Browsing by Author "Ndyetabula, Daniel W."

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    Internal control systems and the revenue collection performance among Local Government Authorities (LGA) in Tanzania
    (Journal of Policy and Development Studies, 2025-02-17) Hyera, Dennis W.; Kadigi, Michael L.; Ndyetabula, Daniel W.
    This study examines the influence of internal control systems on revenue collection performance in selected Local Government Authorities (LGAs) in Tanzania. Weak internal controls contribute to inefficiencies, fraud, and inconsistent financial reporting, posing challenges to revenue collection. The study evaluates the influence of internal control mechanisms in three LGAs, Mbeya, Mwanza, and Manyara, categorised as high, medium, and low performers by the Controller and Auditor General (CAG). A cross-sectional survey design was employed, collecting data from 400 revenue officers across the three LGAs. The study applied Two-Stage Least Squares (2SLS) regression, using external audit frequency as an instrument to address endogeneity concerns. Structured questionnaires facilitated standardised data collection. Findings reveal that solid internal controls significantly improve revenue collection. Accurate financial records (β = 0.045, p < 0.01), timely reporting (β = 0.226, p < 0.01), and effective monitoring (β = 0.152, p < 0.01) enhance revenue efficiency. However, fraud incidents negatively impact revenue growth (β = -0.042, p < 0.1). Internal audits strongly influence revenue increments (β = 0.241, p < 0.01), highlighting their crucial role. To enhance revenue performance, LGAs should strengthen internal audits, improve the accuracy of financial records, implement fraud prevention measures, and optimise reporting timelines. Policymakers should establish standardised internal control frameworks, invest in technology, and engage Public-Private Partnerships (PPPs), local communities, civil society organisations, and NGOs to enhance external oversight, promote citizen participation, and reinforce trust. Additionally, conducting regular policy reviews will improve accountability and efficiency in revenue collection processes.