IMPACT OF FINANCIAL MANAGEMENT SYSTEM ON ORGANIZATIONAL

ACCOUNTABILITY: A STUDY OF SELECTED FIRMS IN NIGERIA

 ABSTRACT

The business organizations is an indivisible economic agent of federal State

government. The business organization therefore contributes to the

development of the rural areas with the social amenities, bringing peace

and harmony among the citizens with the provision of policy. However, the

result of the role of business organization in the development of rural areas

in Nigeria is a result of the financial budget and allocation portioned to the

various business organizations.

 TABLE OF CONTENT

ABSTRACT

CHAPTER ONE: INTRODUCTION

1.1 Background of the study

1.2 Statement of the problem

1.3 Objective of the study

1.4 Research questions

1.5 Significance of the study

1.6 Scope of the study

1.7 Limitation of the study

1.8 Definition of terms

1.9 Organizations of the study

CHAPTER TWO: REVIEW OF LITERATURE

2.1 Conceptual framework

2.2 Theoretical Framework

2.3 Empirical review

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design

3.2 Population of the study

3.3 Sample size determination

3.4 Sample size selection technique and procedure

3.5 Research Instrument and Administration

3.6 Method of data collection

3.7 Method of data analysis

3.8 Validity of the study

3.9 Reliability of the study

3.10 Ethical consideration

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation

4.2 Analysis of Data

4.3 Answering Research Questions

4.4 Interpretation of Result

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary

5.2 Conclusion

5.3 Recommendation

References

APPENDIX

QUESTIONNAIRE
 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Financial management constitutes the most crucial and central

aspect in the administrative process of the business organization. This is due

largely to the fact that finance determines the amount of services, development

and quality and quantity of personnel provided by the business organization.

However, the amount of revenue available to the business

organization and it’s accountability makes for efficient and effective business

organization. Financial and it’s management is a sensitive area in government,

and it’s strictly governed and guided by elaborate rules, regulation and

guideline. Apparently, budgeting is the central activity in financial

management, it includes the financial plan systematically designed showing

details of the governments anticipated revenue and expenditure for a fixed

period of time, which forms the basic and guide of government activities

during the period.

Greater emphasis is always placed on the financial management, as the

pedestal machinery for development and total governance in the business

organization. It equally in skills a level of financial display on the leadership

execution and performance evolution. Furthermore, it is believed that financial

management held’s the prospect of creating many opportunities, full

exploitation of revenue sources available within the business organization

area. This can subsequently create for mobilization and expansion of

commercial activities. In addition and embezzlement associated with the

business organization.

Equally, financial management induces the demand for policy, which

makes for prudent spending, economy in the application of funds and

avoidance of waste.

Ideally the prospect of financial management helps prevent deficit and create

for documentary foundation to question the wisdom and justify the revenue

and expenditure in the planning and policy adjustment in business

organization.

Ardently, there exist problems, which are associated with financial

management in the business organizations. These problems which are wide in

scope and complex in nature, but relative to the diverse business organization

areas. Actually, the business organization requires huge financial resources I

order to provide it’s finances, amplifies their problems. Thus, the low internal

revenue generation in our government appears to be a very wide problem,

which consistency leads to deficit spending in their state of affairs. It is dear

that almost every local, government system possess weak financial base. The

financial departments of many business organizations are adequately stated

with qualified and experienced financial managers, accounts, auditors and

property valuation officers who would apply their skills and initiatives to

develop plans and strategies which would help them harvest and exploit fully
and effectively the internal revenue sources. These indispensable, for efficient

financial management, which are lacking in the business organization have

reduced the revenue generation capacities of the business organization. It is

also observed that the financial management of our business organization of

our business organization is grossly indicated and fraudulent abuse of

priorities is a rampant practice. While public accountability is not taking

seriously in the business organization, business organization accounts are not

regularly audited to ensure financial discipline within financial memorandum

and the prudent management of available funds.

In addition the financial management of the business organization

suffers relatively from the endemic problem of instability in the business

organization. It creates it’s own problem in the business organization finances,

the constant fundamental changes in the business organization does not give

it the required long term for planning, experimentation or alternative strategy

techniques and solutions to problem. The financial management of the

business organization could be better in performance it devoid of constraint

interceptions and changes. Conversely, with the facilities has an adverse effect

on the financial management of the business organization through the

statutory revenue allocation is constructional and legitimate yet it is often with

held, delayed or reduced, affect the financial estimates and management of

the business organizations. In addition, the undue state control of business

organization and it’s accounting system have contributed to how extractive the

capabilities of the business organization are. Orewa observed in this sense

that the late approval of the budgets of business organization have made it

practically impossible to mobilize effective revenue and led to poor

implementation of the budget, deficit and debt burden.

