INTRODUCTION

 BACKGROUND OF THE STUDY

           Organizations both profit and non- profit oriented need funds         (financial assets) for their numerous operations. That is why all organizations irrespective of their legal forms, device a means their day- to –day operations. The funds sourced are not normally kept idle by the organization rather they are either being reinvested to         generate future profit or consumed immediately to achieve the     origination day to day goals hence the word “ source and application of funds” in the accounting profession

        Source and application of funds simply means the various avenues         available to an organization thought which it source it’s financial         assets and all  the outlet through which the sourced financial assets         leaves the coffers of the organization

        In recent past, government parastatal which institute of management and technology is one, depended revenue grants in         forms of subvention for few existence and growth, in this era of         privatization, the government has decided to shade off it’s financial         responsibilities in almost government paratatal so as to concentrate         in it’s constitutional role of providing enabling environment for         economic activities to thrive. This scenario has left many         government paratatal in total financial drought

        For instance, the immediate lost years in the which institute of         management and technology has been a hectic one as financial         starvation meted to it by the government has left the which  institute with the following identifiably problems;-

1)     Constant face off between management and trade union in respect regular payment of salaries

11)   Lack of promotion to staff that are due to be promoted

111) inability to maintain their fixed assets such as

a)     Building

b)     Motor vehicle

c)     Furniture and fittings

d)     inability to settle their other numerous over heard costs

e)     Absence of non structures to replace the dilapidated once etc

        The colossal nature of these problems enumerated above made the         institute of management and technology IMT various avenue of         source for the following

I)      Creation of non–existing charges such as accreditation fees, development fees and upward review of other existing charges; 

ii)     Carrying out aggressive campaign to increase the number of students         intake by reaching out to all seventeen local government in the state         and beyond

iii)    Scaling down the work force

iv)    Denial of promotion to staff those are due to be promoted

        those member yielded a  positive result as a report is issued by         admission department shows that nearly  over 20,000 student were         admitted in this academic year and the management can now pay         their monthly salary bills of over 39 million naira and other overhead         cost. But the sustainability of the current trend is fillgloomy as the         funds sourced from these measures would be applied in solving short         term problem which is mainly revenue in nature. While capital         projects would be unattended to based on this it has become of         paramount importance that a re appraised of all sourced of fund         available to IMT and how the fund sourced would be applied be         made to funds for it’s capital and revenue expenditure.

Hence my choice of this topic source and application of funds I a         government parastatal” A case study of institute of management and         technology IMT Enugu. Those research is concern with exposing the         source and application of funds.

STATEMENT OF PROBLEMS

        Most organization both profit and non profit oriented has problem         knowing how to raise funds for their operation and most often fail         utilize the available funds. The following problem below are found as obesities inherent in sources and application of funds in institute of management and technology IMT enugu.

i)      it was difficult to know the extent steady sources of fund had made         (I.M.T ) scale down it’s cout force.

ii)     I.M.T funds it difficult to erect new structures show as class-room student intake

iii)    it was difficult to know wetter I.M.T  applies the funds it sourced in         most appropriate manner,

iv)    the impact of government discontinued finding to I.M.T  was         unknown Objectives/