Appendix B: Analysis of Property, Plant and Equipment 77 Appendix C: Segment Analysis of Property, Plant and Equipment 78 Appendix D: Segmented Statement of Financial Performance 79 Appendix E(1): Actual vs. Budget (Income and Expenses) 80 Appendix E(2): Actual vs. budget (acquisition of tangible fixed assets) 81.
HOUSING OPERATING ACCOUNT
Non Annuity Loans - Bank Loans
Annuity loans
Utilisation of Long Term Liabilities
KWADUKUZA MUNICIPALITY
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
NON-CURRENT PROVISIONS
- Provision for the rehabilitation of the landfill site 9 489 786 8 459 749
EMPLOYEE BENEFITS 1 Pension benefits
Superannuation
EMPLOYEE BENEFITS (Continued) Provident Fund
Retirement Fund
Post-employment medical benefits
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 FOR THE YEAR ENDED JUNE 30, 2016.
EMPLOYEE BENEFITS (Continued) Discount Rate
SENSITIVITY ANALYSIS
SENSITIVITY RESULTS
EMPLOYEE BENEFITS (Continued)
Note: The post-retirement mortality adjustment assumes that someone aged 70 will experience the same mortality as someone aged 69. The liability under this scenario is expected to increase as members are expected to live longer.
HISTORY OF LIABILITIES, ASSETS AND EXPERIENCE ADJUSTMENTS
Long service awards and retirement gifts
Discount Rate
In conclusion
HISTORY OF LIABILITIES,ASSETS AND EXPERIENCE ADJUSTMENTS
Current- service
Cost
Interest
DEPOSITS
CURRENT PROVISIONS
CURRENT PORTION OF PROVISIONS
TRADE & OTHER PAYABLES
UNSPENT CONDITIONAL GRANTS AND RECEIPTS Conditional Grants from other spheres of Government
PROPERTY, PLANT AND EQUIPMENT
- INTANGIBLE ASSETS 30 June 2016
These assets are currently being investigated by management and the outcome will be reported to management and the Council.
Intangible Assets are made up as follows
HERITAGE ASSETS
Carrying value opening balance
Carrying value closing balance
LONG-TERM RECEIVABLES
HOUSING SELLING SCHEME LOANS
INVENTORIES
RECEIVABLES FROM EXCHANGE TRANSACTIONS
RECEIVABLES FROM EXCHANGE TRANSACTIONS (Continued) Reconciliation of the Allowance for Impairment
RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS
Bank statement and cash balance at the beginning of the year Bank statement and cash balance at the end of the year.
CASH AND CASH EQUIVALENTS (continued) Investments Bank Account
Account statement and cash balance at the beginning of the year Account statement and cash balance at the end of the year - ( 25) First National Bank was told to close the account in June 2015. First National Bank Account - Stanger Branch Account Number Checking account First National Bank account - Ballito branch account number Checking account.
CASH AND CASH EQUIVALENTS (continued) Fines Bank Account
Adjustments to the valuation list in terms of Article 78 of the MPRA (as amended) are made on a quarterly basis and a supplemental valuation list is prepared annually. Improved Homes: In addition to the statutory reduction of R15,000, a further reduction of R85,000 will be approved for properties valued over R130,000. Persons owning upgraded properties with a rateable value of R130,000 and below are not liable for the payment of rates.
The first 30% of the valuation of public service real estate is exempt from rate calculation. Annually, by application, the final payout date is: 30/09/2015 30/09/2014 Monthly, and the final payout dates are the last working day of the day. The amounts for revenue from billed services disclosed above refer to the services provided, which are billed monthly to consumers in accordance with the approved tariffs.
Conditions still to be fulfilled - transferred to liabilities (see note This grant was used for road and stormwater infrastructure including. Withheld by National Treasury - - Conditions still to be fulfilled - transferred to liabilities (see note 8) - - This grant used to help the municipality implement necessary financial reforms Conditions that still need to be met - transferred to liabilities (see note 8) - - This grant is used for electrification projects as part of upgrading informal.
Conditions fulfilled - transferred to revenue Conditions that have not yet been fulfilled - transferred to liabilities (see note 8) - - This grant is used to provide support to the municipality for building in-house. Conditions fulfilled - transferred to revenue Conditions not yet fulfilled - transferred to liabilities (see note 8) - - This grant is for the notification of the Act on municipal property rates to the. Conditions met - transferred to revenue Conditions still missing - transferred to liabilities (see note This grant is for upgrading the sports facilities: Chief Albert Luthuli Sports.
