Assessment of Internal Control Performance on Revenue Collection Process of Local Government Authorities in Tanzania.

Abstract

vii ABSTRACT Revenue is important to Local Government in order to operate their daily activities. It is a requirement that Local Government Authorities have to collect revenue from their own sources at 100% in order to be able to operate and implement their activities rather than depending on Funds from Central Government. In the last decade, the Government used manual books to collect revenue then in recent years the Government decided to shift using electronic system. The study assessed the internal control performance on revenue collection process of Local Government Authorities in Tanzania. The study reached a total 156 respondents through interview. Both qualitative and quantitative data were collected and analyzed. Data was analyzed by SPSS and presented using the tables which composed frequency and percentages. Majority (34.0%) of the respondents were aged 48-57 years. Among those respondents the majority (55.8%) were male. The majority (62.8%) reached by the study had university education. The study reached majority (34.6%) respondents with skills and experience in the field. Hence, the study concludes that POS Machines, the local government revenue collection system and frauds has significant influence on internal control of the collected revenue in Njombe Town Council and increase internal control of revenue collected. The findings revealed that POS machines have increased reliability, the accuracy of records, amount of revenue collection while minimized leakage of revenue, frauds, theft and corruption incidence in revenue collection. The findings conclude that there is a significant improvement of performance on internal control for the revenue collection Njombe Town Council