Impact Of Public Sector Accounting On Performance Of Local Government Administrators In Enugu North Local Government Area Of Enugu State

Abstract

This study investigated the impact of public sector accounting on performance of local government administrators in Enugu North Local Government Area of Enugu State. Three research questions guided this study. A descriptive survey design was adapted for the study. The population comprised of forty (48) local government administrative staff in Enugu North Local Government Area of Enugu State. There was no sample because the number was manageable. The instrument for data collection was questionnaire which was validated by two expert’s one in measurement and evaluation and one from Business Education both in Federal College of education (technical Asaba. The method of data collection was mean statistics to answer the research questions. The findings revealed that lack of judicious use of public finance generated, poor administration of local government funds and inadequate control and management of public funds influence the performance of local government. Based on the findings, it was recommended among others that government should ensure that the public financial resources are judiciously used which will help to improve the performance of local government within a state, the indigene of a state should ensure that he/she pays tax every month which will also help to improve the performance of local government and state government that the public fund are adequately controlled and managed by reliable staff.   

CHAPTER ONE

INTRODUCTION

Background to the Study

Public sector is that sector of the economy established and operated by government or agencies distinguishable from the private sector organized on behalf of the whole citizens.The public sector is devised despite the privatization and commercialization of some government agencies and parastatals; the sector is still large. Almost all the activities in the public sector have to do with political choice, which plays a vital role in resource allocation and its government accounting, (Mathias, 2004). It is also defined as composite activities of collection, analyzing, recording, summarizing, reporting and interpreting the financial transaction of government units, (Oluwatayo2008). The government either provides services on natural scale or else redistributes funds, which are managed on semi-autonomous basis. In Nigeria for instance, public sector accounting is based on the principle of fiscal federalism. This implies that the fiscal structure of the government is a reflection of its federal and political structure. Afolabi (2004) said the that Federal Republic of Nigeria is made up of three levels of government namely Federal, State and Local governments otherwise known as the three tiers of the political structure. All the three tiers of government are guided by the constitution of the Federal Republic of Nigeria from which the government decides on who gets what and how. Allocation of resources to the three tiers of government is granted and this is executed through the process of budgeting. Unique thing about public sector accounting is that legal instruments demand and limits the form the financial statement should take; many a time they follow budgeting classification. In public sector, we have the federal government accounting, state and local government accounting respectively. The accountings in the federal and state level are the same in that both are made up to the same ministries, parastatals, agencies and departments.

The 1976 local government reforms and the 1988 implementation guideline on application of civil service reforms in local government service established a standard or uniform multi-purpose single tier government structure throughout the federation, consequently, each local government account system is a replica of the other in terms of personnel position and functions accounting system which include financial information flow, budgeting and budgetary control system, approved source of revenue and general administration. Significantly, a local government is allowed only six departments viz: Personnel, Works and Housing, Transport, Health and Social Welfare, Education, Agriculture and Natural Resources, Financial and Supplies, Planning Research and Statistical Department, out of the six departments, only the finance department headed by the local government treasurer is authorized to collect and keep all the revenue.

Statement of Problems

Public sector accounting lies greatly on the hands of the government, but despite on that some local government also experiences a lot of problems or challenges in the hands of the government.

The problems inherent in this research study as investigated by the researcher such as; extent of local government financial management impact on effective and judicious use of public financial resources, influence of public sector planning and regulation on quality delivery of public services, the practice of public sector accounting in local government administration to enhance transparency and accountability in the use of public sector resources and the role of internal auditors in ensuring effective compliance to financial regulation at local government.

Purpose of the Study

The main purpose of this study is to investigate impact of public sector accounting on performance of local governments administrators in Enugu North Local Government Area.

Specifically, the study sought to:

1. Determine the effect of public sector accounting on the internally generated revenue in Enugu North Local Government Area.
2. Establish whether there is poor administration of local government funding Enugu North Local Government Area.
3. Discover the problems facing local government in the control and management of public funding Enugu North Local Government Area.

Research Question

The following research questions guided this studies:

1. How does public sector accounting affect the internally generated revenue of the local government?
2. How does poor administration of local government funds influence performance of the local government?
3. What are the problem facing local government in the control and management of public fund?

Significance of the Study

This research work will be of great important basically to business students and will help them to know how public sector is been handle or managed by government and know if there public funds is manage properly by the government. On the other hand, it will help the government to be aware of how to manage and control the funds of the public without being questioned in the course of accountability, also corrective device after their area of deficiency have been highlighted with regard to the generation and management of public funds.

Scope of the Study

The scope of the study focuses on impact of public sector accounting on performance of local government in Enugu North Local Government Area of Enugu State.

The study it restricted to determine the effect of public sector accounting on the internally generated revenue in Enugu North Local Government Area, establish whether there are poor administration of local government funds and discover the problem facing local government in the control and management of public fund.

Pages:  45

Category: Project

Format:  Word & PDF               

Chapters: 1-5                                          

Source: Imsuinfo

Material contains Table of Content, Abstract and References.