An Investigation Of The Impact Of Accounting Information System On The Effective Administration Of Local Government In Lagos State

An Investigation Of The Impact Of Accounting Information System On The Effective Administration Of Local Government In Lagos State 

First Chapter :

Introduction

1.1 Context of the Study

According to Gullkvist (2003), the current expansion of information systems is due to the expanding demand for trustworthy data. This requires continuing to develop information systems to satisfy information needs. As a consequence, information-related technologies will be developed. Budgeting, accounting, and reporting, as well as auditing and control, will be more efficient with the implementation of a computerized AIS. Accounting information systems may assist consumers by supplying complete, accurate, and comprehensible data. According to Dalci and Tanis (2002), accounting information systems must be linked to firm objectives, although this is not true for the public sector. Gullkvist [2003] takes a distinct stance, arguing that AIS would be advantageous for all organizations. In order to provide superior services, a reliable accounting information system is necessary.

Accounting information systems must be fully utilized if they are to deliver enhanced information and performance. Implementing information technology in public sector organizations, particularly in local government, will enhance agency and individual performance. Quantity, quality, timeliness, and cost can be used to characterize the outputs of an organization’s performance. [2008] Hoque. Moreover, performance reveals how well agencies are able to achieve their objectives in comparison to the results of the previous year, as well as how well objectives and efficiencies have been met. Better information systems would enhance user performance, enabling more accurate decision-making. Government actions are significantly reliant on the success of local government actions. One could argue that the rehabilitation of a region depends on the political will of the local government’s leader. According to the assessment report of government agency accountability for performance from 2010 to 2015, the outcome is far from satisfactory. The fact that 91.8% of district governments scored C, CC, or D indicates that the government lacks a competent performance management system. The absence of aid from local administrations is the primary reason for this.

1.2 Description of the issue

The universe and human existence have now entered the knowledge age (Curtis, 1995), in which knowledge is regarded as the most valuable asset. Contrary to money, knowledge is not impersonal and cannot be found in a book, database, or computer program (Choe, 1996). Choe believed that knowledge is always embodied in a person, taught and acquired by a person, and utilized or exploited by a person. Accounting information is an objective tool for effective administration. Inadequate accounting data threatens administrative performance, leaving administrators administratively malnourished, especially in Nigerian local government. Consequently, Nigerian local government officials are presently experiencing a difficult condition. Huber (1999) emphasized that for local government administration to survive and compete in the ‘knowledge society,’ it must learn to manage its intellectual assets (i.e., knowledge). In actuality, knowledge management is concerned with information utilization. In light of these presumptions, the purpose of this study is to examine the impact of accounting information systems on local government administration in Lagos State.

1.3 The purpose of the investigation

The study’s primary objective is as follows:

Examine the influence of accounting information systems on the administration of local government in Lagos State.

Determining the relationship between accounting information system dereliction and decision making in the local government administration.

Determine the usefulness and effectiveness of accounting information for decision making in public sector organizations.

1.4 Research Concerns

These study-related queries have been formulated as follows:

1) How does the accounting information system affect the efficient administration of local government in Lagos State?

2) Is there a correlation between accounting information system neglect and decision making in the local government administration?

3) How valuable and effective are accounting information for decision making in the public sector?

1.5 Importance of the research

Accounting information is vital to the success of any business. Based on this data, management will be able to make informed decisions. The accountants provide accounting information that assists management in formulating company policies and making operational decisions. The management will benefit from the supplied information by utilizing it to plan and direct their current and future operations. Based on it, they will also make managerial decisions and collect data for long-term objectives. The data will also aid management in communicating historical information to outside parties.

The study will also benefit the academic community because it will add to the existing body of knowledge.

1.6 Range of the research

This study will investigate the effect of accounting information systems on the efficiency of local government administration in Lagos State. The study will also determine the relationship between accounting information system dereliction and local government administration decision making. The study will ascertain the extent to which accounting information is useful and effective for decision making in public sector organizations. Consequently, the scope of this investigation will be limited to Ikeja local government areas in Lagos state.

1.7 Restrictions of the research

This investigation was limited by a number of factors, which are as follows:

Similar to other types of research, spanning from the unavailability of required accurate materials on the topic being studied to the inability to obtain data.

The researcher was hampered by a lack of funds when acquiring pertinent materials and printing and collating questionnaires.

Having to switch between composing the research and engaging in other academic work, which makes it difficult for the researcher, is a further limitation posed by the time factor.

1.9 Terminology Definitions

Accounting information system is how a business maintains its documents. You would enter transactions such as invoices, money spent from the business’s bank account, bills from suppliers, and money you’ve spent on business expenses into your accounting system.