MC B/3967/10/2012 4.B.2 [FS]: MONTHLY REPORT PERIOD … · midvaal local municipality agenda of the...

MIDVAAL LOCAL MUNICIPALITY

MINUTES OF THE 7th MAYORAL COMMITTEE MEETING OF 2012 HELD ON TUESDAY,

16 OCTOBER 2012 AT 08:00 AT THE ACTIVITY ROOM

22

MC B/3967/10/2012

4.B.2 [FS]: MONTHLY REPORT PERIOD ENDING 31 JULY 2012 9/1/2/2

COMPETENCY: MAYORAL COMMITTEE RESOLVED:

That the financial report for the period ending 31 July 2012, be noted.


AGENDA OF THE 7th MAYORAL COMMITTEE MEETING OF 2012 TO BE HELD ON TUESDAY, 16 OCTOBER 2012 AT 08:00 AT THE ACTIVITY ROOM

415

MC B/3967/10/2012

4.B.2 [FS]: MONTHLY REPORT PERIOD ENDING 31 JULY 2012 9/1/2/2

COMPETENCY: MAYORAL COMMITTEE PURPOSE

To submit the Monthly report of the Department of Finance for the period ending 31 July 2012.

RECOMMENDATION:

That the financial report for the period ending 31 July 2012, be noted.

REPORT

In terms of Section 71 of the MFMA the Accounting Officer must, within 10 working days after the end of each month, submit a statement to the Mayor on the implementation of the budget and the financial state of affairs of the municipality.

Attached is the listed documents as per above requirements for the month 31 July 2012.

Annexure “A” – In year report July 2012 – Schedule C Annexure “B” – Bank reconciliation Statement Annexure “C” – Actual borrowings Annexure “D” – Actual capital expenditure per vote Annexure “E” – Allocations received and expenditure on allocations Annexure “F” – Investments Annexure “G” – Actual Revenue per revenue source Annexure “H” – Monthly report on Expenditure in terms of section 66 of the

MFMA Annexure “I” – Outstanding Debtors report Annexure “J” – Outstanding Contributions Annexure “K” – Summary Comparative Return Annexure “L” – Supply Chain Management Annexure “M” – Water (purchases, sales and unaccounted) Annexure “N” – Electricity (purchases, sales and unaccounted) Annexure “O” – Actual expenditure per vote



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COMMENTS: MEETING OF THE MUNICIPAL MANAGER AND HEADS OF DEPARTMENT: 21 AUGUST 2012

Resolved to Recommend

That the item be referred to the Section 80 Finance & Corporate Services Portfolio Committee.

COMMENTS: SECTION 80 FINANCE & CORPORATE SERVICES PORTFOLIO COMMITTEE: 08 OCTOBER 2012

The recommendation is supported.



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[FS]: IN YEAR MONTHLY STATEMENT REPORT: 31 JULY 2012

5/1/1 2012/1 EXECUTIVE SUMMARY INTRODUCTION

This report is submitted in terms of Section 71(1) of the Local Government Municipal Finance Management Act No. 56 of 2003 (MFMA).

In terms of the Municipal Budget and Reporting Regulations, Schedule C, Section 3a (Mayors’ report) the Council’s budget is being implemented in accordance with the service delivery and budget implementation plan.

Budget Performance Analyses

Revenue

Description

2011/12 Budget Year 2012/13

Audited Outcome

Original Budget

Adjusted Budget

Monthly actual

Year TD actual

Year TD budget

YTD variance

YTD variance

Full Year Forecast

R thousands %

Revenue Standard

Governance and Administration – 130 083 – 24 442 24 442 10 840 13 602 125% 130 083

Executive and Council – 3 519 – 3 417 3 417 293 3 124 1065% 3 519

Budget and Treasury Office – 124 716 – 20 917 20 917 10 393 10 524 101% 124 716

Corporate Services – 1 848 – 108 108 154 (46) - 30% 1 848

Community and Public Safety – 36 772 – 250 250 3 064 (2 814) - 92% 36 772

Community and Social Services – 10 448 – 62 62 871 (809) - 93% 10 448

Sport and Recreation – 1 141 – – – 95 (95) - 100% 1 141

Public Safety – 19 223 – 189 189 1 602 (1 413) - 88% 19 223

Housing – – – – – – – – –

Health – 5 961 – – – 497 (497) - 100% 5 961

Economic and Environmental Services – 29 951 – 197 197 405 (209) - 51% 29 951

Planning and Development – 1 667 – 197 197 139 58 42% 1 667

Road Transport – 25 085 – – – – – 25 085

Environmental Protection – 3 199 – – – 267 (267) - 100% 3 199

Trading Services – 536 453 – 45 205 45 205 41 759 3 446 8% 536 453

Electricity – 274 845 – 23 147 23 147 22 904 243 1% 274 845

Water – 133 937 – 12 901 12 901 11 161 1 740 16% 133 937

Waste Water Management – 93 366 – 4 753 4 753 4 835 (82) - 2% 93 366

Waste Management – 34 305 – 4 403 4 403 2 859 1 545 54% 34 305

Other – – – – – – – – – Total Revenue Standard

–

733 259

–

70 094

70 094

56 069

14 025

25%

733 259

In total the actual revenue is R70 094 000 versus ytd. budget of R56 069 000 resulting in an excess revenue collection of R14 025 000 (25%). This is mostly due to the receipt of Grants



