7.4.11 ANNUAL FINANCIAL STATEMENTS 2013/14 The municipality produced in-house GRAP compliant Annual financial statements during the 2013/14 financial year accompanied with a GRAP compliant asset register. The finance team, under leadership of the Chief Financial Officer (CFO) has developed a AFS process plan which will be strictly followed during the preparation of the 2014/15 Annual financial statements. To curb the re-occurrence of audit findings, an audit action plan has been developed with timelines to complete all issues raised. It should be noted that even though the audit action plan is managed by the finance department, not all issues raised by the Auditor General (AG) relates to this department, therefore consorted work effort is required. 7.4.12 RATIO ANALYSES 2013/14 Indicator Target Implications of No. Indicator explained Results name / Norm results This is used to assess the level of Capital Expenditure to Total Capital Expenditure, which indicates the Expenditure 10% - 1 prioritisation of expenditure towards 16% to Total 20% current operations versus future Expenditure capacity in terms of Municipal Services. This ratio reflects the collection period. Net Debtor Days refers to the Net Debtors average number of days required to 148 2 30 days This is due to Days receive payment from Consumers for days of bills/invoices issued to them for the credit control services. policy. Annual 40. 5% The Ratio indicates the collection rate; 3 collection 95% (incl. i.e. level of payments. rate rates) The Ratio indicates the Municipality's As seen from the Cash / Cost ability to meet at least its monthly results above this Coverage fixed operating commitments from is based on the Ratio (Excl. cash and short-term investment 1 - 3 0 4 fact that billed Unspent without collecting any additional Months month revenue is not Conditional revenue, during that month. collected and the Grants) The Ratio is adjusted for Unspent municipality has Conditional Grants as the cash is not
7.4.11 ANNUAL FINANCIAL STATEMENTS 2013/14 The municipality produced in-house GRAP compliant Annual financial statements during the 2013/14 financial year accompanied with a GRAP compliant asset register. The finance team, under leadership of the Chief Financial Officer (CFO) has developed a AFS process plan which will be strictly followed during the preparation of the 2014/15 Annual financial statements. To curb the re-occurrence of audit findings, an audit action plan has been developed with timelines to complete all issues raised. It should be noted that even though the audit action plan is managed by the finance department, not all issues raised by the Auditor General (AG) relates to this department, therefore consorted work effort is required. 7.4.12 RATIO ANALYSES 2013/14 No. Indicator name Indicator explained Target / Norm Results Implications of results 1 Capital Expenditure to Total Expenditure This is used to assess the level of Capital Expenditure to Total Expenditure, which indicates the prioritisation of expenditure towards current operations versus future capacity in terms of Municipal Services. 10% - 20% 16% 2 Net Debtors Days This ratio reflects the collection period. Net Debtor Days refers to the average number of days required to receive payment from Consumers for bills/invoices issued to them for services. 30 days 148 days This is due to of the credit control policy. 3 Annual collection rate The Ratio indicates the collection rate; i.e. level of payments. 95% 40. 5% (incl. rates) 4 Cash / Cost Coverage Ratio (Excl. Unspent Conditional Grants) The Ratio indicates the Municipality's ability to meet at least its monthly fixed operating commitments from cash and short-term investment without collecting any additional revenue, during that month. The Ratio is adjusted for Unspent Conditional Grants as the cash is not 1 - 3 Months 0 month As seen from the results above this is based on the fact that billed revenue is not collected and the municipality has
2015-16-Draft-IDP.docx