DC2 Cape Winelands AFS 2019-20 unaudited

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Unaudited Annual Financial Statements 2019/20
Cape Winelands District Municipality
Financial Statements for the year ended 30 June 2020
General Information
Legal form of entity Municipality (MFMA)
The Cape Winelands District Municipality is a district municipality
located in the Boland region of the Western Cape province of South
Africa and include the local municipalities of Witzenberg, Drakenstein,
Stellenbosch, Breede Valley and Langeberg (Municipal code: DC2)
Nature of business and principal activities The Municipality is a local authority that -
a) Ensures comprehensive and equitable Municipal Health Services
within the Cape Winelands;
b) Ensures co-ordination of multi-disciplinary and sectorial disaster
risk reduction through integrated institutional capacity for Disaster Risk
Management, Disaster Risk Assessment, Response and Recovery;
c) Provides effective planning and co-ordination of fire fighting
services, prevention activities and training services throughout the
Cape Winelands;
d) Facilitates environmentally sustainable economic development &
investment attraction as well as retention through the development and
management of strategic partnerships;
e) Facilitates skills development within the Cape Winelands District
Municipality by means of knowledge management and social
infrastructure investment;
f) Facilitates the creation of sustainable jobs within the Cape
Winelands through the provision and maintenance of economic
infrastructure;
g) Provides support and shared services to local municipalities to
facilitate economic development planning within the Cape Winelands;
h) Increases access to safe and efficient transport;
i) Develops integrated and sustainable human settlements;
j) Integrates service delivery for maximum impact;
k) Creates opportunities for growth and development in rural areas;
and
l) Empowers vulnerable groups, build human capital, invest in social
capital and rural development programmes.
Mayoral committee
Ald. (Dr) H VON SCHLICHT (MAYOR)
Ald. C MEYER (SPEAKER)
Cllr. D SWART (DEPUTY MAYOR)
Cllr. G.J CARINUS
Cllr. J.J DU PLESSIS
Cllr. L.W NIEHAUS
Cllr. A FLORENCE
Cllr. P.C RAMOKHABI
Cllr. J.D.F VAN ZYL
Cllr. D.D JOUBERT (RESIGN 31/10/2019)
Cllr. L LANDU (APPOINTED 31/10/2019)
Other Councillors Cllr. Z.L MASOKA
Cllr. C DAMENS
Cllr. X KALIPA
Cllr. M.M ADRIAANSE (RESIGNED 31/07/2018)
Cllr. J.S MOUTON
Cllr. E.S.C MATJAN
Cllr. A CROMBIE
Cllr. J.J VAN ROOYEN
Cllr. C STEYN
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Cape Winelands District Municipality
Financial Statements for the year ended 30 June 2020
General Information
Cllr. E QHANKQISO
Cllr. B.B NTSHINGILA
Cllr. W.M BLOM
Cllr. G.J FREDERICKS
Cllr. S.S MAGQAZANA
Cllr. D.R.A SNYDERS
Cllr. P HESS
Ald. J.W SCHUURMAN
Cllr. M.T KLAAS
Cllr. R DU TOIT
Cllr. L.N QOBA
Cllr. W VROLICK
Cllr. R.S NALUMANGO
Cllr. P DANIELS
Cllr. A.J SHIBILI
Cllr. C.F WILSKUT
Cllr. L.S SAMBOKWE
Cllr. N TETENA
Cllr. S.C RENS
Cllr. J SMIT - (APPOINTED 02/10/2018)
Cllr. N.D SAUERMAN - (APPOINTED 02/10/2018)
Cllr. M.N BUSHWANA (APPOINTED 31/07/2019)
Cllr. E GOUWS - (RESIGNED 31/07/2018))
Cllr. N.S LOUW - (RESIGNED 31/07/2018)
Cllr. D.D JOUBERT (APPOINTED 31/10/2019)
Cllr. P MARAN (RESIGNED 15/05/2019)
Cllr. L LANDU (RESIGN 31/10/2019)
Grading of local authority GRADE 4
MEDIUM CAPACITY
Municipal Manager H.F PRINS
Chief Financial Officer (CFO) F.A DU RAAN - GROENEWALD
Registered office 46 ALEXANDER STREET
STELLENBOSCH
7600
Postal address P.O.BOX 100
STELLENBOSCH
7599
Telephone [phone]
Bankers NEDBANK
Auditors AUDITOR GENERAL OF SOUTH AFRICA (AGSA)
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Cape Winelands District Municipality
Financial Statements for the year ended 30 June 2020
Index
The reports and statements set out below comprise of the financial statements presented to the council:
Page
Accounting Officer's Responsibilities and Approval 4
Statement of Financial Position 5
Statement of Financial Performance 6
Statement of Changes in Net Assets 7
Cash Flow Statement 8
