Portfolio report - Mangaung.co.za

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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 - 30 April 2013 Water 943,965,822 43.22% Elec 444,409,976 20.35% Other 117,283,902 5.37% Housing 24,063,505 1.10% Sanitation 215,357,632 9.86% Rates 439,083,431 20.10% 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. Total creditors amounted to R230.145 million compared to an amount of R186.539 million in March 2013. The increase is in trade creditors that increased with R42.754 million and bulk purchases of electricity which increases with R850 000. The following chart compares this month’s results with the previous financial year. R'000 160,000 Aged Creditors Analysis 140,000 120,000 100,000 80,000 60,000 40,000 20,000 – Bulk Electricity Bulk Water PAYE VAT (output Pensions / Loan Trade Creditors Auditor General Other deductions less input) Retirement repayments deductions 2011/12 66,410 – – 3,330 – – 91,305 40 – Budget Year 2012/13 79,101 – – – – – 151,043 – – 10
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 R581.625 million as at 30 April 2013 against R542.175 million at 31 March 2013. 4. FINANCIAL IMPLICATIONS The report for the period ending 30 April 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 April 2013 the operating revenue (excluding capital grants) and expenditure actual represented 76.96% and 59.73%, respectively of the annual budget, against a benchmark of 83.33%.- a variance of 6.37% (unfavourable) and 23.6% (favourable) respectively, when compared to the target of 83.33%. However, considering the under collection of debtors, outstanding creditors and under spending on capital projects and operating expenditure and the equitable share and fuel levy received in advance, expenditure has to be restrained to ensure a positive cash flow. The actual year to date capital expenditure until 30 April 2013 represents 45.25% when compared to the projection of 83.33%, a variance of 38.08% for the period. The Council’s cash flow situation is a cause for concern if one looks at the outstanding creditors, the outstanding debtors, the under spending on operating as well as capital expenditure and the unfunded conditional grants. 5. KEY APRIL 2013 PERFORMANCE (FINANCIAL) INDICATORS The favourable result relating to the various source groups totalling revenue is having an impact on a number of indicators, which are based on total revenue. The under expenditure on the capital budget has also an additional influence on the indicators. The various ‘Debtors’ ratios are also a cause for concern. 6. INTERDEPARTMENTAL AND CLUSTER IMPACT This report is prepared to achieve MFMA compliance. 7. COMMENTS OF THE HEAD: LEGAL SERVICES The abovementioned report as such does not call for legal clarification. 8. IMPLICATIONS Human Resources Not applicable. Finances (budget and value for money) This report is an overview of the financial results for the period ended 30 April 2013, as well as any Operating and Capital Budget variances. Constitution and legal factors The implication of approval of this report is compliance to legislative requirements (Section 71 of the MFMA). Communication 11
Page 1 and 2: 13 MAY 2013 THE CITY MANAGER THE EX
Page 3 and 4: Depreciation (R37.595m) favourable,
Page 5 and 6: The following chart compares the ac
Page 7 and 8: The following chart compares the ye
Page 9: Outstanding Debtors report (Annexur
Page 14 and 15: The specific format for the report
Page 16 and 17: FS000 Mangaung - Contact Informatio
Page 18 and 19: FS000 Mangaung - Table C2 Consolida
Page 20 and 21: Expenditure - Standard Municipal go
Page 30 and 31: FS000 Mangaung - Supporting Table S

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