CERTIFICATION
I, Ayeni Afolasade with matriculation number SO17220 from department
of Finance hereby declare that i undergo three months of industrial
training programme at IDO/OSI Local Government in the Department of
finance this report is written by me to best of the practical knowledge I
gained during the course of the training.
1
DEDICATION
This SIWES report is dedicated to God almighty, the author and finisher of my faith,
to my parents, Mrs Ayeni for her supports and my loving brothers and sisters.
2
ACKNOWLEDGEMENT
Special thanks to Almighty God and all those who as contributed
immensely to the success of my industrial training programme, most
especially my Mother Mrs Ayeni for her moral, financial and parental
support, my gratitude goes to my SIWES Supervisor Mr Abayomi Taiwo
Gabriel, and all the staff in the department of Finance in Ido/Osi Local
Government, Ido Ekiti, Ekiti State.
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TABLE OF CONTENT
CERTIFICATION
DEDICATION
ACKNOWLEDGEMENT
TABLE OF CONTENT
ABSTRACT
CHAPTER ONE
1.0 INTRODUTION TO SIWES:
1.1 scope of student industrial work experience scheme (SIWES)
1.2 Aims and Objectives of SIWES
1.3 Importance of SIWES
1.4 Bodies involved in the management of SIWES
CHAPTER TWO
2.0 History of Ido/Osi Local Government, Ido-Ekiti
CHAPTER THREE
3.0 Work Experience
3.1 Department
3.2 Formation of work in the Department
CHAPTER FOUR
4.0 Department of Finance
CHAPTER FIVE
5.0 Conclusion and Recommendations
5.1 Conclusion
5.2 Recommendation
4
ABSTRACT
The SIWES (Student’s Industrial Work Experience Scheme) was design
to enable the student to give account and details of their training
experience during the period of three months. It was on this note that am
giving account of my experience gained at the Ido/Osi Local Government,
Ido-Ekiti, Ekiti State in the Department of Finance. During the course of
training I was made familiar to Seven (7) different Sections in the
Department and materials and organogram of the Local Government that
I have to work with Finance Department. The Department comprises of
seven sections which were established under the Ido/Osi Local
government.
They include, Advertisement, Accounting Department, Cost Accounting
Department, Audit Department, Financial, Cash Department, and Credit
Department. There are also the Tutor General/Permanent Secretary’s
Office and internal Audit Unit which is headed by a Professional internal
Auditor. Which happened to be the year 2015, and also in the same year,
in the same Local Government in the Finance Department, As we all know
that Finance techniques and method by small business owners,
information technology adoption as well as research in credit accessibility
for SMEs, the basic work in the department are the accounting and
Finance techniques shares, another that staff used to work out there is the
expenses which improve chances, collection of their Taxes, monthly
Financially statement and their income expenditure.
CHAPTER ONE
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1.0
INTRODUCTION TO SIWES
The student industrial work experience scheme (SIWES) is a
practical training programme undertaken by student for six months
as a requirement for the completion of their programme .The SIWES
programme was established in the year 1971 .It is to offer the student
an opportunity to gain radical and working experience in relation to
their field of study .The programme enables student an avenue to
put to practice all that had theoretically being taught in class and
thus gain working experience during their study The six month
industrial training programme has offered me to exposure to the
serve required of me that are related to my field of study and also
extensively practice all that I have learn in class.
1.1
SCOPE
OF
STUDENT
INDUSTRIAL
WORK
EXPERIENCE SCHEME (SIWES).
It is to ensure that student in practical aspect of their courses
of study so as to acquire knowledge needed to face real life
situation as opposed to the formal education had on their
various disciplines Student industrial work experience scheme
(SIWES) is a planned and supervised training intervention
based on stated specific learning and career objective and
genre towards developing their occupational competence of
the participants it is a programme required to be undertaken by
all student to be able to relate the theoretical training in school
with practical experience in curse of training period .The
scheme also create avenue for the student to be able to familiar
handle and cooperate machines equipment whereby enhances
and widening the scope of student towards future tasks.
