ABSTRACT
This research studied
the contribution of inspectorate department as an effective measure to Union
Bank of Nigeria Plc.
To guide the study
research questions were formulated, using questionnaires as an instrument. The
data collected were analyzed using sample percentages, some of the findings
among others are:
1)
Inspectorate department plays a significant role in effective utilization of
organization find by management.
2)
Internal audit (inspectorate) department enhances effective management control
in banking organization.
3)
The availability of inspectorate department encourages efficiency among
employees in banking organization.
4)
The existing statutory and other relevant regulation laid adequate
consideration on the inspectorate functions.
5)
Inspectorate department encloses financial accountability in banking
organization.
Based on the findings,
the following are recommended among others.
1)
Training and retaining of inspectorate department staff for efficiency.
2)
Creation of internal audit (inspectorate) department in the bank.
3)
To ensure that a professional heads the audit unit qualified
inspectorate.
TABLE OF CONTENTS
CHAPTER ONE
Introduction
1.1
Background of the study
1.2
Statement of the problem
1.3
Purpose of the study
1.4
Significance of the study
1.5
The scope of the study
CHAPTER TWO
Review of related
literature
2.1
Meaning and purpose of inspection
2.2
Organization of the inspectorate department
2.3
Review and reports
REFERENCES
CHAPTER THREE
Research design and
Methodology
3.1
Sources of Data
3.2
Location of data
3.3
Method of Data Collection
CHAPTER FOUR
Findings
CHAPTER FIVE
Recommendations and
Conclusion
BIBLIOGRAPHY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
The banking system in
Nigeria is made up of the central, commercial, merchant, development and
agricultural bank.
These financial houses
were established for the central of money, purchase and sale of securities,
transfer and clearing and other banking transactions. Hence, banking as a
profession has existed for several decades now, but unfortunately there was no
generally accepted satisfactory meaning until 1958, when the banking act
defined banking as the business of receiving monies, valuables and securities
from outside sources. The purchase and sale of securities by bank or granting
of loan in respect to maturity or the success of the business, this lead to
Hart definition of bank or banker as a person or company carrying on the
business of transferring money to assets and receiving monies from customers,
subject to the collection of drafts and honouring of cheques drawn upon them
from time to time by the customers, to the extent of the amount available on
their current accounts.
These banking systems are
closely monitored and regulated by the government agents known as Central Bank
of Nigeria (CBN), international monetary fund (IMF). This is to ensure that
they render services to their customers and also to keep proper account of the
business.
Owing the need to
accountability and effectiveness of the organization, the management personnel
of the bank introduced the internal control (audit department). Among other
department in the banking business, the management pays more attention to the
internal control to enable them plan control the inflow of cash in
the organization for efficiency and good management policy.
Under the organizational
efficiency, it is important to establish a follow up mechanism so that the
performance of the firm will be monitored to know whether staff structure
management plans and policies and finance are working accordingly. Therefore it
is in the light of the above factors that the management function of
controlling becomes very desirable.
In order ensure
that suitable procedures are maintained, the bank management established the
internal audit unit otherwise called the inspectorate division. The
inspectorate division is an important organ of the internal control system.
Hence, our study examines the purpose, techniques and requirements of good and
efficiency inspector and its contribution effective bank management resources
based on the circumstances of the union bank of Nigeria Plc.
1.2 STATEMENT
OF THE PROBLEM
There is very recurring
problem of bank managers granting loans (credit to customer over discretional
limit as approved by management without adequate security given and this result
in loss of loans.
The cases of increase in
bad debts resulting from loans issued to customers that have not been recovered
and this gives problems to management finance, as part of the organizational
income is now issued in report as a provision against bad debts in view of
requirement and potential guideline for bank licensed issued by the central
bank of Nigeria and (CAMD 1990) company and allied matters decree of 1990
statutory requirement guideline.
There is also this
problem of poor attention of bank staff to customers, which leads to inadequate
fund and poor cash flow of the bank daily transaction.
The problem of
disorganized organizational structure and line staff structure, also contribute
to the low income in the company. This is because the managers in an
organization at times plan on what to do, take decision, execute and as well
collect fund from outside bodies or customers and at the end, irregularity will
occur in the account book and this will affect the financial report for such
firm.
Moreover, lack of
economic stability and efficiency in operation records of bank transaction made
by bank managers contributes to the irregularity in financial books and
records. Therefore, these problems are of serious concern to the financial
organization management and those who contribute immensely to the enlistment of
societal issues.
Any effort made towards
correction of these problems, should be regarded as one in the right direction.
1.3 PURPOSE
OF THE STUDY
The purpose of this
study is:
1)
To identify and explain how inspection can be of assistance towards achieving
effective finance on bank management.
2)
To find out whether bank management grant loans over discretional limit as
approved by bank management without adequate security give.
3)
To determine the number of bad debts resulting fro loans issued to customers
that have not been recovered and also, to know whether adequate provision for
bad debts is made for such debts.
4)
To ensure that financial department and internal check and accounting system
are effective in design and operation.
1.4 SIGNIFICANCE
OF THE STUDY
It is hoped that the
result of this enquiry will be of immense benefit to inspectors of bank,
external auditor examiners, the accounting profession, bank management, other
operations in banking sector and the state.
The implementation as
regards to the requirements of effective inspection, it is hoped that it will
increase objectivity in reporting and also security in the job.
The recommendation on
implementation is expected to remove the general apathy usually associated with
inspection reports. It is also hoped that when reports are produced without any
based consideration, it will encourage everybody concerned to adhere to
policies, standards and procedures as well as promoting the strive towards the
collective achievements of the bank objectives.
1.5 THE
SCOPE OF THE STUDY
The scope of this study
is designed to cover the financial management functions controlling with
peculiar references to its assistance in effective bank management. Due to the
fact that it is quite impossible to cover all the banks in Nigeria, the
researcher concentrated on union bank Nigeria Plc.
Further to limit the
research to five different branches, which include area office, Ogbete, Ogui,
Okpara Avenue and Emene, where we got most of the required information.
The reasons for this
action is because of time and financial constraints associated with traveling
to all the branches of the bank spread across the country. The time permitted
to submit the research work was also one of the reasons that led to areas
chosen by the researcher for the study, as time was too short to exhaust in
details all materials needed for this research work.
Department | Banking and Finance |
Project ID Code | BFN0276 |
Chapters | 5 Chapters |
No of Pages | 32 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |