Otjiwarongo reins in budget deficit
Spending increases 20%
The Otjiwarongo Municipality has managed to improve its financial performance, reducing its deficit by N$9.1 million from 2020 to 2021.
The Otjiwarongo Municipality has managed to improve its financial performance, reducing its deficit by N$9.1 million from N$23.8 million in 2020 to N$14.7 million in 2021, marking a 62% improvement in its financial performance.
The municipality was also able to increase its total asset position from 2020 to 2021, maintaining it on average at N$230 million while new additions in 2020 increased the total asset value from N$217.8 in 2019 to N$233.1 million in 2020, it noted.
On the revenue side, the revenue from exchange transactions (services rendered, rentals) increased by 4.6% from N$80.1 million in 2019 to N$83.8 million in 2021.
“This represents an average yearly growth of 2.3% on a year-to-year basis. The Covid-19 pandemic and economic downturn contributed to the decrease in services rendered in 2021.
"The implementation of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities reporting framework contributed to the difference between the 2019 and 2020 total revenue balances,” the Otjiwarongo Municipality said.
Spending
The municipality was however unable to rein in its expenditure, with it increasing 21% from N$109.6 million in 2019 to N$132.8 million in 2021.
“This represents an average yearly growth of 10.5% on a year-to-year basis.
The Covid-19 pandemic and economic downturn had a negative effect on services rendered and the cost-cutting measures implemented in 2021 contributed to a decrease in cost from 2020 to 2021,” the Otjiwarongo Municipality said.
On the liabilities front, the Otjiwarongo Municipality noted that its total liabilities from 2020 to 2021 increased by 13% from N$37.7 million in 2020 to N$42.7 million in 2021. The total liability value reported in 2019 of N$20.2 million while its accumulated surplus deteriorated by 5.3% from N$197.6 million in 2019 to N$ 187.2 million in 2021.
The municipality was also able to increase its total asset position from 2020 to 2021, maintaining it on average at N$230 million while new additions in 2020 increased the total asset value from N$217.8 in 2019 to N$233.1 million in 2020, it noted.
On the revenue side, the revenue from exchange transactions (services rendered, rentals) increased by 4.6% from N$80.1 million in 2019 to N$83.8 million in 2021.
“This represents an average yearly growth of 2.3% on a year-to-year basis. The Covid-19 pandemic and economic downturn contributed to the decrease in services rendered in 2021.
"The implementation of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities reporting framework contributed to the difference between the 2019 and 2020 total revenue balances,” the Otjiwarongo Municipality said.
Spending
The municipality was however unable to rein in its expenditure, with it increasing 21% from N$109.6 million in 2019 to N$132.8 million in 2021.
“This represents an average yearly growth of 10.5% on a year-to-year basis.
The Covid-19 pandemic and economic downturn had a negative effect on services rendered and the cost-cutting measures implemented in 2021 contributed to a decrease in cost from 2020 to 2021,” the Otjiwarongo Municipality said.
On the liabilities front, the Otjiwarongo Municipality noted that its total liabilities from 2020 to 2021 increased by 13% from N$37.7 million in 2020 to N$42.7 million in 2021. The total liability value reported in 2019 of N$20.2 million while its accumulated surplus deteriorated by 5.3% from N$197.6 million in 2019 to N$ 187.2 million in 2021.
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