ebook img

NW396 Lekwa-Teemane AFS 2019-20 unaudited PDF

3.2 MB·
by  
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview NW396 Lekwa-Teemane AFS 2019-20 unaudited

Lekwa Teemane Local Municipality (Registration number NW396) Annual Financial Statements for the year ended 30 June 2020 Lekwa Teemane Local Municipality (Registration number NW396) Annual Financial Statements for the year ended 30 June 2020 General Information Legal form of entity Local Municipality Mayoral committee Mayor Councillor M Pilane Councillor L.M Segola (Portfolio Committe Chairperson - Finance) Councillor M. Majikela (Portfolio Committee Chairperson - Infrastructure & LED) Councillor K. L. Duiker (MPAC Chairperson) Councillor L. D. Legabe (Portfolio Committee Chairperson - Community Services) Councillors Councillor L. W. Tshweu Councillor K.G Palagangwe Councillor J. Joseph Councillor Kwena Councillor T. Gerber Councillor E. van Biljon Councillor S. Fortuin Councillor M. R. Mabote (Terminated 01 December 2019) Councillor M. W. Moseswa Councillor J. M. Dabampe Councillor S. K Majahe Councillor L. L Lephoi (Appointed 01 December 2019) Grading of local authority Grade 3 Chief Finance Officer (CFO) M.A. Thokoane Acting Accounting Officer Mrs. N Mbonani Registered office Cnr Robyn & Dirkie Uys Street Christiana 2680 Business address Cnr Robyn & Dirkie Uys Street Christiana 2680 Postal address P. O. Box 13 Christiana 2680 Bankers ABSA NEDBANK Auditors Auditor General of South Africa (AGSA) Registered Auditors Attorneys Lizel Venter Attorneys De Swartdt Vegel Kgomo Attorneys Inc. KNT Attorneys Modiboa Attorneys Russia Langa Attorneys 1 Lekwa Teemane Local Municipality (Registration number NW396) Annual Financial Statements for the year ended 30 June 2020 Index The reports and statements set out below comprise the annual financial statements presented to the provincial legislature: Page Accounting Officer's Responsibilities and Approval 3 Statement of Financial Position 4 Statement of Financial Performance 5 Statement of Changes in Net Assets 6 Cash Flow Statement 7 Statement of Comparison of Budget and Actual Amounts 8 - 10 Accounting Policies 11 - 45 Notes to the Annual Financial Statements 46 - 96 FMG Finance Management Grant DBSA Development Bank of South Africa GRAP Generally Recognised Accounting Practice EEDSM Energy Efficiency Demand Service Management EPWP Expanded Public Works Programme IAS International Accounting Standards ME's Municipal Entities MEC Member of the Executive Council MFMA Municipal Finance Management Act MIG Municipal Infrastructure Grant 2 Lekwa Teemane Local Municipality (Registration number NW396) Annual Financial Statements for the year ended 30 June 2020 Accounting Officer's Responsibilities and Approval The accounting officeris required by the Municipal Finance Management Act (Act 56 of 2003), to maintain adequate accounting records and is responsible for the content and integrity of the annual financial statements and related financial information included in this report. It is the responsibility of the accounting officer to ensure that the annual financial statements fairly present the state of affairs of the municipality as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independent opinion on the annual financial statements and was given unrestricted access to all financial records and related data. The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board. The annual financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. The accounting officeracknowledges that sheis ultimately responsible for the system of internal financial control established by the municipality and place considerable importance on maintaining a strong control environment. To enable the accounting officer to meet these responsibilities, the accounting officers sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the municipality and all employees are required to maintain the highest ethical standards in ensuring the municipality’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the municipality is on identifying, assessing, managing and monitoring all known forms