ANALYSIS OF FINANCIAL CONTROL SYSTEM IN GOVERNMENT COMMERCIALIZED ENTERPRISES

This research work analyses the financial control system in government enterprises in Nigeria. The National Electric Power Authority (NEPA) Enugu was chosen as a case study. The purpose of the study is to examine if there are financial control measures in NEPA Enugu, to see if these measures are adequate and in line with provisions of the regulations of the state and federal government, to determine if these measures are effectively applied and thus examine the implication of financial control NEPA Enugu. Twenty workers in the accounts department of NEPA, Enugu both district and zonal offices were chosen as the respondents of the study. Responses were collected from them with the use of questionnaire and oral interview were administered personally on them. The researcher was able to ascertain from the study. That a good financial control system is in line with the regulations of the federal and state government. the adoption of these financial regulations serves as a guideline for workers which they have to comply. Also for the effective control on the movement of materials specific precautions are taken to ensure accountability. It was also revealed from the research that an internal checking and auditing unit exist and the organization maintained two accounts in order to exercise control over cash. It was ascertained that there were fewer cases of fraud in the enterprise and that the financial control system of the establishment has been able to stand the test of time having assisted in checking fraud, and misappropriation. Finally, the researcher made some recommendations which if adopted will enhance greater efficiency. Some of the key recommendations are that the financial control system of the organization should not revolve around a person, no matter how highly placed, otherwise in his absence there would be flows rather the financial control should revolve around procedures, processes, and techniques. Also, the personnel management board of this organization should ensure that honest, well qualified and sincere workers with integrity are employed. This is because it is a control weakness to very stick and advanced control mechanism manned by cheap and unqualified staff with a history of fraud and incompetence. Hence dishonest and negatively ingenious staff with a dubious motive can beat any system no matter how right.