INVESTIGATION INTO THE IMPACT OF EFFECTIVE FINANCIAL
RECORDS KEEPING IN SOME SELECTED SCHOOLS IN SOME LOCAL GOVERNMENT AREAS OF
LAGOS STATE
BY
IDOWU CHRISTIANA OLUWATOSIIN
MATRIC NO: EKSU/EPE/12/0070
A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF
ACCOUNTING FACULTY OF EDUCATION, EKITI STATE UNIVERSITY, ADO-EKITI IN PARTIAL
FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF BACHELOR OF
SCIENCE (ED) IN ACCOUNTING
DECEMBER 2017
CERTIFICATION
This
is to certify that this project was carried out under my supervision by Idowu
Christiana Oluwatosin with Matric number EKSU/EPE/12/0070 and has been approved
as meeting the requirement of the faculty of education, Department of
Accounting education, Ekiti state university, Ado Ekiti Nigeria.
________________ _______________
Mr. Olugbemi P.W Date
Supervisor
_______________ _______________
Mr. Adebosin W.G Date
Head of department
________________ _______________
Dr. O.A. Viatonu Date
Directorate of
Degree Programme
________________ _______________
External
Examiner Date
ii
DEDICATION
This research work is dedicated to my
father in heaven, God Almighty, the author and finisher of our faith whom by
his grace foreknew predestined and made this work a success and for seeing me
through my Academics years. And to my parents, Mr and Mrs Idowu and my
siblings.
iii
ACKNOWLEDGEMENTS
My
profound gratitude goes to God Almighty, the creator of all mankind for his
mercies towards me from the beginning of the academic programme to the end and
for a successful project well done.
My
immense regards goes to my honorable supervisor, a great father, a wonderful
lecturer and a friend indeed, Mr P.W Olugbemi who despite all the stress and
tight schedules made time to go through my work with all mistakes and corrected
the work to the end. I pray that the lord will richly reward you in double
folds according to his riches in glory.
My
sincere gratitude goes to my loving and ever caring parents, Mr and Mrs Idowu
who were there for me morally, financially and spiritually due to their love
and desire for education. I couldn’t have asked God for more because they are
all I ever need. I pray that God prolong their lives to eat the fruit of their
labour.
My
special and profound gratitude goes to my lovely siblings, Mr Idowu Oluwasegun,
Mrs Adeshile Abimbola, Idowu Oluwafemi and Idowu Ayomide for their supports
financially and their words of advice. I say a big thanks, I pray that God
provide all your needs.
My
regards also goes to my worthy and amiable lecturers who in their own way
brought me this far, Mr Adebosin, Mr Adeyemi, Mr Oluwo, Mr Ayanwole and Mr
Oyewole for their immeasurable impact of knowledge and wisdom in my life. I
will forever remain grateful to you all.
Special
thanks to Mr Gabriel Ayodeji Morgan and Comr Ajewole Samson for their love,
care and support both financially and morally on my education. I pray God
iv
continue
to increase you.
Many
thanks to my course mates especially Adebiyi Latifat, you are really a friend
indeed not leaving behind Bunmi, damilola, Mary and to whom I could not list
for your presence in my life and for the roles you all played, am indeed grateful.
I
also appreciate the effort of Omotoprecious Ventures in the type setting of
this work.
I
also want to appreciate my shepherd, Mr Adeniyi Adewole and the entire members
of Central Parish, Noforija for their prayers. I pray that God will continue to
bless and uphold the church.
