PRESENTATION TITLE Presented by: Name Surname

Transcript:PRESENTATION TITLE Presented by: Name Surname:
PRESENTATION TITLE Presented by: Name Surname Directorate Date Annual report for the 2014/15 financial year Presented by: Overberg Water Definitions 2 Annual report for the 2014/15 financial year Part 1: Overview of non-financial performance Part 2: Overview of financial performance CONTENTS 3 Part 1: overview of non-financial performance 4 Performance indicators Performance indicators - Continued Performance indicators - Continued Performance indicators - Continued Performance indicators - Continued Explanatory notes 10 Part 2: overview of financial performance FINANCIAL PERFORMANCE REVIEW Financial position review Overview of the audit report and action plan 11 12 Variances – Financial Performance Revenue increased by 15% for the year due to a combination of water volume (5%) and tariff increases Operating expenditure remained in line with inflation 14 Variances - Financial Position Cash (& equivalents) and Investments moved proportionately as the non working capital portion of cash investments were reclassified as long term assets. Investments also increased from interest capitalised Trade and other debtors increased by 35 % due to the 15% increase in revenue and an increase in 139% for the DWS Clanwilliam Project Inventory increased substantially due to the reclassification of maintenance and emergency spares from PPE to inventory to better reflect the nature and use of the items. Trade payables increased by 97% due to a creditor with an annual invoice that was received late from the supplier. Also, amounts received in advance increased substantially as the capital levies has been included as “Receipts in advance” until it is used in the capital expenditure programme. Ratios Liquidity The current ratio is 1.7 : 1 Cash flow from operations The cash and cash equivalent at the end of the year amounted to R 4 million Return on assets The ratio on return on assets is 4%. Debtor days in sales The debtors days are 48 days. Creditors days The creditors days are 50 days. This is due to a large creditor with an annual invoice that was not yet paid at year end due to the invoice received late from the supplier. 16 Notes to the financial statements 17 The financial statements have been prepared in accordance with International Financial Reporting Standards and relevant guidelines specified / issued by the National Treasury. Irregular expenditure Analysis: 18 Contingent liabilities and assets 19 OVERVIEW OF audit report 20 Audit report The audit report of Overberg Water is unqualified. The only emphasis of matter is the basis