In–Year Report of MunicipalitiesPrepared in terms of the Local Government Municipal FinanceManagement Act (56/2003) Municipal Budget and ReportingRegulations, Government Gazette 32141, 17 April 2009
Monthly BudgetStatement
31 August 2018
Table of ContentsPART 1: IN-YEAR REPORT
Section 1 – Purpose of ReportSection 2 - BackgroundSection 3 - In-year budget statement tables
PART 2: SUPPORTING DOCUMENTATION
AMAJUBA DM C SCHEDULE MONTHLY BUDGET STATEMENT General Information and Contact Information
Main Tables Monthly Budget Statements
Table C1-SUM Summary
Table C2-FinPer SC Financial Performance (standard classification)
Table C2C Financial Performance (standard classification)
Table C3-Fin Per V Financial Performance (revenue and expenditure by municipal vote)
Table C3C Financial Performance (revenue and expenditure by municipal vote) - A
Table C4-FinPer RE Financial Performance (revenue and expenditure)
Table C5-Capex Capital Expenditure (municipal vote, standard classification and funding)
Table C5C Capital Expenditure (municipal vote, standard classification and funding) - A
Table C6-FinPos Financial Position
Table C7-Cflow Cash Flow
Supporting Tables
Table SC1 Material variance explanations
Table SC2 Monthly Budget Statement - Performance indicators
Table SC3 Monthly Budget Statement - Aged debtors
Table SC4 Monthly Budget Statement - aged creditors
Table SC5 Monthly Budget Statement - Investment portfolio
Table SC6 Monthly Budget Statement - Transfers and grant receipts
Table SC7 Monthly Budget Statement - Transfers and grant expenditure
Table SC8 Monthly Budget Statement - Councillor and staff benefits
Table SC9 Monthly Budget Statement - Actual and revised targets for cash receipts
Table SC12 Monthly Budget Statement - Capital expenditure trend
Table SC13c Monthly Budget Statement - Expenditure on repairs and maintenance by asset class
TO: THE MAYOR THE MUNICIPAL MANAGER
FINANCIAL SERVICES DEPARTMENT:MUNICIPAL FINANCE MANAGEMENT ACT (MFMA): MONTHLY FINANCIAL REPORT FOR 31 AUGUST 2018 (MONTHLY BUDGET STATEMENT)
1. PURPOSE
To comply with section 71 of the MFMA, by the provision of a monthly budget statement to the Mayor containing certain financial particulars, as legislated.
2. BACKGROUNDSection 71 of the MFMA requires that:
The accounting officer of a municipality must by no later than 10 working days after the end of each month submit to the mayor of the municipality, and the relevant National and Provincial Treasury, a statement in the prescribed format on the state of the municipality's budget reflecting certain particulars for that month and for the financial year up to the end of that month.
For the reporting period ending 31 August 2018, the tenth working day reporting limit expired on 14 September 2018.
The Kwa-Zulu Natal Provincial Treasury monitors the municipality’s performance and compliance to reporting requirements. For this purpose, the required electronic reports have been lodged with the Provincial Treasury as well as the National Treasury.
ANNEXURES:
A. Statement of Financial PerformanceB. Capital expenditure reportC. Capital expenditure analysis and chartsD. Cash Flow StatementE. Outstanding Creditors ReportF. Key performance indicatorsG. Investment Portfolio
H. Debtors AnalysisI. Supply Chain ManagementJ. Grant and Subsidies ReceiptsK/L. Conditional Grants –Roll-Over Conditional Grants
3. 31 AUGUST 2018 REPORT This report is based upon financial information available at the time of preparation. The financial results for the period ended 31 August 2018 are summarised as follows:
Annexure A /J: Statement of Financial Performance (SFP)
The SFP shown in Annexure A and Annexure J is prepared on a similar basis to the prescribed budget format, detailing revenue by source type and expenditure by input type. The summary report indicates the following:
SUMMARY TOTAL OPERATING REVENUE
2018/ 2019 2018/ 2019 2018/ 2019 2018/ 2019
Original Budget MTN ACTUAL YTD ACTUAL
Balance Available
REVENUE PER SOURCEWater Sales 23 225 251 1 786 677 3 288 897 19 936 354 Sanitation Sales 5 240 436 336 832 652 161 4 588 275 Interest on Overdue Account 4 083 654 460 476 919 900 3 163 754 Interest on Debtors:Sewerage - - - - Sundry Income-Debtors; - - - CONNECTION FEE; - - - Interest Earned-Ext Invest 4 551 860 471 889 490 799 4 061 061 Equitable Share-FBS Portion 148 705 000 61 960 000 86 745 000 Finance Management Grant; 1 570 000 101 488 101 488 1 468 512 MSIG Grant; - - - Infrastructure-Intergrated Development - Disaster Management Grant; - ROAD ASSET MANAGEMENT SYSTEM - - - - Operating Grants -PPE-MIG; - 10 383 931 10 383 931 -10 383 931 EPWP -Publicworks Grant; 1 620 000 44 440 44 440 1 575 560 Operating Grants-PPE -MWIG; - Implementation of IGR Framework and Best Practices - - - - Tele/Cellphone Cost Recovered 5 000 - - 5 000 Rental Income - - - - Tender Deposits 100 000 - - 100 000 Sundry Income 2 000 715 1 443 557 Rental facilities-Hall Hire 250 000 1 300 3 100 246 900 Skills Development Grant ; 180 000 - - 180 000 Shared Services Grant -DPSS 400 000 - - 400 000 CAPACITATING NEW COUNCILLORS - Reclaimed Vat from Conditional grants and Operating Expenditure- - - - Atmospheric Emmission LicencE - - - - Enviromental Management - - - - Penalty Late completion of Projects - - - - Donations - - - - Gain on Disposal of Asset -
TOTAL DIRECT OPERATING INCOME 189 933 201 13 587 748 77 846 159 112 087 042
Description
CURRENT YEAR
1 Revenue Management
For the period under review, revenue is recorded at R77 846 159 which is R46 190 625 more than the expected revenue of R 31 655 534.
