INCA SUMMER SCHOOL 2004 .


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Income MANAGEMENT. Legitimate structure (arrangements and by-laws)Budgeting Billing and charging administrationRates Service chargesSundry incomeCredit control and obligation collectionCash administration and speculations. Income MANAGEMENT
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INCA SUMMER SCHOOL 2004 REVENUE MANAGEMENT PRESENTED BY: CHRIS KAPP ZADER MUNICIPAL SERVICES (PTY) LTD ONTACT DETAILS: Tel : 044 874 7815 Fax : 044 874 7817 Cell : 082 655 1222 Email : c.kapp@mweb.co.za

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REVENUE MANAGEMENT Legal structure (approaches and by-laws) Budgeting Billing and charging organization Rates Service charges Sundry wage Credit control and obligation accumulation Cash administration and ventures

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REVENUE MANAGEMENT – BUDGET RELATED POLICIES ( Including duty arrangement, rates strategy obligation and credit control strategy) Legal structure Difficulties experienced by districts Possible arrangements Financial execution

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The Constitution Systems Act Local Government: Municipal Finance Management Act Local Government: Property Rates Act Municipal Policies and By-Laws: Tariffs Credit Control and Debt Collection Rates Delegations Legal Framework

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THE CONSTITUTION 151 Status of Municipalities Separate circle of government A region may administer subject to the national and common enactment National and commonplace may not bargain or block a region\'s capacity or ideal to practice its forces or play out its capacities 152 Objects of Local Government Ensure the arrangement of administrations in a maintainable way

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THE CONSTITUTION 153 . Formative obligations of districts Municipality must: Structure and deal with its organization, planning and arranging procedures to offer need to the essential needs 229. Region money related powers and capacities Municipality may force:- Rates on property and additional charges on expenses for administrations If approved by national enactment, different assessments, tolls and obligations

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THE SYSTEMS ACT 4 . Right and obligations of city chambers Municipality has a privilege to:- Finance the undertakings of the district by:- Charging expenses for administrations Imposing extra charges on charges, rates and different assessments, tolls and obligations (subject to national enactment)

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THE SYSTEMS ACT 74 Tariff Policy Municipal board must actualize and receive a duty strategy Must mirror the accompanying standards: clients of civil administrations ought to be dealt with impartially sum singular clients pay for administrations ought to be in extent to utilization Poor family units must have admittance to essential administrations, through: Tariffs that spreads just working and support cost Special taxes or life line duties Any other immediate or circuitous endowment

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THE SYSTEMS ACT ( Tariff Policy proceed ) Must mirror the expenses connected with the administration Must be set at levels that encourage monetary manageability of the administration Provision must be made for additional charge on levies Provision might be made advancement of nearby financial improvement Efficient and viable utilization of assets must be empowered Extent of sponsorship of taxes must be unveiled May separate

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THE SYSTEMS ACT ( Tariff Policy proceed ) 75. By-laws to offer impact to the strategy Municipal board must receive a by-law to offer impact to its arrangement By-law may separate between various classes of ratepayers, clients of administrations, account holders, duties, administrations and administration norms

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THE SYSTEMS ACT ( Credit Control and Debt Collection Policy ) 95. Client care and administration Establish a sound client administration framework Establish instrument for clients of administrations to give input Users of administrations must be educated of the cost of administrations Consumption must be checked Consumers get normal and exact records Create open components to inquiry and confirm accounts Provide available systems for managing protestations Provide components to screen reaction time Provide available pay focuses

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THE SYSTEMS ACT ( Credit Control and Debt Collection Policy ) 96 Debt gathering obligation of regions Municipality must: Collect all cash that is expected and payable to it Adopt, keep up and execute a credit control and obligation accumulation arrangement

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THE SYSTEMS ACT ( Credit Control and Debt Collection Policy ) 97. Substance of arrangement Policy must accommodate:- Credit control techniques and components Debt accumulation methodology and instruments Provision for poverty stricken borrowers Realistic targets reliable with: Grap and gathering proportions Estimates of pay Interest on back payments Extension of time for installment Termination or confinement of administrations Matters identifying with unapproved utilization, burglary and harms Other matters

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THE SYSTEMS ACT ( Credit Control and Debt Collection Policy ) 98. By-laws to offer impact to the strategy Municipal board must embrace a by-law to offer impact to its approach By-law may separate between various classifications of ratepayers, clients of administrations, borrowers, assessments, administrations and administration norms

