Effect of Accounting Information System on Internally Generated Revenue in Ningi Local Government Area
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Background of the Study
Internally generated revenue (IGR) is a crucial source of funding for local government operations, including infrastructure development and social services. In Ningi Local Government Area, effective management and tracking of IGR are essential to ensure that revenue is collected efficiently and used appropriately. The implementation of an Accounting Information System (AIS) could improve the collection, monitoring, and reporting of IGR. This study will explore the effect of AIS on enhancing IGR in Ningi.
Statement of the Problem
Ningi LGA faces challenges in collecting and managing its internally generated revenue. Without a comprehensive system for tracking and managing IGR, the local government struggles with inefficiencies, revenue leakage, and poor financial planning. An AIS could provide the necessary tools for better management, improving revenue generation and ensuring that funds are properly allocated and utilized.
Aim and Objectives of the Study
Aim: To examine the effect of Accounting Information Systems on improving the collection and management of internally generated revenue in Ningi Local Government Area.
Objectives:
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To evaluate how AIS impacts the efficiency of IGR collection in Ningi.
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To assess the effect of AIS on financial reporting and accountability regarding IGR.
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To identify challenges in implementing AIS for IGR management and suggest recommendations.
Research Questions
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How does the implementation of AIS affect the collection and management of internally generated revenue in Ningi?
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What is the impact of AIS on financial reporting and accountability in relation to IGR?
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What are the challenges faced in adopting AIS for IGR management in Ningi?
Research Hypothesis
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H₀: The use of AIS does not significantly improve the collection and management of IGR in Ningi LGA.
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H₀: AIS does not significantly affect financial accountability and reporting in the management of IGR.
Significance of the Study
This study will provide valuable insights into the role of AIS in improving the collection, management, and transparency of internally generated revenue. It will help local government officials and policymakers understand how technology can enhance financial accountability and improve IGR management.
Scope and Limitation of the Study
The study will focus on Ningi LGA’s use of AIS in managing IGR. Limitations may include difficulty in accessing financial records and data due to privacy concerns or resistance to change from staff.
Definition of Terms
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Internally Generated Revenue (IGR): The revenue generated by a local government from its own sources, such as taxes, fees, and charges.
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Accounting Information System (AIS): A system used to collect, process, and report financial data for decision-making and financial management purposes.
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