ANALYSIS OF SOURCES AND USES OF FUND IN GOVERNMENT INSTITUTIONS
(A CASE STUDY OF KADUNA POLYTECHNIC, KADUNA )
TABLE OF CONTINENTS
Title - - - - - - - - - - - i
Declaration - - - - - - - - - ii
Approval - - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Abstract - - - - - - - - - - vi
Table of Continent
- - - - - - - - vii
1.0 Introduction - - - - - - - - - 1
1.1 Background of
the Study - - - - - - - 1
1.2 Statement of
the Problems - - - - - - - 6
1.3 Objectives of
the Study - - - - - - - 6
question - - - - - - - - 7
of the Study - - - - - - - 7
1.6 Scope of the
Study - - - - - - - 8
Background of the Case Study - - - - 8
1.8 Definition of
Terms - - - - - - - 12
review - - - - - - - - 13
2.1 Introduction - - - - - - - - - 13
2.1 Definition of Accounting- - - - - - - - 13
Resources Available to Higher Education - - - 19
2.3 Revenue Utilization
in Accounting Procedure - - - - 23
Utilization in Tertiary Institution - - - - - 25
2.5 Sources of
Revenue in Kaduna Polytechnic - - - - 26
2.6 Usage of Revenue
in Kaduna Polytechnic - - - - 29
2.7 Efficiency of
Revenue Generated - - - - - 30
2.8 Adequacy or otherwise
of Revenue - - - - - - 31
2.9 Conclusion - - - - - - - - - 32
Methodology - - - - - - - - 34
3.1 Introduction - - - - - - - - - - 34
3.2 Population and
Sample Size - - - - - - 34
3.3 Sampling Techniques
- - - - - - - 35
3.4 Sources and Methods
of Data Collection - - - - - 35
3.5 Methods of
Data Analysis - - - - - - - 35
for the Choice - - - - - - - 35
4.0 Introduction -
- - - - - - - - 36
presentation, analysis and interpretation - - - - 36
Presentation - - - - - - - - 37
4.3 Data analysis
and interpretation - - - - - - 37
4.5 Summary of
findings - - - - - - - - 39
5.0 Summary, Conclusion and Recommendations - - - 41
5.1 Summary - - - - - - - - - 41
5.2 Conclusion - - - - - - - - - 42
5.3 Limitation of
the study - - - - - - - - 44
Recommendations - - - - - - - - 44
Bibliography - - - - - - - - - 47
- - - - - - - - 48
1.1 BACKGROUND TO THE STUDY
Money is an organization tool which is used for proper management, control
Economically, it is said to be scare in supply and the scare nature
of it makes it necessary for good and effective management. Every organization
whether small or large, requires good Accounting system for efficient
management and control of her finances which may be done through a specified
i. Controlling of Assets
ii. Internal/External Auditing
iii. Keeping of Proper Books
iv. Preparation of Financial Statement
v. Compliance with Legislation/Statutory Requirement.
A good Accounting System would provide orderly assembly of
Accounting Information and from the basis of continuity. Polytechnics though tertiary
institutions like any other organization are required by law establishing them
to prepare accounts which are in conformity with general accepted principles of
accounting so also with Kaduna Polytechnic which form the basis of this study.
Higher institution of learning established by Decree/Act (Kaduna
Polytechnic) been one, operate accounting system some how similar to a great
extent. It is of paramount importance at this juncture to have a broad
knowledge of accounting system and funds accounting as it applies to tertiary
Accounting system is the art of recording and controlling an
organization by keeping accurate book-keeping of business transactions
articulate to form an accounting process.
Finney and Miller (1971) define Funds Accounting as “an independent
fiscal and accounting entity with a self-balancing set of recording cash and
other resources together with all related liabilities, obligation, reserves,
and equities which are segregated for the purpose of carrying on specific
activities or attaining certain objectives in accordance with special
regulations, restriction or limitation.
