Public Administration Project Topics

The Effect of IPPIS in the Control of Payroll Fraud in Nigeria Public Sector

The Effect of IPPIS in the Control of Payroll Fraud in Nigeria Public Sector

The Effect of IPPIS in the Control of Payroll Fraud in Nigeria Public Sector

CHAPTER ONE

Objective of the study

The objectives of the study are;

  1. To ascertain whether the implementation of the IPPIS hindered payroll fraud in the Nigerian Federal Civil Service
  2. To ascertain the role IPPIS play in storage and updating of personnel records required for payroll administration in the Nigerian Federal Civil Service
  3. To ascertain whether IPPIS been able to minimize leakages and wastages in the Nigerian Federal Civil Service
  4. To ascertain the impediments to the effective implementation of IPPIS in the Nigerian Federal Civil Service

CHAPTER TWO

LITERATURE REVIEW

Introduction

According to the Association of Certified Fraud Examiners, payroll fraud is the major source of accounting fraud and staff theft. The fact is, fraud perpetrated in the payroll is not avoidable, but is catchable. Any person at any time can steal. However, catching and minimizing the risk is what is emphasized. Periodically reconciling the payroll at least quarterly with persons other than the staff who prepares the payroll is the best way to do it. Payroll fraud are of two common types, the first being falsification of attendance time, this type of fraud which can be identified easily through the payroll reconciliation and staff evaluation method. The second most common type of payroll fraud is “ghost employees.” Ghost employees are employees that do not exist. Payroll fraud involves the theft of cash from government establishment through the preparations of the establishment’s payroll. Some prominent examples of payroll fraud are: Pay cheque diversions, Kickbacks, and Ghost workers. Like other forms of crimes, payroll fraud is a type of crime is prevalent at all levels of government in Nigeria. We have observed, that as a type of corruption, it continues because the society and the environment we live in today support material accomplishment (Babalobi, 2008). This represents attempt to safeguard wealth or power at government expenses by government employees. Payroll fraud thrives because of greed on the part of public officers to divert government funds to personal accounts to make quick money. Fraudster and other perpetrators see it as the quickest means to “get rich quick”. Jaja (2012) observed that, passion for worldly things, pressure for a shortcut to wealth, exaltation, and approbation of illicit riches among others account for the increased rate of crime in Nigeria. The regrettable yard stick of measuring good life in Nigeria is ostentatious living and wealth (Olaleye, 2008). It therefore shows that the unending desires for riches by whatever feasible mean contribute to fraud in public sector. According to Babalobi (2008), corruption in the public service is encouraged by weak government institutions, poor pay incentive, lack of openness and transparency. In his view, the payroll fraud apparently becomes a means to making up with the meager pay incentives. Obinna (2013) noted that, there is collaboration within the system that enhances the operation of payroll fraud. He further observed the insider influence as a means that tends to obstruct possible anxiety and arraignment of offenders. It has not been easy for the government to get to the source of the problem which is fueled by employees’ corruption

 HISTORY OF INTEGRATED PERSONNEL AND PAYROLL INFORMATION SYSTEM (IPPIS).

Integrated Personnel and Payroll Information System (IPPIS) was first Initiated by the Federal Government in the year 2006. The intention was to improve the effectiveness and efficiency in the storage of personnel records and administration of monthly payroll in such a way to enhance confidence in staff emolument costs and budgeting. IPPIS is a child of the Federal Government Reform Programme which was conceptualized at the Bureau of Public Service Reform (BPSR) for the purpose of centralized payment of all civil servants in the employment of the Federal Government. The IPPIS project started in April 2007 with the enrolment of the seven pilot Ministries, Departments and agencies (MDAs).

 

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 the effect of IPPIS in the control of payroll fraud in Nigeria public sector. Lagos state civil service commission forms the population of the study.