418

transferred in terms of DORA, during the month of July 2012. Furthermore an excess of income was received on Trading Services, amounting to R3 446 000. From a revenue source point of view, (Budget Statement Summary, Table C1) the following apply:

Description

2011/12 Budget Year 2012/13

Audited Outcome

Original Budget

Adjusted Budget

Monthly actual

YearTD actual YearTD budget

YTD variance

YTD variance

Full Year Forecast

Financial Performance

Property Rates – 135 847 – 12 847 12 847 11 321 1 526 13%

135 847

Service Charges – 341 145 – 28 027 28 027 28 429 (402) - 1%

341 145

Investment Revenue – 7 892 – 693 693 658 35 5% 7 892

Transfers recognised – operational – 68 352 – 22 515 22 515 5 696 16 819 295% 68 352

Other own revenue – 84 402 – 6 012 6 012 7 033 (1 022) - 15% 84 402

Total Revenue (excluding capital transfers and contributions)

–

637 637

–

70 094

70 094

53 136

16 957

32%

637 637

Property Rates (13%) Budget ytd = R11 321 000. Actual ytd = R12 847 000. Variance = R1 526 000 (13%). The increase is contributed to the implementation of the approved 2012/2013 tariffs. Service Charges (- 1%) Budget ytd = R28 429 000. Actual ytd = R28 027 000. Variance = (R402 000) (-1%). This negative result is possibly an indication that more consumers switched from conventional electricity usage (levied with service charges), to pre-paid electricity, resulting in the total services charges being less than anticipated at the stage the Budget 2012/2013 was drafted and approved. Investment Revenue (5%) Budget ytd = R658 000. Actual ytd = R693 000. Variance = R35 000 (5%). The increase in investment revenue is attributed to interest raised in respect of outstanding debtors and interest earned on investments. Revenue on investment interest earned during July 2012 was 5% higher than anticipated in the Budget 2012/2013, due to investments made earlier in July than normally done in previous financial years. Transfers recognised (295%) Budget ytd = R5 696 000. Actual ytd = R22 575 000. Variance = R16 819 000 (295%). The Budget ytd. is not in line with the pay-out dates sent through from Treasury. It is only the total for the financial year divided by 12. A big portion of our grants allocated for the year was received in July 2012 already.



419

Other own Revenue Sources (- 15%)

Budget ytd = R7 033 000. Actual ytd = R6 012 000. Variance = - R1 022 000 (- 15%). Revenue derived from this source consists of a number of various sources such as: traffic fines, rental of own facilities, etc. The under-achievement to budget on this Revenue is probably due to the contract for Traffic Fines Revenue that only became effective near the end of July 2012, as well as reconnection fees that were not levied, seeing that Midvaal Local Municipality does not do disconnections during the July school holidays.

Expenditure

Description

2011/12 Budget Year 2012/13

Audited Outcome

Original Budget

Adjusted Budget

Monthly actual

Year TD actual

Year TD budget

YTD variance

YTD variance

Full Year Forecast

R thousands %

Expenditure Standard

Governance and Administration –

97 818

–

4 258

4 258

8 151

(3 893)

- 48%

97 818

Executive and Council – 15 747 – 1 091 1 091 1 312 (221) - 17% 15 747

Budget and Treasury Office – 49 251 – 1 894 1 894 4 104 (2 210) - 54% 49 251

Corporate Services – 32 821 – 1 272 1 272 2 735 (1 463) - 53% 32 821

Community and Public Safety – 81 591 – 3 305 3 305 7 517 (4 212) - 56% 81 591

Community and Social Services – 11 585 – 535 535 965 (430) - 45% 11 585

Sport and Recreation – 18 019 – 579 579 2 219 (1 640) - 74% 18 019

Public Safety – 44 577 – 1 913 1 913 3 715 (1 801) - 48% 44 577

Housing – – – – – – – –

Health – 7 410 – 278 278 617 (340) - 55% 7 410

Economic and Environmental Services – 73 313 – 1 589 1 589 6 109 (4 520) - 74% 73 313