Public funds accounting tends to vary due to management policies
differences. Though this higher institution of learning which are established
for objective reasons are not profit oriented , there accounting systems are
based on Historical cost concept, which indicates that Assets and liabilities
are shown in the accounts at their Historical cost rather than current market
It is a common knowledge that all businesses and non business
organizations including government runs on money equally, like there are wide
range or ways of spending (expending funds). So also there are also variety of
ways of generating it.
Source of fund refer to the different ways available to business
enterprises through which it can mobilize money (fundsO to finance its
operation i.e. from planning, conception, take up buying of fixed assets to day
to day operations. Example of this are:
Decrease in assets i.e selling
off your business assets such as land, building equipments, machineries to
raise funds which can be recycled back into the business.
An increase in liabilities i.e
borrowing from banks and other financial institutions in a form of loans,
overdraft and debentures.
Plough back profit (Net profit
re-injection). Instead of paying dividend to shareholders, the •profit is
recycled back into the business.
Reserves and depreciating: This
is an amount kept aside for some special purposes and for the rainy day. It is
normally taken out of the net profit yearly during appropriation.
An increase in equity holding:
That is creation and issuance of additional common stock and preferred stock to
raises more funds.
Sales of stock of goods: By
stock of goods, we mean both raw materials, work in progress and finish goods.
Any of them, can be disposed off, to a willing buyer to raise additional funds.
Grants, Aids and Donations from
government and nongovernmental agencies both local and foreign donor agencies,
multi-lateral organizations, economic and financial institutions across the
Internal sources, sale of
forms, transcript forms employment forms, sales of bread and tender fee.
Just like funds are generated through different means and way, so
also its usage. Organizational funds are primarily spent in any or combination
of the under listed ways:
An increase in assets i.e
buying more assets such as land, buildings, equipment and machineries etc.
A decrease I liabilities, that
is paying off debts, debentures and other sundry liabilities and commitments.
Payment of dividend to equity
holders — funds generated can be used to settle dividend darning payable to
shareholders of the business firm.
Purchase and or retirement of
shares, stock and bonds. That is a business concerned investing its surplus
funds to buy shares and bonds of another company, with a view to diversifying
its investment portfolio and risks.
Net operating loses. Net
operating loses when recorded has the potentials of eroding firm or business
assets base. If the enterprise therefore, want to maintain its former position,
it will then have to source for additional funds to bridge the gap.
Purchase of stock i.e raw
materials and other inputs that are necessary for day to day operation in the
The key to success of an organization is the development of its
source of revenue and effective use of the acquired revenue. Therefore the above
statement will guide the researcher in the adopted approach to get answers to
the following questions. What are the sources of fund available to Kaduna
polytechnic? After acquiring the funds, how does Kaduna polytechnic utilized these
OF THE STUDY
The main objectives of the study is to examine how revenue is
generated and utilize in Kaduna polytechnic.
To find out whether there is a
good accounting system in Kaduna polytechnic.
To examine the effectiveness of
internal control system in Kaduna polytechnic
To determine whether the
revenue generated by Kaduna polytechnic are utilize properly
To find out ways of improving
the management and control of funds in Kaduna polytechnic.
1.4 RESEARCH QUESTION
1. Is there good accounting system in Kaduna polytechnic?
the internal control system in Kaduna polytechnic effective?
3. Is the revenue generated by Kaduna
polytechnic utilized properly?
4. How can Kaduna polytechnic improve the management
and control of funds generated?
1.5 SIGNIFICANCE OF THE STUDY
Kaduna Polytechnic has been in existence for more than 50 years, and
there is no gain-saying that school has made any contribution in the area of
staff development for the northern states, and the country at a whole.
This project will serve as a guide to the management, staff of any
institution where planning, budgeting, forecasting, directing and co-ordinating
the activities of the institution concerned. Also, this project will be of
greater importance to both the policy makers, the executives and the colleges
A good designed accounting system and control of public funds of any
organization, forms a good basic for management and utilization of the
1.5 SCOPE OF THE STUDY
The study will pay attention on one of the
highest institutions of learning that is Kaduna polytechnic, with emphasis on
Bursary department as they are the operator of all accounting system. The
project intends to look at the rang & significant of good accounting system
since the establishment of the polytechnic and controlling of public funds to
enhance good management of the institution