An analysis of the sources and use of financial resources of local authorities: The case of Rehoboth Town Council
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Date
2020
Authors
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Publisher
University of Namibia
Abstract
This study assessed the factors affecting the financial performance of Rehoboth Town
Council. Odero (2017) stated that financial performance in local government in the
country remains poor and a radical approach to financial management was a
necessity. The study assessed the factors affecting financial performance from
institutional, human capital and external environment perspectives and its effects of
financial performance of the town council. The study adopted a case study research
design and data was collected through self-completing questionnaires. These were
administered to 1 05 Rehoboth town council stakeholders. The findings were
presented in graphs, charts and frequency tables. The study concluded that the main
factors affecting Rehoboth Town Council's financial perfonnance included
unavailability of reliable sources of funds, liquidity management, inflation rates,
employee capacity and management practices. Though there were other factors
affecting fmancial performance, the participants highly rated unavailability of reliable
sources of funds, liquidity management, inflation rates, employee capacity and
management practices. They indicated that there is a combination of institutional,
human capital and external environment factors. The study recommended a number of
factors to cushion poor financial performance in local authority among the debt
management techniques, management of the cash conversion cycle and engagements
for creation of sustainable income, investments in modem accounting management
systems, extensive budget consultations and training and development for all the staff
members for understanding of the town council financial management approaches.
However the study only focused on the assessing the factors from a holistic approach,
leaving room for testing of the magnitude of the effects of individual factors.
Description
A thesis submitted in partial fulfilment of the requirements for the degree of Master of Business Administration Finance
Keywords
Financial performance, Rehoboth Town Counci, Local government, University of Namibia, Namibia