Finally, the lack of effective public enlightenment programme have

significantly created problem to financial management in the business

organization. The negative attitude of people towards taxation, public levis and

fees have reinforced inadequate financial management and the absence of

accountability cum the people’s full inclement in local affairs. Public

enlightenment can help to change management in the business organization.

1.2 SATEMENT OF PROBLEM

Had been shady and muddled treatment to issues that affect

financial management in the business organization. It’s associated prospect

and problems are ignored to the determination of improved business

organization.

1) The poor performances of the business organization are of great

concerns and subsequently call for review a study. Also the wrong perceptions

in the business organization have ridiculed the mobilization of local resources

and prudent utilization of available resources. Insufficient attention has been

given to it by contemporary writers and scholars.

2) The constant problems confronting the business organization have

correlation with the nature, prospect and problem of financial management.

Financial men agent is the critical nerve centre of the very existence of our

business organization.

3) Apparently the low rate of development at the local administration level

and the near absence of government impact and presence which

fundamentally increase the rate of poverty, unemployment and in acceleration

of attractive investment have remained for fuller actives in the business

organization area would be given an objective study in the thesis.

4) The near breakdown of our moral fabrics and institutional basis for

governance have paved way for management attitude which neglect the

purpose of governance and real existence of business organization are

problems which- this study hopes to fundamentally address.

1.3 OBJECTIVE OF STUDY

1) This work endeavors to appraise the financial management styles of the

business organization

2) It will also attempt to refocus attention to the essence of financial

management and accountability in the business organization.

3) It will analyze the problems and prospects coupled with financial

management and accountability in the business organization

4) It will analyze the various obstacles and variables that have affected

financial management and accountability with a view to providing remedies.

5) Finally, it will reduce properly, the prospects of business organization

for development.

1.4 SIGNIFICANCE OF STUDY

 It is hoped that this study will be great benefit to students in the

polytechnics and other institutions of higher learning; the state and the

general public.

It is expected that the study would help to improve the financial management

of our business organization resources.

The study will significantly define the importance of financial management in

government. It will have hindered the development of business organization

areas

Furthermore, it will help to encourage the; issue of auditing, and

accountability in governance, which creates for confidence and development

the study as assumed to offer suggestion and reminders on ways of improving

the financial management of business organizations will identify the neglects

and failures in the management system of our business organization.

1.5 RESEARCH QUESTIONS

1) Does the present financial management system sufficient and

satisfactory to promote development of business organization areas?

2) Does most business organization adopt financial management styles to

caution the problems inherent in the system and area?

3) Is it believed that the prudent financial management in business

organization would boast the economic potential of the area?

1.6 SCOPE OF THE STUDY

Financial management in public administration involves taxing,

budgeting, spending, auditing, accounting and evaluation functions. At the

business organization level, polities circumscribe the budget process and the

various area of expenditure.

Budgeting: a budgeting is a projection into the immediate future of an

organization or government. Government budget today is an annual ritual,

which shows what the government expects to earn and what it purposes to

spend in the forth-coming financial year.

Accountabilities: is the hallmark of financial administration because one who

controls the strings calls the tone and secondly because in democracy officers

should not only be honest but also should appear to be so. Democracy is a

part to devise sorts of mechanical and human means to protect public money

form susceptibility of its officials.

Government rely on one or more of the following sources of revenue to

financial their spending, they are more or less the functions of financial

management.

1.7 LIMITATON OF STUDY

It is important to point out that this research would have been in

the right sense nation wide or state under to make for good generalization.

But as a result of limited resources and other obstacles such as

illiteracy accessibility and unco-operation by respondents and inefficient

transport system among others has contributed me to carryout this research

or study in selected business organization areas of Imo state

1.8 DEFINITION OF TERMS

Financial Management: is the taxing budgeting, spending auditing,

accounting and evaluation functions.

Accountability: Is the degree to which a person must answer to some higher

authority for actions in the larger society or in the organization.

Administration: Administration is defined as a process of mapping out a

procedure to do something and then carrying people along in order to achieve

the stated objective depending on the lasted procedures.

business organization: This is termed as third tie of government, which helps

to educate the rural areas on the operation of the government.

 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 MEANING OF FINANCIAL MANAGEMENT AND ACCOUNTABILITY

Service have had numerous postulations from past and contemporary

writers on business organization. Many of them have posited their works on

the relevant position of business organization to socio-economic development.

Also the reality of financial management in governance is essentially stressed.

