UBUHLEBEZWE MUNICIPALITY ANNUAL FINANCIAL STATEMENTS ...

UBUHLEBEZWE MUNICIPALITY ANNUAL FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2014

INDEX Statement of Financial Position

4

Statement of Financial Performance

5

Statement of Changes in Net Assets

6

Cash Flow Statement

7

Statement of comparison of budget and actual amounts

8

Accounting Policies

9 - 25

Notes to the Annual Financial Statements

26 - 52

Appendix A

Analysis of Property, Plant and Equipment

53

Appendix B

Segmental Analysis of Property Plant and Equipment

54

Appendix C

Segmental Statement of financial performance

55

Appendix D

Disclosure of Grants and Subsidies in terms of Section 123 of the Municipal Financial Management Act 56, of 2003.

56

Annual Financial Statements for

Ubuhlebezwe Municipality for the year ended 30 June 2014 Province:

KwaZulu Natal

AFS rounding:

R (i.e. only cents)

Contact Information: Name of Municipal Manager:

GM Sineke

Name of Chief Financial Officer:

UP Mahlasela

Contact telephone number:

(039) 834-7700

Contact e-mail address:

[email protected]

Name of contact at provincial treasury:

Mbalenhle Khubone

Contact telephone number:

(033) 897-4546

Contact e-mail address:

[email protected]

Name of relevant Auditor:

Sagie Reddy

Contact telephone number:

(033) 264-7400

Contact e-mail address:

[email protected]

Name of contact at National Treasury:

Thomas Matjeni

Contact telephone number:

[email protected]

Contact e-mail address:

012 315 5792

1

Ubuhlebezwe Municipality Annual Financial Statements for the year ended 30 June 2014

General information Members of the Council

Councillor

Z D Nxumalo

Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor Councillor

T C Dlamini S C Shezi B P Nzimande M E Mkhize S H Dlamini C M Ngubo Z V Shange E B Ngubo M C Ndlovu D Ram Nzimande GP M C Sithole H C Jili G J Ngcongo W M Q Dlamini N J Peterson Z Khumalo N M Mdunge T P Dlamini S M Msimango C N Ntabeni W S Tenza T.S. Shoba

Municipal Manager GM Sineke Chief Financial Officer UP Mahlasela Grading of Local Authority Grade 3 (In terms of the Remuneration of Public Office Bearers Act) Auditors Auditor-General Bankers First National Bank

2

Ubuhlebezwe Municipality ANNUAL FINANCIAL STATEMENTS for the year ended 30 June 2014

General information (continued) Registered Office:

Ubuhlebezwe Municipality, Margatet Street , Ixopo

Physical address: 29 Margaret Street Ixopo

Postal address: P O Box 132 Ixopo 3276

Telephone number:

(039) 834-7700

Fax number:

(039) 834-1168

E-mail address:

[email protected]

3

Ubuhlebezwe MUNICIPALITY ANNUAL FINANCIAL STATEMENTS for the year ended 30 June 2014

Approval of Annual Financial Statements

I am responsible for the preparation of these annual financial statements, which are set out on pages 4 to 59, 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 the salaries, allowances and benefits of Councillors, loans made to Councillors, if any, and payments made to Councillors for loss of office, if any, as disclosed in note 22 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 Officer Bearers Act and the Minister of Provincial and Local Government’s determination in accordance with this Act.

________________________________ Municipal Manager: G.M. Sineke DATE: 29 August 2014

UBUHLEBEZWE MUNICIPALITY STATEMENT OF FINANCIAL POSITION as at 30 June 2014

Note

2014 R 216 110 680 195 195 753 2 849 000 17 585 687 480 240

2013 R 193 178 196 172 101 385 2 849 000 17 787 558 440 253

216 110 680

193 178 196

78 204 485 5 857 469 1 180 376 5 133 487 66 033 153 294 315 165

68 119 759 4 581 048 1 482 195 4 298 260 57 758 256 261 297 955

11 12 13

25 841 680 405 985 13 535 876 11 899 819

27 797 526 383 542 11 737 645 15 676 339

11 32 32

5 706 040 454 040 1 547 000 3 705 000

4 985 511 762 529 917 982 3 305 000

31 547 720

32 783 037

NET ASSETS Housing Development Fund Accumulated surplus

262 767 445 373 788 262 393 657

228 514 918 373 788 228 141 130

Total net assets

262 767 445

228 514 918

ASSETS Non-Current Assets Property, plant and equipment Heritage Assets Investment property carried at cost Intangible assets

1 4 2 3

Total Assets Current Assets Trade receivables from exchange transactions Other receivables from non-exchange transactions VAT receivable from exchange transactions Cash and cash equivalents Total Assets

7 8 9 10

LIABILITIES Current Liabilities Current portion of finance lease liability Trade and other payables from exchange transactions Unspent conditional grants and receipts Non-current Liabilities Finance lease liability Retirement benefits: Long Service Awards Retirement benefits:Post Employment Medical Benefits

Total liabilities

7

UBUHLEBEZWE MUNICIPALITY CASHFLOW STATEMENT for the year ended 30 June 2014 2014 R

Note CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from ratepayers,government and other Cash paid to suppliers and employees Cash generated from operations

R

63 773 993 (24 007 818) 39 766 175

93 243 367 (43 253 198) 56 009 819

17

3 792 522 43 558 697

2 863 809 58 873 628

1 2

(34 860 007) (137 748) (34 997 755)

(33 694 929)

(286 046) (286 046)

(218 817) (218 817)

8 274 896

24 959 882

57 758 256 66 033 153

38 818 024 57 758 256

26

Interest received Net operating cash flow from operating activities

2013

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets Purchase of intangible assets Net cash flows from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in retirement benefits Finance costs Lease Liability Net cash flows from financing activities

25

Net increase / (decrease) in net cash and cash equivalents Cash and cash equivalents at beginning of period Net cash and cash equivalents at end of period

9

7

(33 694 929)

UBUHLEBEZWE MUNICIPALITY STATEMENT OF FINANCIAL PERFORMANCE for the year ended 30 June 2014

Note

2014 R

2013 R

REVENUE Revenue from non exchange transactions Revenue from exchange transactions

14 14

Total revenue

112 200 835 10 547 249

98 302 104 8 623 291

122 748 084

106 925 395

34 716 267 6 893 329 12 610 386 2 761 566 731 932 101 111 4 405 479 21 813 814 3 073 749 1 029 000 88 136 634

27 398 762 6 139 144 16 923 695 1 834 363 132 979 5 499 022 18 827 055 1 620 072 185 070 78 560 162

375 347 -

350 528 5 819 205

34 236 103

22 195 499

EXPENSES Employee related costs Remuneration of councillors Depreciation and amortisation Repairs and maintenance Bad Debts Finance costs Contracted services General expenses Contributions to provisions Contributions to post retirement benefits Total expenses

21 22 1

23 25

Loss on disposal of property, plant and equipment Impairment loss SURPLUS FOR THE YEAR

8

UBUHLEBEZWE MUNICIPALITY STATEMENT OF CHANGES IN NET ASSETS for the year ended 30 June 2014

Note Opening balance at 01 July 2012 Other adjustments - correction Surplus for the year Balance at 01 July 2013 Other adjustments - correction Surplus for the year

Housing Development Fund R 373 788

373 788 -

Balance at 30 June 2014

373 788

6

Accumulated Surplus R 205 963 622 -17 991 22 195 499 228 141 130 16 423 34 236 103

Total: Net Assets R 206 337 410

262 393 657

262 751 022

22 195 499 228 514 918 34 236 103

UBUHLEBEZWE MUNICIPALITY STATEMENT OF BUDGET COMPARISON For the year ended 30 June 2014 R thousands

Original Budget

Adjusted Budget

Final Adjust Budget

Shifting Viremen Final Budget of Funds t

Actual Outcome

Unautho rised Expendit ure

Viriance

Actual Actual Outcome Outcome as as % of % of Final Original Budget Budget

Reason for Variance

Financial Performance Property rates

12 000

–

12 000

–

–

12 000

12 410

–

(410)

103

103

N/A

Service charges

2 276

588

1 687

–

–

1 687

1 478

–

209

88

65

N/A

Investment revenue

2 400

–

2 400

–

–

2 400

3 793

–

(1 393)

158

158

Investments monitored. High return received

Transfers recognised - operational

64 413

150

64 563

–

–

64 563

63 027

–

1 536

98

98

N/A

Transfers recognised - capital

33 181

5 896

39 077

–

–

39 077

36 037

–

3 040

92

109

N/A

3 035

–

–

3 035

3 234

–

(199)

107

107

Trafic department staff increased Trafic department staff increased

Licences and Permits Fines Rental of Facilities Income for Agency Fees Other own revenue Total Revenue Employee costs

3 035

–

251

120

131

–

–

131

188

–

(57)

143

75

70

165

235

–

–

235

856

–

(621)

364

1 222

650

–

650

–

–

650

666

–

(16)

102

-100

1 863 125 641

– –

– –

1 863 125 641

1 060 122 748

– –

803 2 893

57 1 312

49 1 886

2 142 120 418

(279) 6 640

Arear rental received N/A Revenue anticipated not received Overal variance is 3% on revenue The amount includes salaries that were paid and budgeted fror from grant funding.