The revenue of R77 846 159 included the following:
Billed Revenue including interest charged on outstanding balances – R4 860 958.
Interest earned on short-term investments R490 799; Grants and Subsidy – R72 489 859, Other Revenue –R4 543
Billed Revenue6%
Interest Earned - Ext Invest
1%
Grants and Subsidy
93%
Other Revenue0%
REVENUE BY SOURCE
SUMMARY OF TOTAL OPERATING EXPENDITURE
2018/ 2019 2018/ 2019 2018/ 2019 2018/ 2019
Original Budget MTN ACTUAL YTD ACTUAL
Balance Available
EXPENDITURE PER CATERGORYSalaries , Wages & Allowances 86 824 590 7 105 341 13 598 465 73 226 125 Renumeration of Councillors 5 685 460 385 915 798 141 4 887 319 Depreciation 33 178 215 2 764 851 5 529 702 27 648 513 Repairs & Maintenance 11 287 533 356 239 395 667 10 891 866 Bulk Water Purchases 17 263 000 1 409 396 1 409 396 15 853 604 Contracted Services 17 013 968 1 658 540 1 697 470 15 316 498 Operating Grants Expenditure - General Costs-Other 36 829 920 1 407 601 4 281 282 32 548 638
- TOTAL DIRECT OPERATING EXPENDITURE 208 082 686 15 087 883 27 710 123 180 372 563
Contributions to capital 348 000 - - 348 000 Contributions to funds 14 265 065 3 159 003 3 509 390 10 755 675 Interest -External Loans 764 000 - 415 565 348 435
- TOTAL OPERATING EXPENDITURE 223 459 751 18 246 886 31 635 078 191 824 673
Capital Transfers 126 858 000 10 383 930 10 383 930 116 474 070 Own Revenue-Capital 348 000 - 9 884 338 116 Loan Funding - Capital Expenditure (127 206 000) (10 383 930) (10 393 814) (116 812 186)
- Surplus/ (Deficit) (33 526 550) (4 659 138) 46 211 081 (79 737 631)
Description
CURRENT YEAR
2 Expenditure Management
Salaries
An amount of R 86 824 590 has been budgeted for. An amount of R 13 598 465 been recognised to date. Salaries are the major cost drivers.
Contracted Services
An amount of R 17 013 968 has been budgeted for. An amount of R1 697 470 has been recognised to date. Security Services and Water Tanker Services are the major contributors on contracted services.
