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In-year report of the Municipality
Prepared in terms of the Local Government: Municipal Finance
Management Act (56/2003): Municipal Budget and Reporting
Regulations, Government Gazette 32141, 17 April 2009.
Mid-Year Budget and Performance Assessment for the period 1 July 2017 to 31 December 2017
Table of Contents
GLOSSARY
PART 1 - IN-YEAR REPORT
· Introduction
· Mayor’s report (required if tabled in the municipal council)
· Resolutions (required if tabled in the municipal council)
· Executive summary
· In-year budget statement tables
PART 2 – SUPPORTING DOCUMENTATION
· Debtors ’Analysis
· Creditors’ Analysis
· Investment portfolio analysis
· Allocation and grant receipts and expenditure
· Councilor and board member allowances and employee benefits
· Material variances to the service delivery and budget implementation plan
Glossary
Act – means the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)
Adjustments Budget – Prescribed in section 28 of the MFMA. The formal means by which a municipality may revise its annual budget during the year.
Allocations – Money received from Provincial or National Government or other municipalities.
Budget – The financial plan of the Municipality.
Budget Related Policy – Policy of a municipality affecting or affected by the budget, such as the tariffs policy, rates policy and credit control and debt collection policy.
Capital Expenditure - Spending on assets such as land, buildings and machinery. Any capital expenditure must be reflected as an asset on the Municipality’s balance sheet.
Cash flow statement – A statement showing when actual cash will be received and spent by the Municipality. Cash payments do not always coincide with budgeted expenditure timings. For example, when an invoice is received by the Municipality it scores as expenditure in the month it is received, even though it may not be paid in the same period.
DORA – Division of Revenue Act. Annual piece of legislation that shows the amount of allocations from national to local government.
Equitable Share – A general grant paid to municipalities. It is predominantly targeted to help with free basic services.
IDP – Integrated Development Plan. The main strategic planning document of the Municipality
KPI’s – Key Performance Indicators. Measures of service output and/or outcome.
MFMA – The Municipal Finance Management Act – no 53 of 2003. The principle piece of legislation relating to municipal financial management.
MTREF – Medium Term Revenue and Expenditure Framework. A medium term financial plan, usually 3 years, based on a fixed first year and indicative further two years budget allocations. Also includes details of the previous and current years’ financial position.
Operating Expenditure – Spending on the day to day expenses of the Municipality such as salaries and wages.
Own Revenue – Means total revenue as reflected in the municipality’s financial performance budget less national and provincial conditional transfers.
Rates – Local Government taxation based on an assessed value of a property. To determine the rates payable, the assessed rateable value is multiplied by the rate in the rand.
SDBIP – Service Delivery and Budget Implementation Plan. A detailed plan comprising quarterly performance targets and monthly budget estimates.
Strategic Objectives – The main priorities of the Municipality as set out in the IDP. Budgeted spending must contribute towards the achievement of the strategic objectives.
Vote – One of the main segments into which a budget is divided, usually at directorate / department level
Part 1
Introduction
Purpose
To inform Council of progress made in the implementation of the budget and the performance outcomes in respect of the first six months of the 2017/18financial year, and to recommend whether an adjustments budget isnecessary.
Legal requirements
In terms of Section 72 of the Local Government: Municipal FinanceManagement Act, 2003 (Act 56 of 2003):
(1) The accounting officer of a municipality must by 25 January of eachyear -
(a) assess the performance of the municipality during the first halfof the financial year, taking into account –
(i) the monthly statements referred to in section 71 for thefirst half of the financial year;
(ii) the municipality’s service delivery performance during thefirst half of the financial year, and the service deliverytargets and performance indicators set in the servicedelivery and budget implementation plan;
(iii) the past year’s annual report, and progress on resolvingproblems identified in the annual report; and
(iv) the performance of every municipal entity under the sole orshared control of the municipality, taking into accountreports in terms of section 88 from any such entities; and
(b) submit a report on such assessment to –
(i) the mayor of the municipality
(ii) the National Treasury; and
(iii) the relevant Provincial Treasury.
(2) The statement referred to in section 71(1) for the sixth month of afinancial year may be incorporated into the report referred to insubsection (1)(b) of this section.
(3) The accounting officer must, as part of the review -
(a) make recommendations as to whether an adjustments budget isnecessary; and
(b) recommend revised projections for revenue and expenditure tothe extent that this may be necessary.Thereafter, the mayor must, in terms of Section 54(1):
(a) Consider the report;
(b) Check whether the municipality's approved budget isimplemented in accordance with the service delivery and budgetimplementation plan;
(c) Consider and, if necessary, make any revisions to the servicedelivery and budget implementation plan, provided thatrevisions to the service delivery targets and performanceindicators in the plan may only be made with the approval of the
council following approval of an adjustments budget;
(d) Issue any appropriate instructions to the accounting officer toensure-
(i) That the budget is implemented in accordance with theservice delivery and budget implementation plan; and
(ii) That spending of funds and revenue collection proceed inaccordance with the budget;
(e) Identify any financial problems facing the municipality,including any emerging or impending financial problems; and
(f) Submit the report to the council by 31 January of each year.
