This study is aim at examining the role fund accounting plays in public expenditure management with a view to identify the extent of its application in Enugu state. To achieve this, survey method of research was utilized in carrying out the study. Both primary and secondary sources of data were used in gathering relevant information. The primary sources of data were used in gathering relevant information. The primary sources consist of the questionnaire and oral interview while the secondary data were used in gathering relevant information. The primary sources consist of the questionnaire and oral interview while the secondary data were gathered from existing literature on the subject matter of the student. For analytical reasons, the sampled departments were subdivided into departments that incur only recurrent expenditure and departments that incur both recurrent and capital expenditure. In the data analysis, tabular presentation of the data was used where by the relationship one data has with another been quantified by simply percentage representation. The analysis revealed that most of the departments that incur both recurrent and capital expenditure lacked the required seriousness in the application of fund accounting systems, documents and techniques in their expenditure management. The results of the two hypothesis tested in this study confirmed that loose application of fund accounting techniques seriously affect the adherence of their budget provisions. In view of the importance of fund accounting in public expenditure management, this study tended to recommend among others that: Fund accounting should be effectively used in public expenditure management in Enugu State. A unit in the ministry of finance known as investigation and compliance unit (INCU) should be resuscitated to the monitoring the compliance of department system and their budgetary provisions.