MUNICIPALITY
[These financial statements have not been audited]
FINANCIAL STATEMENTS
30 JUNE 2014
Contents Page
1 2 3 4 5 6 Statement of comparison of budget and actual amounts - Statement
of financial position 7 - 8
Statement of comparison of budget and actual amounts - Statement
of financial performance 9 - 10
Statement of comparison of budget and actual amounts - Cash
flow statement 11 - 12
13 - 41 41 - 64
APPENDIXES - Unaudited
A Schedule of External Loans - Appendix B 65
B Segmental Statement of Financial Performance - Appendix D 66 C Disclosure of Grants and Subsidies In Terms of Section 123 of 67
MFMA, 56 of 2003 - Appendix E
D Property Plant & Equipment 68 - 69
Index
General Information
Approval of the Financial Statements
Notes to the Financial Statements Statement of Financial Position Statement of Financial Performance Statement of Changes In Net Assets Cash Flow Statement
Accounting Policies
NATURE OF BUSINESS
COUNTRY OF ORIGIN AND LEGAL FORM
JURISDICTION
Elliot Cala
MUNICIPAL MANAGER Mr T Samuel
CHIEF FINANCIAL OFFICER Mr P Steyn
REGISTERED OFFICE
Erf 5556, Umthatha Road, Cala, 5455
AUDITORS
Office of the Auditor General (EC)
PRINCIPLE BANKERS First National Bank, Elliot
RELEVANT LEGISLATION
Municipal Finance Management Act (Act no 56 of 2003) Division of Revenue Act
The Income Tax Act Value Added Tax Act
Municipal Structures Act (Act no 117 of 1998) Municipal Systems Act (Act no 32 of 2000)
Municipal Planning and Performance Management Regulations Water Services Act (Act no 108 of 1997)
Housing Act (Act no 107 of 1997)
Municipal Property Rates Act (Act no 6 of 2004) Electricity Act (Act no 41 of 1987)
Skills Development Levies Act (Act no 9 of 1999) Employment Equity Act (Act no 55 of 1998) Unemployment Insurance Act (Act no 30 of 1966) Basic Conditions of Employment Act (Act no 75 of 1997) Supply Chain Management Regulations, 2005
Collective Agreements Infrastructure Grants SALBC Leave Regulations
The SAKHISIZWE Municipality includes the following areas:
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 GENERAL INFORMATION
SAKHISIZWE Municipality is a grade 1 local municipality performing the functions as set out in the Constitution. (Act no 105 of 1996)
South African Category B Municipality (Local Municipality) as defined by the Municipal Structures Act. (Act no 117 of 1998)
Notes 2014 2013
R R
(Actual) (Restated)
NET ASSETS AND LIABILITIES
Net Assets 125 723 178 136 233 388
Accumulated Surplus 125 723 178 136 233 388
Non-Current Liabilities 6 311 921 8 058 339
Long-term Liabilities 2 1 719 806 3 549 861
Employee benefits 3 1 994 612 1 952 958
Non-Current Provisions 4 2 597 503 2 555 520
Current Liabilities 23 746 568 16 889 454
Consumer Deposits 5 141 752 358 823
Current Employee benefits 6 (133 813) 367 877
Provisions 7 420 211 1 659 935
Payables from exchange transactions 8 10 871 207 7 792 539 Unspent Conditional Government Grants and Receipts 9 198 146 2 646 604
Taxes 10.1 9 276 474 1 575 338
Current Portion of Long-term Liabilities 2 2 972 591 2 488 338 Total Net Assets and Liabilities 155 781 667 161 181 181 ASSETS
Non-Current Assets 144 193 112 135 901 507
Property, Plant and Equipment 11 109 792 800 101 311 833
Investment Property 12 34 400 312 34 589 674
