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TSANTSABANE MUNICIPALITY
Adjustment Budget
2018/19– 2020/21 Adjusted Medium Term Revenue and
Expenditure Framework
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Table of Contents
Table of Contents ................................................................................................................... 2
Glossary ................................................................................................................................. 3
PART 1 – ADJUSTMENT BUDGET ....................................................................................... 4
Section 1 – Mayor’s Report .................................................................................................... 5
Section 2 - Budget Related Resolutions ............................................................................... 11
Section 3 – Executive Summary ........................................................................................... 12
Section 4 – Adjustment budget tables .................................................................................. 19
PART 2 – SUPPORTING DOCUMENTATION ..................................................................... 19
Section 5 – Measurable performance objectives and indicators ........................................... 19
Section 6 – Budget related policies....................................................................................... 22
Section 7 – Overview of budget assumptions ....................................................................... 22
Section 8 – Funding compliance ........................................................................................... 22
Section 9 – Overview of budget funding ............................................................................... 23
Section 10 _Expenditure on allocation and grants programmes……………………………….23
Section 11_ Allocations and grants made by the Municipality…………………………….24-25
Section 12 – Councillor Allowances and employee benefits ................................................. 27
Section 13 – Monthly targets for revenue, expenditure and cash flow .................................. 29
Section 14 – Adjustments to the quarterly service delivery and budget implementation plans – internal department 29
Section 15 – Annual budgets and service delivery agreements – municipal entities and other external mechanisms ................................................................................................... 29
Section 16 _Contracts having future budgetary implication ………………………………… 26-27
Section 17 – Capital expenditure details ............................................................................... 29
Summary. ............................................................................................................................. 30
Section 18 – Quality certification .......................................................................................... 31
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Glossary
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 or public donations.
Budget – The financial plan of the Municipality.
Budget Related Policy – Policy of a municipality affecting or affected by the budget, examples include tariff 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 is shown 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 legislation that shows the total allocations made by national to provincial and local government.
Equitable Share – A general grant paid to municipalities. It is predominantly targeted to help with free basic services.
Fruitless and wasteful expenditure – Expenditure that was made in vain and would have been avoided had reasonable care been exercised.
GFS – Government Finance Statistics. An internationally recognised classification system that facilitates like for like comparison between municipalities.
GRAP – Generally Recognised Accounting Practice. The new standard for municipal accounting.
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.
Net Assets – Net assets are the residual interest in the assets of the entity after deducting all its liabilities. This means the net assets of the municipality equates to the "net wealth" of the municipality, after all assets were sold/recovered and all liabilities paid. Transactions which do not
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meet the definition of Revenue or Expenses, such as increases in values of Property, Plant and Equipment where there is no inflow or outflow of resources are accounted for in Net Assets.
Operating Expenditure – Spending on the day to day expenses of the Municipality such as salaries and wages.
Rates – Local Government tax based on the 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.
Unauthorised expenditure – Generally, spending without, or in excess of, an approved budget.
Virement – A transfer of budget.
Vote – One of the main segments of a budget. The structure is for reporting requirements and links the accounting performance both to the IDP and to the responsible officials.
The vote structure at Tsantsabane Municipality is made up as follows:
Refer to the next page
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PART 1 – ADJUSTMENT BUDGET
Section 1 – Mayor’s Report
It is with great pleasure that I present the 2018/19 Adjustment Budget to Council for consideration.
The reason for the tabling of an adjustment budget is fully disclosed in the executive summary of the adjustment budget documentation. The adjustments were mainly necessitated by extra revenue that will collected and revenue that will not be collected from services as well as adjustments required due to over expenditure on votes and under expenditure of capital projects.
Vote 1 - EXCECUTIVE AND COUNCIL
1.1 - COUNCIL GENERAL
1.2 - MAYOR
1.3 - MUNICIPALMANAGER
Vote 2 - FINANCE AND ADMINISTRATION
2.1 - BUDGET AND TREASURY
2.2 - RATES AND TAXES
2.3 - CORPORATE SERVICES
2.4 - HUMAN RESOURCE
2.5 - MUNICIPAL PROPERTY(PRPOPERT SERVICES)
2.6 - SECURITY SERVICES
Vote 3 - COMMUNITY & SOCIAL SERVICES
3.1 - CEMETRY
3.2 - LIBRARY
Vote 4 - SPORT AND RECREATION
4.1 - CARAVAN PARK
4.2 - PARKS AND RECREATION
4.3 - SWIMMING POOL
Vote 5 - PUBLIC SAFETY
5.1 - FIRE FIGHTING
5.2 - TRAFFIC
Vote 6 - ROAD TRANSPORT
Vote 7 - ELECTRICITY DISTRIBUTION
Vote 8 - WATER DISTRIBUTION
Vote 9 - WASTE WATER
Vote 10 - WASTE MANAGEMENT
Vote 11 - HOUSING
Vote 12 - PLANNING AND DEVELOPMENT
12.1 - COMMONAGE
12.2 - TOWN PLANNING
12.3 - PROJECT MANAGEMENT UNIT
Vote 13 - OTHER
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Council is still committed to ensure high quality basic services are provided without putting strain on the consumer by means of excessive rates and tariff increases.