SIWES was established by industrial training fund (ITF)1973
to solve the problem of lack adequate practical skills
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preparatory for employment in industries by Nigerians
graduate or tertiary institutions .The scheme exposes student
to industrial based skills necessary for a smooth transition
from the classroom to the world work ,it affect student a
tertiary institution the opportunity of being familiarized and
expose to the needed experience in handing machinery
and equipment which are usually not available I the
educational institution participation in SIWES has become
necessary precondition for the award of Diploma and degree
certificates in specific discipline in most institution of higher
learning in the country in accordance with the education policy
of government
Operators: The coordinating agencies (NUC, NCCE, NBTE)
employers of labour and the institution
Funding: The Federal Government of Nigeria
Beneficiaries: Undergraduate student of the following:
Agriculture, Engineering, Environmental Sciences, Education,
Medical, Science and pure and Applied Science.
Duration: four month for polytechnics and college of
education and six months for the universities.
1.2
AIMS AND OBJECTIVE OF SIWES.
The main of the program was skilled training programme
designed to expose and prepare student of universities,
Polytechnics College of education, college of agriculture, and
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college of technology foe the industrial work situation they are
likely to meet after graduation.
 To also provide an enabling where student can relatively
develop chosen career as well display their practical
experience .To expose student to environment in which
they will eventually work.
 It also enables them to see how their future professions
are organized in practical endeavors for employment.
 Expose student to work method and techniques in
handling equipment and machinery not available in their
institution.
 Provide student with an opportunity to apply their
knowledge in real work situation thereby bridging the
gap between theory and practices.
 Enlist and strengthen employers involvement in the
entire educational.
 Process and prepare student for employment in industry
and commerce.
1.3
IMPORTANCE OF SIWES
These include:. Understanding real life situation in industrial
organization and their related environment and accelerating the
learning process of how his/her knowledge could be used in a
realistic way.
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 Enabling to execute more informed judgment and accepting
responsibility for it.
 Recognizing that financial and economic limitations play a
more important role in all activities.
 Understanding that the problems encountered in the industry
rarely have unique solution and gaining experience to select
the optimal solution from the many alternatives available.
 Learning accepted safety practices in the industry.
 Developing a sense of responsibility towards society.
 Developing personality and communication skills for future
roles as managers in all worth of life.
1.4
BODIES INVOLVED IN THE MANAGEMENT OF
STUDENTS
INDUSTRIAL
WORK
EXPERIENCE
SCHEME (SIWES).
The bodies involved are Federal government, Industrial Training
Fund (ITF), other supervising agencies are: National commission
(NUC), National Board for technical Education (NBTE), National
Council for Colleges of Education (NCCE).The function of these
agencies above include among other to:
 Ensure adequate funding of the scheme.
 Establish SIWES and accredit SIWES unit in the approved
institutions.
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 Formulate policies and guideline for participating bodies
and institution as well as appointing SIWES coordinators
and supporting staff.
 Supervise student at their places of attachment and sign their
log book and ITF form.
 Vet and process student log books and forward same to ITF
area offices.
CHAPTER TWO
2.0
HISTORY OF IDO/OSI LOCAL GOVERNMENT, IDO
EKITI, EKITI STATE.
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The local Government is full of rural towns and villages and is one
of the Local Government districts of Ekiti State. It is close to Moba,
Ijero, Ilejemeje and Ado. The local Government headquarters is
between Ido town and Usi. The local government has (11) elected
councillors in the wards of the councils areas, some of the towns
under the local government are; Aaye, Ifishin, Orin, Osi, Ido, Ifaki,
Usi, and many others.
