A Social Accounting As A Method Of Assessing The Impact

Of Development Activations (A Case Study Of Nukes Local

Government Area Enugu State)

TABLE OF CONTENT
TITLE PAGE

CERTIFICATION

ii

DEDICATION
iii
ACKNOWLEDGMENT
ABSTRACT
PROPOSAL
TABLE OF CONTENT

CHAPTER ONE:
INTRODUCTION
I. I

AN OVERVIEW

I.2

STATEMENT OF PROBLEM

I.3

HYPOTHESIS

I.4

OBJECTIVES OF STUDY

I.5

SIGNIFICANCE OF STUDY

I.6

LIMITATION OF STUDY

I.7

DEFINITION OF TERMS

CHAPTER TWO:
LITERATURE REVIEW
2.1

GOVERNMENT ACCOUNTING

2.2

LOCAL GOVERNMENT ACCOUNTING

2.3

STATUTURY

BASE

OF

LOCAL

GOVERNMENT

FINANCE IN NIGERIA
2.4

FUNCTIONS OF LOCAL GOVERNMENT

2.5

SOURCES OF LOCAL GOVERNMENT REVENUE

2.6

LOCAL GOVERNMENT EXPENDITURE

2.7

MANAGEMENT

GOVERNMENT
FINANCE.

OF

CONTROL

OF

LOCAL

CHAPTER THREE:
RESEARCH METHODOLOGY
3.1

METHODOLOGY

3.2

SOURCES OF DATA

3.3

POPULATION DEFINITION

3.4

STATISTICAL DETERMINATION OF SAMPLE SIZE

3.5

METHOD OF DATA PRESNTATION

3.6

DATA ANALYSIS

3.7

DECISION RULE

3.8

OPERATION ASSUMPTION

CHAPTER FOUR
4.0

DATA PRESENTATION AND ANALYSIS

4.1

QUESTIONNAIRE DISTRIBUTIONAND RESPONSE

4.2

DATA ANALYYSIS AND STAIEMENT OF HYPOTHESIS

CHAPTER FIVE
5.0

RESEARCH

FINDINGS,

CONCIUSION
5.1

SUMMARY OF FINDINGS

5.2

RECOMMENDATIONS

5.3

CONCLUSION

BIBLIOGRAPHIES:

RECOMMENDATION

AND

CHAPTER ONE
INTRODUCTION
In Nigeria, there are three tiers in public administration: the
central (federal) government, state governments and local
governments. This project is devoted to the examination of local
governments accounts, and the development of financial
management with their departments. It is therefore pertinent at
this point to mention that the local government is the third tier of
government in Nigeria

Local governments in Nigeria derive their existence form the

constitution of the federal Republic of Nigeria (promulgation).
Decree No 45 of 1989 has brought about a new awekening
public sector virile, dynamic, result and development oriented. At
present,

with

aeration

of

more

177

local

government

expenditure, the total number of local government in Nigeria has

therefore increased to 1776. One would then guess what effects

will it have even before that, like since 1979, there has been a
significant rise in local government expenditure in line with
greater emphasis on grass root participation. Fore in stance,
1992 when compete political, admmistrative and

financial

independence were granted to the local government form state

control, its responsibility was enlarged. With effect form 1992,
local government has been directly responsible for primary heath
care; this is in addition to its statutory functions.

Johnson (1992) said that, though virtually all developed

countries have a system of local government, some system
involve considerable local antinomy while others involve lee on a
spectrum, the Nigeria system problem involves less rather than
more antinomy. Then the question and answer are important as
they reflect the type of financial and
required.

accounting framework

Sharpe (11980) noted that the participatory value, if not the

liberty, value, still remains as a valid one for modern local
government .Not perhaps in the full glory of its early pedometers
but as an important element in a modern democracy
nonetheless. But as a co-ordinate of service in the field; as a
reconciler of community options; as a consumer peruse group as
an agent to responding to rising demand; and finally as a country
weight to incipient syndicalism, local government seems to have
come into its own
The following point were listed in local government favor by the
lay field committer (1976)
(a)

It providers democracy.

(b)

It acts as a counter weight to the uniformity inherent in

government decision. It spreads political power.

(C)

It embraces accountability because it brings those

responsible for decision close to their electros.

(d)

It is efficient because services can be adjusted in local

needs and preferences, and because response can be
more democratized.

(e)

Central government would be over loaded by more

functions.
(f)

It provides a velricle for formulating new policies and

pioneering ideas.

As a result of increase in the responsibilities and the fantastic

expenditure associated with them, it is vital that the local
government expend their sources of revenues beyond the
present level. They would endeavour to tap all the potential
resources so as to see their revenue based fureti fied any
improvement to this effect will be welcome as it would give the
local government an added impetus in discharging its statutory
function

and

inhabitants

socio-economic

advancement

to

the

local

From the in caption of local governments, they have been relying

substantially on grants from state and central government and
also statutory allocation form the internal generated funds of the
state.