33 657

650

34 307

–

–

34 307

34 716

–

(409)

101

103

Remuneration of councillors

6 978

(40)

6 938

–

–

6 938

6 893

–

44

99

99

Depreciation ,asset impairment & loss on disposal

4 000

13 449

16 449

–

–

16 449

12 986

3 463

79

325

Budget for depreciation was based on previous years actual N/A

33 997

701

34 698

–

–

34 698

33 917

781

98

100

Tota Expenditure

Other expenditure

78 632

14 760

92 391

–

–

92 391

88 512

3 879

377

626

Surplus/(Deficit)

41 786

(8 120)

33 250

–

–

33 250

34 236

(34 236)

935

1 260

Capital Expenditure Surplus/(Deficit) after capital transfer & Contribution

38 608 80 394

13 202 5 082

51 810 85 060

– –

– –

51 810 85 060

34 860 69 096

16 950 (17 286)

-834 101

-1 157 103

–

–

–

–

Surplus/(Deficit) for the year Surplus for the year

– 80 394

– 5 082

– 85 060

The budgets were adjusted and approved by council based on the Section 72 report presented to Council on the 23 January 2014,

8

– 85 060

– 69 096

– – –

– (17 286)

-

-

101

103

N/A

MIG projects are at 100% and other expenditure will be completed in the next financial

UBUHLEBEZWE MUNICIPALITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS For the year ended 30 June 2014 1

Property, plant and equipment

Reconciliation of Carrying Value

Buildings

Infrastructure Assets

Community Assets

Work In Progress

Specialised Vehicles

Furniture & Equipment

Computer Equipment

Plant & Equipment

Vehicles

Leases

Other Assets

Total

R

R

R

R

R

R

R

R

R

R

R

R

as at 1 July 2013 Cost/Revaluation Accumulated depreciation and impairment losses Fair Value of Cost not previously recorded Accumulated depreciation not previously accounted for

22 052 114 31 996 473 -9 944 359

46 882 363 165 879 273 -118 996 910

71 346 406 107 319 531 -35 973 125

123 180

10 730

74 400

20 150 229 20 150 229 -

2 720 261 3 213 149 -492 888

1 709 423 3 090 015 -1 380 592

1 646 493 2 337 962 -691 469

1 296 979 2 497 600 -1 200 620

3 417 480 4 667 389 -1 249 909

82 255

1 187 394

-123 502

67 633

-5098.16

-168 656

-36 627

82 365

-170 485

-222 686

22 249 694 32 119 653 -9 869 959

46 960 726 165 890 003 -118 929 277

71 423 563 107 401 786 -35 978 224

20 150 229 20 150 229 -

3 738 999 4 400 543 -661 544

1 549 293 2 966 513 -1 417 220

1 728 858 2 337 962 -609 104

1 126 494 2 497 600 -1 371 105

3 194 794 4 667 389 -1 472 595

100 218

7 128 016

5 500 544

18 632 845

653 260

699 358

245 435

755 782

857 690

6 463 209

3 551 794

-10 015 003

-4 887 263

-4 060 551

763 636 1 490 412 -726 776

116 000 144 000 -28 000

1 280 057 547

-378 607

116 547 144 000 -27 453

173 002 834 344 066 090 -171 063 256

Other adjustment - Fully depreciated assets Restated Carrying Value as at 1 July 2013 Cost Accumulated depreciation and impairment losses

Acquisitions Capital Work in Progress Brought into use Depreciation

-

-1 086 999

-

-377 623

-

-

-

-345 181

-334 678

-281 886

Carrying value of disposals Cost/Revaluation Accumulated depreciation and impairment losses

-

-

-

-

-

-14 898 -32 703 17 805

-146 878 -212 842 65 964

-467 -500 33

Carrying value of write off Cost/Revaluation Accumulated depreciation and impairment losses

-

-

-

-

-

-59 805 -124 490 64 685

-36 751 -55 451 18 701

226 -1 357 1 583

1 828 766 3 508 678 -1 679 912

1 455 986 2 315 103 -859 117

1 600 150 3 251 525 -1 651 375

as at 30 June 2014 Cost Accumulated depreciationand impairment losses

172 101 384 342 786 033 -170 684 649

21 262 913 32 219 871 -10 956 958

55 664 689 179 481 228 -123 816 539

76 415 349 116 454 123 -40 038 775

28 768 072 28 768 072 -

4 014 636 5 053 803 -1 039 166

No assets of the municipality have been ceded. An annual review of useful lives of assets and an impairment test were performed at year end.

-652 772 -

763 636 1 490 412 -726 776

-286 313 -

286 859 -95 250 -

3 399 712 5 525 079 -2 125 367

477 323 1 490 412 -1 013 089

308 156 430 859 -122 703

34 860 007 -12 408 515 -162 243 -246 045 83 802 -36 751 -55 451 18 701 195 195 753 378 498 754 -183 303 001 -

UBUHLEBEZWE MUNICIPALITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS For the year ended 30 June 2013 1

Property, plant and equipment Reconciliation of Carrying Value

Buildings

Infrastructure Assets

Community Assets

Heritage Assets

Work In Progress

Specialised Vehicles

Furniture & Equipment

Computer Equipment

Plant & Equipment

Vehicles

Leases

Other Asset Christmas Lights

Total

R

R

R

R

R

R

R

R

R

R

R

R

R

as at 1 July 2012 Cost/Revaluation Accumulated depreciation and impairment losses

22 392 015 31 206 865 -8 814 850

41 653 626 152 401 920 -110 748 294

64 834 672 89 752 471 -24 917 799

2 849 000 2 849 000 -

24 416 085 24 416 085 -

772 171 1 073 328 -301 158

Fair Value of Cost not previously recorded Accumulated depreciation not previously accounted for Other adjustment - Fully depreciated assets Restated Carrying Value as at 1 July 2012 Cost Accumulated depreciation and impairment losses Acquisitions Capital Work in Progress Brought into use Depreciation

1 932 103 3 033 750 -1 101 647

210 263

191 516

34 826

436 604

436 604

-105 865

-69 389

-23 126

-198 380

-198 380

15 342

7 186

2 141

10 457

1 910 066 3 452 003 -1 541 936

669 143 1 410 726 -741 583

1 345 888 2 546 105 -1 200 216

1 942 560 3 033 750 -1 091 190

-

15 934 269

2 154 138

356 101

1 296 293

161 398

2 014 835

13 853 623

-

-20 200 125

-5 951 267

-

-

64 834 673 89 752 471 -24 917 799

789 608

7 130 851

3 713 437

6 346 502 -7 698 050

2 849 000 2 849 000 -

Carrying value of disposals Cost/Revaluation Accumulated depreciation and impairment losses

-

-

-

-

-

Carrying value of assets written off / reversals Cost Accumulated depreciation

-

-

-

-

-

Impairment loss/Reversal of impairment loss

-

-

-

-550 566

1 332 048 2 511 279 -1 179 231

772 170 1 073 328 -301 158

41 653 626 152 401 920 -110 748 294

-

539 830 1 219 210 -679 380

24 416 085 24 416 085 -

22 392 015 31 206 865 -8 814 850

-1 129 509

1 790 326 3 241 740 -1 451 414

-5 104 060

-206 047 -14 317 14 317

-

-

-

-326 455

-157 316

-27 050 27 050

-1 180 -14 390 13 210

-176 059 -691 038 514 979

-134 004 -354 667 220 663

-54 230

-26 443

-168 105 -

-457 970

1 061 724 1 490 412 -428 688

163 573 600 313 196 061 -149 622 461

35 127 1 061 724 1 490 412 -428 688 -298 088

-

144 000 -28 000

33 694 929 -16 420 807

-360 420 360 420

-

-

-1 180 -401 860 400 680

-40 240 -209 903 169 663

0 -20 775 20 775

-

-

-350 303 -1 290 700 940 397

-1 962

-81 944

-

-

-5 819 205

-

Other Adjustments as at 30 June 2013 Cost Accumulated depreciationand impairment losses

35 127 163 846 951 313 632 665 -149 785 714

22 052 114 31 996 473 -9 944 359

46 882 363 165 879 273 -118 996 910

71 346 406 107 319 531 -35 973 125

2 849 000 2 849 000 -

20 150 229 20 150 229 -

2 720 261 3 241 783 -521 522

No assets of the municipality have been ceded. An annual review of useful lives of assets and an impairment test were performed at year end.

1 709 423 3 090 015 -1 380 592

1 646 493 2 337 962 -691 469

1 296 979 2 497 600 -1 200 620

3 417 480 4 667 389 -1 249 909

763 636 1 490 412 -726 776

116 000 144 000 -28 000

174 950 385 345 635 034 -170 684 649

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

R

2

Investment properties carried at cost Cost - at 30 June 2013 Accumulated Depreciation Acquisitions Depreciation as at 30 June 2014 Cost Accumulated Depreciation

2

2

2

R

17 922 139 134 581 201 871

11 866 000

17 585 687 17 922 139

17 787 558 17 922 139

336 452

134 581

6 056 139 134 581

Investment property pledged as security No investment property is pledged as security

-

-

Rental income from investment property Direct operating expenses from rental generating property

-

-

Details of investment property The investment property consists of land owned by the municipality

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

R

3

R

Intangible Assets Carrying value opening balance Cost Accumulated Amortisation Acquisitions Carrying value closing balance Cost Accumulated Amortisation

440 253 440 253 -

440 253 440 253 -

39 987 480 240

440 253

480 240 -

440 253 -

Cost/Valuation - at 30 June 2013

2 849 000

2 849 000

Closing Balance - at 30 June 2014

2 849 000

2 849 000

Reconciliation of heritage assets 2014 Heritage assest which fair value cannot be reliable measured

2 849 000

Total

2 849 000

The carrying value of intangible assets disclosed relate to computer software of R578001.

