Tyodana, X Mbhashe Komuna Lokale Genyana, C Mbhashe Komuna Lokale Nqwena, N Mbhashe Komuna Lokale Msindwana, K Mbhashe Komuna Lokale Mafanya-Goniwe, T Mbhashe Komuna Lokale Mantshiyo, L Mbhashe Komuna Lokale Balindlela, T Amahlathi Komuna Lokale Skelenge, N Muquma Lokale Mnquman, Komuna Mnquman Local Mnquman. Komuna Lokale Xhongwana, Z Mnquma Komuna Lokale Mnqokoyi, Z Mnquma Komuna Lokale Magwaca, K Mnquma Komuna Lokale.
Statement of Comparison of Budget and Actual Amounts
Difference between final
Group
Cash Flow Statement
Cash flows from operating activities Receipts
Actual amounts on comparable
Municipality Cash Flow Statement
Basis of presentation
- Presentation currency
- Going concern assumption
- Consolidation Basis of consolidation
- Significant judgements and sources of estimation uncertainty
Consolidated annual financial statements are the annual financial statements of the group presented as those of a single economic entity. These annual consolidated financial statements are in South African Rand, which is the group's functional currency.
Accounting Policies
Investment property
Investment property includes property (land or a building, or part of a building, or both land or buildings under a finance lease) that is held to earn rent and/or for appreciation rather than held to meet objectives for the provision of services or sales in the ordinary course of business. Where investment property is acquired through a non-exchange transaction, the cost price is its fair value at the date of acquisition.
Property, plant and equipment
Tangible fixed assets are recognized at cost less accumulated depreciation and any write-downs. If the accounting value of a tangible fixed asset is greater than the estimated salvage value (or salvage value), it is immediately written down to the salvage value (or salvage value) and an impairment loss is expensed in the income statement.
Intangible assets An asset is identifiable if it either
Any part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the asset is depreciated separately. The gain or loss resulting from derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised.
Financial instruments
Investments in controlled entities Group consolidated annual financial statements
Heritage assets
The group recognizes a financial asset or a financial liability in its statement of financial position when the entity becomes a party to the contractual terms of the instrument. A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognized in surplus or deficit.
Leases
To the extent that the straight-line lease payments deviate from the actual lease payments, the difference is recognized in the balance sheet as prepaid lease payments. operating lease asset) or lease payments payable (operating lease liability), as the case may be. This resulting asset and/or liability is measured as the undiscounted difference between the straight-line lease payments and the contractual lease payments.
Inventories Initial recognition
If the recoverable amount of a cash-generating asset is less than its book value, the book value of the asset is reduced to its recoverable amount. The book value of the cash-generating unit is determined on a basis that is consistent with the method of determining the recoverable amount of the cash-generating unit.
Impairment of cash-generating assets
An impairment loss is recognized for a cash-generating unit if the recoverable amount of the unit is less than the unit's carrying amount. A reversal of an impairment loss for a cash-generating asset is recognized immediately in profit or loss.
Impairment of non-cash-generating assets
The amount of the impairment loss that would otherwise have been allocated to the asset is allocated proportionately to the entity's other cash-generating assets. A reversal of an impairment loss for a cash-generating unit is allocated to the unit's cash-generating assets pro rata with the carrying amount of those assets.
Environmental Rehabilitation ProvisionsRedesignation
Share capital / contributed capital
Employee benefits
Current service cost is the increase in the present value of the defined benefit obligation resulting from the employee's service in the current period. Past service cost is the change in the present value of the defined benefit obligation for employees in prior periods of service, resulting in the current period from the introduction of, or changes in, post-employment benefits or other long-term employee benefits.
Revenue from non-exchange transactions
Adjustments to preliminary estimates of consumption are made in the billing period in which meters were read. Revenues arising from the application of the approved rates, fees and charges are generally recognized when the relevant service is rendered. Revenue from the rental of facilities and equipment is recognized on a straight-line basis over the term of the rental agreement.
Revenue from exchange transactions
Income arising from the consumption of water and sanitary facilities in the month of June is fully accounted for, whether or not invoiced. Sewer and sanitary service costs are based on the number of sewer connections per developed plot and use the rates approved by the municipality and are levied monthly. Interest is recognized in the statement of financial performance on a time-proportionate basis, taking into account the effective return on investment.
Provisions and contingencies Provisions are recognised when
Related parties
Translation of foreign currencies Foreign currency transactions
Surplus/deficit Gains and Losses
Comparative figures Current year comparatives (budget)
Unauthorised expenditure
Fruitless and wasteful expenditure
Irregular expenditure
Use of estimates
Investments
Conditional grants and receipts
Turnover
Investment income
Borrowing costs
Post balance sheet events
Commitments
New standards and interpretations
- Standards and interpretations issued, but not yet effective
Investment property Group
Property, plant and equipment Group
The effect of the rezoning was a loss of some of the ADM villages to other municipalities. Assets, mainly water infrastructure assets, in the affected villages will be transferred from ADM to the respective municipalities according to the decisions of the Demarcation Board. A list of assets to be transferred has been compiled and are primarily in Buffalo Metropolitan Municipality (BCMM) and Chris Hani County Municipality.
Intangible assets Group
Heritage assets Group
Investment in controlled entities
Non current receivables
Employee benefit obligation Defined contribution plan
Upon retirement, the post-retirement employee council is obligated to contribute 70% to the employee's medical expenses. Reconciliation of assets and liabilities recognized in the balance sheet. The value of the gift at retirement is expected to increase in line with CPI inflation in the future. Average commitment increased by 38% due to; an increase in the assumed average retirement age; using modified withdrawals and increasing average earnings.
Inventories
Fair value of plan assets at year-end - - - - Actuarial (gain)/loss for the period.
Receivables from exchange transactions
Receivables from non - exchange transactions
Cash and cash equivalents
The group's obligations under finance leases are covered by the lessor's expense on the leased assets. While the average creditor payment day ratio was 65.8% as of June 30, 2019 due to cash flow constraints, the municipality has had difficulties from time to time meeting the statutory 30-day deadline for payment of invoices. This resulted in a total of 34.2% of invoices that were processed and not paid within 30 days in fiscal year 2018/19.
Unspent conditional grants and receipts comprise of
Non current investments At amortised cost
Provisions
As far as the municipality's licensing regulations for waste disposal sites are concerned, a forecast has been made for the estimated cost of rehabilitating waste areas. Cost factors derived from a consulting engineering firm's study were applied and projected at an annual inflation rate of 5.5% and discounted to present value at the average cost of borrowing. The holiday pay obligation is certain, on the basis that the municipality does not have an unconditional right to avoid repayment as the employee can take the holiday without restriction.
Payables from exchange transactions
Taxes and transfers payable (non - exchange)
Current tax payable (receivable) South African normal tax
Consumer deposits
Revenue
Rental facilities and equipment Facilities and equipment
Interest received
The NRM grant was returned to the Department of Environmental Affairs during the 2019 financial year. A balance of R405 worth of unspent funds to the Department of Rural Development and Agricultural Reform was written off during the 2018/19 financial year. A balance of R21 275 of unspent funds in relation to DEDEAT/ECDC -Emthonjeni Arts project was written off during the 2018/19 financial year.
Employee related costs
Remuneration of councillors
Finance costs
Bulk purchases
Contracted services Contractual amounts
Inventory consumed
Operational costs
Auditors' remuneration
Net cash flows from operating activities
Operating rent payments represent rent receivable by the Municipality for certain of its properties located in Stutterheim, Komga, Cathcart. Leases are negotiated for an average of 7 years and rents increase by an average of 10% annually.
Contingencies Contingent liabilities
The municipality and its lawyers are of the opinion that the trial will probably be in the municipality's favor. The municipality has settled payment of outstanding amounts claimed in connection with the construction of RDP houses. The municipality expects recovery of the amounts from the Eastern Cape Department of Human Settlements.
Related parties Relationships
During the 2017/2018 audit, it was found that the following unspent balances of conditional grants are no longer in bank accounts and were used in previous accounting periods: Department of Rural Development and Agrarian Land Reform R405, DEDEAT/ECDC Emthonjeni Arts R21 275, ADM Co ops R200 000, DBSA Drylands Funds R5 436. The above finding resulted in an overestimate unused contingent funds for R227 119. The error was corrected in the current financial year and retroactively adjusted for the amount of R227 119. The error was corrected for the current financial year and retroactively corrected for the amount of R7503. The above finding resulted in an understatement of unused contingent grants by R188 925. The balance of unused contingent grants was recalculated for this amount.
June 2019
The group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The group's liquidity risk is the result of the funds available to cover future obligations. The group manages liquidity risk through an ongoing review of future commitments and credit facilities.
June 2018
- Unauthorised expenditure
- Fruitless and wasteful expenditure
- Irregular expenditure
- Additional disclosure in terms of Municipal Finance Management Act
- Extended Public Works Programme (EPWP)
- Municipal Systems Improvement Grant (MSIG)
- Municipal Infrastructure Grant ( MIG)
- Water Services Infrastructure Grant (WSIG)
- Road Asset Management System (RAMS)
- Neighbourhood Development Partnership Grant (NDPG)
- Regional Bulk Infrastructure (RBIG)
- Capacity Building Programme Project complete
- Mnquma War on Leaks Funds fully spent
- ACIP - WW Infrastructure refurbish R3 5M Funds fully utilised
- Victoria
- Teko Springs/ Ndlovini
- Needs Camp
- Hogsback
- Haga Haga
- Willowvale
- Elliotdale
- Ndevana
- Msobomvu
- Hertzog
- Great Kei Planning Funds
- Mnquma Planning Funds
- Ngqushwa Planning Funds
- Nkonkobe Planning Funds
- Mnquma Survey
- Ndlovini Establishment Grant
- Dongwe Engineering Design
- Kubusie Establishment Grant Project complete remaining balance is savings
- Lewis Survey
- Prudoe Engineering Design
- Survey Interest and Contribution
- Ngqushwa Survey Funds
- Nkonkobe Survey
- Macleantown Establishment Grant
- Prudoe Establishment Grant
- Dongwe Establishment Grant
- Teko Spring Top Structure
- Prudoe Top Structure
- Dongwe Top Structure
- Needscamp Top Structure
- Ducats Top Structure Subsidy 38. Teko Spring Establishment Grant
- Needs Camp Establishment Grant
- Ducats Establishment Grant
- Silwindlala Women's Project
- Highlands Resorts
- Peddie Brick Making Project will be completed in the next
- Inkuthalo Hydroponics
- Capacity Building for LM's
- Led Capacity Building - Ngqushwa
- Upgrade Infrastructure Sanitation ( Consolidated of Accounts)
- Chatha Development
- Fingoland and Regional Authority
- Co-operative specialist
- Lilyvale Kaysers Beach Establishment Grant
- Kaysers Beach Housing Project
- Lillyvale Eng Designs
- Planning Grant DLA
- Restitutional Award (DLA)
- Beneficiary Administration (Breaking new ground )
- Environmental Impact Assessment
- Geo Hydrology
- Bawa Falls Led
- Elliotdale Brick Making
- EC Information Initiative Support
- Roof Top Rain Water Harvesting
- Tourism Survey
- Nxuba Dam Chalets Development
- Ploughing Contactors-ward 10
- Public Awareness Savings
- Shixnini Water Supply
- Communal Water Stations
- Technical Assistance to Develop District Development Profile Project complete
- Municipal Disaster Grant: Drill borehole Dutywa
- Repairs and maintenance
- Events after reporting date
- Services received in kind
- SETA Implementation
- Budget differences
- Service charges
- Rentals
- Interest earned - outstanding receivables
- Other income
- Interest on external investments
- Government grants
- Depreciation
- Finance costs
- Debt impairment
- Repairs and maintenance
- Bulk services
- Contracted services
- Inventory consumed
- Operational costs
- Actuarial gains
- Loss on sale of assets
- Receivables from exchange transactions
- Receivables from non-exchange transactions
- Cash and cash equivalents
- Investment Property
- Property, plant and equipment
- Intangible assets
- Finance lease obligation (current)
- Payables from exchange transactions The decrease is due to payments of creditors settled
- Taxes and transfers payable (non exchange)
- VAT payable
- Provisions
- Employee benefit obligation
- Cash flow from operating activities
- Investing activities
- Financing activities
To date a total amount of R17 906 has been recovered, R13 429 relates to the current year. The remainder will be reclaimed during the term of the employee's contract. During an amount of R11 844 related to lost computers, one was considered loss due to negligence by the insurance company. R10 721 is the cost of the computer to be recovered from M.Mlomzale, an amount of R1 350 has been recovered to date, the remaining amount of R9 371 will be recovered over the course of 22 months. The insurance claim filed for the second computer lost by Mr. L. The balance is expected to be used in the next fiscal year. The request for roll-over has been submitted to the financier by the project manager. The project status is pending approval of the layout plan by COGTA.
Consolidated Annual Financial Statements Appendix A - Schedule of External Loans
Rate
Redeemable Date
Received during the period
Redeemed / written
CURRENT PORTION
ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2019
Amathole District Municipality
Amathole District Municipality ANALYSIS OF HERITAGE ASSETS AS AT 30 JUNE 2019
Appendix D
RATES AND GENERAL SERVICES -
Land Human Settlement & Economic
NATIONAL GOVERNMENT GRANTS
Consolidated Annual Financial Statements
Appropriation Statement
Original budget
Final adjustments budget
Virement (i.t.o
Unauthorised Variance
Variance
Actual outcome as
Financial Performance
Capital expenditure and funds sources
Budget adjustments (i.t.o
Final budget Actual outcome Unauthorised
Actual outcome as %
Total revenue (excluding capital transfers and
Surplus / Deficit after capital transfers and
Source of capital funds
Original budget Budget adjustments
Final adjustments
Shifting of funds (i.t.o
Final budget Actual outcome Unauthorised expenditure
Group Cash flows
Net increase /(decrease) in cash and cash
Budget adjustments
MFMA)
Final budget Actual outcome Unauthorised
Cash flows
Cash and cash equivalents at the end of
Reconciliation of Table A4 Budgeted Financial Performance (revenue and expenditure): Municipality Description
Reconciliation of Table A7 Budgeted Cash Flows
R thousand
Final Budget
Audited Outcome
CASH FLOW FROM OPERATING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
2018/2019Consolidated Annual Financial Statements
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