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Control Mechanisms and the Management of the Funds of Local Governments in Nigeria: a Case Study of Anambra Statestate

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Control Mechanisms and the Management of the Funds of Local Governments in Nigeria: a Case Study of Anambra Statestate CONTROL MECHANISMS AND THE MANAGEMENT OF THE FUNDS OF LOCAL GOVERNMENTS IN NIGERIA: A CASE STUDY OF ANAMBRA STATESTATE.... BYBYBY DIBUA TOCHUKWU .B PG/M.SPG/M.Sc/09/51387c/09/51387 DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT UNIVERSITY OF NIGERIA, NSUKNSUKKAKA JANUARY, 20122012.. i TITLE PAGE CONTROL MECHANISMS AND THE MANAGEMENT OF THE FUNDS OF LOCAL GOVERNMENTS IN NIGERIA: A CASE STUDY OF ANAMBRA STATE. BY DIBUA TOCHUKWU .B PG/M.SC/09/51387 BEING A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE (M.Sc) IN PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT OF THE UNIVERSITY OF NIGERIA, NSUKKA DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT UNIVERSITY OF NIGERIA, NSUKKA SUPERVISOR: DR, C U AGALAMANYI JANUARY, 2012. ii CERTIFICATION I, Dibua Tochukwu B, a postgraduate student in the Department of Public Administration and Local Government (PALG), University of Nigeria, Nsukka with registration number PG/M.Sc/09/51387, has satisfactorily completed the requirement for research work for the degree of Master of Science (M.Sc) in Public Administration and Local Government. --------------------------- ---------------------------- DR, C U Agalamanyi Prof. Fab. Onah Supervisor Head of Dept (PALG) ------------------------- ---------------------------------------- External Examiner Prof. O.E. Ezeani Dean, Faculty of the Social Sciences Date: ------------------- iii APPROVAL PAGE This research work has been approved for the award of the Degree of Master of Science (M.Sc) in Public Administration and Local Government, University of Nigeria, Nsukka. By ------------------------------- -------------------------------- DR, C U Agalamanyi Prof. Fab. Onah Supervisor Head of Dept. (PALG) PALG, University of Nigeria University of Nigeria Nsukka Nsukka Date:---------------------------- Date:------------------------- ---------------------------- ---------------------------------------- External Examiner Prof. O.E. Ezeani Dean, Faculty of the Social Sciences Date:--------------------- University of Nigeria, Nsukka. iv DEDICATION This project work is dedicated to our Lord Jesus Christ, the Author and finisher of our faith who died on the Cross of Calvary for us. To Him, I say, may all Honour, Glory, Adoration, Praises continue to be ascribed to His Holy Name for ever and ever, Amen. v ACKNOWLEDGEMENT The successful completion of this research work was made possible through a number of persons who have contributed immensely for its accomplishment. Hence, my first gratitude goes to my erudite supervisor, DR, C U Agalamanyi of the Department of Public Administration and local government, University of Nigeria, Nsukka. A man with a high level of integrity and honour, who in spite of his crowded schedules made out time to read and effect all the useful corrections as regards the presentation of work. I must confess that, my successful completion of this programme is a tribute to the inestimable love and care of my dear mother, Mrs. Dibua Theresa, those kindness ,and love constant and intercessory prayers which has strengthened me spiritually and made me overcome all satanic influences that comes my way. In fact, she is the source of my inspiration. To you I say, thank you mummy.Am grateful to her. I lack appropriate words to express my deep appreciation of the unalloyed support and understanding of my amiable sisters and brothers, Amaka, Big Joe, Ogo for their love and care. All of them are simply wonderful. My acknowledgement will not be complete if I failed to remember my bossom friend and classmate, Ezeudu Tochukwu, Inno, who had been very supportive at various times during my scholarly journey. Uche and Edebor has been very helpful and inspiring to me. He is a friend in brotherhood. On the same level, I record my joy at the fruitful intellectual and social relationship I have had with Mr. Sam Ugwu a lecturer in the department of Public administration, for his insightful advice and promptings that has help me pursue this work to completion. I remain profoundly appreciative of the love, concern and prayers of some dedicated and committed servants of God, whom the Lord had used to remember me in a very special way in their daily medication and intercessory prayers during the cause of this programme. Among them are Rev Fr Ezeokafor amongst others too vi numerous to mention. To them, I say ‘Bravo’ and may the good Lord continue to enrich and shower more blessings to you now and always. Finally, I feel completely humbled that the Good Lord, God Almighty, gave me the abundant life and redemption to be what I am today educationally and otherwise. I