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Dimensions of Accountability and Transparency at Local Level Finance Management Systems: A Study on Sylhet Sadar Upazilla in Bangladesh

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ABSTRACT

In existing local level finance system have lack of accountability and transparency. Local government institutions in Bangladesh are very weak in providing basic services to the citizens and in promoting good governance in their constituencies due to low level of human capital in the local government bodies and absence of participatory decision–making governance. The overall local finance is not satisfactory. The existing problems in transparency and accountability at local level finance are lack of people’s participation in budgeting process, monitoring mechanism, using information technologies and skilled manpower. For ensuring accountability and transparency there should have appropriate well designed written laws and regulations, proper auditing and inspection, people’s participation in budgeting. The study has been conducted by analyzing both primary and secondary sources of data. The aim of this article is to raise discussion on ensuring accountability and transparency at local level finance in TukerBazar Union, Khandigaon Union and Khadimnagor Union under SylhetSadarUpazilla. Finally, the study has been evaluated how to ensure accountability and transparency at local level finance in TukerBazar Union, Khandigaon Union and KhadimNagor Union under SyhetSadearUpazilla.

Keywords: Accountability, Transparency, Local Finance, Ensure.

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Dimensions of Accountability and Transparency at Local Level Finance Management Systems: A Study on Sylhet Sadar Upazilla in Bangladesh

  1. 1. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 Triple A Research Journal of Social Science and Humanity (ISSN: 2636-5472) Vol.2(1): 021 - 029, June 2018 Article id: JSSH.2018.108 Available online: http://www.triplearesjournal.org/jssh Copyright ©2018 Triple A Research Journal Full Length Research paper Dimensions of Accountability and Transparency at Local Level Finance Management Systems: A Study on Sylhet Sadar Upazilla in Bangladesh MD. Anwar Hossain Master of Research Students, Department of Public Administration, Shahjalal University of Science and Technology, Sylhet, Bangladesh Author: MD. Anwar Hossain Master of Research Students, Department of Public Administration, Shahjalal University of Science and Technology, Sylhet, Bangladesh Email address: ahossain.anwar@gmail.com ABSTRACT In existing local level finance system have lack of accountability and transparency. Local government institutions in Bangladesh are very weak in providing basic services to the citizens and in promoting good governance in their constituencies due to low level of human capital in the local government bodies and absence of participatory decision– making governance. The overall local finance is not satisfactory. The existing problems in transparency and accountability at local level finance are lack of people’s participation in budgeting process, monitoring mechanism, using information technologies and skilled manpower. For ensuring accountability and transparency there should have appropriate well designed written laws and regulations, proper auditing and inspection, people’s participation in budgeting. The study has been conducted by analyzing both primary and secondary sources of data. The aim of this article is to raise discussion on ensuring accountability and transparency at local level finance in TukerBazar Union, Khandigaon Union and Khadimnagor Union under SylhetSadarUpazilla. Finally, the study has been evaluated how to ensure accountability and transparency at local level finance in TukerBazar Union, Khandigaon Union and KhadimNagor Union under SyhetSadearUpazilla. Keywords: Accountability, Transparency, Local Finance, Ensure. INTRODUCTION Transparency denotes free access to governmental political and economic activities and decision. Accountability entails a state being held responsible, by both its people and its elected bodies. So, a transparent public financial accounting policy makes it possible to determine what the government has done and to compare budgeted and actual financial operations. On the other hand, accountability imposes discipline on national authorities by ensuring that the authorities are answerable to the general public and market participation for their decisions. Accountability also calls for a strict separation of local budgets and entrepreneurial activities at local level. Local bodies in Bangladesh are in constant shortage of funds. The sources of their income are generally taxes, rates, fees and charges levied by the local body, and rents and profits accruing from properties of the local body and sums received through its services. Contribution from individuals and institutions, government grants, profits from investments, receipts accruing from the trusts placed with local bodies, loans raised by the local body and proceeds. In Bangladesh, fiscal decisions are controlled at the national level. The share of local expenditure in the total public expenditure is significantly low here not more than 3% (Paul and Goel, 2010:6). In addition, the fiscal power of different tiers of local government is also limited. This study has explored common analytical framework that has provided information to ensure transparency and accountability at local level finance.
