Kai !Garib (NC082)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 76.6 77.6 53.0
Capital Expenditure to Total Expenditure 10-20% 11.1 24.3 12.5
Remuneration to Total Operating Expenditure 25-40% 60.4 43.2 31.1
Budget Implementation: Capital Expenditure 95-100% 64.2 152.9 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 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 R275.8M R221.1M R-54.6M -19.8%
Operating Expenditure R277.4M R159.9M R-117.6M -42.4%
Net Surplus / Deficit R-1.7M R61.3M R62.9M -3 745.3%
Capital Transfers R27.3M R9.7M R-17.6M -64.6%
Net Surplus / Deficit - After Capital Transfers R25.6M R70.9M R45.3M 176.8%

Capital Expenditure

The municipality implemented 64.2 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 32.1% as well as the funding sources influenced the municipality’s ability to spend the planned capital.

The highest capital expenditure occurred in the 1st quarter and represents 49.2% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R31.2M R20.0M R-11.2M -35.8%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 98.1%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R292.0M R151.7M R140.3M -48.0%
Cash Flow from Investing Activities R-0.4M R0.0M R-0.4M -109.1%
Cash Flow from Financing Activities R0.1M R-0.1M R0.2M -272.6%
Net Cash Flow R291.7M R151.6M R140.1M -48.0%

Debtors Ageing

The municipality has a total outstanding debtors balance of R232.5M 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 R0.8M R0.6M R0.5M R29.9M R31.7M R0.0M R0.0M
Commercial R1.0M R0.2M R0.2M R3.8M R5.2M R0.0M R0.0M
Households R6.7M R3.2M R2.9M R182.7M R195.6M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R1.7M R1.2M R1.0M R67.3M R71.2M R0.0M R0.0M
Electricity R4.3M R1.3M R1.0M R22.0M R28.5M R0.0M R0.0M
Property Rates R0.3M R0.6M R0.5M R57.1M R58.5M R0.0M R0.0M
Waste Water Management R1.3M R0.5M R0.5M R30.4M R32.8M R0.0M R0.0M
Waste Management R0.7M R0.4M R0.4M R31.0M R32.6M R0.0M R0.0M
Other R0.1M R0.1M R0.1M R8.7M R9.0M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R478.2M with total outstanding more than 90 days of R472.6M(98.8%).

Description Current 30 Days 60 Days Over 90 Days Total
Bulk Electricity R0.0M R0.0M R0.0M R379.7M R379.7M
Trade Creditors R3.8M R0.6M R1.0M R69.6M R74.9M
Auditor-General R0.0M R0.0M R0.0M R22.2M R22.2M
Other R0.2M R0.1M R0.1M R1.2M R1.5M


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.