting the result thereof.

If we should go on with different definition of accounting, it

will still boil down to the same point because accounting provides
information’s, which is the major work it does.

Government accounting can be defined as the process of

recording, analyzing, classifying, summarizing, communicating and
interpreting financial information about government in aggregate
and in details, reflecting all transactions involving the receipt,
transfer and disposition of government funds and property.

The way of running a government is a different one, it takes

among other things the management of financial resources of
government.

Government gets funds from various sources such as loans,

fees, from services provided from the sales of natural resources. The
complexity of government business makes it necessary to clearly
defined the procedures for the receipt and disbursement of these
funds. In view of the above, it is necessary for government to appoint
a representative to over see the receipt and disbursement of funds.
This could be the reasons why the government appoint
representative known as the Accountant General.

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 An accountant is a person whose profession is to keep and
examine business of government account, keeps records of money
that has been entrusted to some one.

2.1 PUBLIC ACCOUNTING

Public accounting is defined as the process of recording,

classifying, summarizing, communicating and interpreting financial
information about government in aggregate and in detail reflecting
the transfer and disposition of government funds and property.

In another sense, the term public accounting could refer to

branch of accounting that offers independent professional skills, the
services are offered to the public generally as constructed with
private accountant employed by a particular firm.

Since government and public accounting are synonymous,

government accounting is therefore the accounting functions being
performed for a government unit whether it is a local, state, federal
government or one of the agencies.

All officers handling public funds are expected to carry out

certain duties in order to achieve maximum efficiency in connection
with the disbursement of public funds in order to function properly,
government accounting records must be maintained properly and in
such a way that bias or personal opinion of the accounting does not
influence the accepted accounting standards.

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2.2 THE OFFICE OF THE ACCOUNTANT GENERAL

From the onset, office of the account general was created, since
it is impossible for a state, federal government or their agencies to
operate without this important office. During that time, the office of
the accountant general was a mere decision in ministry of finance and
division is now a department under the office of the accountant
general, other departments under this accountant general office are:

a. Department of personnel management

b. Department of planning research and statistics
c. Department of finance and supplies
d. Inspectorate department

Accountant general performs a very valuable/important function

which will be discussed in subsequent chapter of this study.

2.3 DUTIES/FUNCTION OF THE OFFICE OF THE ACCOUNTANT

GENERAL

The account general is the chief ‘’Accountant officer’’ of

government and this implies that all instructions as to how
government accounting should operate emanates from his office.
Though not in isolation of the acceptable accounting concepts and
conventions from the above, it could be seen that the accountant
general exercise the general management of supervision of all
accounting operations of government under the authority of section 3
(1) of the public finance control management law.

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 These are some of the vital duties performed by the accountant
general.

i. It is the duty of accountant general to ensure the collection of

receipts disbursement of public funds.
ii. The accountant general ensure that all payments are covered by
authority and proper provisions are made for safe keeping of
public money, security stamps and receipt and documents.
iii. The accountant general is responsible for the supervision of all
accounts of ministries and department within his jurisdiction
iv. The accountant general issues remittances subventions to the
department, institutions, parastatals and secondary
school/institutions of higher education within his jurisdiction
on behalf of the government
v. It is the duty of accountant general to transfer the amount of
surplus or deficit in the capital budget at the end of a financial
year to the capital development fund. Also, the surplus or
deficit on recurrent budget is transferred monthly to surplus or
deficit account and at the end of the year, the surplus or deficit
accrue to or deducted from the consolidated revenue funds.
vi. The account general also has some departments functioning
under his supervisions charge with different responsibilities.
These department are created by the civil service re-
organization. Decree number 43 which infact directed that the
following department shall exist in all ministries, extra

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 ministerial department of which the office of the accountant
general is not an exception.

2.4 PLANNING, RESEARCH AND STATISTICS DEPARTMENT

This department is charged with various duties according to

the two division which are planning research and statistics. The
planning deals with the planning of programmes of the ministries,
extra ministerial department. Thus includes plans for project plan
monitoring and evaluation.

The research and statistics division deals with sectorial research

operation organization and management research efficiency and
sectorial statistics deals with records data, computer services and
finally keeps library where various data collected are kept and can be
produced if the need arises. This department is headed by a director
with a deputy director of planning and research and statistics
respectively assisting.

