Revenue & Debt
Billed vs Collected Revenue Gap
Monthly billing against actual cash collected, isolating the widening leakage in the revenue value chain.
Why the billing-to-cash gap is critical
The gap between what a municipality bills and what it actually collects is the clearest single indicator of revenue value-chain health and looming liquidity stress. A widening leakage erodes the cash needed for salaries, bulk purchases and debt service, and chronic under-collection undermines the going-concern basis the AGSA tests. AuditPro Core isolates monthly billing against cash receipts so management can pinpoint where in the chain revenue is being lost.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Billed YTD
R 1.74 bn
▲ 5.2% vs prior
Collected YTD
R 1.41 bn
81% collection
Collection Gap
R 330 m
▲ R 64 m
Norm Shortfall
14 pts
below 95% target
Billed vs collected (R m)
Monthly collection efficiency
| Month | Billed (R m) | Collected (R m) | Rate % |
|---|---|---|---|
| October | 295 | 236 | 80 |
| November | 290 | 232 | 80 |
| December | 294 | 234 | 80 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Billing is not revenue collected
Recognising billed revenue under GRAP does not put cash in the bank. The collection rate determines whether billed income ever becomes spendable funds.
Leakage compounds monthly
Each month of under-collection adds to the debtors book and to impairment. A small but persistent gap quickly becomes an unrecoverable arrears mountain.
The value chain has many leak points
Revenue is lost at metering, billing accuracy, indigent management and credit control. Isolating the gap by month and service exposes which link is failing.
How AuditPro Core Bridges the Gap
- Billing-to-cash reconciliation: monthly billed amounts are matched to bank receipts to compute true collection rates.
- Leakage isolation: the gap is broken down by service and period to localise where revenue is lost.
- Trend monitoring: continuous tracking flags a widening gap before it threatens liquidity.
- Drill-to-source: each variance traces to billing and receipting records for investigation.
Key Takeaways
- Billed revenue only matters once it converts to collected cash.
- A widening billing-to-collection gap is an early liquidity warning.
- Break the gap down by service and month to find the failing link.
- Persistent leakage inflates both the debtors book and required impairment.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.