TSH City of Tshwane Consolidated AFS 2011-12 audited

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CITY OF TSHWANE METROPOLITAN MUNICIPALITY
Annual Consolidated Financial Statements
for the year ended 30 June 2012
City of Tshwane Metropolitan Municipality
Annual Consolidated Financial Statements for the year ended 30 June 2012
General Information
Legal form of entity Municipality (MFMA)
Mayoral committee
Executive Mayor Ramokgopa, Kgosientso
Mosupyoe, Morakane (Speaker)
Councillors Mabona, Jabu (Chief Whip)
Pillay, Subesh (MMC: Economic Development & Planning)
Ngonyama, Joshua( MMC: Housing and Sustainable Human Settlement)
Malapane, Nkele (Ms) (MMC: Agriculture and Environment)
Mashego, Terence (MMD: Safety and Security)
Mabiletsa, Dorothy (Ms) (MMC: Finance)
Kgaditse, Faith (Ms) (MMC: sport, Recreations, Arts and Culture)
Matjila, George (MMC: Roads and Transport)
Zitha, Percy (MMC: Public Works and Infrastructure)
Moselelane, Sibongile (Ms) (MMC: Health and Social Development)
Mmoko, Thembi (Ms) (MMC: Corporate and Shared Services)
Grading of local authority High Capacity (Metro)
Accounting Officer Ngobeni, Jason
Telephone: [phone]
Chief Financial Officer (CFO) Dyakala, Andile
Telephone: [phone]
Registered office
Isivuno House
cnr Madiba Rd and Lillian Ngoyi Street
PRETORIA
0002
Postal address P O Box 408
PRETORIA
0002
Bankers Standard Bank
Auditors Auditor-General South Africa (AGSA)
Legislation governing the municipality's operations
Local Government: Municipal Finance Management Act (Act 56 of 2003)
Local Government: Municipal Systems Act (Act 32 of 2000)
Local Government: Municipal Structures Act (Act 117 of 1998)
Housing Act (Act 107 of 1997)
Constitution of the Republic of South Africa (Act 108 of 1996)
Property Rates Act (Act 6 of 2004)
Division of Revenue Act (Act 1 of 2007)
Entities consolidated
Consistent with the prior financial year the following Municipal entities were
included in the Consolidated Annual Financial Statements:
Housing Company Tshwane
Sandspruit Works Association
Tshwane Economic Development Agency (TEDA)
Entities dormant/being disestablished
Metsweding Economic Development Agency (MEDA) - Council decision of 25
August 2011 to disestablish MEDA
1
City of Tshwane Metropolitan Municipality
Annual Consolidated Financial Statements for the year ended 30 June 2012
Index
The reports and statements set out below comprise the annual consolidated financial statements presented to the provincial legislature:
Index Page
Certification by City Manager 3
Report of the Chief Financial Officer 4
Statement of Financial Position 17
Statement of Financial Performance 18
Statement of Changes in Net Assets 19
Cash Flow Statement 20
Accounting Policies 21 - 41
Notes to the Annual Consolidated Financial Statements 42 - 138
The following supplementary information does not form part of the annual consolidated financial statements and is unaudited:
Appendixes:
Appendix A: Schedule of External loans 139 - 140
Appendix B: Analysis of Property, Plant and Equipment 141 - 142
Appendix C: Segmental analysis of Property, Plant and Equipment 143
Appendix D: Segmental Statement of Financial Performance 144
Appendix E: Actual Operating Revenue and Expenditure versus Budget 145
Appendix F: Segmental Actual Operating Revenue and Expenditure versus Budget 146
Appendix G: Capital Expenditure: Actual versus Budget 147
Appendix H: Disclosure of Grants and Subsidies in terms of the Municipal Finance Management Act 148 - 149
2
City of Tshwane Metropolitan Municipality
Annual Consolidated Financial Statements for the year ended 30 June 2012
Certification by City Manager
The accounting officeris 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 annual consolidated financial statements and related financial information included in this
report. It is the responsibility of the accounting officer to ensure that the annual consolidated financial statements fairly present the state of
affairs of the municipality as at the end of the financial year and the results of its operations and cash flows for the period then ended. The
external auditors are engaged to express an independent audit opinion on the annual consolidated financial statements and are given
unrestricted access to all financial records and related data of the municipality.
The annual consolidated financial statements have been prepared in accordance with South African Statements of Generally Recognised
Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.
The annual consolidated financial statements are based upon appropriate accounting policies consistently applied and supported by
reasonable and prudent judgments and estimates.
The accounting officeracknowledges that heis ultimately responsible for the system of internal financial control established by the group
and places considerable importance on maintaining a strong control environment. To enable the accounting officer to meet these
responsibilities, the accounting officer sets standards for internal controls 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 group and all
employees are required to maintain the highest ethical standards in ensuring the group’s business is conducted in a manner that in all
reasonable circumstances is above reproach. The focus of risk management in the group is on identifying, assessing, managing and
monitoring all known forms of risk across the group. While operating risk cannot be fully eliminated, the group 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 annual consolidated financial
statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material
misstatement or deficit.
I am responsible for the preparation of these annual consolidated financial statements, which are set out from pages 17 to 138, in terms of
Section 126(1) of the Municipal Finance Management Act and which I have signed on behalf of the Municipality.
I certify that the salaries, allowances and benefits of Councillors, loans made to Councillors, if any, and payments made to Councillors for
loss of office, if any, as disclosed in note 28 of 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 Office Bearers Act and the Minister of Provincial and Local
Government’s determination in accordance with this Act.
Jason Ngobeni
CITY MANAGER
Pretoria
30 September 2012
3
City of Tshwane Metropolitan Municipality
Annual Consolidated Financial Statements for the year ended 30 June 2012
 










   

 
 





 
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