MAMUSA LOCAL MUNICIPALITY Section 52 Report
July – December 2015/16
Mamusa Local Municipality
LEGISLATIVE FRAMEWORK
Section 52(d) of the MFMA and Section 28 of Government Gazette Notice 32141 dated 17
April 2009, regarding the “Local Government: Municipal Finance Management Act of 2003 and
Municipal Budget and Reporting Regulations” necessitates that specific financial particulars be
reported on and in a prescribed format, hence this report to meet legislative compliance.
In terms of section 52(d) of the MFMA, “The mayor of a municipality –
(d) must, within 30 days of the end of each quarter, submit a report to the council on the
implementation of the budget and the financial state of affairs of the municipality;”
In terms of section 71(1) of the MFMA
“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 provincial treasury a
statement in the prescribed format on the state of the municipality’s budget reflecting the
following particulars for that month and for the financial year up to the end of that month “
The Municipal Budget and Reporting Regulations section 28 stipulates that:
“The monthly budget statement of a municipality must be in a format specified in Schedule C
and include all the required tables, charts and explanatory information, taking into account any
guidelines issued by the Minister in terms Section 168(1) of the Act”
Furthermore Section 31(1) prescribes the following:
“The mayor’s quarterly report on the implementation of the budget and financial state of affairs
of the municipality as required by Section 52(d) of the Act must be – 3
(a) In the format specified in Schedule C and include all the required tables charts and
explanatory information, taking into account any guidelines issued by the Minister in
terms Section 168(1) if the Act; and
(b) Consistent with the monthly budget statement for September, December, March and
June as applicable: and
(c) Submitted to the National Treasury and relevant Provincial Treasury within five (5) days
of tabling of the report in the council.
Furthermore the Municipal Budget and Reporting Regulations section 28 stipulates that:
“The monthly budget statement of a municipality must be in a format specified in Schedule C
and include all the required tables, charts and explanatory information, taking into account any
guidelines issued by the Minister in terms Section 168(1) if the Act”
Recommendations
That the council take note of the following items on the report:
Operating Revenue items



Property Rates
Service Charges
Other Revenue
Operating Expenditure items




Employee Related Cost
Council Remuneration
Other Expenditures
Contracted Services i.e. Financial System, Security services

Bulk Purchase i.e. Eskom
Investments Accounts Print-out



Library Account
MIG Account
Money Market Account
Supply Chain Management Report




Deviations from procurement process
unauthorized expenditure
irregular expenditure
Fruitless and Wasteful Expenditure
1.1 Introduction
The aim of this Financial Monitoring Report tool is to provide a regular update on indicators
critical to the organisation’s viability and this serve as a warning and also as an advice to
the accounting office.
1.2 Consolidated Performance
The below table is the Consolidated table of actual expenditure to date. It comprises of
Adopted Budget for 2015/16 and Actual expenditure for July - December 2015/16.
Total Revenue
Total Expenditure
Capital grants transfer
Deficit
Original Budget Adjusted budget Year to date Budget Actuals as at 31/06/2015 Variance
138,419,552.23 138,419,552.23
49,406,254.23
89,013,298.00 49,406,254.23
138,627,103.58 138,627,103.58
67,413,253.79
71,213,849.79 67,413,253.79
17,616,000.00
17,616,000.00
7,510,047.00
10,105,953.00
7,510,047.00
17,408,448.66
17,408,448.66
(10,496,952.55)
27,905,401.21 (10,496,952.55)
NW393 Mamusa - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - M06 December
2014/15
Description
Ref
Budget Year 2015/16
Audited
Original
Adjusted
Monthly
YearTD
YearTD
Outcome
Budget
Budget
actual
actual
budget
YTD
R thousands
Revenue By Source
Property rates
Property rates - penalties & collection charges
Serv ice charges - electricity rev enue
Serv ice charges - w ater rev enue
Serv ice charges - sanitation rev enue
Serv ice charges - refuse rev enue
Serv ice charges - other
Rental of facilities and equipment
Interest earned - ex ternal inv estments
Interest earned - outstanding debtors
Div idends receiv ed
Fines
Licences and permits
Agency serv ices
Transfers recognised - operational
Other rev enue
Gains on disposal of PPE
Total Revenue (excluding capital transfers and
YTD
Full Year
variance variance
Forecast
%
12,868
8,726
8,726
28,042
11,443
10,143
6,077
32,103
13,486
9,774
6,084
–
372
162
14,393
–
864
1,219
1,553
48,284
1,401
–
155,260
1,018
169
14,087
301
1,789
923
61,930
6,472
32,103
13,486
9,774
6,084
–
372
162
14,393
–
864
1,219
1,553
48,284
1,401
–
699,149
–
2,872,154
769,013
848,602
571,200
–
30,766
0
1,335,510
–
27,828
75,793
85,470
2,679
113,068
–
138,420
138,420
8,340
7,954
–
(243)
(4,043)
448
751
–
332
(157)
847
–
(709)
1,023
(235)
28,321
(338)
–
2061%
8,726
15,930
4,721
5,111
3,417
–
352
2
7,620
–
77
1,121
659
38,303
531
–
386
–
16,173
8,764
4,663
2,667
–
20
159
6,773
–
787
98
894
9,981
869
–
-2%
-46%
10%
28%
32,103
13,486
9,774
6,084
–
372
162
14,393
–
864
1,219
1,553
