ANNEXURE 524/2019

CITY OF

MBOMBELA

____________

2019/2020– FIRST QUARTER BUDGET PERFORMANCE STATEMENT REPORT

2

PART 1 – 2019/2020 FIRST QUARTER BUDGET PERFORMANCE REPORT

1. EXECUTIVE SUMMARY

Budget Performance Statement Summary Council has on 31 May 2019 under item A (3), in accordance with section 16(1) of the Municipal Finance Management Act 56 of 2003 approved the 2019/2020 budget totaling to R3 932 billion. The approved total operating expenditure amounted to R3 249 billion, while the approved capital expenditure amounted to R682 million. Moreover, the approved total operating revenue budget amounted to R2 864 billion and revenue to be recognized from the capital grants amounted to R583 million. The approved medium-term revenue, operating expenditure and capital expenditure budget amounted to R11 143 billion, R10 155 billion and R2 150 billion respectively as tabulated below. The 2019/2020 Medium term revenue expenditure framework is a product of a thorough consultative process with different stakeholders including the National Treasury which help to advice the City on how to put together a credible budget which will help to delivery services to the general public. It is against this background that monitoring of the budget implementation is closely monitored by council and the National Treasury in terms of section 71, 72 and 52(d) of the Municipal finance management Act no 53 of 2003 so as to ensure that public resources are utilized effectively and in line with applicable legislation.

DESCRIPTION 2019/2020

ORIGINAL BUDGET

2020/2021

BUDGET YEAR

2021/2022

BUDGET YEAR

MTREF BUDGET

2019/2020 -

2021/2022

OPERATING REVENUE 2,864,566,874R 3,079,980,056R 3,315,596,753R 9,260,143,683R

CAPITAL GRANTS REVENUE 582,682,000R 622,246,000R 677,727,000R 1,882,655,000R

TOTAL REVENUE 3,447,248,874R 3,702,226,056R 3,993,323,753R 11,142,798,683R

OPERATING EXPENDITURE 3,249,926,438R 3,379,187,174R 3,526,037,103R 10,155,150,715R

CAPITAL EXPENDITURE 682,362,001R 696,945,997R 771,427,000R 2,150,734,998R

TOTAL EXPENDITURE 3,932,288,439R 4,076,133,171R 4,297,464,103R 12,305,885,713R

OPERATING SURPLUS/DEFICIT 197,322,436R 323,038,882R 467,286,650R 987,647,968R

2019/2020 TO 2021/2022 FINAL MTREF FOR THE CITY OF MBOMBELA

The annual approved operating budget reflected a surplus of R197 million for 2019/2020 budget while for 2020/2021 and 2021/2022 operating surpluses amounted to R323 million and R467 million respectively. This therefore resulted in a medium-term operating surplus amounting to R988 million. Council further amended the 2019/2020 original approved budget at the Special Council meeting held on the 23rd of August 2019 where an additional amount of R79 million was approved for roll-over capital projects which were not completed during the 2018/2019 financial year. This has therefore increased the capital budget from R682 million to R761 million. The total grant funded project increased by R59 million from an approved amount of R581 million to R640 million while council own funded capital budget increased by R20 million from an approved budget of R102 million to R122 million. Operating expenditure increased by R48 million from the original approved

3

budget of R3 250 billion to R3 298 billion and the overall total expenditure budget increased from R3 840 billion to R3 950 billion respectively. Moreover, the total operating revenue increased by R48 million from R2 865 billion to R2 913 billion while capital grant revenue increased by R57 million from R583 million to R642 million. The overall total revenue budget increased by R107 million from R3 447 billion to R3 554 billion. The table below reflects the amendment to the original budget as outlined above in line with section 28 (e) of the Municipal Finance Management Act no 56 of 2003 read with MFMA circular No 91 together with section 22 of the 2018 Division of Revenue Act (DORA).

DESCRIPTION 2019/2020

ORIGINAL

BUDGET

2018/2019

ROLL-OVER

BUDGET

2019/2020

AMMENDED

BUDGET

OPERATING REVENUE 2,864,566,874R 48,000,000R 2,912,566,874R

CAPITAL GRANTS REVENUE 582,682,000R 58,860,716R 641,542,716R

TOTAL REVENUE 3,447,248,874R 106,860,716R 3,554,109,590R

OPERATING EXPENDITURE 3,249,926,438R 48,000,000R 3,297,926,438R

CAPITAL BUDGET - INTERNAL FUNDING 101,680,000R 20,254,098R 121,934,098R

CAPITAL BUDGET - GRANT FUNDING 580,682,000R 58,860,716R 639,542,716R

TOTAL EXPENDITURE 3,932,288,438R 127,114,814R 4,059,403,252R

OPERATING SURPLUS/DEFICIT 197,322,436R 256,183,152R

2019/2020 BUDGET AMMENDMENT FOR THE CITY OF MBOMBELA

The table below provides an overview of the budget and financial performance for the first quarter period ended 30 September 2019. The table illustrates the budget and financial performance for the 2019/2020 first quarter period, reflecting performance summary for each segment of the budget. The City is currently implementing the mSCOA budget on version 6.3 after successful verification by National Treasury.

4

MP326 City of Mbombela - Table C1 Monthly Budget Statement Summary - Q1 First Quarter

2018/19

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

Financial Performance

Property rates 631,719 642,360 642,360 52,931 163,998 160,590 3,408 2% 642,360

Serv ice charges 1,241,828 1,384,977 1,384,977 121,635 353,760 346,244 7,515 2% 1,384,977

Inv estment rev enue 7,383 6,329 6,329 628 2,634 1,582 1,052 67% 6,329

Transfers and subsidies 816,078 733,561 733,561 1,172 305,145 183,390 121,755 66% 733,561

Other ow n rev enue 148,961 97,340 97,340 7,695 29,843 24,335 5,508 23% 97,340

Total Revenue (excluding capital transfers

and contributions)

2,845,969 2,864,567 2,864,567 184,060 855,380 716,141 139,238 19% 2,864,567

Employ ee costs 936,266 1,010,483 1,010,483 90,420 266,241 252,622 13,619 5% 1,010,483

Remuneration of Councillors 39,466 43,865 43,865 3,300 9,757 10,966 (1,209) -11% 43,865

Depreciation & asset impairment 506,469 545,585 543,885 126,962 126,962 136,088 (9,126) -7% 543,885

Finance charges 90,665 45,677 45,677 0 13,871 11,419 2,452 21% 45,677

Materials and bulk purchases 796,645 893,674 886,017 127,964 229,027 222,410 6,617 3% 886,017

Transfers and subsidies 42,503 32,670 8,398 258 1,286 3,773 (2,487) -66% 8,398

Other ex penditure 1,064,428 677,973 711,602 88,807 142,190 175,208 (33,018) -19% 711,602

Total Expenditure 3,476,443 3,249,926 3,249,926 437,710 789,334 812,487 (23,154) -3% 3,249,926

Surplus/(Deficit) (630,474) (385,360) (385,359) (253,649) 66,046 (96,346) 162,392 -169% (385,359)

Transfers and subsidies - capital (monetary allocations) (National / Prov incial and District)418,601 582,682 582,682 33,892 113,320 145,670 (32,350) -22% 582,682

Contributions & Contributed assets – – – – 187 – 187 #DIV/0! –

Surplus/(Deficit) after capital transfers &

contributions

(211,873) 197,322 197,323 (219,757) 179,553 49,325 130,228 264% 197,323

Share of surplus/ (deficit) of associate – – – – – – – –

Surplus/ (Deficit) for the year (211,873) 197,322 197,323 (219,757) 179,553 49,325 130,228 264% 197,323

Capital expenditure & funds sources

Capital expenditure 153,181 682,362 702,616 30,241 99,906 174,314 (74,408) -43% 702,616

Capital transfers recognised 81,736 580,682 580,682 29,471 98,539 145,171 (46,631) -32% 580,682

Borrow ing – – – – – – – –

Internally generated funds 71,445 101,680 121,934 770 1,367 29,143 (27,777) -95% 121,934

Total sources of capital funds 153,181 682,362 702,616 30,241 99,906 174,314 (74,408) -43% 702,616

Financial position

Total current assets 563,888 707,018 707,018 573,006 707,018

Total non current assets 7,528,860 7,880,130 7,900,384 7,501,847 7,900,384

Total current liabilities 2,081,088 989,855 989,855 1,894,724 989,855

Total non current liabilities 611,331 528,817 528,817 602,056 528,817

Community w ealth/Equity 5,400,329 7,068,475 7,088,729 5,578,074 7,088,729

Cash flows

Net cash from (used) operating 503,917 635,595 635,595 (380) 20,165 158,899 138,733 87% 635,595

Net cash from (used) inv esting (435,106) (614,126) (614,126) (14,515) (66,753) (153,531) (86,778) 57% (614,126)

Net cash from (used) financing (36,663) (29,971) (29,971) – (6,991) (7,493) (502) 7% (29,971)

Cash/cash equivalents at the month/year end 126,051 86,698 86,698 – 161,033 93,074 (67,958) -73% 206,109

Debtors & creditors analysis 0-30 Days 31-60 Days 61-90 Days 91-120 Days 121-150 Dys 151-180 Dys181 Dys-

1 YrOver 1Yr Total

Debtors Age Analysis

Total By Income Source 132,414 427 58,227 38,098 28,556 27,692 118,010 92,293 495,718

Creditors Age Analysis

Total Creditors 84,297 136,747 122,470 152,942 33,923 24,366 135,542 382,512 1,072,800

Description

Budget Year 2019/20

5

1. First Quarter Operating budget performance 1.1 First Quarter Revenue performance analysis The table below indicates the detailed operating revenue performance for the first quarter period ended 30 September 2019. It reflects the operating revenue by source and variances thereof. The City generates revenue from the different revenue sources as tabulated below, and constant monitoring is required to ensure that the year to date projected revenue, compared against the year to date actual, does not vary significantly unless otherwise stated. It is against this background that revenue performance analysis must be regularly performed and corrective measures taken where necessary. The City must continue to implement its revenue enhancement strategy as well as ensuring that revenue protection measures are put in place to curb any loss of revenue from the City. The performance on the year to date operating revenue budget against the year to date actual is reflected below.

