Nigeria - State of Lagos : State Financial Accountability Assessment
The main elements of government financial management systems are present in Lagos State. They include budgeting, internal control, accounting, Treasury management, financial reporting, and auditing arrangements. The current Lagos State Government i...
| Main Author: | |
|---|---|
| Language: | English en_US |
| Published: |
Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/03/5104971/nigeria-state-lagos-financial-accountability-assessment http://hdl.handle.net/10986/15712 |
| Summary: | The main elements of government
financial management systems are present in Lagos State.
They include budgeting, internal control, accounting,
Treasury management, financial reporting, and auditing
arrangements. The current Lagos State Government is
reform-oriented. In keeping with this orientation, it
already has taken some giant steps to improve FM systems in
the State. An Oracle-based financial management system has
been procured and is being installed. It will improve the
State's budgeting, accounting, and financial reporting
arrangements. The computerized system will put the State of
Lagos clearly ahead of most, if not all, State Governments
in Nigeria in FM system modernization. The State Government
has developed and implemented procedures to improve the
effectiveness of tax revenue collection and monitoring.
These efforts have begun to show marked results. Additional
financial management staff has been recruited; many of them
are professionally qualified. In addition, accounts that
were in arrears for several years under the Military have
been brought up to date. However, some critical aspects of
financial management still need to be addressed. Financial
accountability is weak, and significant risks of misuse of
funds and waste remain. There are also risks that financial
records do not present accurate records of transactions. The
risk arising from the outside environment also is assessed
as high. Given such an environment, strong controls are
necessary to prevent wrongful use of public funds; but, in
reality, controls are weak, leaving dangerous gaps in FM and
accountability systems. The overall risk to public funds
therefore is assessed as high. The main recommendation made
in the report is that the State of Lagos should strengthen
its public financial management arrangements. Specific
actions regarding the legal framework, budgetary control,
debt management, financial reporting and fiscal
transparency, internal controls, external audit,
Parliamentary oversight, global computerizations, and
management of public enterprises are proposed. |
|---|