Mayor’s report
Revenue by Source
The year-to-date actual reflects an achievement of 50.7% of the year-to-date budget and a positive variance of 2%. Property rates year to date budget is R 4 118 Million which are 39% less than the year to date actual which can be attributed to the late billing of property rates due to MSCOA.Service charges shows a negative budgeting of 18% comparing year to date budget vs year to date actual. Investment revenue and other own revenue need to be adjusted as well as the misallocation in the revenue streams
Operating expenditure by type
For the year-to-date all expenditure items show negative variances it indicates a saving on that specific expenditure item. A huge concern is other expenditure whereby the allocated original budget exceeds the year to date actuals this is due to misallocation of some expenditure votes.
Capital expenditure
The actual year to datecapital expenditure reflects a spending of 68% of the original budget.
In terms of MFMA s28(2)(a) an adjustments budget must now be prepared that adjusts the revenue estimates downwards and the correct allocation of expenditure line items for the current year.
Council Resolution
On 25 January 2018 the Council of Kamiesberg Municipality had a meeting to consider the adjustments budget for approval. The Council approved the following resolutions:
(a) That the Operating Budget for 2017/2018 be adjusted to reflect the public contribution;
(b) That the formal budget tables be updated with the adjustments and submitted to National and Provincial Government.
Executive summary
The application of sound financial management principles for the compilation of the Municipalities financial plan is essential and critical to ensure that the Municipality remains financially viable and that municipal services are provided sustainable, economically and equitably to all communities.
The Municipalities business and service delivery priorities were reviewed as part of this year’s planning and budget process. Where appropriate, funds were transferred from low- to high-priority programmes so as to maintain sound financial stewardship.
Furthermore, the Municipality has undertaken various customer care initiatives to ensure the municipality truly involves all citizens in the process of ensuring a people lead government.
The main challenges experienced during the compilation of the 2017/18MTREF can be summarised as follows:
· The ongoing difficulties in the national and local economy;
· Aging and poorly maintained water, roads and electricity infrastructure;
· The need to reprioritise projects and expenditure within the existing resource envelope given the cash flow realities and declining cash position of the municipality;
· Wage increases for municipal staff that continue to exceed consumer inflation, as well as the need to fill critical vacancies;
· High electricity tariffs
· Vastness of Municipal jurisdiction
· Increase in creditors
· Non-payment of consumer accounts
· High unemployment rate resulting in a low revenue base
The following budget principles and guidelines directly informed the compilation of the 2017/18 MTREF:
· The 2016/17 Adjustments Budget priorities and targets, as well as the base line allocations contained in that Adjustments Budget were adopted as the upper limits for the new baselines for the 2017/18 annual budget;
· Intermediate service level standards were used to inform the measurable objectives, targets and backlog eradication goals;
In-year budget statement tables
Monthly budget statements
The tables included in this section are from the section 71 December in-year monthly budget statement..
Table C1: s71 Monthly Budget Statement Summary
NC064 Kamiesberg - Table C1 Monthly Budget Statement Summary - M06 December
Description
2016/17
Budget Year 2017/18
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
6 675
8 237
8 237
151
2 513
4 118
(1 605)
-39%
8 237
Service charges
13 737
14 385
14 385
1 230
5 934
7 239
(1 305)
-18%
14 385
Investment revenue
4 359
5 034
5 034
43
249
2 518
(2 269)
-90%
5 034
Transfers recognised - operational
20 564
23 498
23 498
5 377
16 981
11 749
5 232
45%
23 498
Other own revenue
5 173
1 066
1 066
(81)
844
265
578
218%
1 066
Total Revenue (excluding capital transfers and contributions)
50 508
52 220
52 220
6 720
26 520
25 889
631
2%
52 220
Employee costs
20 106
25 014
25 014
1 853
9 973
12 507
(2 534)
-20%
25 014
Remuneration of Councillors
2 154
2 387
2 387
235
1 142
1 193
(51)
-4%
2 387
