AN ASSESSMENT OF ISSUES, PROBLEMS AND PROSPECTS OF ACCOUNTING IN THE NIGERIA PUBLIC SECTOR

AN ASSESSMENT OF ISSUES, PROBLEMS AND PROSPECTS OF ACCOUNTING IN THE NIGERIA PUBLIC SECTOR

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BACKGROUND OF THE STUDY

Accounting is sometimes referred to be the "language of business," with the accounting profession serving as the "backbone" of any corporation. This is because accounting, in addition to its other responsibilities, serves as the custodian of the organization's resources and as the vehicle for investing those monies in enterprises that will ensure the organization's survival and growth (Abdullahi et al, 2015).

Accounting, on the other hand, is a dynamic field. It, like language, is not static; it evolves and takes on new responsibilities along the way. The accounting profession, as it relates to the economy's public sector, offers data and information on the sector's past performance in order to prepare for the future. Accounting information is essential for government budgeting (Adebayo, 2013). The institute of chartered accountants of Nigeria (ICAN) and the association of National Accountants of Nigeria (ANAN), two Nigerian accounting bodies, have recently authorized two universities as recognized training centers for the exclusive purpose of teaching accountants for the public sector.

A new plan, the accounting technicians scheme, was launched today (ATS). Joy, a Nigerian accounting institution, was created to teach and develop the people needed in the public sector. However, as commendable as this invention is, the ATS is woefully inadequate to provide the requisite staff for the public sector (Adedeji et al, 2018). The fact is that the government accounting curriculum has yet to be properly established and integrated into our institutions' accounting programs. Aside from that, the country has a plethora of official accounting textbooks, making the ATS a non-starter.

These are issues that must be addressed as soon as possible.

The government treasury schools have provided technical skills to public sector accountants, but no credentials have been issued. The complex structure of federal, state, and municipal government agencies and training organizations, as well as different public sector organizations, working at the national, state, and local levels, has evolved through time as a consequence of various developments.

These non-proprietary organizations supply products and services, which are frequently decided without a political or communal foundation of what is deemed to be wanted or signals (Abdullahi et al, 2015).

The need for a good book-keeping and accounting system, as well as proper accountability for public funds at the operations disposed, arises because government establishments are set up to provide social goods and services for public welfare. Because these establishments finance their activities primarily from government sub ventures that are derived directly and indirectly from governments various sources of revenue (such as fees, charges, central or local taxation, and borrowing), the need for a good book-keeping and accounting system, as well as proper accountability for public funds at the operations (Adedeji et al, 2018). The difficulties that government establishment operators have in maintaining a competent accounting system in order to improve accountability and forecast accounting at these establishments are the focus of this research.

1.2 STATEMENT OF PROBLEM

It is important to highlight that accounting data is frequently distorted as a result of clerical, technological, and non-professional mistakes. The majority of accounting information operators or practitioners desired for management choices. Although these issues affect both the commercial and public sectors, the public sector suffers more. According to Adebayo (2013), the government accounting unit faces a number of issues, including delays in receiving reports from outstations, which delays the preparation of financial reports, delays in the presentation and preparation of annual financial statements, actual values of expenditures are not reported due to a lack of technical skills among most accountants in various sub-sectors, untimely reconciliation accounts, and inconsistency in government accounting.

1.3 PURPOSE OF THE STUDY

Certain objective have informed the choice of this study. The purpose of the study include:

1. To establish the effectiveness of the existing systems of accounting of government unit.
2. To appraise the system and ascertain their suitability
3. To identify and analysis the problems associated with the system of accounting adopted by these organisations, examine their root causes and based on the outcome of the analysis draw conclusion
4. To undertake a prospective view of government accounting need and identify possible improvement development of its application by the public sector

1.4 RESEARCH QUESTIONS

1. Are the existing systems of accounting government unit. effectiveness ?
2. What are the problems associated with the system of accounting adopted by public sector?
3. What are the root  causes of the problems associated with system of accounting adopted by public sector?
4. What can government do to ameliorate the situation and make government accounting system more effective?

1.5 SIGNIFICANCE OF STUDY  

It is hoped that this project work will improve the decision-making of users of accounting information by identifying and analyzing the problems and prospects of accounting in the public sector, as well as the desired recommendation to remedy these problems in order to pave the way for improved quality of accounting information prepared and presented by government accounting personnel or practitioners. As a result, it is believed that the following user group might benefit from this project:

1.Staff and practitioners in government accounting who might benefit from the knowledge.

2.It will be a reference material for accounting students, lecturers, and researchers who may come across a copy in the library for academic or research purposes in the future.

3.Moreover, the success of this project might have a huge impact on the operations of government agencies, which rely heavily on financial data for decision-making.

4.Finally, this study will assist the broader public in a variety of ways.

1.6 SCOPE AND LIMITATION OF THE STUDY       

A research work of this nature is a lengthy one and the research, though intend to conduct an extensive survey, nevertheless the study study shall be restricted to selected government establishments in PHCN..

Moreover, in carrying out the research, certain category of people, which include accountants, other accounts, audit and stores personnel from grade level of and above in these selected few are best suited these for a research of this kind.

Other limitation factors which might further create some constraints include the following.

1. Time constraint
2. Resources at the researchers disposal
3. Availability of relevant data of information
4. Existence of other limiting factors not readily envisaged

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