On par with revenue, expenditure

On reaching the half-year mark of its 2021/22 financial year, Polokwane Municipality managed to collect 57% of its projected revenue as well as 50% of the expenditure that was budgeted for according to figures reflected in the municipality’s draft adjustment budget that was recently tabled by Mayor John Mpe.

The municipality collected R2.7b of its approved budget of R4.8b and spent R1.8b of the R3.7b that was available to spend on operational purposes by January 31.

Payments for only 40% (R451m) of the money set aside for capital projects of the budgeted amount of R1.1b were made at the half-year mark although some work were completed but in the process of payment.

The municipality’s outstanding trade creditors amounts to R104m and the cash book balance was R163m as on January 31.

The municipality owed R405m on loans and the acting municipal manager, Ramakuntwane Selepe certified that the local authority was able to meet all of its loan installments on time.

In terms of the cost savings regulations that were effective from July 1, 2019 municipalities were required to monitor certain categories of expenditure with an objective to contain costs and in this respect, the municipality has performed satisfactorily with a total saving of R61.3m of the budgeted amount of R91.6m.

For catering, R469 149 was spent, saving R410 051, while R1.03m was spent on travel agencies and visas, reflecting a saving of R1.2m.

Covid-19 also affected travel and subsistence and only R154 854 of the budgeted amount of R3.05m was spent. An amount of R58.3m was spent on consultants and professional fees, resulting in a saving of R47.1m, while advertising, publicity and marketing costs were reduced to R4.2m, effecting a considerable saving of R10.2m.

Overtime is still a matter of concern and R27.3m of the budgeted amount was spent, leaving a saving of R666 605.