11-04-2012, 05:07 PM
DATA ANALYSIS AND PRESENTATION
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Introduction
The general objective of this study was to evaluate the effectiveness of internal control systems on revenue collection in Nakuru Municipality. Well, to evaluate the effectiveness of the existing internal control system, four dimensions of control systems were considered. They were issuing of accountable documents, remittance of revenue collected, deposits to banks and finally on custody of revenue. We therefore examined the influence of these indicators separately and cumulatively as the overall internal control systems of the council.. The study involved a sample of 40 employees drawn from various departments.
Issuing of accountable documents
The sample respondents were requested to indicate their personal evaluation of the level of effectiveness of each of the indictors. Their responses are tabulated on appendix 2(i).
Table 1 indicates the total score and percentage of the internal control indicator.
Remittance of revenue collected
The effectiveness level of the internal control systems governing remittance of revenue collected was also evaluated. The sample respondents were asked to indicate their personal evaluation of the effectiveness of each of the indicators. Appendix 2 (ii) gives a summary of the responses. Table 2 depicts the total score from their percentages.
Deposit to banks
The level of effectiveness of the internal control systems governing deposit to banks was also assessed. The sample respondents were asked to indicate their personal evaluation of the effectiveness of each of the indicators. Appendix 2 (iii) gives a summary of their responses. Table 3 indicates the total score and percentages of the internal control indicator.
Overall effectiveness of the internal control system
The overall effectiveness of internal control system reported by the respondents was at this point computed by summarizing up the four dimension scales. From the table below the overall score varied between 29 indicating the least overall level of effectiveness and 87 indicate the highest overall level of effectiveness. The higher the score the more effective was the internal control system of the council. Table 5 shows the maximum and minimum scores for the 4 dimensions of the level of effectiveness of I.C.S a revenue collection.
Conclusions
The respondents indicated an overall 67.64% percent ineffectiveness of the internal control system in Nakuru Municipal Council. This indicated that in the overall the council had put in place by the local government but they are not working in practice. For instance revenue collected should be surrendered in full and none should be spent at source but it was fond out that some revenue was being spent at source, revenue was not remitted regulatory as stipulated by the finanelectively.