NC065 Hantam AFS 2015-16 unaudited
HANTAM MUNICIPALITY CONTENTS
PAGE
Certificate by Municipal Manager
1
General Information
2
Report by Chief Financial Officer
5
Statement of Financial Position
10
Statement of Financial Performance
11
Cash Flow Statement
12
Statement of Changes in Net Assets
13
Accounting Principles and Policy
14
Notes to the Financial Statements
37
Appendix A
66
Appendix B
67
Appendix C
68
Appendix D
69
Appendix E 2016: Irregular and Deviations
70
Appendix S 2015: Irregular and Deviations
75
HANTAM MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2016
I am responsible for the preparation of these financial statements, which are set out on pages 1 to 83 in terms of section 126(1) of the Municipal Finance Management Act and which I have signed on behalf of the Municipality. I certify that salaries, allowances and benefits of Councillors as disclosed in note 25 of these annual financial statements are within the upper limits of the framework envisaged in Section 219 of the Constitution, read with the remuneration of Public Office Bearers Act and the Minister of Provincial and Local Government's determination in accordance with this Act.
31 August 2016 J.R. VAN WYK ACTING MUNICIPAL MANAGER
GENERAL INFORMATION
NATURE OF BUSINESS Hantam Municipality is a Local Municipality performing the functions as set out in the Constitution of the Republic of South Africa of 1996. COUNTRY OF ORIGIN AND LEGAL FORM South African Category B Municipality (Local Municipality) as defined by the Municipal Structures Act. (Act No.117 of 1998) FULL TIME MAYOR Councillor A. Claassen WARD COUNCILLORS Ward 1 Ward 2 Ward 3 Ward 4 Ward 5
M.S.Esau R.N.Swartz F.J.Sterkse J.H.Wilschut G.Opperman
COUNCILLORS PROPORTIONAL G.Fortuin E.Fallet J.Swarts GRADING OF LOCAL MUNICIPALITY
Grade 2
AUDITORS
Auditor-General
BANKERS
Standard Bank
REGISTERED OFFICE
Hoop Street Private Bag X14 Calvinia 8190
TELEPHONE
027-3418 500
FACSIMILE
027-3418 501
WEBSITE
www.hantam.gov.za
2
3
JURISDICTION AREA
Calvinia Brandvlei Loeriesfontein Nieuwoudtville
MUNICIPAL MANAGER Telephone E-Mail
Mr. J.R. van Wyk 027-3418 508
DIRECTOR:FINANCE Telephone E-Mail DIRECTOR:CORPORATE SERVICES Telephone E-Mail DIRECTOR:HEALTH & SOCIAL SERVICES Telephone E-Mail DIRECTOR:INFRASTRUCTURE SERVICES Telephone E-Mail
[email protected]
Mr.J.H. Langner 027-3418 538
Me. G.M.J. Lock 027-3418 518
Acting
[email protected]
Mr.J.R. van Wyk 027-3418 508 [email protected]
Mr.S. Tsengiwe 027-3418 550 [email protected]
027-3418 554 027-3418 550 027-3418 552 027-3418 508 027-3418 544
PAYPOINTS Calvinia Brandvlei Loeriesfontein Niewoudtville
Acting
[email protected]
ENQUIRIES Building Plan Electricity Water Sewerage Consumers
Acting
027-3418 500 054-6038 400 027-6628 600 027-2188 700
RELEVANT LEGISLATION
Municipal Finance Management Act (Act no.56 of 2003) Division of Revenue Act The Income Tax Act Value Added Tax Act Municipal Structures Act (Act no 117 of 1998) Municipal Systems Act (Act no 32 of 2000) Municipal Planning and Performance Management Regulations Water Services Act (Act 108 of 1997) Housing Act (Act no 107 of 1997) Municipal Property Rates Act (Act no 6 of 2004) Electricity Act (Act no 41 of 1987) Skills Development Levies Act (Act no 9 of 1999) Employment Equity Act (Act no 55 of 1998) Unemployment Insurance Act (Act no 30 of 1966) Basic Conditions of Employment Act (Act no 75 of 1997) Supply Chain Management Regulations, 2005 Collective Agreements Infrastructure Grants SALBC Leave Regulations
4
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016
5
1. REVIEW OF OPERATING RESULTS The overall operating results for the year ended 30 June 2016 as well as the comparison with the budgeted figures and the actual results of 2015 are reflected in the following table. DESCRIPTION
ACTUAL 2016
BUDGET 2016
INCOME Operating Income
91 798 315
113 522 274
-21 723 959
-19.14
90 576 014
EXPENDITURE Operating Expenditure
87 507 970
87 029 342
-478 628
-0.55
82 916 653
4 290 345
26 492 932
-22 202 587
-83.81
7 659 361
Closing Surplus
VARIANCE
VARIANCE ACTUAL AS % OF BUDGET
ACTUAL 2015
Details of operating results per department and classification of income and expenditure is included in Appendix C.
2. OPERATING EXPENDITURE 2015/2016 EXPENDITURE
Employee related costs Remuneration of Councillors Bad debts Collection costs Depreciation Repairs and maintenance Interest paid Bulk purchases Contracted services Grants and subsidies paid General expenses Non-Current Provisions Loss on disposal of property, equipment Total Expenditure See Note 43 for explanation of differences.
ACTUAL 2016
BUDGET 2016
32 013 158 2 570 442 2 576 206 649 907 6 389 749 3 814 178 2 734 781 19 303 772 598 137 225 640 16 533 876 98 125
32 058 994 2 641 495 3 657 040 530 000 4 285 051 3 496 970 1 682 225 21 134 480 599 780 225 640 15 638 572 1 079 095
87 507 970
87 029 342
VARIANCE
45 836 71 053 1 080 834 -119 907 -2 104 698 -317 208 -1 052 556 1 830 708 1 644 0 -895 304 980 970 0 -478 628
VARIANCE ACTUAL AS % OF BUDGET 0 2.69 29.55 -22.62 -49.12 -9.07 -62.57 8.66 0.27 0.00 -5.72 90.91 -0.55
ACTUAL 2015
25 309 376 2 372 134 4 818 880 372 360 3 776 335 2 802 980 1 339 079 15 016 782 529 162 246 388 14 689 713 639 529 47 090 71 959 808
3. OPERATING INCOME 2015/2016 INCOME
6 ACTUAL 2016
BUDGET 2016
VARIANCE
Property rates Service charges Rental of facilities Interest earned - ext invest Interest earned - debtors Fines Licences and permits Government grants - Operating Government grants - Capital Other income Gain on Fair Value Adjustments LESS:Income Foregone
7 540 440 41 969 259 160 948 382 491 1 489 320 74 047 1 201 480 25 350 015 17 174 533 362 198 -3 906 415
7 549 441 43 875 559 168 700 430 000 1 618 895 93 000 1 500 100 25 958 000 26 383 000 6 596 928 -651 349
-9 001 -1 906 300 -7 752 -47 509 -129 575 -18 953 -298 620 -607 985 -9 208 467 -6 234 730 -3 255 066
Total Income
91 798 315
113 522 274
-21 723 959
VARIANCE ACTUAL AS % OF BUDGET -0.12 -4.34 -4.59 -11.05 -8.00 -20.38 -19.91 -2.34 -94.51 499.74
20 652 000 1 800 379 930 000 1 413 000 1 153 000
4.MUNICIPAL EXTERNAL DEBT At the end of the year the amount borrowed and outstanding were as follows: TYPE
Annuity Loans Lease Liability Total
BALANCE 2014/06/30 336 680 247 425 584 105
RECEIVED
-
REDEEMED
336 680 169 037 505 717
6 079 573 34 032 722 151 989 439 818 1 322 358 91 096 1 388 551 28 383 573 25 167 484 423 326 145 289 -3594594
94 031 185
3.1. Operating Grants The following operating grants were received during the year: Equitable Share Financial Management Grant Municipal Systems Improvement Grant Library Development Expanded Public Works Programme
ACTUAL 2015
BALANCE 2015/06/30 78 388 78 388
5. RECEIVABLES FROM EXCHANGE TRANSACTIONS
7
GROSS BALANCES R
PROVISION IMPAIRMENT R
NETT BALANCES R
As at 30 June 2016 Electricity Water Refuse Sewerage Other Arrears Recognition of Revenue - Water Recognition of Revenue - Electricity Recognition of Revenue - Sanitation LESS: Long-Term Receivables Total: Receivables from Exchange Transactions PLUS: VAT Outstanding Total Receivables from Exchange Transactions As at 30 June 2015 Electricity Water Refuse Sewerage Other Arrears Recognition of Revenue - Water Recognition of Revenue - Electricity Recognition of Revenue - Sanitation LESS: Long-Term Receivables Total Receivables from Exchange Transactions
6. RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS Other Receivables Rates Miscellaneous LESS: Allowance for doubtful debts Total receivables from non-exchange transactions
3 680 386 8 695 934 7 065 290 4 997 501 3 020 423 27 459 534 182 718 1 102 847 28 745 098 -161 448 28 583 650 3 653 251 32 236 901
1 937 853 8 016 244 6 667 153 4 380 442 1 827 067 22 828 759
3 493 280 6 851 737 5 347 885 3 670 641 2 783 836 22 147 378 133 470 809 816 23 090 663 -382 503 22 708 160
2 549 083 4 999 784 3 902 407 2 678 505 2 031 394 16 161 173
22 828 759 22 828 759 22 828 759
16 161 173 16 161 173
2016
1 742 533 679 690 398 137 617 059 1 193 356 4 630 775 182 718 1 102 847 5 916 339 -161 448 5 754 891 3 653 251 9 408 142
944 197 1 851 953 1 445 478 992 136 752 442 5 986 205 133 470 809 816 6 929 490 -382 503 6 546 987
2015
8 480 063 1 725 869 10 205 933 0 10 205 933
7 165 922 1 425 198 8 591 119 -5 229 047 3 362 072
606 156 160 003 147 334 7 566 570 8 480 063
540 885 137 187 142 828 6 345 022 7 165 922
Ageing of Receivables from Non- Exchange Transactions Rates: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer
Summary of Receivables by Customer Classification 2016 Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer LESS: Provision for doubtful debts Total recoverable debtors by customer classification
8 Commercial
Residential
Government
Total
679 625 65 260 98 576 1 157 852 2 001 313 -1 271 425 729 888
2 810 180 924 950 858 119 27 943 620 32 536 869 -20 670 526 11 866 343
458 933 46 397 38 181 852 387 1 395 898 -886 807 509 091
3 948 738 1 036 607 994 876 29 953 859 35 934 080 -22 828 758 13 105 322
694 528 50 228 31 619 1 030 480 1 806 855 -1 155 062 651 793
2 463 631 782 348 718 812 22 150 145 26 114 936 -16 694 402 9 420 534
441 250 86 330 67 208 791 202 1 385 990 -886 017 499 973
3 599 409 918 906 817 639 23 971 827 29 307 781 -18 735 481 10 572 300
2015 Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer LESS: Provision for doubtful debts Total recoverable debtors by customer classification
7. NON-CURRENT PROVISIONS Provision for Post-Retirement Benefits Provision for Long Service Awards Provision for Rehabilitation Landfill Sites
2016
2015
13 448 083 1 676 983 24 217 788 39 342 854
12 378 861 1 785 667 22 846 970 37 011 498
704 982 3 589 081 1 545 816 78 388 18 309 471 1 477 934 0 3 653 251 29 358 923
631 708 3 810 693 533 649 505 717 10 133 627 1 475 144 26 474 1 765 895 18 882 908
67 318 9 408 142 10 205 933 2 908 087 102 761 53 767 815 360 23 561 367
77 995 9 531 419 3 362 072 346 559 157 338 2 133 029 1 200 662 16 809 074
8. CURRENT LIABILITIES Consumer Deposits Current Employee Benefits Current Portion of Non-Current Provision Current Portion of Long-Term Liabilities Payables of Exchange Transactions Unspent Conditional Grants and Receipts Unspent Public Contributions VAT Payable
9. CURRENT ASSETS Inventory Receivables from Exchange Transactions Receivables from Non-Exchange Transactions VAT Receivable Current Portion of Long-Term Receivables Call Investment Deposits Bank Balance and Cash
10. LONG-TERM RECEIVABLES Agreements for longer than 12 months by consumers to settle outstanding debt
11. EXPRESSION OF APPRECIATION I am grateful to the Municipal Manager and Head of Departments for the support during the financial year. I am also thankful for all staff in the finance department for the effort they put in and for their dedication.
J.H. LANGNER ACTING DIRECTOR OF FINANCE
9
161 450
955 333
HANTAM MUNICIPALITY
10
STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2016 Notes
2016 R
2015 R
NET ASSETS AND LIABILITIES Net Assets
141 742 430
117 583 510
Revaluation Reserve Accumulated Surplus
21 795 725 119 946 705
21 795 725 95 787 785
39 342 854
19 045 759
15 125 066 24 217 788
78 387 14 164 528 4 802 844
29 358 923
18 882 908
704 982 3 589 081 1 545 816 78 388 18 309 471 1 477 934 3 653 251
631 708 3 810 693 533 649 505 717 10 133 627 1 475 144 26 474 1 765 895
210 444 207
155 512 176
186 882 840 186 824 151
58 689
138 703 102 124 622 734 1 608 055 12 179 648 67 500 0 225 165
23 561 367 67 318 9 408 142 10 205 933 2 908 087 102 761 869 127
16 809 074 77 995 9 531 419 3 362 072 346 559 157 338 3 333 691
210 444 207
155 512 176
Non-Current Liabilities Long-Term Liabilities Employee Benefits Non-Current Provisions
1 2 3
Current Liabilities Consumer Deposits Current Employee Benefits Current Portion of Non-Current Provision Current Portion of Long-Term Liabilities Payables of Exchange Transactions Unspent Conditional Grants and Receipts Unspent Public Contributions VAT Provision
4 5 3 1 6 7 8 9
Total Net Assets and Liabilities ASSETS Non-Current Assets Property, Plant and Equipment Heritage Assets Investment Property Biological Assets Assets held for sale Long-Term Receivables
10 11 12 13 10 14
Current Assets Inventory Receivables from Exchange Transactions Receivables from Non-Exchange Transactions VAT Receivable Current Portion of Long-Term Receivables Cash and Cash Equivalents
15 16 17 9 14 18
Total Assets
HANTAM MUNICIPALITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016 Notes
2016 R
11
2015 R
REVENUE Revenue from Non-Exchange Transactions Taxation Revenue Property Rates
19
Transfer Revenue Government Grants and Subsidies-Operating Government Grants and Subsidies-Capital
20 20
Other Revenue Fines Gain on Fair Value Adjustments Profit on sale of assets Other
21
22
Revenue from Exchange Transactions Service Charges Rental of Facilities and Equipment Interest Earned - External Investments Interest Earned - Outstanding Debtors Licenses and Permits
23
Total Revenue
49 849 852
53 267 928
6 889 060
6 212 595
6 889 060
6 212 595
42 524 548
46 063 236
25 350 015 17 174 533
25 336 042 20 727 194
436 244
992 096
74 047
120 927
362 198
184 576 686 593
41 948 464
37 308 086
38 714 225 160 948 382 491 1 489 320 1 201 480
34 001 376 146 209 457 648 1 377 008 1 325 844
91 798 316
90 576 014
32 013 158 2 570 442 2 576 206 649 907 6 389 749 3 814 178 2 734 781 19 303 772 598 137 225 640 16 533 876 98 126 -
29 047 644 2 489 607 9 449 147 506 563 4 383 683 2 813 579 1 592 479 13 898 737 613 915 164 969 16 675 172 1 281 158 -
87 507 971
82 916 653
4 290 345
7 659 361
EXPENDITURE Employee related costs Remuneration of Councillors Increase/(Decrease) in Debt Impairment Collection Costs Depreciation and Amortisation Repairs and Maintenance Finance Charges Bulk Purchases Contracted Services Grants and Subsidies Paid General Expenses Provision - Employee Benefits Loss on Disposal of Property, Plant Total Expenditure NET SURPLUS FOR THE YEAR
24 25 26
27 28 29 30 31
12 HANTAM MUNICIPALITY CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 Note
2016 R
2015 R
CASH FLOW FROM OPERATING ACTIVITIES Cash receipts from ratepayers, government and other Cash paid to suppliers and employees Cash generated from operations
83 669 870 -51 064 420 32 605 450
94 665 883 -71 229 534 23 436 349
382 491 -32 424
457 648 -81 141
32 955 517
23 812 856
Purchase of property, plant and equipment Proceeds on disposal of property, plant and equipment Increase in investment properties (Increase)/decrease in non-current receivables Increase in non-current investments Decrease in call investment deposits
-15 891 595 -14 166 916 -
-22 376 362 192 533 0 0 -
NET CASH UTILIZED IN INVESTING ACTIVITIES
-30 058 511
-22 183 829
New loans repaid Increase in consumer deposits
-505 716 73 274
-701 564 47 166
NET CASH UTILIZED IN FINANCING ACTIVITIES
-432 442
-654 398
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
2 464 564
974 629
Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year
3 333 691 869 127 2 464 564
2 359 062 3 333 691 -974 629
32
Interest received Interest paid NET CASH FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
18
HANTAM MUNICIPALITY STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2016
2016 Balance at 30 June 2015 Change in accounting policy Correction of Error Surplus/Deficit on revaluation of PPE Surplus for the year Restated Balance Surplus for the year Balance at 30 June 2016
2015 Balance at 30 June 2014 Change in accounting policy Correction of Error Surplus/Deficit on revaluation of PPE Surplus for the year Restated Balance Surplus for the year Balance at 30 June 2015
Revaluation Reserve
Accumulated Surplus/ (Deficit)
Total
R
R
R
21 795 725
95 787 785 19 868 574
21 795 725 -
115 656 359 4 290 345
117 583 510 19 868 574 137 452 084 4 290 345 141 742 429
21 795 725
119 946 704
21 795 725
88 128 423
21 795 725
88 128 423
109 924 148 109 924 148
7 659 361
7 659 361
95 787 784
117 583 509
21 795 725
13
37
HANTAM MUNICIPALITY
37
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 1
2015 R
LONG-TERM LIABILITIES Annuity Loans Capitalised Lease Liability
78 388 78 388
336 680 247 425 584 104
LESS: Current Portion transferred to current liabilities Annuity Loans Capitalised Lease Liability
78 388 78 388
505 717 336 680 169 037
-
78 387
-
342 390 342 390 5 710 336 680
81 563 81 563 3 176 78 387
195 751 81 563 277 314 29 890 247 424
Total Long-Term Liabilities The obligations under annuity loans are scheduled below: Amounts payable under annuity loans: Payable within one year Payable within two to five years LESS: Future finance obligations Present value of annuity obligations The obligations under finance leases are scheduled below: Amounts payable under finance leases: Payable within one year Payable within two to five years LESS: Future finance obligations Present value of finance lease obligations Refer to appendix A for descriptions, maturity dates and effective interest rates of structures loans and finance leases. Leases are secured by property, plant and equipment.
38
38
HANTAM MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 2
2015 R
EMPLOYEE BENEFITS Long Service Awards Post Retirement Benefits Total Non-Current Employee Benefit Liability Long Service Awards Balance at beginning of year Contributions for the year Payment during the year Expenditure for the year Actuarial Loss Total Long Service 30 June LESS: Transfer of Current Portion to Current Employee Benefits Balance at end of year
1 676 983 13 448 083 15 125 066
1 785 667 12 378 861 14 164 528
1 970 239 324 736 -117 443 -67 129 2 110 403 -433 420 1 676 983
1 627 938 258 104 -67 752 151 949 1 970 239 -184 572 1 785 667
12 782 757 1 505 426 -403 896
Post Retirement Medical Benefits Balance at beginning of year Contributions for the year Expenditure for the year Actuarial Loss Total Post Retirement Medical Benefits 30 June LESS: Transfer of Current Portion to Current Employee Benefits Balance at end of year
13 884 287 -436 204 13 448 083
10 504 043 1 301 613 -343 572 1 320 673 12 782 757 -403 896 12 378 861
TOTAL NON-CURRENT EMPLOYEE BENEFITS Balance at beginning of year Contributions for the year Expenditure for the year Actuarial Loss Total employee benefits 30 June LESS: Transfer of Current Portion to Current Employee Benefits Balance at end of year
14 752 996 1 830 162 -521 339 -67 129 15 994 690 -869 624 15 125 066
12 131 981 1 559 717 -411 324 1 472 622 14 752 996 -588 468 14 164 528
39
HANTAM MUNICIPALITY
39
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R
2015 R
EMPLOYEE BENEFITS (Continued) 2.1 Long Service Awards The liability in respect of past service has been estimate to be as follows: In-Service Members
2 110 404
1 970 239
177 009
131 707
7.86% 7.04% 0.77%
7,86% 7,04% 0,77%
2 110 404
Unrecognised Transitional liability Unrecognised Actuarial Gains/(Loss) Unrecognised Past Service Cost Net Liability
2 110 404 2 110 404
1 970 239 1 970 239 1 970 239
Reconciliation of present value of fund obligation Present value of fund at beginning of year Total Expenses Current Service cost Interest cost Benefits paid
1 970 239 207 294 177 009 147 727 -117 442
1 627 938 190 352 131 707 126 397 -67 752
Actuarial losses Present Value of fund obligation at the end of year
-67 129 2 110 404
151 949 1 970 239
The Current-Service cost for the ensuing year Key Actuarial assumptions used: 1. Rate of Interest Discount Rate General salary inflation rate Net effective discount rate 2. Normal retirement age The normal retirement age for employees of the municipality is 63 years. The amount recognised in the Statement of Financial Position are as follows: Present Value of fund obligations Fair Value of Plan Assets
40
HANTAM MUNICIPALITY
40
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R
2015 R
EMPLOYEE BENEFITS (Continued) 2.2 Post Retirement Benefits The Post Retirement Benefit Plan is a defined benefit plan, of which the members are made up as follows: In-Service Members Continuation members (retiree and widow)members
24 10 34
24 10 34
443 464 1 192 218
407 892 1 097 534
8.72% 8.00% 0.67%
8,72% 8,00% 0,67%
13 884 287
12 782 757
Unrecognised Transitional liability Unrecognised Actuarial Gains/(Loss) Unrecognised Past Service Cost Net Liability/(Asset)
13 884 287 13 884 287
12 782 757 12 782 757
Reconciliation of present value of fund obligation Present value of fund at beginning of year Total Expenses Current Service cost Interest cost Benefits paid
12 782 757 1 101 530 407 892 1 097 534 -403 896
10 504 043 958 041 401 808 899 805 -343 572
Actuarial losses Present Value of fund obligation at the end of year
13 884 287
1 320 673 12 782 757
The Current-Service cost for the ensuing year Interest Costs for the ensuing year Key Actuarial assumptions used: 1. Rate of Interest Discount Rate Health Care costs inflation rate Net effective discount rate 2. Mortality rates The PA(90) ultimate table, rated down by 1 year of age. 3. Normal Retirement age The normal retirement age for employees of the municipality is 63 years. The amount recognised in the Statement of Financial Position are as follows: Present Value of fund obligations Fair Value of Plan Assets
(Present value of fund obligation for 2013:R8 292 324, 2012: R6 875 030 and 2011: R6 210 404) Sensitivty Analysis on Current-service and Interest Costs for year ending 30/06/2016 Assumption
Change
Central Assumptions Health Care inflation
+1% -1% -1yr -1Yr -10%
Post retirement mortality Average retirement age Continuation of membership at retirement Sensitivity Analysis on the Accrued Liability (R Millions) Assumption Central Assumptions Health Care inflation
Current-Service Interest Total Cost Cost 407 900 1 097 500 483 600 1 249 300 345 600 970 200 421 900 1 140 800 369 800 1 134 900 369 500 1 030 400
Change In-service
Continuation Total 5 525 6 086 5 040 5 047 6 088 5 760 5 525 5 525
12 783 14 523 11 323 11 275 14 642 13 278 13 211 12 013
Current-Service Interest Total Cost Cost 401 808 899 805 458 900 1 009 901 348 325 801 501 415 807 935 325 399 201 933 539 364 140 844 521
1 301 613 1 468 801 1 149 826 1 351 132 1 332 740 1 208 661
7 258 8 437 6 282 6 228 8 555 7 518 7 686 6 488
1% -1% 1% -1% -1 yr -1 yr -10%
Discount Rate Post retirement mortality Average retirement age Continuation of membership at retirement
% Change 1 505 400 1 732 900 1 315 800 1 562 700 1 504 700 1 399 900
15% -13% 4% -7% % Change 14% -11% -12% 15% 4% 3% -6%
Sensitivity Analysis on Current-service and Interest Costs for year ending 30/06/2015 Assumption Central Assumptions Health Care inflation Post retirement mortality Average retirement age Continuation of membership at retirement Sensitivity Analysis on the Accrued Liability (R Millions) Assumption Central Assumptions Health Care inflation Discount Rate Post retirement mortality Average retirement age Continuation of membership at retirement History of experience adjustments: Gains and Losses (R millions) Experience Adjustments Liabilities: (Gains)/Loss Assets: Gain/(Loss)
Change
+1% -1% -1yr -1Yr -10%
Change In-service 1% -1% 1% -1% -1 yr -1 yr -10% 2012 Not Available
7 258 8 437 6 282 6 228 8 555 7 518 7 686 6 488 2013 (0.198) 0
% Change
Continuation Total 5 525 6 086 5 040 5 047 6 088 5 760 5 525 5 525 2014 1.090 0
13% -12% 4% 2% -7%
% Change 12 783 14 523 11 323 11 275 14 642 13 278 13 211 12 013 2015 1.007 0
14% -11% -12% 15% 4% 3% -6%
41
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
41 2016 R
3
NON-CURRENT PROVISIONS Landfill Sites
Restated
Balance at the beginning of year Contribution for the year Reversal of contribution for 2014/2015 - Correction of error Contribution for 2014/2015 - Correction of error Write-Off Landfill Site for Middelpos - Correction of error Additions for 2014/2015 Expenditure for the year
24 305 287 1 458 317
25 763 604 -1 545 816 24 217 788
LESS: Transfer of current portion to Current Provisions Balance at end of year Interest payable under Landfill Sites Provision
4
2015 R
˂ 1 Year
2 -5 Years
6 - 10 Years
4 851 357 485 136 -485 136 1 375 771 -350 323 18 428 482 24 305 287 -1 458 317 22 846 970 > 10 Years
Calvinia 2014 Calvinia 2015 Calvinia 2016
17 690 057 17 690 057 17 690 057
9 318 901 9 878 036 10 470 718
2 445 997 2 592 757 2 748 322
3 979 190 4 217 941 4 471 017
1 945 969 1 001 324
Brandvlei 2014 Brandvlei 2015 Brandvlei 2016
16 021 623 16 021 623 16 021 623
8 439 991 8 946 391 9 483 174
2 215 303 2 348 221 2 489 115
3 603 893 3 820 127 4 049 334
1 762 436 906 884
Loeriesfontein 2014 Loeriesfontein 2015 Loeriesfontein 2016
10 499 848 10 499 848 10 499 848
3 470 336 3 678 556 3 899 270
910 883 965 536 1 023 469
1 481 841 1 570 751 1 664 996
4 636 788 4 285 004 3 912 113
Nieuwoudtville 2014 Nieuwoudtville 2015 Nieuwoudtville 2016
7 184 154 7 184 154 7 184 154
2 516 924 2 667 939 2 828 016
660 635 700 273 742 289
1 074 731 1 139 215 1 207 568
2 931 864 2 676 727 2 406 281
704 982
631 708
1 529 654 1 009 802 180 001 433 420 436 204 3 589 081
1 438 906 919 626 863 693 184 572 403 896 3 810 693
1 438 906 294 645 -203 897 1 529 654
1 109 694 435 990 -106 779 1 438 906
919 626 90 176 1 009 802
772 489 147 137 919 626
863 693 -467 701 -215 991 180 001
393 152 508 086 -37 545 863 693
CONSUMER DEPOSITS Electricity and Water The fair value of consumer deposits approximate their carrying value. Interest is not paid on these amounts.