The main adjustments proposed in this adjustment budget are:
Operating Budget: Revenue
1) Increase of R 44 510 000 in revenue due to the following –
i. Property rates : R5 924 000
ii. Electricity service charge : R22 508 000
iii. Water service charge :R11 001 000
iv. Other revenue : R5 078 000
2) An increase in operating expenditure amounting to R44 836.000. This increase is mainly as a result of the following –
i. An increase in employee related costs amounting to R 6,768 million. a. An increase in employee related costs amounting to R 5,026 million. This increase could mainly be attributed to the Projects management unit and employees at Sewer that were appointed during the current year but not budgeted for. Councillors Travel allowances and 3G allowance not budgeted under Remuneration of Councillors.
ii. An increase in bulk services : Electricity R 2,338 million.
: Water R 6,626 million.
iii. An increase in General Expenditure
iv. Finance charges of R 7,001 million not budgeted for.
v. Decrease in non-cash items(depreciation) : R 64.000
vi. Decrease in contracted services : R 2,599 million
vii. Decrease in other material : R 4,265 million
viii. Increase in other expenditure : R 29 033 million
Breakdown for other expenditure is as follows:
Refer to the next page
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The net effect from these adjustments is that the projected operating surplus decreases from R 1,668.000 to R1, 342.000.
Capital Budget
There is an increase of R1000 000 in capital due to the INEP grant that was received and was not budgeted for. The grant will be used to fund electricity master Plan.
The MIG allocation for the 2018/19 financial year amounts to R14,546 million. At the end of December 2018, R1,641 million or 11,29% was spent. The WSIG allocation for the current year amounts to 4 000 million and 1,423 or 35,60 was spent. INEP spending amount to R 287 500 which is 29% spending of the grant
Refer to the next page
Other Expenditure By Type
Collection costs – – – – – – – – – – –
Contributions to 'other' prov isions – – – – – – – – – – –
Consultant fees – – – – – – – – – – –
Audit fees – – – – – – – – – – –
General ex penses 3,5 6,920 – – – – – 148 148 7,068 5,551 4,904
Operating Leases 5,530 – – – – – 7,118 7,118 12,648 3,474 3,657
Travel and Subsistence 795 – – – – – 585 585 1,380 462 462
Advertising, Publicity and Marketing 663 – – – – – 4,091 4,091 4,754 465 465
Communication 720 – – – – – 300 300 1,020 291 291
Entertainment 30 – – – – – (6) (6) 24 33 33
External Computer Service 1,896 – – – – – 1,954 1,954 3,850 1,998 2,098
Bank Charges, Facility and Card Fees 349 – – – – – 8,715 8,715 9,064 349 367
Commission 1,154 – – – – – 5,965 5,965 7,119 571 611
Insurance Underwriting 136 – – – – – 287 287 423 95 1,111
Licences 906 – – – – – (124) (124) 782 1,007 1,007
Fines and Penalties – – – – – – – – – – –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
– –
Total Other Expenditure 1 19,099 – – – – – 29,033 29,033 48,132 14,297 15,006
Repairs and Maintenance 14
Employ ee related costs – – – – – – – – – – –
Other materials 7,504 – – – – – (4,265) (4,265) 3,239 7,909 8,344
Contracted Serv ices – – – – – – – – – – –
Other Ex penditure – – – – – – – – – – –
Total Repairs and Maintenance Expenditure 15 7,504 – – – – – (4,265) (4,265) 3,239 7,909 8,344
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Choose name from list - Table B5 Adjustments Capital Expenditure Budget by vote and funding -
Budget
Year +1
2019/20
Budget
Year +2
2020/21
Original
Budget
Prior
Adjusted
Accum.
Funds
Multi-year
capital
Unfore.
Unavoid.
Nat. or
Prov. Govt
Other
Adjusts.
Total
Adjusts.
