DEPARTMENT FINANCE
1.
JUNE 2012
FINANCIAL POSITION
FRANCES BAARD DISTRICT MUNICIPALITY
STATEMENT OF FINANCIAL POSITION
30 June 2012
R
Jun-11
R
NET ASSETS AND LIABILITIES
Net Assets
Capital Replacement Reserve
Revaluation Reserve
Accumulated Surplus / (Deficit)
91,078,360
5,522,089
21,243,633
64,312,638
86,187,966
4,411,867
5,828,305
75,947,793
Non-current Liabilities
Long-Term Liabilities
Employee Benefits
34,011,930
11,485,678
22,526,252
32,913,606
12,814,927
20,098,679
Current Liabilities
Current Employee Benefits
Trade Payables
Unspent Conditional Grants and Receipts
Operating Lease Liability
Current Portion of Long-term Liabilities
14,812,757
6,024,487
5,276,727
2,178,633
1,332,911
13,516,295
5,228,584
2,267,558
4,727,383
1,292,770
139,903,048
132,617,866.71
Non-current Assets
Property, Plant and Equipment
Non-Current Assets Held for Sale
Investment Property
Intangible Assets
Financial Assets
Long-term Receivables
47,576,930
46,552,219
75,155
949,555
-
52,185,456
51,574,304
611,151
-
Current Assets
Taxes
Trade Receivables from Exchange Transactions
Trade Receivables from Non-Exchange Transactions
Operating Lease Asset
Inventory
Current Portion of Long-term Receivables
Discontinued Operations
Current Financial Assets
Term Deposits
Cash and Cash Equivalents
92,326,118
1,173,202
1,680,585
8,241
349,926
2,900,000
86,214,164
80,432,411
1,489,596
2,184,489
9,383
370,274
344,298
6,218
2,900,000
73,128,152
139,903,048
132,617,867
TOTAL: NET ASSETS AND LIABILITIES
ASSETS
TOTAL: ASSETS
JUNE 2012
1
DEPARTMENT FINANCE
FINANCIAL PERFORMANCE
Revenue by Source (YTD):
80,000,000
4,878,000
5,491,386
82,135
24,500
-
10,000,000
506,348
930,900
20,000,000
250,656
-
30,000,000
120,000
40,000,000
67,645,000
67,645,000
50,000,000
25,974,590
60,000,000
21,148,873
70,000,000
-
YTD ACTUAL
YTD BUDGET
The positive variance on Grants and Subsidies was mainly due to the receipt of the equitable share
allocation in respect of the third quarter of the financial year.
Expenditure per classification (YTD):
45,000,000
40,000,000
-
YTD ACTUAL
JUNE 2012
YTD BUDGET
2
8,565,785
10,978,090
26,363,917
41,771,948
2,437,007
3,637,100
-
1,516,165
1,515,410
1,742,832
500,000
2,312,339
3,415,150
5,000,000
-
10,000,000
1,514,214
15,000,000
121,538
-
20,000,000
22,305,988
3,625,550
25,000,000
3,000
30,000,000
4,595,182
5,521,430
35,000,000
33,908,509
38,474,390
2.
JUNE 2012
DEPARTMENT FINANCE
JUNE 2012
For this financial year, expenditure was restricted to necessary activities per approved budget &
service delivery plans, operating expenditure limit approved by Council and money that we
realistically expected to collect. Adequate controls are in place to ensure that overspending does
not occur.
Salaries: A summary of the actual salaries paid versus the approved budget allocation is as follows:
Salaries & Allowances
Councillors Remuneration
Post-Service Benefits
Personnel Remuneration
Employee Related Costs
Social Contributions
Compulsory Levies
Actual
38,503,690
4,595,182
306,407
33,602,101
Budget
43,995,820
5,521,430
794,990
37,679,400
Variance
5,492,130
926,248
488,583
4,077,299
Var %
12%
17%
61%
11%
28,189,308
31,398,680
3,209,372
10%
4,702,932
5,302,590
599,658
11%
709,861
978,130
268,269
27%
The positive variance on budgeted remuneration was due mainly to the budgeted number of
vacancies on the staff structure not filled.
Depreciation: The actual depreciation reflected for the financial year was based on true
transaction and acquisition date of asset. Assets are depreciated in accordance with
GRAP / GAMAP guidelines per asset type and calculated on cost, using the straight line
method over the estimated useful life of assets. Asset acquisitions were included in the
capital budget and were depreciated as the year progressed.
Repairs and Maintenance: Apart from standard service contracts, planned or expected
maintenance costs incurred during this financial year were mainly in the area of
computer software licenses renewal.
Grants and Subsidies: All project payments, whether capital infrastructure or community
development in nature, whether funded internally or externally, are included.
Projects that were not completed during the previous year-end (2010/2011) have been
rolled over to this new financial year for completion from the accumulated surplus /
deficit or applicable unspent grant funding accounts.
Progress on actual expenditure on infrastructure and development projects, in
comparison with the budget, is:
Grants & Subsidies
Internal / Administration
External Beneficiaries
State Funded Grants
Reserve Funded Grants
Revenue Funded Grants
Actual
25,025,544
Budget
37,865,008
Variance
12,839,465
Var %
34%
7,069,817
17,955,727
11,943,171
5,982,938
29,618
9,743,438
28,121,570
20,009,570
8,082,000
30,000
2,673,622
10,165,843
8,066,399
2,099,062
382
27%
36%
40%
26%
1%
General Expenses: Actual expenses are expected to increase as planned activities per service
delivery and budget plans gain momentum.
JUNE 2012
3
DEPARTMENT FINANCE
JUNE 2012
Legal Costs per Department: A summary of the actual legal costs paid versus the approved
budget is as follows:
LEGAL COST PER DEPARTMENT
160,000
50,000
100,000
135,461
120,000
150,000
140,000
80,000
10,500
60,000
40,000
20,000
Council
Municipal Manager
YTD Actual
YTD Budget
The actual spending on legal costs reflects mainly for spending needs identification. An amount
of R200 000 has been budgeted; and only R145 961 has been spent resulting in a savings of
R54 039. Reflected on the graph is the actual year to date versus the full year budget as at 30
June 2012.
Projected Operating Results:
Explanation regarding any significant projected positive or negative variances more than 10%
versus the approved budget:
Please refer to next page
JUNE 2012
4
DEPARTMENT FINANCE
Revenue & Expenditure per classification
JUNE 2012
YTD Actual
30 June 2012
Estimated
Projection:
2011/12
Approved Budget
2011/12
Projected
Variance
R
Projected
Variance
%
REVENUE BY SOURCE:
Interest Earned - External Investments
Interest Earned - Outstanding Debtors
Other
Rental of Facilities & Equipment
Income for Agency Services
Government Grants & Subsidies
Regional Service Levy Replacement Grant
Public Contributions
Fines
Transfers From Reserves
Gain on disposal of property plant and
equipment
5,491,386
82,135
506,348
21,148,873
67,645,000
120,000
250,656
-
4,878,000
24,500
930,900
26,089,280
67,645,000
-
4,878,000
24,500
930,900
26,089,280
67,645,000
2,214,680
80,000
80,000
Total Revenue:
95,244,399
99,647,680
101,862,360
EXPENDITURE PER VOTE:
Executive and Council
Council
Office of the Municipal Manager
Finance & Administration
Budget & Treasury Office
Corporate Services
Planning & Development
Planning & Development
Technical Services
Health
Community & Social Services
Public Safety
Housing
12,602,366
7,321,964
5,280,402
30,675,629
18,219,249
12,456,381
52,496,772
11,499,637
40,997,135
3,690,593
3,344,076
3,167,549
12,602,366
7,321,964
5,280,402
30,675,629
18,219,249
12,456,381
52,496,772
11,499,637
40,997,135
3,690,593
3,344,076
3,167,549
105,976,986
105,976,986
1,185,000
Total Expenditure:
Transfer to Capital Replacement Reserve
Prior year Revenue & Expenditure
NET OPERATING RESULT:/ (DEFICIT)
-
2,214,680
-
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2,214,680
2.33%
17,222,090
9,055,790
8,166,300
31,089,760
15,331,410
15,758,350
49,214,010
14,397,110
34,816,900
4,683,090
3,364,060
4,510,820
4,619,724
1,733,826
2,885,898
414,131
(2,887,839)
3,301,969
(3,282,762)
2,897,473
(6,180,235)
992,497
19,984
1,343,271
36.66%
19.15%
35.34%
1.35%
-18.84%
20.95%
-6.25%
20.13%
-17.75%
21.19%
110,083,830
1,185,000
4,106,844
-
3.73%
-
0.59%
29.78%
-
SURPLUS
(10,732,587)
(7,514,306)
(9,406,470)
(1,892,164)
EXPENDITURE PER VOTE:
Please note that as per direction from National Treasury, the 2011/12 budget is based on an
increase of 6% of spending capacity on the previous financial years’ budget.
Results per approved business plans and budget for the financial year under review:
o Executive and Council:
Expenditure of Council and Executive was less than the budget by 36.66% as compared to
the full year budget.
 A total savings on special projects of R17 025 was realised due to less than budgeted
spending on projects and projects that were not realised in this financial year.
 Legal services: An amount of R200 000 was budgeted, however expenditure occurs as
required, currently a variance (not spent to date) of R54 039 is reflected.
JUNE 2012
5
DEPARTMENT FINANCE
JUNE 2012

