The following features are essential; • Uses the double entry principle to record transactions. • Normally, uses cash basis of accounting, where necessary, modified accrual or modified cash basis may be adopted. • Non-current assets are written off in the year of purchase, however NCA register is kept. • Stocks are normally written off in the year of purchase.
SOURCES OF REVENUE Generally categorized as; • Locally Generated Revenue • Central Government Transfers Locally Generated Revenue (LGR); the 1992 Constitution designates DAs as authority and empowers them to levy and collect local taxes. LGR comes from; Rates, lands, fees, licenses, trading services
SOURCES OF REVENUE (cont) Central Government Transfers; these are revenues transferred to the DAs by the central government. They include Ceded Revenue; revenues which were previously collected by the central government through the GRA (IRS) but which the DAs are allowed to collect in pursuit of decentralization. E.g.. advertisement tax, casino revenue, entertainment duty. Recurrent Expenditure Transfers; salaries, other remunerations, operational and administrative expenses including staff pensions of the DAs that the central government bears full responsibility. DACF; funds allocated annually by Parliament to the DAs Other financing arrangements like transfers of grant and loans.
GROUPINGS OF REVENUES. RATES. 1. Basic rate 2. Property rates 3. Special rates 4. Rates on government properties 5. funeral rates
FEES AND FINES 1. Market tolls 2. Slaughter house 3. Court fines 4. Lorry park 5. Marriage /divorce 6. Sanitation fees
RENTS. 1. Market stalls 2. Bungalow/ quarters INVESTMENT INCOME 1. Income from shares and bonds 2. Business income.
LAND REVENUE 1. Stool land revenue 2. Plot/building permit 3. Signing of building plans 4. royalties
LICENCES 1. Herbalist 2. Hawkers 3. Chop bar/restaurants 4. Water pump 5. Chain saw operators 6. Stores 7. Taxi/trotro/buses 8. Hotels
9. Kiosks 10.Photographers 11. Financial institutions 12.Truck pushers 13. Corn mill
GRANTS. 1. Common fund 2. Central government salaries 3. MP’s common fund MISCELLANEOUS Unspecified receipts.
Ways by which locally generated revenue of local governments can be improved.
- Spring '20
- Dr. ASRAVOR