Accounting Information System as a
means of Enhancing Financial Management of Transport Company
ABSTRACT
Accounting
information system in a transport organization has been a great problem to the third
world countries in general, which Nigeria as a country has its own share. This
research work, transport organization, suggests ways of minimizing the effects
of the problems of inefficient accounting information. It is believe that an
improvement in this regards will enhance the performance of the corporation. To
enable the researcher find solution to the problem of this study, some
questions were raised in the form of hypotheses, which were developed
comprising the null and alternative hypotheses. The methods of data collection
were primary and secondary data method. The data collected were analyzed by use
of simple percentages while chi-square was used to test the hypothesis
formulated for validity. Findings show that accounting information is an indispensible
tool in the management of Nigeria Railway Corporation and the activities of
unqualified and incompetent accounting officers are responsible for the
performance of the accounts departments in Nigeria Railway Corporation. Based
on the findings, the researcher concludes that the accountant should put more
efforts especially when computing the financial statement since accounts fraud
result from ignorant of proper accounting procedures. Since the financial
statement are sources of document of accounting information, efforts should be
made in generating more relevant, timely, effective and accurate accounting
information necessary for prevention or detection of fraud.
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The Nigerian Railway Corporation (NRC)
has been in existence for years. It is regarded the largest transport
corporation in Nigeria and has a high network operations. The Nigerian railway
corporation is One Hundred and Fourteen years (114) old and it runs a
unilaterally designed track system of 1067mm charge gauge. Only 30km of its
track distribution is in double track and that is within Lagos area. Nigerian
Railway Corporation actually commenced rail business activities with the
construction of the first rail line from Lagos to Ibadan 193m between 1998 and
1901. By 1964 when the construction of 640km Kano-Maiduguri rail line, then
known as Bornu extension, was completed, the present core of the railway
network hard been put in place. Presently, the railway system is made track
kilometers. In addition to this is the 19km 1067mm gauge extension from
Port-Harcourt to one deep sea port and the 277km standard gauge rail
construction of 1435mm from Ajaokuta to Warri. Nigerian railway was transformed
from its first and initial name. “Government Department
of Railway” 1955 through the instrumentality of the statutory act of parliament
which, apart from changing the name of the railway industry in Nigeria, equally
conferred on it absolute monopoly as the institution recognized by law to carry
out railway services.
The general aim and object of the
statutory act of parliament of 1955 for Nigerian railway is to recognize same
as carry i passenger and goods in a manner that will offer full value for
money, meet cost of operation, improve market share and quality of services,
ensure safety of operation and maximum efficiency, meet social responsibility
in a manner that will meet the requirements of rail
after, trade. The headquarters
of the corporation is located at Ebute-metta in Lagos state while the entire network
is for administrative convenience, divided into seven autonomy districts viz. Lagos
(Ebute-Metta junction), west (Ibadan), north (Zaria), east Enugu), North-west
(Minna), north- central (Kanfanchem) and North-east (bauchi) The railway system
has been undergoing same rehabilitation and modernization with the full
political and financial support of the federal government through the federal
ministry of transport. The rehabilitation of the railway system includes track
spot removal of Lagos to Kano and Maiduguri to port-Harcourt, supply of 25 new
locomotive engines from brazil south America to boost the registry motive power
base of the corporation, up grading of the signaling and telecommunication
system from manual to semi automatic, as well as rehabilitation of carriage and
wagon workshops, re-equipping the workshops, supply of service support (spare
part consumables), strategic rebranding of the corporation, rehabilitation of
stations and marshalling yards inter alia.
Equally, new railway lines are being
constructed in standard gauge (1435mm). These include: Ajaokuta-Warri of 277km,
Kaduna-Abuja (Idu) line of 186km while the scope of work for Lagos-Ibadan
segment is under review together with its cost implications.
The Nigerian Railway Corporation has
contributed amenably towards the improvement of social life and the development
of the national economy. This is through to be extended to every part of the
country that is the haven stages which will lead to permanent prosperity
confident was such an ultimate triumph of the railways. However, regardless of
the huge success made by the corporation, it is facing a hard time.
1.2 STATEMENT OF PROBLEMS
Nigeria Railway Corporation which
dominated the transport sector of the economy in the sixties is presently being
delegated by other means of transport such as road transport, sea, and air
transport. The corporation has lost her passengers and freight mainly to road
transport; this is because of inability of the corporation to compute
effectively in order to meet the age longed challenges.
