Public contributions and donations 29 628 - Increases in the fair value of investments - - Gains on disposal of property, plant and equipment. When items of property, plant and equipment are financed from public contributions and donations, a transfer is made from the accumulated surplus/(deficit) to the Donations and Public Contributions Reserve equal to the donations and public contributions recorded as revenue in the Statement of Financial Performance in accordance with a directive (budget circular) issued by National Treasury. When such items of property, plant and equipment are depreciated, a transfer is made from the Donations and Public Contributions Reserve to the accumulated surplus/(deficit).
When an item of property, plant and equipment financed from government grants is disposed, the balance in the Donations and Public Contributions Reserve relating to such item is transferred to the accumulated surplus/(deficit). The balance on the Capitalisation Reserve equals the carrying value of the items of property, plant and equipment financed from the former legislated funds. When items of property, plant and equipment are depreciated, a transfer is made from the Capitalisation Reserve to the accumulated surplus/(deficit).
When an item of property, plant and equipment is disposed, the balance in the Capitalisation Reserve relating to such item is transferred to the accumulated surplus/(deficit). When items of property, plant and equipment are financed from government grants, a transfer is made from the accumulated surplus/(deficit) to the Government Grants Reserve equal to the Government Grant recorded as revenue in the Statement of Financial Performance in accordance with a directive (budget circular) issued by National Treasury. When such items of property, plant and equipment are depreciated, a transfer is made from the Government Grant Reserve to the accumulated surplus/(deficit).
When an item of property, plant and equipment financed from government grants is disposed, the balance in the Government Grant Reserve relating to such item is transferred to the accumulated surplus/(deficit).
LEPHALALE LOCAL MUNICIPALITY
ACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008
Property, plant and equipment adjusted for impairment -Property, plant and equipment adjusted for intangible assets -Recognizing of intangible assets. Budgeted amounts have been included in the annual financial statements for the current financial year only. When the presentation or classification of items in the annual financial statements is amended, prior period comparative amounts are reclassified.
The municipality had taken full advantage of all the exemptions by the Minister of Finance in Government Gazette 30013 of 29 June 2007.These exemptions are for the 2006/07 and 2007/08 financial years.
LEPHALALE LOCAL MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS
LONG-TERM LIABILITIES
LEPHALALE LOCAL MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS. Reconciliation of Carrying Value Infra- Community Other Total. Reconciliation of Carrying Value Infra- Community Other Total. Property, Plant and Equipment are stated at cost, less accumulated depreciation, except for land and buildings which are stated at a revalued amount. The depreciation lives of some of the assets have been corrected to comply with GAMAP 17 and prior year figures have been restated. LEPHALALE LOCAL MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS. Traveling allowance bearing positions were entitled to car loans which were repayable over a maximum of 6 years. In terms of the MFMA no more loans are advanced and the present loans are being phased out. The last loan will be settled in 2009. Balances Bad Debts Net Balance. Rates, Electricity, Water, Refuse Removal and Sewerage): - Ageing.
CONSUMER DEBTORS (continued)
- Contributions to organized local government
- Pension and Medical Aid Deductions
LEPHALALE LOCAL MUNICIPALITY NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS. Traveling allowance bearing positions were entitled to car loans which were repayable over a maximum of 6 years. In terms of the MFMA no more loans are advanced and the present loans are being phased out. The last loan will be settled in 2009. Balances Bad Debts Net Balance. Rates, Electricity, Water, Refuse Removal and Sewerage): - Ageing. Refuse removal and Sewer revenue are recognised after the services have been rendered by applying the approved tariffs. Property rates are recognized in the month, it is charged by applying the approved property rates tariffs to the value of the property, taking the rebates into consideration.
The purpose of the grant is to assist municipalities in building in-house capacity to perform their functions and stabilise institutional and governance systems as required in the Local Government Municipal Systems Act. The purpose of the grant is to promote and support reforms in financial management by building capacity in municipalities to implement the Municipal Finance Management Act. In terms of the Constitution, this grant is partially used to subsidize the provision of basic service to indigent community members.
Based on the allocations set out in the Division of Revenue Act of 2006, no significant changes in the level of government grant funding are expected over the forthcoming 3 financial years. Conditions still to be met- transferred to liabilities (see note 4) Conditions still to be met- transferred to liabilities (see note 4). Employee related costs - Contributions for UIF, pensions and medical aids Travel, motor car, accommodation, subsistence and other allowances.
Each is provided with an office and secretarial support at the cost of the Council. Balance unpaid ( included in creditors ) - - Cash and cash equivalents included in the cash flow statement comprise the following statement of. A reconciliation of the surplus/(deficit) reported in the previous year's annual financial statements to restate the comparative amounts included in the statements of Financial Performance is set out below.
Not later than 1 year - - Later than 1 year and not later than 5 years - - Present value of minimum lease payments. Municipal Gratuity Fund Municipal Workers pension Fund Imatu Retirement Fund SALA Pension Fund Samwu National Pension Fund Government Employees Pension Fund. The comparison of the Municipality's actual financial performance with that budgeted is set out in Annexures E(1) and E(2).
LEPHALALE LOCAL MUNICIPLITY : SCHEDULE OF EXTERNAL LOANS AS AT 30 JUNE 2008
EXTERNAL LOANS Loan
Number Redeemable Balance at 2007/06/30
Received during the
Redeemed, written off
Balance at 2007/06/30
Carrying Value of Property
Other Costs in accordance
APPENDIX A
LEPHALALE LOCAL MUNICIPLITY : SCHEDULE OF EXTERNAL LOANS AS AT 30 JUNE 2008 20
APPENDIX B
LEPHALALE LOCAL MUNICIPALITY : ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2008 21
SEGMENTAL ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2008
APPENDIX D
LEPHALALE LOCAL MUNICIPALITY
SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2008
Income
Actual Expenditure
Less : -
SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2008 FOR THE YEAR ENDED 30 JUNE 2008.
APPENDIX E (1)
ACTUAL VERSUS BUDGET (REVENUE AND EXPENDITURE) FOR THE YEAR ENDED 30 JUNE 2008
APPENDIX E (2)
ACTUAL VERSUS BUDGET (ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT) FOR THE YEAR ENDED 30 JUNE 2008
Explanation of Significant Variances greater than 5% versus Budget
