Increasing Internally Generated Funds through Supervision

Research Paper (undergraduate) from the year 2014 in the subject Business economics - Economic Policy, , language: English, abstract: This study was conducted to assess the effectiveness of supervision in increasing internally generated funds (IGF) of Metropolitan, Municipal and District Assemblies, (MMDAS) in Ghana, with particular reference to the Wa Municipal Assembly. The purpose or objective was to investigate how much effective supervision would increase internally generated funds in Wa Municipal Assembly of the Upper West Region of Ghana. The key specific objectives of the study were to identify the key sources of revenue for the Wa Municipal Assembly, the specific sources of locally generated revenue; the specific guidelines or by – laws bordering revenue collection in the Municipality; the targets set for revenue collection, and find out whether targets set were met or not; and how people were rewarded or sanctioned for doing their jobs satisfactorily or unsatisfactorily. It was found that the key sources of revenue to the Wa Municipal Assembly were; the District Assembly common fund (DACF); District Development Fund (DDF); internally generated fund (IGF); Government of Ghana (GOG) and Donor grants. It was also found that the (IGF) of the Wa Municipal Assembly had been increasing in nominal terms except in 2012 when it dropped from 475, 884.29 in 2011 to 28,423.77 in 2012, which was not directly explained. It was however, noted that the average performance of IGF was 8.44% which was not good enough. The conclusion drawn from the research was that though the nominal contribution of IGF increased from 2008 to 2014 except in 2012, the average performance was low; especially as compared to the 2012 IGF of Accra Metropolitan Assembly of 49% of total revenue of the Accra Metropolitan Assembly. The Researcher recommended further research into the operations of the revenue collection unit of the Wa Municipal Assembly, using multiple regression analysis to establish the quantitative co – relation between internally generated funds and the explanatory variables of supervision. These are; educational attainment, experience, training and motivation.