2.5 THE MAIN ACCOUNT

Most treasury work lies in the section, the primary duty of this
section is the monthly preparation of balance sheet and statement of
receipt and payment when the total revenue for the month and the
total payments of the month arrived from the available information
in the consolidated revenue when the need arises.

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2.6 SALARY VOUCHERS

Salary vouchers were usually prepared monthly or half

monthly. But due to cost of marketing, salaries are prepared once in a
month. The relevant accounting documents are records which
maintained in the personal emolument section and which are used in
the preparation of salaries/wages are as follows:

a. Personal emolument form

b. Personal emolument records and TF 174A
c. Salary variation advice
d. Variation control sheet
e. Payment vouchers register
f. Group register
g. Unclaimed wages register

2.7 SUBSIDIARY ACCOUNT

The subsidiary account section of any ministry or department is

responsible for maintaining the below line accounts, rending returns
and reconciliation statement thereof. It is very important arm of the
accounts unit in the ministry through which the treasury department
measures or assesses the effectiveness of the control function of the
various below the line account assigned to the ministry.

The effectiveness of the ministry or department depends to a

large extend on the organization of its subsidiary accounts section.
The failure of this section may not only create problems for the

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 ministry in terms of rendition of accounts or reconciliation of
statement but it may also result in loss of government funds which
may arise through non availabilities or inadequate records to monitor
and recover advances made to officers or corporate bodies.

Ministries and departments are often enjoined to set up their

own subsidiary account section with the responsibilities for keeping
the following accounts:

i. Deposit

ii. Remittance/cash transfers

iii. Advances
iv. Impress.

2.8 THE EXPENDITURE CONTROL

Cash banking: is the system of banking all fund allocated through

financial warrants and authority to incure expenditure with cash.
Therefore, cash banking is provided when the cash supply section
authorizes the central bank of Nigeria through a letter to transfer any
given sum stated on the financial warrant to the account of the
beneficiary and when sub treasury issues treasury receipts No (T.R.
6) in respect of the AIE issued to the office some of the classification
of government expenditure are recurrent expenditure and capital
expenditure.

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2.9 BUDGET SYSTEM

A budget system is one of the control measures adopted by the

accountant general for the effective control of public funds. A budget
is defined as a finical quantitative statement prepared prior to a
design period of time. The policy to be pursued during that period
for the purpose of attaining a given objective, the accountant general
refer to it from time to time and ensure that other accounting organs
of government adhere strictly to the provision or allocation made for
various heads and sub-heads and the amounts so provided are not
exceeded. Also, that any transfer of funds from any of expenditure
shall receive his approval of or should be made known to him.
returns of both revenue and expenditures are rendered monthly to
the accountant general with regard to the above.

2.10 THE INSPECTORATE

This is one of the control measures adopted by the accountant

general, though not in isolation of the civil service re-organization.
This department had existed before the civil service re-organization
and was known as internal audit department.

An audit is defined as an investigation of a company’s

accounting procedures to ensure that the financial statement issued
by the company are in accordance with the actual expenditure,
income and valuation of stock as recorded in any financial year or a
shorter period.

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 The functions performed by the inspectorate is not different
from this definition of an audit.

The duties of inspectorate are as follows:

i. It is duty bound to carry out surprises checks on ministries,

department and sub-treasurers on cash and accounting system

ii. It cross checks the bank reconciliation statement and make

observation where necessary

iii. Also, it process reports, on loss security books safe and strong
room key payment vouchers and relevant official documents.

Whatever information that may result from the functions are

reported to the accountant general.

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 CHAPTER THREE

RESEARCH METHODOLOGY
3.0 INTRODUCTION
Methodology itself it is a ‘’science of finding out’’. We can
therefore defined research methodology as the method used in
finding out few facts or more detailed information on what we are
looking for. More so, methodology simply means the ways and
procedures adopted in conducting research work, it can also mean
the procedures used in data collection.

3.1 DESIGN OF THE STUDY

The researchers has adopted a descriptive design which implies

that the study concerned itself with a systematic description of data
related to the role in the management of public funds. The choice of
the design is to facilitate easy and smooth investigation.

3.2 AREA OF THE STUDY

The area of the study is the office of the accountant general.

3.3 POPULATION OF THE STUDY

The population under study is the staffs of the accountant

general’s office, hundred (100) in number. The number of staffs that
will be used as sampling size of the study will be seventy (70).

