Table Of ContentLEJWELEPUTSWA DISTRICT MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
30 JUNE 2010
LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
LEJWELEPUTSWA DISTRICT MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS FOR YEAR ENDED
30 JUNE 2010
1
LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
INDEX
Page
1. General Information 3
2. Constitution of the Council 4
3. Executive Mayor’s Foreword 5
4. Report from the Chief Financial Officer 6
5. Statement of Financial Position 9
6. Statement of Financial Performance 10
7. Statement of Changes in Net Assets 11
8. Cash Flow Statement 12
9. Accounting Policies 13
10. Notes to the Annual Financial Statements 28
11. Appendix
A Schedule of External Loans 53
B Analysis of Property, Plant and Equipment 54
C Segmental Analysis of Property, Plant and Equipment 55
D Segmental Analysis of Financial Performance 56
E(1) Actual versus Budget Revenue and Expenditure 57
E(2) Actual versus Budget (Acquisition of Property, Plant and Equipment) 59
F Disclosures of grants and subsidies in terms of Municipal Finance
Management Act 61
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LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
1. GENERAL INFORMATION
EXECUTIVE MAYOR
Ms. Nokwanje Selina Leeto
SPEAKER
Mr. T.D Khalipha
MEMBER OF THE MAYORAL COMMITTEE
Mr. K.J Menyatso
Ms. M.E Lande
Ms. M.J Pereko
Mr. S.J Mabitle
Ms. M.H Ntsebeng
Mr. S.E Tshabangu
Mr. A.P Kotzee
Grading of Lejweleputswa District Municipality
Grade 9
Auditors
The Auditor-General
Bankers
ABSA Bank
Registered office
Tempest Road Tel. 057 – 353 3094/5/8/9
PO Box 2163 Fax 057 – 353 3382
Welkom
9460
Municipal Manager
Ms N.E. Aaron
Chief Financial Officer
Mr J.T.K Bofelo
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LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
2. CONSTITUTION OF THE COUNCIL
LOCAL BODIES NUMBER OF REPRESENTATIVES
Local Councils
Masilonyana 2
Matjhabeng 15
Nala 3
Tswelopele 1
Tokologo 1
Directly elected 15
37
APPROVAL OF FINANCIAL STATEMENTS
The preparation of the annual financial statements set out on pages 9 to 61, is the
responsibility of the Municipal Manager in terms of section 126(1) of the Municipal Finance
Management Act (MFMA) and the statements are signed on behalf of Lejweleputswa District
Municipality.
I certify that salaries, allowances and benefits of Councillors disclosed in note 14 of these
annual financial statements are not within the determination of the upper limits of the
framework-envisaged section 219 of the Constitution, read with the Remuneration of Public
Officer Bearers Act and the Minister of Provincial and Local government’s determination in
accordance with this act, however the matter is receiving Council’s attention.
______________________ __________________
Municipal Manager Date
Ms. N.E Aaron
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LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
3. EXECUTIVE MAYOR’S FOREWORD
I take pleasure and express my gratitude to the constituency of Lejweleputswa District Municipality
as we present the 2009/2010 financial statements.
This is a legal requirement contributing towards sound financial management and accounting. It
also reinforces the provision of the constitution of the republic of South Africa, (act No. 108 of
1996), Municipal Systems Act (Act No. 32 of 200) and Municipal Finance Management Act (No. 56
of 2003). These are Acts giving effect to the realisation of the mandate contained in the objects of
local government, such as:
To provide for a democratic and accountable government for local Municipalities
To ensure sustainable provision of services
To promotes social and economic development
To promotes a safe and healthy environment in the affairs of local government.
It is through our consideration and adoption of our 2009/2010 IDP and budget; we sought to
practically give realization of these important objects of the local government which essence about
good governance and service delivery.
We should stress that all the necessary projects and programs emanating from above, are done
within the availability of constrained resources. Therefore, we had to our best to accommodate
critical areas of service delivery needed by the community. We cannot achieve all of them in
financial year. More resources could help to finance infrastructural development and amongst other
things, HIV and AIDS, youth development and women empowerment.
These annual financial statements will reflect the extent of our account on finances and their
utilisation.
I look forward on behalf of our executive and administrative collectives, to a positive 2010/2011, a
financial year that will represent further progress towards perfecting our systems of accounting and
service delivery. All this will continue to be done to foster total transformation and change. We will
prove ourselves as a perfect partner in service excellence by 2014.
