King Cetshwayo District Municipality

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King Cetshwayo District Municipality
  • King Cetshwayo District Municipality
  • Year : Jun 2021
3 Tokens
USD 300.00
Summary

KCDM’s strong financial profile is considered a key credit strength. With capex largely met through capital grants, debt has been low, with a net ungeared balance sheet maintained to date. With only R32m of debt at FY20, gross debt to total income registered at 3% (FY19: 4.5%). Similarly, debt serviceability ratios remain very strong, on the back of continued conservative funding policies, although funding concentration is noted.

Additional Information

The municipality has resumed with unqualified audit opinions for FY19 and FY20, which suggests an ongoing improvement in financial management. Fruitless and irregular expenditure has generally been negligible, although the Auditor General did express some concern as to the increase in the latter in the most recent financial year, as well as the markedly higher water loss ratio reported, thus indicating the need for improvements of maintenance and replacement capex for water and sanitation.

Related Publication

King Cetshwayo District Municipality (2015-06)

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