This research work was aimed at studying the Impact of Financial Management in Controlling Fraud in Olamaboro Local Government Council. The objective of this work is to provide realistic strategies on how the resources of the local government can be effectively controlled so as to avoid fraud and misappropriation. The researcher used both primary and secondary methods in collecting data. Analysis of the data was done through the use of simple percentage method for easy understanding. It was revealed after the investigation that effective financial management and control are very necessary for good governance in Olamaboro local government area. And for this to be possible, there must be accountability for any money spent. At the end, the researcher also made the recommendations that there is a need to appoint competent staff to ensure that appropriate records such as balance sheets are kept and updated and that the need for the internal and external auditors to work together cannot be overemphasized.