Statement of Comparison of Budget and Actual Amounts 9 - 11
Accounting Policies 12 - 37
Notes to the Financial Statements 38 - 113
Appendixes:
Appendix A: Appropriation Statement 114
Appendix B: Benefits of business associates 120
IDP Integrated Development Plan
CRR Capital Replacement Reserve
LG SETA Local Government Sector Education and Training Authority
mSCOA municipal Standard Chart of Accounts
GRAP Generally Recognised Accounting Practice
PPPFA Preferential Procurement Policy Framework Act
PRMA Post Retirement Medical Aid
RRAMS Rural Roads Asset Management System
MPAC Municipal Public Accounts Committee
IPSAS International Public Sector Accounting Standards
Cllr Councillor
VAT Value-Added Tax
MFMA Municipal Finance Management Act
CPI Consumer Price Index
CWDM Cape Winelands District Municipality
MSA Municipal Systems Act
WCA Workmen's Compensation Assistance
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Cape Winelands District Municipality
Financial Statements for the year ended 30 June 2020
Statement of Financial Position as at 30 June 2020
Figures in Rand Note(s) 2020 2019
Restated*
Assets
Current Assets
Cash and cash equivalents 3 716 992 699 656 290 226
Other receivables from exchange transactions 4 26 075 197 30 021 232
Trade receivables from exchange transactions 5 74 781 34 770
Inventories 6 2 888 968 2 532 251
VAT receivable 7 1 441 403 -
Receivables from non-exchange transactions 8 313 530 73 254
Employee benefit asset 13 2 002 682 2 632 167
749 789 260 691 583 900
Non-Current Assets
Property, plant and equipment 9 158 436 891 159 842 506
Intangible assets 10 867 211 1 001 264
Employee benefit asset 13 5 430 459 14 008 329
164 734 561 174 852 099
Non-Current Assets 164 734 561 174 852 099
Current Assets 749 789 260 691 583 900
Total Assets 914 523 821 866 435 999
Liabilities
Current Liabilities
Unspent conditional grants and receipts 11 6 505 793 4 597 666
Payables from exchange transactions 12 8 220 682 4 557 152
VAT payable 39 - 51 497
Employee benefit obligation 13 34 655 570 29 414 165
Provisions 38 57 263 13 471
49 439 308 38 633 951
Non-Current Liabilities
Employee benefit obligation 13 136 261 501 145 267 952
Non-Current Liabilities 136 261 501 145 267 952
Current Liabilities 49 439 308 38 633 951
Total Liabilities 185 700 809 183 901 903
Assets 914 523 821 866 435 999
Liabilities (185 700 809) (183 901 903)
Net Assets 728 823 012 682 534 096
Accumulated surplus 14 728 823 012 682 534 096
* See Note 28
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Cape Winelands District Municipality
Financial Statements for the year ended 30 June 2020
Statement of Financial Performance
Figures in Rand Note(s) 2020 2019
Restated*
Revenue
Revenue from exchange transactions
Service charges 15 111 143 136 065
Rental of facilities and equipment 16 229 975 248 345
Roads services 17 106 276 009 108 552 545
Other income 18 1 507 951 3 389 329
Interest received - investment 19 55 405 905 54 293 664
Total revenue from exchange transactions 163 530 983 166 619 948
Revenue from non-exchange transactions
Transfer revenue
Government grants and subsidies 20 239 156 653 231 988 667
163 530 983 166 619 948
239 156 653 231 988 667
Total revenue 402 687 636 398 608 615
Expenditure
Employee related costs 22 (203 282 247) (179 039 248)
Remuneration of councillors 23 (12 610 029) (12 171 102)
Depreciation and amortisation 24 (8 508 351) (10 146 142)
Lease rentals on operating lease (271 040) (285 499)
Debt impairment 25 (50 593) (55 718)
Bad debt written off (162 507) -
Contracted services 41 (36 787 479) (43 484 511)
Transfers and Subsidies 40 (18 837 912) (11 423 783)
Loss on disposal of assets (581 218) (881 488)
Inventories losses/write-downs (35 439) (43 355)
General Expenses 26 (75 271 906) (88 764 882)
Total expenditure (356 398 721) (346 295 728)
Total revenue 402 687 636 398 608 615
Total expenditure (356 398 721) (346 295 728)
Surplus for the year 46 288 915 52 312 887
* See Note 28
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Cape Winelands District Municipality
Financial Statements for the year ended 30 June 2020
Statement of Changes in Net Assets
