Analysis of revenue collection efficiency at Makerere University

Abstract

The purpose of the study was to analyze revenue collection efficiency at Makerere University. Using the objectives - to determine the factors for revenue collection efficiency - to determine the challenges hindering revenue collection and to suggest means of facilitating revenue collection efficiency at Makerere University. These objectives were reinforced by resource dependency theory (RDT) and neoliberalism theory. The study used case study design that involved the use of qualitative and quantitative approaches while revenue collection efficiency. The study used Makerere University because it was among the institutions that are facing challenges in revenue collection over time. The study used a sample of 140 staff who were selected randomly from a population of 220 University staff who including members from managerial positions of the university, the executive management and departmental heads, and the administrators of finances in the finance department. Quantitative data was collected using self-administered questionnaires where respondents were asked to give their opinions basing on Likert scale. Qualitative data was collected using interview guide. From the study, the major factors for revenue collection efficiency at Makerere University were the availability of enough well-motivated Staff to collect these Revenues and the Availability of Systems and Technologies to collect Revenue. The major the challenges hindering revenue collection at Makerere University include, the Staff collecting Revenue are not well paid and motivated, there aren’t systems to adequate systems to collect all the Revenue streams of the University, the available systems are not able to collect and report all Revenues, the reliance on tuition as a single stream of revenue vs multiple streams like research and patenting. The study suggested that the major ways to facilitate revenue collection efficiency at Makerere University include, implementing new course offerings, attracting international students, expanding infrastructural investments, international collaborations and improving staff qualifications and motivation. The study therefore recommended that management focus its attention on strategies that will enhance revenue for the university. University management have to utilize their segments to derive more strategies to generate income for the university. Management must ensure they do not neglect any other revenue streams and other university functions by focusing on only one stream. The university must utilize the knowledge and skills of its experienced staff to be drivers of revenue sourcing. Improvement is highly possible in attracting additional funding from third-stream income using the already existing university resources such as university segments, university resources, staff knowledge and staff experience. The adoption of these recommendations must be balanced with the ordinary business of the university.