Table Of ContentMARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
MARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
Financial Statements for the year ended 30 June 2020
General Information
Nature of business and principal activities South African Grade 3 Municipality (Local Municipality) as defined by
the Municipal Structures Act. (Act no 117 of 1998) within the Mopani
District Municipal Area of Jurisdiction
Mayor Cllr HM Thobejane
Chief Whip Cllr ML Mongadi
Speaker Cllr MJ Mahlo
Councillors
Cllr MJ Rakgoale (Exco Member)
Cllr NV Lewele (Exco Member)
Cllr MR Maakamela (Exco Member)
Cllr PE Shai (Exco Member)
Cllr B Mohlabe
Cllr DM Sebela
Cllr EC Du Preez
Cllr JT Morema
Cllr LV Shaai
Cllr MA Mathaba
Cllr MD Popela
Cllr MF Madike
Cllr MJ Modiba
Cllr MM Komane
Cllr MO Mathipa
Cllr MR Malepe
Cllr MS Kgohloane
Cllr MT Mongadi
Cllr SC Shokane
Cllr SF Mahlo
Cllr SL Mkansi
Cllr SV Mametja
Cllr TD Mogale
Accounting Officer Mr TG Magabane
Registered office Maruleng Municipal Offices
65 Springbok Street
Hoedspruit
Business address 65 Springbok Street
Hoedspruit
1380
1
MARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
Financial Statements for the year ended 30 June 2020
General Information
Postal address PO Box 627
Hoedspruit
Telephone Number 015-793 2409
Fax Number 015-793 2341
Email Address [email protected]
Website www.maruleng.gov.za
Investec Bank
Auditors Audited by: Auditor-General of SA (AGSA)
Audit Committee members Mr L Lankalibalela (Chairperson)
Mr K Mosupa
Ms R Ramutsheli
Mr T Nonyane
Ms J Mabuza
2
MARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
Financial Statements for the year ended 30 June 2020
Index
The reports and statements set out below comprise the financial statements presented to the provincial legislature:
Page
Accounting Officer's Responsibilities and Approval 5
Audit Committee Report 6 - 8
Report of the Auditor General 9
Accounting Officer's Report 10 - 11
Statement of Financial Position 12
Statement of Financial Performance 13
Statement of Changes in Net Assets 14
Cash Flow Statement 15
Statements of Comparison of Budget and Actual Amounts 16 - 22
Accounting Policies 23 - 59
Notes to the Financial Statements 60 - 99
3
MARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
Financial Statements for the year ended 30 June 2020
Index
ASB Accounting Standards Board
Acc pol Accounting policies
AFS Annual financial statements
AGSA Auditor General of South Africa
GRAP Generally Recognised Accounting Practice
Budget St Statement of comparison of budget and actual information
PPE Property, plant and equipment
UIF Unemployment insurance fund
SALGA South African Local Government Association
EPWP Expanded Public Works Programme
CFS Cash flow statement
PAYE Pay As You Earn
VAT Value Added Tax
MEC Member of the Executive Council
MFMA Municipal Finance Management Act
MIG Municipal Infrastructure Grant (Previously CMIP)
MSCOA Municipal standard chart of accounts
SFPOS Statement of financial position
SFPER Statement of financial performance
4
MARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
Financial Statements for the year ended 30 June 2020
Accounting Officer's Responsibilities and Approval
The accounting officer is required by the Municipal Finance Management Act (Act 56 of 2003), to maintain adequate
accounting records and is responsible for the content and integrity of the financial statements and related financial information
included in this report. It is the responsibility of the accounting officer to ensure that the financial statements fairly present the
state of affairs of the municipality as at the end of the reporting period and the results of its operations and cash flows for the
period then ended. The external auditors are engaged to express an independent opinion on the financial statements and was
given unrestricted access to all financial records and related data.
The financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice
(GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.
The financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable
and prudent judgements and estimates.
The accounting officer acknowledges that he is ultimately responsible for the system of internal financial control established by
the municipality and place considerable importance on maintaining a strong control environment. To enable the accounting
officer to meet these responsibilities, the accounting officer sets standards for internal control aimed at reducing the risk of
error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly
defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk.
These controls are monitored throughout the municipality and all employees are required to maintain the highest ethical
standards in ensuring the municipality’s business is conducted in a manner that in all reasonable circumstances is above
reproach. The focus of risk management in the municipality is on identifying, assessing, managing and monitoring all known
forms of risk across the municipality. While operating risk cannot be fully eliminated, the municipality endeavours to minimise it
by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within
predetermined procedures and constraints.
The accounting officer is of the opinion, based on the information and explanations given by management, that the system of
internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial
statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance
against material misstatement or deficit.
The accounting officer has reviewed the municipality’s cash flow forecast for the year to 30 June 2021 and, in the light of this
review and the current financial position, he is satisfied that the municipality has or has access to adequate resources to
continue in operational existence for the foreseeable future.
The municipality is wholly dependent on the municipality for continued funding of operations. The financial statements are
prepared on the basis that the municipality is a going concern and that the municipality has neither the intention nor the need to
liquidate or curtail materially the scale of the municipality.
Although the accounting officer are primarily responsible for the financial affairs of the municipality, they are supported by the
municipality's external auditors.
The external auditors are responsible for independently reviewing and reporting on the municipality's financial statements. The
financial statements have been examined by the municipality's external auditors and their report is presented on page 9.
The financial statements set out on pages 10 to 99, which have been prepared on the going concern basis, were approved by
the accounting officer on 31 October 2020 and were signed on its behalf by:
Mr TG Magabane
ACCOUNTING OFFICER - Municipal Manager
5
MARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
Financial Statements for the year ended 30 June 2020
Audit Committee Report
6
MARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
Financial Statements for the year ended 30 June 2020
Audit Committee Report
7
MARULENG LOCAL MUNICIPALITY
(Registration number LIM 335)
Financial Statements for the year ended 30 June 2020
Audit Committee Report
8
Report of the Auditor General
To the Provincial Legislature of MARULENG LOCAL MUNICIPALITY
Audited by: Auditor-General of SA (AGSA)
28 February 2021
9
