INSTITUTE OF PUBLIC ADMINISTRATION AND

MANAGEMENT-IPAM-USL

CAPTER ONE- INTRODUCTION

COURSE: BSc. in Applied Accounting

YEAR: Four (4) General

STUDENT NAMES
YOM BO KAMARA - 21472
RAMATU STEVEN KANYAKOH - 21594
JONATHAN M. MARIAH - 18836
MORLAI MOHAMED KAMARA - 20393

22SUPERVISOR
Dr. Jesse Porter

TOPIC
The Role/lmpact of Modern Accounting System in
Organizational Effectiveness.

CASE STUDY
Institute of Public Administration and
Management-IPAM

TABLE OF CONTENTS
P
a
1.0 INTRODUCTION

1.1. BACKGROUND TO THE STUDY

1.2. BACKGROUND OF IPAM
1.3. STATEMENT OF THE PROBLEM
1.4. OBJECTIVE OF THE STUDY
1.5. SPECIFIC OBJECTIVES
1.6. RESEARCH QUESTIONS
1.7. RESEARCH METHODOLOGY
1.8. SIGNIFICANT OF THE STUDY
1.9. LIMITATION OF THE STUDY

1.0. INTRODUCTION

1.1 BACKGROUND TO THE RESEARCH

Accounting is a system designed to measure, aggregate, and
transmits financial data for a variety of managerial purposes. In
most organizations, the accounting system is an integral part of the
overall core control system because of its measurement capability
and the need for measures to facilitate control.
Today, accounting has come to seize a significant position in its
functions in the business world. Accounting plays a critical role in
the operation of an organization. For every business, it is important
that the financial information of the business activities is being kept
up-to-date and monitored by the organization. Accounting involves
various processes, ranging from simple to complex and even
P
a
burdensome. Companies need to keep pace with constant changes in
information technology in order to maintain a highly accurate and
up-to-date accounting, statutory records and inventory. Due to
complexity of the accounting system increasing vulnerability to
errors and the swelling volume of accounting transactions, a system
that could process and store accounting data with increased speed,
vast storage and processing capacity was necessitated. To satisfy the
increase demand for up-to-date and accurate information,
accounting software, an integration of accounting and information
technology was introduced to the world.

Manual accounting implies that employees perform the whole

accounting cycle manually on a periodic basis: they calculate trial
balances, journalize transactions, and prepare financial statement
reports and other routines. Of course it takes much time, resources
and effort in large organizations. Computerized accounting implies
that the only thing that employees do is recording transactions into
the computer which processes the other steps of accounting cycle
automatically or by a request. But this is a very simplified view on
the computerized accounting because transaction is a complex
category which includes not only sales or acquisitions, but
depreciation, premiums and wages calculation, dividends etc. So
computers provide accurate calculations and smart reports but it
takes much time, resources and effort too and it's difficult to assess
which accounting type is more fast and economic. If manual
accounting requires qualified accountants to keep a record of
business transactions, computerized requires accountants which can
P
a
use specific software and thus they cost more.

Computer software calculates faster but it does not know what you
need until you can clearly explain what exactly you need. In
addition good computerized accounting system can cost thousands
and even millions dollars, depending on the complexity and the size
of organization. Computerized accounting provides better internal
control report system for any given period of time (computer can
control thousands indicators simultaneously and create notifications
to the appropriate departments or workers if some indicators do not
correspond to the normal state), while manual control takes more
time.

1.2 BACKGROUND OF IPAM

The Institute of Public Administration and Management (IPAM) is

an institute of the University of Sierra Leone. It operates like other
constituent colleges of the University of Sierra Leone, under the
authority of the University Senate and the University Court. IPAM
is in the Center of Freetown at Tower Hill, close to the British
Council, Statistics Sierra Leone, the West African Examination
Council (WAEC) and the National Fire Force headquarters. The
institute has four departments offering a range of business
information technology, finance and public administration courses
to the public.

The establishment of IPAM can be traced to 1980. It came as a

P
a
result of a government white paper on education which proposed the
closure of the Civil Service Training College. The responsibility for
the training of middle- and upper-level staff was transferred to
Fourah Bay College and that of the clerical cadre to the Freetown
Technical Institute. Subsequent review by the World Bank
suggested the need for a more specialized establishment in public
administration and management. Discussions between the World
Bank and the government of Sierra Leone resulted in the decision to
establish the Institute of Public Administration and Management as
an institute of the University of Sierra Leone

1.3 STATEMENT OF THE PROBLEM

Since accounting information systems (AIS) serves as the firm’s

business information and infrastructure backbone, both transparency
in management and strategic decision- making process depend on
information obtained from the system. AIS with features error-free,
user-friendly, easy to learn, technically sound, well documented and
flexible are indirectly related to organization performance.