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MUNICIPAL FINANCE MANAGEMENT ACT 64. Income administration The Accounting Officer is in charge of the administration of income and must guarantee that:- The Municipality has viable income accumulation frameworks Revenue is ascertained month to month Accounts are arranged month to month Money got is instantly kept Internal control for indebted individuals and income is set up Interest in charged on unpaid debts Revenue is accommodated week after week The Accounting Officer must advise National Treasury recently installments because of the district

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MUNICIPAL FINANCE MANAGEMENT ACT 17. Substance of the monetary allowance Prescribe design – setting out: Realistically foreseen income for spending year Expenditure for spending year Indicative income and use for the accompanying two budgetary years Separate capital and working spending plans Accompanied by supporting reports

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MUNICIPAL FINANCE MANAGEMENT ACT BUDGET RELATED POLICIES 13. Money administration and venture A district must build up a money administration and speculation arrangement 111. Inventory network administration approach Each district must execute a production network administration strategy

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MUNICIPAL PROPERTY RATES ACT 2. Forces to demand rates A metropolitan or neighborhood region may collect rates on properties in its range A region may require rates on properties in the region administration territory Rates must be liable to-Section 229 of the Constitution Provisions of the Property Rates Act Rates approach

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MUNICIPAL PROPERTY RATES ACT 3. Appropriation and substance of rates approach Rates strategy produces results on the successful date of the primary valuation arranged regarding this Act A rates arrangement must: Treat people fairly Determine criteria-Different rates Exemptions Grants, discounts or diminishments to particular classes of proprietors or classification of properties Increases in rates Categories of properties or proprietors of properties

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MUNICIPAL PROPERTY RATES ACT Any exclusions, refunds or decreases must agree and be actualized as per national structure No alleviation might be conceded other than by method for an exception, a discount or a lessening 11. Sum due for rates A rate collected must be available estimation of the property For the situation of open administration framework available esteem less 30% A rate exacted on properties with a market an incentive beneath an endorse valuation esteem might be a uniform settled sum

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DELEGATIONS 79. Designations The Accounting Officer must :- Develop a proper arrangement of appointment Regularly survey assignments The Accounting Officer may not delegate to any political structure or political office conveyor any forces or obligations Delegations must be-In keeping in touch with a particular individual or holder of a particular post

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MINISTER MFUMADI The fundamental reasons for the stunning obligation circumstance are " to a great extent managerial" he said… .

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Difficulties experienced by regions Administrative troubles: Lack of approaches and by-laws Inability to convey approaches and by-laws Inability to regulate indebted individuals database Inability to bolster impoverished purchasers Number of defaulting shoppers Outdated filing framework Limited reaction period Monthly repeating rates and administration charges Lack of particular credit control and obligation accumulation framework Exorbitant legitimate costs Lack of staff

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Difficulties experienced by regions Financial challenges: Reluctance of councilors to expand rates and administration charges Insufficient arrangement for working capital and awful obligations

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POSSIBLE SOLLUTION Political purchase in Data respectability Credit control and obligation gathering

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POSSIBLE STRATEGIES Financial investigation (the present state of affairs) Political purchase in Community support and correspondence House-to-house review Identify poverty stricken buyers Gather data of buyers Update database Electronic obligation accumulation framework fit to oversee and control all interior and outer procedures including lawful activities Electronic documenting framework System must interface with and create a perfect representation of bookkeeping framework System must have the capacity to appropriate work to various clients System must have a work process procedure to direct and trade work between credit control and obligation accumulation staff, outside temporary workers and offices System must be easy to use and buyers must be urged to make plans Possible outsourcing

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FEATURES OF A CREDIT CONTROL AND DEBT COLLECTION SYSTEM Interface with bookkeeping framework Handle vast number of defaulting buyers Workflow Electronic Archiving Telephone forms Reminder & Final Demand forms Dis-and Reconnection forms Legal Process up to Judgment Account inquiries Indigent applications and administration Data Filtering Parameter driven framework

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FEATURES OF A CREDIT CONTROL AND DEBT COLLECTION SYSTEM Management of :- Arrangements Estates Insolvencies Administrations Account Queries Contractors Attorneys Electronic Data Exchang

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