The Role Of Audit Function In Government Establishment (A Case Study Of Office Of Auditor- General Of Enugu State)

The Role Of Audit Function In Government Establishment (A Case Study Of Office Of Auditor- General Of Enugu State)
Abstract
This research project was initiated to appraise the audit of government establishment problems and prospects, using Enugu State Audit Department as a case study. As are all know, auditing is a way through which the assets of the individual are safeguarded. The problem of this Audit or its functions and role in government establishment in Enugu State cannot be overemphasized.
In order to collect the necessary data, the researcher used both primary and secondary data. The primary data involved the use of questionnaire, interview (oral) and discussions. While the secondary data were collected using the books written from the authors and expert in the topic of the research.
Some of the problems that were found to militate against an effective auditing administration of the government establishment include lack of enabling authority, inability to enforce audit reports.
To overcome the above mentioned problems, some recommendations were proffered that ameliorate the problem of audit of government establishment and show its prospective situation.
Chapter One
Introduction
1.1 Background of the Study
There is need for acceptable accountability of the money spent by various government establishments. This has resulted in federal government establishment of Audit Department in both the federal and state governments as provided.
The duty of the Audit department is to report on the accounts stewardship rendered by the public officer section 118 subsection 2 of the 1979 constitution provides that the public accounts of a state and officers courts and authorities of the state including all persons and bodies established by law entrusted with collection and administration of public reported by the director of audit and for that purpose the director of audit or any person authorized by him on his behalf shall have access to all books records and returns and other documents relating to those accounts.
The study focuses attention on how well or not Enugu State Audit Department conducted their activities in response to section 118 of the 1979 constitution of the federal republic at Nigeria.
To appreciate whether the Audit Department of Enugu State performs its constitutional responsibility efficiently and effectively, it becomes necessary to determine or examine the effectiveness of the Brief History of Enugu State Audit Department.
Before the enactment of Audit law of 1958 and prior the creation of Eastern Region of Nigeria the audit of government accounts was controlled by the Director of Audit not as it is now addressed or called, that is Auditor – General.
In 1956 the Audit law as enacted, known as audit ordinance of 1956. Chapter 13 of the laws of Eastern Nigeria 1963 give the government of the then eastern Nigeria the power and authority t establish an Audit Department. The Audit Department was headed by the “Director of Audit”. Direct of Audit here means the Director of Audit for the Region establishment by section 61 of the constitution of Eastern Region.
The Director of Audit was charged with the duties and responsibilities of collecting the accounts of Governments signed by the Account-General for the Region and examine the accounts. The accounts must show the true /fully the financial position of the Government of Eastern Nigeria on the last day of such financial year.
Such accounts shall include: –
- An abstract account of receipt and payments;
- A statement of assets and liabilities;
- Statements of revenue and expenditure by sub-heads; and
- Such other statements as the minister my from time to time requires.
After the examinations, the Director of Audit will then present the audit account with the Report from the Director of Auditor to the Legislative Arms of the Region’s Government.
With the creation of Anambra State by the then Murtala Ramat Muhammed Government of 1975 out the formal Eastern Region the formal Eastern Nigerian Audit Department was then addressed as the Anambra State Audit Department, which their duties and responsibilities was still derived from the provisions of chapter 13 of Eastern Nigerian constitution.
During the Democratic Era of 1979 a constitution was drafted for the federation which provided for the Audit – General of a state to be appointed the governor of such state. This was provided in section 118 of 1979 constitution.
The present Enugu state Audit Department came into existence with the creation of Enugu State out of the old Anambra State. The Audt Department came into existence early in August 1991, changed with the duty of examine the accounts of Enugu State government. The Audit Department is now headed by the Auditor – General of Enugu State.
Their duties, powers and responsibilities are derived from section 125 of the constitution of Nigeria 1999 audit function through the analysis of audit. Carried out on government establishments and the opinions of those that audited the accounts. This will include whether they always audit accounts rendered by other government establishments, and finally the impression of the general public about the audit function.
1.2 Statement of Problem
There have been the problems at delays in auditing the accounts of government minister and non-ministerial departments. A particular case was the eleven years accumulated unaudited accounts of the former Anambra State as revealed by the Audit.
The audit department after the creation of states in august 1991 the audit document the audit document could not resolve how to audit the area of accounts of the new state after the creation.