48,284
1,401
–
10,108
86,185
52,235
33,950
65%
44%
1649%
-99%
13%
-90%
1044%
-26%
284%
-39%
138,420
contributions)
Expenditure By Type
Employ ee related costs
44,289
43,527
43,527
4,244,576
25,675
17,852
7,823
Remuneration of councillors
4,111
5,000
5,000
370,147
2,921
2,079
842
41%
Debt impairment
6,850
30,777
30,777
655,699
4,079
26,698
(22,618)
-85%
27,483
10,325
10,325
10,325
(10,325)
-100%
43
500
500
0
800
(300)
1,100
-367%
Bulk purchases
23,093
28,001
28,001
0
12,430
15,571
(3,141)
-20%
Other materials
4,728
3,156
3,156
366,682
2,809
347
2,462
709%
Contracted serv ices
5,170
5,568
5,568
594,816
4,440
1,128
3,312
293%
14
(14)
28
-200%
10,741
1,032
9,709
940%
Depreciation & asset impairment
Finance charges
Transfers and grants
Other ex penditure
–
38,600
Loss on disposal of PPE
Total Expenditure
Surplus/(Deficit)
Transfers recognised - capital
11,773
–
154,367
138,627
–
11,773
–
138,627
–
–
–
2,240,052
–
–
–
8,472
63,909
74,718
(10,808)
-14%
–
893
(208)
(208)
1,636
22,275
(22,483)
44,758
(0)
20,183
17,616
17,616
3,565,535
15,029
2,587
12,442
0
Contributions recognised - capital
138,420
–
Contributed assets
Surplus/(Deficit) after capital transfers &
–
–
21,076
17,408
17,408
5,202
37,305
(19,896)
138,420
21,076
17,408
17,408
5,202
37,305
(19,896)
138,420
21,076
17,408
17,408
5,202
37,305
(19,896)
138,420
21,076
17,408
17,408
5,202
37,305
(19,896)
138,420
Total Rev enue (ex cluding capital transfers and contributions) including capital
175,443
transfers/contributions
156,036
etc
156,036
13,674
101,214
54,822
138,420
contributions
Tax ation
Surplus/(Deficit) after taxation
–
Attributable to minorities
Surplus/(Deficit) attributable to municipality
Share of surplus/ (deficit) of associate
Surplus/ (Deficit) for the year
References
1. Material variances to be explained on Table SC1
Total revenue (Incl. grants)
Above is the C4 – Financial Performance schedule for the Municipality. The actual total
revenue including grants from July to December 2015/16 is at R 55 376 000 and Total
expenditure is at R 30 603 000. It shows that the council is operating at an actual projected
Surplus of R23 408 000. The Financial Performance is prepared in the accrual basis.
Operating Revenue by Source
The table indicates billing for service charges for property rates, water, electricity, sanitation
and refuse. Billing for property rates reflects expected revenue of R6 378 000 from July to
September 2015/16, this is almost triple the Year to date budget but this is due to the fact that
certain debtors, i.e. agricultural land and public works department properties are billed once off
for the whole year early in the 1st quarter, meaning billing Is expected to be less for the next
coming quarters. Property rates billing for July: R4 977 771, August: R700 592 and September:
R825 646, of the R6 378 000 only R1 932 000 was cash actually collected, as disclosed in
Table C7.
Services charges
Services charges averaged at 31.8% between billing and the Year to date budget, meaning we
were only able to bill 31.8% of what was budgeted for, the only highest service charge closest
to the budget this quarter is Services charges – Refuse revenue standing at a 39% billing
against Year to date budget. Table C7 indicates that from the Services charges Year to date,
R7 760 000 was actual cash collected from a total billing of R14 830 000.
Licences and permits
Licences and permits for the first quarter has come to just over triple the amount of the year to
date budget, Revenue from this came to R936 000 and the Year to date budget is R283 000.
The R936 000 disclosed here is all actual cash received.
Revenue from operating grants
Revenue from operating grants is at 94% of the year to date budget. Operating grants received
came to R 23 443 288 out of the budgeted year to date of R 24 841 000, which we have
received the majority of the operating grant that was due to us this quarter.
Other revenue
Other revenue collected is R 267 189 (24%), other revenue collected includes entrance fee
and fishing at Wentzel dam, Insurance claim, Clearance certificate, connection fee, reconnection fee, Plans and Private works.
Total revenue
Total Revenue came to a shortfall of R38 434 000 (43% variance) as at the end of the first
quarter.
Operating Expenditure by type
In accordance with Municipal Finance Management Act No. 56 of 2003 section 99, this deals
with expenditure management. Section 99(2) the accounting officer has taken all reasonable
steps to ensure that – Internal controls are in place such as procedure for authorization,
approval, withdrawals and payment of funds. Even though the table below shows no
unauthorised expenditure, on the attached departmental income and expenditure report for
September 2015-16 it will reflect unauthorised expenditure per vote or per department but the
overall expenditure is still within the budget.
Other expenditure includes LED projects, travel and subsistence claim, Advertising, Cleaning
Materials, printing and stationery and etc. (attached financial status quo report and Traffic
Income and Expenditure Report). Contracted services includes payments to financial system
(munsoft), VIP payroll system, Fintech, Security Services, Telkom, Valuations and other.
Management to note that Depreciation is non- cash item but provision has to be made for it.