Ordinarily there should have been
growth in both road and railway transport but the railway transport seems
neglected. The truth of the matter is not just neglected, but a problem of cash
flow difficulty and management these affect the purchase of spare parts,
repair, payment of salaries, inadequate infrastructure support and enhance
service rendering.
Given the above condition of the
Nigerian Railway Corporation in the nations transport industry, the problem
which looks for detailed analysis and solution includes the following
questions.
1.
Is
the accounting information used in the corporation adequate for managements
short and long term plans?
- Have the accounting officers in the corporation has the needed professional skills to cope with demands of the job?
- Is there any serious effort made by the corporation to boost operation?
- Do the accounting officers perform their duties without the interference of the management?
- What is the mode of approaching the chief accounting officer of the corporation?
Answer
to these questions above constitutes the basic problem of the researchers work.
1.3 OBJECTIVES OF THE STUDY
Bearing in mind the above mentioned
problem study is aimed at finding out among other things such as:-
- The organization of accounting department in Nigerian Railway Corporation with particular interest in the eastern division of the corporation and how the accounts department contributes to the achievement of overall goals for the corporation.
- Whether the accounting information is actually one of the effective management tools in the railway corporation.
- Whether the accountants in the corporation adequately perform their duties in conformity with the statement of accounting standards (SAS)
- In where the tools of the accounts department to the performance of the individual workers in term of their output.
1.4
RESEARCH
QUESTIONS
Despite
the problem mentioned above concerning the Nigerian railway corporation, these
questions are been asked towards their accounting department.
- Dose the account department of railway corporation Enugu contribute to the achievement of the overall goals of the corporation?
- Is the accounting information actually one of the effective management tools in the railway corporation Enugu?
- Dose the accountants adequately perform their duties in conformity with the statement of accounting standards?
- What are the tools of the accounts department to the performance of the individual works in terms of their output?
1.5
HYPOTHESIS OF THE STUDY
The
following hypothesis where postulated as a guide to the researcher:
- Ho:- accounting information is not an indispensable tool in the management of Nigerian railway corporation.
HI:- accounting information is an
dispensable tool in the management of Nigerian railway corporation.
- Ho:- The activities of unqualified and incompetent accounting officers are not responsible for the poor performance of the accounts department in Nigerian railway corporation.
HI:- The activities of unqualified and
incompetent accounting officers are responsible for the poor performance
of the accounts department in Nigerian railway corporation.
- Ho:- The absence of computer system application dose not affects the timeless, accuracy and availability of accounting information in Nigerian railway corporation.
HI:- The absence of computer system
application affects the timeless, accuracy and availability of
accounting information in Nigerian railway corporation.
1.6
SIGNIFICANCE OF THE STUDY
The role of accounting information in
the management of large business organization cannot be over emphasized. It is
based on the fact that the research is to study and appraise accounting
information system as a tool of management using the Nigerian Railway
Corporation Enugu as a possible ways of minimizing the problem for better and
enhanced performance as the corporation.
The knowledge about these problems and their
way out will help remedy other transport corporation in similar state. This
study is to make recommendation that would boost the operation performance of
the account department in the Nigerian Railway Corporation Enugu if being
implemented. Beside, the study of this work is to help as well as serve as a
term of reference for those who may be interested in using it.
1.7
SCOPE AND LIMITATION OF THE STUDY
This study is on the Nigerian Railway
Corporation Eastern division, the limitation of this study in Nigeria railway
corporation eastern division Enugu. This is due to some constraints; those
constraints were financial difficulties which prevented the running down from
one relevant railway corporation division to another for sources of information
necessary for this study.
Another constraints are the time limit
within my disposal, the demand from the academic activities and limit within
this study is to be presented constitute the constitutes
1.8 DEFINITION OF TERMS
FRIGHTS: This is the volume of revenue acquired
by all haulage of goods by the good train.
PASSENGERS
FARE: This complies of the returns made
from ticket sales and penalties by defaulting passengers.
LOLLING
STOCK: This include
the entire carrying system which is made up of the locomotive engine,
coaches, wagons, (both covered and uncovered) and tanks. They are used in the
haulage of goods and in carrying passengers.
LOCOMOTIVE
ENGINE: This is the
enquire mechanism at the head of the rolling stock that pulls then along
the truck in the movement of goods and passengers trains.
COACHINGS:
These are revenue
from country livestock.
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