5
CURRENT EMPLOYEE BENEFITS Staff Leave Bonuses 13th Cheque Performance Bonuses Current Portion of Long Service Awards Current Portion of Post Retirement Benefit
Staff Leave Balance at beginning of year Increase in leave provision Payments made during year Bonuses 13th Cheque Balance at beginning of year Contributions for year Increase/(Decrease) in bonus provision Performance Bonuses Balance at beginning of year Increase in bonus provision Expenditure incurred
42
HANTAM MUNICIPALITY
42
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 6
PAYABLES FROM EXCHANGE TRANSACTIONS Trade Creditors Payments in Advance Other Creditors Suspense Accounts
7
2015 R
6 712 796 697 370 10 800 305 98 999.46
1 982 653 438 182 7 707 642 5 150.00
18 309 471
10 133 627
1 261 509 216 425 1 477 934
10 955 319 119 1 145 069 1 475 144
UNSPENT CONDITIONAL GOVERNMENT GRANTS AND RECEIPTS National Government Grants Provincial Government Grants Other Sources - DWA Regional Bulk Infrastructure Grant
331 661
Refer to Note for more information 8
UNSPENT PUBLIC CONTRIBUTIONS Other Contributions
9
10
-
26 474 26 474
TAXES VAT Receivable Year-End Creditors VAT Receivable Control Account
423 452 2 484 634 2 908 087
346 559
VAT Provision Outstanding Debtors
3 653 251
1 765 895
PROPERTY, PLANT AND EQUIPMENT See separate sheet
12 096 334 463
43
HANTAM MUNICIPALITY
45
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 11
HERITAGE ASSETS Net carrying amount as at 1 July 2014 PLUS: Additions/Revaluation LESS: Disposals Net carrying amount as at 30 June 2015
Calvinia Museum Erven 299 Loeriesfontein Museum Erven 355 Kerkstraat Erven Akkerendam Nature Reserve
12
2015 R Restated
1 618 055 1 618 055 1 618 055
1 300 000 282 500 25 555 1 608 055
INVESTMENT PROPERTIES Net carrying amount at 1 July 2015 Cost Accumulated depreciation Transfer to Property, Plant and Equipment Cost Accumulated depreciation Additions for the Year/Revaluation Depreciation for the year Balance at 30 June 2016 Cost Accumulated depreciation
1 608 055 10 000 1 618 055 1 618 055
1 300 000 282 500 10 000 25 555 1 618 055
Restated 26 346 562 26 346 562 -
12 179 648 12 179 648 -
-
-238 686 -238 686 -
-
14 405 600
26 346 562 26 346 562 -
26 346 562 26 346 562 -
67 500 67 500
67 500 67 500
For disclosure - see note 10 13
BIOLOGICAL ASSETS Bearer biological assets Net carrying amount at 1 July 2015 Additions for the Year Fair Value as at 30 June 2016 150 Springboks @ R450
44
HANTAM MUNICIPALITY
46
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 14
2015 R
LONG-TERM RECEIVABLES Balance at year end of long-term consumer debtors LESS: Current portion transferred to current receivables Total Long-Term Receivables
161 448 -102 759 58 689
382 504 -157 338 225 166
77 995 77 995
56 241 56 241
9 555 412 9 555 412
10 552 601 10 552 601
9 566 089 9 566 089
10 530 847 10 530 847
67 318 67 318
77 995 77 995
These are consumer debtors that entered into an agreement for longer than 12 months to settle their outstanding debt 15
INVENTORY OPENING BALANCES Consumable stores at cost - Stationary and materials Water - At purification cost ADDITIONS Consumable Stores Water ISSUED(EXPENSED) Consumable Stores Water CLOSING BALANCE OF INVENTORIES Consumable Stores Water
16
RECEIVABLES FROM EXCHANGE TRANSACTIONS GROSS BALANCES R
PROVISION IMPAIRMENT R
NETT BALANCES R
As at 30 June 2016 Electricity Water Refuse Sewerage Other Arrears Recognition of Revenue - Water Recognition of Revenue - Electricity Recognition of Revenue - Sanitation LESS: Long-Term Receivables Total: Receivables from Exchange Transactions VAT Outstanding
3 680 386 8 695 934 7 065 290 4 997 501 3 020 423 27 459 534 182 718 1 102 847 28 745 097 -161 448 28 583 649 3 653 251 32 236 900
1 937 853 8 016 244 6 667 153 4 380 442 1 827 067 22 828 759
3 493 280 6 851 737 5 347 885 3 670 641 2 783 836 22 147 378 133 470 809 816
2 549 083 4 999 784 3 902 407 2 678 505 2 031 394 16 161 173
944 197 1 851 953 1 445 478 992 136 752 442 5 986 205 133 470 809 816
16 161 173
6 929 490 -382 503 6 546 987 2 984 431 9 531 419
22 828 759 22 828 759 22 828 759
1 742 533 679 690 398 137 617 059 1 193 356 4 630 775 182 718 1 102 847 5 916 339 -161 448 5 754 891 3 653 251 9 408 142
As at 30 June 2015 Electricity Water Refuse Sewerage Other Arrears Recognition of Revenue - Water Recognition of Revenue - Electricity Recognition of Revenue - Sanitation LESS: Long-Term Receivables Total: Receivables from Exchange Transactions VAT Outstanding
23 090 662 -382 503 22 708 159 2 984 431 25 692 591
16 161 173 16 161 173
45
HANTAM MUNICIPALITY
47
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 16
2015 R
RECEIVABLES FROM EXCHANGE TRANSACTIONS (Continued) Ageing of Receivables from Exchange Transactions Electricity: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer
1 241 358 138 389 144 021 2 156 618 3 680 386
1 248 193 131 967 88 705 2 024 415 3 493 280
753 904 275 373 269 790 7 396 867 8 695 934
675 142 268 045 229 320 5 679 230 6 851 737
594 900 218 835 209 609 6 041 944 7 065 288
468 930 161 530 158 017 4 559 408 5 347 885
607 890 186 584 169 985 4 033 043 4 997 502
530 929 176 824 154 718 2 808 170 3 670 641
144 530 57 423 54 137 2 764 335 3 020 425
135 330 43 353 44 051 2 561 102 2 783 836
21 390 220 2 576 206 360 668 -1 498 335 22 828 759
23 247 422 9 449 147 1 218 536 -12 524 885 21 390 220
Water: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Refuse: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Sewerage: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Other Arrears: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Trade and other receivables past due but not impaired Trade and other receivables which are less than 3 months past due are not concidered to be impaired. At 30 June 2016 , R2 927 682 (2014: R6 511 399) were past due but not impaired. Trade and other receivables are concidered to be past due after six months of outstanding balances. Reconciliation of the Total doubtful debt provision Balance at beginning of the year Increase/(Decrease) in Provision VAT portion of provision Doubtful debts written off against provision Balance at end of the year
46
HANTAM MUNICIPALITY
48
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 17
2015 R
RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS Other Receivables Rates Miscellaneous
8 480 063 1 725 869 10 205 933
LESS: Allowance for doubtful debts Total receivables from non-exchange transactions
10 205 933
7 165 922 1 425 198 8 591 119 -5 229 047 3 362 072
606 156 160 003 147 334 7 566 570 8 480 063
540 885 137 187 142 828 6 345 022 7 165 922
Ageing of Receivables from Non- Exchange Transactions Rates: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Trade and other receivables past due but not impaired Trade and other receivables which are less than 3 months past due are not concidered to be impaired. At 30 June 2016 , R913 493 (2015: R820 900) were past due but not impaired. Trade and other receivables are concidered to be past due after six months of outstanding balances. Summary of Receivables by Customer Classification 2016 Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer LESS: Provision for doubtful debts Total recoverable debtors by customer classification
Commercial
Residential
Government
Total
679 625 65 260 98 576 1 157 852 2 001 313 -1 271 425 729 888
2 810 180 924 950 858 119 27 943 620 32 536 869 -20 670 526 11 866 343
458 933 46 397 38 181 852 387 1 395 898 -886 807 509 091
3 948 738 1 036 607 994 876 29 953 859 35 934 080 -22 828 758 13 105 322
694 528 50 228 31 619 1 030 480 1 806 855 -1 155 062 651 793
2 463 631 782 348 718 812 22 150 145 26 114 936 -16 694 402 9 420 534
441 250 86 330 67 208 791 202 1 385 990 -886 017 499 973
3 599 409 918 906 817 639 23 971 827 29 307 781 -18 735 481 10 572 300
797 193 16 667 53 767 1 500 869 127
1 096 074 103 088 2 133 029 1 500 3 333 691
2015 Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer LESS: Provision for doubtful debts Total recoverable debtors by customer classification
18
CASH AND CASH EQUIVALENTS Primary Bank Account-Standard Bank Secondary Bank Account - ABSA Bank Secondary Bank Account - FNB Secondary Bank Account - STD Bank Call Investments Cash Floats
47
HANTAM MUNICIPALITY
49
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 18
2015 R
CASH AND CASH EQUIVALENTS (continued) The Municipality has the following bank accounts Current Accounts ABSA Bank - Account No. 1620 000 031 (Secondary Bank Account) Cash Book balance at beginning of year Cash Book balance at end of year
32 614 16 667
44 224 32 614
Bank Statement balance at beginning of year Bank Statement at end of year
33 848 14 911
62 736 33 848
Standard Bank - Account No. 08 298 352 6 (Primary Bank Account) Cash Book balance at beginning of year Cash Book balance at end of year
452 698 797 193
4 437 787 452 698
Bank Statement balance at beginning of year Bank Statement at end of year
439 897 817 802
4 730 021 439 897
1 500
1 500
3 621 3 247 2 733 1 423 38 847 1 015 1 043 1 838 53 767
3 239 2 500 1 782 540 97 018 1 974 3 044 50 667 192 048 2 133 029
Cash Floats Call Investment Deposits Call investment deposits consists of the following accounts Financial Management Grant Municipal Systems Improvement Grant Call Deposit CRR Hantam DBSA Municipal Infrastructure Grant 110 Houses Brandvlei Hantam EPWP Hantam INEP Hantam Surplus Cash Credit quality of cash at bank and short term deposits, excluding cash on hand The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or historical information about counterparty default rates. Credit ratings for Standard Bank (F3) and ABSA (F2) respectively..
48
HANTAM MUNICIPALITY
50
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 19
2015 R
PROPERTY RATES Actual Rateable Land and Buildings Cat A - Residential Properties Cat B - Industrial Properties Cat C - Business and Commercial Cat D - Farms - Agriculture Cat F - Small Holdings Cat Fi - Small Holdings for agriculture purposes Cat Fii - Small Holdings for residential purposes Cat Fiii - Small Holdings for industrial purposes Cat FV - Small Holdings for other purposes Cat G - State Owned properties Cat H - Municipal Properties Cat R - Properties used for multiple purposes Cat I Cat Q Cat V Cat SI LESS: Rebates Total Assessment Rates
7 540 441
6 825 833
3 539 032 22 391 1 185 481 1 633 866
3 300 368 21 203 1 100 750 1 416 806
9 049 7 940
1 529 16 226
497 425 -
580 513 803
4 339 144 013 496 905
4 180 96 778 286 677
-651 381
-613 238
6 889 060
6 212 595
487 920 200 2 213 200 122 621 000 2 175 214 100 2 383 000 4 538 500 72 399 800 16 773 200 414 441 900 17 146 400 66 946 300 3 382 597 600
484 300 000 2 213 200 119 499 500 2 173 470 600 2 383 000 2 973 600 71 946 900 17 254 500 414 511 400 16 004 400 64 680 000 3 369 237 100
0.01027485 0.01027485 0.01027485 0.01027485 0.00067779
0,00972997 0,00972997 0,00972997 0,00972997 0,00064185
Valuations - 30 June Cat A - Residential Properties Cat B - Industrial Properties Cat C - Business and Commercial Cat D - Farms - Agriculture Cat F - Small Holdings Cat Fi - Small Holdings for agriculture purposes Cat Fii - Small Holdings for residential purposes Cat Fiii - Small Holdings for industrial purposes Cat FV - Small Holdings for other purposes Cat G - State Owned properties Cat H - Municipal Properties Cat R - Properties used for multiple purposes Cat I Cat Q Cat V Cat SI Total Assessment Rates Tariffs Brandvlei - Land and buildings Calvinia - Land and buildings Loeriesfontein - Land and buildings Nieuwoudtville - Land and buildings Agriculture Properties
49
HANTAM MUNICIPALITY
51
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R
20
2015 R
GOVERNMENT GRANTS AND SUBSIDIES Unconditional Grants Equitable Share
20 652 000 20 652 000
20 566 000 20 566 000
Conditional Grants
21 872 548
25 497 235
1 342 008 470 888
1 799 621 932 540 990 884 9 953 000 1 308 000 729 881 3 428 272 6 355 037 -
National FMG Grant National MSIG Grant National INEP Grant National MIG Grant National EPWP Grant Provincial Library Grant DWA - Accelerated Infrastructure Programme DWA - Regional Bulk Infrastructure
9 208 551 1 153 000 1 732 119 7 965 982 -
Public Donations Public Donations
-
-
Total Government Grants and Subsidies
42 524 548
46 063 235
Government Grants and Subsidies - Operating Government Grants and Subsidies - Capital Public Contributions
25 350 015 17 174 533
25 336 042 20 727 194
42 524 548
46 063 236
20.1 Equitable Share In terms of the Constitution, this grant is used to subsidise the provision of basic services to indigent community members
20 652 000
20 566 000
20.2 National MIG Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue VAT Portion transferred to revenue Amount withheld 2013 Conditions still to be met - transferred to current liabilities
1 9 542 000 -9 235 024 306 977
1 9 953 000 -9 953 000
20.3 National FMG Grant Balance unspent at beginning of year Current year receipts Transfer to National Treasury Conditions met - transferred to revenue Conditions still to be met - transferred to current liabilities
380 1 800 000 -1 342 008 458 372
20.4 National MSIG Grant Balance unspent at beginning of year Current year receipts Transfer to National Treasury Conditions met - transferred to revenue VAT Portion transferred to revenue Conditions still to be met - transferred to current liabilities
1 460 930 000 -470 888 460 572
20.5 National INEP Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue VAT Portion transferred to revenue Payment made to Eskom Conditions still to be met - transferred to current liabilities
1
1 800 000 -1 799 621 379
934 000 -932 540 1 460
9 116 1 000 000 -990 884
9 116
9 116
20.6 National EPWP Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - transferred to current liabilities
1 153 000 -1 153 000 -
1 308 000 -1 308 000 -
20.7 Provincial LIBRARY Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - transferred to current liabilities
319 119 1 413 000 -1 732 119 -
115 001 934 000 -729 881 319 120
20.8 Namaqua District Municipality Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - transferred to current liabilities
-
20.9 Accelerated Infrastructure Programme - DWA Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue VAT Portion transferred to revenue Conditions still to be met - transferred to current liabilities
-
20.10 Regional Bulk Infrastructure Grant - DWA Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue VAT Portion transferred to revenue Conditions still to be met - transferred to current liabilities 21
22
FINES Court Fines Library Fines Traffic Fines OTHER INCOME Game Sales Lost Materials Photostats Reduced Amperes Sale of Stone and Gravel Sundry Auction Library Staff Capacity Water Affairs VAT Coghsta Insurance Claim - Nieuwoudtville line Deduction - Councillor's Other Surplus Cash Transaction Fees
-
3 428 272 -3 428 272 -
1 145 069 7 037 338 -7 965 982 216 425
7 500 107 -6 355 037
63 275 10 772 74 047
110 830 10 097 120 927
6 140 146 7 690 2 193 176 329 788
1 028 7 477 1 754 321 676 013 49 714 382 361 60 465
329 788 1 586 14 478 362 198
183 473
1 145 070
686 593
50
HANTAM MUNICIPALITY
52
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 23
2015 R
SERVICE CHARGES Sale of Electricity Sale of Water Refuse Removal Sewerage and Sanitation Charges Other Service Charges LESS: Income Foregone Total Service Charges
22 740 406 7 764 433 5 402 141 5 521 992 540 287 41 969 259 -3 255 034 38 714 225
20 256 882 7 235 057 4 797 232 5 131 523 429 835 37 850 529 -3 849 152 34 001 376
24 541 253 5 175 401 1 267 636 182 791 846 076 32 013 158
21 777 194 4 536 452 1 306 955 207 144 1 219 899 29 047 644
814 096 33 000 786 111 1 633 207
658 107 0 58 000 913 952 1 630 059
70 817 5 144
303 680 40 952 344 632
Income foregone relates to rebates given to Indigents. 24
EMPLOYEE RELATED COSTS Employee Related Costs - Salaries and Wages Employee Related Costs - Company Contributions Motor Vehicle Allowances Housing Benefits and allowances Performance Bonus paid Overtime Payments Total Employee Related Costs There were no advances outstanding to employees. Key Management Personnel Remuneration of Key Management Personnel Remuneration of Municipal Manager Annual remuneration Performance Bonus Car Allowance Lump sum payments due to termination of Municipal Manager
Municipal Manager Vacant during 2016: Acting Allowances J.R. van Wyk S.M.Coetzee
75 961 Remuneration of Individual Head of Departments: 2016 Annual remuneration 13th Cheque Performance Bonus Car Allowance Contributions to UIF, Medical and Pension Funds
Acting Allowance paid during 2015/2016 due to vacancies and Leave G.M.J.Lock J.H. Langner
Remuneration of Individual Head of Departments: 2015 Annual remuneration 13th Cheque Performance Bonus Car Allowance Contributions to UIF, Medical and Pension Funds
Chief Financial Officer
Infrastructure Services
Corporate Services
392 224
583 345
10 000
22 632 96 000
24 720
402 224
701 977
546 858
Chief Financial Officer
Infrastructure Services
706 326
Corporate Services
Infrastructure Services 276 016
Corporate Services
416 180 31 662 142 053 102 009 123 075 814 979 Social Services
385 685 29 590 102 009 110 722 628 006
24 000
48 000
36 000
324 016
666 474
Infrastructure Services
Social Services
630 474
730 326 Chief Financial Officer
Social Services
49 970
107 689
Chief Financial Officer
522 138
Corporate Services
Social Services
Acting Allowance paid during 2014/2015 due to vacancies and Leave J.R. van Wyk J.H. Langner
25
79 001 36 793
REMUNERATION OF COUNCILLORS Full Time Mayor Councillors Data Card Allowance Cell Allowance Travel Allowance
469 854 1 293 153 32 400 187 248 587 787 2 570 442
504 572 1 192 974 32 400 187 812 571 849 2 489 607
51
HANTAM MUNICIPALITY
53
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 26
27
28
DEBT IMPAIRMENT Receivables from Exchange and Non-Exchange Transactions
FINANCE CHARGES Long-Term Liabilities: Annuity Loan Finance Leases Interest Cost - Landfill Sites Interest Cost - Employee Benefits
9 449 147
5 710 26 714 1 458 317 1 244 040 2 734 781
32 080 49 061 485 136 1 026 202 1 592 479
19 215 551 88 221 19 303 772
13 911 720 -12 982 13 898 737
225 640 225 640
164 969
GRANTS AND SUBSIDIES PAID Churches and Religious Bodies
30
2 576 206
BULK PURCHASES Electricity Water
29
2015 R
GENERAL EXPENSES Advertisements Bargaining Council Books and Periodicals Chemicals Cleansing Communication / Media Library expenses Connection Materials Deed Returns Electricity Entertainment & Receptions MSIG Grant Expenditure FMG Grant Expenditure Household Expenditure Legal Fees License Fees - Financial Programmes Lost Books and Records Materials / Toxins Middelpos Medical And First Aid Expenses Membership Fees Pest Control Postbox Rent Postal Services Printing and Stationery Purifying Refreshments Refuse Bags / Containers Rental Photocopiers Rent - Plant and Vehicles Sanitation Special Programs Subsistence and Travelling Subsistence and Travelling Councillors Sundries Actuarial Loss Food for Waste Programme Expanded Works Programme Safety for Mayor Fire Nieuwoudtville Other Telephone Telephone Rental Data Line Tourism Training Traffic Signs Transport Uniforms and Protective Clothing Water Water Reducing Valves Water Samples Financial Services Bank Charges External Audit Fees Insurance - General Insurance - W.C.A. Skills Development Levy (Seta)
38 129 13 828 1 842 19 111 197 091 14 452 24 894 979 937 9 993 470 888 1 342 008 45 564 438 406 220 358 6 901 15 620 200 000 3 051 1 145 172 476 262 653 411 297 66 139 8 792 5 195 310 200 543 682 675 351 685 682 263
682 263 302 818 257 176 4 958 120 028 36 930 41 015 122 883 218 7 676 288 051 165 617 2 272 795 330 828 212 076 293 756 16 533 876
164 969
92 545 12 177 1 549 2 026 23 898 729 881 11 864 16 214 686 161 9 989 932 540 1 799 621 29 836 424 112 5 500 182 388 3 434 26 903 4 941 877 156 506 164 474 295 492 46 670 2 942 3 924 683 13 642 168 325 811 017 458 386 2 362 089 1 472 622 778 405 40 000 50 188 20 874 279 450 256 190 9 997 218 622 55 295 33 951 98 877
139 460 138 790 1 251 223 307 465 211 070 273 101 16 674 172
52
HANTAM MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
54 2016 R
31
32
EMPLOYEE BENEFITS -TRANSFER TO AND FROM PROVISIONS Leave Provision plus 13th Cheque Bonus Contribution to Performance Bonuses Contribution to Post Retirement Contribution from Post Retirement Contribution to Long Service Awards Contribution from Long Service Awards
384 822 -467 701 407 892 -403 896 177 009 98 126
583 129 508 086 401 808 -343 572 131 707 1 281 158
4 290 345
7 659 361
6 389 749 21 668 805 -502 768
7 957 -192 533 4 383 683 3 106 151 946 890
-382 491 32 424 31 496 064 10 677 344 332 -8 186 852 -23 684 8 175 844 668 820 32 485 201
-457 648 81 141 15 535 002 -21 754 3 720 740 -348 790 1 360 143 3 902 350 -711 342 23 436 349
886 426 -886 426 775 000 775 000
10 320 -10 320 886 426 886 426
RECONCILIATION BETWEEN NET SURPLUS/(DEFICIT) FOR THE YEAR AND CASH GENERATED/(ABSORBED) BY OPERATIONS Surplus for the year Adjustment for: Loss on disposal of property, plant and equipment Proceeds on disposal of property plant and equipment Depreciation Contribution to provisions - non-current Contributions to provisions - current Contribution to bad debt provision Actuarial Loss Investment Income Finance Charges Operating surplus before working capital charges Decrease in Inventory (Increase)/Decrease in Debtors (Increase)/Decrease in other Debtors Increase/(Decrease) in conditional grants and receipts Increase/(Decrease) in Creditors Increase/(Decrease) in VAT Cash Generated by Operations
33
2015 R
UNAUTHORISED, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE
33.1 Fruitless and Wasteful Expenditure Reconciliation of Fruitless and Wasteful Expenditure Opening Balance Condoned or written off by Council Fruitless and Wasteful expenditure for current year Fruitless and Wasteful expenditure awaiting condonement Incident
Disciplinary Steps
Interest of paid to the Auditor-General on the amount outstanding An amount of R775 000 paid to the previous municipal manager as a result of a settlement agreement
None
2015 Incident
Disciplinary Steps
Interest of R23 700 paid to the Auditor-General on the amount outstanding An amount of R822 726 paid to the previous municipal manager as a result of a settlement agreement An amount of R40 000 were paid for the security of the mayor without approval of the MEC and police report
None None None
33.2 Irregular Expenditure Reconciliation of Irregular Expenditure Opening Balance Condoned or written off by Council Irregular expenditure for current year Irregular expenditure awaiting condonement
Restated 3 803 565 -5 782 313 2 751 035 772 287
766 642 -766 642 3 803 565 3 803 565
(The Irregular listing of expenses for 2015 is restated)
33.3 Deviations according to SCM Regulations Reconciliation of Deviations Opening Balance Condoned or written off by Council Deviations for current year Deviations awaiting condonement For list of Deviations and Irregular Expenditure - see App.E
Restated 2 697 440 -5 348 007 2 971 062 320 495
632 077 -632 077 2 697 440 2 697 440
53
HANTAM MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
55
2016 R
33
UNAUTHORISED, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE (continued) 33.3 Unauthorised Expenditure Reconciliation of Unauthorised Expenditure Opening Balance Unauthorised expenditure current year - operating Unauthorised expenditure current year - capital Condoned or written off by Council Unauthorised expenditure awaiting condonement Incident
2 267 899
2015 R
2 026 673 2 267 899
2 267 899
-2 026 673 2 267 899
1 491 364 2 249 988 -885 002 2 856 350
986 519.00 1 251 223 -746 378 1 491 364
Disciplinary Steps None None None None None
2015 An amount of R125 826 were paid for subsistance and travel in the case of the DA against the mayor. Over expenditure of approved budget for Collection Costs with R56 563 due to the increase in pre-paid meters and increase in vendors. Over expenditure of approved budget for Finance Charges with R161 222 because there was under budgeted for the interest part of the employee benefits due to new valuation Over expenditure of approved budget for General Expenses with R1 752 663 due to actuarial losses of R1 472 622 and increase in vehicle costs due to water crisis in Loeriesfontein Over expenditure of approved budget for Contracted Services with R75 215 due to security personnel appointed
34
None None None None None
ADDITIONAL DISCLOSURES IN TERMS OF THE MFMA
34.1 Audit Fees Opening Balance Current Year audit fee Amount paid current year Amount paid previous year The regulation of 1% is still in place.