Councillor training: A variance of R20 269 is reflected. Training needs have been
identified, however due to the work schedule of councillors, training could not take place
and a savings has been realised.
 Consultancy: An amount of R1 324 620 was budgeted; only R649 662.99 has been spent
resulting in a savings of R674 957.
 Further savings under operational expenditure to approximately R788 886.80 was realised –
e.g. conferences and seminars, printing and stationery and telephone costs.
o Vacant post of Office Manager in the office of the Municipal Manager still has to be filled.
The annual increase for Councilors’ was decided in December 2011 and implemented in
terms of the remuneration of Public Office Bearers Act, 1998 in respect of the 2011/2012
financial year which has been budgeted for the full year.







Finance & Administration:
Expenditure of finance and administration was less than the budget by 1.35% as compared
to the full year budget.
Approved vacant posts of Labour Relations Officer, Assistant Accountant and Accountant
still have to be filled.
Employee Assistance Programme – response rate from officials has been low. The EAP is
needs driven.
Consultancy: An amount of R644 620 was budgeted; only R445 576 has been spent
resulting in a savings of R199 044.
Repairs and Maintenance; An amount of R2 831 430 was budgeted; only R2 021 574 has
been spent resulting in a savings of R818 856.
Development of IT Governance Framework: An amount of R380 000 was budgeted; only
R111 632 has been spent resulting in a savings of R268 368. Funds will be rolled-over to the
2012/13 Financial Year.
Further savings under operational expenditure to approximately R718 716 was realised –
e.g. conferences and seminars, printing and stationery and telephone costs.
o Planning & Development:
 Expenditure of Planning & Development is more than the projected budget by -6.25% as
compared to the full year budget. The overspending occurred as a result of impairment of
assets to the value of R18 529 246.
o

o

Spatial Planning
Township establishment: An amount of R1 087 300 was budgeted; only R331 359 has been
spent resulting in a savings of R755 941. Additional funding was requested for the biodiversity study. Funds will be rolled-over to the 2012/13 Financial Year.
Further savings under operational expenditure for approximately R85 296 was realised –
e.g. conferences and seminars, printing and stationery and telephone costs.
GIS
A new service provider has been appointed for the capturing of water infrastructure data.
Funds will be rolled-over to the 2012/13 Financial Year.
Further savings under operational expenditure to approximately R164 422 was realised –
e.g. conferences and seminars, printing and stationery and telephone costs.
JUNE 2012
6
DEPARTMENT FINANCE
o


JUNE 2012
Local Economic Development
78% of the budget on special projects has been spent as compared to the full year budget;
except for the following deviations:
 LED Agency: Funds will be rolled-over to the 2012/13 Financial Year.
 LED Expo: An amount of R450 000 was budgeted and only R238 711 was spent and
the difference was paid by sponsorship funds resulting in a savings R211 289.
 LED Phokwane Vegetable Plant: Funds will be rolled-over to the 2012/13 Financial
Year.
Further savings under operational expenditure to approximately R95 664 was realised – e.g.
conferences and seminars, printing and stationery and telephone costs.
 Project Management & Advisory Services


