STRENGTHENING THE REVENUE VALUE CHAIN TO INCREASE FINANCIAL VIABILITY. PRESENTED BY PEET DU PLESSIS HEAD: REVENUE MANAGEMENT Ethekwini Municipality
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- Karin Harmon
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1 STRENGTHENING THE REVENUE VALUE CHAIN TO INCREASE FINANCIAL VIABILITY PRESENTED BY PEET DU PLESSIS HEAD: REVENUE MANAGEMENT Ethekwini Municipality 1
2 By 2030 ethekwini will be Africa s most caring and liveable City EThekwini celebrates 20 years of freedom 20 Years of Freedom Achievements to Date
3 REVENUE VALUE CHAIN INDEX Customer database Communication Property database Technical Losses & Non technical By Laws, Policy & Procedures REVENUE ENHANCEMENT Basic Services Billing Institutional Readiness Receipting Credit Control & Debt Collection
4 CUSTOMER DATA? Individuals ID No and or Passport No. incl. Copies Postal Address in SA Residing address Domicilium Spouse details/ Living Partner Previous address outside Municipality Employers Details Look at S115 and ensure processing and delivery documents are possible. 4
5 CUSTOMER DATA? Companies PTY (Ltd) inclusive of Share Block s ID No and or Passport No. incl. Copies all Directors Postal Address in SA all Directors Residing address all Directors Domcilium all Directors Resolution Board who represent Comp Previous address outside Municipality all Directors Ensure Company is not deregistered 5
6 CUSTOMER DATA? Trusts Letter of Authority ID No and or Passport No. incl. Copies all Trustees Postal Address in SA all Trustees Residing address all Trustees Domcilium all Trustees Resolution Board who represent Comp Previous address outside Municipality all Trustees 6
7 Customer Control Over Details Meters 7
8 Property Information 8
9 PROPERTY DATA Deeds Dump SG dump on all plans including different layers Property Description Property Zone/ Use Separate data State Municipal Private Use GOOGLE Maps incl. Street View Approved Building Plans 9
10 MAP OF DURBAN
11 PROPERTY IN Info Midvaal Municipality
12 PROPERTY IN 2010 The property when visit in 2010 by the Valuer and now with a Value of R Info Midvaal Municipality
13 BASIC SERVICES Approved tariffs Access to services including life line tariffs Meter audits Conventional especially 3phase Electricity CTs Constant on billing system Tampering Illegal Connections Establish relationship with Magistrate Court, and Prosecutor to prosecute on theft 13
14 BILLING Exception reports Meter readings Meters issued from stock not on billing system Meters replaced but not removed from billing systems Meter inspections credit /Pre Paid Electricity Ct s Constants of meter Tampering Water Tampering with water flow devices Bypass illegal connections 14
15 BILLING Adjustments Exceptions reporting Internal Control Segregation of duties Be Aware Fraud & Corruption including Collusion Over read Billing Printing and dispatching of Mail Consider electronic mail and or Cellphone Cellphone Applications (APP) Check dormant accounts Check accounts with credit balances regularly 15
16 CELLPHONE APP 16
17 RECEIPTING Clear procedures Security Payment options: EFT s Credit & debit Cards Direct Debits Cash 3 rd Party Collectors Cellphone payments Internet NO CHEQUES unless Bank Guaranteed 17
18 CREDIT CONTROL Hart of the Municipality Start day when property is transferred and or Account is opened Owners should be responsible for debt Analysis of debtors book Categorise debt 80/20 Focus energy highest impact Innovative Use all remedies to disposal for collections Write off irrecoverable debt Disconnection strategies Regular Audits on credit arrangements e-natis check purchasing of vehicles 18
19 CREDIT CONTROL. Cont Reallocate payments Issue notices in terms of MPRA Staff and Councillor arrears Salary/bonus/back-pay etc. deductions SCM: Tenders are not considered / awarded to tenderers who have debt owing to a municipality Building plans not to be approved for property owners who have debt owing to your municipality Business Licences should not be granted to those who have debt owing to your municipality Payment to suppliers must be withheld from those who have debt owing to your municipality Profiling of Customers according to their credit history 19
20 INSTITUTIONAL READINESS Regular training Theory and systems Network and systems in place Integration of all systems (ERP) Meter Readings to Billing system Vending system to Billing System 20
21 BY-LAWS, POLICY AND PROCEDURES Use All Legislation to disposal MSA MFMA MPRA NCA Magistrates Court Act Sectional titles Act Review Policy Annually Ensure By-laws give Effect to Policy Proper Procedure Manuals Proper set of delegated authority Keep abreast of judgments impacting on Credit Control 21
22 TECHNICAL, NON- TECHNICAL LOSSES Technical departments need to play role Check ageing infrastructure Ensure all leaks are dealt with (Saving on Scarce Resources) Reduce water pressure Water leaks project -- *Fix residential (indigents) water leaks and install water management devices (WMD) or pre-paid water meters Balance purchases with sales on monthly basis 22
23 COMMUNICATION Use all Media options Social Media SMS/MMS Formal Media (news Papers) Pamphlets Radio Stations Ward Committees Circuit Television (Banking Halls) Cellphone App Set up Inter department meeting Potholes Cutting Verges, etc 23
24 Days Collection Period in Days Collection Period = Net Consumer Debtors Property Rates + Service Charges x 365 Norm : 30 days
25 Questions????? 25
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