EFFECT OF FINANCIAL

MANAGEMENT IN PUBLIC
SECTOR
(A CASE STUDY OF NATIONAL CENTRE FOR
AGRICULTURAL MECHANIZATION, ILORIN)

BY

OLADOSU OLUWATOMI
ND/14/ACC/PT/018
BEING A PROJECT SUBMITTED TO THE
DEPARTMENT OF ACCOUNTANCY,
INSTITUTE OF FINANCE AND MANAGEMENT
STUDIES, KWARA STATE POLYTECHNIC,
ILORIN

IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE AWARD OF
NATIONAL DIPLOMA (ND) IN ACCOUNTANCY

1
 JULY, 2017

2
 CERTIFICATION
This is to certify that this research work has been
completed, read through and approved as meeting part of the
requirements of the Department of Accountancy, Institute of
Finance and Management Studies, Kwara State Polytechnic for
the Award of National Diploma in Accountancy.

________________________ ________________
MR. ELELU, M.O. DATE
Project Supervisor

_________________________ __________________
MR. SAAD TUNDE DATE
Project Coordinator

________________________ __________________
MR. MOHAMMED, K.A.G DATE
Head of Department

________________________ _________________
MR. ALIU ISMAILA DAUDU DATE
EXTERNAL EXAMINAL

3
 TABLE OF CONTENTS
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Table of contents v
CHAPTER ONE
1.0 Introduction 1
1.1 Background of study 1
1.2 Statement of the problem 3
1.3 Research Questions 4
1.4 Objectives of the study 4
1.5 Scope and limitation of the study 6
1.6 Research methodology 6
1.7 Plan of the study 7
1.8 Definition of terms 9
CHAPTER TWO
2.0 Introduction 12
2.1 Definition of financial management 12
2.2 Financial management within the strategic management
2.3 Budgeting and budgetary control in public sector.
2.4 Sources and uses of funds in public sector 22

4
CHAPTER THREE
Research methodology 24
3.0 Introduction 24
3.1 Historical Background of national centre for agricultural
mechanization 24
3.2 Research design 26
3.3 Statement of Research question 26
3.4 Sources of data Collection 27
3.5 Methods of collection of data 28
3.6 Population and sample size 28
3.7 Data analysis techniques. 29
CHAPTER FOUR
4.0 Introduction 30
4.1 Data presentation 31
4.2 Presentation and analysis of state from questionnaire.
4.3 Discussion of findings 38
CHAPTER FIVE
5.0 Introduction, Conclusion and Recommendation 40
5.1 Summaries of findings 40
5.2 Conclusions 42
5.3 Recommendations 43
5.4 Bibliography 47

5
 CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

A financial Management is uniquely executed act of

identifying a variable uniquely project and the allocation

resources in order to ensure the enhancement of the

organization’s wealth.

The basic purpose of management to provide focus and

consistence regarding the planned action of a particular

organization.

The term finance is he process of providing fund for

economic activity, the both individual and corporate

organization are quit familiars with because of the sectary of

found to executed a consumption process of a project. As well

know that finance is the life blood of all organization not

excluding public sector. Therefore management of fund in the

public sector is very essential and inevitable by a concern to

the government and the public as a whole.

6
 The purpose and objects of government expenditure

through government parastatals and agencies are to provide

basic social needs and services like good road, electricity,

hospital and good health programmed, housing and drinkable

water scheme researcher, technological development business

(to mention a few). The need for effective and efficient

management of government fund to achieve the earlier

maintained objectives and purpose worth prompting one study

the effect of financial management in public sector

organization is not profit making unlike private sector

organization and the basis of accessing the performance of a

public sector activities as to relate cost incurred in generating

a specific revenue to determine the worth wholeness of an

action.

It is therefore imperative of conduct this research work

so that knowledge can is added improve upon.

7
1.2 STATEMENT OF THE PROBLEM

In most economic, every nation produces all he or she

needed as a result of the substance nature of the nations

desire. This project focuses on effect of financial management

in public sector. However the project will tends to provide

solution to the following research problem.

i. What are the impacts of financial management in public

sector?

ii. How does the financial management examine the problem of

rising in public sector?

iii. What are the ways of improving the financial management

in public sector?

iv. What an the needs to mobilize the finance economic

development programmes in Nigeria.

v. In what way can inadequate market infrastructural facilities

hinder the operations of public sector.