The local government is basically agrians with people cultivating
root crops and grains e.g Yam, Cassava, Miazes, Rice, e.t.c. they are
a few cottage industries in the Local Government devoted primarily
to processing of agricultural produces others industrials undertaking
are in the area of printing, bakeries, weaving and carpentry e.t.c. the
thriving industries in the local government includes Timber/Saw
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mills which includes Ido- Ekiti Sawmill, Ora-Ekiti sawmill,
Bakeries which includes Negro special Bread, Bejisko Bakery,
Banks which includes UBA Usi Banks, Harvest Micro finance
Banks, also Commercial Press Ido-Ekiti, Jaleyemi printing press in
Usi Ekiti, the local Government enjoy electricity but unreliable in
supply. Each of the towns in the Local Government area has cultural
festival which are celebrated at different times of the year. For
instance the ifaki people have the okorobo festival. They are 51
public primary schools 16 private nursery/primary schools, 16
public secondary school and 4 private secondary school in the local
government. The Public Health centres in the Local Government
area are: Ayodele Clinic and ultra-modern Basic Health centre. Also
Federal Medical centre, Ido-Ekiti.
FUNCTIONS OF LOCAL GOVERNMENT
According to the fourth schedule of Nigeria 1999 constitution, the
functions of local government are:
1. Formulating the economy planning and development of schemes
for local government area.
2. Collection of rates and issuance of radio/television licenses.
3. Establishment and maintenance of cemeteries and home for
destitute.
4. Licensing of bicycles, trucks, canoes, and other articulated
vehicles/cars.
5. Establishment, maintenance and regulation of slaughter house,
slaughter slab, markets, motor parks and public convenience.
6. Construction and maintenance of road, streets, street lights, parks
and gardens, open space or such public facilities.
7. Naming of roads, street and numbering of houses.
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8. Registration of birth, death and marriage.
9. Promoting and maintenance of sewage and refuse disposal.
10. Control and regulation of outdoor advertising, movement and
keeping of pets, shops and kiosks, restaurants, bakery and either
places for sales of foods to the public.
11. Licensing, regulation and control of the sales of liquor.
12. Maintenance of primary educational schools and primary health
care services.
13. Provision of recreational, provision and maintenance of
amusement parks
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CHAPTER THREE
3.0
WORK EXPERIENCE
Explanation was given towards the department on how they work, mode
of working and method of generating income.
(i)
Examine the effectiveness of financial management of local
government fund in the Ido/Osi LGA
See how effective is the control mechanism of financial
management of local government in Nigeria is.
Proffer mechanism for ensuring adequate controls are
maintained over local government expenditure.
Appraises the level of financial control system in operative in
the local government.
(ii)
(iii)
(iv)
3.1 FINANCE DEPARTMENT
This department comprises of (7) sections which were established
under the Ido/Osi Local Government
They includes:
1.
2.
3.
4.
5.
6.
7.
Advertisements
Accounting department
Cost account Department
Audit Department
Financial Planning and budgeting Department
Cash Department
Credit Department
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STEPS TO FINANCIAL MANAGEMENT IN LOCAL
GOVERNMENT
In order to achieve prudent and sound financial management at the local
government level, the financial adviser at the local government needs to:
1. Determine the financial objectives of the local government
2. Outline the plans of action and select the policies for achieving these
objectives
3. Carryout financial plans, input these in the local government overall
plans.
4. Compare the actual with plans, evaluate any form of variances from the
plans.
5. Establish causes of variances.
6. Review process/plan and redesign/revise the objectives where
necessary.
3.2 FUNCTIONS AND SOURCES OF FUND TO THE TO IDO/OSI
LOCAL GOVERNMENT AREA.
It is an obvious fact, that no central governments can satisfactory conduct
administration from the capital through the civil servants based at the
headquarters without some form of decentralization. Hence, one of the
vital purposes of having local government is to provide a means of
running varied. Service depending on the peculiarities and special needs
of the particular local government area. The governments determine and
assign specific function to local government. In the exercise of such
powers, however the government is guided by the principle that, the
functions of local government bodies should centre on:
15
(a) Those activities which required detailed knowledge for effective
performance.
