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The Importance Of Departmental Vote Analysis Book

CHAPTER ONE

1.0       INTRODUCTION

1.1              BACKGROUND OF THE STUDY

The Institute of Management and Technology (IMT) Enugu came into existence under the then Eastern Central State Edict N0 10 of 1973, promulgated in the Administrator of East Central State. Ajie Ukpabi Asika.

The edict took effect from ist July 1973 and thus give birth to what is now known as the Institute of Management and Technology (IMT) Enugu. Dr. Ukwu I.  Ukwu became the first chairman of council while professor M. O. chijoke became the fist rector.

The IMT Enugu has seven Academia’s school and 27 Academic departments and five administrative divisions as follows: school of Engineering ahs four departments , Civil Engineering, Mechanical, Electrical and Chemical Engineering technology.

School of Science Technology has four departments. Science Technology, Building and Quantity Surveying, Food Technology, Statistics, Computer Science, Printing Technology.

The school of Communication Arts: It has two departments Mass Communication, Fine and Applied Arts.

The school of Financial Studies: This school comprises of Accountancy, Banking, Finance and Insurance.

School of Business Studies: Marketing, Purchasing & Supply, Business Administration and Management, Co-operative Economics and Management Secretarial Studies and Public Administration.

School of General Studies: It has four department, languages studies, social sciences and humanities, Basic Science and Preliminary Studies.

School of Technical Teachers Education: This school has the following departments foundation of Education. Business Education and Education.

School of continuing Education:  This school is made up of the following departments. Staff development or distance education (Uni-Air programme) part time programme.

The Administrative Divisions: The rector, Registry, Bursary, Library, Estate and Works, Medical Centre.

The Bursary department has been recording the expenditure of these various department from the data of existence to date. The accounts are recorded in the Departmental office expenditure Analysis Book kept by the Bursar at the Institute.

But we shall lay more emphasis on the year 2000 to 2004 vote expenditure accounting books.

1.2       STATEMENT OF PROBLEMS

1.         The institute has a problem of wrong naming of the vote books. The subheads are not properly coded.

2.         There are misplacement of some vouchers which has not been recorded in the vote books.

3.         There is attitudes of favouritism in the recording of vouchers in the vote books.

4.         Some of the staff especially the Head of Department usually do not allow their vouchers to go through the due process. They prefer themselves going from office to office for collection of the money assigned to them.

1.3      PURPOSE OF THE STUDY

In the purpose of the study, the researcher intends to identify the mistakes and possible solutions to such.

1.                  To find out the reason for wrong coding of vouchers in the vote book.

2.                  To find out why should there be a misplacement of vouchers.

3.                  To find out what are the attitudes of the offices in recording he vouchers in the vote book.

4.                  To find out the impatience of the head of department in processing their vouchers in the vote book.

1.4       THE SCOPE OF THE STUDY

The researcher encountered numerous difficulties raising from finance, time consuming and personal effort.

In as much as the research is a student and carries out the research work with a limited amount of money, he is bound to have financial problems hence the research work required much money for producing questionnaire or interview guides and transportation. The financial problem prevented the researcher from traveling  to other parts of the country for effective data collection housed only in Enugu Metropolis was used.

1.5       RESEARCH QUESTIONS

1.         Does the officer incharge has the problem of wrong coding of vouchers in respect of vote books?

2.        Does the officer misplace some vouchers during recording mails?

3.        What are the attitude of the officer in charge when recording vouchers in the vote books?

4.        What causes the impatience of the head of department in processing the vouchers in the vote book?

1.6       THE SIGNIFICANCE OF THE STUDY

There is a strong need to study the importance of departmental vote analysis book. The relevance of this study can never be over emphasized. The study is therefore rationalized on many ground.

·                     To provide a simple record for controlling expenditure

·                     To ensure that the amount sanction or voted is not exceed or over spent.

·                     To ensure that the amount is actually utilized for the authorized expenditure.

·                     To portray uncommitted balance at a glance. This objective is made possible by the adoption of the commitment basis in keeping the department vote expenditure analysis book.

1.7       HYPOTHESIS

The following hypothesis are to be tested.

Ho:      There is no need recording vouchers in the vote books.

Ho:      Keeping expenditure analysis book is not important in the institution.

Hi:       There is need for recording vouchers in the vote book.

Hi:       Keeping expenditure analysis book is very vital to the institution

1.8       DEFINITION OF TERMS

1.         Departmental vote expenditure analysis is a tool used to ensure control of government expenditure.

2.         Vote book: This is the entry where the actual amount charged for expenditure will be entered.

3.         Payment vouchers: This is a document that has been authorized by the officer in charge to pay the person whose name is written on it.

4.         Codes: This is an office terminology used on the files for getting tiles.

5.         Payments: Gross payment on each vouchers.

6.         Particulars: Payee’s name and addresses .

7.         Voucher Number: Departmental Vouchers number are given from the voucher registry and should start from 1 at the beginning of the year.

8.         Balance: Amount remaining after payment up to date must have deducted.

9.         Total: Cumulative Payment

10.       An Accounting Unit: This is an entity through which accounts and records are maintained and prepared.

11.       Records: This is a document where all expenditures are entered.

12.       L.P.O.: Local Purchase Order.

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