1 / 15

PILGAN

PILGAN. Vanuatu ( Shefa ) and Kiribati sustainability analysis & LED initiatives. Shefa Financial sustainability analysis . Shefa financial sustainability focus areas : Revenue enhancement D ebtor management. Shefa Revenue Enhancement. Property tax – fixed rate vs unimproved capital

marvin
Download Presentation

PILGAN

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. PILGAN Vanuatu (Shefa) and Kiribati sustainability analysis & LED initiatives

  2. Shefa Financial sustainability analysis Shefa financial sustainability focus areas: • Revenue enhancement • Debtor management

  3. Shefa Revenue Enhancement • Property tax – fixed rate vs unimproved capital • Business licenses – reviewed / new by-laws • Sin Tax – Kava Bar (social costs) • Nuisance tax – small taxes too costly to collect • Benefit based tax – many initiatives were documented

  4. Shefa Debt collection • Invoicing - all by mid-Jan • Discounts for early pmts • Interest charged for late pmts • Demand notice • Amnesty - drafted by CLGF • Press releases - drafted by CLGF

  5. Impact Review • Analysis was done in November 2014 • Reviewed in February 2014 Easily achievable recommendations implemented: debt collection, compliance enhancement and introduction of some benefit based taxes via newly enacted by-laws.

  6. Shefa Impact • Revenue base of the council increased by about 20%. • Cashflow collection up 35% by Mid feb 2014. • Reduction of debt by about 40% • Strong action against illegal and unapproved submission • 3 such subdivisions have been given notice and asked to regularize the development(payment arrangements have been made)

  7. Kiribati • Financial compliance and sustainability • Revenue enhancement • Debt management

  8. Kiribati – Council Issues • Manual system • Incomplete rate payer records • No rate payer listing • No Debtor listing • No invoicing • No regular follow-ups • Lack of reconciliation's • Lack of compliance to accounting practices and tax laws

  9. Kiribati Financial Compliance • Segregation of duties (undetected error/fraud) • Cash collected to banking reconciliations • No financial information available • Total reliance on MIA • Lack of source documents

  10. Kiribati Tax compliance • New Value added Tax (VAT) and Excise tax laws passed by parliament with effect from 1/4/2014 • MIA, TUC and BTC unaware of these tax implications • Confusion between VAT and profit tax • General impression that councils are exempt from VAT

  11. Kiribati Action Plan • Compliance to law - awareness and training o VAT • MYOB and Billing system Implementation and training for TUC, BTC and KUC • MYOB Implementation and training for MIA • Server with 3 thin client computers for each institution • MOU with USP and KIT for continuous training on MYOB, LG financial management

  12. Other funding opportunities • A fully developed strategic plans (Plan, M&E & costing) for Shefa, Torba, Penama – Vanuatu; Funafuti council – Review; MIA & KUC – Kiribati as a marketing tool for funding. • Developed the concept paper for funding from Usaid under the climate change program – prospects of about USD500k. • KILGA will also be assisted for Usaid concept paper

  13. Sustainability through LEDinitiatives • Financial system can play a pivotal role in promoting LED • LED growth will enable councils to earn more revenues • LED growth will reduce the social cost • LED may reduce costs – outsourcing e.g. rubbish collectors • LED will contribute directly to the multiplier effect

  14. TenkyuTru • Thank You • VinakaVaka Levu • Dhanyavaad • TangiuTumas • KoRabwa • Kommol Tata

More Related