The impact of own source revenue collection in local government authorities’

The impact of own source revenue collection in local government authorities’ .The case of Matobo Rural District Council.

1.0 Introduction

Revenue collection is very important for the survival of any organizations in any sector. To meet budgetary obligation, all companies must focus on revenue collection (Controller and Auditor General, 2012). Successful revenue collection translate to the overall profitability, efficiency and gives the organization ability to meet its planned operations (Kumshe, 2013). Interference from civil leaders seriously hampers operations in revenue collection in their wards. Focusing on governments, when they fail to adequately collect requisite revenues, the public will negatively be affected by being denied vital services. Moreover, the National Government will be overburdened by the financial demand from the local governments.

Revenue is income that a government receives from its normal business activities, usually from the sale of goods and services to customers. The sources of revenue for municipal government vary across countries but generally includes taxes, users fees, fines, licenses/permits, rent, investments, cess and miscellaneous. It may also include borrowings, changes in developers and public private partnerships (Kumshe, 2013).It is therefore mandatory that revenue collection be considered as a priority in any government sector.

1.1 Background
Local government authorities have two main sources of income, the own source revenue and grants from central government. Own source revenue is generated by the local government under its region of jurisdiction. The central government also provides grants to local authorities which are reflected on the national budget. A widely found characteristic of local ‘own’ revenue systems in Africa is the huge number of revenue instruments in use by Local Authorities (Craster ;O’Toole 1995; Fjeldstad & Semboja, 2000).These instruments are revenue from market fees, fees collected from motor parks, street hawking fees, shop fees and other miscellaneous fees including proceeds from fines, bicycle fees, kiosk fees, hawking permit, butchers license fees, general contractors registration fees, cattle dealers fees, corn grinding machine license fees, entertainment/ drumming permit, slaughter house fees, tender fees, approval of building plan fees, community tax and livestock tax (Kumshe, 2013). Even though there is so much revenue that need collection local Authorities, find it difficult to maximize effective revenue collection using available instruments.

Lee (1965) examined the tax system as one of revenue collection strategies in local authorities in Africa with special reference to Tanzania. He pointed out various sources of revenue problems, which are poor administrative capacity to assess the revenue base, poor administrative capacity to enforce the taxes, explicit and intentional tax evasion and resistance from taxpayers. He further highlights corruption, including embezzlement of revenues, external pressure on the local finance department to provide optimistic projections and political pressure on the local tax administration to relax on revenue collection. Lee (1965) proposed that in order to increase tax yields; every district council should impose a graduated local tax .He further suggested that produce should be absorbed by graduated local tax or should be consistent and not competitive with the graduated local tax. The Central Government should increase its activities of guidance by holding conferences with the Chief executive officers of local government organizations also by involving the Minister of local Government, and supervision with respect to administration of the local rate.

Maro (1990) highlighted a number of problems which are historical that contribute to loss of revenue in Local Government Authorities globally. He stated that in Tanzania these problems are aggravated by inexperienced staff (those that are newly recruited employees and support staff) and lack of supervision where the persons responsible for revenue collection are left to make their own decisions and management of revenue .He then suggested that in order to improve revenue collection Local Governments need to improve the mechanism of collection of revenue through close supervision ,improved recording of the business license owners and provision of a reliable transport to inspectors. Proper revenue collection in Local government authorities may have many benefits including enhancing its ability to meet it main objective of providing public services.

Fjeldstad (2003) stated that one major administrative problem today for many councils is their inability to collect fully the revenues due to them as highlighted by a deficit between reported revenue and projected revenue and an increase in local government debtors /receivables. In most councils there are huge gaps between reported and projected revenue mostly contributed by poor assessment of the revenue base, inability to enforce taxes, tax evasion and resistance from taxpayers, corruption, and political pressure on the local tax administration (Kumshe, 2013). In light of the above, the research is not exhaustive of factors affecting revenue collection and limitations of instruments used by Local Governments. This research in particular will focus on the impact of own source revenue collection in Local Government authorities with special reference to Matobo District Council.