54
HANTAM MUNICIPALITY
56
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 34
2016 R
ADDITIONAL DISCLOSURES IN TERMS OF THE MFMA (Continued)
34.2 VAT Opening Balance Output VAT Input VAT Operating VAT Control Account Year-End Sundry VAT Amounts received/Paid - previous years Amounts received - current year Amount claimed - current year Amount paid - current year Corrections
VAT Control Account Input VAT Operating Input VAT Capital Output VAT Input VAT Reclaim Year -End Sundry VAT
34.3 PAYE and UIF and SDL Opening Balance Current year payroll deductions Amount paid - current year Amount paid - previous year Balance unpaid 34.4 Pension Fund and Medical Aid Deductions Opening Balance Current year payroll deductions Amount paid - current year Amount paid - previous year Balance unpaid
2015 R
253 161 -99 303 170 -62 006 12 096 62 032 -1 511 068 1 562 807 438 288 523 661 1 328 881
813 819 -6 407 122 026 462 572 235 628 -462 546 -2 584 444 2 584 444 359 005 854 817 1 565 095
490 054 147 368 -93 398
-62 006 303 170 93 398 -99
361 405 423 452 1 328 881
12 096 346 559
4 836 486 -4 836 486 -
4 083 057 -4 083 057 -
7 000 283 -7 000 283 -
6 235 404 -6 235 404 -
34.5 Councillor's arrear consumer accounts Outstanding less than 90 days
Total
Outstanding more than 90 days
30 June 2016 Councillor M.Esau/K.Esau Councillor G.Fortuin Councillor R.Swartz Councillor J.Swarts Councillor F.Sterkse Councillor A.Claassen Councillor J.H.Wilschut Councillor E.Fallet Councillor G.Opperman/J.J.Opperman Total Councillor arrear Consumer Accounts
1 429 4 389 130 2 240 4 013 1 161 3 020 1 409 3 925 21 716
1 375 241 130 1 444 979 1 073 2 136 1 409 3 896 12 683
54 4 148 796 3 034 88 884
30 June 2015 Councillor G.J. Engelbrecht Councillor M.Esau/K.Esau Mayor A.Fritz Councillor R.Swartz Councillor J.Swarts Councillor F.Sterkse Councillor H.Steenkamp Councillor J.H.Wilschut Councillor G.Opperman/J.J.Opperman Total Councillor arrear Consumer Accounts
0 7 469 4 518 0 1 218 1 384 0 952 816 16 357
0 10 111
7 459 4 407 324 96 243 12 529
1 218 1 060 0 856 573 3 828
29 9 033
55
HANTAM MUNICIPALITY
57
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 35
2015 R
CAPITAL COMMITMENTS Commitments in respect of capital expenditure Approved and contracted for Upgrading Sewer Network/Waste Water Treatment works Water Purification Plant Brandvlei Bulk Infrastructure Scheme Loeriesfontein Bulk Infrastructure Scheme Nieuwoudtville Rehabilitation of Dam Nieuwoudtville Bulk Water Calvinia New Cemetery Electrification of 207 Houses Loeriesfontein Upgrading of Roads
This expenditure will be financed from: Government Grants 36
24 280 140
45 302 268
507 235 1 133 061 460 827
4 128 000 10 000 000 3 324 111
808 336
4 494 698
21 370 681
23 355 459
24 280 140
45 302 268
24 280 140
45 302 268
2 000 000
2 000 000
850 820
850 820
RETIREMENT BENEFIT INFORMATION All employees contribute to the Cape Joint Municipal Pension Fund and SAMWU National Fund which is a defined contribution fund. The retirement benefit fund is subject to the Pension Fund Act, 1956, with pension being calculated on the pensionable remuneration paid. Current contributions by employees are charged against expenditure on the basis of current service costs. Full actuarial valuations are performed at least every five years. The last valuation was done during 2013.
37
CONTINGENT LIABILITY Legal Aid SA - Lamp post collapsed and fall on Charlton Matthys, a minor Legal Aid SA - Deduction amount from Cllr.Wilschut's salary for non-attendance of meetings Nick Kotze - Claim for fire damage on farm LANDFILL SITES: MIDDELPOS As no permits exists for these site a possible contingent liability could be originate of which the amount not be determined. Application submitted JAN LOUW Costs already incurred when council stopped the project
38
FINANCIAL RISK MANAGEMENT Financial Risk Management The activities of the municipality expose it to a variety of financial risks, including market risk (comprising fair value interest rate risk, cash flow interest rate risk and price risk). Credit risk and liquidity risk. The municipality overall risk management programme focusses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the municipality's financial performance. (a) Foreign exchange currency risk The municipality does not engage in foreign currency transactions (b) Interest Rate Risk The municipality is exposed to interest rate risk due to the movements in long-term and short-term interest rates. The risk is managed on an ongoing basis. (c) Credit risk Credit risk is the risk that a counter party to a financial or non-financial asset will fail to discharge an obligation and cause the Municipality to incur financial loss. Credit risk arises mainly from cash and cash equivalent, instruments and deposits with banks and financial institutions, as well as credit exposures to consumer and grant debtors. For banks and financial institutions, only independently rated parties with a minimum rating of B+ are accepted. Grants are receivable from higher order levels of government. In the case of consumer debtors the municipality effectively has the right to terminate services to consumers but in practise this is difficult to apply. This increases the credit risk in respect of consumer debtors. The risk of non-payment is managed on an ongoing basis and where practical, services are terminated and procedures applied to recover outstanding amounts owing and an appropriate level of impairment provision for default is maintained.
107 108
56
HANTAM MUNICIPALITY
58
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 38
2015 R
FINANCIAL RISK MANAGEMENT (continued) (d) Liquidity Risk Liquidity risk is the risk that the municipality will encounter difficulty in raising funds to meet commitments associated with financial liabilities. Prudent liquidity risk management includes maintaining sufficient cash and marketable securities, the availability of funding from an adequate amount of committed credit facilities. The financial liabilities of the municipality are backed by appropriate assets and it has adequate liquid resources. The council monitors the cash projections and by ensuring that borrowing facilities are available to meet its cash requirements. (e) Other risks Potential concentrations of credit risk and interest rate risk consist mainly of fixed deposit investments, long-term debtors, consumer debtors, short-term investment deposits and bank and cash balances. The municipality limits its counterparty exposures from its money market investment operations by only dealing with well-established financial institutions of high credit standing. The credit exposure to any single counterparty is managed by setting transaction/exposure limits which are included in the municipality's investment policy. These limits are reviewed annually by the CFO and authorised by the Municipal Council Consumer debtors comprise of a large number of ratepayers, dispersed across different sectors and geographical areas. Ongoing credit evaluations are performed on the financial conditions of these debtors. Consumer debtors are presented by net of an allowance for doubtful debt. Long-Term Receivables and Other Debtors are individually evaluated at Balance Sheet date for impairment of discounting. A report on the various categories of debtors is drafted to substantiate such evaluation and subsequent impairment/discounting, where applicable. The maximum credit and interest risk exposures in respect of the relevant financial instruments are as follows: Short Term Investment Deposits Receivables from Exchange Transactions Bank and Cash Balances Maximum Credit and interest Risk Exposures
39
53 767 9 408 142 815 360 10 277 269
2 133 029 9 531 419 1 200 662 12 865 110
FINANCIAL INSTRUMENTS Consumer Debtors Service Debtors Other Debtors
Loans and Receivables Loans and Receivables
13 203 046 1 193 356
11 537 182 2 585 850
Other Debtors Sundry debtors
Loans and Receivables
1 725 869
1 425 198
53 767
2 133 029
813 860 1 500
1 199 162 1 500
Short-Term Investment Deposits Call deposits At amortised cost Bank Balances and Cash Bank Balances and Cash Cash Floats and Advances
At amortised cost
57
HANTAM MUNICIPALITY
59
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 39
2015 R
FINANCIAL INSTRUMENTS (continued) SUMMARY OF FINANCIAL ASSETS At amortised cost Short-Term Investments Bank Balances and Cash Cash Floats and Advances
53 767 813 860 1 500 869 127
2 133 029 1 199 162 1 500 3 333 691
13 203 046 1 193 356 1 725 869 16 122 272
11 537 182 2 585 850 1 425 198 15 548 230
16 991 398
18 881 921
Loans and Receivables Consumer debtors Consumer debtors Other Debtors
Services Other Sundry Debtors
Total Financial Assets Financial Liabilities Financial Liabilities of the municipality are classified at amortised cost Long-Term Liabilities Annuity Loans Lease Liability
40
At amortised cost At amortised cost
-
78 388
Consumer Deposits Electricity and Water
At amortised costs
704 982
631 708
Payables Trade payables
At amortised costs
18 309 471
9 558 686
Current portion of Long-Term Liabilities Annuity Loans At amortised costs Lease Liability At amortised costs
78 388
336 680 169 037
19 092 841
10 774 499
EVENTS AFTER REPORTING DATE The Municipality is not aware of any events that happened after the reporting date that should have an influence on the financial statements
41
PRIVATE PUBLIC PARTNERSHIPS
42
RELATED PARTIES
None
Key Management and Councillors receive and pay for services on the same terms and conditions as other ratepayers/residents.
42.1 Related Parties Transactions Year ended 30 June 2016 Councillors Municipal Manager and Senior Management
Year ended 30 June 2015 Councillors Municipal Manager and Senior Management
Rates
Services
Other
Outstanding
4 554 10 541 15 095
51 608 30 507 82 115
37 733 6 502 44 235
17 407 8 251 25 658
12 515 6 853 19 368
62 345 19 630 81 975
1 862 1 003 2 865
19 275 7 495 26 770
The Rates, service charges and other charges are in accordance with approved tariffs that were advertised to the public. No bad debt expenses have been recognised in respect of amounts owing by related parties.
2016 R Awards to close family members Jo's Catering Services S.J.A.Fritz Council have incurred expenses for services rendered by Jo's Catering Services and SJA Fritz is the brother and sister of Mayor A.F.Fritz. Jo's Catering Services had declared his interest.
2015 R 33 550 36 970
129 270
58
HANTAM MUNICIPALITY
60
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
42
2016 R
2015 R
2016 Variance
2016 Variance %
RELATED PARTIES (continued)
42.2 Compensation of key management personnel The compensation of key management personnel is set out in note 25 to the Annual Financial Statements.
43
BUDGET COMPARISONS 2016 REVENUE Property rates Service charges Rental of facilities and equipment Interest earned - external investments Interest earned - outstanding debtors Fines Licences and permits Government grants and subsidies - Operating Government grants and subsidies - Capital Other income Profit on sale of assets Public contributions, donated/contributed LESS: Income Foregone Total Revenue EXPENDITURE Employee related costs Remuneration of Councillors Bad debts Collection costs Depreciation Repairs and maintenance Finance Charges Bulk purchases Contracted services Grants and subsidies paid General expenses - other Provision - Post employment benefits Loss on disposal of property, plant and equipment Total Expenditure NET SURPLUS/(DEFICIT) FOR THE YEAR
2016 Actual
2016 Budget
7 540 440 41 969 259 160 948 382 491 1 489 320 74 047 1 201 480 25 350 015 17 174 533 362 198
7 549 441 43 875 559 168 700 430 000 1 618 895 93 000 1 500 100 25 958 000 26 383 000 6 596 928
-3 906 415
-651 349
9 001 1 906 300 7 752 47 509 129 575 18 953 298 620 607 985 9 208 467 6 234 730 0 3 255 066
91 798 315
113 522 274
21 723 959
32 013 158 2 570 442 2 576 206 649 907 6 389 749 3 814 178 2 734 781 19 303 772 598 137 225 640 16 533 876 98 125
32 058 994 2 641 495 3 657 040 530 000 4 285 051 3 496 970 1 682 225 21 134 480 599 780 225 640 15 638 572 1 079 095
87 507 970 4 290 345
87 029 342 26 492 932
45 836 71 053 1 080 834 -119 907 -2 104 698 -317 208 -1 052 556 1 830 708 1 644 0 -895 304 980 970 0 -478 628 22 202 587
0.12 4.34 4.59 11.05 8.00 20.38 19.91 2.34 94.51 0.00 -499.74
0.14 2.69 29.55 -22.62 -49.12 -9.07 -62.57 8.66 0.27 0.00 -5.72 90.91
Details of material variances Revenue
External Investments- -R47 509 (11.05%) Interest Outstanding Debtors - R302 358 (29.64%) Fines - R18 953 (20.38%) Lisence and Permits - R298 620 (19.91%) Other Income - R6 234 730 (94.51%) Income Foregone - R3 255 066 (499.74%) Expenditure
Emergency expenditure for water drain the cash flow Increase in Outstanding Debtors Suspension of traffic officer Over budget Catering for non-cash items in the budget Free Basic Services included in Service Charges
Bad Debt Impairment - R1 080 834 (29.55%) Collection Costs - R119 907 (22.62%) Provision Employment Benefits - R980 970 (90.91%) Depreciation - R2 104 698 (49.12%)
Over Provision previous years and increase in Indigents Increase in pre-paid vendors and pre-paid meters installed Performance bonus paid against liability and over budget Depreciation on IGRAP i.c.w. Landfill Sites and unbundeling of infrastructure assets.
59
HANTAM MUNICIPALITY
61
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 43
BUDGET COMPARISONS (continued) 2015
REVENUE Property rates Service charges Rental of facilities and equipment Interest earned - external investments Interest earned - outstanding debtors Fines Licences and permits Government grants and subsidies - Operating Government grants and subsidies - Capital Other income Profit on sale of assets Public contributions, donated/contributed LESS: Income Foregone Total Revenue EXPENDITURE Employee related costs Remuneration of Councillors Bad debts Collection costs Depreciation Repairs and maintenance Finance Charges Bulk purchases Contracted services Grants and subsidies paid General expenses - other Provision - Post employment benefits Loss on disposal of property, plant and equipment Total Expenditure NET SURPLUS/(DEFICIT) FOR THE YEAR
2015 Actual
2015 Budget
2015 Variance
7 540 440 41 969 259 160 948 382 491 1 489 320 74 047 1 201 480 25 350 015 17 174 533 362 198 184 576 -3 906 415
7 549 441 43 875 559 168 700 430 000 1 618 895 93 000 1 500 100 25 958 000 6 596 928 -651 349
9 001 1 906 300 7 752 47 509 129 575 18 953 298 620 607 985 -17 174 533 6 234 730 -184 576 3 255 066
91 982 891
87 139 274
-4 843 617
32 013 158 2 570 442 2 576 206 649 907 4 383 683 3 814 178 1 810 113 19 303 772 598 137 225 640 16 533 876 98 125
32 058 994 2 641 495 3 657 040 530 000 4 285 051 3 496 970 1 682 225 21 134 480 599 780 225 640 15 638 572 1 079 095
45 836 71 053 1 080 834 -119 907 -98 632 -317 208 -127 888 1 830 708 1 644 0 -895 304 980 970
84 577 236 7 405 656
87 029 342 109 932
2 452 106 -7 295 724
2015 Variance %
Details of material variances Revenue
External Investments- R57 648 (14.41%) Interest Outstanding Debtors - R302 358 (29.64%) Fines - R72 927 (151.93%) Other Income - R731 578 (1508.97%) Income Foregone - R3 850 993 (629.87%) Expenditure
Transfers and Surplus Cash Invest during year Increase in Outstanding Debtors Recognition of fines Transfer of VAT on Conditional Grants to Income Free Basic Services included in Service Charges
Bad Debt Impairment - R5 921 402(167.85%) Collection Costs - R56 563 (12.57%) Finance Charges - R161 222 (11.26%) General Expenses - R1 752 663 (11.75%)
Over Provision previous years and increase in Indigents Increase in pre-paid vendors and pre-paid meters installed Actuarial Valuations Actuarial Loss of R1 427 622 and increase in vehicle costs due to water crisis in Loeriesfontein Actuarial Valuations Security personnel New infrastructure assets
Provision Employment Benefits - R332 658 (35.07%) Contracted Services - R75 215 (13.96%) Depreciation - R68 427 (1.59%)
0.12 4.34 4.59 11.05 8.00 20.38 19.91 2.34 94.51 0.00 -499.74
0.14 2.69 29.55 -22.62 -2.30 -9.07 -7.60 8.66 0.27 0.00 -5.72 90.91
60
HANTAM MUNICIPALITY
62
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 43
2016 R
BUDGET COMPARISONS (continued)
2015 R
43.1 Reconciliation of Budget surplus/(deficit) with the surplus/(deficit) in the statement of financial performance Net surplus per the statement of financial performance - Deficit on the sale of assets - Gain on Fair Value Adjustments - Government Grants used for property, plant and equipment
44
4 290 345 -
7 659 361 0 -184 576 -20 727 194
4 290 345
-13 252 408
- Other adjustments Budget Surplus - revenue Budget overspending - expenditure
-22 202 587 -21 723 959 478 628
-7 200 272 -4 983 939 2 216 333
Net surplus per approved budget
26 492 932
-6 052 136
Water (%) Water Rand Value
13.70 1 312 226
17.05 1 799 592
Electricity (%) Electricity Rand Value
15.85 2 698 265
16.70 2 872 482
MATERIAL LOSSES The following material distribution losses incurred during the year:
45
CORRECTION OF ERROR During the year ended 30 June 2014 and previous years, PPE and other assets were incorrectly recognised. The comparative amount has been restated as follows: Non-Current Provisions Balance previously reported IGRAP 2 Adjustment not recognised in periods before 1 July 2014 Correction of 2014/15 interest Reversal of provision not recognised in periods before 1 July 2014 Restated balance on 30 June 2015
5 336 493 18 428 482 890 635 -350 323 24 305 287
Property, plant and equipment Removal of Assets Write-Off of Assets Recognize of Assets Write-Off of Assets Corrections made Landfill Sites
24 232 114 470 059 -36 781 693 -10 834 746 2 498 379 540 313
Retention Money Correction
7 000 -19 868 574
19 868 574
Net effect on Accumulated surplus opening balance
-
Revaluation of property, plant and equipment Net effect on Statement of Financial Position - Revaluation Reserve
46
NATIONAL TREASURY APPROPRIATION STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
2015/2016
BUDGET SUMMARY Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
Description
Variance
Actual Outcome
budget
as % of Original Budget
1
2
3
4
5
6
Financial Performance Property Rates Service Charges Investment revenue Transfers recognised - operational Other own revenue Total Revenue (excl. capital transfers and contributions)
6 559 009 43 227 469 1 865 293 25 958 000 8 310 021 85 919 792
-339 083 -648 089 -183 602 0 -48 707 -1 219 481
6 898 092 43 875 558 2 048 895 25 958 000 8 358 728 87 139 273
7 540 440 41 969 259 1 871 811 25 350 015 -2 107 742 74 623 783
Employee costs Remuneration of councillors Debt impairment Depreciation and asset impairment Finance charges Materials and bulk purchases Transfers and Grants Other expenditure Total Expenditure Surplus/(Deficit) Transfers recognised - capital Surplus/(Deficit) after capital transfers
30 902 043 2 771 348 3 727 040 4 315 256 1 682 225 21 134 480 181 467 21 142 906 85 856 765 63 027 26 383 000 26 446 027
-1 156 950 129 853 70 000 30 205 0 0 -44 173 -201 511 -1 172 576 -46 905 0 -46 905
32 058 993 2 641 495 3 657 040 4 285 051 1 682 225 21 134 480 225 640 21 344 417 87 029 341 109 932 26 383 000 26 492 932
32 013 158 2 570 442 2 576 206 4 495 019 1 810 113 19 303 772 225 640 21 694 223 84 688 573 -10 064 790 17 174 533 7 109 743
Capital expenditure & funds sources Capital expenditure Transfers recognised - capital Public contributions & donations Borrowing Internally generated funds Total sources of capital funds
26 383 000 0 90 000 26 473 000
0 0 -350 000 -350 000
26 383 000 440 000 26 823 000
0 0 0
-
Cash flows Net cash from (used) operating Net cash from (used) investing Net cash from (used) financing Cash/cash equivalents at the year end
24 354 004 -23 221 930 -457 717 681 279
449 692 250 000 0 -494 048
23 904 312 -23 471 930 -457 717 1 175 327
32 955 517 -30 058 511 -432 442 869 127
-
-209 968 -127 888 -349 806 -687 662 687 662 687 662
8
-642 348 1 906 299 177 084 607 985 10 466 470 12 515 490
99.22 481.95 310.56 99.19 378.16 1 369.09
45 835 71 053 1 080 834 -209 968 -127 888 1 830 708 -349 806 2 340 768 10 174 722 9 208 467 966 255
105.99 96.12 197.77 97.76 104.22 73.32 103.41 305.52 1 084.12 284.97 176.36 108.61
-
-9 051 205 6 586 581 -25 275 -2 489 899
113.95 1 867.36 1 981.31
530.93 -
61
62
2015/2016
Reconciliation of Budgeted Financial Performance (Standard Classification)
63
Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
1
2
4
5
Description
Variance
Actual Outcome
budget
as % of Original Budget
3
6
8
Revenue - Standard Governance and administration Executive and council Budget and treasury office Corporate services Community and public service Community and social service Sport and recreation Public Safety Housing Health Economic and environmental services Planning and development Road transport Environmental protection Trading services Electricity Water Waste water management Waste management Other Total Revenue - Standard
30 671 177 8 294 111 9 817 009 12 560 057 1 873 470 1 505 370 368 100 1 813 100 1 785 000 28 100 51 562 045 27 692 659 10 624 733 5 798 701 7 445 952
-391 678 0 -294 869 -96 809 -6 933 0 -6 933 -7 813 -813 -7 000 -813 057 -615 648 -66 234 -2 000 -129 175
31 062 855 8 294 111 10 111 878 12 656 866 1 880 403 1 505 370 375 033 1 820 913
23 772 435 1 856 567 9 228 750 12 687 118 5 961 904 5 514 362 397 542 50 000
1 785 813 35 100 52 375 102 28 308 307 10 690 967 5 800 701 7 575 127
3 464 060 70 545 58 529 371 26 201 196 20 167 195 5 489 936 6 671 044
85 919 792
-1 219 481
87 139 273
91 798 315
24 661 272 9 440 096 7 260 151 7 961 025 3 549 186 2 297 825 1 180 069 71 292 8 098 993 445 508 7 504 336 149 149 48 886 699 28 296 790 8 658 902 3 899 005 8 032 002 660 616 85 856 766 63 026
634 027 214 616 -77 140 496 551 -365 780 -177 077 -194 903 6 200 270 185 -296 457 576 084 -9 442 -1 888 858 -691 870 -432 698 232 781 -997 071 177 851 -1 172 575 -46 906
24 027 245 9 225 480 7 337 291 7 464 474 3 914 966 2 474 902 1 374 972 65 092
23 335 128 10 222 977 6 268 938 6 843 213 3 629 353 2 230 808 1 312 113 86 432
7 828 808 741 965 6 928 252 158 591 50 775 557 28 988 660 9 091 600 3 666 224 9 029 073 482 765 87 029 341 109 932
8 568 363 768 008 7 650 481 149 874 48 628 637 25 702 581 9 559 250 3 019 769 10 347 037 527 090 84 688 571 7 109 744
-
-
-
3 534 605
7 290 420 6 437 544 883 128 -30 252 -4 081 501 -4 008 992 -22 509 -50 000
217 22 94 101 474 366 108
-1 713 692
445
-1 678 247 -35 445 -13 729 396 2 107 111 -9 476 228 310 765 -6 671 044
194 251 469 95 190 95 90
-
-12 234 169
1 606
-
692 117 -997 497 1 068 353 621 261 285 613 244 094 62 859 -21 340
281 108 86 86 330 97 111 121
-739 555 -26 043 -722 229 8 717 2 146 920 3 286 079 -467 650 646 455 -1 317 964 -44 325 2 340 770 -14 574 939
375 172 102 100 408 91 110 77 129 80 1 472 133
-
Expenditure - Standard Governance and administration Executive and council Budget and treasury office Corporate services Community and public service Community and social service Sport and recreation Public Safety Housing Health Economic and environmental services Planning and development Road transport Environmental protection Trading services Electricity Water Waste water management Waste management Other Total Expenditure - Standard Surplus/(Deficit) for the year
-21 340
-21 340
-748 272 -26 043 -722 229 -1 785 614 -467 650 -1 317 964 -44 325 -2 599 551 2 599 551
2015/2016
Reconciliation of Budgeted Financial Performance (Municipal vote) Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
Description
Variance
Actual Outcome
budget
as % of Original Budget
1
2
3
4
Revenue by Vote Executive and council Budget and treasury office Corporate services Community and social service Sport and recreation Public Safety Housing Health Planning and development Road transport Environmental protection Electricity Water Waste water management Waste management Other Total Revenue by Vote
8 294 111 9 817 009 12 560 057 1 505 370 368 100 1 785 000 28 100 27 692 659 10 624 733 5 798 701 7 445 952 85 919 792
0 -294 869 -96 809 0 -6 933 -813 -7 000 -615 648 -66 234 -2 000 -129 175 -1 219 481
8 294 111 10 111 878 12 656 866 1 505 370 375 033 1 785 813 35 100 28 308 307 10 690 967 5 800 701 7 575 127 87 139 273
1 856 567 9 228 750 12 687 118 5 514 362 397 542 50 000 3 464 060 70 545 26 201 196 20 167 195 5 489 936 6 671 044 91 798 315
Expenditure by Vote Executive and council Budget and treasury office Corporate services Community and social service Sport and recreation Public Safety Housing Health Planning and development Road transport Environmental protection Electricity Water Waste water management Waste management Other Total Expenditure by Vote Surplus/(Deficit) for the year
9 440 096 7 260 151 7 961 025 2 297 825 1 180 069 71 292 445 508 7 504 336 149 149 28 296 790 8 658 902 3 899 005 8 032 002 660 616 85 856 766 63 026
214 616 -77 140 496 551 -177 077 -194 903 6 200 -296 457 576 084 -9 442 -691 870 -432 698 232 781 -997 071 177 851 -1 172 575 -46 906
9 225 480 7 337 291 7 464 474 2 474 902 1 374 972 65 092 741 965 6 928 252 158 591 28 988 660 9 091 600 3 666 224 9 029 073 482 765 87 029 341 109 932
10 222 977 6 268 938 6 843 213 2 230 808 1 312 113 86 432 768 008 7 650 481 149 874 25 702 581 9 559 250 3 019 769 10 347 037 527 090 84 688 571 7 109 744
5
6
-
-997 497 -21 340 -26 043 -722 229 -467 650 -1 317 964 -44 325 -3 597 048 3 597 048
8
6 437 544 883 128 -30 252 -4 008 992 -22 509 -50 000 -1 678 247 -35 445 2 107 111 -9 476 228 310 765 -6 671 044 -12 234 169
22 94 101 474 366 108 0 0 0 445 0 194 251 469 95 2 620
-997 497 1 068 353 621 261 244 094 62 859 -21 340 -26 043 -722 229 8 717 3 286 079 -467 650 646 455 -1 317 964 -44 325 2 340 770 -14 574 939
172 77 89 95 98 72 80 91 71 67 106 86 130 60 1 293 186
63
2015/2016
Reconciliation of Budgeted Financial Performance (revenue and expenditure) Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
1
2
4
5
Description
64 Variance
Actual Outcome
budget
as % of Original Budget
3
Revenue By Source Property Rates Service Charges - Electricity Service Charges - Water Services Charges - Sanitation Service Charges - Refuse Service Charges - Other Rental of Facilities Interest - Investments Interest - Outstanding Debtors Fines Licences and Permits Transfers Recognised - Operat. Other Revenue Income Foregone Total Revenue (excluding capital transfers)
6 559 009 23 701 462 8 150 407 5 737 265 5 268 585 369 750 163 440 350 000 1 515 293 93 000 1 500 100 25 958 000 6 553 481 85 919 792
-339 083 -464 946 -55 218 0 -129 175 1 250 -5 793 -80 000 -103 602 0 0 0 -42 914 -1 219 481
6 898 092 24 166 408 8 205 625 5 737 265 5 397 760 368 500 169 233 430 000 1 618 895 93 000 1 500 100 25 958 000 6 596 395 87 139 273
7 540 440 22 740 406 7 764 433 5 521 992 5 402 141 540 287 160 948 382 491 1 489 320 74 047 1 201 480 25 350 015 362 198 -3 906 415 74 623 783
Expenditure by Type Employees Related Costs Remuneration of Councillors Debt Impairment Depreciation and asset impairment Finance Charges Bulk Purchases Other Materials Contractes Services Transfers and Grants Other Expenditure Loss on disposal of PPE Total Expenditure Surplus/(deficit) Transfers recognised - Capital Surplus/(Deficit) after capital transfers & contributions
30 902 043 2 771 348 3 727 040 4 315 256 1 682 225 21 134 480 3 765 470 548 049 181 467 16 829 387 85 856 765 63 027 26 383 000 26 446 027
-1 156 950 129 853 70 000 30 205 0 0 -1 500 -51 731 -44 173 -148 280 -1 172 576 -46 905 0 -46 905
32 058 993 2 641 495 3 657 040 4 285 051 1 682 225 21 134 480 3 766 970 599 780 225 640 16 977 667 87 029 341 109 932 26 383 000 26 492 932
32 013 158 2 570 442 2 576 206 4 495 019 1 810 113 19 303 772 3 814 178 598 137 225 640 17 281 908 84 688 573 -10 064 790 17 174 533 7 109 743
6
-
-209 968 -127 888 -47 208 1 643 -304 241 -687 662 687 662 687 662
8
-642 348 1 426 002 441 192 215 273 -4 381 -171 787 8 285 47 509 129 575 18 953 298 620 607 985 6 234 197 3 906 415.00 12 515 490
114.96 95.95 95.26 96.25 102.53 146.12 98.48 109.28 98.29 79.62 80.09 97.66 5.53
45 835 71 053 1 080 834 -209 968 -127 888 1 830 708 -47 208 1 643 0 -304 241 2 340 768 10 174 722 9 208 467 966 255
103.60 92.75 69.12 104.17 107.60 91.34 101.29 109.14 124.34 102.69
1 369
1 006 363 65.10 298
2015/2016
Reconciliation of Budgeted Capital Expenditure (expenditure by vote, standard classification and funding) Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
Description
Variance
Actual Outcome
budget
as % of Original Budget
2
1
Single year expenditure Executive and council Budget and treasury office Corporate services Community and social service Sport and recreation Public Safety Housing Health Planning and development Road transport Environmental protection Electricity Water Waste water management Waste management Other Capital single year expenditure Total Capital Expenditure - Vote Capital Expenditure - Standard Governance and administration Executive and council Budget and treasury office Corporate services Community and public service Community and social service Sport and recreation Public Safety Housing Health Economic and environmental services Planning and development Road transport Environmental protection Trading services Electricity Water Waste water management Waste management Other Total Capital Expenditure - Standard Funded by: National Government Provincial Government District Municipality Other transfers and grants Transfers recognised - capital Public contributions & Donations Borrowing Internally generated funds Total Capital funding
3
4
5
6
8
26 473 000 26 473 000
-260 000 -350 000 -350 000
260 000 26 823 000 26 823 000
0 0
-
0 0 0 0 0 0 0 0 0
90 000
0
90 000
0
-
0
0
0
0
90 000 4 494 698
-
954 685 2 713 000 17 452 111 768 506
-90 000
90 000 4 494 698 954 685 2 713 000 17 542 111 768 506
90 000 4 494 698 4 494 698
0
90 000 4 494 698 4 494 698
0
-
0 0 0
954 685
0
954 685
0
-
0
954 685 20 933 617 2 713 000 17 452 111 768 506
954 685
26 473 000
260 000 170 000
21 023 617 2 713 000 17 542 111 768 506 260 000 26 823 000
9 542 000
0
9 542 000
16 841 000 26 383 000
0
16 841 000 26 383 000
90 000 26 473 000
-90 000 -90 000 0
-350 000 -350 000
440 000 26 823 000
318 318
0 0
-
0
-
0
0
0 0 0 0 0 0
318 99.09 83.80 135.05
0
113.95
-
0
113.95
-
0 0 0
1 867.36 1 981
318
64
2015/2016
Reconciliation of Budgeted Cash Flows Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
1
2
4
5
Description
65 Variance
Actual Outcome
budget
as % of Original Budget
CASH FLOW FROM OPERATING ACTIVITIES Receipts Ratepayers and other Government - operating Government - Capital Interest Dividends Payments Suppliers and employees Finance charges Transfers and Grants NET CASH FROM (USED) OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Receipts Increase in Investment Properties Decrease(increase) in non-current debtors Decrease(increase) in non-current receivables Decrease(increase) in non-current investments Payments Capital assets NET CASH FROM (USED) INVESTING ACTIVITIES 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 Cash/cash equivalents at the year begin: Cash/cash equivalents at the year end:
3
44 061 139 25 958 000 26 383 000 962 820
-839 059 -
44 900 198 25 958 000 26 383 000 962 820
41 145 322 25 350 015 17 174 533 382 491
-72 978 531 -32 424
1 288 751 -
-51 064 420 -32 424
24 354 004
449 692
-74 267 282 -32 424 23 904 312
32 955 517
6
-
-14 166 916
-23 221 930 -23 221 930
250 000 250 000
-23 471 930 -23 471 930
-15 891 595 -30 058 511
48 000
48 000
-505 717 -457 717 674 357 6 922 681 279
8
3 754 876 607 985 9 208 467 580 329 0 0 -23 202 862 0 0 -9 051 205
120.83 99.19 116.75 39.92
108.62 45.61 531
14 166 916
-7 580 335 6 586 581
0
73 274
0 -25 274
235.83
0
-505 717 -457 717
-505 716 -432 442
-
-1 -25 275
72.99 309
699 692 -1 193 740 -494 048
-25 335 1 200 662 1 175 327
2 464 564 3 333 691 869 127
-
-2 489 899
840
-
-2 489 899
840
-
The municipality use the incremental budget method and is based on the understanding that the budget will reflect line-items within each class of expenditure and such line-items will be grouped into budget votes, where the votes will present the pricipal functions. The changes between the approved and the final budget are a consequence of reallocations and provision made for expenditure incurred which was not initially budgeted for.
10. PROPERTY, PLANT AND EQUIPMENT
43
30 June 2016 Reconciliation of Carrying Value
Carrying values at 1 July 2015 Cost Correction of error Revaluation Accumulated depreciation -Cost -Correction of Error
Land and Buildings
Infrastructure
Community
Other
Total
R 124 939 519 161 614 367 25 087 118 -36 674 848 -36 924 123 249 275
R 4 888 753 7 625 740 -2 786 140
R 131 106 481 123 988 250 29 475 827
R 4 757 981 7 098 672 -408 739
R 9 273 422 22 901 705 -1 193 830
49 153 -169 179 218 332
-22 357 596 -21 559 139 -798 457
-1 931 952 -2 447 926 515 974
-12 434 453 -12 747 879 313 426
3 365 415 8 470 349
3 686 362
369 469
-5 023 859 -5 023 859
-355 564 -355 564
-1 478 836 -1 478 836
Acquisitions Capital under Construction Increases/decreases in Transfers/Disposal
Depreciation - based on Cost - based on Revaluation Carrying value of disposals Cost/revaluation Accumulated depreciation Impairment losses Other movements Carrying values at 30 June 2016 Cost Correction of error Revaluation Accumulated depreciation - Cost - Revaluation
-200 430 -200 430 -
-
-
4 688 323 4 839 600
137 918 386 165 299 841
8 088 779 10 376 295
8 164 055 22 077 344
-151 277 -151 277
-27 381 455 -27 381 455
-2 287 516 -2 287 516
-13 913 289 -13 913 289
7 421 246 8 470 349 -7 058 689 -7 058 689 158 859 543 202 593 080
-43 733 537 -43 733 537 -
30 June 2015 Reconciliation of Carrying Value
44 Land and Buildings
Carrying values at 1 July 2014 Cost Correction of error ( note ) Revaluation Accumulated depreciation -Cost -Revaluation Acquisitions Capital under Construction Increases/decreases in Transfers Depreciation - based on Cost - based on Revaluation Carrying value of disposals Cost/revaluation Accumulated depreciation Impairment losses Other movements Carrying values at 30 June 2015 Cost Correction of error ( note ) Revaluation Accumulated depreciation - Cost - Revaluation
Infrastructure
Community
Other
Total
R 106 638 012 139 490 157 -32 852 145 -32 852 145
R 7 540 991 7 625 740
R 83 112 437 101 986 733
R 5 078 203 7 098 672
R 10 906 381 22 779 012
-84 749 -84 749 -
-18 874 296 -18 874 296 -
-2 020 469 -2 020 469 -
-11 872 631 -11 872 631 -
5 925 275 16 076 242 -84 430 -84 430 -
-2 684 843 -2 684 843
374 844
-312 841 -312 841
-
-1 301 559 -1 301 559 -7 956
-
-
7 456 561 7 625 740
102 429 111 123 988 250
4 765 362 7 098 672
9 971 710 23 145 900
-169 179 -169 179
-21 559 139 -21 559 139
-2 333 310 -2 333 310
-13 174 190 -13 174 190
6 300 119 16 076 242 -4 383 673 -4 383 673 -7 956 124 622 744 161 858 562
-37 235 818 -37 235 818 -
Refer to Appendix B for more detail on property, plant and equipment
GRAP 17 - Property, Plant and Equipment
ASSETS HELD FOR SALE Office equipment held for sale: - Brandvlei - Calvinia - Nieuwoudtville - Loeriesfontein
43 047 182 558 25 831 72 637 324 073
REVALUATION OF PROPERTY, PLANT AND EQUIPMENT 1. Effective date of revaluation: 01 July 2013 2. Valuators: HCB Property Valuations together with H.C.Botha and P le Roux 3. The methods and significant assumptions applied: 3.1 Residential, Vacant and Agricultural propertiesComparable Sales "An appraisal method that compares a piece of property to other properties with similar characteristics that have been sold recently. The sales comparison approach takes into account the effect that individual features have on the overall property value, meaning that the total value of the property is a sum of values of all its features"
3.2 Commercial/Industrial - Capitalization of Income Approach "Is applicable to income producing properties and is not practical in the appraisal of properties for which a rental market or a rental value cannot be identified. This method is based on the principle of anticipation and a process of capitalization is used to convert an income projection into present capital indication" 3.3 Special properties - Replacement Cost minus Depreciation (properties with limited market value) HCB Property Valuation concluded the new General Valuation Roll for Hantam Municipality and implemented this roll on 1 July 2013. With subsequent Suplementary Rolls it was concluded that there was no significant change in the current market relating to actual sales from 01 July 2014 to 30 June 2015. Using this information it was decided that for this financial year 01 July 2015 to 30 June 2016 that the Fair Value for the investment property of Hantam Municipality stay the same. New sales for the financial year 01 July 2015 to 30 June 2016 will be investigated by 01 March 2016 to determine new values if applicable for 01 July 2016.
66 APPENDIX A HANTAM LOCAL MUNICIPALITY: SCHEDULE OF EXTERNAL LOANS AS AT 30 JUNE 2016 EXTERNAL LOANS
Loan Number
Redeemable
LONG-TERM LOANS Total long-term loans
Balance at 30/06/2015
Received during the period
R
R
Redeemed written off during the period R
Balance at 30/06/2016
R
2016
336 680
-
336 680
-
2016
336 680 336 680
-
336 680 336 680
-
2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016
28 519 47 319 21 005 33 161 14 844 20 202 12 278 20 747 14 844 21 261 13 243
ANNUITY LOANS DBSA Loan @ 5% over 6 Years Total Annuity loans
102858
LEASE LIABILITIES Nashua Lease @ 6.50% over 3 Years Nashua Lease @14.41% over 3 Years Nashua Lease @10.77% over 3 Years Nashua Lease @10.18% over 3 Years Nashua Lease @33.33% over 3 Years Nashua Lease @6.50% over 3 Years Nashua Lease @5.06% over 3 Years Nashua Lease @12.48% over 3 Years Nashua Lease @33.33% over 3 Years Nashua Lease @9.11% over 3 Years Nashua Lease @53.83% over 3 Years
19 857 32 392 14 493 22 908 9 741 14 066 8 575 14 262 9 741 14 721 8 281
Total Lease Liabilities
247 423
-
169 037
8 662 14 927 6 512 10 253 5 103 6 136 3 703 6 485 5 103 6 540 4 962 78 386
TOTAL EXTERNAL LOANS
584 103
-
505 717
78 386
APPENDIX B
Opening Balance Land and Buildings Land Buildings Infrastructure Drains Roads Security Measures Sewerage Mains & Purify Electricity Mains Electricity Peak Load Equip Water Mains & Purification Landfill Sites Car Parks Aerodrome Work in Progress Community Assets Buildings Libraries Recreation Grounds Cemeteries
5 430 240 2 195 500 7 625 740
Investment Property Land
-1 592 440 -1 193 700 -2 786 140
3 837 800 1 001 800 4 839 600
18 374 221 24 427 47 728 173 18 759 774
5 261 506
37 675 670 1 277 514 148 471 123 988 250
5 555 151 18 336 231
4 956 622
-61 508
2 142 050
-392 231 45 000 -408 739
4 895 114 1 749 819 45 000 6 689 933
1 608 055 1 608 055
10 000
1 618 055
10 000
1 618 055
12 179 648
14 166 914
26 346 562
12 179 648
14 166 914
26 346 562
7 098 672 Heritage Assets Historical Buildings Vehicles
Restated Opening
149 964 172 975
29 475 827
23 635 727 24 427 47 878 137 18 932 749 43 230 821 19 613 745 148 471 153 464 077
67
HANTAM LOCAL MUNICIPALITY : ANALYSIS OF PROPERTY PLANT AND EQUIPMENT AS AT 30 JUNE 2016 Cost/Revaluation Accumulated Depreciation WIP Additions Transfers/ Disposals Closing Opening Restated Depreciation Depreciation Additions Adjust Balance Balance Opening Offset - Reval.
-
-
1 984 778
-
-
3 837 800 1 001 800 4 839 600
-
25 620 505 24 427 47 878 137 18 932 749 53 081 807 19 613 745 148 471 165 299 841
-
4 895 114 1 749 819 3 731 362 10 376 295
-
1 618 055 1 618 055
-
6 485 571
3 365 415 -
8 470 349
3 365 415
-
-
-
3 686 362 3 686 362
-
-
-
-95 800 -122 532 -218 332
-95 800 46 647 -49 153
200 430 200 430
3 424 935 16 447 3 389 120 8 016 401
-539 737 -86 497 73 292
2 885 198 16 447 3 302 623 8 089 693
937 055 1 702 1 033 468 406 287
6 008 911 660 031 43 303
-69 613 1 421 012
5 939 298 2 081 043
1 134 496 1 504 665
43 303
6 186
21 559 148
798 457
22 357 605
5 023 859
1 331 533
-60 627
226 671
1 116 393
-455 347
1 270 906 661 046
2 447 926
-515 974
1 931 952
169 179 169 179
-
85 356 43 537 355 564
-
-
-
Transfers/ Adjust
-
-95 800 247 077 151 277
3 933 600 754 723 4 688 323
-
3 822 253 18 149 4 336 091 8 495 980 7 073 794 3 585 708 49 489 27 381 464
21 798 252 6 278 43 542 046 10 436 769 46 008 013 16 028 037 98 982 137 918 377
-
1 497 577 746 402 43 537 2 287 516
3 397 537 1 003 417 3 687 825 8 088 779
-
-
-
-
26 346 562 -
-
-
-
-
-
-
26 346 562
Carrying Value
Closing Balance
-
-
-
-
-
-
-
1 618 055
-
26 346 562
-
26 346 562
Budget Additions 2015
-
1 618 055 -
-
Leased Assets (Infrastructure) Sewerage Mains & Purify -
-
Other Assets
Office Equipment Bins and Containers Emergency Equipment Motor vehicles Buildings Furniture & Fittings Plant & Equipment Biological Assets
Total
2 484 985 10 097 79 657 8 485 275 8 971 875 1 728 856 1 073 460 67 500 22 901 705 175 402 070
39 972
-1 249 550 15 748
-1 193 830 39 264 032
2 524 957 10 097 79 657 8 485 275 7 722 325 1 728 856 1 089 208 67 500 21 707 875 214 666 102
90 533
240 693 21 243 17 000 8 470 349
369 469 7 421 246
-
-
2 615 490 10 097 79 657 8 725 968 7 722 325 1 750 099 1 106 208 67 500 22 077 344 230 557 697
2 009 160 2 020 79 315 5 078 852 3 339 792 1 298 847 939 893
12 747 879 36 924 132
-313 426
-313 426 -249 275
2 009 160 2 020 79 315 5 078 852 3 026 366 1 298 847 939 893 12 434 453 36 674 857
249 994 337 68 625 592 369 652 181 730 51 463
1 478 836 7 058 689
-
-
2 259 154 2 357 79 383 5 704 444 3 396 018 1 480 577 991 356 13 913 289 43 733 546
356 336 7 740 274 3 021 524 4 326 307 269 522 114 852 67 500 8 164 055 186 824 151
-
APPENDIX B
Opening Balance Land and Buildings Land Buildings Infrastructure Drains Roads Security Measures Sewerage Mains & Purify Electricity Mains Electricity Peak Load Equip Water Mains & Purification Landfill Sites Car Parks Aerodrome Work in Progress Community Assets Buildings Libraries Recreation Grounds Cemeteries
5 430 240 2 195 500 7 625 740
Investment Property Land
-
-
17 106 664 24 427 34 185 964 17 532 619 31 711 074 1 277 514 148 471 101 986 733
-
-
-
1 267 557
-
10 501 651
3 040 558 1 227 155
-
5 574 591
390 005
-
-
5 430 240 2 195 500 7 625 740
-
18 374 221 24 427 47 728 173 18 759 774 37 675 670 1 277 514 148 471 123 988 250
-
-
-
16 076 242
5 925 275
-
4 956 622 2 142 050 7 098 672
Heritage Assets Historical Buildings Vehicles
Restated Opening
65
HANTAM LOCAL MUNICIPALITY : ANALYSIS OF PROPERTY PLANT AND EQUIPMENT AS AT 30 JUNE 2015 Cost/Revaluation Accumulated Depreciation WIP Additions Transfers/ Disposals Closing Opening Restated Depreciation Depreciation Additions Adjust Balance Balance Opening Offset - Reval.
1 608 055 1 608 055
-
-
-
-
-
-
-
-
-
-
-
-
4 956 622 2 142 050 7 098 672
-
1 608 055 1 608 055
-
12 179 648 12 179 648
84 749 84 749
-
-
84 430 84 430
2 869 886 14 746 2 696 041 7 651 217
555 049 1 702 693 079 365 184
4 988 148 617 141 37 117
1 020 763 42 890
18 874 296
-
2 684 853 227 485
1 031 037
85 356 -
-
-
312 841
-
-
-
5 430 240 2 026 321 7 456 561
-
3 424 935 16 448 3 389 120 8 016 401 6 008 911 660 031 43 303 21 559 149
14 949 286 7 979 44 339 053 10 743 373 31 666 759 617 483 105 168 102 429 101
-
1 331 533 1 116 393 2 447 926
3 625 089 1 025 657 4 650 746
-
-
-
-
12 179 648 -
-
-
-
-
-
-
-
-
12 179 648
Carrying Value
Closing Balance 169 179 169 179
6 186 -
1 104 048
2 135 085
-
Transfers/ Adjust
-
-
-
-
-
-
-
1 608 055
-
12 179 648
-
12 179 648
1 608 055
Budget Additions 2015
-
-
-
Leased Assets (Infrastructure) Sewerage Mains & Purify -
-
Other Assets
Office Equipment Bins and Containers Emergency Equipment Motor vehicles Buildings Furniture & Fittings Plant & Equipment Biological Assets
Total
2 556 195 10 097 79 657 8 205 363 8 971 875 1 722 209 1 233 617 67 500 22 846 513 153 345 361
71 210
314 912
35 000
27 089 32 843
20 442 193 000 -
-
-
16 076 242
374 844 6 300 119
-
319 652 319 652
2 484 985 10 097 79 657 8 485 275 8 971 875 1 728 856 1 073 460 67 500 22 901 705 175 402 070
1 813 047 1 683 79 247 4 575 072 3 066 568 1 134 172 1 088 227
11 758 016 32 852 146
264 523 337 68 538 780 273 224 179 961 44 666
-
-
1 301 559 4 383 683
-68 410
-35 000 -15 286 -193 000
-
-311 696 -311 696
2 009 160 2 020 79 315 5 078 852 3 339 792 1 298 847 939 893 12 747 879 36 924 133
475 825 8 077 342 3 406 423 5 632 083 430 009 133 567 67 500 10 153 826 138 477 937
-
68 APPENDIX C HANTAM LOCAL MUNICIPALITY: SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016
2015 Actual Income R
2015 Actual Expenditure R
1 672 108 22 178 904 44 511 1 207 980 461 554 5 934 983 1 649 322 15 108 875 24 642 822 188 000
12 616 226 12 930 827 411 927 152 706 2 384 523 68 666 1 072 665 11 223 627 6 128 913 10 659 674 20 448 261 499 015
17 486 957 90 576 016
4 319 623 82 916 653
2015 Surplus/ (Deficit) R
2016 Actual Income R
-10 944 118 9 248 077 -411 927 -108 195 -1 176 543 -68 666 -611 111 -5 288 644 -4 479 591 4 449 201 4 194 561 -311 015 13 167 334
1 856 567 21 915 868 70 545 5 514 362 50 000 397 542 6 671 044 3 464 060 20 167 195 26 201 196 -
10 222 977 13 229 009 768 008 149 874 2 274 345 86 432 1 312 113 11 520 584 8 032 741 10 028 897 25 805 768 1 057 453
5 489 936 91 798 315
3 019 769 87 507 970
Executive & Council Finance & Admin Planning & Development Health Community & Social Services Public Safety Sport & Recreation Waste Management Road Transport Water Electricity Other Waste Water Management 7 659 363 Total
2016 Actual Expenditure R
2016 Surplus/ (Deficit) R
-8 366 410 8 686 859 -768 008 -79 329 3 240 017 -36 432 -914 571 -4 849 540 -4 568 681 10 138 298 395 428 -1 057 453 2 470 167 4 290 345
69
APPENDIX D DISCLOSURES OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF MFMA, 56 OF 2003 FOR THE YEAR ENDED 30 JUNE 2016 Grant and Subsidies Received Name of Grants
Name of organ of state or municipal entity
Balance Unspent 01/07/2015
Balance Unspent 30-Jun-16
Quarterly Receipts
Sept
Dec
204 748
368 299
325 578
443 382
1 342 007
458 373
Yes
9 542 000
178 756
3 474 549
1 827 100
4 511 086
9 991 491
-449 491
Yes
931 460
72 099
111 435
96 476
190 878
470 888
460 572
Yes
1 413 000
1 732 119
64 894
38 170
38 896
1 590 159
1 732 119
-
Yes
0
9 116
6 877 000
5 166 000
20 652 000
5 165 500
5 165 500
5 165 500
5 165 500
20 662 000
-10 000
461 000
346 000
346 000
1 153 000
418 508
361 421
353 330
19 741
1 153 000
910 218
979 117
5 148 004
8 182 408
1 729 208
1 305 196
2 344 362
2 587 216
7 965 982
216 426
1 475 144 13 812 218 12 819 117 15 896 004
44 002 483
7 833 713 10 824 570 10 151 242 14 507 962
43 317 487
684 996
MIG
MIG
Municipal Systems
Nat.Treasury
Library
Culture
INEP
Nat.Treasury
9 116
Equitable
Nat.Treasury
-
8 609 000
EPWP
Nat.Treasury
-
RBIG
Water Affairs
1 145 069
380
Total
1 800 000 1 102 000
1 460
June
4 617 000
3 823 000
930 000
319 119
March
June
Grants and Subsidies delayed / withheld
Sept
Nat.Treasury
March
Quarterly Expenditure
9 116
0
Total
Sept
Dec
Did your municipality comply with the grant conditions in terms of grant framework in the latest Division of Revenue Act Yes/No
1 800 380
Financial Management
Dec
Reason for delay/withholding of funds
March June
Yes 10 000
Yes Yes Yes
-
-
-
-
10 000
Yes
PAGE
Certificate by Municipal Manager
1
General Information
2
Report by Chief Financial Officer
5
Statement of Financial Position
10
Statement of Financial Performance
11
Cash Flow Statement
12
Statement of Changes in Net Assets
13
Accounting Principles and Policy
14
Notes to the Financial Statements
37
Appendix A
66
Appendix B
67
Appendix C
68
Appendix D
69
Appendix E 2016: Irregular and Deviations
70
Appendix S 2015: Irregular and Deviations
75
HANTAM MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2016
I am responsible for the preparation of these financial statements, which are set out on pages 1 to 83 in terms of section 126(1) of the Municipal Finance Management Act and which I have signed on behalf of the Municipality. I certify that salaries, allowances and benefits of Councillors as disclosed in note 25 of these annual financial statements are within the upper limits of the framework envisaged in Section 219 of the Constitution, read with the remuneration of Public Office Bearers Act and the Minister of Provincial and Local Government's determination in accordance with this Act.
31 August 2016 J.R. VAN WYK ACTING MUNICIPAL MANAGER
GENERAL INFORMATION
NATURE OF BUSINESS Hantam Municipality is a Local Municipality performing the functions as set out in the Constitution of the Republic of South Africa of 1996. COUNTRY OF ORIGIN AND LEGAL FORM South African Category B Municipality (Local Municipality) as defined by the Municipal Structures Act. (Act No.117 of 1998) FULL TIME MAYOR Councillor A. Claassen WARD COUNCILLORS Ward 1 Ward 2 Ward 3 Ward 4 Ward 5
M.S.Esau R.N.Swartz F.J.Sterkse J.H.Wilschut G.Opperman
COUNCILLORS PROPORTIONAL G.Fortuin E.Fallet J.Swarts GRADING OF LOCAL MUNICIPALITY
Grade 2
AUDITORS
Auditor-General
BANKERS
Standard Bank
REGISTERED OFFICE
Hoop Street Private Bag X14 Calvinia 8190
TELEPHONE
027-3418 500
FACSIMILE
027-3418 501
WEBSITE
www.hantam.gov.za
2
3
JURISDICTION AREA
Calvinia Brandvlei Loeriesfontein Nieuwoudtville
MUNICIPAL MANAGER Telephone E-Mail
Mr. J.R. van Wyk 027-3418 508
DIRECTOR:FINANCE Telephone E-Mail DIRECTOR:CORPORATE SERVICES Telephone E-Mail DIRECTOR:HEALTH & SOCIAL SERVICES Telephone E-Mail DIRECTOR:INFRASTRUCTURE SERVICES Telephone E-Mail
[email protected]
Mr.J.H. Langner 027-3418 538
Me. G.M.J. Lock 027-3418 518
Acting
[email protected]
Mr.J.R. van Wyk 027-3418 508 [email protected]
Mr.S. Tsengiwe 027-3418 550 [email protected]
027-3418 554 027-3418 550 027-3418 552 027-3418 508 027-3418 544
PAYPOINTS Calvinia Brandvlei Loeriesfontein Niewoudtville
Acting
[email protected]
ENQUIRIES Building Plan Electricity Water Sewerage Consumers
Acting
027-3418 500 054-6038 400 027-6628 600 027-2188 700
RELEVANT LEGISLATION
Municipal Finance Management Act (Act no.56 of 2003) Division of Revenue Act The Income Tax Act Value Added Tax Act Municipal Structures Act (Act no 117 of 1998) Municipal Systems Act (Act no 32 of 2000) Municipal Planning and Performance Management Regulations Water Services Act (Act 108 of 1997) Housing Act (Act no 107 of 1997) Municipal Property Rates Act (Act no 6 of 2004) Electricity Act (Act no 41 of 1987) Skills Development Levies Act (Act no 9 of 1999) Employment Equity Act (Act no 55 of 1998) Unemployment Insurance Act (Act no 30 of 1966) Basic Conditions of Employment Act (Act no 75 of 1997) Supply Chain Management Regulations, 2005 Collective Agreements Infrastructure Grants SALBC Leave Regulations
4
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016
5
1. REVIEW OF OPERATING RESULTS The overall operating results for the year ended 30 June 2016 as well as the comparison with the budgeted figures and the actual results of 2015 are reflected in the following table. DESCRIPTION
ACTUAL 2016
BUDGET 2016
INCOME Operating Income
91 798 315
113 522 274
-21 723 959
-19.14
90 576 014
EXPENDITURE Operating Expenditure
87 507 970
87 029 342
-478 628
-0.55
82 916 653
4 290 345
26 492 932
-22 202 587
-83.81
7 659 361
Closing Surplus
VARIANCE
VARIANCE ACTUAL AS % OF BUDGET
ACTUAL 2015
Details of operating results per department and classification of income and expenditure is included in Appendix C.
2. OPERATING EXPENDITURE 2015/2016 EXPENDITURE
Employee related costs Remuneration of Councillors Bad debts Collection costs Depreciation Repairs and maintenance Interest paid Bulk purchases Contracted services Grants and subsidies paid General expenses Non-Current Provisions Loss on disposal of property, equipment Total Expenditure See Note 43 for explanation of differences.
ACTUAL 2016
BUDGET 2016
32 013 158 2 570 442 2 576 206 649 907 6 389 749 3 814 178 2 734 781 19 303 772 598 137 225 640 16 533 876 98 125
32 058 994 2 641 495 3 657 040 530 000 4 285 051 3 496 970 1 682 225 21 134 480 599 780 225 640 15 638 572 1 079 095
87 507 970
87 029 342
VARIANCE
45 836 71 053 1 080 834 -119 907 -2 104 698 -317 208 -1 052 556 1 830 708 1 644 0 -895 304 980 970 0 -478 628
VARIANCE ACTUAL AS % OF BUDGET 0 2.69 29.55 -22.62 -49.12 -9.07 -62.57 8.66 0.27 0.00 -5.72 90.91 -0.55
ACTUAL 2015
25 309 376 2 372 134 4 818 880 372 360 3 776 335 2 802 980 1 339 079 15 016 782 529 162 246 388 14 689 713 639 529 47 090 71 959 808
3. OPERATING INCOME 2015/2016 INCOME
6 ACTUAL 2016
BUDGET 2016
VARIANCE
Property rates Service charges Rental of facilities Interest earned - ext invest Interest earned - debtors Fines Licences and permits Government grants - Operating Government grants - Capital Other income Gain on Fair Value Adjustments LESS:Income Foregone
7 540 440 41 969 259 160 948 382 491 1 489 320 74 047 1 201 480 25 350 015 17 174 533 362 198 -3 906 415
7 549 441 43 875 559 168 700 430 000 1 618 895 93 000 1 500 100 25 958 000 26 383 000 6 596 928 -651 349
-9 001 -1 906 300 -7 752 -47 509 -129 575 -18 953 -298 620 -607 985 -9 208 467 -6 234 730 -3 255 066
Total Income
91 798 315
113 522 274
-21 723 959
VARIANCE ACTUAL AS % OF BUDGET -0.12 -4.34 -4.59 -11.05 -8.00 -20.38 -19.91 -2.34 -94.51 499.74
20 652 000 1 800 379 930 000 1 413 000 1 153 000
4.MUNICIPAL EXTERNAL DEBT At the end of the year the amount borrowed and outstanding were as follows: TYPE
Annuity Loans Lease Liability Total
BALANCE 2014/06/30 336 680 247 425 584 105
RECEIVED
-
REDEEMED
336 680 169 037 505 717
6 079 573 34 032 722 151 989 439 818 1 322 358 91 096 1 388 551 28 383 573 25 167 484 423 326 145 289 -3594594
94 031 185
3.1. Operating Grants The following operating grants were received during the year: Equitable Share Financial Management Grant Municipal Systems Improvement Grant Library Development Expanded Public Works Programme
ACTUAL 2015
BALANCE 2015/06/30 78 388 78 388
5. RECEIVABLES FROM EXCHANGE TRANSACTIONS
7
GROSS BALANCES R
PROVISION IMPAIRMENT R
NETT BALANCES R
As at 30 June 2016 Electricity Water Refuse Sewerage Other Arrears Recognition of Revenue - Water Recognition of Revenue - Electricity Recognition of Revenue - Sanitation LESS: Long-Term Receivables Total: Receivables from Exchange Transactions PLUS: VAT Outstanding Total Receivables from Exchange Transactions As at 30 June 2015 Electricity Water Refuse Sewerage Other Arrears Recognition of Revenue - Water Recognition of Revenue - Electricity Recognition of Revenue - Sanitation LESS: Long-Term Receivables Total Receivables from Exchange Transactions
6. RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS Other Receivables Rates Miscellaneous LESS: Allowance for doubtful debts Total receivables from non-exchange transactions
3 680 386 8 695 934 7 065 290 4 997 501 3 020 423 27 459 534 182 718 1 102 847 28 745 098 -161 448 28 583 650 3 653 251 32 236 901
1 937 853 8 016 244 6 667 153 4 380 442 1 827 067 22 828 759
3 493 280 6 851 737 5 347 885 3 670 641 2 783 836 22 147 378 133 470 809 816 23 090 663 -382 503 22 708 160
2 549 083 4 999 784 3 902 407 2 678 505 2 031 394 16 161 173
22 828 759 22 828 759 22 828 759
16 161 173 16 161 173
2016
1 742 533 679 690 398 137 617 059 1 193 356 4 630 775 182 718 1 102 847 5 916 339 -161 448 5 754 891 3 653 251 9 408 142
944 197 1 851 953 1 445 478 992 136 752 442 5 986 205 133 470 809 816 6 929 490 -382 503 6 546 987
2015
8 480 063 1 725 869 10 205 933 0 10 205 933
7 165 922 1 425 198 8 591 119 -5 229 047 3 362 072
606 156 160 003 147 334 7 566 570 8 480 063
540 885 137 187 142 828 6 345 022 7 165 922
Ageing of Receivables from Non- Exchange Transactions Rates: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer
Summary of Receivables by Customer Classification 2016 Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer LESS: Provision for doubtful debts Total recoverable debtors by customer classification
8 Commercial
Residential
Government
Total
679 625 65 260 98 576 1 157 852 2 001 313 -1 271 425 729 888
2 810 180 924 950 858 119 27 943 620 32 536 869 -20 670 526 11 866 343
458 933 46 397 38 181 852 387 1 395 898 -886 807 509 091
3 948 738 1 036 607 994 876 29 953 859 35 934 080 -22 828 758 13 105 322
694 528 50 228 31 619 1 030 480 1 806 855 -1 155 062 651 793
2 463 631 782 348 718 812 22 150 145 26 114 936 -16 694 402 9 420 534
441 250 86 330 67 208 791 202 1 385 990 -886 017 499 973
3 599 409 918 906 817 639 23 971 827 29 307 781 -18 735 481 10 572 300
2015 Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer LESS: Provision for doubtful debts Total recoverable debtors by customer classification
7. NON-CURRENT PROVISIONS Provision for Post-Retirement Benefits Provision for Long Service Awards Provision for Rehabilitation Landfill Sites
2016
2015
13 448 083 1 676 983 24 217 788 39 342 854
12 378 861 1 785 667 22 846 970 37 011 498
704 982 3 589 081 1 545 816 78 388 18 309 471 1 477 934 0 3 653 251 29 358 923
631 708 3 810 693 533 649 505 717 10 133 627 1 475 144 26 474 1 765 895 18 882 908
67 318 9 408 142 10 205 933 2 908 087 102 761 53 767 815 360 23 561 367
77 995 9 531 419 3 362 072 346 559 157 338 2 133 029 1 200 662 16 809 074
8. CURRENT LIABILITIES Consumer Deposits Current Employee Benefits Current Portion of Non-Current Provision Current Portion of Long-Term Liabilities Payables of Exchange Transactions Unspent Conditional Grants and Receipts Unspent Public Contributions VAT Payable
9. CURRENT ASSETS Inventory Receivables from Exchange Transactions Receivables from Non-Exchange Transactions VAT Receivable Current Portion of Long-Term Receivables Call Investment Deposits Bank Balance and Cash
10. LONG-TERM RECEIVABLES Agreements for longer than 12 months by consumers to settle outstanding debt
11. EXPRESSION OF APPRECIATION I am grateful to the Municipal Manager and Head of Departments for the support during the financial year. I am also thankful for all staff in the finance department for the effort they put in and for their dedication.
J.H. LANGNER ACTING DIRECTOR OF FINANCE
9
161 450
955 333
HANTAM MUNICIPALITY
10
STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2016 Notes
2016 R
2015 R
NET ASSETS AND LIABILITIES Net Assets
141 742 430
117 583 510
Revaluation Reserve Accumulated Surplus
21 795 725 119 946 705
21 795 725 95 787 785
39 342 854
19 045 759
15 125 066 24 217 788
78 387 14 164 528 4 802 844
29 358 923
18 882 908
704 982 3 589 081 1 545 816 78 388 18 309 471 1 477 934 3 653 251
631 708 3 810 693 533 649 505 717 10 133 627 1 475 144 26 474 1 765 895
210 444 207
155 512 176
186 882 840 186 824 151
58 689
138 703 102 124 622 734 1 608 055 12 179 648 67 500 0 225 165
23 561 367 67 318 9 408 142 10 205 933 2 908 087 102 761 869 127
16 809 074 77 995 9 531 419 3 362 072 346 559 157 338 3 333 691
210 444 207
155 512 176
Non-Current Liabilities Long-Term Liabilities Employee Benefits Non-Current Provisions
1 2 3
Current Liabilities Consumer Deposits Current Employee Benefits Current Portion of Non-Current Provision Current Portion of Long-Term Liabilities Payables of Exchange Transactions Unspent Conditional Grants and Receipts Unspent Public Contributions VAT Provision
4 5 3 1 6 7 8 9
Total Net Assets and Liabilities ASSETS Non-Current Assets Property, Plant and Equipment Heritage Assets Investment Property Biological Assets Assets held for sale Long-Term Receivables
10 11 12 13 10 14
Current Assets Inventory Receivables from Exchange Transactions Receivables from Non-Exchange Transactions VAT Receivable Current Portion of Long-Term Receivables Cash and Cash Equivalents
15 16 17 9 14 18
Total Assets
HANTAM MUNICIPALITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016 Notes
2016 R
11
2015 R
REVENUE Revenue from Non-Exchange Transactions Taxation Revenue Property Rates
19
Transfer Revenue Government Grants and Subsidies-Operating Government Grants and Subsidies-Capital
20 20
Other Revenue Fines Gain on Fair Value Adjustments Profit on sale of assets Other
21
22
Revenue from Exchange Transactions Service Charges Rental of Facilities and Equipment Interest Earned - External Investments Interest Earned - Outstanding Debtors Licenses and Permits
23
Total Revenue
49 849 852
53 267 928
6 889 060
6 212 595
6 889 060
6 212 595
42 524 548
46 063 236
25 350 015 17 174 533
25 336 042 20 727 194
436 244
992 096
74 047
120 927
362 198
184 576 686 593
41 948 464
37 308 086
38 714 225 160 948 382 491 1 489 320 1 201 480
34 001 376 146 209 457 648 1 377 008 1 325 844
91 798 316
90 576 014
32 013 158 2 570 442 2 576 206 649 907 6 389 749 3 814 178 2 734 781 19 303 772 598 137 225 640 16 533 876 98 126 -
29 047 644 2 489 607 9 449 147 506 563 4 383 683 2 813 579 1 592 479 13 898 737 613 915 164 969 16 675 172 1 281 158 -
87 507 971
82 916 653
4 290 345
7 659 361
EXPENDITURE Employee related costs Remuneration of Councillors Increase/(Decrease) in Debt Impairment Collection Costs Depreciation and Amortisation Repairs and Maintenance Finance Charges Bulk Purchases Contracted Services Grants and Subsidies Paid General Expenses Provision - Employee Benefits Loss on Disposal of Property, Plant Total Expenditure NET SURPLUS FOR THE YEAR
24 25 26
27 28 29 30 31
12 HANTAM MUNICIPALITY CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 Note
2016 R
2015 R
CASH FLOW FROM OPERATING ACTIVITIES Cash receipts from ratepayers, government and other Cash paid to suppliers and employees Cash generated from operations
83 669 870 -51 064 420 32 605 450
94 665 883 -71 229 534 23 436 349
382 491 -32 424
457 648 -81 141
32 955 517
23 812 856
Purchase of property, plant and equipment Proceeds on disposal of property, plant and equipment Increase in investment properties (Increase)/decrease in non-current receivables Increase in non-current investments Decrease in call investment deposits
-15 891 595 -14 166 916 -
-22 376 362 192 533 0 0 -
NET CASH UTILIZED IN INVESTING ACTIVITIES
-30 058 511
-22 183 829
New loans repaid Increase in consumer deposits
-505 716 73 274
-701 564 47 166
NET CASH UTILIZED IN FINANCING ACTIVITIES
-432 442
-654 398
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
2 464 564
974 629
Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year
3 333 691 869 127 2 464 564
2 359 062 3 333 691 -974 629
32
Interest received Interest paid NET CASH FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
18
HANTAM MUNICIPALITY STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2016
2016 Balance at 30 June 2015 Change in accounting policy Correction of Error Surplus/Deficit on revaluation of PPE Surplus for the year Restated Balance Surplus for the year Balance at 30 June 2016
2015 Balance at 30 June 2014 Change in accounting policy Correction of Error Surplus/Deficit on revaluation of PPE Surplus for the year Restated Balance Surplus for the year Balance at 30 June 2015
Revaluation Reserve
Accumulated Surplus/ (Deficit)
Total
R
R
R
21 795 725
95 787 785 19 868 574
21 795 725 -
115 656 359 4 290 345
117 583 510 19 868 574 137 452 084 4 290 345 141 742 429
21 795 725
119 946 704
21 795 725
88 128 423
21 795 725
88 128 423
109 924 148 109 924 148
7 659 361
7 659 361
95 787 784
117 583 509
21 795 725
13
37
HANTAM MUNICIPALITY
37
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 1
2015 R
LONG-TERM LIABILITIES Annuity Loans Capitalised Lease Liability
78 388 78 388
336 680 247 425 584 104
LESS: Current Portion transferred to current liabilities Annuity Loans Capitalised Lease Liability
78 388 78 388
505 717 336 680 169 037
-
78 387
-
342 390 342 390 5 710 336 680
81 563 81 563 3 176 78 387
195 751 81 563 277 314 29 890 247 424
Total Long-Term Liabilities The obligations under annuity loans are scheduled below: Amounts payable under annuity loans: Payable within one year Payable within two to five years LESS: Future finance obligations Present value of annuity obligations The obligations under finance leases are scheduled below: Amounts payable under finance leases: Payable within one year Payable within two to five years LESS: Future finance obligations Present value of finance lease obligations Refer to appendix A for descriptions, maturity dates and effective interest rates of structures loans and finance leases. Leases are secured by property, plant and equipment.
38
38
HANTAM MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 2
2015 R
EMPLOYEE BENEFITS Long Service Awards Post Retirement Benefits Total Non-Current Employee Benefit Liability Long Service Awards Balance at beginning of year Contributions for the year Payment during the year Expenditure for the year Actuarial Loss Total Long Service 30 June LESS: Transfer of Current Portion to Current Employee Benefits Balance at end of year
1 676 983 13 448 083 15 125 066
1 785 667 12 378 861 14 164 528
1 970 239 324 736 -117 443 -67 129 2 110 403 -433 420 1 676 983
1 627 938 258 104 -67 752 151 949 1 970 239 -184 572 1 785 667
12 782 757 1 505 426 -403 896
Post Retirement Medical Benefits Balance at beginning of year Contributions for the year Expenditure for the year Actuarial Loss Total Post Retirement Medical Benefits 30 June LESS: Transfer of Current Portion to Current Employee Benefits Balance at end of year
13 884 287 -436 204 13 448 083
10 504 043 1 301 613 -343 572 1 320 673 12 782 757 -403 896 12 378 861
TOTAL NON-CURRENT EMPLOYEE BENEFITS Balance at beginning of year Contributions for the year Expenditure for the year Actuarial Loss Total employee benefits 30 June LESS: Transfer of Current Portion to Current Employee Benefits Balance at end of year
14 752 996 1 830 162 -521 339 -67 129 15 994 690 -869 624 15 125 066
12 131 981 1 559 717 -411 324 1 472 622 14 752 996 -588 468 14 164 528
39
HANTAM MUNICIPALITY
39
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R
2015 R
EMPLOYEE BENEFITS (Continued) 2.1 Long Service Awards The liability in respect of past service has been estimate to be as follows: In-Service Members
2 110 404
1 970 239
177 009
131 707
7.86% 7.04% 0.77%
7,86% 7,04% 0,77%
2 110 404
Unrecognised Transitional liability Unrecognised Actuarial Gains/(Loss) Unrecognised Past Service Cost Net Liability
2 110 404 2 110 404
1 970 239 1 970 239 1 970 239
Reconciliation of present value of fund obligation Present value of fund at beginning of year Total Expenses Current Service cost Interest cost Benefits paid
1 970 239 207 294 177 009 147 727 -117 442
1 627 938 190 352 131 707 126 397 -67 752
Actuarial losses Present Value of fund obligation at the end of year
-67 129 2 110 404
151 949 1 970 239
The Current-Service cost for the ensuing year Key Actuarial assumptions used: 1. Rate of Interest Discount Rate General salary inflation rate Net effective discount rate 2. Normal retirement age The normal retirement age for employees of the municipality is 63 years. The amount recognised in the Statement of Financial Position are as follows: Present Value of fund obligations Fair Value of Plan Assets
40
HANTAM MUNICIPALITY
40
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R
2015 R
EMPLOYEE BENEFITS (Continued) 2.2 Post Retirement Benefits The Post Retirement Benefit Plan is a defined benefit plan, of which the members are made up as follows: In-Service Members Continuation members (retiree and widow)members
24 10 34
24 10 34
443 464 1 192 218
407 892 1 097 534
8.72% 8.00% 0.67%
8,72% 8,00% 0,67%
13 884 287
12 782 757
Unrecognised Transitional liability Unrecognised Actuarial Gains/(Loss) Unrecognised Past Service Cost Net Liability/(Asset)
13 884 287 13 884 287
12 782 757 12 782 757
Reconciliation of present value of fund obligation Present value of fund at beginning of year Total Expenses Current Service cost Interest cost Benefits paid
12 782 757 1 101 530 407 892 1 097 534 -403 896
10 504 043 958 041 401 808 899 805 -343 572
Actuarial losses Present Value of fund obligation at the end of year
13 884 287
1 320 673 12 782 757
The Current-Service cost for the ensuing year Interest Costs for the ensuing year Key Actuarial assumptions used: 1. Rate of Interest Discount Rate Health Care costs inflation rate Net effective discount rate 2. Mortality rates The PA(90) ultimate table, rated down by 1 year of age. 3. Normal Retirement age The normal retirement age for employees of the municipality is 63 years. The amount recognised in the Statement of Financial Position are as follows: Present Value of fund obligations Fair Value of Plan Assets
(Present value of fund obligation for 2013:R8 292 324, 2012: R6 875 030 and 2011: R6 210 404) Sensitivty Analysis on Current-service and Interest Costs for year ending 30/06/2016 Assumption
Change
Central Assumptions Health Care inflation
+1% -1% -1yr -1Yr -10%
Post retirement mortality Average retirement age Continuation of membership at retirement Sensitivity Analysis on the Accrued Liability (R Millions) Assumption Central Assumptions Health Care inflation
Current-Service Interest Total Cost Cost 407 900 1 097 500 483 600 1 249 300 345 600 970 200 421 900 1 140 800 369 800 1 134 900 369 500 1 030 400
Change In-service
Continuation Total 5 525 6 086 5 040 5 047 6 088 5 760 5 525 5 525
12 783 14 523 11 323 11 275 14 642 13 278 13 211 12 013
Current-Service Interest Total Cost Cost 401 808 899 805 458 900 1 009 901 348 325 801 501 415 807 935 325 399 201 933 539 364 140 844 521
1 301 613 1 468 801 1 149 826 1 351 132 1 332 740 1 208 661
7 258 8 437 6 282 6 228 8 555 7 518 7 686 6 488
1% -1% 1% -1% -1 yr -1 yr -10%
Discount Rate Post retirement mortality Average retirement age Continuation of membership at retirement
% Change 1 505 400 1 732 900 1 315 800 1 562 700 1 504 700 1 399 900
15% -13% 4% -7% % Change 14% -11% -12% 15% 4% 3% -6%
Sensitivity Analysis on Current-service and Interest Costs for year ending 30/06/2015 Assumption Central Assumptions Health Care inflation Post retirement mortality Average retirement age Continuation of membership at retirement Sensitivity Analysis on the Accrued Liability (R Millions) Assumption Central Assumptions Health Care inflation Discount Rate Post retirement mortality Average retirement age Continuation of membership at retirement History of experience adjustments: Gains and Losses (R millions) Experience Adjustments Liabilities: (Gains)/Loss Assets: Gain/(Loss)
Change
+1% -1% -1yr -1Yr -10%
Change In-service 1% -1% 1% -1% -1 yr -1 yr -10% 2012 Not Available
7 258 8 437 6 282 6 228 8 555 7 518 7 686 6 488 2013 (0.198) 0
% Change
Continuation Total 5 525 6 086 5 040 5 047 6 088 5 760 5 525 5 525 2014 1.090 0
13% -12% 4% 2% -7%
% Change 12 783 14 523 11 323 11 275 14 642 13 278 13 211 12 013 2015 1.007 0
14% -11% -12% 15% 4% 3% -6%
41
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
41 2016 R
3
NON-CURRENT PROVISIONS Landfill Sites
Restated
Balance at the beginning of year Contribution for the year Reversal of contribution for 2014/2015 - Correction of error Contribution for 2014/2015 - Correction of error Write-Off Landfill Site for Middelpos - Correction of error Additions for 2014/2015 Expenditure for the year
24 305 287 1 458 317
25 763 604 -1 545 816 24 217 788
LESS: Transfer of current portion to Current Provisions Balance at end of year Interest payable under Landfill Sites Provision
4
2015 R
˂ 1 Year
2 -5 Years
6 - 10 Years
4 851 357 485 136 -485 136 1 375 771 -350 323 18 428 482 24 305 287 -1 458 317 22 846 970 > 10 Years
Calvinia 2014 Calvinia 2015 Calvinia 2016
17 690 057 17 690 057 17 690 057
9 318 901 9 878 036 10 470 718
2 445 997 2 592 757 2 748 322
3 979 190 4 217 941 4 471 017
1 945 969 1 001 324
Brandvlei 2014 Brandvlei 2015 Brandvlei 2016
16 021 623 16 021 623 16 021 623
8 439 991 8 946 391 9 483 174
2 215 303 2 348 221 2 489 115
3 603 893 3 820 127 4 049 334
1 762 436 906 884
Loeriesfontein 2014 Loeriesfontein 2015 Loeriesfontein 2016
10 499 848 10 499 848 10 499 848
3 470 336 3 678 556 3 899 270
910 883 965 536 1 023 469
1 481 841 1 570 751 1 664 996
4 636 788 4 285 004 3 912 113
Nieuwoudtville 2014 Nieuwoudtville 2015 Nieuwoudtville 2016
7 184 154 7 184 154 7 184 154
2 516 924 2 667 939 2 828 016
660 635 700 273 742 289
1 074 731 1 139 215 1 207 568
2 931 864 2 676 727 2 406 281
704 982
631 708
1 529 654 1 009 802 180 001 433 420 436 204 3 589 081
1 438 906 919 626 863 693 184 572 403 896 3 810 693
1 438 906 294 645 -203 897 1 529 654
1 109 694 435 990 -106 779 1 438 906
919 626 90 176 1 009 802
772 489 147 137 919 626
863 693 -467 701 -215 991 180 001
393 152 508 086 -37 545 863 693
CONSUMER DEPOSITS Electricity and Water The fair value of consumer deposits approximate their carrying value. Interest is not paid on these amounts.
5
CURRENT EMPLOYEE BENEFITS Staff Leave Bonuses 13th Cheque Performance Bonuses Current Portion of Long Service Awards Current Portion of Post Retirement Benefit
Staff Leave Balance at beginning of year Increase in leave provision Payments made during year Bonuses 13th Cheque Balance at beginning of year Contributions for year Increase/(Decrease) in bonus provision Performance Bonuses Balance at beginning of year Increase in bonus provision Expenditure incurred
42
HANTAM MUNICIPALITY
42
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 6
PAYABLES FROM EXCHANGE TRANSACTIONS Trade Creditors Payments in Advance Other Creditors Suspense Accounts
7
2015 R
6 712 796 697 370 10 800 305 98 999.46
1 982 653 438 182 7 707 642 5 150.00
18 309 471
10 133 627
1 261 509 216 425 1 477 934
10 955 319 119 1 145 069 1 475 144
UNSPENT CONDITIONAL GOVERNMENT GRANTS AND RECEIPTS National Government Grants Provincial Government Grants Other Sources - DWA Regional Bulk Infrastructure Grant
331 661
Refer to Note for more information 8
UNSPENT PUBLIC CONTRIBUTIONS Other Contributions
9
10
-
26 474 26 474
TAXES VAT Receivable Year-End Creditors VAT Receivable Control Account
423 452 2 484 634 2 908 087
346 559
VAT Provision Outstanding Debtors
3 653 251
1 765 895
PROPERTY, PLANT AND EQUIPMENT See separate sheet
12 096 334 463
43
HANTAM MUNICIPALITY
45
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 11
HERITAGE ASSETS Net carrying amount as at 1 July 2014 PLUS: Additions/Revaluation LESS: Disposals Net carrying amount as at 30 June 2015
Calvinia Museum Erven 299 Loeriesfontein Museum Erven 355 Kerkstraat Erven Akkerendam Nature Reserve
12
2015 R Restated
1 618 055 1 618 055 1 618 055
1 300 000 282 500 25 555 1 608 055
INVESTMENT PROPERTIES Net carrying amount at 1 July 2015 Cost Accumulated depreciation Transfer to Property, Plant and Equipment Cost Accumulated depreciation Additions for the Year/Revaluation Depreciation for the year Balance at 30 June 2016 Cost Accumulated depreciation
1 608 055 10 000 1 618 055 1 618 055
1 300 000 282 500 10 000 25 555 1 618 055
Restated 26 346 562 26 346 562 -
12 179 648 12 179 648 -
-
-238 686 -238 686 -
-
14 405 600
26 346 562 26 346 562 -
26 346 562 26 346 562 -
67 500 67 500
67 500 67 500
For disclosure - see note 10 13
BIOLOGICAL ASSETS Bearer biological assets Net carrying amount at 1 July 2015 Additions for the Year Fair Value as at 30 June 2016 150 Springboks @ R450
44
HANTAM MUNICIPALITY
46
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 14
2015 R
LONG-TERM RECEIVABLES Balance at year end of long-term consumer debtors LESS: Current portion transferred to current receivables Total Long-Term Receivables
161 448 -102 759 58 689
382 504 -157 338 225 166
77 995 77 995
56 241 56 241
9 555 412 9 555 412
10 552 601 10 552 601
9 566 089 9 566 089
10 530 847 10 530 847
67 318 67 318
77 995 77 995
These are consumer debtors that entered into an agreement for longer than 12 months to settle their outstanding debt 15
INVENTORY OPENING BALANCES Consumable stores at cost - Stationary and materials Water - At purification cost ADDITIONS Consumable Stores Water ISSUED(EXPENSED) Consumable Stores Water CLOSING BALANCE OF INVENTORIES Consumable Stores Water
16
RECEIVABLES FROM EXCHANGE TRANSACTIONS GROSS BALANCES R
PROVISION IMPAIRMENT R
NETT BALANCES R
As at 30 June 2016 Electricity Water Refuse Sewerage Other Arrears Recognition of Revenue - Water Recognition of Revenue - Electricity Recognition of Revenue - Sanitation LESS: Long-Term Receivables Total: Receivables from Exchange Transactions VAT Outstanding
3 680 386 8 695 934 7 065 290 4 997 501 3 020 423 27 459 534 182 718 1 102 847 28 745 097 -161 448 28 583 649 3 653 251 32 236 900
1 937 853 8 016 244 6 667 153 4 380 442 1 827 067 22 828 759
3 493 280 6 851 737 5 347 885 3 670 641 2 783 836 22 147 378 133 470 809 816
2 549 083 4 999 784 3 902 407 2 678 505 2 031 394 16 161 173
944 197 1 851 953 1 445 478 992 136 752 442 5 986 205 133 470 809 816
16 161 173
6 929 490 -382 503 6 546 987 2 984 431 9 531 419
22 828 759 22 828 759 22 828 759
1 742 533 679 690 398 137 617 059 1 193 356 4 630 775 182 718 1 102 847 5 916 339 -161 448 5 754 891 3 653 251 9 408 142
As at 30 June 2015 Electricity Water Refuse Sewerage Other Arrears Recognition of Revenue - Water Recognition of Revenue - Electricity Recognition of Revenue - Sanitation LESS: Long-Term Receivables Total: Receivables from Exchange Transactions VAT Outstanding
23 090 662 -382 503 22 708 159 2 984 431 25 692 591
16 161 173 16 161 173
45
HANTAM MUNICIPALITY
47
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 16
2015 R
RECEIVABLES FROM EXCHANGE TRANSACTIONS (Continued) Ageing of Receivables from Exchange Transactions Electricity: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer
1 241 358 138 389 144 021 2 156 618 3 680 386
1 248 193 131 967 88 705 2 024 415 3 493 280
753 904 275 373 269 790 7 396 867 8 695 934
675 142 268 045 229 320 5 679 230 6 851 737
594 900 218 835 209 609 6 041 944 7 065 288
468 930 161 530 158 017 4 559 408 5 347 885
607 890 186 584 169 985 4 033 043 4 997 502
530 929 176 824 154 718 2 808 170 3 670 641
144 530 57 423 54 137 2 764 335 3 020 425
135 330 43 353 44 051 2 561 102 2 783 836
21 390 220 2 576 206 360 668 -1 498 335 22 828 759
23 247 422 9 449 147 1 218 536 -12 524 885 21 390 220
Water: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Refuse: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Sewerage: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Other Arrears: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Trade and other receivables past due but not impaired Trade and other receivables which are less than 3 months past due are not concidered to be impaired. At 30 June 2016 , R2 927 682 (2014: R6 511 399) were past due but not impaired. Trade and other receivables are concidered to be past due after six months of outstanding balances. Reconciliation of the Total doubtful debt provision Balance at beginning of the year Increase/(Decrease) in Provision VAT portion of provision Doubtful debts written off against provision Balance at end of the year
46
HANTAM MUNICIPALITY
48
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 17
2015 R
RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS Other Receivables Rates Miscellaneous
8 480 063 1 725 869 10 205 933
LESS: Allowance for doubtful debts Total receivables from non-exchange transactions
10 205 933
7 165 922 1 425 198 8 591 119 -5 229 047 3 362 072
606 156 160 003 147 334 7 566 570 8 480 063
540 885 137 187 142 828 6 345 022 7 165 922
Ageing of Receivables from Non- Exchange Transactions Rates: Ageing Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer Trade and other receivables past due but not impaired Trade and other receivables which are less than 3 months past due are not concidered to be impaired. At 30 June 2016 , R913 493 (2015: R820 900) were past due but not impaired. Trade and other receivables are concidered to be past due after six months of outstanding balances. Summary of Receivables by Customer Classification 2016 Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer LESS: Provision for doubtful debts Total recoverable debtors by customer classification
Commercial
Residential
Government
Total
679 625 65 260 98 576 1 157 852 2 001 313 -1 271 425 729 888
2 810 180 924 950 858 119 27 943 620 32 536 869 -20 670 526 11 866 343
458 933 46 397 38 181 852 387 1 395 898 -886 807 509 091
3 948 738 1 036 607 994 876 29 953 859 35 934 080 -22 828 758 13 105 322
694 528 50 228 31 619 1 030 480 1 806 855 -1 155 062 651 793
2 463 631 782 348 718 812 22 150 145 26 114 936 -16 694 402 9 420 534
441 250 86 330 67 208 791 202 1 385 990 -886 017 499 973
3 599 409 918 906 817 639 23 971 827 29 307 781 -18 735 481 10 572 300
797 193 16 667 53 767 1 500 869 127
1 096 074 103 088 2 133 029 1 500 3 333 691
2015 Current (0 - 30 days) 31 - 60 days 61 - 90 days 91 days and longer LESS: Provision for doubtful debts Total recoverable debtors by customer classification
18
CASH AND CASH EQUIVALENTS Primary Bank Account-Standard Bank Secondary Bank Account - ABSA Bank Secondary Bank Account - FNB Secondary Bank Account - STD Bank Call Investments Cash Floats
47
HANTAM MUNICIPALITY
49
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 18
2015 R
CASH AND CASH EQUIVALENTS (continued) The Municipality has the following bank accounts Current Accounts ABSA Bank - Account No. 1620 000 031 (Secondary Bank Account) Cash Book balance at beginning of year Cash Book balance at end of year
32 614 16 667
44 224 32 614
Bank Statement balance at beginning of year Bank Statement at end of year
33 848 14 911
62 736 33 848
Standard Bank - Account No. 08 298 352 6 (Primary Bank Account) Cash Book balance at beginning of year Cash Book balance at end of year
452 698 797 193
4 437 787 452 698
Bank Statement balance at beginning of year Bank Statement at end of year
439 897 817 802
4 730 021 439 897
1 500
1 500
3 621 3 247 2 733 1 423 38 847 1 015 1 043 1 838 53 767
3 239 2 500 1 782 540 97 018 1 974 3 044 50 667 192 048 2 133 029
Cash Floats Call Investment Deposits Call investment deposits consists of the following accounts Financial Management Grant Municipal Systems Improvement Grant Call Deposit CRR Hantam DBSA Municipal Infrastructure Grant 110 Houses Brandvlei Hantam EPWP Hantam INEP Hantam Surplus Cash Credit quality of cash at bank and short term deposits, excluding cash on hand The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or historical information about counterparty default rates. Credit ratings for Standard Bank (F3) and ABSA (F2) respectively..
48
HANTAM MUNICIPALITY
50
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 19
2015 R
PROPERTY RATES Actual Rateable Land and Buildings Cat A - Residential Properties Cat B - Industrial Properties Cat C - Business and Commercial Cat D - Farms - Agriculture Cat F - Small Holdings Cat Fi - Small Holdings for agriculture purposes Cat Fii - Small Holdings for residential purposes Cat Fiii - Small Holdings for industrial purposes Cat FV - Small Holdings for other purposes Cat G - State Owned properties Cat H - Municipal Properties Cat R - Properties used for multiple purposes Cat I Cat Q Cat V Cat SI LESS: Rebates Total Assessment Rates
7 540 441
6 825 833
3 539 032 22 391 1 185 481 1 633 866
3 300 368 21 203 1 100 750 1 416 806
9 049 7 940
1 529 16 226
497 425 -
580 513 803
4 339 144 013 496 905
4 180 96 778 286 677
-651 381
-613 238
6 889 060
6 212 595
487 920 200 2 213 200 122 621 000 2 175 214 100 2 383 000 4 538 500 72 399 800 16 773 200 414 441 900 17 146 400 66 946 300 3 382 597 600
484 300 000 2 213 200 119 499 500 2 173 470 600 2 383 000 2 973 600 71 946 900 17 254 500 414 511 400 16 004 400 64 680 000 3 369 237 100
0.01027485 0.01027485 0.01027485 0.01027485 0.00067779
0,00972997 0,00972997 0,00972997 0,00972997 0,00064185
Valuations - 30 June Cat A - Residential Properties Cat B - Industrial Properties Cat C - Business and Commercial Cat D - Farms - Agriculture Cat F - Small Holdings Cat Fi - Small Holdings for agriculture purposes Cat Fii - Small Holdings for residential purposes Cat Fiii - Small Holdings for industrial purposes Cat FV - Small Holdings for other purposes Cat G - State Owned properties Cat H - Municipal Properties Cat R - Properties used for multiple purposes Cat I Cat Q Cat V Cat SI Total Assessment Rates Tariffs Brandvlei - Land and buildings Calvinia - Land and buildings Loeriesfontein - Land and buildings Nieuwoudtville - Land and buildings Agriculture Properties
49
HANTAM MUNICIPALITY
51
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R
20
2015 R
GOVERNMENT GRANTS AND SUBSIDIES Unconditional Grants Equitable Share
20 652 000 20 652 000
20 566 000 20 566 000
Conditional Grants
21 872 548
25 497 235
1 342 008 470 888
1 799 621 932 540 990 884 9 953 000 1 308 000 729 881 3 428 272 6 355 037 -
National FMG Grant National MSIG Grant National INEP Grant National MIG Grant National EPWP Grant Provincial Library Grant DWA - Accelerated Infrastructure Programme DWA - Regional Bulk Infrastructure
9 208 551 1 153 000 1 732 119 7 965 982 -
Public Donations Public Donations
-
-
Total Government Grants and Subsidies
42 524 548
46 063 235
Government Grants and Subsidies - Operating Government Grants and Subsidies - Capital Public Contributions
25 350 015 17 174 533
25 336 042 20 727 194
42 524 548
46 063 236
20.1 Equitable Share In terms of the Constitution, this grant is used to subsidise the provision of basic services to indigent community members
20 652 000
20 566 000
20.2 National MIG Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue VAT Portion transferred to revenue Amount withheld 2013 Conditions still to be met - transferred to current liabilities
1 9 542 000 -9 235 024 306 977
1 9 953 000 -9 953 000
20.3 National FMG Grant Balance unspent at beginning of year Current year receipts Transfer to National Treasury Conditions met - transferred to revenue Conditions still to be met - transferred to current liabilities
380 1 800 000 -1 342 008 458 372
20.4 National MSIG Grant Balance unspent at beginning of year Current year receipts Transfer to National Treasury Conditions met - transferred to revenue VAT Portion transferred to revenue Conditions still to be met - transferred to current liabilities
1 460 930 000 -470 888 460 572
20.5 National INEP Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue VAT Portion transferred to revenue Payment made to Eskom Conditions still to be met - transferred to current liabilities
1
1 800 000 -1 799 621 379
934 000 -932 540 1 460
9 116 1 000 000 -990 884
9 116
9 116
20.6 National EPWP Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - transferred to current liabilities
1 153 000 -1 153 000 -
1 308 000 -1 308 000 -
20.7 Provincial LIBRARY Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - transferred to current liabilities
319 119 1 413 000 -1 732 119 -
115 001 934 000 -729 881 319 120
20.8 Namaqua District Municipality Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - transferred to current liabilities
-
20.9 Accelerated Infrastructure Programme - DWA Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue VAT Portion transferred to revenue Conditions still to be met - transferred to current liabilities
-
20.10 Regional Bulk Infrastructure Grant - DWA Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue VAT Portion transferred to revenue Conditions still to be met - transferred to current liabilities 21
22
FINES Court Fines Library Fines Traffic Fines OTHER INCOME Game Sales Lost Materials Photostats Reduced Amperes Sale of Stone and Gravel Sundry Auction Library Staff Capacity Water Affairs VAT Coghsta Insurance Claim - Nieuwoudtville line Deduction - Councillor's Other Surplus Cash Transaction Fees
-
3 428 272 -3 428 272 -
1 145 069 7 037 338 -7 965 982 216 425
7 500 107 -6 355 037
63 275 10 772 74 047
110 830 10 097 120 927
6 140 146 7 690 2 193 176 329 788
1 028 7 477 1 754 321 676 013 49 714 382 361 60 465
329 788 1 586 14 478 362 198
183 473
1 145 070
686 593
50
HANTAM MUNICIPALITY
52
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 23
2015 R
SERVICE CHARGES Sale of Electricity Sale of Water Refuse Removal Sewerage and Sanitation Charges Other Service Charges LESS: Income Foregone Total Service Charges
22 740 406 7 764 433 5 402 141 5 521 992 540 287 41 969 259 -3 255 034 38 714 225
20 256 882 7 235 057 4 797 232 5 131 523 429 835 37 850 529 -3 849 152 34 001 376
24 541 253 5 175 401 1 267 636 182 791 846 076 32 013 158
21 777 194 4 536 452 1 306 955 207 144 1 219 899 29 047 644
814 096 33 000 786 111 1 633 207
658 107 0 58 000 913 952 1 630 059
70 817 5 144
303 680 40 952 344 632
Income foregone relates to rebates given to Indigents. 24
EMPLOYEE RELATED COSTS Employee Related Costs - Salaries and Wages Employee Related Costs - Company Contributions Motor Vehicle Allowances Housing Benefits and allowances Performance Bonus paid Overtime Payments Total Employee Related Costs There were no advances outstanding to employees. Key Management Personnel Remuneration of Key Management Personnel Remuneration of Municipal Manager Annual remuneration Performance Bonus Car Allowance Lump sum payments due to termination of Municipal Manager
Municipal Manager Vacant during 2016: Acting Allowances J.R. van Wyk S.M.Coetzee
75 961 Remuneration of Individual Head of Departments: 2016 Annual remuneration 13th Cheque Performance Bonus Car Allowance Contributions to UIF, Medical and Pension Funds
Acting Allowance paid during 2015/2016 due to vacancies and Leave G.M.J.Lock J.H. Langner
Remuneration of Individual Head of Departments: 2015 Annual remuneration 13th Cheque Performance Bonus Car Allowance Contributions to UIF, Medical and Pension Funds
Chief Financial Officer
Infrastructure Services
Corporate Services
392 224
583 345
10 000
22 632 96 000
24 720
402 224
701 977
546 858
Chief Financial Officer
Infrastructure Services
706 326
Corporate Services
Infrastructure Services 276 016
Corporate Services
416 180 31 662 142 053 102 009 123 075 814 979 Social Services
385 685 29 590 102 009 110 722 628 006
24 000
48 000
36 000
324 016
666 474
Infrastructure Services
Social Services
630 474
730 326 Chief Financial Officer
Social Services
49 970
107 689
Chief Financial Officer
522 138
Corporate Services
Social Services
Acting Allowance paid during 2014/2015 due to vacancies and Leave J.R. van Wyk J.H. Langner
25
79 001 36 793
REMUNERATION OF COUNCILLORS Full Time Mayor Councillors Data Card Allowance Cell Allowance Travel Allowance
469 854 1 293 153 32 400 187 248 587 787 2 570 442
504 572 1 192 974 32 400 187 812 571 849 2 489 607
51
HANTAM MUNICIPALITY
53
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 26
27
28
DEBT IMPAIRMENT Receivables from Exchange and Non-Exchange Transactions
FINANCE CHARGES Long-Term Liabilities: Annuity Loan Finance Leases Interest Cost - Landfill Sites Interest Cost - Employee Benefits
9 449 147
5 710 26 714 1 458 317 1 244 040 2 734 781
32 080 49 061 485 136 1 026 202 1 592 479
19 215 551 88 221 19 303 772
13 911 720 -12 982 13 898 737
225 640 225 640
164 969
GRANTS AND SUBSIDIES PAID Churches and Religious Bodies
30
2 576 206
BULK PURCHASES Electricity Water
29
2015 R
GENERAL EXPENSES Advertisements Bargaining Council Books and Periodicals Chemicals Cleansing Communication / Media Library expenses Connection Materials Deed Returns Electricity Entertainment & Receptions MSIG Grant Expenditure FMG Grant Expenditure Household Expenditure Legal Fees License Fees - Financial Programmes Lost Books and Records Materials / Toxins Middelpos Medical And First Aid Expenses Membership Fees Pest Control Postbox Rent Postal Services Printing and Stationery Purifying Refreshments Refuse Bags / Containers Rental Photocopiers Rent - Plant and Vehicles Sanitation Special Programs Subsistence and Travelling Subsistence and Travelling Councillors Sundries Actuarial Loss Food for Waste Programme Expanded Works Programme Safety for Mayor Fire Nieuwoudtville Other Telephone Telephone Rental Data Line Tourism Training Traffic Signs Transport Uniforms and Protective Clothing Water Water Reducing Valves Water Samples Financial Services Bank Charges External Audit Fees Insurance - General Insurance - W.C.A. Skills Development Levy (Seta)
38 129 13 828 1 842 19 111 197 091 14 452 24 894 979 937 9 993 470 888 1 342 008 45 564 438 406 220 358 6 901 15 620 200 000 3 051 1 145 172 476 262 653 411 297 66 139 8 792 5 195 310 200 543 682 675 351 685 682 263
682 263 302 818 257 176 4 958 120 028 36 930 41 015 122 883 218 7 676 288 051 165 617 2 272 795 330 828 212 076 293 756 16 533 876
164 969
92 545 12 177 1 549 2 026 23 898 729 881 11 864 16 214 686 161 9 989 932 540 1 799 621 29 836 424 112 5 500 182 388 3 434 26 903 4 941 877 156 506 164 474 295 492 46 670 2 942 3 924 683 13 642 168 325 811 017 458 386 2 362 089 1 472 622 778 405 40 000 50 188 20 874 279 450 256 190 9 997 218 622 55 295 33 951 98 877
139 460 138 790 1 251 223 307 465 211 070 273 101 16 674 172
52
HANTAM MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
54 2016 R
31
32
EMPLOYEE BENEFITS -TRANSFER TO AND FROM PROVISIONS Leave Provision plus 13th Cheque Bonus Contribution to Performance Bonuses Contribution to Post Retirement Contribution from Post Retirement Contribution to Long Service Awards Contribution from Long Service Awards
384 822 -467 701 407 892 -403 896 177 009 98 126
583 129 508 086 401 808 -343 572 131 707 1 281 158
4 290 345
7 659 361
6 389 749 21 668 805 -502 768
7 957 -192 533 4 383 683 3 106 151 946 890
-382 491 32 424 31 496 064 10 677 344 332 -8 186 852 -23 684 8 175 844 668 820 32 485 201
-457 648 81 141 15 535 002 -21 754 3 720 740 -348 790 1 360 143 3 902 350 -711 342 23 436 349
886 426 -886 426 775 000 775 000
10 320 -10 320 886 426 886 426
RECONCILIATION BETWEEN NET SURPLUS/(DEFICIT) FOR THE YEAR AND CASH GENERATED/(ABSORBED) BY OPERATIONS Surplus for the year Adjustment for: Loss on disposal of property, plant and equipment Proceeds on disposal of property plant and equipment Depreciation Contribution to provisions - non-current Contributions to provisions - current Contribution to bad debt provision Actuarial Loss Investment Income Finance Charges Operating surplus before working capital charges Decrease in Inventory (Increase)/Decrease in Debtors (Increase)/Decrease in other Debtors Increase/(Decrease) in conditional grants and receipts Increase/(Decrease) in Creditors Increase/(Decrease) in VAT Cash Generated by Operations
33
2015 R
UNAUTHORISED, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE
33.1 Fruitless and Wasteful Expenditure Reconciliation of Fruitless and Wasteful Expenditure Opening Balance Condoned or written off by Council Fruitless and Wasteful expenditure for current year Fruitless and Wasteful expenditure awaiting condonement Incident
Disciplinary Steps
Interest of paid to the Auditor-General on the amount outstanding An amount of R775 000 paid to the previous municipal manager as a result of a settlement agreement
None
2015 Incident
Disciplinary Steps
Interest of R23 700 paid to the Auditor-General on the amount outstanding An amount of R822 726 paid to the previous municipal manager as a result of a settlement agreement An amount of R40 000 were paid for the security of the mayor without approval of the MEC and police report
None None None
33.2 Irregular Expenditure Reconciliation of Irregular Expenditure Opening Balance Condoned or written off by Council Irregular expenditure for current year Irregular expenditure awaiting condonement
Restated 3 803 565 -5 782 313 2 751 035 772 287
766 642 -766 642 3 803 565 3 803 565
(The Irregular listing of expenses for 2015 is restated)
33.3 Deviations according to SCM Regulations Reconciliation of Deviations Opening Balance Condoned or written off by Council Deviations for current year Deviations awaiting condonement For list of Deviations and Irregular Expenditure - see App.E
Restated 2 697 440 -5 348 007 2 971 062 320 495
632 077 -632 077 2 697 440 2 697 440
53
HANTAM MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
55
2016 R
33
UNAUTHORISED, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE (continued) 33.3 Unauthorised Expenditure Reconciliation of Unauthorised Expenditure Opening Balance Unauthorised expenditure current year - operating Unauthorised expenditure current year - capital Condoned or written off by Council Unauthorised expenditure awaiting condonement Incident
2 267 899
2015 R
2 026 673 2 267 899
2 267 899
-2 026 673 2 267 899
1 491 364 2 249 988 -885 002 2 856 350
986 519.00 1 251 223 -746 378 1 491 364
Disciplinary Steps None None None None None
2015 An amount of R125 826 were paid for subsistance and travel in the case of the DA against the mayor. Over expenditure of approved budget for Collection Costs with R56 563 due to the increase in pre-paid meters and increase in vendors. Over expenditure of approved budget for Finance Charges with R161 222 because there was under budgeted for the interest part of the employee benefits due to new valuation Over expenditure of approved budget for General Expenses with R1 752 663 due to actuarial losses of R1 472 622 and increase in vehicle costs due to water crisis in Loeriesfontein Over expenditure of approved budget for Contracted Services with R75 215 due to security personnel appointed
34
None None None None None
ADDITIONAL DISCLOSURES IN TERMS OF THE MFMA
34.1 Audit Fees Opening Balance Current Year audit fee Amount paid current year Amount paid previous year The regulation of 1% is still in place.
54
HANTAM MUNICIPALITY
56
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 34
2016 R
ADDITIONAL DISCLOSURES IN TERMS OF THE MFMA (Continued)
34.2 VAT Opening Balance Output VAT Input VAT Operating VAT Control Account Year-End Sundry VAT Amounts received/Paid - previous years Amounts received - current year Amount claimed - current year Amount paid - current year Corrections
VAT Control Account Input VAT Operating Input VAT Capital Output VAT Input VAT Reclaim Year -End Sundry VAT
34.3 PAYE and UIF and SDL Opening Balance Current year payroll deductions Amount paid - current year Amount paid - previous year Balance unpaid 34.4 Pension Fund and Medical Aid Deductions Opening Balance Current year payroll deductions Amount paid - current year Amount paid - previous year Balance unpaid
2015 R
253 161 -99 303 170 -62 006 12 096 62 032 -1 511 068 1 562 807 438 288 523 661 1 328 881
813 819 -6 407 122 026 462 572 235 628 -462 546 -2 584 444 2 584 444 359 005 854 817 1 565 095
490 054 147 368 -93 398
-62 006 303 170 93 398 -99
361 405 423 452 1 328 881
12 096 346 559
4 836 486 -4 836 486 -
4 083 057 -4 083 057 -
7 000 283 -7 000 283 -
6 235 404 -6 235 404 -
34.5 Councillor's arrear consumer accounts Outstanding less than 90 days
Total
Outstanding more than 90 days
30 June 2016 Councillor M.Esau/K.Esau Councillor G.Fortuin Councillor R.Swartz Councillor J.Swarts Councillor F.Sterkse Councillor A.Claassen Councillor J.H.Wilschut Councillor E.Fallet Councillor G.Opperman/J.J.Opperman Total Councillor arrear Consumer Accounts
1 429 4 389 130 2 240 4 013 1 161 3 020 1 409 3 925 21 716
1 375 241 130 1 444 979 1 073 2 136 1 409 3 896 12 683
54 4 148 796 3 034 88 884
30 June 2015 Councillor G.J. Engelbrecht Councillor M.Esau/K.Esau Mayor A.Fritz Councillor R.Swartz Councillor J.Swarts Councillor F.Sterkse Councillor H.Steenkamp Councillor J.H.Wilschut Councillor G.Opperman/J.J.Opperman Total Councillor arrear Consumer Accounts
0 7 469 4 518 0 1 218 1 384 0 952 816 16 357
0 10 111
7 459 4 407 324 96 243 12 529
1 218 1 060 0 856 573 3 828
29 9 033
55
HANTAM MUNICIPALITY
57
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 35
2015 R
CAPITAL COMMITMENTS Commitments in respect of capital expenditure Approved and contracted for Upgrading Sewer Network/Waste Water Treatment works Water Purification Plant Brandvlei Bulk Infrastructure Scheme Loeriesfontein Bulk Infrastructure Scheme Nieuwoudtville Rehabilitation of Dam Nieuwoudtville Bulk Water Calvinia New Cemetery Electrification of 207 Houses Loeriesfontein Upgrading of Roads
This expenditure will be financed from: Government Grants 36
24 280 140
45 302 268
507 235 1 133 061 460 827
4 128 000 10 000 000 3 324 111
808 336
4 494 698
21 370 681
23 355 459
24 280 140
45 302 268
24 280 140
45 302 268
2 000 000
2 000 000
850 820
850 820
RETIREMENT BENEFIT INFORMATION All employees contribute to the Cape Joint Municipal Pension Fund and SAMWU National Fund which is a defined contribution fund. The retirement benefit fund is subject to the Pension Fund Act, 1956, with pension being calculated on the pensionable remuneration paid. Current contributions by employees are charged against expenditure on the basis of current service costs. Full actuarial valuations are performed at least every five years. The last valuation was done during 2013.
37
CONTINGENT LIABILITY Legal Aid SA - Lamp post collapsed and fall on Charlton Matthys, a minor Legal Aid SA - Deduction amount from Cllr.Wilschut's salary for non-attendance of meetings Nick Kotze - Claim for fire damage on farm LANDFILL SITES: MIDDELPOS As no permits exists for these site a possible contingent liability could be originate of which the amount not be determined. Application submitted JAN LOUW Costs already incurred when council stopped the project
38
FINANCIAL RISK MANAGEMENT Financial Risk Management The activities of the municipality expose it to a variety of financial risks, including market risk (comprising fair value interest rate risk, cash flow interest rate risk and price risk). Credit risk and liquidity risk. The municipality overall risk management programme focusses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the municipality's financial performance. (a) Foreign exchange currency risk The municipality does not engage in foreign currency transactions (b) Interest Rate Risk The municipality is exposed to interest rate risk due to the movements in long-term and short-term interest rates. The risk is managed on an ongoing basis. (c) Credit risk Credit risk is the risk that a counter party to a financial or non-financial asset will fail to discharge an obligation and cause the Municipality to incur financial loss. Credit risk arises mainly from cash and cash equivalent, instruments and deposits with banks and financial institutions, as well as credit exposures to consumer and grant debtors. For banks and financial institutions, only independently rated parties with a minimum rating of B+ are accepted. Grants are receivable from higher order levels of government. In the case of consumer debtors the municipality effectively has the right to terminate services to consumers but in practise this is difficult to apply. This increases the credit risk in respect of consumer debtors. The risk of non-payment is managed on an ongoing basis and where practical, services are terminated and procedures applied to recover outstanding amounts owing and an appropriate level of impairment provision for default is maintained.
107 108
56
HANTAM MUNICIPALITY
58
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 38
2015 R
FINANCIAL RISK MANAGEMENT (continued) (d) Liquidity Risk Liquidity risk is the risk that the municipality will encounter difficulty in raising funds to meet commitments associated with financial liabilities. Prudent liquidity risk management includes maintaining sufficient cash and marketable securities, the availability of funding from an adequate amount of committed credit facilities. The financial liabilities of the municipality are backed by appropriate assets and it has adequate liquid resources. The council monitors the cash projections and by ensuring that borrowing facilities are available to meet its cash requirements. (e) Other risks Potential concentrations of credit risk and interest rate risk consist mainly of fixed deposit investments, long-term debtors, consumer debtors, short-term investment deposits and bank and cash balances. The municipality limits its counterparty exposures from its money market investment operations by only dealing with well-established financial institutions of high credit standing. The credit exposure to any single counterparty is managed by setting transaction/exposure limits which are included in the municipality's investment policy. These limits are reviewed annually by the CFO and authorised by the Municipal Council Consumer debtors comprise of a large number of ratepayers, dispersed across different sectors and geographical areas. Ongoing credit evaluations are performed on the financial conditions of these debtors. Consumer debtors are presented by net of an allowance for doubtful debt. Long-Term Receivables and Other Debtors are individually evaluated at Balance Sheet date for impairment of discounting. A report on the various categories of debtors is drafted to substantiate such evaluation and subsequent impairment/discounting, where applicable. The maximum credit and interest risk exposures in respect of the relevant financial instruments are as follows: Short Term Investment Deposits Receivables from Exchange Transactions Bank and Cash Balances Maximum Credit and interest Risk Exposures
39
53 767 9 408 142 815 360 10 277 269
2 133 029 9 531 419 1 200 662 12 865 110
FINANCIAL INSTRUMENTS Consumer Debtors Service Debtors Other Debtors
Loans and Receivables Loans and Receivables
13 203 046 1 193 356
11 537 182 2 585 850
Other Debtors Sundry debtors
Loans and Receivables
1 725 869
1 425 198
53 767
2 133 029
813 860 1 500
1 199 162 1 500
Short-Term Investment Deposits Call deposits At amortised cost Bank Balances and Cash Bank Balances and Cash Cash Floats and Advances
At amortised cost
57
HANTAM MUNICIPALITY
59
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 2016 R 39
2015 R
FINANCIAL INSTRUMENTS (continued) SUMMARY OF FINANCIAL ASSETS At amortised cost Short-Term Investments Bank Balances and Cash Cash Floats and Advances
53 767 813 860 1 500 869 127
2 133 029 1 199 162 1 500 3 333 691
13 203 046 1 193 356 1 725 869 16 122 272
11 537 182 2 585 850 1 425 198 15 548 230
16 991 398
18 881 921
Loans and Receivables Consumer debtors Consumer debtors Other Debtors
Services Other Sundry Debtors
Total Financial Assets Financial Liabilities Financial Liabilities of the municipality are classified at amortised cost Long-Term Liabilities Annuity Loans Lease Liability
40
At amortised cost At amortised cost
-
78 388
Consumer Deposits Electricity and Water
At amortised costs
704 982
631 708
Payables Trade payables
At amortised costs
18 309 471
9 558 686
Current portion of Long-Term Liabilities Annuity Loans At amortised costs Lease Liability At amortised costs
78 388
336 680 169 037
19 092 841
10 774 499
EVENTS AFTER REPORTING DATE The Municipality is not aware of any events that happened after the reporting date that should have an influence on the financial statements
41
PRIVATE PUBLIC PARTNERSHIPS
42
RELATED PARTIES
None
Key Management and Councillors receive and pay for services on the same terms and conditions as other ratepayers/residents.
42.1 Related Parties Transactions Year ended 30 June 2016 Councillors Municipal Manager and Senior Management
Year ended 30 June 2015 Councillors Municipal Manager and Senior Management
Rates
Services
Other
Outstanding
4 554 10 541 15 095
51 608 30 507 82 115
37 733 6 502 44 235
17 407 8 251 25 658
12 515 6 853 19 368
62 345 19 630 81 975
1 862 1 003 2 865
19 275 7 495 26 770
The Rates, service charges and other charges are in accordance with approved tariffs that were advertised to the public. No bad debt expenses have been recognised in respect of amounts owing by related parties.
2016 R Awards to close family members Jo's Catering Services S.J.A.Fritz Council have incurred expenses for services rendered by Jo's Catering Services and SJA Fritz is the brother and sister of Mayor A.F.Fritz. Jo's Catering Services had declared his interest.
2015 R 33 550 36 970
129 270
58
HANTAM MUNICIPALITY
60
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
42
2016 R
2015 R
2016 Variance
2016 Variance %
RELATED PARTIES (continued)
42.2 Compensation of key management personnel The compensation of key management personnel is set out in note 25 to the Annual Financial Statements.
43
BUDGET COMPARISONS 2016 REVENUE Property rates Service charges Rental of facilities and equipment Interest earned - external investments Interest earned - outstanding debtors Fines Licences and permits Government grants and subsidies - Operating Government grants and subsidies - Capital Other income Profit on sale of assets Public contributions, donated/contributed LESS: Income Foregone Total Revenue EXPENDITURE Employee related costs Remuneration of Councillors Bad debts Collection costs Depreciation Repairs and maintenance Finance Charges Bulk purchases Contracted services Grants and subsidies paid General expenses - other Provision - Post employment benefits Loss on disposal of property, plant and equipment Total Expenditure NET SURPLUS/(DEFICIT) FOR THE YEAR
2016 Actual
2016 Budget
7 540 440 41 969 259 160 948 382 491 1 489 320 74 047 1 201 480 25 350 015 17 174 533 362 198
7 549 441 43 875 559 168 700 430 000 1 618 895 93 000 1 500 100 25 958 000 26 383 000 6 596 928
-3 906 415
-651 349
9 001 1 906 300 7 752 47 509 129 575 18 953 298 620 607 985 9 208 467 6 234 730 0 3 255 066
91 798 315
113 522 274
21 723 959
32 013 158 2 570 442 2 576 206 649 907 6 389 749 3 814 178 2 734 781 19 303 772 598 137 225 640 16 533 876 98 125
32 058 994 2 641 495 3 657 040 530 000 4 285 051 3 496 970 1 682 225 21 134 480 599 780 225 640 15 638 572 1 079 095
87 507 970 4 290 345
87 029 342 26 492 932
45 836 71 053 1 080 834 -119 907 -2 104 698 -317 208 -1 052 556 1 830 708 1 644 0 -895 304 980 970 0 -478 628 22 202 587
0.12 4.34 4.59 11.05 8.00 20.38 19.91 2.34 94.51 0.00 -499.74
0.14 2.69 29.55 -22.62 -49.12 -9.07 -62.57 8.66 0.27 0.00 -5.72 90.91
Details of material variances Revenue
External Investments- -R47 509 (11.05%) Interest Outstanding Debtors - R302 358 (29.64%) Fines - R18 953 (20.38%) Lisence and Permits - R298 620 (19.91%) Other Income - R6 234 730 (94.51%) Income Foregone - R3 255 066 (499.74%) Expenditure
Emergency expenditure for water drain the cash flow Increase in Outstanding Debtors Suspension of traffic officer Over budget Catering for non-cash items in the budget Free Basic Services included in Service Charges
Bad Debt Impairment - R1 080 834 (29.55%) Collection Costs - R119 907 (22.62%) Provision Employment Benefits - R980 970 (90.91%) Depreciation - R2 104 698 (49.12%)
Over Provision previous years and increase in Indigents Increase in pre-paid vendors and pre-paid meters installed Performance bonus paid against liability and over budget Depreciation on IGRAP i.c.w. Landfill Sites and unbundeling of infrastructure assets.
59
HANTAM MUNICIPALITY
61
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 43
BUDGET COMPARISONS (continued) 2015
REVENUE Property rates Service charges Rental of facilities and equipment Interest earned - external investments Interest earned - outstanding debtors Fines Licences and permits Government grants and subsidies - Operating Government grants and subsidies - Capital Other income Profit on sale of assets Public contributions, donated/contributed LESS: Income Foregone Total Revenue EXPENDITURE Employee related costs Remuneration of Councillors Bad debts Collection costs Depreciation Repairs and maintenance Finance Charges Bulk purchases Contracted services Grants and subsidies paid General expenses - other Provision - Post employment benefits Loss on disposal of property, plant and equipment Total Expenditure NET SURPLUS/(DEFICIT) FOR THE YEAR
2015 Actual
2015 Budget
2015 Variance
7 540 440 41 969 259 160 948 382 491 1 489 320 74 047 1 201 480 25 350 015 17 174 533 362 198 184 576 -3 906 415
7 549 441 43 875 559 168 700 430 000 1 618 895 93 000 1 500 100 25 958 000 6 596 928 -651 349
9 001 1 906 300 7 752 47 509 129 575 18 953 298 620 607 985 -17 174 533 6 234 730 -184 576 3 255 066
91 982 891
87 139 274
-4 843 617
32 013 158 2 570 442 2 576 206 649 907 4 383 683 3 814 178 1 810 113 19 303 772 598 137 225 640 16 533 876 98 125
32 058 994 2 641 495 3 657 040 530 000 4 285 051 3 496 970 1 682 225 21 134 480 599 780 225 640 15 638 572 1 079 095
45 836 71 053 1 080 834 -119 907 -98 632 -317 208 -127 888 1 830 708 1 644 0 -895 304 980 970
84 577 236 7 405 656
87 029 342 109 932
2 452 106 -7 295 724
2015 Variance %
Details of material variances Revenue
External Investments- R57 648 (14.41%) Interest Outstanding Debtors - R302 358 (29.64%) Fines - R72 927 (151.93%) Other Income - R731 578 (1508.97%) Income Foregone - R3 850 993 (629.87%) Expenditure
Transfers and Surplus Cash Invest during year Increase in Outstanding Debtors Recognition of fines Transfer of VAT on Conditional Grants to Income Free Basic Services included in Service Charges
Bad Debt Impairment - R5 921 402(167.85%) Collection Costs - R56 563 (12.57%) Finance Charges - R161 222 (11.26%) General Expenses - R1 752 663 (11.75%)
Over Provision previous years and increase in Indigents Increase in pre-paid vendors and pre-paid meters installed Actuarial Valuations Actuarial Loss of R1 427 622 and increase in vehicle costs due to water crisis in Loeriesfontein Actuarial Valuations Security personnel New infrastructure assets
Provision Employment Benefits - R332 658 (35.07%) Contracted Services - R75 215 (13.96%) Depreciation - R68 427 (1.59%)
0.12 4.34 4.59 11.05 8.00 20.38 19.91 2.34 94.51 0.00 -499.74
0.14 2.69 29.55 -22.62 -2.30 -9.07 -7.60 8.66 0.27 0.00 -5.72 90.91
60
HANTAM MUNICIPALITY
62
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 43
2016 R
BUDGET COMPARISONS (continued)
2015 R
43.1 Reconciliation of Budget surplus/(deficit) with the surplus/(deficit) in the statement of financial performance Net surplus per the statement of financial performance - Deficit on the sale of assets - Gain on Fair Value Adjustments - Government Grants used for property, plant and equipment
44
4 290 345 -
7 659 361 0 -184 576 -20 727 194
4 290 345
-13 252 408
- Other adjustments Budget Surplus - revenue Budget overspending - expenditure
-22 202 587 -21 723 959 478 628
-7 200 272 -4 983 939 2 216 333
Net surplus per approved budget
26 492 932
-6 052 136
Water (%) Water Rand Value
13.70 1 312 226
17.05 1 799 592
Electricity (%) Electricity Rand Value
15.85 2 698 265
16.70 2 872 482
MATERIAL LOSSES The following material distribution losses incurred during the year:
45
CORRECTION OF ERROR During the year ended 30 June 2014 and previous years, PPE and other assets were incorrectly recognised. The comparative amount has been restated as follows: Non-Current Provisions Balance previously reported IGRAP 2 Adjustment not recognised in periods before 1 July 2014 Correction of 2014/15 interest Reversal of provision not recognised in periods before 1 July 2014 Restated balance on 30 June 2015
5 336 493 18 428 482 890 635 -350 323 24 305 287
Property, plant and equipment Removal of Assets Write-Off of Assets Recognize of Assets Write-Off of Assets Corrections made Landfill Sites
24 232 114 470 059 -36 781 693 -10 834 746 2 498 379 540 313
Retention Money Correction
7 000 -19 868 574
19 868 574
Net effect on Accumulated surplus opening balance
-
Revaluation of property, plant and equipment Net effect on Statement of Financial Position - Revaluation Reserve
46
NATIONAL TREASURY APPROPRIATION STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
2015/2016
BUDGET SUMMARY Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
Description
Variance
Actual Outcome
budget
as % of Original Budget
1
2
3
4
5
6
Financial Performance Property Rates Service Charges Investment revenue Transfers recognised - operational Other own revenue Total Revenue (excl. capital transfers and contributions)
6 559 009 43 227 469 1 865 293 25 958 000 8 310 021 85 919 792
-339 083 -648 089 -183 602 0 -48 707 -1 219 481
6 898 092 43 875 558 2 048 895 25 958 000 8 358 728 87 139 273
7 540 440 41 969 259 1 871 811 25 350 015 -2 107 742 74 623 783
Employee costs Remuneration of councillors Debt impairment Depreciation and asset impairment Finance charges Materials and bulk purchases Transfers and Grants Other expenditure Total Expenditure Surplus/(Deficit) Transfers recognised - capital Surplus/(Deficit) after capital transfers
30 902 043 2 771 348 3 727 040 4 315 256 1 682 225 21 134 480 181 467 21 142 906 85 856 765 63 027 26 383 000 26 446 027
-1 156 950 129 853 70 000 30 205 0 0 -44 173 -201 511 -1 172 576 -46 905 0 -46 905
32 058 993 2 641 495 3 657 040 4 285 051 1 682 225 21 134 480 225 640 21 344 417 87 029 341 109 932 26 383 000 26 492 932
32 013 158 2 570 442 2 576 206 4 495 019 1 810 113 19 303 772 225 640 21 694 223 84 688 573 -10 064 790 17 174 533 7 109 743
Capital expenditure & funds sources Capital expenditure Transfers recognised - capital Public contributions & donations Borrowing Internally generated funds Total sources of capital funds
26 383 000 0 90 000 26 473 000
0 0 -350 000 -350 000
26 383 000 440 000 26 823 000
0 0 0
-
Cash flows Net cash from (used) operating Net cash from (used) investing Net cash from (used) financing Cash/cash equivalents at the year end
24 354 004 -23 221 930 -457 717 681 279
449 692 250 000 0 -494 048
23 904 312 -23 471 930 -457 717 1 175 327
32 955 517 -30 058 511 -432 442 869 127
-
-209 968 -127 888 -349 806 -687 662 687 662 687 662
8
-642 348 1 906 299 177 084 607 985 10 466 470 12 515 490
99.22 481.95 310.56 99.19 378.16 1 369.09
45 835 71 053 1 080 834 -209 968 -127 888 1 830 708 -349 806 2 340 768 10 174 722 9 208 467 966 255
105.99 96.12 197.77 97.76 104.22 73.32 103.41 305.52 1 084.12 284.97 176.36 108.61
-
-9 051 205 6 586 581 -25 275 -2 489 899
113.95 1 867.36 1 981.31
530.93 -
61
62
2015/2016
Reconciliation of Budgeted Financial Performance (Standard Classification)
63
Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
1
2
4
5
Description
Variance
Actual Outcome
budget
as % of Original Budget
3
6
8
Revenue - Standard Governance and administration Executive and council Budget and treasury office Corporate services Community and public service Community and social service Sport and recreation Public Safety Housing Health Economic and environmental services Planning and development Road transport Environmental protection Trading services Electricity Water Waste water management Waste management Other Total Revenue - Standard
30 671 177 8 294 111 9 817 009 12 560 057 1 873 470 1 505 370 368 100 1 813 100 1 785 000 28 100 51 562 045 27 692 659 10 624 733 5 798 701 7 445 952
-391 678 0 -294 869 -96 809 -6 933 0 -6 933 -7 813 -813 -7 000 -813 057 -615 648 -66 234 -2 000 -129 175
31 062 855 8 294 111 10 111 878 12 656 866 1 880 403 1 505 370 375 033 1 820 913
23 772 435 1 856 567 9 228 750 12 687 118 5 961 904 5 514 362 397 542 50 000
1 785 813 35 100 52 375 102 28 308 307 10 690 967 5 800 701 7 575 127
3 464 060 70 545 58 529 371 26 201 196 20 167 195 5 489 936 6 671 044
85 919 792
-1 219 481
87 139 273
91 798 315
24 661 272 9 440 096 7 260 151 7 961 025 3 549 186 2 297 825 1 180 069 71 292 8 098 993 445 508 7 504 336 149 149 48 886 699 28 296 790 8 658 902 3 899 005 8 032 002 660 616 85 856 766 63 026
634 027 214 616 -77 140 496 551 -365 780 -177 077 -194 903 6 200 270 185 -296 457 576 084 -9 442 -1 888 858 -691 870 -432 698 232 781 -997 071 177 851 -1 172 575 -46 906
24 027 245 9 225 480 7 337 291 7 464 474 3 914 966 2 474 902 1 374 972 65 092
23 335 128 10 222 977 6 268 938 6 843 213 3 629 353 2 230 808 1 312 113 86 432
7 828 808 741 965 6 928 252 158 591 50 775 557 28 988 660 9 091 600 3 666 224 9 029 073 482 765 87 029 341 109 932
8 568 363 768 008 7 650 481 149 874 48 628 637 25 702 581 9 559 250 3 019 769 10 347 037 527 090 84 688 571 7 109 744
-
-
-
3 534 605
7 290 420 6 437 544 883 128 -30 252 -4 081 501 -4 008 992 -22 509 -50 000
217 22 94 101 474 366 108
-1 713 692
445
-1 678 247 -35 445 -13 729 396 2 107 111 -9 476 228 310 765 -6 671 044
194 251 469 95 190 95 90
-
-12 234 169
1 606
-
692 117 -997 497 1 068 353 621 261 285 613 244 094 62 859 -21 340
281 108 86 86 330 97 111 121
-739 555 -26 043 -722 229 8 717 2 146 920 3 286 079 -467 650 646 455 -1 317 964 -44 325 2 340 770 -14 574 939
375 172 102 100 408 91 110 77 129 80 1 472 133
-
Expenditure - Standard Governance and administration Executive and council Budget and treasury office Corporate services Community and public service Community and social service Sport and recreation Public Safety Housing Health Economic and environmental services Planning and development Road transport Environmental protection Trading services Electricity Water Waste water management Waste management Other Total Expenditure - Standard Surplus/(Deficit) for the year
-21 340
-21 340
-748 272 -26 043 -722 229 -1 785 614 -467 650 -1 317 964 -44 325 -2 599 551 2 599 551
2015/2016
Reconciliation of Budgeted Financial Performance (Municipal vote) Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
Description