4

Heritage Assets

Reconciliation of Heritage Assets 2013

Heritage assest which fair value cannot be reliable measured

2 849 000

Total

2 849 000

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANANCIAL STATEMENTS for the year ended 30 June 2014

5

2014

2013

R

R

HOUSING OPERATING ACCOUNT

Housing Operating Account

373 787

373 787

122 298 251 489

122 298

373 787

373 787

Housing selling scheme loans

122 298

122 298

Less : Provision for Bad Debts

(122 298)

(122 298)

The Housing Operating Account is represented by the following assets and liabilities : Housing selling schemes Cash and cash equivalents.

6

251 489

LONG-TERM RECEIVABLES

Total

-

-

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

7

2013

R

R

TRADE RECEIVABLE FROM EXCHANGE TRANSACTIONS (CONSUMER DEBTORS)

Rates Electricity Self Help Scheme Refuse Sundry Rent VAT Debtors Traffic Fines

Total service debtors Less provision for bad debts Total

13 217 219 7 545 105 661 2 730 349 91 725 306 833 402 593 84 689 16 946 614

10 156 964 7 574 119 401 2 675 779 72 485 327 068 422 193 13 781 464

16 946 614 -11 089 145

13 781 464 -9 200 416

5 857 469.00

4 581 048

Rates: Ageing Current (0 – 30 days) 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days. Total

-427 684 539 875 511 056 482 906 12 111 066

-48 240 662 491 576 377 539 104 8 427 232

13 217 219

10 156 964

Electricity:Ageing. Current (0 – 30 days) 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days. Total

7 546

7 574

7 546

7 574

105 661

119 401

105 661

119 401

23 057 2 692 1 827 4 787 274 470

25 004 5 243 915 722 295 184

306 833

327 068

-6 242 94 830 80 540 77 262 2 483 960

160 004 86 610 78 673 75 550 2 274 942

2 730 349

2 675 779

2 497 2 946 2 794 2 744 80 744

72 485

91 725

72 485

Self Help Scheme: Ageing. 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days. Total Rent: Ageing. Current (0 – 30 days) 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days. Total Refuse: Ageing. Current (0 – 30 days) 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days. Total 7.1

2014

(TRADE RECEIVABLE FROM EXCHANGE TRANSACTIONS -(CONSUMER DEBTORS) continued

Sundry: Ageing. Current (0 – 30 days) 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days. Total

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

Vat Debtors Current (0 – 30 days) 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days. Total

2014

2013

R

R

2 354 13 653 11 531 11 487 363 568

14 668 11 281 9 776 9 369 377 099

402 593

422 193

648 100 -102 158 -461 253 84 689

-

-1 223 934 -1 223 934

-527 004 -527 004

5 527.03

56 566 53 086 53 177 3 353 688 3 522 043

8 633 40 616 39 898 38 990 219 019 347 156

Balance at beginning of the year Consumer Debtors Other Debtors (note 7.)

-9 200 416 -8 726 123 -474 293

-8 274 666 -8 152 368 -122 298

( Release from ) Contribution to provision Consumer Debtors Vat Debtors

-2 369 408 -2 369 408 -

-1 048 048 -573 755 -474 293

474 293

-

-11 095 531 -11 095 531

-8 726 123

Sundry Debtors Other debtors Total Other Debtors

1 179 793 583 1 180 376

1 904 983 1 904 983

VAT RECEIVABLE VAT receivable

5 133 487

4 298 260

Traffic Fines Debtors Debtors for the year Receipts for the year Portion estimated as non-collectible Debtors recognised at year end The above debtors are recognised as a result of a change in accounting policy and implementation of IGRAP 1 effective from April 2013. Add back credits included above: Ageing Current (0 – 30 days) 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days Total Included in the consumer debtors balances are the amounts owed by other spheres of Government: Other spheres of Government: Ageing Current (0 – 30 days) 31 - 60 Days 61 - 90 Days 91 - 120 Days Greater than 120 days Total 7.2

Reconciliation of the doubtful debt provision

Bad Debts written of against provision. Consumer Debtors Vat Debtors Vat Debtors and other debtors Balance at end of year.

8

9

-474 293 -9 200 416

OTHER RECEIVABLES (TRADE RECEIVABLE FROM NON-EXCHANGE TRANSACTIONS)

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

5 133 487

4 298 260

5 249 1 928 353

4 249 3 480 856

64 099 551 66 033 153

54 273 151 57 758 256

VAT is payable on the receipts basis. VAT is paid over to SARS only once payment is received from debtors. 10

CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of: Cash on hand Bank Balances Short-term deposits

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

The municipality had the following bank accounts Current Account (Primary Bank Account) First National Bank Limited - Ixopo Branch: Account Number 52552416194 Cash book balance at beginning of year

3 480 856

709 097

Cash book balance at end of the financial period

1 933 602

3 480 856

3 483 276

709 097

1 448 149

3 483 276

Bank statement balance at beginning of year Bank statement balance at end of the financial period Investment Bank account First National Bank - Ixopo Branch Account Number 62143895988 Short Term Investment Account

Bank statement balance at the beginning of the year Bank statement balance at the end of the year

1 281 553

2 164 854

2 455 109

1 281 553

618 502 633 047

605 010 618 502

4 192 999

2 373 965 -

10 406 787

4 040 230 -

4 563 609 -

4 336 030 4 563 609

Investment Bank account First National Bank - Ixopo Branch Account Number 62248166218 Sangcwaba Short Term Investment Account Bank statement balance at the beginning of the year Bank statement balance at the end of the year

Investment Bank account First National Bank - Ixopo Branch Account Number 7 Day Call Short Term Investment Account Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Nedbank - Ixopo Branch Account Number 7881076763/001 Fixed Deposit 1 month

Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Nedbank - Ixopo Branch Account Number 7881076763/000047 Fixed Deposit 3 months

Bank statement balance at the beginning of the year Bank statement balance at the end of the year

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

Investment Bank account Nedbank - Ixopo Branch Account Number 03/ 7881076763/002 Fixed Deposit 3 months

Bank statement balance at the beginning of the year Bank statement balance at the end of the year

5 064 274 5 314 469

5 064 274

3 602 349 3 790 022

6 338 206 3 602 349

5 088 391 5 366 354

5 088 391

5 196 770 -

5 196 770

5 203 019 -

5 203 019

2 804 016 2 950 382

2 660 960 2 804 016

10 143 972

5 061 095 -

5 202 039

3 677 393 -

5 069 737

3 082 221

Investment Bank account Nedbank - Ixopo Branch Account Number 7881076763/018

Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Standard Bank Account - Ixopo Branch Account Number 90 Days Equitable Share

Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Standard Bank Account - Ixopo Branch Account Number 90 Days Equitable Share - 068730276 - 005

Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Standard Bank Account - Ixopo Branch Account Number- MIG 068730276-007

Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Standard Bank Account - Ixopo Branch Account Number 068730276-004

Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Standard Bank Account - Ixopo Branch Account Number 068730276-005 Short Term Investment Account

Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Roads Grant Standard Bank Account - Ixopo Branch Account Number 068730276-006 Fixed Deposit 3 months Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Ithala - Ixopo Branch Account Number

Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Ithala - Ixopo Branch

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

Account Number 46125086

Bank statement balance at the beginning of the year Bank statement balance at the end of the year

3 082 221 3 239 466

3 082 221

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

Investment Bank account Absa - Ixopo Branch Account Number 20 - 7042-5909 Bank statement balance at the beginning of the year Bank statement balance at the end of the year

3 445 068 -

3 299 470 3 445 068

4 154 023 -

4 154 023

-

3 547 466 -

5 043 160 5 335 168

5 043 160

5 126 197 -

5 126 197

405 985

383 542

Investment Bank account Absa - Ixopo Branch Account Number 40553523279/001 Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Absa - Ixopo Branch Account Number 2070490455 Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Absa - Ixopo Branch Account Number-ABSA: 60 Days Small Town Rehab. Bank statement balance at the beginning of the year Bank statement balance at the end of the year Investment Bank account Absa - Ixopo Branch Account Number-ABSA: 3 Months: Small Town Rehab. Bank statement balance at the beginning of the year Bank statement balance at the end of the year 11

FINANCE LEASE OBLIGATION Minimum lease payments due Within one year in 2 to 5 years inclusive

454 040

762 529

860 025

1 146 071

405 985

383 542

Present value minimum lease payments due Within one year in 2 to five years inclusive

454 040

762 529

860 025

1 146 071

Finance lease payments represent payments payable by the municipality for photocopiers and printers. No finance lease period is more than five years. All finance leases have signed contracts with the service providers.