of risk across the municipality. While operating risk cannot be fully eliminated, the municipality endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The accounting officeris of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit. The accounting officerhas reviewed the municipality’s cash flow forecast for the year to 30 June 2021 and, in the light of this review and the current financial position, sheis satisfied that the municipality has or has access to adequate resources to continue in operational existence for the foreseeable future. The municipality is wholly dependent on five core services that generate revenue, namely rates, water, electricity, refuse and sanitation. It also get equitable share from the government, which constitutes about 12% (2019:13%) of its total income. The annual financial statements are prepared on the basis that the municipality is a going concern and that the municipality has neither the intention nor the need to liquidate or curtail materially the scale of the municipality. Although the accounting officer is primarily responsible for the financial affairs of the municipality, the annual financial statements are supported by the municipality's external auditors. The external auditorsare responsible for independently reviewing and reporting on the municipality's annual financial statements. The annual financial statements have been examined by the municipality's external auditors. The annual financial statements set out on page 4 to 96, which have been prepared on the going concern basis, were approved by the acting accounting officer on 31 October 2020 and were signed on its behalf by: Acting Accounting Officer Mrs. N Mbonani 3 Lekwa Teemane Local Municipality (Registration number NW396) Annual Financial Statements for the year ended 30 June 2020 Statement of Financial Position as at 30 June 2020 Figures in Rand 2020 2019 Restated* Assets Current Assets Inventories 673,796 682,624 Investments 46,445 61,590 Receivables from exchange transactions 9,882,506 4,200,034 Receivables from non-exchange transactions 24,744,364 12,382,419 Consumer debtors 109,486,177 89,465,516 Cash and cash equivalents 6,148,610 1,717,054 150,981,898 108,509,237 Non-Current Assets Investment property 144,268,680 139,668,889 Property, plant and equipment 357,972,740 378,895,862 Intangible assets 644,995 809,122 Heritage assets 170,000 170,000 Investments in controlled entities 20,100 20,100 Long term receivables 6,317,958 7,547,700 509,394,473 527,111,673 Total Assets 660,376,371 635,620,910 Liabilities Current Liabilities Other Financial Liabilities 3,000,000 3,000,000 Financial liabilities 13,326,169 12,776,322 Finance lease obligation 570,827 2,096,213 Payables from exchange transactions 435,672,364 349,259,261 VAT payable 23,334,962 10,350,739 Consumer deposits 1,582,998 1,564,929 Employee benefit obligation 1,765,427 1,121,445 Unspent conditional grants and receipts 3,486,197 4,707,019 Provisions 2,251,465 1,707,686 484,990,409 386,583,614 Non-Current Liabilities Financial liabilities 4,573,729 9,764,193 Finance lease obligation - 592,161 Employee benefit obligation 23,182,811 25,428,312 Provisions 9,494,228 8,620,219 37,250,768 44,404,885 Total Liabilities 522,241,177 430,988,499 138,135,194 204,632,411 Accumulated surplus 138,135,194 204,632,411 * See Note 2 & 43 4 Lekwa Teemane Local Municipality (Registration number NW396) Annual Financial Statements for the year ended 30 June 2020 Statement of Financial Performance Figures in Rand 2020 2019 Restated* Revenue Revenue from exchange transactions Sale of goods 64,515 346,655 Service charges 24 185,267,178 130,760,179 Rendering of services 18,230 253,014 Rental of facilities and equipment 25 189,632 203,399 Agency services 2,343,075 2,578,211 Other income 70,673 - Interest received 26 90,346,019 70,047,178 Total revenue from exchange transactions 278,299,322 204,188,636 Revenue from non-exchange transactions Taxation revenue Property rates 27 26,741,889 25,104,894 Transfer revenue and Other revenue Government grants & subsidies 28 81,148,823 67,700,568 Social Benefit (Concessionary Loan) 