The major tasks to be undertaken by the Financial Services Department can be categorized into five broad areas and every staff member in the department will be assigned within a work category. These work categories consist of:
The are four categories of revenue, namely:
Receipt of Payments
Receipt of money over the counter:
Every amount of payment received by a cashier or other officer responsible for the receipt of money shall be acknowledged at once by the issue of a numbered official receipt or cash ticket; and Every receipt form, which is cancelled, will be reattached, in the correct place, in the receipt book. Where computer generated receipts are used, the original receipt must be filed for audit purposes.
Receipt of Money by Post:
When money (including postal orders and cheques) is received with the Council's mail, the Registry Clerk shall record all payment remittances as and when received in the cheque register in the presence of a witness. Post-dated cheques received in the Council's mail must also be recorded in the cheque register. The cheque register shall be regarded as the register of remittances received by post:
In terms of 12(1)(b) of the Regional Services Councils Act 109 of 1985, the rate to be used in calculating regional services levy and regional establishment levy:
All relevant forms must be completed upon de-registration/exemption. Details pertaining to the de-registration or exemption must be entered in the de-registrations/exemptions register. If a business is closed, a physical check must be carried out to confirm the same, before the de-registration is processed. However, if a business is sold, obtain information from the new business and process the registration form. If the owner of a business cannot be traced for outstanding balances, obtain approval for write-offs and file the relevant documents.
Reports on outstanding levies, history of payments and age analysis obtained from the Financial Controller, must be reviewed monthly to establish non-paying and under-declaring enterprises. For zero or nil declarations received for longer than 3 months a letter should be sent to the levypayer requesting reason for such a declaration.
Reconciliation.The Revenue Accountant must print the debtors aged analysis monthly. The report must be analysed for capturing errors and other discrepancies. Business that have not submitted and/or have not paid must be highlighted for action as mentioned above. The Revenue Accountant will ensure that all receipts captured have updated the debtors' balances correctly and any unallocated receipts are allocated. After appropriate action has been taken, the report is given to the Assistant Director Finance for approval before the debtor module is closed for the month. After the ledger has been updated, a reconciliation between the debtors ledger and the ledger debtors control account needs to be done by the Revenue Accountant. The reconciliation will contain the following:
The Financial Controller in the Levies Section should ensure that relevant journal entries are processed in instances where:
Update of Information: A form should be completed by the enterprise in respect of a change in physical and postal address.
The above procedures should be constantly up-dated in terms of relevant legislation.
Except where work, approved by the Council either specially or generally, is to be undertaken on behalf of a third party where the full costs are to be recovered from the persons or Cost Centres concerned, no expenditure shall be incurred unless provision therefore has been made in the Capital or Operating budgets, provided that in the case of an emergency, any proposed expenditure not provided for in the budget, shall be authorised by the Municipal Manager or his/her delegate after consultation with the Finance Portfolio shall:
The Chief Financial Officer submitting any voucher for payment by the Municipal Manager or his/her delegate shall be responsible for the accuracy of the amount to be paid and shall ensure that:
No capital expenditure shall be incurred on any project unless:
Operating Income and Expenditure
No saving on an amount budgeted for a specific purpose may be applied to meet expenditure for another purpose without the approval of the Council on the recommendation of the Finance Portfolio and the Municipal Manager or his/her delegate; and
Should a Head of a Department have reason to believe that any budgetary provision is or will be insufficient, or that estimated income is unlikely to be received, he/she shall forthwith report to the Municipal Manager or his/her delegate for consideration by the Council. The reasons for the excess expenditure (or shortfall in income) shall be stated and any reductions that can be affected in order to meet the excess shall be indicated. Should no equivalent reductions be possible, the matter shall be considered by the Council on the recommendation of the Finance Portfolio and the Municipal Manager or his/her delegate.