12

TRADE AND OTHER PAYABLES FROM EXCHANGE TRANSACTIONS Trade payables Deposits Other Payments received in advance Staff leave accrual Retentions Payroll Suspense Other creditors Total creditors

8 840 561 194 723 608 953 1 172 750 2 514 327 204 562

4 907 290 154 129 527 004 1 812 189 1 393 005 16 963 2 927 065

13 535 876

11 737 645

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

Leave provision is calculated on leave due up to 48 days (Over and above 48 days is not provided for in terms of the Bargaining Council agreement )

2014

2013

R

R

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

13

2014

2013

R

R

UNSPENT CONDITIONAL GRANTS AND SUBSIDIES Unspent Conditional Grants from other spheres of Government Capital Investment Program Financial Management Grant G I S Grant Hawkers/Taxi Grant H R Systems Governance Ixopo Sportsfields and Maintenance Small Town Rehabilitation Kuyasa School Grant Land Use Management Library Assistant Library Building Grant M I G Grant Management Assistance Marithal Project Market Stalls Municipal Development Planning Capacity Building Municipal Administrative Development LED Programmes Thusong Centre Ixopo Sportsfields Maintenance Extended public Works Programme - Incentive Grant Project Consolidate (MSIG) Project Management Unit Sangcwaba Grant Waste Disposal Site Total Add back grants with a credit balance disclosed under sundry debtors Total Unspent Conditional Grants and Subsidies

9 700

9 700

-0

34 048

2 659 1 033 341 390 656 496 8 791 803 -0 220 238

8 466 1 033 341 7 170 -144 366 5 824 434 4 302 220 238

47 718

-134 945 -117 956

-0 350 877 -0 1 -0

5 895 983 4 632 8 197 350 877 24 973 9 000 308 582 387 000 143 930 411 505 34 513

163 377 623 220

163 377 673 950

-0 11 899 819 -

118 121 15 279 072 -397 267

11 899 819

15 676 339

1 478 348 855 697 3 792 522 3 234 340 1 186 342 12 409 933 539 317 99 063 980 187 605 122 748 084

1 271 952 207 611 2 863 809 3 143 865 1 136 054 8 291 631 1 458 441 82 348 978 146 915 100 869 256

1 478 348 855 697 3 792 522 3 234 340 1 186 342 10 547 249

1 271 952 207 611 2 863 809 3 143 865 1 136 054 8 623 291

12 409 933 539 317

8 291 631 -

99 063 980

1 458 441 82 348 978

See Note 18 for reconciliation of grants and receipts. 14 Revenue Service Charges Rental of facilities Interet received Licences and permits Miscellaneous other revenue Property rates Penalties imposed Adjustments to Small Town Rehabilitation Government grants and subsidies Fines

14.1 The amounts included in revenue arising from exchange of goods and services are as follows Service charges Rental of facilities and equipment Interest received (trading) Licence and permits Miscellaneous other revenue

14.2 The amount included in revenue arising from non-exchange transactions is a follows: Taxation revenue Property rates Penalties imposed Transfer revenue Adjustments to Small Town Rehabilitation Government grants and subsidies

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

Fines Donations 15

2014

2013

R

R

187 605 112 200 835

146 915 6 056 139 98 302 104

Property rates Less Revenue Forgone Total property rates Property rates - penalties imposed and collection charges Total

19 000 161 -6 590 228 12 409 933 539 317 12 949 250

13 340 200 -5 048 569 8 291 631 8 291 631

Adjustments Total

12 949 250

8 291 631

229 855 000 268 779 000 240 376 000 22 050 000 19 564 000 1 815 200 000 4 839 000 2 525 000 2 578 000 6 547 000 24 360 000 28 957 000 12 245 000

181 605 375 149 970 000 335 161 925 22 008 640 55 505 345 711 270 000 83 749 690

2 677 875 000

1 539 270 975

PROPERTY RATES

Valuations Residential Commercial State Industrial Municipal Agricultural Donation: Sport & Welfare Farms- Residential Smallholdings- Agriculture Public service Infrastructure Smallholdings- Commercial Ingonyama Trust Vacant land Communal Settlement Total Property Valuations Valuations on land and buildings are performed every five years. The current general valuation came into effect on 1 July 2013. Interim valuations are processed on an annual basis to take into account changes in individual property values due to payable by the end of April. alterations.

Rates are levied in ten monthly equal instalments with the first instalment being due at the end of August and the last instalment is in May due at the end of June.

- Residential - State owned - Agriculture - Infrastructure - Communal land - Commercial - Industrial - Place of worship The municipality does not levy rates on the first R15 000 of the market value of properties assigned to the categories below: Residential; Agriculture; Smallholding (Agriculture); Commercial; Industrial; and Communal land. The Municipality does not levy rates on the first 30% of the market value of Public service infrastructure and State owned properties. 16

SERVICE CHARGES

0.0141c/R 0.0145c/R 0.0035c/R 0.0035c/R 0.0035c/R 0.0145c/R 0.0152c/R Exempt

0.0134c/R 0.0138c/R 0.0033c/R 0.0033c/R 0.0033c/R 0.0138c/R 0.0145c/R Exempt

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

Refuse removal Total Service Charges

2014

2013

R

R

1 478 348

1 271 952

1 478 348

1 271 952

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

17

19

19.1

2013

R

R

RENTAL OF FACILITIES AND EQUIPMENT Rental of facilities Rental of equipment Other rentals Total rentals

18

2014

855 697 855 697

207 611 207 611

3 499 083 293 440 3 792 522

2 647 192 216 617 2 863 809

Equitable share Financial Management Grant Geographical Information Systems Grant Small Town Rehabilitation Ixopo Sportsfields Grant Library Cyber Grant Kuyasa School Library Assistant Grant Mariathal Project Municipal Admin Development Sangcwaba Grant Municipal Infrastructure Grant Management Assistance Grant Municipal Development Planning Capacity Building Project Consolidate (Municipal Systems Information Grant) EPWP LED Programes Thusong Centre Ixopo Sportsfields and maintenance Waste Disposal Site Grant

56 315 505 1 684 048 5 807 8 102 770 519 326 4 302

50 309 000 1 784 901 8 675 566 910 819 576 396

8 197 9 000 50 730

140 653

27 933 983 4 632 24 973 1 023 513 1 000 000 1 808 582 387 173 63 318 118 121

16 982 408 1 170 253 588 495 1 191 418 13 000 6 069 -

Total Grants and Receipts

99 063 980

82 348 978

57 039 000 723 495

50 309 000 -

INTEREST EARNED - ON SHORT TERM DEPOSITS Call Interest Bank Current Account Total interest

GOVERNMENT GRANTS AND RECEIPTS

Equitable Share Balance unspent at beginning of year Current allocation Amount withheld Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

56 315 505

50 309 000

-56 315 505 -

-50 309 000 -

9 700 -

9 700 -

9 700

9 700

In terms of the Constitution, this grant is used to subsidise the provision of basic services to indigent community members.

19.2

Capital Investment Programme Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

19.3

Financial Management Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue

34 048

318 949

1 650 000

1 500 000

-1 684 048

-1 784 901

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

Conditions still to be met - remain liabilities (see note 13)

2014

2013

R

R

-0

34 048

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

19.4

-5 807 2 659

8 466

1 033 341 -

1 033 341 -

1 033 341

1 033 341

7 170

7 170

-

-

-6 780

-

390

7 170

5 824 434

1 458 441 -1 458 441

11 143 000 -8 175 631 8 791 803

14 500 000

4 302 -4 302

4 302 -

-0

4 302

220 238 -

220 238 -

220 238

220 238

-134 945

5 708

-8 675 566 5 824 434

Kuyasa School Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

19.9

8 466 -

Internal Roads / Small Town Rehabilitation Grant Balance unspent at beginning of year Adjustments Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

19.8

8 466 -

HR Systems Governance Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

19.7

R

Hawkers/Taxi Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

19.6

2013

R

Geographical Information Systems Grant Balance unspent at beginning of year Current year receipts (GIS grants consolodated transfereed from GIS 07/06) Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

19.5

2014

Land Use Management Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

19.10 Library Assistant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

120 000

-

14 945 -

-140 653 -134 945

-117 956 685 000 -519 326

213 440 245 000 -180 000 -396 396

47 718

-117 956

19.11 Library Building Grant Balance unspent at beginning of year Current year receipts Adjustment to be paid by DoA Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13) 19.12 Municipal Iinfrastructure Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

5 895 983

1 747 077

22 038 000

21 118 000

-27 933 983 -0

-16 969 094 5 895 983

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

19.13 Management Assistance Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

4 632 -4 632 -

4 632 4 632

8 197 -8 197

8 197 -

-

8 197

350 877

350 877

-

-

19.14 MarIthal Project Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13) 19.15 Market Stalls Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

-

-

350 877

350 877

19.16 LED Programme Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

308 582

-

1 500 000 -1 808 582 -

1 500 000 -1 191 418 308 582

24 973

24 973

-24 973

-

-0

24 973

9 000

9 000

-9 000

-

-

9 000

-573 880

-573 880

573 880 -

-573 880

-8 558 -

-8 558 -

8 558 -

-8 558

387 000

400 000

-386 999 1

-13 000 387 000

19.17 Mun Development Planning Capacity Building Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13) 19.18 Municipal administrative Development Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13) 19.19 Mziki LCH Balance unspent at beginning of year Current year receipts Written-off - 31 Dec. 2013 Conditions still to be met - remain liabilities (see note 13) 19.2

