Saturday 4 February 2017

FINAL YEAR PROJECTS: IMPACT OF TREASURY SINGLE ACCOUNT (TSA) IMPLEMENTA...

FINAL YEAR PROJECTS: IMPACT OF TREASURY SINGLE ACCOUNT (TSA) IMPLEMENTA...:                                                                   CHAPTER ONE INTRODUCTION 1.1 Background of the study               ...

Monday 23 January 2017

THE IMPACT OF LIQUIDITY MANAGEMENT ON THE PROFITABILITY OF A MANUFACTURING COMPANY (A CASE STUDY OF NIGER MILL PLC, CALABAR)

CHAPTER ONE
1.1 Background of the study
Liquidity management is a concept that is receiving serious attention all over the world especially with the current financial situations and the state of the world economy. The concern of business owners and managers all over the world is to devise a strategy of managing their day to day operations in order to meet their obligations as they fall due and increase profitability and shareholder’s wealth. Liquidity management, in most cases, are considered from the perspective of working capital management as most of the indices used for measuring corporate liquidity are a function of the components of  working capital. The importance of liquidity management as it affects corporate profitability in today’s business cannot be over emphasis.
             The notion of liquidity in the economic relates to the ability of an economic agent to exchange his or her existing wealth for goods and services or for other assets. In this definition, two issues should be noted. First, liquidity can be understood in terms of owes (as opposed to stocks), in other words, it is a own concept. In this framework, liquidity refers to the ability of an institution or organization to meet demands for funds. Liquidity management means ensuring that the institution maintains sufficient cash and liquid assets to satisfy client demand for goods and services, and to pay the institution’s expenses. Liquidity management involves a daily analysis and detailed estimation of the size and timing of cash inflows and outflows over the coming days and weeks to minimize the risk that savers will be unable to access their deposits in the moments they demand them. Liquidity and its management determines to a great extent the growth and profitability of a firm. This is  because  either  inadequate  liquidity  or  excess  liquidity  may  be  injurious  to  the  smooth  operations  of  the organization.  This  seeming  controversy  has  attracted  a  lot  of  interest  in  the  subject  of  liquidity  management. The primary aim of this research work is to investigate the relationship between liquidity and profitability.
             Manufacturing sector plays a crucial role in modern economy and has many dynamic benefits for economic transformation. In a typical economy, the manufacturing sector is a leading sector in many respects. It is an avenue for increasing productivity related to import replacement and export expansion, creating foreign exchange earning capacity; and raising employment and per capital income which causes unique consumption patterns. Furthermore, it creates investment capital at a faster rate than any other sector of the economy while promoting wider and more effective linkages among different sectors. In terms of contribution to the Gross Domestic product, the manufacturing sector is dominant but it has been overtaken by the services sector in a number of Organizations for Economic Co-operation and Development (OECD) Countries.
                  Before independence, agricultural products dominated Nigeria’s economy and accounted for the major share of its foreign exchange earnings. Initially, inadequate capital investment permitted only modest expansion of manufacturing activities. Early efforts in the manufacturing sector were oriented towards the adoption of an import substitution strategy in which light industry and assembly related manufacturing ventures were embarked upon by the formal trading companies. Up to about 1970, the prime mover in manufacturing activities was the private sector which established some agro-based light manufacturing units such as vegetable oil extraction plants, turneries tobacco processing, textiles, beverages and petroleum products. The strategy of light and assemblage manufacturing shifted somewhat to heavy Industries from the period of the third National Development plan (1975-1980) when government intervened to establish care industrial plants to provide basic imports for the downstream industries. The import dependent industrialization strategy virtually came to a halt in the Late 1970s and early 1980s when the liberal impart policy expanded the imports of finished goods to the detriment of domestic production. In this regard, industrialization constitutes a veritable channel of attaining the lofty and desirable conception and goals of improved quality of life for the populace.
           However, liquidity has an important relationship with profitability in the manufacturing industry.  If companies have enough liquid resources, it may be able to get benefit of cash discount on purchases and consequently that will result in increasing profits.  If  they  cannot  pay  the  creditors  for  goods  in  the  given  period, they have to pay interest on the amount of purchases. Thus, shortage of liquid resources will  result  in  low  of  cash  discount  and  payment  of  interest.  Both the losses will certainly decrease over profits.  Secondly,  companies  may  keep  the  stock  at  desired  manners  and  that  will benefit  them  in  circulation  of  business  activities.  Contrary  to  this,  if  they  are  not  able  to  keep sufficient  stock  due  to  shortage  of  liquid  resources,  then  the  production  cycle  may  not continued and that will result in heavy losses. Liquid resources of a business concern for all over to expand huge business activities more, and less in financial.
             Again, the management of cash resource is also an important concept in liquidity management.  In this context the objectives of a firm can be unified as bringing about consistency between maximum possible profitability and liquidity of a firm. Cash  management  may  be  defined  as  the  ability  of  a management in recognizing the problems related with cash which may come across in future course of action, finding appropriate solution to curb such problems if they arise, and finally delegating  these  solutions  to  the  competent  authority  for  carrying  them  out  The  choice between liquidity and profitability creates a state of confusion. It is cash management that can provide solution to this dilemma. Cash management may be regarded as an art that assists in establishing equilibrium between liquidity and profitability to ensure undisturbed functioning of a firm towards attaining its business objectives.   Profitability is a measure of the amount by which a company's revenues exceeds its relevant expenses. Profitability ratios are used to evaluate the management's ability to create earnings from revenue-generating bases within the organization.
1.2 Statement of the problem

            Business financing, especially at the wake of the 2008 financial crisis, which has become a major source of concern for business managers as bank loans are becoming too expensive to maintain as a result of tightening of the local financial market and the reluctance of the public to invest in the share of companies sequel to the crash of the capital market. These situations compel business managers to device various strategies of managing internally generated revenue to enhance their chances of making profit and meeting existing shareholders expectations.

