Bitou (WC047)

Municipal Performance Review - 2021 Q4

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Key Financial Ratios

Description Norm Municipality Provincial Average National Average
Collection Ratio > 95% 1.9 28.3 53.0
Capital Expenditure to Total Expenditure 10-20% 8.2 11.3 12.5
Remuneration to Total Operating Expenditure 25-40% 32.5 34.7 31.1
Budget Implementation: Capital Expenditure 95-100% 85.6 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 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 R755.1M R726.0M R-29.1M -3.9%
Operating Expenditure R753.6M R817.9M R64.3M 8.5%
Net Surplus / Deficit R1.5M R-91.9M R-93.4M -6 342.0%
Capital Transfers R33.5M R32.9M R-0.7M -2.1%
Net Surplus / Deficit - After Capital Transfers R35.0M R-59.1M R-94.1M -268.7%

Capital Expenditure

The municipality implemented 85.6 % of the planned capital expenditure as at the end of the 4th Quarter. The Net Margin of -8.1% 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 37.6% of the total capital expenditure YTD.

Description Planned Actual YTD Variance Variance %
Capital Expenditure R84.8M R72.6M R-12.2M -14.4%

Source of Funding

Internally generated funds made the highest contribution to capital expenditure for the YTD and accounted for 44.0%

Cash Flow

Description Planned YTD Actual Variance Variance %
Cash Flow from Operating Activities R124.8M R28.3M R96.5M -77.4%
Cash Flow from Investing Activities R-76.0M R-0.8M R-75.2M -99.0%
Cash Flow from Financing Activities R-8.5M R0.0M R-8.6M -100.6%
Net Cash Flow R40.3M R27.5M R12.7M -31.6%

Debtors Ageing

The municipality has a total outstanding debtors balance of R269.5M 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 R0.3M R0.2M R0.2M R0.8M R1.5M R0.0M R0.0M
Commercial R3.9M R0.5M R0.5M R4.8M R9.8M R0.0M R0.0M
Households R26.2M R9.4M R8.4M R214.2M R258.2M R0.0M R0.0M

Debtors Ageing by Income Source

Description Current 30 Days 60 Days Over 90 Days Total Bad Debt Impairment
Water R4.9M R2.6M R2.4M R69.7M R79.5M R0.0M R0.0M
Electricity R9.3M R1.3M R0.7M R14.6M R25.9M R0.0M R0.0M
Property Rates R8.0M R2.4M R2.2M R36.0M R48.6M R0.0M R0.0M
Waste Water Management R4.7M R2.4M R2.2M R72.1M R81.5M R0.0M R0.0M
Waste Management R2.8M R1.4M R1.3M R42.9M R48.5M R0.0M R0.0M

Creditors Ageing

The municipality has a total outstanding creditors balance of R4.7M with total outstanding more than 90 days of R0.1M(2.0%).

Description Current 30 Days 60 Days Over 90 Days Total
Trade Creditors R3.9M R0.6M R0.1M R0.1M R4.7M


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.