Employee related costs
Employee related costs and remuneration of councillors actual comes to only 36% of the
budgeted year to date amount, this could be due to posts budgeted for in the first quarter that
have not been filled as yet, the surplus might decrease in the coming quarters as appointments
are made also the annual increases were only applied in the 2 nd quarter whereas it was already
budgeted for in the 1st quarter.
NW393 Mamusa - Supporting Table SC8 Monthly Budget Statement - councillor and staff benefits - M03 September
2014/15
Summary of Employee and Councillor remuneration
Ref
Budget Year 2015/16
Audited
Original
Adjusted
Monthly
YearTD
YearTD
Outcome
Budget
Budget
actual
actual
budget
YTD
YTD
variance variance
R thousands
Full Year
Forecast
%
1
A
B
C
D
Councillors (Political Office Bearers plus Other)
Basic Salaries and Wages
1,852
1,852
185
384
1,468
(1,084)
-74%
Pension and UIF Contributions
355
355
67
76
279
(204)
-73%
Medical Aid Contributions
215
215
18
21
194
(173)
-89%
Motor Vehicle Allow ance
1,182
1,182
85
157
1,025
(868)
-85%
Cellphone Allow ance
536
536
–
28
508
(480)
-95%
Housing Allow ances
288
288
24
17
270
(253)
-94%
46
46
266
3
42
(39)
-93%
4,473
4,473
645
686
3,787
(3,100)
-82%
Other benefits and allow ances
Sub Total - Councillors
% increase
Senior Managers of the Municipality
–
4
#DIV/0!
3
Basic Salaries and Wages
Pension and UIF Contributions
3,081
2,144
2,144
243
715
1,429
(714)
-50%
73
16
16
26
65
(49)
114
-233%
187
187
–
–
187
(187)
-100%
–
–
–
–
–
–
576
576
–
–
576
(576)
784
784
–
126
658
(533)
-81%
103
103
82
82
21
61
292%
Medical Aid Contributions
Ov ertime
Performance Bonus
Motor Vehicle Allow ance
981
Cellphone Allow ance
Housing Allow ances
-100%
1,572
1,572
–
–
1,572
(1,572)
-100%
Other benefits and allow ances
74
74
11
34
40
(6)
-16%
Pay ments in lieu of leav e
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Long serv ice aw ards
Post-retirement benefit obligations
2
Sub Total - Senior Managers of Municipality
% increase
–
#DIV/0!
4,135
4
5,457
32.0%
5,457
–
362
1,022
4,435
(3,414)
-77%
–
32.0%
Other Municipal Staff
Basic Salaries and Wages
26,706
19,096
19,096
2,282
4,225
14,871
(10,645)
-72%
680
4,378
4,378
668
998
3,380
(2,382)
-70%
Medical Aid Contributions
2,965
3,461
3,461
–
280
3,182
(2,902)
-91%
Ov ertime
4,098
2,370
2,370
440
791
1,579
(788)
-50%
–
–
Pension and UIF Contributions
Performance Bonus
–
Motor Vehicle Allow ance
3,353
Other benefits and allow ances
Post-retirement benefit obligations
2,608
382
684
1,924
(1,239)
-64%
122
–
14
108
(94)
-87%
910
374
374
–
69
305
(236)
-77%
5,375
5,021
5,021
349
721
4,300
(3,579)
-83%
116
% increase
Total Parent Municipality
–
–
–
–
–
–
639
639
–
–
639
(639)
–
–
–
–
–
–
2
Sub Total - Other Municipal Staff
–
122
Pay ments in lieu of leav e
Long serv ice aw ards
–
2,608
Cellphone Allow ance
Housing Allow ances
–
44,203
4
38,070
-13.9%
48,338
48,000
38,070
-100%
4,121
7,782
30,288
(22,505)
-74%
–
5,128
9,490
38,510
(29,019)
-75%
–
-13.9%
48,000
Repairs and maintenance
Repairs and maintenance Year to date came to an amount of R1 328 000 which is 51.4% of
the budget, this is also demonstrated in Table SC13c.
NW393 Mamusa - Supporting Table SC13c Monthly Budget Statement - expenditure on repairs and maintenance by asset class - M03 September
2014/15
Description
R thousands
Ref
Budget Year 2015/16
Audited
Original
Adjusted
Monthly
YearTD
YearTD
Outcome
Budget
Budget
actual
actual
budget
YTD
YTD
variance variance
1
Full Year
Forecast
%
Repairs and maintenance expenditure by Asset Class/Sub-class
Infrastructure
Infrastructure - Road transport
Roads, Pavements & Bridges
2,950
2,389
2,389
547
857
1,533
676
44.1%
–
2,950
298
298
7
76
221
145
65.6%
–
2,950
298
298
7
76
221
145
65.6%
1,725
1,725
1
2
1,723
1,722
Storm water
Infrastructure - Electricity
–
–
Generation
Transmission & Reticulation
1,725
1,725
1
2
1,723
Street Lighting
Infrastructure - Water
–
–
1,722
–
0
42
(42)
–
(85) 200.0%
0
42
(42)
(85) 200.0%
Reticulation
367
367
538
734
(367)
(1,101) 300.0%
367
367
538
734
(367)
(1,101) 300.0%
–
–
1
3
(3)
Sewerage purification
(6) 200.0%
–
Transportation
–
Gas
–
–
–
1
3
–
82
82
(3)
–
(6) 200.0%
(82) #DIV/0!
Parks & gardens
–
Sportsfields & stadia
–
Sw imming pools
–
Community halls
1
1
(1)
Recreational facilities
–
Security and policing
81
81
(81) #DIV/0!
