The City of Johannesburg Metropolitan Municipality is a Grade Six Local Authority in accordance with Clause IV of Government Notice R999 dated 2 October 2001, published under the Remuneration of Public Office Bearers Act, 1998. I am responsible for the preparation of the consolidated financial statements in terms of Section 126(1) of the Municipal Finance Act and which I have signed on behalf of Municipal Finance Management.
Property rates
Services charges
Investment revenue
Transfers recognised - Capital and Operational
Other Revenue
Debt impairment
Depreciation and armotisation
Finance Charges
Other expenditure
Public contributions, donated and contributed property, plant and equipment
Statement of compliance
Materiality
Consolidation
Significant judgements and sources of estimation uncertainty
Significant judgements and sources of estimation uncertainty (continued) Significant judgements include
Significant judgements and sources of estimation uncertainty (continued) Taxation
Zoo animals
Zoo animals (continued)
Investment property
Property, plant and equipment
Property, plant and equipment (continued) Subsequent measurement
Property, plant and equipment (continued)
Intangible assets
Heritage assets
Heritage assets (continued)
Investments in Municipal Entities
Investment in Joint Ventures
Investment in Associate
Financial instruments
Financial instruments (continued)
Statutory receivables Identification
Statutory receivables (continued)
Tax (continued)
Leases
Leases (continued)
Inventories
Impairment of cash and non-cash generating assets
Impairment of cash and non-cash generating assets (continued)
Impairment of non-cash-generating assets
Impairment of non-cash-generating assets (continued)
Internal reserves
Internal reserves (continued)
Budget information
Employee benefits
Employee benefits (continued)
Provisions and contingencies
Provisions and contingencies (continued)
Revenue from exchange transactions
Revenue from exchange transactions (continued) Finance income
Revenue from non-exchange transactions
Revenue from non-exchange transactions (continued)
Borrowing costs
Accounting by principals and agents Identification
Accounting by principals and agents (continued)
In-kind services
Unauthorised expenditure
Fruitless and wasteful expenditure
Irregular expenditure
Related parties
Events after the reporting date
Commitments
In the current financial year, the Municipality has adopted the revised effective standards and their interpretations issued by the ASB. The aforementioned standards and interpretations which are relevant to the City's business operations will be adopted as soon as they become effective.
INVENTORIES
Loan R was issued to Metro Trading on September 1, 2015 with a deferral of principal and interest for three years. Metrotrading did not repay the loan in the current year, although the amounts were due.
FINANCE LEASE RECEIVABLES Gross investment in the lease due
RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS
VAT RECEIVABLE (STATUTORY RECEIVABLES)
Included in consumer debtors above, a charge and levied specifically as a contribution to the cleaning of the city in general is charged for the service provided by the municipality based on Tarrifs approved by the Municipal Council of the City of Johannesburg City levied on non-residential and agricultural properties. CJMM pays contributions into the fund, which is administered by a 3rd party fund manager, so that the municipality can receive contributions plus growth to repay redemptions of the bonds when they fall due. The conditions are that the secured asset at maturity must have the same value as the liability, so that the liability can be discharged.
ZOO ANIMALS
INVESTMENT PROPERTY
A register containing the information required under Section 63 of the Act on Municipal Financial Management is available for inspection at the municipality's registered office.
PROPERTY, PLANT AND EQUIPMENT
Expenditures for repairs and maintenance of fixed assets Expenditures for repairs and maintenance. Employee-related costs and other expenses The register containing the information required by Article 63 of the Act on the Management of Municipal Finances is available for inspection at the registered office of the municipality.
INTANGIBLE ASSETS
Intangible assets under construction or development Cumulative expenses included in the.
HERITAGE ASSETS
Heritage assets in the process of construction or development Cumulative expenditure recognized in The separate annual financial statements of the joint venture are available for inspection at the company's headquarters. The separate annual financial statements of the joint venture are available for inspection at the entity's registered office.