v
ABSTRACT
Financial Record
keeping is one of the important pre-requisites for successful enterprise such
as the schools programme for enterprise, However, the adequate and up to date
keeping of these records in school settings is an age long issue. Hence this
study investigated the impact of effective financial records keeping in some
selected public and private secondary schools in Epe and Lagos Island Local
Government. Ten private secondary schools in Epe were selected for the purpose
of this study. The instrument used for data collection was the questionnaire on
impact of financial records on the success of private secondary school
administration. The data obtained were analyzed using frequency count simple
percentage and chi-square analysis. The results obtained from the study show
that most of the respondents claimed that most of the checklists of financial
records were not available in their schools; records kept were used to
determine progress in the school and that lack of financial records may lead to
lack of school expansion. This means that records kept were used to determine
progress in the school and more respondents strongly agreed and agreed than
those who strongly disagree and disagreed that there is significance
relationship between record keeping and success made by private secondary
school. It can be deduced from the finding that, teachers should acquire
knowledge on modern methods of financial record keeping which are made
available through modern information technology. Records should be kept
honestly, accurately, safely and confidentially, planning done with falsified
records cannot be accurate and this will not augur well for the nation’s
educational development. Finally, the manager and the school or the administrators
should provide facilities that are required for record keeping; such as: record
books, files, audio and visual equipment among others, should be provided in
sufficient quantity. Besides, the storage facilities which will enhance safety
to the records from theft, mutilation, destruction and accessibility to
unauthorized persons should be provided and additional studies should be
conducted to determine the impact of financial records on the success of
private secondary school.
vi
TABLE
OF CONTENT
Title
page
Certification
Dedication
Acknowledgement
Abstract
Table
of content
CHAPTER ONE: INTRODUCTION
1.1 Background
Of The Study 1
1.2 Statement
Of Problem 6
1.3 Purpose
Of The Study 6
1.4 Research
Question 7
1.5 Research
Hypothesis 7
1.6 Significance
Of The Study 8
1.7 Scope
and Limitation of the Study 9
1.8 Definition
of Terms 9
CHAPTER TWO: LITERATURE REVIEW
2.1
Introduction 10
2.2 Objectives
of starting a school 12
2.3 Finance
13
2.4 sources
of Finance 16
2.5 Challenges
of private schools 23
v
2.6 Problems
facing Private schools 26
2.7
Possible Solution to Private Schools problems 27
CHAPTER THREE: RESEARCH
METHODOLOGY
3.1
Research Design 28
3.2
Population of the Study 28
3.3
sample and Sampling Techniques 28
3.4
Research Instrument 29
3.5
Validity and Reliability of instrument 29
3.6
Administration of the Instrument 29
3.7
Method of Data Analysis 30
CHAPTER FOUR: RESULTS
AND DISCUSSION
4.1
Result 31
4.2 Discussion
of Result 34
CHAPTER FIVE: SUMMARY,
CONCLUSION, AND RECOMMENDATIONS
5.1
Summary 45
5.2
Conclusions 46
5.3
Recommendations 46
vi
REFERENCE 48
APPENDIX
I 50
APPENDIX
II 56
APPENDIX
III 61
vii
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Many
new business owners are daunted by the mere idea of bookkeeping and accounting.
But in reality, both are pretty simple. Keep in mind those bookkeeping and
accounting share two basic goals: to keep track of income and expenses, which
improves chances of making a profit, and to collect the financial information
necessary for filing various tax returns. There is no requirement that records
be kept in any particular way. As long as records accurately reflect the
business’s income and expenses, there is a requirement, however, that some
businesses use a certain method of crediting their accounts: the cash method or
accrual method. Depending on the size of the business and amount of sales, one
can create own ledgers and reports, or rely on accounting (Williams et al
1999). An accounting system records, retains and reproduces financial
information relating to financial transaction flows and financial position.
Financial transaction flows encompass primarily inflows on account of incomes
and outflows on account of expenses. Elements of financial position, including
property, money received, or money spent, are assigned to one of the primary
groups, that is, assets, liabilities, and equity. Within these primary groups
each distinctive asset, liability, income and expense is represented by
respective “account”. An account is simply a record of financial inflows and
outflows in relation to the respective asset, liability, income or expense.
