Emfuleni

Local municipality in Sedibeng, Gauteng

Population 721 663
967.6 square kilometres
745.8 people per square kilometre
Mayor/Executive Mayor
  • Mr MS Mofokeng (Simon Mahole)
Municipal Manager
  • Mr Yunus Chamda (acting)
Deputy Mayor/Executive Mayor
Not Available
Chief Financial Officer
  • Mr Brendon Scholtz (acting)

Contact Details last updated: September 2017

Financial Performance

Audit outcomes

2016
Unqualified - Emphasis of Matter items
2015
Unqualified - Emphasis of Matter items
2014
Unqualified - Emphasis of Matter items
2013
Unqualified - Emphasis of Matter items
Did you know?

There are 5 types of audit outcomes.


Unqualified Opinion

No Findings

The Auditor-General can state, without reservation, that the financial statements of the municipality fairly represent the financial position of the municipality and are in line with Generally Recognised Accounting Practices (GRAP)


Unqualified Opinion

Emphasis of Matter Items

Same as an Unqualified Opinion with no findings, but the Auditor-General wants to bring something particular to the attention of the reader.


Qualified Opinion

The Auditor-General expresses reservations about the fair presentation of the financial statements. There is some departure from the Generally Recognised Accounting Practices (GRAP) but is not sufficiently serious as to warrant an adverse opinion or disclaimer of opinion.


Adverse Opinion

This is expressed when the auditor concludes that the annual financial statements do not present the municipality’s financial position, results of operations and cash flows in line with Generally Recognised Accounting Practices (GRAP).


Disclaimer of Opinion

The Auditor-General does not have all of the underlying documentation needed to determine an opinion. For example, the lack of underlying documentation and the amounts in question may be so great so that it is impossible to give any opinion on all.


An Outstanding Opinion

Means that the Auditor General raised queries with the municipality and therefore has not submitted another opinion.

Cash Balance July 2015 - June 2016

R 76 456 106
Cash balance at the end of the financial year.
good Positive balance
bad Negative balance
Did you know?

A municipality's cash balance refers to the money it has in the bank that it can access easily. If a municipality's bank account is in overdraft it has a negative cash balance. Negative cash balances are a sign of serious financial management problems. A municipality should have enough cash on hand from month to month so that it can pay salaries, suppliers and so on.

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Formula:

Cash Coverage July 2015 - June 2016

6 days
Months of operating expenses can be paid for with the cash available.
good More than 3 months
average Between 1 and 3 months
bad Less than 1 month
Did you know?

Cash coverage measures the length of time, in months, that a municipality could manage to pay for its day-to-day expenses using just its cash reserves. So, if a municipality had to rely on its cash reserves to pay all short-term bills, how long could it last? Ideally, a municipality should have at least three months' of cash cover.

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Formula:

Spending of Operating Budget July 2015 - June 2016

8.5% overspent
Difference between budgeted operating expenditure and what was actually spent.
good Up to 5%
average Between 5% and 15%
bad More than 15%
Did you know?

This indicator is about how much more a municipalty spent on its operating expenses, than was planned and budgeted for. It is important that a municipality controls its day-to-day expenses in order to avoid cash shortages. If a municipality sigificantly overspends its operating budget this is a sign of poor operating controls or something more sinister.

Overspending by up to 5 percent is usually condoned; overspending in excess of 15 percent is a sign of high risk.

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Spending of Capital Budget July 2015 - June 2016

26.64% underspent
Difference between budgeted capital expenditure and what was actually spent.
good Up to 5%
average Between 5% and 15%
bad More than 15%
Did you know?

Capital spending includes spending on infrastructure projects like new water pipes or building a library. Underspending on a capital budget can lead to an under-delivery of basic services. This indicator looks at the percentage by which actual spending falls short of the budget for capital expenses. Persistent underspending may be due to underresourced municipalities which cannot manage large projects on time.

Municipalities should aim to spend at least 95 percent of their capital budgets. Failure to spend even 85 percent is a clear warning sign.

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Spending on Repairs and Maintenance July 2015 - June 2016

0.49%
Spending on Repairs and Maintenance as a percentage of Property, Plant and Equipment.
good More than 8%
bad Less than 8%
Did you know?

Infrastructure must be maintained so that service delivery is not affected. This indicator looks at how much money was budgeted for repairs and maintenance, as a percentage of total fixed assets (property, plant and equipment). For every R10 spent on building/replacing infrastructure, R0.80 should be spent every year on repairs and maintenance.

This translates into a Repairs and Maintenance budget that should be 8 percent of the value of property, plant and equipment.

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Reference: Circular 71
Formula:

Fruitless and Wasteful Expenditure July 2014 - June 2015

8.19%
Unauthorised, Irregular, Fruitless and Wasteful Expenditure as a percentage of operating expenditure.
good 0%
bad More than 0%
Did you know?