Adjusted
Budget
Adjusted
Budget
Adjusted
Budget
5 6 7 8 9 10 11 12
R thousands A A1 B C D E F G H
Capital expenditure - Vote
Multi-year expenditure to be adjusted 2
Vote 1 - EXCECUTIVE AND COUNCIL 40 – – – – – – – 40 150 150
Vote 2 - FINANCE AND ADMINISTRATION – – – – – – – – – – –
Vote 3 - COMMUNITY & SOCIAL SERVICES 1,243 – – – – – – – 1,243 2,185 1,989
Vote 4 - SPORT AND RECREATION – – – – – – – – – – –
Vote 5 - PUBLIC SAFETY – – – – – – – – – – –
Vote 6 - ROAD TRANSPORT 18,546 – – – – – – – 18,546 14,765 15,369
Vote 7 - ELECTRICITY DISTRIBUTION – – – – – – – – – – –
Vote 8 - WATER DISTRIBUTION – – – – – – – – – – –
Vote 9 - WASTE WATER – – – – – – – – – – –
Vote 10 - WASTE MANAGEMENT – – – – – – – – – – –
Vote 11 - HOUSING – – – – – – – – – – –
Vote 12 - PLANNING AND DEVELOPMENT – – – – – – – – – – –
Vote 13 - OTHER – – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –
Capital multi-year expenditure sub-total 3 19,829 – – – – – – – 19,829 17,100 17,508
Single-year expenditure to be adjusted 2
Vote 1 - EXCECUTIVE AND COUNCIL – – – – – – – – – – –
Vote 2 - FINANCE AND ADMINISTRATION – – – – – – – – – – –
Vote 3 - COMMUNITY & SOCIAL SERVICES – – – – – – – – – – –
Vote 4 - SPORT AND RECREATION – – – – – – – – – – –
Vote 5 - PUBLIC SAFETY – – – – – – – – – – –
Vote 6 - ROAD TRANSPORT – – – – – – 1,000 1,000 1,000 – –
Vote 7 - ELECTRICITY DISTRIBUTION – – – – – – – – – – –
Vote 8 - WATER DISTRIBUTION – – – – – – – – – – –
Vote 9 - WASTE WATER – – – – – – – – – – –
Vote 10 - WASTE MANAGEMENT – – – – – – – – – – –
Vote 11 - HOUSING – – – – – – – – – – –
Vote 12 - PLANNING AND DEVELOPMENT – – – – – – – – – – –
Vote 13 - OTHER – – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –
Capital single-year expenditure sub-total – – – – – – 1,000 1,000 1,000 – –
Total Capital Expenditure - Vote 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Capital Expenditure - Functional
Governance and administration 1,283 – – – – – – – 1,283 2,335 2,139
Ex ecutiv e and council – – – – – – – – – – –
Finance and administration 1,283 – – – – – – – 1,283 2,335 2,139
Internal audit – – – – – – – – – – –
Community and public safety – – – – – – – – – – –
Community and social serv ices – – – – – – – – – – –
Sport and recreation – – – – – – – – – – –
Public safety – – – – – – – – – – –
Housing – – – – – – – – – – –
Health – – – – – – – – – – –
Economic and environmental services 14,546 – – – – – – – 14,546 14,765 15,369
Planning and dev elopment – – – – – – – – – – –
Road transport 14,546 – – – – – – – 14,546 14,765 15,369
Env ironmental protection – – – – – – – – – – –
Trading services 4,000 – – – – – 1,000 1,000 5,000 – –
Energy sources – – – – – – 1,000 1,000 1,000 – –
Water management 4,000 – – – – – – – 4,000 – –
Waste w ater management – – – – – – – – – – –
Waste management – – – – – – – – – – –
Other – – – – – – – – – – –
Total Capital Expenditure - Functional 3 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Funded by:
National Gov ernment 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369
Prov incial Gov ernment – – – – – – – – – – –
District Municipality – – – – – – – – – – –
Other transfers and grants – – – – – – – – – – –
Transfers recognised - capital 4 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369
Public contributions & donations – – – – – – – – – – –
Borrowing – – – – – – – – – – –
Internally generated funds 1,283 – – – – – – – 1,283 2,335 2,139
Total Capital Funding 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Description Ref
Budget Year 2018/19
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Funding and Cash flows
Council should note that this adjustment budget is not funded.
Cashflow statement R’000)
Tsantsabane Municipality continues to experience serious cash flow problems. The municipality has to implement turnaround strategy to stabilise cash flow.
Unforeseen and unavoidable expenditure
There was no unforeseen and unavoidable expenditure approved by the Municipal Manager and Mayor and incorporated into this adjustment budget since the original approved budget.
Changes to allocations and grant adjustments
Changes to expected grant expenditure are reflected below. Full details regarding income and allocations are disclosed in documentation forms SB7 to SB9.
NC085 Tsantsabane - Table B7 Adjustments Budget Cash Flows -
Budget
Year +1
2019/20
Budget
Year +2
2020/21
Original
Budget
Prior
Adjusted
Accum.
Funds
Multi-year
capital
Unfore.
Unavoid.
Nat. or
Prov. Govt
Other
Adjusts.
Total
Adjusts.
