THE SIGNIFICANCE OF FINANCIAL STATEMENT IN LOCAL GOVERNMENT ADMINISTRATION (A STUDY OF IKONO LOCAL GOVERNMENT COUNCIL)
This study was carried out to find out the importance of financial statement in local government administration using Ikono Local Government Council as study area. To achieve this objective, five research questions and three research hypotheses were formulated to guide this study. The data was collected from both primary and secondary sources, the primary data were collected the help of a well-structured questionnaires of two sections administered to the staff and management of Ikono local government council. The collected data were analyzed with tables and simple percentages to analyses to research questions while chi-square statistical method was used to test the research hypotheses. The findings research hypotheses reveal that there is accuracy in the financial statement prepared by Ikono local government council. The study concluded with some recommendations that timely and adequate statement of accounts should be presented to the management for effective administration and decision making in the local government council and also, the council should collaborate with accounting bodies to organize regular seminars and workshops to accounting personnel to inculcate in them the technical knowledge know-how to keeping purpose in an organization
1.1 Background of the Study
The significance of financial statement on the management of a local government cannot be neglected in the modern world of today, in other words, it is important in the management of any local government or a firm.
In further in the significance of financial report on the management of a local Government, it enhances at a glance of financial management report at any point in time.
It makes all affair of any management to be clear. The management of any business totally depends on the financial report/statement of such establishment.
In internal control system, the financial accounting contributes much to the progress and in the controlling of any business. It is not only enhances progress, it safe good the organization against waste fraud, inefficiency and this promote accuracy and reliability of accounting information at all time.
Financial accounting covered those activities related to the preparation of certain report which are known as financial status of a firm at a particular time, the firms activities and result profit or losses during the most recent period of flow of resources accruing within the firm during the same period.
The geo-political region now known as Ikono local government area was created on the 15th March, 1987 during the creation of Akwa Ibom State by the federal military government, during the administration of general Ibrahaim B. Babangida.
Ikono local government area was covered out from the former Ikono Ibom cross entities (ndem) Ibibio division such as Etefia Ikono.
The headquarter located in Ibiaku Ntuk Okpo
Ikono is a bounded on the north by Ini Local Government Area south by Abak and from Uyo local government councils
Population and Size:
The people were belongs to the Ibibio nationality with distinct linguistic trait. They are predominantly Christians, while few still practicing traditional, African region Ikono has an estimate population of 2011577 (1991) population census, with land mass of about 251,727 square km
It is located within the think mangrove forest belt which provides an enablement for agricultural.
The major occupation of the people is farming pottery, tradition fishing etc.
Clan and villages
Ikono comprises of two major ethnic groups.
Economic activities and investment
One basic problem of the area is the absence if industries. This is largely due to the developing nature of the economy. The area is however most suitable for some industrial in ventures such as palm producing made possible by the existence of extensive oil palm trees and agriculture with large arable land.
About the Local Government Council
The local government council is divided into two arms viz:
1. The executive arm headed by the executive chairman with supervisors of the legislative headed by the leader.
(ii) The executive councilors representing each ward.
Ikono local government has many department each headed by the directors and units headed by the various unit heads
The departments are:
(i) The Administrative Department
(ii) Working Department
(iii) Agriculture and natural resources department
(iv) Financial and supplies department
(v) Education and planning Department
(vi) Researching and statistics department.
The overall head among the staff of the local government is the head of local government services.
1.2 Statement of the Problem
It has been observed that inappropriate and inadequate control measures characterized by fraud, inaccuracy of records.
Embezzlement and lack of financial information and other irregularities has become a concern in the local government council. The major risk in the local government council is that financial statements are not fairly presented due to inadverted or intentional errors. There is no transparency and accountability in the local government council due to inaccuracy of financial record and deliberate omission figures in the financial statement.
Also, the inability of workers to efficiently and effectively utilize resources lack of budget and lack of proper control record has led to wastage, and fraud in the local government council.
It is against the problems mentioned above which are associated with lack of financial statement in the local government council that elucidate my interest to study the significant of financial statement in the local government administration.