2018/19

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

Revenue By Source

Property rates 631,719 642,360 642,360 52,931 163,998 160,590 3,408 2% 642,360

Serv ice charges - electricity rev enue 995,106 1,119,104 1,119,104 100,466 289,750 279,776 9,974 4% 1,119,104

Serv ice charges - w ater rev enue 103,692 111,491 111,491 8,432 26,191 27,873 (1,682) -6% 111,491

Serv ice charges - sanitation rev enue 21,873 23,826 23,826 1,949 5,830 5,956 (126) -2% 23,826

Serv ice charges - refuse rev enue 121,157 130,556 130,556 10,787 31,989 32,639 (650) -2% 130,556

Rental of facilities and equipment 11,677 8,464 8,464 477 2,065 2,116 (51) -2% 8,464

Interest earned - ex ternal inv estments 7,383 6,329 6,329 628 2,634 1,582 1,052 67% 6,329

Interest earned - outstanding debtors 27,028 27,345 27,345 2,446 6,822 6,836 (14) 0% 27,345

Div idends receiv ed –

Fines, penalties and forfeits 10,414 8,099 8,099 198 895 2,025 (1,130) -56% 8,099

Licences and permits 3,261 – – 7 3,092 – 3,092 #DIV/0! –

Agency serv ices 42,317 – – – – – – –

Transfers and subsidies 816,078 733,561 733,561 1,172 305,145 183,390 121,755 66% 733,561

Other rev enue 54,264 53,432 53,432 4,566 16,969 13,358 3,611 27% 53,432

Gains on disposal of PPE – – – – – – – –

Total Revenue (excluding capital transfers and

contributions)

2,845,969 2,864,567 2,864,567 184,060 855,380 716,141 139,238 19% 2,864,567

Description Ref

Budget Year 2019/20

MP326 City of Mbombela - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q1 First Quarter

Actual revenue recognised, excluding conditional grants revenue for the first quarter period ended 30 September 2019 amounted to R855 million. The statement of financial performance reflects a year to date first quarter actual revenue amounting to R855 million against a year to date budget projection amount of R716 million thus reflecting an over performance of 19 percent or R139 million.

The over performance of 19 percent or R139 million is mainly attributable to the following revenue sources. In terms of best practices all variances below 10 percent is within the acceptable range while variances above 10 percent requires some explanation and proposal for a way forward made to keep all variances within the acceptable range.

6

(a) Interest earned on external investments over performed by 67 percent or R1 million, mainly resulting from ring-fenced grants received and placed on short term investments. Capital and operating grants received are kept in short term investment which earns the City income in the form of interest.

(b) Operational grants revenue received over performed by 66 percent, with a first

quarter actual amount received amounting to R305 million against the year to date projected budget amount of R183 million. This is mainly due to the equitable share grant received during the month of July 2019 amounting to R302 million. Grants allocation is done by National Treasury through its approved grants allocation schedule and the year to date actual allocation received so far is in line with the approved schedule.

(c) Other revenue collected during the reporting period amounted to R17 million

resulting in 27 percent (R4 million) over performance when comparing the year to date actual amount of R17 million against the planned target of R13 million. The over performance is attributable to an over collection of bad debts, collection charges and administrative handling fees.

An under performance was however realised on the following revenue streams:

(a) Revenue from traffic fines received during the reporting period amounted to

R895 thousand resulting in an underperformance of 56 percent or R1 million, against the year to date budget projection of R2 million. This significant variance is mainly due to the operational accounting of traffic fines on a cash basis during the year and subsequently at year end, on accrual basis of accounting in accordance with the Generally Recognised Accounting Practice Framework.

1.2 First Quarter Operating Expenditure Performance analysis The table below reflects the detailed operating expenditure performance for the first quarter period ended 30 September 2019. It is the City’s main priority to cut cost while ensuring that critical service delivery is not affected. The implementation of the cost curtailment strategy is therefore paramount in achieving this objective, deeming it critical for the City to continue monitoring spending and ensuring that it is done within the ambit of the policies and the applicable legislation. This will ensure that resources are directed towards the most critical priority areas and there is value for money for all expenditures incurred. The City is currently implementing its financial recovery plan which will help to ensure that more resources are mobilised for service delivery as well as payment of outstanding creditors which is the main challenge facing the City at this point in time. The details of all expenditure performance by type is outlined on the table below. It reflects the year to date expenditure projections against the actual year to date expenditure together with variances thereon.

7

2018/19

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budgetYTD variance YTD variance

Full Year

Forecast

R thousands %

Expenditure By Type

Employ ee related costs 936,266 1,010,483 1,010,483 90,420 266,241 252,622 13,619 5% 1,010,483

Remuneration of councillors 39,466 43,865 43,865 3,300 9,757 10,966 (1,209) -11% 43,865

Debt impairment 192,920 106,974 105,474 26,369 26,369 26,594 (225) -1% 105,474

Depreciation & asset impairment 506,469 545,585 543,885 126,962 126,962 136,088 (9,126) -7% 543,885

Finance charges 90,665 45,677 45,677 0 13,871 11,419 2,452 21% 45,677

Bulk purchases 746,300 839,462 837,462 126,037 222,979 209,666 13,314 6% 837,462

Other materials 50,345 54,212 48,555 1,927 6,047 12,745 (6,697) -53% 48,555

Contracted serv ices 628,395 406,824 443,024 45,868 81,980 107,760 (25,780) -24% 443,024

Transfers and subsidies 42,503 32,670 8,398 258 1,286 3,773 (2,487) -66% 8,398

Other ex penditure 242,909 164,175 163,104 16,570 33,841 40,854 (7,013) -17% 163,104

Loss on disposal of PPE 204 – – – – – – –

Total Expenditure 3,476,443 3,249,926 3,249,926 437,710 789,334 812,487 (23,154) -3% 3,249,926

MP326 City of Mbombela - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q1 First Quarter

Description Ref

Budget Year 2019/20

The actual expenditure incurred during the reporting period ended 30 September 2019 amounted to R789 million against the year to date budget amount of R812 million, which resulted in an underperformance or savings of 3 percent or R23 million. Underspending is due to the effective implementation of the cost curtailment strategy resulting targeting spending on critical service delivery programmes and projects. The City must continue to monitor the cost curtailment strategy so as to ensure that objectives of the strategy becomes a reality.

The 3 percent under spending or savings is mainly attributable to the following cost drivers:

(a) Remuneration of councillors year to date actual expenditure amounted to R10

million against the year to date budget amounting to R11 million resulting to a

saving of 11 percent or R1 million.

(b) Finance charges year to date actual expenditure amounted to R14 million against the year to date budget of R11 million resulting in an over spending of 21 percent or R2 million. This reflects cost of borrowing on long term loans received from financial institutions and payment is done in line with loan amortisation table.

(c) Other material actual expenditure amounted to R6 million against the year to date budget amounting to R13 million resulting in a saving of R7 million or 53 percent. This saving is mainly due to cost curtailment strategy implemented by the City which helps to minimise spending and only prioritised service that are regarded as critical and cannot be postponed or delayed.

(d) Contracted services actual expenditure amounted to R82 million against the year

to date budget amounting to R108 million resulting in a saving of R26 million or 24 percent. The saving is due to effective implementation of the cost curtailment strategy as well as cutting down the use of consultants as well as minimising on

8

catering services during meetings as required by the cost containment regulations.

(e) Transfers and Subsidies actual expenditure amounted to R1 million against the year to date budget amounting to R4 million.

(f) Other Expenditure registered the year to date actual expenditure amounting to R34 million against a year to date budget amounting to R41 million reflecting a saving of R7 million or 17 percent. The cost curtailment measures currently implemented by the City is the cause of this saving.

1.3 Fruitless and wasteful expenditure for the first quarter period The table below provides a summary of the first quarter fruitless and wasteful

expenditure incurred. An amount of R6.4 million was incurred as fruitless and

wasteful expenditure due to interest charged by Eskom for late payments. Eskom

charges interest on overdue accounts after 30 days on sending of electricity bill for

the bulk accounts and 15 days for the large power user accounts (LPU’s) in terms of

the Electricity supply agreement. Also an amount of R17 thousand was due to

interest charged by other service providers like Telkom for late payment.

First Quarter Results for the Fruitless and Wasteful Expenditure

Description Amount

Interest Charged by Eskom due to late payment R6 396 438.43

Interest charged – Telkom due to late payment R16 595.85

Interest Charged – Rudamans R544.24

Total Fruitless and Wasteful Expenditure R6 413 578.52

The Finance Department is taking a preventative initiative to minimise the interest charged by suppliers due to cash flow constraints by prioritising those interest bearing creditors.

1.4 First Quarter Capital expenditure budget analysis

For the month of September 2019, actual capital expenditure amounted to R30 million with the year to date actual expenditure amount of R100 million. The year to date budget projection amount to R174 million and reflects an underperformance of R74 million. For the month of September 2019, an amount of R29 million was spent from conditional grants while R770 thousand was incurred on projects funded from internal funding. The total amount spent on grants amounted to R99 million and R1 million from internally funded projects. The year to date actual capital expenditure amounted to R100 million against the year to date budget amounting to R174

9

million. The City will continue to improve spending on all capital projects funded from conditional grants as required by the Division of Revenue Act no 10 of 2014. The capital budget performance for the month of September is outlined below.

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budgetYTD variance YTD variance

Full Year

Forecast

R thousands 1 %

Funded by:

National Gov ernment 81,736 572,682 572,682 27,228 96,296 143,171 (46,875) -33% 572,682

Prov incial Gov ernment –

District Municipality –

Other transfers and grants – 8,000 8,000 2,243 2,243 2,000 243 12% 8,000

Transfers recognised - capital 81,736 580,682 580,682 29,471 98,539 145,171 (46,631) -32% 580,682

Borrowing 6 – –

Internally generated funds 71,445 101,680 121,934 770 1,367 29,143 (27,777) -95% 121,934

Total Capital Funding 153,181 682,362 702,616 30,241 99,906 174,314 (74,408) -43% 702,616

MP326 City of Mbombela - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, functional classification and funding) - Q1 First Quarter

Vote Description Ref

1.4.1 First quarter capital budget summary per department The table below reflects the actual capital expenditure performance per department reflecting a year to date spending amounting to R100 million which equals to 15 percent of the original approved budget. Spending is high on the service delivery departments such as Public works and transport, Water and sanitation then energy. This therefore demonstrate the City’s spending plans which is biased towards critical service delivery projects which are mostly funded through conditional grants.

