DESIGN AND IMPLEMENTATION OF STATE CIVIL SERVICE PAYROL

ACCOUNTING SYSTEM

(A CASE STUDY CIVIL SERVICE COMMISSION ENUGU)

A project

DEPARTMENT OF COMPUTER SCIENCE

ABSTRACT

Ever since man discovered the computer and hence computer science,

attempt has been made to computerize every facet of human life.

This project work express the issue of designing and implementing a

state civil payroll acknowledges (speed and accuracy) over the more

tedious inefficient and true consuming manual system.

This system encounters the following problems. Late receipt of raw data

each month, regular break down of the accounting machine presently

used for data processing, irregular power supply, in any errors resulting

from the manual methods of data processing and the office caused by

bulky files and constant complaints for errors from the workers.

Consequently a computerized payroll accounting system when designed

to take care of the above problems.

ORGANISATION OF WORK

The study is being organized in seven chapter.

Chapter one contains the introduction of the project at hand. The

problem is being states; it also contain the purpose of the study, aims

scope or delimitation or constraints, assumptions and defunction of the

terms.

Chapter two is the literature review. This is where the related work about

payroll is reviewed.

Chapter three is the description and analysis of the existing system. The

design of the new system is the content of chapter four.

Chapter five involves the implementation of the new system. It also

includes the program design, program flow charts, pseudocodes, course

program and test run.

Chapter six is the documentation of new system.

Chapter seven contains then recommendation and conclusion and

references.

TABLE OF CONTENT

Title page

Certification

Dedication

Acknowledgement

Abstract

Organisation of the work

Table of content

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

1.2 Problems defunction and analysis

1.3 Objectives of study

1.4 Scope of study

1.5 Limitations

1.6 Assumptions

1.7 Definition of terms

CHAPTER TWO

2.1 Literature Review

CHAPTER THREE

3.1 Descriptions and analysis of the existing system

3.2 Methods of fact finding

3.3 The organizational structure

3.4 Objective of the existing system

3.5 Input, process and output analysis

3.6 Information flow diagram

3.7 Problem of the existing system

3.8 Justification for the new system

CHAPTER FOUR

4.1 Software designed and implementation

4.2 Output specification and design

4.3 Input specification and design

4.4 File Design

4.5 Procedure char

4.6 System requirement

CHAPTER FIVE

5.1 Implementation

5.2 Program design

5.3 Program flow chart

5.4 Pseudocodes

CHAPTER SIX

6.1 Documentation

6.2 Identification

6.3 User information

CHAPTER SEVEN

7.1 Recommendation

7.2 Conclusion

Reference

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Computer, the versatile data processing machine, has been found very

useful in every human endeavour since its incursion into many fields of

study, industry, business, sciences and technology in general. Payroll is

being prepared by organization, committees, governments and other

business firms, it is also part of account department, in my organizational

concern. It is used for the preparation of worker’s salary daily, weekly or

monthly.

The payroll module, which helps in data processing, processes monthly

pays of all the employees in state civil services commission. The module

maintains staff loans, advances, tax and other deductions from staff pay.

It also performs annual increment on the salary of qualified staff each

month. The payroll lists every employee for whom the computer has

produced a payroll cheque and shows for each employee what deduction

are subtracted from gross earnings to arrive at net pay. This report is

reviewed by the manager of the payroll department before the cheques

are released for distribution.

1.2 PROBLEM DEFINITION

Over the years, manual method of payroll has been used. This method

has its problems. It has been proven to be very ineffective and

inefficient. Some of the problems are

The job of preparing salary payment in annually is tedious causes

delay.

As a result of the problem above, manual methods have a lot of

discrepancies and raise doubts in the voucher.

This method encourage fraud figures are easily manipulated and

changed.

The manual method requires people who are competent in

mathematics related computation to do a reliable job. As a result

people of such are very scarce.

1.3 OBJECTIVES OF STUDY

The study aims at designing a payroll accounting system that will help to

eliminate instances, delay and frauds associated with manual calculation

of workers salaries and entitlements.

1.4 SCOPE OF STUDY

The study aims at designing and implementing a state civil service

commission payroll accounting system Enugu.

1.5 LIMITATIONS

In the process of carrying out this research work, some factors tried to

hinder the free flow of work. These factors include

Time: Time factors in the sense that the semester was short

and as a result combing this work with studies was tedious.

Finance: Finances were rather on the lean side and as a result it

affected the carrying out the research in that monetary

commitment was needed for going to the case study, photocopying

document, browsing e.t.c.

Lukewarm attitude of the staff: The staff of the payroll

department were rather hostile and aggressive owing to the fact

that the felt of this activity is computerized they might loose their

jobs to the computer.