  2. 2. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 Hossain 022 The main objective of the study is to unravel the present status of ensuring accountability and transparency at local level finance in Bangladesh and to find out the challenges regarding the issue that is; a. To explore present system of local level finance. b. To identify the mechanism of ensuring transparency and accountability of local level finance. c. To identify the problems of ensuring transparency and accountability of local level finance. d. To recommend measures how to ensure accountability and transparency properly. Perspective on Accountability, Transparency and Local Finance Local government bodies have the power to impose taxes for local purposes, to prepare their budgets and to maintain funds (Article 60, the constitution of Bangladesh, 1972). However, in existing local level finance system have lack of accountability and transparency. Bangladesh is overpopulated, that’s why it is a hard task for the government to ensure accountability and transparency at local level finance. Lack of control over revenue and expenditure policies is a challenge for local policy makers using fiscal forecast at local level finance. The central government regulates local government’s fiscal decision making. Local taxation and spending decisions are often particularly constrained. Political and other non- technical factors can influence expenditure and revenue forecast (Shah, 2007:72). Accountability is basically a political concept. The state and circumstances of being required, obligated or expected to give an explanation is generally known as accountability. More specially, accountability is defined as the obligation of an employee, agent or other person to supply a satisfactory report, often periodic, of action or failure to act following delegated authority (Transparency and Accountability in Government Financial Management Report, 1999:58).Accountability as a relationship between an actor and a forum, in which the actor has an obligation to explain and to justify his or her conduct, the forum can pose questions and pass judgment, and the actor may face consequences (Willems,2002 :2). The concept “transparency” has appeared in many distinct domains of social life and scholars often treated it as if it were limited to e.g. the domain of finance or anti- bribery efforts, or the disclosure terms of arms control treaties or public administration etc. Transparency as the dissemination of regular and accurate information (Mitchell, 1998:109 cited in Roswen dorff and Vreeland, 2006:5) transparency refers to norms and practices for legally legitimate centers of powers to disclose information about their decisions, actions and states of affairs to the public (Holzner, 2001:1) Local finance is compared of regular and special revenues. Tax and non- tax revenue sources are regular revenue, while subsidies, trust funds and borrowing special revenue. Tax revenue sources for local government include locally levied taxes and shared taxes. There is also much non- tax revenue. So, local finance is the broader base of local revenue sources and increased opportunities for local governments to mobilize new revenue sources (Hawn Kim, 2003; 540) Local finance simply defined as local bodies and their financial responsibilities, local taxation, and measures for improvement of local finance. On the other hand, the mobility may be endogenous to the revenue or expenditure actions taken by the local public authority and this must be considered in any economic analysis of local finance (Quigley, 2008:2). LITERATURE REVIEW Here, reviews of relevant literature discussed about democratically elected local government effectively change the long channel of hierarchical accountability and transparency to direct accountability to the people. Transparency is considered a tool of accountability because its presence enables the public to be informed of the results of certain action. Here, stressed that budget will be prepared through a participatory process of Union Parishad. Public accounts will be transparently maintained and audited at local level through local Financial Systems. The practice of public financial management is now considered critical in combating corruption and ensuring the effective use of internal and external resources at local level. Literature Covering Local Financial Issues Centre for Policy Dialogue (CPD) Report (2002) discussed a sound system of planning and budgeting the state’s financial resources, followed by reliable and prompt accounting and auditing and strong action when there is mismanagement occurs. This will be possible through the effective use of information and communication technology to link up separate organizations in government and private sector immediately increasing efficiency of governance. Centre for Policy Dialogue Report (2007) stressed that budget will be prepared through a participatory process which gives full opportunity to the more deprived segments of the population to enable them benefit from its implementation. Rodrigues (2006) addressed that access to information laws are often presented by advocates as a tool in the struggle against corruption and more effective development-at local levels finance. Despite the clear benefits of regular information disclosure, as a practical means of promoting transparency, public participation and accountability through local financial management system. Beer krisztina (2009) discussed the aspects of financial autonomy which is a recurrent notion in the literature on fiscal federalism and decentralization. Here explores the meaning of financial autonomy at local levels of government, its relationship with the principle of subsidiary. Its impacts on the three economic branches of government activity: allocation, distribution and stabilization. Shah