8
1.3 RESEARCH QUESTIONS

In view of the problem identified with government

establishment this research work is especially failure towards

finding solution to the questions.

i. How does the prudent financial management of scarce

public fund affect success of government establishment?

ii. How can finance management skill be utilized as an

efficient cost reduction and goal actualization tool in

government establishment?

iii. How can employees at the middle and lower level cadre be

strategies involved in the implementation of financial

management process in the government establishment?

1.4 OBJECTIVES OF THE STUDY

The focus of the study to determine the effect of financial

management in the public sector, therefore making national

centre for agricultural mechanization (NCAM) a case study of

the project enable us to review a determine aims and

objectives of the study as follows.

9
a. To determines the various sources as of fund available to

the centre (NCAM)

b. To examine various types and basis of incurring

expenditure in the centre (NCAM).

c. To examine financial management process in the centre

(NCAM).

d. To determine the effect of financial management on various

activities and department operations are who in the centre.

e. To determine effectiveness and appropriate of the

accounting system in a public sector.

f. To emphasis the importance of financial management in

public sector.

g. To see whether all expenditure are truly authorize and

accounted for.

1.5 SCOPE AND LIMITATION OF THE STUDY

The research work carpenters mainly on national centre

for agricultural mechanization (NCAM). While emphasis is

10
centre an effect of financial management in a public sector

and this excluding private sector.

The scope of this topic covers the role of financial

management revenue and expenditure, payroll system in

public sector, project evaluation control and implementation

in public project. However it is impossible to cover all aspects

of financial management, the centre in this research work due

to the need for conciseness and clarity, also the none

disclosure of some information which was tagged confidential.

1.6 RESEARCH METHODOLOGY

To ensure relatively high degree of accuracy of data of

this research shall be obtained from two sources, namely the

primary and secondary sources.

The primary data will be obtained through the collection

of existing numerical data of considerable number of years

with respect to the operation statement. Further information

will be collected with the use of the same primary sources by

11
interview using the employees of national centre of agriculture

mechanization (NCAM).

Secondary data will be obtained from the various

Journals, Magazines and textbooks aspect of his topic for the

purpose of analysis. Both the qualitative method of qualitative

techniques will be applied: descriptive method of qualitative

analysis will be used to arriving to deduction.

1.7 PLAN OF THE STUDY

This project consists of five chapters. Chapter one is the

introduction, Background of the study, statement of the

problems, research question, objectives of the study, scope

and limitation of the study, research methodology, plan of the

study and definition of term.

Chapter two is the introduction, definition of financial

management, financial management within the strategic

management, budgeting and budgetary control in public

sector, sources and uses of funds in public sector.

12
 Chapter three is the introduction, historical background

of national centre for agricultural mechanization, research

design, statement of research question, source of data

collection, method of collection of data, population and sample

size and data analysis techniques.

Chapter four, is the introduction, data presentation,

presentation and analysis of state from questionnaire, and

discussion of findings.

Chapter five is the introduction, conclusion and

recommendation, summaries of findings, conclusions,

recommendations and bibliography.

1.8 DEFINITIONS OF TERMS

The theme that would be in the wise being worked on is

termed as component of and also relevant to financial

management.

FINANCE: Finance is an applied field of management. It can

be defined as the management of the flows of money through

an organization and claims against the money.

13
MANAGEMENT: Has been regarded as being concerned with

carrying out of operation designated to a accomplish aims and

affecting the policies. It is the allocation scarce resources to

achieve management objectives.

ACCOUNTING: This can be defined as a systematic way of

regarding, classifying, summarizing and communicating

economic financial data of an organization for the purpose of

decision making.

FINANCIAL MANAGEMENT: This can be defined as the

identification of viable project and the allocation of the

companies or organization “a wealth, Oye Akinsure (2002).

STRATEGY: It can be defined as the identification and

specialization of resources to achieve an object.

TACTICS: This can be defined as the identification and

specialization of resources to achieve an objective.

ECONOMIC ENVIRONMENT: This is the environment in

which an organization operates the finance. Controller need a

good knowledge of it to plan for the import and effect of

14
inflation and taxation on the economy as well as on this

industry organization belongs.