The Breakdown of General Cost – Other:
MTH Actual YTD Actual Entertainment 8 871,00R 8 871,00R
Subsistence and Travelling 73 985,00R 177 180,00R
Conference and Seminars -R 2 000,00R
Annual Report -R 458,00R
Interest Paid - Creditors 5 735,00R 27 954,00R
Audit Committee 66 503,00R 66 503,00R
Books and Publication 22 722,00R 22 722,00R
Professional Fees 79 697,00R 1 136 192,00R
Printing and Stationary 764,00R 1 209,00R
Postage - Meter Reading 95 061,00R 136 947,00R
Audit Fees - External 416,00R 416,00R
Software License -R 24 545,00R
Bank Charges 8 482,00R 16 960,00R
Insurance -R 894 035,00R
FMG Expenditure 4 287,00R 15 787,00R
Advertisement 19 928,00R 19 928,00R
Rental Office Equipment 27 792,00R 58 107,00R
Telephone 167 432,00R 193 171,00R
Membership SALGA 522,00R 3 207,00R
Fuel & Oil 187 301,00R 378 136,00R
Training 2 000,00R 2 000,00R
Skills Development 65 197,00R 124 692,00R
Electricity 376 531,00R 648 574,00R
Pest Control 38 030,00R 78 375,00R
Sport and Recreation -R 1 708,00R
Art and Culture 17 090,00R 17 090,00R
EPWP Expenditure 22 220,00R 22 220,00R
Budget and IDP Roadshow -R 378,00R
Growth and Development 102 864,00R 102 864,00R
Project Initiation 9 500,00R 9 500,00R
Collection Fees 3 071,00R 3 071,00R
Workmans Compensation -R 73 168,00R
IGR 1 600,00R 1 600,00R
Job Evaluation -R 11 714,00R
Total General Cost - Other 1 407 601,00R 4 281 282,00R
Annexure B/L : Capital expenditure report
The Capital expenditure report shown in Annexure B and Annexure L has been prepared on the basis of the format required to be lodged electronically with National Treasury, and is categorised into major output ‘types’. The summary report indicates the following:
Summary Statement of Capital ExpenditureDescription August YTD
Budget R’000
August YTD Actual R’000
Variance Fav/(Unfav)
R’000
Total Capital Expenditure 21 201 10 394 10 807Total Capital Financing (21 201) (10 394) (10 807)
Annexure C is an analysis of actual capital expenditure compared to the budget targets, on a monthly and year-to-date basis. Annexure C indicates that total expenditure for the period ending 31 August 2018.
2017/18
Audited Outcome
Original Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
% spend of Original Budget
R thousands %Monthly expenditure performance trend
July 7 596 10 601 10 10 10 601 10 591 99,9% 0%
August 7 596 10 601 10 384 10 394 21 201 10 807 51,0% 8%
September 7 596 10 601 – 31 802 –
October 7 596 10 601 – 42 402 –
Nov ember 7 596 10 601 – 53 003 –
December 7 596 10 601 – 63 603 –
January 7 596 10 601 – 74 204 –
February 7 596 10 601 – 84 804 –
March 7 596 10 601 – 95 405 –
April 7 596 10 601 – 106 005 –
May 7 596 10 601 – 116 606 –
June 7 596 10 601 – 127 206 –
Total Capital expenditure 91 150 127 206 – 10 394
Month
DC25 Amajuba - Supporting Table SC12 Monthly Budget Statement - capital expenditure trend - M02 AugustBudget Year 2018/19
Annexure C also includes charts that illustrate capital expenditure trends
Annexure D : Cash Flow Statement (CFS)
The CFS report for 31 August 2018 indicates a closing balance (cash and cash equivalents) of R85 604 196.01 which comprise of the following:
Bank balance and cash = R 1 149 101.73 Investment Balance= R 84 452 094.28 Petty Cash= R 3 000.00 Cash Available = R 85 604 196.01
As at the end of 31 July 2018 the Municipality has R85 604 196.01 cash available.
The Cash Coverage Ratio is 2 month and 4 days against the norm is 1 to 3 months.
Cash Coverage Ratio
((Cash and Cash Equivalents - Unspent Conditional Grants - Overdraft) + Short Term Investment) / Monthly Fixed Operational Expenditure excluding (Depreciation, Amortisation, Provision for Bad Debts, Impairment and Loss on Disposal of Assets)
Statement of Financial Position, Statement of Financial Performance, Notes to the AFS, Budget, In year Reports and AR
1 - 3 Months
2 Month and 4 Days
Cash and cash equivalents 1 149 101.73Unspent Conditional Grants 49 733 273.00
Overdraft - Short Term Investments 84 452 094.28
Total Monthly Operational Expenditure 14 668 039
Please note that this Cost Coverage Ratio is based on MFMA Circular No 71, who formulated this model based on the fact that creditors are paid within 30 days.
The below Cash Coverage Ratio does take into account unspent conditional grants and other outstanding creditors.
Cash Coverage Ratio
((Cash and Cash Equivalents - Unspent Conditional Grants - Overdraft) + Short Term Investment) / Monthly Fixed Operational Expenditure excluding (Depreciation, Amortisation, Provision for Bad Debts, Impairment and Loss on Disposal of Assets)
Statement of Financial Position, Statement of Financial Performance, Notes to the AFS, Budget, In year Reports and AR
1 - 3 Months
-0.33 Days
Cash and cash equivalents 1 149 101.73Unspent Conditional Grants 49 733 273.00
Other Outstanding Creditors
40 748 127.39
OverdraftShort Term Investments 84 452 094.28Total Monthly Operational Expenditure
14 668 039
The Cash Coverage Ratio is -0.33 Days s against the norm is 1 to 3 months, indicating that the municipality is not financial viable and it will not continue to exist if it does not receive revenue for even one month.