DEPARTMENT ORIGINAL

2019

BUDGET

AMENDED

2019

BUDGET

JULY

2019

ACTUAL

AUGUST

2019

ACTUAL

SEPTEMBER

2019

ACTUAL

FIRST QUARTER

2019

ACTUAL

2019/2020

% SPENT

CITY PLANNING AND DEVELOPMENT 18,000,000R 16,500,000R -R -R -R -R 0%

ENERGY 51,510,000R 53,510,000R -R 3,852,666R 3,514,323R 7,366,989R 14%

PUBLIC WORKS & TRANSPORT 453,998,408R 455,498,408R 18,206,648R 30,019,542R 17,236,114R 65,462,304R 14%

WATER AND SANITATION 110,173,593R 119,042,487R 16,988,881R -R 9,426,188R 26,415,069R 24%

PUBLIC SAFETY 200,000R 5,813,623R -R -R -R -R 0%

FINANCIAL MANAGEMENT 14,000,000R 15,000,000R -R -R -R -R 0%

REGIONAL CENTRE CO-ORDINATION 1,400,000R 1,400,000R 467,344R 129,435R -R 596,779R 43%

OFFICE OF COUNCIL 280,000R 280,000R -R -R -R -R 0%

CORPORATE SERVICES 24,172,000R 25,922,151R -R -R 64,799R 64,799R 0%

COMMUNITY SERVICES 8,900,000R 9,649,430R -R -R -R -R 0%

TOTAL BUDGET & EXPENDITURE 682,634,001R 702,616,099R 35,662,873R 34,001,643R 30,241,424R 99,905,940R 15%

2019/2020 FIRST QUARTER CAPITAL BUDGET EXPENDITURE PERFORMANCE OUTCOME PER DEPARTMENT

10

1.4.2 Conditional and Unconditional Grants performance statement

The table below reflect total grants and subsidies approved in terms of the Division of Revenue Act no 10 of 2014.

For the 2019/2020 total grants amounting to R1.3 billion was approved for the City of Mbombela municipality. The year to date actual expenditure on grants amounted to R298 million which amount to 23 percent of the total allocation. The total amount of R1 billion is the balance unspent at the end of the first quarter 2019.

DESCRIPTION 2019/2020

APPROVED DORA

ALLOCATION

2019/2020

DORA

AMMENDED

2019/2020

DORA TOTAL

AMMENDED

2019/2020

ACTUALS

EXPENDITURE

BALANCE

NOT SPEND

2019/2020 %

EXPENDITURE

Finance Management Grant 2,500,000R -R 2,500,000R -R 2,500,000R 0%

Municipal Infrastructure Grant 333,753,000R -R 333,753,000R 84,513,809R 249,239,191R 25%

Intergrated National Electrification Programme 27,010,000R -R 27,010,000R 5,892,247R 21,117,753R 22%

Neighbourhood Partnership Grant 15,000,000R -R 15,000,000R -R 15,000,000R 0%

Public Transport Network Grant 198,919,000R -R 198,919,000R 20,334,270R 178,584,730R 10%

Electricity demand Side Management 8,000,000R -R 8,000,000R 2,579,790R 5,420,210R 32%

Expanded PWP Programme Incentive Grant 5,836,000R -R 5,836,000R 2,968,110R 2,867,890R 51%

Equitable Share 725,225,000R -R 725,225,000R 181,306,250R 543,918,750R 25%

TOTAL 1,316,243,000R -R 1,316,243,000R 297,594,476R 1,018,648,524R 23%

2019/2020 FIRST QUARTER GRANT EXPENDITURE FOR THE CITY OF MBOMBELA

1.4.3 Conditional and Unconditional Grants Receipts

The table below reflects the performance of all grants received for the period ended 30 September 2019. Actual grants amounting to R493 million was received for the period ending 30 September 2019 which amount to 37 percent of the total allocation for the year. An amount of R823 million is still to be received in line with the approved schedule administered by the National Treasury.

DESCRIPTION 2019/2020

APPROVED DORA

ALLOCATION

2019/2020

DORA

AMMENDED

2019/2020

DORA TOTAL

AMMENDED

2019/2020

ACTUALS

RECEIVED

BALANCE

NOT

RECEIVED

2019/2020 %

RECEIVED

Finance Management Grant 2,500,000R -R 2,500,000R 2,500,000R -R 100%

Municipal Infrastructure Grant 333,753,000R -R 333,753,000R 145,000,000R 188,753,000R 43%

Intergrated National Electrification Programme 27,010,000R -R 27,010,000R 10,000,000R 17,010,000R 37%

Neighbourhood Partnership Grant 15,000,000R -R 15,000,000R -R 15,000,000R 0%

Municipal Dermacation Transition Grant -R -R -R -R -R 0%

Water Services Infrastructure Grant -R -R -R -R -R 0%

Electricity demand Side Management 8,000,000R -R 8,000,000R 2,000,000R 6,000,000R 25%

Public Transport Network Grant 198,919,000R -R 198,919,000R 29,838,000R 169,081,000R 15%

Expanded PWP Programme Incentive Grant 5,836,000R -R 5,836,000R 1,459,000R 4,377,000R 25%

Equitable Share 725,225,000R -R 725,225,000R 302,177,000R 423,048,000R 42%

TOTAL 1,316,243,000R -R 1,316,243,000R 492,974,000R 823,269,000R 37%

2019/2020 FIRST QUARTER GRANT RECEIPT FOR THE CITY OF MBOMBELA LOCAL MUNICIPALITY

11

1.5 Cash-flow budget performance The net cash flows from operating activities amounts to R20 million. Cash utilised for investing activities amounted to R67 million in comparison with the R154 million planned budget projection.

An amount of R7 million was used for repayment of borrowings. The cash and cash equivalents as at 30 September 2019 reflect a favourable balance of R161 million.

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands 1 %

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates 606,607 610,242 610,242 39,460 158,479 152,561 5,918 4% 610,242

Serv ice charges 984,333 1,315,728 1,315,728 97,259 258,637 328,932 (70,295) -21% 1,315,728

Other rev enue 129,498 66,496 66,496 1,592 7,555 16,624 (9,069) -55% 66,496

Gov ernment - operating 711,372 733,561 733,561 – – 183,390 (183,390) -100% 733,561

Gov ernment - capital 462,555 582,682 582,682 – – 145,671 (145,671) -100% 582,682

Interest 34,411 32,306 32,306 104 1,057 8,077 (7,020) -87% 32,306

Div idends – – – – - – –

Payments

Suppliers and employ ees (2,288,007) (2,630,453) (2,630,453) (138,796) (376,551) (657,613) (281,062) 43% (2,630,453)

Finance charges (90,180) (44,764) (44,764) – (29,011) (11,191) 17,820 -159% (44,764)

Transfers and Grants (46,672) (30,203) (30,203) – – (7,551) (7,551) 100% (30,203)

NET CASH FROM/(USED) OPERATING ACTIVITIES 503,917 635,595 635,595 (380) 20,165 158,899 138,733 87% 635,595

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE 268 – – – – – – –

Decrease (Increase) in non-current debtors 1,870 – – – – – – –

Decrease (increase) other non-current receiv ables 18,398 – – – – – – –

Decrease (increase) in non-current inv estments – – – – – – –

Payments

Capital assets (455,642) (614,126) (614,126) (14,515) (66,753) (153,531) (86,778) 57% (614,126)

NET CASH FROM/(USED) INVESTING ACTIVITIES (435,106) (614,126) (614,126) (14,515) (66,753) (153,531) (86,778) 57% (614,126)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – – – – – – –

Borrow ing long term/refinancing – – – – – – –

Increase (decrease) in consumer deposits – – – – – – –

Payments

Repay ment of borrow ing (36,663) (29,971) (29,971) – (6,991) (7,493) (502) 7% (29,971)

NET CASH FROM/(USED) FINANCING ACTIVITIES (36,663) (29,971) (29,971) – (6,991) (7,493) (502) 7% (29,971)

NET INCREASE/ (DECREASE) IN CASH HELD 32,148 (8,502) (8,502) (14,896) (53,578) (2,126) (8,502)

Cash/cash equiv alents at beginning: 93,903 95,200 95,200 214,611 95,200 214,611

Cash/cash equiv alents at month/y ear end: 126,051 86,698 86,698 161,033 93,074 206,109

Description Ref

MP326 City of Mbombela - Table C7 Monthly Budget Statement - Cash Flow - Q1 First Quarter

The bank and investment accounts portfolio of the municipality as at 30 September is tabulated below.

DESCRIPTION Jul-19 Aug-19 Sep-19

Operational Bank Account 236 782 733R 126 546 825R 91 752 856R

Conditional Grants Bank Accounts 513 830R 325 043R 325 889R

Non-Current Investments Accounts -R -R -R

Current Investments Accounts -R -R -R

TOTAL BANK BALANCE 237 296 562R 126 871 869R 92 078 745R

2019/2020 BANK AND INVESTMENT PORTFOLIO

12

1.6 Current Assets - Account Receivables (Debtors)

Trade receivables or debtors amounting to R496 million were outstanding as at 30 September 2019.

The monthly average collection rate for the period ended 30 September 2019 was 83 percent on the current account, thus reflecting an under performance of 12 percent against the projected collection rate of 95 percent.

1.6.1 Credit Control Enforcement

As a result of credit control measures implemented during the reporting period ended 30 September 2019, an amount of R11 million was collected and levies to the amount of R630 thousand was paid for services rendered.

MONTH

DESCRIPTION LEVIES CASH

JULY 591 811R 18 332 904R

AUGUST 848 348R 13 118 774R

SEPTEMBER 629 546R 10 518 537R

TOTAL 2 069 705R 41 970 215R

FINANCIAL PERFORMANCE

2019/2020 FIRST QUARTER CREDIT CONTROL ENFORCEMENT OUTCOME

1.7 Current Liabilities - Account Payables (Creditors)

The trade payables as at 30 September 2019 amounted to R1 073 billion compared with the trade payables balance of R1,7 billion as per the unaudited annual financial statements for the year ended 30 June 2019.

DescriptionJuly

2019

August

2019

September

2019

Eskom R 290 Million R 347 Million R 380 Million

Department of Water Affairs R 134 Million R 111 Million R 140 Million

Trade Creditors R 348 Million R 272 Million R 205 Million

Department of Safety and Community Liaison R 317 Million R 327 Million R 325 Million

Other Payables R 12 Million R 26 Million R 23 Million

Total Payables R1,121 Billion R1,084 Billion R1,073 Billion

FIRST QUARTER PAYABLES FOR THE CITY OF MBOMBELA

13

1.8 Non–Current Liabilities- Interest Bearing Borrowings

The table below outlines the schedule of interest bearing borrowings as at 30 September 2019. The long term loan balance for the period ending 30 September 2019 amounted to R261 million. The Development bank of Southern Africa long term loan balance amounted to R256 million while Standard bank South Africa long term loan balance amounted to R4.7 million.

