In 2005 dplg, FNB Public Sector Banking (FNB) and Public Services & Utilities International (PSU) entered into a Memorandum of Understanding (MOU) to provide an initial analysis of the state of revenue for the Project Consolidate pilot sites in order to highlight problem areas with their billing data and pinpointed areas where revenue enhancement programs should be introduced. The focus of the private sector partners was targeted at providing assistance in the area of billing and revenue enhancement. Mafikeng Municipality is one of the Project Consolidate pilot sites.
It is widely accepted that inaccurate or incomplete data within Municipal financial systems contributes to poor financial management. Poor financial management in turn leads to lost revenue.
Mafikeng Local Municipality, in association with PSU International (a company that specializes in assisting the Public Sector with improving data integrity), has made enormous improvements in their revenue streams over the last 12 months. By employing a sophisticated approach to their “data cleaning”, Mafikeng has developed a methodology which has significantly improved their cash flow. Inaccurate data has been identified and subsequently rectified in the financial system. Incomplete data has also been identified and subsequently added to the financial system. Both these initiatives have resulted in improved cash flow.
Improved reporting functionality has provided the basis for improved accountability. For example debtor information, by ward, has ensured that Local Councilors have sufficient information with which to assist in the process of improved payment levels. As is the case of any successful project, Mafikeng’s success has only been possible due to the coordinated commitment of all parties in the process. These include the Council, Council staff and various service providers. The process will be on going but the improved revenue flows should enable the Municipality to constantly strive to improve and extend service delivery.
Examples of Improved Billing (facilitated via detailed interrogation of financial data).