Consequently, the poor accountability in the public service in the state is a problem which had originated from the former Anambra State had been blamed on the ineffective manner with which the late Audit Department had performed its constitutional duties. The effects of these delays manifests when the auditing is actually done. The reasons being that some key public offices who are likely to give useful information or to whom audit queries might be addressed to would have left, either by reasons of retirements, a better job vital document destroyed are eve death.
The continuous accumulation of unedited accounts of government brings about poor accountability, poor record – keeping, fraud, embezzlement, forgery and other vices.
1.3 Objective of Research
In the light of the above, the research aims at looking at the impact and significant of audit function in government establishments and then identify the causes of its ineffectiveness or effectiveness. This study also aims at analyzing the following;
- The roles played by the Audit Department in the protection of public funds and properly.
- The extent of compliance with the financials by persons or authorities entrusted with that responsibility.
- The extent to which fraud, misappropriation and embezzlement of public fund have persisted in the service.
- The delays in carrying out audit of the government accounts (ministries and parastatals).
1.4 Scope and Delimitation of the Study
The scope of this study is to know how well Enugu State Audit Department had discharged its duties.
The delimitation focuses on the techniques used and their short coming.
1.5 Research Question
In view of the points made in the statement of problem above, one may ask the following questions:
- Are the officers of the audit department qualified for their jobs?
- Is the audit department helpful in the protection of public funds and property?
- The officers in the ministries, other parastatals comply with the financial regulations in their duties.
- What problems does the audit encounter in the course of their duties?
1.6 Significance of Study
This research is very important to individuals, government, and to the researcher as well.
As a researcher, it has exposed me to efficiency auditing procedures and problems in governmental establishment.
To government, the out come of this research is of great help in reducing fraud through proper auditing.
To general public, it helps to reduce fraud if auditing procedures recommended is strictly followed by various establishments.
1.7 Definition of Terms
1. Accountability:
Is a measure of how productivity, the civil servants are the result derived from resources and funds invested and extents of success made from the projects embarked upon by the government.
2. Auditor General:
Is the officer responsible under the constitution of the federation for the audit of the accounts of all accounting officers an all persons entrusted with the collect receipts, custody, and issue or payment of federal public money, or with the receipt, custody, issue, sales, transfer or delivery of any stamps securities, stores or other property of the federation ad for the certificate on the Annual / Accounts of that government.
3. Accounting:
Who upon receiving an appointment or acting appointment or a permanent secretary or head of an extra ministerial department.
4. Sub-Accounting Officer:
An officer who is entrusted with the receipt custody and disbursement of public money and who required to deep one of accounts as may be prescribed by the Accountant General.
5. Revenue Collector:
Means an officer other than a officer receipt or license book for the regular collection of some particular forms of revenue and who is required to keep a cash book.
6. The Federal Pay Officers:
Means an officers in-charge of a federal pay office in a state who is entrusted with the receipts, custody and disbursement of public money and who is required to keep on of the recognized cash books the transaction in which are subsequently embodied by the accounts rendered by the Accountant -General.
7. Self Accounting Unit:
Where the ministry or department has been constituted a self-accounting unit, the accounting officer as defined in FR. 103 is changed, in relation to that unit with the instillation and maintenance of a proper system of accounts subject to general supervision of Accountant – General.
8. Surprise inspection of Accounts:
The Account-General will form time to time cause surprise inspections to be made of the accounts of any of the officers.
9. Power:
This is the Auditor General in the exercise of his duties under the ordinance provided that the Auditor-General, may be call upon and state officer to furnish forth with any explanation or information with which he may require in order to enable him discharge his duties.
10. Industry:
Useful hard-work.
11. Tack:
“Tack” means skillfulness in handling a difficult situation with going offences to the people involved
Chapter Five
5.0 Discussion, Implication And Recommendation
5.1 Discussion of the Result
From table 4.1, it was observed that 60 percent are form Audit Department while 40 percent are from ministry of finance and supply.
Table 4.2, show that 66.67% agreed that the offices at the audit department qualified for their jobs, while 33.33% disagreed on the statement that they are not qualified, with this most of them are qualified.
Table 4.3, 66.67% agreed that Audit Department helped in the protection of public fund and property while 33.33% disagreed, which means most help.
In the on going analysis it is clear from the table 4.4 that 83.33% agreed that there is problem that auditors encounter in the course of their duty while 16.67 disagreed that there is no problem.
Table 4.5, showed that 63.33% agreed that officers in the ministries other parastatals comply with the financial regulations in their duties while 36.67% disagreed that they are not complying.
