An Appraisal Of Local Government Finances And Accounting System

An Appraisal Of Local Government Finances And Accounting System

Chapter One

Overview

“ The third position of government is the original government. State governments have considerable powers over their original government council, but the functions of original government councils are now independently honored by the constitution. Oshinsami.

The issue of fund vacuity, application and responsibility is of vital important to both public and private associations. An association must be funded to be suitable to carry out its objects can be achieved with minimal cost, with the original government, now having democratically tagged government and the adding debate on its autonomy. It was come necessary to look into the finances of the original government with a view to catching on their preparedness for the task ahead of them.

moment, utmost countries of the confederation have legislated their own original government laws to regulate and control and the operation of their own original authorities, similar law make provision for the conduct of business in the original government council a good account system of original operation of government operation and coffers as part of their liabilities, original government account – for their income and expenditure in order to

Demonstrate compliance will established laws and other controls

Give substantiation of responsibility in terms of judicial stewardship.

epitomize and report the fiscal operation of each function.

To match explicitly the defined income and expenditure

The original government is the nearest position of government to the grassroots and only acceptable backing and effective application of finances will make her impact felt in the original authorities and communities, It’s in view of this applicability that the study of finance account systems at original government position is being considered relatively applicable and timely in view of the abating profit coupled with their increased liabilities.

STATEMENT OF PROBLEM

In general, original governments in Nigeria are financially weak, There are three main reason for this as cited by omapariola( 1990 1).

The inequitable system of profit sharing among the three categories of government in the country.

The guideline of original government reforms of 1976 as verified by the presidential constitution of 1979 and 1989, which assigned wide and varied functions to the original government but failed to give them with acceptable fiscal coffers to discharge their liabilities

Inefficient internal profit generation and collection styles.

Public finance literature reveals two major sources of original government finances literature reveals two major sources of original government finances viz; the internal and external sources

Ideal Of The Study

The purpose of this study is to critically estimate the colorful sources of finances available to Aniocha south original government council and ascertain the efficacity of its profit yielding ministry.

To give sapience into the current account system carried on at the original government position this way we shall examine the felicitousness of the present system of original government account.

It’s also the end of this study to review the important batted profit allocation formula as used in the country.

The present finance regulations as product of a commission set up by the civil government to formulate similar regulation for the whole original government systems in the country. To this end the study will examine the effect of these regulations on the original government. By also trying to take over a comparison of the effect so far on the asked expedients bournes of the government that making the original government independent will make it serve effectively as a third league of government.

This study shall also examine the application of original government finances after a careful examination of the colorful sources of the council’s finances and determination of proportion of internally generated profit to total profit of the council and trend of the statutory allocation over a period of times with a view to determining whether these allocations on the increase or on the drop.

Exploration Question

Accordingly this attempts to give question to this study; Determining how well the account system in operation in the original government caters for and meet the need of the internal administration of the council?

How can the original government council ascertain and estimate allocation? And what are the system of data collections and who are those good labor force.

thesis

For the purpose of this current study the following thesis has been formulated. Also this thesis is going to be stated in the null and the indispensable form that is

Null thesis( Ho)

Indispensable thesis( Hi)

thesis I

Null thesis( Ho); system of collection isn’t responsible for the poor profit generation of the council.

Indispensable thesis( H1) system of collection is response suitable for the pure profit generation of the council.

thesis II

Null thesis( Ho); The present finance of their council is acceptable to meet her fiscal and budgeting demand.

Indispensable thesis( Hi) The present finance of the council is acceptable to meet or fiscal and popular demand

thesis III

Null thesis( Ho); Lack of good labor force isn’t responsible for the poor system of book- keeping in the original government storeroom.