Computer Based Cash Flow Analysis in the Local Government Administration a Case Study of Ukwa East Local Government Area, Abia State



The Local Government is the nerve centre of education, particularly in development of the rural area. In order to enhance its effective utilization; specialized knowledge is therefore required to deal with the statutory provision, protection from theft and decay are mostly essential because large number of workers are being registered. This includes its application in our local government often and on. The project “computer-base development of a computerized cash-flow analysis in the local government” examine the concept and development of computerized cash-flow in Ukwa east local government. It was evident from this study that not only the present system incapable of the cash with the use of computer in manipulating on the departmental unit namely; accounting department, Environmental and Health department. The data used in this project work deals with the use of computer in manipulating on the departmental unit namely; Accounting department, Environmental and Health department. The data used in this project work was collected from Ukwa East local government Area of Abia state. The programming language used and its implementation is Microsoft  Visual Basic (VB). 6.0 .





Computer-Based cash flow in the local government Administration involves the analysis and information  to mobilize additional Local Revenue Financial Managements System (IFMS) to reduce administrative and complian  costs, computerized system can also allow local government to maintain their fiscal cadastre. It is easier for a local government to administer an income tax base on a “earned income” or payroll.


          The local government administration in Nigeria  which constitute the third tier of the government controls only the minor source of revenue which has led to its over depending by our 80% on the federation account.

          Local government, in nutshell is a pontent mechanism for effective administration of extended and remote component of the country whether such a country runs unitary or federal system of government. While in a unitary system of government, local government functions as an extension or delegation of the national government in a federal system of government, local government function as a coordinate but autonomous tier of government.

          As specified in the guideline of the 1976 local government reforms and backed up by 1999 constitution of the federal republic of Nigeria, the local government has the following function to perform;

  • Maintenance of law and order
  • Construction and equipping of primary school
  • Agriculture vatinery extension services
  • Town planning
  • Community\rural development.
  • Building of market and  motor parks etc.

The performance of these functions/responsibilities is subject to availability of adequate find/revenue and also efficient management of the cash flows arising from there. It is to facilitate the ability of the local government to fulfill these responsibilities that the local government increased the revenue allocation to the local government from 10% to 20%. But as would be noted in the course of these study the federal revenue allocation and Value-Added Tax (VAT) to the local government.

          Thus, for the local government to live up to its unshakable responsibilities to the people and to build, consolidate, and sustain the people’s confidence in the government, there is a crying need for the government to have a sound, reliable and adequate internal revenue generating capacity to boost its finance hence the focal point of this study.    

          It goes without saying that finance is externally important and of course pivotal to the existence and proper function of any establishment (local government) to the extent that the financial status of every local government is a crucial variable to determine the councils ability to achieve its aims and objectives.

          Moreover, recent development in the worlds geopolitical and economic climate have compelled nations, state and local government to appreciate the need and important to be self-reliance especially in the economic sphere. Consequently, former president of Nigeria, president Olusegun Obasanjo’s government recognized and emphasized the need for a Nation wide drive for the increased internally generated revenue by the state government in general and local government in particular.


          This study arouse by the poor performance of Ukwa East local government and also by the autonomy granted to the local government in Nigeria by 1976 local government of reforms, 1979 and 1999 constitution of the federal republic of Nigeria and vitae of January 1st 1999 budget speech of the president Gen. Ibrahim Babangida to operate tier (third tier) of government in Nigeria. In this dispensation, the local government was not only given the autonomy to receive directly from the federal its statutory revenue allocation, but own revenue from a legion of avenue within the circumference of the law. But with this revenue, Ukwa East has been performing below standard no positive change can be named.

          In this same vein, my raid of responsibilities besides management and infrastructure which have a lot of financial implication were ascribed to the local government within its jurisdiction. Still here seen to be proving cases of delay and degeneration in terms of indigenes of the civil have been criticizing and complaining because of lack of social amenities, poor primary health care etc.  it is in the light of above that this study was carried out to elicit considerable information on how to stimulate the economic and social light of the population the grass root level through identification of revenue generating sources and management tool to collect, disburse and use this find for effective and effective local government administration.