The issue of financial management according to Ogunna (1990) constitutes

the most crucial and central components in the management process of the

business organization. It is because finance determines the quality and

quantity of services provided by the government.

Ferguson and metterory holds that money in large sum is required to keep

business organization running to say nothing of keeping them fully abreast of

the time. The sensitive nature money makes financial management and

accountability to be guided by strict and elaborate rules and regulations;

most importantly the financial memorandum (Fm) stipulates how the

business organization council will discharge its responsibilities.

However, Nwagwu (1990;26) in his work on management of human and

natural resources at the business organization level in Nigeria pointed the

essence of financial management and accountability which helps to generate

sufficient revenue for development.

 Adebayo Adedeji (1999) opines that the success or failures effectiveness

and ineffectiveness of business organization depends on the financial

resources and efficient management of the entire resources. This is with

encouraging attempt to meet with the numerous demands of local

administration. Quite from proceeding, coordination is clearing a prospect of

financial management to this; Simon (1970) asserts that it involves the

adoption of mutually consistent decision in combination for achieving the

established goals. It is essential in uniting, harmonizing and directing all

efforts towards achieving a common purpose. Coordination therefore provides

the thread through which control is exercised.

Ofoeze (1997) holds financial management a tool for the mobilization of

human material and other resources at the business organization for

development. It thus sees financial management to be full of prospects for

accelerated development of local areas.

Nwankwo B.C (2002) added the view of seeing the financial management

and accountability as the upkeep of accurate records and financial

information for the put entail investors and others with commercial interest

in the local affairs.

Kowoze et al (1992) has the opinion that the financial management and

accountability lies with inbuilt measurement and correction for the

performances of activities of subordinate in order to make sure that business

organization objectives and plans devised to all aim are accomplished. Knooze
tailored the observed prospect on the effective control, which the inbuilt

principles of financial management display. Mgbach (1999) on the improved

business organization finding through effective monitoring held’s that

financial management is the sustainable improvement in local finance which

can only happen through reconstruction. However, this will only occur

through the use of aggressive monitoring techniques. This will help recognize

the required policy and restructure needed in the government economy.

Financial management of business organization is an exercise that is jointly

carried out by the business organization internally. George Allen and unwind

(1999) constitutes that financial management of business organization funds

are the business organization chief executive, the council, the business

organization treasure and the auditors. The chief executive of the business

organization with the aid of the treasurer and head of department initiates

financial policies; formulate the budget, which is submitted to the council for

debate, modifications and approval. The budgets consist of estimates of

expenditure and estimate of revenue. The council is rested with the ultimate

power of the determination of the business organization appropriations and

revenue for each fiscal tear. The executive implements the budget while the

council monitors the implementation, supervises and controls the executive.

The council exercises a strategic financial control through the

security of the business organization audited accounts, and its power to

surcharge upon any officer for misappropriation or loss of business

organization funds.
 Financial management involves taxing, budgeting, spending, auditing,

accounting and evaluation functions. At all three levels of government,

politics circumscribe the budget process and the various area of expenditure.

In addition, two appropriations and execution managers seek greater control

over debt through budget reform measures, and government in its fiscal and

monetary policy making, attempts to help these managers control the overall

economy through various economic control devices. In this perspective,

Lemay (2001: 268) maintains that, “financial management is inherently

value-la-den. When government decides who and how to tax, and what to

spend its revenue on it is setting its priorities, it promotes some values and

de-emphasizes or even avoid others

2.2 MEANING OF ACCOUNTABILITY

Accountability according to Lemay (2001:321) is the degree to which a

person must answer to some higher authority for actions in the larger society

or in the organization Elected publish officials are accountable to voters.

Public agency managers are accountable to executives and legislatures Agency

leaders are holds general values, and ideas of democracy and public morality.

Leaders are also answerable to special legislative mandates.

Accountability is determined both externally by ( codes of conduct

bureau, economic and financial crime commission (EFCC) Independent

corrupt practices and other related offence commission (ICPC) legal mandates

contained in the constitution of the federal republic of Nigeria and

authorization laws, and internally by organizations rules and regulation or

personal internalized norms of behaviors and moral ethics) there is a

persistent and natural tension between internal external controls to maintain

accountability, checks and balances on government structures. The security

of regular audits and the inquisitive eye of community and media watchdog.

The concept of accountability has often been a casualty been a casualty in

a government services. The reason lies in the very idealism associated with

the processes of decision making proceeds each important and unimportant

decision. Examination is done at one level and decision is taken, at another.

When the decision is finally taken, no one alone is responsible for its

correctness or incorrectness and propriety or impropriety. One almost gets

someone else to insulate oneself from an after shock.

