TABLE OF CONTENTS
Title page i
Table of contents v
1.1 Background of the study 1
1.2 Statement of the Research problem 3
1.3 Objective of the study 5
1.4 Significant of the study 6
1.5 Research Question 6
1.6 Scope of the study 7
1.7 Limitation of the study 8
1.8 Study plan 8
1.9 Definition of key terms 9
2.1 Introduction 11
2.2 The public Sector 13
2.3 Frauds and fund misuse 13
2.4 Accountancy and Financial report 18
2.5 The internal control system 19
2.6 Internal and External audit 22
2.7 Taxation System in Nigeria 25
2.8 Types of Frauds 27
2.9 Detection and Prevention of Frauds 29
3.1 Historical background of the study 33
3.2 Method of data collection 34
3.3 Population and sample size 36
3.4 Sampling Techniques 37
3.5 Method of Data Analysis 37
ANALYSIS OF PRESENTATION OF DATA
4.1 Introduction 38
4.2 Data Collection 38
4.3 Data Analysis 39
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary 51
5.2 Conclusion 55
5.3 Recommendation 56
1.1 BACKGROUND OF THE STUDY
Financial control has been a major exercise in the public sector over the years and more attention needs to paid to it on account of increasing government revenue and expenditure. This increasing revenue and expenditure must be controlled to ensure efficient and effective use of public fund entrusted in a set of people in government. strong control on the financial of public sector get the government towards the realization of its set goals and objective on an organization can achieve its set goals without conspicuous set back which need to be reduced to the barest minimum or eliminated completely.
The basic set back paramount in public sector today is that of frauds and misuse of public funds in government treasury. The set up of Nigerian and other developing countries of the world today is characterized with embezzlement, corruption and gross indiscipline and it’s the concern of every government of developing countries and even developed countries to institute sound financial control strategy to save their respective economy from imminent collapse. Employees and non-employees of government department engage in fraudulent practices whilst it cannot strictly speaking be said to be an ordinarily expected human behaviour. The prevalence of it even in the socialist societies would make one to conclude or state that its not an “un-human behaviour” the occurrence of frauds and misuse of funds is worrying because the loss of money invoice does not ordinarily belay to an individual. In every bad cases where frauds occur with crippling frequency and in wholesales size, public sector has often failed in the provision of service which it ought to have provided effectively and efficiently and to its economic activities has failed woefully.
Frequent occurrence of frauds and fund misuse ultimately, distract the attention of various public sector management and the formulation of more effective and efficient financial control devices are instituted in various public ministries and departments to ensure effective prevention of frauds and misuse of public funds. These controls are exercised both within and outside each ministry.
1.2 STATEMENT OF THE STUDY
In Nigerian today, it’s a fact that accountability in all its ramification has been unfamiliar to out public sector. This pathetic situation is assumed to be the cumulative effect of various problems confronting “financial control”. In Nigeria Public sector establishment. As a result, this research is being conducted to highlight the problem of frauds and misuses of funds in public sector and the need and significant importance of financial control system in the public sector.
Some of the major problems inhibiting financial control in public sector are as follows: Poor enforcement, procedures, late finalization of accounts, poor enforcement of laid down procedures or financial control, insufficient financial regulations and poor internal control system in various departments.
There is poor number of qualified accountants and professional in other management field to institute sound financial control system and this may be attributed to poor condition of services obtained in the public sector compared with that of private sectors. It is important to note, there is inadequate attention to revenue collection and expenditures resulting in under utilization, incremental budgetary system which encourage accounting officers and other privilege employees to misuse funds and perpetrate funds. There is also the problem of daily up-rise of financial requirements without constant review of a control procedures and existence of antiquated accounting and financial rules procedures development in accounting technology and government spending. The misuse of poor remuneration to public servant compared with other sector encourage inefficiency and fraudulent practices in public sector and poor services to the populace in turn encourage the third parties to perpetrate frauds in public sector.
There factors are problems inhibiting the effective application of both internal and external financial control system in public sector.
1.3 OBJECTIVE OF THE STUDY
The objective of the study are as follows:
- To confirm the existence of financial control system in public sector.
- To explain the role of internal control system
- Detection and prevention of errors, frauds and misuse of public fund are indicated.
- To explain the effect of tax office at improving tax collection procedures.
- The relevance of auditing for effective control in public sector is explained.
- To discuss the importance of auditing in the tax office.