We believe that the Assessment and recommendation, when applied, will improve the payment rate from average of 5% to 20% by the end of the 2017/2018 financial year will enhance the cash flow position for Thembisile Hani Local Municipality. PROJECT STRUCTURE The team who performed the analysis is documented as follows: Team member Designation Contact Information Mrs. Lilian Tshabangu- Mathaba MMC – Finance Mr. Oscar Nkosi Municipal Manager – THLM Mrs. Jessica Mahlangu Acting CFO – THLM Mr. Oupa Ledwaba Assistant Manager – Revenue Management Mr. Lawrence Mkhabela Project Manager - Lmk Consulting Services (Pty) Ltd Mr Inock Kabini Accountant – Revenue Management
Targeted and stringent debt collection is not followed consistently; Fragmented relationship between the municipality and the traditional leadership which hails over some areas within THLM; Lack of consistent and visible services delivery in some resulting in THLM billing services not actually delivered; To achieve this target rigorous and creative solutions focused on the entire revenue collection value chain will be required. The following actions are recommended for the different aspects of the value chain to address the above mentioned challenges; Review the credit control policy; Develop a procedure manual or business rules for collections and credit control from the credit policy; Strengthen credit control process; Targeted collection – Organ of state; Targeted collection – Municipal Councillors and Ward Committee Members; Targeted collection – Municipal Officials; Targeted collection – Businesses; Targeted collection – All residential debtors at the end of the 1st quarter of 2018/2019 financial year on newly refreshed billing database;
The credit control policy must provide a framework, within which the municipal council can exercise its executive and legislative authority with regard to credit control and debt collection, use innovative, cost effective, efficient and appropriate methods to collect all debt in the shortest possible time without any interference in the process: and effectively and efficiently deal with defaulters in accordance with the terms and conditions of this policy. Ensure that all monies due and payable to the municipality are collected and used to deliver municipal services in the best interests of the community, residents and ratepayers and in a financially sustainable manner. Outline the procedures that will ensure that the members of the local community is afforded the opportunity to contribute in the decision-making processes of the municipality and that they are informed of the decisions and affairs of the municipality, Set realistic targets for debt collection, Outline credit control and debt collection policy procedures and mechanisms. The policy will be reviewed to confirm that it provide a framework to link the municipal budget to Indigent support; and Tariff policies. Promote a culture of good payment habits amongst Thembisile Hani Local Municipality debtors and instil a sense of responsibility towards the payment of municipal accounts and reduction of municipal debt. The procedure manuals are beneficial to any organisation regardless of industry sectors and size. They help document what needs to be done and by who and when, it can be used to improve understanding and accountability for business activities, which in turn are critical for the achievement of the organisations strategic goals. They clearly defined and documents the processes followed when carrying out specified business activities during the normal course of operations. Procedure manuals provided the following benefits to an organisation: Provide consistency and common understanding in carrying out business activities; Identifies and allocate responsibility and accountability; Safeguards organisational memory; Improves business continuity; Assist in the continuous identification of risks on key business processes As part of its constitutional obligation to ensure the provision of services to communities in a sustainable manner, the Thembisile Hani Local Municipality has developed a procedure manual for Credit control and Debt collection. The objective of the manual is to equip staff and managers with the correct procedures when dealing with issues of credit control and debt collection. The processes and activities documented in this manual are for those involved in the Credit Control and Debt Collection sub-processes.
7.2.5 Targeted Collection - Municipal Councillors and Ward Committee Members Implementation of credit targeted collections Analyse debtors balances; confirm accuracy of debtors information i.e. account and owner details; make individual arrangements; perform monthly deductions; Reconcile debtors accounts monthly; Monitor performance. Lydia Sehlako R 250 000,00 30/10/2018 7.2.6 Targeted Collection - Businesses Implementation of credit targeted collections for Business; Analyse business debtors; confirm accuracy of debtors information i.e. account and owner details; Initiate communication; follow up; take further legal action; BBT Capital R 1 000 000,00 30/10/2018 7.2.7 Targeted Collection - Residential Debtors Implementation of credit targeted collections for Residential debtors Analyse business debtors; confirm accuracy of debtors information i.e. account and owner details; Initiate communication; follow up; maintain communication; Physically visit the property for inspections; take further legal action; Enock Kabini R 17 100 000,00 30/10/2018