Computerized Accounting System And Financial Management Of Local Government Administration In Nigeria

Project and Seminar Material for Accountancy / Accounting

Computerized Accounting System And Financial Management Of Local Government Administration In Nigeria


Abstract


This study was carried out to examine on computerized accounting system and financial management of local government administration in Nigeria using Oshogbo LGA, Osun State as a case study. The study is was specifically set to investigate the extent at which Local government adopts computerized accounting systems, ascertain if the accounting system allow for the preparation of financial statements that reflect the true financial position of local government and determine whether utilization of computerized accounting system significantly aid in financial management of local government in Nigeria. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of civil servants in Oshogbo LGA, Osun State. In determining the sample size, the researcher conveniently selected 57 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, The hypotheses was tested using Chi-square Statistical tool. The result of the findings reveals that the accounting system allows for the preparation of financial statements that reflect the true financial position of local government. Furthermore, the result of the findings reveals that utilization of computerized accounting system significantly aid in financial management of local government in Nigeria. Therefore, it is recommended that the local government should prepare accurate and reliable budget are prepared with good budget monitoring and budget plan, for effective implementation and enhancement of good financial management. To mention but a few.


Table of Content


  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses
  • 4.5 Discussion of Findings

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

All over the world, government adopts various strategies and approach for good governance at the grassroots level. The government at the grassroots is called local government. Local government exist through the process of democratisation and full participation of citizens at the grassroots level in decision making. Its establishment is to serve two purposes, firstly, as administrative body for providing goods and services for the need of the citizens within the locality. Secondly, as a democratic set-up for full representation of community members in decision making at the local government level. Local government plays a vital role in socioeconomic development of the grassroots, either rural or urban setting. It is the government that is closest to the grassroots by making governance and service delivery available to citizens at the community level. It also aid the development of the grassroots administratively and politically. According to Sikander (2015), social, political or economic development becomes meaningful and real when it comes from the grassroots which is the lowest society’s level. Mbieli (2018) stated that no nation can be termed developed when its villages are lagging behind and its cities going ultra-modern. It is the local government that balance the equations between the cities and the villages through developmental programmes in order to achieve public policies. Globally, government has pursued various form of public financial management reforms to enhance local government performance in areas of accountability, transparency, rules of law compliance and service delivery to the generality of the citizens within the community. Finance is the fuel of any form of administration, either private or public. At the local government level, it constitutes the lubricants for the wheel of good administration. According to Aborishade and Marshall (1981) cited in Hassan (2011), finance is a thread that runs round the cloth, if the thread is pulled wrongly at one end, it will affect the design of the cloth and destroy its beauty. Therefore, finance in any organization must be handled with care and must be disbursed according to laid down rules and regulations. A sound financial administration is the core of good efficient, effective and equity which are the guiding principles of financial management. Efficiency is the ability to achieve maximum results at minimize cost, effectiveness deals with expenditure relevance in meeting the management objectives, while equity ensures justice and fair play in all management activities. The overriding factor in local government financial management is the basic operation of financial services in a competitive, efficient and cost effective manner. Besides, the efficient management of local government finances is constrained by the political impunity of state governors and this has undermined grassroots developments (Otinche, 2014). Financial administration which is the crux of financial management is the art and science of financial planning, coordinating, organising andevaluating of local government financial resources in order to achieve the best objectives, goals and performance targets. The objective of financial management in Local Government aligns with the three components highlighted above. Olowe (2011) defined financial management as the management of business finance in order to achieve business or organisation objectives. The word management connotes planning, coordinating, controlling and monitoring organizational financial resources. At the Local Government level, financial management is the appropriate steps taking to ensure proper revenues generation and further utilisation of such financial resources in line with Local Government objectives, goals and citizen’s expectation.

In Nigeria, the major challenge to local government administration is funds, this has dwindle over times due to economic depression and financial melt-down while in the recent time, this has been aggravated by the event of COVID-19 pandemic that occurred all over the world. This financial meltdown has contributed to the low space of growth and development in local government in areas of socio-economic developments and provision of viable developmental projects. The number of abandon projects in local government due to lack of funds because of mismanagement, misallocation and inefficient uses of funds is enormous, thereby jeopardising the well-being of the citizens within the locality. This poor financial management approach has contributed to the basic failure and inefficiency of some local government in achieving substantial development of their locality, while in recent times, this had led to lack of trust, faith and confidence in local government administration. Besides, the persistent hijack and control of local government statutory allocation and financial resources by some state governors, has also negatively affects the performance of these local governments in carrying out their constitutional responsibilities. The introduction of state joint local government account has reduced the power of financial autonomy and strength to advanced sustainable development at the grassroots. In some instances, joint account is used to compel local government to engage in joint project(s) with little or no relevance to the citizens within the local government or projects that is outside the immediate needs of that locality.

