A dissertation presented to the School of Business in partial fulfillment of the
requirement of Master of Science accounting & finance (MSc A& F) of Mzumbe
University
The general objective of the research was to assess the performance of outsourced
revenue collection in LGA Kasulu District council as the case study. The key findings
of this dissertation were, that the council has been able to collect revenue from own
sources in moment in time by an average percentage of 0.97% or 0.97 annually. This
means that, some agencies were not complying with their contract signed between the
agencies and the council. Also another finding was that the performance in revenue
collection of market due dropped by average of 47.6% while the performance of the
forest fee levy has increased by an average percentage of 17%.Also the performance
of market stall rent has increased by average percentage of 3%.
The achievement to collect about 97% revenue from own source was due to the effort
done by finance department to make strong follow up as well as the strong terms of
the agreement as found in the legal contracts between the Agencies and Council. And
3% difference was due to weak adherence by the agencies to terms of agreements and
contract signed.
The key recommendation emanating from the above findings were, that the council
should build abattoir and cow action mart in order to add more number of revenues
and to increase council revenue collection in which this option has multiple effect of
supporting animal activities and improving famer‟s income together with health to
people. In order to minimize the risk of giving the contract to incompetent and
dishonest agents who fail to submit revenue collected at time, the council
management should give the contracts or terms of agreements to agents with enough
experience, and also the augends should have required and recommended collaterals.
Since the council has enough number of revenue sources which has not outsourced
and which can perform well if they are outsourced. I recommend new revenue sources
such as parking fees for bicycles, fee for Lorries in transit parking in towns and also
the council should opt to make investment in government shares and treasury bonds
and also LPF.
The general research method employed to achieve this dissertation at the whole period
of study were questionnaire ,personal observation together with documentary review
as the major method of research data collection approach used.