Depreciation & asset impairment
1 625
8 923
8 923
–
–
4 462
(4 462)
-100%
8 923
Finance charges
–
172
172
7
30
86
(56)
-65%
172
Materials and bulk purchases
10 653
14 034
14 034
567
6 424
7 294
(870)
-12%
14 034
Transfers and grants
–
–
–
1 831
7 022
–
7 022
–
Other expenditure
20 942
12 731
12 731
3 696
14 572
(5 351)
19 923
-372%
12 731
Total Expenditure
55 480
63 261
63 261
8 190
39 163
20 191
18 972
94%
63 261
Surplus/(Deficit)
(4 972)
(11 041)
(11 041)
(1 470)
(12 642)
5 699
(18 341)
-322%
(11 041)
Transfers recognised - capital
40 105
11 601
11 601
2 000
7 952
5 801
2 152
37%
11 601
Contributions & Contributed assets
–
–
–
–
–
–
–
–
Surplus/(Deficit) after capital transfers & contributions
35 133
560
560
530
(4 690)
11 499
(16 190)
-141%
560
Share of surplus/ (deficit) of associate
–
–
–
–
–
–
–
–
Surplus/ (Deficit) for the year
35 133
560
560
530
(4 690)
11 499
(16 190)
-141%
560
Capital expenditure & funds sources
Capital expenditure
68 072
11 601
11 601
1 831
7 022
4 579
2 442
53%
11 601
Capital transfers recognised
8 965
11 601
11 601
1 831
7 022
4 579
2 443
53%
11 601
Public contributions & donations
–
–
–
–
–
–
–
–
Borrowing
–
–
–
–
–
–
–
–
Internally generated funds
–
–
–
–
–
–
–
–
Total sources of capital funds
8 965
11 601
11 601
1 831
7 022
4 579
2 443
53%
11 601
Financial position
Total current assets
22 593
21 680
21 680
(13 343)
21 680
Total non current assets
125 098
112 375
112 375
33 489
112 375
Total current liabilities
30 624
23 109
23 109
2 585
23 109
Total non current liabilities
26 356
21 482
21 482
937
21 482
Community wealth/Equity
90 711
89 464
89 464
16 625
89 464
Cash flows
Net cash from (used) operating
(16 565)
51
51
(176)
(14 381)
14 432
(28 812)
-200%
51
Net cash from (used) investing
(9 724)
–
–
–
–
–
–
–
Net cash from (used) financing
(245)
–
–
–
–
–
–
–
Cash/cash equivalents at the month/year end
(25 963)
51
51
–
(14 307)
14 432
(28 739)
-199%
124
Debtors & creditors analysis
0-30 Days
31-60 Days
61-90 Days
91-120 Days
121-150 Dys
151-180 Dys
181 Dys-1 Yr
Over 1Yr
Total
Debtors Age Analysis
Total By Revenue Source
1 436
1 476
1 299
64 911
–
–
–
–
69 121
Creditors Age Analysis
Total Creditors
3 873
1 190
2 191
1 490
4 242
6 765
287
########
22 251
Table C2: Monthly Budget Statement - Financial
Performance (standard classification)
This table reflects the operating budget in the standard classifications which are the Government Finance Statistics Functions and Sub-functions. These are used by National Treasury to assist the compilation of national and international accounts for comparison purposes, regardless of the unique organisational structures used by the different institutions.
NC064 Kamiesberg - Table C2 Monthly Budget Statement - Financial Performance (standard classification) - M06 December
Description
Ref
2016/17
Budget Year 2017/18
Audited Outcome
Original Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
Full Year Forecast
R thousands
1
%
Revenue - Standard
Governance and administration
74 082
45 923
45 923
7 487
19 611
22 445
(2 834)
-13%
45 923
Executive and council
(1 930)
–
–
–
9
(912)
921
-101%
–
Budget and treasury office
71 423
45 923
45 923
7 466
19 494
23 357
(3 863)
-17%
45 923
Corporate services
4 589
–
–
21
108
–
108
#DIV/0!
–
Community and public safety
776
804
804
3
362
7
355
5064%
804
Community and social services
631
792
792
–
357
1
356
35625%
792
Sport and recreation
145
12
12
3
4
6
(2)
-29%
12
Public safety
–
–
–
–
–
–
–
–
Housing
–
–
–
–
–
–
–
–
Health
–
–
–
–
–
–
–
–
Economic and environmental services
612
1 011
1 011
–
613
506
107
21%
1 011
Planning and development
133
1 000
1 000
–
248
500
(252)
-50%
1 000
Road transport
479
11
11
–
365
6
359
5983%
11
Environmental protection
–
–
–
–
–
–
–
–
Trading services
15 143
16 083
16 083
3 231
13 886
9 000
4 886
54%
16 083
Electricity
5 877
7 970
7 970
932
4 090
4 324
(234)
-5%
7 970
Water
5 083
4 470
4 470
2 136
8 956
2 521
6 435
255%
4 470
Waste water management
1 674
1 650
1 650
61
465
850
(385)
-45%
1 650
Waste management
2 509
1 993
1 993
102
374
1 305
(931)
-71%
1 993
Other
4
–
–
–
–
–
–
–
–
Total Revenue - Standard
2
90 613
63 821
63 821
10 721
34 472
31 958
2 514
8%
63 821
Expenditure - Standard
Governance and administration
33 237
35 203
35 203
4 309
22 085
18 313
3 772
21%
35 203
Executive and council
4 242
5 200
5 200
837
3 473
2 600
873
34%
5 200
Budget and treasury office
11 548
30 003
30 003
2 729
16 814
15 713
1 101
7%
30 003
Corporate services
17 447
–
–
743
1 798
–
1 798
#DIV/0!
