APPRAISAL OF local government FINANCES AND ACCOUNTING SYSTEM
APPRAISAL OF LOCAL GOVERNMENT FINANCES AND ACCOUNTING SYSTEM
“The local government is the third level of government.” State governments have significant powers over their local government councils,
however the constitution now recognises the functions of local government councils separately. Oshinsami.
The availability, utilisation, and accountability of funds is critical for both public and commercial organisations.
With the local government now having democratically elected administration and the increasing discussion on its autonomy, an organisation must be supported to be able to carry out its objectives at the lowest possible cost. It became important to investigate the finances of the local government in order to determine their readiness for the task ahead of them.
Today, the majority of the federation's states have enacted their own local government laws to regulate and control the operation of their own local authorities.
Such laws make provision for the conduct of business in the local government council a good accounting system of local management of government operation and resources as part of their responsibilities, and local government account – for their income and expenditure in order to be audited.
Compliance with established laws and other measures must be demonstrated.
Provide proof of judicial stewardship accountability.
Summarise and report on each function's financial operations.
To explicitly match the defined income and spending
The local government is the closest level of government to the grassroots, and only adequate funding and effective use of funds will make her impact felt in the local authorities and communities.
It is in light of this relevance that the study of finance accounting systems at the local government level is considered quite appropriate and timely, given the dwindling revenue coupled with their increased responsibilities.
1.2 STATEMENT OF THE PROBLEM
In general, local governments in Nigeria are financially poor. According to omapariola (1990;1), there are three key reasons for this.
The country's inequitable revenue-sharing structure among the three layers of government.
The 1976 local government reforms, as confirmed by the presidential constitutions of 1979 and 1989, which gave a wide range of powers to local governments but failed to provide them with the financial means to carry them out.
internal revenue production and collection procedures that are inefficient.
The internal and external sources of local government budgets are identified in public finance literature.
1.3 OBJECTIVES OF THE STUDY
The goal of this research is to evaluate the various sources of funding accessible to Aniocha South Local Government Council and the effectiveness of its revenue-generating apparatus.
We will assess the suitability of the current system of local government accounting to provide insight into the current accounting system carried out at the local government level.
This study also aims to examine the much-debated revenue allocation methodology employed in the country.
The current finance regulations are the result of a commission established by the federal government to develop such regulations for the entire local government system in the country.
To that purpose, the study will look into the impact of these restrictions on local governments. By also attempting to compare the effect so far on the government's desired goals and aspirations that making the local government autonomous will allow it to function successfully as a third tier of government.
This study will also look at how local government funds are used after a careful examination of the various sources of the council's finances and determining the proportion of internally generated revenue to total revenue of the council, as well as the trend of the statutory allocation over time to see if it is increasing or decreasing.
1.4 RESEARCH QUESTIONS
As a result, this study seeks to answer the following question: How well does the accounting system in use in local government care for and meet the needs of the council's internal administration?
How does the local government council determine and assess allocation? What are the data gathering methods, and who are the qualified personnel?
Ho (null hypothesis)
Hypothesis alternative (Hi)
Hypothesis I Null hypothesis (Ho); The method of collecting is not to blame for the council's poor revenue production.
Alternative hypothesis (H1): The method of collection is suitable for the council's sole revenue generation.
Hypothesis II Null hypothesis (Ho); Their council's current finances are adequate to suit her financial and budgeting needs.
Alternative Hypothesis (Hi): The council's current finances are adequate to meet our financial and budgetary needs.
Hypothesis III: Null hypothesis (Ho); a lack of qualified staff is not to blame for the bad bookkeeping system in the local government treasury.