Our budgeting team considers the following aspects when calculating the Community Service Fee (CSF):
We evaluate actual expense trends from the previous year based on individual cost items. Depending upon the operational plan, we decide whether or not to include them again in the following year’s budget. In addition, our hands-on experience from daily site operations gives further insight into various aspects of accurate budgeting and cost savings.
Resource allocation on site
We periodically review resources on site to find ways of improving performance by employing new technology and operational methods based on international best practices. This continuing development in the management of our resources has a substantial and positive effect on the budget.
Service provider contracts
By regularly reviewing service provider contracts, we can evaluate key areas of improvement such as performance and cost savings. This helps us to determine future budgets and predict expenses.
Capital assets evaluation (maintenance, repair and replacements)
Capital assets that are no longer under manufacturer’s warranty are regularly reviewed for major maintenance or replacement. Essential equipment,such as sewage pumping stations and / or similar items, supports the overall infrastructure of the community. So we make allowance in our budget for the upkeep of these items, thus ensuring the community has sufficient funds available during times of emergency and / or when replacements are required.
Provision for doubtful debts
This amount allows for the setting aside of a small portion of CFS collections as provision in case certain receivables are required to be written off in the future. This practice conforms to the basic accounting principle of Conservatism and we take this step to strengthen the financial position of the community.
Surplus / deficit adjustment from previous years
Finally, any surpluses or deficits from previous years are brought into consideration during the determination of the CSF rate for the current year. This allows us to maintain our funds at an optimum level to cater for every eventuality and serve the community to the highest standards.
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