Nokweja Disaster Fund Balance unspent at beginning of year Current year receipts Written-off - 31 Dec. 2013 Balance owing transferred to debtors ( Refer to note 8)

19.21 Thusong Service Centre Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

19.22 Project Consolidate (Municipal Systems Information Grant) Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

34 513 890 000

404 766 800 000

-924 513 -0

-1 170 253 34 513

19.23 Project Management unit Balance unspent at beginning of year Adjustments Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

163 377 163 377

163 377 163 377

19.24 Sangcwaba Grant Balance unspent at beginning of year Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

673 950 -50 730

673 950 -

623 220

673 950

19.25 Waste Disposal Site Balance unspent at beginning of year Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

118 121

118 121

-118 121 -0

118 121

143 931 570 000 -144 366 144 366

346 453 -346 453 570 000

-57 435 656 496

-570 000 -

411 505 -411 505 1 000 000

1 000 000

-1 000 000 -

-588 495 411 505

287 889 665 515 31 025 63 890 134 3 037 25 172 27 079 85 550

168 675 609 086 37 764 12 871 501 7 591 200 409 21 142 86 215

5 950 1 195 242

1 144 254

19.26 Ixopo Sportsfield Balance unspent at beginning of year Adjustments Current year receipts Disclosed as a debtor in 2013 Written Off in the current year Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13)

-

19.27 EPWP Grant Balance unspent at beginning of year Adjustments - Witheld and transferred to Equitable Share Current year receipts Conditions met - transferred to revenue Conditions still to be met - remain liabilities (see note 13) 20

OTHER INCOME

Included in other income are the following:Sundry income Licence commission Burial fees Building fees Lost books Library photostats Sale of assets Admin fees Basic Charge- Fire Services Skills development Donations received Rates Clearance

-

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

21

2014

2013

R

R

EMPLOYEE RELATED COSTS Employee related costs - Salaries and Wages Employee related costs - Contributions for UIF, pensions and medical aids Travel, motor car, accommodation, subsistence and other allowances Housing benefits and allowances Overtime payments 13th Cheques Other employee related costs Total Employee Related Costs

24 817 487 5 389 609 1 626 472 10 644 726 232 451 773 1 694 050 34 716 267

20 352 514 4 212 003 1 072 781 16 698 593 546 1 151 220 27 398 762

There were no advances to employees. Remuneration of the Municipal Manager Annual Remuneration Performance- and other bonuses Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical and Pension Funds Total

781 104

733 878

141 645 169 407 110 992 1 203 148

144 658 102 105 980 641

Remuneration of the Chief Financial Officer Annual Remuneration Performance- and other bonuses Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical ,Pension Funds and Skills levy

600 000 108 843

507 173

233 356 10 711

108 878 7 418

Total

952 910

623 469

Acting Chief Finance Officer Annual Remuneration Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical ,Pension Funds and Skills levy

-

137 569 1 700 1 654

Total

-

140 923

-

242 547 70 667 3 538

Annual Remuneration Performance- and other bonuses Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical and Pension Funds

697 500 67 095 56 178 9 891

338 800

Total The Director infrastructure resigned in December 2012, subsequently a new director was appointed in January 2013.

830 664

353 765

625 500 67 095 145 574 9 956

631 667

-

The Chief Financial Officer was appointed in September 2012.

The remuneration for the Acting Chief Finance Officer is for two months only in 2012/13. Remuneration of Individual Executive Directors: Technical Services Annual Remuneration Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical and Pension Funds Total The Director infrastructure resigned in December 2012, subsequently a new director was appointed in January 2013.

316 751

Technical Services

10 804 4 161

Corporate Services Annual Remuneration Performance- and other bonuses Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical and Pension Funds

69 848 8 664

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

Total

848 125

710 179

558 500 67 095 212 021 9 851 847 467

426 340

The remuneration for the Director: Corporate Services post is for the full financial year. Social Development Annual Remuneration Performance- and other bonuses Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical and Pension Funds Total The Community Services Director was appointed in September 2012. The remuneration was for 10 months only in 2012/2013. 22

REMUNERATION OF COUNCILLORS Mayor Deputy Mayor Speaker Exco Members Councillor skills levy Councillors' allowances Cellular Allowance Councillors' data cards Total Councillors’ Remuneration

160 943 7 056 594 339

491 390

464 508

334 145 216 212 486 091 57 120

319 674 206 908 399 296 50 768

5 260 039 91 052 14 400

4 298 417 314 074 85 500

6 893 329

6 139 144

636 675 1 715 723 604 635 343 784 1 104 662

2 835 340 1 213 734 477 613 601 201 371 134

4 405 479

5 499 022

-

-

In-kind Benefits The Mayor and two of the Executive Committee members are full-time. Each is provided with an office and shared secretarial support at the cost of the Council. The Mayor and the Deputy Mayor has use of the Council owned vehicle. A municipal driver is allocated to the Mayor for official duties as indicated in the Municipal Vehicle Usage Policy. 23

CONTRACTED SERVICES Contracted services for: Consultancy Fees Security Insurance Rental of Hardware Stationery other

24

GRANTS AND SUBSIDIES PAID

Thewell figures for the prior year were reclassified General Expenseswas andtoemployee related costs as as Contracted Services. The reason fortothe reclassification reallocate expenditure for more transparency in the reporting process. The total amount re-classified was R5 862 667.

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

25

2014

2013

R

R

GENERAL EXPENSES

Included in general expenses are the following:Advertisements Arts and Culture

425 299 342 847

361 410 301 611

5 395 6 016

8 474 187 088

Audit-External Bank Charges

1 362 476 112 249

1 301 291 91 651

Breakdown Services HIV/Aids awareness Marketing & Tourism Stores and mainenance

-2 142 611 312 401 15 815 25 717 94 349 46 580 305 593 469 394 297 806 229 826 1 425 836 70 111 1 114 651 24 561 1 284 070

2 994 66 873 272 069 3 478 11 502 64 309 17 525 330 368 915 386 911 860 193 215 587 955 67 241 860 187 46 400 996 790

Pest Control Water

Chemicals, Cleaning & First Aid Cleaning Office Community Awareness Compensation Commissioner Computer & IT Support Plan development Electricity Employment Creation Entertainment Free Basic Electricity.

Freight Costs/Hire Costs Fuel & Oil Gender Development Bursary Youth

IDP Budget Review Employees Assistance Programme LED Projects Legal Fees Licences & Permits Moral Regeneration

Occupational Safety/Protective clothing Disaster Management, back to school and corporate branding

Postage Printing & Stationery Public Paticipation SMME Capacity Building

Traffic Levy Refuse Expenses Land Disposal Policy Reimburive Travel S & T Accommodation. Arts Promotions Cllrs Skills Levy Software Licence Fees Special Programmes Sports & Recreation

Strategic Plan. Subs Membership & Publication. Sundry. Training Valuation Roll. Ward Committee ID Campaign Youth Upliftment 26

188 510

75 719

313 800 97 272 48 189 2 874 046 839 973 69 287 20 020 271 156 178 977 80 691 672 983 643 672 115 953 8 903 325 639 157 520 296 455 862 253 171 685

306 900 15 850 2 121 362 928 599 24 898 10 763 216 910 223 856 78 297 602 163 249 663 64 370 5 726 468 891 269 019 769 019 -

-

-

283 389 378 115 479 075 608 526 483 194 20 244 1 559 762 610 943 710 081 26 070 303 830 21 813 814

54 169 292 563 463 044 483 610 450 199 13 562 1 624 117 806 871 658 005 299 155 19 176 977

34 236 103 -3 792 522 -

22 195 499 -2 863 809 -

CASH GENERATED BY OPERATIONS Surplus/(deficit) for the year Adjustment for:Interest earned Interest expense

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

Depreciation and amortisation Impairment of property, plant and equipment Increase in provisions - bad debts Increase in contribution to post retirement benefits Sundry Working Capital Movements (Increase)in trade receivables from exchange transactions. (Increase) /Decrease in trade receivables from non-exchange transactions. (Decrease)/Increase in VAT receivable Increase /(Decrease) in trade payables Increase /(Decrease) in Unspent Grants (Decrease)/Increase in current portion of lease liability Cash generated by operations

27

2014

2013

R

R

12 610 386 2 951 451 843 930 -1 276 421 -661 243 835 227 -1 798 231 -3 776 520 -405 985 39 766 175

16 923 695 5 819 205 1 620 072 -185 070 -806 967 -943 157 292 760 6 204 009 8 545 159 -791 577 56 009 819

CORRECTION OF ERROR The comparatives for 2012/2013 have been restated in respect of the following errors:

27.1

Investment Property Balance previously reported Fair Value Cost not recorded previously Accumulated Depreciation not previously accounted for Current year depreciation Restated balance at 30 June 2013

27.2

11 866 000 6 056 139 -134 581 -201 871 17 585 687

Donations received Balance previously reported Donations not previously recorded Restated balance at 30 June 2013

6 056 139 6 056 139

27.3 Infrastructure Assets Balance previously reported Cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013 27.4

Buildings Balance previously reported cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013

