Fezile Dabi District Municipality Map
The Metsimaholo Local Municipality is within the Fezile Dabi District of the Free State Province. It is the smallest of four municipalities in the district, making up 8% of its geographical area. The municipality was established in 2000 through the amalgamation of the then Sasolburg, Deneysville and Oranjeville Transitional Local Councils.

The dominance of Sasolburg, owing to its population density and its proximity to the economically active City of Johannesburg, provides the area with the opportunity of being declared the head office of the entire Metsimaholo Municipality. Metsimaholo means ‘big water' in Sesotho.

Area: 1 717km²
Cities/Towns: Deneysville, Kragbron, Oranjeville, Sasolburg
Main Economic Sectors: Manufacturing, agriculture, retail, community services

The Metsimaholo Local Municipality has a total population of 149 108 people, of which 82,3% are black African ,0,7% are coloured, and 16,4% are white. The Indian/Asian population makes up 0,3%of the population, and 0,3% are made up by the remaining groups.
Of the people aged 20 and older, 35,8% have some form of secondary schooling, and only 29,9% have matric. In the municipality, 5,7% of people have no schooling and 12% have some form of primary schooling.

The municipality is currently run by an ANC coalition, the mayor being a member of the SACP
The 2018-2019 Auditor General  audit outcomes serve to provide more insight into the municipalities financial management situation:
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.
Cash Balance
R13 877 103
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.

Cash Coverage
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.
Spending of operating budget
4.9% overspent
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.
Spending of Capital budget
23% underspent
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.
Spending on repairs and maintenance
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.
Fruitless and wasteful expenditure
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..
Current ratio
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.
Liquidity ratio
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.
Current debtors collection rate
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.
Where does the municipality get money from?
R1 170 679 180
R901 506 114

Locally generated

From residents paying for water & electricity, rates, licenses & fines, and from interest and investments.
R269 173 066


From the Equitable Share of taxes, and Grants from national and provincial Government.
Staff wages and salaries

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.
Contractor services
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.
What is money spent on?