Capital Interest Addiotnal

Acrued/Received

DBSA 15-05-1998 18 YEARS 22,000,000R -R -R -R -R -R

DBSA ( 61000942) 31-12-2030 20 YEARS 200,000,000R 128,155,764R -R -R -R 128,155,764R

DBSA ( 61007101) 29-06-2029 15 YEARS 138,600,000R 128,129,890R -R -R -R 128,129,890R

DBSA ( 61007226) 30-06-2019 5 YEARS 21,600,000R -R -R -R -R -R

STD Bank(406816) 15 YEARS 25,000,000R 4,743,943R -R -R -R 4,743,943R

DBSA ( 61001347 ) 31-03-2018 20 YEARS 1,881,822R -R -R -R -R -R

DBSA ( 61003110) 31-03-2019 20 YEARS 1,417,073R -R -R -R -R -R

DBSA ( 61003142) 30-09-2019 20 YEARS 915,450R -R -R -R -R -R

411,414,345.76R 261,029,597.13R -R -R -R 261,029,597.13R

LONG TERM BORROWING STATEMENT FOR THE PERIOD ENDING 30 SEPTEMBER 2019

Total

LOAN BALANCE AS

AT 31/08/2019BORROWER

LOAN

REDEMPTION

DATE

LOAN

TERM

ORIGINAL LOAN

AMOUNT

LOAN BALANCE AS

AT 01/08/2019

Actual repayment

14

IN-YEAR BUDGET STATEMENTS TABLES

Table C2: Financial Performance by Vote

Table C2 measures the monthly actuals against the year to date SDBIP figures which are realised per vote for revenue and expenditure.

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands 1 %

Revenue - Functional

Governance and administration 1,375,736 1,433,068 1,433,068 59,676 490,048 358,267 131,781 37% 1,433,068

Ex ecutiv e and council 70 951 951 2 (2) 238 (240) -101% 951

Finance and administration 1,375,666 1,432,117 1,432,117 59,674 490,050 358,029 132,021 37% 1,432,117

Internal audit – 0 0 – – 0 (0) -100% 0

Community and public safety 18,415 9,984 9,984 438 1,511 2,496 (985) -39% 9,984

Community and social serv ices 1,769 907 907 182 540 227 313 138% 907

Sport and recreation 8,064 1,538 1,538 44 68 385 (317) -82% 1,538

Public safety 8,582 7,539 7,539 211 904 1,885 (981) -52% 7,539

Housing – – – – – – – –

Health – – – – – – – –

Economic and environmental services 593,341 579,816 579,816 31,883 114,227 144,954 (30,727) -21% 579,816

Planning and dev elopment 547,751 578,801 578,801 31,882 110,965 144,700 (33,735) -23% 578,801

Road transport 45,589 1,014 1,014 1 3,262 254 3,008 1186% 1,014

Env ironmental protection – 0 0 – – 0 (0) -100% 0

Trading services 1,277,078 1,424,381 1,424,381 125,955 363,100 356,095 7,005 2% 1,424,381

Energy sources 1,027,126 1,154,044 1,154,044 104,500 298,225 288,511 9,714 3% 1,154,044

Water management 106,922 115,954 115,954 8,718 27,056 28,988 (1,933) -7% 115,954

Waste w ater management 21,874 23,826 23,826 1,950 5,830 5,957 (126) -2% 23,826

Waste management 121,157 130,556 130,556 10,787 31,989 32,639 (650) -2% 130,556

Other 4 – – – – – – – –

Total Revenue - Functional 2 3,264,570 3,447,249 3,447,249 217,953 968,887 861,812 107,075 12% 3,447,249

Expenditure - Functional

Governance and administration 851,650 705,478 706,521 82,189 158,048 176,673 (18,624) -11% 706,521

Ex ecutiv e and council 129,996 154,914 155,127 9,734 28,712 38,838 (10,126) -26% 155,127

Finance and administration 710,858 541,158 541,987 70,558 125,150 135,483 (10,333) -8% 541,987

Internal audit 10,795 9,407 9,407 1,897 4,186 2,352 1,834 78% 9,407

Community and public safety 311,538 423,028 424,673 29,186 81,531 105,929 (24,398) -23% 424,673

Community and social serv ices 45,590 69,354 70,685 3,287 11,879 17,469 (5,590) -32% 70,685

Sport and recreation 159,885 197,145 197,162 9,945 30,186 49,297 (19,111) -39% 197,162

Public safety 95,562 143,384 143,681 15,298 35,610 35,876 (266) -1% 143,681

Housing 10,501 13,144 13,144 656 3,855 3,286 569 17% 13,144

Health – – – – – – – –

Economic and environmental services 561,853 452,958 456,254 81,706 125,561 113,685 11,876 10% 456,254

Planning and dev elopment 91,629 169,078 168,517 6,655 30,404 42,129 (11,725) -28% 168,517

Road transport 451,531 275,147 275,003 72,303 90,617 68,789 21,828 32% 275,003

Env ironmental protection 18,692 8,734 12,734 2,748 4,540 2,767 1,773 64% 12,734

Trading services 1,736,960 1,634,905 1,628,922 243,201 420,002 407,812 12,190 3% 1,628,922

Energy sources 909,869 946,116 942,316 154,615 265,701 236,002 29,699 13% 942,316

Water management 455,323 304,170 302,685 43,684 72,366 75,763 (3,396) -4% 302,685

Waste w ater management 25,508 143,042 142,807 4,107 7,336 35,721 (28,385) -79% 142,807

Waste management 346,260 241,577 241,114 40,794 74,599 60,327 14,272 24% 241,114

Other 14,442 33,557 33,557 1,428 4,192 8,389 (4,198) -50% 33,557

Total Expenditure - Functional 3 3,476,443 3,249,926 3,249,926 437,710 789,334 812,487 (23,154) -3% 3,249,926

Surplus/ (Deficit) for the year (211,873) 197,322 197,323 (219,757) 179,553 49,325 130,228 264% 197,323

RefDescription

MP326 City of Mbombela - Table C2 Monthly Budget Statement - Financial Performance (functional classification) - Q1 First Quarter

15

1.1 Table C4: Financial Performance by Revenue Source and Expenditure Type

This table below provides the details for revenue by source and expenditure by type for the period ended 30 September 2019.

2018/19

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

Revenue By Source

Property rates 631,719 642,360 642,360 52,931 163,998 160,590 3,408 2% 642,360

Serv ice charges - electricity rev enue 995,106 1,119,104 1,119,104 100,466 289,750 279,776 9,974 4% 1,119,104

Serv ice charges - w ater rev enue 103,692 111,491 111,491 8,432 26,191 27,873 (1,682) -6% 111,491

Serv ice charges - sanitation rev enue 21,873 23,826 23,826 1,949 5,830 5,956 (126) -2% 23,826

Serv ice charges - refuse rev enue 121,157 130,556 130,556 10,787 31,989 32,639 (650) -2% 130,556

Rental of facilities and equipment 11,677 8,464 8,464 477 2,065 2,116 (51) -2% 8,464

Interest earned - ex ternal inv estments 7,383 6,329 6,329 628 2,634 1,582 1,052 67% 6,329

Interest earned - outstanding debtors 27,028 27,345 27,345 2,446 6,822 6,836 (14) 0% 27,345

Div idends receiv ed –

Fines, penalties and forfeits 10,414 8,099 8,099 198 895 2,025 (1,130) -56% 8,099

Licences and permits 3,261 – – 7 3,092 – 3,092 #DIV/0! –

Agency serv ices 42,317 – – – – – – –

Transfers and subsidies 816,078 733,561 733,561 1,172 305,145 183,390 121,755 66% 733,561

Other rev enue 54,264 53,432 53,432 4,566 16,969 13,358 3,611 27% 53,432

Gains on disposal of PPE – – – – – – – –

Total Revenue (excluding capital transfers and

contributions)

2,845,969 2,864,567 2,864,567 184,060 855,380 716,141 139,238 19% 2,864,567

Expenditure By Type

Employ ee related costs 936,266 1,010,483 1,010,483 90,420 266,241 252,622 13,619 5% 1,010,483

Remuneration of councillors 39,466 43,865 43,865 3,300 9,757 10,966 (1,209) -11% 43,865

Debt impairment 192,920 106,974 105,474 26,369 26,369 26,594 (225) -1% 105,474

Depreciation & asset impairment 506,469 545,585 543,885 126,962 126,962 136,088 (9,126) -7% 543,885

Finance charges 90,665 45,677 45,677 0 13,871 11,419 2,452 21% 45,677

Bulk purchases 746,300 839,462 837,462 126,037 222,979 209,666 13,314 6% 837,462

Other materials 50,345 54,212 48,555 1,927 6,047 12,745 (6,697) -53% 48,555

Contracted serv ices 628,395 406,824 443,024 45,868 81,980 107,760 (25,780) -24% 443,024

Transfers and subsidies 42,503 32,670 8,398 258 1,286 3,773 (2,487) -66% 8,398

Other ex penditure 242,909 164,175 163,104 16,570 33,841 40,854 (7,013) -17% 163,104

Loss on disposal of PPE 204 – – – – – – –

Total Expenditure 3,476,443 3,249,926 3,249,926 437,710 789,334 812,487 (23,154) -3% 3,249,926

Surplus/(Deficit) (630,474) (385,360) (385,359) (253,649) 66,046 (96,346) 162,392 (0) (385,359) Transfers and subsidies - capital (monetary allocations)

(National / Prov incial and District) 418,601 582,682 582,682 33,892 113,320 145,670 (32,350) (0) 582,682 Transfers and subsidies - capital (monetary allocations)

(National / Prov incial Departmental Agencies,

Households, Non-profit Institutions, Priv ate Enterprises,

Public Corporatons, Higher Educational Institutions) – – – – – – – –

Transfers and subsidies - capital (in-kind - all) – – – – 187 – 187 #DIV/0! –

Surplus/(Deficit) after capital transfers &

contributions

(211,873) 197,322 197,323 (219,757) 179,553 49,325 197,323

Tax ation –

Surplus/(Deficit) after taxation (211,873) 197,322 197,323 (219,757) 179,553 49,325 197,323

Attributable to minorities

Surplus/(Deficit) attributable to municipality (211,873) 197,322 197,323 (219,757) 179,553 49,325 197,323

Share of surplus/ (deficit) of associate

Surplus/ (Deficit) for the year (211,873) 197,322 197,323 (219,757) 179,553 49,325 197,323

Description Ref

Budget Year 2019/20

MP326 City of Mbombela - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q1 First Quarter

16

1.2 Table C5: Capital Expenditure by Vote

Table C5 indicates the actuals figures on capital expenditure for all votes and measures the year-to-date actuals against the year to date planning (SDBIP) figures. For the month of September 2019, capital expenditure amounting to R30 million was incurred.

