WC014 Saldanha Bay AFS 2019-20 unaudited

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Saldanha Bay Municipality
Annual Financial Statements
for the year ended 30 June 2020
Saldanha Bay Municipality
Annual Financial Statements for the year ended 30 June 2020
General Information
Legal form of entity Municipality
Municipal demarcation code WC014
Nature of business and principal activities Local Government
Mayoral committee Kruger Andre
Mohale Sinah
Steyn Elizabeth
Scholtz Sharon
Truter Andre
Executive Mayor Koen Marius
Deputy Executive Mayor Vaughan Eventhia
Speaker Daniels Olwene
Councillors America Wilhelm
Girimane Nonkululeko
Khulu Thulani
Kordom Geraldine
Kotze Jaco
Mafenuka Siyabulelo
Makwetu Monde
Mankay Ezelle
Mitchell Leonard
Nackerdien Ebrahim
Rossouw Theresa
Salmon Tanduxolo
Schippers Francois
Schrader Miranda
Sipholi Goodman
Van Nooi Charleen
Van Tura Sucilla
Venter Andries
Williams Avril
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Saldanha Bay Municipality
Annual Financial Statements for the year ended 30 June 2020
General Information
Grading of municipal Council for the upper limits for Grade 4
Councillors
Grading of remuneration of municipal manager and senior Grade 4
managers
Wage curve categorisation Grade 5
Accounting Officer Mettler Heinrich
Chief Finance Officer (CFO) Vorster Stefan
Business address 15 Main Road
Vredenburg
Western Cape
South Africa
7380
Postal address Private Bag X 11
Vredenburg
Western Cape
South Africa
7380
Primary Bankers Standard Bank of South Africa Limited
Auditors Auditor-General of South Africa
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Saldanha Bay Municipality
Annual Financial Statements for the year ended 30 June 2020
Index
Page
Accounting Officer's Responsibilities and Approval 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 - 12
Accounting Policies 13 - 45
Notes to the Annual Financial Statements 46 - 110
Appendixes:
Appendix A: Schedule of External loans 111
Appendix B: Operating expenditure by vote 112
Appendix C: Statistical information 113 - 114
Appendix D: Disclosure of Grants and Subsidies 115
Appendix E: Deviations from Supply Chain Management processes 116 - 177
Appendix F: Appropriation Statement 178
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Saldanha Bay Municipality
Annual Financial Statements for the year ended 30 June 2020
Index
ABSA Amalgamated Banks of South Africa
ASB Accounting Standards Board
CIDB Construction Industry Development Board
CIDMS City Infrastructure Delivery and Management System
COID Compensation for Occupational Injuries and Diseases
CPI Consumer Price Index
CRR Capital Replacement Reserve
DBSA Development Bank of Southern Africa
EPWP Expanded Public Works Programme
FMG Financial Management Grant
FMSG Financial Management Support Grant
GRAP Generally Recognised Accounting Practice
IGRAP Interpretation of the Standards of Generally Recognised Accounting Practice
LSA Long Service Award
MDRG Municipal Disaster Relief Grant
MFMA Municipal Finance Management Act
MIG Municipal Infrastructure Grant (Previously CMIP)
MSA Municipal Systems Act
PAYE Pay As You Earn
PPE Property, Plant and Equipment
RSEP Regional Socio-Economic Project
SALGA South African Local Government Association
SARS South African Revenue Services
SBM Saldanha Bay Municipality
SETA Sector Education and Training Authority
SCM Supply Chain Management
SDL Skills Development Levy
UIF Unemployment Insurance Fund
VAT Value Added Tax
WCA Workers Compensation Assistance
WCDM West Coast District Municipality
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Saldanha Bay Municipality
Annual 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 2 185 332 917 95 912 380
Inventories 3 16 508 525 16 661 723
Investments 4 478 054 095 504 330 175
Receivables from exchange transactions 5&7 125 670 792 117 019 287
Receivables from non-exchange transactions 6&7 35 011 313 31 055 791
Prepayments 8 4 051 079 3 966 519
Operating lease asset 9 76 434 120 883
844 705 155 769 066 758
Non-Current Assets
Property, plant and equipment 10 2 804 112 719 2 762 295 255
Intangible assets 11 14 407 544 10 178 755
Investment property 12 17 530 000 15 870 000
Heritage assets 13 3 298 260 3 298 260
2 839 348 523 2 791 642 270
Total Assets 3 684 053 678 3 560 709 028
Liabilities
Current Liabilities
Operating lease liability 9 36 577 125 067
Payables from exchange transactions 14 124 768 759 91 576 517
Consumer deposits 15 25 652 045 23 266 757
VAT payable 16 15 592 247 13 042 768
Unspent conditional grants and receipts 17 44 260 371 32 506 807
