Table Of Content

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 1 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 2 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 3 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 4 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 2020 2019 Restated* Assets Current Assets Cash and cash equivalents 185 332 917 95 912 380 Inventories 16 508 525 16 661 723 Investments 478 054 095 504 330 175 Receivables from exchange transactions 125 670 792 117 019 287 Receivables from non-exchange transactions 35 011 313 31 055 791 Prepayments 4 051 079 3 966 519 Operating lease asset 76 434 120 883 844 705 155 769 066 758 Non-Current Assets Property, plant and equipment 2 804 112 719 2 762 295 255 Intangible assets 14 407 544 10 178 755 Investment property 17 530 000 15 870 000 Heritage assets 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 36 577 125 067 Payables from exchange transactions 124 768 759 91 576 517 Consumer deposits 25 652 045 23 266 757 VAT payable 15 592 247 13 042 768 Unspent conditional grants and receipts 44 260 371 32 506 807 Borrowings 12 153 348 18 761 706 Finance lease obligation 271 061 109 062 Employee benefit obligation 41 052 668 33 359 037 Provisions 3 107 329 8 210 558 266 894 405 220 958 279 Non-Current Liabilities Borrowings 112 706 972 124 860 318 Finance lease obligation 166 420 120 751 Employee benefit obligation 109 895 000 116 173 302 Provisions 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 6 Saldanha Bay Municipality 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 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 7 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 8 Saldanha Bay Municipality 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 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 265 526 095 205 772 954 Cash flows from investing activities Purchase of property, plant and equipment (169 039 261) (224 032 488) Proceeds from sale of property, plant and equipment 274 155 1 970 809 Purchase of other intangible assets (8 333 926) (2 191 262) Purchase of heritage assets - (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 185 332 917 95 912 380 * See Note 49 9