Buses
–
Clinics
–
Museums & Art Galleries
–
Cemeteries
–
Social rental housing
–
Other
–
–
–
–
–
–
–
Buildings
–
–
–
–
–
–
–
2,438
1,590
1,590
48
389
1,201
812
67.6%
1,024
786
786
48
287
499
213
42.6%
–
–
–
–
–
–
804
804
–
103
702
599
–
1,347
Computers - hardw are/equipment
1
Furniture and other office equipment
6
–
–
–
85.4%
–
–
Abattoirs
–
Markets
–
Civ ic Land and Buildings
–
60
–
Other Land
–
Surplus Assets - (Inv estment or Inv entory )
–
Other
–
Agricultural assets
–
–
Other
Other Buildings
–
–
–
–
Housing dev elopment
Plant & equipment
–
–
Other
Specialised v ehicles
#DIV/0!
–
Fire, safety & emergency
General v ehicles
–
–
Libraries
Other assets
–
–
Other
Investment properties
–
–
–
Waste Management
Heritage assets
–
–
–
Reticulation
Community
99.9%
–
Water purification
Infrastructure - Other
–
–
Dams & Reservoirs
Infrastructure - Sanitation
99.9%
–
–
–
–
–
–
–
List sub-class
–
–
–
–
Biological assets
–
–
–
–
–
–
List sub-class
–
–
–
–
Intangibles
–
–
–
–
–
–
–
Computers - softw are & programming
–
Other
–
Total Repairs and Maintenance Expenditure
5,389
3,979
3,979
677
1,328
2,734
1,405
–
51.4%
–
Depreciation
Depreciation shall generally take the form of an expense both calculated and debited on a
monthly basis against the appropriate line item in the department or vote in which the asset
is used or consumed. Depreciation for the 1st quarter has not been yet recognised as this used
to be an exercise we performed on an annual basis.
Total expenditure
Total expenditure is still below the approved budget as we have only used 28.33%, (R30 603
000 being the actual expenditure as at September 2015/16 and R108 024 000 being the year
to date budget), of the total year to date budget.
Investment Summary
The withdrawals are from investments accounts to the primary bank account. The municipality
does not have enough reserves to investment.
Investment Accounts
Type of Investment
MIG Investment
Library Investment
HUMAN SETTLEMENT - Investment
Total
Account No
62299708506
62245772050
62033415771
Openning
Balance
R 19 895.74
R 20 828.54
R 9 039.25
R 49 763.53
Withdrawals/
Fees
R 0.00
R 0.00
R 57.00
R 57.00
Deposits
R 0.00
R 0.00
R 0.00
R 0.00
Interest
Closing Balance
R 31.01 R 19 926.75
R 59.44 R 20 887.98
R 36.10 R 9 018.35
R 126.55 R 49 833.08
Cash Flow
The table below for cash flow reflects a deficit at September amounts to R 698 830
NW393 Mamusa - Table C7 Monthly Budget Statement - Cash Flow - M03 September
2014/15
Description
R thousands
Ref
Budget Year 2015/16
Audited
Original
Adjusted
Monthly
YearTD
YearTD
Outcome
Budget
Budget
actual
actual
budget
YTD
YTD
variance variance
1
Full Year
Forecast
%
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Property rates, penalties & collection charges
8,146
6,766
6,766
826
1,932
4,834
(2,901)
31,746
31,729
31,729
2,962
7,760
23,969
(16,209)
-68%
3,952
5,408
5,408
947
4,387
1,021
3,366
330%
Gov ernment - operating
47,365
60,594
60,594
2,000
27,218
33,376
(6,158)
-18%
Gov ernment - capital
26,529
17,306
17,306
6,000
11,306
(5,306)
-47%
169
162
162
117
221
(59)
280
-472%
–
–
–
–
–
–
Serv ice charges
Other rev enue
Interest
Div idends
–
-60%
Payments
Suppliers and employ ees
Finance charges
(91,421)
(97,893)
(97,893)
(7,503)
(39,526)
(58,367)
(18,840)
32%
(2,612)
(1,212)
(1,212)
(303)
(701)
(511)
190
-37%
23,874
22,860
Transfers and Grants
NET CASH FROM/(USED) OPERATING ACTIVITIES
–
–
22,860
–
(955)
–
7,291
–
15,569
–
8,278
53%
–
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE
–
Decrease (Increase) in non-current debtors
1,800
–
1,800
–
–
–
–
–
–
–
–
Decrease (increase) other non-current receiv ables
–
–
–
–
–
–
Decrease (increase) in non-current inv estments
–
–
–
–
–
–
Payments
Capital assets
NET CASH FROM/(USED) INVESTING ACTIVITIES
–
(28,623)
(28,623)
(2,664)
(6,501)
(22,122)
(15,621)
71%
(26,823)
(26,823)
(2,664)
(6,501)
(22,122)
(15,621)
71%
–
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
–
–
–
–
–
–
Borrow ing long term/refinancing
–
–
–
–
–
–
Increase (decrease) in consumer deposits
–
–
–
(5)
10
–
–
–
–
–
–
5
-200%
Payments
Repay ment of borrow ing
NET CASH FROM/(USED) FINANCING ACTIVITIES
NET INCREASE/ (DECREASE) IN CASH HELD
Cash/cash equiv alents at beginning:
Cash/cash equiv alents at month/y ear end:
–
(3,619)
–
–
–
5
(5)
(10)
794
(6,558)
200%
–
23,874
(3,963)
(3,963)
1,130
5,076
5,076
11,476
5,076
11,476
–
25,004
1,113
1,113
12,271
(1,482)
11,476
Consolidated Grants Report for 2015/16
Council has spent R 263 148 of the Financial Management grant allocated to it. Municipal
Infrastructure Grant council has spent R 8 289 186 of the allocations from DORA 2015/16.