Annexure E : Outstanding Creditors report
The Creditors report has been prepared on the basis of the format required to be lodged electronically with National Treasury. This format provides an extended aged analysis, as well as an aged analysis by creditor type.
Annexure F : Key performance indicators
The table reflects key ratios which are monitored by National Treasury. These ratios will also assist us in monitoring and managing our performance as a municipality.
Annexure G : Investment Portfolio
The table and chart indicate the status of the investment portfolio and detail of instruments of where invested, which amounts to R84 452 094.28 as at 31 August 2018.
Annexure H : Supply Chain Management
The SCM Policy as adopted by Council, in line with the promulgated SCM Regulations, requires the Accounting Officer to report to Council on the implementation of the policy. This report details the procurement activities for the month
Annexure L : Disclosure on Councillors Allowances and Staff Salaries & Allowances
Monitor and ensure that the municipal entity reports to the council on all expenditure incurred by that municipal entity on directors and staff remuneration matters. In a manner that discloses such expenditure per type of expenditure namely:1. Salaries and wages;2. contributions for pensions and medical aid;3. Travel, motor car, accommodation. subsistence and other allowances:4. housing benefits and allowances;5. overtime payments;6. loans and advances; and7. any other type of benefit or allowance related to directors and
4. KEY PRELIMINARY RFORMANCE (FINANCIAL) INDICATORS
The favourable result relating to the various source groups totalling revenue is due to the controlled spending on operational expenditure. Spending on operational expenses is closely monitored and controlled.
5. FINANCIAL IMPLICATIONS
This report indicates various financial risks which require monitoring:
Cash flow problems faced by the municipality; Achievement of the operating revenue budget; Collection of the revenue raised / billed; and Achievement of the capital expenditure budget. Challenges with the EMS/mSCOA System not running live as at the 1st July 2017
As at the end of 31 August 2018 the operating revenue and expenditure ‘actuals’ represented approximately 41% and 14.20% respectively of the annual budget.
6. ENTERPRISE MANAGEMENT SYSTEM (EMS)/mSCOA CHALLENGES.
The following expenditure challenges are highlighted Challenges with the EMS/mSCOA System not running live as at the 1 July 2017; Municipality is dependent on the service provider(Sebata) for generation of data
strings for monthly reporting submission to National Treasury; Municipality is currently still using a non-compliant mSCOA system for capturing
of transactions and generating reports; Monthly Returns submission to National Treasury are manually done by officials
due to the non-functionality of the mSCOA Sebata EMS System.
7. LEGAL IMPLICATIONS
The accounting officer of a municipality must by no later than 10 working days after the end of each month submit to the mayor of the municipality, and the relevant National and Provincial treasury, a statement in the prescribed format on the state of the municipality's budget reflecting certain particulars for that month and for the financial year up to the end of that month.
8. STAFF IMPLICATIONS
Not applicable.
9. CONCLUSION
This report is in compliance of Section 71 of the MFMA, by providing a statement to the Mayor containing certain financial particulars, as legislated.
RECOMMENDED
That, in compliance with Section 71 of the MFMA:
(1) The Accounting Officer submits to the Mayor this statement reflecting certain particulars for the month ending 31 August 2018;and
(2) In order to comply with Section 71(4) of the MFMA, the Accounting Officer ensure that this statement be submitted to National Treasury and the Provincial Treasury, in both a signed document format and in electronic format.
Annexure A
2017/18Audited
OutcomeOriginal Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
