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KZN216 Ray Nkonyen! Municipality ‘Annual nancial Samos forthe yesrended 90 June 2020 Index “The pis ed attemrts set ou tala corgrias he ennual Maal seer prazried 0 provincia Acaurting Offers Responses ond Aprons a Ale Comitee Repent 4 ‘tote of Financial Postin 6 Sister af Fnsnll Peformance 7 Stetarvant of Changes i Net Assets e ‘Gath Flow Statement 8 ‘sutementot Carparon of Butget ana Bul Arnau wn Aesantng Pla 12-98 Notes to tne Annual Financ Storer 38-90 Abbreviations cow \Companeaton fe Qocupsonl ris and Dis ork Capt! Raplacoment Rave ssa Develaerenl Bank of Sau Aca ree ‘Gaver Rocogrisad Accounting Precice Hor eutng Deven id Pees Intnl Pub Seto Aecauting Standa mstoe ‘heigl Standard Chor of Acccunts wes Marat ofthe Executive Gouna A, Munkipal Farce Management Act ms uncpsl inraetucture Grae (rovouly CHIP) wos Inerted Urban Development rat HZN216 Rey Nkenyent ituntoipeltty ‘Anes Fnence Sotacets fr re yuar wise 9 ra 2020 ‘Aceounting Offeer's Resporsisilitios ond Approval she evening oon sees y Uae nanos Mareen AS Sf 29), On Fen, To meri, fe ese St En tea eyo ee et ST Sr ret enn roe eocrat ee ncarmly song oe YRS I ae she erm ari ian te non paces aus wn Stead met SARTO ASAE egies ests, gamncs en seem ened ie Acoisng Sanscs Ores vcr france shen ce apa pin apron esting pelos contr slat ssp {caer a rodenuagne send ane whe pam een: sorodgea ot ti tse marae of a mem TE eT ci Teg pene en sop ace ment pmeteng waned OME I uel ee hes tan ena ese avant, scot et 20 a rate okie my nara et epee SET ret epee ra menage ron rewind oan te Tr enocuning ote w of te ein wera on enteration aad expansion Per The ezrin oon 0, evn etn ws Fr MEE ve eceneany nh ind uly cash om aca ee 12.9 a EEO ‘eg ecm en eer aa esp No BOE: INE ARPS Mase aan anima ore sere BANE sre uae ens cnetant ie cant an a kag nshndeg ape Tes Tes mini nels dent aa tea wey a gpa faz a ane tm NC arc ere om PE yaa ern etary sae ef eA vroign nex fic fmaiempanite Or Hanah inca nae Sere? ‘Senibiantye oral ate. “Te ena ranean ae soto gage wh het baa rece at Be gay caer D8 WE FPN, Treseeae aden cower sab oro were aor Pray Me eae po [oeundeg Omear {2ZN216 Ray Nkonyeni Municipallty ‘Actual ence tamer er i year end 20 June 2020 Audit Committee Report \Woare pissed e present our rear oe Manca yar aod 30 June 2020, Audit commitee mambars and attendance ‘The suit commitna conte cfthe members les hevaundor and should mst 4 tines gar anrum a ps approve ‘meat cares, Duta ho ourent year 4 mbar of masta: wars ha Name of member Nanber of meetings tended Iie Preston (tm Craton) 2 YCanract Epledin Dacenbes 2016) Mezzuu 2 Ma knundo 2 He 8 (Chatpareon 2 penatd ae chaerson nay 200) Autit sommes responaiitty “snout comeitaa repo that has carp wih is eponstltos ering en soon 1862) ofthe MFA, ‘Tha aut commidee step rena mat: Nae acoptad apprprian oral ts ofreferrce a Ns sul canes chalet. Iie regulis Rs eosin conplonce wh is chartor and has sitharged ss eeeencsiea ae sorted hace ‘a ttectvenaae of Internal control “The system of iteal corrals applied by ne municipal over nancial and thk menagerent is atecive, efile ant ‘Terapersi inne fh fa PMA, intra! Aust provides the aust eemytas aid manacerant wh aeararce ht ‘raonal sonra ara approyte arid efecve, Tif ahs by mea othe fk management proce, sb well he lasrafcenon of corectve achowe and tgpested enarcerets fe Ua corte ana process. From Go various reser: fins