–
Community and public safety
–
2 339
2 339
52
325
735
(410)
-56%
2 339
Community and social services
–
2 339
2 339
52
52
649
(597)
-92%
2 339
Sport and recreation
–
–
–
–
273
86
187
217%
–
Public safety
–
–
–
–
–
–
–
–
Housing
–
–
–
–
–
–
–
–
Health
–
–
–
–
–
–
–
–
Economic and environmental services
1 531
4 753
4 753
447
1 509
2 377
(868)
-37%
4 753
Planning and development
1 531
2 265
2 265
147
684
1 133
(449)
-40%
2 265
Road transport
–
2 488
2 488
300
825
1 244
(419)
-34%
2 488
Environmental protection
–
–
–
–
–
–
–
–
Trading services
18 107
20 966
20 966
3 383
15 243
10 470
4 773
46%
20 966
Electricity
11 572
13 572
13 572
2 466
7 002
6 786
216
3%
13 572
Water
2 583
3 303
3 303
475
6 410
1 639
4 771
291%
3 303
Waste water management
–
85
85
102
250
–
250
#DIV/0!
85
Waste management
3 952
4 006
4 006
340
1 581
2 045
(464)
-23%
4 006
Other
–
–
–
–
–
–
–
–
Total Expenditure - Standard
3
52 875
63 261
63 261
8 190
39 163
31 895
7 268
23%
63 261
Surplus/ (Deficit) for the year
37 738
560
560
2 530
(4 691)
63
(4 754)
-7546%
560
Table C3: Monthly Budget Statement - Financial
Performance (revenue and expenditure by municipal vote)
The operating expenditure budget is approved by Council at the municipal
vote level. The municipal votes reflect the organisational structure of the municipality
which is made up of: Executive & Council; Finance and Administration; Community and Social Services; Sports and Recreation; Waste Management; Water; Electrical Services; Economic and Social Development; Technical and Roads and Water Waste Management.
NC064 Kamiesberg - Table C3 Monthly Budget Statement - Financial Performance (revenue and expenditure by municipal vote) - M06 December
Vote Description
Ref
2016/17
Budget Year 2017/18
Audited Outcome
Original Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
Full Year Forecast
R thousands
%
Revenue by Vote
1
Vote 1 - EXECUTIVE AND COUNCIL
(2)
–
–
–
9
(912)
921
-101,0%
–
Vote 2 - FINANCE AND ADMINISTRATION
76 012
45 923
45 923
7 487
19 603
23 357
(3 754)
-16,1%
45 923
Vote 3 - COMMUNITY AND SOCIAL SERVICES
631
792
792
–
357
–
357
#DIV/0!
792
Vote 4 - SPORT AND RECREATION
145
12
12
3
4
1
3
313,2%
12
Vote 5 - WASTE MANAGEMENT
2 509
1 993
1 993
102
374
1 305
(931)
-71,3%
1 993
Vote 6 - WATER
5 083
4 470
4 470
2 136
8 956
2 521
6 435
255,3%
4 470
Vote 7 - ELECTRICITY
5 877
7 970
7 970
932
4 090
4 324
(234)
-5,4%
7 970
Vote 8 - ECONIMICS AND SOCIAL DEVELOPMENT
133
1 000
1 000
–
248
500
(252)
-50,4%
1 000
Vote 9 - TECHNICAL AND ROADS
479
11
11
–
365
6
359
5983,3%
11
Vote 10 - WATER WASTE MANAGEMENT
1 674
1 650
1 650
61
465
850
(385)
-45,3%
1 650
Total Revenue by Vote
2
92 541
63 821
63 821
10 720
34 472
31 952
2 520
7,9%
63 821
Expenditure by Vote
1
Vote 1 - EXECUTIVE AND COUNCIL
4 242
5 200
5 200
837
3 473
2 600
873
33,6%
5 200
Vote 2 - FINANCE AND ADMINISTRATION
28 995
30 003
30 003
3 472
18 612