Full Year Forecast
R thousands %Revenue By Source
Property rates – Serv ice charges - electricity rev enue – – – – – #REF! #REF!Serv ice charges - w ater rev enue 23 494 23 225 – 1 787 3 289 3 871 (582) -15% 23 225 Serv ice charges - sanitation rev enue 5 479 5 240 – 337 652 873 (221) -25% 5 240 Serv ice charges - refuse rev enue – – Serv ice charges - other – – – – – – – – Rental of facilities and equipment 283 250 – – – 42 (42) -100% 250 Interest earned - ex ternal inv estments 4 709 4 552 – 472 491 759 (268) -35% 4 552 Interest earned - outstanding debtors 4 166 4 084 – 460 920 681 239 35% 4 084 Div idends receiv ed – – Fines, penalties and forfeits 1 677 – – Licences and permits – – Agency serv ices – – Transfers and subsidies 226 903 152 295 – 10 530 72 490 25 383 47 107 186% 152 295 Other rev enue 274 287 – 2 5 48 (43) -91% 287 Gains on disposal of PPE – –
Total Revenue (excluding capital transfers and contributions)
266 984 189 933 – 13 588 77 846 31 656 46 191 146% 189 933
Expenditure By TypeEmploy ee related costs 98 232 86 825 7 105 13 598 14 471 (872) -6% 86 825
Remuneration of councillors 5 134 5 685 386 798 948 (149) -16% 5 685
Debt impairment 11 698 13 000 3 159 3 159 2 167 992 46% 13 000
Depreciation & asset impairment 22 379 33 178 2 765 5 530 5 530 (0) 0% 33 178
Finance charges 993 764 – 416 127 288 226% 764
Bulk purchases 18 052 17 263 1 409 1 409 2 877 (1 468) -51% 17 263
Other materials – –
Contracted serv ices 21 485 17 014 1 659 1 697 2 836 (1 138) -40% 17 014
Transfers and subsidies – – – –
Other ex penditure 57 741 49 731 1 764 5 027 8 288 (3 261) -39% 49 731
Loss on disposal of PPE – – – –
Total Expenditure 235 714 223 460 – 18 247 31 635 37 243 (5 608) -15% 223 460
Surplus/(Deficit) 31 270 (33 527) – (4 659) 46 211 (5 588) 51 799 (0) (33 527) Transfers and subsidies - capital (monetary allocations)
(National / Prov incial and District) – – – Transfers and subsidies - capital (monetary allocations)
(National / Prov incial Departmental Agencies,
Households, Non-profit Institutions, Priv ate Enterprises,
Public Corporatons, Higher Educational Institutions) – – –
Transfers and subsidies - capital (in-kind - all) – – –
Surplus/(Deficit) after capital transfers & contributions
31 270 (33 527) – (4 659) 46 211 (5 588) (33 527)
Tax ation –
Surplus/(Deficit) after taxation 31 270 (33 527) – (4 659) 46 211 (5 588) (33 527) Attributable to minorities
Surplus/(Deficit) attributable to municipality 31 270 (33 527) – (4 659) 46 211 (5 588) (33 527) Share of surplus/ (deficit) of associate
Surplus/ (Deficit) for the year 31 270 (33 527) – (4 659) 46 211 (5 588) (33 527)
Description RefBudget Year 2018/19
Annexure B
C25 Amajuba - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, functional classification and funding) – M02 August
2016/17 Budget Year 2017/18Audited
OutcomeOriginal Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
Full Year Forecast
R thousands 1 %
Vote Description Ref
Capital Expenditure - Functional Classification
Governance and administration – 348 – – 10 58 (48) -83% 348
Executive and council – – –
Finance and administration 348 – 10 58 (48) -83% 348
Internal audit – –
Community and public safety – – – – – – – – Community and social services –
Sport and recreation –
Public safety – –
Housing –
Health –
Economic and environmental services – – – – – – – – Planning and development –
Road transport –
Environmental protection –
Trading services – 126 858 – 10 384 10 384 21 143 (10 759) -51% 126 858
Energy sources –
Water management 126 858 10 384 10 384 21 143 (10 759) -51% 126 858
Waste water management –
Waste management –
Other –
Total Capital Expenditure - Functional Classification 3 – 127 206 – 10 384 10 394 21 201 (10 807) -51% 127 206
Funded by:
National Government 126 858 10 384 10 384 21 143 (10 759) -51% 126 858
Provincial Government –
District Municipality –
Other transfers and grants –
Transfers recognised - capital – 126 858 – 10 384 10 384 21 143 (10 759) -51% 126 858
Public contributions & donations 5 –
Borrowing 6 –