1.6 ASSUMPTIONS

If the designed new system is implemented it may improve and to be a

large extend enhanced the activities of processing staff salary payment

in state civil commission Enugu office.

The worker will be relived by the tedious tasks facing them in the

discharge of their duties. They will have more time to themselves and

also increase their standard of work.

1.7 DEFINITIONS OF TERMS

Computer:Computer is management and business studies (1979),

defined a computer as an electronic device that is capable of

inputting and outputting, sorting, storing and retrieved of

information stored in it.

Payroll: List of employee and all their wages and salaries

including their allowance and deductions.

Salary: This is usually a monthly payment for regular

employment on a yearly basis.

Shift Allowance: This is the allowance granted to an

employee who works on shift basis.

Arrears: This represents the accumulation of staff entitlement.

Rent Subsidy: These represent the rent given to an employee

for his or her house.

Flowchart:It is a pictorial representation of information in data

processing by means of symbols and interconnecting linking the

generations.

Transport Allowance: This is the allowance given to a staff

for his transportation to work.

CHAPTER TWO

2.0 LITERATURE REVIEW

The review to related literature will be based upon what others have

already discusses on payroll accounting system, the following as:

i. Overtime pay

ii. Overtime rate

iii. Bonus pay

iv. Tax deductions.

Overtime pay:- This is the extra hours worked by some categories of

the employees in calculating the overtime.

According to Defies (1987) the term payroll can be defined as a

continuous calculation on workers salaries with deduction of tax was

taken, and the addition of allowance and bonus to come out with the net

salary. He also stated that overtime pay to workers is not permanent

pay, it can only be temporally.

Overtime rate: This is the w\number of hours worked for each staff. It

way vary from month to month as the days of the month varies. So

every worker are being rate according the days of work in a month.

According to Mayfiles (1990) he states that payroll is an aspect of

according that deals with workers salaries monthly or yearly. Whether

skilled or unskilled worker every body maintains companies list of

payment i.e. pay-slip.

Bonus pay:- The bonus pay is a gift to hard working worker and a

skilled work, the bonus may not be everybody, only those that are

serious with what they are doing, so not for every staff and it is not

regular.

According to Omolehinwa, he says it is an incentive scheme given to

workers to encourage them either to achieve a greater productivity or as

well hardworking and higher performance. The organisation gives out

this benefit to workers to boost their moral and beef up high outputs.

The increment letters are sent to the accounting section or clerks by the

personnel department that prepares it. It is usually melt to show that a

worker has completed a year in his office.

Tax deductions:- The gross salary is made up of taxable and

nontaxable payment. Hence, the taxable payments vary from time to

time because of overtime payments and other allowances, which may be

taxable.

According to KETT (1999), “The term payroll can be as well defined as a

continues calculation on workers salaries with the deduction of tax here

he mentioned that tax are being paid as you earn if you are earning

10,000 you tax will be deduct according to the money you and being

paid. Here he defined taxation as a compulsory contribution imposed by

a government authority on goods, individuals corporate bodies etc. Then

under these we have incidence of taxation, which includes direct tax and

indirect tax then types of income tax.

i. Income tax

ii. Company tax

iii. Properly tax and miscellaneous direct tax he later state that

direct tax is not accepted by worker, because in direct tax it is

the worker who pays income tax that bears the pain. While in

direct tax if demand is neither elastic nor inelastic producer and

consumer share the burden together.

CHAPTER THREE

3.1 DESCRIPTION AND ANALYSIS OF EXISTING SYSTEM

This chapter deals with the analysis of the existing systems. It is

important to give account of low the existing system looks like before

thinking on how to design the new system. In this chapter the problem

association with the staff payroll accounting system of the civil service

commission will be analyzed and presented.

3.2 FACT AND METHOD

In the course of this study, information was acquired through two

sources, and this was done to gather information and necessary data

about the existing system, so as to adopt a way of designing the new

system. This source include:

Primary Source:- Where information here collected at first hand

basis. This method included personal interview, questionnaires and

simple observations.

Secondary Source:- This was an indirect source which include review

of existing work on payroll, textbooks and even referencing written

documents.

3.3 ORGANISATION STRUCTURE OF STATE CIVIL SERVICE

COMMISSION

The civil service commission has the commission and administration.

The commissions comprise, the chairman and commission1, 11, 111, and

administration is made up of other staff of the department. The staff

strength of civil service commission Enugu is 87.

