EFFECTIVENESS OF ACCRUAL ACCOUNTING IN PUBLIC SECTOR FOR SUSTAINABLE DEVELOPMENT: A STUDY OF EBONYI STATE MINISTRY OF FINANCE

ABSTRACT

ABSTRACT

This study investigated the effectiveness of accrual accounting in public sector for sustainable development. The study is carried out in Ebonyi state. The population of the study was stratified into three (3) groups namely 69 auditors, 92 accountants and 31 finance managers in the Ministry of Finance that comprised 192 staff. There was no sampling since the population was handy as such the entire population was used for the study. Data were collected with the help of questionnaires consisting of 30 closed questions, with a five point likert scale while ordinary least square regression model was used in the analysis. Results of the study indicated that expenditure management, compliance with standards, transparency, and careful recording were all negatively related with income management in a sample that is free from the endogeneity problem which has clogged previous studies. The negative relationships suggested that as expenditure management, compliance with standards, transparency, and careful recording increases, income management in public sector decreases. The implication of this study was that expenditure management, compliance with standards, transparency and careful recording greatly affects accountability in Nigerian public sector. The results of the study were consistent with the findings of other scholars such as Bastani, Abolhaji, Ramzanian, Jafari and Kordi 2012, Omodero and Okafor, 2016, Okere, Eluyela, Bassey and Ajetunmobi 2017). It was therefore recommended that auditors should be adequately trained on technical sides of accrual accounting until they are competent enough to audit accounts prepared and presented using accrual basis of accounting.  

Keywords: Accrual Accounting, Public Sector, Sustainable Development, Ministry of Finance.