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands 1 %

Multi-Year expenditure appropriation 2

Vote 01 - Council – – – – – – – –

Vote 02 - Office Of Council – – – – – – – –

Vote 03 - Municipal Manager – – – – – – – –

Vote 04 - City Planning And Dev elopment Department 19,444 – – – – – – –

Vote 05 - Corporate Serv ices Department – – – – – – – –

Vote 06 - Strategic Management Serv ices – – – – – – – –

Vote 07 - Financial Management – – 1,000 – – 182 (182) -100% 1,000

Vote 08 - Legal Serv ices – – – – – – – –

Vote 09 - Regional Centre Coordination – – – – – – – –

Vote 10 - Community Serv ices – 2,500 2,500 – – 625 (625) -100% 2,500

Vote 11 - Public Works, Roads And Transport 7,286 286,323 290,323 4,414 20,998 71,981 (50,983) -71% 290,323

Vote 12 - Public Safety – – – – – – – –

Vote 13 - Water And Sanitation 4,386 47,674 40,778 8,340 8,340 11,483 (3,143) -27% 40,778

Vote 14 - Energy (2,567) 13,340 13,340 1,271 3,284 3,335 (51) -2% 13,340

Vote 15 - Other – – – – – – – –

Total Capital Multi-year expenditure 4,7 28,549 349,837 347,941 14,025 32,623 87,606 (54,983) -63% 347,941

Single Year expenditure appropriation 2

Vote 01 - Council – – – – – – – –

Vote 02 - Office Of Council – 280 280 – – 70 (70) -100% 280

Vote 03 - Municipal Manager – – – – – – – –

Vote 04 - City Planning And Dev elopment Department (18,698) 18,000 16,500 – – 4,350 (4,350) -100% 16,500

Vote 05 - Corporate Serv ices Department 955 23,900 25,922 65 65 6,383 (6,319) -99% 25,922

Vote 06 - Strategic Management Serv ices – – – – – – – –

Vote 07 - Financial Management 17,171 14,000 14,000 – – 3,500 (3,500) -100% 14,000

Vote 08 - Legal Serv ices – – – – – – – –

Vote 09 - Regional Centre Coordination 404 1,400 1,400 – 597 350 247 71% 1,400

Vote 10 - Community Serv ices 2,600 6,400 7,149 – – 1,736 (1,736) -100% 7,149

Vote 11 - Public Works, Roads And Transport 98,244 169,175 166,175 12,822 44,464 41,769 2,695 6% 166,175

Vote 12 - Public Safety – 200 5,814 – – 1,071 (1,071) -100% 5,814

Vote 13 - Water And Sanitation 20,787 61,000 77,265 1,086 18,075 17,573 502 3% 77,265

Vote 14 - Energy 3,168 38,170 40,170 2,243 4,083 9,906 (5,824) -59% 40,170

Vote 15 - Other – – – – – – – –

Total Capital single-year expenditure 4 124,632 332,525 354,675 16,216 67,283 86,708 (19,425) -22% 354,675

Total Capital Expenditure 153,181 682,362 702,616 30,241 99,906 174,314 (74,408) -43% 702,616

Capital Expenditure - Functional Classification

Governance and administration 18,530 39,580 43,602 65 662 10,667 (10,006) -94% 43,602

Ex ecutiv e and council – 280 280 – – 70 (70) -100% 280

Finance and administration 18,530 39,300 43,322 65 662 10,597 (9,936) -94% 43,322

Internal audit –

Community and public safety 1,844 56,100 49,250 2,892 3,640 13,152 (9,511) -72% 49,250

Community and social serv ices 405 38,200 35,600 1,794 2,541 9,020 (6,479) -72% 35,600

Sport and recreation 1,439 17,900 13,649 1,099 1,099 4,132 (3,033) -73% 13,649

Public safety – – – – – – – –

Housing – – – – – – – –

Health –

Economic and environmental services 92,019 386,069 393,669 14,344 46,986 97,650 (50,664) -52% 393,669

Planning and dev elopment – 90,518 89,018 3,088 3,088 22,480 (19,391) -86% 89,018

Road transport 92,019 295,551 304,651 11,256 43,898 75,170 (31,272) -42% 304,651

Env ironmental protection –

Trading services 40,041 200,613 216,095 12,941 48,618 52,845 (4,227) -8% 216,095

Energy sources 601 51,510 53,510 3,514 7,367 13,241 (5,874) -44% 53,510

Water management 19,873 112,174 112,674 8,721 35,612 28,318 7,294 26% 112,674

Waste w ater management 18,810 32,229 45,598 705 5,639 10,283 (4,644) -45% 45,598

Waste management 757 4,700 4,314 – – 1,002 (1,002) -100% 4,314

Other 746 – – – – – – –

Total Capital Expenditure - Functional Classification 3 153,181 682,362 702,616 30,241 99,906 174,314 (74,408) -43% 702,616

Funded by:

National Gov ernment 81,736 572,682 572,682 27,228 96,296 143,171 (46,875) -33% 572,682

Prov incial Gov ernment –

District Municipality –

Other transfers and grants – 8,000 8,000 2,243 2,243 2,000 243 12% 8,000

Transfers recognised - capital 81,736 580,682 580,682 29,471 98,539 145,171 (46,631) -32% 580,682

Borrowing 6 – –

Internally generated funds 71,445 101,680 121,934 770 1,367 29,143 (27,777) -95% 121,934

Total Capital Funding 153,181 682,362 702,616 30,241 99,906 174,314 (74,408) -43% 702,616

MP326 City of Mbombela - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, functional classification and funding) - Q1 First

Quarter

Vote Description Ref

17

1.3 Table C7: Budget Cash Flow Statement

Table C7 provides details of the monthly cash in and out flows. The cash and cash equivalents balance at the end of September 2019 amounted to R161 million, net-cash received from operating activities was R20 million, R67 million amount spent on investing activities, and cash and cash equivalent for September 2019 amounted to R161 million.

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands 1 %

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates 606,607 610,242 610,242 39,460 158,479 152,561 5,918 4% 610,242

Serv ice charges 984,333 1,315,728 1,315,728 97,259 258,637 328,932 (70,295) -21% 1,315,728

Other rev enue 129,498 66,496 66,496 1,592 7,555 16,624 (9,069) -55% 66,496

Gov ernment - operating 711,372 733,561 733,561 – – 183,390 (183,390) -100% 733,561

Gov ernment - capital 462,555 582,682 582,682 – – 145,671 (145,671) -100% 582,682

Interest 34,411 32,306 32,306 104 1,057 8,077 (7,020) -87% 32,306

Div idends – – – – - – –

Payments

Suppliers and employ ees (2,288,007) (2,630,453) (2,630,453) (138,796) (376,551) (657,613) (281,062) 43% (2,630,453)

Finance charges (90,180) (44,764) (44,764) – (29,011) (11,191) 17,820 -159% (44,764)

Transfers and Grants (46,672) (30,203) (30,203) – – (7,551) (7,551) 100% (30,203)

NET CASH FROM/(USED) OPERATING ACTIVITIES 503,917 635,595 635,595 (380) 20,165 158,899 138,733 87% 635,595

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE 268 – – – – – – –

Decrease (Increase) in non-current debtors 1,870 – – – – – – –

Decrease (increase) other non-current receiv ables 18,398 – – – – – – –

Decrease (increase) in non-current inv estments – – – – – – –

Payments

Capital assets (455,642) (614,126) (614,126) (14,515) (66,753) (153,531) (86,778) 57% (614,126)

NET CASH FROM/(USED) INVESTING ACTIVITIES (435,106) (614,126) (614,126) (14,515) (66,753) (153,531) (86,778) 57% (614,126)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – – – – – – –

Borrow ing long term/refinancing – – – – – – –

Increase (decrease) in consumer deposits – – – – – – –

Payments

Repay ment of borrow ing (36,663) (29,971) (29,971) – (6,991) (7,493) (502) 7% (29,971)

NET CASH FROM/(USED) FINANCING ACTIVITIES (36,663) (29,971) (29,971) – (6,991) (7,493) (502) 7% (29,971)

NET INCREASE/ (DECREASE) IN CASH HELD 32,148 (8,502) (8,502) (14,896) (53,578) (2,126) (8,502)

Cash/cash equiv alents at beginning: 93,903 95,200 95,200 214,611 95,200 214,611

Cash/cash equiv alents at month/y ear end: 126,051 86,698 86,698 161,033 93,074 206,109

Description Ref

MP326 City of Mbombela - Table C7 Monthly Budget Statement - Cash Flow - Q1 First Quarter

18

PART 2 – SUPPORTING DOCUMENTATION AND ADDITIONAL INFORMATION

2.1 Trade Receivables (debtors) Analysis

Supporting table SC3 provides a breakdown of the consumer debtors. The outstanding debtors at the end of September 2019 amounted to R496 million.

The debt of R496 million consists of R133 million (27 percent of the total debt of R496 million) which is collectable within 30 days, R59 million which is between 31 and 90 days overdue and R305 million which is more than 90 days old (62 percent of the total debt of R496 million). Continuous aggressive implementation of the credit control and debt collection measures is required to ensure that all funds for services rendered as well as rates services are paid to the City.