1.3 The statement of the problem
Demands for generating financial sustainability in public administration is a factor of particular significance in local government finances. The financial and economic crisis has spurred none of the Local Government Authorities resulting in the need to seek ways that could be implemented to address factors affecting own source revenue collection. If such ways are identified they could then be infused in other areas as a way of minimizing the problems associated with revenue collection. This study will mainly focus on the impact of revenue collection in Local Government Authorities, with particular interest of Matobo district council.

1.4 The main objective of the study is;
To identify the impact of own source revenue collection in local governments

1.4.1 Specific objectives are to;
• Determine ways that can be employed to effectively collect revenue in local authorities
• Identify instruments for revenue collection used by Local Government Authorities
• Find out the level of understanding the tax collector has on procedures and guidelines for revenue collection process used by local government authorities
• Assess the limitations associated with revenue collection systems used by Local Government Authorities

1.5 Rationale of the study
It is hoped that this study shall
1.5.1 Provide the researcher with an insight on the overall structure, procedures and provisions that guide local government revenue collection systems and its context.
1.5.2 Save as a reference research document for Lupane State University to other students pursuing similar researches or other researches that may use similar information.
1.5.3 Help to improve revenue collection strategies for local government authorities set benchmark in revenue collection for Local Government Authorities and other similar organizations.
1.5.4 Add new body of knowledge to the already existing literature on revenue collection procedures

1.6 Scope of the study
The study will focus on Matobo rural district council revenue collection department and its area of jurisdiction.

1.7 Limitations of the Study
This study will be limited to revenue collection instruments, strategies and factors affecting own source revenue collection. Any other aspect outside this specification shall not be covered by this study.

1.8 Definition of terms
Local government authority is an agency organized to provide and supervise administrative, fiscal and other services to the people who reside within its territorial boundaries
Own source revenue refers to the amount received by a country or government from different sources. The country revenue is gained according to the type of revenue source they are engaged on, there are several sources of the government revenue; these are fees, fines, state property, prices, grants and tax as the main source of income (Drummend, 1984).
Local government tax is taxation based on relative value of property, levied to fund local councils services (Collins, 2014)
Projected revenue is the estimated money a company will generate during a specific period through history analysis
Revenue base is a major source and regular part of total revenue

1.9 Acronyms
LGA – Local Government Authority
IMF –International Monetary Fund
MRDC – Matobo Rural District Council
SPSS – Statistical Package for Social Sciences
CEO – Chief Executive Officer

1.10 Chapter Summary
This chapter introduced the impact of own source revenue collection in local government authorities, gave a background of the study and gave a problem statement where the research highlighted that there is increasing need to seek ways that can be implemented to address factors affecting own source revenue collection in Local Government Authorities, then followed the main objectives of the study which is to identify the impact of own source revenue collection in LGAs then ration of the study ,scope ,limitations ,definition of terms and acronyms. The next chapter reviews related literature .

2.0 Introduction
This section presents both the Theoretical review and Empirical review of the subject matter on local government authority revenue collection. With the theoretical literature review the study will focus on the theories and other important concepts explaining revenue collection. The empirical part will discusses findings from various works by other research done on revenue collection in LGAs, more so the conceptual framework and research model of study are presented ( The Pennsylvania State University, 2017).

The failure of Local Government Authorities in the provision of essential basic services has been attributed to poor revenue collections (Mbuta, 1999).This section will therefore focus on the evidence and understanding of LGA revenue collection and its impacts on LGAs, since there is an increasing demand for generating financial stability in the public sector administration. One major administrative problem today for many councils is their inability to collect fully the revenues due to them. In most councils there are huge gaps between reported and projected revenues, there is a material negative variance between the budgeted or projected revenue as compared to actual revenue collected. The literature reviewed will the researcher to understand and achieve the objectives of the study discussed in the previous chapter.