Internally generated funds 348 – 10 58 (48) -83% 348
Total Capital Funding – 127 206 – 10 384 10 394 21 201 (10 807) -51% 127 206
Annexure CCapital expenditure
2017/18
Audited Outcome
Original Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
% spend of Original Budget
R thousands %Monthly expenditure performance trend
July 7 596 10 601 10 10 10 601 10 591 99,9% 0%
August 7 596 10 601 10 384 10 394 21 201 10 807 51,0% 8%
September 7 596 10 601 – 31 802 –
October 7 596 10 601 – 42 402 –
Nov ember 7 596 10 601 – 53 003 –
December 7 596 10 601 – 63 603 –
January 7 596 10 601 – 74 204 –
February 7 596 10 601 – 84 804 –
March 7 596 10 601 – 95 405 –
April 7 596 10 601 – 106 005 –
May 7 596 10 601 – 116 606 –
June 7 596 10 601 – 127 206 –
Total Capital expenditure 91 150 127 206 – 10 394
Month
DC25 Amajuba - Supporting Table SC12 Monthly Budget Statement - capital expenditure trend - M02 AugustBudget Year 2018/19
Annexure D2017/18 Budget Year 2018/19Audited
OutcomeOriginal Budget
Adjusted Budget
Monthly actual
YearTD actual
YearTD budget
YTD variance
YTD variance
Full Year Forecast
R thousands 1 %CASH FLOW FROM OPERATING ACTIVITIESReceipts
Property rates – – –
Serv ice charges 15 079 17 079 1 502 4 163 17 079 (12 916) -76% 17 079
Other rev enue 11 458 537 6 1 436 537 899 167% 537
Gov ernment - operating 134 948 152 295 1 975 63 935 152 295 (88 360) -58% 152 295
Gov ernment - capital 91 041 126 858 1 544 23 544 126 858 (103 314) -81% 126 858
Interest 6 524 7 002 232 320 7 002 (6 682) -95% 7 002
Div idends – – – – –
PaymentsSuppliers and employ ees (182 216) (222 696) (51 162) (94 623) (222 696) (128 073) 58% (222 696)
Finance charges (764) (764) – (764) (764) 0 0% (764)
Transfers and Grants – – – –
NET CASH FROM/(USED) OPERATING ACTIVITIES 76 070 80 312 – (45 902) (1 988) 80 312 82 300 102% 80 312
CASH FLOWS FROM INVESTING ACTIVITIESReceipts
Proceeds on disposal of PPE –
Decrease (Increase) in non-current debtors –
Decrease (increase) other non-current receiv ables –
Decrease (increase) in non-current inv estments –
PaymentsCapital assets (91 150) (127 206) (10 384) (10 394) (127 206) (116 812) 92% (127 206)
NET CASH FROM/(USED) INVESTING ACTIVITIES (91 150) (127 206) – (10 384) (10 394) (127 206) (116 812) 92% (127 206)
CASH FLOWS FROM FINANCING ACTIVITIESReceipts
Short term loans –
Borrow ing long term/refinancing –
Increase (decrease) in consumer deposits –
PaymentsRepay ment of borrow ing –
NET CASH FROM/(USED) FINANCING ACTIVITIES – – – – – – – –
NET INCREASE/ (DECREASE) IN CASH HELD (15 080) (46 894) – (56 286) (12 382) (46 894) (46 894) Cash/cash equiv alents at beginning: 17 990 21 009 97 986 21 009 97 986
Cash/cash equiv alents at month/year end: 2 909 (25 886) – 85 604 (25 886) 51 092
Description Ref
DC25 Amajuba - Table C7 Monthly Budget Statement - Cash Flow - M02 August
Annexure E
Budget Year 2018/19
R thousandsCreditors Age Analysis By Customer Type
Bulk Electricity 0100 – Bulk Water 0200 – – – – – – – 18 995 18 995 PAYE deductions 0300 – 2 332 2 332 VAT (output less input) 0400 – Pensions / Retirement deductions 0500 – Loan repay ments 0600 – Trade Creditors 0700 514 7 035 1 536 2 341 455 5 105 – 2 435 19 421 Auditor General 0800 – – Other 0900 –
Total By Customer Type 1000 514 9 367 1 536 2 341 455 5 105 – 21 431 40 748 –
Prior y ear
totals for chart
(same period)
DC25 Amajuba - Supporting Table SC4 Monthly Budget Statement - aged creditors - M02 August
181 Days -1 Year
Over 1Year
Total61 - 90 Days
91 - 120 Days
121 - 150 Days
151 - 180 Days
Description NT Code
0 - 30 Days
31 - 60 Days
Top Ten Creditors 1 620 805,23R 2 450 002,00R 1 451 688,56R 3 139 373,00R 4 578 225,55R 1 439 377,58R 2 687 468,09R 1 295 647,50R
18 995 160,31R 690 952,11R NATAL JOINT MUNICIPAL PROV FUND
UTHUKELA WATER (PTY) LTD- CURRENTM-CHARLIE TRADING ENTERPRISESOUTH AFRICAN REVENUE SERVICESNDIMBAS TRANSPORTATIONSENZUMUSA PROJECTSROYAL HASKONING DHV (PTY) LTDEMADLANGENI LOCAL MUNICIPALITYELDOCRETE (PTY) LTDUTHUKELA WATER (PTY) LTD- LONG TERM
Annexure F
Investments by maturityName of institution & investment ID
