Western Cape Provincial Treasury presents Revenue Management Master Class

The Western Cape Provincial Treasury and the Stellenbosch Executive Development will be hosting a Revenue Management Master Class (RMMC) on 7 and 8 November 2016, facilitated by the University of Stellenbosch Executive Development and School of Public Leadership to highlight sustainable transformation and to strengthen municipal revenue management.

The RMMC will be hosted in partnership with other key role players which include representatives from National Treasury, the South African Local Government Association, National Department of Public Works, Office of the Valuer General and selected municipalities in the Western Cape.

In terms of section 5(3) of the Municipal Finance Management Act (Act No. 56 of 2003), the Provincial Treasury is mandated to assist, guide, monitor and enforce compliance to the said Act.

As at 30 June 2016, and published in the Provincial Gazette Extra-ordinary 7655 dated 30 July 2016, aggregate municipal consumer debts including current debt amounted to R9.51 billion compared to R9.73 billion reported in the third quarter (as at 30 June 2016). Government debt accounted for 3.05 per cent or R289.67 million (R197.5 million reported in the third quarter). The largest component related to households which accounted for 79.9 per cent or R7.6 billion (78.7 per cent or R7.7 billion in the third quarter).

In general, all municipalities have credible debt management policies and strategies in place and are exploring various initiatives and fiscal effort to ensure improved collection of revenue.  The deteriorating current state and outlook of the South African and sub-regional economies, as expressed in the National and Provincial Treasury Medium Term Budget Policy Statements, coupled with the increased unemployment levels and a rise in poor households, to access free basic services such as water, electricity, refuse and sanitation necessitating municipalities to widen its indigent support, does not favour revenue optimisation and debt collection initiatives in municipalities

Other risks which aggravate the debt situations within municipalities include amongst others accurate databases and information to support correct billing leading to surety when collection and credit control procedures need to be implemented.

It is with this in mind that the Western Cape Provincial Treasury realise the strong need to strengthen municipal revenue management which will form the basis of discussion for the 2016 Revenue Management Master Class. The target audience for the Master Class are Mayoral Committee members responsible for Municipal Finance, Municipal Managers, Chief Financial Officers and other senior municipal finance officials engaged in the municipal revenue value chain.

The focus areas over the two days will include amongst others:

• Empowering municipalities with practical and operational information on how to best manage Local Government Revenues;
• A Customer Centricity approach embedding sound revenue management planning and maintaining responsible customers;
• Design and Innovative Revenue Business Models to strengthen the link between strategic long-term planning, budgeting and financial viability; and
• The impact of recent case law and how municipalities can use this to benefit or to their advantage.

The thrust of the master class would, in the long-term, yield benefits that embed sustainable revenue management practices in municipalities.

The event is fully sponsored by the Western Cape Provincial Treasury and includes master class facilitation, venue and catering.

“Strengthening and sustainable revenue generation is possible by advancing the internal revenue management capacity of Local Government through partnering in action!”