Total Capital Expenditure
5.5. CAPITAL EXPENDITURE
190
191
Name of Project Original
Budget
Adjustment Budget
Actual Expenditure
Original Variance
(%)
Adjustment variance
(%)
RURAL ELECTRICITY 30,000 38,804 28,945 4% -29%
COUNCIL CHAMBERS 21,000 18,820 13,552 35% 10%
MALUTI INTERNAL STREETS 4,050 14,144 14,019 -246% -249%
MATATIELE ROADS 6,815 7,591 7,570 -11% -11%
LANDFILL SITE - 5,740 5,643 #DIV/0! #DIV/0!
Name of Project - A
Objective of Project
Delays
Future Challenges
Anticipated citizen benefits
Name of Project - B
Objective of Project
Delays
Future Challenges
Anticipated citizen benefits
Name of Project - C
Objective of Project
Delays
Future Challenges
Anticipated citizen benefits
Name of Project - D
Objective of Project
Delays
Future Challenges
Anticipated citizen benefits
Name of Project - E
Objective of Project
Delays
Future Challenges
Anticipated citizen benefits
T 5.7.1
192
No. HHs % HHs No. HHs % HHs
Water % %
Sanitation % %
Electricity % %
Waste management % %
Housing % %
% HHs are the service above/below minimum starndard as a proportion of total HHs. 'Housing' refrs
to * formal and ** informal settlements. T 5.8.2
Municipal Infrastructure Grant (MIG)* Expenditure Year 0 on Service backlogs
R' 000
Details
Budget Adjustments
Budget Actual Variance Major
conditions applied by
donor (continue
below if necessary) Budget Adjust-
ments Budget Infrastructure - Road transport 30,842 37,112 28,606 % %
Roads, Pavements & Bridges 30,842 37,112 28,606 -0.30 %
Storm water - % %
Infrastructure - Electricity - 80 - % %
Generation - - 0 % %
Transmission & Reticulation 0 - 0 % %
Street Lighting 0 80 0 - % Infrastructure - Water - 0 % %
Dams & Reservoirs - 0 % %
Water purification - 0 % %
Reticulation - 0 % % Infrastructure - Sanitation - % %
Reticulation % %
Sewerage purification % %
Infrastructure - Other 5,740 5,643 % % Waste Management 5,740 5,740 5643 -0.02 %
Transportation % %
Gas % %
Other Specify: % %
SPORTS FIELD 10,831 9,412 7,694 -0.22 %
HALLS 2,800 661 - % %
% %
Total 30,842 42,932 34,249 -0.25 %
* MIG is a government grant program designed to fund a reduction in service backlogs, mainly: Water;
Sanitation; Roads; Electricity. Expenditure on new, upgraded and renewed infrastructure is set out at Appendix M; note also the calculation of the variation. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual.
T 5.8.3
193
Description
Year -1 Current: Year 0
Audited
Outcome Original
Budget Adjusted
Budget Actual
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepayers and other 57,420 71,400 71,400 96,112 Government - operating 148,861 183,173 180,791 (183,115) Government - capital 71,332 75,262 77,644 79,867 Interest 7,696 7,581 7,581 9,672 Dividends – – – –
Payments
Suppliers and employees (185,184) (236,530) (243,530) (159,668) Finance charges (15) – – – Transfers and Grants (22,946) (6,333) (6,333) (6,333) NET CASH FROM/(USED) OPERATING ACTIVITIES 77,164 94,554 87,554 (163,464)
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE 0 3,824 3,824 0
Decrease (Increase) in non-current debtors
Decrease (increase) other non-current receivables
Decrease (increase) in non-current investments
Payments
Capital assets
NET CASH FROM/(USED) INVESTING ACTIVITIES 0 3,824 3,824 0
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrowing long term/refinancing
Increase (decrease) in consumer deposits
Payments
Repayment of borrowing
NET CASH FROM/(USED) FINANCING ACTIVITIES – – – –
NET INCREASE/ (DECREASE) IN CASH HELD 77,164 98,377 91,377 (163,464) Cash/cash equivalents at the year begin: 57,566 – Cash/cash equivalents at the year end: 30,487 98,377 91,377 (163,464)
Source: MBRR A7 T 5.9.1
194 5.11. Public Private Partnerships
There were no contracts undertaken during the year through PPP.
