WC015 Swartland AFS 2014-15 audited

4.2 MB·English

Audited Annual
Financial Statements
2014/2015
SWARTLAND MUNICIPALITY
INDEX Page
General Information 1 - 2
Approval of Annual Financial Statements 3
Statement of Financial Position 4
Statement of Financial Performance 5
Statement of Changes in Net Assets 6
Statement of Cash Flows 7
Statement Of Comparison Of Budget And Actual Amounts 8 - 15
Accounting Policies 16 - 36
Notes to the Annual Financial Statements 37 - 93
Appendix A: Schedule of External Loans 94
Appendix B: Analysis of Property, Plant and Equipment 95 - 96
Appendix C: Segmental Analysis of Property, Plant and Equipment 97
Appendix D: Segmental Statement of Financial Performance 98
Appendix E(1): Actual versus Budget (Revenue and Expenditure) 99 - 101
Appendix E(2): Actual versus Budget (Acquisition of Property, Plant and
Equipment) 102
Appendix F: Disclosures of Grants and subsidies in Terms of the
Municipal Finance Management Act 103 - 104
1
SWARTLAND MUNICIPALITY
GENERAL INFORMATION AT 30 JUNE 2015
Swartland Municipality (the municipality) is a category B, medium capacity, local government institution in Malmesbury, Western Cape. The
addresses of its registered office and principal place of business are disclosed hereunder and in the introduction of the Annual Report. The principal
activities of the municipality are disclosed in the Annual Report and are prescribed by the Constitution.
Reporting entity's mandate
The reporting entity (hereinafter 'the Entity') is a medium-capacity, category B local authority established in terms of section 151 of the Constitution of
the Republic of South Africa (Act 108 of 1996).
The principal activities of the Entity are to:
* provide democratic and accountable government to the local communities;
* ensure sustainable service delivery to communities;
* promote social and economic development;
* promote a safe and healthy environment; and
* encourage the involvement of communities and community organisations in the matters of local government.
The Entity's operations are governed by the Local Government: Municipal Finance Management Act (MFMA) (Act 56 of 2003), Municipal Structures
Act (Act 117 of 1998), Municipal Systems (Act 32 of 2000) and various other acts and regulations.
MAYOR Councillor T van Essen
DEPUTY MAYOR Councillor M S I Goliath
SPEAKER Councillor N J A Rust
MEMBERS OF THE EXECUTIVE MAYORAL COMMITTEE:
Chairperson Councillor T van Essen
Member Councillor M S I Goliath
Member Councillor M Rangasamy
Member Councillor M van Zyl
Member Councillor R F Van der Westhuizen
Member Councillor W Wilskut
CHAIRPERSONS OF THE PORTFOLIO COMMITTEES :
Administration and Finance Councillors M van Zyl (Administration) / M Rangasamy (Finance)
Community Safety and Development Services Councillors M van Zyl (Community Safety) / W Wilskut (Development Services)
Civil and Electrical Services Councillor R F van der Westhuizen
MEMBERS OF THE FINANCIAL AUDIT COMMITTEE:
Chairperson Mr J M Becker
Member Mr C B de Jager
Member Ms M Roos
MEMBERS OF THE PERFORMANCE AUDIT COMMITTEE:
Chairperson Mr J M Becker
Member Mr C B de Jager
Member Ms M Roos
GRADING OF THE LOCAL AUTHORITY: Grade 4
AUDITORS: Auditor-General
No 17
Park Lane Building
Cnr Oasis and Park Lanes Private Bag X 1
Century City Chempet Telephone [phone]
7441 7442 Fax [phone]
BANKERS: ABSA Bank
50 Voortrekker Road P.O. Box 75
MALMESBURY MALMESBURY Telephone [phone]
7300 7299 Fax [phone]
2
SWARTLAND MUNICIPALITY
GENERAL INFORMATION AT 30 JUNE 2015 (continued)
LEGAL COUNCIL Terblanche, Slabber and Pieters
Truter Street P.O. Box 38
MALMESBURY MALMESBURY Telephone [phone]
7300 7299 Fax [phone]
Du Plessis and Mosterd
Piet Retief Street P.O. Box 5