Borrowings 18 12 153 348 18 761 706
Finance lease obligation 19 271 061 109 062
Employee benefit obligation 20 41 052 668 33 359 037
Provisions 21 3 107 329 8 210 558
266 894 405 220 958 279
Non-Current Liabilities
Borrowings 18 112 706 972 124 860 318
Finance lease obligation 19 166 420 120 751
Employee benefit obligation 20 109 895 000 116 173 302
Provisions 21 67 252 464 91 350 773
290 020 856 332 505 144
Total Liabilities 556 915 261 553 463 423
Net Assets 3 127 138 417 3 007 245 605
Accumulated surplus 3 127 138 417 3 007 245 605
* See Note 49
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Saldanha Bay Municipality
Annual 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 22 656 166 600 613 159 887
Construction contracts 23 7 676 675 14 882 771
Rental of facilities and equipment 24 12 113 403 13 756 289
Interest earned - external investments 25 47 916 752 50 424 721
Interest earned - outstanding receivables 26 10 551 739 10 199 245
Agency fees 27 6 417 146 6 571 242
Licences and permits 28 988 278 1 783 142
Other income 29 17 907 206 22 167 969
Total revenue from exchange transactions 759 737 799 732 945 266
Revenue from non-exchange transactions
Property rates 30 229 680 012 209 067 901
Interest earned - outstanding property rates 31 3 302 772 3 434 691
Government grants & subsidies 32 138 565 418 146 915 430
Fines 33 21 215 875 22 953 970
Other income 34 17 516 611 6 252 018
Total revenue from non-exchange transactions 410 280 688 388 624 010
Total revenue 1 170 018 487 1 121 569 276
Expenditure
Employee related costs 35 (380 115 072) (340 385 622)
Remuneration of councillors 36 (12 352 004) (11 833 450)
Depreciation and amortisation 37 (137 066 915) (136 253 277)
Impairment of assets 38 (16 851 633) (26 381 935)
Finance costs 39 (30 581 070) (34 801 337)
Bad debts written-off 40 (44 804 938) (37 578 699)
Bulk purchases 41 (302 827 311) (275 684 162)
Contracted services 42 (84 314 695) (96 406 715)
Transfers and subsidies 43 (5 089 512) (3 479 976)
Inventories written-off 3 (1 048 089) (743 053)
General expenses 44 (82 283 266) (84 527 057)
Total expenditure (1 097 334 505) (1 048 075 283)
Operating surplus 72 683 982 73 493 993
Gains and losses
Actuarial gains 20 16 431 746 2 478 545
Fair value adjustments 45 1 660 000 760 000
Gain on reversal of provision 30 913 408 967 114
Loss on disposal of assets and liabilities (1 752 541) (427 659)
Gain (loss) on foreign exchange (43 783) 23 999
Surplus for the year 119 892 812 77 295 992
* See Note 49
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Saldanha Bay Municipality
Annual Financial Statements for the year ended 30 June 2020
Statement of Changes in Net Assets
Accumulated
Figures in Rand surplus
Opening balance as previously reported 2 930 936 330
Prior year adjustments (986 717)
Balance at July 1, 2018 as restated* 2 929 949 613
Surplus for the year 77 295 992
Balance at July 1, 2019 as restated* 3 007 245 605
Surplus for the year 119 892 812
Balance at 30 June 2020 3 127 138 417
* See Note 49
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Saldanha Bay Municipality
Annual 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
Taxes and fines 227 527 359 214 251 363
Service charges 631 107 615 572 175 710
Grants 150 370 048 130 148 955
Interest received 54 192 831 51 208 833
Other receipts 40 894 740 63 585 877
1 104 092 593 1 031 370 738
Payments
Employee costs and remuneration of councillors (385 667 320) (351 156 240)
Suppliers and other (438 431 256) (458 195 899)
Finance costs (14 467 922) (16 245 645)
(838 566 498) (825 597 784)
Net cash flows from operating activities 46 265 526 095 205 772 954
Cash flows from investing activities
Purchase of property, plant and equipment 10 (169 039 261) (224 032 488)
Proceeds from sale of property, plant and equipment 10 274 155 1 970 809
Purchase of other intangible assets 11 (8 333 926) (2 191 262)
Purchase of heritage assets 13 - (69 527)
Net movement in investments 20 000 000 60 000 000
Net cash flows from investing activities (157 099 032) (164 322 468)
Cash flows from financing activities
Repayment of borrowings (18 761 704) (17 163 901)
Movement in finance leases (244 822) (147 017)
Net cash flows from financing activities (19 006 526) (17 310 918)
Net increase in cash and cash equivalents 89 420 537 24 139 568
Cash and cash equivalents at the beginning of the year 95 912 380 71 772 812
Cash and cash equivalents at the end of the year 2 185 332 917 95 912 380
* See Note 49
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