Current Assets 11 588 555 25 279 674
Inventory 13 63 815 32 603
Receivables from exchange transactions 14 7 292 260 5 822 623 Receivables from non-exchange transactions 15 2 142 223 6 427 598
Cash and Cash Equivalents 16 2 090 257 12 996 850
Total Assets 155 781 667 161 181 181
2014 2013
Notes (Actual) (Restated)
R R
REVENUE
Revenue from Non-exchange Transactions 69 904 559 63 653 385
Taxation Revenue 4 432 300 3 683 699
Property taxes 17 4 432 300 3 683 699
Transfer Revenue 65 472 259 59 969 686
Government Grants and Subsidies - Capital 18 26 636 259 26 942 686 Government Grants and Subsidies - Operating 18 38 836 000 33 027 000 Revenue from Exchange Transactions 38 853 288 30 830 480
Service Charges 19 17 738 832 11 934 152
Interest Earned - external investments 497 045 530 330 Interest Earned - outstanding debtors 5 258 995 4 238 688
Other Income 20 15 358 416 14 127 310
Total Revenue 108 757 847 94 483 865
EXPENDITURE
Employee related costs 21 34 385 732 33 569 255
Remuneration of Councillors 22 5 349 117 4 893 102
Debt Impairment 23 26 160 450 6 804 411
Depreciation and Amortisation 24 10 913 485 8 951 455
Repairs and Maintenance 5 165 892 2 084 173
Actuarial losses 3 (18 720) 98 380
Finance Charges 26 674 538 1 102 656
Bulk Purchases 27 6 321 512 6 038 685
Grants and Subsidies 28 2 755 380 2 959 222
General Expenses 29 27 828 490 16 017 779
Loss/ (profit) on disposal of Property,Plant and Equipment (267 820) -
Total Expenditure 119 268 056 82 519 118
NET SURPLUS/(DEFICIT) FOR THE YEAR (10 510 209) 11 964 747
Accu ulated Total Sur lus
(De icit)
Note R R
Balance at 1 JULY 2012 as previously reported 124 410 870 124 410 870 Ad ust ents
Prior year ad ustments in 2012 (142 230) (142 230)
Restated Balance at 1 JULY 2012 124 268 640 124 268 640
Prior year ad ustments in 2013 2 212 842 2 212 842
Net Surplus for the year 9 751 905 9 751 905
Balance at 30 JUNE 2013 136 233 388 136 233 388
Net Deficit for the year (10 510 209) (10 510 209)
Balance at 30 JUNE 2014 125 723 178 125 723 178
30 JUNE 2014 30 JUNE 2013
Notes R R
CASH FLOW FROM OPERATIN ACTI ITIES
Recei ts 110 853 152 87 870 490
Ratepayers and other 23 143 636 16 996 342
Government 63 023 801 54 238 344
Interest 5 258 995 4 238 688
ther receipts 19 426 720 12 397 116
Pa ents 110 418 788 (68 890 829)
Employee costs 39 361 473 (38 636 003)
Suppliers costs 30 875 946 (13 923 789)
inance charges 26 1 262 416 (208 893)
ther payments 38 918 953 (16 122 144)
Cas enerated b o erations 32 10 089 613 18 979 661 CASH FLOW FROM IN ESTIN ACTI ITIES
Purchase of Property, Plant and Equipment 11 (19 394 452) (15 101 597) Purchase of Investment property 189 362 - Proceeds on Disposal of ixed Assets (267 820) -
Net Cas ro In estin Acti ities (19 472 910) (15 101 597) CASH FLOW FROM FINANCIN ACTI ITIES
inance lease payments (1 345 802) (2 202 685)
Interest income 497 045 530 330
inance costs (674 538) (952 140)
Net Cas ro Financin Acti ities (1 523 295) (2 624 495) NET INCREASE IN CASH AND CASH
E UI ALENTS (10 906 592) 1 253 569
Cash and Cash Equivalents at the beginning of the year 12 996 850 11 743 281 Cash and Cash Equivalents at the end of the year 33 2 090 257 12 996 850 NET INCREASE IN CASH AND CASH
E UI ALENTS (10 906 593) 1 253 569
