FINANCIAL MANAGEMENT IN LOCAL GOVERNMENT (A STUDY OF ENUGU NORTH LOCAL GOVERNMENT AREA)
ABSTRACT
The purpose of this study is to survey critically  some of the obstacles of effective local government financing especially as it affects Enugu  Local Government Area and the extent to which the local government reforms has eliminated these obstacles. In order to achieve the above, the research used both primary and secondary sources of data collection. Two hundred copies of questionnaire were distributed to staff of Enugu Local Government Areas, after which one hundred copies were returned and used for the analysis of the data. From the data presented and analyzed, the following findings were observed: That the financial management strategy adopted by local government generally will improve the financial base of the local government areas if properly adhered to. That the local government reforms have great and unimaginable impact on the financial management system of local government, as 1976 reform ensure uniformity  in revenue collection of the local government. That irrespective of the above, some problems encountered in the financial management in the local government area before the reform still exist after the reform. Example problem of rate/tax collection, non-training of tax administration poor record keeping, tax evasion to mention but a few. It is based on the above findings that the following recommendations were made. That more funds should be allocated to training in local government especially rate/tax administrators. This will enhance their record keeping and other aspect of rate/tax collection, subsequently increasing the financial based of Enugu Local Government. That enticing effort should be made to encourage the payment of tax/rate by citizens of Enugu thereby avoiding tax evasion. Such effort may include: sound advertisement, provision of services to mention but a few. Effort should be made to ensure strict adherence to financial management strategies adopted by local government generally, for this will go a long way in improving the financial base of the local government in Anambra West.        
 
TABLE OF CONTENTS
        CHAPTER ONE     
1.0    INTRODUCTION 
1.1    Background of the study 
1.2    Statement of the problem  
1.3    Objective of the study   
1.4    Research  question  
1.5    Significance of the study   
1.6    Scope of the study   
1.7    Limitation of the study  
1.8    Definition of major terms
    CHAPTER TWO    
2.0    Review of Related Literature      
2.1    Revenue Generation on Enugu  Local Government    
2.2    Financial Management in Local Government    
2.3    Financial Management Problem (1976 – Present)   
2.4    Assessment of Local Government Reform and the Financial Management 
2.5    Problem of Review Collection and Financial Management in Local Government Administration    
2.6    Summary of Literature Review   
            CHAPTER THREE     
3.0    Research methodology      
3.1    Source of data 
3.2    Population of study   
3.3    Determination of sample size    
3.4    Sample technique   
3.5    Selection and construction of research instrument   
3.6    Administration of research instrument    
3.7    Instrument return rate   
    CHAPTER FOUR      
4.1     Data presentation and analysis    
4.2    Analysis of Data (Testing Hypotheses)  
4.3    Findings  
    CHAPTER FIVE     
5.0    Summary Of Findings, Recommendation And Conclusion    
5.1    Summary of Findings     
5.2    Recommendation   
5.3    Conclusion    
    References     
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
Local government is a public organizational sector with assigned functions and responsibility, administrative structure and financial arrangement for both maintaining, itself and rendering its statutory assigned functions to its citizen. Therefore the generic centrality of financial and management performance is apply to local government.
The effectiveness and efficiency of any organization depends on the availability of the major importance of management personnel. The emphasis at providing effective  local government system in Nigeria.
This is with a view to providing programs like political, social and economic Advancement, it brought the development of an efficient and democratic system of local government. It was the expectation of this. Policy to afford the people with a form of government that close to them and which must be capable of managing the service in a way in which it will help to ease the standard  of living and support the people at grassroot level.
Towards this attainment of these objectives, several attempts have been made by creating a viable local government system in Nigeria through a service of local government reform. The prominent among these reforms was the 1976 local government in Nigeria and also created revenue base of the local government. However, various research conducted after the 1976 reform indicated that local government have performed poorly  with  respect to their constitution functions because of lack of adequate finance generation arising mainly from lack of autonomy on the part of these local governments. It was identified that state government frequently interfere into the affairs of local governments, they either delay grants and statutory allocation form the federal government which from the lack of local government revenue refuse to  transfer such to them. The state government diverts fund that is meant for the local government into other uses on the neglect excuse the state government frequently intervene into the local government affairs tended to take away the autonomy of the local governments which the 1976 reforms instated to establish.
The task of the local government through local government reforms has gone in servicing obstacles that block the way of effective revenue generation and mobilization in Anambra  West  local government area.
1.2    Statement of Problem
Inadequate financial base has been frequently identified as the cause of inability of local government in Nigeria to perform its duties.
Frequent intervention of state government into the affairs of the local government and lack of autonomy are among the factors that are causing the inadequacy in financial generation in local government.
The aim of local government reform was to make appropriate service and development activities responsive to local wishers and initiatives by developing or delegating them to local representative’s bodies and to grant great autonomy to the local government and to remove these obstacles to effective revenue generation. It is relevant in the height of the argument to ask the following questions.

1.3    Objective of the Study
The general objective of the study is financial management in local government system; a survey of three Enugu  local government of Enugu State.
The objectives of the study that the researcher wishes to accomplish are:
1.    To examine how local government finance are been managed.
2.    To identify and discuss the strategies of financial management adopted by the local government and to evaluate the relevance.
3.    To determine the outstanding problems of financial management in the local system.
1.4     Research Question
The following research questions were drafted from the objectives of the study;
1.    How does local government manage their finance?
2.    What are the outstanding problems of financial management in the local system?
3.    What ways to think that those financial problems can be solved?

1.5    Research Hypotheses
The following hypotheses were drafted from the objectives of the study;
H0:    Local government fiancé are not been properly managed.
H1:    Local government fiancé are been properly managed.
H0:    There are no effectiveness strategies of financial management to be adopted by the local government and to evaluate the relevance.
H2:    There are effectiveness strategies of financial management to be adopted by the local government and to evaluate the relevance.
H0:  There are no outstanding problems of financial management in the local system.
H3:  There are outstanding problems of financial management in the local system.