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THE SIGNIFICANCE OF FINANCIAL STATEMENT IN LOCAL GOVERNMENT ADMINISTRATION (A STUDY OF IKONO LOCAL GOVERNMENT COUNCIL)
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The significance of financial statement on the management of a local government cannot be neglected in the modern world of today. In other words, it is important in the management of any local government or a firm. In further in the significance of financial report on the management of a local government, it enhance at a glance of financial management report at any point in time.
It makes all affairs of any management to be clear. The management of any business totally depends on the financial report/statement of such establishment. In internal control system, the financial accounting contributes much to the progress and in the controlling of any business, it is not only enhances progress, it is safe good the organization against waste fraud, inefficiency and this promote accuracy and reliability of accounting information at all time.
Financial accounting covered those activities related to the preparation of certain report which are known as financial status of a firm at a particular time, the firm’s activities and result profit or losses during the most recent period of flow of resources accruing within the firm during the same period. The geo-political region now known as Ikono Local Government Area was created on the 15th March, 1987 during the creation of Akwa Ibom State by the federal military government, during the administration of General Ibrahim B. Babangida. Ikono Local Government Area was covered out from the former Ikon Ibom Cross entities (Ndem) Ibibio division such as Etefia Ikono. The headquarter is located in Ibiaku Ntuk Okpo.
Location/Geography: Ikono is bounded on the North by Ini Local Government Area, the South by Abak and from Uyo Local Government Councils.
Population and Size: The people were belongs to the Ibibio nationality with distinct linguistic trait. They are predominantly Christians while few still practicing traditional, African region Ikono has an estimate population of 2011577 (1991) population census, with land mass of about 251,727 square Km, it is located within the thick mangrove forest belt which provide an enablement for agriculture.
Occupation: The major occupation of the people is farming pottery, tradition fishing etc.
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