ABSTRACT
The research work evaluates, “The impact of
financial management on the development of local government council”. The study
aims at determining the extent to which management and staff are involved in
the development effort and the extent to which financial management has
contributed to the overall performance of the organisation.
The research was carried out by administering
questionnaires and interviewing the management and staff of Eti-Osa local
government council. It was revealed that organisation with success edge are
those who place high premium on achieving excellence in people.
It is therefore concluded that the impact of
financial management on the development of local government council is actually
worthwhile. Hence, for organisation to survive in the highly competitive global
world, recommendation of this study
which proposes a potent option at achieving
corporation excellence is certainly a step in the right direction.
TABLE OF CONTENTS
Page
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi
CHAPTER ONE
1.0 Introduction
1
1.1 Statement
of problem 2
1.2 Purpose
of study 3
1.3 Statement
of hypothesis 5
1.4 Research
questions 5
1.5 Significance
of the study 6
1.6 Scope
and limitation 7
References 8
CHAPTER TWO
2.0 Historical
background of Eti-Osa local government 9
2.1 Nature
of finance 14
2.2 Objectives
of a local government council 14
2.3 Functions
of finance controllers and Treasurers 15
2.4 Revenue
generation in local government 16
2.5 Laws
regulating local government finances 17
2.6 Extraction
of financial statement 18
2.7 Auditing
in local government 20
2.8 Budget
and budgetary control 21
2.9 Accounting system documentation for a 25
local government
2.9.0 Capital
investment analysis in a local government 30
2.10 Techniques
of evaluating a project for investment purpose
References 43
CHAPTER THREE
3.0 Introduction 44
3.1 Research
design and methodology 44
3.2 Research
strategy 44
3.3 Research
approach 45
3.4 Data: Types, research instrument, source, method 45
of collection, processing, presentation and
documentation.
CHAPTER FOUR
4.0 Data presentation, analysis and interpretation 48
4.1 Response
rate 48
4.2 Personal
information 49
4.3 Analysis
of research questions 50
4.4 The test
of hypothesis questions 57
CHAPTER FIVE
5.0 Summary,
conclusion and recommendation 61
5.1 summary 61
5.2 conclusion 62
5.3 Recommendation 62
Bibliography 65
CHAPTER ONE
1.0 INTRODUCTION
Financial management is the managerial activity
which is concerned with planning and
controlling of financial resources. When related to local government, it is
sourcing which involves revenue generation and disbursement which focuses on
expenditure pattern.
In local government the objectives of financial
management are in consonance with these component stressed.
Financial management tends to be beneficial only
when activities are properly planned and executed. It is a whole system to the
extent that when a unit of it is defective, the whole structure becomes defective . This means that the finance of an
organisation must be handled with care and must be disbursed according to financial regulations and this peculiar activity is done in the treasury of a local
government.
Treasuring is the ultimate repository of financial records
and the treasurer being the financial adviser of the council is trained in
financial reporting in order to furnish comprehensive and well researched
report to aid decision making and effective management and control of the
finances of a local government.
The impact of financial management on the development of local government
council is the overriding factor in
council financial management is the operation of financial services in a
competitive and cost effective manner. To the public, as long a local
government is not discharging it’s duties as expected it means the local
government and it’s officials are corrupt.
The impact of financial management on the
development of local government council will not let citizenry has the
impression that every revenue generated by a local government goes into
private pockets. The task of prudent and
efficiency management of resources can only be ignored at the risk of community
dissatisfaction and disaffection. First, it is necessary to known the workings
in a local government starting with revenue generation and how revenue
generated is disbursed.
1.1 STATEMENT OF PROBLEM
There are consistent complaints from people dealing
with the Eti-Osa local government council that embezzlement and lack of control
and development have been the cause of the ineffective performance of the local
council and also the problem in receiving their claims from the council.
The problems relating to the council are:
i. How do independence staff handle
numerous and vital duties of revenue
collections.
ii.
Why are those
training opportunities for key treasury staff.
iii.
To what extent
does the treasurer perform his duties.
iv.
To what extent
has his advices been ignored.
v.
To what extent
has his non-performance contributed to the failures of a local government in
programmes execution.
vi.
Does he have to
be blamed solely for laxities in
financial management and development in local government.
All these and more question need to be answered to
be able to properly appraised financial management in local government.
1.2 PURPOSE OF STUDY
This research project is basically to study of the
impact of financial management on the development of local government council
with emphasis on Eti-Osa local
government. The local government council of Eti- Osa performs her activities through the
following departments.
a)
Finance
department
b)
Personnel management department
c)
Planning and
budget department
d)
Works and
housing department
e)
Agricultural and
rural development department
f)
Health and
environmental development department.
g)
Education on department.
These are headed by the head of department (HOD)
each of whom- report directly to the
secretary to the local government or chairman.
The major activities performed by Eti-Osa local
government council are:
i.
The formation of
economic plan and development schemes for the local government area.
ii.
Collection of
rates ad issuance of radio and television licence.
iii.
Naming of roads
and streets and numbering of houses.
iv.
Provision and
maintenance of public conveniences, sewage and refuse disposal.
v.
Establishment
and maintenance of cemeteries, burial grounds.
vi.
Licensing of bicycles, truks, canoes and wheel
barrows.
vii. Construction and maintenance of roads, street
lights, Gardens, Oba’s Palace Open Spaces or such public facilities.
1.3 STATEMENT OF HYPOTHESIS
For the purpose of this research work, the
hypothesis will be based on null and alternative hypothesis.
1.
Null hypothesis:
Ho: β=
O
Financial management has no significant
impact on the development of the local government council.
2.
Alternative
hypothesis HA β =O
Financial management has significant
impact on the development of the local government council.
1.4 RESEARCH QUESTION
i.
What are the available sources of fund of local
government council apart from the major grants and allocation from the federal
government.
ii.
Are there any other means through which these
funds could be raised.
iii.
How can this
fund be utilized effectively to enhance the standard of living of those in
Eti-Osa local government?
1.5 SIGNIFICANCE OF THE STUDY
Having identified various functions related to the
finance and accounting system by different department of the local government
council in study (Eti-Osa Local Government), one is obviously left in no doubt
of the fact that the importance of this topic could help us to draw out
meaningful advantages. In this regards,
some importance could be summarised as follows:
i.
It would enable
the researcher to write out the final analysis, a comprehensive study leading
into the finalisation of the topic.
ii.
It deals with
how financial resources could be managed by the management in charge of these
resources so as to achieve the local government goals and objectives.
iii.
It provide the
necessary avenue for management to know what and what are those things to be
carried out in increasing the revenue stand of the local government council and what projects that will yield
maximum revenue (financing and investment decision).
1.6 SCOPE OF LIMITATION
The scope of the study is to make a review the trend
in accounting policies, investment decision, financing decision and development
as it affects the financial management in Eti-Osa local government and its
prospects in accounting professions. Also, the scope will be extended to
financial management existing in
accounting records and procedure audit and control management.
The basic limitation of the study is time constraint
which slightly affects the study, but in spite of these limitations, I have
tried to present unbiased and
constructive project.
1.7
DEFINITION
OF TERMS
Financial Analysis: This is analysis of
financial statement. It can also be referred to as the breaking down of figures
and subsequently expression of such figures in relation to the other, for the
purpose of comparision.
Investors: An investor is being
referred to as a person or an organisation who invest money in something or in
a business.
Management: These are the people who
runs and controls a business or similar organisation
Evaluate: This form an opinion of the
amount a value of something after thinking about if carefully.
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