Mogale City (GT481)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 0.0 73.9 53.0
Capital Expenditure to Total Expenditure 10-20% 7.0 8.1 12.5
Remuneration to Total Operating Expenditure 25-40% 28.7 26.9 31.1
Budget Implementation: Capital Expenditure 95-100% 83.7 79.1 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 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 R3,082.0M R3,195.8M R113.8M 3.7%
Operating Expenditure R3,228.8M R2,876.9M R-351.9M -10.9%
Net Surplus / Deficit R-146.8M R318.8M R465.7M -317.1%
Capital Transfers R256.2M R224.3M R-31.9M -12.4%
Net Surplus / Deficit - After Capital Transfers R109.3M R543.1M R433.8M 396.8%

Capital Expenditure

The municipality implemented 83.7 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 17.0% 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 31.3% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R258.8M R216.5M R-42.3M -16.3%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 82.9%

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 R73.0M R-73.0M Inf
Cash Flow from Financing Activities R0.0M R-16.2M R16.2M -Inf
Net Cash Flow R0.0M R56.8M R-56.8M Inf

Debtors Ageing

The municipality has a total outstanding debtors balance of R2,565.9M 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-3.2M R5.6M R0.5M R61.4M R64.3M R0.0M R0.0M
Commercial R61.1M R18.8M R15.0M R656.5M R751.5M R0.0M R0.0M
Households R73.0M R30.0M R26.4M R1,294.5M R1,424.0M R0.0M R0.0M
Other R236.2M R0.7M R56.9M R32.4M R326.1M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R13.9M R15.3M R8.2M R242.4M R279.7M R0.0M R0.0M
Electricity R71.5M R11.5M R7.6M R125.1M R215.7M R0.0M R0.0M
Property Rates R-6.2M R6.6M R8.1M R470.0M R478.5M R0.0M R0.0M
Waste Water Management R21.5M R8.4M R8.0M R290.0M R327.9M R0.0M R0.0M
Waste Management R12.2M R4.5M R4.8M R288.6M R310.1M R0.0M R0.0M
Property Rental Debtors R0.3M R0.1M R0.2M R6.8M R7.3M R0.0M R0.0M
Interest on Arrear Debtor Accounts R5.3M R2.6M R2.5M R190.4M R200.8M R0.0M R0.0M
Other R248.7M R6.2M R59.4M R431.7M R746.0M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R677.3M with total outstanding more than 90 days of R92.8M(13.7%).

Description Current 30 Days 60 Days Over 90 Days Total
Bulk Electricity R113.7M R135.1M R63.1M R77.7M R389.6M
Bulk Water R36.0M R3.5M R0.0M R0.0M R39.5M
PAYE deductions R10.5M R0.0M R0.0M R0.0M R10.5M
Pensions / Retirement R11.2M R0.0M R0.0M R0.0M R11.2M
Loan repayments R5.1M R0.0M R0.0M R0.0M R5.1M
Trade Creditors R155.5M R38.2M R11.4M R15.1M R220.2M
Auditor-General R0.1M R0.0M R0.0M R0.0M R0.1M
Other R0.9M R0.1M R0.1M R0.0M R1.2M


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.