2.1 Theoretical framework
The main theoretical approach to be adopted in this particular research is the ‘economic deterrence’ approach developed by Allingham and Sandmo in 1972. The economic deterrence model has been commonly used to examine tax evasion and compliance from a theoretical perspective. It is unlike other theories that are social and psychological theories, which mainly focuses on psychological variables which include moral values and the perception of fairness of the tax system and the tax authorities. They focus on the factors that affect taxpayers in compliance with payment of tax which makes them irrelevant to this study as this study focuses on revenue collection by local Government authorities not factors that affect taxpayers in meeting their tax obligations. The economic deterrence approach therefore suits this study as it will enable the researcher to focus on the impact of own source revenue collections in Local Government Authorities and determine ways that can be employed effectively to maximize revenue collection in LGA
Devos (2014) said, factors that have been examined in the economic deterrence model include:
• Complexity of the tax system
• Level of revenue information services, these are formed by the extent of information technology, management and accounting accuracy.
• Withholding and information reporting this being the analysis of available information using reporting instruments to close the tax gap.
• Preparer responsibilities and penalties. This being implementation of charges for miss conduct charged to the tax payers to encourage payments.
• Probability of receiving audit coverage. All forms of revenue aspects are audited the main aim is to find out if the areas of audit have coverage.
• Progressive and actual level of tax rates, and
• Penalties for non-compliance. This takes an in-depth review on the penalty appropriateness and effectiveness

The study will dwell much on this theory as it is in line with the objectives of the study. The study objectives evolve around the tax system and its components which are revenue collection instruments, factors of revenue collection and the level of understanding of tax system by revenue collection officials on guidelines for revenue collection process used by LGAs.

2.2 Policies and Regulation
LGA revenue collection policies include administration of revenue collection office, the collection of taxes and other revenue, the deposit of receipts, the enforcement of tax and revenue laws and evaluation of the revenue collection function (Allan, 1993). Through the implementation of the policies it enables the LGA to identify weak areas that need to be addressed and contributing collectively to effective revenue collection.

MRDC policy stipulates that to accept revenue and issue license to a business entity the business must have a tax clearance certificate and have fully paid up its dues and current land levy for the year, making it a standing policy and a procedure that before anyone is issued any license he/she must be checked for any outstanding payments. For example the LGA can have the policy that for anyone who wishes to purchase a housing stand for the council must pay 60% deposit of that stand value and the remainder should be arranged to be paid on payment plan options not exceeding 2 years period, this will be the governing policy for stand payments. This enables the personnel collecting revenue to only accept payment prescribed by the policy and it gives them edge on the follow up of payments due to them.

There are many factors that policymakers need to take into account when setting local revenue policy including revenue yield, economic efficiency, administrative effectiveness and the equity implications of various local tax options. (Sarzin, 2007)

2.3 Revenue collection instruments
Revenue collection instruments used by the LGAs are mainly statutory as they are given power by the government to do so. A council shall have power and authority to fix and levy rates in its area of authority and it is mandatory for person(s) to pay rates charged by the council governing the area ( Parliament of Zimbabwe, 2002). The LGA charges levies and rates in terms of fees, penalties and licenses.
These broadly are market fees, shop fees and other miscellaneous fees including proceeds from fines, bicycle fees, kiosk fees, fees collected from motor parks, street hawking fees, hawking permit, butchers license fees, general contractors registration fees, approval of building plan fees, community tax and livestock tax (Kumshe, 2013).

2.4 Cost effective ways of revenue collection
In today’s context, it is considered that an effective and efficient revenue administration is one that will ensure compliance through a balance of reliable services and education, and targeted audit and enforcement activities. The revenue administration will maximize the collection of taxes according to the law, at the lowest acceptable cost to the government (administrative cost) and to the taxpayer (compliance cost), and will be adequately resourced, effectively managed, and independent from political processes (Crandall and Bodin, 2005). In relation to this study this section will allow the researcher to meet the objective of determining the ways that can be employed to effectively collect revenue.