The sense of responsibility and accountability takes a back seat in the

process. At present, government officers are generally good at spending,

government money available in the budgets not in getting good value for it

EXECUTIVE ACCOUNTABILITY

Executive accountability resides the 1999 constitution is specified by chief

executive role which charges the president, with enforcing laws and court

decisions as well as executing treaties ratified by the business organization.

The visibility of the chief executive office results in the president or governors

begin given both the credit and blame for how government serves to

operating.
LEGISLATIVE ACCOUNTABILTY

Legislative accountability refers to the legislative branches responsibility for

how government is run.

NATIONAL ASSEMBLY OVER-SIGHT

Is a primary legislative function. It involves monitoring by the national/ state

assembly in Nigeria of all activities and actions of executive branch agencies

and assessment to see whether laws are properly implemented. The

constitution checks and balance were designed to enable national assembly to

ensure that the president executes the law it enacts.

Accountabilities are the hallmark of financial administration firstly, because

one who controls the string calls the tune and secondly because in democracy

officers should not only be honest but should also appear to be so.

Democracy is apt to device all sorts of medical and human means to protect

public money from susceptibility of it’s officials but accountability does not

end with proper maintaince of accounts and strict adherence to financial

rules. It also involves the principle of wisdom, faithfulness and economy.

Initial rules and norms as well as some independent commission are

mechanisms to hold civil servants within the administration of government

accountability within department or ministry; firstly behavior bounded by

rules and regulation. Secondly, civil servants are subordinates in hierarchy

and accountable to superiors. Nevertheless there are independent watch dog

units to scrutinize and hold department accountable.

The world accountability is synonymous with the word responsibility,

answerability and chargeability.

The techniques introduced recently in financial management in business

organization of Ohaji/Egbema to improve government and control is accrual

accounting by establishing a clear link between expenditure and performance,

accrual accounting helps to focus on outcomes and results not just budget

and pending.

There has been a clear shift from financial accounting to performance auditing

and public accountability in this regard, to overcome some of the challenges

of misadmistration, fraud and corruption and poor services delivery many

countries has been introduced systems and initiatives to strengthen their

public accountability systems especially audit, performance management and

monitoring and evaluation systems.

Clearly, accountability is a multidimensional issue and requires the inter-

relationship between various leadership, management and systematic aspects

to promote effective governance and ultimately public accountability

A public accountability regime would therefore the following key priority areas

in the establishment of a holistic approach to public accountability.

1) Values of principles

2) Institutional arrangements

3) Processes

4) System
5) Reporting instruments and will to ensure accountability Oganna

(1996:259) holds accountability as an essential instrument for effective

financial management.

He defined it as a systematical recording, processing and presentation of facts

relating to the receipts and expenditure and operations of the business

organization with a review ensuring accountability and good management. A

good accounting system serves as a means for preventing wrongful use of

funds and the basis on which action is taken to prevent deficits. It sews as a

documentary foundation for questioning the wisdom with which revenue is

expanded.

Accounting system provides documentary evidence on which those who spend

the business organization revenue justify their expenditure to the auditing

personnel. It also serves as vital sources of information for planning and policy

adjustment.

John pfiffer and Robert preselling sees accountability as a prospect which

facilitates checks on public officials and the administration of duties which

promote efficient administration continuity. Good intentions and ethical

behavior are not sufficient to ensure public accountability. Ultimate

accountability is measured in terms of outcome and constitutes value and not

just money spent. Thus, it is right to outcomes and impact especially in the

business organization services delivery environment. It is necessary to

embrace performance measurement.

Conclusively, public accountability is therefore not just a concept and a sound

legal and policy frame work may not be sufficient to ensure transformation

and achievement of good of accountability requires rigorous efforts put

together a combination of variables in order to achiev3e public accountability.

It is necessary to address all elements to the accountability regime to ensure

that good government prevails and equally import to evaluate an

organization’s public accountability regime against a framework that enables

effective implementation and practice of accountability. A business

organization’s culture of accountability will ultimately ensure success.

2.3 THE ROLE OF FINANCE IN THE LOCAL GOVERNMET

ADMINISTRATION

Finance occupies a very prominent place in the study of public administration

of the several factors that enter into the problem of efficient administration;

none is of greater importance than that of financial administration. Finance in

fact is the fuel for the engine of business organization. It keeps the

administrative machine on it’s wheels. No administration can function without

finance.

In Nigeria, inadequate finance is a major cause of the failure of the

government to improve the standard of living of the people and implement the

various well programme public finance is in fact an integral part of

administration. No act of the government can be performed without money.

