Nexus between Internal Controls System and Effectiveness in Revenue Collection in Energy Utilities in Tanzania

Abstract

This research examined the nexus between internal controls system and revenue collection effectiveness in energy utilities in Tanzania. Multiple regression analysis was applied to the collected data from respondents. It was revealed that, control environments and control activities have insignificant and positive association with revenue collection effectiveness while risk assessment and monitoring of controls had significant and positive influence to effectiveness in revenue collection. In order to improve revenue collection efficiency in energy utilities and other related public authorities in Tanzania, it is indispensable to support and improve internal controls system like segregation of duties, reconciliations and physical controls so as to bring efficiency in revenue collection. Also, assessment of risk is another control which needs to be undertaken in order to encourage revenue collection effectiveness. For all these controls to be active, monitoring of controls should be highly undertaken on periodic basis. Since our research considered energy sector as the study area particularly at TANESCO in Morogoro region, it is recommended that next studies should take into consideration other sectors and related public bodies.