Kumshe (2013), pointed that since the local government councils are characterized by an inability to cost effectively collect revenue due to them ,the contributions to ineffectiveness in companies is the failure to embrace the following points as guidelines .He further proposed that the following are the cost effective methods of revenue collection as follows ;
• Make assessment of taxpayers and ascertain number of taxpayers for that year and send reminder notice to tax payers 2-3 weeks before taxes are due for collection. This will enlighten the tax payers about their dues to the LGA and this will mean that the taxpayers know fully what they are supposed to pay making it easy for the council to collect the amounts due.
• Designate revenue collection points for convenience. This gives information to tax payers and direction to where tax is to be collected and where to pay their taxes therefore through knowledge of these points it enables vast revenue collection.
• In addition, losses through corruption and tax evasion need to be reduced by applying stiffer penalties to corrupt officials and tax evaders, for example jail sentences on corrupt officials and 100% penalties on late payments. Through implementations of these it enables LGA to reduce corruption and tax evasion and promote revenue collection.
• Contract out collections to a private collection agency (Sobotka, n.d.). Contracting revenue collection to private collectors increases revenues from existing sources and also reduces cost as the LGA will not be having a direct link to the revenue collection process.
• E-collection: this is a situation where the local governments will device a means of allowing tax payers to pay their taxes online. Here tax payers will be registered and connected using the internet with the revenue office/collector such that tax payers can be reminded or compelled to pay their taxes online as at when due and automatically identify defaulters for further action, this would make the job of revenue collection lot easier and cheaper (Sobotka, n.d.) .
• Finally, principle of taxation states that taxes should not be imposed if their cost of collection is excessive.

Enhancing revenue mobilization has frequently been the focus of revenue administrations. Diagnostic work has mainly focused on measuring revenue leakages. Both the World Bank and the IMF frequently use this approach (Keen, 2003). However, when these strategies are ignored they many lead to low revenue collection consequently causing variation between projected and reported revenue.

2.5 Causes of variations between projected revenue and reported revenue
Fjeldstad et al (2003) highlighted that the causes of variations between projected and reported revenue are mainly contributed by:
(1) Poor administrative capacity to assess the revenue base where there is lack of policies enabling vast revenue collection, to address this problem a clear and more up-to-date policies made aware to the relevant people involved in the revenue collection as failure to address this problem will mean a low revenue collection will be experienced .
(2) Poor administrative capacity to enforce the taxes contributed by lack of policies and supporting documents that help in enforcement of taxes, making available supporting documents will increase tax collector confidence in revenue collection thereby translating to favorable revenue collection levels.

(3) Explicit and intentional tax evasion and resistance from taxpayers these are contributed by window dressing statements and other tax payers trade informally to evade tax, the authority may qualify statements prepared by reputable professionals or professional bodies. If resources permit the LGA should engage professional bodies so as to prepare the statements and assess statements that are window dressed.
(4) Corruption, including embezzlement of revenues, revenue collectors and clerks may find a way to manipulate the system therefore giving them opportunity not to report all the funds collected, an updated more secure system can be employed to mitigate the problem.
(5) External pressure on the local finance department to provide optimistic projections these may be done by stakeholders with significant influence on the LGA running for example the Ministry of LGA.

2.6 Impact of failure to collect revenue in LGA in other regions

Local government in less developed countries like Tanzania and Zimbabwe faces even greater challenges when it comes to raising revenue (Dirie, 2005). The possible factors affecting revenue collection in such local government may be that the local government revenue base is often weak, especially when compared to the revenue base of the central government. They have few own source of revenue, lack incentive to generate their own revenues and do not use the existing revenue potential from these sources. For example property taxes are difficult to administer and collect, they often have little or no control over the tax rates they can levy. Most local authorities have not computerized their revenue collection function, thus affecting their revenue strength, organizational structure does not have a central department which coordinates the issue of revenue functions.

