TABLE OF CONTENT
DECLARATION ................................................................................................................ ii
ACKNOWLEDGEMENT ................................................................................................. iii
TABLE OF CONTENT ..................................................................................................... iv
LIST OF TABLES ........................................................................................................... viii
LIST OF FIGURES ............................................................................................................. x
ABSTRACT ...................................................................................................................... xi
CHAPTER ONE .................................................................................................................. 1
INTRODUCTION ............................................................................................................... 1
1.1 Background of the study ....................................................................................... I
1.2 Problem statement ................................................................................................. 2
1.3 Research objectives ............................................................................................... 3
1.4 Research Questions ............................................................................................... 3
1.5 Scope of the study ................................................................................................. 3
1.6 Significance of the study ....................................................................................... 3
1.7 Conceptual Fraine Work ...................................................................................... 4
CHAPTER TWO ................................................................................................................. 6
LETERATURE REVIEW ................................................................................................... 6
2.0 Introduction ................................................................................................................ 6
2.2. Financial controls .................................................................................................... 7
2.3 Financial indicators ..................................................... : .............................................. 8
2.3 .1 Segregation of duties ..................................................................................... 8
2.3.2 Authorization of duties .................................................................................... 8
2.3 .3 Authorization of expenditure ......................................................................... 8
2.3.4 Bank reconciliation ........................................................................................ 9
2.3.5 Budgets .......................................................................................................... 9
2 .3. 6 Supervision .................................................................................................. IO
2.3. 7 Review of records ........................................................................................ 10
2.4 Indicators of Accountability .................................................................................... 11
2.4.1 Production of documentary evidence ............................................................... 11
2.4.2 Book of accounts ......................................................................................... 11
2.4.3 Financial reports .......................................................................................... 11
2.4.4 Output/results ............................................................................................... 12
2.5 Accountability ..................................................................................................... 12
2.6 Relationship between indicators of financial controls and accountability .......... 15
2.6.1 Authorization and accountability .................................................................. 15
2.6.2 Reconciliation and accountability .............................................................. 15
2.6.3 Segregation and accountability ..................................................................... 16
2.6.4 Budget and accountability ............................................................................. 16
CHAPTER THREE ........................................................................................................... 17
METHODOLOGY ............................................................................................................ 17
3 .1 Introduction ............................................................................................................... 17
3 .2 Research design ......................................................................................... , ............. 17
3 .3 Survey population ...................................................................................... , ............. 17
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3 .5 Sa1nple size .............................................................................................................. 17
3 .6 Sampling procedure ................................................................................................. 18
3.7 Source of data .......................................................................................................... 18
3.7.1 Primary data .......................................................................................................... 18
3. 7 .2Secondary data ................................................................................................... 18
3.8 Data collection 1nethods .......................................................................................... 18
3 .9 Tools of data collection ........................................................................................... 19
3 .9 .1 Questionnaires ................................................................................................... 19
3.9.2Interview guide .................................................................................................. 19
3 .10 Data analysis and presentation ........................................................................ 19
3 .11 Li1nitations of the study ................................................................................... 19
CHAPTER FOUR ............................................................................................................. 20
PRESENTATION, ANALYSIS AND DISCUSION OF FINDINGS .............................. 20
4.1. INTRODUCTION .................................................................................................. 20
4.2. Findings on the background information ................................................................ 20
4.2.1 Distribution of respondents by position held ............................................... 20
4.2.2 Distribution of respondents by sex ............................................................. .21
4.2.3 Finding on distribution of the respondents by age ...................................... .21
4.2.4 Finding on time spent on job ....................................................................... 22
4.2.5 Findings on the highest level of education attained ..................................... 22
4.3 Finding on objectives ............................................................................................... 23
4.3 .1 assessment of financial control in Dar es Salaam province ............................. .23
4.3.1.0 Findings on segregation of duties .................................................................. 23
4.3 .1.2 Findings on whether a single employees can carry out all transactions of a
transaction .................................................................................................................. 24
4.3 .1.3 Finding on division of duties among different people ............................... .24
4.3 .1.4 Findings on authorization of duties .............................................................. .25
4.3 .1.5 Findings on whether all sub-county activities are approved ...................... 25
4 .3 .1.6 Response on whether the province chief approves activities ...................... 26