As a matter of facts, the internal generated revenue by the local

government was very abysmal. Now that it has been granted
antimony, it is statutorily required to rely more on internally
generated funds for the performance of its functions. This being
the case, government grants and statutory allocation are only
supplement any sources of revenue to local government,
Babangida (1992) for local government to be self sustaining
financially without reducing the level and quality of its services to
the people, it is essential that it exploits all potential internal
ones. This as well suggests which would supplement existing

ones. That the existing ones adequately exploited and property

managed.

STATEMENT OF PROBLEM
Finance and Accounting in local government is probably more
complex than in any other part of the public sector in Nigeria, the
inability of local governments to raise adequate funds and keep
accurate accounts to sponsor its expenditure and achieve grass
root developments has been discovered as one of the local
governments. The purpose of this study therefore, is to assess
the problems of finance and accounting in local governments as
to determine their prospect.

HYPOTHESES
Since this research work is in the problem and prospects if
contemporary local government finance and accounting in
Nigeria, the writer obtained facts chiefly through interviews and

questionnaires. Some hypotheses have been formulated to

produce better results.

Hypothesis; 1
Ho; That can increase in federal government statutory allocation
of federation form 20%-25%would not help local government in
achieving at least 75%of their

statutory responsibites.

Hypothesis 2
Ho; that the employment of low caliber staff has no significant
negative relationship with the low efficiency and productivity of
local government.
Hi; that the employment of low caliber staff has significant
negative relationship with low effective

Hypothesis3
Hi; that the accounting system of local government effective in
operation

Hypothesis4
Ho; That another source of tax revenue essential for Nigeria
local government.
Hi; That another source of tax revenue is not essential for
Nigeria local governments.

OBJECTIVE OF STUDY
Local government like any other organization encounter financial
and of course accounting problems. These problem have in no
small mean contributed to their poor performance. It is therefore
imperative to mention that one of the major reason for under
taking this work is the belief that for any meaning full
improvement to take place in government accounting and

financial control, the strands forming part of these systems must

first be put together in during so, the adequacies in the areas of
each system would be pointed out and criticized or mention as
problem areas for future development.

In carry out the study efforts for future development should be

geared to:
1. Identify the major causes of these maladies in the financial
system of the local government.
2. Examine the accounting department to find out if it is being
manned by the desired competent and of course qualified
personnel.
3. Examine whether the sources of income to the local
government is enough as to enable it discharge its
constitutional, statutory and or otherwise obligations with
ease.

4. Examine the various instruments of management and

control of thee local government finances.
5. Examine the various problems of local government
finances and accounts

and

ascertain

the

financial

autonomy of the local government.

6. Examine the prospects of improving available sources off
the local government finances.

SIGNIFICANCE OF STUDY:
Our local governments have in this recent times been riddled
with financial and accounting problems, these undoubtedly have
stultified the unflinching efforts of most local government to instill
and of course restore sanity in the system hence the need for a
steady on the problems and prospects of contemporary local
government finance and accounting in Nigeria.

The study leaves no stone unturned in examining the problems

confronting the existing revenue sources of the local government
and appraises latent revenue resources that could be used to
fortify the revenue base of the local governments.

This study, therefore, points out significantly that improved local

government finance and accounting system is the corner- stoned
to the much desired economic growth and development. It
potentially serves as a guide to policy making in Nigeria. The
study also forms a source of reference in other related topics
and to researches in similar topics.

LIMITATIONS OF STUDY:
As has been earlier mentioned, finance and accounting in local
governments is fraught with complexities. It is then not possible
to provide a fully comprehensive coverage of all facts of the
subject in this kind of study.

Local government finance and accounting has developed in a

distinctive fashion and as such has evolved to terminology that
may be unfamiliar even to those with experiences of finance and
accounting in either the public or private sector.

This study restricts itself to the evaluation of the various revenue

resources and expenditure patterns of local governments,
examination of the problems associated with then and the
prospects for enhancing them. Since it is not possible for a
research project of this kind to develop into the entire local
governments in Nigeria individual, this research work is confirms
to information gathered from Nsukka local government.

This student researcher of this work is of desired intuition to

carryout an elaborate and comprehensive study of the problems
and prospects of the contemporary local government in Nigeria,
but has to obey impenetrable limitations encountered during the

research. At local government under study necessary statistical

data could not be obtained in a particular location and
bureaucratic tendencies seemed to be a rule rather than an
exemption.
More so, majority of local government staff are illiterate people
and could not give written information needed from enlightened
follows. Yet same respondents are relevant to comply with piece
of information needed from them.

In the final analysis, this research was also limited to the data
gathered from the finance and accounting department of the
local government. As such, it should be intensified to not that
treasury department was the major source of information used in
analysis of the study.

DEFINITION OF TERMS:
LOCAL GOVERNMENT:
Local government is the third tier of government. According to
shihu (1976)it is that level of government which is as close as
possible to the people at the grass roots and vested with
statutory porkers to perform certain function and both inherent
and ascribed, confining its activities and authority within a
particular district or neighborhood and subject to the control of
the central government.

