Mossel Bay (WC043)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 63.8 28.3 53.0
Capital Expenditure to Total Expenditure 10-20% 29.2 11.3 12.5
Remuneration to Total Operating Expenditure 25-40% 31.3 34.7 31.1
Budget Implementation: Capital Expenditure 95-100% 161.3 69.5 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 above the norm. Maintaining capital expenditure at this rate could result in liquidity risk.
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 R1,199.2M R1,215.4M R16.2M 1.4%
Operating Expenditure R1,289.9M R992.7M R-297.3M -23.0%
Net Surplus / Deficit R-90.7M R222.8M R313.5M -345.5%
Capital Transfers R110.4M R88.9M R-21.6M -19.5%
Net Surplus / Deficit - After Capital Transfers R19.7M R311.6M R292.0M 1 483.9%

Capital Expenditure

The municipality implemented 161.3 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 25.6% 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 60.3% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R253.6M R409.1M R155.5M 61.3%

Source of Funding

Internally generated funds made the highest contribution to capital expenditure for the YTD and accounted for 49.2%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R1,264.7M R599.5M R665.2M -52.6%
Cash Flow from Investing Activities R-74.2M R-61.4M R-12.8M -17.2%
Cash Flow from Financing Activities R41.0M R0.3M R40.7M -99.3%
Net Cash Flow R1,231.5M R538.3M R693.2M -56.3%

Debtors Ageing

The municipality has a total outstanding debtors balance of R156.1M 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 R1.0M R0.1M R0.1M R0.6M R1.8M R0.0M R0.0M
Commercial R22.0M R2.9M R1.4M R8.1M R34.5M R0.0M R0.0M
Households R34.9M R7.7M R5.6M R63.8M R111.9M R0.0M R0.0M
Other R1.9M R0.3M R0.3M R5.4M R7.9M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R11.2M R3.0M R2.0M R23.2M R39.5M R0.0M R0.0M
Electricity R24.2M R2.7M R1.1M R5.6M R33.7M R0.0M R0.0M
Property Rates R10.4M R1.0M R0.6M R6.8M R18.7M R0.0M R0.0M
Waste Water Management R6.0M R1.8M R1.5M R17.6M R26.9M R0.0M R0.0M
Waste Management R6.1M R1.5M R1.2M R13.4M R22.2M R0.0M R0.0M
Property Rental Debtors R0.0M R0.0M R0.0M R0.2M R0.2M R0.0M R0.0M
Other R1.8M R0.9M R1.0M R11.1M R14.9M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R85.9M with total outstanding more than 90 days of R0.0M(0.0%).

Description Current 30 Days 60 Days Over 90 Days Total
Bulk Electricity R31.1M R0.0M R0.0M R0.0M R31.1M
VAT (output less input) R1.7M R0.0M R0.0M R0.0M R1.7M
Trade Creditors R53.1M R0.0M R0.0M R0.0M R53.1M


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.