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IMPACT OF TREASURY SINGLE ACCOUNT (TSA) IMPLEMENTATION ON GOVERNMENT FISCAL OPERATION IN NIGERIA (A STUDY OF MINISTRY OF FINANCE CROSS RIVER AND AKWA IBOM STATES)

                                                                  CHAPTER ONE
INTRODUCTION
1.1 Background of the study
               The introduction of Treasury Single Account is as a result of numerous corrupt practices that exist in the Country’s public accounting system. This was as result of lack of transparency and accountability in the management of public funds. Treasury Single Account (TSA) is one of the financial policies implemented by the federal government of Nigeria to consolidate all the revenue from all the ministries, departments, and agencies (MDAs) in the country by way of deposit into Commercial banks traceable into a single account at the Central Bank of the country. They are critical for ensuring that all tax and non-tax revenues are collected and payments are made correctly in a timely manner; and government cash balances are optimally managed to reduce borrowing costs (or to maximize returns on surplus cash). This is achieved by establishing a consolidated government bank accounts via a treasury single account (TSA). Treasury single account (TSA) is a prerequisite for modern cash management and is an effective tool for the ministry of finance/treasury to establish oversight and centralized control over government’s cash resources (Adeyemo and Salami, (2008). It provides a number of other benefits and thereby enhances the overall effectiveness of a public financial management (PFM) system.
            Treasury single account (TSA) also facilitates debt management, and monetary policy coordination as well as reconciliation of banking data, which in turn improves the quality of fiscal information (Aluko, 2008). Treasury Single Account (TSA) is one of the proven practices in improving the payment and revenue collection systems, and carrying out consistent control of public expenditures by centralizing the free balances of government bank accounts. The TSA infrastructure is usually implemented as a part of the Financial Management Information System (FMIS) solutions. In other words, treasury single account (TSA) is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at the end of each day.
                 However, fiscal operations are actions taken by the government to implement budgetary policies, such as revenue and expenditure measures, as well as issuance of public debt instruments and public debt management. Fiscal operations include accounting and financial reporting, cash management, investments, accounts payable, payroll, fixed assets, internal control, and debt service management. This includes maintaining the general ledger and all subsidiary ledgers, preparation of required reconciliations, ensuring compliance with the annual budget ordinance, reporting to State and Federal agencies, updating the Capital Improvements Plan and preparation of the annual operating budget.
               The Office of Fiscal Service is to develop policy and operate the financial infrastructure of the federal government, including payments, collections, cash management, financing, central accounting, and delinquent debt collection. They provides policy oversight of the bureaus under it and develops policy on payments, collections, debt financing operations, electronic commerce, government wide accounting, government investment fund management, and other issues. The office also performs two critical functions for the department: it manages the daily cash position of the government and it produces the cash and debt forecasts used to determine the size and timing of the government's financing operations. Fiscal Operations and Policy, oversees the development and implementation of policies relating to the government's cash management operations, investment and administration of trust funds, payments, collections, and debt collections.
       Therefore, treasury single account (TSA) is an essential tool for consolidating and managing governments’ cash resources, thus minimizing borrowing costs. Considering Nigeria as a country with fragmented government banking arrangements, the establishment of a TSA should receive priority in the public financial management reform agenda as well as meeting the preconditions and desirable sequencing for its successful implementation. From the foregoing, it is obvious that the primary objective of a TSA is to ensure effective aggregate control over government cash balances. It avoids borrowing and paying additional interest charges to finance the expenditures of some agencies while other agencies keep idle balances in their bank accounts. There were situations where some MDA’s manage their finances like independent empire and remit limited revenue to government treasuries. Under a properly run TSA, this is not possible as agencies of government are meant to spend in line with duly approved budget provisions. The maintenance of a single account for government will enable the Ministry of Finance monitor fund flow as no agency of government is allowed to maintain any operational bank account outside the oversight of the ministry of finance. The full implementation of this programme therefore is a critical step towards eradicating corruption and other financial irregularities ravaging the country. Therefore by introducing economy and efficiency in the management of scarce public resources, the Government is in a better position to realize its policy goals
1.2 Statement of the problem

               A country with fragmented government banking arrangements that lack effective control over its resources can pay for its institutional deficiencies in multiple ways. First, idle cash balances in bank accounts often fail to earn returned on capital. Secondly, the government, being unaware of these resources, incurs unnecessary transactions and borrowing costs in raising funds to cover a perceived cash shortage. Thirdly, delay in executing government budgets and projects as a result of lack of funds in Government account. The problem of financial leakages, increase in corruption, lack of transparency and accountability are also major concerned. The researcher, therefore want to examine how treasury single account (TSA) implementation on government fiscal operation can significantly eliminate or reduces the above mentioned problems.

THE COMPLETE PROJECT IS CHAPTER 1-5 #5000 ONLY
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BANK: FIRST BANK
ACCOUNT NAME:
EGBE JOHN EDOGI
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GTBANK
ACCOUNT NAME:
EGBE JOHN EDOGI
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Please after payment send the teller number and your name the way it appear in the teller to any of the following phone number:
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