Lekwa Local Municipality 2013/14 - Co-operative Governance and ...

easonably expects to derive economic benefits, or reasonably expects to use in service delivery, over a periodextending beyond one financial year.An asset held under a finance lease, shall be recognized as a fixed asset, as the municipality has control over suchan asset even though it does not own the asset.Role of Municipal ManagerRole of Chief Financial OfficerFormat of fixed Asset registerClassification of fixed AssetInvestment propertyFixed asset treated as inventoryRecognition of heritage assets in the fixed asset registerRevision of donated AssetSafe keeping of AssetsIdentification of fixed AssetsProcedure in case of loss, theft, destructions or impairment of fixed assetsCapitalization criteria- material valueCapitalization criteria- intelligent item etc.Credit Control and Debt Collection PolicyDebt collection/revenue management is inter alia a responsibility of all Municipalities as defined in the followingsections of the Acts - 1. Local Government Municipal Systems Act, 32 0f 2000:Section 96- A municipality – (a) Must collects all money that is due and payable to it, subject to this Act and anyother applicable legislation; and for this purpose, must adopt, maintain and implement a credit control and debtcollection policy which is consistent with its rates and tariff policies and complies with the provisions of this Act.Section 97 - Contents of policy and a credit control and debt collection policy must provide for –a. Credit control procedures and mechanisms;b. debt collection procedures and mechanisms;c. provision for indigent debtors that is consistent with its rates and tariff policies and any nationalpolicy on indigents;d. realistic targets consistent with – general recognized accounting practices and collection ratios;and the estimates of income set in the budget less an acceptable provision for bad debts;e. interest on arrears, where appropriate;f. extensions of time for payment of accounts;g. termination of services or the restriction of the provision of services when payments are inarrears;h. Matters relating to unauthorized consumption of services, theft and damages; and any othermatters that may be prescribed by regulation in terms of section 104.A credit control and debt collection policy may differentiate between different categories of ratepayers, users ofservices, debtors, taxes, services, service standards and other matters as long as the differentiation does notamount to unfair discrimination. The cost (Summons revenue stamp, sheriff service fee and interest) to implementand execute the legal process per above mentioned schedule will be recovered in full from the defaulter, includinga administrative fee, that will be determined from time to time as per Council resolution.Indigent PolicyThe purpose of the indigent policy is to ensure:The provision of basic services to the community in a sustainable manner, within the financial and administrativecapacity of the Council; and to provide procedures and guidelines for the subsidization of basic charges to itsindigent Households, using the Council’s budgetary provisions received from central Government, according to232 | P a g e