Financial Control – The Effectiveness in Public Sector


The management of financial resources in the pubic sector is the heart of government administration of financial control in pubic sector.

Financial control can then be sera as the process, which assures that financial resources are obtained economically, and used effectively and effectively in the accomplishment of descried galas.

Thus of can be said to be an assurance process, which includes the process of decision – making.

In the blight of current economic problems in the country, the finical manners especially those in the pubic sector concerned with the financial control of the government funds are faced with a lot of problems, example include direct embezzlement, large scale salary frauds contract inflates.

Financial control also stresses on the acquisition of adequate funds as well as application of such funds so raised.

The researcher were mutilated to chose this topic decease of the necessity for the government to prevent and minimize fraud and embezzlement in the pubic sector through the proper book keeping of income and expenditure in pubic sector.

This study aims at the effective application of financial control vote expenditure and allocation books (DVEA)



In the light of current economic problems in Nigeria, the financial planners especially those in the pubic sector concerned with the financial control of government fun with a lot of problems such as he inflation of contract prices payment of salaries to ghost workers payment of contractors for services not rendered and goods not applied, contractors and payment for unauthorized expenditures.

It is intended to see how effective the use of the DVEA book been a control tool for pubic sector accounting.

The amount of information than what could be found in the normal ledger used to record the double entry system of the pubic sector accounting.

It is intended that the information in the DVEA book is to be reviewed to ascertain its adequacy.


1.3 Objective of the study

This study is aimed at revealing the amount and quality of information contained in the DVEA book with a view to assessing its relevance to the control objective of government accounting.

1. Financial control and management are the essential sectors.

2. The study aims at developing a realistic picture of how financial control can help make the government sector efficiently effective and successful.

3. To examine and make recommendation on what other possible measures that could be improve on the current state of affairs

4. To identify the problems and the coursed of the already identified problems of the government sector and in public finance.

5. To highlight that there exist ordinance/ law principles and rules guiding the government accounting in Nigeria just as their counterparts in private organization.


This study is intended to highlight the benefits of departmental vote expenditure allocation book in public sector.

The researchers were motivated by the need of proper maintained of DVEA book by financial controllers to restore public trust in the information in the public sector. This will equally contract the loss of credibility in the eyes of the international financial community.

Finally, the study will be of immense importance to our policy makers in portraying whether the DVEA book is achieving its set objectives, what amendment is any should be made to it.



The researcher intended to explain how DVEA books could assist in the planning and control of the public sector. However, the study would be narrowed down to cover only the federal ministry of finance and brief other related government organization.

This research is limited to the effects of proper use of DVEA books in analyzing and answering the major research question.



This is maintained for each subhead an integral part of the system of budget control. It is designed to facilitate vote watching the allocation of responsibility to financial offers to ensure that expenditure in excess of appropriation or in excess of authority to incur expenditure does not occur.



According to rover, the keeping of accounting records can be dated to the periods of the early Greeks and Romans

He also revealed that evidence has been found that double entry originated simultaneously in several trading centers gradually over a period of time. Some concepts under the system mentioned above were described and included the following.

1. Double entry assures a concept of the business entry and business relationship.

2. Transactions were recoded in monetary terms.

3. The use of expense and liquidity in financial control implies a partial understanding of distinction between capital and income.

Also partnership allowed the people with substantial wealth to combine the younger traders who had the energy to see to the administration of the business.

There was a case of a solvent partner who furnished capital to the business on which he have to receive interest.


Through the advent of the connubial masters into Nigeria ushered in the formal financial control theory to Nigeria, there were evidence that some of the colonization of the country. History revealed that there had been a system of financial control before the coming of the Europeans.

Among the Yoruba’s, there was the use of cowries as a medium of exchange in their trading activities

According to Achebe (1958:6) it was made clear that our ancestors made strokes of line on the wall or door to serve as financial control measure, then by enabling them to know owing them or those the owed.

In the early century, the Europeans came and colonized the countries of Africa and introduced the stem civilization in its ramifications.

Thus the formal financial control process came in to Nigeria.



Financial control in public sector is defined as a system of analyzing the funds of the government into head and sub- heads, recording of the funds in the cash book and vote book, classifying summarizing, reporting, and interpreting the financial statement of the government.

Financial control at all levels of government is closely related to the budget process. The federal government sets forth several accounting principles practices and requirement to be followed by the government ministries and departments through issuance of treasury circulars and financial regulation 1976.

There are the units which government financial control is operated there are three main accounting units.

1. Non- self accounting units

2. Sub- accounting units

3. Self- accounting units



1. In government sector, if no proper control is exercised from time, to time, right away from time of preparing the estimates up to time of spending, the government budget may invariably end up in what was not budgeted for.

2. Expenditure control includes all control applied or expected to be applied by public officers of government either as responsibility or by delegation or any other situation on expenditure at one stage or the other

3. The primary objective is to ensure that public fund is judiciously spent and in the interest of the public.

4. It is to ensure that no expenditure can be incurred except with appropriate authority.

5. It is also to ensure the validity of all claims and that documents supporting each payment are adequate and in order.


Financial controller that is controlling expenditure may delegate the control of a vote book or part therefore to his or her subordinate. The sub- ordinate however can sub-delegate.

Such delegation will not relieve the finance officer or officer controlling expenditure of the ultimate responsibility of public funds falling within the expenditure head of his ministry of department.


The DVED book is the fore a record of expenditure and liabilities in curried in respect of votes of funds placed at the disposal of a department. a vote book is maintained for each sub-head and is an integral part of the system of funds control.

It is the duty of every officer controlling expenditure to ensure that there is proper maintained of a department vote expenditure allocation book (OVEA book) other wise called vote book.

The body of the has 15 columns providing information in respect of –

1. Expenditures

2. Liabilities

3. Balance available

When an officer controlling expenditure watches any expenditure in the vote book that was not approved the will have to investigate it without delay with a particular view to determine any fraudulent payment.


The signature of an officer controlling a vote or an officer signing for him certifies the accuracy and authenticity of the voucher e.g. that.

1. The services have been rendered or the good had been supplied and duly taken on charge.

2. The price is ‘as a feed or reasonable’ and authority had been earlier obtained.

3. All computation is in order

4. The name and address of the payee is authentic

5. The validity of the warrant or any other expenditure authority is certain.


Officers are acquired to speed judiciously spending should not be.



The conclusion reached in the research study was gentled by the result of the analysis carried out on be seen that the excess expenditure and fraud are due to the documents used for the vote book entries. Most of the data collected that they did not even know the correct documents necessary for vote book entries and for maintaining the vote book.

It can then be assumed that we the originator of payment voucher failed to quote and attach correct documents, the amount on it can be easily changed and this may not be discovered by the internal auditors who will pass such voucher for payment, resulting to either over expenditure or successful completion of fraud. E.t.c.

This shows a high degree of deviation from the internal audit was nit effective and this has led to frequent occurrence of fraud.