NC453 Gamagara AFS 2014-15 audited

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Gamagara Local Municipality
Annual Financial Statements
for the year ended 30 June 2015
Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
General Information
Members of the council
Executive Mayor Hon. Cllr. D.P. Moyo
Councillors Cllr. V.L. Gorrah
Cllr. T.E. Tiroyame
Cllr. J.C. Kaars
Cllr. O.E. Hantise
Cllr. H.Du Plessis
Cllr. I. Obuseng
Cllr. P. Selonyane
Cllr. G. Vos
Cllr. J. Johnson
Grading of local authority Grade 2
Accounting Officer T.C Itumeleng
Chief Finance Officer (CFO) NM. Grond
Registered office Civic Centre
Cnr Hendrik Van Eck & Frikkie Meyer Rd
Kathu
8446
Postal address PO Box 1001
Kathu
8446
Bankers First National Bank
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Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
Index
The reports and statements set out below comprise the annual financial statements presented to the provincial legislature:
Index Page
APPROVAL OF FINANCIAL STATEMENTS 4
MEMBERS OF COUNCIL 5
Statement of Financial Position 6
Statement of Financial Performance 7
Statement of Changes in Net Assets 8
Cash Flow Statement 9
Statement of Comparison of Budget and Actual Amounts 10
Appropriation Statement 11 - 10
Accounting Policies 11 - 33
Notes to the Annual Financial Statements 34 - 89
Appendixes:
Appendix A: Schedule of External loans 90
Appendix B: Analysis of Property, Plant and Equipment 91
Appendix D: Segmental Statement of Financial Performance 97
Appendix E(1): Actual versus Budget (Revenue and Expenditure) 98
Appendix F: Disclosure of Grants and Subsidies in terms of the Municipal Finance 99
Management Act
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Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
Index
Abbreviations
COID Compensation for Occupational Injuries and Diseases
CRR Capital Replacement Reserve
DBSA Development Bank of South Africa
SA GAAP South African Statements of Generally Accepted Accounting Practice
GRAP Generally Recognised Accounting Practice
GAMAP Generally Accepted Municipal Accounting Practice
HDF Housing Development Fund
IAS International Accounting Standards
IMFO Institute of Municipal Finance Officers
IPSAS International Public Sector Accounting Standards
ME's Municipal Entities
MEC Member of the Executive Council
MFMA Municipal Finance Management Act
MIG Municipal Infrastructure Grant (Previously CMIP)
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Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
APPROVAL OF FINANCIAL STATEMENTS
I am responsible for the preparation of these Annual Financial Statements, which are set out on pages 1 to 110, in terms of
Section 126(1) of the Municipal Finance Management Act (Act No 56 of 2003) and which I have signed on behalf of the
municipality.
:
TC ITUMELENG NM GROND
MUNICIPAL MANAGER CHIEF FINANCIAL OFFICER
31 August 2015 31 August 2015
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Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
CERTIFICATION OF REMUNERATION OF COUNCILLORS
I certify that the remuneration of Councillors and in-kind benefits are within the upper limits of the framework envisaged in
Section 219 of the Constitution, read with the Remuneration of Public Officer Bearers Act and the Minister of Provincial and
LocalGovernment's determination in accordance with this Act.