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3.4 SAMPLE OF THE STUDY

Sample is a system of setting numbers of individual for a study

such that the individuals represent a large size, which they were
selected. The research will make use of random sampling to ensure
that all number of the population has equal chance of being selected
and achieve a corresponding result. therefore, sixty (60) will be used
as the size of the sample.

3.5 DESCRIPTION OF INSTRUMENT

Two types of data were used for this study primary and
secondary.

PRIMARY DATA: The collection of facts and figures relating to the

data, is a more convenient way of obtaining the exact information
about the value of the office of the accountant general in the
management of public funds.

The method used for collecting primary data were observation,

interview and questionnaire.

a. Observation method: To alleviate bias and manipulation of data,

this involves use visiting and observing things for yourself. The
activities of accounting section, accountant general office was
included in order to confirm facts about the importance of
accountant general office in the management of public finance or
fund.

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 b. The interview method: Even when the questionnaires were
distributed, it was concerned that not all top ranking officers could
spare their time in answering such questions as given to them. in
such situation, were thrown to the respondents in a fact manner.
c. Questionnaire: In this study, questionnaires was distributed to
responding in the finance department of the office of the
accountant general. The questions were close ended which means
the respondents were to give information to solve a specified
problem so that research questions can be tested with less bias.

SECONDARY DATA

The sources from which information were collected were.

a. Government publications and newspapers

b. Paper presented by educationist at various seminars and
workshops
c. Lecture explanatory notes.

3.6 ADMINISTRATION AND RETRIEVAL OF INSTRUMENT

The instrument (questionnaire) used was into three section,

section ‘’A’’ requires the respondents to supply some personal data
which include sex, educational qualifications, ministry, cadre, marital
status, and working experience; ‘B’ requires information on the office
of the accountant general in the management of public of public
funds. While section ‘C’ requires suggestions in the management of
public funds of the office of the accountant general.

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3.7 METHOD OF DATA ANALYSIS

In order to draw a useful and reliable conclusion from the

research findings, the data collected were carefully coded and using
tabular expression as well as percentage frequencies to analyze the
finding.

3.8 PROBLEMS OF METHODOLOGY

In the administration of questionnaire for data collection, some

problems were encountered such as financial inadequacies.

A lot of money was needed for transportation since most of the

respondents are in various places of the office of accountant general,
this was particularly the case because every respondents was busy in
their places of work and as such he/she has to promise the research
to come back for the response in a future period.

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 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

The process of data presentation and analysis begins as soon as

the data collection stage is completed, it will be edited and coded and
processed manually.

The data collected are therefore those that will lead to the
rejection or acceptance of the research questions.

DATA PRESENTATION

There are altogether nine (9) research questions all aimed at

helping the research to know the problems that is facing the
accountant general in the management of public funds.

The primary data collected techniques used is the

administration of questionnaires to the office of the accountant
general. This is done through sampling, observation and oral
interview, which also help the researcher in gathering data.

A total number of sixty (60) respondents were issued

questionnaires in the office of the accountant general. Fourty eight
(48) respondents successfully completed and returned the
questionnaires to the researcher.

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 The opinion of the respondents is hereby represented in a
tabular fro and the use of percentage to analyze the difference.
Hence, inference is drawn at each stage of the question as seen below.

QUESTION: No 1: Is the role played by the office of the accountant general

valuable/important in public or government accounting?

TABLE (1)

Response No of respondents Percentage %

Yes 37 94.87%
No 2 5.13%
Total 39 100%
SOURCE: Field survey, 2014

From the above table analysis, using the simple percentage,

those that agreed are 37

= 37 x 100 = 94.87%
39 1
Those who disagreed are:2

= 2 x 100 = 5.13%
39 1
However, nine of which did not answer the question we see
that 94.87% agreed that the role played by the office of the accountant
general is very valuable/important while 5.13% says no from this
analysis. It is clear that the office is very valuable/important.

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QUESTION: No 2: Does the office of the accountant general lack suitable
and qualified staff?

TABLE (2)

Response No of respondents Percentage %

Yes 22 57.90%
No 16 42.10%
Total 39 100%
SOURCE: Field survey, 2014

From the above table shows that the office of the accountant
general lack suitable qualified staff. The percentage of those who
agreed is 57.90% and those who disagreed is 42.10% and ten did not
answer questions.

