1. Financial update : Mr. M NGOBENI

2. COLLECTION AND DSO TRENDS
The trends are a clear indication that most customers are having cash flow challenges
High Debtors Days outstanding affects RW’s working capital(cash flow) and credit risk matrix
Decreasing trend – an indication that we collect less and less cash every month

3. Debt management process
In terms of late payments, the following measures have been implemented by Rand Water:
The dedicated In-house Strategic Customer Partnership Management division is assisting with customer engagement regarding long outstanding debt as well as regular defaulters for late payments.
Rand Water always encourages customers to enter into payment arrangement when they foresee a possibility of a default.
On a monthly basis, a report of all arrears owed by each municipality together with its aging is submitted to National Treasury and the Department of Water and Sanitation as per Section 41(2) (b) of the MFMA. National Treasury and CoGTA always assist in monitoring payment arrangements from the defaulting Municipalities.
The process of limiting or discontinuing water when customers default is being used rigorously as a means of debt collection.

4. Debt management process (cont.)
The Rand Water Credit Management Policy contains provisions relating to: Risk Profiling for all customers including Municipalities:
Risk profile is determined on the basis of the credit risk of each customer as well as the default rate per customer
Risk
Security
Form of Security
Very High
No credit (pre-paid account)
High
Medium
Up to 3 months consumption
Cross company surety/Bank guarantee
Low risk
Cash/Bank guarantee

5. Finance Shared Services (FSS)

6. Thank you