Conditional grants performance per grant type 2015/16
Description R thousand
Budget 2015/16
Operating Grants
National Grants :
Municipal System Improvement
Finance Management
EPWP Incentive
District Municipality :
EPWP Incentive
Capital Expenditure Grants :
National Grants :
Municipal Infrastructure Grant
Actual
Expenditure
Sept 2015/16
R 3 974 000.00
R 930 000.00
R 1 875 000.00
R 1 169 000.00
R 0.00
R 0.00
R 15 306 000.00
R 110 397.10
R 12 000.00
R 55 025.10
R 43 372.00
R 0.00
R 0.00
R 1 867 122.00
R 15 306 000.00
R 1 867 122.00
Expenditure To
Date 2015/16
Available
Budget
2015/16
R 365 513.06
R 12 000.00
R 263 148.06
R 90 365.00
R 0.00
R 0.00
R 8 289 186.00
R 3 608 486.94
R 918 000.00
R 1 611 851.94
R 1 078 635.00
R 0.00
R 0.00
R 7 016 814.00
R 0.00
R 8 289 186.00 R 7 016 814.00
Projects Schedules
Kindly note the attached Commitments register. The projects below are from previous
financial year.
Commitments or Project Summary
Capital Expenditure
Budget 2015/16
Actual
or Contracted Expenditure
Project Name
Amount
August 2015/16
King & Associates Engineerings
R 4 034 093.15
R 0.00
Rehabilitation of sports ground Molatsaneng
R 2 325 881.00
R 0.00
Wentzel Dam Irrigation and Accessories
R 475 605.00
R 0.00
Rehabilitation of sports ground Ipelegeng
R 1 827 203.40
R 0.00
Construction of Road Molatswaneng
R 9 860 408.91
R 0.00
Construction of new Library Ipelegeng
R 7 404 246.11
R 0.00
Construction of Com Hall in Molatswaneng
R 3 754 275.36
R 0.00
Cons of Street to Graveyard & Ablution Block
R 3 374 844.74
R 0.00
Ward 5 Community Hall
R 3 832 249.08
R 182 140.63
CONS OF VARIOUS STREETS IN IPELEGENG
R 5 132 082.78
R 0.00
Community Lighting in Various Wards
R 1 689 307.16
R 0.00
Total
R 43 710 196.69
R 182 140.63
Capital Expenditure.
Expenditure to
Retention 10%
date
R 6 189 309.94
R 0.00
R 2 061 793.05 R 206 225.41
R 667 762.25
R 0.00
R 1 414 438.95 R 143 818.42
R 5 704 909.34 R 858 180.40
R 2 734 767.73 R 253 839.00
R 1 093 716.00 R 109 371.60
R 3 196 061.18 R 199 358.71
R 3 087 843.46 R 283 206.87
R 6 099 936.08 R 495 395.24
R 1 203 186.81 R 167 388.87
R 33 453 724.79 R 2 716 784.52
Available
Budget or
Contract
-R 2 155 216.79
R 264 087.95
-R 192 157.25
R 412 764.45
R 4 155 499.57
R 4 669 478.38
R 2 660 559.36
R 178 783.56
R 744 405.62
-R 967 853.30
R 486 120.35
R 10 256 471.90
Capital expenditure is shown in the below Table C5, the listed expenditure is projects that
started in the last financial year, those started in the current financial year and other assets
that were purchased.
Capital expenditure for the first quarter is more than the projected July to September budget,
this can be seen in the graph below Table C5. Community services and public services had
the highest expenditure at an amount of R4 189 000 (Community halls) followed by
Economic and environmental services – Road transport at R2 709 000 (Paving project).
The reason for the community and social services to have exceeded the budget is that the
administration regrettably omitted a grant for the construction of the library, this matter shall
be addressed in the adjustment budget.
2014/15
Vote Description
R thousands
Ref
Budget Year 2015/16
Audited
Original
Adjusted
Monthly
YearTD
YearTD
Outcome
Budget
Budget
actual
actual
budget
YTD
YTD
variance variance
1
Full Year
Forecast
%
Capital Expenditure - Standard Classification
Governance and administration
–
–
–
–
Ex ecutiv e and council
–
Budget and treasury office
–
Corporate serv ices
–
Community and public safety
–
Community and social serv ices
64
(64)
(64)
127
-200%
1,410
2,697
4,189
(2,779)
6,969
-251%
210
210
2,697
4,189
(3,979)
8,169
-205%
1,200
1,200
1,200
(1,200)
Housing
–
Planning and dev elopment
23,654
–
Road transport
23,654
23,654
–
23,654
Env ironmental protection
287
–
287
–
2,734
25
2,709
20,944
–
20,944
–
Trading services
–
Electricity
(18,210)
25
(18,235)
-87%
–
#DIV/0!
