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Local Governments in Nigeria have been featured with gross financial mismanagement to the extent that the government had decides to institute periodical restricting and reform programmers. In the existence of integrity, effectiveness and efficiency in utilization of resources, the council can easily obtain unqualified audit opinion from CAG. Failure to obtain unqualified audit reports may take the council into access to LGCDG and therefore gives a negative impact to the authority it terms of service provision.It was that reason therefore, that prompted to carry about a study to assess whether local authorities effectively implement financial management systems by conducting a study at uyo Municipal Council.The research methods employed were:-questionnaires observation and interviews.The researcher employed simple selection techniques.A sample of 45 respondents was selected from a total population of units of inquiry.The study findings revealed that; still there some weakness in terms of enforcing procedures and principles guiding the authorization and access of organization’s assets and documents Also the study found an increasing rate of improperly vouched expenditure year after year and improper approvals,improperdocumentation and attachment.The study also found existence of over expenditure on some common items like fuels and allowances,caused by insistence of a reliable computerized system for budgeting and accounting activities.On the part of the functioning of the external audit unit,the findings revealed a weakness on reporting channel.The study finally found that, the financial management systems in local government Authorities are slightlyeffective,so for improvement, the study recommends:the immediate computerization of the accounting and budgeting systems,thatperformance.Finally; the council internal auditor should report direct to councilorsand to ministry responsible.The researcher really hopes that the output of this research study shall be of practical use to other individualscholars,Institutions of higher learning and Local Government Authorities of Nigeria.
BACKGROUND OF THE STUDY
This chapter presents the research findings on the role of external Audit in improving LocalGovernment Authority. Though thereare several aspects of management control systems in organizations, the researcher focused only on the financial aspect. The study therefore, explored the status of local government authorities (LGAs) external audit roles in achieving the council’s predetermined goals and objectives. The study was conducted in uyo Municipal Council (UMC) in the period of December 2011 to June 2012. The chapter also deals with giving the background of the Local Government Council (LGAs), background of the problem, statement of the problem, objective s of the study, research questions, significance of the study, scope, limitation of the study that the researcher will face and delimitation which in turn will help in investigating this topic of the study coming to the good conclusion and recommendations. From this subject a number of areas will be covered in detail, which includes the theory behind audits and other control bodies which promotes public sector accountability through good corporate governance, effective risk management and transparency in government operations in fulfilling the pre-set objectives.
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