15 713
2 899
18,5%
30 003
Vote 3 - COMMUNITY AND SOCIAL SERVICES
–
2 339
2 339
52
52
649
(597)
-92,0%
2 339
Vote 4 - SPORT AND RECREATION
–
–
–
–
273
86
187
217,2%
–
Vote 5 - WASTE MANAGEMENT
3 950
4 006
4 006
340
1 581
2 045
(464)
-22,7%
4 006
Vote 6 - WATER
2 583
3 303
3 303
475
6 410
1 639
4 771
291,1%
3 303
Vote 7 - ELECTRICITY
11 572
13 572
13 572
2 466
7 002
6 786
216
3,2%
13 572
Vote 8 - ECONIMICS AND SOCIAL DEVELOPMENT
1 531
2 265
2 265
147
684
1 133
(449)
-39,6%
2 265
Vote 9 - TECHNICAL AND ROADS
2 605
2 488
2 488
300
825
1 244
(419)
-33,7%
2 488
Vote 10 - WATER WASTE MANAGEMENT
–
85
85
102
250
(165)
415
-251,5%
85
Vote 11 - OTHER
–
–
–
–
–
–
–
–
Total Expenditure by Vote
2
55 478
63 261
63 261
8 190
39 163
31 730
7 434
23,4%
63 261
Surplus/ (Deficit) for the year
2
37 063
560
560
2 530
(4 692)
222
(4 914)
-2211,7%
560
Table C4: Monthly Budget Statement - Financial
Performance (revenue and expenditure)
NC064 Kamiesberg - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - M06 December
Description
Ref
2016/17
Budget Year 2017/18
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
6 675
8 237
8 237
151
2 513
4 118
(1 605)
-39%
8 237
Property rates - penalties & collection charges
–
–
Service charges - electricity revenue
5 678
7 571
7 571
932
4 090
3 785
305
8%
7 571
Service charges - water revenue
4 391
3 723
3 723
136
1 004
1 909
(905)
-47%
3 723
Service charges - sanitation revenue
1 573
1 470
1 470
61
465
735
(270)
-37%
1 470
Service charges - refuse revenue
2 095
1 621
1 621
102
374
810
(436)
-54%
1 621
Service charges - other
–
–
–
–
–
–
–
–
Rental of facilities and equipment
192
166
166
18
85
83
2
3%
166
Interest earned - external investments
885
799
799
43
249
400
(151)
-38%
799
Interest earned - outstanding debtors
3 474
4 235
4 235
–
–
2 118
(2 118)
-100%
4 235
Dividends received
–
–
–
Fines
6
1
1
–
1
1
0
79%
1
Licences and permits
152
1
1
209
1
1
0
37%
1
Agency services
351
–
–
–
Transfers recognised - operational
20 564
23 498
23 498
5 377
16 981
11 749
5 232
45%
23 498
Other revenue
4 472
860
860
(308)
757
143
613
428%
860
Gains on disposal of PPE
38
38
–
–
38
(38)
-100%
38
Total Revenue (excluding capital transfers and contributions)
50 508
52 220
52 220
6 720
26 520
25 889
631
2%
52 220
Expenditure By Type
Employee related costs
20 106
25 014
25 014
1 853
9 973
12 507
(2 534)
-20%
25 014
Remuneration of councillors
2 154
2 387
2 387
235
1 142
1 193
(51)
-4%
2 387
Debt impairment
–
4 343
4 343
–
–
2 172
(2 172)
-100%
4 343
Depreciation & asset impairment
1 625
8 923
8 923
–
–
4 462
(4 462)
-100%
8 923
Finance charges
–
172
172
7
30
86
(56)
-65%
172
Bulk purchases
10 653
12 182
12 182
543
6 306
6 091
215
4%
12 182
Other materials
–
1 852
1 852
25
118
1 203
(1 085)
-90%
1 852
Contracted services
4 028
2 652
2 652
–
–
1 313
(1 313)
-100%
2 652
Transfers and grants
–
–
–
1 831
7 022
–
7 022
#DIV/0!
