2013_14 IDP Review.pdf - KZN Development Planning

9. FINANCIAL VIABILITY AND MANAGEMENTThe draft Budget for 2013/14 financial year has been prepared, aligned andintegrated into the draft 2013/14 IDP Review. The budget below also containsindicative figures for 2014/15 and 2015/16 and revised budget for 2012/13.The municipal income for 2012/13 was R 551,848,326.00 and it hasincreased to R 496,331,518.00 for 2013/14 financial year; and thedecrease was due to less allocation in terms of grants from Nationaland Provincial government;The expenditure for 2012/13 was R 550,901,756.00 and it will bedecreasing to R 496,331,518.00 for 2013/14 financial year;The budget for operational programmes for 2012/13 was R92,548,880.00 and it will be increasing to R 108,770,475 financialyear; and the increase is necessitated by the fact that themunicipality is inteanding to improve service delivery therebydeveloping the communities; and The budget for capital projects for 2012/13 was R 196,447,000.00and it has decreased to R 186,505,000.00 for 2013/14 financial year.9.1SWOT ANALYSISSTRENGHTS Sound financial managementpolicies, procedures and practice inplace; Preparation of sound monthlyreporting and reconciliations andensuring adherence to the policies;WEAKNESSESNon-adherence to financial policies andprocedures by user departments.(SCM,Budget etc); Decentralisation of receipt of thedocuments (i.e. invoices, statements.)which might result in unaccounteddocuments; andMaintaining good audit outcome forthe past five years;High rate of indigence. inheritance ofuncollectable debts from uThukela WaterTaking over of the entire billing andcustomer care function fromuThukela Water; andFully capacitated finance staff andhave fully enrolled on MFMPprogramme.OPPORTUNITIES Improvement of revenue collectionthrough innovative debt collectionTHREATSDependency on grants and subsidiesDraft 2013/14 IDP Review Page 141Prepared by Umzinyathi District Municipality22 March 2013