Impact of Accounting Information System on Internally Generated Revenue in Balanga Local Government Area
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Background of the Study
Internally Generated Revenue (IGR) is crucial for the financial sustainability of local governments, including Balanga Local Government Area (LGA). However, many local governments still face challenges in effectively managing and increasing their IGR due to inefficient accounting practices. The adoption of an Accounting Information System (AIS) can enhance revenue collection, monitoring, and reporting, thus improving IGR management. This study will assess the impact of AIS on IGR in Balanga LGA.
Statement of the Problem
Balanga LGA faces challenges in improving its IGR due to poor financial management practices and manual revenue tracking systems. The introduction of AIS could potentially streamline IGR processes, enhance efficiency, and reduce revenue leakage. However, the extent of its impact has yet to be explored.
Aim and Objectives of the Study
Aim: To assess the impact of Accounting Information System on Internally Generated Revenue in Balanga Local Government Area.
Objectives:
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To evaluate the current processes for IGR management in Balanga LGA.
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To examine how AIS has been implemented to manage and monitor IGR.
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To determine the effect of AIS implementation on the efficiency of IGR generation in Balanga LGA.
Research Questions
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How is Internally Generated Revenue currently managed in Balanga LGA?
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To what extent has AIS been implemented in IGR management in Balanga LGA?
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What is the impact of AIS on the efficiency of IGR generation in Balanga LGA?
Research Hypothesis
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H₀: The implementation of AIS has no significant effect on the efficiency of Internally Generated Revenue management in Balanga LGA.
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H₀: There is no significant relationship between the adoption of AIS and the increase in Internally Generated Revenue in Balanga LGA.
Significance of the Study
This study will provide insights into how AIS can improve IGR management, enabling Balanga LGA to increase its financial resources for development projects. It will also highlight best practices and areas for improvement in IGR collection.
Scope and Limitation of the Study
The study will focus on Balanga LGA’s IGR management processes and how AIS is used to track, manage, and report on IGR. Limitations may include access to financial data and challenges in obtaining cooperation from relevant stakeholders.
Definition of Terms
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Internally Generated Revenue (IGR): Revenue generated by local governments from their own resources, such as taxes, fines, and fees.
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Accounting Information System (AIS): A system used to collect, process, and report financial data for decision-making and financial management purposes.
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