Table Of ContentKZN216 Ray Nkonyen! Municipality
‘Annual nancial Samos forthe yesrended 90 June 2020
Index
“The pis ed attemrts set ou tala corgrias he ennual Maal seer prazried 0 provincia
Acaurting Offers Responses ond Aprons a
Ale Comitee Repent 4
‘tote of Financial Postin 6
Sister af Fnsnll Peformance 7
Stetarvant of Changes i Net Assets e
‘Gath Flow Statement 8
‘sutementot Carparon of Butget ana Bul Arnau wn
Aesantng Pla 12-98
Notes to tne Annual Financ Storer 38-90
Abbreviations
cow \Companeaton fe Qocupsonl ris and Dis
ork Capt! Raplacoment Rave
ssa Develaerenl Bank of Sau Aca
ree ‘Gaver Rocogrisad Accounting Precice
Hor eutng Deven id
Pees Intnl Pub Seto Aecauting Standa
mstoe ‘heigl Standard Chor of Acccunts
wes Marat ofthe Executive Gouna
A, Munkipal Farce Management Act
ms uncpsl inraetucture Grae (rovouly CHIP)
wos Inerted Urban Development rat
HZN216 Rey Nkenyent ituntoipeltty
‘Anes Fnence Sotacets fr re yuar wise 9 ra 2020
‘Aceounting Offeer's Resporsisilitios ond Approval
she evening oon sees y Uae nanos Mareen AS Sf 29), On Fen,
To meri, fe ese St En tea eyo ee et ST Sr ret
enn roe eocrat ee ncarmly song oe YRS I ae
she erm ari ian te non paces aus wn Stead met SARTO ASAE
egies ests, gamncs en seem ened ie Acoisng Sanscs Ores
vcr france shen ce apa pin apron esting pelos contr slat ssp
{caer a rodenuagne send ane
whe pam een: sorodgea ot ti tse marae of a mem TE eT ci
Teg pene en sop ace ment pmeteng waned OME I uel ee
hes tan ena ese avant, scot et 20 a
rate okie my nara et epee
SET ret epee ra menage ron rewind oan te
Tr enocuning ote w of te ein wera on enteration aad expansion Per
The ezrin oon 0, evn etn ws Fr MEE
ve eceneany nh ind uly cash om aca ee 12.9 a EEO
‘eg ecm en eer aa esp No BOE: INE ARPS
Mase aan anima ore sere BANE
sre uae ens cnetant ie cant an a kag nshndeg ape Tes
Tes mini nels dent aa tea wey a gpa faz a ane tm NC
arc ere om PE yaa ern etary sae ef eA
vroign nex fic fmaiempanite Or Hanah inca nae Sere?
‘Senibiantye oral ate.
“Te ena ranean ae soto gage wh het baa rece at Be gay caer D8 WE FPN,
Treseeae aden cower sab oro were aor Pray
Me
eae po
[oeundeg Omear
{2ZN216 Ray Nkonyeni Municipallty
‘Actual ence tamer er i year end 20 June 2020
Audit Committee Report
\Woare pissed e present our rear oe Manca yar aod 30 June 2020,
Audit commitee mambars and attendance
‘The suit commitna conte cfthe members les hevaundor and should mst 4 tines gar anrum a ps approve
‘meat cares, Duta ho ourent year 4 mbar of masta: wars ha
Name of member Nanber of meetings tended
Iie Preston (tm Craton) 2 YCanract Epledin Dacenbes 2016)
Mezzuu 2
Ma knundo 2
He 8 (Chatpareon 2 penatd ae chaerson nay 200)
Autit sommes responaiitty
“snout comeitaa repo that has carp wih is eponstltos ering en soon 1862) ofthe MFA,
‘Tha aut commidee step rena mat: Nae acoptad apprprian oral ts ofreferrce a Ns sul canes chalet.
Iie regulis Rs eosin conplonce wh is chartor and has sitharged ss eeeencsiea ae sorted hace
‘a ttectvenaae of Internal control
“The system of iteal corrals applied by ne municipal over nancial and thk menagerent is atecive, efile ant
‘Terapersi inne fh fa PMA, intra! Aust provides the aust eemytas aid manacerant wh aeararce ht
‘raonal sonra ara approyte arid efecve, Tif ahs by mea othe fk management proce, sb well he
lasrafcenon of corectve achowe and tgpested enarcerets fe Ua corte ana process. From Go various reser:
fins intomal Autre, ne Aust Repo Vo ars! Panda stares, end the marwgereet report of Ie Auer
‘Ganural Gout Afton, Rae ole tale mares were fopeted tet edeas ery aloria Setaences inte gst Of
freal contol et an detatone tweton. Acernely, wo can feet tha we sete OF tetra oy hana
‘opotine forthe peted naa oulotes fier and ef
“a aud conan is sas wie coment and qusty of meh and quaraty ports prepared ad ised by the
-Aacouning Ocer he murclpaly during te Yaar under rove.