Lack/inadequate proper accounting system and financial record

keeping the business concern makes it impossible for managers to
know how their enterprises s are functioning and in majority of
cases, this serves ask the first indication that
something is wrong with the effectiveness of the organization. but
many at times, this comes too late due to constrains the university
faces as a result of inadequate accounting systems.

P
a
The concept of performance has always been present in
management literature covering various aspects such as efficacy,
efficiency, competitiveness, relevance and financial viability.
Marmouse (1997) highlighted that; organization’s performance
represents the manner in which the company is organized to reach
its objectives and the way it manages to reach them. However, in
many years, IPAM has not been able to meet up with its
expectations based on performance. The university as still not being
able to totally evolve from the traditional systems of accounting.
From what we gathered, one of the main reason of the low level
accounting systems IPAM is battling with is lack of funding. The
university of Sierra Leone is regulated and controlled by the
government of the nation. Lack of government funding to the
university make its to be limited financially and prevent it from
having it rightful necessities which includes procuring quality
accounting softwares, ICTs equipment and setting up good and
advanced modern accounting systems.

The issue of missing grades, bank transactions error and the

inability to trace students records has be a huge problem of the
university of Sierra Leone, most
especially IPAM due to the inadequate systems of accounting and
the barriers the
university face in adopting higher level of ICT.
The problem or challenges is that IPAM face many barriers to ICT
adoption and

P
a
mostly make use of traditional/basic methods in order to remains in-
order to set up
a standard accounting systems, rarely taking advantage of the
available ICT as a
result of lack of softwares, equipments and machines leading its to
work on a
semi-computerized accounting systems.
Due to the above reason, a research will be conducted.

1.4. OBJECTIVE OF THE STUDY

The main objective is to evaluate the effects of the modern

accounting systems of the institute of public administration and
management-IPAM and how it has impacted on the effectiveness of
the institution.

1.5. SPECIFIC OBJECTIVE

• To determine the benefits of modern accounting systems in the

organization.

• Tho determine actual level of accounting systems IPAM is

operating on.

• To understand how modem accounting systems affect staffs and

employees negatively or positively.

• To determine the barriers of adopting ICT in IPAM.

P
a
1.6. RESEARCH QUESTIONS

• What is the benefit of using modem accounting systems in

IPAM?

• What is the accounting systems level of IPAM ?

• What are the barriers preventing the fully adoption of ICT in-
order to setup a high level computerized accounting systems?

1.7. RESEARCH METHODOLOGY

The sources of data for conducting this study will include primary
and secondary sources. Primary sources of data will include semi-
structured interview, self-administered questionnaire and direct
observations to obtain data from staff of the institute of public
administration and management-IPAM USL. Secondary sources of
data will include extracts from text books, the internet, lecture notes,
journals and published annual reports from IP AM. The data
collected for this chapter is mostly from secondary sources

Data collected from respondents will be analyzed using Statistical

Package for Social Sciences (SPSS). The presentation of data will
be in the form of reports, tablets and meanings will be assigned to
the discussion.

1.8. SIGNIFICANT OF THE STUDY

Since the central focus of IP AM is to become of the lending

university in Sierra and the achievement of it auxiliary objectives, it
is worthwhile to measure this objective and any other auxiliary
P
a
objectives. By evaluating the roles of modem accounting systems of
the entity, one would be able to clearly ascertain whether the
activities and operations of the institution improve on it
effectiveness.
By evaluating accounting information systems of the university and
identifying its possible strength and weaknesses, it will help the
management and staff of the university, shareholders and policy
makers to be well equipped to formulate policies in particular areas
and present a level playing field for all students and make the
institution fair to operate.
For academicians, this study forms the foundation upon which other
related and replicated studies can be based on. The study increases
the body of knowledge in this area. The research will provide an
insight into the accounting information systems of Organizations
and institutions. The need for this therefore is to understand the
extent at which modern accounting systems has effectively
impacted the performance of the institute of public administration
and management-IPAM.

1.9. LIMITATION OF THE STUDY

The secondary source data was mostly used in this research because
we were unable to gain access to the senior accounting officer ,the
ICT staffs and other relevant personnels of IPAM at the time of our
research in-order to conduct interview.
P
a
P
a
P
a