A number of students have been asking that question as they contemplate their future. A well-functioning local government administration must establish a sound public financial management and delivers quality public services consistent with citizen preferences and fosters private market-led growth while managing fiscal resources prudently to alleviate poverty and the achievement of the Millennium Development Goals.
Signaling theory is now considered to be more insightful for some aspects of small enterprise financial management than others (Emery et al 1991). Maintaining proper cash flow : Maintaining proper cash flow is a short-term objective of financial management. The fourth step is the establishment of sustainable training facilities for financial controllers and internal auditors. Financial Management: Is that managerial activity which is concerned with the planning and controlling of the firms’ financial resources (Pandy, 2005:3). In reality, development authorities always use public financial management system to channel budget support, based on the policy guidelines. Financial managers deal with a range of information and documents and so they must stay organized to do their jobs effectively. Recent initiatives and developments in public expenditure management call for a renewed emphasis on the integration of recurrent and development budgets.
Analysis of the data so far presented involves testing the hypotheses formulated in the study, which is based on impact assessment of public financial management of local government administration on effective and judicious use of public financial resources.
The 1971 Bolton report on small firms outlined issues underlying the concept of ‘finance gap’ (this has two components-knowledge gap-debt is restricted due to lack of awareness of appropriate sources, advantages and disadvantages of finance; and supply gap-unavailability of funds or cost of debt to small enterprises exceeds the cost of debt for larger enterprises.) that: there are a set of difficulties which face a small company.
The shortcomings in the internal control framework include the lack of availability of financial reports suitable for management analysis and the fact that efficiency, effectiveness and value for money audits are not done. Small companies are hit harder by taxation, face higher investigation costs for loans, are generally less well informed of sources of finance and are less able to satisfy loan requirements. The study proposed hypothesis (H1), to examine if There is a positive impact of financial management in Local government administration on effective and judicious use of public financial resources in Bayelsa State”. The Chartered Institute of Management Accountants (CIMA) is the world’s largest and leading professional body of management accountants.