ABSTRACT

Local governments in Nigeria are established for political administrative and service provision purpose. In this work we look at how government funds are being managed and controlled at local government levels in Nigeria with particular reference to Umuahia N011h Loc.J Government in Abia State, Nigeria. Control is defined as the process of ensuring that resources are obtained and used effectively and efficiently in the accomplishment of organizational goals. ln this work the problems are to know why has the local government has not lived up to its expectations; what are the causes o[ those seemingly conspicuous weakness and the challenges of the local government. The objective of this work is to identify the problems facing the local government accounting officers in achieving on effective management frequency of auditing and investigation as a tool for fund control in the Umuahia North Local Government. In the research methodology the researcher explain how the research work was actually carried out the method and procedures adopted in the collections of data which were analyzed in the next chapter. In this the researcher used primary and secondary data in her analysis and tests. She also applied chi-square (X)2 formular in testing of hypothesis. From the findings of the researcher, the local government has not external investment either in real estate or financial estate. After all the tests, the local government does adhere strictly lo budget provisions in its expenditure or fund, and n.aintain effective accounting and internal control. But informal discus proved otherwise. I recommend that the local government should increase :n their external investment to earned profit and they should established their internal control and maintained it.

CHAPTER ONE " 1.0 Introduction l 1.1 Background of the Study 1 1.2 Statement of the Problem 3 1.3 Objectives of the Study 4 1.4 Research Question 5 1.5 Statement of Hypothesis 5 1.6 Scope of the Study 6 ,• l.7 Limitations of the Study 6 1.8 Significance of the Study 7 lV , . !..

CHAPTERTWO 2.0 Literature Review 9 2.1 Introduction 9 2.2 The Philosophy of Fund 9 2.3 Sources of Local Government and Types of Expenditure 12 2.4 2.5 2.6 2.7 2.8 .. 2.8.1 2.8.2 2.9 Budgetary Approach to Fund Management 16 Budget Preparation in Local Government 17 Accounting for Public Funds 19 Control and Accountability 20 Budgetary Control in Local Government 21 The Chairman, Secretary and Treasurer on Control Function 22 Internal Audit and Control Functions 25 Audit Accounts of the Local Government 25 2.9.l External Auditors and Financial Reporting in Local Government 29 2.9.2 Relationships between the External Auditors and Internal Auditor 29 2.9.3 Fraud Detection, Prevention and Control in Local Government 31 '

CHAPTER THREE Research Methodology 35 v I : ... :

CHAPTER FOUR 'Q '. ' 4.0 Data Presentation and Analysis 42 4.1 Introduction 42 4.2 Data Presentation 42 4.2.l Sex 42 4.2.2.1 Data Presentation 45 4.3 Test of Hypothesis 52 4.4 Interpretation of Results 58 ., Vl r . .

CHAPTER FIVE 

LIST OF TABLES