  3. 3. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 023 Triple A Res. J. Soc. Sci. Human. Anwar (2007) discussed the practice of public financial management is now considered critical in combating corruption, alleviating poverty, and ensuring the effective use of internal and external resources at local level. Here, the writer identified local government financial accounting and reporting. Bernd Paul (1995) discussed to summarize main principles that govern local finance and local taxation in particular, and to discuss their implication. Here identified that the various principles discussed must conjointly determine the scope for local taxation. The Existing Local Financial Management Systems Any fund or income placed at the disposal of the UP (Union Parishad) by government order and all grants made by the government and other authorities. Here rents and profits payable or accruing to the local Parishads from the property vested in or managed by the Parishads. Local government is empowered to have a local fund of its own. By coordinating meeting any the expenditure charged on the local fund. Fulfillment of any obligation or discharge of any duty imposed on the local Parishads. By meeting the expenditure declared by the local Parishads, with the previous sanction of the prescribed authority, to be an appropriate change on the local fund and any expenditure as directed by the Government. Expenditure specified by the government from time to time i.e. election, maintenance of local Parishads service, auditing of accounts etc. Any expenditure declared by the government to be so charged. The power to raise loans specifically given to a local body before a valid debt or obligation can be contracted or incurred. Holding taxes are levied on the basis of the annual valuation of the buildings. Tax on professions, trades and calling is imposed by the local bodies on professional persons engaged in trades or vocations within their jurisdiction. At the grass root level, development projects are undertaken and being implemented through depending on the guidelines given by the controlling or funding authority. In Bangladesh at UP level, usually four types of development projects are being undertaken and implemented now-a-days (table 1). The actual process of monitoring mechanism local level finance depends on by co-coordinating meeting by local representative. The one co-coordinating meeting held in a month of Union Parishad with the presence of Chairman and member. In the Union Parishad meeting the total amount of the union rates to be realized from the inhabitants of the union in a year is decided upon. The Union Parishad members of the respective areas are made responsible for levying the union rates on the individual households of the villages in consultation with local leaders (Matbars). It is claimed that in fixing the amount of the union rates to be paid by individual households, their economic conditions are always taken into consideration. Local financial can be monitored by personnel understand the systems; records and systems are maintained accurately and effectively; policies, timetables, and targets are met; areas of weakness are identified for action; errors and fraud are deterred and detected; and appropriate anticipatory and remedial action are taken. The financial audit of local level finance assesses the internal control systems that ensure the quality of accounting information and financial reporting. Financial audits include financial statements, accounts, accounting, receipts, and other financially related issues. Financial statement audits provide reasonable assurance about whether the financial statements of an audited entity present fairly the financial position, results of operations, and cash flows in conformity with accounting standards. The annual statement is to be forwarded to the prescribed authority by thirty first December of the following year. A copy of the annual statement of accounts is to be placed in the Parishad office for public inspection. After considering all objections and suggestions made by the public, the parishad is then required to bring it to the notice of the audit authority. The government and the Deputy Commissioner (DC) are mentioned as the prescribed authority. The upazilla accounts officer maintained accounts of receipts and expenditures of the Union Parishad. After annual statement used to be forwarded to the UpazillaParishad and after it goes to Deputy Commissioner. In local finance traditional budgets are based on the organizational structure, more specifically, identification of those officers within the government who are held accountable for spending money against budgets such as UpozillaNirbahi Officer (UNO) and people representative of local government. This feature of budgets applies whether budgets are highly aggregated or whether there is significant devolution of budgets—the organizational structure locates the budgets. Budgets tend also to