ACCOUNTING PROCEDURE IN POST PRIMARY INSTITUTIONS (A CASE STUDY OF UDENU LOCAL GOVERNMENT AREA)
The term accounting as a discipline has been defined by different scholars and groups as a profession which involves devising and operation on information system for collecting measuring, recording, summarizing, transmitting and intercept the result of economic transactions past or prospective in resources and in claims on recourse.
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It is also the art of recording classifying and summarizing in a significant manner and in terms of money and monetary value transactions and event which are part at leant of a financial character and interpreting the result thereof.
Accounting in Nigeria dates back to the history and development of Accounting in the United Kingdom, it has many branches via financial accounting, Cost Accounting and Management Accounting e.t.c.
“Accounting procedures in post primary institutions involves the use of school accounting systems. This entails the collection recording and accounting for revenue in post primary institutions. Revenue can be generally defined as those income receipted or returns from various sources of founds to the government in the school system, receipts such as Boarding Equipment’s, Tuition Caution, P.T.A, Library and Guidance and Counseling Fees represent revenue to the government as provided in financial instruction, p1 (03001) in post primary institutions, the collection, officers called the revenue collections also called the Bursars takes charge of the collection and custody of funds.
In Udenu Local Government Area of where we have majority of the schools with thickly populated students in made up of (16) sixteen schools located in different pats of under municipalities that make up the local government area with administrative head quarter at community secondary Obollo Afor. The schools in Udenu local government area accountable to sub-treasury of post primary school Management Board Headquarters headed by a Director, finance and supplies.
The schools with their population capacity are:
1. C.S.S Obollo Afor 952
2. S.P.M.C.S.S Obollo Eke 1349
3. C.S.S. Obollo Ettiti 442
4. A.C.S.S Obollo Ettiti 809
5. G.S.S Obollo Afor 813
6. B.H.S Orba 1115
7. G.S.S Owere Eze Orba 1141
8. C.G.S.S Imilize Uno 1420
9. C.S.S Imilize Agu 549
10. B.H.S Ezimo Agu 374
11. C.S.S Ezimo Uno 502
12. C.S.S Umudu 833
13. C.S.S Umitodo 420
14. C.S.S Amalla 620
15. C.S.S Ogbodu Aba 577
16. N.W.E.C Obollo Etitti 58
Many writers seem to agree that accounting “entails the process of identifying monetary measure, and communicating economic information to permit informed judgement and decisions by users of the information”. As the definition shows, accounting has two main functions:
Firstly, measuring and analysis economic data, secondly communicating the result of this process to interested parties.
The second function is performed means of financial reports, portraying the finical aspects of the activities of an organisation over a certain period, including the employment of its assets for maximization of profit, such reports are required to show the manner in which the organizations fund have been utilized during the period and with what result and also how the funds stand at a particular point in time.
Birglams, R.D Hawkings E.N and Herbert F.T, said that Revenue and Accounting are policy making instruments which require a confirmed process, while there is no requirement that revenue decisions be considered regularly, as most in any spending decisions. There is still amply opportunity to shape and re-shape the revenue system. Thus there is need to increase school share of equipment fee to meet the increase in spending.
Mcculers L.D and P.G stated (1978), that “Revenue is recognized as cash is received” so to achieve this the revenue collector should be properly cared for delivering the goods.
Accounting for government and non-profit entities (sixth edition) Harry L.E, stated that one of the functions of revenue which should have been received has, in fact been received and this posses a big challenge on both the principals and the bursars,
Financial management in Nigeria public sector 1985 revenue generation Oshaiami K & Dean D.N, said that the state faces a problem of severe fiscal imbalance because their revenue are very small in relation to their expenditure. This is why I also recommend an increase in the school share of equipment fees, because the schools expenditure is more in relation to the budgeted revenue.
According to Trueblood D.S. study group report, “The basic objective of accounting is to provide information useful for making economic decision”. This view would seen to be supported by more recent U.K corporate report of 1975 which stated. The fundamental objective of accounting is to communicate economic measurement of event and information about the resources and performances of an organization or entity useful to those having reasonable rights to such information.
Akpan and Radebogh had it that accounting system ought to involves or reflect the environments they serve, accounting policies and methods adopted in preparing them by user groups are always useful and basic and relevant to their various needs.
