local government revenues uganda case

MUNICIPAL REVENUES

Revenue performance and Management

CPA Kandole [email protected]

21 January 2015 CPA Kandole Patrick 2

Revenues represents an inflow of financial resources into Lgs from

communities, Donors and GoU

Challenge

1. The increase in revenues are not reflected into increased resource allocation to priority services

2. Persistent revenue inadequacy despite GoUinterventions.

3. Increasing cases on under collection and resource wastage.



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.

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


Concept of revenue generation

• Wider use of charges for mixed benefit public service

– Sports?

– Education lunch

– Recreation

21

Janu

ary 20

15

CPA

Kand

ole

Patrick

6

Good monitoring system

• Setting up sound collection targets;

• Setting up good control systems;

• Performance measurement;

• Performance reporting;

• Report Analysis;

• Corrective action.


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.


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;



• 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;



• 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.

•



• 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



• 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.


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


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.


Revenue mobilization discussionsShow where the money Goes

The [email protected]


local government revenues uganda case

Documents