Adjusted
Budget
Adjusted
Budget
Adjusted
Budget
3 4 5 6 7 8 9 10
R thousands A A1 B C D E F G H
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Property rates 35,502 5,924 5,924 41,426 37,419 39,478
Serv ice charges 140,233 33,509 33,509 173,742 154,523 170,735
Other rev enue 11,500 6,077 6,077 17,577 12,121 14,042
Gov ernment - operating 1 40,760 – 40,760 43,874 46,938
Gov ernment - capital 1 20,312 – 20,312 17,100 17,508
Interest 550 – 550 580 612
Div idends – –
Payments
Suppliers and employ ees (198,300) (39,109) (39,109) (237,409) (208,932) (221,447)
Finance charges (7,001) (7,001) (7,001)
Transfers and Grants 1 – –
NET CASH FROM/(USED) OPERATING ACTIVITIES 50,557 – – – – – (601) (601) 49,956 56,685 67,866
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE 1,000 – 1,000 8,000 8,000
Decrease (Increase) in non-current debtors (2,803) – (2,803) (2,954) (3,117)
Decrease (increase) other non-current receiv ables (9,006) – (9,006) (9,493) (10,015)
Decrease (increase) in non-current inv estments – –
Payments
Capital assets (20,312) – (20,312) (17,100) (17,508)
NET CASH FROM/(USED) INVESTING ACTIVITIES (31,121) – – – – – – – (31,121) (21,547) (22,640)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans – –
Borrow ing long term/refinancing – –
Increase (decrease) in consumer deposits 24 – 24 25 25
Payments
Repay ment of borrow ing – –
NET CASH FROM/(USED) FINANCING ACTIVITIES 24 – – – – – – – 24 25 25
NET INCREASE/ (DECREASE) IN CASH HELD 19,460 – – – – – (601) (601) 18,859 35,164 45,252
Cash/cash equiv alents at the y ear begin: 2 9,439 – 9,439 28,899 64,063
Cash/cash equiv alents at the y ear end: 2 28,899 – – – – – (601) (601) 28,298 64,063 109,315
Description Ref
Budget Year 2018/19
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Summary
An uncompromising commitment to quality service is a fundamental responsibility of the local government. Though we have not yet achieved all of the lofty goals that our citizens expect from us, we recognize and reaffirm our commitment that service delivery, service quality, and value must continuously be improved.
Council and management must do everything in their power to address service delivery requirements within limited financial means. All Councillors and officials need to go the extra mile. The debt collection and credit control is an enormous problem in Tsantsabane Municipality and needs serious attention.
There is a need to restore confidence of the majority of the community and that requires team work.
NC085 Tsantsabane - Supporting Table SB8 Adjustments Budget - expenditure on transfers and grant programme -
Budget Year
+1 2019/20
Budget Year
+2 2020/21
Original
Budget
Prior
Adjusted
Multi-year
capital
Nat. or Prov.
Govt
Other
Adjusts.
Total
Adjusts.
Adjusted
Budget
Adjusted
Budget
Adjusted
Budget
2 3 4 5 6 7
R thousands A A1 B C D E F
EXPENDITURE ON TRANSFERS AND GRANT PROGRAM: 1
Operating expenditure of Transfers and Grants
National Government: 38,800 – – – – – 38,800 41,703 45,990
Local Gov ernment Equitable Share 35,385 – 35,385 38,823 42,678
Finance Management 2,415 – 2,415 2,880 3,312
Municipal Sy stems Improv ement – –
EPWP Incentiv e 1,000 – 1,000
– –
– –
Other transfers and grants [insert description] – –
Provincial Government: 1,194 – – – – – 1,194 1,394 1,394
Sport and Recreation 1,194 – 1,194 1,394 1,394
– –
– –
– –
Other transfers and grants [insert description] – –
District Municipality: – – – – – – – – –
[insert description] – –
– –
Other grant providers: – – – – – – – – –
[insert description] – –
– –
Total operating expenditure of Transfers and Grants: 39,994 – – – – – 39,994 43,097 47,384
Capital expenditure of Transfers and Grants
National Government: 19,312 – – – 1,000 1,000 20,312 15,542 16,178
Municipal Infrastructure Grant (MIG) 15,312 – 15,312 15,542 16,178
Regional Bulk Infrastructure 4,000 1,000 1,000 5,000
– –
– –
– –
Other capital transfers [insert description] – –
Provincial Government: – – – – – – – – –
Other capital transfers/grants [insert description] – –
– –
District Municipality: – – – – – – – – –
[insert description] – –
– –
Other grant providers: – – – – – – – – –
[insert description] – –
– –
Total capital expenditure of Transfers and Grants 19,312 – – – 1,000 1,000 20,312 15,542 16,178
Total capital expenditure of Transfers and Grants 59,306 – – – 1,000 1,000 60,306 58,639 63,562
Description Ref
Budget Year 2018/19
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Recommendations
It is recommended that:
1) Council approves the adjustment budget as set out below.
2) And consider the adjustment budget for approval as baseline for 2019/20 draft budget.
3) Approve the baseline 2019/20 draft budget for advertisement and public participation as per approved 2019/20 IDP/Budget Process Plan
Section 2 - Budget Related Resolutions
ADJUSTMENT BUDGET 2018/19
The resolution tabled at Council for consideration with approval of the adjustment budget is:
RECOMMENDATION:
a) That the adjustment budget of Tsantsabane Municipality for the financial year 2018/19 as set out in the schedules contained in section 2 be approved:
(i) Table B1 Adjustments Budget Summary;
(ii) Table B2 Adjustments Budget Financial Performance (by standard classification);
(iii) Table B3 Adjustments Budget Financial Performance (by municipal vote);
(iv) Table B4 Adjustments Budget Financial Performance (revenue by source); and
(v) Table B5 Adjustments Budget Capital Expenditure (by municipal vote and funding source)
b) That it be noted that there are changes to the budget related policies that were approved:
• Property Rates Policy
c) That the following new policies be adopted by Council.