27.5

22 052 114 123 180 74 400 22 249 694

Community Assets Balance previously reported cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013

27.6

46 882 363 10 730 67 633 46 960 726

71 346 406 82 255 -5 098 71 423 563

Specialise Vehicles Balance previously reported cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013

2 720 261 1 187 394 -169 607 3 738 048

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

27.7

R

1 709 423 -123 502 -36 627 1 549 294

Computer Equipment Balance previously reported cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013

27.9

2013

R

Furniture and Equipment Balance previously reported cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013

27.8

2014

1 646 493 82 365 1 728 858

Plant and Equipment Balance previously reported cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013

1 296 979 -170 485 1 126 494

27.10 Vehicles Balance previously reported cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013

3 417 480 -222 686 3 194 794

27.11 Other Assets Balance previously reported cost not previously capitalised Accumulated Depreciation not previously accounted for Restated balance at 30 June 2013

116 000 547 116 547

27.12 Employee Related Costs Balance previously reported Adjustments to PAYE Restated balance at 30 June 2013

25 159 752 76 809 25 236 561

27.13 General Expenses Balance previously reported Adjustments to electricity expenditure Restated balance at 30 June 2013

18 137 932 -40 320 18 097 612

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

28

2014

2013

R

R

FRUITLESS AND WASTEFUL EXPENDITURE There was no fruitless and wasteful expenditure incurred as at 30 June 2014

29 29.1

IRREGULAR EXPENDITURE AND DEVIATIONS IRREGULAR EXPENDITURE Reconciliation of irregular expenditure: Opening balance Section 36 - condoned or written off by Council Irregular Section 36 - condoned or written off by Council Closing balance

229 916 229 916

6 868 555 -6 868 555

309 800

-

462 000 462 000 -

450 000 -450 000 -

1 362 476 -1 362 476 -

1 301 291 -1 301 291 -

279 260 -279 260 -

The above irregular expenditure of R229 916 was as a result of cost estimate threshold which was set during the evaluation process. 29.2

DEVIATIONS

Accomodation

The above deviations were due to the nature as well as urgency of the procurement wherein three quotations were not acquired as there was limited accomodation available.

30 30.1

ADDITIONAL DISCLOSURES IN TERMS OF MUNICIPAL FINANCE MANAGEMENT ACT Contributions to organised local government Opening balance Council subscriptions Amount paid - current Amount paid - previous years Balance unpaid (included in payables)

30.2

Audit fees Opening balance Current year audit fee Amount paid - current year Amount paid - previous years Balance unpaid (included in payables)

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

30.3

2014

2013

R

R

VAT Vat received for the year VAT paid for the year

-3 860 770 -

-5 706 493 -

-3 860 770

-5 706 493

5 312 549 -5 312 549

4 381 819 -4 381 819

-

-

Vat input receivable and VAT output payable are shown in note 8. 30.4

PAYE, UIF and Skills Opening balance Current year payroll deductions Amount paid - current year Amount paid - previous years Balance unpaid (included in payables)

30.5

Pension and Medical Aid Deductions Opening balance Current year payroll deductions and Council Contributions Amount paid - current year Amount paid - previous years Balance unpaid (included in payables)

30.6

-

-

8 682 924 -8 682 924

3 877 010 -3 877 010

-

-

Councillor D Ram ( Acc No 104881 )

-

2 401

Total Councillor Arrear Consumer Accounts

-

2 401

Total commitments

60 054 117

54 133 944

- Contract costs to complete Infrastructure Community Other

20 033 814 10 839 361 6 202 483 2 991 970

15 525 944 4 787 531 4 434 860 6 303 553

- Approved but not yet contracted for Infrastructure Community Other

40 020 303 20 373 382 4 779 921 14 867 000

38 608 000 24 344 094 8 986 905 5 277 001

Total

60 054 117

54 133 944

Councillor’s arrear consumer accounts There were no councillors with arrear debt more than 90 days. The credit control and debt collection policy allows for an automatic deduction on salaries; of arrears for councillors owing services and rates for more than 90 days. as at 30 June 2014

31 31.1

CAPITAL COMMITMENTS Commitments in respect of capital expenditure

This expenditure will be financed from: - External Loans - Government Grants - Own resources

-

-

50 107 046 9 947 071 60 054 117

48 706 944 5 427 000 54 133 944

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

32 32.1

2014

2013

R

R

RETIREMENT BENEFIT INFORMATION Retirement benefits

The Municipality’s personnel are members of one of the Natal Joint Municipal Pension retirement funds, namely the Superannuation, Retirement and Provident Funds. As the aforementioned funds are multi-employer funds, the allocation of any surplus/deficit to individual municipalities cannot be determined. Furthermore disclosure of further details such as actuarial assumptions, cannot be attributed to any specific municipality and is of no relevance to users of the municipality’s financial statements. As the required disclosure information cannot be obtained the funds are all treated as defined contribution plans. 32.2 Post-employment medical benefits The municipality operates on 3 accredited medical aid schemes, namely Bonitas, Keyhealth, and Samwumed. Pensioners continue on the option they belonged to on the day of their retirement. Independent valuers, Zaqen Actuaries (Pty) Ltd, carried out a statutory valuation as at 30 June 2014. The post-retirement medical obligations at 30 June 2014 quantified the present value of unfunded obligations at R3, 705,000. The Current-service costs for the year ending 30 June 2014 is estimated at R276 000. The principal actuarial assumptions used included a discount rate of 9.08% , and a health care cost inflation rate of 8.12 % . The movement in the liability recognised in the balance sheet is as follows: The principal actuarial assumptions used were as follows: Balance at beginning of the year Current service cost Interest cost Benefit payments Actuarial (gains)/losses Expected Employer Benefit Payments Closing Accrued Liability

3 305 000 305 000 235 000 -103 000 -37 000

3 645 000 207 100 275 800 -110 000

3 705 000

3 305 000

305 000 235 000 -37 000 503 000 -103 000 400 000

207 100 275 800 -712 900 -230 000 -110 000 -340 000

305 000 235 000 -103 000 -37 000 400 000

207 100 275 800 -110 000 -712 900 -340 000

-712 900

32.3 The amounts recognised in the Statement of Financial Position were as follows: Current service cost Interest cost Actuarial (gains)/losses Benefit payments Transitional Liability

The amounts recognised in the Statement of Financial Performance were as follows: Current service cost Interest cost Benefit payments Actuarial (gains)/losses

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014

Key Assumptions Discount rate per annum Health care cost inflation rate Net effective discount rate Benchmark inflation (equal to salary inflation) Average retirement age Proportion continuing membership at retirement Proportion of retiring members who are married Mortality during employment Mortality post-retirement (No explicit assumption was made about additional mortality or health care costs due to AIDS). Percentage of in-service members withdrawing before retirement: Age 20 - 29 Age 30 - 39 Age 40 - 49 Age 50 - 54 Age 55+ The amounts recognised in the Statement of Financial Position

32.4

2014

2013

R

R

9.08% 8.12% 0.89% 0% 63 100% 90% SA 85-90 ultimate PA90-1 ultimate

6.75% 4.50% 0.64% 0% 63 100% 90% SA 85-90 ultimate PA90-1 ultimate

30% 22% 10% 2% 0%

40% 25% 12% 4% 0%

3 705 000

3 305 000

Long Service Awards. Independent valuers, Zaqen Actuaries (Pty) Ltd, carried out a statutory valuation as at 30 June 2014. The principal actuarial assumptions used were as follows: Discount rate per annum General Salary Inflation (Long term) Net effective discount rate Examples of mortality rates used were as follows: Average retirement age Mortality during employment Members withdrawn from services: Age 20 - 29 Age 30 - 39 Age 40 - 49 Age 50 - 54 Age 55+

32.5

8% 8% 1%

7% 6% 1%

63

63

SA85-90

SA85-90

30% 22% 10% 2% 0%

40% 25% 12% 4% 0%

The amounts recognised in the Statement of Financial Position were determined as follows: Present value of funded obligations Fair value of plan assets Liability in the Statement of Financial Position Movements in the defined benefit obligation is as follows: Balance at beginning of the year Current service cost Interest cost Benefit payments Actuarial (gains)/losses Balance at end of year

1 547 000 1 547 000

917 982 917 982

918 000 183 000 66 000 -67 000 447 000

763 379 154 554 49 926 -63 000 13 123

1 547 000

917 982

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

The amounts recognised in the Statement of Financial Performance were as follows: Current service cost Interest cost Benefit payments Actuarial (gains)/losses

183 000 66 000 -67 000 447 000

154 554 49 926 -63 000 13 123

Total, included in employee benefits expense

629 000

154 603

3 705 000 1 547 000 5 252 000

3 305 000 917 982 4 222 982

400 000 629 000 1 029 000 1 029 000

-340 000 154 603 -185 397 -185 397

-

-

In conclusion the retirement benefits were: Statement of Financial Position obligation for: Post-employment medical benefits Long Services Award.

Statement of Financial performance obligation for: Post-employment medical benefits loss Long Service Award loss Additional retirement costs.

Long service award gain

33 33.1

34

CONTINGENT LIABILITY Possible claims and Litigation against the municipality by former employees

-

700 000

-

700 000

-

-

CONTINGENT ASSET No contingent assets were identfied for the year ended 30 June 2014.