Planning and Development – 17 570 – 855 855 1 464 (609) - 42% 17 570

Road Transport – 52 808 – 596 596 4 401 (3 805) - 86% 52 808

Environmental Protection – 2 935 – 138 138 245 (106) - 43% 2 935

Trading Services – 426 823 – 3 729 3 729 35 569 (31 840) - 90% 426 823

Electricity – 251 275 – 1 017 1 017 20 940 (19 923) - 95% 251 275

Water – 103 518 – 778 778 8 626 (7 848) - 91% 103 518

Waste Water Management – 33 809 – 622 622 2 817 (2 195) - 78% 33 809

Waste Management – 38 222 – 1 312 1 312 3 185 (1 873) - 59% 38 222

Other – – – – – – – –

Total Expenditure Standard

– 679 545 – 12 881 12 881 57 346 (44 465) - 78% 679 545

Surplus/ (Deficit) for the year – 53 714 – 57 213 57 213 (1 278) (30 440) 2 383% 53 714

Actual expenditure (R12 881 000) in comparison with the anticipated expenditure as per budget (R57 346 000) reveals an under-expenditure of 78% as at 31 July 2012, or the amount of R44 465 000. Due to the fact that the bulk services accounts, i.e. Eskom, Emfuleni and Rand Water get paid a month after the services were rendered to Midvaal Local Municipality, but the accounts for the month of June are still paid in the same financial year, none of these accounts needed to be paid in July 2012. This makes up a huge portion of the under expenditure on the ytd. figures indicated above.



420

Description

2011/12 Budget Year 2012/13

Audited Outcome

Original Budget

Adjusted Budget

Monthly actual

YearTD actual YearTD budget

YTD variance

YTD variance

Full Year Forecast

Capital expenditure & funds sources

Capital expenditure – 194 730 – 41 41 16 228 (16 186) - 100% –

Capital transfers recognised – 47 311 – 41 41 3 943 (3 901) - 99% –

Public contributions & donations – 76 311 – – – 6 359 (6 359) - 100% –

Borrowing – 54 800 – – – 4 567 (4 567) - 100% –

Internally generated funds – 16 308 – - - 1 359 (1 359) - 100% –

Total sources of capital funds – 194 730 – 41 41 16 228 (16 186) - 100% –

Actual Capital expenses totals to R41 000 in comparison with a ytd. budget prediction of R16 228 000 (- 100%).

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 41 410 5 978 5 160 4 509 70 771 – – – 127 829

Creditors Age Analysis

Total Creditors 66 313 – – – – – – – 66 313

Outstanding debtors totals to an amount of R127 829 000 as at 31 July 2012 of which 55.37% is in excess of 120 days.

Debtors by revenue source and per customer category consist of the following:

Description

NT Code

Budget Year 2012/13

0-30 Days

31-60 Days

61-90 Days

91-120 Days

121-150 Days

151-180 Days

181 Dys-1 Yr

Over 1Yr Total

R thousands

Debtors Age Analysis By Revenue Source

Rates 1200 8 761 1 292 1 104 1 001 14 521 26 679

Electricity 1300 10 215 424 402 376 5 765 17 182

Water 1400 13 161 2 012 1 176 1 050 16 254 33 652

Sewerage / Sanitation 1500 2 670 508 478 435 8 679 12 771

Refuse Removal 1600 2 432 484 593 503 6 265 10 278

Housing (Rental Revenue) 1700 0 0

Other 1900 4 171 1 258 1 407 1 144 19 287 27 267

Total By Revenue Source 2000 41 410 5 978 5 160 4 509 70 771 – – 127 829

2011/12 - totals only 39 340 5 679 4 902 4 284 67 233 – – 121 437 Debtors Age Analysis By Customer Category

Government 2200 1 065 285 277 270 3 269 5 166

Business 2300 12 976 1 017 302 274 6 306 20 875

Households 2400 26 918 4 662 4 555 3 957 60 964 101 056

Other 2500 452 15 26 8 232 733 Total By Customer Category 2600 41 410 5 978 5 160 4 509 70 771 – – 127 829



421

Creditor analyses per customer type consist of the following:

Description

NT Code

Budget Year 2012/13

0-30 Days

31-60 Days

61-90 Days

91-120 Days

121-150 Days

151-180 Days

181 Dys-1 Yr

Over 1Yr Total

R thousands

Creditors Age Analysis By Customer Type

Bulk Electricity 0100 17 876 17 876

Bulk Water 0200 4 718 4 718

PAYE Deductions 0300 1 433 1 433

VAT (output less input) 0400 0 0 Pensions / Retirement deductions 0500 1 918 1 918

Loan Repayments 0600 0 0

Trade Creditors 0700 0 0

Auditor General 0800 93 93

Other 0900 40 274 40 274 Total By Customer Type

2600

66 313

–

–

–

–

–

–

–

66 313



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MC B/3967/10/2012 4.B.2 [FS]: MONTHLY REPORT PERIOD … · midvaal local municipality agenda of the...

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