FINANCE:
Finance refers to the raising of funds, contorting and using them
in the running of an organization, be it private, corporation or
government (ume 1980)

ACCOUNTING:
Accounting is defined by Douglas (11976) as a discipline that is
concerned with the recording, analysis and fore casting of in
ame and wealth of business and other entities.

FUNDS:
The National committee on Government Accounting (USA)
defined a fund as an independent fiscal and accounting entity
with self balancing set of accounts recording cash and or other
resource together with all related abilities, obligations, reserves
and equities which are segregated for the purpose of carrying on
specific activities or altering certain objectives in accordions with
special regations, restrictions or limitations.
REVENUE
Revenue refers to all those moirs, each and other wise
received by way of statutory allocation, grants, subvention form
lighter levels of government, taxes, rates, licenses fees relations,

loans and charge which enable the government to meet its day
today expenses and its capital expenditure programmers.

EXPENDITURE:
Expenditure refers to all those activities/ services performed
/rendered

by

the

government

with

available

resource

(Egonwa( 1985)

CAPITAL EXPENDITURE
This consists of expenditure whose benefit of which is not
consumed in one accounting period, but spread over several
periods. it includes assets acquired for the purpose of earning
income or increasing the eaming capital of the business, for
example, land and buildings, plant and machinery, meriataiming
of roads and other projects of capital nature.

BUDGET.
A budget is a plan terms, covering in qualitative and usually in
monetary terms, covering a specified period of time usually one
year. To be more precise it is a financial plan of government
drawn out yearly for strict compliance in the execution of
government business.

REVENUE ESTIMATE
As the name implies, it is the part of the estimate in which is
expected revenue from over all source of the government of the
following fiscal year.

ESTIMATE
An estimate is a proposed budget which is yet to be approved.
It is a statement of planned revenue and expenditure of the
government for coming year. This, like budget normally
expressed in monetary terms.

CAPITAL EXPENDITURE ESTIMATE

This specifies the expected capital expenditure project of the
government for the coming fiscal year.
RECURRENT EXPENDITURE ESTIMATE
This is an aspect of the estimate that stipulates in detail shape,
expected recurrent expenditure of the government if the
following fiscal year.

REVENUE ABSTRACT
This is a record, which shows at a glance, in a concise manner
all revenue receipts head by all, and sub head that accrues to
the local government in a given financial year.

EXPENDITURE ABSTRACT
This is a summary of all expenditure in aired by local
government allegorized according to vote heads during a
particular fiscal year.

STATUTORY FUNCTIONS
These are function that the local government is legally binding to
carry out. An edge outside it may amount to an ultra vile and will
therefore be rendered null and void and of no effect.
INTERNAL REVENUE
This is the aspect of reverie that local government can generate
with its area of jurisdiction.

REFERENCES:
I, BABNGIDA, I,B (1992):

Watershed on our National

Evolution, Budget speech to the Nation on January I

2, Civil Service (Re-organization) Decree No 48 of 1988 official

Gazette No 9 vol. 75 of 30th November, (fed. Govt press logos)

3, DOUGLAS, GARBUTT (1978): caters Advanced Accounts

(London: pitman publishing Ltd, 39 parker street.)

4, EGOMNWA, AGHARESE J. (1985): principles and practices

pf local Government in Nigeria,(Benin city: S.M.O Aka and Bros)

5, Nigeria Federal Republic of (1989): The constitution of the

federal Government of Nigeria section7 (8). (Logos federal
Government press) s

6, JOHNSON. T.E (1992); public sector Accounting and financial

control, (Lagos; speed setters ltd, Nigeria)
7, OSHIAM K. (1992): Government and financial control
(Ibadan: sped rum Books ltd, Nigeria)

8, SHARP L.J.(1980): Theories and valves of local Government

political studies 18 (2) (Butterwoths :London)

9, the lay field committee; (1976): local Government financial:

Report of the committee of Enduing (London common 6453;
Hmso)

10, UME j .A (1980) property Rating as a source of financial new

local government in Nigeria, by the faculty of Environmental
studies, UNEC.
11, YARADUA, SHEHU (Bridge Ltd. (1976); fir ward to Guide
lines for local Government Reform, (Lagos Government printer

*** INSTRUCTIONS ***

Please Read The Below Instructions Carefully.

******************************

HOW TO ORDER THIS COMPLETE MATERIAL

If you want to order the complete materials
(Chapter One to Five, Including Abstract, References,
Questionnaires, Proposal (where applicable)) of the
above mentioned topic, please visit
www.freeplace.org and click on Order (i.e.
www.freeplace.org/order)

******************************

HOW TO BECOME OUR PARTNER

To become our partner, visit www.freeplace.org and
click on partnership.
******************************

TERMS OF USE
This Material is for Academic Research Purposes only.
On no account should you copy this material word for
word. Copying this material Word for Word is against
our Terms of Use. That you ordered this material
shows you have agreed Our Terms of Use.

******************************
Better is not good enough, the best is yet to come!
Endeavour to be the best!!