focus on one year, the coming fiscal year of Union Parishad. This annual request embodies another common feature of budgets: the request for the coming year is justified in terms of marginal changes from the previous year’s budget. The essence of this feature of budgeting is not that budgets must always increase but that budgets are justified by marginal changes from previous years. Khandigaon, TukerBazar and KhadimNagor Union’s proposed financial year (2015-2016) budget is given below (table 2). The mentioned budget can be stated that Union Parishad expenditure is more than its income. Its expenditure sector is public works (development), establishment sectors and other development works of Union Parishad. Its expenditure totally depends on government and non- government aids which come from ministry of food and disaster, local government division, EC, ADP, WB, UNDP, DANIDA and UNCDF. Union Parishad income its sources of tax collection which comes from housing, land, agriculture, license fees, income from property, hat-bazars, profession and occupation. Union Parishad sources of income level is in adequate to carry
  4. 4. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 Hossain 024 Table1: Development Projects Currently Undertaken at UP S/No. Types of Development Projects Funding Authority 1. ADP Funding Project Local Government Division 2. Local Governance Support Project (LGSP) Local Government Division in collaboration with WB, UNDP, UNCDF, DANIDA and EC 3. Relief and Rehabilitation Program (Social Safety-net Programs) Ministry of Food and Disaster Management 4. Direct Funding Program Local Government Division Source: Mohammad, 2010: 50 Table 2: Khandigaon, TukerBazar and KhadimNagor Union’s proposed financial year (2015-2016) budget Union Name Income (Taka) Expenditure(Taka) Khandigaon 5843915 584067 Tuker Bazar 7418000 7361620 Khadim Nagor 9590700 9296300 Source: Compiled with the information collected from Khandigaon Union, Tuker Bazar Union and Khadim Nagor Union. out its development work of Khadi Nagor Union. In local level finance cash-based accounting exclusively emphasizes accounting for transactions what matters are the individual records of each transaction. Periodically, these records are summarized (weekly, monthly, and annual receipts and payments) and classified (monthly salary payments, monthly running expenses monthly tax receipts such form no. 3 for individual tax and form no. 4 for holding and corporate tax), often to compare against budgets. These records are the foundation of all accounting systems, for all kinds of organizations (and individuals). They emphasize an accounting that is based on verification—fact-based verifiable transactions. An important part of this verification is reconciliation of the accounting with the local government’s bank accounts. Cash accounting provides operating statements (payments minus receipts) and very simple balance sheets (cash balance). Revenue collection is one of the main functions of local governments. Local governments collect funds from a variety of revenue sources, including fines, fees, taxes, licenses, permits, and special assessments. Revenues are received in a timely manner, credited to the proper fund, and deposited into the correct bank account as quickly as possible. In addition, governments should strive for high collection rates for all revenues owed and keep the payment-making process simple and easy for citizens. The Union Parishad prepare a valuation list of all buildings within the union through an assessor to be appointed for the purpose by the Union Parishad with prior approval of the relevant authority. Such an assessor may either be a member or any other suitable person. Union Parihads to levy seven types of taxes and rates in terms of a certain percentage of the annual valuation in Tuker Bazar, Khandigaon and Khadim Nagor union. That is union rate, taxes on hearth, lighting rate, drainage rate, conservancy rates, rates for provision of water supply and rates for the remuneration of village police. For assessing the other types of taxes, the Union Parishad is guided by the rates mentioned in the model tax schedule. The specific grants are given to the Union Parishad under three separate but similar types of programs listed below; 1. Rural Works Programme (RWP) 2. Food for Works Programme (FFWP) and 3. Test Relief Programme (TRP). To obtain these funds, the Union Parishads are required to submit schemes to the Deputy Commissioner every year with complete specifications and project estimates in the prescribed direction. The most popular and widely adopted strategy for ensuring people’s participation in local development is identified as decentralization. There is perhaps no other institution like local government bodies to provide a wide scope for people’s participation at the local finance level. In Bangladesh, ever since financial decentralization has become a major policy concern, the political masters have exploited it as a means of gaining their political goals in Union Parishad. As a result, despite numerous reform initiatives in this field by the successive governments, Local Government Institutions (LGIs) have not yet emerged as autonomous and self-governing units. This, in turn, limited the scope of mass people’s participation in the local decision-making process as well as development process of Union Parishad in issues of local level finance.