Studies in Tanzania shown that Local Government Authorities are not aggressive enough in collecting revenues due under their jurisdiction and on the other hand they are not soliciting other avenues of revenue collections which might boost their financial base and increase the Council’s solvency and liquidity (Mlangwa, 2011) .Literature has shown that there are still gaps between statutory and the effective revenue due to them and they face many challenges while trying to implement the strategies to enhance revenue. The findings of this study done in Tanzania revealed that general factors that affect the own source revenue collection in LGAs are corruption, tax evasion, intermediaries, concealment of own source revenue and poor revenue supervision. Other highlighted factors that affect own source revenues are poverty and unemployment, poor infrastructure and too much dependency on central government transfers.

Also own sources revenue collection in the specific circumstances of Newala District Council in Tanzania has been identified which are produce cess, service levy, other income, tender application fee, market fee, dividend, hotel levy, disposal of assets, bus stand fee, house rent, fines and penalties, radio fee, survey fee, car rental charges, license fee and land rent. These where discussed prior in the study concluding that they still are the major own source revenue collection instruments.

The study also gave some solutions on how to overcome the factors affecting revenue collection .Oversight and watchdog mechanisms must be put in place to overcome corruption for example a national anti-corruption hotline, verification of applications, Criminal justice responses like legal protection for whistle blowers, tougher legislation enabling more prosecutions and harsher sentences for corruption. Educate tax payers through seminars, radio and television programs, outreach to trading centers, operating help desks and customer service (AWITTA, 2010). Expand revenue base the inability to identify and collect all taxes could mean that the tax base for LGAs is narrow which forces them to impose higher rates/charges to meet their revenue needs than would be the case if all sources were identified and taxed.

This study is focusing on the gaps that exist between LGA’s budgets and revenue collection and examine the strategies being taken by LGA’s to enhance revenue collection and the challenges faced by Local Government Authorities in implementing new measures to be taken to enhance revenue. It is an ideal standard to see that any revenue collection system should have good policies and regulations as discussed before. Without good policies and regulations the targets cannot be reached and the system will not be effective.

2.7 Strategies that LGA can use to enhance revenue collection
Strategies pursued by firms to enhance their efficiency will depend on their objectives which can differ from one form to another. However all firms, regardless of the structure of the market in which they operate, are assumed to have as their sole objective the maximization of profit and revenue (Porter, 1998). For organizations and LGAs dealing with collection of state revenue such as MRDC alternative strategies to revenue maximization range from introducing initiatives such as quarterly and annual revenue targets, performance appraisal measures, public education through taxpayer education forums, provision of information services, and the introduction of management information systems department.

2.8 Chapter summary
This chapter introduced literature review, looked at theoretical framework where economic deterrence theory was discussed ,policies and regulations used by the LGA ,revenue collection instruments ,cost effective ways of revenue collection , causes of variation between projected revenue and reported revenue ,the impact of failure to collect revenue in LGA in other regions ,and strategies that LGA can use to enhance revenue collection. The next chapter will discuss methodology that shall be used in data collection, presentation and analysis.

3.0 Introduction
This research will adopt a positivist research paradigm. Positivists believe that there is a single reality, which can be measured and known, and therefore they are more likely to use quantitative methods to measure and this reality (Patel, 2015). The study will neglect the Constructivists research paradigm as these believe that there is no single reality or truth, and therefore reality needs to be interpreted, and therefore they are more likely to use qualitative methods to get those multiple realities. Given the nature of the data to be studied and time frame for the study it will be ideal to use positivist than constructivist since qualitative methods take relatively more time as the study of behavior needs time and the nature of data to be collected is quantitative data .

3.1 Research approach
Basing on the positivist research paradigm, Quantitative Research Approach will be used for this particular research as this will enable the researcher to collect the intended data in the most suitable form of it being quantitative in nature. This method being advantageous over qualitative approach because it does not need too much time to get the data but the qualitative approach need the researcher to be on the ground observing the behavior of elements under study. Quantitative research most often uses deductive logic, in which researchers start with hypotheses and then collect data which can be used to determine whether empirical evidence to support that hypothesis exists. (Statistics Solutions, 2017)

Quantitative data can be collected in a variety of ways of which questionnaires either interviewer or self-administered shall be used to collect quantitative data by asking respondents views. Direct observation of quantitative data which has been gathered for another purpose is also common under this approach (Statistics Solutions, 2017).

