THE IMPACT OF EFFECTIVE INTERNAL CONTROL ON THE REVENUE GENERATION OF LOCAL GOVERNMENT COUNCILS

THE IMPACT OF EFFECTIVE INTERNAL CONTROL ON THE REVENUE GENERATION OF LOCAL GOVERNMENT COUNCILS

Abstract

The research was aimed at studying the impact of effective internal control on the revenue generation of Local government councils in Ankpa local government council. This study reflected on internal control and revenue generation in local government council. To this end. Related literatures were reviewed, through books, papers, lecturers delivered, seminar and guidelines for executive management of internal control on the revenue generation,. The study also covered the designing and administration of questionnaire. A total of one hundred and twenty (120) questionnaires were designed. Senior staff and junior staff of Ankpa local government council. These were filled and returned and the data summed up and analyzed in tables with simple percentage method use in finding the difference in responses. The findings were summarized, conclusions, were drawn and recommendations proffered.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The most serious problem which local governments are facing now is inadequate funding. They (local government) cannot function properly as the third tier of government if it is not provided with adequate funds.

Local governments as a result of their status as subordinate governments depend on the state and central government for their funds. Local governments in developing nations like Nigeria are not given viable sources of independent revenue.

If local governments are to achieve their objectives, they should be well funded through internally and externally generated revenue which must be managed effectively. Revenue generation in Ankpa local government area is principally derived from tax imposition and tax is a compulsory levy imposed by government on individuals for various legitimate functions in the local government. (Olaoye, 2008), tax is a necessary ingredient for civilization. History has shown that man has to pay tax in one form or the other that can either be cash or in kind, initially to his chieftain and later on a form of organized government (Ojo, 2003).

No administration can be effective, unless it enjoys some measures of financial independence. Local governments has been developed over a number of years. Historically, the development of direct taxation even in the nation at large can be traced down to pre-colonial period under this period, community tax were levied on communities (Rabiu, 2004). Some other means of which the local government can generate revenue internally are;

Market taxes, and levies excluding any market where state finance is involved, bicycle, truck canoes, wheel barrow and cart fees, other than a mechanical propelled truck, on and off liquor license fees, slaughter slab fees, marriage, birth and death registration fees, signboard and advertisement permit fees etc.

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THE IMPACT OF EFFECTIVE INTERNAL CONTROL ON THE REVENUE GENERATION OF LOCAL GOVERNMENT COUNCILS