Jozini (KZN272)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 0.3 23.8 53.0
Capital Expenditure to Total Expenditure 10-20% 15.3 13.7 12.5
Remuneration to Total Operating Expenditure 25-40% 36.1 30.1 31.1
Budget Implementation: Capital Expenditure 95-100% 110.5 95.8 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 within the norm.
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 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 R298.6M R300.9M R2.3M 0.8%
Operating Expenditure R291.5M R310.3M R18.8M 6.5%
Net Surplus / Deficit R7.1M R-9.4M R-16.5M -231.8%
Capital Transfers R56.2M R53.5M R-2.7M -4.8%
Net Surplus / Deficit - After Capital Transfers R63.3M R44.1M R-19.2M -30.4%

Capital Expenditure

The municipality implemented 110.5 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 14.7% 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 36.3% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R50.7M R56.0M R5.3M 10.5%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 87.8%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R79.9M R-88.9M R168.9M -211.3%
Cash Flow from Investing Activities R0.0M R0.0M R0.0M NA
Cash Flow from Financing Activities R0.4M R-0.1M R0.5M -116.2%
Net Cash Flow R80.3M R-89.0M R169.3M -210.8%

Debtors Ageing

The municipality has a total outstanding debtors balance of R165.8M 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 R1.5M R0.2M R2.1M R65.0M R68.9M R0.0M R0.0M
Commercial R2.6M R0.3M R1.3M R32.7M R36.8M R0.0M R0.0M
Households R1.5M R0.5M R1.8M R51.5M R55.3M R0.0M R0.0M
Other R0.7M R0.0M R0.3M R3.7M R4.7M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Property Rates R2.5M R0.0M R0.9M R46.6M R50.0M R0.0M R0.0M
Waste Management R0.6M R0.0M R0.3M R14.2M R15.0M R0.0M R0.0M
Property Rental Debtors R0.3M R0.0M R0.1M R0.2M R0.6M R0.0M R0.0M
Interest on Arrear Debtor Accounts R-0.4M R0.0M R0.0M R2.0M R1.7M R0.0M R0.0M
Other R3.2M R1.1M R4.2M R89.9M R98.4M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R0.2M with total outstanding more than 90 days of R0.0M(0.0%).

Description Current 30 Days 60 Days Over 90 Days Total
Trade Creditors R0.1M R0.0M R0.0M R0.0M R0.1M
Other R0.1M R0.0M R0.0M R0.0M R0.1M


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.