          Over the years, our rural areas and their in-habitants had been neglected and are therefore poverty-striking despite the fact that they produce the food consumed by the entire people of this nation. Rural roads are nothing to write home about and the in-ability of my own town (Amakam-ohanku Ndoki, Ukwa East local government area) to supply its produce to city (Aba) is because of its bad road. In fact in most areas, road are not in existence. Electricity pole that were mounted in Ohanku Ndoki village since 2000 have not been generating light even up till today because of no government is there for help. In the local government, there is no industries such as cottage industries that could absorb school leaves who have no alternative that to drift the urban centers in search of non existence white cola jobs. The sum is that the rural people denied an appreciable standard of living. The above situation is pathetic and could only if there is adequate financial and administrative capacity and efficiency.

This study sets to explore and appraise the revenue generating capacity of the local government as well its exploitation in terms of administration and its adequacy in terms of yield vis-a-vis the financial responsibilities of the local government. Therefore the major objectives of the study are:

  1. To identify and suggest the best means of managing cash flow of the council effective and efficiently using computer.
  2. To determine the adequacy of both the internally generated funds and federal government grants to local government in meeting her social, economic and educational responsibilities to the people.
  3. To identify the cause of the local government poor performance and inadequacies in providing services to rural people.
  4. Ascertain the effectiveness and efficiency of the administrative machines in collecting disbursing and controlling these funds to ensure maximum result.
  5. To highlight revenue generating potentialities in the local government area. The solution elicted from the above will go a long way to giving a message of hope and fulfillment to the rural people.


          This is study that significance for the following reasons;

  1. This study will provide information on how to effectively and efficient manage the cash flow of the local government so as to provide adequate services.
  2. It will provide information and guidelines for policies on increase revenue generation.
  3. It will serve as stepping stone for further purpose. Mean while, since primary health cares in the rural area must be provided and excepted mothers must be encouraged to attain and antenantal clinic and participate fully in the expanded program of immunization in the rural areas. Therefore must need for area to be computerized in other to enhance electronic registration for easy access to the file of patients.


          The scope of the study centers on the operation being carried out in the local Government departmental sectors which are;

  1. Electronic Data Processing (EDP): This is a data processing method that involves the use of computer and its accessories.
  2. Payrolling: This is the process of using computer in calculating worker’s salaries, overtime and other express made within the accounting department.
  3. Employment: Here means of employing workers will be done online, to ease human and at the same time help in easy retrieval of information when needed


          The research was faced with some difficulties during the study. The Ukwa East local government staff of the accounting book in order to go through, because of what they called security reason and fear of the economic and Financial Crime Commission (EFCC).


          It is paramount to define some of the terms that would be used in this project, since these could have different meanings.

  1. Local Government: The guideline for the local government reforms of 1976 defined the local government as the “government at the local level exercised through representation council established by law to exercise specific power within defined areas”
  2. Local Administration: It is a system in which appointment official of the federal or state government sent to the localities to execute government policies and programmers (e.g) development centers in Enugu and development council in the year 1960 – 1970.
  3. Local Government Administration: It is science of mobilization of human and material resources in a local government area with the aim of achieving the aspiration of the people in that local government area. It is just like the management of people finance and material (it is democratic).
  4. Improvement: This is the process of securing and increasing the resources and revenue available to the local government in the fulfillment of her aim and objectives.
  5. Revenue: Revenue is seen as the financial resources amount of money the local government receives or uses for the executions of projects and maintenance of law and order within their territory or areas of jurisdiction. Thus, we have internal and external source of revenue.
  6. Expenditure: These include all expenses, cost and outlay undertaken by the local government in the social and economic needs of populace and running of the local government; they are either capital or recurrent expenditure.
  7. Environment: These include those elements systems, instructions, organization, etc whose activities and services are essential for the effective performance of the organization but are not subject to the control of the local government/organization.
  8. Fiscal Federalism: Task raising power. This refers to the relation of independent sources of financial for the local government within the federal system. It involves the issues of inter government financial relation in the form of adjustment of the fiscal imbalance among the different levels of the government.




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