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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Accountability is the hallmark of modern democratic governance. Democracy remains apaper procedure if those in power cannot be held accountable in public for their acts andomissions, for their decisions, their policies, and their expenditures. Public Accountability, as aninstitution, therefore, is the complement of public management. Bovens (2005) opines that “As a concept, however, ‘Public Accountability’ is rather elusive.
It is a hurrah-word, like ‘learning’, ‘responsibility’, or ‘solidarity’ nobody can be against it. It isone of those evocative political words that can be used to patch up a rambling argument, toevoke an image of trustworthiness, fidelity, and justice, or to hold critics at bay”. The principleof public accountability in governments throughout the world is an ideal. It works on the basis ofthe fact that any office-holder, especially an electable public office-holder, holds his officialduties and responsibilities in trust for the people. In support of the above opinions on the conceptof public accountability, it is a universal truth that governments, especially democraticgovernments, derive their legitimacy from the citizenry. All government programmes andactivities are therefore assumed to be done on behalf of the people. Thus, the people deserve tobe assured that the resources which they put at the disposal of government, its officials and itsagencies, are efficiently, effectively an economically managed, moreover properly accounted for.
Public Accountability, thus, has three crucial components: a clear definition of responsibility,reporting mechanisms, and a system of review, rewards and sanctions. Public Accountabilityflows in different directions: upward, downward, between subordinates and superiors, andlaterally among professional peers (Adamolekun, 2002). However, the number and value ofpublic sector activities have increased substantially in the public enterprises and the increase hasled to the demand for accountability. At the Local Government level, all categories of workerstherein, need to render accounts of their activities to the public. The public in return, needs toreceive substantial accountability reports for proper assessment of their performance in theactivities entrusted on them (the Local Government workers). According to Agu (2008:36),“improved information about Local Government needs and preferences becomes the theoreticaladvantage of decentralization, but these are not guarantees that leaders will actually act on thesepreferences unless they owe some sort of accountability to the citizens.”
In order to ensure value for money, the process of fiscal decentralisation has been linked to the subject of accountability. It is being argued that fiscal decentralisation would not make the desire impact if local government authorities do not account for these financial resources. The success and sustainability of fiscal or financial decentralisation would largely depend on the capacity of local governments to institute measures to effectively manage these revenues, (Yilmaz, et al (2008). Promoting fiscal or financial accountability in local governments does not only lie on ensuring that revenues are appropriated legally, but by guaranteeing an institutional arrangement where roles and responsibilities of those involved in financial management are clarified to all. According to the “agency logic, mechanisms must be put in place to control self-interested managers and hold them accountable for their actions” Bednar (2012: 133). The subject of accountability is essentially a governance matter. As Sloan (2001:336) notes, “without governance problems, the role of financial accountability would be reduced to providing investors with the risk and return information required to facilitate the optimal portfolio allocation decision”.
Financial accountability in local government administration certainly goes beyond the provision of financial statements. As a governance matter, there is an element of role expectation and role behaviour in financial accountability. As far as financial management is concerned, a lot is expected from the conduct of schedule financial officers beyond the issuance of financial statements.Accountability in the financial management of any district must be held in high esteem if the district is expected to develop. This role is nonetheless, generally seen as the sole responsibility of the District Assembly core staff. But ensuring financial accountability in the District Assemblies is not the duty of the core staff alone. The Assembly members, who are the representatives of the local people, have to be actively involved. In fact, it is the responsibility of the Assembly members to hold officials of the District Assemblies accountable on the management of the Districts’ financial resources. This requires that the Assembly members have deeper understanding financial issues and the roles or responsibilities of officers associated with these issues in order to hold the right officials accountable.
1.2 Statement of the Problem
The Local Government Council takes direct care of the grassroots people, that is the people in the rural areas. These groups of people sometimes lack essential facilities and condition of modern civilization (Udeh, 2008). They lack pipe borne water to drink, do not have electricity, accessible roads, poor educational infrastructure and facilities to mention but a few.
This is one of the major reasons of rural–urban migration of movement. This has made our cities to be congested and increase in many criminal activities. Based on the above and foregoing assertions, it is oblivious that the impact of poor management of funds and lack of a transparent and accountable government at the grassroot level is a serious problem (Udeh, 2008). This might be as a result of corruption. If Nigeria is to achieve her desired goal of vision 2020 and possibly meet the millennium development goals (MDGS) target, a corrupt free government and accountable local government council must be established right from the grassroot level.
Faced with this problem of lack of transparency in the discharger of governance at the grassroot level, the researcher is set to examine financial accountability and performance of local government Khana Local Government Council in Rivers State
1.3 Purpose of the Study
The main purpose of the study is to survey financial accountability and performance in some local government councils in Rivers state Nigeria. Specific objectives of the study are:
1. To examine the accounting/financial systems that exists in Khana Local Government Council of Rivers State.
2. To determine the effectiveness of examined account/financial systems in achieving organizational goals.
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