Portfolio report - Mangaung.co.za

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Debtors by Income Source - 31 July 2013 Water 917,523,440 41.46% Elec 443,970,653 20.06% Other 130,268,208 5.89% Housing 24,804,440 1.12% Sanitation 221,033,787 9.99% Rates 475,681,623 21.49% The following chart indicates the oustanding debtors by income source (excluding electricity owned to Centlec and other departmental charges as explained above). Debtors by Income Source - 31 July 2013 Water 917,523,440 41.46% Elec 443,970,653 20.06% Other 130,268,208 5.89% Housing 24,804,440 1.12% Sanitation 221,033,787 9.99% Rates 475,681,623 21.49% Outstanding Creditors report (Annexure B – Table SC4) The Creditors report has been prepared on the basis of the format required to be lodged electronically with National Treasury. This format provides an extended aged analysis, as well as an aged analysis by creditor type. The total trade creditors amounted to R196.532 million compared to an amount of R317.903 million in June 2013. The net increase is in trade creditors that decreased with R136.679 million and bulk purchases of electricity which increased with R15.307 million. 10
The following chart compares this month’s results with the previous financial year. Aged Creditor Analysis 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 – Bulk Electricity PAYE deductions Pensions / Retirement deductions Trade Creditors Other 2012/13 Budget Year 2013/14 Key performance indicators (Annexure B – Table SC2) The table refers to the agreed objectives as contained within the Restructuring Grant conditions and the actual percentages achieved. Investment Portfolio (Annexure B – Table SC5) The table indicates the status of the investment portfolio and detail of the instruments of where the funds are invested, which amounts to R573.488 million as at 31 July 2013 against R429.308 million at 30 June 2013. 4. FINANCIAL IMPLICATIONS The report for the period ending 31 July 2013 indicates various financial risks which require monitoring: Achievement of the operating expenditure and revenue budget; Achievement of the capital expenditure budget and The management of our cash flow on a daily basis. As at the end of July 2013 the operating revenue (excluding capital grants) and expenditure actual represented 10.16% and 6.90%, respectively of the annual budget. The outcome reflects a variance of 1.83% (favourable) and 1.43% (favourable) respectively, when compared to the target of 8.33%. However, considering the under collection of debtors, outstanding creditors and under spending on capital projects and operating expenditure and the equitable share received in advance, expenditure has to be restrained to ensure a positive cash flow The actual year to date capital expenditure until 31 July 2013 represents only 2.03% when compared to the benchmark projection of 8.33%, a variance of 6.3% for the year. 5. KEY JULY 2013 PERFORMANCE (FINANCIAL) INDICATORS The outcome in terms of the performance indicators is as outlined on the Supporting Table SC2 of the report pack. The various ‘Debtors’ ratios are also a cause for concern and are impacted by the size of the debtor’s book. A major bad debt write-off exercise was approved by Council after year end, but not yet affected in the debtor’s book, which will influence the ratio’s outlook/performance in the 2013/14 budget year. 11
Page 1 and 2: 13 AUGUST 2013 THE CITY MANAGER THE
Page 3 and 4: Other revenue (R57.183 million) unf
Page 5 and 6: The following chart compares the ac
Page 7 and 8: The following chart compares the ye
Page 9: Cash Flow Statement (CFS) (Annexure
Page 14 and 15: Explanation of legal requirements A
Page 16 and 17: ANNEXURE B MANGAUNG C SCHEDULE MONT
Page 18 and 19: MAN Mangaung - Table C1 Consolidate
Page 24 and 25: Expenditure by Vote - Vote 1 - City
Page 28 and 29: Capital expenditure - Municipal Vot
Page 32 and 33: MAN Mangaung - Supporting Table SC2

Portfolio report - Mangaung.co.za

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