According tot he Hand Book on School Administration, section 7 accounting code for post primary institutions is designed to define as concisely as possible, the duties and responsibilities of principals of post primary schools and the bursars and their respective roles in the operation of the new treasury accounting system in the various accounting procedures, which will be applied in the collection of school revenue and in the disbursement of funds provided for the budgets programs and activities of the board in the current and recurrent estimates.
Furthermore, the hand book states in section 7 93) that for finance and accounting purposes, the duties and responsibilities of the principals may be as follows.
Ensuring that safe custody of cash on stores held in the school or by regular periodic check of relevant records and reporting of any irregularity or loss promptly to the executive secretary, post primary schools management board, Enugu for necessary recommendation or remedial action.
Approval for payment of all bill debited to the institution which must be support by relevant local purchase orders, job orders and copies of contracts e.t.c.
Checking and instilling of cash book at least once in a week to ensure that all movies collected have been properly accounted for and paid into the treasury and that the corresponding treasury receipts have been firmly posted on the relevant pages of the cash book.
Signing of salary sub-receipts payment vouchers after they have been checked as to the correctness of the details and the accuracy of the arithmetical computations.
Regular examination of the departmental vote expenditure account book, which must be submitted to him for the initialing of the entries made there in every time a voucher is presented for his signature.
Ensuring that the weekly returns to financial management branch ministry of finance and the monthly returns to post primary schools management board headquarters are rendered signing of cheques jointly with the bursars in maximized by taking every possible step to collect fees promptly from the students.
The principals as the vote controller and councilor of exchequer controls the accounting department in the school system while the bursar is a sublimate officer of the board.
The accounting function of the bursar in the school system is as follows:
According to section 7 (4)
Advance the principal on the correct procedure on the use of funds with the provision of the financial instructions. Teachers service manual or circulars from headquarters, ministry of finance of finance and accounts.
Preparing of salary vouchers sub-receipts which must be supported whenever necessary with letters of appointment promotions, terminations of appointments or dismissals, last pay certificate (LPC) for newly transferred offices.
Maintenance of cash book, department vote expenditure account, D.V.E, A, Book Advance Ledger ensuring that they are checked and initiated regularly by the principal at such regular intervals as he may decide.
Collection of fees from students and issuing of school fees receipts to the tax payers, lodging of the bank and payment of collections into the sub-treasury receipts will be issued school fees collected must be banked daily and should on no account remain in the bursar custody in the safe longer than forty-eight hours after collection of the money. Furthermore, the financial matters especially as regards the provisions of the financial instructions, finance circulars from the ministry of finance and post primary schools management board. The hand book also states that relationship between the principal and the bursar in the school system intervals.
The principal as the head of the institutions is directly responsible tot he post primary school management board for the security of cash, stores and other property received by or issued tot he institution.
He is required to check and initial relevant accounting records. The bursar is a subordinate officer and should take instructions from the principals. This shows that the principal is the accounting authority to vote controller. He is in charge of accounting the overseas the collection and disbursements of fees. You can see that he is the sole authority and the bursar the accounting officer becomes only a subordinate officer and have no say over what he collect, the handbook went further to say that, the principal is a revenue collector and his responsibility in this respect is prescribed in chapter (6) six of the financial instruction.
It is his duty to collect and account promptly the school fees revenue in accordance with financial instruction 0606. He will be held responsible for any short fall in the revenue expectation on budget in respect of the institution”. This goes to show extent of the power given to the school principals.
The hand book also state that accounting record and books in use in post primary institutions. The administration and procedure are as follows:
– Cash book: Department Vote Expenditure Accounts book (DVEA)
– Allocation to Incur Expenditure (A.I.E)
– Other charges and special expenditure
– Capital expenditure
– Impress accounts
Accounting to the financial instruction “The Government
requires officers controlling expenditure to exercise due economy money must not be spent merely because it has been voted. This entails due care over all funds on officers handling accounting positions. The officers are expected to take due case as regards to the fund custodianship.
It is pertinent to note that Mr. Ngbodile (1985) at a seminar/induction course of newly recruited bursars and accounts clerks at STC Nsukka has this to say “you have been recruiter to operate as bursars and account clerk who as far as the state school system goes, are the custodian of public funds and also financial advisers to your various principals. Because of the foreigners, we have felt that you would be acquired fully with the account procedure in post primary institution so that, you will be better equipped for your dudes and responsibilities in the school to which you are posted.