57% of the budget on special projects has been spent as compared to the full year budget;
except for the following deviations:
 EPWP Grant: An amount of R9 882 000 was budgeted. EPWP is an incentive grant
is not an upfront grant, It is a grant rewarded for employment generated. It therefore
can only be claimed once employment has been created. The grant rewards entitles
R50 per person per day employed once the entity has reached its first FTE (Full Time
Equivalent). FTE is equal to 220 days employment created. Thereafter the calculation
for the incentive is made.
 EPWP Lerato Park: Funds will be rolled-over to the 2012/13 Financial Year.
 Magereng & Dikgatlong Electricity Master Plan: Funds will be rolled-over to the
2012/13 Financial Year.
 Maloof Skatepark-Ablution Blocks: An amount of R500 000 was budgeted and no
spending occurred for this project.
Further savings under operational expenditure for approximately R44 043 was realised –
e.g. conferences and seminars, printing and stationery and telephone costs.
o Health:
 74% of the budget on special projects has been spent as compared to the full year budget;
except for the following deviations:
 Waste Recycling Equipment: Funds will be rolled-over to the 2012/13Financial Year.
 Maintenance of Recycling Project: Expenditure relating to the maintenance of the recycling
project will not materialise in this financial year resulting in a savings of R500 000.
 Further savings under operational expenditure to approximately R219 129 was realised –
e.g. test consumables, pauper burials, sample analysis, conferences and seminars, printing
and stationery and telephone costs.
o Public Safety:
Expenditure of public safety is less than the projected budget by 0.59%. Certain activities
are needs driven.

Housing:
Expenditure of housing is less than the budget by 29.78% primarily in the areas of
consultancy and special projects. Expenditure of the housing unit is limited to the actual
revenue received year-to-date.
JUNE 2012
7
DEPARTMENT FINANCE
JUNE 2012
EXPENDITURE ON SPECIAL PROJECTS PER VOTE:

Council & Executive
YTD Actual
Council
District Aids Council Grant
Goodwill Fund Projects: Executive Mayor
Commemorative Days
11/12: Contribution Maloof Money Cup SA
Total
Municipal Manager
Employee Assistance Programme
Public /Private Funded Grants - PROJ 1
Total
Communications
CFS System
PAIA Management
Branding
Total
133,714
1,892
38,273
126,500
300,380
114,690
4,000
50,000
126,500
295,190
11,935
11,999
23,934
30,970
30,970
4,791
6,941
4,430
12,000
9,901
21,633
20,000
36,430
YTD Actual
Committee & Administration Services
2011: Spec Proj - Youth Unit
Total

% Spending
Budget
Budget
29,618
29,618
30,000
30,000
Remarks
116.59% Completed - Overspending
47.31%
76.55%
100.00% Completed
101.76%
38.54% Completed - Savings
77.28%
108.15% Completed - Overspending
57.85% Completed - Savings
Branding to be rolled out in full now that the visual
49.50% standards manual is completed
59.38%
% Spending
Remarks
98.73% Completed - Savings
98.73%
Finance & Administration
YTD Actual
Budget
Finance: Directorate
Finanacial System Support (3) LM
Total
474,321
474,321
450,000
450,000
Finance: Budget Office
Capacity Building & BTO Operation
Total
167,313
167,313
180,000
180,000
YTD Actual
Information Communication & Technology
Develop IT Governance Framework
Total
111,632
111,632
YTD Actual
Budget
% Spending
105.40% Completed - Overspending
105.40%
92.95% Completed - Savings
92.95%
% Spending
380,000
380,000
Budget
Remarks
Remarks
29.38% Implementation - Roll Over 2012/13 Financial Year
0.02%
% Spending
Remarks
Human Resource Management
Employee Assistance Programme
Employee Wellness
HIV VIP Primer
Total
JUNE 2012
23,583
444,348
217,297
685,228
100,000
495,000
220,000
815,000
23.58% Needs driven
89.77% Completed - Savings
98.77% Completed - Savings
84.08%
8
DEPARTMENT FINANCE

Environmental Health
YTD Actual
Environmental Health
Waste Recycling Project
Waste Recycling Equipment
Awareness Program - Sanitation, HIV and
Enviro Days
Awareness Program IWMP & EMF
Maint Recycling Project
Air Quality Management Plan
Total

