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AN APPRAISAL OF THE
ACCOUNTING SYSTEM OF LOCAL GOVERNMENT
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND
Local government is the third tier out of the three tier of
government in Nigeria and in this way, part of the framework of Nigerian
administrative authorities it has administrative structure like any level of
government, statutory assigned function, social commitment and financial
argument needed for it to maintain itself and perform its statutory function to
its citizenry.
According is
defined as the act and science of recording business transaction in a
systematic manner, so as to show the true state of affairs of a business during
a specific period usually called according period.
A system on
the other hand, is a whole unit made of inter related element working together
to achieve the objective of the whole unite.
Accounting in
the government setting tends to satisfy the specialized needs of the
government, it is aimed at demonstrating the propriety of transaction and their
conformity with established rule to give evidence of accountability for the
stewardship of government resources and to provide useful information for good
control and efficient management of government operations.
1.2
STATEMENT OF THE PROBLEM
This study entitled appraisal of the accounting system of
local government attempt to determine the problem involved in establishing and
applying standard accounting system in local government with practical
reference to Okigwe local government area of Imo state, Nigeria some of the
problem facing the local government are; that the accounting system installed
in the local government is not fully effectively operated. Also, the accounting
system of the local government is inadequate in design. As a result of these,
the financial statement as prepared by the local government does not reflect or
show its true financial positions.
1.3 PURPOSE
OF THE STUDY
The purpose of this study is:
vIdentify the problem inherent in accounting system of local government.
vKeep the local government concerned, learn how to keep
proper accounting statement
1.4
SIGNIFICANCE OF THE STUDY
There are three categories of people that are going to
benefit from this study
They are
vThe chief accounting officers
vFinancial officers
vAuditor general
During this
study, it indicated that majority of local government in Enugu, Imo and Abia
state particularly, and so many other places in Nigeria, are not aware of the
legal requirement for recording, processing and presenting information about
the transaction carried on in business they are managing, some do not keep
proper accounts for their business.
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