Description

R thousands

NT

Code0-30 Days 31-60 Days 61-90 Days 91-120 Days 121-150 Dys 151-180 Dys 181 Dys-1 Yr Over 1Yr Total

Total

over 90

days

Actual Bad

Debts Written

Off against

Debtors

Impairment -

Bad Debts i.t.o

Council Policy

Debtors Age Analysis By Income Source

Trade and Other Receiv ables from Ex change Transactions - Water 1200 8,357 5 5,426 3,895 3,296 3,894 12,700 2,755 40,327 26,539 – –

Trade and Other Receiv ables from Ex change Transactions - Electricity 1300 70,480 168 22,792 7,250 5,707 4,700 22,832 8,711 142,641 49,200 – –

Receiv ables from Non-ex change Transactions - Property Rates 1400 37,883 87 19,632 18,180 10,622 10,100 46,415 55,574 198,493 140,890 – –

Receiv ables from Ex change Transactions - Waste Water Management 1500 1,764 1 878 703 602 933 2,855 949 8,686 6,043 – –

Receiv ables from Ex change Transactions - Waste Management 1600 8,903 23 4,819 4,346 3,635 3,522 14,705 4,560 44,515 30,769 – –

Receiv ables from Ex change Transactions - Property Rental Debtors 1700 284 – 692 144 268 260 579 788 3,015 2,040 – –

Interest on Arrear Debtor Accounts 1810 2,573 1 2,123 1,921 2,904 2,664 10,933 15,469 38,588 33,891 – –

Recov erable unauthorised, irregular, fruitless and w asteful ex penditure 1820 – – – – – – – – – – – –

Other 1900 2,171 141 1,864 1,658 1,523 1,619 6,990 3,486 19,453 15,277 – –

Total By Income Source 2000 132,414 427 58,227 38,098 28,556 27,692 118,010 92,293 495,718 304,650 – –

2018/19 - totals only – –

Debtors Age Analysis By Customer Group

Organs of State 2200 19,963 70 13,787 10,922 4,631 4,590 25,622 52,446 132,031 98,210 – –

Commercial 2300 31,397 30 9,641 7,899 7,051 6,133 26,057 11,185 99,393 58,325 – –

Households 2400 80,366 325 34,374 18,866 16,489 16,570 65,024 28,402 260,416 145,352 – –

Other 2500 688 2 425 411 385 400 1,306 260 3,878 2,762 – –

Total By Customer Group 2600 132,414 427 58,227 38,098 28,556 27,692 118,010 92,293 495,718 304,650 – –

MP326 City of Mbombela - Supporting Table SC3 Monthly Budget Statement - aged debtors - Q1 First Quarter

Budget Year 2019/20

2.1.1 Municipal Payment Level The average payment level (collection rate) at the end of September 2019 was standing at 82 percent on current accounts. It under performed by 13 percent against the projected collection rate of 95 percent.

19

The tables below reflect the payment level per service as well as other sources of income.

20

21

2.1.2 Trade Payables (creditors) Analysis

Supporting table SC4 provides detail on aged creditors (payables). In terms of the MFMA all creditors are payable within 30 days of receipt of an invoice or a statement.

For the month ended 31 September 2019, aged creditors amounting to R1.73 billion were outstanding.

Budget Year 2019/20

R thousands

Creditors Age Analysis By Customer Type

Bulk Electricity 0100 68,859 106,745 112,101 87,940 4,426 – – – 380,071

Bulk Water 0200 135 1,367 997 1,034 6,971 129,641 140,146

PAYE deductions 0300 –

VAT (output less input) 0400 –

Pensions / Retirement deductions 0500 –

Loan repay ments 0600 20,488 20,488

Trade Creditors 0700 15,256 30,003 8,824 17,428 10,078 7,009 8,254 104,701 201,553

Auditor General 0800 10 59 99 3,176 8 3,352

Other 0900 48 1,534 22,362 15,098 12,121 81,896 194,267 327,326

Total By Customer Type 1000 84,297 136,747 122,470 149,644 30,698 20,164 100,298 428,617 1,072,936 –

Prior y ear

totals for chart

(same period)

MP326 City of Mbombela - Supporting Table SC4 Monthly Budget Statement - aged creditors - Q1 First Quarter

181 Days -

1 Year

Over 1

Year

Total61 -

90 Days

91 -

120 Days

121 -

150 Days

151 -

180 Days

Description NT

Code0 -

30 Days

31 -

60 Days

2.3 Investment Portfolio Analysis Currently the City does not have non-current investment and through proper implementation of the financial recovery plan which focuses mainly on radical implementation of the revenue enhancement as well as the cost curtailment strategies will help to raise more funds for delivering services as well generating investment.

2.4 Grant Allocation and Grant Receipts and Expenditure

Supporting tables SC6, 7(1) & 7(2) below provides details of transfers and grants received and appropriations thereof. With regards to the receipt of grants, the year-to-date actual amount received amounts to R493 million (R306 million operational grants and R187 conditional grants).

On the other hand, the year-to-date grant expenditure amounted to R298 million, R184 million expensed for operational grants and R113 million on capital grants for the period ending 30 September 2019.

22

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

RECEIPTS: 1,2

Operating Transfers and Grants

National Government: 741,898 733,561 733,561 – 306,136 183,390 122,746 66.9% 733,561

Energy Efficiency and Demand Side Management Grant – – – – – – – –

Equitable Share 661,329 725,225 725,225 – 302,177 181,306 120,871 66.7% 725,225

Ex panded Public Works Programme Integrated Grant 8,240 5,836 5,836 – 1,459 1,459 0 0.0% 5,836

Local Gov ernment Financial Management Grant 3,470 2,500 2,500 – 2,500 625 1,875 300.0% 2,500

Municipal Demarcation Transition Grant – – – – – – – –

Municipal Infrastructure Grant 3 – – – – – – – –

Municipal Sy stems Improv ement Grant – – – – – – – –

Public Transport Netw ork Grant 68,859 – – – – – – –

Public Transport Netw ork Operations Grant [Schedule 5B] – – – – – – – –

Other transfers and grants [insert description] –

Provincial Government: – – – – – – – –

–

Other transfers and grants [insert description] –

District Municipality: – – – – – – – –

[insert description] –

Other grant providers: 1,033 – – – – – – –

Injury on Duty – – – – – – – –

Municipal Demarcation Board – – – – – – – –

National Heritage Council South Africa – – – – – – – –

Social Relief – – – – – – – –

Unspecified 1,033 – – – – – – –

Total Operating Transfers and Grants 5 742,931 733,561 733,561 – 306,136 183,390 122,746 66.9% 733,561

Capital Transfers and Grants

National Government: 418,601 582,682 582,682 – 186,838 145,670 41,168 28.3% 582,682

Energy Efficiency and Demand Side Management Grant – – – – 2,000 – 2,000 –

Integrated National Electrification Programme Grant 26,996 35,010 35,010 – 10,000 8,752 1,248 14.3% 35,010

Municipal Infrastructure Grant 293,001 333,753 333,753 – 145,000 83,438 61,562 73.8% 333,753

Municipal Water Infrastructure Grant – – – – – – – –

Neighbourhood Dev elopment Partnership Grant 29,161 15,000 15,000 – – 3,750 (3,750) -100.0% 15,000

Public Transport Netw ork Grant 69,444 198,919 198,919 – 29,838 49,730 (19,892) -40.0% 198,919

Public Transport Netw ork Operations Grant [Schedule 5B] – – – – – – – –

Water Serv ices Infrastructure Grant – – – – – – – –

Provincial Government: – – – – – – – –

[insert description] –

District Municipality: – – – – – – – –

[insert description] –

Other grant providers: – – – – – – – –

[insert description] –

Limpopo Roads Agency – – – – – – – –

Unspecified – – – – – – – –

Total Capital Transfers and Grants 5 418,601 582,682 582,682 – 186,838 145,670 41,168 28.3% 582,682

TOTAL RECEIPTS OF TRANSFERS & GRANTS 5 1,161,532 1,316,243 1,316,243 – 492,974 329,061 163,913 49.8% 1,316,243

Description Ref

MP326 City of Mbombela - Supporting Table SC6 Monthly Budget Statement - transfers and grant receipts - Q1 First Quarter

23

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

EXPENDITURE

Operating expenditure of Transfers and Grants

National Government: 462,849 397,410 389,345 61,607 184,225 98,572 85,653 86.9% 389,345

–

Energy Efficiency and Demand Side Management Grant – 128 128 32 (32) -100.0% 128

Equitable Share 379,934 381,373 375,008 60,435 181,306 94,733 86,573 91.4% 375,008

Ex panded Public Works Programme Integrated Grant 8,240 5,887 5,887 1,172 2,919 1,472 1,447 98.3% 5,887

Local Gov ernment Financial Management Grant 3,456 3,105 3,105 – – 776 (776) -100.0% 3,105

Municipal Demarcation Transition Grant 4,411 3,218 3,218 – – 805 (805) -100.0% 3,218

Municipal Infrastructure Grant – 3,700 2,000 – – 755 (755) -100.0% 2,000

Public Transport Netw ork Grant 66,809 – – – – – – –

Provincial Government: – – – – – – – –

–

District Municipality: – – – – – – – –

–

Other grant providers: 1,033 515 515 – – 129 (129) -100.0% 515

Municipal Demarcation Board – – – – – – – –

Unspecified 1,033 515 515 – – 129 (129) -100.0% 515

Total operating expenditure of Transfers and Grants: 463,882 397,925 389,860 61,607 184,225 98,701 85,524 86.6% 389,860

Capital expenditure of Transfers and Grants

National Government: 81,736 572,682 572,682 31,312 110,740 143,171 (32,430) -22.7% 572,682

Ex panded Public Works Programme Integrated Grant – – – – – – – –

Integrated National Electrification Programme Grant (2,567) 27,010 27,010 1,462 5,892 6,753 (860) -12.7% 27,010

Local Gov ernment Financial Management Grant – – – – – – – –

Municipal Infrastructure Grant 103,748 331,753 331,753 28,588 84,514 82,938 1,576 1.9% 331,753

Municipal Water Infrastructure Grant – – – – – – – –

Neighbourhood Dev elopment Partnership Grant (19,444) 15,000 15,000 – – 3,750 (3,750) -100.0% 15,000

Public Transport Netw ork Grant – 198,919 198,919 1,263 20,334 49,730 (29,396) -59.1% 198,919

Water Serv ices Infrastructure Grant – – – – – – – –

Provincial Government: – – – – – – – –

–

District Municipality: – – – – – – – –

–

Other grant providers: – 8,000 8,000 2,580 2,580 2,000 580 29.0% 8,000

Dev elopers Contribution – – – – – – – –

Unspecified – 8,000 8,000 2,580 2,580 2,000 580 29.0% 8,000

Total capital expenditure of Transfers and Grants 81,736 580,682 580,682 33,892 113,320 145,171 (31,850) -21.9% 580,682

TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 545,619 978,607 970,542 95,499 297,545 243,872 53,674 22.0% 970,542

Description Ref

MP326 City of Mbombela - Supporting Table SC7(1) Monthly Budget Statement - transfers and grant expenditure - Q1 First Quarter

2.5 Councillor Allowances and Employee Benefits

Table (SC8) below provides the detail for councillor and employee benefits. The year to date actual expenditure for salaries, allowances and benefits paid amounts to R266 million for the period ending 30 September 2019.

