SOURCES AND APPLICATION OF FUND IN GOVERNMENT ESTABLISHMENT. (A CASE STUDY OF KAIMA LOCAL GOVERNMENT AREA KWARA STATE)

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

In any organization set up either large or small public or private, there is certainly of generating money which is sufficient enough to finance the organization so also in government, there is a mean of getting fund and how such fund is being used. This will therefore be the area which concentrate on this project, most especially in the local government.

The government in Nigeria is grouped or divided into three arms which are as follow.

The federal or central government, state government and lastly the local government.

The attention there should be based on how the local government that is Kaiama in this case generate or gets its fund and such is been utilized. So that at that at the conclusion of this project, it shall be know whether the fund has been mismanaged if it has been used in the right order.

Comment when are necessary and when are hope would be to the nation

As a whole would be made.

1.2      OBJECTIVE OF THE STUDY

There are always arms and objectives of managing fund in every organization a business, likewise the local government.

The government has in carrying out its function to the society.

The function can be subdivided into two main categories

To carry out its capital project and to pay its capital project and to pay its salaries. The capital project company.

To make available and maintain the market in its suitable area. 

Markets play a very vital ride in the economic of West African generally, the local government authority to bring about exchange of goods and services.

To make available and take care of minor roads and street including feeders

The building or construction of feeds because of the crude style employed in collecting the revenue where huge were employed in some cases

The same was the case both in the northern and western region of the nation

The period of 1966-1975 can be called the era of great return at local government authority in Nigeria. in 1973 and edict was promulgated in western region of Nigeria reducing the 114 to 39 all purpose council

The edict was no 18, which also established 335 area committees to the council area in 1976-1979 this was a period of nation wide local government return the first if its type in Nigeria. It was this period the federal government involve financially in local government, makes and by issuing guidelines for local government, it also introduce there federal universities designated as training centers for local government staff.

The universities are: Ahmadu Bello University, Zaria, university of Ife now Awolowo University, and the University of Nigeria Nsuka.

The period of second republic 1979-1983 was the period when the civilian government took over reign of government and these where series of problems by the aggrieved politicians.

Its staff salaries. The capital project companies to make calculate and maintain the market in it suitable area.

Markets plays a very vital ride in the economic of west African generally, the local government authority to bring about exchange of good and services.

To make available and take care of minor roads and streets including feeders

The building or constitution of feeders because of the crude style employed in collecting the revenue where huge were employed in some cases

The same was the case both in the northern and western region of the nation

The period of 1966-1975 can be called the era of great reform at local government authority in Nigeria. In 1973 and edit was promulgated in western region of Nigeria reducing the 114 to 39 all purpose council.

The edit was no 18, which also established 335 era communities to the 39 council area in 1976-1979 this was a period of nation wide local government reform the first of its type in Nigeria it was this period the federal government involved financially in local government, mates and by issuing guiding for local government. Its also introduces there federal universities designated as training centers for government staff.

The universities are:- Ahmedu Bello university, Zaria university of Ile-ife now  Obafemi Awolowo university and the university of Nigeria, Nssuka.

The period of second Republic 1979-1983 was the period when the civilian government took over reign of government and these where series of problems by the aggrieved politician.

The period was characterized by the creation of mushroom local government roads, minor roads and the availability or streets are motor able to ease transportation.

Agricultural and economic development of most of the people residing in the local government is farming, those that are not farming on commercial basis take farming as a part-time job or occupation with this the local government has the objectives of promoting agriculture practice by providing agriculture equipment such as tractors, and agricultural chemical like fertilizer and pesticides though these there will be sufficient from product then market and the condition of living among the resident of the local government area will rise.

Including the objectives is to maintain invest the healthy of the people in the  local government area by providing livestock and fished to people at an affordable and poor able price or prices to bring about educational facilities including what local government has in its objectives is the responsibility to provide educations.

It has the responsibility of building classes and the maintenance of these classes and the same time the responsibility of supervising these schools.

To provide good health facilities and sanitation facilities including maternity homes and health and health center

It also build and maintain libraries that is the public owned ones on its suitable area so also then amusement parts and the ground s for recreation.

Its find management is planning it also has the objectives of playing its staff salaries these staff including these of the local government secretaries town planning primary schools environmental sanitation and of course the local government health center and maternity homes.

