management of public resources has always been a turbulent issue. This is
precisely the heart of any governmental administration. Government business in
whatever for, be it policies, programmes, activities or function is run in
accordance with the laid down formalities. These formalities in the area of
government accounting and financial control and procedures may include laws,
rules and accepted norms certain financial memorandum of the local government
system. The accounting framework regulates the account format for the
preparation of government account in local government system in an instrument
for introduction of new policies and guide lines, before inclusion into the
financial regulation as a part of a more permanent code of regulation. It is
used to aid the achievement of probity and accountability in government. The
frameworks specify action acceptable and those doomed unacceptable. The system
is set to ensure uniformly and conformity of application.
work examined the general background and concept of the research topic listing
the aims, objectives, statements of problems and the scope and limitations of
the research work. The existing literature on the accounting framework was
examined so as to create in theoretical base for the study.
TABLE OF CONTENTS
- - - i
- - - ii
- - - iii
- - - iv
of contents - - - v-vi
1.0 Introduction - -
1.1 Background of the study - - - 2-3
1.2 Statement of the problem - - - 3-4
1.3 Objectives of the study - - - 4
1.4 Research question - - - 5
1.5 Research hypothesis - - - 5
1.6 Significant/justification of the study - - 6
1.7 Scope/Delimitation of the study -
- - 6
1.8 Limitations of the study - - - 6-7
1.9. Definitions of terms - - - 7
2.0 Literature review - - - 8
2.1 Financial framework in overview - - - 8-9
2.2 Cash flow as a measure of financial health - 9-15
2.3 Framework of local government estimates - 15
2.4 Budgeting - - - 15-16
2.6 Estimate and financial control - - - 16
2.7 Approval of estimate by local government
2.8 Implementation of estimate - - - 18
2.9 Care and custody of local government fund - 18
2.3 Strong room, safe and cash tanks - - - 19
3.0 Research methodology - - - 20
3.1 Research design - - - 20
3.2 Area of study - - - 21
3.3 Population of the study - - - 21
3.4 Sample/sampling technique - - - 22
3.5 Research instrument - - - 22
3.6 Method of data collection - - - 23
3.7 Validation of data instrument - - - 23
3.8 Method of data analysis - - - 23
4.0 Presentation/analysis and interpretation of
4.1 Research question analysis - - - 25
5.0 Discussion of finding - - - 27
5.1 Conclusion - - - 28
5.2 Recommendation - - -
to respondents – attachment to the questionnaire
OF THE STUDY
peculiar nature of local government accounting transaction makes it desirable
and indeed mandatory to treat it in accordance with specific, cohesive and
standardize measurement such as the budgeting system and fiscal policy
procedure. The local government financial framework measure all social
activities with the control and stewardship of receipts, payment and related
activities in the local government system in that the accounting system is
maintained on cash basis. The system provides a satisfactory approach or matter
of stewardship, accountability and cash programme accordingly. The balance
sheet (known as monthly reconciliation of accounts surplus and deficit
statement of local government) does not contain information on physical fixed
assets, such as building.
local government accounting framework, specific registers are taken on payment
basis for the purpose of controlling fixed assets, such registers are referred
to as plant registers or inventory control. The system of accounting principles
which is double entry book keeping. They system requirement is that every debit
entry be matched with a corresponding credit entry of similar amount. In the
accounting system, after the approval of annual budget, the letters of
authority are communicated to head of department vote controllers. In local
government, transaction is recorded when cash is paid or received irrespective
of when goods were supplied or services rendered. Some of such records include
department vote expenditure account. This record gives accurate account of
goods ordered but not yet paid. Similarly, the registers of bills received or
bills issued are kept to show at any time what the local government aspects to
receive from its debtors.
of the reasons why cash accounting is adopted in local government includes;
1) It is
a non-profit oriented organization.
operates an annual estimate of revenue and expenditure which constitute of basis necessary to meet
the estimated expenditure during the financial year concerned.
1.2 STATEMENT OF PROBLEMS
are many or numerous reasons for appraising (checking) the financial framework.
Among the major reasons for appraising the financial frame work include:
OF PUBLIC FUND
according to oxford advanced learners dictionary is simply “taking somebody or
money or property for yourself especially when they have trusted you to take care of it”. This act is very
common in most local government, where those “in-charge” use public funds for
their personal motives. They sometimes tell a lie about the purpose they use
the fund for by using the so called “shortcut” and diverting public money into
their personal purpose.
FINANCIAL RECORD KEEPING.
also is another problem encountered in checking the financial framework of
local government. Funds are easily misused due to the fact that the financial
record keeping are not enough and not also enough, hence a problem.