intomal Autre, ne Aust Repo Vo ars! Panda stares, end the marwgereet report of Ie Auer ‘Ganural Gout Afton, Rae ole tale mares were fopeted tet edeas ery aloria Setaences inte gst Of freal contol et an detatone tweton. Acernely, wo can feet tha we sete OF tetra oy hana ‘opotine forthe peted naa oulotes fier and ef “a aud conan is sas wie coment and qusty of meh and quaraty ports prepared ad ised by the -Aacouning Ocer he murclpaly during te Yaar under rove. Evsluation of annual Maanckl statamets ‘The audtcommitee es TN ein ai aacussed the uraudtd annul finance tetera to vein nth annual report wit ‘ador Genel and te Aconuning io + relewos changas in accourng pales wniéproto; 4 taewea te artes corolonce wt legs! replatary provisions. Internal uct “Tha sud cmeites i vai that he mtemsl sus Runa Ts operaing seca and that ita addressed the ks pen: athe municaly 30d aus Ausne.Geparal of South Aca “The au comnts Pas me ath tne Auator-Genara af South Affea to ensue hat nee axe no unresowed ues, ‘Enviparson of tie Audi Comics KZN216 Ray Nkonyen! Municipality ‘Arnal Paria Statements forthe yee ended SC une 200 ‘Statement of Financial Position az at 30 June 2020 Figuresin Rand Notes) 2020 ots Recta Aosets Ccurnt Ansa tree 2 atavsse «rosa Recta m axcrange danas” east radazear sete? Recoil fam nochange barges” oer wsesio sas 13/3072 Vat rocetle "2 “wesieser 7825278 Lonrecane GO Near aere9 eens eat nia 15 orsasend _evesosse Saber Tai _aaa TO HE Non Comer Arse Invesnert pope Ss mtrceD ser 75180 Proper pt and eatpmont sort ersear 1548 105773 igo aete 5 ea ana Haan as 8 asioae reser 7 ravines TaN ee Fatt Brean a7 74S zo abies ‘Sumort Lieites Tangri an 14 aeroses ees 80 Fina eae sb gston 18 450060 ° Poyaties tor euctange ronactone 18 ‘weseee59 aed ‘onsuner eps 4 ‘Sneon2as “2ostessr Employ tant cbigton 1 aortas 48500) Unspent cndoral rant an recite 1 serere st asscin enone zo “saznaet_“2503507 a Banco oe ia 3088 Non-caret bt Lonptemnen aise «e058 Finan ast bition "zoos ° Empoyes brat eigen “8 marmnere ses Prova messes 086 16s . at ata BE Toa abiiies reve e0e 934 182 07 Ho Aezate THESE Teer ‘evunuld are rage 5021712688 724 hn aan of 11598 atop ogee cena aaa pro yearn mesa os ag miler tn Bae Sete stow btedcrleGufe separ seamen ste hone tn pat oe ttesa he ManeHn 8 emia Tee ae rapes tu ron el fb ree ean an eonalet tn ‘Mipace sine tnon fe ow ete ene sara tae bre Wari ie 20 Marc yar ane ‘connor oni ch ot On er waar wc ur cs eb 9 Foe KZN216 Ray Nkonyeni Municipality cua Fanci Steet fr tha yeor ended 3¢ June 2020 Statement of Changes In Net Assets - ‘ecumulated Toil na Figuresin Rane ups assels Opening bxence as peviousy epone: 41870823001 1 670625981 adware Gahacton ater. 7 (92286397) 2288 87) Balance at 01 Jay 018 as ect Tach 258 aa 1 648 25 sa Changes n nai aseais ‘Aedes agers snes ‘Netcom Doses) coated ream nat aaoats Ford Surplus forthe your eae zr sage2 23 “Tard recogneea income and expewrasermeyest ‘4st cB 84301 o8D Total eneroes ‘sessicae 64381 60 ‘Opening Elance ws wrevouny repared THD eaG 726 1 712 90072 ‘gucren Poor your edusrerts verre serra Restated Balance at 0% ly BOT@ ao reeted 4721 367 670 1721 367 670 hargesin rt sete Sips re yoo _ aerost2 26708712 Totalesaes 297057 25708712 Belanes at 90 Jone 2000 esr 3021 708 070582 ait) KZN216 Ray Nkonyeni Muni oval vera Sateen fre yor evded 30 June 2020 Statement of Comparison of Gudget and Actual Amounts Bot on Cath Bae : ‘Agoroved Adjustments