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, “Accounting information
system in a 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 up of 3’505 route kilometers and 4332 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” to Nigerian Railway Corporation in 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
carrying out its function of effecting “carriage of 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, commerce,
industry and general public”.
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?
2. Have the accounting officers in the corporation has the needed professional skills to cope with demands of the job?
3. Is there any serious effort made by the corporation to boost operation?
4. Do the accounting officers perform their duties without the interference of the management?
5. 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:-
1.
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.
2. Whether the accounting information is actually one of the effective management tools in the railway corporation.
3.
Whether the accountants in the corporation adequately perform their
duties in conformity with the statement of accounting standards (SAS)
4. 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.
1. Dose the account department of railway corporation
Enugu contribute to the achievement of the overall goals of the
corporation?
2. Is the accounting information actually one of the effective management tools in the railway corporation Enugu?
3. Dose the accountants adequately perform their duties in conformity with the statement of accounting standards?
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4. 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:
1. 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.
2.
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.
3.
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 HE 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’s produce, luggage, parcel and livestock.