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EXTENT OF
COMPLIANCE WITH GOVERNMENT FINANCIAL REGULATIONS IN LOCAL GOVERNMENT
ADMINISTRATION
ABSTRACT
The demands
and expectations from local government councils over the years have been on the
increase while delivering the dividend of democracy and good governance at the
grassroots continues to dwindle owing to mismanagement and misappropriation of
funds. As a result of the above factors, local government administrators are
most times unable to meet up with their financial obligations in terms of
payment of staff salaries, provision of social services and infrastructural
development to the urban and rural dwellers. This has led the public to asking
questions on the extent to which local government administrators comply with
government financial regulations. It is on this note that this study seeks to
determine the extent of compliance with government financial regulations in local
government administration. Specifically, the study was carried out to
determine: the extent of compliance with financial estimates regulations in
local government administration in Enugu State, the extent of compliance with
revenue collection procedures in local government administration in Enugu
State, extent of compliance with expenditure procedures in local government
administration in Enugu State and extent of compliance with financial statement
regulation in local government administration in Enugu State.Four research
questions and four null hypotheses guided the study. The study adopted a
descriptive survey research design and was conducted in the 17 Local Government
Areas of Enugu State. The population for the study was 331 financial administrators
in local government areas in Enugu State and due to the manageable nature of
the population, no sample and sampling technique was conducted. The instrument
for data collection was a structured questionnaire titled Compliance with
Government Financial Regulations Questionnaire (CGFRQ) which was face-validated
by three research experts: two from the Department of Vocational Teacher
Education (VTE) and one from Department of Public Administration and Local
Government (PALG), all from the University of Nigeria,Nsukka. Cronbach Alpha
reliability method was used to determine the internal consistency of the
instrument. The result yielded a high coefficient of 0.92. Three hundred and
thirty one copies of the questionnaire were administered and retrieved from the
respondents by the researcher with the help of three research assistants. The
data collected for this study was analyzed using mean to answer the 4 research
questions and standard deviation to determine the closeness or otherwise of the
responses from the mean while Analysis of Variance (ANOVA) statistics was used
to test the 4 null hypotheses at 0.05 level of significance and at 327 degree
of freedom with the use of Statistical Package for Social Sciences (SPSS)
version 20.The findings of the study showed that financial administrators to a
low extent comply with financial estimates regulations; revenue collection
procedures, expenditure procedures, and financial statement regulations in
local government administration in Enugu State. It was recommended among others
that a monitoring body should be put in place by both the state and federal
government to sanction all offending officers who would not comply with the
estimation procedure stipulated in the Revised Financial
Memoranda.
CHAPTER ONE
INTRODUCTION
Background
of the Study
The worth of
any local government is determined by the quality and quantity of services it
renders to the people at the grassroots. Local governments are the third tier
administrative structure in Nigeria, created to bring government closer to the
people at the grassroots and render social services to the people (Agba, Ogwu
and Chukwurah, 2013). According to Agi (2002), local government is a political
authority set up by the federal government as subordinate authority for the
purpose of dispensing or decentralizing political power. Akpan (2005) defined
local government as a separate tier of government that enjoys some reasonable
measures of autonomy, with elected representatives as officials especially in a
democracy. Local government, therefore, is a political subdivision of a nation
which is constituted by law and has sub-national control of local affairs
including the power to impose taxes or to extract labour force for prescribed
purposes. According to Oguonu (2004), the success and the effectiveness of
local government depend largely on the financial resources available to the
individual local governments and the way these finances are utilized by the
local government administrators in the course of the administration.
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