The adherence to credit control and the effectiveness of debt collection tools in an energy municipal entity
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Date
2023
Authors
Williams, Zoe Shaloom
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
The Constitution of the Republic of South Africa, promulgated in 1996, describes three government levels, namely national, provincial and local government. The accounting officer of a municipality (at the local level) is accountable for the management of municipal revenues and the enforcement of revenue collection procedures, including the reconciliation and recognition of allowed revenues of the municipal entity.
Over the years, revenue collection – especially by local government – has faced serious financial management challenges, in particular in relation to prudent revenue and debt collection management and has resulted in the pressing predicament of unsatisfying service delivery due to inadequate revenue management by municipalities and municipal entities in their provision of services to their communities. For effective service delivery, a sound revenue system is essential for a municipal energy entity to render services to its customers; to maintain and sustain sufficient income to adhere to service delivery commitments; and/or to render any goods or services as legislatively mandated.
The study discusses a municipal energy entity’s credit control measures and debt collection tools, that can assist the South African government in strengthening municipal revenue and maintaining a favourable cash flow, to render good service to its communities. The enhancement of income is conditioned on the effectiveness of two intrinsic elements, namely, billing-rendered services and meter-calibrated service delivery.
Description
Dissertation (MBA (Business Administration))--University of the Free State, 2023
Keywords
Debt collection, credit control, revenue collection, municipal services, non-payment, government debt, service delivery, legislation, revenue enhancement, cash flow, energy