In table 4.6, 56.67% agreed that fraud misappropriation embezzlement of public fund have impact on the public while 43.33%.
5.2 Conclusion
The following conclusions have been drawn from the major findings of this study.
- The effective rate of the Enugu State Audit Department or the office of the Auditor General is accepted as 60% effective in their function.
The cases of value delays in auditing of government accounts can not be balanced they do not prepare accounts rendered by the Accountant General so if there is any blame it should go to the office of the Account General since it duty to prepare government financial statement for auditing. - The Audit Department ensures compliance for auditing ministries to the financial regulation.
- The Audit Department has helped much in the safeguarding of public property and funds and has also helped in the recovering of some of this money from the culprits.
- In spite of the numerous problems encountered to prove their importance, making sure the impact is felt by all facets of the state government establishment.
5.3 Recommendation
The following recommendations have been made in the light of the findings and decision and the relevant conclusions which have been highlighted.
University graduates in accounting plus recognized professional accounting qualifications should hold the post of Accountant General or Auditor General of course only graduates in accounting and other professional qualification should be designated as auditors.
The present trend by which graduates of non-result oriented policy has been the reason behind non-performance of many auditors in the field of the Audit Departments Enugu State.
Government, ministries and non-ministerial departments should make as a policy, employment of graduates in Accounting, finance and professional accounting certificates holders and other recognized accounting certificates to work in their Accounts Department.
This would make for keeping adequate and proper books of accounts and production of financial statement on time.
Seventy percent of the staff of Audit Department to be graduates in Accounting from recognized universities and polytechnics, holders of professional accounting certificates. Ten percent to be graduates in Architecture, quality surveying, Engineering etc. while twenty percent should be supportive staff like secretarial, clerk, messengers, security, derivers etc.
Special salary scheme and hazard allowances be approved for all cadres of staff of the audit department. Audit department be given the power to execute or enforce its findings after its work has been reviewed by the public accounts committee to ensure that their findings are authenticated by another body to the point of beyond and any reasonable doubt.
It is the recommendation of the researcher that Audit Department and office of the Accountant General and Accounting officers of the non-ministerial Departments, organized at least once a year join seminar and workshop so as to help seek the co-operation of the staff at all times to make audit exercise timely and with less difficulty.
Detection of frauds and irregularities be made part of the Auditors responsibility and the property of any public officer found to be fraudulent be forfeited to the government.
Audit queries shall be addressed to the ministries and answered within the time limit stipulated in the new rules governing offences and sanctions.
- Where the query concerns the accounting officers it shall be answered by him in person. If the accounting officer does not respond within the stipulated time to query that affects his office, the Auditor General may inform the president in the writing.
- Where the failure to answer the audit query is by an officer other than the minister the Auditor General shall impose, through the ministry’s personnel management board the necessary, sanctions or punishment on the erring officer who shall have the right of appeal to the public accounts committees.
- The present periodic post-payment audit checks in ministries by auditors from the office of the Auditor- General shall continue.
- To ensure the effectiveness of the audit functions all ministries entering into contract agreements shall hence forth include a clause enabling the Auditor – General have access to sites for purpose of auditing or monitoring contract performance.
5.4 Implication of the Research Findings
The findings of this study have some important educational implications. This implies that Auditors or the state Audit staff are only doing their jobs just like any other civil servant and as such should not be viewed as a witch fraud stars but only checking that rules and regulations regarding the collections and spending of public money fine according to vote for which they are meant for.
The auditors work cannot be dispended for without their checks the civil servants or public officers who are in possession of public property would feel free to convert them to their personal use of property therefore one can say that the work of the state Audit Department is like a police in the civil service.
5.5 Suggestion For Further Research
following the result of the study, suggestions for further research based mainly on the scope of the study and issue on effective of Audit ways or what shall be done to improve the effectively and efficiently the functions of audit in government establishment. This would help in determining, their limiting factors and ways of improving on this. It would also mean growth for the government and the citizens at large.
Comparism between Auditing in Government establishments and public comprise what are the major weakness as a result of the difference in the two.
A system without Audit is likened to a nation’s limitation to the study.
5.6 Limitation to the Study
The greatest constraints or limiting factor to this study is time, the research would been able to cover more ministries to get a wider view of the impact of the state Audit Department.
Another constraint to this study is the inability of the respondents to answer to some vital questions which the researcher believers would have helped in throwing more light to the study and again most officers are not on seat at the appointed time this had led to constant coming back to get the officers and to collect the questionnaires.


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