LIM365 Modimolle AFS 2009-10 unaudited

1.2 MB·

MODIMOLLE LOCAL
MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
Annual Financial Statements
for
MODIMOLLE LOCAL MUNICIPALITY
for the year ended 30 June 2010
Province: Limpopo
AFS rounding: R (i.e. only cents)
Contact Information:
Name of Municipal Manager: K S Lekala (Acting)
Name of Chief Financial Officer: S S M Botha (Acting)
Contact telephone number: 014 718 2000
Contact e-mail address: [email protected]
Name of contact at provincial
treasury: N Mbungela
Contact telephone number: 015 291 8534
Contact e-mail address: [email protected]
Name of relevant Auditor: Auditor-General of South Africa
Contact telephone number: 015 299 4400
Contact e-mail address:
Name of contact at National
Treasury: Thomas Matjeni
Contact telephone number: 012 315 5792
Contact e-mail address: [email protected]
MODIMOLLE LOCAL MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
General information
Members of the Council
KE Lekalakala Mayor
MJ Mashao Speaker
SA Sebolai Members of the Executive Committee
WL Fourie
MS Olifant Members
SD Sebelebele
LR Motshegoa
LG Trichardt
R Molekoa
LW Van Aswegen
SR Monanyane
MA Moima
WL Botes
SF Kobe
MP Kekana
MS Motshegoa (Chief Whip)
Municipal Manager
K S Lekala (Acting)
Chief Financial Officer
S S M Botha (Acting)
Grading of Local Authority
3
Auditors
Auditor-General
Bankers
First National Bank
MODIMOLLE LOCAL MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
General information (continued)
Registered Office: Municipal Offices
Physical address: Oliver Tambo Square
Harry Gwala Street
Modimolle
0510
Postal address: Private Bag X1008
Modimolle
0510
Telephone number: 014 718 2000
Fax number: 014 717 4077
E-mail address: [email protected]
MODIMOLLE LOCAL MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
APPROVAL OF ANNUAL FINANCIAL STATEMENTS
Iam responsible for the preparation of these annual financial statements, which are set out
onpages 1to38,interms ofSection126(1) oftheMunicipalFinance Management Actand
which I have signed on behalf of the Municipality.
Icertifythatthesalaries, allowances andbenefits ofCouncillors, loansmade toCouncillors,
ifany,andpaymentsmade toCouncillors forloss ofoffice, ifany,asdisclosed innote25of
these annual financial statements are within the upper limits of the framework envisaged in
Section 219 of the Constitution, read with the Remuneration of Public Officer Bearers Act
andtheMinisterofProvincialandLocalGovernment’sdeterminationinaccordance withthis
Act.
K S LEKALA
MUNICIPAL MANAGER DATE
MODIMOLLE LOCAL MUNICIPALITY
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
INDEX
CONTENTS Page
STATEMENT OF FINANCIAL POSITION 1
STATEMENT OF FINANCIAL PERFORMANCE 2
STATEMENT OF CHANGES IN NET ASSETS 3
STATEMENT OF CASHFLOWS 4
NOTES TO THE ANNUAL FINANCIAL STATEMENTS 5
APPENDICES
A SCHEDULE OF INTEREST BEARING BORROWINGS 32

