CHAPTER ONE

INTRODUCTION

 BACKGROUND  OF THE STUDY

Accounting system is an organization has a significance impact is the efficient management  and administration of the organization accounting has been called the “language of business and financial decision” because it provide management with data needed for decision making and for efficient operation of the firm.

Walgenbach Dlttrich and Hanson defined accounting as the process of recording  classifying reporting and interpreting the financial data of an organization.

Once an accounting system has been defined and installed recording and classifying data become some what  routine and repetitive.  Accounting is a dynamic profession like  language it does not stay static it grows embrace additional rolls in its development trail.

Extensively accounting records has to be maintained not just because these records are required by law but to avoid confrontation with a multitude of complex variables.  Accountants cannot just observe the daily operation instead he must depend on the accounting process to convert business transaction into statistical data that can be abstracted and summarized in accounting reports.

It is a thing of joy that an accounting body in Nigeria the institute of chartered accountants of Nigeria (ICAN) has lately accredited two institute as recognized training countries for the purpose of  training accountants solely for  the public sector though the curriculum for government accounting yet to be fully developed and integrated into the  accountancy programmes of our institutions. Based there is also a great search of  textbook on governmental accounting is the country these are problem that must be promptly tacked.

Government establishment are set up to provide social goods and service for public welfare. These establishment finance their activities principally from government subventions which are derived directly or indirectly form government various sources in come (such as fees charges central or local taxation and borrowing) the need for a good book-keeping and accounting system together with proper accountability for public fund cannot be over accounting officers operate as an internal security men and through records control what goes on inside the business.

They have to preserve the company’s property form loss by embezzlement fraud or carelessness.

Pandy state that about two decades age the scope of the financial management was circumscribed to the raising of funds whenever needed and no significant use attached to day-to-day financial decisions making and problem solving’2

In other words mangers and accounting officers entrusted with public funds must ensure that such funds are properly distributed and adequate accounted for. They should also exercise due care skill diligence and prudence in the management of public funds.

In the light of this it is necessary for an investigation to be conducted to find out the problem often encountered by operators of government establishment in maintaining a good accounting system with a view enhancing accountability and the prospects  of accounting in these establishments.