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- 4 Marks
Question
Revenues of Local Government Authorities are often limited. Therefore, there is a need for the Assemblies to institute adequate internal controls over their revenues to improve their financial health.
Required:
State and explain FOUR (4) internal control systems that the Assemblies can put in place to effectively control their revenues. (4 marks)
Answer
- Immediate Banking of Collections: Ensure that all revenue collected is banked promptly to prevent misuse. This can include direct deposits by payers into the Assembly’s account.
- Accurate Assessment and Collection: Identify all potential revenue sources and ensure accurate levying. Implement electronic systems to track and collect revenue efficiently.
- Proper Custody of Value Books: Ensure that value books (e.g., receipt books) are stored securely and issued only to authorized personnel. Maintain proper records of these books.
- Regular Record Keeping: Assign responsible officers for maintaining up-to-date records of revenue transactions. Implement approved accounting software for better accuracy and transparency.
- Tags: Internal Control, Local Government, Public Sector Accounting, Revenue Control
- Level: Level 2
- Topic: Public sector fiscal planning and budgeting
- Series: NOV 2020
- Uploader: Joseph