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2014
201420142014 RRR (Actual)(Final Budet)(ariance)Explanations for material variances ETS ent assets Cash838 000 (838 000) Call investment deposits2 090 257 24 210 000 (22 119 743) Consumer debtors3 340 000 (3 340 000) ther Receivables166 000 (166 000) Current portion of long-term receivables- - Inventory63 815 76 000 (12 185) l current assets2 154 072 28 630 000 (26 475 928) current assets Long-term receivables9 434 483 - 9 434 483 Investments- - Investment property34 400 312 34 590 000 (189 688) Property, plant and equipment109 792 800 118 886 000 (9 093 200) iological Assets- - Intangible Assets- - eritage Assets- - l non current assets153 627 595 153 476 000 151 595 AL ASSETS155 781 667 182 106 000 (26 324 333) ILITIES ent liabilities an overdraft- - orroing1 719 806 6 038 000 (4 318 194) Consumer deposits141 752 708 000 (566 248) Trade and other payables20 345 827 6 376 000 13 969 827 Provisions and Employeeenefits2 883 901 5 508 000 (2 624 099) l current liabilities25 091 286 18 630 000 6 461 286 current liabilities orroing2 972 591 - 2 972 591 Provisions and Employeeenefits1 994 612 4 974 000 (2 979 388) l non current liabilities4 967 203 4 974 000 (6 797) AL LIABILITIES30 058 489 23 604 000 6 454 489 ASSETS125 723 178 158 502 000 (32 778 822) MUNITY WEALTH Accumulated Surplus(Deficit)125 723 178 158 502 000 (32 778 822) Reserves- - AL COMMUNITY WEALTHEUITY125 723 178 158 502 000 (32 778 822) SAKHISIZWE LOCAL MUNICIPALITY STATEMENT OF COMPARISON OF BUDET AND ACTUAL A COMPARISON OF ACTUAL FIURES TO FINAL BUD
STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2014 Page 7
201420142014 RRR (Aroed Budet)(Adustents)(Final Buet)Explanations for material adjustments ETS ent assets Cash- 838 000 838 000 Call investment deposits8 440 000 15 770 000 24 210 000 Consumer debtors6 511 000 (3 171 000) 3 340 000 ther Receivables6 554 000 (6 388 000) 166 000 Current portion of long-term receivables3 762 000 (3 762 000) - Inventory- 76 000 76 000 l current assets25 267 000 3 363 000 28 630 000 current assets Long-term receivables- - - Investments- - - Investment property- 34 590 000 34 590 000 Property, plant and equipment105 374 000 13 512 000 118 886 000 iological Assets- - - Intangible Assets- - - eritage Assets- - - l non current assets105 374 000 48 102 000 153 476 000 AL ASSETS130 641 000 51 465 000 182 106 000 ILITIES ent liabilities an overdraft- - - orroing8 000 000 (1 962 000) 6 038 000 Consumer deposits350 000 358 000 708 000 Trade and other payables19 005 000 (12 629 000) 6 376 000 Provisions and Employeeenefits- 5 508 000 5 508 000 l current liabilities27 355 000 (8 725 000) 18 630 000 current liabilities orroing- - - Provisions and Employeeenefits2 666 000 2 308 000 4 974 000 l non current liabilities2 666 000 2 308 000 4 974 000 AL LIABILITIES30 021 000 (6 417 000) 23 604 000 ASSETS100 620 000 57 882 000 158 502 000 MUNITY WEALTH Accumulated Surplus(Deficit)100 621 000 57 881 000 158 502 000 Reserves- - - AL COMMUNITY WEALTHEUITY100 621 000 57 881 000 158 502 000 STATEMENT OF FINANCIAL POSITION AT 30 JUNE 20 ADJUSTMENTS TO APPROED BUDET
SAKHISIZWE LOCAL MUNICIPALITY STATEMENT OF COMPARISON OF BUDET AND ACTUAL A Page 8