Unauthorised expenditure means any spending that was not budgeted for or that is unrelated to the municpal department's function. An example is using municipal funds to pay for unbudgeted projects. Irregular expenditure is spending that goes against the relevant legislation, municipal policies or by-laws. An example is awarding a contract that did not go through tender procedures. Fruitless and wasteful expenditure concerns spending which was made in vain and would have been avoided had reasonable care been exercised. An example of such expenditure would include paying a deposit for a venue and not using it and losing the deposit.

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Reference: Circular 71
Formula:

Note: Since calling expenditures unauthorised, fruitless and wasteful or irregular can involve quite a lot of debate, the numbers used are the restated audited amounts 18 months after the financial year end - part of the Medium Term Revenue and Expenditure Framework.

Current Ratio July 2016 - June 2017 Quarter 4

1.12
The value of a municipality's short-term assets as a multiple of its short-term liabilities.
good More than 1.5
average Between 1 and 1.5
bad Less than 1
Did you know?

The current ratio compares the value of a municipality's short-term assets (cash, bank deposits, etc) compared with its short-term liabilities (creditors, loans due and so on). The higher the ratio, the better. The normal range of the current ratio is 1.5 to 2 (the municipality has assets more than 1.5 to 2 times its current debts). Anything less than that and the municipality may struggle to keep up with its payments.

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Reference: Circular 71
Formula:

Note: The quarterly summary looks at the state at the end of each quarter. If the monthly data is missing for the last month in the quarter, the previous month in that quarter. If all months are missing, that quarter is shown as blank.

Liquidity Ratio July 2016 - June 2017 Quarter 4

0.05
The municipality's immediate ability to pay its current liabilities
good More than 1
bad Less than 1
Did you know?

Liquidity ratios show the ability of a municipality to pay its current liabilities (monies it owes immediately such as rent and salaries) as they become due, and their long-term liabilities (such as loans) as they become current.

These ratios also show the level of cash the municipality has and / or the ability it has to turn other assets into cash to pay off liabilities and other current obligations.

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Formula:

Note: The quarterly summary looks at the state at the end of each quarter. If the monthly data is missing for the last month in the quarter, the previous month in that quarter. If all months are missing, that quarter is shown as blank.

Current Debtors Collection Rate July 2016 - June 2017 Quarter 4

56.49%
The percentage of new revenue (generated within the financial year) that a municipality actually collects
good 95% or more
bad Less than 95%
Did you know?

Municipalities don't manage to collect all of the money they earn through rates and service charges. This measure looks at the percentage of new revenue that a municipality collects. It is also referred to as the Current Debtors Collection Ratio.

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Formula:

Note: The quarterly summary looks at the state at the end of each quarter. If the monthly data is missing for the last month in the quarter, the previous month in that quarter. If all months are missing, that quarter is shown as blank.

Income

Where does Emfuleni get its money from?

1. Money Generated Locally July 2015 - June 2016

84.07%
From residents paying for water & electricity, rates, licenses & fines, and from interest and investments.
+

2. Money from National Government July 2015 - June 2016

15.93%
From the Equitable Share of taxes, and Grants from National Government.
Source:
Did you know?

The more a municipality is able to generate its own income, the more self-sufficient it is. Municipalities should not be too reliant on transfers and grants from other spheres of government.

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Where money comes from

Did you know?

This shows how much of a municipality's income it is able to generate itself (through property rates, service charges, etc), compared with how much it receives as transfers and grants from national government. The more a municipality is able to generate its own income, the more self-sufficient it is.

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Source:

Spending - How money is spent

Staff Wages and Salaries July 2015 - June 2016

16.37%
Staff salaries and wages as a percentage of operating expenditure.
within norms 25% to 40%
outside norms less than 25% or more than 40%
Did you know?

Employee-related costs are typically the largest portion of operating expenditure, but they should not grow so large that they threaten the sustainability of the operating budget.

The normal range for this indicator is between 25% - 40% of total operating expenditure. Municipalities must guard against spending too much on staff while also making sure they have the people they need to deliver services effectively.

Formula:

Contractor Services July 2015 - June 2016

2.05%
Costs of contractor services as a percentage of operating expenditure.
within norms up to 5%
outside norms more than 5%
Did you know?

Private contractors are sometimes needed for certain work, but they are usually more expensive than municipal staff. This should be kept to a minimum and efforts should be made to provide services in-house, where possible.

This measure is normally between 2 percent and 5 percent of total operating expenditure.

Formula:

What is Money Spent On?

Did you know?
Municipalities spend money on providing services and maintaining facilities for their residents.
Source:

Resources

Understanding Municipal Finance


Financial Reports

Read more about Local Government Finances and learn about how your money is spent.

Further Reading

Resources from the South African and international community.

Page generated: 2017-11-23 09:15:40.864448