Prepared By: Mr. Eleazer Fianko Ofei Proposal Defense Prepared By: Mr. Eleazer Fianko Ofei

Research Topic: Financial Management Practice used by Local Government Agencies in Ghana.

Field and Subject of Study The field of study for this research work is Finance and the subject of study is subject of study is financial management

Purpose of the study The purpose of this study is to contribute knowledge to Financial Management Practice and proffer solutions to manage challenges in the management of funds in local government institutions

Problem Statement As part of the core functions of MMDA’S they have the mandate to raise revenue through internally generated funds. Despite the steps put in place to ensure funds are properly generated and utilized, MMDA’s have in recent years been on the spot light for poor management of funds and embezzlement of fund, according to the auditor general’s report,

Research Objectives To examine the extent to which financial management practices have affected the operations of MMDA’S To determine the impact of financial management practices on the performance of MMDA’S To determine the best combination of practices that enhance the management of finances by MMDA’S To find out the challenges encountered by MMDA’S in the management of their finances.

Problem Statement………Contd. MMDA’s have recorded a downward trend in their revenues as a result of misapplication of funds, this the report indicates that in 2015 misappropriated funds amounted to 67 million cedi’s, whereas in 2016 the figure rose to 123 million Ghana cedi’s, this is over 90% increase in the funds misappropriated, Auditors Report, (2017).

Significance of the Study The research work would also serve as a basis for other researchers to conduct further research into other filed that has not been researched as indicated by Osako, (2016). The research work would further seek to provide relevant information to policy makers in the public sector in the development of policies that aim at providing proper financial management practices that seek to reduce misappropriation of finances

Background and Justification Limited research has been done in the area of research relating to financial management in Local Authorities (MMDA’s) Mismanagement of finances by MMDA’s as indicated by audit reports Breach of Acts and Legal provisions mandating local authorities to manage finances. Financial implications of misappropriated funds by MMDA’s on the Citizenry within their jurisdiction.

Literature Review Klammer (2017) studied the relationship between financial management practices and financial performance in US, and found out that, despite the growing sound financial management practices, there was no consistent significant association between financial performance and financial management practices. Nguyen (2015), assessed the relationship between financial management practices and profitability of small and medium enterprises in Australia. He focused his attention at various financial management practices and financial characteristics and demonstrates the simultaneous impact of financial management practices and financial characteristics on SME profitability.

Literature review ………………..contd. Ansong (2014) studied the relationship between financial management practices and sources of funding in Ghana, and found out that, despite the growing sources of funds, had a direct association with financial management practices. In Kenya, Mundu (2016) reviewed selected financial management practices adopted by small enterprises in Kenya. The study found out that 66% of the respondents did not undertake cash budgeting, 70% of the business owners kept surplus cash with themselves and over 56% of the business owners were handling cash personally as the security to their money.

Methodology Research Design would be mixed research strategy which combines both Quantitative and Quality methods. Sample for the research would be 65 selected from a population of 176 Sampling procedure would be non probability which will Purposive sampling method, because of the information needed would be from people with requisite knowledge in field. Data Source would be both primary and secondary for the research, questionnaires would be used to extract information from respondents Data analysis would be done through the use of Simple Percentage analysis, regression, and ranking tools such as fried mans test.

Expected Study Results and Possible Usage At the end of this research the research is expected to identify the financial management practices used by MMDA’S, it is further expected to find out the extent to which financial management practices as currently used by the MMDA’s have positively or negatively affected the performance of the MMDA, it would also give a general idea on the best combination of practices that best enhance the management of finances by MMDA’s it would finally indicate the challenges faced by MMDA’s in managing their finances.

Safety, Ethics and Environmental Issues Safety measures include: Identity protection, response protection and content protection. Ethical measures include: Confidentiality, Proper Acknowledgement of writers etc. Environmental Protection Methods: Proper disposal methods such as shredding of paper, proper disposal of rubber related items used.

Outline of the Thesis The research work would be made up of five chapters Chapter One Chapter Two Chapter Three Chapter Four Chapter Five

Planned Implementations Schedule This research work would follow the timelines as provided by the university. The first chapter would be developed in 2 weeks, The second chapter would be developed in 3 weeks The third chapter would be developed in 2 weeks The fourth chapter would be developed in 4 weeks The fifth chapter would be developed in 2 weeks