In executing the above mentioned objectives the local government even though not a profit oriented organization or trading vowel and at optical, in the provision and application of fund open at optimality, in the provision and application of fund open to her at any given period. Thus if there is surplusor excess application over source of fund, these would bring about the local government turning into loss or deficit and thereby loading to insolvency.

1.3      JUSTIFICATION OF THE PROBLEMS

Sources and application of fund, which is the topic of this project with Kaima local government as a case study.

The project tries to provide answer to the following question;

·                    What are the sources of fund of kaiama local government?

·                    In what ways are the find being arranged

·                    What accounts for the difference in the sources and application of these funds?

The system adopted in the project in the bringing together data is both primary and secondary in nature this as a result of the nature of the topic being written on and the fact that parts of the project is gotten from the document of the local government.

The data are gathered through personal interview with the local government staff and through the issue of questionnaires.

1.4      STATEMENTS OF THE PROBLEM

In stock control the major problem is the problem that has traditionally referred to as the “Newboy” problems but which is applicable in numerous situation in which a perishable commodity is purchased in some order size {before demand is known} and is then either sold or scrapped, depending on demand level.

In the new boy problem, the concern was with ordering quantities of a perishable commodity for a single period.

The re-order point model on the other hand is concerned with multiple of periods, Other problems introduced again are demanded uncertainly, the appropriate level of safety stock depend upon the number of stock oaths management is holding cost resulting from the safety stocks, it can also be on an expensive policy.    

With time, some goods may not have value and infant may be expense on disposal, such goods have the problem of determine, they will use the potential profit, some there is insufficied time of replenish stock, if they stock more units than demand, some must be disposed off at last.       

Nevertheless, the problems associated with inventory management such as overstocking, obsolete, high insurance risk, strange cost could be reduced with foresight in planning process.                                    

The project is divided into five chapters, the first chapter is on the introduction aspect, which includes statement and limitation of the study, The second chapter is the literature review while the third chapter is the research methodology, that is nature and source of data, questionnaires used in the collection and recording, processing analysis of data, the last chapter consists of the findings of the researcher conclusion and recommendation.                                                                                       

1.5   SCOPE OF THE STUDY

The motive of this study is to verify the length at which the local government fund in being managed our attention here will be based must especially on the strategies and methods employed in managing the fund in order to give at an efficient and effective management our primary aim is the study of attention to necessary recommendation it is also utmost to view or look into the past played by the federal and state government on how the source and application of the local government fund will be largely or good (moderate) it is the desire that the study of this topic will stand as a very useful documentary  guide to local government administration most especially that of the Kaiama local government. There is the wish that topic would serve as essential a necessary and ideal.                             

Fundamental step to primary finished, manager in general and student who are research on this letter.                                                                         

The several ways of fund management are briefed in this chapter, due to the limit we have focused on local government sources and application of fund with a special reference to Kaiama local government.

1.6      RESEARCH METHODOLOGY                          

Sources and application of fund which is the source and topic of this project with Kaiama local government as a case study the project tries to provide answer to the following question,                           

·                    What are the sources of fund, of Kaiama local government?          

·                    In what ways are the funds being managed?                         

·                    What account for the difference in the source and application of fund?

1.7   PLAN OF THE STUDY

Chapter one deals with the introduction and general the function of fund management the method of fund management the scope and importance of the study.  

Chapter too includes the literature review (motives and consideration for fund management in local government), listonal background of local government, explanation of source and application of fund and references.  

Chapter three deals with research methodology (statement of the problem and data collection) analysis and finding (table 4.1and 4.3 showed Kaiama local government summary and estimate and recurrent revenue and expenditure respectively) and lastly.

Chapter four contains the conclusion and recommendation of the whole project. It can be deduced from the previous the fund management and at optimality in the application fund.        

1.8   DEFINITION OF TERMS

Confusion the meaning of the concept used can destroy the research study without the researcher of client even knowing it. Therefore definition of terms used in for everybody.

PIN CARD; this card is being used for reporting or movement of stock. It shows the issuing, receiving and balance column or item.           

DISPATCH: Responsibility of this department is to carry consignment and forwarding to traffic.

INVENTORY CONTROL: This can be as the system used firm to control the firm investment in stock.

BINNING: This is the area where stock their issue is made.

BILL OF MATERIAL: This is a list of materials that stand for the production requirements for parts.