ABSTRACT
The management of public resources has always been a turbulent issue. This is precisely the heart of any governmental administration. Government business in whatever for, be it policies, programmes, activities or function is run in accordance with the laid down formalities. These formalities in the area of government accounting and financial control and procedures may include laws, rules and accepted norms certain financial memorandum of the local government system. The accounting framework regulates the account format for the preparation of government account in local government system in an instrument for introduction of new policies and guide lines, before inclusion into the financial regulation as a part of a more permanent code of regulation. It is used to aid the achievement of probity and accountability in government. The frameworks specify action acceptable and those doomed unacceptable. The system is set to ensure uniformly and conformity of application.
This work examined the general background and concept of the research topic listing the aims, objectives, statements of problems and the scope and limitations of the research work. The existing literature on the accounting framework was examined so as to create in theoretical base for the study.
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
The peculiar nature of local government accounting transaction makes it desirable and indeed mandatory to treat it in accordance with specific, cohesive and standardize measurement such as the budgeting system and fiscal policy procedure. The local government financial framework measure all social activities with the control and stewardship of receipts, payment and related activities in the local government system in that the accounting system is maintained on cash basis. The system provides a satisfactory approach or matter of stewardship, accountability and cash programme accordingly. The balance sheet (known as monthly reconciliation of accounts surplus and deficit statement of local government) does not contain information on physical fixed assets, such as building.
In local government accounting framework, specific registers are taken on payment basis for the purpose of controlling fixed assets, such registers are referred to as plant registers or inventory control. The system of accounting principles which is double entry book keeping. They system requirement is that every debit entry be matched with a corresponding credit entry of similar amount. In the accounting system, after the approval of annual budget, the letters of authority are communicated to head of department vote controllers. In local government, transaction is recorded when cash is paid or received irrespective of when goods were supplied or services rendered. Some of such records include department vote expenditure account. This record gives accurate account of goods ordered but not yet paid. Similarly, the registers of bills received or bills issued are kept to show at any time what the local government aspects to receive from its debtors.
Some of the reasons why cash accounting is adopted in local government includes;
1) It is a non-profit oriented organization.
2) It operates an annual estimate of revenue and expenditure which constitute of basis necessary to meet the estimated expenditure during the financial year concerned.