-87%
–
3,560
3,560
–
350
3,210
(2,860)
-89%
3,560
3,560
–
350
3,210
(2,860)
-89%
Water
–
–
–
Waste w ater management
–
–
–
Waste management
–
–
–
Other
Total Capital Expenditure - Standard Classification
-100%
–
–
–
–
–
–
–
Health
–
–
64
–
Economic and environmental services
-200%
–
1,410
Sport and recreation
Public safety
127
–
–
3
–
28,623
28,623
2,984
7,336
21,311
(13,975)
-66%
17,306
17,306
1,822
5,726
11,580
(5,855)
-51%
210
210
1,162
1,162
(952)
2,113
-222%
–
Funded by:
National Gov ernment
Prov incial Gov ernment
District Municipality
–
Other transfers and grants
–
Transfers recognised - capital
–
Public contributions & donations
5
Borrowing
6
17,516
2,984
6,887
10,629
–
(3,742)
-35%
–
–
–
Internally generated funds
Total Capital Funding
17,516
–
–
11,107
11,107
28,623
28,623
–
2,984
–
449
10,658
(10,209)
-96%
7,336
21,287
(13,951)
-66%
–
Age Debtors Analysis
The report indicates debtor per category from household, Government, and Business. Its main focus is on trading services owed to the
municipality by the above mentioned clients. The analysis takes into consideration from 30 days to 180 days period. The report is for September
2015/16 which indicates that our debtors’ book stands at R 165 903 891 for over a year period. The household debt to the municipality at 30
days is R 4 889 050, and most of this debt is from the township.
Detail
Debtors Age Analysis By Income Source
Trade and Other Receivables - Water
Trade and Other Receivables - Electricity
Receivables - Property Rates
Receivables - Waste Water Management
Receivables - Waste Management
Receivables - Property Rental Debtors
Interest on Arrear Debtor Accounts
Recoverable unauthorised, irregular or
fruitless and wasteful Expenditure
Other
Total By Income Source
Debtors Age Analysis By Customer Group
Organs of State
Commercial
Households
Other
Total By Customer Group
030 Days
31 60 Days
61 90 Days
91 120 Days
R 620 614.00
R 396 760.00
R 346 440.00
R 669 051.00
R 419 938.00
R 0.00
R 0.00
121 150 Days
R 1 153 112.00
R 625 019.00
R 2 276 852.00
R 1 628 446.00
R 789 731.00
R 0.00
R 0.00
Over 1
Year
R 21 246 125.00
R 4 832 459.00
R 6 035 934.00
R 24 336 510.00
R 16 705 128.00
R 0.00
R 0.00
Total
-
R 907 777.00
R 1 872 971.00
R 658 573.00
R 762 346.00
R 500 166.00
R 0.00
R 0.00
R 695 649.00
R 1 013 013.00
R 360 039.00
R 699 093.00
R 455 999.00
R 0.00
R 0.00
R 624 826.00
R 603 292.00
R 4 248 768.00
R 664 169.00
R 435 017.00
R 0.00
R 0.00
R 25 248 103.00
R 9 343 514.00
R 13 926 606.00
R 28 759 615.00
R 19 305 979.00
R 0.00
R 0.00
R 1 279 615.00
R 456 001.00
R 6 437 449.00
R 1 206 942.00
R 374 984.00
R 4 805 719.00
R 1 174 665.00 R 1 160 450.00
R 353 166.00 R 666 016.00
R 8 103 903.00 R 4 279 269.00
R 2 429 433.00 R 46 998 719.00 R 54 249 824.00
R 628 602.00 R 12 591 481.00 R 15 070 250.00
R 9 531 195.00 R 132 746 356.00 R 165 903 891.00
R 159 404.00
R 1 057 653.00
R 4 889 050.00
R 331 342.00
R 6 437 449.00
R 42 314.00
R 445 178.00
R 3 791 295.00
R 526 932.00
R 4 805 719.00
R 1 564 165.00 R 256 292.00
R 326 368.00 R 237 109.00
R 3 547 725.00 R 3 675 319.00
R 2 665 645.00 R 110 549.00
R 8 103 903.00 R 4 279 269.00
R 304 885.00
R 2 101 414.00
R 4 437 148.00
R 0.00
R 3 110 729.00
R 5 177 037.00
R 0.00 R 130 691 152.00 R 146 594 541.00
R 9 226 310.00
-R 3 156 939.00
R 9 695 165.00
R 9 531 195.00 R 132 746 356.00 R 165 903 891.00
Age Creditors Analysis
The table indicates our Creditors’ book for the period of over a year stood at R 30 729 349.The
creditors range from 30 days to 180 days Period. Bulk purchase or the council debt to Eskom
is R 30 077 734 and the council has made commitment to settle the debt.
