Strategies for Enhancing Financial Accountability in the Local Government System in Nigeria (A Case Study of Ikwo Local Government Area, Ebonyi State)
Chapter One
OBJECTIVE OF THE STUDY
The objective of an organization that maintains a good internal control system is to maintain efficiency, profitability apparatus, viability prospects and of course accountability of the entire organization. It is the purpose of this study therefore, to have a close look and know if there is any system of internal control existing in the Ikwo Local Government Area. If there is, to know to what extent this has assisted in attaining financial accountability in the local government area.
The important areas which the researcher want to look into are as follows:
- To ascertain the step taken, when inefficiency is dictated I the internal control system and to know the effect on accountability of the organization.
- To know whether there is a system of adequate authorization and recording to provide reasonable accounting control over assets, liabilities, revenue and expenditures.
- To ascertain whether there is adequate division or segregation of duties at various levels of management in the organization.
- To understand a critical appraisal of the system generally and suggest solutions where the system is find ineffective.
- To suggest ways of enhancing early detection of mistakes, deliberate misappropriation, checks collusion, fraud or embezzlement of funds.
CHAPTER TWO
REVIEW OF LITERATURE
INTRODUCTION
Our focus in this chapter is to critically examine relevant literatures that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Accountability
Accountability is as old as man himself and dates back to the biblical times. For instance, the story of Ananias and Saphira could be viewed as one of “Financial Accountability” Ananias and Saphira sold a piece of property and with his wife’s full knowledge, he kept back part of the money for himself but brought the rest and put it at the Apostle’s feet (Act 5:1-3). The Oxford Advanced learners Dictionary sees the word accountable as being responsible for something that is expected to give an explanation on something under one’s care. Akpan (2010), viewed public accountability as: The firm’s recognition and acceptance of the fact that all public servants hold their positions as trusts for the people who are masters. Those who are expected to render services must account to the people for their success and failures and those who are entrusted with the custody and disbursement of public funds must appropriately account to the people for their use. For one to be accountable for something, one must have responsibility with its associated authority, which will make him answerable to his supervisors. In the light of the above, if accountability is to exist and must be carried out properly there must be internal control mechanism. It has been observed in many local governments in Nigeria that payment vouchers are not signed by the two officers authorized to approve vouchers (the HPM and the Treasurer). Some of them were signed by one of the above-mentioned officers and not both as required. The practice of paying a voucher without complete authorization signifies a weakness in the accounting system and could be viewed as an intention to defraud the local government. This also shows absence of effective control mechanism. Accountability is a system whereby results of expenditure and by extension of policymaking decision should be stated, evaluated and justified where need be. It should be noted that the primary aim of accountability is to ensure transparency (Saleh & Nabiha 2011). Accountability is the hallmark of modern democratic governance. Democracy remains a paper procedure if those in power cannot be held accountable in public for their acts and omissions, for their decisions, their policies, and their expenditures. Public Accountability, as an institution, therefore, is the complement of public management. Bovens (2005) opines that “as a concept, however, „Public Accountability‟ is rather elusive. It is a hurrah-word, like „learning‟, „responsibility‟, or „solidarity‟ nobody can be against it. It is one of those evocative political words that can be used to patch up a rambling argument, to evoke an image of trustworthiness, fidelity, and justice, or to hold critics at bay. The principle of public accountability in governments throughout the world is an ideal. It works on the basis of the fact that any office-holder, especially an electable public office-holder, holds his official duties and responsibilities in trust for the people. In support of the above opinions on the concept of public accountability, it is a universal truth that governments, especially democratic governments, derive their legitimacy from the citizenry. All government programmes and activities are therefore assumed to be done on behalf of the people. Thus, the people deserve to be assured that the resources which they put at the disposal of government, its officials and its agencies, are efficiently, effectively an economically managed, moreover properly accounted for. Public Accountability, thus, has three crucial components: a clear definition of responsibility, reporting mechanisms, and a system of review, rewards and sanctions.
CHAPTER THREE
RESEARCH METHODOLOGY
AREA OF STUDY
Ebonyi State is in southeastern Nigeria. It is inhabited and populated primarily by the Igbo with the city of Abakaliki as its capital and largest city. Other major townships include Afikpo, Onueke, Ezzamgbo, Edda, Effium, Aba Omege, Amasiri, Unwana, Echara Ikwo, Egu-Ubia, Ụbụrụ, Onicha, etc. Population of Ebonyi state according to the 2006 census is 2,176,947.
Ikwo is one of the LGAs in Ebonyi state. It is an Igboid language spoken in Ebonyi state in Nigeria. It forms a dialect cluster with closely related Izii, Ezza, and Mgbo, though they are only marginally mutually intelligible.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out to examine the strategies for enhancing finanacial accountability in the local government system in Nigeria using Ikwo local government area, Ebonyi state as a case study. The staff of Ikwo local government area Secretariat form the population of the study.
Statistics from the workers roaster of the LGA shows that the population is 82.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
DATA PRESENTATION
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
CONCLUSION
In this study, our focus was to carryout to examine the strategies for enhancing finanacial accountability in the local government system in Nigeria using Ikwo local government area, Ebonyi state as a case study. The study specifically was aimed at ascertaining the step taken, when inefficiency is dictated I the internal control system and to know the effect on accountability of the organization; To know whether there is a system of adequate authorization and recording to provide reasonable accounting control over assets, liabilities, revenue and expenditures; To ascertain whether there is adequate division or segregation of duties at various levels of management in the organization; To understand a critical appraisal of the system generally and suggest solutions where the system is find ineffective; To suggest ways of enhancing early detection of mistakes, deliberate misappropriation, checks collusion, fraud or embezzlement of funds.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 40 responses were validated from the enrolled participants where all respondent are active workers in Ikwo local government area, Ebonyi state.
The findings revealed that effective internal control system enhances financial accountability; Ikwo local government has being maintaining adequate division or segregation of duties at various levels of management; Ikwo local government maintained adequate authorization and recording to provide reasonable accounting control over assets and liabilities, revenue and expenditure; effective internal control system can eliminate fraud and enhance prudent allocation of an organization resources; effective internal control system do enhance early detection of mistakes, deliberate misappropriation, fraud and/or embezzlement of management fund.
RECOMMENDATION
Based on the responses obtained, the researcher proffers the following recommendations:
(i) Ikwo State Local Governments should ensure adequate transparency and demonstrate integrity in financial accountability;
(ii) Strong internal control measures should be instituted in all local governments on the following principles-segregation of duties, authorization procedure, documentation procedure, accounting records, physical control, and independent internal verification; for proper control and monitoring of local government finances and
(iii) Strict penalty should be put in place to punish any officer of the local government who fails to demonstrate transparency and integrity in the discharge of his or her duties.
BIBLIOGRAPHY
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