Secondary data analysis will be also be used for data collection in this research .secondary data analysis is a source where a researcher analyzes data that were originally collected by another research team. Kothari (2004) added, Often these are large-scale, nationally-representative data sets that require extensive resources to collect; such data sets are made available by many organizations to allow many researchers to conduct independent research using high quality data.

3.2 Research design

Kothari (2004) defines research design as a plan for conducting a study with total control over factors that may have an effect on the validity of the findings. The research will be a case study of Matobo district council. The study is about a common phenomenal within all LGAs therefore a case study allows the researcher to collect rich quantitate information and allows the researcher to go in-depth on the elements being studied.

Unlike other research designs, case study research is less costly and less time-consuming. This design is more suitable when exposure data is expensive or hard to obtain (LaMorte, 2016) , since the study is about a prone nature of LGAs it will be expensive and time consuming to focus on all the local government authorities in Zimbabwe.

3.3 Population
Population size for this research will cover all the MRDC staff that is all senior and junior staff as well tax payers under the council jurisdiction giving a total population of 100 people consisting of 8 departmental heads, 6 departmental vices, 12 subordinates, 7 interns, 7 farm workers and 60 tax payers. A complete enumeration of all items in the ‘population’ is known as a census inquiry. It can be presumed that in such an inquiry, when all items are covered, no element of chance is left and highest accuracy is obtained (Kothari, 2004) . In this research council officials and council revenue collectors constitute the unit of analysis.

3.4 Sampling technique
For the purpose of this research ,multiple sampling techniques will be adopted ,the researcher will sample firstly focus on the council employees .firstly ,the researcher will use Stratified sampling is where you divide the population into two or more relevant and significant strata based on one or a number of attributes mainly done in this study for representation (Saunders, et al., 2007) .The basis of creating strata’s will be the level of management ,leading to 3 strata’s; strata 1 top management department heads , strata 2 deputy department heads ,strata 3 low level employees .

Following each strata appropriate sampling technique will be used. Strata 1 complete enumeration of all population under this strata will form respondents and consist of 8 respondents where a father 3 will be purposefully selected. Strata 2 will consist of 6 respondents and a censers enquiry will be used under this strata because of the size of the strata variables and most members under this supervise revenue collection. Strata 3 consists of 26 respondents and a purposive sample will be taken from this strata specifically accounting department and other departments involved in revenue collection totaling 10 respondents . Purposive or judgmental sampling enables you to use your judgement to select cases that will best enable you to answer your research question(s) and to meet your objectives (Saunders, et al., 2007).The sample size of the respondents and justification of this sample is that it allows the researcher to collect information from personnel in departments involved in aspects of revenue collection.

The tax payer sample will be selected randomly across a 5 day period where 5 respondents will be selected everyday on time basis where first 5 tax payers from 1000 to 1300 will be selected everyday giving a total of 25 respondents from the tax payer sample.

3.5 Data collection tools.

The data collection will be based on interviews and questionnaires both structured and unstructured questions to obtain primary data as a lot of information can be captured in short period of time. Documents shall also be reviewed in order to triangulate data collected for authenticity.

3.5.1 Questionnaires
Structured questionnaires will enable the researcher gain an understanding on issues that that can defer from person to person or department to department and allows for standardization of questions across respondents. This particular structured questionnaire has a disadvantage of limiting the respondent degree of freedom thereby enabling researcher to collect the relevant information that is needed (Ackroyd, 1981). In order to overcome this limitation the research questionnaires will also embrace within unstructured questions to capture data that will be not represented by structured questionnaire. The questionnaire will be used for strata 2 and strata 3 because of the numbers and they do not need explanation of issues covered in the questionnaire .