JUNE 2012
% Spending
Budget
1,609,509
452,129
1,546,000
700,000
31,535
3,400
56,219
2,152,792
50,000
25,000
500,000
95,000
2,916,000
Remarks
104.11% Completed - Overspending
64.59% Retention - 2012/13 Financial Year
63.07%
13.60%
0.00%
59.18%
73.83%
Spending according to programmes
Spending according to programmes
Will not materialise during this finacial year - Savings
Completed - Savings
Planning & Development
YTD Actual
Planning & Development Directorate
Dikgatlong Town Plan
Preparation of By-Laws
Establish Water Infrastructure System
Total
IDP / PMS Management
IDP Review and Implementation
Total
307,016
181,825
700,000
1,188,841
300,000
200,000
700,000
1,200,000
17,094
17,094
38,660
38,660
YTD Actual
GIS
GIS - Capture Water Infrastructure
Township Establishment
Total
Total
JUNE 2012
44.22% Completed - Savings
44.22%
Remarks
147,020
1,003,160
1,150,180
54.88% Project roll-over 2012/13 Financial Year
33.03% Project roll-over 2012/13 Financial Year
35.82%
-
84,140
84,140
0.00% Project roll-over 2012/13 Financial Year
0.00%
YTD Actual
Housing Register Contractors
102.34% Completed - Overspending
90.91% Completed - Savings
100.00% Completed
99.07%
% Spending
Budget
Remarks
80,683
331,359
412,042
Spatial Planning
Township Development Project
Total
HOUSING
Housing Consumer Education
Housing HDD Field Workers
REV. Housing Chapters
Development Housing Strategy
% Spending
Budget
% Spending
Budget
8,272
238,679
-
22,000
250,000
350,000
19,500
-
40,600
246,951
682,100
Remarks
37.60%
95.47%
0.00%
0.00%
Roll Over 2012/13 Financial Year
Roll Over 2012/13 Financial Year
Roll Over 2012/13 Financial Year
Completed in-house: savings
COGHSTA paid for the registration of Contractors 0.00% Savings
36.20%
9
DEPARTMENT FINANCE
YTD Actual
LED / Tourism
LED Capacity Building
LED Social Responsibility / Miners
LED Agency
LED Forums
LED - NCTA Support
TOUR Business Plan Competition
LED Phokwane Vegetable Plant
LED Entrepreneur Program
LED Bokomotso Dikgatlong
LED Kgololosego Phokwane
LED SMME Development
LED EXPO
LED Phokwane vegetable Plant
TOUR Marketing Brochure
TOUR SAN Community Culture Village
TOUR Wildebeestkuil Rock Art
TOUR SMME Registration & Grading
TOUR Tourism Guide Training
TOUR Capacity Building
TOUR Capacity Building Phokwane
TOUR Product Owners Meeting Grading
TOUR Indaba Trade EXPO
TOUR Know Your Region Campaign
TOUR N12 Treasure Route
TOUR NCTA Marketing Meetings
TOUR Association Meetings
TOUR Advertising
TOUR NAT Tourism Day Celebetrations
TOUR PROV Tourism Month Celebration
TOUR N12 Information Boards
TOUR N12 Promotion
TOUR Contribution Gariep Festival
TOUR / LED SMME EXPO
Contribution to Doring Fees
Total
JUNE 2012
Budget
% Spending
17,148
2,720
9,971
19,554
135,000
195,711
88,115
132,038
80,652
152,312
164,294
238,711
38,626
163,376
150,000
100,000
100,000
189,327
119,300
33,885
71,751
113,167
28,396
20,000
13,144
4,741
156,850
10,000
10,000
87,889
50,000
100,000
29,760
100,000
16,000
7,000
70,000
20,000
135,000
270,000
90,000
156,000
80,000
150,000
164,530
450,000
60,000
200,000
150,000
100,000
100,000
250,000
120,000
100,000
100,000
120,000
60,000
20,000
15,000
10,000
270,000
10,000
10,000
100,000
50,000
100,000
85,000
100,000
107.17%
38.86%
14.24%
97.77%
100.00%
72.49%
97.91%
84.64%
100.82%
101.54%
99.86%
53.05%
64.38%
81.69%
100.00%
100.00%
100.00%
75.73%
99.42%
33.88%
71.75%
94.31%
47.33%
100.00%
87.62%
47.41%
58.09%
100.00%
100.00%
87.89%
100.00%
100.00%
35.01%
100.00%
2,926,438
3,738,530
78.28%
Remarks
Completed - Overspending
Completed - Savings
Project roll-over 2012/13 Financial Year
Completed - Savings
Spending completed
Completed - Savings; Workshops did not materialise
Completed - Savings
Completed - Savings; One graduate not appointed
Completed - Overspending
Completed - Overspending
Completed - Savings
Completed - Savings; Received sponsorship
Project roll-over 2012/13 Financial Year
Completed - Savings
Spending completed
Spending completed
Spending completed
Completed - Savings
Completed - Savings
Completed - Savings; Municipality not ready
Completed - Savings
Completed - Savings
Completed - Savings
Spending completed
Completed - Savings
Completed - Savings
Completed - Savings
Spending completed
Spending completed
Completed - Savings
Spending completed
Spending completed
Completed - Savings; NEPAD Summit not attended
Spending completed
 FIRE FIGHTING / DISASTER MANAGEMENT
YTD Actual
Budget
% Spending
Remarks
FIRE FIGHTING / DISASTER MANAGEMENT.
Assit: Fire Fighting Equipment Maintenance
Volunteers Training
Volunteers Fire Equipment
Equipment - FF Personnel
Disaster Management Volunteers Project
Disaster Management Forum
Total
JUNE 2012
20,870
66,428
30,403
121,863
-
90,000
66,500
49,380
15,000
180,000
4,000
23.19%
99.89%
61.57%
0.00%
67.70%
0.00%
239,564
404,880
59.17%
Utilised as per request
Completed - Savings
Completed - Savings
Savings
Expenditure as per request
Savings
10
DEPARTMENT FINANCE
YTD Actual
PROJECT & ADVISORY SERVICES
EQS 11/12 - Magareng: MNT Water
Treatment Works
EQS 11/12 - Magareng: MNT Waste
Treatment Works
EQS 11/12 - Magareng: MNT Electricity
Network
EQS 11/12 - Magareng: MNT Water and
Sewer Network
EQS 11/12 - Magareng: MNT Street &
Stormwater
EQS 11/12 - Phokwane: MNT Water
Treatment Works
EQS 11/12- Phokwane: MNT Waste
Treatment Works
EQS 11/12 - Phokwane: MNT Electricity
Network
EQS 11/12 - Phokwane: MNT Water and
Sewer Network
EQS 11/12 - Phokwane: MNT Street &
Stormwater
EQS 11/12 - Dikgatlong: MNT Water
Treatment Works
EQS 11/12 - Dikgatlong: MNT Waste
Treatment Works
EQS 11/12 - Dikgatlong: MNT Electricity
Network
EQS 11/12 - Dikgatlong: MNT Water and
Sewer Network
EQS 11/12 : Service Private Owned Land
EPWP Unallocated
DWAF: 11/12 SANITATION MVULA
TRUST
10/11: DWA ASSESS W/W TREAMENT
WORKS
EPWP 11/12 : Bush Clearance
RES: DMA 11/12 - Eelectricity Selfbuild
Roll Over
RES 11/12 : Phokwane: Pave Roads
REVF 11/12 - SOL: MNT Streets and
Stormwater
REVF 11/12 - SOL: MNT Platfontein Sewer
REVF 11/12 - Dikgatlong: MNT Water and
Sewer Network
REVF 11/12 - Dikgatlong: MNT Street &
Stormwater
REVF 09/10: 11/12: Phokwane: Pave Roads
REVF 09/10: 11/12: Magareng Refuse
Truck
REVF 09/10: 11/12: Dikgatlong: Water
Treatment Works
REVF 09/10: 11/12: Magareng: Electricity
Masterplan
REVF 09/10: 11/12: Dikgatlong: Eelctricity
MasterPlan
11/12: MALOOF SKATEPARKABLUTION BLOCKS
Total
JUNE 2012
JUNE 2012
Budget
% Spending
Remarks
222,887
300,000
74.30% Spending completed - savings
84,828
300,000
28.28% Spending completed - savings
276,743
300,000
92.25% Spending completed - savings
186,431
250,000
74.57% Spending completed - savings
1,540,803
1,650,000
93.38% Spending completed - savings
399,319
400,000
99.83% Spending completed
499,980
500,000
100.00% Spending completed
499,600
500,000
99.92% Spending completed
250,000
250,000
100.00% Spending completed
398,571
400,000
99.64% Spending completed
546,609
550,000
99.38% Spending completed
320,996
400,000
80.25% Spending completed - savings
144,007
150,000
96.00% Spending completed - savings
59,875
999,959
-
62,000
1,000,000
9,882,000
96.57% Spending completed - savings
100.00% Spending completed
0.00% Incentive Grant not materialised
1,429,960
1,429,960
100.00% Spending completed
68,260
78,452
68,260
185,420
1,793,844
1,399,721
2,192,330
1,400,000
81.82% Retention and savings
99.98% Phase 1 Completed - Savings
597,202
650,000
91.88% Spending completed - Savings
99,226
100,000
99.23% Spending completed - Savings
224,742
238,000
94.43% Spending completed - Savings
695,448
700,000
99.35% Spending completed - Savings
2,301,981
2,312,000
99.57% Spending completed - savings
1,600,000
1,600,000
646,691
1,412,000
-
270,000
0.00% Roll Over 2012/13 Financial Year - Tender price too high
-
300,000
0.00% Roll Over 2012/13 Financial Year - Tender price too high
-
500,000
0.00%
17,366,136
30,251,970
57.40%
100.00% Spending completed
42.31% Implementation - Roll Over 2012/13 Financial Year
100.00% Spending completed
45.80% Spending completed - savings
11
DEPARTMENT FINANCE
JUNE 2012
Projected Capital Expenditure Results:
A detailed projection of capital expenditure per vote as well as variances reflected in rand value
and / or percentage follows:
Capital Expenditure per vote
YTD Actual
Estimated
Projection:
2011/12
Approved Budget
2011/12
Projected
Variance
R
Projected
Variance
%
CAPITAL EXPENDITURE PER VOTE:
Executive and Council
Council
Office of the Municipal Manager
Finance & Administration
Budget & Treasury Office
