Moses Kotane (NW375)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 23.0 39.3 53.0
Capital Expenditure to Total Expenditure 10-20% 15.8 6.8 12.5
Remuneration to Total Operating Expenditure 25-40% 25.5 31.9 31.1
Budget Implementation: Capital Expenditure 95-100% 71.0 30.0 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 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 R965.8M R942.6M R-23.2M -2.4%
Operating Expenditure R917.0M R958.7M R41.7M 4.6%
Net Surplus / Deficit R48.8M R-16.1M R-64.9M -133.0%
Capital Transfers R252.9M R212.7M R-40.2M -15.9%
Net Surplus / Deficit - After Capital Transfers R301.7M R196.6M R-105.1M -34.8%

Capital Expenditure

The municipality implemented 71 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 20.9% 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 40.4% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R253.4M R179.9M R-73.5M -29.0%

Source of Funding

National Government made the highest contribution to capital expenditure for the YTD and accounted for 93.6%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R1.1M R312.7M R-311.6M 29 469.8%
Cash Flow from Investing Activities R-49.9M R-154.4M R104.5M 209.5%
Cash Flow from Financing Activities R0.0M R0.0M R0.0M -97.6%
Net Cash Flow R-48.8M R158.2M R-207.1M -424.1%

Debtors Ageing

The municipality has a total outstanding debtors balance of R1,501.1M with total bad debt written off of R13.3M 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 R18.9M R7.4M R10.4M R196.7M R233.5M R0.0M R0.0M
Commercial R29.3M R7.4M R6.1M R224.4M R267.1M R0.0M R0.0M
Households R39.4M R19.5M R18.9M R915.9M R993.8M R0.0M R0.0M
Other R0.2M R0.1M R0.1M R6.4M R6.7M R13.3M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R46.5M R20.3M R20.0M R736.5M R823.4M R0.0M R0.0M
Property Rates R23.8M R6.7M R6.9M R177.3M R214.8M R0.0M R0.0M
Waste Water Management R0.5M R0.2M R0.2M R10.6M R11.6M R0.0M R0.0M
Waste Management R2.1M R1.0M R1.2M R71.4M R75.7M R0.0M R0.0M
Interest on Arrear Debtor Accounts R14.0M R6.0M R6.9M R314.1M R341.0M R0.0M R0.0M
Other R0.8M R0.1M R0.2M R33.5M R34.6M R13.3M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R3.8M with total outstanding more than 90 days of R0.0M(0.0%).

Description Current 30 Days 60 Days Over 90 Days Total
Trade Creditors R3.8M R0.0M R0.0M R0.0M R3.8M


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.