To buttress this point further, he said that the loss of funds through embezzlement by bursars and finance clerks amounted to thousands of naira, this shows lapses in the accounting system which have to plugged in the school system he went further by saying that the system needs knowledgeable bursars who are up top date in accounting financial institutions and circulars from headquarters all this goes to show that there were lapses in accounting system which requires question.
Nweze Odogwu: In another induction course for accounting (1995) in this discussion on how to keep accounts books and records in the post primary institutions, said that public servant having monetary or financial responsibilities directly connected with official duties are drawn to general stipulations of the financial instructions to see that books and records of accounts are correctly posted and kept up to data.
He advised accounting officers to report any observations of defect in the procedure for collection or revenue or any waste or extravagance in expenditure which comes to notice in the course of accounting duties and to produced her required, for inspection by authorized officers e.g. internal auditor and external auditors in the books of accounts or records of accounts, cash and vouchers in their charges, all this according to him is to keep proper procedures of accounts in the school system and also to avoid problem.
He went further to say that accounting officers should see that proper accounts are prescribed by or under the authority of Accountant General in established an maintained and exercise strict supervision over all officers under you entrusted with the receipt and expenditure of public money and take pecauhors, by maintenance of official checks, against the allowance of fraud, embezzlement, misappropriation or carelessness. Take care that no payment is made which is not coursed by proper authority expressed of referred to on the voucher relating to it. The offices should also promptly prepare financial returns and statements equipped any standing instructions or regulations records and books to be maintained in post primary institutions are also prove to lapses that received modifications.
According to Onwumechili J.S (Mrs.) and induction course for bursars on monthly returns of expenditure and workshops (1994) she said that expenditure in school; Accounting means the process of spending money allocated to a schools e.g. leave allowance.
Transport and Travelling allowances, she said that when money is properly accounted for, you are said to have incurred expenditure. She went further to say that each year government states in the eliminates to be spent on any item. Such as leave allowance vehicle maintenance, e.t.c. All this money are allocated to the accounting officer to spend according. The accounting officer will use the procedure as is required as is required in the financial instruction, the handbook on school administration to know how to apportion the funds.
All these are the problems inherent in the system as the bursar might be fraudulent and could use the funds in appropriately.
Mr. S.A. Nwakie Esq. In the same induction course for bursars in 1994, has this to say about the accounting system and procedure.
He said that “the type of accounting system in the school system is the same as in other government establishments for an experienced accounting officer such a system can be modified to produce better result. This goes to show that the system is the same with government accounting but with experience. It can be modified according to Mr. Nwakire supporting Mr. Nwakire, Mr. L.C Okpala, the former financial controller of the board has this to say about accounting system in the school system; “He said that it is merely receipt and payment accounts” receipts record revenue collected in form of cash or cheques exempt, Tuition fees, boarding fees, while payment record expenses made in cash and cheques.
Furthermore, Mr. N.N Nwankwo, Chief accountant in the board while delivering a lecture on the principles of receipts and payment accounts said that it is the application of fund in the boarding and P.T.A accounts in the school system. He said that the receipts and payment accounts are nothing more than a summary of the cash book (i.e. cash and bank transactions) over a certain period, he said that it is the form of account mostly and commonly adapted by treasuries or societies, clubs association e.t.c. when presenting the result of the yeas working or activities.
Nwakire E.A. Esq. Written on keeping of good accounting clerk in a school is expected to keep near and accurate record of what ever financial transactions that transpire in the school, this he further state will make the bursar or accounts clerk take note of their duty as revenue collectors.
This entails that in the discharge of their duties they are required to keep near records and to avoid careless in the course of their duty. They are required to apply the duty of care in the course of their duty, as they may be liable to negligence of duty and lie to answer for it.
Finaly, Nweze .I. Odugwu (1994) on accounting of deductions, a refresher course to accounts clerk stated that, “Accounts Clerks should not deduct a kobo from anybody’s salary unless you have written authority signed by the principal”.
Such deductions should requires the rising of the receipt and payment vouchers are upon which a treasury receipt must be collected and filed in case of reclaiming.
Any deduction must enter into either of the two accounts receipts and payment.
According to Mrs. Nweke S.E. on public sector accounting (1994) (F.I.) in which schools accounting balances, stated, that it is the act of recording, supplying, communications and interesting accounting information on data and in aggregate reflections of transactions involving the receipts, transfer and disposition of government funds and property. This is also what the schools accounting is all about.
Finally, all this system will help to increase the generation of revenue and accounting in the government and school system and as such are sources of income to their section.
