SECTION lll: LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT NO. 56 OF 2003 SECTION 64: REVENUE MANAGEMENT The accounting officer of the municipality is responsible for the municipality revenues and must for this purpose take all reasonable steps to ensure - that the municipality has effective revenue collection systems consistent with Section 95 of the Municipal System Act and the municipality’s credit control and debt collection policy that revenue due to the municipality is calculated on a monthly basis that accounts for municipal taxes and charges for municipal services are prepared on a monthly basis, or less often as may be prescribed where monthly accounts are uneconomical that all money received is promptly deposited in accordance with the requirements of this Act into the municipality’s primary and other bank accounts that the municipality has maintains a management, accounting and information system which recognizes revenue when it is earned, accounts for debtors and accounts for receipt of revenue that the municipality has and maintains a system of internal control in respect of debtors and revenues as may be prescribed that the municipal charges interest on arrears, except where the council has granted exemptions in accordance with its budget-related policies and within a prescribed framework; and that all revenue received by the municipality including revenues received by any collecting agent on its behalf is reconciled at least on a weekly basis. The accounting officer must immediately inform the National Treasury of any payments due by an organ of state to the municipality in respect of municipal taxes or for municipal services, if such payments are regularly in arrears for periods of more than 30 days. NOTE: SECTION 164: FORBIDDEN ACTIVITIES Section 164(1) (c) lists as a forbidden activity by a municipality activity of loans to councillors or officials of a municipality and directors or officials of any municipality entity and members of the public. It has been assumed for purposes of compiling the credit control and debt collection policy that allowing any party to pay off arrears of rates and municipal services charges is not tantamount to the making of a loan in terms of Section 164.
SECTION lll: LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT NO. 56 OF 2003 SECTION 64: REVENUE MANAGEMENT The accounting officer of the municipality is responsible for the municipality revenues and must for this purpose take all reasonable steps to ensure - that the municipality has effective revenue collection systems consistent with Section 95 of the Municipal System Act and the municipality’s credit control and debt collection policy that revenue due to the municipality is calculated on a monthly basis that accounts for municipal taxes and charges for municipal services are prepared on a monthly basis, or less often as may be prescribed where monthly accounts are uneconomical that all money received is promptly deposited in accordance with the requirements of this Act into the municipality’s primary and other bank accounts that the municipality has maintains a management, accounting and information system which recognizes revenue when it is earned, accounts for debtors and accounts for receipt of revenue that the municipality has and maintains a system of internal control in respect of debtors and revenues as may be prescribed that the municipal charges interest on arrears, except where the council has granted exemptions in accordance with its budget-related policies and within a prescribed framework; and that all revenue received by the municipality including revenues received by any collecting agent on its behalf is reconciled at least on a weekly basis. The accounting officer must immediately inform the National Treasury of any payments due by an organ of state to the municipality in respect of municipal taxes or for municipal services, if such payments are regularly in arrears for periods of more than 30 days. NOTE: SECTION 164: FORBIDDEN ACTIVITIES Section 164(1) (c) lists as a forbidden activity by a municipality activity of loans to councillors or officials of a municipality and directors or officials of any municipality entity and members of the public. It has been assumed for purposes of compiling the credit control and debt collection policy that allowing any party to pay off arrears of rates and municipal services charges is not tantamount to the making of a loan in terms of Section 164.
Draft%20Credit%20Control%20%20and%20Debt%20Collection%20Policy%202015-16.docx