(b) Those activities in which success depends on the responsiveness and
full participation of local communities.
(c) Those activities which are of personal nature that is requiring
provisions, close to where individuals affected lives and in which
significant use of discretion of understanding of individuals need. It is in
this basis of the principles that “Fourth Schedule” of 1990 Nigeria
constitutions spells out the following main function of local government.
(a) Formulating of economy planning and development of skill for local
government area.
(b) Collection of rates and issuance of radio television license.
(c) Establishment and maintenance of cemeteries and home for destitute.
(d) Licensing of bicycles, trunks, canoes, wheelbarrows and cars.
(e) Establishment, maintenance and regulation of slaughter houses,
slaughter slap market Motor Park and public commerce’s.
(f) Construction and maintenances of road, streets, street lights, parks,
gardens, open space or such public facilities as many be prescribed from
time by the state House of assembly.
(g) Naming Roads Street and numbering of houses.
(h) Provisions and maintenances of sewage and refuge disposal.
(i) Registration of birth, death and marriage
(j) Control and regulation of; (i) Outdoor advertising landings (ii)
Movement and keeping of pets of animals (iii) Shop and kiosk (iv)
Restaurants, bakery and other places for sales of food to the public. (k)
Licensing, regulation and control of the sales of liquor.
16
(l) Provision of recreational, provision and maintenance of facilities like
amusement park for relative purposes.
(m) Provision of transport services
(n) Maintenance of primary education funding administering the exact
byelaws.
(o) Maintenance of primary education funding administering the exact
byelaws.
(p) Provision of water for the use of the people so as to forestall water
before in the local area.
Legal framework for financial management practices and standards
in local government in Nigeria
The accounting practices and some standards addresses various financial
management issues in respect of transparency, accountability,
consistency, integrity, economy and value for money decision.
In respect of financial reporting, financial management ensure that report
are not only timely and reliable but also a useful document for decision
making by the various interest groups or stakeholders. The legal
framework for financial management in Nigeria involves the followings:
1. Constitution of the Federal Republic of Nigeria (hereafter called the
1999 constitution) this provides the general framework for local
government financial administration and controls of public funds. It
outline the various types of government funds, revenues and expenditures
patterns. It provides the basis for reporting financial transactions in
government in terms of budgeting, accounting and auditing.
2. The Finance (Control and Management) Act 1958 as amended and now
referred to as CAP F 26 LFN 2004 This outlines the management and
general operation of public funds. It regulates the accounting systems,
outline the various books of account to be maintained and the process and
17
procedure to be followed in the preparation of government final account
and financial statements.
3. The Annual Appropriation Acts as provided for by 1999 constitution.
This is an annual budget process of the revenues and expenditures to be
embarked upon within a particular calendar year as approved by the
appropriate legislative arms of local government.
4. The Public Procurements Act 2007 as amended. The Act aimed to
ensure transparency, probity, accountability, competitiveness, efficiency
and effectiveness in local government procurements of goods, services
and execution of works.
5. The Fiscal Responsibility Act 2007. Financial control in government
was re-affirmed through the passing into law in 2007, the Fiscal
Responsibility Acts 2007. The Act aimed at installing the best practices
in public financial management, thereby, enthralling transparency,
accountability and good governance in public sector. The objectives of
FRA Acts is to promote transparency in budget preparation, execution and
reporting; strengthen accountability and sound financial management in
government; ensure high standards in financial disclosure; ensure prudent
management of financial resources; and ensure access to comprehensive
information on government financial activities by the citizens.
