Revenue Solutions Summit 2021
Revenue Solutions Summit 2021
As part of our endeavor to continuously provide industry thought leadership, Ms Sikelelwa Foslara AGA(SA) IAT, Executive, will be presenting at the LG Revenue Solutions Summit 2021 on the Practical Debt Recovery Strategies.
Revenue management is an integral part of any business that strives to succeed, this also includes municipalities. With the pressures that Covid19 has put on the economy and the national fiscal, it is more crucial that municipalities be self-sufficient as they can no longer be solely dependent on National Treasury for funding.
The successful implementation of the revenue plan will result in improved revenue management, reduced municipal consumer debt and protection of municipal revenue.
Municipalities continue to face several challenges that lead to poor revenue collection, and these include but not limited to:
- DATA ISSUES (JUST A FEW): Properties undervalued in the valuation – which results in understatement of revenue from property rates. Properties within the municipality’s jurisdiction that are not included in the municipality’s valuation roll – this can also be a qualification from the AG as it indicates that both assets and revenue from non- exchange are understated in the AFS. Duplicate properties in the valuation roll and or the billing system. Incorrect zoning of properties.
- PROCEDURAL ISSUES: Some municipalities do not have budget related policies and by-laws in place. Inaccurate and incomplete billing – (excessive use of estimates). Low revenue collection which results in high reliance on grants. Lack of implementation of credit control policies and by laws. Excessive indigent consumption. Unaffordability of consumer services. Unwillingness to pay by customers. Inaccurate indigent register. Lack of customer care services
- OTHER FACTORS: Poor revenue collection can also be a result of the following: Illegal connections. Meter tempering. Sale of illegal electricity vouchers. Illegitimate indigent customers.
BONAKUDE ASSISTS MUNICIPALITIES WITH PRACTICAL STRATEGIES TO ENHANCE ITS DEBT COLLECTION.
For more information, contact Ms Sikelelwa Foslara on 031 201 1241 or sikelewa@bonakude.co.za