24

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budgetYTD variance YTD variance

Full Year

Forecast

R thousands %

1 A B C D

Councillors (Political Office Bearers plus Other)

Basic Salaries and Wages 23,505 27,073 27,073 1,966 5,788 6,768 (980) -14% 27,073

Pension and UIF Contributions 2,850 3,211 3,211 236 707 803 (96) -12% 3,211

Medical Aid Contributions 637 687 687 44 133 172 (39) -23% 687

Motor Vehicle Allow ance 8,657 10,106 10,106 727 2,170 2,527 (357) -14% 10,106

Cellphone Allow ance 3,798 2,755 2,755 324 952 689 263 38% 2,755

Housing Allow ances –

Other benefits and allow ances 19 32 32 3 7 8 (1) -9% 32

Sub Total - Councillors 39,466 43,865 43,865 3,300 9,757 10,966 (1,209) -11% 43,865

% increase 4 11.1% 11.1% 11.1%

Senior Managers of the Municipality 3

Basic Salaries and Wages 17,653 69,226 69,226 1,514 4,641 17,307 (12,665) -73% 69,226

Pension and UIF Contributions 213 672 672 21 63 168 (105) -62% 672

Medical Aid Contributions 62 233 233 3 8 58 (50) -86% 233

Ov ertime –

Performance Bonus –

Motor Vehicle Allow ance 3,334 3,801 3,801 285 856 950 (94) -10% 3,801

Cellphone Allow ance 500 526 526 44 139 131 7 6% 526

Housing Allow ances –

Other benefits and allow ances 170 55 55 – 1 14 (13) -96% 55

Pay ments in lieu of leav e 304 – – – – – – –

Long serv ice aw ards –

Post-retirement benefit obligations 2 –

Sub Total - Senior Managers of Municipality 22,237 74,513 74,513 1,867 5,708 18,628 (12,920) -69% 74,513

% increase 4 235.1% 235.1% 235.1%

Other Municipal Staff

Basic Salaries and Wages 476,238 530,317 530,317 44,290 158,398 132,579 25,818 19% 530,317

Pension and UIF Contributions 99,215 112,248 112,248 9,370 27,840 28,062 (223) -1% 112,248

Medical Aid Contributions 40,341 51,380 51,380 3,618 10,642 12,845 (2,203) -17% 51,380

Ov ertime 119,784 110,569 110,569 10,142 19,671 27,642 (7,971) -29% 110,569

Performance Bonus 39,662 29,821 29,821 3,164 11,338 7,455 3,882 52% 29,821

Motor Vehicle Allow ance 46,433 54,100 54,100 4,176 12,421 13,525 (1,104) -8% 54,100

Cellphone Allow ance 4,737 5,871 5,871 443 1,321 1,468 (147) -10% 5,871

Housing Allow ances 3,902 4,355 4,355 464 1,416 1,089 327 30% 4,355

Other benefits and allow ances 33,222 37,309 37,309 3,276 7,617 9,328 (1,711) -18% 37,309

Pay ments in lieu of leav e 8,129 – – 55 316 – 316 #DIV/0! –

Long serv ice aw ards –

Post-retirement benefit obligations 2 42,366 – – 9,555 9,555 – 9,555 #DIV/0! –

Sub Total - Other Municipal Staff 914,029 935,970 935,970 88,553 260,532 233,994 26,539 11% 935,970

% increase 4 2.4% 2.4% 2.4%

Total Parent Municipality 975,732 1,054,347 1,054,347 93,719 275,998 263,588 12,410 5% 1,054,347

8.1% 8.1% 8.1%

TOTAL SALARY, ALLOWANCES & BENEFITS 975,732 1,054,347 1,054,347 93,719 275,998 263,588 12,410 5% 1,054,347

% increase 4 8.1% 8.1% 8.1%

TOTAL MANAGERS AND STAFF 936,266 1,010,483 1,010,483 90,420 266,241 252,622 13,619 5% 1,010,483

Summary of Employee and Councillor remuneration Ref

MP326 City of Mbombela - Supporting Table SC8 Monthly Budget Statement - councillor and staff benefits - Q1 First Quarter

25

2.6 Actual Cash Receipts and Payments Analysis

The actual cash receipts for the month of September 2019 amounted to R138 million, while cash payments made during the month amounted to R153 million resulting in cash and cash equivalent of R161 million

Table SC9 below provides details of the cash-flows: MP326 City of Mbombela - Supporting Table SC9 Monthly Budget Statement - actuals and revised targets for cash receipts - Q1 First Quarter

July August Sept October Nov Dec January Feb March April May June

R thousands 1 Outcome Outcome Outcome Budget Budget Budget Budget Budget Budget Budget Budget Budget

Cash Receipts By Source

Property rates 67,822 51,197 39,460 451,763 610,242 643,195 677,928

Serv ice charges - electricity rev enue 75,446 62,950 83,990 840,763 1,063,149 1,144,914 1,227,457

Serv ice charges - w ater rev enue 1,454 5,848 5,050 93,564 105,916 114,312 123,493

Serv ice charges - sanitation rev enue 7,190 1,259 1,328 12,857 22,635 24,429 26,391

Serv ice charges - refuse 1,076 6,154 6,280 110,519 124,029 133,860 144,611

Rental of facilities and equipment 77 77 69 7,817 8,041 8,845 9,729

Interest earned - ex ternal inv estments 167 786 104 5,272 6,329 6,977 7,693

Interest earned - outstanding debtors 25,978 25,978 28,575 31,433

Div idends receiv ed – – – –

Fines, penalties and forfeits 316 398 199 6,781 7,694 8,464 9,310

Licences and permits 3,081 – 7 (3,088) – – –

Agency serv ices 123 – (123) – – –

Transfer receipts - operating 733,561 733,561 796,761 874,460

Other rev enue 822 1,345 1,928 46,667 50,761 55,837 61,421

Cash Receipts by Source 157,575 130,013 138,415 – – – – – – – – 2,332,330 2,758,333 2,966,168 3,193,925 –

Other Cash Flows by Source –

Transfer receipts - capital 582,682 582,682 622,246 677,727

Contributions & Contributed assets –

Proceeds on disposal of PPE –

Short term loans –

Borrow ing long term/refinancing –

Increase in consumer deposits –

Receipt of non-current debtors –

Receipt of non-current receiv ables –

Change in non-current inv estments –

Total Cash Receipts by Source 157,575 130,013 138,415 – – – – – – – – 2,915,012 3,341,015 3,588,414 3,871,652 –

Cash Payments by Type –

Employ ee related costs 108,969 80,732 80,910 719,662 990,273 1,053,616 1,123,681

Remuneration of councillors 3,260 3,193 3,297 33,237 42,987 45,352 47,846

Interest paid 29,011 – 15,753 44,764 47,181 49,729

Bulk purchases - Electricity 1,297 775,099 776,396 838,508 905,588

Bulk purchases - Water & Sew er 46,277 46,277 49,655 53,230

Other materials 28 193 504 52,403 53,128 48,878 44,967

Contracted serv ices 7,262 26,958 38,651 327,629 400,500 357,210 335,993

Grants and subsidies paid - other municipalities – – – – –

Grants and subsidies paid - other – 30,203 30,203 32,348 34,612

General ex penses 2,774 4,662 14,137 139,319 160,892 144,097 129,687

Cash Payments by Type 151,304 115,738 138,796 – – – – – – – – 2,139,583 2,545,420 2,616,844 2,725,334 –

Other Cash Flows/Payments by Type

Capital assets 25,152 27,085 14,515 547,373 614,126 662,099 732,856

Repay ment of borrow ing 6,991 – – 22,981 29,971 32,369 35,606

Other Cash Flow s/Pay ments – 160,000 160,000 223,367 353,182

Total Cash Payments by Type 183,447 142,823 153,311 – – – – – – – – 2,869,936 3,349,517 3,534,678 3,846,978 –

NET INCREASE/(DECREASE) IN CASH HELD (25,872) (12,810) (14,896) – – – – – – – – 45,076 (8,502) 53,736 24,674

Cash/cash equiv alents at the month/y ear beginning: 214,611 188,739 175,928 161,033 161,033 161,033 161,033 161,033 161,033 161,033 161,033 161,033 214,611 206,109 259,844

Cash/cash equiv alents at the month/y ear end: 188,739 175,928 161,033 161,033 161,033 161,033 161,033 161,033 161,033 161,033 161,033 206,109 206,109 259,844 284,518

Budget Year

+1 2020/21

Budget Year

+2 2021/22

Description

Budget Year

2019/20

RefBudget Year 2019/20

2019/20 Medium Term Revenue &

Expenditure Framework

26

2.7 Capital Programme Performance

Supporting table SC12 below provides information on the monthly trends for capital expenditure. R30 million capital expenditure was recorded for the month of September 2019. The average capital budget expenditure performance per month for the past three amounted to R33 million.

2018/19

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

% spend of

Original

Budget

R thousands %

Monthly expenditure performance trend

July 29,974 56,864 56,886 35,663 35,663 56,886 21,223 37.3% 5%

August 30,442 56,864 58,727 34,002 69,665 115,614 45,949 39.7% 10%

September 26,974 56,864 58,700 30,241 99,906 174,314 74,408 42.7% 15%

October 34,828 56,864 58,700 – 233,014 –

Nov ember 37,412 56,864 58,700 – 291,715 –

December 52,343 56,864 58,700 – 350,415 –

January 33,129 56,864 58,700 – 409,115 –

February 67,069 56,864 58,700 – 467,815 –

March 45,278 56,864 58,700 – 526,516 –

April 31,510 56,864 58,700 – 585,216 –

May 65,683 56,864 58,700 – 643,916 –

June 56,864 56,864 58,700 – 702,616 –

Total Capital expenditure 511,506 682,362 702,616 99,906

Month

MP326 City of Mbombela - Supporting Table SC12 Monthly Budget Statement - capital expenditure trend - Q1 First Quarter

Budget Year 2019/20

Supporting tables SC13a and SC13b below provide the details for capital expenditure by asset classification for new and replacement of assets as well as depreciation.