6. The Treasury and Finance Circulars These are various forms of
directives and guidelines issued by ministry of finance to guides the
conduct of public sector financial management
7. The Financial Memoranda. This is a third tier legal framework which
serves as an instrument of accounting and financial control. It outlines
rules on action acceptable and those deemed unacceptable in local
government. It is a body of governing rules and record keeping. It covers
areas and approaches to financial reporting, sources of funds, expenditure
allocation patterns; and funds management.
8. International Public Sector Accounting Standards Board (IPSASB).
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9. Local Government Administrative Laws 10. Local Government Bye
Laws. 11. The Audit Act (1956) this outlines the process and guidelines
on the audit of local government financial statements.
CHALLENGES OF FINANCIAL MANAGEMENT IN NIGERIA
LOCAL GOVERNMENTS
In Nigeria, local governments face different challenges according to their
peculiarities and status. Some of the common are:
1. Constitutional challenges – creation of state and local government joint
account according to section 162(6) of 1999 constitution.
2. Lack of technical and managerial capacities for providing qualitative
public goods and services delivery.
3. Shortage of funds for meeting the overgrowing expenditures.
4. Lack of bye laws and other legal guidelines.
5. Lack of operational vehicles for revenue collections and other
administrative activities.
6. Political and traditional intervention on revenue drives, leading to loss
of revenues.
7. Overbearing power of state governor on control of local government
revenues and financial resources.
8. Corruption and political instability.
9. Lack of budget discipline
10. Lack of financial autonomy
19
FINANCIAL MANAGEMENT DECISION IN LOCAL
GOVERNMENT
There is need to match expenditure with revenue, this is one principle of
financial management. Money plays a vital role in the management of an
organization inclusive of local government. Finance (money in broader
sense) is the lifeblood of any organization.
In local government, financial management decision function can be
broken down into three major areas of investment decision, financing
decision and efficiency/value for money decision (efficiency divided).
This is called the triangle of financial decision in public sector
Investment decision – this involves the judicious utilization of financial
resources on existing viable opportunity, with a view of earning good
returns to the provider of fund or resources (Hassan, 2010). In local
government, investment decision result from the utilization of (a)
internally generated revenue and statutory allocation to finance projects
(b) probably fund raised through loans or bonds from the money and
capital market to finance projects and infrastructural developments.
Investment decision on viable projects is arrived at after due project
evaluation. This evaluation is not only based on financial benefits but also
on the economic, social and sustainable benefits to the citizens.
Investment decision making is a core managerial function by the
executive committee of the local government. In public sector, the most
prominent investment evaluation techniques is the Cost Benefit Analysis
(CBA). CBA determined the viability of public sector projects in terms of
multitude of benefits derivable from the project with the associated cost
and along with externalities assessment. It is designed to assess economic
viability of projects from the view point of the citizens and the society. It
enhanced project appraisal in public sector with proper investment
planning, communal policy and development policy being evaluated
Financing decision – local government financing decision focus is on
the traditional taxing power to generate revenue and the collection of
20
statutory allocation. Local government in Nigeria has three sources of
revenue, these are external, internally generated revenue and loan. The
Nigeria 1999 constitution section 162 (10) defines revenue as any income
or returns accruing to or derived by the government from any source and
includes: any receipt however described arising from the operation of any
law; any receipt however described from or in respect of any property held
by the government; and any returns by way of interest on loans and
dividends in respect of shares or interest held by government in any
company or statutory body. The role of government finance is to link the
cost of government’s activity against a defined outputs.
2. Local license fees and fines – These are licenses approved for various
commercial activities at the grassroots such as general licenses (bicycle
licenses and hackney permit fees); food control (slaughter and bakery
licenses fees); social (merriment, marriage, street naming, radio and
television licenses fees); economic (tender fees and contract registration
fees); hire of plants and sale of unserviceable equipment and goods.
3. Earning from commercial undertakings – This involves revenues
from motor parks, markets, investments, agricultural produces and other
commercial activities.
4. Rent – These are proceeds from government properties such as landed
property, building either for commercial or residential, parks and events
center.
