| 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. |
