The Impact Of Financial Management On The Development Of Local Government Council
The research work evaluates, “The impact of financial management on the development of local government council”. The study aims at determining the extent to which management and staff are involved in the development effort and the extent to which financial management has contributed to the overall performance of the organisation.
The research was carried out by administering questionnaires and interviewing the management and staff of Eti-Osa local government council. It was revealed that organisation with success edge are those who place high premium on achieving excellence in people.
It is therefore concluded that the impact of financial management on the development of local government council is actually worthwhile. Hence, for organisation to survive in the highly competitive global world, recommendation of this study which proposes a potent option at achieving corporation excellence is certainly a step in the right direction.
1.1 Background of the Study
Financial management is the managerial activity which is concerned with planning and controlling of financial resources. When related to local government, it is sourcing which involves revenue generation and disbursement which focuses on expenditure pattern.
In local government the objectives of financial management are in consonance with these component stressed.
Financial management tends to be beneficial only when activities are properly planned and executed. It is a whole system to the extent that when a unit of it is defective, the whole structure becomes defective . This means that the finance of an organisation must be handled with care and must be disbursed according to financial regulations and this peculiar activity is done in the treasury of a local government.
Treasuring is the ultimate repository of financial records and the treasurer being the financial adviser of the council is trained in financial reporting in order to furnish comprehensive and well researched report to aid decision making and effective management and control of the finances of a local government.
The impact of financial management on the development of local government council is the overriding factor in council financial management is the operation of financial services in a competitive and cost effective manner. To the public, as long a local government is not discharging it’s duties as expected it means the local government and it’s officials are corrupt.
The impact of financial management on the development of local government council will not let citizenry has the impression that every revenue generated by a local government goes into private pockets. The task of prudent and efficiency management of resources can only be ignored at the risk of community dissatisfaction and disaffection. First, it is necessary to known the workings in a local government starting with revenue generation and how revenue generated is disbursed.
1.1 Statement of Problem
There are consistent complaints from people dealing with the Eti-Osa local government council that embezzlement and lack of control and development have been the cause of the ineffective performance of the local council and also the problem in receiving their claims from the council.
The problems relating to the council are:
- How do independence staff handle numerous and vital duties of revenue collections.
- Why are those training opportunities for key treasury staff.
- To what extent does the treasurer perform his duties.
- To what extent has his advices been ignored.
- To what extent has his non-performance contributed to the failures of a local government in programmes execution.
- Does he have to be blamed solely for laxities in financial management and development in local government.
All these and more question need to be answered to be able to properly appraised financial management in local government.
1.2 Purpose of Study
This research project is basically to study of the impact of financial management on the development of local government council with emphasis on Eti-Osa local government. The local government council of Eti- Osa performs her activities through the following departments.
- Finance department
- Personnel management department
- Planning and budget department
- Works and housing department
- Agricultural and rural development department
- Health and environmental development department.
- Education on department.
These are headed by the head of department (HOD) each of whom- report directly to the secretary to the local government or chairman.
The major activities performed by Eti-Osa local government council are:
- The formation of economic plan and development schemes for the local government area.
- Collection of rates ad issuance of radio and television licence.
- Naming of roads and streets and numbering of houses.
- Provision and maintenance of public conveniences, sewage and refuse disposal.
- Establishment and maintenance of cemeteries, burial grounds.
- Licensing of bicycles, truks, canoes and wheel barrows.
- Construction and maintenance of roads, street lights, Gardens, Oba’s Palace Open Spaces or such public facilities.
1.3 Statement of Hypothesis
For the purpose of this research work, the hypothesis will be based on null and alternative hypothesis.
1. Null hypothesis: Ho: β= O
Financial management has no significant impact on the development of the local government council.
2. Alternative hypothesis HA β =O
Financial management has significant impact on the development of the local government council.
1.4 Research Question
- What are the available sources of fund of local government council apart from the major grants and allocation from the federal government.
- Are there any other means through which these funds could be raised.
- How can this fund be utilized effectively to enhance the standard of living of those in Eti-Osa local government?
1.5 Significance of the Study
Having identified various functions related to the finance and accounting system by different department of the local government council in study (Eti-Osa Local Government), one is obviously left in no doubt of the fact that the importance of this topic could help us to draw out meaningful advantages. In this regards, some importance could be summarised as follows:
- It would enable the researcher to write out the final analysis, a comprehensive study leading into the finalisation of the topic.
- It deals with how financial resources could be managed by the management in charge of these resources so as to achieve the local government goals and objectives.
- It provide the necessary avenue for management to know what and what are those things to be carried out in increasing the revenue stand of the local government council and what projects that will yield maximum revenue (financing and investment decision).
1.6 Scope of Limitation
The scope of the study is to make a review the trend in accounting policies, investment decision, financing decision and development as it affects the financial management in Eti-Osa local government and its prospects in accounting professions. Also, the scope will be extended to financial management existing in accounting records and procedure audit and control management.
The basic limitation of the study is time constraint which slightly affects the study, but in spite of these limitations, I have tried to present unbiased and constructive project.
1.7 Definition of Terms
This is analysis of financial statement. It can also be referred to as the breaking down of figures and subsequently expression of such figures in relation to the other, for the purpose of comparision.
An investor is being referred to as a person or an organisation who invest money in something or in a business.
These are the people who runs and controls a business or similar organisation
This form an opinion of the amount a value of something after thinking about if carefully.
Summary Conclusion and Recommendation
This chapter of the study is set aside to determine summarized the descriptive analysis done in the precious chapters. It also gives the conclusion and makes some recommendation.
In the summary the purpose of this study was to examine the impact of financial management on the development of local government council. Specifically the study discussed the the available sources of fund of local government council apart from the major grants and allocation from the federal government, emphasized on the other means through which these funds could be raised and, suggested on how this funds be utilized effectively to enhance the standard of living of those in Eti-Osa local government.
In order to carry out this study research questions formulated to guard the investigation. A total of77 management and staff of Eti-Osa local government council were randomly selected as enrolled participants for the survey. The study was anchored on the modern theory, and the classical theory.
In the conclusion the study is beyond doubt and abundantly clear that financial management in LGAreas is very important.
From results obtained and analyzed, the study reveals that:
- The available sources of fund of local government council apart from the major grants and allocation from the federal government include:
- Property taxes and
- Individual income taxes
- The was this funds be utilized effectively to enhance the standard of living of those in Eti-Osa local government include:
- By investing in small scale businesses.
- By investing in education
- Empowerment of the people and
- Embarking on infrastructures that can improve lives
Recommendation on the basis of findings. The researcher made the following recommendation with the belief that when studied and applied, would help to improve the standard already at hand. The researcher recommends that:
- The staff of the council should be adequately motivated to detach their mind from any corrupt practices.
- Training and re-training programmes and seminars should be organized periodically for the members and staff of the council to increase their moral and ensure efficiency and effectiveness in doing their work.
- There should be adequate sensitization through workshops, seminars and lectures on the need for transparency and accountability in the government system.
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