CHAIRMAN

COMMISSIONER 1 COMMISSIONER 11 COMMISSIONER 111

PERMANENT SECREATRY

DIRECTOR OF ADMINISTRATION

DEPUTY DIR. ADMINISTRATION

DEPUTY DIR. ADMINISTRATION

DEPUTY DIR. ADMINISTRATION

ASSIST. DIR ADMINISTRATION

ASSIST. DIR ADMINISTRATION

ASSIST. DIR ADMINISTRATION

CHIEF ACCOUNT ASSIST

CHIEF ADMIN. OFFICER

CHIEF EXEC. OFFICER GENERAL DUTIES

PRINCIPAL E. SCEC. OFFICE ACCOUNTS

STATION ADMIN. OFFICER

PRINCIPAL E. OFFICE GENERAL DUTIES

SENIOR EXEC.OFFICE

SNR. EXEC.OFFICE GENERAL DUTIES

SENIOR EXECUTIVES

EXECUTIVE OFFICES GENERAL

MESSAGERS

SECURITY

3.4 OBJECTIVES OF THE EXITING SYSTEM

The existing system was designed to meet up with the following needs

and objective.

To be timely generating staff salary computations

To be easy to apply and use

To enable the management of the civil service commission consider

some vital decision.

To produce accurate results of payroll

To enable control of fraud in establishment

3.5 IMPUT PROCESS, OUTPUT ANALYSIS

Under the input includes information. This involves getting the whole

information under which payment of salaries can be easily made and

access of information when and where needed can be easily carried out.

These information includes name of the staff, rank, grade level step,

monthly basic, shift allowance, arrears acting allowance, cross pay, tax,

deductible, death benefit group insurance, union dues, national housing,

utility allowance, rent subsidy, meal, leave, water subsidy and total

amount. All these information are structured and are recorded to serve

as impact to the organisation.

Process

The process involves the processing of the payment voucher based on

the information of the imput stated above. Based on these facts, certain

facts have some percentage through which the pay-slip are calculated or

processed in the state civil service commission Enugu. Their percentage

include

Tax 0.04%

Death benefit 0.035%

Group insurance 3%

Union dues 3.6%

National housing fund 5.4%

All these stated above their deduction percentage. To calculate these,

we have

Tax = 0.04 x Basic salary

100

Death benefit = 35 kobo

Group insurance = 3 x basic salary

100

Union dues = 3.6 x basic salary

100

National housing fund = 5.4 x basic salary

100

Tax + Death benefit + Group insurance + Union dues + National housing

fund = Total deduction

Output

The output analysis is the comprehensive report of the pay-rolling

process. It bears the individual amount as well as the total amount

payable for staff salary in that particular month. The audit department

also has to check the report to see that there are no illegal manipulation

(fraud). When all said has been done a summary sheet is complied

containing the total amount payable for that month, bank account

number of staff e.t.c.

Gross Taxable

it month

Tax

due to

date

Tax

refun

d

Balance of

loan

Vehicle

basic

Total

additio

n

Meet

pay

Nam

e

Free

pay

Tax this

month

Date Interest Loan repay

made

Others

deduction

Total

additio

n

3.6 INFORMATION FLOW DIAGRAM

CHAIRMAN

COMMISSIONERS

PERMANENT SECRETARY

DIRECTOR OF ADMINISTRATION

EXECUTIVE OFFICERS

CLERKS

MESSENGERS

SECURITY

3.7 PROBLEMS OF THE EXISTING SYSTE,\M

There are some problems associated with the existing system i.e. the

annual method of payroll preparation for workers in the state. Civil

service commission Enugu. These problems includes.

It consumers true and energy

Timely processing and information about salaries and allowances is

not assured.

It takes reasonable long time to produce monthly pay-slips.

Safety and security of information not guaranteed.

3.8 JUSTIFICATION FOR THE NEW SYSTEM

The new system is computerized but it make up with the demand of

current day problem.

It is easy to use and has flexibility in operation

It makes storage and retrieval of payroll entries easy and timely

It does not stress the user of the system

It reduces management expenses

It helps to reduce ghost worker syndrome to the barest minimum.

CHAPTER FOUR

4.1 SOFTWARE DESIGN AND IMPLEMENTATION

Soft system design can be well understood there is need to review the

concept of a system. A system is an organized collection of elements

that work together to accomplish an objective. It consists of interesting

parts operates together to achieve some purpose on objectives. It

consists of interacting parts operates together to achieve some purpose

or objectives. Each system is composed of subsystems, each sub-system

being delineated by the boundaries. The interactions and

interconnections between the subsystems are termed interfaces.

Interfaces occur at the boundary and take the form of input and output.

The software design is being in stores inside the system, which interacts

with the hardware components.