  5. 5. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 025 Triple A Res. J. Soc. Sci. Human. The media shape public opinion, but they are in turn influenced and manipulated by different interest groups in society. The media can promote democracy by among other things, educating voters, protecting human rights, promoting tolerance among various social groups, and ensuring that governments are transparent and accountable. Modern-day democrats are as hyperbolic in their praise of the press. Despite the present-day mass media’s propensity for sleaze, sensationalism and superficiality, they are still seen as essential democratic tools for ensuring accountability and transparency at local level finance. Newspaper publishes Union Parishad budget, report on development activities of project, sources of tax collection and focus on what is not implemented in previous year in particular Union Parishad. Sometimes they report on corruption of Chairman and members of Union Parishad. Civil society can play a variety of roles in ensuring accountability and transparency of local level finance. It can monitor public material, exert advocacy and pressure on governments to publicize certain material, such as information on bid evaluations and awards, and it can directly monitor local financial process. Nevertheless, the power bestowed in civil society and the institutional setup must always be subject to an open and democratic debate. In Bangladesh, Union Parishad (UP) is the grass- root institution for integrating local people into the development process. Since independence all the development projects undertaken and implemented at grass-root level are done with the supervision of Union Paris had (UP), the lowest platform of Local Government (LG) as it is run by the people’s representatives. Ironically the outcome of development projects is not significantly visible as most of those are not guided by the beneficiaries’. Participatory culture in development project of Union Parishad therefore, remained a distant reality. The grassroots reality shows that the local power structure in Bangladesh is concentrated in the hands of local elite. Discrepancies in the accounting records, such as transactions not completely, not timely, or improperly recorded; last minute adjustments significantly affecting the financial statements; inadequate authorizations; tips or complaints. Conflicting or missing evidence, such as missing documents; unexplained items on reconciliations; inconsistent, vague, or implausible responses to questions; differences from confirmations of balances, difficult or unusual relationships between auditor and audit, such as denial of access to information or unwillingness to cooperate, undue time pressure, delays in providing requested information, unwillingness to address identified weaknesses in internal control of local level finance. At present local level financial position in general and of the local bodies in particular, is bounded to be very drab. Poor tax collection, corruption, inadequate people participation in Union Parishad project implementation, monitoring, and project evaluation, inadequate people participation in budget, dissatisfaction of present monitoring system among people, low caliber of the local bodies official and people representative to maintain local financial system, meager idea about local finance among people, lack of disseminating financial information, be deficient of development committee in Union Parishad contributed to the deterioration financial condition of the local level. It can identifies that bureaucratic domination in the local councils, lack of knowledge, and lack of expertise in technical matters as root causes for non-participation in Union Parishad project and people participation in budget. Structural weaknesses of standing committees have raised some burning issues. METHODOLOGY AND FRAMEWORK The study has been held based on primary and secondary data. The sources of the data are the primary data was collected through face to face interview as well as case study and focus group discussion. The study has selected areas; Khadimnagar Union, khandigaon Union, and Tuker Bazaar Union under Sylhet SadarUpazilla for the case study purpose. Side by side, the research work was consulted with the government officials and general people who are service provider and service consumer respectively. The secondary sources of data comprise the relevant documents and publications of government agencies, NGOs, national and international reports, education and research institutions and internet browsing has been done. Population of the study is all the service recipients from local authorities. Specific number of population is unknown here. So, samples of eight hundred respondents have been selected purposively based purposive sampling. Service recipient have been