1.0 Introduction
The local government is the third tier of government in the Nigerian government system. Prior to the major local government reform of 1976 there was no uniform local government system in Nigeria, rather, there existed many types of local government such as divisional, district and local councils in the East's in the North era native authority, district and village council.
The responsibilities of dealing matters and policies relating to local government were carried out by the federal and state government, this led to the concentration of government, the urban levels while the rural area did not fully feel the impact of governance.
1.1 Background of the Study
The beginning of a uniform in local government system in Nigeria which was aimed at ensuring effectiveness and efficiency in the administration of local government is traceable to the 1976 local government reform policy promulgated by the late General Murtala Muhammed/ General Olusegun Obasanjo's military regime.
This policy gave rise to uniformity in Nigeria local government system and reviewed to an extent, the state and federal government burden on local matters and responsibilities governance, the reform created three hundred and one (301) local government in Nigeria. This was to make the impact of governance fully felt at the local levels.
In 1989, in furtherance to reforms in the local government administration some autonomy was granted to local government in Nigeria under the federal military government of Ibrahim Babangida. The administration equally promulgated decree No. 15, sect 27. Basic constitutional and transitional provision to fashion out the main functions of local government thus:
- Formulation of economic planning and development scheme of the local government.
- Collection of rates and insurance of radio and television license.
- Establishment and maintenance of cemeteries, burial grounds and homes for the carts.
- Licensing of bicycles, trucks (other than mechanically propelled trucks) canoes, wheel barrows and carts.
- Establishment of maintenance and regulation of slaughter houses, slaughter slabs, markets, motor parks and public conveniences.
- Construction and maintenance of roads, streets lightings, dams, parks, gardens, open spaces or such public facilities as may be prescribed from time to time by the executive governor on houses of assembly of a state.
- Naming of roads and streets and numbering of houses.
- Provision and maintenance of public convenience, sewage and refuse disposal.
- Registration of all deaths, births and marriages.
- Assessment of privately owned houses or tarriance for the purpose of leaving such rates, it may be prescribed by the executive governor or house of assembly or state.
Furthermore, in 1997 more local governments were created bringing to a total number of seven hundred and seventy four (774) local governments in Nigeria, all these are aimed at streaming the administration and allocation of responsibilities in order to ensure that local government serve as catalyst to economic developments at grassroots level.
In an effort to consolidate the federal government efforts towards the realization of decentralization of authority a decretive contained in the reform conferred power on state government on the basis of equality and population this added incentive to local government with wide raging responsibilities for local service delivery and promotion of suitable development, the prudent and efficient management of financial resources is a task that must be neglected at the risk of rural dwellers dissatisfaction and disaffection especially now that the country is undergoing an excruciating economic development in the local level, the local government must ensure an improved revenue generation mechanism to generate more fund and to supplement the statutory allocation from federal government and internally generated revenues.
Over the years, since in option as the third tier of government, local government poor performance has been attributed to insufficiency of funds in spite of the statutory allocation from the federation account and state governments. This then calls for efficiency in generating revenue so as to have enough funds to cater the responsibilities.
1.2 Statement of Problem
It is an indisputable fact that local governments in Nigeria were established for political administrative and service provision purpose.
The rate of involvement of officers dealing with public funds in act ranging from misappropriation of fraud and embezzlement of public fund has put those entrusted with the management of public fund.
Notwithstanding the percentage given to the local government councils by the federal and state governments, the management of fund is still a problem in the local government system. Some of the problems facing the local government in Nigeria on fund control management include:
- Misappropriate of funds in the local government system in Nigeria.
- How exactly will fund control be managed in the local government system?
- Improper recording of funds by the administrative bodies.
1.3 Objectives of the Study
The purpose of the work is to provide solution to the problems facing the local governments in Nigeria on fund control management. It is not only to present a project on fund control management in the local government but also to make the report of immense value to students and local government administrations alike. Recommendation on how the revenue base can be improved upon to enable local government council carried out its primary function of providing effective and functional social services to its people.