Exchanges of system are solar system, accounting system, information

system, data processing system, computer system and so non. The

system is made up of two units and output. It receives input, transforms

it and produces output. It should be noted that before a system is

designed investigation are properly carried out an facts collected are

analyzed and recorded.

4.2 OUTPUT SPECIFICATION AND DESIGN

The output specification of the pay-rolling process depends on a number

of factors which arise from the particular subject under study here, the

civil service commission Enugu is our care study. Their pay-rolling is

based on computation of a staff basic salary, allowances and deductions

to get the net salary. The output specification include

Date/month

Department

Staff number

Basic salary

Total allowance

Total deductions

Name of bank/account number

Net salary

Staff grade level

Arrears etc

4.2.1OUTPUT DESIGN

Staff Information Allowance Deductions

Name: xxx Meal subsidy xxx Tax xxx

Department: xxx Utilities

xxx

Individual xxx

Staff number: xxx Transport

xxx

Insurance dues

xxx

Grade: xxx Housing

xxx

Basic salary: xxx

Salary arrears: xxx

Net salary: xxx

Name of bank: xxx

Account number:

xxx

4.3 INPUT SPECIFICATION AND DESIGN

The input specification determines the nature of output and the mode of

storage. The input specification include

Month

Basic salary

Allowances (mean subsidy, utilities, transport, housing, deduction

arrears)

Deduction (tax, union dues, insurance dues, staff number).

4.3.1 INPUT DESIGN

Staff Information Allowance Deductions

Name: xxx Meal subsidy xxx Tax xxx

Department: xxx Utilities

xxx

Individual xxx

Staff number: xxx Transport

xxx

Insurance dues

xxx

Grade: xxx Housing

xxx

Basic salary: xxx

Salary arrears: xxx

4.4 FILE DESIGN

In the contents of this work, a file was designed into other to make room

for adequate storage update. The file was created as a random file. The

filename is payroll.

Field N0 Filed Name Filled Type Field Width Field Deemal

1 Month/year Alphanumeri

c

12 -

2 Staff name Alphanumeri

c

25 -

3 Staff number Numeric 15 -

4 Grade level Alphanumeri

c

10 -

5 Account number Alphanumeri

c

15 2

6 Department Alphabetic 25 2

7 Basic salary Currency 10 2

8 Allowances Currency 10 -

9 Deduction Currency 10 2

10 Name of bank Alphabet 30 2

11 Net arrears Currency 10 2

12 Net salary Currency 10 2

STAFF PAYSLIP

4.5 PRODUCURE CHART

SYSTEM FLOWCHART

4.6 SYSTEM REQUIREMENTS

INPUT DATA

KEYBOARD ACCOUNTING

MACHINEOUTPUT

DATA

BANKING STORAGE LEDATA

MACHINE OPERATOR

STAFF INFORMATION

DOCUMENT

DATA ENTRY

COMPUTER ALLOWANCE

COMPUTER STAFF EARNINGS

COMPUTER STAFF EARNINGS STAFF

SALARY FILE

For effective utilization of the system the following software and

hardware requirement are needed.

4.6.1SOFTWARE REQUIREMENTS

Operating system (O/S): Ms windows 2000

Language: visual basic

Software: payroll program

Anti virus: Norton

4.6.2HARDWARE REQUIREMENT

The hardware requirement for the usage of this system include

components such as:

Model 600mm Intel

Storage 40 aB HDD

Memory 128MB

Display 5 VG Colour monitor

Drive CD Rom, Floppy disk drive

Printer A laser printer

Uninterrupted Power Supply (UPS)

CHAPTER FIVE

5.1 IMPLEMENTATION

This chapter deals with producing a program design arrangement and

approval of the program to solve the given program. A pseudo code is

further written to explain the algorithm in order to give the designer

proper understanding of the flowchart.

Finally, the source code, which is the program, is written and a test run is

earned out to prove the efficiency and accuracy of the program in solving

the problem for which it is designed.

To obtain a maximum and effective use of the new system, the staffs

have to undergo training for some months so as to understand how to

operate the new system. This will aid them to handle the new system

confidently and effectively.

5.2 Program Design

The program was written for the implementation of the study and the

program was design under modules, which is turn has sub modules.

Each of task, which is logically linked together to produce a solution for

the entire problem. A useful tool which aided the evolution of a workable

program is the flowchart which is illustrated below.