Lioyd George once remarked that government is finance. This is quite correct

because the governmental machinery will come to a half unless funds are

available to pay the personnel and purchase the equipment and material

required. Every administrative act, according to while (1996:261) has its

financial implications, either creating a change on the treasury or making a

contribution to it.

Nothing can be done without the expenditure of money, at the very minimum

for the payment of the salary or wage of the officials or employee who acts

available financial resources set a minimum limit on administrative activity as

a whole and one each of it’s separate parts. The management of financial is

therefore one of the first and one of the inescapable responsibilities of

administrations.

The place of finance in the business organization cannot be under-estimated.

Finance is the hallmark of any organization be it private or constitutionally

like the state and central government. To discharge these functions of finance

is there. Personnel are recruited to work and they must be paid.

1) Finance helps in creating the infrastructure of the economy. The system

of roads, railways, bridges, port reservoirs and power stations.

2) Finance also helps in providing social service like scholars and

hospitals, which improve the duality of the labour force.

3) It also helps in running public enterprise like state farms.

The revenue mobilization and fiscal commission (RMAFC) said its regret that

some states have taken advantage of its insistence that they operate the

constitutionally required state joint business organization councils. The

chairman remark at dismay the allegation that some states are tampering with

the statutory allocations to business organization from the federation accounts

thereby leaving them with little or nothing to settle recurrent how much less

the capital expenditure. He recalled that the commission was in the forefront

of those who called on states to enact laws that would facilitate the opening of

their respective state joint business organization accounts and the

establishment of state allocation committees for such accounts on the

understanding that it would provide opportunities for states to make the

constitutionally required contributions to the finances of business

organizations in their domain as required by system (62c7) of the 1999

constitution

The revenue mobilization allocation and fiscal commission has noted a high

level of fiscal dependence of the sub-national government on statutory

allocations from the federation account to the regulation and detriment of

internal revenue mobilization the sharing of funds from the federation account

in Nigeria has therefore been characterized by intense competition by the

business organization trying to secure as much share of the statutory

allocation as possible.

Through the commission is mandated by section 32 (1) in part 1 of the third

schedule to the 1999 constitution of the federal republic of Nigeria to review

from time to time, the revenue allocation formular and principles in operation

to ensure conformity with changing realties attempts by the commission since

1999 introduce a fair just and equitable revenue have been victims of the law.

The high dependence is manifest in the way virtually all the business

organizations in the country wait prayerfully for month federation account

allocation committee (FAAC) distribution in order to carry out routine

recurrent expenditure responsibilities such as payment of salaries.

Other achievement of the commission include remuneration package for

public officers, reconciliation of external debts of governments, proposal on

economic diversification and monitoring all sources of revenue into the

account

2.4 PROBLEMS FINANCIAL MANAGEMENT IN THE business organization

OVER INFLATION OF CONTRACT SUMS

business organizations in Nigeria have a very mad chase for money. The effect

of these wicked tendencies precipitated by wrong value system and corruption

is that administrators inflate unreasonably the contract sum of doing any

work for the people.

The order is that the chairman of the business organization will normally

indicate how much his own share of contract value will be in the same way,

the treasure who will pay the money to the contractor will also indicate how

much his own share of money will be. Then the little levels expect that their

palms be greased as nothing goes for nothing.

This situation is so intended as a result of the government silent policy of

share the money at all levels

NEAR ABSENCE OF INTERNALLY GENERATED REVENUE

In spite of the multiple internal sources of revenue available t the business

organization have not been able to generate enough funds that will sustain its

functions and services.

Researchers have shown that the manger incomes which to the business

organization are strong evidence of their weak financial bases. The effect of

this weak financial base is that the business organization merely use whatever

that is available to pay salaries and allowances of their staff and councilors,

with little or nothing left after overhead costs for development oriented

projects.

High poverty level among the rural populace well as deplorable infrastructures

(where any exists) accounts for low internally generalized revenue to the

business organization. Sometime there is a total absence of some of the

internal revenue sources of the business organization in some areas. For

instance there is a total absence of tenements that could be valued and rated.

Sometimes also rural motor parks and market are either absent or in

deplorable states with the result that they do not yield the expected revenues

to the council. The prevailing poverty level amongst the rural populace

accounts for the high rural urban migration, which in availably denies the

business organization its manpower resources.

It is observed that the business organization is weakest in its financial

management in the area of control of funds.

