INTRODUCTION All over the world, government adopts various strategies and approach for good governance at the grassroots level. The government at the grassroots is called local government. Local government exist through the process of democratisation and full participation of citizens at the grassroots level in decision making. Its establishment is to serve two purposes, firstly, as administrative body for providing goods and services for the need of the citizens within the locality. Secondly, as a democratic set-up for full representation of community members in decision making at the local government level. Local government plays a vital role in socio-economic development of the grassroots, either rural or urban setting. It is the government that is closest to the grassroots by making governance and service delivery available to citizens at the community level. It also aid the development of the grassroots administratively and politically. According to Sikander (2015), social, political or economic development becomes meaningful and real when it comes from the grassroots which is the lowest society’s level. Mbieli (2018) stated that no nation can be termed developed when its villages are lagging behind and its cities going ultra-modern. It is the local government that balance the equations between the cities and the villages through developmental programmes in order to achieve public policies. Globally, government has pursued various form of public financial management reforms to enhance local government performance in areas of accountability, transparency, rules of law compliance and service delivery to the generality of the citizens within the community. Finance is the fuel of any form of administration, either private or public. At the local government level, it constitutes the lubricants for the wheel of good administration. According to Aborishade and Marshall (1981) cited in Hassan (2011), finance is a thread that runs round the cloth, if the thread is pulled wrongly at one end, it will affect the design of the cloth and destroy its beauty. Therefore, finance in any organization must be handled with care and must be disbursed according to laid down rules and regulations. A sound financial administration is the core of good efficient, effectives and equity which are the guiding principles of financial management. Efficiency is the ability to achieve maximum results at minimise cost, effectiveness deals with expenditure relevance in meeting the management objectives, while equity ensures justice and fair play in all management activities. The overriding factor in local government financial management is the basic operation of financial services in a competitive, efficient and cost effective manner. Besides, the efficient management of local government finances is constrained by the political impunity of state governors and this has undermined grassroots developments (Otinche, 2014). Financial administration which is the crux of financial management is the art and science of financial planning, coordinating, organising and