Income and expense accounts are considered temporary accounts, since they
represent only the inflows and outflows absorbed in the financial-position
elements on completion of the time period (Williams et al, 2008). The impact of
accounting is a function of the benefit that are derived by the members of the
society who had bind themselves into the social organization of their survival
and want satisfaction quest (Anyigbo 1999). Business benefit from availability
of accounting information, equality important is the availability of accounting
that facilitates the solution or resolution of business planning, organization
and control function of the enterprises as a social organization. Most small
scale firm owners prefer to recruit unskilled personnel especially clerical and
accounting staff. The product of these unskilled accounting (clerical staff)
has only succeeded in helping the small scale firms to stagnate; some firms
have even wound up. This was because unskilled accounting staff could not keep
reliable accounting records that would stand the test of time statutory; such
staff could not correctly determined the profit or loss of the firm preparing
profit and loss account. Okwena K. D.,Okioma T. and Erick N. O. (2010)
The success of any private or public
organization depends largely on the proprietor’s ability to manage available
funds to provide needed resources for the success of the organization, records
of funds i.e. income and expenditure are kept in order to achieve this purpose.
Historically, there is no accurate record as to when account started but
available information suggests that record keeping is as old as man. Retrospectively,
the starting point can be linked to the Babylonians and Assyrians civilization
about 4000 years B.C the modus operandi for keeping records at the time was to
marks on the wall or stone or wax tablets. The critical event in accounting in
accounting was the introduction of double entry book system in Italy described
as “Italian method”. He opined that all entries must have double entry system
one debt and one credit. Even though during this period the records were
prepared to show statement of the business rather than the owner but the yearly
preparation of the still lacking. The imperative of business records cannot be
overemphasized. Every serious school administrators must as a matter of fact be
able to maintain proper records of his or her transactions. Proper book keeping
is important to sustaining and expanding a school. Without it, the schools run
the risk of hitting cash flow crunches, wasting money, and missing out on
opportunities to expand his business. When proper records of your school transactions,
you were properly positioned to carry out proper business evaluation and see
how your school is fairing. Ademola et al (2012). The purpose of book keeping
is to help manage the school and also to enable tax agencies to evaluate the
business activity of the school. As long as book keeping achieves both of these
objectives, the school is in the right direction. Financial records are
important because it prevents theft and keeps things organized.. Effective and
efficient record keeping practices secures the schools against embezzlement and
dishonest employees. Additionally, tracking the transfer of money is important
so that the wise school owners can know who received money, how much they
currently have or if there are any inconsistency that needs to be investigated
or corrected. Keeping accurate records is highly fundamental for a successful
school to stay organized. Every business needs a Revenue or Expense Journal or
a Ledger to keep track of how much money is going out, where it is going, and
what is coming in. A Revenue and Expense Journal is used by most small
businesses and is single-entry accounting - recording receipts and expenditures
only. A ledger is used to record every transaction twice based on the idea that
each transaction has two halves that affect the business. The cash spent in the
schools needs to be accounted for all expenses in a given year, this will
enable the school bursary department to calculate how profitable the school has
been over the year. There are at least two ways to do this; by write reimbursable
checks and Keeping a petty cash record. The National Policy on Education (2016)
recognizes the fact education should be a shared responsibility between the
government and the private individual. Based on this fact private and public secondary
schools have a legal backing. It is however important to say that their
operation are too supervised by the ministry of education which provide
guidelines and registering public and private schools. The major service
rendered by these schools is providing education to willing individuals who can
meet their terms and conditions in terms of school fees and other
contributions. It has been observed that many of these schools are not
registered and therefore do not meet the required standard. A school can be
established in partnership with two or more people for the success of the
school. They both contribute money to finance the school and make decision on
how the recourses should be utilized. The proprietor/government may fulfill his
objectives of starting a school with provision of finance or capital not only
to start the school but also to expend and sustain the school. He needs money
to but furnish such as chair, desk, teacher’s table and chair, rent or build a
house, pay teachers salaries and pursue the process of registering the school.
It is possible for the founder to raise money from the following source; Borrowing
from friends and relatives, cooperatives, trade credits The sustainability of
private schools can be by keeping to beneficial ideas that can promote it as a
school concern such as ensuring productive utilization of funds, keeping up to
date records on the school activities: According to Atijosan (1998), there is
need for the school to record its financial transaction, do the proper internal
and external auditing of the schools account and balance its account
periodically, providing financial reports to books and other financial lenders
to the school in order to render their valuable advice to it, this would ramose
confidence in both the proprietors, the Government and all financial supporters
of the school and in turn promote the growth and development of the school
significantly.
