Effect of treasury single account policy on the administration of Federal Tertiary Institutions in Anambra State, Nigeria (2011- 2022)

Abstract

This study examined the effect of treasury single account policy on the administration of Federal Tertiary Institutions in Anambra State, Nigeria  (2011-2022). The study, modelled variables like Revenue collection using TSA policy, Payment disbursement using TSA, Treasury ledger system using TSA policy and Liquidity management using TSA policy to ascertain how they have influenced cash management in federal tertiary institutions in Anambra  State using the theory of the frugality of money. The study adopted a descriptive survey research design that aimed to determine the relationship  between the independent variables and dependent variable in a population. The population of this study was 993 with a sample of 285 determined using  Taro Yamane formula. The data collected using the questionnaire were analyzed using descriptive statistics like frequency, mean and standard deviation;  and also inferential statistics such as factor analysis and regression analysis. All analysis was conducted using SPSS version 23. Findings showed that:  Revenue collection using TSA policy, Payment disbursement using TSA, Treasury ledger system using TSA policy and Liquidity management using TSA policy all have significant effects on cash management in federal tertiary institutions in Anambra State. Based on the findings of this study, key  recommendations among other were made: The government should ensure that all revenue collection by the federal tertiary institutions are carried out  within the guideline of the TSA policy. This will enable them to consolidate cash resources on a daily basis and reduce borrowings currently necessitated  by perceived cash shortages arising from holding so many government bank accounts and a fragmented system for handling receipts and payments. The government should ensure that all tertiary institution adopt a Unified Payment Services. This will enable them reduce the risk of errors in reconciliation  processes, and improve the timeliness and quality of the fiscal accounts. All federal tertiary institutions should keep unified treasury ledger system using  TSA policy. This will help to ensure compliance with the principles of unity of cash management and the unity of treasury operations. All tertiary  institutions should ensure that all their accounting staff are trained on the guidelines for the operation of treasury single account. This will ensure compliance with the principle of unity of cash management and the unity of treasury operations.