PUBLIC SECTOR: This is a forum through which government

activities or businesses are carried out for the benefit of the

people they governed. However, government is carried out for

the benefit of the people they governed. However, government

activities are non-profit making ventures excites through

government ministries parastatals and agencies.

BUDGETING: This is formal process of moiling, allocating,

managing resources for the executed of organization projects

also defines management objectives which including

controlling, coordination, motivation through money value,

members within an organization, Daniel and Enrich (1997).

CAPITAL BUDGETING: This can be called project evaluation

decision; it can be defined as the process of planning for

growth and survival of an organization by committing its fund

into long-term beneficial project.

15
INTERNAL CONTROL SYSTEM: This is being defined a while

system, of control, financial and otherwise established by the

management of an enterprises in order to carry on the

business captivities in order and efficient manner, ensure

adherence to management policy.

To safeguard the asset of the business and to ensure as

far as possible the completeness and validity.

16
 CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

This chapter will be review of past literatures that are

relevant to this study. There will be an definition of financial

management process in public sector. Budgeting and

budgetary price of public sector, international control system

of government parastatals e.g. national center for agricultural

mechanization (NCAM).

2.1 DEFINITION OF FINANCIAL MANAGEMENT

The word financial management was derived from these

two major terms, finance and management.

R.A Olowo (1997), defined financial management as the

management manning and control of financial resources of

business. He further explained that financial management

encompasses rigorous analysis and his concerned with

strategic of financial decision making with an organization.

17
 Obsolete in his own opinion, Barry, E. Cushing (1998)

defines financial management and uses of financial resources

with an organization. he also said that financial management

encompasses both role of treasure ship or administration of

the finance and controllership or administration of accounting

function.

R.B (Brockington (1982) states that financial

management is an organization function which is concerned

with effective and efficient raising and use of fund which must

be operate within a frame work of clearly understood

objectives and on the basis of logical concepts form the above

definition, we can derive that financial management.

i. Is a process controlling the resources of an organization so

as to achieve maximally the set objectives of the organization?

ii. Is a decision making process that involves?

a. Investment decision

b. Financing decision

c. Divided decision

18
iii. Is a process to achieve the following objectives?

a. Maximization of profit/benefit

b. Maximization of utilities

c. Maximization of employees or citizen’s benefit

d. Maximization of turnover.

iv. Is a process whose success depends on the following

stakeholders?

a. The shareholder or the owner of the organization

b. Other provide of capital

c. The government

d. the community in which the organization operates.

2.2 FINANCIAL MANAGEMENT WITHIN THE STRATEGIC

MANAGEMENT

Strategies management as a process by which policies

are formulated and started is are selected to achieve the goods

amend objectives of an organization.

In this process, attention must be given to the

performance capacity of the rogation and the opportunities a

19
challenge of environment strategic management offers a

framework for adapting to the vagaries of an unpredicted

environment and uncertain future.

The concept of strategic management has so far been

applied mainly in the corporate setting. Thus Oye Akinsure

(2002) defined strategic management as the identifiable of

variable project and the allocation of resources in order to

ensure enhancement of the organization’s wealth i.e financing

of project positive net present value (NPV). The strategic

financial management demands finance the management or

more importantly the finance controller of an organization to

have a depth consciousness of the following

Financial environment

Economic environment

Business environment

A. FINANCIAL ENVIRONMENT: This is legal environment

under which the finance controller operates. It involves

20
appreciating the contribution of various organization that

develop the economy e.g. World Bank, IMF, AOB etc.

B. ECONOMY ENVIRONMENT: This involves the finance

controller appreciating the importance of various economic

factors which determinant to various government or corporate

policy which have direct seven effect on government for

corporate financial management.

C. BUSINESS ENVIRONMENT: This proper knowledge of

finance is liked with other factors that have effect on business

operates, e.g. inflation, taxation EST.

Strategic management is both a conceptual framework for

orchestrating the basic decision making process of an

organization and collection of analytical tools designed

facilities the methodologies to the various stages if the decision

process is a key responsibility of the strategic managers. The

concepts do strategic planning and planning is that

component of the management system concerned with:

1. Clarifying resources

21
2. Determine policies for the acquisition of a distribution of

resources.

3. Establishing a basis translating policies and translating

policy and decision to ensure that all transaction is capture

properly recorded.