Variance
Actual Outcome
budget
as % of Original Budget
1
2
3
4
Revenue by Vote Executive and council Budget and treasury office Corporate services Community and social service Sport and recreation Public Safety Housing Health Planning and development Road transport Environmental protection Electricity Water Waste water management Waste management Other Total Revenue by Vote
8 294 111 9 817 009 12 560 057 1 505 370 368 100 1 785 000 28 100 27 692 659 10 624 733 5 798 701 7 445 952 85 919 792
0 -294 869 -96 809 0 -6 933 -813 -7 000 -615 648 -66 234 -2 000 -129 175 -1 219 481
8 294 111 10 111 878 12 656 866 1 505 370 375 033 1 785 813 35 100 28 308 307 10 690 967 5 800 701 7 575 127 87 139 273
1 856 567 9 228 750 12 687 118 5 514 362 397 542 50 000 3 464 060 70 545 26 201 196 20 167 195 5 489 936 6 671 044 91 798 315
Expenditure by Vote Executive and council Budget and treasury office Corporate services Community and social service Sport and recreation Public Safety Housing Health Planning and development Road transport Environmental protection Electricity Water Waste water management Waste management Other Total Expenditure by Vote Surplus/(Deficit) for the year
9 440 096 7 260 151 7 961 025 2 297 825 1 180 069 71 292 445 508 7 504 336 149 149 28 296 790 8 658 902 3 899 005 8 032 002 660 616 85 856 766 63 026
214 616 -77 140 496 551 -177 077 -194 903 6 200 -296 457 576 084 -9 442 -691 870 -432 698 232 781 -997 071 177 851 -1 172 575 -46 906
9 225 480 7 337 291 7 464 474 2 474 902 1 374 972 65 092 741 965 6 928 252 158 591 28 988 660 9 091 600 3 666 224 9 029 073 482 765 87 029 341 109 932
10 222 977 6 268 938 6 843 213 2 230 808 1 312 113 86 432 768 008 7 650 481 149 874 25 702 581 9 559 250 3 019 769 10 347 037 527 090 84 688 571 7 109 744
5
6
-
-997 497 -21 340 -26 043 -722 229 -467 650 -1 317 964 -44 325 -3 597 048 3 597 048
8
6 437 544 883 128 -30 252 -4 008 992 -22 509 -50 000 -1 678 247 -35 445 2 107 111 -9 476 228 310 765 -6 671 044 -12 234 169
22 94 101 474 366 108 0 0 0 445 0 194 251 469 95 2 620
-997 497 1 068 353 621 261 244 094 62 859 -21 340 -26 043 -722 229 8 717 3 286 079 -467 650 646 455 -1 317 964 -44 325 2 340 770 -14 574 939
172 77 89 95 98 72 80 91 71 67 106 86 130 60 1 293 186
63
2015/2016
Reconciliation of Budgeted Financial Performance (revenue and expenditure) Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
1
2
4
5
Description
64 Variance
Actual Outcome
budget
as % of Original Budget
3
Revenue By Source Property Rates Service Charges - Electricity Service Charges - Water Services Charges - Sanitation Service Charges - Refuse Service Charges - Other Rental of Facilities Interest - Investments Interest - Outstanding Debtors Fines Licences and Permits Transfers Recognised - Operat. Other Revenue Income Foregone Total Revenue (excluding capital transfers)
6 559 009 23 701 462 8 150 407 5 737 265 5 268 585 369 750 163 440 350 000 1 515 293 93 000 1 500 100 25 958 000 6 553 481 85 919 792
-339 083 -464 946 -55 218 0 -129 175 1 250 -5 793 -80 000 -103 602 0 0 0 -42 914 -1 219 481
6 898 092 24 166 408 8 205 625 5 737 265 5 397 760 368 500 169 233 430 000 1 618 895 93 000 1 500 100 25 958 000 6 596 395 87 139 273
7 540 440 22 740 406 7 764 433 5 521 992 5 402 141 540 287 160 948 382 491 1 489 320 74 047 1 201 480 25 350 015 362 198 -3 906 415 74 623 783
Expenditure by Type Employees Related Costs Remuneration of Councillors Debt Impairment Depreciation and asset impairment Finance Charges Bulk Purchases Other Materials Contractes Services Transfers and Grants Other Expenditure Loss on disposal of PPE Total Expenditure Surplus/(deficit) Transfers recognised - Capital Surplus/(Deficit) after capital transfers & contributions
30 902 043 2 771 348 3 727 040 4 315 256 1 682 225 21 134 480 3 765 470 548 049 181 467 16 829 387 85 856 765 63 027 26 383 000 26 446 027
-1 156 950 129 853 70 000 30 205 0 0 -1 500 -51 731 -44 173 -148 280 -1 172 576 -46 905 0 -46 905
32 058 993 2 641 495 3 657 040 4 285 051 1 682 225 21 134 480 3 766 970 599 780 225 640 16 977 667 87 029 341 109 932 26 383 000 26 492 932
32 013 158 2 570 442 2 576 206 4 495 019 1 810 113 19 303 772 3 814 178 598 137 225 640 17 281 908 84 688 573 -10 064 790 17 174 533 7 109 743
6
-
-209 968 -127 888 -47 208 1 643 -304 241 -687 662 687 662 687 662
8
-642 348 1 426 002 441 192 215 273 -4 381 -171 787 8 285 47 509 129 575 18 953 298 620 607 985 6 234 197 3 906 415.00 12 515 490
114.96 95.95 95.26 96.25 102.53 146.12 98.48 109.28 98.29 79.62 80.09 97.66 5.53
45 835 71 053 1 080 834 -209 968 -127 888 1 830 708 -47 208 1 643 0 -304 241 2 340 768 10 174 722 9 208 467 966 255
103.60 92.75 69.12 104.17 107.60 91.34 101.29 109.14 124.34 102.69
1 369
1 006 363 65.10 298
2015/2016
Reconciliation of Budgeted Capital Expenditure (expenditure by vote, standard classification and funding) Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
Description
Variance
Actual Outcome
budget
as % of Original Budget
2
1
Single year expenditure Executive and council Budget and treasury office Corporate services Community and social service Sport and recreation Public Safety Housing Health Planning and development Road transport Environmental protection Electricity Water Waste water management Waste management Other Capital single year expenditure Total Capital Expenditure - Vote Capital Expenditure - Standard Governance and administration Executive and council Budget and treasury office Corporate services Community and public service Community and social service Sport and recreation Public Safety Housing Health Economic and environmental services Planning and development Road transport Environmental protection Trading services Electricity Water Waste water management Waste management Other Total Capital Expenditure - Standard Funded by: National Government Provincial Government District Municipality Other transfers and grants Transfers recognised - capital Public contributions & Donations Borrowing Internally generated funds Total Capital funding
3
4
5
6
8
26 473 000 26 473 000
-260 000 -350 000 -350 000
260 000 26 823 000 26 823 000
0 0
-
0 0 0 0 0 0 0 0 0
90 000
0
90 000
0
-
0
0
0
0
90 000 4 494 698
-
954 685 2 713 000 17 452 111 768 506
-90 000
90 000 4 494 698 954 685 2 713 000 17 542 111 768 506
90 000 4 494 698 4 494 698
0
90 000 4 494 698 4 494 698
0
-
0 0 0
954 685
0
954 685
0
-
0
954 685 20 933 617 2 713 000 17 452 111 768 506
954 685
26 473 000
260 000 170 000
21 023 617 2 713 000 17 542 111 768 506 260 000 26 823 000
9 542 000
0
9 542 000
16 841 000 26 383 000
0
16 841 000 26 383 000
90 000 26 473 000
-90 000 -90 000 0
-350 000 -350 000
440 000 26 823 000
318 318
0 0
-
0
-
0
0
0 0 0 0 0 0
318 99.09 83.80 135.05
0
113.95
-
0
113.95
-
0 0 0
1 867.36 1 981
318
64
2015/2016
Reconciliation of Budgeted Cash Flows Original
Budget
Final
Actual
Unauthorised
Budget
Adjustments
adjustment
Outcome
expenditure
1
2
4
5
Description
65 Variance
Actual Outcome
budget
as % of Original Budget
CASH FLOW FROM OPERATING ACTIVITIES Receipts Ratepayers and other Government - operating Government - Capital Interest Dividends Payments Suppliers and employees Finance charges Transfers and Grants NET CASH FROM (USED) OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Receipts Increase in Investment Properties Decrease(increase) in non-current debtors Decrease(increase) in non-current receivables Decrease(increase) in non-current investments Payments Capital assets NET CASH FROM (USED) INVESTING ACTIVITIES 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 Cash/cash equivalents at the year begin: Cash/cash equivalents at the year end:
3
44 061 139 25 958 000 26 383 000 962 820
-839 059 -
44 900 198 25 958 000 26 383 000 962 820
41 145 322 25 350 015 17 174 533 382 491
-72 978 531 -32 424
1 288 751 -
-51 064 420 -32 424
24 354 004
449 692
-74 267 282 -32 424 23 904 312
32 955 517
6
-
-14 166 916
-23 221 930 -23 221 930
250 000 250 000
-23 471 930 -23 471 930
-15 891 595 -30 058 511
48 000
48 000
-505 717 -457 717 674 357 6 922 681 279
8
3 754 876 607 985 9 208 467 580 329 0 0 -23 202 862 0 0 -9 051 205
120.83 99.19 116.75 39.92
108.62 45.61 531
14 166 916
-7 580 335 6 586 581
0
73 274
0 -25 274
235.83
0
-505 717 -457 717
-505 716 -432 442
-
-1 -25 275
72.99 309
699 692 -1 193 740 -494 048
-25 335 1 200 662 1 175 327
2 464 564 3 333 691 869 127
-
-2 489 899
840
-
-2 489 899
840
-
The municipality use the incremental budget method and is based on the understanding that the budget will reflect line-items within each class of expenditure and such line-items will be grouped into budget votes, where the votes will present the pricipal functions. The changes between the approved and the final budget are a consequence of reallocations and provision made for expenditure incurred which was not initially budgeted for.
10. PROPERTY, PLANT AND EQUIPMENT
43
30 June 2016 Reconciliation of Carrying Value
Carrying values at 1 July 2015 Cost Correction of error Revaluation Accumulated depreciation -Cost -Correction of Error
Land and Buildings
Infrastructure
Community
Other
Total
R 124 939 519 161 614 367 25 087 118 -36 674 848 -36 924 123 249 275
R 4 888 753 7 625 740 -2 786 140
R 131 106 481 123 988 250 29 475 827
R 4 757 981 7 098 672 -408 739
R 9 273 422 22 901 705 -1 193 830
49 153 -169 179 218 332
-22 357 596 -21 559 139 -798 457
-1 931 952 -2 447 926 515 974
-12 434 453 -12 747 879 313 426
3 365 415 8 470 349
3 686 362
369 469
-5 023 859 -5 023 859
-355 564 -355 564
-1 478 836 -1 478 836
Acquisitions Capital under Construction Increases/decreases in Transfers/Disposal
Depreciation - based on Cost - based on Revaluation Carrying value of disposals Cost/revaluation Accumulated depreciation Impairment losses Other movements Carrying values at 30 June 2016 Cost Correction of error Revaluation Accumulated depreciation - Cost - Revaluation
-200 430 -200 430 -
-
-
4 688 323 4 839 600
137 918 386 165 299 841
8 088 779 10 376 295
8 164 055 22 077 344
-151 277 -151 277
-27 381 455 -27 381 455
-2 287 516 -2 287 516
-13 913 289 -13 913 289
7 421 246 8 470 349 -7 058 689 -7 058 689 158 859 543 202 593 080
-43 733 537 -43 733 537 -
30 June 2015 Reconciliation of Carrying Value
44 Land and Buildings
Carrying values at 1 July 2014 Cost Correction of error ( note ) Revaluation Accumulated depreciation -Cost -Revaluation Acquisitions Capital under Construction Increases/decreases in Transfers Depreciation - based on Cost - based on Revaluation Carrying value of disposals Cost/revaluation Accumulated depreciation Impairment losses Other movements Carrying values at 30 June 2015 Cost Correction of error ( note ) Revaluation Accumulated depreciation - Cost - Revaluation
Infrastructure
Community
Other
Total
R 106 638 012 139 490 157 -32 852 145 -32 852 145
R 7 540 991 7 625 740
R 83 112 437 101 986 733
R 5 078 203 7 098 672
R 10 906 381 22 779 012
-84 749 -84 749 -
-18 874 296 -18 874 296 -
-2 020 469 -2 020 469 -
-11 872 631 -11 872 631 -
5 925 275 16 076 242 -84 430 -84 430 -
-2 684 843 -2 684 843
374 844
-312 841 -312 841
-
-1 301 559 -1 301 559 -7 956
-
-
7 456 561 7 625 740
102 429 111 123 988 250
4 765 362 7 098 672
9 971 710 23 145 900
-169 179 -169 179
-21 559 139 -21 559 139
-2 333 310 -2 333 310
-13 174 190 -13 174 190
6 300 119 16 076 242 -4 383 673 -4 383 673 -7 956 124 622 744 161 858 562
-37 235 818 -37 235 818 -
Refer to Appendix B for more detail on property, plant and equipment
GRAP 17 - Property, Plant and Equipment
ASSETS HELD FOR SALE Office equipment held for sale: - Brandvlei - Calvinia - Nieuwoudtville - Loeriesfontein
43 047 182 558 25 831 72 637 324 073
REVALUATION OF PROPERTY, PLANT AND EQUIPMENT 1. Effective date of revaluation: 01 July 2013 2. Valuators: HCB Property Valuations together with H.C.Botha and P le Roux 3. The methods and significant assumptions applied: 3.1 Residential, Vacant and Agricultural propertiesComparable Sales "An appraisal method that compares a piece of property to other properties with similar characteristics that have been sold recently. The sales comparison approach takes into account the effect that individual features have on the overall property value, meaning that the total value of the property is a sum of values of all its features"
3.2 Commercial/Industrial - Capitalization of Income Approach "Is applicable to income producing properties and is not practical in the appraisal of properties for which a rental market or a rental value cannot be identified. This method is based on the principle of anticipation and a process of capitalization is used to convert an income projection into present capital indication" 3.3 Special properties - Replacement Cost minus Depreciation (properties with limited market value) HCB Property Valuation concluded the new General Valuation Roll for Hantam Municipality and implemented this roll on 1 July 2013. With subsequent Suplementary Rolls it was concluded that there was no significant change in the current market relating to actual sales from 01 July 2014 to 30 June 2015. Using this information it was decided that for this financial year 01 July 2015 to 30 June 2016 that the Fair Value for the investment property of Hantam Municipality stay the same. New sales for the financial year 01 July 2015 to 30 June 2016 will be investigated by 01 March 2016 to determine new values if applicable for 01 July 2016.
66 APPENDIX A HANTAM LOCAL MUNICIPALITY: SCHEDULE OF EXTERNAL LOANS AS AT 30 JUNE 2016 EXTERNAL LOANS
Loan Number
Redeemable
LONG-TERM LOANS Total long-term loans
Balance at 30/06/2015
Received during the period
R
R
Redeemed written off during the period R
Balance at 30/06/2016
R
2016
336 680
-
336 680
-
2016
336 680 336 680
-
336 680 336 680
-
2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016
28 519 47 319 21 005 33 161 14 844 20 202 12 278 20 747 14 844 21 261 13 243
ANNUITY LOANS DBSA Loan @ 5% over 6 Years Total Annuity loans
102858
LEASE LIABILITIES Nashua Lease @ 6.50% over 3 Years Nashua Lease @14.41% over 3 Years Nashua Lease @10.77% over 3 Years Nashua Lease @10.18% over 3 Years Nashua Lease @33.33% over 3 Years Nashua Lease @6.50% over 3 Years Nashua Lease @5.06% over 3 Years Nashua Lease @12.48% over 3 Years Nashua Lease @33.33% over 3 Years Nashua Lease @9.11% over 3 Years Nashua Lease @53.83% over 3 Years
19 857 32 392 14 493 22 908 9 741 14 066 8 575 14 262 9 741 14 721 8 281
Total Lease Liabilities
247 423
-
169 037
8 662 14 927 6 512 10 253 5 103 6 136 3 703 6 485 5 103 6 540 4 962 78 386
TOTAL EXTERNAL LOANS
584 103
-
505 717
78 386
APPENDIX B
Opening Balance Land and Buildings Land Buildings Infrastructure Drains Roads Security Measures Sewerage Mains & Purify Electricity Mains Electricity Peak Load Equip Water Mains & Purification Landfill Sites Car Parks Aerodrome Work in Progress Community Assets Buildings Libraries Recreation Grounds Cemeteries
5 430 240 2 195 500 7 625 740
Investment Property Land
-1 592 440 -1 193 700 -2 786 140
3 837 800 1 001 800 4 839 600
18 374 221 24 427 47 728 173 18 759 774
5 261 506
37 675 670 1 277 514 148 471 123 988 250
5 555 151 18 336 231
4 956 622
-61 508
2 142 050
-392 231 45 000 -408 739
4 895 114 1 749 819 45 000 6 689 933
1 608 055 1 608 055
10 000
1 618 055
10 000
1 618 055
12 179 648
14 166 914
26 346 562
12 179 648
14 166 914
26 346 562
7 098 672 Heritage Assets Historical Buildings Vehicles
Restated Opening
149 964 172 975
29 475 827
23 635 727 24 427 47 878 137 18 932 749 43 230 821 19 613 745 148 471 153 464 077
67
HANTAM LOCAL MUNICIPALITY : ANALYSIS OF PROPERTY PLANT AND EQUIPMENT AS AT 30 JUNE 2016 Cost/Revaluation Accumulated Depreciation WIP Additions Transfers/ Disposals Closing Opening Restated Depreciation Depreciation Additions Adjust Balance Balance Opening Offset - Reval.
-
-
1 984 778
-
-
3 837 800 1 001 800 4 839 600
-
25 620 505 24 427 47 878 137 18 932 749 53 081 807 19 613 745 148 471 165 299 841
-
4 895 114 1 749 819 3 731 362 10 376 295
-
1 618 055 1 618 055
-
6 485 571
3 365 415 -
8 470 349
3 365 415
-
-
-
3 686 362 3 686 362
-
-
-
-95 800 -122 532 -218 332
-95 800 46 647 -49 153
200 430 200 430
3 424 935 16 447 3 389 120 8 016 401
-539 737 -86 497 73 292
2 885 198 16 447 3 302 623 8 089 693
937 055 1 702 1 033 468 406 287
6 008 911 660 031 43 303
-69 613 1 421 012
5 939 298 2 081 043
1 134 496 1 504 665
43 303
6 186
21 559 148
798 457
22 357 605
5 023 859
1 331 533
-60 627
226 671
1 116 393
-455 347
1 270 906 661 046
2 447 926
-515 974
1 931 952
169 179 169 179
-
85 356 43 537 355 564
-
-
-
Transfers/ Adjust
-
-95 800 247 077 151 277
3 933 600 754 723 4 688 323
-
3 822 253 18 149 4 336 091 8 495 980 7 073 794 3 585 708 49 489 27 381 464
21 798 252 6 278 43 542 046 10 436 769 46 008 013 16 028 037 98 982 137 918 377
-
1 497 577 746 402 43 537 2 287 516
3 397 537 1 003 417 3 687 825 8 088 779
-
-
-
-
26 346 562 -
-
-
-
-
-
-
26 346 562
Carrying Value
Closing Balance
-
-
-
-
-
-
-
1 618 055
-
26 346 562
-
26 346 562
Budget Additions 2015
-
1 618 055 -
-
Leased Assets (Infrastructure) Sewerage Mains & Purify -
-
Other Assets
Office Equipment Bins and Containers Emergency Equipment Motor vehicles Buildings Furniture & Fittings Plant & Equipment Biological Assets
Total
2 484 985 10 097 79 657 8 485 275 8 971 875 1 728 856 1 073 460 67 500 22 901 705 175 402 070
39 972
-1 249 550 15 748
-1 193 830 39 264 032
2 524 957 10 097 79 657 8 485 275 7 722 325 1 728 856 1 089 208 67 500 21 707 875 214 666 102
90 533
240 693 21 243 17 000 8 470 349
369 469 7 421 246
-
-
2 615 490 10 097 79 657 8 725 968 7 722 325 1 750 099 1 106 208 67 500 22 077 344 230 557 697
2 009 160 2 020 79 315 5 078 852 3 339 792 1 298 847 939 893
12 747 879 36 924 132
-313 426
-313 426 -249 275
2 009 160 2 020 79 315 5 078 852 3 026 366 1 298 847 939 893 12 434 453 36 674 857
249 994 337 68 625 592 369 652 181 730 51 463
1 478 836 7 058 689
-
-
2 259 154 2 357 79 383 5 704 444 3 396 018 1 480 577 991 356 13 913 289 43 733 546
356 336 7 740 274 3 021 524 4 326 307 269 522 114 852 67 500 8 164 055 186 824 151
-
APPENDIX B
Opening Balance Land and Buildings Land Buildings Infrastructure Drains Roads Security Measures Sewerage Mains & Purify Electricity Mains Electricity Peak Load Equip Water Mains & Purification Landfill Sites Car Parks Aerodrome Work in Progress Community Assets Buildings Libraries Recreation Grounds Cemeteries
5 430 240 2 195 500 7 625 740
Investment Property Land
-
-
17 106 664 24 427 34 185 964 17 532 619 31 711 074 1 277 514 148 471 101 986 733
-
-
-
1 267 557
-
10 501 651
3 040 558 1 227 155
-
5 574 591
390 005
-
-
5 430 240 2 195 500 7 625 740
-
18 374 221 24 427 47 728 173 18 759 774 37 675 670 1 277 514 148 471 123 988 250
-
-
-
16 076 242
5 925 275
-
4 956 622 2 142 050 7 098 672
Heritage Assets Historical Buildings Vehicles
Restated Opening
65
HANTAM LOCAL MUNICIPALITY : ANALYSIS OF PROPERTY PLANT AND EQUIPMENT AS AT 30 JUNE 2015 Cost/Revaluation Accumulated Depreciation WIP Additions Transfers/ Disposals Closing Opening Restated Depreciation Depreciation Additions Adjust Balance Balance Opening Offset - Reval.
1 608 055 1 608 055
-
-
-
-
-
-
-
-
-
-
-
-
4 956 622 2 142 050 7 098 672
-
1 608 055 1 608 055
-
12 179 648 12 179 648
84 749 84 749
-
-
84 430 84 430
2 869 886 14 746 2 696 041 7 651 217
555 049 1 702 693 079 365 184
4 988 148 617 141 37 117
1 020 763 42 890
18 874 296
-
2 684 853 227 485
1 031 037
85 356 -
-
-
312 841
-
-
-
5 430 240 2 026 321 7 456 561
-
3 424 935 16 448 3 389 120 8 016 401 6 008 911 660 031 43 303 21 559 149
14 949 286 7 979 44 339 053 10 743 373 31 666 759 617 483 105 168 102 429 101
-
1 331 533 1 116 393 2 447 926
3 625 089 1 025 657 4 650 746
-
-
-
-
12 179 648 -
-
-
-
-
-
-
-
-
12 179 648
Carrying Value
Closing Balance 169 179 169 179
6 186 -
1 104 048
2 135 085
-
Transfers/ Adjust
-
-
-
-
-
-
-
1 608 055
-
12 179 648
-
12 179 648
1 608 055
Budget Additions 2015
-
-
-
Leased Assets (Infrastructure) Sewerage Mains & Purify -
-
Other Assets
Office Equipment Bins and Containers Emergency Equipment Motor vehicles Buildings Furniture & Fittings Plant & Equipment Biological Assets
Total
2 556 195 10 097 79 657 8 205 363 8 971 875 1 722 209 1 233 617 67 500 22 846 513 153 345 361
71 210
314 912
35 000
27 089 32 843
20 442 193 000 -
-
-
16 076 242
374 844 6 300 119
-
319 652 319 652
2 484 985 10 097 79 657 8 485 275 8 971 875 1 728 856 1 073 460 67 500 22 901 705 175 402 070
1 813 047 1 683 79 247 4 575 072 3 066 568 1 134 172 1 088 227
11 758 016 32 852 146
264 523 337 68 538 780 273 224 179 961 44 666
-
-
1 301 559 4 383 683
-68 410
-35 000 -15 286 -193 000
-
-311 696 -311 696
2 009 160 2 020 79 315 5 078 852 3 339 792 1 298 847 939 893 12 747 879 36 924 133
475 825 8 077 342 3 406 423 5 632 083 430 009 133 567 67 500 10 153 826 138 477 937
-
68 APPENDIX C HANTAM LOCAL MUNICIPALITY: SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016
2015 Actual Income R
2015 Actual Expenditure R
1 672 108 22 178 904 44 511 1 207 980 461 554 5 934 983 1 649 322 15 108 875 24 642 822 188 000
12 616 226 12 930 827 411 927 152 706 2 384 523 68 666 1 072 665 11 223 627 6 128 913 10 659 674 20 448 261 499 015
17 486 957 90 576 016
4 319 623 82 916 653
2015 Surplus/ (Deficit) R
2016 Actual Income R
-10 944 118 9 248 077 -411 927 -108 195 -1 176 543 -68 666 -611 111 -5 288 644 -4 479 591 4 449 201 4 194 561 -311 015 13 167 334
1 856 567 21 915 868 70 545 5 514 362 50 000 397 542 6 671 044 3 464 060 20 167 195 26 201 196 -
10 222 977 13 229 009 768 008 149 874 2 274 345 86 432 1 312 113 11 520 584 8 032 741 10 028 897 25 805 768 1 057 453
5 489 936 91 798 315
3 019 769 87 507 970
Executive & Council Finance & Admin Planning & Development Health Community & Social Services Public Safety Sport & Recreation Waste Management Road Transport Water Electricity Other Waste Water Management 7 659 363 Total
2016 Actual Expenditure R
2016 Surplus/ (Deficit) R
-8 366 410 8 686 859 -768 008 -79 329 3 240 017 -36 432 -914 571 -4 849 540 -4 568 681 10 138 298 395 428 -1 057 453 2 470 167 4 290 345
69
APPENDIX D DISCLOSURES OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF MFMA, 56 OF 2003 FOR THE YEAR ENDED 30 JUNE 2016 Grant and Subsidies Received Name of Grants
Name of organ of state or municipal entity
Balance Unspent 01/07/2015
Balance Unspent 30-Jun-16
Quarterly Receipts
Sept
Dec
204 748
368 299
325 578
443 382
1 342 007
458 373
Yes
9 542 000
178 756
3 474 549
1 827 100
4 511 086
9 991 491
-449 491
Yes
931 460
72 099
111 435
96 476
190 878
470 888
460 572
Yes
1 413 000
1 732 119
64 894
38 170
38 896
1 590 159
1 732 119
-
Yes
0
9 116
6 877 000
5 166 000
20 652 000
5 165 500
5 165 500
5 165 500
5 165 500
20 662 000
-10 000
461 000
346 000
346 000
1 153 000
418 508
361 421
353 330
19 741
1 153 000
910 218
979 117
5 148 004
8 182 408
1 729 208
1 305 196
2 344 362
2 587 216
7 965 982
216 426
1 475 144 13 812 218 12 819 117 15 896 004
44 002 483
7 833 713 10 824 570 10 151 242 14 507 962
43 317 487
684 996
MIG
MIG
Municipal Systems
Nat.Treasury
Library
Culture
INEP
Nat.Treasury
9 116
Equitable
Nat.Treasury
-
8 609 000
EPWP
Nat.Treasury
-
RBIG
Water Affairs
1 145 069
380
Total
1 800 000 1 102 000
1 460
June
4 617 000
3 823 000
930 000
319 119
March
June
Grants and Subsidies delayed / withheld
Sept
Nat.Treasury
March
Quarterly Expenditure
9 116
0
Total
Sept
Dec
Did your municipality comply with the grant conditions in terms of grant framework in the latest Division of Revenue Act Yes/No
1 800 380
Financial Management
Dec
Reason for delay/withholding of funds
March June
Yes 10 000
Yes Yes Yes
-
-
-
-
10 000
Yes