Period of Investment
R thousands Yrs/MonthsMunicipalityABSA BANK Months FIXED – –
FIRST NATIONAL BANK Months FIXED – –
INVESTEC Months FIXED 19 767 21 819
STANSARD BANK Months FIXED 25 829 62 633
NEDBANK –
Municipality sub-total – 45 596 – 84 452
DC25 Amajuba - Supporting Table SC5 Monthly Budget Statement - investment portfolio - M02 August
Ref
Type of Investment
Expiry date of
investment
Market value at end
of the month
Accrued interest for the month
Yield for the month 1
(%)
Market value at
beginning of the month
Change in market value
Annexure G2017/18 Budget Year 2018/19Audited
OutcomeOriginal Budget
Adjusted Budget
YearTD actual
Full Year Forecast
Borrowing Management
Capital Charges to Operating Expenditure Interest & principal paid/Operating Ex penditure 0,4% 15,2% 0,0% 1,3% 2,9%
Borrow ed funding of 'ow n' capital ex penditure Borrow ings/Capital ex penditure ex cl. transfers and
grants
0,0% 0,0% 0,0% 0,0% 0,0%
Safety of CapitalDebt to Equity Loans, Accounts Pay able, Ov erdraft & Tax
Prov ision/ Funds & Reserv es
18,9% 0,0% 0,0% 6,3% 18,9%
Gearing Long Term Borrow ing/ Funds & Reserv es 0,0% 0,0% 0,0% 0,0% 0,0%
LiquidityCurrent Ratio Current assets/current liabilities 1 71,0% 0,0% 0,0% 236,5% 71,0%
Liquidity Ratio Monetary Assets/Current Liabilities 47,2% 0,0% 0,0% 126,1% 47,2%
Revenue ManagementAnnual Debtors Collection Rate
(Pay ment Lev el %)
Last 12 Mths Receipts/ Last 12 Mths Billing
Outstanding Debtors to Rev enue Total Outstanding Debtors to Annual Rev enue 10,0% 28,2% 0,0% 94,8% 14,1%
Longstanding Debtors Recov ered Debtors > 12 Mths Recov ered/Total Debtors >
12 Months Old
0,0% 0,0% 0,0% 0,0% 0,0%
Creditors ManagementCreditors Sy stem Efficiency % of Creditors Paid Within Terms (w ithin MFMA s
65(e))
Funding of ProvisionsPercentage Of Prov isions Not Funded Unfunded Prov isions/Total Prov isions
Other IndicatorsElectricity Distribution Losses % Volume (units purchased and generated less
units sold)/units purchased and generated
2
Water Distribution Losses % Volume (units purchased and ow n source less
units sold)/Total units purchased and ow n source
2
Employ ee costs Employ ee costs/Total Rev enue - capital rev enue 36,8% 45,7% 0,0% 17,5% 45,7%
Repairs & Maintenance R&M/Total Rev enue - capital rev enue 0,0% 0,0% 0,0% 0,0% 0,0%
Interest & Depreciation I&D/Total Rev enue - capital rev enue 8,8% 17,9% 0,0% 0,5% 3,4%
IDP regulation financial viability indicatorsi. Debt cov erage (Total Operating Rev enue - Operating Grants)/Debt
serv ice pay ments due w ithin financial y ear)
ii. O/S Serv ice Debtors to Rev enue Total outstanding serv ice debtors/annual rev enue
receiv ed for serv ices
iii. Cost cov erage (Av ailable cash + Inv estments)/monthly fix ed
operational ex penditure
Description of financial indicator Basis of calculation Ref
DC25 Amajuba - Supporting Table SC2 Monthly Budget Statement - performance indicators - M02 August
Annexure H
Description
R thousands
NT Code
0-30 Days 31-60 Days 61-90 Days 91-120 Days 121-150 Dys 151-180 Dys 181 Dys-1 Yr Over 1Yr TotalTotal over 90 days
Actual Bad Debts Written Off against Debtors
Impairment - Bad Debts i.t.o Council Policy
Debtors Age Analysis By Income SourceTrade and Other Receiv ables from Ex change Transactions - Water 1200 2 479 1 177 2 499 2 018 1 492 1 297 6 960 27 335 45 257 39 103
Trade and Other Receiv ables from Ex change Transactions - Electricity 1300 – – – – – – – – – –
Receiv ables from Non-ex change Transactions - Property Rates 1400 – – – – – – – – – –
Receiv ables from Ex change Transactions - Waste Water Management 1500 536 433 793 650 540 515 2 560 9 056 15 082 13 321
Receiv ables from Ex change Transactions - Waste Management 1600 – – – – – – – – – –
Receiv ables from Ex change Transactions - Property Rental Debtors 1700 – – – – – – – – – –
Interest on Arrear Debtor Accounts 1810 – – – – – – – – – –
Recov erable unauthorised, irregular, fruitless and w asteful ex penditure 1820 – – – – – – – – – –
Other 1900 17 17 17 17 17 17 105 1 830 2 038 1 987