It also involves establishing an internal control system to

ensure that all financial transacting arenas transformed into a

task to be handle by applicable units or section it also spells

out step by step process of performing a job by designing word

schedules and who flow for individual officers.

The role of accounting in public sector organization is

expanding however, as a consequence of the attention in

recent years to the value of money concept which emphasize

on economy efficiency and effectiveness is one operation

government revenue and expenditure activities. These are

growing recognition that in addition to the function of finance

record book keeping external reporting accounting can and

should serve as a tool for management planning decision

22
makes and control broken down into the following units’

financial accounting management accounting cost accounting

and budgeting accounting.

2.3 BUDGETING AND BUDGETARY CONTROL IN PUBLIC

SECTOR

Hend (1985) In his paper titles “Budgeting in business”

he writes that budgeting and budgetary control involves the

setting of target and monitoring of actual performance is seen

as the control aspect.

Daniel and weinrich (1987) defined budgeting as a

management objective which includes controlling coordinating

and monitoring through money value within an organization.

In his own opinion Adeyemo, O.A (1989) description

budgeting as a formal process of mobilizing allocation and

managing resources for execution of programmers and

projects budgeting according to him is there fore an important

instrument for plan implementation.

23
 C.S Ola (1987) in his book said budgeting is an off shoot

of accounting and aspect if financial record keeping, he

describe a budget as a futuristic statement of resources and

uses of resources. In a govern year through in defined terms.

However, to be very effective the following requirement

has to be met:

1. The time coverage to be permit more realistic forecasting

that is possible in forming the long run development.

2. The budget should to a plan since ideally the budget should

reflect a phase of implementation of his plane.

3. The budget should identify cost in their various component

and source of fund of meeting such cost.

4. The budget should identify the need of the year and select

priorities should be liked with the immediate future for sight.

5. It Should provide for it own implementation by having build

in mechanism it indicate what to be done provide check point

for feed back allowing or flexibility in the light of previous

experience.

24
6. Adeniyi (1999) in his own view expresses budgetary control

as the use of budget to measure performance and control

behaviour he said objectives of budgetary control are:

a. Top plan future operation to balance objective resource and

environment.

b. To compare actual performance with budget target and

locate trouble spots for management actions.

c. To motivate management to achieve company objective.

d. To communicate target and plans to the organization.

e. To influence behaviours of managers.

f. O.A Adeyemo (1989) further explained target to be a

comprehensive description of the fiscal policies to a

government and the financial plan corresponding to them

budge indicate the intension of government in the areas of

monitoring trade, pricing incommodes and sectional polities as

well a structure of incentives.

25
2.4 SOURCES AND USES OF FUNDS IN PUBLIC SECTOR

Fund could be defined as the process of budgeting

appraisal that indicates a function of the government between

the legislative and executives arm of government this has lead

to development in accounting for profit seeking entitles. Most

non profit organization such as federal and state government

and the parastatals of the federal government derives their

fund or different sources. For examples the federal government

derives their fund from different source for sample the federal

government derived her revenue from:

- Direct and indirect taxes

- License and fees

- Royalties and mining right earning and sales.

- Rent of government properties and grant from foreign

countries.

In case state of state, local government and parastatals

their sources of finance is mainly federal and internally

generated revenue.

26
 Finance is a process of providing fund for economic

activities are business the procedure, consumer often do have

available funds necessary to complete their transaction yet

funds are required as means of payment the catalyst that

made exchange possible.

The fund must be available in the proper amount needed

of this reason organization needs fund in addition to what they

have and fund may be use to provide working capital, working

expand inventories or replace or expand plant and machinery.

These uses could also include buying primary and share and

evidence of indebtedness.

27
 CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION

In this chapter, concentration is based on the method

and procedure use in gathering data for this research. It

explains the methods and sources of data collection,

instrument as a sampling techniques use for collection of data

and the instrument of data analysis.

3.1 HISTORICAL BACKGROUND OF NATIONAL CENTER

FOR AGRICULTURAL MECHANIZATION

National center for agriculture mechanization (NCAM) is

one of the research center or parastatals under his

supervision of the federal ministry of agriculture and rural

development.

NCAM was established be decree no 35 of 1990 and was

given a semi autonomous status as a parastatals within the

federal ministry of agriculture and the rural development with

its own management board and an execute director as the

28
board is appointed by the president while the executed is also

appointed by the presidency but at nomination of the

chairman of the board and approval of the minister of

agriculture and rural development, the senior staff is

appointed by the president while the executed is also

appointed by the presidency but at nomination of the

chairman of the board and approval of the minister of

agriculture and rural development, the senior staff cadre is

appointed by the executive director.

The centre is located of the following department.

a. Directorate

b. Human resources development department

c. Financial and account department

d. Land and water department

e. Engineering and scientific service department

f. Agro industrial development and extension department.

29
3.2 RESEARCH DESIGN

This research is specifically carried out to establish the

effect of financial management in the public sector and to see

whether or not there is a need for improvement in its

implementation, the use of questionnaire and personnel

interviews will be adopted or the purpose obtain the relevant

information for the study specific reference shall be made to

national centre for agriculture mechanization as the case.

3.3 STATEMENT OF RESEARCH QUESTION

Bearing in mind that research is aimed at testing the

efficiency and effectively of testing the efficient in effectiveness

of financial management in public sector with particular

reference to national center for agriculture mechanization; the

following questions were asked and now restarted:

a. How was does the prudent financial management of scare

public effect the success of government establishment

30
b. How can financial management skill be utilized as an

efficient cost reduction and goal actualization tool in

government establishment?

3.4 SOURCES OF DATA COLLECTION

Data collection for the purpose of his study will be from

two sources the primary and secondary sources:

i. Primary data: collection for existing numerical data of years

chosen collection of information through the personal

interview and questionnaire administration on the employees

of financial and account and audit departments on the

national centre for agriculture mechanization.

ii. Secondary data: Collection of information from various

publication, Journals, Magazines and textbooks on the subject

matter.

3.5 METHODS OF COLLECTION DATA

The data required for this study as those that fealty to

the employees’ bio-social data financial management and its

31
effect on the management and control of a public sector

organization e.g. NCAM.

This will therefore be applied and collected using a

stratified sample of the finance and account and audit

department of national centre for agriculture mechanization

(NCAM)

3.6 POPULATION AND SAMPLE SIZE

The total force the finance and account department on

NCAM is about 30 employees while that of audit department is

about ten (10) employees. The two departments are about forty

(46) employees. About twenty (20) employees using the

stratified sampling techniques in distributing techniques; the

specification of this sampling is as follows.

Junior staff (Hatiss 01-05) = 5

Senior Staff (Hatiss 06 – 12) = 5

Management staff (Hatiss 13 – 15) = 3

32
3.7 DATA ANALYSIS TECHNIQUES

The employee’s response to the questionnaire will be

analyzed using simple percentage of the total respondents.

33
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0 INTRODUCTION

The analysis of data use in this research is both

descriptive and statically yes return form the questionnaire

survey was considered enough for one to survey was

considered enough for me to safely make a general statement

about the sample.

Twenty questionnaires were sent out to finance and

account and audit department of national centre for

agricultural mechanization (NCAM).

However out of this total number of questionnaire

distributed fifteen (15) questionnaire were satisfactory

completed and return while the other (5) were not returned on

analysis it discovered that more of the senior and management

cadres. They were busy however twenty are respond restate of

75% the validity and reliability test were greatly ensured.

34
 Data collections were analyzed and the results were used

to answer the research questions and test the relevant

hypothesis at the appropriate level of significance.

4.1 DATA PRESENTATION

Table 1: Distribution of respond of rank

Categories of staff Number Percentage

Junior 05 25%

Senior staff 12 60%

Management 03 15%

Total 20 100%

Source: Research survey 2017

This table reveals that 75% of respondent belongs to the

supervisory and management rank of employees. These are

the real implement of strategic financial management in

national centre for agricultural mechanization (NCAM)

35
Table 2: Distribution of respond by sex

Categories of Male Female Total

staff

Junior 05 02 25%

Senior staff 12 02 60%

Management 03 Nu 15%

Total 20 04 100%

Source: Research survey 2017

This table shows that the organization is gender sensitive

with the inclusion of both male and female in its employment

and so it is applicable the sample size.

