CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organization both profit and non-profit oriented need funds (financial assets) for their numerous operations. That is why all organizations irrespective of their legal forms, device a means their day- to –day operations. The funds sourced are not normally kept idle by the organization rather they are either being reinvested to generate future profit or consumed immediately to achieve the origination day to day goals hence the word “ source and application of funds” in accounting profession
Source and application of funds simply means the various avenues available to an organization thought which it source it’s financial assets and all the outlet through which the sourced financial assets leaves the coffers of the organization. In recent past, government pareastalal which institute of management and technology is one, depended revenue grants in forms of subvention for few existence and growth, in this era of privatization, the government has decided to shade off it’s financialresponsibilities in almost government paratatal so as to concentrate in it’s constitutional role of providing enabling environment for economic activities to thrive. This scenario has left many government paratatal in total financial drought For instance, the immediate lost years in the which institute of management and technology has been a hectic one as financial starvation meted to it by the government has left the which institute with the following identifiably problems;-
1) Constant face off between management and trade union in respect regular payment of salaries
11) Lack of promotion to staff that are due to be promoted
111) inability to maintain their fixed assets such as
a) Building
b) Motor vehicle
c) Furniture and fittings
1V) inability to settle their other numerous over heard costs
V) Absence of non structures to replace the dilapidated once etc