Bad debt provision - amounted to R115 million as at 31 March 2013, the bad debt provision was calculated considering the collection of debt from local government debtors which were challenges in the previous financial years. The bad debt provision was also calculated taking into account the state of local government finances and financial management as reported by the National Treasury in 26 October 2012, in a report titled "State of Local Government Finances and Financial Management". It was reported that 94 municipalities were being financially distressed.