Evsluation of annual Maanckl statamets
‘The audtcommitee es
TN ein ai aacussed the uraudtd annul finance tetera to vein nth annual report wit
‘ador Genel and te Aconuning io
+ relewos changas in accourng pales wniéproto;
4 taewea te artes corolonce wt legs! replatary provisions.
Internal uct
“Tha sud cmeites i vai that he mtemsl sus Runa Ts operaing seca and that ita addressed the ks
pen: athe municaly 30d aus
Ausne.Geparal of South Aca
“The au comnts Pas me ath tne Auator-Genara af South Affea to ensue hat nee axe no unresowed ues,
‘Enviparson of tie Audi Comics
KZN216 Ray Nkonyen! Municipality
‘Arnal Paria Statements forthe yee ended SC une 200
‘Statement of Financial Position az at 30 June 2020
Figuresin Rand Notes) 2020 ots
Recta
Aosets
Ccurnt Ansa
tree 2 atavsse «rosa
Recta m axcrange danas” east radazear sete?
Recoil fam nochange barges” oer wsesio sas 13/3072
Vat rocetle "2 “wesieser 7825278
Lonrecane GO Near aere9
eens eat nia 15 orsasend _evesosse
Saber Tai _aaa TO HE
Non Comer Arse
Invesnert pope Ss mtrceD ser 75180
Proper pt and eatpmont sort ersear 1548 105773
igo aete 5 ea ana
Haan as 8 asioae reser
7 ravines TaN ee
Fatt Brean a7 74S zo
abies
‘Sumort Lieites
Tangri an 14 aeroses ees 80
Fina eae sb gston 18 450060 °
Poyaties tor euctange ronactone 18 ‘weseee59 aed
‘onsuner eps 4 ‘Sneon2as “2ostessr
Employ tant cbigton 1 aortas 48500)
Unspent cndoral rant an recite 1 serere st asscin
enone zo “saznaet_“2503507
a Banco oe ia 3088
Non-caret bt
Lonptemnen aise «e058
Finan ast bition "zoos °
Empoyes brat eigen “8 marmnere ses
Prova messes 086 16s
. at ata BE
Toa abiiies reve e0e 934 182 07
Ho Aezate THESE Teer
‘evunuld are rage 5021712688 724
hn aan of 11598 atop ogee cena aaa pro yearn mesa os ag miler tn
Bae Sete stow btedcrleGufe separ seamen ste hone tn pat oe ttesa he ManeHn 8
emia Tee ae rapes tu ron el fb ree ean an eonalet tn
‘Mipace sine tnon fe ow ete ene sara tae bre Wari ie 20 Marc yar ane
‘connor oni ch ot On er waar wc ur cs eb 9 Foe
KZN216 Ray Nkonyeni Municipality
cua Fanci Steet fr tha yeor ended 3¢ June 2020
Statement of Changes In Net Assets
- ‘ecumulated Toil na
Figuresin Rane ups assels
Opening bxence as peviousy epone: 41870823001 1 670625981
adware
Gahacton ater. 7 (92286397) 2288 87)
Balance at 01 Jay 018 as ect Tach 258 aa 1 648 25 sa
Changes n nai aseais
‘Aedes agers snes
‘Netcom Doses) coated ream nat aaoats Ford
Surplus forthe your eae zr sage2 23
“Tard recogneea income and expewrasermeyest ‘4st cB 84301 o8D
Total eneroes ‘sessicae 64381 60
‘Opening Elance ws wrevouny repared THD eaG 726 1 712 90072
‘gucren
Poor your edusrerts verre serra
Restated Balance at 0% ly BOT@ ao reeted 4721 367 670 1721 367 670
hargesin rt sete
Sips re yoo _ aerost2 26708712
Totalesaes 297057 25708712
Belanes at 90 Jone 2000
esr 3021 708 070582
ait)
KZN216 Ray Nkonyeni Muni
oval vera Sateen fre yor evded 30 June 2020
Statement of Comparison of Gudget and Actual Amounts
Bot on Cath Bae :
‘Agoroved Adjustments FinalBodgst Actual —_GWierence Reference
