EVALUATION OF COMPLIANCE LEVEL WITH LOCAL GOVERNMENT FINANCIAL REGULATIONS
- Project Research
- 1-5 Chapters
- Quantitative
- Mean and Standard Deviation
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
Background of the Study
The value of any local government is measured by the quality and quantity of services it provides to its constituents. Local governments are Nigeria's third-tier administrative structure, established to bring government closer to the people at the grassroots and provide social services. Local government, according to Agi (2002), is a political authority established by the federal government as a subordinate authority for the aim of distributing or decentralising political power. Local government, according to Akpan (2005), is a separate tier of administration that has certain fair amounts of autonomy, with elected representatives as officials, particularly in a democracy. Local government is therefore a political unit of a nation that is established by law and has sub-national jurisdiction over local matters, including the authority to levy taxes or compel labour for specified objectives. According to Oguonu (2004), the performance and effectiveness of local government are primarily determined by the financial resources available to particular local governments and how these funds are used by local government administrators throughout administration.
Administration encompasses nearly every aspect of cooperative action. As a result, several interpretations have been assigned to the idea of administration. Administration, according to Johnson (2009), is concerned with the formulation of company policy, the coordination of finance, and the practical performance of ordinary office chores, which are often internal and reactive rather than proactive. Administrators in local government administration are those charged with managing both human and material resources in order to enhance the people's standard of living. Local government administration is concerned with information collecting, processing, and communication. among the
The utilisation and control of the local government administration's financial resources is one of its primary tasks. All members of staff share responsibility for the administration of local government budgets. The revenue officer, treasurer, internal auditor, and accountants are the primary people in the management of financial resources in local government administration, according to the model financial rules (2009). A revenue officer is someone who collects money for the local government, such as taxes and dues. They must ensure revenue collection and continue to account for and deliver revenue to the local government treasurer in compliance with financial memoranda and other current financial laws. A revenue officer's responsibility is to collect all sums due to the local government promptly, to keep such books of account and other records prescribed by these financial memoranda and the treasurer as are required to ensure that all revenue and other monies due to the local government and for which the revenue officer is responsible are collected in full. The revenue officer is to record all revenue receipts and payments to the treasury or a bank in a revenue collector's cash book, to safeguard all revenue collected by placing it in the safe or cash tank provided by the local government, and to keep all his revenue earning books in a lock and key when not in use. The revenue officer is also responsible for paying all revenue collected for the local government to the treasury or bank at the intervals prescribed by the local government, presenting all of his revenue earning books, accounts books, and cash to the person responsible for checking his accounts when required to do so, and submitting used, partly used, and unused revenue earning books, licence books, and relevant documents to the treasury once a month or at such lesser intervals as the local government may specify.
The treasurer is the principal accounting officer and the head of the local government's financial department. The treasurer, as the principal finance adviser to the local government, should attend executive committee and other committee meetings to offer advice on the financial consequences of proposed policies, the status of the local government's finances, and financial affairs in general. The treasurer is in charge of the administrative control of the local government's finance department; performing duties as chief accounts officer of the local government's receipts and payments; in charge of budgetary control and supervising the accounts of all departments of the local government; preparing and publishing monthly and annual financial statements of the local government; and being a signatory to all local government cheques, vouchers, and other contrac The treasurer is also in charge of ensuring that the financial memoranda are strictly followed in the finance and other departments of the local government. All financial administrators' orders for the spending of public funds are written, and no payments are made unless duly approved. All accounting books, records, vouchers, cash, and securities are supplied for check or audit, as needed by the internal auditor.
An internal auditor is a local government officer who is in charge of performing internal audits of a local government's financial management. The auditor is responsible for doing a thorough and ongoing audit of the accounts and records of income, spending, plant, allocated and unallocated stocks, as appropriate. The internal auditor is responsible for performing an independent appraisal of the local government's accounting, financial, and other processes with the following goals: to aid in the protection of the local government's assets and interests by conducting a continuous examination of activities in order to detect fraud, misappropriation, irregular expenditure, and losses due to waste extravagance and maladministration; to ensure the continued maintenance of It is also the internal auditor's responsibility to oversee the use of resources in the pursuit of the local government's set objectives and to guarantee that local government accounts are reconciled by accountants.
Accountants are critical to local government financial management. Accountants' major task is to closely manage accounts payable and receivable. They are in charge of the daily bank and local government account reconciliation. They are also responsible for ensuring that all monthly transactions are appropriately documented, as well as assisting financial analysts with updating revenue tracking sheets and processing loyalty. Accountants also participate in monthly, quarterly, and annual accounting cycles, as well as prepare monthly financial statements. Accountants are not authorised to sign any local government account. The financial administration is involved in financial issues and is particularly concerned with ensuring that sufficient value for money spent is gained within their scope of operations and responsibilities. Article one, section one
According to the amended financial conventions (1991), it is the responsibility of the primary staff to approve, discuss, and, if necessary, change the yearly budget of the local government, subject to the Chairman's veto, which may be overruled by a two-thirds majority of the council. It is also the job of financial professionals to oversee the implementation of projects and programmes in the yearly budgets of local governments to guarantee compliance with requirements of financial conventions in the local government for better accountability to residents.