Yes 22 x 100 = 57.90%

38 1
No 16 x 100 = 42.10%
38 1
From the above table, it is established that lack of qualified staff
contributed to their lack of proper performance.

QUESTION 3: Do most qualified accountant leave the public service early

‘’with particular references to office of the accountant general?

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TABLE (3)

Response No of respondents Percentage %

Yes 31 79.49%
No 8 20.51%
Total 39 100%
SOURCE: Field survey, 2014.

The result from the above table shows that the accountant leave
public service early.

Yes 31 x 100 = 79.49%

39 1
No 8 x 100 = 20.51%
39 1
This shows that 79.49% agreed while 20.51% disagreed. While
the office early is not good enough this will have an adverse effect on
the establishment.

QUESTION 4: Is it correct to say that accountant leave as a result of

frustration being experienced in the public service?

TABLE (4)

Response No of respondents Percentage %

Yes 32 82.05%
No 7 17.95%
Total 39 100%
SOURCE: Field survey, 2014.

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 From the above table, we can see that over 82.05% agreed and
17.95% disagreed, nine did not answer the questions.

Yes 32 x 100 = 82.05%

39 1
No 7 x 100 = 17.95%
39 1
In responding to the above question, majority of the
respondents are to the opinion that the early disengagement from the
public service is as a result of frustration merited to them in the
public service.

QUESTION 5: Are both junior and senior staff posted to various

department or section based on merit?
TABLE (5)
Response No of respondents Percentage %
Yes 11 28.20%
No 28 71.80%
Total 39 100%
SOURCE: Field survey, 2014.

The analysis above respondents has shown that only 28.20%

agreed while 71.80% disagreed. Nine did not answer the questions.

Yes 11 x 100 = 28.80%

39 1
No 28 x 100 = 71.80%
29 1

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QUESTION 6: Are most treasury worker performed by junior staff?
TABLE (6)
Response No of respondents Percentage %
Yes 28 71.80%
No 11 28.20
Total 39 100%
SOURCE: Field survey, 2014.

From the above table, shows that 71.80% agreed while 28.20%
disagreed nine did not answer the questions.

Yes 28 x 100 = 71.80%

39 1
No 11 x 100 = 28.20%
29 1
The above table shows that most treasury work are performed
by junior staff who lack basic accounting and auditing qualification.
Nine did not answer the question.

QUESTION 7: Is the annual final accounts up to date?

TABLE (7)
Response No of respondents Percentage %
Yes 7 14.58%
No 41 85.42%
Total 39 100%
SOURCE: Field survey, 2014.

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 The response from the above table revealed that the annual
account of the government is not up to date.

Yes 7 x 100 = 14.58%

48 1
No 41 x 100 = 85.42%
48 1
All the respondents answered the questions.
QUESTION 8: Are staff of the office of the accountant general properly
trained?
TABLE (8)
Response No of respondents Percentage %
Yes 11 28.20%
No 28 71.80%
Total 39 100%
SOURCE: Field survey, 2014.

From the above table shows that the staff of the office of the
accountant general are not properly trained.

Yes 11 x 100 = 28.20%

39 1
No 28 x 100 = 71.80%
39 1
From the above table, it is clear that the staff the accountant
general office are not properly trained. Nine did not answer the
question.

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 QUESTION 9: Do frauds still exist irrespective of the various control
measures adopted by accountant general?
TABLE (9)
Response No of respondents Percentage %
Yes 30 76.92%
No 9 23.08%
Total 39 100%
SOURCE: Field survey, 2014.

Yes 30 x 100 = 76.92%

39 1
No 9 x 100 = 23.08%
39 1
From the above table, 76.92% says yes while 9 or 23.23% says No,
based on this response, we can conclude that frauds still exist in the
office of the accountant general despite the control measures
adopted, be it internal and external.

4.3 TEST OF HYPOTHESIS

Hypothesis formulated in this project is meant to guide and

direct this research work. Therefore, the researcher will use chi-
square method in testing the hypothesis.

Chi-square is applied to determine whether the observed set of

frequency differs significantly as it was expected. The value of chi-
square which measures the distance between the observed (Oi) and
the expected value (Ei)
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 The formula for chi-square is X2 = (Oi-Ei)2
Ei
Where: X2 = Chi-square
Oi = Observed frequency
Ei = Expected frequency
Df = Degree of freedom (n-1)
Ho: Does the early leaving of the qualified account affecting the
office of the accountant general in performing their or it duties
negatively?