identified who came during the conduct of research. Categories of Respondents This study has been done based on the perceptions of 50 public representatives of Tuker Bazar, Khandigaon, Khadim Nagor and Sadar Upazilla and 750 local financial consumers of Tuker Bazar, Khandigaon and Khadim Nagor Union from 142431 inhabitants. The public representatives and local financial consumers have different characteristics with respect to local financial presentation as well as socio- economic surroundings. The local consumers are the pressure group and the local representatives are the influential group of local level Finance. Ensuring accountability and transparency at local level finance of Tuker Bazar, Khandigaon, Khadim Nagor under Sylhet Sadar Upazilla in this part by analyzing the variables from the respondents (public representatives and local financial consumers) opinion (table 3 and 4 below). FINDINGS AND DISCUSSION All respondents (100%) think that involvement people’s participation in UP budgeting is satisfactory. Analyzing the below (table 5) mentioned statistical data it can be said
  6. 6. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 Hossain 026 Table 3: Union Distribution of Respondent (Local Financial Consumers) Union Number of Respondents Percent Valid Percent Cumulative Percent Tuker Bazar 250 33.3 33.3 33.33 Khandigaon 250 33.3 33.3 66.66 Khadim Nagor 250 33.3 33.3 100 Total 750 100.0 100.0 Source: Field Data, January 2017 Table 4: Union Distribution of Respondent (Public Representatives) Union Number of Respondents Percent Valid Percent Cumulative Percent Tuker Bazar 13 26.0 26.0 26 Khandigaon 13 26.0 26.0 52 Khadim Nagor 13 26.0 26.0 78 Sadar Upazilla 11 22.0 22.0 100 Total 50.0 100.0 100.0 Source: Field Data, January 2017 Table 5: Involvement of People’s Participation in UP Budgeting People’s Participation in Budgeting Number of Respondents Percent Valid Percent Cumulative Percent Yes 50 100.0 100.0 100.0 Source: Field Data, January 2017 that involvement people’s participation in UP budgeting is adequate. The statistical information (Table 6 -12) represents the high prospect of it. Among the respondent’s majority has been said “yes” (78.0%) in questioning about inspection held regularly at local level finance (22.0%) said no. Considering this sense, it can be said that inspection held regularly at local level finance (table 6). Maximum opinions are not agreed (90.0%) with this statement that discrepancy in audit. Only five respondents are agreed (10.0%) with it. Reflecting on this result it can be said that discrepancy in audit is not perceived at local level finance (table 7). The table shows that Maximum (96%) respondents believe that audit held regularly at local level finance, whereas rest of them (4%) are not agreed with this. Analyzing the above mentioned statistical data it can be said that audit held regularly at local level finance (table 8). According to this table majority respondents (79.6%) are not satisfied with present local financial services whereas (16.5%) respondent satisfied with present local financial services. Only, (3.9%) have no comment about this. Considering this sense, it can be articulated that present local financial services are not adequate (Table 9). Maximum respondents (80.4%) think that involvement people’s participation in financial management is not satisfactory whereas (17.7%) respondents said satisfactory. Only (1.9%) respondents have comment on medium about this. Analyzing the above mentioned statistical data it can be said that involvement of people’s participation in financial management is not adequate (table 10). The table 11 shows that maximum (81.2%) respondents have no people’s participation in budgeting, whereas (17.2%) “yes” with people’s participation in budgeting. Only, (1.6%) respondents have” no comment” about this. Regarding this sense, it can be said that people participation in budgeting is not adequate (table 11). Table 12 shows that Maximum (97.1%) respondents believe that proper management ensures Financial accountability and transparency at local level finance, whereas (2.4%) are not agreed with this. Only (0.5%) have “no comment” about this. Analyzing the above mentioned statistical data it can be said that proper management ensures financial accountability and transparency. Transparency and sustainability of development projects largely depends on not only beneficiaries’ attendance but also on proper and effective monitoring System. In most of the development projects at UP level, the monitoring and evaluation system is very poor. The audit system is not up to date. Beneficiaries’ participation is almost absent. In some cases where participation is visible,