Component D: Other Financial matters 5.12. Supply Chain Management
The SCM is an integral part of financial management and It Is a guide for procurement process. The Supply Chain Management Policy was reviewed and approved by Council on the 29 May 2015 to ensure that the policy is in line with the prescript legislative framework and to address any other issues that were raised by the Auditor General that were not included in the policy.The Demand/
Procurement Management Plan was also developed and approved by the Council on the 30 October 2015. The aim of the plan is provide a general understanding of the procedures to be followed when implementing demand management and the compilation of procurement plans.
Minimum Competency Levels for Supply Chain Managements officials Units Description Required Minimum
Competency Level (Head of SCM)
Total Number of SCM Official
No of Supply Chain
Officials who meet the pre- scribed competency level
No of Supply Chain
Officials who don’t
Remarks by Auditors General
Higher Education Qualification
At least NQF Level 5 or National Diploma:
Public Finance Management and Administration
1 1 0 Position was
filled by official who meet that the pre-scribed competency level
195 competency
level Work-
Related Experience
Minimum of – a) 4 years of which
at least 1 year must be at middle
management level and at least 3 years at any level in a role related to be position of the official
b) 6 years at any level in the role related to the position of the official.
1 1 0 Position was
filled by official who meet that the pre-scribed competency level
Competency Area
Supply Chain Management
116353
Description Required Minimum Competency Level ( Official)
Total Number of SCM Official
No of Supply Chain
Officials who meet the pre- scribed competency level
No of Supply Chain
Officials who don’t
Remarks by Auditors General
Higher Education Qualification
At least NQF Level 5 in fields of Accounting, Finance or Economics or
National Diploma:
Public Finance Management and Administration
5 4 1 Position was
filled by official who meet that the pre-scribed competency level
Work- Related Experience
Minimum of – a) 4 years of which
at least 1 year must be at middle
5 5 0 Position was
filled by official who meet that the pre-scribed
196 position of the
official
b) 6 years at any level in the role related to the position of the official.
Competency Area
Supply Chain Management
116353
5.13. GRAP compliance
The municipality has complied with all the standards as required by Generally Recognized Accounting Practice (GRAP
197 Auditor-General Report on Financial Performance: 2014/15
Status of audit report: Unqualified with no material findings Irregular expenditure
Electricity Distribution Losses Impairment Loss
Non-Compliance Issues Remedial Action Taken
N/A N/A
T 6.2.1
Auditor-General Report on Service Delivery Performance: 2014/15
Status of audit report**: Unqualified with no material findings N/A
Non-Compliance Issues Remedial Action Taken
N/A N/A
T 6.2.2
Component B: Auditor general opinion 2015/16 6.2. Auditor general report year 2015/16
Auditor-General Report on Financial Performance: 2015/16
Status of audit report: Unqualified with no material findings
Non-Compliance Issues Remedial Action Taken
T 6.2.1
Auditor-General Report on Service Delivery Performance: 2015/16
Status of audit report**: Unqualified with no material findings
Non-Compliance Issues Remedial Action Taken
T 6.2.2
COMMENTS ON AUDITOR-GENERAL’S OPINION YEAR 2014/15:
198
Signed (Chief Financial Officer) Dated: 31/08/2016
GLOSSARY Accessibility indicators
Explore whether the intended beneficiaries are able to access services or outputs.
Accountability documents
Documents used by executive authorities to give “full and regular” reports on the matters under their control to Parliament and provincial legislatures as prescribed by the Constitution. This includes plans, budgets, in-year and Annual Reports.
Activities The processes or actions that use a range of inputs to produce the desired outputs and ultimately outcomes. In essence, activities describe "what we do".
Adequacy indicators The quantity of input or output relative to the need or demand.
Annual Report A report to be prepared and submitted annually based on the regulations set out in Section 121 of the Municipal Finance Management Act. Such a report must include annual financial statements as submitted to and approved by the Auditor-General.
Approved Budget The annual financial statements of a municipality as audited by the Auditor General and approved by council or a provincial or national executive.
Baseline Current level of performance that a municipality aims to improve when setting performance targets. The baseline relates to the level of performance recorded in a year prior to the planning period.
Basic municipal service
A municipal service that is necessary to ensure an acceptable and reasonable quality of life to citizens within that particular area. If not provided it may endanger the public health and safety or the environment.
Budget year The financial year for which an annual budget is to be approved – means a year ending on 30 June.
Cost indicators The overall cost or expenditure of producing a specified quantity of outputs.
Distribution indicators
The distribution of capacity to deliver services.
Financial Statements Includes at least a statement of financial position, statement of financial performance, cash-flow statement, notes to these statements and any other statements that may be prescribed.
General Key
performance indicators
After consultation with MECs for local government, the Minister may prescribe general key performance indicators that are appropriate and applicable to local government generally.