GOVERNMENT GRANTS AND SUBSIDIES (Continued) 13 Disaster Rough Seas
- OTHER INCOME
- FINES
- Fruitless and Wasteful Expenditure
- Contributions to organised local government
- Audit fees
- PAYE and UIF
- Councillor’s arrear consumer accounts as at 30 June 2016 (Continued)
- Supply chain management deviations
- Restatement of Non-Exchange Receivables (Note 17)
- Restatement of Trade & other payables (Note 7)
- Restatement of Long term liabilities (Note 2)
Conditions to be met - transferred to liabilities (see note This allocation is for community uplift. Amount withheld by National Treasury - refers offset to Fair Share Conditions met - transferred to income - - Conditions to be met - transferred to liabilities ( see note 8) - - This grant is used by the municipality to implement energy efficient strategies. The rollover approval of this grant has not been approved in terms of Section 22 of the Income Distribution Act.
Conditions still to be met-transferred to liabilities (see note 8) - - This grant is used to finance operating expenses within the various libraries within. Conditions fulfilled - transferred to income Conditions still to be fulfilled - transferred to liabilities (see note 8) - - This grant is for the provision of sports facilities for the community. The Executive Director: Municipal Services, after the division of the department, took over as Executive Director: Community Safety effective June 01, 2016, however, he served as the caretaker Executive Director of the Community Services department until May 31, 2016.
Bulk purchases are expenses for raw materials that are not generated by the municipality, which the municipality distributes in the municipal area with a view to resale to consumers. KwaDukuza Municipality has allocated an amount of R6 100 223 from their MIG Grant funding for the 2015/2016 financial year towards this project. Irregular expenses incurred for the financial year Other goods and/or services not procured through tendering.
The timing and outcome of reimbursements cannot currently be determined, therefore no provision is made in the financial statements for any liabilities that may arise. R4 874 388 relating to the development of the mansion was returned to the developer after the end of the year.
CORRECTION OF ERROR (Continued) Reconciliation of Adjusted 2014/2015 Surplus
- Other own revenue
- Allowances for Impairment
- Transfers recognised Capital
- Investment Revenue (R24 405 vs R30 410) 25%
- Other Own Revenue
- Allowances for Impairment
- Transfers recognised Capital
- RELATED PARTIES AND CLOSE FAMILY MEMBERS RELATED PARTIES
- STAFF MEMBER: P MURUGAN
- COUNCILLOR: B B SINGH
- STAFF MEMBER: S I TSWANA
- COUNCILLOR: G GOVENDER
Nature of the transaction: The municipality has entered into an agreement for mowing grass with a relative of the municipal clerk. Type of transaction: The employee's brother provides pest control services to the municipality. Nature of the transaction: The employee's brother rents sound equipment to the council for public gatherings.
The municipality entered into a non-cancelable lease with a private contractor to operate the Dolphin Caravan Park. The municipality entered into a 2 year Financial Lease with Vodacom for the supply of 14 Laptops on 01 August 2015. The municipality does not have an option to purchase the leased Property, Plant and Equipment at the conclusion of the lease agreements.
The municipality's obligations under finance leases are secured by the lessor's title to the leased assets. The municipality has assessed the useful lives of property, plant and equipment and intangible assets. Since the municipality has no significant interest-bearing assets, the income and operating cash flows of the municipality are essentially independent of changes in market interest rates.
The municipality is not exposed to equity price risks arising from equity investments, as the municipality does not trade these investments. Cash flow forecasts are prepared and sufficient financing facilities are monitored. The table below analyzes the municipality's financial liabilities in relevant maturity bands based on the period remaining on the balance sheet until the contractual maturity date. The Municipality does not enter into or trade any financial instruments, including financial derivative instruments, for speculative purposes.
The municipality only deposits cash with large banks with high quality credit and limits exposure to any one counterparty. The municipality's liquidity risk is the result of the funds available to cover future obligations. The municipality manages liquidity risk through a continuous review of future commitments and credit facilities.
UNAUDITED APPENDIX A: SCHEDULE OF EXTERNAL LOANS FOR THE YEAR ENDED 30 JUNE 2016
Repayable
Balance at 30/06/2015
Received during the year
Redeemed / Adjustments /
Balance at 30/06/2016
Non Annuity Loans
UNAUDITED APPENDIX E(1): ACTUAL VERSUS BUDGET (REVENUE AND EXPENDITURE) FOR THE YEAR ENDED 30 JUNE 2016
REVENUE
Revenue from non-exchange transactions
Revenue from exchange transactions
EXPENDITURE
The delay was due to fleet procurement being extended and bulk supply projects (North and South). There was a delay in the implementation of these multi-year projects, which was taken into account in the 2016/2017 capital budget.
