Nala (FS185)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 0.0 52.8 53.0
Capital Expenditure to Total Expenditure 10-20% 4.1 9.4 12.5
Remuneration to Total Operating Expenditure 25-40% 41.2 35.3 31.1
Budget Implementation: Capital Expenditure 95-100% 37.9 59.2 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 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 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 R535.5M R371.8M R-163.7M -30.6%
Operating Expenditure R508.1M R389.9M R-118.2M -23.3%
Net Surplus / Deficit R27.4M R-18.1M R-45.5M -166.0%
Capital Transfers R42.1M R-8.4M R-50.5M -120.0%
Net Surplus / Deficit - After Capital Transfers R69.4M R-26.5M R-95.9M -138.2%

Capital Expenditure

The municipality implemented 37.9 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of -7.1% as well as the funding sources influenced the municipality’s ability to spend the planned capital.

The highest capital expenditure occurred in the 4th quarter and represents 71.4% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R44.1M R16.7M R-27.3M -62.1%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 100.0%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R0.0M R0.0M R0.0M NA
Cash Flow from Investing Activities R0.0M R0.0M R0.0M -100.0%
Cash Flow from Financing Activities R-0.5M R0.0M R-0.6M -101.6%
Net Cash Flow R-0.6M R0.0M R-0.6M -101.6%

Debtors Ageing

The municipality has a total outstanding debtors balance of R886.4M with total bad debt written off of R0.0M and impairment of debt amounts to R6,853.3M.

Debtors Ageing by Customer Group

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Organs of State R3.1M R1.2M R1.0M R39.3M R44.6M R0.0M R13.5M
Commercial R5.6M R4.0M R3.2M R70.1M R82.9M R0.0M R399.3M
Households R12.6M R12.6M R12.4M R716.3M R753.9M R0.0M R6,438.5M
Other R0.2M R0.0M R0.0M R4.9M R5.1M R0.0M R2.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R6.0M R3.9M R4.3M R280.0M R294.3M R0.0M R2,477.1M
Electricity R5.2M R3.3M R2.5M R41.4M R52.3M R0.0M R218.2M
Property Rates R3.2M R1.6M R1.3M R50.1M R56.2M R0.0M R429.2M
Waste Water Management R2.8M R2.4M R2.3M R94.4M R101.8M R0.0M R847.6M
Waste Management R1.9M R1.7M R1.7M R106.7M R112.0M R0.0M R980.9M
Property Rental Debtors R0.0M R0.0M R0.0M R2.0M R2.0M R0.0M R0.6M
Interest on Arrear Debtor Accounts R0.0M R3.2M R3.1M R174.5M R180.8M R0.0M R1,205.1M
Other R2.4M R1.6M R1.5M R81.5M R87.1M R0.0M R694.5M

Creditors Ageing

The municipality has a total outstanding creditors balance of R0.0M with total outstanding more than 90 days of R0.0M(NA).

Description Current 30 Days 60 Days Over 90 Days Total


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.