35

MATERIAL LOSSES INCURRED

Amount Paid as a result of theft of municipal funds

There was an incident wherein municipal funds including the Dpt of Transport's revenue were stolen. The case was reported to the SAPS and investigation is still ongoing.

35

EVENTS AFTER THE REPORTING DATE No events after the reporting date were identfied for the year ended 30 June 2014.

36

KEY SOURCES OF ESTIMATION UNCERTAINTY AND JUDGEMENTS

37

The following areas involve a significant degree of estimation uncertainty: - Useful lives and residual values of property, plant, and equipment - Recoverable amounts of property, plant and equipment - Present value of defined benefit obligation - Provision for doubtful debts FINANCIAL RISK MANAGEMENT Financial Risk Management Objectives

76 491

-

76 491

-

UBUHLEBEZWE MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2014 2014

2013

R

R

Due to the largely non-trading nature of the activities and the way in which they are financed, municipalities are not exposed to the degree of financial risk faced by business entities. The municipality’s finance function monitors and manages the financial risks relating to the operations of the municipality. These risks include credit risk, liquidity risk, market risk relating to interest rate risk. 37.1

Maximum credit risk exposure Credit risk consists mainly of cash deposits, cash equivalents and trade debtors. The municipality only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party. Except as detailed below, the carrying amount of financial assets recorded in the Annual Financial Statements, which is net of impairment losses, represents the municipality’s maximum exposure to credit risk without taking account of the value of any collateral obtained: The maximum credit risk exposure in respect of the relevant financial instruments is as follows: Cash and Cash Equivalents Trade and other receivables Maximum Credit Exposure

38 38.1

71 890 622

62 339 304

13 535 876 860 025

11 741 493 1 146 071

14 395 901

12 887 564

Liquidity risk The municipality’s risk to liquidity is a result of the funds available to cover future commitments. The municipality manages liquidity risk through an ongoing review of future commitments and credit facilities. Unspent Grants are cash backed. Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored. The table below analyses the municipality’s financial liabilities into amounts due within the 12 months after financial year end. The amounts disclosed in the table are the contractual undiscounted cash flows.

Interest rate risk As the municipality has no significant interest-bearing assets, the municipality’s income and operating cash flows are substantially independent of changes in market interest rates. At year end, financial instruments exposed to interest rate risk were as follows: Bank Balances and Cash Maximum Interest Exposure

38.3

57 758 256 4 581 048

FINANCIAL RISK MANAGEMENT continued

Trade and other payables Other: Lease obligations Maximum Liquidity Exposure 38.2

66 033 153 5 857 469

Other price risk Due to legislative restrictions, the municipality does not trade these investments.

66 033 153

57 758 256

66 033 153

57 758 256

UNAUDITED SUPPLIMENTARY SCHEDULE ANALYSIS OF PROPERTY PLANT AND EQUIPMENT Cost / Revaluation

As at 30 June 2014

Buildings Infrastructure Assets Community Assets Heritage Assets Work in Progress Specialised Vehicles Furniture & Equipment Computer Equipment Plant & Equipment Vehicles Leased Assets Other

Opening Balance

Additions

R

R

31 996 473 165 879 272 107 322 531 2 849 000 20 150 229

70 418 17 570 060 27 415 124

3 213 149 3 091 813 2 337 962 2 497 599 4 667 389 1 490 411 144 000

653 260 334 073 474 277 749 899 857 691 286 860

Disposals

Under Construction

Closing Balance

Opening Balance

Depreciation

Disposals

R

R

R

R

R

R

9 944 359 118 996 900 35 973 125 -

1 129 509 3 677 906 5 951 267

-

32 066 891 165 879 272 124 892 591 2 849 000 47 565 353

-

3 866 409 3 398 863 2 593 417 3 247 498 5 525 079 1 490 411 430 860

492 886 1 380 842 691 468 1 200 621 1 249 908 726 776 28 000

278 120 210 380 372 387 275 421 541 224 79 206

0

393 805 646

170 684 885

-

27 023 218 822

Total

345 639 829

48 411 662

As at 30 June 2013

Opening Balance

Additions

Disposals

Under Construction

Closing Balance

Opening Balance

R

R

R

R

R

R

Buildings Infrastructure Assets Community Assets Heritage Assets Work in Progress Specialised Vehicles Furniture & Equipment Computer Equipment Plant & Equipment Vehicles Leased Assets Other

31 206 865 152 401 919 89 752 471 2 849 000 24 416 085 1 073 328 3 452 003 1 410 726 2 546 104 3 033 750 1 490 411

Total

313 632 662

20 996 537

789 608 13 477 353 17 570 060 15 934 269 2 139 821 ( 360 189) 927 236 ( 48 505) 1 633 639 144 000

-

52 207 292

0

Carrying Value

Accumulated Depreciation

( 20 200 125) -20 200 125

31 996 473 165 879 272 107 322 531 2 849 000 20 150 229 3 213 149 3 091 813 2 337 962 2 497 599 4 667 389 1 490 411 144 000 345 639 829

8 814 850 110 748 294 24 917 798 301 157 1 541 936 741 582 1 200 217 1 091 189 428 688 149 785 711

12 515 420

-

0

Depreciation

Disposals

Change in estimate

R

R

1 129 509

0

0

Closing Balance R

-

-

9 292 61 808

7 698 050 5 951 267 191 729 ( 215 574) ( 76 556) ( 1 558) 76 775 298 088 28 000

Closing Balance

R

71 100

15 079 729

Impairment loss/Reversal of impairment loss

Change in estimate

11 073 868 122 674 806 41 924 392 -

20 993 023 43 204 465 82 968 200 2 849 000 47 565 353

771 006 1 581 931 1 002 047 1 476 042 1 791 132 726 776 107 206

3 095 403 1 816 933 1 591 370 1 771 456 3 733 947 763 636 323 654

183 129 205

210 676 441

0 Impairment loss/Reversal of impairment loss

Closing Balance

Carryin Value

R

R

R

550 556 5 104 060 54 479 26 443 1 962 81 944 5 819 444

9 944 359 118 996 900 35 973 125 492 886 1 380 842 691 468 1 200 621 1 249 908 726 776 28 000 170 684 885

22 052 114 46 882 372 71 349 406 2 849 000 20 150 229 2 720 263 1 710 971 1 646 494 1 296 978 3 417 481 763 636 116 000 174 954 944

170 684 885 Cost / Revaluation

As at 30 June 2012

Investment Property Intangible Assets Buildings Infrastructure Assets Community Assets Heritage Assets Work in Progress Specialised Vehicles Furniture & Equipment Computer Equipment Plant & Equipment Vehicles Leased Assets Total

Opening Balance

Additions

R 11 866 000 440 253 31 206 865 134 701 920 82 598 441 2 849 000 23 807 641 1 030 033 2 677 063 1 117 171 2 511 278 2 246 525 1 019 974 $

Accumulated Depreciation Impairment loss/Reversal of impairment loss

Closing Balance

R

R

R

0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 56 252 31 166 14 946 0 0

0 0 8 814 850 110 748 294 24 917 799 0 0 301 157 1 451 415 679 380 1 179 230 1 101 647 428 688

Disposals

Under Construction

Closing Balance

Opening Balance

Depreciation

Disposals

R

R

R

R

R

R

0 0 0 0 0 0 25 462 474 43 295 564 676 102 039

0 0 0 0 0 0 0 0 0 0 0

0 0 0 17 700 000 7 154 031 0 -24 854 031 0 0 0 0

11 866 000 440 253 31 206 865 152 401 920 89 752 472 2 849 000 24 416 084 1 073 328 3 241 739 1 219 210 2 511 278 3 033 750 1 490 412

0 0 7 685 341 103 026 196 18 955 304 0 0 448 174 1 917 230 771 458 1 367 082 1 681 443 169 716

0

787 225 470 438 27 430 147

0

0 0

0

325 502 311

136 021 944

0 1 129 509 7 722 098 5 962 495 0 0 69 879 212 059 89 457 164 494 209 553 258 972 15 818 516

Change in estimate

-216 896 -734 126 -212 701 -367 292 -789 349

0

53

-2 320 364

102 364

149 622 460

Carrying Value R 11 866 000 440 253 22 392 015 41 653 626 64 834 673 2 849 000 24 416 084 772 171 1 790 324 539 830 1 332 048 1 932 103 1 061 724 175 879 851

UNAUDITED SUPPLIMENTARY SCHEDULE

As at 30 June 2013

Opening Balance

R

`

SEGMENTAL ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT Cost Revaluation Work/ in Progress Closing Opening Additions brought into use Disposals Balance Balance

R

R

Budget & Treasury Community Services Corporate Services Executive & Council Housing Planning & Development Public Safety Roads Solid Waste Sports & Recreation Work in progress

12 684 866 85 768 681 1 320 324 12 103 314 183 939 54 596 382 1 415 027 165 879 272 2 647 685 1 196 403 20 150 228

200 142 17 570 060.00

Total

357 946 122

46 878 357

As at 30 June 2013

Opening Balance

Additions

R

R

52 336 568 976 771 222.00 300 497

R

3 426 477.58 380 719.73 428 309.70 489 496.80 571 079.60 571 079.60 685 295.52 300 496.65