Corporate Services
Planning & Development
Planning & Development
Technical Services
Housing
Health
Community & Social Services
Public Safety
137,616
1,550
136,066
943,604
295,324
648,280
1,312,649
47,590
1,265,059
41,884
1,101
137,616
1,550
136,066
943,604
295,324
648,280
1,312,649
47,590
1,265,059
41,884
1,101
194,060
5,000
189,060
1,454,340
296,700
1,157,640
1,457,590
103,590
1,354,000
72,100
300,000
56,444
3,450
52,994
510,736
1,376
509,360
144,941
56,000
88,941
30,216
298,899
29.09%
28.03%
35.12%
0.46%
44.00%
1
54.06%
6.57%
0.00%
0.00%
0.00%
99.63%
Total Capital Expenditure:
2,436,854
2,436,854
3,478,090
1,041,236
29.94%
Expenditure on capital acquisition was 70% as compared to the full year budget at the period of
reporting.
Computer Equipment
 58% of computer equipment has been acquired resulting in an under spending of R543 186.
Office Equipment
 63% of office equipment has been acquired to date as compared to the full year capital budget
resulting in an under spending of R2 167.54
Furniture and Fittings
 20% of the furniture and fittings have been acquired resulting in an under spending to the
value of R46 737.
Motor Vehicles
 Procurement of a motor vehicle with a tow bar, caravan and sliding cover for the double cab
is complete.
Plant & Equipment
 70% plant & equipment has been acquired resulting in an under spending of R34 028.
Buildings & Facilities
 73% of buildings & facilities has been spent on alteration and renovations resulting in an
under spending of R410 682.
JUNE 2012
12
DEPARTMENT FINANCE
JUNE 2012
Grant Funding:
External funding account balances reflect transfers to revenue adequate to cover the relevant
operating or capital expenditure for which the funds have been received.
Grant funding is reflected as unspent grants where relevant, with revenue transferred to the income
statement as expenditure is incurred.
A summary of grant fund movements is set out below:
EXTERNAL FUNDING
Equitable Share
Financial Management Grant
Municipal Systems Improvement Grant
Municipal Infrastructure Grant
DWAF - Sanitation (Mvula Trust)
Expanded Public Works Program Grant
NCPA - Housing Accreditation Grant
District Aids Council
NEAR Control Centre
Firefighting Equipment
SETA Skills Grant
Vuna Awards
NC TOURISM
EPW: Lerato Park
Environmental Health Recycling Project
Koopmansfontein Self Build Scheme
Total
Balance Fwd
1,489,217
1,077,953
114,682
352,364
185,421
1,427,746
80,000
Received
79,281,000
1,250,000
1,200,000
2,783,799
569,000
371,000
170,324
700,000
16,000
Applied
79,281,000
1,250,000
1,200,000
1,489,217
3,148,561
114,682
170,324
78,452
2,061,638
96,000
Balance
713,191
569,000
723,364
106,969
66,108
-
4,727,383
86,341,123
88,793,873
2,178,633
Please refer to next page
JUNE 2012
13
DEPARTMENT FINANCE
3.
JUNE 2012
CASH AND INVESTMENT
CASH FLOW REPORT
OPERATING FLOWS
30-Jun-11
Jun-12
(82,575,159)
(72,569,165)
(39,731,307)
(55,129,658)
(2,561,407)
(122,395)
(1,607,683)
7,376,480
6,534,246
2,666,564
(39,008,535)
(37,099,388)
(5,868,067)
(2,649,889)
5,407,505
3,738,129
2,911,080
INVESTMENT FLOWS
(11,600,000)
(13,000,000)
- Investments made-OUT
- Investments redeemed
(86,500,000)
74,900,000
(117,000,000)
104,000,000
FINANCING FLOW
96,237,132
85,655,176
- External loans repaid
- External loans received
- Utilisation of Overdraft Facility
- Grants and subsidies
(1,051,524)
97,288,656
(1,367,409)
87,022,585
Nett Cash Generated from operating activities
2,061,973
86,012
Increase / (Decrease) in investment activities
10,100,000
13,000,000
12,161,973
13,086,012
76,028,152
63,866,179
89,114,164
76,028,152
12,161,973
13,086,012
- Salaries, wages and allowances
- Cash and creditor payments
- Statutory Payments (incl VAT)
- Other payments
- Revenue receipts
- Statutory Receipts (incl VAT)
- Capital payments
- Other revenues
Nett increase / (Decrease) in cash and cash investments
CASH AND CASH EQUIVALENTS
Balance at the end of the Year
Balance at the beginning of the Year
Net increase / (Decrease) in cash and cash equivalents
Cash Flow Statement
Cash flow for the period ended 30 June 2012 reflected a positive amount of R13.08m as a result of
receiving Equitable Share Grant for third quarter ending 31 March 2012.
JUNE 2012
14
DEPARTMENT FINANCE
JUNE 2012
Cash Balances:
The following bank and investment balances were held at the reporting date:
Bank Statement
Less: Outstanding Cheques
Minus Unreconciled Direct Payments
Minus: Cancelled Cheques
Plus: Unreconciled Deposits
Minus Unreconciled Direct Payments
Salary Payments
Creditors Payment
Investments
Cash Book Balance
Adjustment to Bank - Standard Bank
Adjusted Cash Book Balance
+
3,364,665
657,313
+
+
2,707,352
3,512
2,710,864
* None > 3 Months
SURPLUS CASH INVESTED
Absa
Standard Bank
First Rand
Nedcor
Absa [Collateral security Due 30 June 2011]
Standard Bank[Leave reserve D
- ue 30 June 2011]
Total Cash Investments
Petty Cash float
Total Cash on Hand
11,750,000
34,750,000
10,750,000
25,750,000
500,000
2,900,000
86,400,000
3,300
89,114,164
Surplus cash is invested at approved banking institutions in accordance with current cash and
investment policy.
4.
REVENUE AND DEBT COLLECTION MANAGEMENT
 Sundry Debtors:
Council’s debtors consist of three main groups, namely:
 Provincial or Local government bodies for services rendered to or on behalf of these bodies,
 Ex-employees entitled to post-service benefits,
 Other entities by way of service delivery for which costs are to be recovered.
Matters reported below are in respect of debts outstanding in excess of 90 days on the effective
reporting date.
 Provincial and Local Government - Department of Roads
The only outstanding debts reflected for more than 90 days as at 30 June 2012 is Department of
Transport, Roads and Public Works R425 662.37 for medical aid payments and R247 301.91 for
furniture of the Council house and Department of Health R1710.00 for hiring of the Lecture Rooms.
JUNE 2012
15
DEPARTMENT FINANCE
JUNE 2012
 Post-Service Benefits
Debtors are being managed in terms of the approved credit control policy. No significant difficulties
are evident at present. Management of these debtors has improved with the aggressive application
of the credit control policy. A large portion of the post-service benefits will be recovered from
Department of Transport, Roads and Public Works and the matter will be finalized in due course.
 Sundry Debtors
No difficulties are experienced due to the fact that strict credit control procedures are applied in
terms of Council’s Credit Control Policy. The only outstanding debts reflected for more than 90
days as at 30 June 2012 is Jansen van Vuuren R5 002.90 for crashing into the main entrance gate.
Debts are continuously monitored and reviewed and adequate controls are in place according to
approved policies.
The DMA has fallen away, transfer of the assets, revenue and expenditure linked to this occurred
in October 2011.
5.
EXPENDITURE MANAGEMENT
The expenditure section continued to administer, manage, assess and improve creditors, salaries and
sundry payments subject to internal prescriptions.
Salary Payment:
Salary payments are under adequate control and take place according to approved policies and
agreement in terms of the Bargaining Council.
Salary increases of 6.08% for staff have been implemented in August 2011 back-dated from July
2011. Staff annual bonuses have been paid at the end of November 2011.
Trade Creditors:
Council purchases and payments to creditors are under adequate control. There are no orders and
invoices that are more than 30 days old and unpaid.
Please refer to next page
JUNE 2012
16
DEPARTMENT FINANCE
PAYMENTS
Total value of all payments
Electronic transfers
Cheques issued
STORES
Value of Stores issued
SALARIES
Number of salary beneficiaries
Councillors
Employees
Pensioners
Total remuneration paid
Councillors
Employees
Pensioners
JUNE 2012
R 14,574,405
258
55
20,066
196
28
164
4
2,629,588
362,689
2,260,721
6,178
Expenditure controls are continuously being re-evaluated and tightened up to allow closer
monitoring of daily purchases, order transactions and the extension of budgetary control over
departmental activities.
6. Supply Chain Management:
Although council adopted a new procurement policy effective from 1 January 2008 a number of
issues still impact negatively on the effective implementation of the mentioned policy. The
following are some of the issues that still need attention in order to ensure full compliance as
stipulated in the policy:

The development and implementation of a new centralized procurement procedure has
started and is in line with the SCM policy. Monitoring is on an ongoing basis and as
problems arise, they will be dealt with.

Amendment and procedures with regard to the tender committee system (Specification,
Evaluation and Adjudication Committees) still needs attention. Monitoring is on an
ongoing basis and as problems arise, they will be dealt with.

Putting systems in place to monitor and report on supply chain management as required per
approved policy has started as from 1 April 2008. Monitoring is on an ongoing basis and as
problems arise, they will be dealt with.
As Council reserves its right to maintain oversight over the implementation of the Supply Chain
Management Policy and is empowered to make Supply Chain policy within the ambit of the
applicable legislation, the following is hereby reported as stipulated in the SCM policy for the
period May 2012.
Implementation of the Approved Supply Chain Management Policy:
The approved Supply Chain Management Policy of 30 November 2005 as amended on 27
November 2007 is implemented and is maintained by all relevant role players as from 01 April
2008.
JUNE 2012
17
DEPARTMENT FINANCE
JUNE 2012
Implementation of the Supply Chain Management Process:
•
Supply Chain Management Training
No training was offered or attended by supply chain management personnel.
•
Demand Management
Bids and quotations were invited in accordance with the Supply Chain Management Policy. Bid
documents used were customised, standard bid documents prescribed by National Treasury. All
preconditions were enforced during the opening of bids including the verification on Tax Clearance
Certificates issued by SARS.
•
Acquisition Management
For the period of June 2012, one contract (R200 000+) was awarded by the Bid Adjudication
Committee.
1. Refurbishment of sand filters at Barkly-West: C-Pac – R2 496 771.00 including VAT
For the period of June 2012 four written price quotations (R30 000-R200 000) were awarded by the
Acting Municipal Manager.
1.
2.
3.
4.
Supply and delivery of Autodesk: JAKK Construction – R 55 742.00
Three phase electrical connection: Mooks Electrical – R39 729.00
Property Valuation: ValuData – R85 785.00
Diamond mesh Fencing: JAKK Construction – R43 993.23
The value of orders issued for the period ending 30 June 2012 total R1 424 236.52 (See Annexure
“A”)
Orders per department
Council and Executive
Municipal Manager
Finance
Administration
Planning and Development
Technical Service
•
R13 994.94
R12 372.58
R2 499.43
R392 636.31
R203 132.58
R799 650.70
Disposal Management
No disposals for June 2012