Wada and Aminu (2014) opined that state and local government joint account allocation committee coupled with much supervision of various ministries and agencies have made the financial autonomy of local government a mirage. At present, most local governments faces the problems of wide gap between citizens’ needs in their locality and the financial resources required for meeting such needs or demands. This gap occurred at times due to population increases; misallocation of functions and revenues; the high cost of standard of service required in areas such as education, health, environment, water infrastructure and others; leakages in internally generated revenues through pilferages, corruption and lack of will of revenue officers; and inefficient machineries to produce and deliver good public goods and services.As a key players in the provision of fundamental basic public services delivery, most local government in developing countries, faces rapid and chaotic urbanization due to impacts of frequent natural disasters caused by climate change (UN-Habitat, 2015). Also, there has been high level of negative perception of financial management in local governments.

This at time, due to inadequate internal control system to checkmate the excessive fraudulent activities on revenue collections and insertion of ghost employees’ names in the local government payroll system, this has resulted in loss and leakages of funds which is tailored towards mismanagement and corruption pertaining to local government administrations. This has resulted into local government failure in its responsibility of meeting citizens’ demands in the provision of public goods and services. Local Government needs to plan to ensure that enough financial resources are available at all time in order to meet the needs of the Local Government expenditure in achieving the set goals and objectives. Good financial management enhances an effective management and functioning of local government administration.


1.2 Statement of the Problem

Various accounting system is being used by different organizations or firms to speculate and analyse their financial statue. However, for an organization to know the system of accounting they will adopt depends on the kind of transaction/business or activities such organization engaged Nigeria my country (Ironkwe, & Muenee,2016). The problem of adopting a particular accounting system especially among the various local governments in the states, has always been taken into consideration to ensure good control and efficient management of government operation. To a reasonable and considerable extent. This has been achieved, but due to the complex system of our local government accounting, there has been some set back.

According to Akinsulire(2019) many scholars have criticized Nigeria local government accounting system following the inherent weakness associated to local government administration and abnormality in the treatment of expenses and other items, e.g. treatment of capital expenditure as revenue expenditure. Other abnormalities include the addition of cash basic of accounting instead of the rational accrual basis, which is easier and convenient to operate. Others include inappropriate description of accounting terms haphazard and wrong classification of balance items or what is known as the statement of affairs in the local government. The aforementioned abnormalities render the financial statement of the local government greatly misleading. Such financial statements hide the inefficiencies of the people under whose custody the resources of the local government were entrustedthus requiring a study of this nature to critically examine computerized accounting system and financial management of Local Government Administration In Nigeria.


1.3 Objective of the Study

The broad objective of this study is to examine computerized accounting system and financial management of Local Government Administration In Nigeria.

Other specific objectives includes:

  1. To investigate the extent at which Local government adopts computerized accounting systems.
  2. To ascertain if the accounting system allow for the preparation of financial statements that reflect the true financial position of local government.
  3. To determine whether utilization of computerized accounting system significantly aid in financial management of local government in Nigeria.

1.4 Research Questions

  1. What is the extent at which Local government adopts computerized accounting systems?
  2. Does the accounting system allow for the preparation of financial statements that reflect the true financial position of local government?
  3. Does utilization of computerized accounting system significantly aid in financial management of local government in Nigeria?

1.5 Research Hypothesis

  • Ho: Utilization of computerized accounting system does not significantly aid in financial management of local government in Nigeria.
  • Ha: Utilization of computerized accounting system significantly aid in financial management of local government in Nigeria.

1.6 Significance of the Study

Findings of the study will be of immense significance to the staff of Oshogbo LGA, Osun State. It will go a long way in enlightening them on the concept of public sector accounting as well as the best strategies to be adopted to monitor its generated funds. This research work will as well be of benefit to students and researchers because it will widen their scope from the information contained in this research work and lastly, it will help the entire nation in modifying the methods and approaches used by different ministries, parastatal and other inter-ministerial departments in their financial control system and also it will help them in improving revenue generations and minimizes expenditures since public sector is differentiate able from private sector or bodies.