4.3 .1. 7 Finding on authorization of expenditures ................................................... .27
4.3 .1.8 Findings on whether all payments are authorized by the provinc-accountant
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4.3.1.9 Findings on expenditure above 1,000,000 being authorized by the provinceco1n1nissioner
............................................................................................... , ............. 28
4.3 .1.10 Response on whether all procurement are authorized by the procurement
committee before procurement .................................................................................. 28
4.3 .1.11 Finding on bank reconciliation ................................................................... .29
4.3 .1.12 Finding on whether bank statements are collected monthly and recorded
with the cash book ..................................................................................................... 29
4.3 .1.13 Findings on whether reconciliation is done by an independent person other
than those involved in banking activities and cashbook preparation .......... , ............. 30
4.3 .1.14 Response on whether reconciliation variation is investigated and corrective
action taken .................................................................................................. , ............. 31
4.3.1.15 Finding on budgets ...................................................................................... 32
4.3.5.1 Finding on whether only items budgeted for are bought ........... , ............. 33
4.3.1.16 Finding on whether budgets are passed by the budget committee .............. 33
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4.3 .1.17 Finding on whether management accepts activities that are not budgeted for
to be implemented ...................................................................................................... 34
4.3.1.18 Finding on review ofrecords ....................................................................... 35
4.3 .1.19 Finding on whether the work of every employee is reviewed by someone
higher in authority ...................................................................................................... 35
4.3.1.20 Findings on whether review ofrecords is done monthly by an independent
person ......................................................................................................................... 36
4.3 .1.21 Response on if the review of records is not done, forgery and squandering
of gove1nment funds would occur ............................................................................. 37
4.3.1.22 FINDINGS ON SUPERVISION ................................................................. 38
4.3.1.23 Findings on whether supervision is an important requirement.. .................. 38
4.3.1.24 Findings on whether employees are adequately supervised .................... 38
4.3 .1.25 Response on whether efficiency and proper utilization of resources is
achieved through supervision .................................................................................... 39
4.3.2. TO ESTABLISH THE LEVEL OF ACCOUNTABILITY IN DAR ES
SALAAM PROVINCE ................................................................................................. 40
4.3.2.0 Finding on production of documentary evidence ......................................... .40
4.3.2.1 Finding on whether for every transaction a receipt is issued or received ..... .40
4.3.2.2 Findings on whether financial documents are pre-numbered and in different
colors ............................................................................. 1 •••••••••••••••••••••••••••••••••••••••••••• 41
4.3.2.3 Finding on books of accounts ......................... '. ........................................... .41
4.3.2.4 Finding on whether the province maintains books of accounts .................... .42
4.3.2.5 Findings on whether books of accounts maintained .................................. .42
4.3.2.6 Findings on whether transactions in the books of accounts are usually
checked for arithinetic errors ..................................................................................... 43
4.3.2.7 Findings on financial repo1is ........................................................................ .43
4.3.2.8 Findings on whether the province prepares financial repo1is at the end of
every financial year .................................................................................................... 44
4.3.2.9 Findings on whether financial reports prepared include; balance sheet, cash flow
statements, income statements and trial balance .............................................................. .44
4 .. 3 .2.10 Findings on whether financial reports prepared are timely, accurate and
po1iray a true and fair view of the status and operations of the province ................. .45
4.3 .2.11 Findings on output/ Results ...................................................................... .46
4.3.2.12 Findings on whether items like class rooms, health units and roads
constructed verify the proper utilizations of funds ................................................... .46
4.3.2.13 Findings on whether physical items verify paper accountability ............... .47
4.3 .2.14 Findings on the level of accountability ....................................................... .4 7
4.3 .2.15 Findings on the results for the level of accountability in Dar es Salaam
province ..................................................................................................................... 4 7
4.3 .2.16 Findings on whether people were satisfied with the way funds are handled
in the province ........................................................................................................... 49
4.3.2.17 Findings on the reason why people are not satisfied with the way funds are
handled in the province .............................................................................................. 49
4.3 .2.18 Findings on reasons why people are satisfied with the way funds are
handled in the province .............................................................................................. 50
4.3.2.19 Ways in which the sub-county can do to improve fund management.. ..... 51
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ABSTRACT The researcher set out to find out why financial controls in revenue mobilization and
utilization have failed to ensure accountability in the public sector of Tanzania. The case
study is Dar es Salaam province. It establishes the relationship between financial controls
and accountability in public sector.
The objectives of the study were; to assess the financial controls in Dar es Salaam,
establishing the level of accountability and the relationship between financial controls
and accountability in revenue mobilization in Dar es Salaam.
The research was carried out at Dar es Salaam using correlation and descriptive research
design to easily and clearly establish the relationship between the variables. Data was
collected through stratified random sampling and purposive sampling methods using self
administered questionnaires and interviews to 40 respondents from Dar es Salaam. These
included; province chief, province accountant, district chairperson, auditor, councilors,
other employees of the province and local residents. The data was later analyzed using
Pearson's correlation coefficient where frequency tables, percentages, pie charts and bar
graphs were constrncted.
From the findings; the researcher found out that there exist financial controls in Dar es
Salaam province; these controls are being used haphazardly. Thus accountability is still
poor. The researcher also found out that there exist a strong relationship between
financial controls and accountability with correlation coefficient of 0.9466.
The study concluded with recommendations towards strengthening the existing financial
controls in order to improve the accountability level. These among others included
employing qualified staff, sensitizing the masses on the sub-county activities, putting in
place the planning committee and emphasizing external auditing.
Finally the study suggested some areas for further research, which included; the cost of
financial controls in contrast to benefits, political interference in the province financial
activities, and effects of financial controls on embezzlement and mismanagement of the
government foundation Xl
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