Hi: If there is no early leaving of the qualified accountant, it will

affect the office of the accountant general in performing it
duties positively? See table below:

SECTION YES NO TOTAL

Yes 26 4 30
No 8 12 20
TOTAL 34 16 50
Expected frequency E = Columns total +Row total

Grand total

Hypothesis one
Response Oi Ei Oi-Ei (Oi-Ei)2 (Oi-Ei)2
Ei
Yes 45 40 5 25 0.625
No 35 40 -5 25 0.625
TOTAL 80 80 1.250

29
X2 calculated = 40
Chi-square value = 3.84
Oi = 80
Ei = 80=40
2
Oi-Ei = 45-40=5
Oi-Ei = 35-40=5
(Oi-Ei)2 = (-5)2 = 25
(-5)2 = 25
(Oi-Ei)2 = 25 = 0.625
40
DECISION RULE
X2 calculated = 1.25 at 5% level of significance table value 3. 84.
Since X2 calculated 1.25 < 3.85 therefore, null hypothesis (Ho) is
rejected and alternative hypothesis (Hi) is accepted because the X2
calculated is less than the table value of chi-square. It means that if
the qualified accountant do not leave early, it will affect the office of
the accountant general in performing it duties positively.

Hypothesis two

Ho: Does the lack of training of staff of the office of the accountant
general is affecting the eradication of fraud negatively?

30
Hi: Proper training of staff of the office of the accountant general
affect the eradication of fraud positively.
Section Yes No Total
Yes 50 10 60
No 30 5 35
Total 80 25 95

Expected frequency: E = Column total + row total

Grand total
Observed frequency
Response Oi Ei Oi-Ei (Oi-Ei)2 (Oi-Ei)2
Ei
Yes 50 40 10 100 2.5
No 30 40 -10 100 2.5
TOTAL 80 80 5.0

X2 calculated = 5.0
Oi = 80
Ei = 80=40
2
Oi-Ei = 50-40 =5.0
Oi-Ei = 30-40 =10
(Oi-Ei)2 = (-10)2 = 100
(10)2 = 100
Oi-Ei = 200 = 5.00
40

31
 DECISION RULE
Since X2 calculated = 5.0> 3.84. therefore, null hypothesis (Ho)
is rejected and Hi is accepted because X2 calculated is greater than the
table value of Chi-square. It means that proper training of staff of the
office of the accountant general will help in eradicating fraud
positively.

4.4 DISCUSSION OF FINDINGS

Since accountant general is non profit oriented, its preparation

of an accounts is with more emphasis on the assessment of
management stewardship.

The role of the accountant general is very valuable/important

in public sector accounting.

One of the problem affecting the office of the accountant

general is that; it cannot perform its duties to the latter, because most
of the qualified accountants who would have performed the needed
accounting jobs leaves the public service early. The main reason why
the accountants who are qualified leave the services early is because
there are frustration by system in which public government
accounting is being operated by such accounts or that is to be a given
such qualified jobs as their counterparts in companies or other
private organizations is not considered by the office of the accountant
general. Office of the accountant general has free hands to organize

32
and motivate human and material resources in other to achieve the
desired goals.

Staff of the office of the accountant general are not posted to

various department based on merits, this wind of development is not
healthy for an organization that wants to achieve result. this is
partially responsible for non-production of the annual final account
of government.

Most of the work in the office of the accountant general is

performed by relatively junior staff who lack basic accounting
qualification. Also, staff of the office of the accountant general are not
properly trained, these two statement have some relationship
because is the staff are properly trained, most of the work would not
have been performed by junior staff who lack basic accounting
qualification. This system of allowing most of the work to be
performed by mostly junior staff and lack of training is partly
responsible for the lateness in the production of the government
annual final account.

Frauds still exist in the office of the account general because the
control measures adopted are not adequate. Lack of training of staff
also responsible for these frauds because if the staff are trained
properly, the next thing is to promote these staff to the next higher
salary grade level with higher wages and the temptation to commit
fraud will be minimized or completely wiped out, from the general

33
observation the staff of the office of the accountant general are just
working there, because there seems to be no job satisfaction.

The only alternative there, is to work there if appropriate

measures are not taken to solve the problems highlighted in this
study, history will continue to repeat itself that the ultimate output
expected from the performance of the staff shall continue to be very
low and bad.