get amounts on eetveen tal
Comperable budget and
Figuesm Rand eis eeual
Statement af Financial Parformance
Revenue
‘Reanue from exchange
‘ranaaclione
Servos charges 208-499 108 (fOesR 7m 187508.250 seze57o%0 (16702290) as
erasing et aenices Jagan" ioggy $4b 002 oa 802)
Rectal flies and agg ize 789M AU004BT seat saeTH0Z as
euler
Fret esau (aang rassrare zaseaco AUSEE 2709m1 EBs
ean east Qeotase Gossess) 44BEM “aioe Is
Ueenate and perite Dosis a0tdaer THHT9IS Be 44e 472 88074}
Reavers ~ : sopoosens Moomass 45
Other income (role) eoassra (1650265) 24RERTO "SerONeO IBSOTI) 45
Imowetromfos-investment 4964708 wert) 4788788 gerazet (99602) 45
{oral vevene from exchange 274859327 {8 220098) 65278 a2 990090 S25
Revenue rom non exchange
“Teraion revenue
Property tee. 4adesg 70 taasasor ADNarOrT qoset7as TESTI ww
Luseraoe ar Permits en 30% 38000 He
‘eng
“Tranefer every
Gowrrentgarts&sibsides water (12 G4BBNIS MERHENTAS sscsase1 GIST as
- : * "gest es Y0sRI ase as
Fines, Pent ssoztzes 4404702 77s atarzme CHBRER ES) As
(ther ante reverua 4 07 8000 (420) 10716202 conven OSTEO aS
‘Total avenue rom nom BHT G70 108 24MA7 ps SIT FITET 706370 950. (11484185)
Shure lectins
Total reverie THT 49 4am ess 1 7eASE ER TIRE TORS _OoRETOR
Experian
Peteonn (os2 850000) g7 st rar} (10981 BIN) oA GOT 20m) CSI AS
Remuneration of councilors 23822 576) = "gass297s sera 10) | ET) 8
Depron ane emoestan (48850000) 20000000; (63480000) (an ss aea) 22605309) 45
Imgaant cee Ravers of (7000 00D) O Nreeoaen “pease 718 aS
toparente
Finpnoe co sooo (tigoa1) eteOON crete MAzAI) 4s
mee ens on cperang lease (20499528) | (S258607: 1760526) 2.42975) 9sVe31 as
Dott inpaiment ‘co can; = (oan 00m Gesez eRe) ABEKDEOR
‘Be debs orton off ‘sa es8) 1 ieupere) cian o61 337 (188062675)
Bulk archos (ace 169.210), 1 ootes 210) (ror axe 10 TEBE s
Contacte Servos {oe o20 sac) (29957043) (82055028) (Ja5-0a: Gus) TOV ITB as
‘Transfers nna Supe (Cas0700) | 2IcsBan CTNAA7 962) | a taneas) 26H EZ aS
Gone! Exparase (aoa ten sSavrecr GTSET ee cpzeTESeE) MA ISEEE as
osetexpendiure ‘018 16 450) (OY OFF DIS OVS oar ATT 10H TAO BTA) (1410s 72)
‘Gpenamg teh TaR7ESES (AT 024-694) 10TH SET — THB) (104 257-470)
0
KZN216 Ray Nkonysni Municipality
‘rma Finan Solera otha yer and 39 June 2020
Accounting Policies
“4 Presentation of Antu Fnanetl Stateranta
‘Tha annusl Snondal twamanta have ben propared in aeorugnce ath she Standaris of Ganeraly Recognised
eso Praches (GRAD) edad by fe Accauning, Senaerds Soars ty accordance win Seon 1223) of be
tonipal Pitance lanegaront AZ (el 55 of 2003).
“Teese emul fnncialsients nave been prepared on an accrual basis of aocguaing and ae acerdarce with
‘evil comatose aboe rane estate sense. Thay mo sig oo es
‘A sunmeny of he slncane anon polit, whl have boan sone sty app In he prepa thes
Fratelal eeterens, ora dosed Keon
‘Teas asoartng polls ate coraleta wt he provous peo
4.4 Prepentation sunny
Inese ermal Tene sstemarte ars precaind in Soul Afican Rand, which fe the funtonal cuvtney of me
cnunicpai.
