Consolidated IYM Executive ReportJune 2013

PRESENTATION COVERAGE CONTENT

1. Summary Report on Compliance

2. The Overall Budget Summary - WC Province

3. Conclusion and End

SUMMARY REPORT: COMPLIANCE

Overall Level of compliance on due date = 97.7%

The level of compliance improve from 81.7% in July 2012 to 97.7% in June 2013

The compliance rate improved from 7 municipalities at the start of the financial year to 21 municipalities achieving full compliance in June 2013

LEVEL OF COMPLIANCE - MONTHLY REPORT SUBMITTED 

Detail Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun 13

5 Main forms 96.7% 96.7% 96.0% 98.0% 96.0% 100.0% 100.0% 98.0% 99.3% 100% 100% 100%

Quality Certificate 80.0% 73.0% 83.3% 83.3% 96.7% 93.3% 93.0% 90.0% 96.7% 96.7% 100% 96.7%

C-Schedules 46.7% 50.0% 60.0% 56.7% 80.0% 86.7% 80.0% 93.3% 90.0% 90.0% 96.7% 96.7%

FMR 33.0% 33.0% 46.7% 56.7% 60.0% 60.0% 60.0% 73.3% 66.7% 83.3% 96.7 83.3%

Overall 81.7% 81.0% 85.0% 87.0% 90.7% 93.7% 93.0% 94.0% 94.7% 96.0% 98.0% 97.7

THE OVERALL SUMMARY FOR WC: OPERATING

Description

R thousandsOriginal Budget

Adjusted Budget

Q1 Sept Actual

Q2 Dec Actual

Q3 Mar Actual

M12 June Actual

Q4 June Actual

YTD Actual YTD %Remaining

BudgetFinancial PerformanceProperty rates 8 103 354 8 113 641 3 092 138 1 664 392 1 619 952 592 651 1 690 638 8 067 119 99.43 46 521

Serv ice charges 18 204 879 18 224 511 4 798 030 4 151 447 4 471 300 1 452 017 4 350 314 17 771 090 97.51 453 420

Inv estment rev enue 410 770 411 439 86 935 80 802 117 338 63 004 176 768 461 843 112.25 (50 404)

Transfers recognised - operational 4 314 107 4 427 782 1 159 248 1 200 819 662 584 186 399 821 698 3 844 349 86.82 583 433

Other ow n rev enue 3 808 330 3 794 841 1 042 606 1 068 993 1 099 003 594 523 918 412 4 129 013 108.81 (334 172)

Total Revenue (excluding capital transfers and contributions) 34 841 439 34 972 214 10 178 956 8 166 453 7 970 175 2 888 593 7 957 831 34 273 415 98.00 698 799 Employ ee costs 11 149 269 11 049 135 2 311 295 2 832 864 2 749 480 873 136 2 572 312 10 465 951 94.72 583 185

Remuneration of councillors 315 902 305 834 69 339 70 612 80 821 25 514 76 184 296 956 97.10 8 879

Depreciation & asset impairment 2 480 840 2 676 681 474 715 655 302 661 623 153 315 617 626 2 409 266 90.01 267 415

Finance charges 1 107 426 1 092 308 185 703 271 893 210 467 158 024 320 888 988 951 90.54 103 357

Materials and bulk purchases 9 916 237 9 902 515 2 488 375 2 090 424 2 001 709 852 401 2 233 816 8 814 324 89.01 1 088 190

Transfers and grants 243 245 349 995 54 178 70 746 64 924 22 782 77 846 267 695 76.49 82 300

Other ex penditure 10 429 838 10 578 599 1 916 740 2 506 882 2 277 970 1 203 163 3 043 898 9 745 490 92.12 833 109

Total Expenditure 35 642 758 35 955 067 7 500 346 8 498 723 8 046 993 3 288 335 8 942 571 32 988 633 91.75 2 966 435 Surplus/(Deficit) (801 319) (982 853) 2 678 610 (332 270) (76 817) (399 742) (984 740) 1 284 782 -130.72 (2 267 636)

Western Cape Summary - Table C1 Schedule Quarterly Budget Statement Summary for the month ended 30 June 2013

Budget year 2012/13

• The previous slide indicates that in aggregate municipalities realised 98% of the operating revenue and operating spending of 91.75% .

• Areas of low performance for operating revenue are:- Transfers recognise – operational (86.87% of R4.31 billion)- Interest Earned (82% of R294.9 million)- Fines (74.36% of R209 million)- Gains on the disposal of PPE (54.30% of 83.89 million)- Cederberg,  Kannaland,  Swellendam,  and  CKD  and  Laingsburg  realised  less  than  90%  of 

total budgeted revenue which has a serious impact on the cash flow of the municipality.