5. Interest / Dividend – These are incomes from any form of financial
investments such as fixed deposits, debenture and shares.
6. Miscellaneous Receipts – These are proceeds from any other forms of
sources not classified under any of such heading above, such from hearse
and cemetery, letter of identification, drug revolving fees, health services
and miscellaneous activities. In addition, other sources of revenues
available to the local government with higher authorities approval for
compliance and utilization are the use of short term funds such as bank
21
overdraft, money market instruments, invoice discounting, trade credits
and factoring; the use of medium term sources such as venture capital,
hire purchase, term loans and mortgage of property; while the third group
is the use of long term sources such as bonds, debentures and investing in
shares through the capital market.
22
SOURCES OF LOCAL GOVERNMENT FINANCE
A. INTERNAL SOURCES REVENUE
(a) Taxes: Local government establishes status that empowers the
councils to collect taxes from employed adults in the locality. This form
of tax is normally called community poll tax.
(b) Rates: The 1999 constitution of the federal republic “fourth schedule”
for instances, empower local government to control and regulate certain
activities within their domain, in exercising this power, each council
imposes sources fees on the operation of specific economic activities and
provision of services. Fees and charge on this wide range of activities are
called rates. Include:
(i) Licenses fees: Under this item, we have various sub- heads: General
licenses: This include charges such as bicycle license and hand pushed,
truck fees, hackney permit fees, liquor license palm wine tapper/sellers
squatters and hawkers permit fees.
(ii) Food Control: Which includes such charges as food selling license
fees etc?
(iii) Social charges: They include marriage registration fees,
entertainment, drumming and temporary road closure and both creation
permit fees. It’s also contains naming of street registration fees,
radio/television license fees etc.
(v)
Health Charges: This sub-head contains the following items:
impounding of animal fines, birth and death registration fees,
displeasing and maturity .E.T.C
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THE ORANOGRAMME OF THE LOCAL GOVERNMENT
24
(B) EXTERNAL SOURCES OF REVENUE:
(a) Statutory allocations: this is revenue accruing to local government
from either state or federal government account; councils are entitled to a
certain percentage of the federation account (presently 20%). State
government is also required by law to provide funds for the local
government within each state. The 1999 Nigeria constitution categorically
makes statutory allocation to local governments very clear. According to
section 7(6a - -b) of the constitution: “the national assembly shall make
provisions for statutory allocation of public revenue to local government
council with the state.
25
CHAPTER FOUR
4.0 Department of Finance
Challenges of financial management in Nigeria local governments In
Nigeria, local governments face different challenges according to their
peculiarities and status. Some of the common are:
1. Constitutional challenges – creation of state and local government joint
account according to section 162(6) of 1999 constitution.
2. Lack of technical and managerial capacities for providing qualitative
public goods and services delivery.
3. Shortage of funds for meeting the overgrowing expenditures.
4. Lack of bye laws and other legal guidelines.
5. Lack of operational vehicles for revenue collections and other
administrative activities.
6. Political and traditional intervention on revenue drives, leading to loss
of revenues.
7. Overbearing power of state governor on control of local government
revenues and financial resources.
8. Corruption and political instability.
9. Lack of budget discipline
10. Lack of financial autonomy
National Financial Intelligent Unit (NFIU)
Financial issues are of great significance to local government, this
involves budgeting, sources of funds, accountability, transparency and
26
effective decision making, reporting and controls. This call for financial
autonomy on the sources and management of local government resources
without undue controls or interference from the state and federal
government. This is to ensure that the managers of local government carry
out their duties efficiently, effectively and for the wellbeing of the people
and the communities at large. In order to enhance the financial autonomy
of local government finance, the Federal Government of Nigeria approved
the overbearing control of NFIU on the local government finance, this
approval and control is to ensure that the local government funds are no
more under the control of state governments.