MALMESBURY MALMESBURY Telephone [phone]
7300 7299 Fax [phone]
Roux and Van Dyk
42 Main Road P.O. Box 4
MOORREESBURG MALMESBURY Telephone [phone]
7310 7310 Fax [phone]
Bradley Conradie, Halton and Cheadle
The Gatehouse - G04 The Gatehouse - G04
Century Way Century Way
Century City Century City
CAPE TOWN CAPE TOWN Telephone [phone]
7441 7441 Fax [phone]
REGISTERED OFFICE: Church Street Private Bag X 52
MALMESBURY MALMESBURY Telephone [phone]
7300 7299 Fax [phone]
MUNICIPAL MANAGER J J Scholtz
DIRECTOR: FINANCIAL SERVICES: K C Cooper
COUNCIL MEMBERS OF THE SWARTLAND MUNICIPALITY
Councillor Councillor
Abrahams Z Sedeman A C
Cleophas J H Sneewe A M
Cloete C M Stanley B J
Cox-Bruintjies Y S Stemele O M
Fortuin C Traut L
Geel B W Van der Merwe J I
Goliath M S I Van der Westhuizen R F
Humphreys F S Van Essen T
Papers C H Van Zyl M
Philander D B Wilskut W
Rangasamy M Zatu N S
Rust N J A

4
SWARTLAND MUNICIPALITY
STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2015
Note 2015 2014
Restated
R R
ASSETS
Current assets 330 236 054 289 092 998
Cash and Cash Equivalents 2 245 545 396 222 994 961
Receivables from Exchange Transactions 3 44 463 171 39 759 765
Receivables from Non-Exchange Transactions 4 30 260 918 17 018 973
Inventory 5 8 632 267 9 118 181
VAT Receivable 6 1 271 009 150 451
Operating lease receivable 7 42 183 29 802
Current Portion of Long-term Receivables 12 16 356 15 023
Current Portion of Finance Lease Receivables 13 4 754 5 842
Non-current assets 1 794 136 547 1 791 738 514
Property, plant and equipment 8 1 763 469 742 1 761 037 216
Investment property 9 26 638 601 28 541 839
Intangible Assets 10 3 046 997 1 159 776
Heritage Assets 11 769 900 767 266
Long- term receivables 12 197 520 213 875
Finance lease receivables 13 13 787 18 542
Total Assets 2 124 372 601 2 080 831 512
LIABILITIES
Current liabilities 97 375 642 74 698 437
Payables from exchange transactions 14 72 491 855 54 410 917
Consumer deposits 15 8 714 594 7 963 228
Current portion of Employee benefit liabilities 18 2 221 825 2 358 000
Current Portion of long-term borrowings 16 3 993 622 3 652 282
Unspent conditional grants and receipts 20 5 727 479 2 352 403
Provisions 18 3 165 999 3 814 493
VAT Payable 19 - -
Current portion of Finance lease liabilities 16 940 357 113 456
Operating lease liability 7 119 911 33 658
Non-current liabilities 190 386 741 188 673 817
Long-term borrowings 16 133 483 745 137 477 368
Finance lease liabilities 16 903 619 153 449
Employee benefit liabilities 21 55 999 377 51 043 000
Total Liabilities 287 762 383 263 372 254
NET ASSETS
Total Net Assets 1 836 610 218 1 817 459 258
Statutory Funds 22 232 417 253 282
Reserves 23 100 000 000 87 002 707
Accumulated Surplus 24 1 736 377 801 1 730 203 269
Total Net Assets and Liabilities 2 124 372 601 2 080 831 512
5
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2015
Restated
Actual Actual
Note 2015 2014
R R
REVENUE
Revenue from Non-exchange Transactions 210 067 761 208 220 578
Taxation Revenue 73 331 741 70 548 392
Property rates 25 73 331 741 70 548 392
Transfer Revenue 105 746 495 110 459 305
Government grants and subsidies: Operating 26 21 534 599 33 645 954
Government grants and subsidies: Capital 26 39 565 334 41 255 861
Unconditional Government grants 26 43 093 000 32 506 000
Public Contributions and donations 27 1 512 000 2 000 000
Other Contributions 27 41 562 938 590
Donated Property, Plant and Equipment - 112 900
Other Revenue from non-exchange transactions 30 989 525 27 212 881
Fines 28 27 316 029 23 724 790
Licences and permits 29 3 673 496 3 488 091
Other Revenue from non-exchange transactions - -
Revenue from Exchange Transactions 325 280 090 291 140 239
Operating Activities 321 890 144 291 094 306
