ABSTRACT
This research project investigated the
relationship between accounting system and financial control in Emohua local
government. In order to achieve the objectives of the study, three hypotheses
were proposed and data collected throguh the issue of structured questionnaires
to 56 staff/respondents at the local government. Data collected was analyzed
using Pearson Correlation. From the data analyses, the following findings were
made: There is a positive relationship between accessibility of accounting
information and financial controls, there is positive and statistically
significant relationship between flexibility of the accounting system and
financial controls, there is a positive and significant relationship between
reliability of accounting information and financial controls. Based, we
conclude that: Accessibility of accounting system contributes to financial controls
in Emohua local government area of the state, flexibility of the accounting
system has lead to a significant improvement in the financial control
activities. Finally, we conclude that reliability of the accounting system aids
in financial controls in Emohua local government area of Rivers State. We thus
recommend that: There is need for the local government administration to
educate its staff on the importance of ensuring the accounting system has the
good attributes of reliability, flexibility and accessibility in order to
improve financial controls in the LGA, We also recommend that the local
government provide training to its staff on the strategies that can be deployed
to ensure that the local government’s accounting system can be amenable to financial
controls. Finally, we recommend that regulators and standard setters make
policies that will ensure that local government accounting systems improve in
the area of financial controls.
62 Pages
Project Reference Code: C053
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Local
Government which are the third tier of government organized as close as
possible to the people at the grassroots
and vested with power and rights to perform defined functions both naturally pertaining
and to attribute to assign. The success
of any government in the field of political, social and economical development
and advancement lies in the development ofan official and democratic system of
the local government. Since this is a set up which will involve some accounting
information for its financial control process.
Financial
control which is the choice between future alternative course of action,
financial controllers in very organization rely on Accounting information as
the basis for most of their financial control. The administrators must be able
to distinguish between relevant and irrelevant information. The need for
accounting system for the local government area is very important which will
enable them to control and comply with reports restored, which will provide the
needed information for administrators to make effective control of finance.
Accounting
has been defined by various bodies at different times accounting to “Gray Jack
and Johnson S. Kenneth: Accounting and management action McGraw-U.S.A. the
Athenians, early Egyptian, and others of the early Egyptian, and others of the
early times, where they said accounting is that of recording business
transaction”
Even
in the late 19th century, it is regarded as the simplified balance
sheet or list design for the benefit of bankers and creditors. This committee
of terminology of American institute of certified public Accounting formulate
this definition in 1961.Accounting is the art of recording, classifying and summarizing
in a significant manner and in terms of money transactions’ and even which are
in part at least of a financial character.
The
more recent definition given by the American Association of Accountants (2006)
is less restrictive and regards accounting as; The process of identifying, measuring
and communicating economic information to permit information judgments and
decision by the user of the information.
Accounting
now includes the development and analysis of data, testing of their validity
and reliance and the interpretation and communication of the resulting control
to intended users. This data may be express in monetary or other quantitative
terms or symbols or in verbal forms. In this broad context accounting as the
science which deals with the designs, management, and evaluation of information
system as they rate to accounting system and financial control to government
and enterprise goals. It can now seen from the onset that the basic objective
of accounting is to approved and analyze economic information to aid in
financial control. It also facilitates the effective allocation of resources in
the local government areas.
This
research will mainly concern itself with the use of accounting system or
information in local government areas and financial control process. The branch
of accounting which provides information for accounting system or information
and financial control is called financial accounting. This provides accounting/economic
information usefully aiding managerial part planning, directing and controlling
the local government operation.
A
good accounting information is therefore needed for proper and adequate data
gathering and analysis to facilitates sound financial control. The accounting
system is face with the challenge of catching up with all information of our
growing activities.
Accounting
apart from providing the frame work however can be regarded as the blood in
business system process without this no organization will function properly.
1.2
STATEMENT OF PROBLEM
More
often than not, local government financial control does not involve adequate
use of accounting information with the result that financial are really
accurately made. However, the problems associated with the presentation of this
needed information to financial control are. The problem of reporting the
reports structure and prepare as to give clear understanding to the recipient.
How
effective is the communication of accounting system or information and
financial control at all levels and function of the local government.
Furthermore
the structural weakness naturally pertaining to the organizational and
financial control arrangement for the accounting function in the local
government system.
This
essentially relates to the distinctionality which might arise when the
accounting functions are wrongly placed within the legislative and control
process, which will not provide the needed accurate information.
Another
problems is focused with the financial memoranda which do not state clearly how
the various local government transaction are to be recorded in the appropriate
account books which will not provide the needed adequate accounting system for
its financial control are “The general accounting rules and procedure,
receipts, the main Accounting”.
1.3 AIM AND OBJECTIVES OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 RESEARCH HYPOTHESES
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE AND
LIMITATION
CHAPTER TWO
LITERATURE REVIEW
2.1 BACKGROUND TO THE STUDY
The
role of accounting system and financial control have been in the literatureof financial accounting for
a long time. The main concern is t .se
of accounting data for the removal of uncertainties in projecting
future. This research will base it
attention to the local government needs
of accounting system for its control process, it will not fail to mention the relevant accounts which will provide the
needed information for the administrators for its controls process such as the
revenue abstract and the balance sheet of the local. This review is
therefore aimed at analysing available literature and to the issues relevant to
the subject matter of the research study.
