An Assessment of the Application of Government Accounting System in A.A City Administration Finance and Economy Development Bureau

Abstract

This study examined an assessment of the Application of government accounting system in A.A city administration finance and economy development bureau. The General objective of the study were investigating application of government accounting standard in Addis Ababa city administration finance and economy Development bureau; the study area was Addis Ababa Town, the research was used census method of data collection, the target population compassed of 50 respondents were attained, The data collected were both quantitative and qualitative Analysis were done using Statistical Package for Social Sciences (SPSS), this study adopted a mixed research design, likewise the study was analyzed through descriptive and statistical techniques, the finding of the research found out that, the organization partially implement its financial statement according to Government accounting standard so the accounting recording and processing are not effective. There Is also limitation in, recording of recurrent budget effectively, there is high variation of utilization of planed budget and actual budget, lack of valuation of fixed assets and record of investment, weakness in completeness of financial transaction and reporting, similarly, weakness in, low level of satisfaction in stakeholders’ involvement in budget preparation, However, there is clear responsibility and accountable of expenditure in the organization, likewise, the financial system with relate to expenditure of goods and service with other department is satisfactory, the Record of the bureau is reliable, valuable and clear, and also the organization use pre-numbered financial documents and better budget management with relate to Approval of budgets on yearly basis and Adherence to budget estimates, there is also effective time management of budget plan, likewise, with relate to the challenge of government accounting, inconsistency for implement the policies, procedures of government, and lack of adequate competent accountant, little computer skills by employees, the poor operation due to ineffective or poor financial management, finally, The study recommend that using of accrual basis of accounting rather than modified cash basis of accounting to improve efficiency of the system and complete application of Government accounting standard, similarly City councils and regional finance bureau should access, they should improve financial management, and also they should read, and use financial reports on a regular basis, Increase utilization of the system by ensuring all accounting issues are computerized.