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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


37 738

560

560

2 530

(4 691)

63

(4 754)

-7546%

560


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


4 242

5 200

5 200

837

3 473

2 600

873

33,6%

5 200


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%

–


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


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


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


2

37 063

560

560

2 530

(4 692)

222

(4 914)

-2211,7%

560


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)


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

–

–

–

–

–

–

–


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


64 661

–

–

–

–

–

–

–


296

–

–

–

–

–

–

–


437

–

–

–

–

–

–

–

Vote 6 - WATER

–

11 601

11 601

1 831

7 022

4 579

2 442

53%

11 601


605

–

–

–

–

–

–

–


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

–


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

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