Accumulated Total net
Figures in Rand surplus assets
Opening balance as previously reported 624 329 795 624 329 795
Correction of errors 5 891 414 5 891 414
Balance at 01 July 2018 as restated* 630 221 209 630 221 209
Changes in net assets
Surplus previous year (2018/2019) 52 312 887 52 312 887
Restated surplus 2018/2019 52 312 887 52 312 887
Restated* Balance at 01 July 2019 682 534 097 682 534 097
Changes in net assets
Surplus for the year 46 288 915 46 288 915
Total changes 46 288 915 46 288 915
Balance at 30 June 2020 728 823 012 728 823 012
Note(s) 14
* See Note 28
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Cape Winelands District Municipality
Financial Statements for the year ended 30 June 2020
Cash Flow Statement
Figures in Rand Note(s) 2020 2019
Restated*
Cash flows from operating activities
Receipts
Sale of goods and services 106 624 146 111 197 027
Grants 239 156 653 231 988 667
Interest income 58 957 387 53 964 794
404 738 186 397 150 488
Payments
Employee costs (197 879 243) (182 881 014)
Suppliers (125 996 541) (147 879 236)
Other payments: Remuneration to Councillors (12 610 029) (12 171 102)
(336 485 813) (342 931 352)
Total receipts 404 738 186 397 150 488
Total payments (336 485 813) (342 931 352)
Net cash flows from operating activities 29 68 252 373 54 219 136
Cash flows from investing activities
Purchase of property, plant and equipment 9 (7 572 770) (13 898 546)
Proceeds from sale of property, plant and equipment 9 40 870 198 890
Purchase of intangible assets 10 (18 000) (263 312)
Net cash flows from investing activities (7 549 900) (13 962 968)
Net increase/(decrease) in cash and cash equivalents 60 702 473 40 256 168
Cash and cash equivalents at the beginning of the year 656 290 226 616 034 060
Cash and cash equivalents at the end of the year 3 716 992 699 656 290 228
* See Note 28
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Cape Winelands District Municipality
Financial Statements for the year ended 30 June 2020
Statement of Comparison of Budget and Actual Amounts
Budget on Accrual Basis
Approved Adjustments Final Budget Actual amounts Difference Reference
budget on comparable between final
basis budget and
Figures in Rand actual
Statement of Financial Performance
Revenue
Revenue from exchange
transactions
Service charges 200 000 - 200 000 111 143 (88 857) Note 46
Rental of facilities and equipment 240 000 - 240 000 229 975 (10 025) Note 46
Roads services 125 524 743 - 125 524 743 106 276 009 (19 248 734) Note 46
Other income 1 863 990 - 1 863 990 1 507 951 (356 039) Note 46
Interest received - investment 56 500 000 - 56 500 000 55 405 905 (1 094 095) Note 46
Total revenue from exchange 184 328 733 - 184 328 733 163 530 983 (20 797 750)
transactions
Revenue from non-exchange
transactions
Transfer revenue
Government grants and subsidies 244 903 703 - 244 903 703 239 156 653 (5 747 050) Note 46
Expenditure
Employee related costs (226 300 373) (329 787) (226 630 160) (203 282 247) 23 347 913 Note 46
Remuneration of councillors (13 322 726) - (13 322 726) (12 610 029) 712 697 Note 46
Depreciation and amortisation (11 941 842) (34 690) (11 976 532) (8 508 351) 3 468 181 Note 46
Lease rentals on operating lease (1 025 000) - (1 025 000) (271 040) 753 960 Note 46
Debt Impairment (20 000) (213 150) (233 150) (50 593) 182 557 Note 46
Bad debt written off (998 100) - (998 100) (162 507) 835 593 Note 46
Contracted Services (52 141 971) (86 362) (52 228 333) (36 787 479) 15 440 854 Note 46
Transfers and Subsidies (20 617 637) (254 210) (20 871 847) (18 837 912) 2 033 935 Note 46
General expenses (95 420 511) 1 593 008 (93 827 503) (75 271 906) 18 555 597 Note 46
Total expenditure (421 788 160) 674 809 (421 113 351) (355 782 064) 65 331 287
Operating surplus 7 444 276 674 809 8 119 085 46 905 572 38 786 487
Loss on disposal of assets (196 610) (639 309) (835 919) (581 218) 254 701 Note 46
Inventories losses/write-downs - (35 500) (35 500) (35 439) 61 Note 46
(196 610) (674 809) (871 419) (616 657) 254 762
Surplus 7 247 666 - 7 247 666 46 288 915 39 041 249
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