IMPACT OF MANAGEMENT OF ACCOUNT RECEIVABLES AS A DETERMINANT OF EFFICIENCY IN TARABA STATE WATER SUPPLY AGENCY, MAGAMI DISTRICT, JALINGO

Abstract

This study investigates the impact of accounts receivable management on the operational efficiency of
public corporations, with specific reference to the Taraba State Water Supply Agency (TSWSA), Magami
District, Jalingo. The objectives include evaluating the relationship between accounts receivable and
organizational efficiency, identifying the causes of high debt levels owed to the agency, and assessing how
these factors collectively influence its overall performance. A descriptive survey design was adopted for
the study. Data was collected through structured questionnaires administered to a sample of twenty-eight
staff members of TSWSA. The collected data were analyzed using descriptive statistics, including
frequency tables and simple percentages, to summarize the responses. Additionally, chi-square (χ²)
statistical technique was employed to test the formulated hypotheses and assess the significance of the
relationships observed. The findings reveal that poor management of account receivables significantly
contributes to inefficiencies in service delivery and revenue collection within the agency. Major causes of
high debt accumulation include inadequate billing systems, lack of enforcement mechanisms, and
customer unwillingness or inability to pay. Furthermore, the study confirms a strong correlation between
effective receivables management and improved organizational efficiency. Based on these findings, the
study recommends the implementation of a more robust and automated billing system, regular training
for staff on credit management, and the introduction of stricter policies for debt recovery. Strengthening
internal control and monitoring mechanisms will also enhance receivables collection and improve the
financial sustainability of public service institutions like TSWSA.