Effect of Financial Planning and Control on Performance of Public Sector Organizations in Nigeria
Chapter One
OBJECTIVES OF THE STUDY
Within the ambit of this research topic, “Financial control and accountability in Public Sector”, the purpose of study is not farfetched. The purposes of the study can be summarized in these ways:
- To examine whether there is appropriate planning and control of public funds in public sectors in Nigeria.
- To ascertain if accounts of public agencies are properly kept and maintained.
- To establish whether financial controls and accountability in the public sector are effective and efficient.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Concept of Internal Control
Anthony (2014) defined internal control as a process effected by an organizations structure, work and authority flows, people and management information systems designed to help the organization accomplish specific goals or objectives. In his view, it is a means by which the organizations resources are directed, monitored and measured. He added that there is need to put in place circumstances ensuring that procedures will be performed as intended; right attitudes, integrity and competence, and monitoring by managers.
Ishumgisa (2011) considered internal controls as a process comprising five components; control environment, risk assessment, control activities, information and communication, and monitoring. The author noted that each component influences all aspects of an organization’s activities whether administrative, financial or accounting operations. In this respect, the author stated the need for effective functioning of each of the components for the organization to attain the purpose for which it was established. A control may exist within a designed function or activity in a process as well as in an entity-wide or specific to an account balance, class of transactions or application. However, Meigs (2008) continue to say that controls have specific characteristics; they can be automated or manual, reconciliations, segregation of duties, reviews and approval authorizations, safe guarding and accountability of assets, preventing or detecting error or fraud, among others. Controls within a process may consist of financial reporting controls, operational controls and compliance with laws and regulations which in essence, reduce process variation, leading to more predictable outcomes in an organization.
According to Frank (2009), there are three types of controls that the entity’s internal audit function should recognize: preventive, authorization and detective controls. Preventative controls prevent risks from occurring for example; segregation of duties, recruiting and training the right staff. Authorization controls prevent fraudulent or erroneous transactions from taking place. Detective controls which detect errors or fraud that has not been prevented. These help to deter undesirable acts in the organization especially in public sector. They could be exceptional reports that would reveal that controls have been bypassed. They provide evidence that a loss has occurred but do not prevent loss from occurring, for example, large payments from government treasury being made without authorization.
COSO (2004) divided internal controls into two complementary forms, the accounting controls and administrative controls. Accounting controls were viewed as safeguards to control assets and ensure accuracy of financial records while administrative controls are safeguards designed to provide operational efficiency and adherence to policies and procedures. Moreso, objective setting is a precondition to internal control.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine effect of financial planning and control on performance of public sector organizations in Nigeria. federal medical center forms the population of the study.
SAMPLE SIZE DETERMINATION
A study sample is simply a systematic selected part of a population that infers its result on the population. In essence, it is that part of a whole that represents the whole and its members share characteristics in like similitude (Udoyen, 2019). In this study, the researcher adopted the convenient sampling method to determine the sample size.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain effect of financial planning and control on performance of public sector organizations in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of effect of financial planning and control on performance of public sector organizations in Nigeria
Summary
This study was on effect of financial planning and control on performance of public sector organizations in Nigeria. Three objectives were raised which included: To examine whether there is appropriate planning and control of public funds in public sectors in Nigeria, to ascertain if accounts of public agencies are properly kept and maintained and to establish whether financial controls and accountability in the public sector are effective and efficient. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from federal medical center, Owo, Ondo State, Nigeria. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Accountability is a central concept for governance. Based on the findings summarized above, the following conclusions were drawn by the researcher: The present financial control and accountability are effective and efficient. The administration of public funds is proper. Accounts of government are properly maintained and control of Government funds is appropriate.
Recommendation
In the light of this study, the researcher makes the following recommendations: The existing financial controls should be strengthened in order to improve the accountability level. These among others include employing more qualified staff, putting in place the planning committee and emphasizing external auditors frequently. A pro-active legislature and regulatory framework should not only exist on paper but must be operational. The provision of 1999 constitution giving time for submission of financial statement auditing and report, and review by Public Account Committee (PAC) should be strictly adhered to with punishment spelt out for non-compliance. The constitution should be amended to provide for the qualification of members of PAC.
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