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Full Project-THE EVALUATION OF INTERNAL CONTROL SYSTEM OF NEPA

Full Project-THE EVALUATION OF INTERNAL CONTROL SYSTEM OF NEPA

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THE EVALUATION OF INTERNAL CONTROL SYSTEM OF NEPA (A CASE STUDY OF ENUGU DISTRICT)

 

CHAPTER ONE

INTRODUCTION

1.1    Background of Study

The statement on study auditing standards defined internal control as being not only internal check and internal audit but the whole system of controls, financial or otherwise, establishment by management in order to secure, as far as possible, the accuracy and reliability of the records run the business in an orderly manner and safeguard the company’s assets its objective being the prevention or early detection of fraud and errors.

One of the major factor believed to restrict efficient performance of most Nigeria public sector enterprise is un-serious approach towards accountability.  There is a great need to establish internal checks and auditing system as well as defining a control of financial  and management procedure so as to carry on the operations of the enterprise in a way as to guard against the possibility of not only fraudulent practices and financial necklessness but also enhance performance and public confidence the enterprises.National electric power Authority (NEPA) is an important public enterprise in Nigeria established by decree No.24 of 1st April 1972, with the amalgamation of Electricity corporation of Nigeria (ECN) and Nigeria dams Authority (NDA).  NEPA was empowered to maintain an efficient, co-ordinates and economic system of electricity supply to all the nooks and cranny of the nation.It’s operations especially it’s financial management and control system has been subject  of intense debate.

This is as a result some unsatisfactory performance as evidenced by near darkness all the time.There is need to look at the internal control system in NEPA and it’s operational performances in the area of efficiency.

1.2     Statement of problem

 

The national electric power, authority (NEPA) has the statutory function of catering for the electricity needs of the nation Nigeria.  But the power supply  has some factor contributing to power interruption.  This interruption has terminology, which is termed “planned and unplanned outages”.  For the planned outages, the authority takes light off to do repair and maintenance work to avoid a major breakdown. Before this job is embarked upon, customers are normally informed through the media, both price and electronic. Telling them about the interruption, and length of time involved.

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