R

245 844.00

R

Accumulated Depreciation Change in Current estimate Impairment

R

R

12 885 008 103 338 741 1 320 324 12 155 650 183 939 55 165 358 1 415 027 166 650 494 2 948 182 1 196 403 47 565 352

9 217 824 33 456 150 1 053 128 8 230 283 101 268 18 309 312 1 393 128 95 881 426 2 071 184 971 184 -

431 091 5 951 267 68 769 386 484 4 555 825 978 62 664 4 358 483 93 164 332 965 0

1 533 304.25

404 824 479

170 684 884

12 515 420

Cost / Revaluation Work in Progress brought into use

Disposals

Closing Balance

Opening Balance

Current

R

R

R

R

R

-

27 415 124

-

12 515 420

0

Closing Balance

Carrying value

R

R

9 648 914 39 407 416 1 121 897 8 616 767 105 823 19 135 289 1 455 792 100 239 909 2 164 347 1 304 149 0

0

`

Budget & Treasury Community Services Corporate Services Executive & Council Housing Planning & Development Public Safety Roads Solid Waste Sports & Recreation Work in progress

12 360 628 68 198 621 383 410 11 184 299 61 404 53 677 367 802 351 152 401 919 2 341 347 111 485 24 416 084

324 238 17 570 060.00

Total

325 938 915

52 207 332

936 914 919 015 122 535 919 015 612 676.48 13 477 353.26 306 338 1 084 917.94 15 934 269

48 411 661.58

-

-20 200 125.00 -20 200 125.00

-

0

Accumulated Depreciation Change in estimate Impairment R

183 200 304

Closing Balance R

3 236 094 63 931 325 198 427 3 538 883 78 116 36 030 068 -40 765 66 410 585 783 835 -107 746 47 565 352 0 221 624 175

Carrying value R

12 684 866 85 768 681 1 320 324 12 103 314 183 939 54 596 382 1 415 027 165 879 272 2 647 685 1 196 403 20 150 228

7 345 000 30 101 428 489 286 5 982 857 85 000 14 978 571 489 286 88 735 713 989 286 589 286 -

1 581 852 2 372 777 490 926 1 265 481 10 296 1 881 852 30 926 6 563 768 790 926 90 926

290 972 981 944 72 917 981 944 5 972.21 1 448 888.85 872 917 581 944 290 972.21 290 972.21

9 217 824 33 456 150 1 053 128 8 230 283 101 268 18 309 312 1 393 128 95 881 426 2 071 184 971 184

3 467 042 52 312 531 267 196 3 873 031 82 671 36 287 070 21 899 69 997 846 576 502 225 219 20 150 228

357 946 122

149 785 711

15 079 729

5 819 444

170 684 884

187 261 238

54

UBUHLEBEZWE MUNICIPALITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

39

Categories of financial instruments

2014 Financial Year Current assets Trade receivables Other receivables Cash and cash equivalents VAT receivable Non-current liabilities Finance lease liability Other non-current liabilities Current liabilities Trade and other payables Short-term portion of finance lease Unspent conditional grants and receipts

2013 Financial Year Current assets Trade receivables Other receivables Cash and cash equivalents VAT receivable

Loans and receivables

4 581 048 1 180 376 66 033 153 5 133 487

Financial liabilities at amortised cost

-

Total

4 581 048 1 180 376 66 033 153 5 133 487

-

454 040 4 222 982

454 040 4 222 982

-

13 535 876 405 985 11 899 819

13 535 876 405 985 11 899 819 -

Loans and receivables

5 055 341 1 904 983 1 281 553 3 483 276

Financial liabilities at amortised cost

-

Total

5 055 341 1 904 983 1 281 553 3 483 276

Non-current liabilities Finance lease liability Other non-current liabilities

-

454 040 5 252 000

454 040 5 252 000

Current liabilities Trade and other payables Short-term portion of finance lease Unspent conditional grants and receipts

-

11 737 645 383 542 15 676 339

11 737 645 383 542 15 676 339

UNAUDITED SUPPLIMENTARY SCHEDULE SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2014

2013 Actual Revenue R ( 277 652) ( 64 799 549) ( 8 057 952) ( 26 114 790) ( 99 249 942)

2013 Actual Expenditure R

11 679 218

2013 Surplus/ (Deficit) R

20 759 374 7 248 252

11 401 566 ( 35 186 198) 12 796 717 12 701 422 ( 18 866 538)

82 096 911

( 17 153 031)

29 613 351

12 796 717

2014 Actual Revenue R Corporate Services ( 85 550) Budget and Treasury Office ( 76 875 785) Executive and Council Social Development 7 020 668 Infrastructure Planning and Development 33 448 846 Total

( 36 491 820)

2014 Actual Expenditure R

2014 Surplus/ (Deficit) R

13 076 108 30 033 330 14 028 405 23 915 983 9 888 563

12 990 558 ( 46 842 455) 14 028 405 30 936 651 43 337 409

90 942 389

54 450 570 `

The inter-departmental charges have been allocated per segment for the current and prior years.

55

`

UNAUDITED SUPPLIMENTARY SCHEDULE DISCLOSURE OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF THE MUNICIPAL FINANCE MANAGEMENT ACT, 56 OF 2003 Reason for non Compliance Quarterly Receipts

Name of Grants Name of organ of state or municipal entity

Equitable Share National Treasury Anti Corruption Grant Dlgta Capital Investment Program Dlgta Financial Management Grant National Treasury M F M A Implementation Plan Dlgta G I S Grant Dlgta Hawkers/Taxi Grant Dlgta H R Systems Governance Dlgta LED Programme Dlgta Thusong Centre Dlgta Internal Roads Dlgta Ixopo Sportfields Dlgta Kuyasa School Grant Dlgta Land Use Manageent Dlgta Library Assistant Dlgta Library Building Grant Dlgta M I G Grant National Treasury Management Assistance Dlgta Marithal Project Dlgta Market Stalls Dlgta Municipal Development Planning Capacity BuildingDlgta Municipal Administrative Development Dlgta Mziki L C H Dlgta Nokweja Disaster Fund Dlgta EPWP Dlgta

Project Consolidate(MSIG) Project Management Unit Sangcwaba Grant Sponya Housing Project Waste Disposal Site

Ixopo Sportfields Maintenance

Dlgta Dlgta Dlgta Dlgta Dlgta Cogta

Quarterly Expenditure

Grants and Reason for

July

Oct

Jan

April

Total

July

Oct

Jan

April

Total

Unspent portion

Subsidies

delay withholding

to

to

to

to

Receipts

to

to

to

to

Expenditure

delayed/

of funds

Sept

Dec

Mar

June

Sept

Dec

Mar

June

2012/2013 financial statements

1

2

3

4

1

2

3

4

withheld

Unspent portion 2011/2012 financial statements

( 23 043 000) ( 9 700) ( 34 048) ( 8 467) (1 033 341) (7 170) (308 582) (387 000) (5 824 434) 144 366 (4 302) (220 238) 134 945 117 956 (5 895 983) (4 632) (8 197) (350 877) (24 973) (9 000) (411 505) (34 513) (163 377) (673 950) (118 121)

-18 601 000 ( 1 650 000) -

-

( 291 000) ( 463 001) ( 10 000 000) 890 000 -

( 143 931) ( 15 279 074)

( 36 337 001)

-14 260 000 ( 1 500 000) ( 11 143 000) ( 420 000) ( 49 274) ( 400 000) ( 150 000) ( 32 263 274)

-411 505 ( 144 366)

171 000 ( 172 725) 12 038 000 ( 600 000) ( 27 044 091)

-

( 411 505)

( 56 315 505) ( 1 650 000) 1 500 000 11 143 000 564 366 ( 120 000) ( 685 000) ( 22 038 000) 1 000 000 890 000 ( 673 950) ( 150 000) ( 96 055 871)

56

23 043 000 70 351 5 807 398 599 49 122 1 660 781 27 985 73 168 2 467 265 ( 99 000) -

18 601 000 353 222 92 773 173 488 1 366 794 65 968 234 614 7 537 659 501 647 -

-

-

27 697 078

28 927 165

14 260 000 185 904 454 319 122 718 2 417 027 42 119 95 184 4 523 098 28 305 116 250 87 100 10 203 22 342 227

411 505 1 074 571

6 780 862 891 51 672 2 731 031

4 302 ( 151 017) 116 359 13 405 961 8 197 ( 3 332) 9 000 793 607 936 413

50 730 118 121 47 233 20 478 656

56 315 505 1 684 048 5 807 6 780 1 808 582 387 000 8 175 632 4 302 -14 945 519 325 27 933 983 4 632 8 197 24 973 9 000 1 411 504 924 513 50 730 118 121 57 436 99 435 125

-9 700 -2 660 1 033 341 -390 -8 791 802 -420 000 -220 238 -47 718 -350 877 -163 377 -623 220 -236 495 ( 11 899 818)

Did your municipality comply with the grant conditions in terms of grants framework in the latest Division of Revenue Act

No No No No No No No No

N/a N/a N/a N/a N/a N/a N/a N/a

Yes Yes Yes Yes Yes Yes Yes Yes

N/a N/a N/a N/a N/a N/a N/a N/a

No No No No No No No No No No No No No No No No No No No No

N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a