• Contract Management Policy
Refer to the next page
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Section 3 – Executive Summary
Introduction
Tsantsabane Municipality experience serious cash flow problems. It is advised that new funding sources be exploited to fund the capital program and to settle all outstanding creditors older than 30 days (i.e. more own revenue or additional grant funding or the sale of land or the installation of pre-paid water meters).
The adopted turnaround strategy should be implemented.
Outstanding Debt
The total debt older than 120 days amounts to R184 842 212 or 88.61%. The outstanding debt increased as follows:
Total outstanding debt as at 31 December 2013 R118 077 078
Total outstanding debt as at 31 December 2014 R135 133 361
Total outstanding debt as at 31 December 2015 R162 241 449
Total outstanding debt as at 31 December 2016 R208 612 485
Total outstanding debt as at 31 December 2017 R195 748 421
Total outstanding debt as at 31 December 2018 R234 078 549
In 2018 the debt increased with an amount of R38 330 128 or 19.58%. The Municipality will find it difficult to collect the debt that is outstanding for more than 121 days. Debt collection at the municipality is poor.
The average debt collection (billing vs collection only) from July 2018 to December 2018 was a mere 38,34%. The average debt collection based on the total outstanding debtors is 13%
Management should strive to maintain, and where possible increase accumulated reserves. This is however only possible if debt collection improves and regular credit control is enforced. We (Council and Management) need to work hand in hand to turn around Tsantsabane Municipality. This is expected from the community we serve.
Effect of the adjustment budget
The overall changes made to the 2018/19 budget can be best illustrated in the table below.
Refer to the next page
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Operating Budget: Revenue
NC085 Tsantsabane - Table B1 Adjustments Budget Summary -
Budget
Year +1
2019/20
Budget
Year +2
2020/21
Original
Budget
Prior
Adjusted
Accum.
Funds
Multi-year
capital
Unfore.
Unavoid.
Nat. or
Prov. Govt
Other
Adjusts.
Total
Adjusts.
Adjusted
Budget
Adjusted
Budget
Adjusted
Budget
1 2 3 4 5 6 7 8
R thousands A A1 B C D E F G H
Financial Performance
Property rates 35,502 – – – – – 5,924 5,924 41,426 37,419 39,478
Serv ice charges 140,232 – – – – – 33,509 33,509 173,741 154,489 170,702
Inv estment rev enue 550 – – – – – – – 550 580 612
Transfers recognised - operational 40,810 – – – – – – – 40,810 43,930 46,938
Other ow n rev enue 12,450 – – – – – 5,078 5,078 17,528 20,066 22,042
Total Revenue (excluding capital transfers
and contributions)
229,544 – – – – – 44,510 44,510 274,054 256,484 279,772
Employ ee costs 81,810 – – – – (76) 5,103 5,026 86,837 79,590 83,550
Remuneration of councillors 3,699 – – – – – 1,665 1,665 5,364 3,899 4,113
Depreciation & asset impairment 17,053 – – – – – (64) (64) 16,989 17,974 18,963
Finance charges 0 – – – – – 7,001 7,001 7,001 – –
Materials and bulk purchases 63,390 – – – – 163 4,699 4,862 68,252 67,799 72,551
Transfers and grants – – – – – – – – – – –
Other ex penditure 61,923 – – – – 409 26,434 26,843 88,766 62,378 66,252
Total Expenditure 227,876 – – – – 496 44,837 45,333 273,208 231,640 245,429
Surplus/(Deficit) 1,668 – – – – (496) (327) (822) 846 24,844 34,343
Transfers recognised - capital 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369
Contributions recognised - capital & contributed assets – – – – – – – – – – –
Surplus/(Deficit) after capital transfers &
contributions
20,214 – – – – (496) 673 178 20,392 39,609 49,712
Share of surplus/ (deficit) of associate – – – – – – – – – – –
Surplus/ (Deficit) for the year 20,214 – – – – (496) 673 178 20,392 39,609 49,712
Capital expenditure & funds sources
Capital expenditure 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Transfers recognised - capital 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369
Public contributions & donations – – – – – – – – – – –
Borrow ing – – – – – – – – – – –
Internally generated funds 1,283 – – – – – – – 1,283 2,335 2,139
Total sources of capital funds 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Financial position
Total current assets 136,332 – – – – – – – 136,332 141,205 146,698
Total non current assets 663,188 – – – – – – – 663,188 698,337 736,745
Total current liabilities 167,553 – – – – – – – 167,553 162,911 171,872
Total non current liabilities 13,424 – – – – – – – 13,424 16,750 17,250
Community wealth/Equity 694,991 – – – – – – – 694,991 717,459 750,020
Cash flows
Net cash from (used) operating 50,557 – – – – – (601) (601) 49,956 56,685 67,866
Net cash from (used) inv esting (31,121) – – – – – – – (31,121) (21,547) (22,640)
Net cash from (used) financing 24 – – – – – – – 24 25 25
Cash/cash equivalents at the year end 28,899 – – – – – (601) (601) 28,298 64,063 109,315
Cash backing/surplus reconciliation
Cash and inv estments av ailable 9,000 – – – – – – – 9,000 9,477 9,998
Application of cash and inv estments 28,761 – – – – – (669) (669) 28,092 36,100 39,862
Balance - surplus (shortfall) (19,761) – – – – – 669 669 (19,092) (26,623) (29,863)
Asset Management
Asset register summary (WDV) – – – – – – – – – – –
Depreciation & asset impairment 17,053 – – – – – (64) (64) 16,989 17,974 16,989
Renew al of Ex isting Assets 19,829 – – – – – – – 19,829 17,100 19,829
Repairs and Maintenance – – – – – – – – – – –
Free services
Cost of Free Basic Serv ices prov ided 9,675 – – – – – – – 9,675 10,231 10,792
Rev enue cost of free serv ices prov ided – – – – – – – – – – 0
Households below minimum service level
Water: – – – – – – – – – – –
Sanitation/sew erage: – – – – – – – – – – –
Energy : – – – – – – – – – – –
Refuse: – – – – – – – – – – –
Budget Year 2018/19
Description
-
4) Increase of R44,510.000 in revenue due to the following –
i. Property rates : R5,924.000
ii. Electricity service charge :R22,508.000
iii. Water service charge :R11,001.000
iv. Other revenue :R5,078.