P

Selection OptionOption 1 = staff pay infoOption 2 = change

Option 2

Return

B

Option 1

Option 2

Return

No

Display changes password for Admin change password

Yes

Yes Display input form for data entry

Executive Program

No

Selection OptionOption 1 = searchOption 2 = upgradeOption 3 = bachupOption 4 = delete cord

C

Option 1

Option 3

Return

Search the Records

P

Option 2

Option 4

Update the Records

Back Data Base

Delete the Record

D

Display sale list in a grid form

Return

E

Option 1

Option 3

Return

Select optionOption 1 = Arrange 1conOption 2 = CascadeOption 3 = Title horizontalOption 4 =

Option 2

Option 4

Arrange multiple windows in a file vertical

Yes

Arrange multiple windows in a file horizontal form

Yes

Windows in cascades form

Yes

Arrange 1ConYes

5.3 PSUEDOCODE

Option A = File

Option B = Edit

Option C = Record

Option D = Report

Option E = Window

Option F = Help

F

Select optionOption 1 = About the ApplicationOption 2 = Help

P

Return

Option 1

Option 2

Display information about Author and Applications

Display help information About the form

If option is A Do

Else

If option B Do

Else

If option C Do

Else

If option D Do

Else

If option E Do

Else

If option F Do

Else

Stop

Option A

Select option

Option a is open

Option is Edit

If option = 1 then display open dialog window

Else

If option = 2 then exit the program

Else

Return

Option B

Select option

Option I is staff pay information

Option 2 is change password

If option = 1 then display input for data entry

Else

If option = 2 then display change password form

Else

Return

Option C

Select option

Option 1 is search

Option 2 is update

Option 3 is backup

Option 4 is delete record

If option is 1 then display search form and search record

Else

If option is 2 then display update form and update record

Else

If option is 3 then display backup form and backup the database

Else

If option is 4 then display delete form and delete record

Else

Record

Option D

Display salary list in a grid form

Return

Option E

Option 1 is arrange icon

Option 2 is cascading

Option 3 is title horizontally

Option 4 is title vertically

If option is 1 arrange icons

Else

If option is 2 arrange window in cascaded form

Else

If option is 3 then arrange multiple window in a horizontal title form

Else

If option is 4 arrange multiple window in a vertical form

Else

Return

Option F

Select option

Option 1 is about the application

Option 2 is help

If option is 1 display information about the application

Else

If option is 2 display help in grid form

Else

Return

CHAPTER SIX

6.1 DOCUMENTATION

Documentation gives a detailed report of all the information necessary to

provide the user with the understanding of the purpose and how to use

the designed program for the system to achieve its objectives. This help

in carrying out further research and improvement on the system, also

comprehensive information about the new system.

In view of this, the documentation of this project is done in two sectors

namely

Identification

User information

6.2 IDENTIFICATION

The identification entails the title of the project and concise statement of

its function.

Program ID: Payroll management system

Author: Ovuevu Clement .O.

Purpose: To organize and manipulate payroll information in state

civil service commission Enugu.

Programming language: Uz 6.0 (visual Basic 6.0)

Operating system support: Window O/S (Window 98)

6.3 USER INFORMATION

The application program is menu driven. The menu has option that guide

the user in every stem. To run effectively the follow step is to be taken.

To begin the program.

Boot the computer to window

At the windows click the (start) icon on the taskbar and select (run)

Browse the disk that houses the application and select (payroll

management system).

CHAPTER SEVEN

7.0 RECOMMENDATION AND CONCLUSION

7.1 RECOMMENDATION

Having analyzed data collected from interviewed and personal

observations made by the researchers, the following recommendation

are hereby made:

This payroll system should be computerized. This involves among

other things, training of the payroll staff. The following data

processing personnel are essential; a system analyst, a

programme, operator and data clerks.

Stand-by power generator should be made available because

irregular power supply has adverse effect on computer, and as well

uninterrupted power supply i.e. (UPS)

7.2 CONCLUSION

A payroll is a compiled list of employees and all their wages and salaries,

including their allowances and deduction. It is usually conducted by staff

of the accounts department of an organization. Pay-rolling is not a very

easy task, it is quite tedious, a lot of calculation are carried out and this

to a large extent makes it difficult and time consuming. Due to this fact,

the payroll exercise cost a lot of money and could also lack accuracy.

The introduction of computer has helped a lot in the field of accounting

especially pay-rolling. The compute with it sophisticated features has

carried burden faced by staff of the payroll department. It makes the

payroll process very easy, interesting and labour saving. The

computerized payroll system automatically produce and generate timely

and very accurate reports.

REFERENCES

Omolehinwa E.O. (1993) Fundamental of Cost Accounting

Bukam J. (1989) Data Processing Macmillan Education Ltd. London

Adam D. R and Wager (1986) Computer Information System

Ugwu O. I (2004) Management Information System Manual

Blans M and Jackson P. (1990) Effective Employer Communication.