OF FINANCIAL PROBITY
is rare mostly in the local government to see someone who has the quality of
being completely honest especially in terms of finance. They mostly use public
funds for personal motives. Hence this call for checking the structure of the
If the guidelines for the management of
local government finances are not strictly observed chances are those
misappropriations will happen. It is reasonable to conclude that there will
likely be a state of financial recklessness in the local government in Nigeria,
this phenomenon cannot be allowed to continue indefinitely without caution,
control or application of appropriate sanctions. It is in this respect that the
financial framework in Nigeria is issued by the ministry for the financial
business of local government. Finance is like a thread that runs around a cloth
if the thread is pulled wrongly at one end, it will affect the design of the
cloth. This is to say that finance is to an organization as thread is to cloth.
It must be disbursed in accordance with financial regulations.
OF THE STUDY
intention is to reinforce the checks and balance in deliberate effort not only
to enhance judicious utilization of public resources, but also to preserve the
gains made in building the local government services. The study will specifically
dwell on the following:-
Determining the yardstick for achievement of
probity and accountability in local government.
Streamlining of duties and responsibilities of
the arms of the local government executives and legislatures.
Determining the role of individuals key
officers and other organs in the local government such as the executive
Ensuring strict adherence to estimates as any
deviation may bring about unpalatable consequences.
Providing financial accounting services by
means of accurate and detailed analysis of expenses in the course of
discharging the function of the local government.
Strengthening control and accountability in
the local government by way of highlighting to weakness with respect to
financial matters. It is imperative to assert that is not the exclusive concern
of any part of the organization or any one person or category of persons but
rather the generality of individuals in the organization from the highest to
the lowest to ensure financial regularity by way of ensuring that their field
of operation and responsibility, proper value is obtained for money spent.
system is also to be designed to combat malpractice.
research will examine the following questions with regards to an appraisal of
the accounting framework in local government system. In Mbaitoli L.G.A.
Based on the definition, the following
research question would be formulated to address the study.
Does public finance expert believe that a
better way of eliminating the problem of accounting framework in our local
government system is through operating a cash accounting systems?
Do you think that misappropriation of public
fund in the local government system is a result of lack of proper financial
financial record keeping does not lead to misappropriation of public fund in
the local government system.
a cash account system is a better way of eliminating the problem of accounting
framework in our local government system.
appraisal of the accounting framework in our local government system.
1.4. SIGNIFICANT/JUSTIFICATION OF THE STUDY
provision of the financial framework in the local government system is a unique
feature in the administration of finance. Hence, this study will add to the
effectiveness of the operators of the systems.
Information contained in this work will serve as a very
useful guide to executive council as well as various heads of units seeking to
achieve better result. More importantly is the power of the council over the
budget prepared and presented to it by the executive.
This study will also help internal auditors.
Internal auditors are those who officially examine the financial records of a
company within. It will help them evaluate the effectiveness and responsibility
of the information they have.
In addition, supporting staff such as
those on industrial training attachment, those of Youth services and also
casual workers re to benefit immensely from the study.
OF THE STUDY
study is limited to Owerri. Even though there are other local governments with
similar problem, we decided to take Mbaitoli local government as our case
OF THE STUDY.
the process of carrying out this study, we encountered some problems which
militated against the research project and also the major constraint of the
slow time frame did not allow for proper coverage of a wide area.
Finance is another factor. The money
needed for going thro and fro Mbaitoli Local Government.
the money need to cover the area to administer questionnaire.
Another limitation is the level or
degree of literacy of the respondent. Some of the respondent could not read and
write hence a problem.
it is the nature f the topic of study. We found it difficult to get information
from sources like internet, newspaper, books etc. concerning the topic of the
Lastly, it is the problem of easy access
to information from the local government. This is because those in authority
who have the right to give out information were restrictive of management of
information which is benchmark data for any meaningful research also posed a
of the following terms relevant to the course of study are defined below:
GOVERNMENT:- This can be defined as a unit of government
administration at the local level established by law to perform some specific
function within a given area of jurisdiction.
According to advance learner’s dictionary. Council is of people elected to give
advice, make rules and manage affairs.
A budget is defined as a financial pal that
serves as an expenditure for decision making. According to Abubakar 1998, he sees it as a conscious and
systematic allocation of resources prepared and based on the forecast of key
variables adopted to achieve certain policy objectives which may or may not set
explicitly. Performance target for the achievement of objective relates
anticipated revenue and form the basis against which all revenues can be
ROOM: This is a place in the treasury where all cash, monetary
and other valuables are kept.
is defined as the identification, collection measurement, processing,
evaluation and communication of financial information to facilitate decision
regarding activities and resources.