Detail
Bulk Electricity
Bulk Water
PAYE deductions
VAT (output less input)
Pensions / Retirement deductions
Loan repayments
Trade Creditors
Auditor General
Other
Total
Top 1 Creditor
Top 2 Creditor
Top 3 Creditor
Top 4 Creditor
Top 5 Creditor
Top 6 Creditor
Top 7 Creditor
Top 8 Creditor
Top 9 Creditor
Top 10 Creditor
Total
030 Days
2 686 347
0
0
0
0
432 868
211 732
0
3 330 947
0
0
0
0
0
0
0
0
0
0
0
31 60 Days
4 272 493
0
0
0
0
0
1 015
0
0
4 273 508
0
0
0
0
0
0
0
0
0
0
0
61 90 Days
2 610 344
0
0
0
0
0
6 000
0
0
2 616 344
0
0
0
0
0
0
0
0
0
0
0
91 120 Days
2 924 687
0
0
0
0
0
0
0
0
2 924 687
0
0
0
0
0
0
0
0
0
0
0
121 150 Days
1 807 484
0
0
0
0
0
0
0
0
1 807 484
0
0
0
0
0
0
0
0
0
0
0
151 180 Days
1 767 870
0
0
0
0
0
0
0
0
1 767 870
0
0
0
0
0
0
0
0
0
0
0
181 Days 1 Year
1 804 592
0
0
0
0
0
0
0
0
1 804 592
0
0
0
0
0
0
0
0
0
0
0
Over 1
Year
12 203 917
0
0
0
0
0
0
0
0
12 203 917
0
0
0
0
0
0
0
0
0
0
0
Total
30 077 734
0
0
0
0
0
439 883
211 732
0
30 729 349
0
0
0
0
0
0
0
0
0
0
0
Monthly Billing v/s Payments per Service Charge and Property Rates
The table below shows Billing v/s collection monthly as stated, indicating them with the
percentage of how much revenue was generated. Kindly note that our revenue depends on
Electricity and Property rates under collection which is mostly associated with Ipelegeng
Township.
Municipal Monthly Collection Rate Per Service Charge and Propery Rates
2015/2016
Property Rates
(MC003-020002)
Billing
Receipts
Collection Rate %
31-Jul-15
R 4 977 771.37
R 406 812.67
8%
Electricity Charges
(MC016-080002 &
MC 016-080006)
Billing
Receipts
Collection Rate %
31-Jul-15
31-Aug-15
30-Sep-15
Total
R 2 146 747.87 R 3 013 092.00 R 976 619.23 R 6 136 459.10
R 1 371 427.54 R 1 419 997.91 R 1 926 728.00 R 4 718 153.45
64%
47%
197%
77%
Water (MC0019080004 & 080006)
Billing
Receipts
Collection Rate %
Refuse Removal
(MC010-080006)
Billing
Receipts
Collection Rate %
31-Aug-15
R 700 592.19
R 702 825.44
100%
30-Sep-15
Total
R 700 107.19 R 6 378 470.75
R 825 656.00 R 1 935 294.11
118%
30%
31-Jul-15
R 672 960.01
R 164 706.61
24%
31-Aug-15
R 824 838.40
R 277 080.93
34%
30-Sep-15
R 958 682.68
R 236 807.00
25%
31-Jul-15
R 569 159.18
R 63 848.99
11%
31-Aug-15
R 569 429.66
R 102 714.39
18%
30-Sep-15
R 568 904.71
R 97 411.00
17%
31-Aug-15
R 848 446.83
R 163 843.00
19%
30-Sep-15
R 847 202.15
R 153 036.00
18%
Sanitation/Sewerag
e (MC017-080002)
31-Jul-15
Billing
R 846 878.99
Receipts
R 111 891.66
Collection Rate %
13%
Overall Collection Rate
Amount
Total Billied
R 19 221 432.46
Total Receipts
R 8 024 787.14
%
41.75
Total
R 2 456 481.09
R 678 594.54
28%
Total
R 1 707 493.55
R 263 974.38
15%
Total
R 2 542 527.97
R 428 770.66
17%
MONTHLY SUPPLY CHAIN MANAGEMENT REPORT – JULY TO SEPTEMBER 2015/16
Fruitless and wasteful expenditure
The concept of fruitless and wasteful expenditure is founded on public administration and
accountability principles, to promote “efficient, economic and effective use of resources and
the attainment of value for money”. The idea is also founded on the fact that the council, the
mayor and the accounting officer have a fiduciary responsibility to ensure that municipal
resources are used in the best interests of the municipality and the local community.
1st Quarter
Dep :
Account :
Trans Date
Journal No
31/08/2015
' 773200741571
31/08/2015
'846032332072.
31/08/2015
'846032332072'
31/08/2015
' 846032332072
27/08/2015
'846031008414.
27/08/2015
' 846031008414
2015/12/08 '8092950115-INTE
2015/12/08 '8092950115
2015/07/08 '.508A1024207M
28/07/2015
'LPI15074_201504
TOTAL
3 BUDGET & TREASURY OFFICE
500069 Penalties and Interest
Remarks
Eskom
Eskom
Eskom
Eskom
Eskom
Eskom
Eskom
Eskom
Telkom
N F M W Pensioenfonds (64
Source Code
CRS
CRS
CRS
CRS
CRS
CRS
CRS
CRS
CRS
CRS
PayDocNo
EF006124-0005
EF006124-0004
EF006119-0002
EF005969-0001
Amount
5.63
211935.94
5732.19
8956.03
158330.56
11117.82
589.25
559.62
824.46
327.72
398379.22
IRREGULAR EXPENDITURE
Disciplinary charges for irregular expenditure
If the irregular expenditure falls within the ambit of the above description, then the council,
mayor or accounting officer (as may be relevant) must institute disciplinary action as follows:
(i) Financial misconduct in terms of section 171 of the MFMA: in the case of an official that
deliberately or negligently:
-compliance with any of
legislation mentioned in the definition of irregular expenditure);
(ii) Breach of the Code of Conduct for Municipal Staff Members: in the case of an official whose
actions in making, permitting or authorizing an irregular expenditure constitute a breach of the
Code; and
(iii) Breach of the Code of Conduct for Councilors: in the case of a political office-bearer, whose
actions in making, permitting or authorizing an irregular expenditure constitute a breach of the
Code. This would also include instances where a councilor knowingly voted in favor or agreed
with a resolution before council that contravened legislation resulting in irregular expenditure
when implemented, or where the political office-bearer improperly interfered in the
management or administration of the municipality.
