CEDERBERG LOCAL MUNICIPALITY
Within 1 Year Between 2 to 5 years After 5 years Total 30 JUNE 2019
Annuity Loans 3 943 089 13 814 847 2 496 396 20 254 332 Finance Lease Liabilities 2 506 417 4 413 129 - 6 919 546 Payables from exchange transactions 75 109 292 - - 75 109 292
Total 81 558 798 18 227 976 2 496 396 102 283 170
30 JUNE 2018
Annuity Loans 4 242 425 15 772 360 4 481 974 24 496 759 Finance Lease Liabilities 1 642 492 4 251 934 - 5 894 426 Payables from exchange transactions 49 271 956 - - 49 271 956
Total 55 156 873 20 024 294 4 481 974 79 663 141
48.5 Other price risk (Market Risk)
The Municipality is not exposed to any other price risk.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
South Africa is currently in an upward interest rate cycle and management does not foresee a decrease in the next 12 months.
Liquidity risk is the risk encountered by the Municipality in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is mitigated by approving cash funded budgets at all times to ensure commitments can be settled once due over the long term. The Municipality also monitors its cash balances on a daily basis to ensure cash resources are available to settle short term obligations.
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.
Figures in Rand 2019 2018
CEDERBERG LOCAL MUNICIPALITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2019
49 FINANCIAL INSTRUMENTS
The Municipality recognised the following financial instruments at amortised cost:
Financial Assets
Cash and Cash Equivalents 7 187 397 18 532 065
Receivables from Exchange transactions 33 355 213 30 561 431
Total 40 542 610 49 093 496
Financial Liabilities
Current Portion of Long-term Liabilities 4 111 571 3 598 571
Payables from exchange transactions 75 109 292 49 271 956
Long-Term Liabilities 16 469 708 18 776 951
Total 95 690 571 71 647 478
50 STATUTORY RECEIVABLES
Receivables from Non-Exchange Transactions 12 496 299 12 983 956
Rates 10 963 412 11 421 285
Fines 1 532 887 1 562 671
Taxes 90 816 2 971 515
Total 12 587 115 15 955 471
51 EVENTS AFTER REPORTING DATE
The Municipality had no significant events after reporting date.
52 IN-KIND DONATIONS AND ASSISTANCE
The Municipality did not receive any in-kind donations or assistance during the year under review.
53 PRIVATE PUBLIC PARTNERSHIPS (PPP's)
The Municipality did not enter into any PPP's in the current and prior year.
The amounts above are disclosed after any provision for impairment has been taken into account.
In accordance with the principles of GRAP 108, Statutory Receivables of the Municipality are classified as follows:
Figures in Rand 2019 2018
CEDERBERG LOCAL MUNICIPALITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2019
54 CONTINGENT LIABILITIES
The Municipality were exposed to the following contingent liabilities at year end:
54.1 Matter against the Municipality by Jimmy Barnard 50 000 50 000
54.2 Matter against the Municipality by Mathilda Smith 15 000 15 000
54.3 Matter against the Municipality by Siphokazi Sinxo (on behalf of her minor son, Lunje Sinxo) 1 800 000 1 800 000
54.4 Matter against the Municipality by Patt Gooddall 142 000 142 000
54.5 Matter against the Municipality by Elandsbaai Handelsmaatskappy 1 052 000 700 000
54.6 Matter against the Municipality by MJ Coetzee 250 000 250 000
55 RELATED PARTIES
55.1 Related Party Loans
55.2 Compensation of management personnel
Remuneration of management personnel are disclosed in notes 29 and 30.
55.3 Other transactions in terms of Section 45 of the Municipal Supply Chain Regulations
The following awards were made where immediate family members are in the service of the State:
Company Name Relationship Position of person in service of the state Amount Amount
P J Sobekwa Brother of J Sobekwa Foreman at Cederberg Municipality 92 600 79 250 HM Henderson Sister of C Henderson Senior clerk store at Cederberg Municipality 8 360 95 548 Nelodia Transport Wife of WK Nel Admin clerk at the SAPS 2 400 - RJ Swartz Son of R Swartz Police officer at the SAPS 1 956 -
Total 105 316 174 798
This applicant is claiming for damages amounting to R15 000. Since 2010, the applicant's attorneys has not taken any action on this matter. However, in 2015 she instructed her attorneys to continued with the matter.
This matter involves an application by the owners of Erf 234 Graafwater against the Municipality for declaratory relief, alternatively a review regarding the decision taken in respect of an application for consent use. The matter in ongoing , pleadings have closed and the Applicants have to set it down for hearing. The legal costs and disbursements that the Municipality may be liable for in the event that the application is successful, is estimated at R 250 000.
The applicant is claiming for damages amounting to R1 400 000 in total. These damages relate to an injury her son obtained on the property of the Municipality when an entrance gate became dislodged and fell on her son. Legal costs are estimated at approximately R 400 000.
The applicant is pleading sett of services against road and stormwater for the amount to R 92 000.
The legal cost for which the Municipality may be liable are estimated at R 50 000.
This matter has been finalised but legal costs still have to be taxed or agreed. The legal costs for which the Municipality may be liable are estimated at R50 000.
The applicant claims against infringement of property for the amount of R 652 000. The legal cost for which the Municipality may be liable are estimated at R 400 000.
All rates, service charges and other charges in respect of related parties are in accordance with approved tariffs that were advertised to the public. No impairment charge have been recognised in respect of amounts owed by related parties.
There are no loans outstanding to any related party. Since 1 July 2004 loans to councillors and senior management employees are not permitted.
Figures in Rand 2019 2018
CEDERBERG LOCAL MUNICIPALITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2019
56 FINANCIAL SUSTAINABILITY
- The current assets to liabilities ratio decreased to 0.58:1 in comparison with 0.69:1 of the prior year.
- The average creditors' repayment days increased from 93 days to 108 days.
- Despite a worsening economic conditions and drought, the Municipality collection rate increase from 85% to 87%
57 B-BBEE PERFORMANCE
Information on compliance with the B-BBEE Act is included in the annual report under the section titled B-BBEE Compliance Performance Information.
In the current year a financial turn-around strategy was implemented as part of the long-term financial plan. The results of the said implementation were as follow:
In addition, harsh austerity measures has been implemented. The 2019/20 budget approved by Council is projecting a cash surplus of R16 149 955 over the MTREF period. The said austerity measures will have no negative impact on service delivery.