• Areas of low performance for operating expenditure are:- Employee Related Costs – 94.72% of R11.05 bil budget, ie R583 mil under. (CoCT R472 mil)- Bulk purchases (89.01% of R8.81 billion) due to accrual accounting.- Transfers and grants (76.49% of R350 million).

OVERALL SUMMARY FOR WC: CAPITAL

Many municipalities however indicated that the capital expenditure will increase with the finalisation of the year-end procedures and outstanding transactions.

The main reason provided for the under spending of the capital budget is mainly due to delays in environmental impact assessment, procurement challenges and funding. 

Description

R thousandsOriginal Budget

Adjusted Budget

Q1 Sept Actual

Q2 Dec Actual

Q3 Mar Actual

M12 June Actual

Q4 June Actual

YTD Actual YTD %Remaining

BudgetCapital expenditure & funds sourcesCapital expenditure 8 063 878 8 504 512 811 664 1 644 132 1 302 044 1 856 074 3 343 565 7 101 405 83.50 1 403 107 Transfers recognised - capital 4 244 228 4 760 724 493 180 1 019 029 677 106 1 110 680 1 899 145 4 088 459 85.88 672 265

Public contributions & donations 112 229 58 309 8 886 10 255 13 793 5 150 13 833 46 766 80.20 11 543

Borrow ing 2 326 480 2 364 900 217 255 408 582 395 957 460 324 895 555 1 917 349 81.08 447 551

Internally generated funds 1 380 940 1 320 579 92 346 206 266 215 189 279 919 535 033 1 048 833 79.42 271 746

Total sources of capital funds 8 063 878 8 504 512 811 666 1 644 132 1 302 044 1 856 074 3 343 565 7 101 407 83.50 1 403 105 -

Western Cape Summary - Table C1 Schedule Quarterly Budget Statement Summary for the month ended 30 June 2013

Budget year 2012/13

OVERALL SUMMARY FOR WC: CAPITAL

MunicipalityOriginalBudget

AdjustedBudget

ActualsYTD %

( DC5 ) Central Karoo ( Medium ) 211 30 14.1

( DC3 ) Overberg ( Medium ) 14 938 1 794 446 24.9

( WC041 ) Kannaland ( Medium ) 21 665 35 731 15 306 42.8

( WC012 ) Cederberg ( Low ) 56 616 83 163 46 094 55.4

( WC051 ) Laingsburg ( Medium ) 16 638 16 638 9 866 59.3

( WC045 ) Oudtshoorn ( Medium ) 65 269 70 577 42 322 60.0

( WC034 ) Swellendam ( Low ) 58 685 58 685 37 608 64.1

( WC047 ) Bitou ( Medium ) 46 476 59 375 38 755 65.3

( WC014 ) Saldanha Bay ( High ) 197 937 196 544 136 702 69.6

( WC053 ) Beaufort West ( Medium ) 40 787 72 836 51 485 70.7

( DC2 ) Cape Winelands DM ( Medium ) 11 102 11 194 7 946 71.0

( WC042 ) Hessequa ( Medium ) 48 915 48 114 34 285 71.3

( WC023 ) Drakenstein ( High ) 277 652 319 382 233 980 73.3

( WC044 ) George ( High ) 150 922 153 373 114 523 74.7

( WC024 ) Stellenbosch ( High ) 189 044 197 811 148 501 75.1

( WC025 ) Breede Valley ( High ) 90 347 137 817 106 578 77.3

( WC032 ) Overstrand ( High ) 169 043 167 501 140 379 83.8

( WC031 ) Theewaterskloof ( Medium ) 76 078 97 519 81 761 83.8

( CPT ) Cape Town ( High ) 5 926 610 6 221 809 5 307 898 85.3

( WC026 ) Langeberg ( Medium ) 49 712 58 788 50 537 86.0

( WC015 ) Swartland ( Medium ) 86 848 86 848 75 829 87.3

( DC4 ) Eden ( Medium ) 1 635 935 840 89.8

( WC033 ) Cape Agulhas ( Low ) 30 406 30 009 27 653 92.1

( WC043 ) Mossel Bay ( High ) 123 861 130 153 123 749 95.1

( WC013 ) Bergrivier ( Medium ) 25 023 19 334 18 620 96.3

( DC1 ) West Coast ( Medium ) 45 766 35 066 34 282 97.8

( WC048 ) Knysna ( Medium ) 71 083 70 130 70 559 100.6

( WC052 ) Prince Albert ( Medium ) 8 702 8 702 8 831 101.5

( WC022 ) Witzenberg ( Low ) 74 943 74 943 87 614 116.9

( WC011 ) Matzikama ( Medium ) 87 175 39 532 48 426 122.5

Total 8 063 878 8 504 514 7 101 405 83.5%

Western Cape Capex as at 30 June 2013

OVERALL SUMMARY – WC: CASH FLOWS

Aggregated Cash flows from Operations is positive at R4.49 bil (biggest from CoCT) and below the YTD 

budget. 

