Abstract
...
BACKGROUND TO THE STUDY
Organization both profit and non profit oriented need funds (financial assets) for the numerous operations. That is why all organization irrespective of the legal forms, device a means their day-to-day operations. The fund sourced are not normally kept idle by the organization rather they are either being invested to generate future profit or consumed immediately to achieve the origination day to day goals hence the word “source and application of fund in accommodating profession.
Source and application of fund simply means the various venue available to an organization thought which it source its financial assets and all the outlet through which the sourced financial assets leaves the coffers of the organization.
In recent past, government parastatals which institute of management and Technology is one depended revenue grants in forms of subvention for few existence and growth, in this ear of privatization, the government has decided to shad off its financial responsibilities in almost government parastatals so as to concentrate in its constitutional role of providing enabling environment for economic activities to thrives. This scenario has left many government parastatla in total the immediate.
For instance, the immediate lost years in the which institute of IMT has been a hectic one as financial starvation method to it by the government has left the which identifying problems.
i. Constant face off between management and trade union in respect regular payment of salaries.
ii. Lack of promotion to staff that are due to be promoted.
iii. Inability to maintain their freed assets such as;
a. Building
b. Motor vehicle
c. Furniture and fittings
iv. Inability to settle their other numerous over heard costs.
v. Absence of non structures to replace the dilapated once etc.
The colossal nature of these problems enumerated above made the IMT various avenue of source of the following;
i. Creation of non –existing charges such as accreditation fees, development fees and upward review of other existing charges.
ii. Carrying out aggressive campaign to increase the number of student in take by reaching out to all seventh ten local government in the state and beyond.
iii. Scaling down the work force.
iv. Denial of promotion to staff those are due to be promoted.
Those members yielded a positive result as a report is issued by admission department shows that nearly over 20,000 student were admitted in this academic year and the management can now pay their monthly salary bills of over 39million naira and other overhead cost. But the sustainability of the current trend is filling lommy as the funds sourced from these measures would be applied in solving short term problem which is manly revenue in nature.
STATEMENT OF PROBLEMS
Most organization both profit and non profit oriented has problem knowing how to raise fund for their operation and most often fail utilization the available funds. The following problem below are found as obesities inherent in sources and application of funds in Institute Of Management And Technology, Enugu.
1. It was difficult to known the extent steady source of fund had made (IMT) scale down its court force.
2. IMT funds it difficult to erect new structures show as class room student intake.
3. It was difficult to known whether IMT applied the fund it sources in most appropriate manner.
4. The impact of government discontinued finding to IMT was unknown objectives.
OBJECTIVES OF STUDY
This research topic sources and application of funds in government parastatal was set toward establishing the following objectives.
i. To ascertain the extent the lack of steady source of fund had made IMT scale down its work force.
ii. To find out how difficult it was to IMT to put up new class room blocks in retaliation to number of student in take.
iii. To know whatever IMT applies the fund its sourced in most appropriate manger.
iv. To determine the impact of government discontinued finding to Institute Of Management And Technology, Enugu financial stability.
v. To ascertain why staffers not promoted when due.
vi. To keep the extent IMT management their fixed asset.
SCOPE OF THE STUDY
This research work is limited to the source of fund available to IMT Enugu and how such funds are expended the study will examine reports covering from (2000 to 20050.
The major constraints of the project are money, time and materials. Each of these factor in addition. Each of these factor in addition to secrecy exhibiting by some staff of the institution.RESEARCH QUESTIONS
To guide the study six research questions were formulated as follows:
1. What extent does the lack of steady source of funds made IMT scale down its work force?
2. To what extent does IMT used its sourced fund to erect new class room blocks in relatives to the number of the student in take?
3. Does IMT source its fund internally or externally?
4. To what extent does IMT apply the fund of source in most appropriate manner.
5. Does the fund sources goes solved some management problem like erecting of class room blocks settling their other numerous over heard cost, equipping student, library maintaining their fixed asset such as building motor vehicles future are fitting.SIGNIFICANCE OF THE STUDY
Since fund is the “life wire” of government parastatal of which if not properly managed will make the institute of management of collapse, there is no doubt that the significance or important of its study cannot be over emphasized.
The study is significance in the sense that it will bring to line light the effective financial control measures which the institution should adopt in order to curb the ill befalling it and thereby achieving great success.