Emthanjeni (NC073)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 0.0 77.6 53.0
Capital Expenditure to Total Expenditure 10-20% 4.1 24.3 12.5
Remuneration to Total Operating Expenditure 25-40% 40.7 43.2 31.1
Budget Implementation: Capital Expenditure 95-100% 133.5 152.9 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 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 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 R282.9M R663.6M R380.7M 134.6%
Operating Expenditure R279.5M R588.1M R308.5M 110.4%
Net Surplus / Deficit R3.4M R75.6M R72.2M 2 135.7%
Capital Transfers R16.7M R-0.9M R-17.6M -105.4%
Net Surplus / Deficit - After Capital Transfers R20.1M R74.7M R54.6M 271.5%

Capital Expenditure

The municipality implemented 133.5 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 11.3% 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 74.5% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R18.7M R25.0M R6.3M 33.5%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 73.1%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R30.1M R-253.7M R283.8M -942.6%
Cash Flow from Investing Activities R-18.7M R-27.1M R8.4M 44.8%
Cash Flow from Financing Activities R2.9M R0.0M R2.9M -101.6%
Net Cash Flow R14.3M R-280.9M R295.1M -2 070.2%

Debtors Ageing

The municipality has a total outstanding debtors balance of R196.8M 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 R0.0M R0.7M R0.4M R10.3M R11.4M R0.0M R0.0M
Commercial R0.0M R2.1M R0.8M R9.2M R12.2M R0.0M R0.0M
Households R0.0M R7.1M R4.4M R161.7M R173.2M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R0.0M R2.3M R1.9M R46.3M R50.5M R0.0M R0.0M
Electricity R0.0M R4.4M R1.6M R20.9M R26.8M R0.0M R0.0M
Property Rates R0.0M R1.5M R0.7M R57.9M R60.1M R0.0M R0.0M
Waste Water Management R0.0M R1.1M R0.8M R26.3M R28.3M R0.0M R0.0M
Waste Management R0.0M R0.6M R0.4M R13.4M R14.3M R0.0M R0.0M
Interest on Arrear Debtor Accounts R0.0M R0.0M R0.0M R9.4M R9.4M R0.0M R0.0M
Other R0.0M R0.1M R0.1M R7.2M R7.4M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R92.6M with total outstanding more than 90 days of R81.5M(88.0%).

Description Current 30 Days 60 Days Over 90 Days Total
Bulk Electricity R9.5M R0.2M R0.4M R73.1M R83.2M
Bulk Water R0.0M R0.0M R0.0M R1.1M R1.1M
Trade Creditors R0.6M R0.2M R0.1M R3.1M R4.0M
Auditor-General R0.0M R0.0M R0.1M R4.2M R4.3M


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.