FinalBodgst Actual —_GWierence Reference get amounts on eetveen tal Comperable budget and Figuesm Rand eis eeual Statement af Financial Parformance Revenue ‘Reanue from exchange ‘ranaaclione Servos charges 208-499 108 (fOesR 7m 187508.250 seze57o%0 (16702290) as erasing et aenices Jagan" ioggy $4b 002 oa 802) Rectal flies and agg ize 789M AU004BT seat saeTH0Z as euler Fret esau (aang rassrare zaseaco AUSEE 2709m1 EBs ean east Qeotase Gossess) 44BEM “aioe Is Ueenate and perite Dosis a0tdaer THHT9IS Be 44e 472 88074} Reavers ~ : sopoosens Moomass 45 Other income (role) eoassra (1650265) 24RERTO "SerONeO IBSOTI) 45 Imowetromfos-investment 4964708 wert) 4788788 gerazet (99602) 45 {oral vevene from exchange 274859327 {8 220098) 65278 a2 990090 S25 Revenue rom non exchange “Teraion revenue Property tee. 4adesg 70 taasasor ADNarOrT qoset7as TESTI ww Luseraoe ar Permits en 30% 38000 He ‘eng “Tranefer every Gowrrentgarts&sibsides water (12 G4BBNIS MERHENTAS sscsase1 GIST as - : * "gest es Y0sRI ase as Fines, Pent ssoztzes 4404702 77s atarzme CHBRER ES) As (ther ante reverua 4 07 8000 (420) 10716202 conven OSTEO aS ‘Total avenue rom nom BHT G70 108 24MA7 ps SIT FITET 706370 950. (11484185) Shure lectins Total reverie THT 49 4am ess 1 7eASE ER TIRE TORS _OoRETOR Experian Peteonn (os2 850000) g7 st rar} (10981 BIN) oA GOT 20m) CSI AS Remuneration of councilors 23822 576) = "gass297s sera 10) | ET) 8 Depron ane emoestan (48850000) 20000000; (63480000) (an ss aea) 22605309) 45 Imgaant cee Ravers of (7000 00D) O Nreeoaen “pease 718 aS toparente Finpnoe co sooo (tigoa1) eteOON crete MAzAI) 4s mee ens on cperang lease (20499528) | (S258607: 1760526) 2.42975) 9sVe31 as Dott inpaiment ‘co can; = (oan 00m Gesez eRe) ABEKDEOR ‘Be debs orton off ‘sa es8) 1 ieupere) cian o61 337 (188062675) Bulk archos (ace 169.210), 1 ootes 210) (ror axe 10 TEBE s Contacte Servos {oe o20 sac) (29957043) (82055028) (Ja5-0a: Gus) TOV ITB as ‘Transfers nna Supe (Cas0700) | 2IcsBan CTNAA7 962) | a taneas) 26H EZ aS Gone! Exparase (aoa ten sSavrecr GTSET ee cpzeTESeE) MA ISEEE as osetexpendiure ‘018 16 450) (OY OFF DIS OVS oar ATT 10H TAO BTA) (1410s 72) ‘Gpenamg teh TaR7ESES (AT 024-694) 10TH SET — THB) (104 257-470) 0 KZN216 Ray Nkonysni Municipality ‘rma Finan Solera otha yer and 39 June 2020 Accounting Policies “4 Presentation of Antu Fnanetl Stateranta ‘Tha annusl Snondal twamanta have ben propared in aeorugnce ath she Standaris of Ganeraly Recognised eso Praches (GRAD) edad by fe Accauning, Senaerds Soars ty accordance win Seon 1223) of be tonipal Pitance lanegaront AZ (el 55 of 2003). “Teese emul fnncialsients nave been prepared on an accrual basis of aocguaing and ae acerdarce with ‘evil comatose aboe rane estate sense. Thay mo sig oo es ‘A sunmeny of he slncane anon polit, whl have boan sone sty app In he prepa thes Fratelal eeterens, ora dosed Keon ‘Teas asoartng polls ate coraleta wt he provous peo 4.4 Prepentation sunny Inese ermal Tene sstemarte ars precaind in Soul Afican Rand, which fe the funtonal cuvtney of me cnunicpai. 