INTRODUCTION
1.1 The Background of the Study
The economic development of a country is often planned and financed by it’s government. Many countries in Africa have recently built ‘DAM’ (such as Aswan in Egypt and kanji dam in Nigeria.) to provide electric power and essential services.
Economic development like these can only be financed by government. And if government is to provide public services and to exercise control over the economy, it needs great amount of money to pay for the development project and to employ those people who work for it.
In Nigeria revenue generation can be categorised into two; namely, oil revenue and non oil revenue. Oil revenues include royalties, petroleum profite.t.c. while non oil revenues include indirect t taxes, import duties, export duties e.t.c.
Each year, a government should produce a budget, which is a plan for spending the revenue in its various departments and for different development. This budget has to be approved by the National assembly which consists of the people representing the interest of their electorates.
In Nigeria, the public sectors consist of three tiers of government whose status and power are defined and guaranteed by the constitution.
They are Federal, State and Local governments. The federal, state and local governments conduct their activities through two major forms of organization;
Ministries such as Ministry of finance, Health, education and parastatals such as hospital management Board of Ogun state water corporation etc.
Hence, government accounting may be viewed ‘as the system adopted by the government establishment in rendering their account of stewardship to the public and where necessary to the management’ since the aim of government establishment is to make profit, referred to as ‘fund accounting system’.
Statement of Problem
With the present economic condition in which the people focus attention on the public sector for the provision of amenities, it has been observed that various irregularities were going on in the public sector which is now an open secret.
Such irregularities and lack of amenities are those arising through poor or inefficient management of government accounting and which may result in losses. This may further lead to other irregularities as;
Irregularities not directed or immediately resulting in losses to the government, but which infringe upon budgetary control and proper financial management.
Irregularities including those resulting in losses to government due to either fraud, negligence or incompetence.
Therefore, proper accounting system and its implementation and compliance is necessary for the effectiveness of government functions so that interested users of government account may make appropriate decision relating to the economy of the country.
Significance and Relevance of the Study As it is now a common that the major problem of government account is the mismanagement of fund and inefficient management of public sector accounts. Based on this, it is hoped that this project will examine the procedure of keeping books of account and record.
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