34
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY
The research study is divided into five; the general introduction
of the study, the statement of the problem, purpose of the study,
significance of the study, research question, scope of the study,
limitation of the study, definition of key concepts and organization of
the study. The researchers further discussed the review of literature,
duties of the accountant general, functions being performed by the
accountant general, control measures adopted by the safeguard assets
and funds of the government.

The researcher discussed the research methodology, have

different types and sources of data were used. Lastly, research
questions were tested, it has been found out that there exist clear
evidence to support all of them.

The aims of the researchers stud is to carry out a thorough

evaluation of the office of accountant general in the management of
public funds.

5.2 RECOMMENDATIONS

The researcher therefore offer the following recommendations

so as to reduce the identified short comings related to the barest
minimum.

35
i. For maximum output, both junior and senior staff of the office
of the accountant general should be posted to department
based on merit, this will enhance maximum productivity.

ii. Any funds free organization, progresses will be very rapidly.

Fraud can be checked in the following ways;

a. The accounting system of the office of the accountant general in all

department should be computerized.
b. The internal control system of the accountant general office should
be over hauled by organizing workshops for the inspectorate
(internal audit) staff at interval to acquaints them with accounting
system
c. Strict supervision; supervise or internal checks should be
intensified especially on officers who keep receipts booklets, these
will help to handle public funds. It should be so to ensure that
revenue collected is properly receipt and paid into the treasury
promptly.
d. Hash punishment is another remedy for prove cases of frauds
which will serve as a deterrent to others, the positive measures
should be meted out in accordance with the magnitude of the
fraud rotation of staff that are handling funds in the organization
will make officers set up thereby minimizing the incidence of
frauds.
e. Qualified accountants should be encouraged by providing
comfortable office for them, so that they will not get frustrated and
36
 leave the service early and their salaries should be reviewed so
that they will not leave no matter what.
f. The office of the accountant general should encourage junior staff
to improve professionally by sending them on accounting courses
since majority of them perform jobs with little knowledge on basic
of accounting.
g. The most important functions performed by the accountant
general is that of the production of the final annual accounts of the
government to achieve this goals, senior and competent officers
who have accounting knowledge and experience should be posted
to the final accounts section. So that the officers will know that
they have a responsibility, they are suppose to take care of and the
director of that section should make sure the account of the office
of the accountant general is up to date at any point in time, you
will see that at the end, you will have a better results on the
preparation of the final account of the government.

5.3 CONCLUSION

From the analysis and finding in this work, it is very possible to

draw conclusion to the entire research studies. The conclusion are as
stated below:

i. That the role of the accountant general office is very

valuable/important in public sector accounting.

37
ii. That one of the problem affecting the office of the accountant
general is that it can not perform it’s duties to the latter because
most of the qualified accountants who would have performed
the needed accounting jobs leave the public service early.

iii. The main reason why the accountants who are qualified leave
the services early is because they are frustrated by the system in
which public accounting is being operated.

This is because the encouragement expected by such

accountant or that is to be given such qualified accountant as their
counterparts in companies or other private organizations is not
considered by the office of the accountant general, the office of the
accountant general has free hands to organize and motivate human
and material resources in order to achieve the desired goals.

iv. Staff of the office of the accountant general are not posted to
various department based on merit, this kind of development is not
healthy for an organization that wants to achieve result. this is
partially responsible for non-production of annual final accounts of
government.

v. Most of the works in the office of the accountant general is

performed by relatively junior staff who lack basic accounting
qualification. Also, staff of the office of the accountant general
are not properly trained. These two statement have some
relationship because if the staff are properly trained, most of

38
 the work wouldn’t have been performed by junior staff who
lack basic accounting qualifications. This system of allowing
most of the work to be performed by mostly junior staff and
lack of training is partially responsible for the lateness in the
production of the government annual final accounts.
vi. Fraud still exist in the office of the accountant general because
the control adopted are notable for these frauds because if the
staff are trained properly, the next thing is to promote them to
the higher salary grade levels with higher wages and the
temptation to commit fraud will be minimized or completely
wiped out from the general observation, the staff of the office of
the accountant general are just working there because there
seems to be no job satisfaction. The only alternative they have is
to work there. If appropriate measures are not taken to solve
the problems highlighted in this study, history will continue to
have or repeat itself that the ultimate output expected from the
performance of the staff shall continue to be very low.