DEFERRED TAX
Finance lease obligations are covered by the lessor's expense on the leased assets.
Bonus provision
Provision for legal claims
Maintenance Contract
Connaught court case
Damages claims
Kelvin ash disposal
Provision for subsistance allowance Subsistance allowance
Environmental rehabilitation: landfill sites (closed and open)
Post-retirement liabilities
- Unfunded post-retirement gratuity plan
CJMM has obligations to subsidize medical assistance contributions in respect of certain qualified personnel and retirees and their surviving spouses. In the event that the housing loan to which the subsidy relates is not repaid in full upon retirement, the subsidy continues until the retirement of the members. Amounts recognized in the statement of financial position. The present value of the outstanding liability relating to.
LOANS FROM MUNICIPAL ENTITIES
The Tap was issued at a premium to the prevailing interest rate at the time of the Tap. Deferred revenue relates to the liability related to passenger trips sold in advance through the Smartcards Multi-Journey Software. Deferred revenue is released when passengers present these cards on buses and bus operators issue a ticket accordingly.
RENDERING OF SERVICES
GOVERNMENT GRANTS AND SUBSIDIES
It is an infrastructure development grant that focuses on urban development, with the aim of attracting private investment and enabling public authorities to provide basic services. This subsidy covers less than half of the costs of the vehicles, the staffing of the vehicles and all other costs associated with providing the service of the municipality. The municipality provides health services on behalf of the provincial government and is reimbursed approx. 20% of the total expenses incurred.
EMPLOYEE RELATED COSTS
DEPRECIATION AND AMORTISATION
DEBT IMPAIRMENT
Random and targeted audits are carried out, followed by removal of illegal connections and normalization supply - Stand-by audit which will constitute (100%) verification against the assessment role of the City of Johannesburg - Reconciliation of the customer population with the number of stands on the city's general assessment list. In terms of the agreement, all leases for leased vehicles are paid monthly in arrears and are tied to the prime overdraft rate. Operating lease payments represent leases payable in the future by Johannesburg City Power for certain equipment.
CONTINGENCIES GROUP
As such, these receivables did not qualify to be classified as income and income. The correction of interdepartmental balances has been incorrectly accounted for. Additional expenses and reversals related to accruals from previous years have been corrected. The long-term leased cars were undervalued due to an unguaranteed part of the residual value that was not accounted for. The turnover for the relevant periods has been adjusted and comparative amounts have been recalculated. Accrual values relating to previous years have been recalculated. The municipal cleaning levy has been stated too low due to incorrect reporting that has been used.
RISK MANAGEMENT Price risk
Correction of previous year Inter-company receivables previously approved to be written off not accounted for in the financial records. City cleaning charge was underestimated by. This relates to the correction of assets capitalized in the current year that were available for use in previous years. Commitments: The previous year's figures for commitments have been restated with R218 654 due to an error identified in the commitment register in the current year.
Overview
The municipality has signed a loan agreement with DBSA in the financial year 2019/20 for a total of R 2.9 billion. The South African Reserve Bank has cut the repo rate – the rate at which the SARB lends to large commercial banks in South Africa – by 250 basis points, reducing the repo rate to 3.75%. Under GRAP 104, sections .118 and .119, there are different levels of fair values based on the extent to which quoted prices are used in the calculation of fair value.
Fair value are based on quoted prices (unadjusted) in an active market for identical financial instruments
The fair value of financial instruments (for example, marketable and available-for-sale securities, or over-the-counter derivatives) is based on quoted market prices at the balance sheet date, or is determined using valuation techniques. Other techniques, such as estimated discounted cash flows, are used to determine fair value for other financial instruments. The fair value hierarchy applies to instruments reported at fair value in the statement of financial position.
Fair values are calculated using valuation techniques based on observable inputs either directly or indirectly other than level 1 inputs. This category includes instruments valued using quoted market prices in active markets for similar
The City uses various methods and makes assumptions based on market conditions existing at each balance sheet date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt. To determine the fair values of variable rate instruments, the City uses forward market interest rates to estimate future interest and capital cash flows and then uses its credit curve to calculate present values.
