SOURCES AND APPLICATION OF FUNDS IN A GOVERNMENT PARASTATAL

CHAPTER ONE;

1.0                      INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Organization both profit and non- profit oriented need funds       (financial assets) for their numerous operations. That is why all          organizations irrespective of their legal forms, device a means their       day- to –day operations. The funds sourced are not normally kept idle by the organization rather they are either being re invested to          generate future profit or consumed immediately to achieve the         origination day to day goals hence the word “ source and application   of funds” in accounting profession

Source and application of funds simply means the various avenues         available to an organization thought which it source it’s financial        assets and all the outlet through which the sourced financial assets     leaves the coffers of the organization

In recent past, government pareastalal which institute of       management and technology is one, depended revenue grants in    forms of subvention for few existence and growth, in this era of     privatization, the government has decided to shade off it’s financial           responsibilities in almost government paratatal so as to concentrate         in it’s constitutional role of providing enabling environment for     economic activities to thrive. This scenario has left many   government paratatal in total financial drought

For instance, the immediate lost years in the which institute of       management and technology has been a hectic one as financial       starvation meted to it by the government has left the which  institute with the following identifiably problems;-

1)      Constant face off between management and trade union in respect regular payment of salaries

11)    Lack of promotion to staff that are due to be promoted

111)  inability to maintain their fixed assets such as

a)       Building

b)      Motor vehicle

c)       Furniture and fittings

1V)    inability to settle their other numerous over heard costs

V)      Absence of non structures to replace the dilapidated once etc