NFIU GUIDELINES ON LOCAL GOVERNMENT NFIU guidelines
meant to protect the financial integrity of expenditures, ensure good
financial management, fight corruption and address money laundering
challenges at the local government level, and also to stop the state
governor from tampering with local government money. It will also serve
the purpose of freeing financial system from being flooded with cash
which criminals use to escape transparency, accountability and criminal
investigations. The guidelines stipulated that banks should not allow any
form of transactions from any Local government joint account without
first reaching the Local government account. If withdrawal takes place
before the fund reaches the Local government account, such bank is to be
surcharged and sanctioned locally and internationally. Joint local
government allocation account will only exist for the receipt of allocation
to be shared to only local governments in accordance with section 162(7)
of the 1999 constitution as amended and not for any other transactions or
purposes. It encourage local government to have a single salary account,
single revenue account and single running cost account and not to
maintain additional accounts for purpose of mitigating money laundering
and helping investigation and accountability. Cash withdrawal from any
local government accounts have cumulative withdrawal of ₦500,000 per
day while other form of payment to be done through a valid crossed
cheques or electronic funds transfer. All financial transactions by the
27
Local government will be registered and monitored by NFIU through Epayment module.
28
CHAPTER FIVE
5.0 Conclusion and Recommendations
5.1 Conclusion
5.2 Recommendation
CONCLUSION
The prospect of good financial management in local government starts
with local government administrators. Local government administrators
or management should act in the same manner as their counterparts in the
private sectors act or work. The private sectors management put more
emphasis on corporate growth, business viability and maximization of
shareholders wealth, in the same vain, local government management
should ensure efficient and effective management of financial resources
of local government for sustainable growth and development; and
maximization of citizens’ needs and expectations. The introduction of
modern financial management practices in local governments will
increase efficiency in the management of financial resources and financial
capability, improve debt management and capital investment decision,
enhance budget and budgetary control, and also enhance quality of
transparency and accountability in service delivery. A good financial
management is vital to government to achieve value for money from all
public expenditures, reduce government budget deficit and improve
budget structure and reporting, and enhanced good quality of public
services. The success of financial management at local government level
depends on the vibrant, efficiency and effectiveness of the treasury
department. The finance and treasury department is the pivot department
for all financial administrations. Therefore, the success or failure of local
29
government lies on the way and manner the financial management is
being administers and maintained. Effective financial management will
enhance rapid development at the local government level and ensure
efficient allocation of scarce resources, in addition, a sound internal audit
unit and control will add value to a good and sound financial management
in revenues collections and expenditures disbursement. A good budget
and budgetary control mechanism must be entrenched for a sound and
effective financial management. In addition, effective financial
management will minimize the level of fraud and corruptions affecting
local government system and will contribute to development at the
grassroots.
RECOMMENDATIONS
1. Financial planning and control should be seen as an important aspect
for effective financial management.
2. Financial adviser (Council treasurer) should ensure adequate revenues
are achieved for meeting the expected expenditure of the local
government.
3. The local government should prepare accurate and reliable budget are
prepared with good budget monitoring and budget plan, for effective
implementation and enhancement of good financial management.
4. Good and sound internal control mechanism should be put in place to
minimize fraud and wastages in financial resources and also to enhance
performance in the provision of public goods and services.
5. Local government should have full financial and administrative
autonomy by stopping of state joint local government allocation account
in order to forestall financial resources and administrative independence.
6. Independent National Electoral Commission (INEC) should be in
charge of conducting local government election, this is to guide against
imposition by state governor that breed financial impropriety,
30
indiscipline, corruption, and inefficiency in the administration of local
government affairs.
7. Due process mechanism should be adopted in the procurement and
award of contract at local government level.
8. The accounting system should be improved upon to assist management
to plan operations, keep track of resources, enhance decision making and
ensure proper accountability.
9. The finance of local government should be tightened with appropriate
measures in minimizing loss of council’s fund
31