Z F Mgcawu (DC8)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% NaN 77.6 53.0
Capital Expenditure to Total Expenditure 10-20% 1.1 24.3 12.5
Remuneration to Total Operating Expenditure 25-40% 73.7 43.2 31.1
Budget Implementation: Capital Expenditure 95-100% 77.6 152.9 80.3

The Capital Expenditure to Total Expenditure ratio is below the norm. This indicates possible issues with prioritisation of capital expenditure that could negatively impact future service delivery.
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 surplus (excluding Capital Transfers) which indicates that the municipality is less dependent on subsidies and grants in order to remain sustainable.

Description Planned Actual YTD Variance Variance %
Operating Revenue R84.0M R75.4M R-8.6M -10.2%
Operating Expenditure R82.0M R74.0M R-8.0M -9.8%
Net Surplus / Deficit R2.0M R1.4M R-0.5M -27.3%
Capital Transfers R0.3M R0.0M R-0.3M -100.0%
Net Surplus / Deficit - After Capital Transfers R2.3M R1.4M R-0.9M -38.3%

Capital Expenditure

The municipality implemented 77.6 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 1.9% 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 90.6% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R1.1M R0.8M R-0.2M -22.4%

Source of Funding

Internally generated funds made the highest contribution to capital expenditure for the YTD and accounted for 90.3%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R82.8M R3.2M R79.6M -96.2%
Cash Flow from Investing Activities R-1.1M R0.0M R-1.1M -100.0%
Cash Flow from Financing Activities R0.0M R0.0M R0.0M NA
Net Cash Flow R81.7M R3.2M R78.6M -96.1%

Debtors Ageing

The municipality has a total outstanding debtors balance of R0.3M with total bad debt written off of R0.0M and impairment of debt amounts to R0.0M.

Debtors Ageing by Customer Group

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Organs of State R-0.5M R0.0M R0.0M R0.6M R0.1M R0.0M R0.0M
Other R0.0M R0.0M R0.0M R0.1M R0.1M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Other R-0.5M R0.0M R0.0M R0.8M R0.3M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R15.9M with total outstanding more than 90 days of R13.5M(84.6%).

Description Current 30 Days 60 Days Over 90 Days Total
PAYE deductions R0.0M R0.0M R0.0M R2.3M R2.3M
Pensions / Retirement R0.0M R0.0M R0.0M R1.9M R1.9M
Loan repayments R0.0M R0.0M R0.0M R6.0M R6.0M
Trade Creditors R0.7M R0.1M R0.0M R0.0M R0.7M
Auditor-General R1.7M R0.0M R0.0M R0.0M R1.7M
Other R0.0M R0.0M R0.0M R3.3M R3.3M


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.