INTRODUCTION
Since the amalgamation of the Northern and Southern protectorates of Nigeria in 1914 by Sir Lord Fredrick Lugard, there had been this sporadic attempt to restructure local governments, assign functions to them and establish district frame work for separation of powers between the executive, legislature and, the carrier servants in administration of local governments in Nigeria. The above was not realized until after the 1979 constitution when the civilian government made little efforts to allow local governments to function effectively as the third tier government. Chairmen and Councilors were selected instead of being elected, as it was done these days.
The hope for the survival of local governments was resuscitated by the fifth generation of military administration in Nigeria. From 1986 positive and overt commitment was being exhibited for the permanent survival of local governments, it was then increased to 453, which continued until 1991 when Aba North and Aba South local government council was created out from Imo State. The suffocating administration and financial control of state on local governments were removed. The allocation from the federation accounts which has been increased from 10% to 16% and current 20% is now released directly to local governments as they now enjoy a common account with the state known as the state joint local government account including their internally generated revenue.
Based on the extensive re – organization of the civil reform since 1988, the scope and characteristics of government accounting led as to first two terminologies or (government) financial management system of (government) accounting functions. The government accounting covers the following offices of the secretary and treasurer which have to do with financial planning, the treasurer’s dealing with the budgeting control, the auditor general and director of local government inspectorate concerned of local government inspectorate concerned with internal audit and external audit.
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In the characteristics of this government accounting there are: district aspect of accounting information, classification and procedures, which apply only to transactions in government sector, for instances, the budgeting system applicable, procedures, nature and sources of revenue etc. the peculiar, nature of government transactions made it desirable and indeed mandatory to treat them in accordance with specific, bit cohesive and standardized measurement theorem and rules.
Secondly, because of the need to pre – approved government revenue and expenditure, budgeting largely determines the structures of public sector accordingly. The government sometimes finds it necessary to demarcate and segregate its resources into specific or special purposes compartments – as set up receipts and expenditure known as funds. The method of accounting adopted in recording, measuring these “pocket of funds” referred to as Financial Accounting.
REVIEW OF LITERATURE
Many researchers and authors have written and contributed their views on the accounting system of Public Sector organization with particular references to Local Government Councils. Their views seem to be similar to each other with the intention to let the public know the systems of accounting in the Public sector and to enlighten everyone on the importance of having a well established accounting systems of the public.
The accounting systems of the local government councils may be divided into sections to review all the various views.
(a)Definition and meaning of accounting systems.
(b)Objectives for establishment of local government councils.
(c)Objectives of accounting in local government councils.
(d)Local government accounting systems.
(e)Books kept by local governments.
(f)Different Accounting basis adopted by local governments.
(g)Distinction between local government accounting and private sector accounting frame work of Public sector accounting.
(h)Local government accounting
(i)Local government finance officers.