Accounting may be defined as the process if identifying measuring and communicating economic information to permit judgements and decisions by the users of the information.
Another earlier definition was advanced in 1961 by Akpa “accounting is the act of recording classifying and summarizing in a systematic manner and in terms of money, transactions and event which are in part at least of a financial character, and interpreting the result thereof.
The development of accounting in post primary institution has its main spindle as the social role of accounting at anytime determines the level of accounting development.
Accounting procedure in post primary institution is a form of stewardship accounting which provides the P.P.S.M.B and the school with means of safeguarding it from theft and embezzlement and also reporting on the periodic result of the accounts.
The birth of accounting and recording of dealing was the need of an “accounting officer” which is the bursar to render account/statement of money received on behalf of the P.P.S.M.B or disbursed on its behalf. This is to expose any losses due to dishonestly or negligence.
This development of accounting became necessary, since the collection of money collected must be accounted for since the government abolished the free education procedure of schooling, it became eminent that students now pays fees as prescribed by the post primary school management board. This fees are to be accounted for the check fraud and embezzlement.
It is the duty of the principal to instruct the bursar on how to collected the money and keep proper book of account and issue receipts on receipts should be used as an evidence of payment receipt when auditing work is to be carried out.
2.3. SOURCES OF FUND IN POST PRIMARY INSTITUTION
Apart from the public fund allocation, donations sales from school financed agricultural and work-shop products, there are other seven approved sources of fund, they are:
TUITION FEES: Tuition Fees is one of the budgeted revenue of the sate government at (N300) three hundred naira per student per term is paid. But as provided in the state 1996 approved estimates and in accordance with the post primary schools.
Management board circular No. Fis/FIMU/319/127 of June 1994, equipment fees became payable into sub-treasury as part of government revenue principals are allowed to retain (N50.00) fifty out the (N200.00) two hundred naira, the remaining one hundred and fifty is paid into government bank accounts and other designated centres e.g. headquarters of P.P.S.M.B. zonal offices, zonal inspector of education in proportions to ration directed by the government.
On the other hand, principals are required to spend the money part allowed to them in accordance with the laid down rules by the board.
BOARDING FEES: Boarding Fees of (N4,500.00) four thousand five hundred naira per student per term is approved for students borders only the principals supplies to the bursar a full list of students boarders in the hostel then bursar ensures that boarding fees are collected from all every school that operates boarding system has a food committee, made up of cross section of the students, the hostel master and food present refection. The committee is responsible for the procurement of food items.
Firstly, direct purchases of food item from an open market is advocated. current accounts with a bank is operated and a cash book maintained and balanced by the bursar accordingly.
PETTY CASH/IMPRESS ACCOUNT
Students through the help of their hostel master prepares estimates of the food items to be purchased and present same to the principal for approval. Here the bursar may be required to give some amount of money as approved by the principal, to the students purchases in this case the bursar will open impress account register or petty cash register whose this impress retired, the account is credited.
The impress are normally retired, through expenditure receipts and possibly some cash balances where applicable.
Here the bursar is expected to raise payment vouchers in respect of the impress.
Final payment vouchers are raised to cover expenditure only when an account of the impress is rendered on the account actually spent. The same process is applicable to any other person or number of staff each has to be raised payment voucher for any expenditure made by them.
AUTION FEES DEPOSIT: A caution fees deposit of (N100.00) one hundred naira per student is paid only one for the duration of a student study. The caution deposit is for the replacement of any of the school property damaged by the student. The board of course allows principals to make use of this amount for any school project like building of literacy class room e.t.c. provided the principals has obtained a written permission from the board before using the money and also must have set aside enough money for refunding to desire students, their balances at the time they may be leaving the college. The bursar keeps a cash book ad maintains receipts and payment accounts.
P.T.A Levies
P.T.A means parent teachers association.
Their function is as follows:
– to solve problems facing the school which the government could not solve.
– To assist the school in any possible way to letter to better the conditions of the students.
– To advise the principal in case of any emergency P.T.A levy of (N200.00) two hundred naira is charged per student per term. It is used for some project like, building school teachers house, class room blocks, fencing etc. but before such levies are imposed permission is obtained form the board. These revenue are generated because of problems of sever fiscal imbalances as school revenue is small in relation to their expenditure. At the end of each term the bursar prepares a termly financial situation report as shown in format below. The term are 1st, 2nd and 3rd term.