39
Bibliography
Amey, C.R. (1981) Management Accounting Conceptual
Approach. Longman Group Ltd. U.K.
American Accounting (1966) A Statement of Basic Accounting Theory
Association.
Cashin J.A. (1973) Theory and problems of Accounting McGraw Hill
U.S.A
Decoster Don’t (1978) Accounting for Decision Making John Willey
and Sons Inc. New York.
Ehimony, H.B. (2007) Know your History. Apson Publishers,
Kaduna.
Frank, Wood (1975) Business Accounting Longman Group Ltd. UK.
Laughling E.J. (1977) The Basic Accounting Guide Inc. Ohio U.S.A.
Little Toor A.C. (1974) The Structure of Accounting Theory
Monograph No. 5
Megiths, W.B. (1975) Management Accounting; A Conceptual
Approach Longman Ltd. U.K.
Michael, B. (1978) James Mitchell Joy of Knowledge Library Mitchel,
London.
Omuya, T.O. (1984) Accounting Hand Book John Wiley and Sons
New York.

40
 APPENDIX

Please, you are requested to study the questionnaire and supply the
information below. Tick (√) in the box against your choice of answers
or a brief comments as the case may be in the spaces provided.

1. Age
a. Under 25 years ( )
b. 26 years-35 years ( )
c. 36 years – 45 years ( )
d. 46 years – 55 years ( )
e. Over 55 years ( )
2. Sex
a. Male ( )
b. Female ( )
3. Marital status
a. Single ( )
b. Married ( )
c. Divorced ( )
4. Name of department:_____________________________
5. Level of education
a. Below primary education ( )
b. Primary education ( )
c. Less than secondary or trade school as equivalent ( )
d. Secondary education or equivalent ( )
e. University education or equivalent ( )

41
6. How long have been in this organization?
a. Less than 3 years ( )
b. 3-6 years ( )
c. 7-10 years ( )
d. 11-16 years ( )
e. 17-22 years ( )
f. Over 22 years ( )
7. What is your grade level now?
a. 01-04 ( )
b. 05-07 ( )
c. 08-10 ( )
d. 11-12 ( )
e. 13-16 ( )
8. Are you satisfied with your present salary/level?
a. Yes ( )
b. No ( )
9. Have you received any promotion since you join this organization
a. Yes ( )
b. No ( )
10. What is the basis for your promotion? If you have received any
a. Seniority ( )
b. Merit ( )
c. Outstanding ( )
d. Achievement ( )
e. Favouritism ( )
42
11. Do you think you need training on the job or of the job?

a. Yes ( )
b. No ( )

12. Have you received any training?

a. Yes ( )
b. No ( )

13. In which of the following areas do you need to be trained?

a. General training ( )

b. Specific training ( )

14. Would you recommend your friends or relations to work in this

organization?

a. Yes ( )
b. No ( )

15.Do you consider the organization leadership style to be good or

satisfactory enough?

a. Yes ( )
b. No ( )

16.Are you encouraged by the style to the extent that if you have
another job, you would not go?

a. Yes ( )

43
 b. No ( )

17.Do you have all the necessary equipment and material to perform
your job?

a. Yes ( )
b. No ( )

18. How do you relate to your subordinate?

a. Subordinate feel free to discuss with me ( )

b. He takes interest in workers and try to understand their

problems

c. He seeks their opinion if need be before taking action that affect

them

19. How would you describe your immediate boss?

a. Ask for advice ( )

b. Hard to please ( )
c. Praises good work ( )
d. Does not supervise enough ( )
20. How often does your superior work to you?
a. Often ( )
b. Sometimes ( )
c. Not at all ( )
21. Does she delegate responsibility and authority to you?

44
 a. Yes ( )
b. No ( )

22. Does your boss allow you to use your initiative when
necessary?

a. Yes ( )
b. No ( )

23. Does the office of the accountant general play a

valuable/important role in the management of public fund

a. Yes ( )
b. No ( )

24. Does your office lacks suitable and qualified account staff?

a. Yes ( )
b. No ( )

25. Why do most qualified accountant of government up to date

a. Yes ( )
b. No ( )

26. Are the annual final account of government up to date?

a. Yes ( )
b. No ( )

45
27. Inspite of the control measure adopted by the office of
accountant general to check fraud, do fraud still exist?

a. Yes ( )
b. No ( )
c. Yes ( )
d. No ( )

46