THE IMPACT OF FINANCIAL MANAGEMENT IN CONTROLLING FRAUD IN THE LOCAL GOVERNMENT SYSTEM
ABSTRACT
This research work was aimed at studying the Impact of Financial Management in Controlling Fraud in Olamaboro Local Government Council. The objective of this work is to provide realistic strategies on how the resources of the local government can be effectively controlled so as to avoid fraud and misappropriation. The researcher used both primary and secondary methods in collecting data. Analysis of the data was done through the use of simple percentage method for easy understanding. It was revealed after the investigation that effective financial management and control is very necessary for good governance in Olamaboro local government area. And for this to be possible, there must be accountability for any money spent. At the end, the researcher also made the recommendations that there is need to appoint competent staff to ensure that appropriate records such as balance sheets are kept and updated, and that the need for the internal and external auditors to work together cannot be over emphasized.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The question of financial control and management or Accountability has received a lot of attention in all governments of the world. Nigeria right from the colonial period in particular towards the attainment of independence also devised a way of controlling government finance.There is no way public sector especially that of local government area can operate without adequate finance. It will be needed to satisfy the aspirations of the masses.
Government is saddled with the responsibility of providing security of lives and properties, educational services as well as construction of roads and bridges. These and many other services required that a lot of finances are needed and are generated to be spent on doing every thing for them but failed to realize that government resources are limited while the societal needs are unlimited.
However, there is a need to manage the limited resources so that social expectation can be met. Today, that desire to get rich quickly among the political administrators and the top officers of local government is a shameful practice that subjected them to defraud local government financial resources careless spending of public fund.
Besides, the act of accounting or giving bribes and 10% kick back, tips, embezzlement, misappropriation tax evasion, over-invoicing under invoicing and all sort of fraudulent practices is the general observation and complaint of the public. These raised the need for major central and management of financial resources.
To this end, financial management is another effective tool that can limit misappropriation, embezzlement and all such fraudulent practices especially in local government administration.
People’s fraudulent act can only be controlled through effective financial management according to Pandey (1979) financial managements is that management activities which are concerned with the planning and controlling of the firms financial resources.
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