Abstract
This study investigates the relationship between public fund accounting and transparency by analyzing secondary data from FAAC monthly allocations and TSA summary statistics covering 2018 to 2024. Public fund accounting is operationalized using three proxies: FAAC Allocation Efficiency, TSA Coverage Ratio, and TSA Compliance Rate. Transparency is assessed using Audit Query Frequency, Public Access to Financial Reports, and the Budget Implementation Transparency Index. Drawing on Agency Theory, the study employs a quantitative research design, applying descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression to evaluate the effect of accounting efficiency and compliance on transparency outcomes. The findings reveal strong positive relationships between accounting proxies and transparency indicators. Notably, higher FAAC efficiency and TSA coverage/compliance significantly reduce audit irregularities and increase public access to financial information and budget implementation transparency. Based on these results, the study recommends intensifying FAAC allocation consistency, expanding TSA coverage across all MDAs, enforcing TSA compliance, and enhancing public financial disclosure mechanisms. These reforms are essential for reducing fiscal opacity and fostering accountability. The study contributes valuable empirical evidence to guide fiscal policy reforms in Nigeria and other developing economies.
Keywords: FAAC, Public Fund Accounting, Transparency, TSA