happily remain persistently committed and consecrated to serving and worshipping Him all the days of my life. To Him and to Him alone be the eternal glory in Jesus wonderful name, Amen. vii ABSTRACT The role of the third-tier of government in societal development has become broader, deeper and even more sophisticated in the current dispensation. Thanks to the numerous reforms which have been visited on local government within the last few decades. In spite of this however, the performance of the third-tier so far in developing the society, more especially the grassroots has been quite unsatisfactory. It is in the light of this that this work dwelt on the control mechanisms and the management of the funds of Local Governments in Nigeria using Anambra State as its case study. Effective control mechanism is a pre-requisite for good financial accounting to be achieved in the local government system. Local government accounting aims at providing analysis of revenue and taxes realized and for this to be adequately taken care of, there is need for the establishment of an effective and efficient control mechanisms in the financial management of Local Government funds. In view of the situation, this research attempts to address some pertinent issues which include highlighting some of the control mechanisms provided in the Financial Memoranda and other operating guidelines as well as the faithful application of these mechanisms in the Local Government system. Attention was also paid to the factors that hinders the successful application of these mechanisms. The research went further to identify a number of findings which include the attitudes of the chairmen towards internal control measures, non-adherence to the provisions of Financial Memoranda, large scale corruption among career civil servants and the political officials, among other myriads of findings. These findings were of course not without some negative implications. We have identified some of them to include, low revenue base, administrative ineptitude and inefficiency, gross underdevelopment of the grassroots, unemployment among the teeming youths, abject poverty among the rural dwellers and many more. However, the researchers also went ahead to proffer some useful recommendations which if religiously implemented to the latter, there will be proper financial accountability in the control and management of Local Government funds and resources and the noble ideal of fostering development by way of efficient service delivery to the local people will be greatly achieved. viii TABLE OF CONTENTS Title Page ------------------------------------------------------------------------- i Certification ---------------------------------------------------------------------- ii Approval Page ------------------------------------------------------------------- iii Dedication ------------------------------------------------------------------------ iv Acknowledgement --------------------------------------------------------------- v Table of Content ----------------------------------------------------------------- vi List of Tables --------------------------------------------------------------------- x List of Figure --------------------------------------------------------------------- xi Abstract --------------------------------------------------------------------------- xii CHAPTER ONE: INTRODUCTION 1.1 Background of the Study --------------------------------------------------- 1 1.2 Statement of the Problem -------------------------------------------------- 5 1.3 The general Objective of the Study -------------------------------------- 8 1.4 Significance of the Study --------------------------------------------------- 8 1.5 Scope and Limitations of the Study --------------------------------------- 9 1.6 Limitations of the Study ---------------------------------------------------- 9 CHAPTER TWO: LITERATURE REVIEW 2.1 Literature Review Procedure --------------------------------------------- 11 2.1.1 A Brief Historical Analysis of Local Government in Nigeria ------ 12 2.1.2 The present Local Government System in Nigeria ------------------- 14 2.1.3 Structure of the Local government -------------------------------------- 15 2.1.4 Decision making in the Local Government ---------------------------- 17 2.1.5 General Principles of Internal Control in the Local Government ---- 18 2.1.6 The place of internal control mechanisms and accountability in the local government -------------------------------------------------- 21 2.1.7 Relationship between accountability and control mechanisms in the Local Government ---------------------------------------------------- 26 2.1.8 Aids to proper accountability in financial management in the Local Government -------------------------------------------------------- 28 2.1.9 External control mechanisms -------------------------------------------- 33 2.1.10 Handbook
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