  7. 7. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 027 Triple A Res. J. Soc. Sci. Human. Table 6: Opinion about Inspection Held Regularly Inspection Held Regularly Number of Respondents Percent Valid Percent Cumulative percent Yes 39 78.0 78.0 78.0 No 11 22.0 22.0 100.0 Total 50 100.0 100.0 Source: Field Data, January2017 Table 7: Opinion about Discrepancy in Audit Discrepancy in Audit Number of Respondents Percent Valid Percent Cumulative percent Yes 5 10.0 10.0 10.0 No 45 90.0 90.0 90.0 Total 50 100.0 100.0 Source: Field Data, January 2017 Table 8: Opinion about Audit held Regularly Audit held out Regularly Number of Respondents Percent Valid Percent Cumulative percent Yes 48 96.0 96.0 96.0 No 2 4.0 4.0 100.0 Total 50 100.0 100.0 Source: Field Data, January 2017 Table 9: Opinion about Satisfaction with Local Financial services Satisfaction with Local Financial services Number of Respondents Percent Valid Percent Cumulative Percent Yes 124 16.5 16.5 16.5 No 597 79.6 79.6 96.1 No Comment 29 3.9 3.9 100.0 Total 750 100.0 100.0 Source: Field Data, January 2017 Table 10: Opinion about People’s Participation in Financial Management People’s Participation in Financial Management Number of Respondents Percent Valid Percent Cumulative Percent Yes 133 17.7 17.7 17.7 No 603 80.4 80.4 98.1 No Comment 14 1.9 1.9 100.0 Total 750 100.0 100.0 Source: Field Data, January 2017 effective realization of that participation is not felt. All these irregularities encourage UP elected representatives to keep the beneficiaries away from the development projects and to gain undue or personal benefit keeping local people in the dark. Case of Problem in Auditing and Inspection system of Local Level Finance: Shimul Biswas, age 30, a grocer of Khandigaon Union under Sadar Upazilla in Sylhet District says: “There has quandary in auditing and inspection system of local level finance. In Union Parishad have a
  8. 8. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 Hossain 028 Table 11: Opinion about People’s Participation in Budgeting People’s Participation in Budgeting Number of Respondents Percent Valid Percent Cumulative Percent Yes 129 17.2 17.2 17.2 No 609 81.2 81.2 98.4 No Comment 12 1.6 1.6 100.0 Total 750 100.0 100.0 Source: Field Data, January 2017 Table 12: Opinion about Proper Management Ensures Financial Accountability and Transparency Proper Management Ensures Financial Accountability and Transparency Number of Respondents Percent Valid Percent Cumulative Percent Yes 728 97.1 97.1 97.1 No 18 2.4 2.4 99.5 No Comment 4 0.5 0.5 100.0 Total 750 100.0 100.0 Source: Field Data, Field data, 2017 lot of discrepancy in auditing and inspection system. Auditing and inspection is not held regularly. General people is not involved in auditing and inspection system. Auditing and inspection report is not published. Sometimes, auditing and inspection is not held in due time. In auditing and inspection n system, there have no involvement in general people and mass media. So, there have raised question about ensuring accountability and transparency. Sometimes, chairman and members are misappropriated of UP Budget. So, in this perspective, there is seen huge inconsistency between income and expenditure of UP budget” (interview1, March 2017). Case of monitoring mechanism of Local Level Finance: Babul Mia, age 37, a village doctor of Khandigaon Union says: “The present monitoring mechanism of local level finance is not satisfactory and they are not able to treat local finance monitoring in right way what are people expected. It is totally unknown to people. The coordinating meeting is not regular basis to monitor local level finance. In some cases, only chairman and some selected member monitor local level finance” (interview 2, March 2017). Case of People Participation in Union Parishad Project Motin Mia, age 35, a business man of Tuker Bazar under Sadar Upazilla in Sylhet District says: “There have people participation in UP project and chairman appoint some political people involve in project. Some people gain profit in this project and no mass people involve in Union Parishad project. To culture participatory practices in local development project, there are clear provisions for inclusion of certain number of members in PICs from local elites/community people in different project guidelines” (interview 3, March 2017). Focus group participants among UP’s members, local elites and local people, one thing was clear that the Union Parishad suffers from financial crisis and it is a major reason for its non-functioning. There are some serious structural and procedural flaws of the standing committees of Union Parishad. Some of these flaws were identified by the respondents in this manner: meetings of standing committees are not arranged regularly, not having a clear conception about the functions of the UP among its members, weakness in coordination and interrelation among the different UP standing committees. members stay busy with their personal work and therefore unable to