Deviations
Two deviations were approved by the Acting Municipal Manager
1. Replacement and repair of UPS: Electrolabs – R42 208.55
2. Analysis of Organisational Structure: HR Concepts – R28 520.00
JUNE 2012
18
DEPARTMENT FINANCE

JUNE 2012
Issues from Stores
Total orders issued R20 065.99
Issues per department
Council and Executive
Municipal Manager
Finance
Administration
Planning and Development
Technical Service

R0.00
R0.00
R3 470 .11
R13 593.32
R2 871.98
R130.58
List of accredited service providers
The supplier’s database is updated daily and the database is amended to make provision for the
MBD4 and MBD9 forms as required by the Auditors General’s report.
Internal Provisions:
Council has internal liabilities related to personnel bonuses, performance bonuses, leave, postemployment health care, pension and long service awards provisions. These liabilities are
adequately provided for and are included under Provisions in the Statement of Financial Position
and these provisions are properly backed by cash reserves where applicable.
ASSET AND RISK MANAGEMENT
Insurance:
All Council assets are adequately insured with Alexander Forbes over a 3 year period. The
insurance portfolio / costing was reviewed and implemented in July 2011. The 3 year contract
expired on 30 June 2012 and currently all council assets are covered on a month-to-month basis
until a new service provider has been appointed. The tender has been advertised and a new service
provider will be appointed soon.
Asset Inventory:
TAT I-Chain Asset Management System has been implemented. The next asset stock take is
scheduled for 30 May to 12 June 2012 as per requirement of Councils’ Asset Management Policy.
Information Backup:
All shared data on the internet system (O & P drives only) is backed up on the server with a further
daily tape backup kept on the premises. System users are responsible for ensuring that data backup
and maintenance is carried out with regard to their specific usage. General ledger and associated
financial system data is backed up on the network server tape system.
The implementation and use of the new “e-Venus” financial system has started on 1 July 2009 with
minor hiccups, but the problems identified are being attended to. A daily backup is done as well as
a day end procedure to integrate the day’s transactions. On the last working day of each month a
monthly calendar and financial (a few days after month end to accommodate financial transactions
JUNE 2012
19
DEPARTMENT FINANCE
JUNE 2012
pertaining to the month closed) backup and integration including closing of votes and opening
thereof in the new month is done.
The Blueprint System has been fully implemented. The system is an aid to managing
projects. Monitoring is enhanced and implementation of projects is accelerated. Because each
project has been allocated with different vote numbers, each manager will be responsible for
monitoring and reporting on the progress of projects within the ambit of his/her department. This is
a total deviation as to the management of projects in the past.
Motor Vehicles - Utilization Statistics:
Council operates a pool of 20 vehicles as part of its routine activities.
Statistical information regarding the year-to-date utility for June 2012 is as follows:
Vehicle
Description
Vehicle
Allocation
Year Registration Service
Model
Number
License
expires
Year End
Km Reading
Current Km
Reading
YTD
Utility
1 Mercedes Benz
Council
2006 FBDM 1 NC 150,000 9/30/2012
55,526
144,741
89,215
2 Citi Golf
Pool
2005 BSM 014 NC 90,000
4/30/2013
73,975
84,222
10,247
3 Mazda Drifter D/Cab Pool
4 Chevrolet Cruze 1.8 LS Pool
5 Chevrolet Opel Corsa 1.4
Disaster
i
Management
2005 BSM 137 NC 210,000 4/30/2013
2010 CBY 226 NC 60,000 9/30/2012
2010 CBY 227 NC 30,000 9/30/2012
188,465
17,529
8,433
202,504
50,031
26,446
14,039
32,502
18,013
6 Chevrolet Captiva
Pool
2011 CDM 296 NC 30,000 11/30/2012
68
20,388
20,320
7 Isuzu 2.4
Environmental Health
2006 BVC 305 NC 165,000 7/31/2012
136,339
156,944
20,605
8 Isuzu 2.4
Environmental Health
2006 BTT 339 NC 150,000 4/30/2013
129,226
148,190
18,964
9 Nissan D/Cab
Disaster Management
2006 BTT 376 NC 105,000 4/30/2013
83,245
100,571
17,326
10 Toyota Corolla
Pool
2009 BZP 439 NC
75,000
9/30/2012
44,715
73,235
28,520
11 Toyota Corolla
Pool
2009 BZP 440 NC
75,000
9/30/2012
50,068
63,210
13,142
12 Toyota Condor
Tourism Centre
2001 BLR 461 NC
200,000 6/30/2013
171,370
191,842
20,472
13 Isuzu 2.4
Housing
2009 CBD 761 NC
60,000 2013/02/29
32,138
57,967
25,829
14
15
16
17
18
19
20
Pool
Community Development
Finance
PMU
Disaster Management
Disaster Management
PIMSS Centre
2008
2006
2004
2004
2010
2010
2002
97,169
103,365
76,985
110,175
2,241
1,703
142,110
116,888
117,594
81,748
120,075
13,525
11,785
159,725
19,719
14,229
4,763
9,900
11,284
10,082
17,615
Toyota Corolla
Nissan LDV
Ford Bantam
Toyota Hilux
Isuzu KB. 200
Isuzu KB. 200
Toyota Condor
BXL 799 NC
BVC 831 NC
BRD 836 NC
BRF 837 NC
CBY 895 NC
CBY 898 NC
BMT 978 NC
120,000
120000
90000
130000
15000
15000
165000
2013/02/29
7/31/2012
1/31/2013
2013/02/29
9/30/2012
9/30/2012
2013/02/29
YEAR TO DATE UTILITY - FULL FLEET
416,786
Volkswagen Microbus registration number BMG 088NC and Toyota LDV registration number
BMT 234 NC has been transferred to Magareng Municipality.
Motor Vehicle: Operating Cost
The actual operating costs of Council motor vehicles incurred for the year to date as required in
terms of the newly adopted motor vehicle fleet policy are set out below:
JUNE 2012
20
DEPARTMENT FINANCE
VEHICLE OPERATING COST
ACTUAL
Depreciation: Motor Vehicles
Insurance
MV Administration Levy
Fuel
Licence
Repairs and Maintenance
Tyres
TOTAL

