IMFO Conference 3 5 October 2016 EOH at a Glance Listed in 1998 Best share performance on the JSE in 2014 Over 13 000 staff Endtoend offerings BBBEE Large Enterprise Level 2 A force for good ID: 618220
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Slide1
Optimising Revenue to Support a Sustainable and Credible Budget
IMFO Conference 3- 5 October 2016Slide2
EOH at a Glance
Listed in 1998. Best share performance on the JSE in 2014
Over 13 000 staff
End-to-end offerings
B-BBEE Large Enterprise
Level 2
A force for good
in society
Over 2 000 clients
138 locations in SA, active in 38 African countries and Internationally
Leader in technology and
knowledge services;
Over R20 billion market cap
Best People
Partner for Life
Right 1st Time
To ensure professional planning
and
execution and have pride in
all
we do
To nurture
lifelong
partnerships with our customers and business partners
To attract, develop and retain the best people led by great leaders
Sustainable Transformation
To transform and celebrate diversity
Lead & Grow
Strive to be #1 in every domain we operate in whilst remaining entrepreneurial Slide3Slide4
Current state of Local Government FinanceSlide5
Current state of Local Government FinanceSlide6
Reasons for poor service deliverySlide7
Main Sources of Municipal Revenue
Source: National Treasury, Section 71 Report, Q4 - 2015/2016Slide8
Outstanding consumer debt
Source: National Treasury, Section 71 Report, Q4 - 2015/2016Slide9
Revenue Optimisation Strategies & ProgrammesSlide10
Limited success of Revenue Optimisation initiativesSlide11
Requirements for effective Revenue Management
Serious administrative reform and requisite administrative practices
Effective revenue administration comprising revenue management and implementation strategies
Comprehensive procedures covering revenue value chain:
Tax base identification
Customer database management
Liabilities assessmentInvoicingEnforcementCash managementCustomer servicesData on customers, indigents, cadastral, finances and socio-economic circumstances
Collect information, record & manage within respective revenue baseAccurate and timeous billingCredit control
Capacity enhanced through training, technical assistance and information programsIntegrated Systems essential for effective revenue managementSlide12
Revenue Optimisation
Citizen Centric Road Map
The Municipal citizen
PRIMARY FOCUS
Water
Rates
Sanitation
Refuse
removal
Electricity
R
SECONDARY FOCUS
Environmental
Protection
Safety & Security
Community and
Social
Development
Health
Sports & Recreation
The Municipal citizenSlide13
Punitive Revenue
Enforcement Revenue
Economic Revenue
Facilitating economic stimulation
Obligatory Revenue
Services Revenue
Revenue Optimisation
Types of Revenue
Innovative Revenue
Optimal usage of assetsSlide14
Revenue Optimisation
Overview
Revenue
Optimization
comprises :
Income Optimization and Cost Optimization, Debt Management. Innovative Revenue and Economic Spatial Development; managed from a Command and Control Centre. It is a convergence of MIS to support Management
SMART city
Obligatory
Innovative
Punitive
Economic
Optimisation
Spatial
Economic
Development
Innovative
Innovative
Debt
Debt
Management
Expenditure
Expenditure
Optimisation
Income
Income
OptimisationSlide15
Revenue Optimisation
Base up Approach
Confirm Collections
Debt Management
Income Optimisation
Cost Optimisation
Economic Spatial Optimisation
Optimise Secondary Revenue
GIS, SG Deeds Office
Diagnose Policies and Procedures
Verify Customer and Tariffs
Cleanse Installed Services
Investigate Delivery Process
Assess Billing/InvoicingSlide16
8.
Economic Spacial Development
7.
Debt management
6.
Cost optimisation
5.
Income optimisation
4.
Command & Control centre
Revenue Optimisation
3.
Infrastructure validation
2.
Data Cleansing analysis
Key Elements
1.
Baseline diagnosticsSlide17
Revenue Optimisation
Legislation,
Policy
& Procedures
Income
optimisation
Customer
Centricity
Focused diagnostic
Analysis – SG Cadastral
Cutting edge
solutions
Cost optimisation
Communications
Change
management
Infrastructure
based
FOCUS AREASSlide18
Revenue Optimisation
Income optimisation
Complete Billable Service Delivery is only possible when Infrastructure Data = Client Data
Services delivered
Billing
Invoicing
Accurate, complete payable invoice
CLIENT DATA
INFRASTRUCTURE DATASlide19
Critical Success Factors
People
Processes
TechnologySlide20
Acknowledgements
National Treasury MFMA Circular
64
Municipal
Finance Management Act, Act 56 of 2003
Municipal Systems Act, Act 32 of 2000
Municipal Property Rates Act, Act 6 of 2004FFC - Division of Revenue-Technical Report
University of Pretoria - Fiscal Performance and Sustainability of Local Government
in South AfricaSlide21
Thank you
Technology
makes it possible…
People
make it happen