Uthungulu (DC28)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 153.6 23.8 53.0
Capital Expenditure to Total Expenditure 10-20% 18.5 13.7 12.5
Remuneration to Total Operating Expenditure 25-40% 23.9 30.1 31.1
Budget Implementation: Capital Expenditure 95-100% 80.9 95.8 80.3

Municipality achieved a collection ratio above the norm. This has a positive impact on liquidity and all efforts should be maintained to further improve liquidity and sustainability. The Capital Expenditure to Total Expenditure ratio is within the norm.
The Budget Implementation for Capital Expenditure is below the acceptable norm. This is an indication of possible inefficiencies in the budgeting process, capital project implementation and management and cash management.

Financial Performance

The municipality achieved an operating deficit (excluding Capital Transfers) which increases the dependency on subsidies and grants in order to remain sustainable.

Description Planned Actual YTD Variance Variance %
Operating Revenue R785.8M R754.2M R-31.6M -4.0%
Operating Expenditure R912.2M R1,010.5M R98.3M 10.8%
Net Surplus / Deficit R-126.4M R-256.3M R-129.9M 102.7%
Capital Transfers R249.5M R253.2M R3.8M 1.5%
Net Surplus / Deficit - After Capital Transfers R123.0M R-3.0M R-126.1M -102.5%

Capital Expenditure

The municipality implemented 80.9 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of -0.4% as well as the funding sources influenced the municipality’s ability to spend the planned capital.

The highest capital expenditure occurred in the 3rd quarter and represents 34.7% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R283.4M R229.2M R-54.2M -19.1%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 94.0%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R3,060.7M R2,196.0M R864.6M -28.3%
Cash Flow from Investing Activities R-283.4M R-229.2M R-54.2M -19.1%
Cash Flow from Financing Activities R0.0M R-1.0M R1.0M -Inf
Net Cash Flow R2,777.3M R1,965.9M R811.4M -29.2%

Debtors Ageing

The municipality has a total outstanding debtors balance of R86.3M with total bad debt written off of R8.7M and impairment of debt amounts to R41.3M.

Debtors Ageing by Customer Group

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Organs of State R2.3M R1.1M R0.2M R6.0M R9.6M R0.0M R0.0M
Commercial R3.3M R0.9M R0.4M R8.2M R12.8M R0.0M R1.3M
Households R3.6M R1.0M R1.4M R57.8M R63.8M R8.7M R40.1M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R5.8M R1.8M R1.3M R43.8M R52.7M R8.7M R33.7M
Waste Water Management R0.7M R0.4M R0.3M R10.9M R12.4M R0.0M R5.1M
Interest on Arrear Debtor Accounts R0.3M R0.3M R0.3M R10.5M R11.3M R0.0M R1.3M
Other R2.5M R0.5M R0.1M R6.8M R10.0M R0.0M R1.3M

Creditors Ageing

The municipality has a total outstanding creditors balance of R382.6M with total outstanding more than 90 days of R248.8M(65.0%).

Description Current 30 Days 60 Days Over 90 Days Total
Bulk Water R1.0M R1.1M R0.8M R61.9M R64.8M
Trade Creditors R41.6M R41.7M R38.5M R185.2M R307.0M
Other R4.9M R0.7M R3.4M R1.8M R10.8M


Disclaimer: The analyis was caried out on the Quarter 4 Reports obtained from National Treasury and they are publically available. We do not provide any assurance on the accuracy of the data, reporting or analysis.