Table 3: Returns of questions

Respondent Number Percentage

Received 15 75%

Not receive 05 25%

Total 20 100%

Source: survey 2017

36
 This table shows that the presentation and analysis of

state from questionnaire.

Table 4: response to whether the employees actually understand what is meant by

financially management.

Category staff Yes No Total

Junior staff 02 02 4%

Senior staff 01 - 10%

Total 13 02 15%

Percentage 87% 13 100%

Source: Research survey 2017

This shows that 87% of the respondent actually

understands the objective of the research study.

37
Table 5: respondents to whether financial management

strategies and decision is well implemented and well managed

in national centre for agriculture mechanization (NCAM)?

Category of Yes Percentage No Percentage Total Percentage

staff

Junior staff 02 13% 02 13.05% 04 27%

Senior staff 08 53% 02 13.05% 10 66%

Management 01 7% - - 01 7%

Total 11 73% 27 27 15 100%

Source: Research survey 2017

The above at able shows that the majority employees

agreed that preparation and implementation of financial

management strategic are well executed, the contrary opinion

expressed by the non-involvement in its implementation.

38
Table 6: Response to whether strategic financial management

tools like due process, cost benefit analysis, e.g have impact

implementation of capital project?

Category of Ye Percentag N Percentag Tota Percentag

staff s e o e l e

Junior staff 3 20% 1 7% 04 27%

Senior staff 10 66% - - 10 66%

Managemen 1 7% - - 01 7%

Total 14 93% - 7% 5 100%

Source: Research survey 2017

The table above shows that 93% of respondent

appreciated the impact and contribution of financial

management and management policies in project

implementation. The 7% minority response and cost benefit

analysis

39
Table 7: Responses to whether financial management has

effect on the organization accounting system?

Category of Yes Percentage No Percentage Total Percentage

staff

Junior staff 02 13% 02 13% 04 27%

Senior staff 08 53% 02 14% 10 66%

Management 11 73% 4 27% 15 100%

Total 11 73% 4 275 15 100%

Source: Research survey 2017

The above table shows that 73% of the employees agreed

that organization decision making process majority is

influenced by the fiat facial management has impact on the

accounting system and inter control of the organization. While

the majority of 27% believed that its effect is minimal because

if management attitude.

40
Table 8: Response to whether financial management strategies

have effect on the organization decision making process?

Category of Yes Percentage No Percentage Total percentage

staff

Junior staff 2 13% 2 13% 04 27%

Senior staff 9 60% 1 7% 10 66%

Management 1 75 - - 07 7%

Total 12 80% 3 205 15 100%

Source: Research survey 2017

The above table shows that majority of the employee

agreed that the organization decision making process is

influence by financial management strategies in use as that

time.

41
4.2 PRESENTATION AND ANALYSIS OF STATE FROM

QUESTIONNAIRE.

This chapter is designed to analysis all the data collected

in the course of the research so as to make it meaningful and

digestible to the reader.

The interviews conducted among the management of

national centre for agricultural mechanization (NCAM).

Discussed and opinion are reached from the basis upon which

conclusion and recommendation are draw. Materials collected

were analysis based on the fact information obtained.

4.3 DISCUSSION OF FINDINGS

From the interpretation and analysis of various views

and opinions examinations examine in this study, it could

however, be summarized that the financial management by

channeling funds from savings to investment which are of

great benefit for both public and private individuals. It has

also reduce considerably, the problem of providing budget

deficit in the Nigerian economy.

42
 The developing countries (Nigeria inclusive) have realized

that the financial management is the only means through

which they can overcome their economic stagnation (i.e.

unstable economy) financial management has conferred

wealth, power and influence on developed countries. It is

known that from all cases of successful economic growth and

development, there has always been a conducive market

environment especially in the developed countries. Indeed,

today, a country is not much respected in the international

scene unless it has a stable economy and political activities

therefore; the financial management has no irresistible appeal

to the organization.

43
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF FINDINGS

From the data and information received, gathered and

analyzed in this work, one thing stands out understandable

that financial management tools and strategies has a great

impact on the effective and efficient management and control

of public organization.

It is evident that when an organization underestimates

the importance of financial management, such attitude, and

such attitude may result in poor management control mean

efficient budget and project monitoring and control, non-

achievement of target or lack of good congruence among

department within an organization e.g.

