City of Tshwane (TSH)
Municipal Performance Review - 2021 Q4
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Key Financial Ratios
| Description | Norm | Municipality | Provincial Average | National Average |
|---|---|---|---|---|
| Collection Ratio | > 95% | 101.7 | 73.9 | 53.0 |
| Capital Expenditure to Total Expenditure | 10-20% | 7.7 | 8.1 | 12.5 |
| Remuneration to Total Operating Expenditure | 25-40% | 35.5 | 26.9 | 31.1 |
| Budget Implementation: Capital Expenditure | 95-100% | 77.8 | 79.1 | 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 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 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 | R37,304.6M | R34,834.6M | R-2,470.0M | -6.6% |
| Operating Expenditure | R37,478.5M | R35,923.0M | R-1,555.5M | -4.2% |
| Net Surplus / Deficit | R-174.0M | R-1,088.4M | R-914.5M | 525.7% |
| Capital Transfers | R2,152.4M | R1,799.7M | R-352.7M | -16.4% |
| Net Surplus / Deficit - After Capital Transfers | R1,978.4M | R711.3M | R-1,267.2M | -64.0% |
Capital Expenditure
The municipality implemented 77.8 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 2.0% 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 48.5% of the total capital expenditure YTD.
| Description | Planned | Actual YTD | Variance | Variance % |
|---|---|---|---|---|
| Capital Expenditure | R3,860.1M | R3,005.0M | R-855.1M | -22.2% |
Source of Funding
National Government made the highest contribution to capital expenditure for the YTD and accounted for 52.0%
Cash Flow
| Description | Planned | YTD Actual | Variance | Variance % |
|---|---|---|---|---|
| Cash Flow from Operating Activities | R24,906.4M | R37,416.8M | R-12,510.3M | 50.2% |
| Cash Flow from Investing Activities | R-4,724.9M | R0.2M | R-4,725.1M | -100.0% |
| Cash Flow from Financing Activities | R-700.6M | R2.1M | R-702.7M | -100.3% |
| Net Cash Flow | R19,480.9M | R37,419.1M | R-17,938.1M | 92.1% |
Debtors Ageing
The municipality has a total outstanding debtors balance of R16,292.9M with total bad debt written off of R2,795.2M 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 | R201.2M | R53.1M | R37.9M | R556.0M | R848.2M | R33.0M | R0.0M |
| Commercial | R1,208.9M | R126.2M | R168.2M | R3,786.9M | R5,290.3M | R141.4M | R0.0M |
| Households | R1,504.5M | R180.0M | R273.9M | R8,196.1M | R10,154.4M | R2,620.8M | R0.0M |
Debtors Ageing by Income Source
| Description | Current | 30 Days | 60 Days | Over 90 Days | Total | Bad Debt | Impairment |
|---|---|---|---|---|---|---|---|
| Water | R637.4M | R67.6M | R90.5M | R1,920.4M | R2,715.9M | R1,547.3M | R0.0M |
| Electricity | R887.0M | R88.4M | R132.6M | R2,034.8M | R3,142.9M | R22.0M | R0.0M |
| Property Rates | R720.2M | R91.8M | R105.1M | R2,700.2M | R3,617.3M | R8.2M | R0.0M |
| Waste Water Management | R146.1M | R9.5M | R21.5M | R367.1M | R544.1M | R276.9M | R0.0M |
| Waste Management | R145.0M | R22.0M | R32.5M | R832.0M | R1,031.5M | R15.0M | R0.0M |
| Property Rental Debtors | R11.8M | R1.0M | R2.3M | R437.6M | R452.6M | R19.4M | R0.0M |
| Interest on Arrear Debtor Accounts | R186.9M | R57.6M | R65.4M | R2,814.1M | R3,124.1M | R662.5M | R0.0M |
| Other | R180.2M | R21.2M | R30.1M | R1,432.9M | R1,664.5M | R243.9M | R0.0M |
Creditors Ageing
The municipality has a total outstanding creditors balance of R3,171.2M with total outstanding more than 90 days of R0.0M(0.0%).
| Description | Current | 30 Days | 60 Days | Over 90 Days | Total |
|---|---|---|---|---|---|
| Bulk Electricity | R838.7M | R0.0M | R0.0M | R0.0M | R838.7M |
| Bulk Water | R296.1M | R0.0M | R0.0M | R0.0M | R296.1M |
| PAYE deductions | R195.2M | R0.0M | R0.0M | R0.0M | R195.2M |
| Pensions / Retirement | R153.3M | R0.0M | R0.0M | R0.0M | R153.3M |
| Loan repayments | R890.3M | R0.0M | R0.0M | R0.0M | R890.3M |
| Trade Creditors | R803.4M | R0.0M | R0.0M | R0.0M | R803.4M |
| Auditor-General | R4.0M | R0.0M | R0.0M | R0.0M | R4.0M |
| Other | R14.0M | R0.0M | R0.0M | R0.0M | R14.0M |
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.