Assessment of the Effect of Treasury Single Account on Public Funds Management in Nigeria
Chapter One
Objectives of the Study
The main objective of the study was to examine the impact of Treasury Single Account (TSA) on the management of government financial resources in Nigeria: A study of Niger State Ministry of Finance, Minna. The specific objectives of this study were to:
- Examine the impact of Treasury Single Account on blocking leakages in revenue collection in Niger State.
- Investigates the impact of Treasury Single Account in promoting transparency in the administration of public funds.
- Find ways for strengthening the workings of Treasury Single Account system in public financial management.
CHAPTER TWO
REVIEWED OF RELATED LITERATUIRE
Introduction
Before the introduction of Treasury Single Account (TSA) system, government revenue was paid into numerous accounts by ministries, department and agency and in fact some of them did not know the number of bank account they had, this led to malpractice.
Theoretical Framework
In an attempt to understand the effects of financial controls in the public sector two theories (agency theory and theory of financial control) were employed to explain the relationship between financial controls and financial management.
The Agency Theory
The Agency theory was originated by Stephen Ross and Barry Mitnick in 1970s. Agency theory describes firms as necessary structures to maintain contracts, and through firms, it is possible to exercise control which minimizes opportunistic behavior of agents. The theory recognizes the incomplete information about the relationship, interests or work performance of the agent described as adverse selection and moral hazard. Moral hazard and adverse selection affects the output of the agent in two ways; not doing exactly what the agent is appointed to do, and not possessing the requisite knowledge about what should be done. This affects the overall performance of the relationship as well as the benefits of the principal in the form of cash residual. Other related reviews include The Sarbanes-Oxley Act of 2002 (SOX) which requires companies to report on the effectiveness of their internal controls over financial reporting as part of an overall effort to reduce fraud and restore integrity in the financial reporting process.
It is further asserted that software vendors that market Enterprise Resource Planning (ERP) systems have taken advantage of this new focus on internal controls by emphasizing that a key feature of ERP systems is the use of “built-in” controls that mirror a firm’s infrastructure (Morris, 2011).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine assessment of the effect of treasury single account on public funds management in Nigeria. staff of the Niger State Ministry of Finance forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain Assessment of the effect of treasury single account on public funds management in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing assessment of the effect of treasury single account on public funds management in Nigeria
Summary
This study was on assessment of the effect of treasury single account on public funds management in Nigeria. Three objectives were raised which included; Examine the impact of Treasury Single Account on blocking leakages in revenue collection in Niger State, investigates the impact of Treasury Single Account in promoting transparency in the administration of public funds and find ways for strengthening the workings of Treasury Single Account system in public financial management.. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from staff of the Niger State Ministry of Finance in Niger state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Base on the aforementioned findings of the research work, it was concluded that Treasury Single Account (TSA) has tremendously impacted positively in public financial management. Also, Treasury Single Account enhanced the blocking leakages in revenue collection in Niger State and promotes transparency in the administration of public funds.
It was hereby deduced from this study that TSA is more effective and prudent in public financial management than the conventional ways in which MDAs generate their revenue into multiple bank accounts.
Consequently the use of TSA could be regarded as one of the invaluable public financial management technique for promoting public financial management in Niger State and Nigeria in general.
Recommendation
Based on the findings of this study, the following recommendations were proffered:
- Adequate political support from all arms of government would strengthen the effectiveness of TSA.
- There should be adequate legal and regulatory backing from the legislature to improve the effectiveness of TSA in public financial management.
- There should be constant application of updated technological facilities to ensure increased effectiveness of TSA and meet the complexities and demands associated with public financial management.
- There should be adequate data and information on governmental sources of revenue in making TSA more effective.
- Training and re training of TSA personnel would strengthen the effectiveness of the system in Niger State and Nigeria in general
References
- Adegite, E. O. (2010). Accounting, Accountability and National Development. Nigerian Accountant, 43(1), 56-64.
- Adeolu, I. A. (2015). Business and Economy: Market Development Understanding the Treasury Single Account (TSA) System. Ibadan: John Archers Publishers.
- Ahmed, A. I. (2016). The Treasury Single Account (TSA) as an Instrument of Financial Prudence and Management: Prospects and Problems. Research Journal of Finance and Accounting, 7(4), 66-71.
- Akande, L. (2015, August 9) Buhari orders Federal Ministries, Agencies to open Treasury Single Account [Press Release]. Retrieved on 2015, August 9 from http://www.thisday.com/opinion/- treasury-single-account/
- Akhidime, A. E. (2012). Accountability and Financial Reporting in Nigeria Public Financial Management: An Empirical Exploration. Journal of Accounting and Management Science, 7(6), 36-44.