Level 3: This category uses inputs for the asset or the liability that are not based on observable market data (unobservable inputs)
Credit risk is the risk that the counterparty in a financial instrument will not fulfill the obligation or commitment it has undertaken with the fund, which will result in a financial loss for the fund. The Fund is exposed to the risk that the fair value or future cash flows of its financial instruments will fluctuate due to changes in market interest rates. Sensitivity analysis reflects how changes in base interest rates affect the fair value of financial instruments.
FRUITLESS AND WASTEFUL EXPENDITURE
The fruitless and wasteful expenditure written off is based on the Council's approval after a committee investigated and decided to certify expenditure of R21 391 706 as irrecoverable. The fruitless and wasteful expenses that have been transferred to receivables for recovery are related to the Council decision of the meeting held 27 October 2020 where it was decided that R2 183 110 in fruitless and wasteful expenses be immediately recovered by the City from the responsible officials. Service providers at JFPM (R207 000) and MTC (R15 000) have reversed interest charged which was previously classified as fruitless and wasteful expenditure.
ADDITIONAL DISCLOSURE IN TERMS OF MUNICIPAL FINANCE MANAGEMENT ACT Contributions to organised local government
AWARDS TO CLOSE FAMILY MEMBERS OF PERSONS IN THE SERVICE OF THE STATE
IRREGULAR EXPENDITURE
Therefore, the service provider should not have received points for the contract manager and site agent. Based on the reasons given for the deviations, it was not justified and does not comply with section 36(1) (iv) of the Municipal Supply Chain Regulations. The contract has been declared irregular at group level due to non-compliance with section 116 of the MFMA.
IN-KIND DONATIONS AND ASSISTANCE
Governance of China 2 His Excellency, President of the People's Republic of China XI Jinping, 1 X Red Chinese Plate, 1 X Box of Chinese Tea.
DEVIATION FROM SUPPLY CHAIN MANAGEMENT REGULATIONS
Johannesburg Metropolitan Bus Services (Pty) Ltd Johannesburg Social Housing Company (Pty) Ltd City Power Johannesburg (Pty) Ltd.
RELATED PARTIES (continued) Amounts included in Loans,
RELATED PARTIES (continued) 55. CHANGE IN ESTIMATE
EVENTS AFTER THE REPORTING DATE
VAT PAYABLE
FINANCE INCOME Interest revenue
RENTAL OF FACILITIES AND EQUIPMENT Facilities and equipment
AGENCY SERVICES
Fresh produce sales at National Fresh Produce Markets are governed by the Agriculture Produce Agent Council Act (APAC) and Market By Laws. The city is an agent through Joburg Market that facilitates the sale of fruits and vegetables. The agreement requires the city to perform all registration and testing functions on behalf of the department, which consist of motor vehicle registration and licensing, driver's license testing center functions, and vehicle testing station functions. The city is a representative of the agreement as they are only entitled to receive a commission amount and deposit the entire net amount received for services rendered to the county department. The city's failure to deposit collected funds to the county for a two-month period results in the strict requirement to make daily deposits to the department.
PRINCIPAL AGENT ARRANGEMENT Webtickets
All the cash held by the agents on behalf of the municipality is expected to be settled by 31 July 2020 65 at the latest.
CASH MANAGEMENT
Due to the impact of Covid-19 and the easing of the credit control policy, the city's average collection rate decreased by 2.8%. A significant increase in debt impairment and write-offs due to the temporary suspension of credit control measures due to the blocking regulation implemented by the national government, resulting in an unexpected reduction in the recovery of overdue debtors. On March 30, 2020, Government Gazette No. 43181, which allows municipalities to adopt a special adjustment budget before the end of the 2019/20 fiscal year to authorize all emergency-related expenditures to address the COVID-19 pandemic.
