I am responsible for the preparation of these financial statements, which are presented on pages 4 to 51, in terms of Article 126(1) of the Municipal Finance Management Act and which I have signed on behalf of the Municipality. I certify that the salaries, allowances and benefits of the advisers, loans granted to the advisers, if any, and payments made to the advisers for the loss of office, if any, as disclosed in note 18 of these annual financial statements are within the upper limits of the framework provided for in Article 219 of the Constitution, read with the Constitution of the Minister of Remuneration and Public Office of the Government. this act.
Presentation of Annual Financial Statements
- Investment property (continued)
- Property, plant and equipment Initial Recognition
- Property, plant and equipment (continued)
- Intangible assets Initial Recognition
- Intangible assets (continued)
- Interest in joint ventures
- Financial instruments
- Financial instruments (continued) Subsequent measurement
- Financial instruments (continued) Derecognition
- Leases
- Leases (continued) Finance leases - lessor
- Inventories
- Non-current assets held for sale and disposal groups
- Impairment of cash-generating assets
- Impairment of non-cash-generating assets
- Impairment of non-cash-generating assets (continued)
- Employee benefits Short-term employee benefits
- Employee benefits (continued) Defined benefit plans
- Provisions and contingencies Provisions are recognised when
- Provisions and contingencies (continued)
- Revenue from exchange transactions
- Revenue from exchange transactions (continued) Measurement
- Revenue from non-exchange transactions
- Revenue from non-exchange transactions (continued) Other grants and donations
- Borrowing costs
- Comparative figures Current Year Comparatives
- Unauthorised expenditure Unauthorised expenditure means
- Fruitless and wasteful expenditure
- Irregular expenditure
- Irregular expenditure (continued)
- Presentation of currency
- Budget information
- Related parties
- Change in accounting policy
If a replacement part is included in the carrying amount of the investment property, the carrying amount of the replaced part is no longer included. If the fair value of the acquired item could not be determined, the deemed cost is the carrying amount of the asset or assets given up. If a replacement cost is included in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is no longer recognised.
The amount transferred is equal to the difference between depreciation based on the revalued carrying amount and depreciation based on the original cost of the asset. Financial instruments are initially recognized when the municipality becomes a party to the contractual terms of the instruments. Where financial assets are written down through the use of an allowance account, the amount of the loss is recognized as surplus or deficit within operating expenses.
The carrying amount of the asset will be reduced either directly or through the use of an allowance account. Finance leases are recognized as assets and liabilities in the statement of financial position in amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. Depreciation (Depreciation) is the systematic distribution of the depreciable amount of an asset over its useful life.
The amount of a provision is the best estimate of the expenditure expected to be necessary to settle the current obligation at the reporting date. It is probable that the economic benefits or service potential associated with the transaction will flow to the entity and the costs incurred or to be incurred in connection with the transaction can be reliably measured. Net revenue is measured at the fair value of the consideration received or receivable less trade discounts and volume discounts.
Service revenue is recognized based on the stage of completion of the transaction at the reporting date. The municipality assesses the degree of certainty associated with the flow of future economic benefits or service potential based on the available evidence. Other grants and donations are recognized as revenue when:. it is probable that the economic benefits or service potential of the transaction will flow to the municipality; the amount of the proceeds can be determined reliably; And. to the extent that any restrictions associated with the grant are met.
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. None of these GRAP standards had an effect on the financial position of the municipality.
Consumer debtors Gross balances
Cash and cash equivalents Cash and cash equivalents consist of
Investment property
Property, plant and equipment
Notes to the Annual Financial Statements
Property, plant and equipment (continued) Reconciliation of property, plant and equipment - 2013
Intangible assets
Interest in joint ventures
Investments Residual interest at cost
Creditors
Long term liabilities uThukela Water Pty Ltd
All councilors and employees belong to the following funds within the Community Municipal Pension Fund of Natal, which provides pension benefits to such employees. In accordance with the regulations applicable to the Fund and in accordance with Section 16 of the Pension Fund Act, 1956 (Act No. 24 of 196), the financial position of the Fund shall be examined and reported by the Valuator at intervals not exceeding three years. In practice, the Valuator carries out a statutory valuation every three years and an annual interim valuation.
Interim Fund Valuations as at March 31, 2006 and Memorandum Account Operations Report for the Year Ended March 31, 2006.
Other NDR
Interest income
Each is provided with an office and secretarial support at the expense of the Council. The speaker has one full-time bodyguard and the accounting officer has one full-time bodyguard.
Agency fees
Depreciation and amortisation
Interest expense
The municipality rents 10 copiers from Xerox, and monthly rental expenses are included in the income statement. No agreements have been entered into that the contingent net liability pursuant to operational leasing is secured by the lessor's ownership of the leased asset. Public Provincial and National Finance of the Municipality of Endumeni serving a notice pursuant to section 41 (2) of the Intergovernmental Relations Framework Act 13 of 2005 regarding Umzinyathi's failure to facilitate the transfer of assets and liabilities to the value of R 6 626 612 by way of outstanding municipal outstanding amount of Rendumi. on behalf of Umzinyathi DM for water service function.
Umzinyathi District Municipality has always been ready to resolve this issue but was waiting for supporting documents from Endumeni Municipality for their request which was submitted on 22nd October 2010. Umzinyathi District Municipality decided to investigate and verify the request from Endumeni Municipality and submit final findings to EXCO for approval. The issue has been resolved with the Municipality of Endumeni, which has not yet submitted a written confirmation of the settlement of the account.
Fruitless and wasteful expenditure
Irregular expenditure
The above appointments were made in accordance with Article 32 and were approved by the Accounting Officer and recently endorsed by the Council. The above appointments were made in accordance with Article 36 and were approved by the Accounting Officer and recently endorsed by the Council. Appointment of Expectra 868 NPC was made through a presentation to EXCO and the Board and they were appointed to be the executive agents for primary health insurance for the district municipality of internally and externally funded programs.
Solar Charge Pty Ltd was appointed on the same basis as above to carry out a solar energy project at no cost to the council. The municipality's liquidity risk is a result of the funds available to cover future obligations. The municipality manages the liquidity risk through an ongoing review of future engagements and credit facilities.
Credit risk mainly consists of cash deposits, cash equivalents, derivative financial instruments and trade receivables. Otherwise, in the absence of an independent rating, risk control assesses the customer's credit quality taking into account its financial position, past experience and other factors.
Going concern
Events after the reporting date
During the 2004/05 financial year the water and sanitation assets were transferred to uThukela Water (Pty) Ltd by way of a thirty year WSP agreement entered into by uThukela Water (Pty) Ltd and the three WSAs are uMzinyathi District Municipality, Amajuba District Municipality and Newcastle Local Municipality. From 1 July 2012, Umzinyathi District Municipality took over the billing services and with effect from 1 July 2013, assets and liabilities of Uthukela Water will be transferred to Umzinyathi District Municipality in accordance with the MEC of Co-operative. Other rural areas have no water infrastructure, so water tankers deliver water to them, and these tankers get water from our facilities and collection points in our water network.
Illegal connections in most of our rural areas have a major impact on unmetered water, as it is mostly unmetered.
COGTA Intervention