–
Other expenditure
9 207
5 736
5 736
3 696
14 572
(8 836)
23 408
-265%
5 736
Loss on disposal of PPE
7 707
–
–
–
–
–
–
Total Expenditure
55 480
63 261
63 261
8 190
39 163
20 191
18 972
94%
63 261
Surplus/(Deficit)
(4 972)
(11 041)
(11 041)
(1 470)
(12 642)
5 699
(18 341)
(0)
(11 041)
Transfers recognised - capital
40 105
11 601
11 601
2 000
7 952
5 801
2 152
0
11 601
Contributions recognised - capital
–
Contributed assets
–
Surplus/(Deficit) after capital transfers & contributions
35 133
560
560
530
(4 690)
11 499
560
Taxation
–
–
–
–
–
–
–
–
Surplus/(Deficit) after taxation
35 133
560
560
530
(4 690)
11 499
560
Attributable to minorities
–
–
–
–
–
–
–
Surplus/(Deficit) attributable to municipality
35 133
560
560
530
(4 690)
11 499
560
Share of surplus/ (deficit) of associate
–
–
–
–
–
–
–
Surplus/ (Deficit) for the year
35 133
560
560
530
(4 690)
11 499
560
Table C5: Monthly Budget Statement - Capital Expenditure
(municipal vote, standard classification and funding)
NC064 Kamiesberg - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, standard classification and funding) - M06 December
Vote Description
Ref
2016/17
Budget Year 2017/18
Audited Outcome
Original Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
Full Year Forecast
R thousands
1
%
Single Year expenditure appropriation
2
Vote 1 - EXECUTIVE AND COUNCIL
64 661
–
–
–
–
–
–
–
Vote 2 - FINANCE AND ADMINISTRATION
296
–
–
–
–
–
–
–
Vote 5 - WASTE MANAGEMENT
437
–
–
–
–
–
–
–
Vote 6 - WATER
–
11 601
11 601
1 831
7 022
4 579
2 442
53%
11 601
Vote 7 - ELECTRICITY
605
–
–
–
–
–
–
–
Vote 9 - TECHNICAL AND ROADS
2 073
–
–
–
–
–
–
–
Total Capital single-year expenditure
4
68 072
11 601
11 601
1 831
7 022
4 579
2 442
53%
11 601
Total Capital Expenditure
68 072
11 601
11 601
1 831
7 022
4 579
2 442
53%
11 601
Capital Expenditure - Standard Classification
Trading services
7 206
11 601
11 601
1 831
7 022
4 579
2 442
53%
11 601
Electricity
–
–
–
Water
7 206
11 601
11 601
1 831
7 022
4 579
2 442
53%
11 601
Other
–
Total Capital Expenditure - Standard Classification
3
7 206
11 601
11 601
1 831
7 022
4 579
2 442
53%
11 601
Funded by:
National Government
8 168
11 601
11 601
1 831
7 022
4 579
2 443
53%
11 601
Provincial Government
469
–
–
District Municipality
328
–
Other transfers and grants
–
Transfers recognised - capital
8 965
11 601
11 601
1 831
7 022
4 579
2 443
53%
11 601
Public contributions & donations
5
–
–
–
Borrowing
6
–
Internally generated funds
–
Total Capital Funding
8 965
11 601
11 601
1 831
7 022
4 579
2 443
53%
11 601
Table C6: Monthly Budget Statement - Financial Position
The audited outcome for 2016/17 shows the impact that implementing GRAP 17 and GRAP 17 has had on Investment Property; Property, Plant & Equipment; and the
Accumulated Surplus. The quantum of these changes was not known at the time of budget approval
NC064 Kamiesberg - Table C6 Monthly Budget Statement - Financial Position - M06 December
Description
Ref
2016/17
Budget Year 2017/18
Audited Outcome
Original Budget
Adjusted Budget
YearTD actual
Full Year Forecast
R thousands
1
ASSETS
Current assets
Cash
387
51
51
7 736
51
Call investment deposits
7 596
10 520
10 520
(17 171)
10 520
Consumer debtors
6 800
8 018
8 018
(3 923)
8 018
Other debtors
4 853
2 997
2 997
2 997
Current portion of long-term receivables
2 836
Inventory
121
94
94
16
94
Total current assets
22 593
21 680
21 680
(13 343)
21 680
Non current assets
Long-term receivables
Investments
–
Investment property
2 471
2 471
2 471
2 471
Investments in Associate
24 989
Property, plant and equipment
122 514
109 807
109 807
8 500
109 807
Intangible assets
108
97
97
97
Other non-current assets
5
Total non current assets
125 098
112 375
112 375
33 489
112 375
TOTAL ASSETS
147 691
134 055
134 055
20 147
134 055
LIABILITIES
Current liabilities
Bank overdraft
–
–
–
–
–
Borrowing
831
183
183
183
Consumer deposits
1 470
1 364
1 364
(30)
1 364
Trade and other payables
26 406
19 693
19 693
2 615
19 693
Provisions
1 917
1 869
1 869
1 869
Total current liabilities
30 624
23 109
23 109
2 585
23 109
Non current liabilities
Borrowing
1 924
565
565
937
565
Provisions
24 432
20 917
20 917
20 917
Total non current liabilities
26 356
21 482
21 482
937
21 482
TOTAL LIABILITIES
56 980
44 591
44 591
3 522
44 591
NET ASSETS
2
90 711
89 464
89 464
16 625
89 464
COMMUNITY WEALTH/EQUITY
Accumulated Surplus/(Deficit)
90 711
89 464
89 464
16 625
89 464
Reserves
TOTAL COMMUNITY WEALTH/EQUITY
2
90 711
89 464
89 464
16 625
89 464
.