Aggregated Cash flows from Investing is negative at R4.80 bil as capital payments (Capex) exceeded receipts 

from disposals, debtors, investments .

Cash from Financing also positive (pmnts < receipts) meaning repayment of borrowings less than new

borrowings (ST or LT) and is below budget or planning. This can be attributed to most municipalities delay 

the take of borrowing to save finance costs.

All municipalities reported positive cash balances except 2, however some municipalities with positive 

balances have commitments against it (e.g. grants and creditors outstanding). 

Description

R thousandsOriginal Budget

Adjusted Budget

Q1 Sept Actual

Q2 Dec Actual

Q3 Mar Actual

M12 June Actual

Q4 June Actual

YTD Actual YTD %Remaining

BudgetCash flowsNet cash from (used) operating 6 230 054 6 491 274 717 698 1 307 654 2 799 679 (554 907) (337 037) 4 487 993 69.14 2 003 281

Net cash from (used) inv esting (7 507 095) (7 969 165) (1 058 032) (1 084 191) (768 600) (498 391) (1 889 494) (4 800 316) 60.24 (3 168 849)

Net cash from (used) financing 2 051 868 2 475 406 (52 690) (111 564) 2 375 950 199 130 239 956 2 451 653 99.04 23 754

Cash/cash equivalents at the year end 6 888 528 9 781 825 7 873 572 7 985 471 12 392 500 10 405 926 10 405 926 10 405 926 106.38 (624 101)

Western Cape Summary - Table C1 Schedule Quarterly Budget Statement Summary for the month ended 30 June 2013

Budget year 2012/13

OVERALL SUMMARY - WC: DEBTORS & CREDITORS

The total outstanding debtors for more than 90 days amounts to R5.53 billion and it equates to 

69.3 per cent (69.4% at the end of May 2013) of the total aggregated outstanding debtors. 

Overdue Creditors are being monitored but mainly consist of disputes and queries.

An Area of concern is where muni defaulted on an arrangement with Eskom and is R15.8 million 

in arrears.

Description

R thousandsOriginal Budget

Adjusted Budget

Q1 Sept Actual

Q2 Dec Actual

Q3 Mar Actual

M12 June Actual

Q4 June Actual

YTD Actual YTD %Remaining

BudgetDebtors & creditors analysis 0-30 Days % 31-60 Days % 61-90 Days % Over 90 Days % Total %

Debtors Age AnalysisWater 510 185 13.8 123 053 3.3 128 610 3.5 2 923 714 79.3 3 685 562 46.3

Electricity 877 272 72.6 76 301 6.3 19 446 1.6 235 526 19.5 1 208 545 15.2

Property Rates 476 341 24.1 84 876 4.3 74 443 3.8 1 344 904 67.9 1 980 564 24.9

RSC Lev ies - - - - - - - - - -

Other 43 484 4.0 4 897 .4 24 723 2.3 1 020 195 93.3 1 093 299 13.7

Total By Revenue Source 1 907 282 23.9 289 127 3.6 247 222 3.1 5 524 340 69.3 7 967 970 100.0Creditors Age AnalysisTotal Creditors 1 176 106 97.07 9 136 0.75 5 575 0.46 20 766 1.71 1 211 582 100

Western Cape Summary - Table C1 Schedule Quarterly Budget Statement Summary for the month ended 30 June 2013

Budget year 2012/13

CONCLUSION AND WAY FORWARD

The End

Oversight over Budget Implementation making good progress, established framework, 

work-shopped with staff, MAF, Circulars & Quarterly letters, Detailed Reviews, etc.

Compliance is improving on monthly basis however the FMR constitutes the lowest 

compliance rate. (MAF, NCL’s, hands-on is paying off).

Muni’s submit progress reports on Capital Projects and also detail on overdue creditors.

Areas of concern - followed up with muni’s & progress tracked on all outstanding matters.

Hands-on support will be provided to muni’s i.t.o  in-year reporting where required.

Cash  Flow  Monitoring  remains  key  and  the  main  emphasis  in  the  current  economic 

conditions.