B ANALYSIS OF PROPERTY PLANT AND EQUIPMENT 33

SEGMENTAL ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT
C 34

D SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE 35

E(1) ACTUAL VERSUS BUDGET (REVENUE AND EXPENDITURE) 36
E(2) ACTUAL VERSUS BUDGET (ACQUISITION OF PROPERTY, PLANT
AND EQUIPMENT) 37
F DEVIATION FROM SUPPLY CHAIN PROCESSES 38
MODIMOLLE LOCAL MUNICIPALITY
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010
2010 2009
Note R R
ASSETS
Current assets
Cash and cash equivalents 2 17 529 309 10 592 483
Consumer debtors 3 18 813 557 20 676 256
Other receivables 4 2 397 316 3 135 498
Inventories 5 4 302 880 3 816 791
Non current assets held for sale 6 500 000 -
VAT receivable 7 397 759 2 750 692
Investments 11 11 121 145 16 661 279
Non-current assets
Property, plant & equipment 8 236 660 958 221 456 507
Intangible assets 9 256 171 -
Receivables 10 100 267 100 267
Investments 11 1 462 107 1 253 513
Total assets 293 541 470 280 443 286
LIABILITIES
Current liabilities
Bank overdraft 2 - 1 216 250
Trade and other payables 12 18 080 227 17 463 492
Consumer deposits 13 2 500 978 2 378 025
Unspent conditional grants and receipts 14 9 077 484 2 513 140
Current portion of borrowings 15 496 421 446 081
Current portion of finance lease obligation 16 216 447 263 250
Non-current liabilities
Borrowings 15 3 130 599 3 651 446
Finance lease liability 16 152 467 368 914
Non current provision 17 12 323 194 11 306 934
Total liabilities 45 977 818 39 607 532
247 563 652 240 835 754
Net Assets
Housing Development Fund 483 263 483 263
Revaluation Reserve 40 063 462 40 063 462
Accumulated Surplus 207 016 927 200 289 029
247 563 652 240 835 754
1
MODIMOLLE LOCAL MUNICIPALITY
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2010
2010 2009
Note R R
REVENUE
Property rates 18 12 907 381 11 938 113
Service charges 19 74 478 685 58 409 794
Finance income 20 5 215 260 5 926 967
Government grants and subsidies received - operating 21 39 106 633 29 261 630
Government grants and subsidies received - capital 21 22 540 108 25 788 941
Rental of facilities and equipment 203 939 122 025
Fines 143 962 85 313
Agency fees 2 626 423 1 960 095
Public contributions, donated and contributed property,
plant and equipment 22 - 65 856
Other revenue 23 2 146 980 1 770 871
Total Revenue 159 369 370 135 329 605
EXPENDITURE
Employee related costs 24 44 692 928 41 686 891
Remuneration of councillors 25 3 498 063 3 167 246
Bad debts 10 901 629 -
Depreciation and amortisation expense 26 9 348 583 9 047 219
Finance cost 27 1 557 143 726 528
Repairs and maintenance 6 529 718 3 600 076
Bulk purchases 28 38 144 170 26 379 616
General expenses 29 37 230 581 24 557 871
Total Expenditure 151 902 814 109 165 446
Gain/(Loss) on disposal of assets 30 (253 973) (3 535 199)
Gain/(Loss) on fair value adjustment 31 - 39 710 878
NET SURPLUS FOR THE YEAR 7 212 582 62 339 839
2
MODIMOLLE LOCAL MUNICIPALITY
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2010
Housing Accumulated
Revaluation Total: Net
Development Surplus/
Reserve Assets
Fund (Deficit)
R R
Balance at 1 July 2008 483 263 - 129 367 326 129 850 589
Surplus/(deficit) for the period 22 628 961 22 628 961
Previous years adjustments 8 581 864 8 581 864
Revaluation of property, plant and equipment 40 063 462 40 063 462
Balance at 30 June 2009 483 263 40 063 462 160 578 151 201 124 876
Balance at 1 July 2009
Change in accounting policy (note 33) 39 710 878
Restated balance 483 263 40 063 462 200 289 029 201 124 876
Changes in equity for 2010
Previous year adjustment (note 32) ( 484 684)
Surplus/(deficit) for the period 7 212 582 7 212 582
Balance at 30 June 2010 483 263 40 063 462 207 016 927 208 337 458
3
MODIMOLLE LOCAL MUNICIPALITY
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2010
2010 2009
Note R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from ratepayers, government and others 165 075 757 128 443 608
Cash paid to suppliers and employees ( 140 631 662) (104 801 375)
Cash generated from / (utilised in) operations 34 24 444 095 23 642 233
Finance income 5 215 260 5 926 967
Finance costs ( 540 883) ( 726 528)
Net cash from operating activities 29 118 472 28 842 673
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and other assets (25 563 180) (34 178 896)
(Increase)/decrease in non-current investments ( 208 594) 654 626
Decrease/(increase) in current investments 5 540 134 (2 426 258)
Net cash used in investing activities (20 231 639) (35 950 528)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in long term loans ( 470 507) ( 599 416)
Payment of finance lease liabilities ( 263 250) ( 429 785)
Net cash used in financing activities ( 733 757) (1 029 201)
Increase/(decrease) in cash and cash equivalents 8 153 076 (8 137 056)
Cash and cash equivalents at beginning of the year 9 376 233 17 513 289
Cash and cash equivalents at end of the year 17 529 309 9 376 233

4