__________________
Executive Mayor
Ms. Nokwanje Selina Leeto
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LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
4. CHIEF FINANCIAL OFFICER’S REPORT
4.1 INTRODUCTION
The following report is a concise summary of the financial results of the past year. The
prevailing economic climate coupled with the abolishment of levies at 1 July 2006 has a
negative effect on council’s income. Operating expenses were kept well within the set
parameters.
4.2 OPERATING RESULTS
Details of the operating results relating to the classification and type of income or expenditure
are reflected in appendices D and E. Revenue summary appear in appendix F. The overall
operating results for the year ended 30 June 2010 are as follows:
ACTUAL ACTUAL DIFFERENCE ESTIMATES DIFFERENCE
ACTUAL /
2008/2009 2009/2010 2009/2010 2009/2010 BUDGET
INCOME R R % R %
Surplus brought
forward 33,556,129 52,723,809 72.02
Income for the
year 87,174,954 94,077,585 7.92 99,655,781 5.60
Prior year
adjustment 6,672,287 181,742 (97.28)
127,403,370 146,983,136 99,655,781
EXPENDITURE
Administrative
Costs 69,334,438 76,736,009 10.58 90,136,343 14.24
Projects 5,345,123 6,873,409 28.60 9,519,438 27.79
Closing surplus 52,723,809 63,373,718 20.20
127,403,370 146,983,136 99,655,781
Regional Services Levies were discontinued from 1 July 2006. Total income increased by
7.92% due to increase in the unconditional Government Grants and also due to a higher
expenditure in the conditional grants compared to the previous year.
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LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
4.3 CAPITAL EXPENDITURE AND FINANCING
Total amount of R14 027 990 was made available to local authorities during the year and
the amount was applied as follows:
Available amount: R
Transferred from previous years -
Amount allotted for the year
Income 6,700,000
CDF 7,327,990
Total amount available 14,027,990
Expended to provide for:
Capital charges 2,948,951
Cemetery 49,255
Lejweleputswa Development Agency 1,434,226
Roads 3,432,102
HP sport centre 1,000,000
Total 8,864,534
Unspent monies:
Forfeited for reallocation 5,163,456
Carried forward to next financial year -
4.4 EXTERNAL LOANS, INVESTMENTS AND CASH
External loans on 30 June 2010 amounted to R 22 022 716 (R 23 396 557 on 30 June
2009). More details about the external loans are disclosed in appendix A. Whilst the Council
holds R 50 008 864 (R 52 407 598 on 30 June 2009) net in cash and investments, R 1
970 604 (R 1 374 840 on 30 June 2009) of these funds will be required to fund the payment
of long term liabilities that fall due within the new financial year. The balances of cash and
investments are adequate to cover the short -term commitments on 2010.
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LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
4.5 FUNDS, RESERVES AND PROVISIONS
More details about the funds, reserves and provisions are disclosed in the Statement of
Changes in Net Assets.
4.6 EXPRESSION OF APPRECIATION
I am grateful to the Executive Mayor, members of the Mayoral Committee, Councillors,
Municipal Manager, Management and staff for their assistance in the preparation of these
annual financial statements.
________________________
Mr J. T. K. Bofelo
CHIEF FINANCIAL OFFICER
________________________
Date
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LEJWELEPUTSWA DISTRICT MUNICIPALITY ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2010
5. STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2010
Note 2010 2009
R R
ASSETS
Current Assets
Cash and cash equivalents 11 5,008,864 6,407,598
Trade and other receivables from exchange transactions 10 2,250,313 1,893,017
Investments 6 45,000,000 46,000,000
Current portion of receivables 9 - 5,010
VAT receivable 5 2,820,600 2,469,729
Non current assets
Property, Plant and equipment 7 38,823,550 29,314,871
Intangible assets 8 468,213 247,883
Total assets 94,371,540 86,338,108
LIABILITIES
Current liabilities
Trade and other payables from exchange transactions 3 8,127,597 6,085,547
Unspent conditional grants and receipts 4 847,509 4,132,195
Current portion of long term liabilities 1 1,361,821 1,186,684
Current portion of finance lease liability 2 608,783 187,156
Non current liabilities
Long term liabilities
Non-current borrowings 1 19,891,009 21,252,831
Non-current finance lease liability 2 161,103 769,886
Total liabilities 30,997,822 33,614,299
Net assets 63,373,718 52,723,809
NET ASSETS
Accumulated surplus 63,373,718 52,723,809
Total net assets 63,373,718 52,723,809
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