Company Name
Project Description
Initial Contract Amount
Extension Amount Extension date
Comment
The cost of the variations on
the project exceeds the
contingencies allowed on the
project and are above 20% of
2015/09/07 the project value.
Marups Trading and Projects
Construction of various streets
in Ipelegeng
R110,922.00
R906,881.40
R906,881.40
Department
Comment
Reason
Amount
Technical Service - Water
Urgent Procurement of Floc
builder for water purification
plant
Urgent
R169,575.00
Service
Date
Procuring Floc builder to
reduce algea and odour,
oxidize pollutants and remove
INO Water Services pathogenic organisms
17/07/2015
Traffic Department
Only one quote was sourced due
to the urgency of the matter.
Urgent
R37,506.00
Gunnebo T/A Chubb Installation of strong room
Security
door and supply of safe
Technical Service - Sewer
Service exceeds R30.000 and was
not advertised. SCM procedure
not followed.
Urgent
Technical Service - Water
Service exceeds R30.000 and was
not advertised. SCM procedure
not followed.
Urgent
Company
R186,390.00
JVR Enterprise
Rental of high pressure sewer
jet Truck for 15 days for
sweeping of sewer networks.
R123,690.00
HYDRO SOL
ENTERPRISE (PTY)
LTD
Replacement of post and pre
chlorination system at water
purification
14/08/2015
Supply and installation of
electric meters
14/08/2015
RS Rekopane
Technical Service - Electricity Service exceeds R30.000 and was not
Urgent
advertised. R125,628.00
SCM procedure not followed.
Projects
Budget & Treasury
Technical Service - Sewer
Technical Service - Sewer
2015/02/07
28/07/2015
Annual Review of
Determination of the provision
for the closure costs for landfill
R69,483.00
site.
14/08/2015
Rental of a Sewer Jet Truck for
10 days for sweeping of 10km
Excellence Business sewer pipes network which
Service exceeds R30.000 and was not
Urgent
advertised. R120,840.00
SCM procedure not followed.
Academy
has bocked.
2015/04/09
Service exceeds R30.000 and was
not advertised. SCM procedure
not followed.
Urgent
ESS Environmental
& Sustainability
Solutions CC
Service exceeds R30.000 and was not
Urgent
advertised. R124,260.00
SCM procedure not followed.
JVR Enterprise
R957,372.00
Rental of a Sewer Jet Truck for
10 days for sweeping of 10km
sewer pipes network which
has bocked.
2015/04/09
DEVIATIONS FROM PROCUREMENT PROCESS
Services exceeds R30.000 and were not advertised. SCM procedure not followed. Only one
quote was sourced due to the urgency of the matter.
Date service
was
rendered
DEPARTMENT
DEVIATION
REASON FOR
DEVIATION
16/07/2015
Technical Service
14/07/2015
Traffic Department
Urgent Procurement of Floc
builder for water
purification plant
Urgent
Only one quote was
sourced due to the urgency
of the matter.
Urgent
Technical Service
Service exceeds R30.000
and was not advertised.
SCM procedure not
followed.
Technical Service
Service exceeds R30.000
and was not advertised.
SCM procedure not
followed.
Budget & Treasury
Service exceeds R30.000
and was not advertised.
SCM procedure not
followed.
28/07/2015
14/08/2015
14/08/2015
2015/04/09 Technical Service
Service exceeds R30.000
and was not advertised.
SCM procedure not
followed.
2015/04/09 Technical Service
Service exceeds R30.000
and was not advertised.
SCM procedure not
followed.
15/09/2015
Technical Service
Service exceeds R30.000
and was not advertised.
SCM procedure not
followed.
Urgent
Urgent
Urgent
Urgent
Urgent
Urgent
AMOUNT
LOWEST QUOTE Supplier
SERVICE
R169,575.00
R169,575.00
Procuring Floc builder to
reduce algea and odour,
oxidize pollutants and remove
INO Water Services pathogenic organisms
R37,506.00
R37,506.00
Gunnebo T/A
Chubb Security
Installation of strong room door
and supply of safe
R186,390.00
R186,390.00
JVR Enterprise
Rental of high pressure sewer
jet Truck
R123,690.00
HYDRO SOL
ENTERPRISE (PTY)
LTD
Replacement of post and pre
chlorination system at water
purification
R69,483.00
ESS Environmental
& Sustainability
Solutions CC
Annual Review of
Determination of the provision
for the closure costs for landfill
site.
Excellence
Business Academy
Rental of a Sewer Jet Truck for
10 days for sweeping of 10km
sewer pipes network which has
bocked.
R124,260.00
JVR Enterprise
Rental of a Sewer Jet Truck for
10 days for sweeping of 10km
sewer pipes network which has
bocked.
R169,575.00
Procurement of floc builder
chemical to control algae and
INO Water Services enhance flocs molecular
(Pty) Ltd
weight.
R123,690.00
R69,483.00
R120,840.00
R124,260.00
R169,575.00
R120,840.00
I, Rantsho Gincane, Municipal Manager certify that the report compiled is the true reflection
of the municipality financial report.
……………………………..
R. R. Gincane
Municipal Manager
……………………………….
Date (DD/MM/YYYY)
……………………………...
A. Motswana
Hon. Mayor
………………………………..
Date (DD/MM/YYYY)