Table C7: Monthly Budget Statement - Cash Flow
NC064 Kamiesberg - Table C7 Monthly Budget Statement - Cash Flow - M06 December
Description
Ref
2016/17
Budget Year 2017/18
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
Ratepayers and other
3 228
24 512
24 512
7 983
14 448
10 064
4 385
44%
24 512
Government - operating
11 240
23 498
23 498
5 377
16 981
6 517
10 465
161%
23 498
Government - capital
32 396
–
–
2 000
7 982
(7 982)
15 964
-200%
–
Interest
885
5 034
5 034
43
249
4 785
(4 536)
-95%
5 034
Dividends
–
–
–
–
–
–
–
–
Payments
Suppliers and employees
(61 357)
(52 821)
(52 821)
(15 572)
(54 011)
1 190
55 201
4639%
(52 821)
Finance charges
(2 957)
(172)
(172)
(7)
(30)
(142)
(112)
79%
(172)
Transfers and Grants
–
–
–
–
–
–
–
–
NET CASH FROM/(USED) OPERATING ACTIVITIES
(16 565)
51
51
(176)
(14 381)
14 432
(28 812)
-200%
51
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE
(71)
–
–
–
–
–
–
–
Decrease (Increase) in non-current debtors
–
–
–
–
–
–
–
–
Decrease (increase) other non-current receivables
–
–
–
–
–
–
–
–
Decrease (increase) in non-current investments
–
–
–
–
–
–
–
–
Payments
Capital assets
(9 653)
–
–
–
–
–
–
–
NET CASH FROM/(USED) INVESTING ACTIVITIES
(9 724)
–
–
–
–
–
–
–
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
–
–
–
–
–
–
–
–
Borrowing long term/refinancing
–
–
–
–
–
–
–
–
Increase (decrease) in consumer deposits
106
–
–
–
–
–
–
–
Payments
Repayment of borrowing
(351)
–
–
–
–
–
–
–
NET CASH FROM/(USED) FINANCING ACTIVITIES
(245)
–
–
–
–
–
–
–
NET INCREASE/ (DECREASE) IN CASH HELD
(26 534)
51
51
(176)
(14 381)
14 432
51
Cash/cash equivalents at beginning:
571
–
–
73
–
73
Cash/cash equivalents at month/year end:
(25 963)
51
51
(14 307)
14 432
124
Table C7 includes all cash and cash equivalents (cashbook balances, and short-term investment deposits).Cash flow directly relates to programme and project management and the execution of the operational and capital budget. It is therefore essential that improved project management be implemented and carried through to the budgeted cash flow to allow Council to better manage its cash resources.
PART 2 – SUPPORTING DOCUMENTATION
Debtors ’Analysis
NC064 Kamiesberg - Supporting Table SC3 Monthly Budget Statement - aged debtors - M06 December
Description
NT Code
Budget Year 2017/18
0-30 Days
31-60 Days
61-90 Days
91-120 Days
121-150 Dys
151-180 Dys
181 Dys-1 Yr
Over 1Yr
Total
Bad Debts
>90 days
R thousands
Debtors Age Analysis By Revenue Source
Rates
1200
399
388
358
28 008
–
–
–
–
29 154
–
28 008
Electricity
1300
286
307
279
5 325
–
–
–
–
6 197
–
5 325
Water
1400
408
457
370
15 336
–
–
–
–
16 570
–
15 336
Sewerage / Sanitation
1500
141
129
110
3 487
–
–
–
–
3 868
–
3 487
Refuse Removal
1600
158
151
138
6 755
–
–
–
–
7 201
–
6 755
Housing (Rental Revenue)
1700
–
–
–
–
–
–
–
–
–
–
–
Other
1900
44
44
44
5 999
–
–
–
–
6 131
–
5 999
Total By Revenue Source
2000
1 436
1 476
1 299
64 911
–
–
–
–
69 121
–
64 911
2016/17 - totals only
–
–
Debtors Age Analysis By Customer Category
Government
2200
150
212
142
1 726
–
–
–
–
2 229
–
Business
2300
222
195
215
5 021
–
–
–
–
5 653
–
Households
2400
835
835
714
40 170
–
–
–
–
42 554
–
Other
2500
229
233
228
17 994
–
–
–
–
18 685
–
Total By Customer Category
2600
1 436
1 476
1 299
64 911
–
–
–
–
69 121
–
This table is a comparison between the revenue source and the customer category. Although we closely monitoring the credit control measures it still remains a challenge to get the rate payers as far as settling their debt. An overall cleaning of the debtors’ ledger is also necessary to establish what should be written off as bad debtsto determine amountfrom debtors which cannot be recovered after all means were taken to recover arrear debt.