Service charges 30 271 667 145 250 698 620
Rental of facilities and equipment 31 3 429 839 3 235 263
Interest earned - external investments 32 16 370 827 12 933 876
Interest earned - outstanding debtors 32 1 692 898 1 585 879
Income for agency services 3 104 549 2 725 004
Gains on Disposal of Property, Plant and Equipment 1 341 042 540 262
Other revenue from exchange transactions 33 24 283 844 19 375 402
Sale of Land Inventories 3 389 946 45 933
Revenue on sale of land 4 907 522 169 355
Cost of land sold 1 517 576 123 422
Total Revenue 535 347 851 499 360 817
EXPENDITURE
Employee related costs 34 135 230 511 128 664 764
Remuneration of Councillors 35 8 173 670 7 702 905
Debt impairment 3/4 16 004 706 18 912 919
Depreciation and Amortisation 36 73 758 162 69 736 390
Asset impairment 36 66 244 202 394
Repairs and maintenance 38 19 650 716 17 029 599
Finance costs 37 14 767 582 15 107 407
Bulk purchases 39 162 971 555 145 166 216
Contracted services 40 3 554 164 3 352 498
Grants and subsidies paid 41 1 998 840 1 974 647
General expenses 43 51 546 769 61 484 865
Loss on disposal of property, plant and equipment 28 473 972 9 124 188
Total Expenditure 516 196 891 478 458 792
SURPLUS/(DEFICIT) FOR THE YEAR 19 150 960 20 902 025
6
SWARTLAND MUNICIPALITY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED 30 JUNE 2015
Accumulated
Surplus/
Statutory Fund Reserves (Deficit) Total
R R R R
Balance at 01 July 2013 421 772 90 702 790 1 705 234 309 1 796 358 871
Correction of error (Note 59) - - 198 362 198 362
Restated balance 421 772 90 702 790 1 705 432 671 1 796 557 233
Restated Deficit for the year - - 20 902 025 20 902 025
Transfer to Capital Replacement Reserve - 42 357 739 (42 357 739) -
Property, plant and equipment purchased - (46 057 822) 46 057 822 -
Transfer to Statutory Fund (168 490) - 168 490 -
Restated Balance at 30 June 2014 253 282 87 002 707 1 730 203 269 1 817 459 258
Surplus for the year - - 19 150 960 19 150 960
Transfer to Capital Replacement Reserve - 68 066 283 (68 066 283) -
Property, plant and equipment purchased - (55 068 990) 55 068 990 -
Statutory Fund (20 865) - 20 865 -
Balance at 30 June 2015 232 417 100 000 000 1 736 377 801 1 836 610 218
7
SWARTLAND MUNICIPALITY
STATEMENT OF CASHFLOWES FOR THE YEAR ENDED 30 JUNE 2015
Note 2015 2014
Restated
R R
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Cash receipts from ratepayers, government and other 497 221 354 475 082 689
Cash paid to suppliers and employees (377 439 057) (369 972 800)
Cash generated from operations 44 119 782 297 105 109 889
Interest received 32 16 370 827 12 933 876
Finance costs 37 (14 767 582) (15 107 407)
NET CASH FROM OPERATING ACTIVITIES 121 385 542 102 936 358
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment 8 (95 674 795) (84 792 338)
Purchase of intangible assets 10 (2 444 373) (660 696)
Purchase of investment properties 9. - -
Heritage Assets 11 (2 634) -
Proceeds on disposal of property, plant and equipment 1 341 042 540 262
Decrease in long- term receivables 12/13 20 865 168 490
NET CASH FROM INVESTING ACTIVITIES (96 759 895) (84 744 282)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 2 348 779 -
Repayment of borrowings (4 423 991) (5 326 298)
NET CASH FROM FINANCING ACTIVITIES (2 075 212) (5 326 298)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 22 550 435 12 865 778
22 550 435 12 865 778
Cash and cash equivalents at the beginning of the year 222 994 961 210 129 183
Cash and cash equivalents at the end of the year 2 245 545 396 222 994 961
The purchase of property, plant and equipment does not include the contributed non- financial assets to the amount of R 4 741 720 and Investment
Property of R 1 929 000.