Accounting procedures are not strictly observed, auditing of accounts is

irregularly conducted, the rule of provided in the financial memorandum are

qualms, without qualms, while the instrument of audit alarm committee is

rarely used by the government relating to financial management, but the

sanctions are rarely applied while offences are frequently committed

Mbgachi (1999) further agrees with Smath (1989: 245) that the financial

management and accountability of the federation account, with the problem of

financial management of the business organization services, Ofoeze identified

it to be peculiar to the rural settings with its relative environment and socio-

political and economic factors.

Equally, the views of many were suggestive of measure to sustain the prospect

and ameliorate the financial management and accountability in the business

organization, especially as it affects selected business organization Areas of

Imo State
 CHAPTER THREE

RESERCH METHODOLOGY

3.1 INTRODUCTION

This chapter introduces the methodology used. The chapter talks about the

research design, sources of data and others.

3.2 RESEARCH DESIGN

This chapter is concerned with the research design and methodology. It helps

to explain the approaches used in gathering the data needed for the solution

of the research problem.

In this research work the researcher used survey and empirical research

method. This involved developing the necessary instruments and

determination the sample to be used for the study. The instruments that

were used are questionnaires, interview and observations. All these helped to

obtain information from the respondents.

3.3 SOURCES OF DATA

Primary source: this means information obtained right from the person that is

involved in the study of the research as a whole.

These primary sources of data are accurate and reliable because of the

researcher’s direct contact and person involvement in the recording of facts.

The primary sources of data used here are questionnaires, interview and

observation as mentioned before.

Secondary sources: for the researcher’s study, this type of data collection

material is also classified in two areas.

The first method involves the internal sources. This entails the gathering of

information from the organization rerecords personal booklets, bulletins,

pamphlets and others.

The secondary source is the eternal sources. This involves the gathering of

information from textbooks, journals, magazines they are relevant to the

research study to help for better under standing.

3.4 METHOD OF DATA COLLECTON

Apparently, both primary and secondary sources of data. Data were employed;

this is the purpose of objectivity.

These tools employed for data collection includes questionnaires, personal

interview, documentary materials and observation.

QUESTIONNAIRES: A total number of one hundred and fifty copies of

questionnaire designed to cover the relevant areas were distributed.

Furthermore, it is the main instrumented used for collecting the primary data

required for the research. It is designed to certain most of the features of a

closed questionnaire in order to encourage response and validity in terms of

representatives of the questionnaire, which is divided into sections

SECTION A: Comprises of personal information from the respondents such as

name, material status e.t.c while

SECTION B: Comprises of the questions concerning the organization. The

investigator also held oral interview with some workers, administrators,

auditors and other who have financial dealings with government.

3.5 POPULATION AND SAMPLE SIZE DETERMINATION

The population of the staff of the Nigeria bottling company is 1,000. One of a

total of 1,000 which is the population of study, a total sampling of 150 was

drawn.

3.6 SAPLING TECHNIQUES

The researcher made use of sampling random sampling. The technique was

used in order to reduce bias so that every body in the organization will have

the equal chance of being selected.

The sample random sampling selected the respondents to the questionnaire

through the use of balloting

3.7 ADMINISTRATION OF DATA INSTRUMENT

The questionnaires distributed to the respondents were 120. The

questionnaires were distributed to both senior and junior staffs of the

organization used for the study.

3.8 VALIDITY AND RELIABILITY OF INSTRUMENT USED

The questionnaire distributed to the respondents were followed up with

personal interview to know if the responses given n the questionnaire

corresponds with the answer given with which interview was done face to face.
3.9 METHOD OF DATA ANALYSIS TECHNIQUE

The data used for this study was presented in the tables. The respondents was

analyzed using simple percentage formular

= F x 100

N 1

Where F = frequency of respondents

N = total population of respondents.

 CHAPTER FOUR

4.1 DATA PRESENTATION AND ANALYSIS

This chapter deals with the presentation of data obtained from the

questionnaires distributed to student in the institution. The responses one

tabulated and analyzed using percentage.

TABLE OF DISTRIBUTION OF QUESTIONNAIRE TO DEPARTMENT

DEPARTMENT NO DISTRIBUTED NO RETURNED

Administration 30 18

Education 30 24

Works 30 2

Finance 30 16

Health 10 14

Sport/validation 20 17

Total 150 120

Field study, 2014

The table above shows the frequency of distribution of

questionnaire to the six departments of institution from the data 150 (one

hundred and fifty) questionnaire were distributed and with intense efforts,

only 120 (one hundred and twenty) were collected for use to ascertain whether

the present financial management system in selected business organization is

sufficient. In the table 1 24 (20%) out 120 respondents agreed with the

statement 88(73.3%) of the same respondents disagreed with the statement

8(6.72%) remained neutral and 24 representing 2% of the respondents felt

satisfied with the present financial management system in our business

organization. This holds that there is disagreement from the respondents of

their satisfaction with the financial management system.