Accountability in the local government system refers to the requirement put on administrators by financial rules to preserve correct records of financial resources, papers, property, and funds. Local government financial resources have grown in recent years, from N32.7 billion in 1999 to N69 billion in 2013. This rise in local government finances, along with the predicted increase in activity, has heightened calls for more accountability. Local government financial managers who oversee financed activities appear to seldom provide appropriate and timely reports of their stewardship to neither the local government authority nor the broader public. To access the performance of individuals entrusted with public resources, the public requires credible and intelligible reports of account. Money is obviously required for the council to provide significant services, such as road restoration, building, and maintenance, the creation of job possibilities for the people, and the timely payment of employee wages. As a result, in order for local government areas to exercise their constitutional tasks successfully and efficiently, they must not only be adequately supported, but also prudently used and accounted for. This indicates that effective administration and accountability are required for local government regions to function well.
Government financial regulations are a set of rules designed to ensure the integrity and accountability of government spending and fund use. The regulations govern the creation of bank accounts, the issuance of checks, and the collecting of income. The roles and responsibilities of government finance officials are defined by financial rules. Financial authorities are the legal entities that empower and advise all government employees in carrying out financial transactions. The receiving, custody, and accounting for government revenue; the acquisition, custody, and usage of government stocks and assets; and the disbursement of monies from significant government funds are examples of such financial activities. These measures are included into financial rules. The processes are included in the 1991 amended financial memorandum for local governments in Nigeria. The Financial Memorandum requires the development and prudent administration of finances for the benefit of all communities within the jurisdiction of a local government. Government financial regulations are provided in the following areas, according to the Federal Republic of Nigeria (2009): financial estimate, expenditure classification and control, standardisation and accounting procedures, payments procedure, bank accounts and cheques, cash book and monthly accounts, custody of public moneys, stamps, security, financial management and control.
The financial estimate is a declaration of the government's objectives, including those of local governments, in financial terms for the fiscal year. It is the one-year operating plan of the municipal government. Local government actions must be carried out within a budgetary framework. Financial estimations standards have been designed to encompass the planning and control of corporate funds in order to achieve specified goals.
The practise of comparing actual outcomes to budgeted or intended results and reporting on the differences is known as budgetary control. Budgetary control is concerned with the establishment of responsibilities with set targets to achieve, and at the end of the day comparing actual achievement with set target with the goal of putting corrective measures in place to ensure that the actual results achieved are in conformity with the planned or budgeted results. The following are the objectives of the local government estimates or budget: to provide a financial plan of action; to provide legal authority for incurring expenditure; to provide a mechanism for ensuring adequate controls over expenditure and revenue; and to establish the financial position of the local government by auditors and a basis for measuring performance against plans. The financial estimations serve as the foundation for the auditing process or activity.
Auditing is the collecting and examination of evidence pertaining to the veracity of a statement of performance or the conduct of an agent in his stewardship to the principal. Similarly, Akpakpan (2002) defines auditing as "the independent review of an organization's financial statements with the intent of providing a judgement as to whether these accounts present a true and fair picture and conform with the relevant legislation." Auditing, or audit opinion, is a method for encouraging financial discipline in order to promote grassroots development. A municipal government's audit authority oversees operations such as tax collection, income sources, and expenditures.
Revenue collection procedures, as stated in the 2009 model financial memorandum for local government, are standards that outline how funds are collected and used for adequate accountability. Adams (2004) defined revenue as the fund that the government needs to support its operations. These monies come from a variety of sources, including taxes, loans, fines, and fees. It is also defined as the entire amount of money received by an organisation (public or private) over a given time period. According to Bhartia (2009), income collection in local government occurs both internally and outside. Internally collected revenues are those produced inside the state from a variety of sources, including taxes (pay as you earn, direct assessment, capital gains taxes, and others) and motor vehicle licenses, among others. The external source is the statutory allocation from the federation account and Value Added Tax (VAT). Taxation is the primary source of revenue production and collection in Nigerian local governments.
Taxation is an internal source of revenue for government, particularly at the local level. Its collection and delivery to the government is mostly dependent on the government itself. Taxation has been defined in a variety of ways, but for the purposes of this study, it will be defined as a mandatory levy imposed on a subject or his property by the government having authority over his property through its agencies with the goal of providing, maintaining, and improving social facilities in communities at large. Tax revenues are invested or used for local government costs such as personnel wages, road maintenance and building, among other things. The income collected or generated by the local government are utilised for a variety of government expenses.