27

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands 1 %

Capital expenditure on new assets by Asset Class/Sub-class

Infrastructure 106,082 357,996 372,461 23,590 45,428 92,313 46,885 50.8% 372,461

Roads Infrastructure 66,981 235,083 245,783 12,499 15,648 60,184 44,536 74.0% 245,783

Roads 64,644 231,583 242,283 12,499 15,648 59,309 43,661 73.6% 242,283

Road Structures 5,014 3,000 3,000 – – 750 750 100.0% 3,000

Road Furniture (2,677) – – – – – – –

Capital Spares – 500 500 – – 125 125 100.0% 500

Storm w ater Infrastructure 13,510 – 4,500 – 1,238 614 (624) -101.7% 4,500

Drainage Collection 13,510 – 4,500 – 1,238 614 (624) -101.7% 4,500

Storm water Conveyance –

Attenuation –

Electrical Infrastructure 601 38,510 42,010 2,370 6,223 10,366 4,144 40.0% 42,010

Power Plants –

HV Substations – 6,000 6,000 – 464 1,500 1,036 69.0% 6,000

HV Switching Station – 5,170 5,170 – 1,375 1,292 (82) -6.4% 5,170

HV Transmission Conductors – 4,500 4,500 – – 1,125 1,125 100.0% 4,500

MV Substations – – – – – – – –

MV Switching Stations – – – – – – – –

MV Networks – 9,500 9,500 – – 2,375 2,375 100.0% 9,500

LV Networks 601 12,340 13,840 2,370 4,383 3,460 (923) -26.7% 13,840

Capital Spares – 1,000 3,000 – – 614 614 100.0% 3,000

Water Supply Infrastructure 17,699 57,674 54,939 8,721 18,623 14,842 (3,781) -25.5% 54,939

Dams and Weirs – – – – – – – –

Boreholes – – 5,765 – – 1,048 1,048 100.0% 5,765

Reservoirs – 3,000 3,000 – – 750 750 100.0% 3,000

Pump Stations – – – – – – – –

Water Treatment Works – 16,000 16,000 – 9,902 4,000 (5,902) -147.5% 16,000

Bulk Mains – 17,174 10,174 6,957 6,957 3,593 (3,363) -93.6% 10,174

Distribution 17,699 21,500 18,500 678 678 5,075 4,397 86.6% 18,500

Distribution Points – – 1,500 1,086 1,086 375 (711) -189.7% 1,500

PRV Stations –

Capital Spares – – – – – – – –

Sanitation Infrastructure – 22,229 22,229 – 3,696 5,557 1,861 33.5% 22,229

Pump Station – – – – – – – –

Reticulation – 15,700 15,700 – 2,000 3,925 1,925 49.1% 15,700

Waste Water Treatment Works – 500 500 – – 125 125 100.0% 500

Outfall Sewers – 6,029 6,029 – 1,697 1,507 (189) -12.6% 6,029

Toilet Facilities – – – – – – – –

Capital Spares –

Solid Waste Infrastructure 7,291 3,500 2,000 – – 500 500 100.0% 2,000

Landfill Sites – 3,500 2,000 – – 500 500 100.0% 2,000

Waste Transfer Stations 7,291 – – – – – – –

Waste Processing Facilities –

Waste Drop-off Points –

Waste Separation Facilities –

Electricity Generation Facilities –

Capital Spares –

Description Ref

MP326 City of Mbombela - Supporting Table SC13a Monthly Budget Statement - capital expenditure on new assets by asset class - Q1 First Quarter

28

Information and Communication Infrastructure – 1,000 1,000 – – 250 250 100.0% 1,000

Data Centres –

Core Layers – 1,000 1,000 – – 250 250 100.0% 1,000

Distribution Layers –

Capital Spares –

Community Assets 10,483 59,779 53,179 1,794 2,541 13,810 11,269 81.6% 53,179

Community Facilities 9,492 44,779 46,229 1,794 2,541 11,626 9,085 78.1% 46,229

Halls – 23,200 25,150 1,794 2,541 6,200 3,658 59.0% 25,150

Centres 746 – – – – – – –

Crèches –

Clinics/Care Centres –

Fire/Ambulance Stations – – – – – – – –

Testing Stations –

Museums –

Galleries –

Theatres – – – – – – – –

Libraries 144 – – – – – – –

Cemeteries/Crematoria – 3,000 3,000 – – 750 750 100.0% 3,000

Police 8,179 – 1,000 – – 182 182 100.0% 1,000

Purls –

Public Open Space 422 – – – – – – –

Nature Reserves –

Public Ablution Facilities –

Markets – – – – – – – –

Stalls – 3,000 1,500 – – 600 600 100.0% 1,500

Abattoirs –

Airports –

Taxi Ranks/Bus Terminals – 15,579 15,579 – – 3,895 3,895 100.0% 15,579

Capital Spares –

Sport and Recreation Facilities 991 15,000 6,950 – – 2,184 2,184 100.0% 6,950

Indoor Facilities – 15,000 6,950 – – 2,184 2,184 100.0% 6,950

Outdoor Facilities 950 – – – – – – –

Capital Spares 41 – – – – – – –

Heritage assets – – – – – – – –

Monuments –

Historic Buildings –

Works of Art –

Conserv ation Areas –

Other Heritage – – – – – – – – –

Investment properties – – – – – – – –

Rev enue Generating – – – – – – – –

Improved Property –

Unimproved Property –

Non-rev enue Generating – – – – – – – –

Improved Property –

Unimproved Property –

Other assets 420 3,750 3,750 – 129 938 808 86.2% 3,750

Operational Buildings 420 3,750 3,750 – 129 938 808 86.2% 3,750

Municipal Offices 404 3,750 3,750 – 129 938 808 86.2% 3,750

Pay/Enquiry Points –

Building Plan Offices –

Workshops –

Yards –

Stores – – – – – – – –

Laboratories 15 – – – – – – –

Training Centres –

Manufacturing Plant –

Depots –

Capital Spares –

Housing – – – – – – – –

Staff Housing –

Social Housing – – – – – – – –

Capital Spares –

Biological or Cultivated Assets – – – – – – – –

29

Biological or Cultiv ated Assets –

Intangible Assets 620 34,000 36,022 65 65 8,908 8,844 99.3% 36,022

Serv itudes –

Licences and Rights 620 34,000 36,022 65 65 8,908 8,844 99.3% 36,022

Water Rights –

Effluent Licenses –

Solid Waste Licenses – – – – – – – –

Computer Software and Applications 620 34,000 36,022 65 65 8,908 8,844 99.3% 36,022

Load Settlement Software Applications –

Unspecified – – – – – – – –

Computer Equipment 320 – – – – – – –

Computer Equipment 320 – – – – – – –

Furniture and Office Equipment 1,961 – 1,000 – – 182 182 100.0% 1,000

Furniture and Office Equipment 1,961 – 1,000 – – 182 182 100.0% 1,000

Machinery and Equipment 876 280 1,394 – – 272 272 100.0% 1,394

Machinery and Equipment 876 280 1,394 – – 272 272 100.0% 1,394

Transport Assets – 3,000 6,500 – – 1,386 1,386 100.0% 6,500

Transport Assets – 3,000 6,500 – – 1,386 1,386 100.0% 6,500

Land – – – – – – – –

Land – – – – – – – –

Zoo's, Marine and Non-biological Animals – – – – – – – –

Zoo's, Marine and Non-biological Animals –

Total Capital Expenditure on new assets 1 120,762 458,805 474,306 25,448 48,163 117,810 69,646 59.1% 474,306

30

2018/19 Budget Year 2019/20

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands 1 %

Depreciation by Asset Class/Sub-class

Infrastructure 408,531 423,365 421,665 102,633 102,633 105,533 2,900 2.7% 421,665

Roads Infrastructure 238,363 213,079 213,079 59,591 59,591 53,270 (6,321) -11.9% 213,079

Roads 238,363 108,193 108,193 59,591 59,591 27,048 (32,542) -120.3% 108,193

Road Structures – 69,924 69,924 – – 17,481 17,481 100.0% 69,924

Road Furniture – 23,308 23,308 – – 5,827 5,827 100.0% 23,308

Capital Spares – 11,654 11,654 – – 2,913 2,913 100.0% 11,654

Storm w ater Infrastructure – 19,120 19,120 – – 4,780 4,780 100.0% 19,120

Drainage Collection – 9,560 9,560 – – 2,390 2,390 100.0% 9,560

Storm water Conveyance – 5,736 5,736 – – 1,434 1,434 100.0% 5,736

Attenuation – 3,824 3,824 – – 956 956 100.0% 3,824

Electrical Infrastructure 54,618 67,747 67,747 13,905 13,905 16,937 3,033 17.9% 67,747

Power Plants – 16,937 16,937 – – 4,234 4,234 100.0% 16,937

HV Substations – 9,485 9,485 – – 2,371 2,371 100.0% 9,485

HV Switching Station – 7,452 7,452 – – 1,863 1,863 100.0% 7,452

HV Transmission Conductors – 12,195 12,195 – – 3,049 3,049 100.0% 12,195

MV Substations 54,618 6,775 6,775 13,905 13,905 1,694 (12,211) -721.0% 6,775

MV Switching Stations – 5,420 5,420 – – 1,355 1,355 100.0% 5,420

MV Networks – 6,097 6,097 – – 1,524 1,524 100.0% 6,097

LV Networks – 3,387 3,387 – – 847 847 100.0% 3,387

Capital Spares – – – – – – – –

Water Supply Infrastructure 74,534 75,784 74,084 18,883 18,883 18,637 (246) -1.3% 74,084

Dams and Weirs – 3,889 3,889 – – 972 972 100.0% 3,889

Boreholes – 7,001 7,001 – – 1,750 1,750 100.0% 7,001

Reservoirs – 15,557 15,557 – – 3,889 3,889 100.0% 15,557

Pump Stations – 3,889 3,889 – – 972 972 100.0% 3,889

Water Treatment Works – 23,335 21,635 – – 5,525 5,525 100.0% 21,635

Bulk Mains – 4,667 4,667 – – 1,167 1,167 100.0% 4,667

Distribution 74,534 7,778 7,778 18,883 18,883 1,945 (16,939) -871.1% 7,778

Distribution Points –

PRV Stations –

Capital Spares – 9,668 9,668 – – 2,417 2,417 100.0% 9,668

Sanitation Infrastructure 39,959 46,010 46,010 9,990 9,990 11,503 1,513 13.2% 46,010

Pump Station – 6,902 6,902 – – 1,725 1,725 100.0% 6,902

Reticulation – 11,503 11,503 – – 2,876 2,876 100.0% 11,503

Waste Water Treatment Works 39,959 13,803 13,803 9,990 9,990 3,451 (6,539) -189.5% 13,803

Outfall Sewers – 13,803 13,803 – – 3,451 3,451 100.0% 13,803

Toilet Facilities –

Capital Spares –

Solid Waste Infrastructure 1,057 1,625 1,625 264 264 406 142 34.9% 1,625

Landfill Sites 1,057 1,625 1,625 264 264 406 142 34.9% 1,625

Waste Transfer Stations – – – – – – – –

Waste Processing Facilities – – – – – – – –

Waste Drop-off Points – – – – – – – –

Waste Separation Facilities –

Electricity Generation Facilities –

Capital Spares –

MP326 City of Mbombela - Supporting Table SC13d Monthly Budget Statement - depreciation by asset class - Q1 First Quarter

Description Ref

31