1.2. Going concam assumption
hess exal Manel! statemants have been presared based on Pe sxpetzton cha the manic lease 0
perm vs going conoain er ataastthe net 12 mene
1 watartaly
all anieslors cc minstatamanleoftems aye mera ey coud dually oF coke, Intuanoe the decisions
Srassesamens af ueors made on f= nade te nerd sutra. Meter deperde on te pati or ac ofthe
‘Shawn ov Maslin judser ip be suraunanig srrvalances. The Palute or ae otha Inorraion Her. cr 8
‘ambition bath, eu be fe cetaraning factor
stewing whetna’ an omision or mestaiaet czultinluance decions of wets, and so be metal requires
otaertion af ha characeres of hove Woe, Tha Framework for be Plepraten ard Presetaton of Financ
Steet sates thal veers avs sasunettoveve a Teaaoveee wnonedge of guvammont. fe bec, aceouring and =
‘ilngngos teay Be ifamrain wh reeaonate Slipore, Theta, he azsouarrt hae In JoeCUMC NOW Use
‘eh uch ater cous assay Bo expected bs fuenced neki ard evel dossions.
1.4. Stynticant Judgements snd goures of estmatlon uncortaniy
In propang the annual mand satamons, managenent Is required o make sebmetos and axsunphans tht aoc
Grants rebmserad tthe annisl nancial sateen ‘an felted cisdastos, oe of 6vae iforbsion ard the
pple ot udgemarc fe inheert'@ the formation ©” seman. Acel ozs In the Kure coud ier fom these
Bhat whkh may oe materia tote Sorua rail aaron, Signe ant udpements Inde
‘rade racarabtes|
“Te murldpaityaseesen its ode aotecanfrimpaiment aire end of seh epertng prod In dering nether
Br imocirtort loss soudd bo ocorded nv eurpue Gelek. Oe supice makes juigomente 20 [0 whet Mate
bearvebs das nacaing 8 mactrabe doorath nthe exit Aue cosh owe Rar 3 ane 06
Anpsimant wating
“The secortale snaunto of cash-geneatng unis and inaicuel eats have boon dalariina) bate one high of
Jthetruee csidiatene and far must Wet aa" sok Thea calulenore Peale We ce of estes snd
Jssumptons,
“Tha muriipally res and tet a cargng vain of ge when avons or changs in ctcurstansee sugges hat ne
rye mount maf not be recoveace, asco ee teuped ato Kee! val fot whith lerhals ch flows are
Feet intpendae of cach eve of oer asain oo Ties. Il Ham are nlealons at impale! nay hove
tofuled estan are propre of expactes hr oan Twa for oath group of aus. Expected furs cath flows used
{p dtanrine te vluc ues of ng saosa oe erent Unendain 9h cous atl hang ove be,
KZN26 Ray Nkonyeni Municipality
‘usd Finacial Statements fer he yea" ended 29 une 2020
Accounting Pollcles
4.8 Property, pent and oqutprsr
Property. plant no anésnet i angle norremontseee frig nigra ase) at te hal for use inthe
Frobuctcn ar upp foods & aeroee, end tp oreo: fr sSMntetve Putpoes, and are expected fo Bc used
LSbtag ve than one Petes
‘The costo a tan af propa, ant and enue racogrssa as an too whe:
Te Sein probate tht Aare sootomle berate or ers pelea socitd wih th Mem wll Row to te
rmunigpaliy ara
+ theca of he em san he raecaurerelaby
Proper, ple an equpeant|
“Tre cxet ofan fom of rpc, am an equmentia he purchat pce ane ar costsalrbLable ta reg ha ses 2
the touion raf condo nee or be copeble of opeoleg In Me arrer Iehded by management. Tod
[Bocaunte and rebates se sect aisng at he cos.
iniaty mensured at con,
hers an aeetia angie thr. a nopexchange wanoacin, ts cet its Mr vas as at de of acquit,
‘weer an tom of sroplry, lant ara equipments ssquitd exchenge fr gon mnetay ste or rons aster
1Poarbinso er rnetry end nan-monelry ase, fe eet esque cinta eased tf vlue th cot, Whe
‘Sued es larval sa nt Cotes, Ps med cea the cary ng rho te sae) ve un
When aleant compere of tart of proper plant and eaugerant have diirort use ues, thy re occu
Toran aaparat ter az companers of propery. pant and equipment
Costs rete cote Iced aly t deqte or eonaruct sn to of eopery, plan ad aqutment and cet neured
Stoveduarily oat fe replnen for fof ion a repfacomet coe raged inthe caring emt fenton
[prepa lr aed equipment we cing arcunt he reploed bar aaron
“The intial esinnt af ne oe of canting an emewng the lem andres the wa chy which is acted
inated Inne cst! propa, pnt and eters. where ie ens etgsed a rear euch eee. sd hors
[fa sblgalonofons ot raul faeqatng ne abet or ung tor purecoa tter an e procuston olivenotes.
