A Comparative Study on Effectiveness of Financial Control System Between Divisional Secretariats in the Ampara and Batticaloa Districts

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1.1 Background of the study
District secretariat administration system plays a vital role in the decentralized administrative system in Sri Lanka. The district secretariat functions as administrative body of the district. The divisional secretariats are coming under the administration of district secretariat.

Batticaloa district secretariat is a major part of the Eastern Province. Vision of Batticaloa district secretariat is “Uplifting the living standard of the people at Batticaloa district through excellent public services”. And also its Mission is “engorging the living condition of the people of Batticaloa district by ensuring the excellent public services through and effecting divisional level development and administration”. (Batticaloa district secretariat Annual report, 2009).

There are 14 divisional secretariat divisions in Batticaloa district secretariat. Those are Batticaloa, Koralai Pattu North, Koralai Pattu West, Koralai Pattu, Eravur Pattu, Eravur Town, Manmunai North, Manmunai West, Kattankudy, Manmunai Pattu, Porativu Pattu, Manmunai South, Eruvil Pattu, Koralai Pattu South. (Batticaloa district secretariat annual report, 2009).

Ampara district secretariat contains 19 divisional secretariats. Vision of .Ampara district secretariat is “Provision of qualitative and equal service to the people of all nationalities in the district, through an Efficient and Effective Process of administration”.

Its Mission is “Co-coordinating Government Sector, privet sector and NGOS to archive create employment opportunities and ways of income, establish of well disciplined healthy society, protection and nourishment of the cultures inherited by all nationalities, and to minimize the environmental destruction coursed by various human activates”. There are 20 DS divisions and those have been divided into two administrative areas. Those are Coastal divisions and other division. Twelve divisional secretariats are coming under coastal divisions. Those are Addalachchenai, Akkarapattu, Alayadivembu, Kalmunai(Mushlim), Kalmunai(Tamil), Sainthamaruthu, Karathivu, Ninthaur, Pottuvil, Samanthurai, Navithanveli, Thirukkovil. The following eight divisions are under the other divisions, Ampara, Damana, Dehiyathkandiya, Lahugala, Mahaoya, Padiyathalawa, Erakkamam, Uhana, (Ampara district secretariat annual report, 2009).

The finance branch of the district secretariat plays a vital role in the administrative progression of the district secretariat. It has an influential role as it handles the financial activities. Since it handles with the financial resources of the government, it is the responsibility of the finance branch to put into practice an efficient and effective financial management.

To practice an efficient and effective financial management, a better financial control system must be in practice to coordinate the financial functions towards the achievement of the financial targets. In the present business world, a lot of sophisticated computer software systems are in use in the financial management in the private sector, whereas most of the departmental organizations are operating with the manual systems in Sri Lanka. With the consideration of these, the responsibility lies with the hands of management to manage the financial resource efficiently with the help of said rules and regulations.

1.2 Problem Statement
Even though Sri Lankan government has implemented several rules and regulations to carryout the financial control system effectively, number of frauds and mishandling of money are still occurring in government sector organization. As a result, Audit department interdicted several employees. Hence, this study tries to find the answer to the following research problem. To what extant financial control system is effectively practiced in divisional secretariats?

1.3 Research questions
Based on this research problem, this study extents to raise the following research...
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