ABSTRACT
The
quest for improving corporate governance as a pre-requisite for better
performance has become an increasingly important issue in Nigerian
Universities.
Efficient
corporate governance is the bedrock for proper and effective management of
institutions world over including managing finances in Nigerian Universities of
which this study examined. The obvious corporate failures in Nigerian
universities are associated with poor management for recognising risk
management and poor internal audit. Therefore the problem this study unravels
was the value of corporate governance in financial management of the University
of Nigeria. The data for this study was generated through structured
questionnaires and interpersonal interviews. The data obtained were analysed
using frequency percentage, mean and chi-square statistical method. From the
result of data analysed, it was found out that the major sources of finance to
the university include Government grant, student school fees, Income from
investment, donations from friends of the university and income from subsidiary
companies. The objectives of financial management in the university were also
identified to include reduction of fraud in the system, increase accountability
and transparency in the system and to promote effective financial regulation.
Furthermore,
the value of corporate governance was found to include the following; independent
of Auditor is emphasized, effective internal control is maintained and due
process of financial management is ensured. The study recommended among others
that the Bursar, who is the head of finance, should be a member of related
accounting professional bodies like ICAN, ANN, ACCA.
Also,
since it was obvious that corporate governance aims to minimise chances of
corruption, mal-practice and financial fraud. The object of good corporate
governance is attained when an institution demonstrate their public
accountability and conduct their businesses within acceptable ethical standard.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
The
higher education system in Nigeria is composed of universities, polytechnics,
technological institutions, colleges of education that form part of, or are
affiliated to universities and polytechnic colleges, and professionals,
specialised institutions (IAU, 2000). They can be further categorised as
federal, state or private universities, and as first, second or third
generation universities (Harnett, 2000:1).
Federal universities are owned and funded by the federal government while
state universities are owned and financed by the states . The private
universities are owned and financed by individual owner(s).All federal
universities receive the backup of their financing (almost 95%) from the
federal government through the National University Commission NUC, (Harnett,
and 2000:1).
Furthermore,
the federal university budgeting processes and expenditures have to adhere to
budgeting and expenditure formula stipulated by NUC as follows: 60 percent
total academic expenditure; 39 percent for administrative support; and 1
percent for pension and benefits (Harnett.2000: 7).
Ogunlade sighted in Ania
(2004), stated four sources of finance in Nigerian university education: (a).
Support from federal and state governments consisting more than 98% of the
recurrent cost and 100% of the capital cost. (b). student fees/ educational
fees; (c). Occasional grants, (d). interest earnings on short term bank
deposits and rents of university properties. Other sources of finance to higher
education in Nigeria include endowments, fees/levies, gifts and international
aids from international organisation, for example, World Bank, (Sikiwibole and
Suleman, 2000).
Within
the Nigeria university system and management function, the Bursary department
is in direct control of finance. The Bursar is the chief financial officer of
the university, and is appointed by the council and is responsible to
the
Vice Chancellor, Rector, Provost.. The Bursar ensures that the funds of the
institution are spent in accordance with the provisions of Government financial
regulations and university Act laid down by the council and that no funds of
the institutions are spent without proper authority and accounting. Financial
management is a necessary tool for supporting the organisations goals and
objectives. Financial management according to (Miller, 2000:2) states that
financial management involves controlling, conserving, allowing, and investing
the organisation’s resources including personnel, equipment, supplies and the
non monetary contributions of volunteers and donations.
Federal
government controls the universities through the following organs: Federal
Ministry of Education, national University Commission (NUC), which among other
things allocates funds to federal universities and also prescribes the spending
formula .Each university, is administered by a council and the senate and is
headed by and appointed. The duties of the bursar as the financial manager are
controlled by the Vice Chancellor while the Vice Chancellor is the Accounting
officer of the university answerable to and appointed by the Council. The
governing council of a university is the highest regulating and policy making
organ of the institution, while the Senate is highest authority in terms of
academic matters in the university. The Council of every higher institution is
been headed by a pro chancellor who is appointed by the Federal Executive
council. The Senate equally have members representing them at the Council level while the
congregation and convocation have two of their...
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Item Type: Postgraduate Material | Attribute: 114 pages | Chapters: 1-5
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