5) An increase in operating expenditure amounting to R 45,333 million. This increase is mainly as a result of the following –
i. An increase in employee related costs amounting to R 6,768 million.
ii. An increase in bulk services : Electricity R 2,338 million.
: Water R 6,626 million.
iii. An increase in General Expenditure
iv. Finance charges: R7, 001.000
v. Increase in other expenditure :R29 033 million
vi. Decrease in non-cash items(depreciation) :R64.000
vii. Decrease in contracted services :R2,599 million
viii. Decrease in other material :R4,265 million
Refer to the next page
-
Revenue and Expenditure by Municipal vote:
NC085 Tsantsabane - Table B3 Adjustments Budget Financial Performance (revenue and expenditure by municipal vote) -
Budget
Year +1
2019/20
Budget
Year +2
2020/21
Original
Budget
Prior
Adjusted
Accum.
Funds
Multi-year
capital
Unfore.
Unavoid.
Nat. or
Prov. Govt
Other
Adjusts.
Total
Adjusts.
Adjusted
Budget
Adjusted
Budget
Adjusted
Budget
[Insert departmental structure etc] 3 4 5 6 7 8 9 10
R thousands A A1 B C D E F G H
Revenue by Vote 1
Vote 1 - EXCECUTIVE AND COUNCIL 4 004 – – – – – – – 4 004 11 296 11 627
Vote 2 - FINANCE AND ADMINISTRATION 71 205 – – – – – 11 001 11 001 82 206 76 782 82 848
Vote 3 - COMMUNITY & SOCIAL SERVICES 1 232 – – – – – – – 1 232 1 434 1 436
Vote 4 - SPORT AND RECREATION 151 – – – – – – – 151 159 167
Vote 5 - PUBLIC SAFETY 1 118 – – – – – – – 1 118 1 178 1 243
Vote 6 - ROAD TRANSPORT 1 162 – – – – – – – 1 162 171 180
Vote 7 - ELECTRICITY DISTRIBUTION 54 133 – – – – – 22 508 22 508 76 640 57 056 60 194
Vote 8 - WATER DISTRIBUTION 49 942 – – – – – 11 001 11 001 60 943 55 873 62 072
Vote 9 - WASTE WATER 22 026 – – – – – – – 22 026 23 716 25 770
Vote 10 - WASTE MANAGEMENT 23 806 – – – – – – – 23 806 28 076 33 458
Vote 11 - HOUSING – – – – – – – – – – –
Vote 12 - PLANNING AND DEVELOPMENT 766 – – – – – – – 766 777 809
Vote 13 - OTHER – – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –
Total Revenue by Vote 2 229 544 – – – – – 44 510 44 510 274 054 256 517 279 805
Expenditure by Vote 1
Vote 1 - EXCECUTIVE AND COUNCIL 14 447 – – – – – 6 101 6 101 20 548 15 227 16 064
Vote 2 - FINANCE AND ADMINISTRATION 58 465 – – – – – 20 764 20 764 79 230 61 600 64 988
Vote 3 - COMMUNITY & SOCIAL SERVICES 5 777 – – – – – 7 416 7 416 13 194 6 089 6 424
Vote 4 - SPORT AND RECREATION 10 051 – – – – – (6 206) (6 206) 3 845 10 593 11 176
Vote 5 - PUBLIC SAFETY 5 696 – – – – – 429 429 6 125 6 004 6 334
Vote 6 - ROAD TRANSPORT 14 129 – – – – – 1 827 1 827 15 956 13 838 14 599
Vote 7 - ELECTRICITY DISTRIBUTION 46 574 – – – – – 7 530 7 530 54 103 50 074 53 851
Vote 8 - WATER DISTRIBUTION 33 408 – – – – – 5 121 5 121 38 529 35 212 37 148
Vote 9 - WASTE WATER 25 189 – – – – – 3 144 3 144 28 333 26 549 28 010
Vote 10 - WASTE MANAGEMENT 8 507 – – – – – (2 902) (2 902) 5 604 8 966 9 459
Vote 11 - HOUSING 1 189 – – – – – 1 116 1 116 2 305 1 253 1 322
Vote 12 - PLANNING AND DEVELOPMENT 1 050 – – – – – 434 434 1 484 1 106 1 167
Vote 13 - OTHER 3 456 – – – – – – – 3 456 3 636 3 836
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –
Total Expenditure by Vote 2 227 937 – – – – – 44 775 44 775 272 712 240 148 254 379
Surplus/ (Deficit) for the year 2 1 606 – – – – – (265) (265) 1 342 16 370 25 427
Vote Description
Ref
Budget Year 2018/19
-
The capital budget has been adjusted from R19,829 million to R20,829 million.