3.5.2 Interviews
Primary data will be collected using structured and unstructured interview to the employees of District Council and other stakeholders.
The structured face to face interview will enable the interviewer to note body language and expressions in comparison with responses to assess whether the responses do not contradict and note when the respondent is lying.
The unstructured and face to face interview will allow the researcher to probe on the issues that seem not to be clear and for unstructured questions they allow the respondent to give further detail therefore giving other information that allow for further understanding of the topic under research (Popper, 1959).
Strata 1 and the tax payer sample will be addressed by the means of interviews because they are of a lower number and tax payers may need clarification on the issues covered in the questions thereby making it ideal to use.

3.5.3 Documents
Documentary sources of the district such as financial statements, strategic action and minutes. This form of data collection is the cheapest and it’s not time consuming (Kaira, n.d.). The documentation chosen above are used for reporting, this will enable the researcher to capture information communicated through these and give evidence of communication which may show policies and revenue reports.

3.6 Validity
Validity means that a research instrument measures that which it is supposed to measure. The main concern with validity is whether or not the findings from a research are truly about what they appear to be about (Saunders, 2009). To ensure validity for this study instruments the researcher will pre-test the instruments through the utilisation on a pilot study.

3.7 Reliability
Reliability refers to the extent to which data collection techniques will yield consistent findings, similar observation, would be made or conclusions reached by other researchers or there is transparency in how sense was made from the raw data (Kothari, 2004). This will be ensured by having an interviewer-administered questionnaire to guide the interview rather. This will ensure that respondents answer the same questions and in the same order with control by the researcher where potential misunderstanding of the questions are detected and will rectified during the interview process. In addition, a pilot study will be used also to ensure reliability of instruments.

3.8 Pilot Study
A pilot study is a research study conducted before the intended study. Pilot studies are usually executed as planned for the intended study, but on a smaller scale (Collins, 2014). Although a pilot study cannot eliminate all systematic errors or unexpected problems, it reduces the likelihood of making a Type I or Type II error. Both types of errors make the main study a waste of effort, time, and money.

This will be carried out in order to test the research process as the study tests how possible the design is in reality, to also test an intervention strategy and identify the components that are most important to the facilitation of the intervention (Payne, n.d.). Testing administration of an instrument and to develop or test the efficacy of research instruments and protocols. Are there confusing or misleading questions will be the purpose of the pilot study.
Pilot study will be carried out at Esigodini District Council because of the similarities to the MRDC in terms of size of the organization and nature of the organization as well as the way they operate.

3.9 Data collection procedures
The researcher shall seek an introductory letter from the University to introduce him to the organization (MRDC). The researcher will then seek permission to carry out the study and data collection from MRDC treasurer and the MRDC CEO in the form of formal letter.

3.10 Data presentation
The data collected will be then presented in form of tables, pie charts, bar graphs .The main reason why these will be utilized is that they clearly show related information in one platform and they show frequency at the same time as well as they allow for comparability (In, 2017).

3.11 Method of Analysis
The obtained data will be analyzed though Statistic Package for Social Sciences (SPSS). Data under SPSS can be analyzed through the use of descriptive statistics including frequency distribution tables, correlations, linear regression , pie charts and bar charts as these will show clearly where there are comparisons and will present data in a more clear way (IBM, 2015). This data analysis software is more advantageous as it is easy to use and eliminates human error in analysis

3.12 ethical considerations
Ethical considerations in research are critical (Mazur, 2007). Ethics are the norms or standards for conduct that distinguish between right and wrong. They help the researcher determine the difference between acceptable and unacceptable behaviors when collecting and analyzing data. The ethical standards considered will help against the fabrication or falsifying of data and therefore, promote the pursuit of knowledge and truth which is the primary goal of research. These address issues to do with honesty, objectivity, respect for intellectual property, confidentiality and non-discrimination. The information collected will be solely and purely for academic purposes and will be treated in the strictest confidentiality possible and borrowed ideas will be referenced.