4.2 TESTIG OF RESEARCH QUESTIONS

QUESTION 1

Does the present financial management system sufficient and

satisfactory to promote development of the business organization?

Table 1

Options Respondents Percentage

Yes 95 77.2

No 25 26.8

Total 120 100

From the data presented above 95 strongly agreed with the statement.

25 (20.8%) said no.From the data, there is the assumption with overwhelming

response f 79.2% strongly holding the conclusion that financial management

constitutes a crucial factor in business organization and development.

Question 2

Does the amount of finance get received by business organization

influences the prospect performance?

Table 2
Options Respondents Percentage

Yes 95 79.2

No 25 20.8

Total 120 100

Field study 2014

Looking above table, 95 out of 120 (79.2%) of the respondents said

yes. 25 (20.8) said no. there is a strong affirmative response of (79.2%) to the

statement.

QUESTION 3

Does the accountability in the business organization faulty and produces

the basic for wrongful use of funds?

Table 3

Options Respondents Percentage

Yes 74 61.6%

No 46 38.4%

Total 120 100

Base on the above table, 74 (61.6% out of 120 respondents, said yes

and 46 (38.4%) said no. it therefore presents that the 120 respondents

74(61.6%) backup the statement while 46(38.4%) respondents opposed the

statement.

Question 4
 Does corruption, low income generation, poverty abuse of the other

process and misappropriate associated with lack of proper financial

management in the business organization?

TABLE 4

Options Respondents Percentage

Yes 72 60

No 48 40

Total 120 100

From the data above 72 (60% out of 120 said yes, 48(40%) said no

In their words the data concluded that 72 out of 120 respondents (60%)

showed agreement with the statement.

Question 5

Does the provision of business organization services depend on targeted

revenue?

Options Respondents Percentage

Yes 87 79.5

No 33 27.5

Total 120 100

The data above respondents the respondents and the percentage of

their responses. 87 out of 120(72.5%) said yes with the statement 33 (27.5%)

said no.
From the data 87(72.5%) of the respondents were solidly in support of the

statement.

Question 6

Can this study provide the organization with vital information that will be

useful?

Table 6

Options Respondents Percentage

Yes 93 77.5

No 27 22.5

Total 120 100

The table above shows that 93(77.5%) out of 120 respondents said yes

27(22.5%) said no.

Based on the above there is strongly believed that this study provide the

organization with vital information that will be useful to them.

Question 7

Is budget the central activity in financial management in business

organization ?

Table 7

Options Respondents Percentage

Yes 82 68.4

No 38 31.6
Total 120 100

Field study, 2014

Based on the table above it shows that 82 out of 120 respondents (64.4%) said

yes, 38(31.6%) said no. from the strong agreement it means that budget is the

central activity in financial management selected business organization area.

Question 8

Can proper financial management provide effective measure to stem fraud,

corruption and embezzlement associated with business organization?

Table 8

Options Respondents Percentage

Yes 95 79.2

No 25 20.8

Total 120 100

With the data above 95 (79.2) out of 120 respondents said yes to the

statement, 25 (20.8%) said no.

From the strong agreement of 95(79.2%) of the 120 respondents

evidently maintains the fact that financial management rules and regulation

and guidelines are faulty in the business organization.

Question 9

Is it true that the business organization posses weak financial bias?

Table 9
Options Respondents Percentage

Yes 82 68.4

No 38 31.6

Total 120 100

Based on the table above, it shows that 82 out of 120 respondents

(68.4%) said yes, 38(31.6%) said no.

Question 10

Is it true that the dependence on federation accounts and inadequate

loan facilities has in adverse effect on the financial management of the

business organization?

Table 10

Options Respondents Percentage

Yes 95 79.2

No 25 20.8

Total 120 100

From the data above, 95(79.2%) out of 120 respondents said yes to the

statement 25(20.8%) said no

From the number that said 95 of 120 respondents it means that the

dependence on federation accounts and inadequate loan facilities has in

adverse effect on the financial management.

Question 11
 Do you believe that the present financial allocation the business

organization is emerging to carry out their function in the rural communities?

Table 11

Options Respondents Percentage

Yes 87 72.2

No 33 28.5

Total 120 100

From the data presented above 87 out of 120 respondents said yes to the

statement. 33 said no.

It means that 72.5 percent of the respondents

Question 12

Does the business organization provide essential that enables the

development of rural area?