Creditors’ Analysis
Description
NT Code
Budget Year 2017/18
Prior year totals for chart (same period)
0 - 30 Days
31 - 60 Days
61 - 90 Days
91 - 120 Days
121 - 150 Days
151 - 180 Days
181 Days -1 Year
Over 1Year
Total
R thousands
Creditors Age Analysis By Customer Type
Bulk Electricity
0100
1 311
205
1 303
932
3 524
1 105
–
8 380
Bulk Water
0200
–
–
–
–
–
PAYE deductions
0300
304
288
309
305
416
–
1 622
VAT (output less input)
0400
–
Pensions / Retirement deductions
0500
(168)
245
244
51
247
256
875
Loan repayments
0600
–
Trade Creditors
0700
29
115
88
32
–
798
287
337
1 687
Auditor General
0800
2 397
336
247
170
55
4 605
–
–
7 810
Other
0900
–
–
–
–
–
1 877
1 877
Total By Customer Type
2600
3 873
1 190
2 191
1 490
4 242
6 765
287
2 214
22 251
–
Investment portfolio
NC064 Kamiesberg - Supporting Table SC5 Monthly Budget Statement - investment portfolio - M06 December
Investments by maturityName of institution & investment ID
Ref
Period of Investment
Type of Investment
Expiry date of investment
Accrued interest for the month
Yield for the month 1 (%)
Market value at beginning of the month
Change in market value
Market value at end of the month
R thousands
Yrs/Months
Municipality
Investec Bank Limited
0
Smartrate plus Notice 32/80
41
0,0%
6 988
–
7 029
Municipality sub-total
41
6 988
–
7 029
Entities
Entities sub-total
–
–
–
–
TOTAL INVESTMENTS AND INTEREST
2
41
6 988
–
7 029
Allocation and grant receipts and expenditure
NC064 Kamiesberg - Supporting Table SC6 Monthly Budget Statement - transfers and grant receipts - M06 December
Description
Ref
2016/17
Budget Year 2017/18
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:
21 185
22 977
22 977
5 216
15 879
7 098
6 936
97,7%
22 977
Local Government Equitable Share
18 175
19 632
19 632
5 216
13 284
6 348
6 936
109,3%
19 632
Finance Management
2 010
2 345
2 345
2 345
–
2 345
EPWP Incentive
1 000
1 000
1 000
250
750
1 000
–
Other transfers and grants [insert description]
–
Provincial Government:
1 317
–
–
–
–
–
–
–
Sport and Recreation
1 317
–
Other transfers and grants [insert description]
–
District Municipality:
374
–
–
–
–
–
–
–
374
–
–
Total Operating Transfers and Grants
5
22 876
22 977
22 977
5 216
15 879
7 098
6 936
97,7%
22 977
Capital Transfers and Grants
National Government:
8 406
11 601
11 601
2 000
7 982
3 619
4 363
120,6%
11 601
Municipal Infrastructure Grant (MIG)
8 406
7 601
7 601
2 000
5 982
1 619
4 363
269,5%
7 601
Water Service Grant
4 000
4 000
–
2 000
2 000
–
4 000
Provincial Government:
–
–
–
–
–
–
–
–
Total Capital Transfers and Grants
5
8 406
11 601
11 601
2 000
7 982
3 619
4 363
120,6%
11 601
TOTAL RECEIPTS OF TRANSFERS & GRANTS
5
31 282
34 578
34 578
7 216
23 861
10 717
11 299
105,4%
34 578
Councilor and board member allowances and employee benefits
NC064 Kamiesberg - Supporting Table SC8 Monthly Budget Statement - counillor and staff benefits - M06 December
Summary of Employee and Councillor remuneration
Ref
2016/17
Budget Year 2017/18
Audited Outcome
Original Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
Full Year Forecast
R thousands
%
1
A
B
C
D
Councillors (Political Office Bearers plus Other)
Basic Salaries and Wages
1 303
1 419
1 419
107
289
1 130
(841)
-74%
1 419
Pension and UIF Contributions
136
184
184
22
131 262,24
53
79
149%
184
Medical Aid Contributions
68
69
69
13
13
56
(42)
-76%
69
Motor Vehicle Allowance
499
529
529
43
115
414
(300)
-72%
529
Cellphone Allowance
147
163
163
19
39
124
(86)
-69%
163
Housing Allowances
–
–
–
–
–
–
–
Other benefits and allowances
0
25
25
32
191 670,72
(167)
358
-215%
25
Sub Total - Councillors
2 154
2 389
2 389
235
778
1 611
(832)
-52%
2 389
% increase
4
10,9%
10,9%
10,9%
Senior Managers of the Municipality
3
Basic Salaries and Wages
1 589
1 791
1 791
147
881 082,06
910
(29)
-3%
1 791
Pension and UIF Contributions
126
190
190
17
101 930,22
88
14
16%
190
Medical Aid Contributions
50
98
98
11
64 497,60
34
31
93%
98
Overtime
–
–
–
–
-
–
–
Performance Bonus
–
-
–
–
Motor Vehicle Allowance
264
326
326
21
123 036,00
203
(80)
-39%
326
Cellphone Allowance
28
39
39
3
18 798,18
20
(1)
-7%
39
Housing Allowances
39
41
41
3
19 731,42
21
(2)
-7%
41
Other benefits and allowances
81
90
90
28
95 492,22
(5)
101
-1839%
90
Sub Total - Senior Managers of Municipality
2 177
2 575
2 575
230
1 305
1 270
34
3%
2 575
% increase
4
18,3%
18,3%
18,3