The Relationship Between Internal Control Systems and Revenue Collection Efficiency in Water Services Providers in the Athi Water Services Board

Abstract

Water services providers have to put in place appropriate internal controls to ensure that revenue collection and billing are done promptly to enhance their revenue collection efficiency. It was upon this that the researcher sought to examine the relationship between internal controls and revenue collection efficiency in water services providers in Athi Water Services Board. The study had the following objective; to examine the relationship, if any, between internal control systems and collection efficiency in water services providers under the Athi Water Services Board. The study design was cross sectional and quantitative data was used. The sample size constituting of 12 respondents from water services providers in Athi water services board. Questionnaires coded were constructed on the computer using Statistical Package for Social Science for analysis. Statistical Package for Social Science was used to analyze the relationship between the two variables. The data collected was then analyzed and findings have revealed that the five components of control environment, risk assessment, control activities, information and communication and monitoring must be available for internal controls to work. The study therefore concludes that internal controls do function although with hiccups and that there is effect between internal controls and revenue collection in water services providers. From the findings, there was variation of revenue collection efficiency and internal control components. From the findings on the correlation analysis the study revealed that there was a strong relationship between control environment, control activities, monitoring, internal audit, and information technology and revenue collection efficiency