contribute enough time to the Union Parishad activities, standing committees are formed officially but are not active because of the lack of sincerity of the chairmen. CONCLUSION In the monitoring system of TukerBazar, Khandigaon and KhadimNagor’sfinance system are throughout the year, the local official adjusts the cash flow forecast as needed. The financial audit of local level finance assesses the internal control systems that ensure the quality of accounting information and financial reporting. Traditional budgets are based on the organizational structure, more specifically, identification of those officers within the government who are held accountable for spending money against budgets local official and people representative of local government. In TukerBazar, Khandigaon and KhadimNagor Union Parishad, it was found that respondents have no knowledge on the subject of idea about local financial management. Majority respondents are not satisfied with present local financial services. All most all the respondent’s involvement people participation in financial management is not satisfactory. Income of the local bodies from their own sources is limited to carry out development
  9. 9. Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018 029 Triple A Res. J. Soc. Sci. Human. work of UP. The study also found that accountability and transparency at local level finance is good from the local representative’s perception and Low level from local financial service consumer’s perception The challenges regarding ensuring accountability and transparency issues are corruption, lack of people participation in project and budget, poor idea about local level finance and its mechanism, lack of development committee, UP does not disseminate financial information, shortage of human power , irregular auditing and inspection system, lack of trained personnel, traditional local financial system, political syndicate among civil society, lack of digital financial system , not have of women members participation in standing committee and project at local level finance. So, appropriate authorization and approval procedures should ensure that management policies are adhered to local financial policy. Every area of work is independently supervised, validated, or reconciled; the opportunities for collusion are reduced; and unintentional errors have a higher chance of being detected. Different development of UP should lively work and general people should involve in this standing committee. The socioeconomic development of the local people largely depends on the proper functioning of this vital institution. REFERENCES Beer KT (2009). Local Financial Autonomy in Theory and Practice: The impact of Fiscal Decentralization in Hungary, University of Fribourg Switzerland. Retrieved from: http://www.unifr.ch/ses/ses2007/uploads/Beer- TothK.pdf on 3rd October 2017. Pp1-5 Centre for Policy Dialogue Report (2002). Dhaka ‘1209’, Bangladesh. Retrieved from: http//www.cpd.org.bd /Pubattach/ Dr-51.pdf on 20th September 2011. Pp1-12 Centre for Policy Dialogue Report (2007). Dhanmondi, Dhaka 120. Retrieved from: http//www.cpd- Bangladesh/policy Brief/ Sub folders/down loads/ vision-2021/English on 20th September 2017. Pp10-12. Holzer B (2001). The Transparency Syndrome in Golbal Change, University of Pittsburgh. Pp.1. Kim HY (2004). Local Tax Financing in the Nordic Countries, Oslo, Norway. Retrieved From: http//www.adb.org/Documents/Booksd/Local govt. finance on 3rd October 2017. Pp1-20. Mohammad NS (2010). People’s Participation in Development Projects at Grassroot Level: A Case Study of Alampur and Jagannathpur Union Parishad, North South University, Bangladesh. Pp1-103. Paul B, Goel P (2010). Local Taxation: Principles and Scope, The World Bank, Washington DC, Mc Graw- Hill. Pp1-11. Quigly MJ (2008). Local Public Finance, Institute of Business and Economic Research University of California, Berkeley. Pp1-6. Rodrigues, Charmaine (2006). Promoting Public Accountability in Oversea as Development Assistance: Harnessing the Right to Information, Commonwealth Human Rights Initiative. Rossendorff BP, Vreeland RJ (2006). Democracy and Data Dissemination: The Effect of Political Regime on Transparency, New York University and Yale University. Pp5. Shah A (2007). Local Public Financial Management, World Bank, Washington DC 20433. Retrieved from: http//resources.world bank.org/PSGLP/Resources/Local Public Financial Management.pdf on 3rd October 2017. Transparency and Accountability in Government Financial Management Report (1999). United Nations, New York, N.Y.10017. Pp1-65. The Constitution of People Republic of Bangladesh, Article-60 (1997). Willems T (2002). Public Accountability and PPP’S. Retrieved from: http//regulation.upf.edu/dubin_10_Papers/511.pdf on 5th October 2017. Pp2.

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