ABSTRACT

The issue of right and proper accounting method, procedure or system, is in questions mark factor. That being the case, this project research evaluates the Accounting System of Local Government Administration in Umuahia North and south L.G.A of Abia State, in Nigeria. Guided by a formulation of hypothesis, which is tested under the CHI SQUARE (X2) standardized method, of our data Analysis technique, a decision is reached to the fact that the two Local Governments keep mainly cash accounting, which is incomplete, and therefore needs to adopt the double entry accounting system which will be more standard. At the time there is need to improve the staff training and employment level to qualified accounting personnel. When these and more is done, an operational and viable Accounting system will be in force. A good and proper accounting system must check against fraud, in balance, and must be ready to publish its accounting transactions to the public without fear. The Local Government of our inquiry is in lack of these. Good Accounting system has to be operated, maintained, by properly trained and qualified personnel, whether senior or junior cadre. Like Handson (2001:42) said: "every profession must have its personnel trained. A profession such as Accounting must be manned by those adequately equipped with its nitty- gritty". If the local Government keeps to this agreement, they will operate a better accounting system. Through the hypotheses tested, it is now proved without doubt that Umuahia North and South Local Governments do not keep complete and proper books of accounts. Secondly, the hypotheses tested; also show that accounting records kept by the L.Gs are not adequate to ascertain the financial position of the said two local Governments. The improper records has the resultant effect of some ill- activities of fraud, embezzlements, falsification of records, forger, cash lootings, revenue taunting, etc which are the experiences of the organizations where loopholes of this nature exist in their accounting system