THE ROLE OF ACCOUNTING IN THE CONTROL OF GOVERNMENT EXPENDITURE

THE ROLE OF ACCOUNTING IN THE CONTROL OF GOVERNMENT EXPENDITURE

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Accounting is said to be a language of business. Accounting is the act of recording, classifying and summarizing; analyzing, interpreting and reporting financial transaction.  Every body in the society works with accounting concepts and information in their duty activities, whether preparing a household budget, balancing check book, prepaid income tax return, running an association or an organization. Therefore the owners and managements of any firms need accounting knowledge in order to understand what accounting is al about.

The major purpose of accounting is to provide financial information or records about an economic entity. In order to do this there is need of keeping track of the daily business activities. The methods used by a business to keep records of its periodic accounting reports comprises the accounting system is to create a systematic record of the everyday business transaction or activity in terms of many ways, such as follows;

i.  By writing with pen and pencil

ii. By printing with mechanical or electronic e.g digital computer

iii. By punching roles or making magnetic impressions cards or tape.

Accounting information can be created thus;

Recording

Classifying

Summarizing

Accounting reports are usually renewed by users of accounting information. since the information needs of various users differ. It follows that the accounting system of a business entity must be able to provide various types of accounting reports. The information in these reports must be presented in accordance with certain ground rules and assumption, so that users of the reports will be able to interpret the information property.

1.2   STATEMENT OF PROBLEMS

It has been said that accountants plays an important role in the control of government expenditure and this role they play have some effect.  The problems inuring accountants from implemented effective control are stated below;

1. Lack of understanding of the purpose of government accounting among the society in general and the following specific groups in particular, the policies, the administrations and a substantial proportion of the accounting personnel in government.

2. Lack of co-ordination between budgeting and accounting which are complimentary functions, non use of government accounts for budgeting function by the budget department.

3. Shortage of qualified accounting staff due to lack of training facilities within and outside government.

4.  Difficulty of pushing through proposals of improvement in financial administration at both national, state and departmental levels.

5. Failure to apply computerization effectively to the accounting systems.

6. Accounting personnel poses inadequate accounting education, therefore poor understanding of the role of accounting function in government consequently cannot make desirable impact of the all notices of his organization.