TC ITUMELENG
MUNICIPAL MANAGER
31 August 2015
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Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
Statement of Financial Position as at 30 June 2015
Figures in Rand Note(s) 2015 2014
Restated*
Assets
Current Assets
Inventories 3 976 126 589 327
Receivables from exchange transactions 5 81 672 020 21 977 936
Receivables from non-exchange transactions 6 287 908 475 7 527 206
VAT receivable 7 2 206 464 8 286 619
Cash and cash equivalents 8 8 220 588 10 115 803
Operating lease asset 9 108 280 116 954
381 091 953 48 613 845
Non-Current Assets
Property, plant and equipment 10 869 544 952 859 393 502
Intangible assets 11 3 364 042 1 133 385
Investment property 12 161 314 526 161 314 526
Heritage assets 13 74 581 74 581
1 034 298 101 1 021 915 994
Total Assets 1 415 390 054 1 070 529 839
Liabilities
Current Liabilities
Consumer deposits 14 5 709 474 4 639 486
Provisions 15 1 329 047 1 078 467
Payables from exchange transactions 16 1 086 573 800 761
Taxes and transfers payable (non-exchange) 17 34 333 138 15 249 672
DBSA Loans 18 3 802 618 4 422 608
Unspent conditional grants and receipts 19 1 532 206 1 217 129
Bank overdraft 8 27 239 699 30 106 446
75 032 755 57 514 569
Non-Current Liabilities
DBSA Loans 18 25 435 357 29 237 975
Employee benefit obligation 20 37 307 192 33 041 231
Provisions 15 4 517 325 4 092 456
67 259 874 66 371 662
Total Liabilities 142 292 629 123 886 231
Net Assets 1 273 097 425 946 643 608
Accumulated surplus 21 1 273 097 423 946 643 609
* See Note 43 & 58
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Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
Statement of Financial Performance
Figures in Rand Note(s) 2015 2014
Restated*
Revenue
Revenue from exchange transactions
Service charges 28 269 758 997 209 614 317
Rental of facilities and equipment 29 253 651 396 861
Interest received 30 1 120 196 448 263
Agency services 25 2 473 165 2 475 622
Other income 31 2 622 822 6 142 175
Total revenue from exchange transactions 276 228 831 219 077 238
Revenue from non-exchange transactions
Taxation revenue
Property rates 22 391 502 832 23 622 888
Licences and permits 24 830 150 1 055 089
Transfer revenue
Government grants & subsidies 26 48 359 768 55 221 221
Public contributions and donations 27 6 408 237 31 199 640
Fines, Penalties and Forfeits 23 362 648 775 204
Total revenue from non-exchange transactions 447 463 635 111 874 042
Total revenue 723 692 466 330 951 280
Expenditure
Employee related costs 32 (105 186 350) (85 094 091)
Remuneration of councillors 33 (2 793 291) (2 637 252)
Depreciation and amortisation 34 (58 213 895) (54 479 889)
Impairment loss 35 (66 635 371) (9 723 814)
Finance costs 37 (3 352 373) (3 983 550)
Repairs and maintenance 36 (15 700 946) (38 975 804)
Bulk purchases 38 (96 890 964) (82 153 528)
Contracted services 39 (11 025 738) (10 588 013)
Transfers and Subsidies 40 (2 402 570) (1 924 729)
General Expenses 41 (35 037 155) (23 826 329)
Total expenditure (397 238 653) (313 386 999)
Operating surplus 326 453 813 17 564 281
Loss on disposal of assets and liabilities 42 - (525 392)
Surplus for the year 326 453 813 17 038 889
* See Note 43 & 58
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Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
Statement of Changes in Net Assets
Accumulated Total net
Figures in Rand surplus assets
Opening balance as previously reported 931 322 791 931 322 791
Adjustments
Prior year adjustments (1 718 071) (1 718 071)
Balance at 01 July 2013 as restated* 929 604 720 929 604 720
Changes in net assets
Surplus for the year 17 038 889 17 038 889
Total changes 17 038 889 17 038 889
Restated* Balance at 01 July 2014 946 643 609 946 643 609
Changes in net assets
Surplus for the year 326 453 814 326 453 814
Total changes 326 453 814 326 453 814
Balance at 30 June 2015 1 273 097 423 1 273 097 423
Note(s)
* See Note 43 & 58
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Gamagara Local Municipality
Annual Financial Statements for the year ended 30 June 2015
Cash Flow Statement
Figures in Rand Note(s) 2015 2014
Restated*
Cash flows from operating activities
Receipts
Property rates 111 514 684 23 482 333
Service charges 205 246 656 203 745 002
Grants 48 431 830 55 380 228
Interest income 1 120 196 446 076
Other receipts 6 401 787 17 751 440
Public Contributions and Donations 27 11 192 328 31 245 461
383 907 481 332 050 540
Payments
Employee costs (98 162 327) (74 948 871)
Suppliers (123 530 226) (132 291 024)
Finance costs (3 352 373) (3 983 550)
Other payments (80 079 121) (33 917 382)
Remuneration of Councillors (2 793 291) (2 637 252)
(307 917 338) (247 778 079)
Net cash flows from operating activities 44 75 990 143 84 272 461
Cash flows from investing activities
Purchase of property, plant and equipment 10 (67 711 407) (79 560 357)
Purchase of other intangible assets 11 (2 884 596) (278 338)
Net cash flows from investing activities (70 596 003) (79 838 695)
Cash flows from financing activities
Repayment of Borrowings (4 422 609) (4 011 996)
Net cash flows from financing activities (4 422 609) (4 011 996)
Net increase/(decrease) in cash and cash equivalents 971 531 421 770
Cash and cash equivalents at the beginning of the year (19 990 642) (20 412 412)
Cash and cash equivalents at the end of the year 8 (19 019 111) (19 990 642)
* See Note 43 & 58
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