Internal audit and revenue management in local governments

Abstract

The purpose of the study was to investigate the relationship between Internal Audit and Revenue Management in local governments. The study specifically examined: adequacy and effectiveness of Internal Audit function, the effectiveness of Revenue Management and the Relationship between Internal Audit and Revenue Management in Nagongera Town Council. The study used a case study design and self-administered questionnaires were used for data collection. The study established that Internal audit is adequate and effective in Nagongera town council as shown in table 4.18 represented by the mean and standard deviation of 3.2917 and 1.23699 respectively. It also revealed that there is effectiveness in revenue management since there is Proper Financial management revealed in table 4.34 with a mean and standard deviations of 3.0417 and 1.47256 respectively. The study established that Internal Audit has a positive significant Relationship with Revenue Management (r=0.621, p<0.05; ( =0.621, p<0.05). Internal audit significantly affects revenue management (F=149.754, P=0.000). This means that internal audit is a significant determinant of revenue management. The standardized beta coefficient of ( =0.621, p<0.05) meaning that internal audit has a positive and significant relationship with revenue management. The study concluded that Revenue Management in Nagongera Town Council improved with better internal auditing practices. The study also revealed that there is proper financial management in the town council. The study recommends that; seminars, workshops and forums should be organized by the management to educate and sensitize staff members especially those from finance and auditing on how to handle and manage public revenue effectively. There should be improved supervision of town council funds to ensure that they are channeled in a proper direction, usage and well appropriated. There is need to put up procedures and rules governing the usage of the assets both during their service and at their disposal.