Rcogiton of sats nth carying araurt cf kn em ot pepery, len and expert sassee whan te Nef Inne
Dea and contin naeasaryfritn be espe of eparaing in hee ineded by menagerie
heme euch se spe po, Wendy souipment and senichy Equant ae recog when ey mast he defn of
propery. psrtamt equipment
Majer intpection cot which re 3 craton of ondiving use of a Nam propery, plant and equlpeent ena wnich mast
TPalccogrnon ol sbove ar eked aaa replacamertin be cust of ho fam ct popet, part end squpment Any
‘atv Inspection cov em tha prevus apacton Me cerecaivd.
Proper. ant and egcpmenticaried a ne bes accumulated degecitton andy inpakmento22e
Prop plantar pment oe dsprecated othe eb ne boss var nei expec une vee one estimates
rest lun
“Tre usctul lve ftom o srperyplort and eyipmont ee been see
fol:
ee Depreciation meted Average ustul ie
‘ane Thatta
Bulge Suaightline Sc yaar
‘remaure
wn Ronde ad Paste Staging 280 year
S Bhettty Steer tre Sencar
1b Salawests and daposl Stagatrs Sodan,
Gomeunty
Po pacretonl fac ee Susigneire sn-c0yeer
{Guise and otpereructures Seng ne 2-year
2 tmprovrants Stat re boa feos
%
KZN216 Ray Nkonyeni Municipality
‘Arua France Selmer orth oar evded 20 June 2000,
Accounting Poli
117. ntanitteaczesfeortueey
Ietaraly ganeeat ands, mastads,publhing Yes, custome es ad ims ro .eatance aren ecograad
baimangble assets
Avon prods towne down the intangible ates, on e/39h the Bab, thei esd values 2s ORE
ee Deprecaton mathed Average useful ne
Seanpur we Biaietre Syeare
Irtangibe age ara dorengricod
ee chapel or
{funn hfura soanomic bens 0 erven petal ero axpaced fom is wt oF aepaseL
“he gain Ines ring fom che caraeagriion of intangible asset ig Inuded in suplus or deft wham the ascet
‘vedas unease Sanco of GRAP er lates requres arenas oh 3 ao ard eababach,
8 Horage sete
‘sels ae resrates conrad by an muricipalty oe 9 rea of eae var and om which ure asoeti boners or
[erne poundal are oars fee tothe munthaliy
Recegniton
“Te munisuatyrecogrias abrtage asset ae a aaaat fe prota hat ue xenon bans or nari peters
‘aneatad win ta acto faw toe noes. and th set or fa vahiao" ie ate abe massed ale
Intnl measurement
enoge aaa re mansred at et
‘ihe a nemage ane acmurad trough a nan eieherge Wansgctlen, costs measure ts at vale aaah Je
of anton.
‘Subregion measurement
ater ecognion aan ace se fbr ane case aie corte ny aeunuttes psa as
‘umpire
ToL RE Ae RUSTY lec ecb omesce Sr eneane sara mo th aa
“Tanetore
“Teansfars rom heaps sees ar only made wher the parc asset knger meso the defiton ofa hevage ast.
“Tranter therige sees ae only Tbe hen tha aos mest the detiion of neroge ato
Darscogation
‘The muaniipalty aarconteashevisga asset on leper when no Tue economic berate cr seria poten are
npocte Fam fuser aapose
“The gin or lots aning from the deecognen ofa nertge saws ¢ incu in sug a det wn te Rom
‘Bedylon ries the Slants of SAP an eagae raquo otirse ono ae sd webet3).
1.9 Financial nebummerta
A tance is ary cone tha: ves eo 8 Aacil asso one ety en Manila or resid
tert ener
dente na tance nsrurent fhe conbact wha rea of ho “eing characteris
%