However, the effectiveness of financial management team

and their attitude towards implementation of strategies,

planning and control. As revealed in this chapter, if or the

organization to be successful in its operations, it must be able

44
attract and maintain qualified manpower. Once employed

workers must be motivated to exhibited their time and energy

in achieving the predetermined goals using a strategic means

of ensuring excellent adoption and implementation of financial

management strategies and tactics start and control, fund

management and control, sourcing and source, etc. all theses

demands involving all levels of employees, i.e. junior staff,

senior staff and management strategies is the brain box of any

organization should not be considered as overstatement

because it facilitates successful operations of all organization

units section and department and coordinate them to achieve

a corporate goal.

5.2 CONCLUSION

As far as their researcher is concerned, it can be

concluded that financial management strategies and tactics

has a great impact or effect on the smooth benefits such

merits and potentials coordinating and controlling has been

derivable benefited form due process control, value for money

45
audit and control budgeting and budgetary and process and

control corporation planning and settings of goals process and

control, e.g.

Organization where measures are taken to ensure prudent

financial management of all management of all benefits

mentioned above at generally and corporately successfully in

its operations of important is the fact in national centre for

agricultural mechanization (NCAM).

Efficient and effective management policies are being

employed in consonance with the federal government reform

policies and have to a large extent reflect on the management

and administration of national centre for agricultural

mechanization (NCAM) through various committees

established and their productivities on management and

finance of the centre.

Finally, the need for effective and efficient financial

management process in an agricultural mechanization (NCAM)

46
and in any other organization should not be understood in

view of the benefit accruable in this implementation.

5.3 RECOMMENDATIONS

Going by the research carried out so fare, I recommend

that the organization should try as much as possible to ensure

successfully implementation of financial management

strategies in current terms in order to achieve organization

goals and succeed in the performance of its operations.

Care must also be taken by the organization so as to

achieve the desired aims and objectives of financial

management strategies and control. We therefore put forward

the following recommendation on how organization can have a

better organization can have a better effective and efficient of

financial management.

1. Periodic review monitoring of financial management tactics:

the establishment should always fry to review their current

financial management policies and check whether it is

agreement with current professional practice and government

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reform policy and also to ensure that its implementation is

achieving the desire result.

2. Setting clear objectives and standards: the approach the

management towards actualizing strategies should be clearly

spelt in order to ensure a meaningful workflow incomplete or

under objectives will not doubt be rendered financial

management strategies useless.

3. Minimizing excess bureaucratic: bureaucracy is associated

with the use of established procedures of doing things one of

its drawbacks is its tendency to stiff initiative and innovation.

It causes unnecessary delays and less to wasting of time

reducing bureaucratic controls will encourage management

matters and ensure those corrective actions taken where and

when the need arises. This will save time and resources in the

area of job performance and action taken.

4. Motivation: workers should be motivated to ensure that

financial management strategies appoint are successfully

implemented by encouraging them to participating in the

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judicious implementation of strategies and tactics put in place

to achieve targeted corporate goals.

5. Training of Staff: Management should plan or organize

refresher training and or workshop furls all individual staff.

National centre for agricultural mechanization has not been

doing much of these but are encourage to plan for it in the

budget. Because training affords the staff that opportunity to

improve on their performance.

6. Disciplines of erring officer: the management of national

centre for agricultural mechanization (NCAM) should make

effort to install work disciplines and diligence on duty as being

through propagation by the federal government through

service.

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 REFERENCES

Adebiyi, E.S. (1991) Budget and Budgetary control in Ondo

state civil service, Akure, 1st Edition, Fagbamigba
publisher.
Daniel and Weinrich (1987): Management, New York 1 st
Edition, Morgraw Hill book.
Drucker, P.L (1994): The practice and Management, New York
1st Edition.
Ola, C.S. (1987): Management Accounting, Theory and
Application Ibadan, 2nd Edition Heineman
Educational Book Nig plc.
Ishola, K.A. (1998): Financial Management Vol 2 Nigeria
Indamac Publication Limited.
Jane, C.V.H. (1998): Financial Management and policy
practice Hall Inc (11th Edition).
Lucy, T. (1998): Management Accounting 2nd Edition Britain
Dp publication Limited
Tawksu Pitman (1992): Financial and financial market:
London, Macmillian Publisher Limited.

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