It is the responsibility of the accountant to ensure that the annual accounts give a true and fair view of the municipality's affairs :: is at the end of the financial year Based on information and explanations from management, the accountant believes that the system of internal controls provides reasonable assurance that the accounting records can be relied upon when preparing the annual financial statements. The results of operations and the state of the municipality can be seen in full from the attached annual financial statements and, in our opinion, do not require additional comments. The accountant is not aware of any matter or circumstance that has arisen since the end of the financial year. Cash Flow Statement Statement of Comparison of Budget and Actual Amounts If a replacement part is recognized in the carrying amount of the investment property, the carrying amount of the replaced part is derecognised. If the acquired item's fair value was not determinable, the deemed cost is the carrying amount of the asset(s) given up. If a replacement cost is recognized in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. The asset's book value is reduced directly OR using an impairment account. Upon derecognition of the financial asset in its entirety, the difference between the book value and the sum of the compensation received is recognized in surplus or deficit. Depreciation (depreciation) is the systematic distribution of the depreciable amount of an asset over its useful life. Accounting Policies If such a sign exists, the municipality assesses the recoverable value of the service of the asset. The value in use of non-performing assets is the present value of the remaining useful potential of the non-performing assets. The present value of the remaining useful potential of a non-monetary asset is determined as the depreciated replacement value of the asset. When the estimated amount of the loss due to impairment is greater than the book value of the non-monetary asset to which it relates, the municipality recognizes the liability only to the extent required by the GRAP standards. Other long-term employee benefits are employee benefits (excluding post-employment benefits and severance payments) that do not have to be settled within twelve months after the end of the period in which the employees performed the related work. Short-term employee benefits are employee benefits (excluding severance payments) that must be settled within twelve months after the end of the period in which the employees performed the related work. Current service cost is the increase in the present value of the defined benefit obligation resulting from the employee's service in the current period. The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date. If the effect of the time value of money is material, the amount of a provision is the present value of the expenditure expected to be required to settle the obligation. Service revenue is recognized in relation to the stage of completion of the transaction at the reporting date. Royalties are recognized as they are earned in accordance with the content of the relevant agreements. Service fees included in the price of the product are recognized as revenue over the period in which the service is performed. When a liability is subsequently reduced, because the taxable event occurs or a condition is met, the amount of the reduction in the liability is recognized as income. The expense is classified in accordance with the nature of the expense, and where it is recovered, it is subsequently accounted for as income in the statement of financial performance. The expense is classified in accordance with the nature of the expense, and where it is recovered, it is subsequently accounted for as income in the statement of financial performance. Inventories Maintenance materials Receivables from exchange transactions Gross balances Receivables from exchange transactions (continued) Reconciliation of allowance for impairment Receivables from non-exchange transactions Sundry debtors Installations and machines Furniture Means of transport Computer equipment Infrastructure Community assets Other tangible fixed assets. A register containing the information required by section 63 of the Municipal Finance Management Act is available for inspection at the municipality's registered office. A register containing the information required by section 63 of the Municipal Finance Management Act is available for inspection at the municipality's registered office. Expanded Public Works Program Integrated Local Government Financial Management Grant Public Transport Network Grant. A provision is made for the estimated liability for annual leave resulting from services rendered by employees up to the amount of the liability. The days of leave granted have been converted to a percentage of the annual salary to the next interval by taking future salary growth into account. According to the Revenue Distribution Act, the annual fair share allocated to the municipality is an unconditional subsidy. A portion of this grant is used to subsidize the provision of basic services to poor members of the community in accordance with national policy. 32 536 816 The grant is used to provide specific capital funding for basic waste eradication of municipal infrastructure for poor households, micro-enterprises and social institutions serving poor communities. 15 009 190 This grant is used to facilitate the planning and implementation of various water and sanitation projects in the field to accelerate the reduction of the backlog and increase the sustainability of services, especially in rural municipalities; supporting the drought relief project in the affected municipalities. This grant is used to strengthen the capacity and upskilling of civil servants in the Budget and Treasury Office; acquisition, upgrade and maintenance of financial management systems to support the preparation and timely submission of annual accounts$ for audit. (see note 13). 711 279 This grant is used to encourage municipalities to expand job creation efforts through the use of labour-intensive delivery methods. The conditions are fulfilled. Public Grants and Grants (continued) Rural Roads Asset Management Systems Grants Rural Roads Asset Management Systems Grants unused at the beginning of the year. 918 103 This grant will be used to assist district municipalities in establishing nationwide RAMS and the collection of roads, bridges and traffic data on municipal road networks in accordance with the Road Infrastructure Strategic Framework for South Africa (RISFSA). Each is provided with an office and secretarial support at the council's expense. The remuneration of political officials and councilors is within the upper limits set by the framework referred to in Article 219 of the Constitution. Tangible fixed assets, the condition of which was assessed to be very poor and damaged, were impaired during the year. The investment in VBS mutual bank has deteriorated as a result of the bank being placed under receivership. Consumer receivables have been assessed for impairment at the end of each reporting period based on impairment policy, and all consumer receivables with objective indication of impairment have been impaired. Cash generated from operations Surplus Contingencies Contingent Liabilities Contingencies (continued) 1. Capstain TradingU The municipality's liquidity risk is a result of the funds available to cover future obligations. Pursuant to section 32 of the MFMA, the council must set up a committee to investigate these. Contracts awarded to suppliers in the service of the state Bids not publicly advertised/competitive tenders not invited. Pursuant to Article 32 of the MFMA, the council must appoint a commission to investigate these. The decrease of R3 794 469, this decrease is due to the correction of the incorrect billing correction in the customer debtor of the Musina area, which was wrongly corrected in the previous year. The correction of the previous year's erroneous correction also results in an increase in VAT receivable of R7 701 471 and an increase in the accumulated surplus of R3 907 002. Decrease by R1 284 631, this decrease is due to impairment of the billing of the consumer debtors that were not previously invoiced. The former represent an increase, while the latter represent a decrease, the net effect being the adjustment. The total net effect of the movement on motor vehicles was an increase in the balance of R 1,998,531. The former represent an increase, while the latter represent a decrease, the net effect being the adjustment. The total net effect of the movement on other PPE was a decrease in the balance of R 3,465,004. The former represents an increase, while the latter represents a decrease, the net effect is then the adjustment. The overall net effect of the movement on furniture and office equipment was an increase of the balance by R657,985.43. The former represents an increase, while the latter represents a decrease, the net effect is then the adjustment. The overall net effect of the movement on computer equipment was an increase of the balance by R as shown by the adjustment above. The former represents an increase, while the latter represents a decrease, the net effect is then the adjustment. The overall net effect of the movement on plant and machinery was a decrease of 166,819. Infrastructure: The movement is due to the cost adjustment on the infrastructure register as a result of the revised valuation, resulting in a decrease of R adjusted against the accumulated surplus. Related parties (continued) Name Budget and Actual viriance explainationsAccounting Policies
Presentation of Annual Financial Statements
Accounting . Policies
Notes to the Annual Financial Statements
Notes to the Annual Financial Statements
VAT Receivable Vat
Notes to the Annual Financial Statements
Notes to the Annual Financial Statements
Notes to the Annual Financial Statements
Notes to the Annual Financial Statements
Notes to th e Annual Financial Statements
Accounting Officer's Responsibilitie s and Approval
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Approved the Annual Report of the Company for the financial year ended on December 31, 2017 and ratified the Company's consolidated Financial Statements for the financial year ended on
