Ephraim Mogale (LIM471)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 99.5 84.1 53.0
Capital Expenditure to Total Expenditure 10-20% 28.1 29.2 12.5
Remuneration to Total Operating Expenditure 25-40% 38.5 37.1 31.1
Budget Implementation: Capital Expenditure 95-100% 84.8 99.8 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 above the norm. Maintaining capital expenditure at this rate could result in liquidity risk.
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 R320.4M R309.6M R-10.8M -3.4%
Operating Expenditure R319.6M R187.8M R-131.8M -41.2%
Net Surplus / Deficit R0.9M R121.9M R121.0M 13 966.9%
Capital Transfers R33.2M R0.0M R-33.2M -100.0%
Net Surplus / Deficit - After Capital Transfers R34.1M R121.9M R87.8M 257.3%

Capital Expenditure

The municipality implemented 84.8 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 39.4% 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 52.5% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R86.7M R73.5M R-13.2M -15.2%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 70.4%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R89.2M R358.3M R-269.1M 301.7%
Cash Flow from Investing Activities R-72.1M R-80.4M R8.4M 11.6%
Cash Flow from Financing Activities R0.0M R0.0M R0.0M -Inf
Net Cash Flow R17.1M R277.9M R-260.7M 1 521.2%

Debtors Ageing

The municipality has a total outstanding debtors balance of R0.0M 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

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment

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.