1.7 Scope of the Study

The scope of this study borders on examine computerized accounting system and financial management of Local Government Administration In Nigeria. It will determine the challenges and inadequacies associated to Local government accounting system and as well investigate the mechanisms that can promote effective computerized accounting system using Oshogbo LGA, Osun State.


1.7 Limitation of the Study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing to the nature of the discourse thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. Additionally, the researcher will simultaneously engage in this study with other academic work. More so, the choice of the sample size was limited as few civil servant in the Oshogbo LGA, Osun State were selected to answer the research instrument hence cannot be generalize to other Local Government outside that region. However, despite the constraint encountered during the research, all factors were downplayed in other to give the best and make the research successful.


1.8 Definition of Terms

Local Government:

Local government is a generic term for the lowest tiers of public administration within a particular sovereign state.

Accounting System:

An accounting system is a set of accounting processes with integrated procedures and controls.

Accounting:

Accounting may be defined as the collection, compilation and systematic recording of business transactions in terms of money, the preparation of financial reports, the analysis and interpretation of these reports and the use of these reports for the information and guidance of management

Public Sector Accounting:

Public Sector Accounting is the systematic process of recording, communicating, summarizing, analyzing and interpreting the financial statements and statistics of Government in aggregate and details.


1.10 Organizations of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on computerized accounting system and financial management of local government administration in Nigeria using Oshogbo LGA, Osun State as a case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was to examine on computerized accounting system and financial management of local government administration in Nigeria using Oshogbo LGA, Osun State as a case study. The study was specifically carried out to investigate the extent at which Local government adopts computerized accounting systems, ascertain if the accounting system allow for the preparation of financial statements that reflect the true financial position of local government and determine whether utilization of computerized accounting system significantly aid in financial management of local government in Nigeria.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent were civil servants in Oshogbo LGA, Osun State.


5.3 Conclusions

Based on the findings of this study, the researcher concluded that;

  1. The extent at which Local government adopts computerized accounting systems is high.
  2. The accounting system allows for the preparation of financial statements that reflect the true financial position of local government.
  3. Utilization of computerized accounting system significantly aid in financial management of local government in Nigeria.

5.4 Recommendation

Based on the responses obtained, the researcher proffers the following recommendations:

  1. Financial planning and control should be seen as an important aspect for effective financial management.
  2. Financial adviser (Council treasurer) should ensure adequate revenues are achieved for meeting the expected expenditure of the local government.
  3. The local government should prepare accurate and reliable budget are prepared with good budget monitoring and budget plan, for effective implementation and enhancement of good financial management.
  4. Good and sound internal control mechanism should be put in place to minimize fraud and wastages in financial resources and also to enhance performance in the provision of public goods and services.
  5. Local government should have full financial and administrative autonomy by stopping of state joint local government allocation account in order to forestall financial resources and administrative independence.
  6. Independent National Electoral Commission (INEC) should be in charge of conducting local government election, this is to guide against imposition by state governor that breed financial impropriety, indiscipline, corruption, and inefficiency in the administration of local government affairs.
  7. Due process mechanism should be adopted in the procurement and award of contract at local government level.
  8. The accounting system should be improved upon to assist management to plan operations, keep track of resources, enhance decision making and ensure proper accountability.
  9. The finance of local government should be tightened with appropriate measures in minimizing loss of council’s fund.

Project Material Download

6,000 Naira

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…


Step One Purchase

Make Payment (Through Transfer) of ₦6,500 to Any of the Account Below

Access Bank PlcAcc No: 0811003731
Samphina Academy
Current Account
Zenith BankAcc No: 1225513212
Samphina Academy
Current Account

Or CLICK HERE To Pay With Debit Card


FOR STUDENTS OUTSIDE NIGERIA
CLICK HERE To Purchase Material ($25)
FOR GHANIAN STUDENTS
Make Payment of 200 GHS to 0553978005 | Douglas Cloud Osabutey | MTN MoMo

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details

  2. TOPIC: Computerized Accounting System And Financial Management Of Local Government Administration In Nigeria

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply


  Contact Our Help Desk


Need a Different Topic? Perform a Quick Search



List of Related Works

Click on Any Topic to Preview the Content

samphina.academy

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.