DOCRRA Comments on the KDM 2021/22 Mid-Year Report

DOLPHIN COAST RESIDENTS & RATEPAYERS ASSOCIATION

DOCRRA has submitted the following comments to KDM regarding their 2021/22 Mid-Year Report, ending in December 2021:

For the six months to 31 December 2022, revenue is R34m behind budget, after adjusting for electricity billings only done in January. This negative variance arises mostly from rates being down on budget by R29m, as well as lower than expected electricity revenue.

On the expenditure side, the operational spending is R82m lower than budget, after adjusting for the Eskom bill received in January for December. Some of the reason for this is that provisions for certain expenditure, such as irrecoverable debtors and impaired assets, is not made at half year, but only at year end.

The operating surplus, as presented is R98,5m, double that of the budgeted surplus.

DOCRRA’s main concerns and comments regarding the above results are:

• Spend the full approved budget, capital and operational. These under-spending’s severely impact on service delivery to the residents at large.
• Capital budget is R8m underspent at mid-term.
• Fill the vacancies budgeted for, as these impact on service delivery.
• Rates income could be below budget for the year which will impact operational spending, in terms of balancing the budget. Previous years surpluses could be utilised.
• For the month of December, electricity costs exceed income by R2.6m. This is cause for great concern if this trend continues into the future. The YTD surplus is a mere R1.5m, before accounting for any cost on maintenance and management of the network.

For any further information you may require, please email admin@docrra.co.za. 

To view the 21/22 Mid Year Budget and Performance Assessment report, click HERE.

DOCRRA will be analysing the recently released Annual Report for 2020/21 and will also study the 2022 Adjustment Budget to be delivered and presented at the end of the month.