1.2. Going concam assumption hess exal Manel! statemants have been presared based on Pe sxpetzton cha the manic lease 0 perm vs going conoain er ataastthe net 12 mene 1 watartaly all anieslors cc minstatamanleoftems aye mera ey coud dually oF coke, Intuanoe the decisions Srassesamens af ueors made on f= nade te nerd sutra. Meter deperde on te pati or ac ofthe ‘Shawn ov Maslin judser ip be suraunanig srrvalances. The Palute or ae otha Inorraion Her. cr 8 ‘ambition bath, eu be fe cetaraning factor stewing whetna’ an omision or mestaiaet czultinluance decions of wets, and so be metal requires otaertion af ha characeres of hove Woe, Tha Framework for be Plepraten ard Presetaton of Financ Steet sates thal veers avs sasunettoveve a Teaaoveee wnonedge of guvammont. fe bec, aceouring and = ‘ilngngos teay Be ifamrain wh reeaonate Slipore, Theta, he azsouarrt hae In JoeCUMC NOW Use ‘eh uch ater cous assay Bo expected bs fuenced neki ard evel dossions. 1.4. Stynticant Judgements snd goures of estmatlon uncortaniy In propang the annual mand satamons, managenent Is required o make sebmetos and axsunphans tht aoc Grants rebmserad tthe annisl nancial sateen ‘an felted cisdastos, oe of 6vae iforbsion ard the pple ot udgemarc fe inheert'@ the formation ©” seman. Acel ozs In the Kure coud ier fom these Bhat whkh may oe materia tote Sorua rail aaron, Signe ant udpements Inde ‘rade racarabtes| “Te murldpaityaseesen its ode aotecanfrimpaiment aire end of seh epertng prod In dering nether Br imocirtort loss soudd bo ocorded nv eurpue Gelek. Oe supice makes juigomente 20 [0 whet Mate bearvebs das nacaing 8 mactrabe doorath nthe exit Aue cosh owe Rar 3 ane 06 Anpsimant wating “The secortale snaunto of cash-geneatng unis and inaicuel eats have boon dalariina) bate one high of Jthetruee csidiatene and far must Wet aa" sok Thea calulenore Peale We ce of estes snd Jssumptons, “Tha muriipally res and tet a cargng vain of ge when avons or changs in ctcurstansee sugges hat ne rye mount maf not be recoveace, asco ee teuped ato Kee! val fot whith lerhals ch flows are Feet intpendae of cach eve of oer asain oo Ties. Il Ham are nlealons at impale! nay hove tofuled estan are propre of expactes hr oan Twa for oath group of aus. Expected furs cath flows used {p dtanrine te vluc ues of ng saosa oe erent Unendain 9h cous atl hang ove be, KZN26 Ray Nkonyeni Municipality ‘usd Finacial Statements fer he yea" ended 29 une 2020 Accounting Pollcles 4.8 Property, pent and oqutprsr Property. plant no anésnet i angle norremontseee frig nigra ase) at te hal for use inthe Frobuctcn ar upp foods & aeroee, end tp oreo: fr sSMntetve Putpoes, and are expected fo Bc used LSbtag ve than one Petes ‘The costo a tan af propa, ant and enue racogrssa as an too whe: Te Sein probate tht Aare sootomle berate or ers pelea socitd wih th Mem wll Row to te rmunigpaliy ara + theca of he em san he raecaurerelaby Proper, ple an equpeant| “Tre cxet ofan fom of rpc, am an equmentia he purchat pce ane ar costsalrbLable ta reg ha ses 2 the touion raf condo nee or be copeble of opeoleg In Me arrer Iehded by management. Tod [Bocaunte and rebates se sect aisng at he cos. iniaty mensured at con, hers an aeetia angie thr. a nopexchange wanoacin, ts cet its Mr vas as at de of acquit, ‘weer an tom of sroplry, lant ara equipments ssquitd exchenge fr gon mnetay ste or rons aster 1Poarbinso er rnetry end nan-monelry ase, fe eet esque cinta eased tf vlue th cot, Whe ‘Sued es larval sa nt Cotes, Ps med cea the cary ng rho te sae) ve un When aleant compere of tart of proper plant and eaugerant have diirort use ues, thy re occu Toran aaparat ter az companers of propery. pant and equipment Costs rete cote Iced aly t deqte or eonaruct sn to of eopery, plan ad aqutment and cet neured Stoveduarily oat fe replnen for fof ion a repfacomet