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 the effect of IPPIS in the control of payroll fraud in Nigeria sector. 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 the effect of IPPIS in the control of payroll fraud in Nigeria sector

Summary        

This study was on the effect of IPPIS in the control of payroll fraud in Nigeria sector. Four objectives were raised which included; To ascertain whether the implementation of the IPPIS hindered payroll fraud in the Nigerian Federal Civil Service, to ascertain the role IPPIS play in storage and updating of personnel records required for payroll administration in the Nigerian Federal Civil Service, to ascertain whether IPPIS been able to minimize leakages and wastages in the Nigerian Federal Civil Service and to ascertain the impediments to the effective implementation of IPPIS in the Nigerian Federal Civil Service. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Lagos state civil service commission. Hypothesis was tested using Chi-Square statistical tool (SPSS).

 Conclusion

Payroll fraud is widespread in Nigerian public sector; it is reported to have invaded Ministries and parastatals in Nigeria. It is a misery to the development of the country and Rivers state in particular as resources meant for development are diverted into private bags. These fraudulent acts weaken effective governance and wear away the social fabrics of the State. Until government adopt a proactive measure to prevent Payroll fraud in the state and prosecute culprits of this fraud using cutting edge techniques, the biometric exercise will only achieve very little in combating corruption. The state government will continue to waste its resources paying salaries, which will have a negative effect on civil servant’s welfare in particular and wave of development of the state in general.

Recommendation

  1. There is necessity for the Government of Nigeria and mostly that of Rivers State to be proactive in the combat against fraud in its civil service.
  2. Rivers State Government is encouraged to learn from the developed societies on how to investigate fraud using cutting-edge technique called Forensic auditing. The money paid on biometrics and endless verification/screening exercise should be channeled for training of deserving Rivers indigenes as forensic accountants.
  3. It was recommended that the State Governments should create anti-fraud Department from the Ministry of Finance.
  4. Again, Training Bureaus of the state civil service should be empowered to train accountants to specialize in forensic auditing. Upon completion of their studies, these Accountants should be deployed to man all the Ministries, Departments, and Agencies to help address the issue of payroll fraud in the Public Service.
  5. Ministries and parastatals should regularly monitor their administrative activities and prosecute any officer(s) found embezzling public funds and make the head of account unit answerable for any such misappropriation.
  6. The Economic and Financial Crime Commission (EFCC) should be fortified financially and technologically for effectiveness in their services to the nation, and for effective use of their resources both human and capital. The anti-graft agency should hire forensic accountants for professional detection of evidences which will assist litigation in the court of law.

References

  • ACFE (2010). Report to the Nation on Occupational Fraud and Abuse: Global Fraud Survey. Retrieved from www.acfe.com
  •  Adeniyi A.A. (2011): Auditing and Investigations Wyse Associates Limited, Ikeja Nigeria.
  •  AICPA (2007). Concealed liabilities Retrieved from: www.aicpa.org [Accessed 3 July 2011] pp.1-10
  • Akenbor C. and Ironkwe U. (2014). Forensic Auditing Techniques and Fraudulent Practices of Public Institutions in Nigeria Federal University, Otuoke, Nigeria University of PortHarcourt, Choba, Nigeria. Journal of Modern Accounting and Auditing, ISSN 1548- 6583; April 2014, Vol. 10, No. 4, 451-459.
  •  Akinbuli S. F. (2013). An Assessment of Accountability in the Public Sector in Nigeria B.Sc., M.Sc. LL.B, BL. AMNIM, FCA, ACTI. Ph.DDistance Learning Institute, University of Lagos, Akoka Lagos-Nigeria Arabian Journal of Business and Management Review (Nigerian Chapter) Vol. 1, No. 3, 2013
  • Achua, J.K. (2009): Reinventing Governmental Accounting for Accountability Assurance in Nigeria. The Nigeria Research Journal of Accountancy, the Institute of Chartered Accountant of Nigeria, Lagos, Nigeria. October, 2009, Vol. 1No. 1. pp 1-13
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