+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

THE IMPACT OF FINANCIAL MANAGEMENT IN CONTROLLING FRAUD IN THE LOCAL GOVERNMENT SYSTEM

  • Type:Project
  • Chapters:5
  • Pages:65
  • Format:Microsoft Word
(Public Administration Project Topics & Materials)

 

ABSTRACT

This research work was aimed at studying the Impact of Financial Management in Controlling Fraud in Olamaboro Local Government Council. The objective of this work is to provide realistic strategies on how the resources of the local government can be effectively controlled so as to avoid fraud and misappropriation. The researcher used both primary and secondary methods in collecting data. Analysis of the data was done through the use of simple percentage method for easy understanding. It was revealed after the investigation that effective financial management and control is very necessary for good governance in Olamaboro local government area. And for this to be possible, there must be accountability for any money spent. At the end, the researcher also made the recommendations that there is need to appoint competent staff to ensure that appropriate records such as balance sheets are kept and updated, and that the need for the internal and external auditors to work together cannot be over emphasized.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The question of financial control and management or Accountability has received a lot of attention in all governments of the world. Nigeria right from the colonial period in particular towards the attainment of independence also devised a way of controlling government finance.

There is no way public sector especially that of local government area can operate without adequate finance. It will be needed to satisfy the aspirations of the masses.

Government is saddled with the responsibility of providing security of lives and properties, educational services as well as construction of roads and bridges. These and many other services required that a lot of finances are needed and are generated to be spent on doing every thing for them but failed to realize that government resources are limited while the societal needs are unlimited.

However, there is a need to manage the limited resources so that social expectation can be met. Today, that desire to get rich quickly among the political administrators and the top officers of local government is a shameful practice that subjected them to defraud local government financial resources careless spending of public fund.

Besides, the act of accounting or giving bribes and 10% kick back, tips, embezzlement, misappropriation tax evasion, over-invoicing under invoicing and all sort of fraudulent practices is the general observation and complaint of the public. These raised the need for major central and management of financial resources.

To this end, financial management is another effective tool that can limit misappropriation, embezzlement and all such fraudulent practices especially in local government administration.

People’s fraudulent act can only be controlled through effective financial management according to Pandey (1979) financial managements is that management activities which are concerned with the planning and controlling of the firms financial resources.

Bagaji (2002), defined financial management as a liability which entails the establishment of a pattern of control over receipt and expenditure so that public funds can be used for their purposes.

Effective financial management is the same answer for prevention of fraud, embezzlement and misappropriation of funds.

1.2 STATEMENT OF THE PROBLEM

It is observed that the account of Olamaboro local government is not prepared in accordance with the rules and regulations (constitution). Non-payment of revenue into government account, fraud and executive embezzlement is rampant. Citizens of Olamaboro local government area itself were complaining of abandoned projects not executed and the local government also in the same way, complains of inadequate funds to meet up with the obligations. It is on this note that the researcher wishes to see if financial management could prevent fraud in Olamaboro local government area and ensure effective financial management in controlling local government financial resources.

1.3 OBJECTIVES OF THE STUDY

  1. To examine the strategies employed in financial management and control in Olamaboro local government area
  2. Aim at assessing the causes of fraudulent practices in the local government area
  3. To identify the constraints which make finance to be audited by auditor in Olamaboro local government area
  4. To curb cases of embezzlement and misappropriation of funds
  5. To make some recommendations on how to evoke effective financial techniques in the management and control of financial resources in the public sector.

1.4 SIGNIFICANCE OF THE STUDY

  1. The current study will be of importance in nature to control fraud in Olamaboro local government
  2. The study will provide financial information for the management to take quick decision where possible
  3. The study is going to be useful for planning and budgeting during the year
  4. It will equally be useful to evaluate the effort of local government area in preventing fraud among the officers

1.5 RESEARCH QUESTIONS

  1. Could financial management be effective in controlling fraud in Olamaboro local government area?
  2. What are the strategies used in controlling fraud in Olamaboro local government area?
  3. Why little generation of funds or revenue in Olamaboro local government area?
  4. What are the causes of fraud in the local government area?

1.6  SCOPE OF THE STUDY

The study is carried out to analyze the effects of financial management in controlling fraud in a public sector. The current work covers an aspect of resources control, fraud prevention and especially treasury management.

The study will be limited to Olamaboro local government headquarters especially in the treasury department.

However, the result shall be generalized on the entire Olamaboro local government area and all the local governments in Nigeria. The study covers the entire staff of treasury department of Olamaboro local government area who are responsible for policy execution. It examines the causes of fraud, the techniques for controlling it and the level of staff involvement for the 2013-2014.

1.7  DEFINITION OF TERMS

FINANCIAL MANAGEMENT: Pandey (1981), defines financial management as that managerial activity which is concerned with the planning and controlling of the firm’s financial resources.

MANAGEMENT: Nwachukwu (1988), defines management as getting things done through other scientifically defined coordination controlling of the organization resources.

