Sundays River Valley (EC106)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 0.0 77.3 53.0
Capital Expenditure to Total Expenditure 10-20% 86.5 23.7 12.5
Remuneration to Total Operating Expenditure 25-40% 47.6 40.1 31.1
Budget Implementation: Capital Expenditure 95-100% 3362.8 79.8 80.3

Municipality achieved a collection ratio below the norm. This has a negative impact on liquidity and all efforts should be directed to improve collections as this has a direct negative impact on liquidity and sustainability. The Capital Expenditure to Total Expenditure ratio is above the norm. Maintaining capital expenditure at this rate could result in liquidity risk.
The Budget Implementation for Capital Expenditure is above the acceptable norm. This is an indication of possible inefficiencies in the budgeting process, capital project management and budget control.

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 R221.6M R335.8M R114.2M 51.5%
Operating Expenditure R220.6M R221.1M R0.5M 0.2%
Net Surplus / Deficit R1.0M R114.7M R113.7M 10 982.1%
Capital Transfers R45.1M R60.5M R15.4M 34.1%
Net Surplus / Deficit - After Capital Transfers R46.2M R175.2M R129.0M 279.6%

Capital Expenditure

The municipality implemented 3362.8 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 52.2% 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 98.6% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R42.1M R1,415.1M R1,373.1M 3 262.8%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 72.0%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R40.1M R2.4M R37.7M -94.1%
Cash Flow from Investing Activities R-64.0M R0.0M R-64.0M -100.0%
Cash Flow from Financing Activities R0.0M R0.0M R0.0M -116.5%
Net Cash Flow R-23.9M R2.4M R-26.3M -109.9%

Debtors Ageing

The municipality has a total outstanding debtors balance of R164.4M 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 R2.9M R-0.4M R0.9M R31.3M R34.7M R0.0M R0.0M
Commercial R5.1M R-0.2M R0.6M R14.5M R20.2M R0.0M R0.0M
Households R6.7M R-0.1M R3.8M R97.9M R108.3M R0.0M R0.0M
Other R0.2M R0.0M R0.1M R0.9M R1.2M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R2.6M R-0.1M R1.3M R39.4M R43.1M R0.0M R0.0M
Electricity R4.1M R0.0M R0.5M R11.3M R15.9M R0.0M R0.0M
Property Rates R5.6M R-0.5M R2.2M R55.1M R62.5M R0.0M R0.0M
Waste Water Management R0.7M R0.0M R0.4M R9.3M R10.4M R0.0M R0.0M
Waste Management R1.2M R0.0M R0.7M R17.4M R19.3M R0.0M R0.0M
Interest on Arrear Debtor Accounts R0.7M R0.0M R0.3M R12.1M R13.2M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R25.3M with total outstanding more than 90 days of R14.1M(55.5%).

Description Current 30 Days 60 Days Over 90 Days Total
Bulk Electricity R2.4M R0.0M R0.0M R0.0M R2.4M
Trade Creditors R7.4M R1.4M R0.0M R12.4M R21.2M
Auditor-General R0.0M R0.0M R0.0M R1.7M R1.7M


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.