1,574,424 540,514 Traffic fines 29 1,785,604 590,820 Actuarial gains 4,241,713 1,315,847 Fair Value adjustments 4,599,790 5,552,714 Total revenue from non-exchange transactions 120,092,243 100,805,357 Total revenue 398,391,565 304,993,993 Expenditure Employee related costs 30 (69,500,784) (65,850,487) Remuneration of councillors 31 (5,964,326) (6,214,087) Depreciation and amortisation 32 (21,145,696) (22,887,968) Impairment losses on assets - (462,694) Finance costs 33 (12,705,402) (9,218,839) Debt impairment 34 (199,897,219) (76,207,047) Bulk purchases 35 (75,963,541) (71,623,515) Contracted services 36 (27,479,564) (28,287,579) Loss on disposal of assets (28,176,007) (2,675,323) Loss on fair value adjustment - Sanlam Shares (15,145) (6,375) Consumables (6,599,511) (2,777,248) General expenses 37 (17,441,587) (32,672,399) Total expenditure (464,888,782) (318,883,561) Deficit for the year (66,497,217) (13,889,568) * See Note 2 & 43 5 Lekwa Teemane Local Municipality (Registration number NW396) Annual 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 69,869,017 69,869,017 Adjustments Prior year adjustments 9,429,765 9,429,765 Balance at 01 July 2018 as restated* 79,298,782 79,298,782 Changes in net assets Surplus for the year (64,414,341) (64,414,341) Total changes (64,414,341) (64,414,341) Opening balance as previously reported as at 30 June 2019 14,884,441 14,884,441 Adjustments Prior period errors adjustments 189,747,970 189,747,970 Restated* Balance at 01 July 2019 as restated* 204,632,411 204,632,411 Changes in net assets Surplus for the year (66,497,217) (66,497,217) Total changes (66,497,217) (66,497,217) Balance as at 30 June 2020 138,135,194 138,135,194 Note(s) * See Note 2 & 43 6 Lekwa Teemane Local Municipality (Registration number NW396) Annual Financial Statements for the year ended 30 June 2020 Cash Flow Statement Figures in Rand 2020 2019 Restated* Cash flows from operating activities Receipts Receipts from customers 166,428,765 148,622,612 Grants 79,928,000 71,449,328 Interest income 205,373 40,976 Other receipts 2,128,654 1,393,888 248,690,792 221,506,804 Payments Employee costs & Councillor remuneration (75,465,110) (72,064,575) Suppliers (120,836,024) (139,849,280) Finance costs (12,705,402) (9,218,839) (209,006,536) (221,132,694) Net cash flows from operating activities 39,684,256 374,110 Cash flows from investing activities Purchase of property, plant and equipment (27,812,211) (20,647,350) Purchase of other intangible assets (132,478) (134,795) Net cash flows from investing activities (27,944,689) (20,782,145) Cash flows from financing activities Proceeds from financial liabilities (5,190,464) 22,000,000 Finance lease payments (2,117,547) (1,582,631) Net cash flows from financing activities (7,308,011) 20,417,369 Net increase/(decrease) in cash and cash equivalents 4,431,556 9,334 Cash and cash equivalents at the beginning of the year 1,717,054 1,707,720 Cash and cash equivalents at the end of the year 6,148,610 1,717,054 * See Note 2 & 43 7 Lekwa Teemane Local Municipality (Registration number NW396) Annual 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 budget on comparable between final basis budget and Figures in Rand actual Statement of Financial Performance Revenue Revenue from exchange transactions Sale of goods 916,636 (100,694) 815,942 64,515 (751,427) Service charges 164,664,739 20,952,253 185,616,992 185,267,178 (349,814) Rendering of services - - - 18,230 18,230 Rental of facilities and equipment 1,032,000 (313,141) 718,859 189,632 (529,227) Fair Value Adjustments 10,500,000 - 10,500,000 - (10,500,000) Agency services 2,760,641 5,000 2,765,641 2,343,075 (422,566) Other income 61,316 185,767 247,083 70,673 (176,410) Interest received 52,572,905 8,000,000 60,572,905 90,346,019 29,773,114 Total revenue from exchange transactions 232,508,237 28,729,185 261,237,422 278,299,322 17,061,900 Revenue from non-exchange transactions Taxation revenue Property rates 30,089,583 12,358,767 42,448,350 26,741,889 (15,706,461) Transfer revenue Government grants & subsidies 73,208,000 10,000,000 83,208,000 81,148,823 (2,059,177) Social Benefit (Concessionary Loan) - - - 1,574,424 1,574,424 Traffic Fines 2,324,116 154,999 2,479,115 1,785,604 (693,511) Other transfer revenue 1 - - - 4,241,713 4,241,713 Other transfer revenue 2 - - - 4,599,790 4,599,790 Total revenue from non-exchange 105,621,699 22,513,766 128,135,465 120,092,243 (8,043,222) transactions Total revenue 338,129,936 51,242,951 389,372,887 398,391,565 9,018,678 Expenditure Personnel (60,181,895) (7,835,641) (68,017,536) (69,500,784) (1,483,248) Remuneration of councillors (6,171,016) - (6,171,016) (5,964,326) 206,690 Depreciation and amortisation (23,185,000) - (23,185,000) (21,145,696) 2,039,304 Finance costs (4,167,957) 150,000 (4,017,957) (12,705,402) (8,687,445) Debt Impairment (80,592,777) (16,860,000) (97,452,777) (199,897,219) (102,444,442) Bulk purchases (54,896,000) - (54,896,000) (75,963,541) (21,067,541) Contracted Services (13,379,106) (176,863) (13,555,969) (27,479,564) (13,923,595) Transfers and Subsidies (350,000) - (350,000) - 350,000 Consumables (7,652,829) (40,000) (7,692,829) (6,599,511) 1,093,318 General Expenses (13,070,337) (2,172,840) (15,243,177) (17,441,587) (2,198,410) Total expenditure (263,646,917) (26,935,344) (290,582,261) (436,697,630) (146,115,369) Operating deficit 74,483,019 24,307,607 98,790,626 (38,306,065) (137,096,691) Loss on disposal of assets and liabilities - - - (28,176,007) (28,176,007) Loss on foreign exchange - - - (15,145) (15,145) - - - (28,191,152) (28,191,152) Surplus for the year 74,483,019 24,307,607 98,790,626 (66,497,217) (165,287,843) Actual Amount on Comparable Basis as 74,483,019 24,307,607 98,790,626 (66,497,217) (165,287,843) Presented in the Budget and Actual Comparative Statement 8 Lekwa Teemane Local Municipality (Registration number NW396) Annual Financial Statements for the year ended 30 June 2020 Statement of Comparison of Budget and Actual Amounts Budget on Cash Basis Approved Adjustments Final Budget Actual amounts Difference budget on comparable between final basis budget and Figures in Rand actual Statement of Financial Position Assets Current Assets Inventories - - - 673,796 673,796 Investments 690,000 - 690,000 46,445 (643,555) Receivables from exchange transactions - - - 9,882,506 9,882,506 Receivables from non-exchange transactions - - - 24,744,364 24,744,364 Consumer debtors 34,527,292 - 34,527,292 109,486,177 74,958,885 Short-term portion of long term receivables 2,500,000 - 2,500,000 - (2,500,000) Cash and cash equivalents - - - 6,148,610 6,148,610 37,717,292 - 37,717,292 150,981,898 113,264,606 Non-Current Assets Investment property 50,080,000 - 50,080,000 144,268,680 94,188,680 Property, plant and equipment 351,914,501 - 351,914,501 357,972,740 6,058,239 Intangible assets 61,455 - 61,455 644,995 583,540 Heritage assets 170,000 - 170,000 170,000 - Investments in controlled entities 20,000 - 20,000 20,100 100 Investments 586,418 - 586,418 - (586,418) Long term receivables 7,229,969 - 7,229,969 6,317,958 (912,011) 410,062,343 - 410,062,343 509,394,473 99,332,130 Total Assets 447,779,635 - 447,779,635 660,376,371 212,596,736 Liabilities Current Liabilities Other Financial Liabilities 3,000,000 - 3,000,000 3,000,000 - Financial liabilities - - - 13,326,169 13,326,169 Finance lease obligation - - - 570,827 570,827 Payables from exchange transactions 301,633,809 - 301,633,809 435,672,364 134,038,555 VAT payable - - - 23,334,962 23,334,962 Consumer deposits 1,206,735 - 1,206,735 1,582,998 376,263 Employee benefit obligation - - - 1,765,427 1,765,427 Unspent conditional grants and receipts - - - 3,486,197 3,486,197 Provisions 2,652,473 - 2,652,473 2,251,465 (401,008) Bank overdraft 62,375,000 - 62,375,000 - (62,375,000) 370,868,017 - 370,868,017 484,990,409 114,122,392 Non-Current Liabilities Financial liabilities - - - 4,573,729 4,573,729 Employee benefit obligation - - - 23,182,811 23,182,811 Provisions 57,324,692 - 57,324,692 9,494,228 (47,830,464) 57,324,692 - 57,324,692 37,250,768 (20,073,924) Total Liabilities 428,192,709 - 428,192,709 522,241,177 94,048,468 19,586,926 - 19,586,926 138,135,194 118,548,268 9

See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.