George (WC044)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 266.7 28.3 53.0
Capital Expenditure to Total Expenditure 10-20% 8.9 11.3 12.5
Remuneration to Total Operating Expenditure 25-40% 28.6 34.7 31.1
Budget Implementation: Capital Expenditure 95-100% 66.2 69.5 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 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 R2,341.8M R1,980.6M R-361.1M -15.4%
Operating Expenditure R2,318.6M R1,910.2M R-408.4M -17.6%
Net Surplus / Deficit R23.1M R70.4M R47.3M 204.5%
Capital Transfers R114.8M R66.9M R-48.0M -41.8%
Net Surplus / Deficit - After Capital Transfers R138.0M R137.3M R-0.6M -0.5%

Capital Expenditure

The municipality implemented 66.2 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of 6.9% 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 51.1% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R282.3M R186.9M R-95.5M -33.8%

Source of Funding

Internally generated funds made the highest contribution to capital expenditure for the YTD and accounted for 41.7%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R2,336.1M R3,472.7M R-1,136.6M 48.7%
Cash Flow from Investing Activities R0.7M R0.1M R0.6M -85.2%
Cash Flow from Financing Activities R162.1M R-39.3M R201.4M -124.2%
Net Cash Flow R2,498.8M R3,433.5M R-934.6M 37.4%

Debtors Ageing

The municipality has a total outstanding debtors balance of R349.2M with total bad debt written off of R22.3M 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 R6.3M R1.7M R1.4M R2.2M R11.5M R0.0M R0.0M
Commercial R44.5M R2.5M R1.2M R13.2M R61.3M R0.0M R0.0M
Households R60.2M R11.4M R9.8M R194.1M R275.6M R22.3M R0.0M
Other R-0.3M R0.0M R0.0M R1.0M R0.8M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R22.4M R5.1M R4.5M R103.0M R135.0M R17.0M R0.0M
Electricity R41.2M R2.5M R1.7M R8.7M R54.0M R0.2M R0.0M
Property Rates R32.7M R3.1M R2.2M R24.3M R62.3M R1.3M R0.0M
Waste Water Management R14.7M R2.3M R1.9M R26.4M R45.2M R1.8M R0.0M
Waste Management R12.9M R2.0M R1.7M R22.4M R38.9M R1.6M R0.0M
Property Rental Debtors R0.0M R0.0M R0.0M R0.1M R0.2M R0.0M R0.0M
Interest on Arrear Debtor Accounts R0.6M R0.1M R0.1M R11.4M R12.3M R0.5M R0.0M
Other R-13.8M R0.5M R0.3M R14.3M R1.4M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R99.0M with total outstanding more than 90 days of R0.0M(0.0%).

Description Current 30 Days 60 Days Over 90 Days Total
Bulk Electricity R68.9M R0.0M R0.0M R0.0M R68.9M
PAYE deductions R7.7M R0.0M R0.0M R0.0M R7.7M
VAT (output less input) R6.4M R0.0M R0.0M R0.0M R6.4M
Trade Creditors R15.9M R0.1M R0.1M R0.0M R16.1M


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.