8
SWARTLAND MUNICIPALITY
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2015
Actual Actual
Outcome Outcome
Final as % of as % of
Budget Adjustment Unauthorised Final Original
Description Original Budget Adjustments Budget Virement Final Budget Actual Outcome Expenditure Variance Budget Budget
FINANCIAL POSITION
ASSETS
Current assets 2 48 026 100 2 917 163 250 943 263 - 250 943 263 330 236 054 - 79 292 791 132 133
Cash and Cash Equivalents 177 980 397 10 142 278 188 122 675 - 188 122 675 245 545 396 - 57 422 721 131 138
Consumer Debtors 60 350 189 (12 752 155) 47 598 034 - 47 598 034 52 579 612 - 4 981 578 110 87
Sundry Debtors 2 012 266 6 384 699 8 396 965 - 8 396 965 22 144 477 - 13 747 512 264 1100
Inventory 7 540 419 (1 236 279) 6 304 140 - 6 304 140 8 632 267 - 2 328 127 137 114
VAT Receivable 115 496 366 458 481 954 - 481 954 1 271 009 - 789 055 264 1100
Operating lease receivable 3 833 12 162 15 995 - 15 995 42 183 - 26 188 264 1101
Current Portion of Long-term Receivables 18 208 - 18 208 - 18 208 16 356 ( 1 852) 90 90
Current Portion of Finance Lease Receivables 5 292 - 5 292 - 5 292 4 754 - ( 538) 90 90
Non-current assets 1 799 433 856 21 080 178 1 820 514 034 - 1 820 514 034 1 794 136 547 - ( 26 377 487) 99 100
Property, plant and equipment 1 766 048 814 24 299 576 1 790 348 390 - 1 790 348 390 1 763 469 742 - ( 26 878 648) 98 100
Investment property 31 777 536 (3 588 559) 28 188 977 - 28 188 977 26 638 601 - ( 1 550 376) 95 84
Heritage Assets 767 266 - 767 266 - 767 266 769 900 - 2 634 100 100
Intangible Assets 489 825 510 659 1 000 484 - 1 000 484 3 046 997 - 2 046 513 305 622
Long- term receivables 327 552 (132 266) 195 286 - 195 286 197 520 - 2 234 101 60
Finance lease receivables 22 863 (9 232) 13 631 - 13 631 13 787 - 156 101 60
Total Assets 2 047 459 956 2 3 997 341 2 071 457 297 - 2 071 457 297 2 124 372 601 - 5 2 915 304 103 104
LIABILITIES
Current liabilities 99 700 760 ( 17 584 651) 82 116 109 - 82 116 109 97 375 642 - 1 5 259 533 119 98
Payables from exchange transactions 74 773 659 (17 171 620) 57 602 039 - 57 602 039 72 491 855 - 14 889 816 126 97
Consumer deposits 7 717 366 723 656 8 441 022 - 8 441 022 8 714 594 - 273 572 103 113
Current portion of Employee benefit liabilities 2 524 378 199 207 2 723 585 - 2 723 585 2 221 825 - ( 501 760) 82 88
Current Portion of long-term borrowings 4 093 622 (13 456) 4 080 166 - 4 080 166 3 993 622 - ( 86 544) 98 98
Unspent conditional grants and receipts 5 902 031 (1 355 390) 4 546 641 - 4 546 641 5 727 479 - 1 180 838 126 97
Provisions 3 597 122 283 861 3 880 983 - 3 880 983 3 165 999 - ( 714 984) 82 88
Current portion of Finance lease liabilities 969 016 (222 533) 746 483 - 746 483 940 357 - 193 874 126 97
Operating lease liability 123 566 (28 376) 95 190 - 95 190 119 911 - 24 721 126 97
Non-current liabilities 186 304 758 1 861 902 188 166 660 - 188 166 660 190 386 741 - 2 220 081 101 102
Long-term borrowings 132 652 657 132 652 657 - 132 652 657 133 483 745 - 831 088 101 101
Finance lease liabilities 897 993 - 897 993 - 897 993 903 619 - 5 626 101 101
Employee benefit liabilities 52 754 108 1 861 902 54 616 010 - 54 616 010 55 999 377 - 1 383 367 103 106
Total Liabilities 286 005 518 ( 15 722 749) 2 70 282 769 - 2 70 282 769 287 762 383 - 17 479 614 106 101