FINANCE: Inegebeneber and Agodudu (1995), defined finance as concerned with cash or resources for purchasing goods

FRAUD: Aliyu (2002), conceptualized fraud as deception or cheating in one way or the other, which is not acceptable by law.

CONTROL: Johnson (1991) defines control as the process by which managers ensure that resources are obtained and used effectively in accomplishment of a goal.

FINANCIAL CONTROL: Abubakar (1992), defined financial control as ‘’the institutionalization of administrative and statutory measures to ensure that appropriate funds are spent according to set down rules and regulations, minimization of waste, checking dishonesty and extravagance and the promotion of economy and effectiveness in the conduct of the financial activities of government.

IMPACT: For the purpose of the work, impact means effective change either negative or positive

L.G.A: An abbreviation that connotes Local Government Area

PUBLIC SECTOR: Basu Rumri (2001) defined public sector as the arm of government policies and actions.

FINANCIAL RESOURCES: Simply means cash or money or revenue of a local government for financing capital and recurrent project.

1.8  ORGANIZATION OF STUDY

The project is limited to the Impact of Financial Management in Controlling Fraud in Local Government Area. with particular reference to Olamaboro Local Government Area.

The study is organized into five chapters; chapter one is all about general introduction or the background of the study, statement of the problem, objectives of the study, significance of the study, research questions, scope of the study and definition of terms.

Chapter two talked about literature review, concept of fraud, financial management in public sector, curbing fraud through financial management, expenditure in public service and its control through financial management, expenditure in public service and its control through finance in Olamaboro local government area, and the tools of financial management.

Chapter three dwells mainly on research methodology, design, method of data collection, population and sample of the study instrument used in data collection and method of data analysis.

Chapter four comprises data presentation, analysis of data and discussion of findings.

Finally, chapter five as usual, focuses on summary, conclusion and recommendations.

THE IMPACT OF FINANCIAL MANAGEMENT IN CONTROLLING FRAUD IN THE LOCAL GOVERNMENT SYSTEM
Share This

Details

Type Project
Department Public Administration
Project ID PUB0297
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 65 Pages
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Public Administration
    Project ID PUB0297
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 65 Pages
    Format Microsoft Word

    Related Works

    (A CASE STUDY OF FIRST BANK NIG. PLC, AKPAKPAVA, BENIN CITY) CHAPTER ONE INTRODUCTION 1.1            BACKGROUND OF STUDY The impact of auditing in controlling fraud and other financial irregularities can not be over emphasized. This is due to the fact that... Continue Reading
    EVALUATION OF CHALLENGES OF FINANCIAL MANAGEMENT IN NIGERIA LOCAL GOVERNMENT SYSTEM: A CASE STUDY OF IVO LOCAL GOVERNMENT COUNCIL OF EBONYI ABSTRACT The third tier level of government in Nigeria is tier called “Local Government” it was established with the aim and the specific function to assist the higher s of government thus, the federal and... Continue Reading
    ABSTRACT In recent years the importance of good corporate governance has received significant public and regulatory attention. A crucial part of an entity’s corporate governance is its internal audit function. At the same time, there has been significant public concern about the level of fraud within organizations. The purpose of this study is... Continue Reading
    THE ROLE OF AUDITING IN CONTROLLING FRAUD IN GOVERNMENT ESTABLISHMENT (A CASE STUDY OF IDAH,KOGI STATE) ABSTRACT This research work was designed to see the role of auditing in controlling fraud in government Establishment with Idah Local Government Area of Kogi State as a case study, data for this study was collected from two major source, the... Continue Reading
    THE ROLE OF AUDITING IN CONTROLLING FRAUD IN GOVERNMENT ESTABLISHMENT. A CASE STUDY OF FEDERAL PAY OFFICE ENUGU. ABSTRACT This research work is design to achieve a specific purpose on the role played by Auditors in protection of public funds in the government establishments, ministries or government parastatals. The research goes into providing a... Continue Reading
    ABSTRACT This work titled “Fraud Control in the Local Government System; Challenges and Prospects; A Study of Ebonyi Local Government Area (2003-2014)” was aimed at ascertaining the extent to which Ebonyi Local Government Council keep adequate and reliable records of its activities, examining the extent to which auditing can help in minimizing... Continue Reading
    ABSTRACT This study is motivated by a desire to examine the determinants of disclosure of environmental audit report in annual reports and accounts. A sample of 100 companies listed in the Nigerian Stock Exchange was selected as the sample size covering the period of one... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1      Background of the study The Accountability and transparency has been critical issue in financial management of local government. It has been hampering the performances of the council and has been and is still a yet problem... Continue Reading
    ABSTRACT This research work is meant to critically appraise the concept of financial control approaches in Nigeria local government system focusing on Enugu State local Government. The researcher used both primary and secondary methods of data collected through. a.           Questionnaire administration b.          Oral... Continue Reading
    ABSTRACT In consonance with its transition of civil rule programme by the federal government this year, a lot of changes are being carried ou tin the local government. First was the election of the local government chairman and councilors on the 12th December 1987, followed by the appointment of sole administrators and replaced by the caretaker... Continue Reading