Cost Drivers
Part 2 Supporting Documentation
A. REVIEW PROCESS
17. FUNDING OF NON-INCOME GENERATING SERVICES
17. FUNDING OF NON-INCOME GENERATING SERVICES All non-income generating services
under waste management services shall be funded through a levy billed to all billable residential and commercial clients. The services covered includes street sweeping, litter-picking and clearing of illegal dumping.
An official a s d e l e g a t e d b y H e a d o f d e p a r t m e n t w a s t e m a n a g e m e n t s e r v i c e s shall adjust accounts on
documented proof of an amended service level agreement (letter, email, etc.) and the
applicable date of change.
CONSUMER DEPOSIT POLICY (Refer to Annexure D6)
CURRENT POLICY PROPOSED POLICY
3 DETERMINATION OF THE AMOUNT
OF A DEPOSIT
3 DETERMINATION OF THE AMOUNT OF A DEPOSIT 3.6 If a bank guarantee, is offered instead
of payment in cash, the following will apply:
3.6 If a bank guarantee, is offered instead of payment in cash, the following will apply:
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CURRENT POLICY PROPOSED POLICY
3.6.1 A maximum of one third (⅓) of the amount due in respect of the deposit may be tendered as a bank guarantee.
3.6.2 The balance of the required deposit to be paid in cash.
3.6.3 The bank guarantee tendered to be irrevocable until all dues in terms of the property has been settled.
3.6.1 A bank guarantee of 100% of the amount due in respect of the deposit may be tendered in respect of customers linked to the following tariff categories –
Tariff C : Bulk supplies at any voltage and with a capacity of at least 25 kVA (minimum monthly NAC of 25 kVA
Tariff D : Bulk supplies at any voltage and with a capacity of at least 1 MVA and a network access charge of at least 1 MVA over the previous 12 months
Tariff E: Bulk supplies at any voltage and with a capacity of > 25kVA and a NAC of < 1 MVA.
3.6.2 The bank guarantee tendered to be irrevocable until all dues in terms of the property has been settled.
CREDIT CONTROL & DEBT COLLECTION POLICY (Refer to Annexure D8)
CURRENT POLICY PROPOSED POLICY
2 DURATION AND CONDITIONS FOR PAYMENT OF ARREARS IN INSTALMENTS (e) (iii) instances of meter tampering or
illegal
connection;
(e)(iii) instances of proven meter tampering or illegal connection, no debt repayment arrangement and full outstanding amount is payable;
PROVISION FOR DOUBTFUL DEBTORS AND DEBTORS WRITE OFF (Refer to Annexure D9)
CURRENT POLICY PROPOSED POLICY
4.1CONSUMER DEBTORS
The following category in the calculation must be amended as follows:
4.1 CONSUMER DEBTORS
Add –
In terms of the provisions of GRAP standard AG125, the above-mentioned “Percentage of debt provided for as irrecoverable” will be reviewed and adjusted at the Statement of Financial Position
Disconnection of services in excess of 6 times during preceding 12 months
Zero 100% Disconnection of services in excess of 6 times during preceding 12 months –
Debt ageing 0 – 90 days
Debt ageing 90+ Days
100%
25%
Zero 75%
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CURRENT POLICY PROPOSED POLICY
date on the basis of current observable data, to reflect the effects of current conditions that did not affect the period on which the historical loss experience is based and remove the effects of conditions in the historical period that do not exist currently. The methodology and assumptions used for estimating future cash flows will be reviewed to reduce any differences between loss estimates and actual loss experience.
5.1
Amounts equal to or lower than amounts delegated to the Chief Financial Officer by Council from time to timeIncome managers identifying irrecoverable debtors within the delegated powers of the CFO must prepare a report for the attention of the CFO detailing the nature of the
underlying debt, conditions that led to the debt being identified as being irrecoverable, details on credit and debt collection processes followed to recover the debt and confirmation that all available avenues to recover the debt have been exhausted and that further actions would be fruitless and not cost effective.
Report of irrecoverable debtors detailing the nature of the underlying debt, conditions that led to the debt being identified as being irrecoverable, details on credit and debt collection processes followed to recover the debt and confirmation that all available avenues to recover the debt have been exhausted and that further actions would be fruitless and not cost effective must be submitted to Divisional Head Revenue.
The report of the income manager must be scrutinised by the income director and his recommendation must be documented in the report.
Report of irrecoverable debtors detailing the nature of the underlying debt, conditions that led to the debt being identified as being irrecoverable, details on credit and debt collection processes followed to recover the debt and confirmation that all available avenues to recover the debt have been exhausted and that further actions would be fruitless and not cost effective must be submitted to Divisional Head Revenue.
The final report containing the
recommendations of both the income manager as well as the director income must be presented to the Group Chief Financial Officer for consideration.
Report containing recommendations of Divisional Head Revenue must be presented to the Group Chief Financial Officer for consideration.
5.2 Amounts exceeding the CFO’s delegated authority
The process for the consideration of write-off of debts in respect of amounts in excess of CFO delegated authority must be dealt with as follows:
Income managers identifying irrecoverable debts in excess of Group Chief Financial Officer delegations and prepare report detailing the nature of the underlying debt, conditions that led to the debt being identified as being
irrecoverable, details on credit and debt collection processes followed to recover the debt and confirmation that all available avenues to recover the
Report of irrecoverable debtors detailing the nature of the underlying debt, conditions that led to the debt being identified as being
irrecoverable, details on credit and debt collection processes followed to recover the debt and confirmation that all available avenues to recover the debt have been exhausted and that further actions would be fruitless and not cost effective must be submitted to Divisional Head Revenue.
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CURRENT POLICY PROPOSED POLICY
debt have been exhausted and that further actions would be fruitless and not cost effective.
The report of the income manager must be scrutinised by the income director and his recommendation must be documented in the report.
The final report containing the
recommendations of both the income manager as well as the director income must be presented to the up Chief Financial Officer for
consideration.
Report containing recommendations of Divisional Head Revenue must be presented to the Group Chief Financial Officer for consideration.
5.3 Application of Prescription Act Income manager will assess application in terms of prescribed requirements. If in compliance with Prescription Act, approval may be granted to write-off prescribed portion of debt.
Income manager will assess application in terms of prescribed requirements. If in compliance with Prescription Act, report of irrecoverable debts detailing the nature of the underlying debt, conditions that led to the debt being identified as being prescribed, details on credit and debt collection processes followed to recover the debt and confirmation that debt has prescribed must be submitted to Divisional Head Revenue for consideration and approval.
Add –
5.6 Council Approved Write-Off Schemes.
Council approved incentives or debt write-off schemes must be processed against the relevant debtors account and reflected as debit against Bad Debt Provision in the financial ledger.
Incentives or debt write-offs to be processed to individual qualifying debtors accounts for the duration of scheme.
BUDGET IMPLEMENTATION AND MONITORING POLICY (Refer to Annexure D10) The Budget Implementation and Monitoring Policy (Refer to Annexure D10) changed in total
ACCOUNTING POLICY (Refer to Annexure D12) The Accounting Policy changed in total.
BORROWING POLICY (Refer to Annexure D14)
CURRENT POLICY PROPOSED AMENDMENT POLICY
2. OBJECTIVES OF POLICY 3. OBJECTIVES OF POLICY