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

ABSTRACT

In existing local level finance system have lack of accountability and

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
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.

Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018

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
Triple A Research Journal of Social Science and Humanity (TARJSSH) | Vol.2 No.1 | June 2018
Hossain 022
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
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
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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

Table1: Development Projects Currently Undertaken at UP
S/No. Types of Development Projects
1. ADP Funding Project
2. Local Governance Support Project
(LGSP)
3. Relief and Rehabilitation Program
(Social Safety-net Programs)
4. Direct Funding Program
Source: Mohammad, 2010: 50
Table 2: Khandigaon, TukerBazar and KhadimNagor Union’s proposed financial
year (2015-2016) budget
Union Name Income (Taka)
Khandigaon 5843915
Tuker Bazar 7418000
Khadim Nagor 9590700
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.
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Hossain 024
Funding Authority
Local Government Division
Local Government Division in
collaboration with WB, UNDP,
UNCDF, DANIDA and EC
Ministry of Food and Disaster
Management
Local Government Division
Expenditure(Taka)
584067
7361620
9296300
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.
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
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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
 Hossain 026

Table 3: Union Distribution of Respondent (Local Financial Consumers)

Union Number of Percent Valid Percent Cumulative

Respondents 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 Percent Valid Percent Cumulative

Respondents 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 Number of Percent Valid Percent Cumulative

in Budgeting Respondents 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,

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027 Triple A Res. J. Soc. Sci. Human.

Table 6: Opinion about Inspection Held Regularly

Inspection Held Number of Percent Valid Percent Cumulative

Regularly Respondents 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 Number of Percent Valid Percent Cumulative percent

Audit Respondents
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 Number of Percent Valid Percent Cumulative

Regularly Respondents 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 Number of Percent Valid Percent Cumulative

Financial services Respondents 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 Number of Percent Valid Percent Cumulative

Financial Management Respondents 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

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 Hossain 028

Table 11: Opinion about People’s Participation in Budgeting

People’s Participation in Number of Percent Valid Percent Cumulative

Budgeting Respondents 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 Number of Percent Valid Percent Cumulative

Financial Accountability and Respondents Percent
Transparency
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

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.
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