Revenue & Debt
Debt Write-Off and Impairment
Approved debt write-offs and the provision for impairment of receivables.
Why write-offs and impairment are tightly governed
Writing off debt and impairing receivables are necessary but sensitive: under the MFMA write-offs require proper delegation and council approval, and GRAP requires receivables to be carried at recoverable value. Tracking approved write-offs alongside the impairment provision keeps both the authorisation trail and the carrying value defensible. AuditPro Core links each write-off to its approval and each provision to its ageing basis so the numbers withstand audit.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Gross Debtors
R 2.31 bn
before impairment
Impairment Provision
R 1.48 bn
64% of gross
Write-Offs Approved
R 212 m
council-approved
Net Recoverable
R 830 m
carrying value
Impairment Provision Trend (R m)
Write-Off and Impairment by Service
| Service | Write-Off (R m) | Provision (R m) |
|---|---|---|
| Water | 78 | 512 |
| Electricity | 41 | 388 |
| Rates | 52 | 340 |
| Refuse & Sanitation | 41 | 240 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Impairment under GRAP
Receivables must be measured at the amount expected to be recovered. The impairment provision reduces the gross debtor balance to that recoverable value, reflecting realistic collectability rather than billed amounts.
Write-off authorisation
Actually removing debt from the books requires the correct delegated approval, and often council resolution, with evidence that collection was reasonably pursued. Unauthorised write-offs are a control failure.
Provision versus write-off
Impairment is an accounting estimate that can reverse; a write-off is a final removal of the debt. Confusing the two distorts both the receivables balance and the credit-control picture.
Recovery effort evidence
Before debt is written off, reasonable recovery steps must be shown. The evidence of that effort is what makes a write-off lawful rather than a concealment of poor collection.
How AuditPro Core Bridges the Gap
- Approval traceability: each write-off links to its delegation and council resolution.
- Ageing-based provision: the impairment provision is built from debtor ageing so its basis is auditable.
- Exception workflow: write-offs above a threshold or lacking recovery evidence are held for review.
- Audit-ready trail: write-off approvals and provision calculations export into the receivables audit file.
Key Takeaways
- Impairment carries receivables at recoverable, not billed, value.
- Write-offs require the correct delegation and evidence of recovery effort.
- A provision is reversible; a write-off is final, and the two must not be confused.
- Documented recovery effort is what makes a write-off lawful.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.