INTERNAL CONTROL SYSTEM IN THE CIVIL SERVICE(A CASE STUDY OF FEDERAL MINISTRY OF FINANCE ENUGU)

ABSTRACT

The study of internal control system as it is practiced in the civil service can not be over emphasize.  The project which the researcher has worked on has to do with the civil service hence the topic internal control  system in the civil service. (A Case study of Federal Ministry of Finance, Enugu). The researcher went ahead to determine the effective regulation of internal control system as a valuable tool in carrying out effective responsibilities, the objectives, process of control, the various organs f control , the weakness and strength of the internal control in the establishment.

However the researcher based his study mainly on the financial Accounting and stores control though there are different types of controls established by the government for managerial efficiency. The research project is divided into five chapters, The introduction, Literature review, The research Design and methodology Data presentation and Analysis, and Finally The Summary of Finds, conclusion and recommendation were dealt with in they research project.  Questionnaires were used well in gathering information for the project work.

CHAPTER ONE

INTRODUCTION

HISTORICAL BACKGROUND

The word control has been in use form time immemorial.  In any type of organization one form of control or the other is exercised to see to the small family size to the large business organisation be it in the small family size to the large business organisation and the complex public sector or government institution.

“Control means power or authority to direct order”. To have control authority, power over, regulate, check”. The last two words regulate and Check are of paramount importance to this study.

The importance of control in any organization cannot be over emphasized, hence it was said that: “Without audit no accountability without accountability no control and if there is no control where is the seat of power ?

Internal controls as the term itself  suggest involves various actions taken within an organisation to assist in checking, regulating and directing the activities of the organization.

The concept of internal control has endued  gradually over the years, with the greatest period of development occurring during the decade beginning about 1940.  Impetus for such developments came form both management and auditors.    Management has recognised internal control as a valuable tools in effectively carrying out its responsibilities and auditors in their effort to be assistance to their clients as well as to permit reduction in and it work made by the concomitant increase in the credibility of accounting records.

However, in Nigerian the history of financial and stores control in the civil service can be traced to 1958 when the finance (Control and Management ) Act was promulgated.

Part 1 of the act provides for “General supervision and control” section 3 of the act goes thus:

Legislative control and Management of Public Finance

The Minister shall so supervise the expenditure and finances of the Federation  as to ensure that a full account is made to the legislature and its financial control is maintained and for such purpose shall subject to the provisions of the constitution order and of this ordinance, have the management of the consolidated revenue fund and the supervision control and direction of all maters relating to the financial affairs of the federation which are not by law assigned to any other Minister”

The 1979 Constitution of Nigeria also provides for such legislative control of the finances of the federation.  In the federal civil services, no ministry can become self –accounting without establishing a well staffed audit section as a means of control over the activities of the accounts section.  The provision for this is contained in the revised financial regulations of 1976.