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MARULENG LOCAL MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2013 MARULENG LOCAL MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 General information Members of the Council P A Mafologele Mayor Raganya B Speaker M J Nyathi Members of the Executive Committee M A Mathaba M B Popela M J Maahlo M L Mongadi Members E C Du Preez M P Mashumu (Chief Whip) M S Malapane M C Mahlako M R Malepe S A Nyathi L V Shaai T A Mathaba M C Magoro M D Popela J T Morema M M Rakgoale P A Shaai R B Sekgobela P E Shai K J Monyela M R Mametja I H Malatjie M J Rakgoale P. Ratshoshi Municipal Manager R J Ramothwala Acting Chief Financial Officer M F Sekgobela Grading of Local Authority 3 Auditors Auditor-General Bankers Standard Bank MARULENG LOCAL MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 General information (continued) Registered Office: Municipal Offices Physical address: 65 Springbok St./-str. 65 Hoedspruit 1380 Postal address: P.O. Box/Posbus 627 Hoedspruit 1380 Telephone number: (015) 793 2409 Fax number: (015) 793 2341 E-mail address: [email protected] MARULENG LOCAL MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 INDEX CONTENTS Page STATEMENT OF FINANCIAL POSITION 1 STATEMENT OF FINANCIAL PERFORMANCE 2 STATEMENT OF CHANGES IN NET ASSETS 3 STATEMENT OF CASHFLOWS 4 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 5-28 APPENDIX A: APPENDIX B: ANALYSIS OF PROPERTY PLANT AND EQUIPMENT APPENDIX C: SEGMENTAL ANALYSIS OF PROPERTY PLANT AND EQUIPMENT APPENDIX D: SEGMENT STATEMENT OF FINANCIAL PERFOMANCE APPENDIX E: STATEMENT OF COMPARATIVE AND ACTUAL INFORMATION MARULENG LOCAL MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 APPROVAL OF ANNUAL FINANCIAL STATEMENTS Iam responsiblefor thepreparationof theseannualfinancialstatements, whichare setout onpages1to35,interms ofSection126(1)oftheMunicipalFinanceManagementActand which I have signed on behalf of the Municipality. I certify that the salaries, allowances and benefits of Councillors, loans made to Councillors,if any,andpaymentsmade toCouncillorsfor loss ofoffice, ifany,asdisclosed innote22of theseannualfinancialstatements are withintheupper limits of theframework envisaged in Section 219 of the Constitution, read with the Remuneration of Public Officer Bearers Act and the Minister of Cooperative Governance and Traditional Affairs determination in accordance with this Act. R J RAMOTHWALA MUNICIPAL MANAGER DATE MARULENG LOCAL MUNICIPALITY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 2013 2012 Note R R ASSETS Current assets Inventories 2 91 824 180 399 Receivable from exchange transactions 3 1 723 338 466 620 Receivable from non-exchange transactions 4 1 903 951 2 289 549 Other receivables 5 14 824 817 13 453 183 VAT receivable 6 3 887 985 470 565 Cash and cash equivalents 7 29 538 680 19 849 927 Non-current assets Property, plant & equipment 8 359 795 268 352 724 691 Intangible assets 9 27 821 34 892 Investment property carried at cost 10 3 254 850 3 254 850 Total assets 415 048 534 392 724 676 LIABILITIES Current liabilities Trade and other payables from exchange transactions 11 6 862 235 5 329 715 Trade and other payables from non exchange transactions 11 3 382 431 4 022 298 Unspent conditional grants and receipts 12 3 742 042 1 170 756 Provision 13 696 314 739 880 Current portion of finance lease obligation 14 256 673 226 449 Non-current liabilities Provisions 13 12 172 857 8 519 770 Finance lease liability 14 180 173 314 548 Total liabilities 27 292 726 20 323 417 387 755 809 372 401 260 Net Assets Accumulated surplus/(deficit) 387 755 809 372 401 260 387 755 809 372 401 260 1 MARULENG LOCAL MUNICIPALITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2013 2013 2012 Note R R REVENUE Property rates 16 11 305 512 10 341 899 Service charges 17 2 548 200 2 260 834 Finance income 18 1 246 988 969 593 Government grants and subsidies received - operating 19 64 241 714 52 984 243 Government grants and subsidies received - capital 19 27 885 010 30 279 670 Rental of facilities and equipment 256 312 319 516 Agency fees 20 3 743 537 3 671 553 Other revenue 21 1 622 788 767 185 Gain on disposal of assets 22 0 314 407 Total Revenue 112 850 061 101 908 900 EXPENDITURE Employee related costs 23 33 627 508 28 016 594 Remuneration of councillors 24 7 358 761 6 846 399 Bad debts 1 705 371 3 588 743 Depreciation and amortisation expense 25 26 736 893 19 817 655 Finance cost 26 64 910 41 229 Repairs and maintenance 1 271 071 1 137 301 General expenses 27 20 637 607 27 553 293 Contracted services 28 5 222 219 5 214 941 Loss on disposal of Assets 22 871 171 Total Expenditure 97 495 512 92 216 156 NET SURPLUS/(DEFICIT) FOR THE YEAR 15 354 549 9 692 744 2 MARULENG LOCAL MUNICIPALITY STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2013 Pre GRAP Accumulated Total: Net Reserves & Surplus/ Assets Funds (Deficit) R R R Balance at 1 July 2011 153 048 237 153 048 237 Correction of prior period error 198 083 176 198 083 176 Restated balance - 351 131 413 351 131 413 Surplus/(deficit) for the period 21 269 847 21 269 847 Balance at 30 June 2012 - 372 401 260 372 401 260 Changes in equity for 2013 Surplus/(deficit) for the period 15 354 549 15 354 549 Balance at 30 June 2013 - 387 755 809 387 755 809 3 MARULENG LOCAL MUNICIPALITY STAMENT OF CASH FLOW FOR THE YEAR ENDING 30 JUNE 2013 2013 2012 Note R R CASH FLOWS FROM OPERATING ACTIVITIES RECEIPTS 110 226 234 84 941 891 Sales of goods and services 228 021 1 029 062 Property Rates 11 305 512 10 341 899 Grants 94 698 010 71 513 497 Other receipts 3 994 691 2 057 433 PAYMENTS (66 943 839) 59 296 130 Employee costs (33 627 508) 27 665 864 Remuneration for councillors (7 358 761) 6 846 399 Suppliers (6 493 291) 6 352 242 Other payments (19 464 279) 18 431 624 Cash generated from / (utilized in) operations 30 43 282 395 25 645 760 1 182 078 794 249 Investment revenue/ interests received 1 246 988 753 020 Interest Paid ( 64 910) 41 229 Net Cash From Operating Activities 44 464 474 26 440 010 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment and other assets (34 510 768) (30 962 293) Proceeds from disposal of assets 0 870 000 Net cash used in investing activities (34 510 768) (30 092 293) CASH FLOWS FROM FINANCING ACTIVITIES Raising/(payment) of finance lease liabilities ( 264 952) 277 956 Net cash used in financing activities ( 264 952) 277 956 Increase/(decrease) in cash and cash equivalents 9 688 754 (3 456 785) Cash and cash equivalents at beginning of the year 19 849 927 22 736 213 Cash and cash equivalents at end of June 2013 29 538 680 19 849 927 Page 4 MARULENG LOCAL MUNICIPALITY STAMENT OF CASH FLOW FOR THE YEAR ENDING 30 JUNE 2013 Page 5