According to Appah(2009), the spending system includes the operational procedures for making payments on items purchased and services supplied. Local government expenditures in Nigeria are made utilising a number of techniques. These include book changes, check issuing, cash, and other payment mechanisms. The payment processes are defined in the 2009 Federal Republic of Nigeria Financial Regulations to advise local government administrators on how to pay for items acquired and services delivered. According to Akpan (2002), most local government financial administrators use government funds unilaterally and without regard for the guidelines set in government financial rules. This unusually allows for misuse of revenues and insufficient supply and upkeep of key social facilities. According to Wuam and Ngarka (2010), local government finance managers seldom follow financial standards while processing payments, resulting in misleading financial statements.
According to Ofoegbu (2003), financial statements are the ultimate result of all financial transactions and records of a business at the conclusion of each fiscal period. Financial statements are crucial tools for illustrating how the public or private sector performs its financial management obligations. Financial statements are intended to offer an accurate and fair picture of an entity's financial performance, financial position, equity, and cash flows. As such, they are critical tools for proving how the public and private sectors satisfy their financial management obligations. The information included in financial statements is a precious asset that must be maintained and preserved. Financial statements are crucial proof that a certain transaction occurred or a specific decision was taken. Financial statements support all company operations and are essential for assessing policies and programs, as well as analysing individual and organisational performance.
Government cannot administer justice and manage local government resources, revenue, and civil service without reliable financial statements. According to Udoayang (2001), local governments cannot deliver services such as education and health care to the masses and cannot be held accountable for the decisions and actions taken during the administration process without accurate and reliable financial statements and effective systems to manage the financial statements.
The effective management and control of a country's public funds is at the heart of its government administration. Government administration must follow the rules and regulations that have been established. According to Salawu (2005), despite the functions outlined in the government financial regulation, the local government has been unable to fully comply with the regulation over the years. Several problems, such as fraud and misappropriation of money, lax institutional controls, a high prevalence of tax evasion, and a lack of foresight on the part of local government officials, all work against full compliance with these requirements. Furthermore, Obasanjo (2001) stated that all of the elements that improve efficiency, reliability, and continuity of the system have been tampered with, resulting in significant and severe setbacks for the administration of local government. According to the author, public monies are dispersed unlawfully and without regard for financial norms. The author went on to say that government enterprises are run as if no laws or standards exist to control how and where public dollars are spent. On this point, the study intends to establish the amount of compliance with government financial norms in Enugu State local government administration.
Related Project Materials
DETERMINATION OF OPTIMUM PACKAGING AND STORAGE PROPERTIES OF PACKAGED GARRI
ABSTRACT
This study was on the determination of optimum packaging and storage properties of packaged ga...
SOCIAL MEDIA AND THE MANAGEMENT OF COVID-19 INFORMATION IN PORT HARCOURT
ABSTRACT
This study was carried out on social media and the management of covid-19 information in Port Harcourt, Rivers...
THE EFFECT OF EXCHANGE RATE POLICIES ON THE NIGERIAN MANUFACTURING SECTOR AN EMPIRICAL ANALYSIS
BACKGROUND OF THE STUDY
The survival of any economy depends on the composition of the manufacturing sector that operates...
EFFECT OF WOOD SMOKE (BIOMASS) ON SOME LUNG FUNCTION TESTS, CARDIOVASCULAR PARAMETERS AND HAEMATOLOGICAL INDICES OF WOMEN IN ZARIA, NIGERIA
ABSTRACT
Wood smoke is a complex mixture of substance produced during the combustion of wood. The major emissions from wood stoves are ca...
THE IMPACT OF CRISIS MANAGEMENT POLICIES ON ORGANIZATIONAL RESILIENCE
Abstract: THE IMPACT OF CRISIS MANAGEMENT POLICIES ON ORGANIZATIONAL RESILIENCE
This r...
THE IMPACT OF EARLY CHILDHOOD EDUCATION ON PARENTING STYLES AND PRACTICES
Abstract: This study examines the impact of early childhood education (ECE) on parenting styles and practice...
CAUSES AND EFFECT AND SOLUTION TO INFLATION IN NIGERIA
Abstract
The study examines the impact of inflation on economic growth of Nigeria. Other micro economic variable tested...
THE EFFECT OF TRADITIONAL MEDIA AND COMMUNICATION ON RURAL DEVELOPMENT OF NIGERIA
ABSTRACT
The study is a critical examination of the effect of traditional media and communication on rural developme...
GOVERNMENTS OWNERSHIP AND ITS IMPACT ON MEDIA OBJECTIVITY
Background Of The Study
The mass media are particularly significant tools of communication since they a...
INNOVATIONS IN ADAPTIVE LEARNING TECHNOLOGIES FOR VOCATIONAL STUDENTS
Abstract: Adaptive learning technologies are revolutionizing vocational education by person...