coe raged inthe caring emt fenton [prepa lr aed equipment we cing arcunt he reploed bar aaron “The intial esinnt af ne oe of canting an emewng the lem andres the wa chy which is acted inated Inne cst! propa, pnt and eters. where ie ens etgsed a rear euch eee. sd hors [fa sblgalonofons ot raul faeqatng ne abet or ung tor purecoa tter an e procuston olivenotes. Rcogiton of sats nth carying araurt cf kn em ot pepery, len and expert sassee whan te Nef Inne Dea and contin naeasaryfritn be espe of eparaing in hee ineded by menagerie heme euch se spe po, Wendy souipment and senichy Equant ae recog when ey mast he defn of propery. psrtamt equipment Majer intpection cot which re 3 craton of ondiving use of a Nam propery, plant and equlpeent ena wnich mast TPalccogrnon ol sbove ar eked aaa replacamertin be cust of ho fam ct popet, part end squpment Any ‘atv Inspection cov em tha prevus apacton Me cerecaivd. Proper. ant and egcpmenticaried a ne bes accumulated degecitton andy inpakmento22e Prop plantar pment oe dsprecated othe eb ne boss var nei expec une vee one estimates rest lun “Tre usctul lve ftom o srperyplort and eyipmont ee been see fol: ee Depreciation meted Average ustul ie ‘ane Thatta Bulge Suaightline Sc yaar ‘remaure wn Ronde ad Paste Staging 280 year S Bhettty Steer tre Sencar 1b Salawests and daposl Stagatrs Sodan, Gomeunty Po pacretonl fac ee Susigneire sn-c0yeer {Guise and otpereructures Seng ne 2-year 2 tmprovrants Stat re boa feos % KZN216 Ray Nkonyeni Municipality ‘Arua France Selmer orth oar evded 20 June 2000, Accounting Poli 117. ntanitteaczesfeortueey Ietaraly ganeeat ands, mastads,publhing Yes, custome es ad ims ro .eatance aren ecograad baimangble assets Avon prods towne down the intangible ates, on e/39h the Bab, thei esd values 2s ORE ee Deprecaton mathed Average useful ne Seanpur we Biaietre Syeare Irtangibe age ara dorengricod ee chapel or {funn hfura soanomic bens 0 erven petal ero axpaced fom is wt oF aepaseL “he gain Ines ring fom che caraeagriion of intangible asset ig Inuded in suplus or deft wham the ascet ‘vedas unease Sanco of GRAP er lates requres arenas oh 3 ao ard eababach, 8 Horage sete ‘sels ae resrates conrad by an muricipalty oe 9 rea of eae var and om which ure asoeti boners or [erne poundal are oars fee tothe munthaliy Recegniton “Te munisuatyrecogrias abrtage asset ae a aaaat fe prota hat ue xenon bans or nari peters ‘aneatad win ta acto faw toe noes. and th set or fa vahiao" ie ate abe massed ale Intnl measurement enoge aaa re mansred at et ‘ihe a nemage ane acmurad trough a nan eieherge Wansgctlen, costs measure ts at vale aaah Je of anton. ‘Subregion measurement ater ecognion aan ace se fbr ane case aie corte ny aeunuttes psa as ‘umpire ToL RE Ae RUSTY lec ecb omesce Sr eneane sara mo th aa “Tanetore “Teansfars rom heaps sees ar only made wher the parc asset knger meso the defiton ofa hevage ast. “Tranter therige sees ae only Tbe hen tha aos mest the detiion of neroge ato Darscogation ‘The muaniipalty aarconteashevisga asset on leper when no Tue economic berate cr seria poten are npocte Fam fuser aapose “The gin or lots aning from the deecognen ofa nertge saws ¢ incu in sug a det wn te Rom ‘Bedylon ries the Slants of SAP an eagae raquo otirse ono ae sd webet3). 1.9 Financial nebummerta A tance is ary cone tha: ves eo 8 Aacil asso one ety en Manila or resid tert ener dente na tance nsrurent fhe conbact wha rea of ho “eing characteris %