2.2 INFORMATION NEEDS OF USERS OF FINANCIAL INFORMATION
2.3 THE
TECHNIQUE FOR GENERATING ACCOUNTING SYSTEM
2.4 PRESENTATION
OF INFORMATION
2.5 THE UNDERSTANDABILITY CONCEPT OF THE USERS OF
THE FINANCIAL STATEMENT
2.6 WHAT
IS ACCOUNTING INFORMATION
2.7 IMPORTANT OF ACCOUNTING
INFORMATION
2.8 LOCAL GOVERNMENT REVENUE AND EXPENDITURE
ABSTRACT
2.9 THE BUDGETING SYSTEM IN LOCAL GOVERNMENT
2.10 REQUISITION AND ISSUE
OF VOUCHERS
2.11 EXPENDITURE AND GOVERNMENT
2.12 STATEMENT OF ASSETS AND LIABILITIES
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 RESEARCH DESIGN
Basically,
there are two types of research design, the experimental and quasi-experimental
or survey research design. For the purpose of this study, the appropriate
research is the quasi-experimental or survey research design. This design is
chosen because the variables under study as well as the population from the
data will be collected are not under the control of the researcher.
3.2 POPULATION OF THE STUDY
The total population for the study includes all
the staffs of Emouha local government area of River State.
3.3 SAMPLE DESIGN AND SAMPLING TECHNIQUE
The
Judgmental method was used to select the appropriate sample for the study.
Thus, the sample of the study are 56 staff of Emohua LGA comprising twenty two
(22) senior staffs as well as thirty four (34) junior staffs of Emouha local
government area from questionnaire administered and to eliminate bias and
inconsistency on the part of the respondents.
3.4.
NATURE AND SOURCES OF DATA
3.5 METHOD
OF DATA COLLECTION
3.6 METHOD
OF DATA ANALYSIS
3.8 VALIDITY
AND RELIABILITY OF INSTRUMENT
CHAPTER FOUR
DATA PRESENTATION ANALYSIS AND INTERPRETATION
41. INTRODUCTION
This chapter concentrates on the analysis and discussion of data
derived from responses to the questionnaires which disclosed facts about the
subject matter. The questionnaire were
intended to be
distributed to those who are involved
in the accounting system of local government and those who supply the needed
information for effective financial control process of this only few about ten
were filled and returned. This number through small forms the basis on which
the analysis is made.
4.2 DATA PRESENTATION
ANALYSIS AND INTERPRETATION
4.3 DATA
ANALYSES AND HYPOTHESES TESTING
HYPOTHESES TESTING
4.4 DISCUSSION OF FINDINGS
In the course
of this research, it is revealed that there is a positive relationship between
accessibility of accounting information and financial controls of Emohua Local
Government Area of Rivers State. This result implies that making the local
government’s accounting system more accessible will lead to improvement in
financial controls. This will obviously lead to reduction in fraud and
fraudulent activities in the local government. We however noted that the
finding was not statistically significant indicating making the accounting
system more accessible cannot be completely relied on for effective financial
control.
Furthermore,
the findings show that there is positive relationship between Flexibility of
the accounting system and financial controls in Emohua Local Government Area of
Rivers State. The implication of this result is that making the accounting
system in the local government more flexible and responsive to changes in the
environment will lead to improved financial controls in the local government. The
finding was also shown to be statistically significant with the implication
that making the accounting system more flexible can be relied on for effective
financial controls.
Finally, the findings show that there is a positive
relationship between reliability of the accounting system in the local
government and financial controls. This means that that making the accounting
system more reliable will lead to improved
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
This research was conducted to investigate the relationship
between accounting system and financial controls in
Emohua local government area of Rivers State. The findings of the research
among other things revealed that:
i.
There is a positive
relationship between accessibility of accounting information and financial
controls in Emohua local government area of the state. However, this finding
was not statistically significant.
ii.
We also find that
there is positive and statistically significant relationship between flexibility
of the accounting system and financial controls in Emohua local government area
of the state.
iii.
Finally, the findings
show that there is a positive and significant relationship between reliability
of accounting information and financial controls in Emohua local government
area of Rivers State. The finding was not statistically significant in
explaining financial controls in the local governemtn.
5.2 Conclusion
5.3 Recommendation
BIBLIOGRAPHY
Akindele, T. (2008) Basic Concept
Computing: An Overview, Computer in Banking, Lagos: Landmark Publishers Ltd.
Anderson, K.G. (2008) Business Systems,
London: Macdonald and Evans Ltd.
Asten, K.J (2010) Data Communication for
Business Information System, New York: Macmillan Company.
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Stern, R.A and Stern N.B (2013)
Principle of Data Processings, Canada: John Wiley and Sons Inc.
Taylor, F. (2014) Statistics for
Business A Course Unit Approach, Stock Port: Polytechnic Publishers Ltd.
Wessey, F.L (2011) “Computer
Science/Information Technology”, Port Harcourt: Micro Holen Nigeria Ltd.
QUESTIONNAIRE
Reference Code: C053
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