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CONSOLIDATED ANNUAL FINANCIAL Making progress possible. Together. STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 WELL RUN CITY UNAUDITED Contents Financial information 1 Reporting entity’s mandate 2 Approval of the annual financial statements n/a Report of the Auditor-General 7 General information Financial statements and policy 11 Significant accounting policies 24 Statement of financial position 25 Statement of financial performance 26 Statement of changes in net assets 27 Cash flow statement 28 Statement of comparison of budget and actual amounts – economic entity 30 Statement of comparison of budget and actual amounts – Municipality of Cape Town 32 Notes to the annual financial statements for the year ended 30 June 2020 Annexures 91 A: Schedule of external borrowings 92 B: Analysis of property, plant and equipment and other assets – economic entity 94 B: Analysis of property, plant and equipment and other assets – Municipality of Cape 96 C: Disclosure of bank accounts in terms of section 125(2)(a) of the MFMA 98 D: Segmental statement of financial performance 99 E: Disclosure of grants and subsidies in terms of section 123 of the MFMA 104 F: Disclosure of grants in terms of section 14(4)(a) of the DORA 2019 105 G: Appropriation statement (reconciliation: budget and in-year performance) in terms of National Treasury (NT), MFMA circular no. 67 106 H: Bids awarded to family of employees in service of the State – 2019 Appendix A 109 Abbreviations used in these financial statements City of Cape Town CONSOLIDATES ANNUAL FINANCIAL STATEMENTS 2020 City of Cape Town CONSOLIDATES ANNUAL FINANCIAL STATEMENTS 2020 REPORTING ENTITY’S MANDATE The City of Cape Town is a high-capacity, category A local authority established in terms of section 151 of the Constitution of the Republic of South Africa Act 108 of 1996. The principal activities of the City are to:  provide democratic and accountable government to the local communities;  ensure sustainable service delivery to communities;  promote social and economic development;  promote a safe and healthy environment; and  encourage the involvement of communities and community organisations in the matters of local government. The Entity’s operations are governed by the Local Government: Municipal Structures Act 117 of 1998, the Local Government: Municipal Systems Act 32 of 2000, the Local Government: Municipal Finance Management Act 56 of 2003, and various other acts and regulations. 1 Consolidated annual financial statements 2020 APPROVAL OF THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS I am responsible for the preparation of these consolidated annual financial statements for the year ended 30 June 2020, as set out on pages 9 to 108 in terms of section 126(1) of the Local Government: Municipal Finance Management Act 56 of 2003, and have accordingly signed the statements on behalf of the City. I certify that the salaries, allowances and benefits of councillors as disclosed in note 39.2.2 to these consolidated annual financial statements are within the upper limits of the framework envisaged in section 219 of the Constitution of the Republic of South Africa Act 108 of 1996, read with the Remuneration of Public Office Bearers Act 20 of 1998, and the Minister of Provincial and Local Government’s determination in accordance with this Act. Lungelo Mbandazayo City Manager September 2020 2 Consolidated annual financial statements 2020 REPORT OF THE AUDITOR-GENERAL TO THE WESTERN CAPE PROVINCIAL PARLIAMENT AND THE COUNCIL ON CITY OF CAPE TOWN Report on the audit of the consolidated and separate financial statements 3 Consolidated annual financial statements 2020 REPORT OF THE AUDITOR-GENERAL (continued) TO THE WESTERN CAPE PROVINCIAL PARLIAMENT AND THE COUNCIL ON CITY OF CAPE TOWN Report on the audit of the consolidated and separate financial statements (continued) 4 Consolidated annual financial statements 2020 REPORT OF THE AUDITOR-GENERAL (continued) TO THE WESTERN CAPE PROVINCIAL PARLIAMENT AND THE COUNCIL ON CITY OF CAPE TOWN Report on the audit of the consolidated and separate financial statements (continued) 5 Consolidated annual financial statements 2020 REPORT OF THE AUDITOR-GENERAL (continued) TO THE WESTERN CAPE PROVINCIAL PARLIAMENT AND THE COUNCIL ON CITY OF CAPE TOWN Report on the audit of the consolidated and separate financial statements (continued) 6 Consolidated annual financial statements 2020 GENERAL INFORMATION BANKERS Nedbank Limited 135 Rivonia Campus 135 Rivonia Road Sandown Sandton 2196 PO Box 1144 Johannesburg 2000 AUDITORS The Auditor-General of South Africa No 17 Park Lane Building Park Lane Century City 7441 Private Bag X1 Chempet 7442 REGISTERED OFFICE City of Cape Town 12 Hertzog Boulevard Cape Town 8001 PO Box 655 Cape Town 8000 7 Consolidated annual financial statements 2020