Also, it guides and advices the council on matters pertaining to the treasury and conduct of the council to ensure that proper system of accounting is being maintained. It could also be recalled that despite Federal Government's effort of facilities economic development to the grassroots level made any services change or improvement towards releasing the objectives due to misadministration. This underscores the desire of the enthusiasm of the researcher to probe into the following:
- The mechanism or revenue generation in local government in relation to section 27 and 28 of local government (base constitutional and transition provision) decree 1989.
- The effectiveness and efficiency of local government in generating revenue internally
- The effectiveness and efficiency in utilizing the acquired funds in relation to financial management.
- Whether the fiscal policies are implemented accordingly.
1.4 Research Questions
- Qo: Does adequate fund generation depend on the efficiency of the management of the local governments?
- Q1: Do adequate fund generation depend on the efficiency of the management of the local government?
1.5 Significance of the Study
This research is significant because I believe that it will help me in empirically exposing some of theoretical inadequacies of some of the classical fund control management in the local government system in Nigeria of previous studies. Further knowledge obtained from this research will help in providing a theoretical premise upon which future researched in the area could be based.
In essence, this paper will go a long way to generate curiosity which will in turn lead to the accumulation of sufficient knowledge on the subject of comparative study of the Owerri West local government council. It is assumed that since the basic aim of this research is to analyze factors that lead to efficiency in local council, chairman, directors of administration and services, treasure and all council employees are likely to benefit from it.
1.6 Scope of the Study
As the topic suggests, this is the study of what are obtainable in Owerri West local government in Imo state. However, these do not mean that there cannot be similarities between what are obtained in this local government and other local government of the federation.
The study only examine from a critical point of view, the various ways put in place for revenue generation system and management of fund which emphasizes on Owerri West local government.
1.7 Limitation of the Study
This research is meant to appraise the performance of local government in Nigeria in terms of funds control and management. However, it will not be possible to appraise all the local governments individually, the researcher has therefore decided to choose Owerri West local government as a case study, this decision is justified by the fact that local government in Nigeria researcher would have loved to make aim depth study of many issues in the local government but for time factor, inefficient transport system, accessibility and the unwillingness of some management staff to comment on certain issues, in spite of these constraints the researcher has been able to delve into many areas that are necessary in the course of this study.
1.8 Definition of Terms
Fund:
The national committee on government accounting USA defined fund as an independent fiscal and accounting entity with self balancing set of accounts recovering cash and other financial resources together with related liabilities and residual equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulation, restriction or limitations.
Accounting Policy:
The general principles and procedure under which accounts of an individual organization are kept.
Revenue:
This is an inflow of money or other representation of value in return for selling goods or providing some type of services.
Fraud:
A deceptive trick planned to obtain an unjust or illegal financial advantage.
Government Grant:
This is the allocation on (revenue) act by which both federal and state governments supplement local government revenue.
Fees and Charges:
These are revenue yielding to local government property.
Receipts:
This is an issue of written acknowledgement of anything received.
Allocation:
Appropriations by agencies, programmes and classes of expenditure.
Allotment:
Subdivision of allocation into time elements.
Expenditure:
Outflow of resources or the incurring of obligations for goods and services require to generate funds.
Government Budgeting:
It is the qualitative expression of the future plans and actions in financial terms usually for a year running from January to September.
Auditing:
This is an independent examination of an enterprise by an appointed audition in pursuance of that appointment and in compliance with any relevant statutory obligation.
Self Accounting:
According to Oparaeke in his book Public Sector Accounting vol. 1, a self accounting unit is a ministry or extra-ministerial department which the responsibility for the maintenance of the detailed record of the above, the line and below the line payments and receipts is delegated to the accounting officer.
Now Self Accounting Unit:
According to Oparaeke, it means ministry or department which is only required to maintain incomplete record of the above the line payments and receipts.
Fund Management:
This means efficient effective use of organizational money or funds to achieve the objective of which the fund was given/ issued.
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