ATTENTION

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INFORMATION:

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AN ASSESSMENT OF THE ACCOUNTING PROCEDURES AND THE EXTENT OF COMPLIANCE WITH FINANCIAL MEMORANDA ON ACCOUNTS IN LOCAL GOVERNMENTS OF KADUNA STATE

ABSTRACT

The issue of Financial Accounting in Local Governments in Nigeria has generated a lot of interest over the years particularly, with the increase in the Statutory Allocation to local governments. The major concern of this study is to assess the accounting procedures and its financial reporting system among the local governments in Kaduna State and to bring into focus the extent of compliance with the provision of Financial Memoranda (FM) which is a document that provides detailed instruction on the financial accounting procedures to be followed in local governments treasury operations. The problem faced by local government councils appears to be multidimensional. It translates into questions of non-adherence with provisions and sections of Financial Memoranda for Local Government Accounting System which state accounting procedures for all local government in Nigeria. The objectives of the study include assessing the effect of non-compliance to the provision of the Financial Memoranda and to determine the pattern of records keeping and preparation of timely financial statements of the local governments. This study has generated data from both primary and secondary sources. Chi-square and Kendall’s Coefficient of Concordance constitute the data analysis techniques adopted for testing two hypothesis. The study found that there was no adequate compliance with the provision of the Financial Memoranda (FM) as regards to the financial accounting procedures of local governments resulting from lack of records keeping of ledgers/ledgers summary and its balance and trial balances for compiling of statutory and timely financial statements. The study therefore, recommended among other things that appropriate legislation should be put in place to strengthen the proper use of compliance with financial memoranda provision. There is need for Audit reports to be rendered according to scheduled time and sanction all defaulters

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