Increase of R1000 000.
Budget
Year +1
2019/20
Budget
Year +2
2020/21
Original
Budget
Prior
Adjusted
Accum.
Funds
Multi-year
capital
Unfore.
Unavoid.
Nat. or
Prov. Govt
Other
Adjusts.
Total
Adjusts.
Adjusted
Budget
Adjusted
Budget
Adjusted
Budget
5 6 7 8 9 10 11 12
R thousands A A1 B C D E F G H
Capital expenditure - Vote
Multi-year expenditure to be adjusted 2
Vote 1 - EXCECUTIVE AND COUNCIL 40 – – – – – – – 40 150 150
Vote 2 - FINANCE AND ADMINISTRATION – – – – – – – – – – –
Vote 3 - COMMUNITY & SOCIAL SERVICES 1,243 – – – – – – – 1,243 2,185 1,989
Vote 4 - SPORT AND RECREATION – – – – – – – – – – –
Vote 5 - PUBLIC SAFETY – – – – – – – – – – –
Vote 6 - ROAD TRANSPORT 18,546 – – – – – – – 18,546 14,765 15,369
Vote 7 - ELECTRICITY DISTRIBUTION – – – – – – – – – – –
Vote 8 - WATER DISTRIBUTION – – – – – – – – – – –
Vote 9 - WASTE WATER – – – – – – – – – – –
Vote 10 - WASTE MANAGEMENT – – – – – – – – – – –
Vote 11 - HOUSING – – – – – – – – – – –
Vote 12 - PLANNING AND DEVELOPMENT – – – – – – – – – – –
Vote 13 - OTHER – – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –
Capital multi-year expenditure sub-total 3 19,829 – – – – – – – 19,829 17,100 17,508
Single-year expenditure to be adjusted 2
Vote 1 - EXCECUTIVE AND COUNCIL – – – – – – – – – – –
Vote 2 - FINANCE AND ADMINISTRATION – – – – – – – – – – –
Vote 3 - COMMUNITY & SOCIAL SERVICES – – – – – – – – – – –
Vote 4 - SPORT AND RECREATION – – – – – – – – – – –
Vote 5 - PUBLIC SAFETY – – – – – – – – – – –
Vote 6 - ROAD TRANSPORT – – – – – – 1,000 1,000 1,000 – –
Vote 7 - ELECTRICITY DISTRIBUTION – – – – – – – – – – –
Vote 8 - WATER DISTRIBUTION – – – – – – – – – – –
Vote 9 - WASTE WATER – – – – – – – – – – –
Vote 10 - WASTE MANAGEMENT – – – – – – – – – – –
Vote 11 - HOUSING – – – – – – – – – – –
Vote 12 - PLANNING AND DEVELOPMENT – – – – – – – – – – –
Vote 13 - OTHER – – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –
Capital single-year expenditure sub-total – – – – – – 1,000 1,000 1,000 – –
Total Capital Expenditure - Vote 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Capital Expenditure - Functional
Governance and administration 1,283 – – – – – – – 1,283 2,335 2,139
Ex ecutiv e and council – – – – – – – – – – –
Finance and administration 1,283 – – – – – – – 1,283 2,335 2,139
Internal audit – – – – – – – – – – –
Community and public safety – – – – – – – – – – –
Community and social serv ices – – – – – – – – – – –
Sport and recreation – – – – – – – – – – –
Public safety – – – – – – – – – – –
Housing – – – – – – – – – – –
Health – – – – – – – – – – –
Economic and environmental services 14,546 – – – – – – – 14,546 14,765 15,369
Planning and dev elopment – – – – – – – – – – –
Road transport 14,546 – – – – – – – 14,546 14,765 15,369
Env ironmental protection – – – – – – – – – – –
Trading services 4,000 – – – – – 1,000 1,000 5,000 – –
Energy sources – – – – – – 1,000 1,000 1,000 – –
Water management 4,000 – – – – – – – 4,000 – –
Waste w ater management – – – – – – – – – – –
Waste management – – – – – – – – – – –
Other – – – – – – – – – – –
Total Capital Expenditure - Functional 3 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Funded by:
National Gov ernment 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369
Prov incial Gov ernment – – – – – – – – – – –
District Municipality – – – – – – – – – – –
Other transfers and grants – – – – – – – – – – –
Transfers recognised - capital 4 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369
Public contributions & donations – – – – – – – – – – –
Borrowing – – – – – – – – – – –
Internally generated funds 1,283 – – – – – – – 1,283 2,335 2,139
Total Capital Funding 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Description Ref
Budget Year 2018/19
-
The new projected forecasts for the MTREF are as follows:
OPERATING BUDGET AFTER ADJUSTMENTS (R’ 000)
Summary of total revenue and expenditure excluding capital transfers:
CAPITAL BUDGET (R’ 000)
Refer to the next page
TYPE 2019/20 2020/2021 2021/2022
REVENUE 274 054 256 517 279 805
EXPENDITURE 272 712 240 148 254 379
TOTAL 1 342 16 369 25 426
-
NC085 Tsantsabane - Table B5 Adjustments Capital Expenditure Budget by vote and funding -
Budget
Year +1
2019/20
Budget
Year +2
2020/21
Original
Budget
Prior
Adjusted
Accum.