Total By Income Source 2000 3 032 1 626 3 309 2 686 2 049 1 829 9 626 38 221 62 377 54 411 – – 2017/18 - totals only – – Debtors Age Analysis By Customer Group
Organs of State 2200 1 302 154 251 160 174 94 487 1 874 4 496 2 789
Commercial 2300 135 99 227 307 144 69 316 1 290 2 587 2 126
Households 2400 1 595 1 373 2 831 2 218 1 730 1 666 8 822 35 044 55 280 49 481
Other 2500 0 0 0 0 0 0 1 13 14 14
Total By Customer Group 2600 3 032 1 626 3 309 2 686 2 049 1 829 9 626 38 221 62 377 54 411 – –
DC25 Amajuba - Supporting Table SC3 Monthly Budget Statement - aged debtors - M02 AugustBudget Year 2018/19
2017/18 Budget Year 2018/19Audited
OutcomeOriginal 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 5 174 5 685 386 798 948 (149) -16% 5 685
Pension and UIF Contributions –
Medical Aid Contributions –
Motor Vehicle Allow ance – Cellphone Allow ance – –
Housing Allow ances –
Other benefits and allow ances –
Sub Total - Councillors 5 174 5 685 – 386 798 948 (149) -16% 5 685 % increase 4 9,9% 9,9%
Senior Managers of the Municipality 3
Basic Salaries and Wages 7 076 5 146 225 451 858 (407) -47% 5 146
Pension and UIF Contributions – – – – – Medical Aid Contributions – – – – –
Ov ertime – – – – –
Performance Bonus 991 – – – –
Motor Vehicle Allow ance – – – – –
Cellphone Allow ance 108 108 5 9 18 (9) -50% 108 Housing Allow ances – – –
Other benefits and allow ances – – –
Pay ments in lieu of leav e – – –
Long serv ice aw ards – – –
Post-retirement benefit obligations 2 – – – Sub Total - Senior Managers of Municipality 8 175 5 254 – 230 460 876 (416) -47% 5 254
% increase 4 -35,7% -35,7%
Other Municipal StaffBasic Salaries and Wages 47 639 51 936 4 817 9 023 4 328 #REF! #REF! 51 936
Pension and UIF Contributions 6 618 7 154 551 1 102 596 #REF! #REF! 7 154
Medical Aid Contributions 3 191 3 890 311 622 324 #REF! #REF! 3 890
Ov ertime 4 114 6 408 458 917 534 #REF! #REF! 6 408
Performance Bonus 3 963 4 309 – – 359 #REF! #REF! 4 309 Motor Vehicle Allow ance 5 085 5 184 406 812 432 #REF! #REF! 5 184
Cellphone Allow ance 585 551 46 #REF! #REF! 551
Housing Allow ances 490 582 29 59 48 #REF! #REF! 582
Other benefits and allow ances 2 439 1 556 302 604 130 #REF! #REF! 1 556 Pay ments in lieu of leav e – – – #REF! #REF! –
Long serv ice aw ards –
Post-retirement benefit obligations 2 –
Sub Total - Other Municipal Staff 74 125 81 571 – 6 875 13 138 6 798 6 341 93% 81 571 % increase 4 10,0% 10,0%
Total Parent Municipality 87 473 92 510 – 7 491 14 396 8 621 5 776 67% 92 510
Summary of Employee and Councillor remuneration Ref
DC25 Amajuba - Supporting Table SC8 Monthly Budget Statement - councillor and staff benefits - M02 August
Annexure LInvestment Portfolio 31 August 2018
AMAJ UBA DISTRICT MUNICIPALITYINVESTMENT REGISTER
SUMMARY INVESTMENT REGISTER( Regulation 3(1)(g) )
INSTITUTION Bank Acc No BALANCE
STD-Equitable share 068448309-015 1 516,38 INVESTEC-Equitable share 1100-501686510 - STD-Equitable share 068448309-010 24 627 589,66 STD-Equitable share 068448309-017 2 281 839,15 STD-water operating Subsidy grant068448309-002 69 215,56 INVESTEC-WSIG 1100-501-686-500 467 375,27 INVESTEC(WSIG)- 1100-501-686-501 629 259,05 STD-WSIG2 068448309-009 62 272,81 STD-WSIG2 068448309-013 20 678 514,57 INVESTEC-WSIG 1100-501686513 18 299 779,90 INVESTEC 1100-501-686-507 35 155,18 INVESTEC 1100-501686512 0,00 STD 068448309-008 6 961 724,09 STD 068448309-011 468 455,25 STD-FMG 068448309-007 1 572 921,97 STD 068448309-014 1 175 817,24 INVESTEC-Rural Road 1100-501-686-503 1 631 814,94 STD 068448309-012 51 382,46 INVESTEC 1100-501686511 272 866,25 INVESTEC-EPWP 1100-501686508 405 845,51 STD-Disaster Centre Management068448309-003 2 473 170,81 STD-Environment Grant 068448309-004 408 348,53 STD-Human Settlement 068448309-005 1 021,59 STD-Internal Operation 068448309-006 363 838,42 INVESTEC(MIG) 1100-501-686-502 - INVESTEC MIG 1100-501-686-505 71 081,95 INVESTEC-MIG 1100-501-686-506 5 797,44 STD-MIG 068448309-016 1 129 443,27 STD-Equitable share 068448309-010 - INVESTEC 1100-501686515 - STD-Growth Summit 068448309-018 306 047,03
TOTAL 84 452 094,28
END OF REPORT
