2. 21 January 2015 CPA Kandole Patrick 2
Revenues represents an inflow of
financial resources into Lgs from
communities, Donors and GoU
3. Challenge
1. The increase in revenues are not reflected
into increased resource allocation to priority
services
2. Persistent revenue inadequacy despite GoU
interventions.
3. Increasing cases on under collection and
resource wastage.
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4. 21 January 2015 CPA Kandole Patrick 4
WHERE IS THE PROBLEM?
Who is responsible?
Is the problem real or a lamentation?
WHAT IS THE POSSIBLE SOLUTION?
What are the quick wins? The cost
neutral interventions.
5. Revenue enhancement
•Enforcement,
•Fraud risks
•Data integrity,
Recording and
control systems
• Service delivery or
service provision?
• Performance
budgeting
• Approvals
• New strategies
• Sensitization
• Oversight
• accountability
• Low hanging fruits,
resource mapping
• Sensitization
• No lamentations
• Overcome challenges New
revenues
Policy
formulation
Collection
and
monitoring
Expenditure
rationalization
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6. Concept of revenue generation
• Wider use of charges for mixed benefit public
service
– Sports?
– Education lunch
– Recreation
21January2015CPAKandolePatrick
6
7. Good monitoring system
• Setting up sound collection targets;
• Setting up good control systems;
• Performance measurement;
• Performance reporting;
• Report Analysis;
• Corrective action.
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8. Collection Targets
• Set realistic and attainable targets
• Assign targets and responsibility to individuals
for each revenue source.
• Ensure the achievement of targets from each
revenue source or collection point.
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9. Performance Measures
• Financial Performance. -performance targets
or indicators determine how much collection
efforts have achieved
– Budget variance analysis and trends i.e. how
much have you collected compared to budgeted
revenues from a given source;
– Level of outstanding debtors or arrears from a
given revenue source;
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10. Performance Measures
• Resource Utilisation Performance Measures.
These are used to measure the resources that
have gone into collecting revenue for a
particular source. Examples are:
– Amount of funds and human capital used to
collect the revenue compared to actual
collections;
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11. Performance Measures
• Benchmarking- identify appropriate LG whose
performance may be used as a comparator, or
benchmark.
– However benchmarking application is constrained
by lack of data for many LGs in Uganda.
•
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12. Performance Measures
• Community Satisfaction
Measures. Test and
judge revenue effects on
taxpayers and the
community.
– Number of complaints-
unfairness, no services..
Collection methods
– how long on average did it
take to process licenses of
individual businesses ?
– Downward accountability
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13. Performance Measures
• Individual Collection Targets
– Set realistic targets of revenue to be collected by
individual collectors
– Monitor and measure continually
– Watch for ay human behavioural impact
behavioural.
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14. Types of Performance Measures
• Records Maintenance
– amount collected, target, explain variations
periodically
– Good quality data
• Feedback- make the monitoring process an
interactive, transparent exercise, owned by both
the monitors and those being monitored. .
• Monitoring is not supposed to be a policing and
catching thieves, but performance improvement
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15. Follow-up and Corrective Action
• Strengthened good findings
• Act on poor performance, remedial
• Discussions and ownership
• while the bad ones need to be acted upon.
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