Funds
Multi-year
capital
Unfore.
Unavoid.
Nat. or
Prov. Govt
Other
Adjusts.
Total
Adjusts.
Adjusted
Budget
Adjusted
Budget
Adjusted
Budget
5 6 7 8 9 10 11 12
R thousands A A1 B C D E F G H
Capital expenditure - Vote
Multi-year expenditure to be adjusted 2
Vote 1 - EXCECUTIVE AND COUNCIL 40 – – – – – – – 40 150 150
Vote 2 - FINANCE AND ADMINISTRATION – – – – – – – – – – –
Vote 3 - COMMUNITY & SOCIAL SERVICES 1,243 – – – – – – – 1,243 2,185 1,989
Vote 4 - SPORT AND RECREATION – – – – – – – – – – –
Vote 5 - PUBLIC SAFETY – – – – – – – – – – –
Vote 6 - ROAD TRANSPORT 18,546 – – – – – – – 18,546 14,765 15,369
Vote 7 - ELECTRICITY DISTRIBUTION – – – – – – – – – – –
Vote 8 - WATER DISTRIBUTION – – – – – – – – – – –
Vote 9 - WASTE WATER – – – – – – – – – – –
Vote 10 - WASTE MANAGEMENT – – – – – – – – – – –
Vote 11 - HOUSING – – – – – – – – – – –
Vote 12 - PLANNING AND DEVELOPMENT – – – – – – – – – – –
Vote 13 - OTHER – – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –
Capital multi-year expenditure sub-total 3 19,829 – – – – – – – 19,829 17,100 17,508
Single-year expenditure to be adjusted 2
Vote 1 - EXCECUTIVE AND COUNCIL – – – – – – – – – – –
Vote 2 - FINANCE AND ADMINISTRATION – – – – – – – – – – –
Vote 3 - COMMUNITY & SOCIAL SERVICES – – – – – – – – – – –
Vote 4 - SPORT AND RECREATION – – – – – – – – – – –
Vote 5 - PUBLIC SAFETY – – – – – – – – – – –
Vote 6 - ROAD TRANSPORT – – – – – – 1,000 1,000 1,000 – –
Vote 7 - ELECTRICITY DISTRIBUTION – – – – – – – – – – –
Vote 8 - WATER DISTRIBUTION – – – – – – – – – – –
Vote 9 - WASTE WATER – – – – – – – – – – –
Vote 10 - WASTE MANAGEMENT – – – – – – – – – – –
Vote 11 - HOUSING – – – – – – – – – – –
Vote 12 - PLANNING AND DEVELOPMENT – – – – – – – – – – –
Vote 13 - OTHER – – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –
Capital single-year expenditure sub-total – – – – – – 1,000 1,000 1,000 – –
Total Capital Expenditure - Vote 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508
Capital Expenditure - Functional
Governance and administration 1,283 – – – – – – – 1,283 2,335 2,139
Ex ecutiv e and council – – – – – – – – – – –
Finance and administration 1,283 – – – – – – – 1,283 2,335 2,139
Internal audit – – – – – – – – – – –
Community and public safety – – – – – – – – – – –
Community and social serv ices – – – – – – – – – – –
Sport and recreation – – – – – – – – – – –
Public safety – – – – – – – – – – –
Housing – – – – – – – – – – –
Health – – – – – – – – – – –
Economic and environmental services 14,546 – – – – – – – 14,546 14,765 15,369
Planning and dev elopment – – – – – – – – – – –
Road transport 14,546 – – – – – – – 14,546 14,765 15,369
Env ironmental protection – – – – – – – – – – –
Trading services 4,000 – – – – – 1,000 1,000 5,000 – –
Energy sources – – – – – – 1,0
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