Table 12

Options Respondents Percentage

Yes 74 61.6

No 46 38.4

Total 120 100

From the presentation of the data above, 74 said yes. 46 (38.4%) said no.

From the strong agreement 74 respondents business organization provide

essential service that enable the development of rural area.

Question 13

Does the instability of business organization have any negative effect in

the business organization?

Table 13

Options Respondents Percentage

Yes 95 79.2

No 25 20.8

Total 120 100

From the data 95 (79.2%) said yes, 25 (20.8) said no from the strong

agreement of 95 (79.2%) out of 120 respondents said yes 25 (20.8%) said no.

From the strong agreement of 95 (79.5%) of the 120 respondents.

Question 14

Can this study “financial management” have any benefit to the

organization as a whole?

Table 14

Options Respondents Percentage

Yes 93 77.5

No 27 22.5

Total 120 100

Field study 2014

From the data 93 (77.5%) said yes, 27(27.5%) said no.

From the data above, it means that financial management has benefit to the

organizations.

Question 15

Is it believed that finance determines the quality and quantity of

services provided by the government?

Table 15

Options Respondents Percentage

Yes 90 75

No 30 25

Total 120 100

From the data presented above, 90 (75%) said yes, 30 (25%) said no.

From their strong agreement it means that finance determines the quality and

quantity of services provided by the government.

 CHAPTER FIVE

5.1 SUMMARY, CONCLUSION AND RECOMMENDATION

Basically, the thesis tends to review the impact of financial management

system on organizational accountability: a study of selected firms in Nigeria.

Financial management was seen to be crucial and pedestal in business

organization development and governance.

This is largely to the importance of finance in every human endeavors and

organization. It’s management is sensitive and touching to the overall

attainment of goals. It holds the opportunity for the full exploitation and

mobilization of local resources this prospect is quite interesting in helping to

accelerate growth and development.

In addition, it behaves the prospect of stemming the tide of fraud, corruption

and embezzlement system. This agrees with view of Ocrunna (1996) on the

essence of financial management.

Furthermore, it is observed that most departments adopt suitable competition

method to suit their convenience and peculiarities. The view, many observed

in table three indicates efforts to cushion the associated problems.

Financial management would help in the proper utilization of available

resources and creates for effective co-operation and control of business

organization affairs. All these are to be affirmed through planning measures.

5.2CONCLUSION
Financial management is quite crucial in business organization. It is inevitable

and dressing the entre activities of the system. It operates with stringent rules,

guides and regulations; thesis rules help in co-ordination, stemming fraud

and embezzlement, supervision and control financial management.

Budgeting is equally essential and endemic with financial management. It

therefore holds that financial management is inherent with prospects and

accountability the prospect includes:

1) It creates for many opportunities for full exploitation and utilization of

resources and revenue available to the business organization

2) It provides for effective measures against fraud, corruption. Wastages

and extravagance and in monitory projects over development efforts.

3) It includes demand for policy and planning to guide spending of funds

4) It provides for coordination and control of business organization

activities and development.

5.3 RECOMMENDATIONS

1) The business organization should employ within it’s service financial

experts to handle their affairs.

2) Relevant bye-laws should be promulgated to stem fraudulent abuse of

office, mismanagement and corruption

3) There should be state economic and development policy that will

integrate the business organization, so as to help mobilize more revenue.

4) Public enlightenment should be encouraged.

5) More autonomy and independence and financial assistance should be

given the business organization.

6) Financial experts should be employed in the business organization.

7) The business organization structure should be reorganized by prudent

financial management.
 BIOGRAPHY

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Benin (Ethiopia pub. (corp)

 APPENDIX 1: QUESTIONNAIRE

1) Does the present firms financial management system sufficient and

satisfactory to promote development and performance of the firm?

Yes No

2) Does the amount of financial get received by business organization

influence the prospect development?

Yes No

3) Does the accountability in business organization faulty and produces

the basic for wrongful use of funds?

Yes No

4) Does corruption, low-income generation, poverty abuse of the other

process and misappropriate associated with lack of proper financial

management in the business organization?

Yes No

5) Does the provision of business organization services depend on targeted

revenue?

Yes No

6) Can this study provide the organization with vital information that will

be useful to government of administration?

Yes No

7) Is budget the central activity in financial management in business

organization area?

Yes No
8) Can proper financial management provide effective measure to stem

fraud, corruption and embezzlement associate with business organization?

Yes No

9) Is it true that the business organization possess work financial bias?

Yes No

10) Is it true that the dependence on federation accounts and inadequate

loan facilities has in adverse effect o the financial management of the business

organization?

Yes No