FINANCIAL MANAGEMENT 12/05/2021

FINANCIAL MANAGEMENT IN LOCAL GOVERNMENT

https://startupaplan.com/what-is-financial-management/

All over the world and in any administration or organization section whether it is public or private, financial management is essential in the attainment of organizational goals, in this regards, local government as a ... of government is not excepted. Financial management implies the prudent application of resources to achieve organizational goals.
The key point here is that resources that ..... to either the organization or government are scarce and hence the means to apply prudence and frugality in the finances. The main tool for efficient financial management in the local government system as any public organization are;

1. Budgeting

2. Auditing

3. BUDGETING
   Is the forecasting of revenue and expenditure of an organization or an entity within a particular time frame, it helps the organization make financial plans that will enable it enhance self.

4. AUDITING
   Implies a system of financial control of both revenue and expenditure of an organization to confirm with financial regulation guiding such organization.
   The major system of an auditing system is to ensure that official of the organization carryout their financial organization according to established rules.
   
   https://startupaplan.com/what-is-financial-management/

Financial management is important in the local government system because it enables those who are saddles operating government at the grassroot level to apply frugality in the discharge of their financial obligation. Over the years the scribe and guidelines.

have been provided to ensure financial activities are carried out in line with establish codes.
This implies the various and department of the local government must apply themselves to this codes, in most cases the guidelines used to regulate the financial activity of the local government are ensures in the modern financial memoranda of 1991, however giving the provision of the constitution of federal republic of Nigeria, the various state house of assembly are empowered to regulate the activities of the local government in their various state, financial activities inclusive, what this implies is that there is no uniformity in the operation of the local government system in the country as maybe slight differences in their operations at this junction it is pertinent to examine the various culture and organs of the local government as well as their financial duties and responsibilities.

*) THE EXECUTION COMMITTEE
This organ or arm of the local government administration is headed by the chairman who is usually referred to as execution chairman. The execution chairman sees to the day to day running of the local government, in order words the daily activities of the local government are his responsibilities.
He appoints supervisory councilors who holds various position such as;

1. Education
2. Health
3. Agriculture
4. Youth sport.
   As well as other special and personal assistance, this holds offices at the description of the execution chairman.

The chairman alongside the secretary to the local government, head of the local government, head of personal management, treasurer, as well as the supervisory councilors form the executive committee of the local government.
They meet to address issues that concern the local government, it is the execution committee of the council that allows up the financial estimate budget of the council from the beginning of each financial year, the executive calls for the budget summary from each of the department of the local government council, all the summary are aggregated in what is known as budget and presented to the legislative assembly, during the fiscal year or financial year, what ever expenditure to be made is approved by the chairman as well as various scheduled officials that are............
For instance head of department could be authorized to make certain approval, such approval has limit.
An approval made for some purchases are presented before the finance and general purpose committee, in what is called a mandate for payment, the mandate is signed by the chairman head personnel management and the treasurer of the local government, after the signing of the mandate, a cheque or cheques are raised and signed by head of personnel management and treasurer before disbursement are made.

It is important to note here that at this point the chairman does not sign any cheque, also the treasurer does not make any disbursement. After the cheques has been signed and money cashed.

At this point every official is aquactited with his or her financial responsibilities and duties, it is also important to note that for proper accounting, their are vote head that enable financial records and transaction is carried out properly.

The vote head are names given to items that require income and expenditure within the system, their are those who are authorized to approve expenditure or such vote usually leads to each department control the vote but are restricted to certain limit of expenditure.

Any expenditure that is above the approval limit is sent to a higher authority usually the local government for approval. My regard to the community of steemit nursery
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