“The Relevance of Expenditure Control Measure on Government Fund and Their Effectiveness” A case study of Delta State Ministry of Education
Every Organization irrespective of its size, form, or nature of business always aim towards eliminating, or at worst minimizing losses, embezzlement, fraud, or misuse of resources/funds through its employees.
Various legislations have been promulgated by the government at various level to check these misuse of resources/funds in governmental ministries and corporations. At different times, seminars have been organized to educate employees on these issues. This study aims at determining the relevance of expenditure control measure on government funds, and their effectives.
1.1 BACKGROUND OF THE STUDY
In every Organization other than minor ones, there is a process called expenditure control/vote control.
Expenditure control can therefore be defined as the process by which administrators/managers utilize efficiently and effectively scarce resources for the achievement of the organizational goals and objectives.
Hitherto, many studies have been done on expenditure control techniques/measures in business organizations both private and public corporations Most of the known expenditure control measure, used in non-profit oriented public sectors organizations were evolved in those organizations and most of the management expenditure control measures tends to assume that the process is taking place in an undertaken.
The research work, is a study of the relevance of expenditure control measures on government funds and their effectiveness in Delta state ministry of Education as a non-profit oriented public sector.
Its thesis is that the basic control concepts are the same in both profit oriented establishments and other non profit oriented organizations.
1.2 STATEMENT OF THE PROBLEM
The quest for effective, efficient, and prudent administration/management of resources/funds in Delta state ministry of Education cannot be overemphasized. To this extent therefore, the various commissioners at various occasions instructs staffs to slim down cost as they undertake their various programmes and to explore internal sources for their revenue generation to argument their quarterly subventions.
Wastages of financial and material resource should not be tolerated. In this respect therefore it is very crucial to point out that expenses should not be incurred more than necessary. It also follows that expenses should be targeted at the sectors needs rather than its wants.
Expansion within the limited scope of scarce funds will necessitate an optimal utilization of resources and this is feasible through implementation of adequate expenditure control measures tailored in a manner that can allow for maximum utilization of minimum resources.
Furthermore, available financial resources can only be put to their optimum utilization if effective, efficient, and prudent methods of expenditure control measures exists.
1.3 THE OBJECTIVES OF THE STUDY
This study is carried out to examine:
- Some of the expenditure control measures used in government financed and controlled non-profit oriented organizations, specifically Delta state ministry of Education.
- The main obstacles and limitations of each of the examined expenditure control measure in the ministry.
- Suggest some other methods that may be appropriate for application in government owned ministries.
- Recommend to the administrators or management team of Delta state Ministry of Education means of improving the methods already in use in that ministry.
1.4 SIGNIFICANCE OF THE STUDY
It is expected that this study will be of great importance to the Delta state Ministry of Education administration or management board as it will no doubt avail them the double opportunity of knowing the effective and efficient methods of expenditure control measures in use and some other measures that are not currently in use by the ministry.
To the government who owns it, this study will unravel Snags and limitations of expenditure control measures put in place by its ministry which they finance. The general belief is that if effective and efficient measures are applied in controlling expenditures, every kobo expended by the federal government will result in a kobo worth of educational services rendered.
For the public, the tax payers whose taxes are used in financing Ministry of Education, this study will lead to the justification of the taxes which they pay as they will enjoy optimum services for every kobo levied on them.
For management students, particularly accountancy students, this study will offer them deep-rooted knowledge of expenditure control measures operated in Nigeria public sectors.
Finally, the researcher will be adequately armed to face challenges in any public sector if he is employed in its key administrative positions.
1.5 RESEARCH QUESTIONS
The researcher is interested in finding solutions to the following:
(i) Are there expenditure control measures in Delta State Ministry of Education?
(ii) If there are, how effective and efficient are the measures?
(iii) Does the ministry has adequate personnel to apply these expenditure control measures?
(iv) Does absent of expenditure control measures contribute to out of stock syndrome in the ministry?
(v) Are there other expenditure control measures open to the ministry?
(vi) Does expenditure control measures play any major role in assessing the performance and future prospects of the ministry?
1.6 FORMULATION OF HYPOTHESIS
Ho: Expenditure control measures on government funds/resources do not significantly affect the optimum utilization of scarce resources.
H1: Expenditure control measures on government funds/resources significantly affect the optimum utilization of scarce resources.
Ho: Expenditure control measures do not play any major role in assessing the performance and future prospects of Delta State Ministry of Education.
H1: Expenditure control measures play any major role in assessing the performance and future prospects of Delta State Ministry of Education.
1.7 RESEARCH METHODS
The primary and secondary sources of data were used in collecting and analyzing the data required to solve the specified research problem.
In addition to the above sources of data collection, questionnaires were administered to personnels of various departments in the ministry.
1.8 LIMITATIONS AND DELIMITATIONS OF THE STUDY
The research was originally intended to cover all the governmental ministries in the nation as a whole, however due to time and financial constraints, the study is limited to Delta State Ministry of Education.
The researcher has that belief that the expenditure control measures in use by Delta State Ministry of Education nearly approximate the general practice in other ministries.
The authenticity and effectiveness of the research report is impeded by lack of proven adequate research studies on the topic. This handicap therefore made the review of related literature very cumbersome and as such the researcher had to deduce some of the expenditure held with top management and administrative personnel.
1.9 DEFINITION OF TERMS
(i) Expenditure Control: There are activities put in place for confinement of expenses within, with view to avoid unnecessary wastages of resources/funds.
(ii) Public Sector: This refers to that aspect of the economy where ownership of factors of production are wholly by government.
(iii) Administration/Management Guidelines: These are basic principles and practices which members of an organization are expected to adhere to in the conduct of their work.