1.2 Statement of the Problem
All private and public schools dealing
with money are expected to maintain adequate records of incomes and expenses. Experience
has shown that, though many of the existing private and public schools issue
receipts for all payments made by the parents for their wards. Other records
like cash book, Ledger book are seldom in some of such school; and where these
records are available, they are scantly updated. Hence, this call for
preliminary investigation into how these schools operate financial record
keeping for their academic and non academic programmes.
This study is therefore out to
investigate into the impact and effectiveness of financial records keeping in
some selected public and private schools.
1.3 Purpose of the Study
The study is out to achieve the
following objectives:
i.
To determine if private
and public secondary schools keep financial records.
ii.
To determine if such
records are adequate and well kept.
iii.
To determine the
relationship between well and adequately kept financial records and the success
of the public and secondary schools.
1.4 Research Questions
The following research
questions are to be provided with answer in the study:
1. Do
private and public schools keep any financial records at all?
2. Are
the records kept used for any information to determine progress in the school?
3. Is
there any significant relationship between records keeping and success made by
private and public schools?
4. To
what extent do these records help in yearly budgeting of these schools?
5. Are
there any correcting measures for updating those records?
1.5 Research Hypotheses
HO1: Null hypothesis (Ho): There is no significant
difference between financial record keeping
in public and private secondary school.
Ha1: Alternate hypothesis (Ha): There is significant difference
between the financial record keeping in
public and private secondary schools.
Ho2: Null hypothesis (Ho): There is no significant
difference between record keeping and success
made in public and private secondary school.
Ha2: Alternate hypothesis (Ha): There is significant difference
between record keeping in success
made in public and private secondary schools.
Ho3: Null hypothesis (Ho): There is no significant
difference between yearly budgeting of public
and private secondary schools and their success.
Ha3: Alternate hypothesis (Ha): There is significant difference
between yearly budgeting of public and
private secondary schools and their success.
Ho4: Null hypothesis (Ho): There is no significant
difference between the record kept for information
purpose and the progress of public and private secondary schools.
Ha4: Alternate hypothesis (Ha): There is significant difference
between the record kept for
information purpose and the progress of public and private secondary schools.
1.6 Significant of the Study
The study is significant in the
following areas:
1. It
could be beneficial to private and public secondary schools owners. The result
of the finding could be used to improve how records are kept, thereby using the
records to track income and expenditure to determine development and where
there is need for improvement.
2. The
research project will serve as a reliable source of information to students and
researchers.
1.7 Limitation of the Study
This research work is limited to Epe
and Lagos Island local Government private and public secondary schools because
certain constraints were working against it. It could have covered more local
government. Money and time are some of the factors that limited the work to two
local governments only.
1.8 Definition of Terms
The
following terms shall be defined as stated for the purpose of this study:
Financial Records: this
is the act of recording the transactions of a business in monetary terms. It is also the science and act
of correctly recording in the books all those business transactions that result
in the transfer of money’s worth within or between entries.
Accounting:
This is the process of recording; classifying, selecting, measuring,
interpreting and communicating financial data of an organization to enable
users make assessments and decision. It is a discipline which comprises a set
of theories and concepts for processing financial data into information.
Accounting records in monetary terms in
the flow of economic value within or between economic entities.
School Records:
This serve as a bank in which information is deposited and kept with the hope
of retrieving and utilizing in the future. It provides raw data which can be
used by officials of education ministries for planning purpose.
Private Secondary school:
This is known as independent secondary schools, are not administered by local,
state or national government. It is founded, conducted and maintained by a private group rather
than by the government.
Public Secondary school:
This is known as government owned school which are administered by local, state or national government. It is
founded, conducted and maintained
by the government.
Administration:
The activities that relate to running a school or other organization.
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