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

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Presentation on theme: "PILGAN Vanuatu (Shefa) and Kiribati sustainability analysis & LED initiatives."— 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 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)

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8 Kiribati Financial compliance and sustainability Revenue enhancement Debt management

9 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

10 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

11 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

12 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

13 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

14 Sustainability through LED initiatives 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

15 Tenkyu Tru Thank You Vinaka Vaka Levu Dhanyavaad Tangiu Tumas Ko Rabwa Kommol Tata


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