JUNE 2012
BUDGET
VARIANCE
VAR %
4,470
19,739
564,646
6,232
97,386
25,807
513,980
55,000
16,000
610,000
12,650
90,000
64,600
(513,980) -100.00%
(50,530) -91.87%
3,739
23.37%
(45,354)
-7.44%
(6,418) -50.74%
7,386
8.21%
(38,793) -60.05%
718,279
1,362,230
(643,951) -47.27%
Motor Vehicle Damage Report
Mazda Double Cab, registration number BSM 137 NC has been taken in for repairs.
Chevrolet Cruze CBY 226 NC was damaged during March 2012. A report from the responsible
person has been requested and is still outstanding. A requisition has been made out for the repairs.
Motor Vehicle Tracker System
A new vehicle tracker system was installed on 22 December 2010 in all council’s pool vehicles by
Altech Netstar. A presentation of the system by Altech was done during the joint management
meeting held on 18 February 2011. All staff has been briefed about the system.
7.
FINANCIAL REPORTING AND BUDGETING
Budget Process:
The budget process plan in respect of the 2012/13 financial year has been submitted to the
Executive Mayor for approval on 27 July 2011 and has also been given to National Treasury. The
strategic planning session took place one 02-03 February 2012 at Christiana. This has the following
impact on the budget process plan:
DATE
17 February 2012
27 February 2012
09 March 2012
15 & 16 March 2012
28 March 2012
18 to 20 April 2012
08/09 May 2012
30 May 2012
ACTIVITY
Returns from Managers re budget due
Meet with Managers re budgets submitted
Completion of Draft Budget (Budget Office)
Draft Budget presented to Council
Draft Budget to be approved by Council
Review budgets with Managers & Budget
Committee
Budget consultation process
Approval of Final budget 2012/2013
Adjustment Budget 2011/2012:
The adjustment budget was tabled and approved on 25 January 2012 at a Council meeting. A
second adjustment budget was tabled and approved on 27 June 2012. The information reflected in
this report is based on movements of the second Adjustment Budget 2011/2012.
JUNE 2012
21
DEPARTMENT FINANCE
JUNE 2012
Monthly Reporting
Monthly financial reporting as per DoRA and MFMA requirements to Council, National &
Provincial Departments and other stakeholders have been adequately adhered to for the month
under review.
Financial Statements for the Year-ended 30 June 2011
The Annual Financial Statements for the year ended 30 June 2011 was submitted to the Audit
Committee and to the Auditor General on 31 August 2011 for Auditing. Audit Committee meeting
took place on 29 August 2011 to review and give input on the submission of the 2010/11 Financial
Statements. The District Municipality received a Qualified Audit Opinion for the 2010/11
Financial Year Audit.
8.
MFMA IMPLEMENTATION OVERSIGHT
Council’s progress on the implementation of the MFMA proceeds according to set targets and due
dates determined for a medium capacity municipality.
A comprehensive oversight report on the progress of implementation and compliance per MFMA
requirements is attached as Annexure “B”and “C” to this report.

Support to Local Municipalities
No support was requested or offered to Local Municipalities.
9. PERSONNEL
Personnel Attendances:
Personnel attendance in the workplace for June 2012 averages 88%. The reason for the deviations is
mainly due to study, annual, sick, and family responsibility leave.
Attendance trends are summarized as follows:
JUNE 2012
22
DEPARTMENT FINANCE
JUNE 2012
Senior
Middle
Supervisory
Management Management
Clerical
Number of Members
1
4
3
17
Leave
Sick Leave
Courses / Seminar
Meetings
Family Responsibility
Study
Maternity Leave
Union Matters
Absent
Special Leave (SAMSRA)
0
0
0
0
0
0
0
0
0
0
4
0
10
0
0
0
0
0
0
0
3
2
0
0
0
0
0
0
0
0
6
14
0
0
7
3
0
0
0
0
21
21
100%
88%
70
84
83%
37
42
88%
243
273
89%
No. of Workdays Attended
Total Workdays
Percentage attendance per Group
Average
Personnel Development:
On 04 -05 June 2012 two officials attended the Municipal Finance Management Programme
(MFMP).
10. INTERNSHIP PROGRAMME
As per National Treasury regulations, five Finance Interns were appointed (four on 15 February
2010 and one on 01 March 2010). The aim of the programme is to capacitate Finance graduates to
eventually be able to fill CFO and other financial posts in municipalities. Their appointment is for a
period of 24 to 36 months depending on completion of the programme.
They are being assisted in completing a personal development plan (PDP) and a Portfolio of
Evidence (POE) as per NT guidelines. Meetings are held with Interns to discuss their progress and
problems they may experience.
A training schedule has been drawn up. It is envisaged that they be exposed to all functions within a
municipality.
Various financial reconciliations have to be done on an ongoing basis and the Interns have been
given this task with various personnel responsible for these reconciliations, as their mentors.
All Interns have attended the Municipal Finance Management Programme and they have completed
the MFMA DVD learning programme. The Municipal Finance Management Programme was
completed on 20 April 2012. Therefore, the Internship contract that was to end on 29 February
2012 has been further extended to 31 July 2012 to give them practical exposure.
CONCLUSION
According to the results presented above for the period ending 30 June 2012, Council maintains a
healthy financial position with respect to its cash and reserves.
DIRECTOR: FINANCE
JUNE 2012
23