Factor Affecting Revenue Collection

Question: Discuss about the Factor Affecting Revenue Collection In Learning Institutions. Answer: Introduction The demand for knowledge and experience are essential elements of a countrys economic advancement are financial stability of its citizens since learning institutions produce skilful individuals who enable a more vibrant public sector and better investment opportunities. Quality education based on merit and efficient learning institutions are important towards achieving economic growth. Learning institutions have therefore been challenged to facilitate able and quality individual whereas in return they gain revenue. Revenue is the income realized from sale of goods and services before accounting for expenses. Several learning institutions have invested in quality education whereby they offer the students with high-level education and the required skills. Most middle-level colleges offer full-time programmes in addition to part-time and crush programmes as well as Distance Learning classes. This is to keep up with the ever changing dynamics in the sector. Despite the efforts taken by middle-level colleges to maximize revenue collection, they seem not to do enough to ensure that all the revenue due to the institution is collected in time. This gap has therefore facilitated the need for the current study to determine what factors contribute to effective collection of revenue and how address those challenges. The aim of the current study therefore, is to establish the factors affecting revenue collection in middle-level institutions and determine ways of addressing the challenges faced. Aim of the Study The main objective will be to establish the factors affecting revenue collection in learning institutions. Research Questions The questions that the researcher will seek to answer will be; i) Does the nature of clients affect revenue collection in middle level colleges? ii) To what extent does management polices affect the revenue collection in middle level colleges? iii) To what extent does a quality assurance procedure affect the revenue collection middle level colleges? iii) To determine whether student population is influencing the revenue to be collected in middle level colleges? Research Hypotheses The researcher shall formulate the following research hypotheses based on the research questions; H0: The nature of clients has no effect on revenue collection in middle level colleges H0: There is no association between management polices and revenue collection in middle level colleges H0: There is no association between quality assurance procedures and revenue collection in middle level colleges H0: There is no association between student population and revenue collection in middle level colleges Related Literature The current unfavorable economic climate has left many parents and students of middle-level institutions struggling to pay for their tuition fees. In the past, students desired to borrow more and repayment of funds borrowed was not as challenging as it is today. The ability to repay the loans granted primarily depends on the students parents or guardian (Finnie Ross Schwartz, 1996). A study carried out in six countries in Asia and Africa noted that the division between the rich and poor, high cost of tuition fees are the main reasons for students not to attend school. The funding of education by the government is not only a necessity but also a requirement. Nevertheless, good management procedures should be followed (EFA global gender and education for all THE LEAP TO EQUALITY gender and education for all THE LEAP TO EQUALITY, 2003). According to Ngaba (2003), there is lack of expertise in certain areas of management of institutions funds and requires qualified workforce to manage the funds adequately. It is paramount for the school administration to know that management is beyond distributing funds but also perceive the institution as an investment to the government (Alomba, 2003). Quality has distinct definitions based on the procedures and or results. It is a weighty concept to comprehend and quality in higher education is even more mystifying. Quality in higher learning is thought to include an amalgamation of compliance, flexibility, and constant upgrade; it involves a combination of a variety of expectations from many stakeholders (Alomba, 2003). For instance, students may pay attention to facilities available on campus and perceived benefit of education pursued towards future employment. The professors may focus on the teaching process while management of the institutions may pay attention to the colleges achievements. Parents may access the achievement of their children while employers may consider the proficiency of the graduates (Ibid). Quality can therefore be viewed from many approaches. Previous researches on student demand have utilized analysis invented by Jackson, Leslie and Brinkman (1989) as a reference point where it examined various studies to determine what they referred to as a student price response coefficient (SPRC). SPRC is the differential in college attendance of student between 18- 24 years for each $ 100 additional increase in tuition fees. Moreover, Leslie and Brinkman studied the function of funds appeal according to three student decisions: 1) the choice to join college or not in terms of access; 2) which college to join (choice); and 3) whether to continue in the same institution or transfer credits to another (persistence). One of their major conclusions was that financial assistance especially grants had a positive correlation on both access and persistence and persuaded students to join institutions that are more expensive. Research Design and Methodology A survey study will be adopted for the current study. A survey is an endeavor to gather data from a population so as to determine the current status of that population according to one or more variables (Mugenda and Mugenda ,1999). The researcher finds a survey design appropriate for the current study since it will allow collection of views and opinions of various participants from different middle-level colleges Sampling Design and Procedures The researcher will use the census sampling technique from all the middle-level colleges in the area of study. All the financial controllers or revenue officers of the colleges will be included in the study up to a manageable sample size. Data Collection Tools and Methods The study will utilize structured questionnaires as the main data collection instrument that will have open and close-ended questionnaires. This data collection tool is preferred since it convenient, inexpensive and ensures that participants are at liberty to answer the questions without pressure. The researcher will utilize the drop-and pick later basis where the respondents will be given a maximum of seven days period to fill the questionnaire. Validity of Research Instruments Validity refers to the degree by which the outcome of a survey represents the trend of the current study. This involves validating the questionnaire and analyzing the questionnaire for any omissions, ambiguity and errors to make the necessary corrections (Mugenda and Mugenda, 1999). Data Analysis and Presentation Data obtained from the survey will be scrutinized then coded ready for analysis and interpretation using Statistical package for Social Sciences (SPSS). Analysis will be conducted using descriptive statistics such as percentages, frequencies, pie charts, bar charts, graphs, measures of central tendency such as mean median and mode. Measures of dispersion will be measured using standard deviation. Inferential statistics will be measured using chi-square tests and correlation coefficient to determine the cause and effect between the variables. Dependent Variable Revenue Collection in Middle-level Learning Institutions Independent Variables Nature of Clients Management Policies Quality Assurance Effects of Student Population Moderating Variable Government policies Expected Outcome This study is expected to fill the gaps from previous research on the topic by giving recommendations on better ways of revenue collection in middle-level colleges. The findings from this study will benefit the middle level colleges by sensitizing the management on how to curb losses and to promote revenue collection in their institutions. The government will benefit from the current study by accessing information on the challenges facing middle level colleges in terms of revenue collection. Fellow researchers will benefit from the current study by accessing a reference point on the topic under review and stimulate further research for discussion References Alomba, S.K. (2003) Factors that influence financial management in secondary schools in Migori District. .Unpublished thesis, Kenyatta University. EFA global gender and education for all THE LEAP TO EQUALITY gender and education for all THE LEAP TO EQUALITY (2003) . Finnie and Ross (1996) Student loans in Canada past, present and the future. Edited by Schwartz. 1st edn. Howe Institute. Heller, D.E. (1997) Student price response in higher education: An update to Leslie and Brinkman, The Journal of Higher Education, 68(6), p. 624. doi: 10.2307/2959966. Jackson, G.A., Leslie, L.L. and Brinkman, P.T. (1989) The economic value of higher education, The Journal of Higher Education, 60(5), p. 609. doi: 10.2307/1982275. Ngaba, D.K. (2003) Working capital management policies among public companies in Kenya. .Unpublished Thesis: University of Nairobi.