uMhlathuze (KZN282)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 101.0 23.8 53.0
Capital Expenditure to Total Expenditure 10-20% 11.2 13.7 12.5
Remuneration to Total Operating Expenditure 25-40% 27.3 30.1 31.1
Budget Implementation: Capital Expenditure 95-100% 55.4 95.8 80.3

Municipality achieved a collection ratio above the norm. This has a positive impact on liquidity and all efforts should be maintained to further improve liquidity and sustainability. The Capital Expenditure to Total Expenditure ratio is within the norm.
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 R3,440.5M R3,522.4M R81.9M 2.4%
Operating Expenditure R3,603.7M R3,341.6M R-262.1M -7.3%
Net Surplus / Deficit R-163.3M R180.7M R344.0M -210.7%
Capital Transfers R197.2M R1.8M R-195.3M -99.1%
Net Surplus / Deficit - After Capital Transfers R33.9M R182.6M R148.7M 438.4%

Capital Expenditure

The municipality implemented 55.4 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 5.2% 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 44.7% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R762.7M R422.5M R-340.2M -44.6%

Source of Funding

Internally generated funds made the highest contribution to capital expenditure for the YTD and accounted for 53.0%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R3,524.1M R420.9M R3,103.2M -88.1%
Cash Flow from Investing Activities R-556.8M R104.1M R-660.9M -118.7%
Cash Flow from Financing Activities R-61.8M R89.3M R-151.1M -244.4%
Net Cash Flow R2,905.4M R614.2M R2,291.2M -78.9%

Debtors Ageing

The municipality has a total outstanding debtors balance of R702.6M 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 R78.8M R15.5M R13.5M R61.7M R169.5M R0.0M R0.0M
Commercial R158.5M R12.9M R2.3M R104.8M R278.5M R0.0M R0.0M
Households R70.3M R5.9M R6.9M R155.7M R238.9M R0.0M R0.0M
Other R1.8M R0.4M R0.7M R12.9M R15.8M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R90.5M R19.2M R17.1M R216.2M R343.0M R0.0M R0.0M
Electricity R166.0M R2.5M R1.7M R13.1M R183.3M R0.0M R0.0M
Property Rates R39.0M R3.1M R2.7M R38.2M R83.0M R0.0M R0.0M
Waste Water Management R8.5M R0.9M R0.9M R3.2M R13.5M R0.0M R0.0M
Waste Management R7.4M R0.8M R0.8M R7.4M R16.3M R0.0M R0.0M
Property Rental Debtors R0.7M R0.2M R0.4M R11.4M R12.8M R0.0M R0.0M
Interest on Arrear Debtor Accounts R0.6M R0.3M R0.2M R6.6M R7.6M R0.0M R0.0M
Other R-3.3M R7.8M R-0.4M R38.9M R43.1M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R196.3M with total outstanding more than 90 days of R1.1M(0.6%).

Description Current 30 Days 60 Days Over 90 Days Total
Bulk Electricity R118.8M R0.0M R0.0M R0.0M R118.8M
Bulk Water R15.0M R0.0M R0.0M R0.0M R15.0M
Trade Creditors R57.2M R0.0M R0.0M R1.1M R58.3M
Other R4.2M R0.0M R0.0M R0.0M R4.2M


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.