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ABSTRACT: One of the most researched and least understood variables of public sector accounting is how the accountability and stewardship of financial control is conducted.  People have been speculating on how the funds generated are managed but now researchers have conducted systematic investigation of funds and leakage in local government revenue system. Even with this, there is still an increasing difficulty and doubts in establishing the fact that the revenue generated are put in good use. There is also an evaluation of the source of revenue to the local government, and the impact of financial control system in the local government revenue system particularly the revenue collection points where all derivable revenues are kept for safe custody. Secondly, to find out if really there is grant from the federal and state government to the local government areas and how it’s being spent. Finally to know the reason, the local government cannot employ their resources in funding projects. Findings and recommendations have gone a long way to establish proper financial control system in local government and it’s improvement.

The following findings we made

1. The findings researcher was able  to find out that there is enough evidence to show that there  is grant  form the federal  and state government  to the local government.
2. That they are inadequate financial control system in the local government area.
3. That accountability and stewardship of the generated  revenue is totally inadequate.

The following recommendations were made:

1. The  grant given to the local  government should be looked into.
2. The federal and state government should regulated  the actions of the local government
3. The revenue leakage of the local government should be  checked.
4. A committee should be set up to control the accounting  system.
5. The local government should take effective planning cost control measures and product management  of their  resources.     

       

TABLE OF CONTENTS

CHAPTER ONE

1. Introduction                                                                   1
2. Purpose of the study                                            9
3. Significance of the study                                                10
4. Statement of the problems                                   12
5. Hypotheses formulation                                                14
6. Scope and limitation                                            14

1. Definition of terms                                                         15

Reference                                                                                 17

CHAPTER TWO

2.0  Review Of Related Literature                        18

1. Definition                                                                       20
2. Budget                                                                           21
3. Financial Regulations                                           22
4. Cash Accounting                                                  23
5. Local Government Reform                                   23
6. Local government accounting functions               26
7. Sources of revenue to the local government    30
8. Rural development functions                                 32

Reference                                                                          34

CHAPTER THREE

3.0     Research Design & Methodology                         35

1. Research design                                                    35

1. Area of study                                                                 36
2. Population                                                           36
3. Sample and sampling procedure                          37
4. Sources of data                                                    39
   1. Interview method                                        40
   2. Questionnaire method                                41
5. Procedure for data analysis.                                 42

Reference                                                                       43

CHAPTER FOUR

4.0     Presentation and Analysis of Data                       44

1. Presentation of data                                             44
2. General data                                                                  44-68
3. Test of hypothesis                                                         69
4. Analysis of survey results                                             73

Reference                                                                                 74

CHAPTER FIVE

5.0     SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSIONS

1. Summary of findings                                            75
2. Recommendation                                                 77
3. Conclusions                                                                   80
4. Area of further study                                           82

Bibliography                                                         

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