Verslag Ingxelo Report

Transcription

1 Verslag Ingxelo Report Kantoor van die Direkteur: Finansies 20 Julie /1/2/2-2 WYK: ALLE ITEM 7.4 VAN DIE AGENDA VAN N GEWONE RAADSVERGADERING WAT GEHOU SAL WORD OP 27 JULIE 2017 ONDERWERP: KWARTAALVERSLAG (ARTIKEL 52 van MFMA) : APRIL JUNIE 2017 SUBJECT: QUARTERLY REPORT (ARTICLE 52 of MFMA) : APRIL JUNE AGTERGROND / BACKGROUND Die doel van hierdie verslag is om te voldoen aan die vereistes van Artikel 52 (d) van die Wet op Munisipale Finansiële Bestuur, No. 56 van 2003, wat die algemene verantwoordelikhede van die Burgermeester voorskryf om aan die raad die finansiële posisie asook die finansiële vordering van die munisipaliteit voor te lê, gemeet teenoor die goedgekeurde begroting vir die 4de kwartaal soos op 30 Junie Insluitend is die prestasie verslag gemeet teenoor die Topvlak Dienslewering en Begroting Implementeringsplan van 2016/2017. The purpose of this report is to comply with the requirements of Section 52 (d) of the Municipal Finance Management Act, No. 56 of 2003, which prescribes the general responsibilities of the Mayor to table to council the financial position as well as the financial progress of the municipality, measured against the approved budget for the 4th quarter as at 30 June Included, also find the performance report measured against the Top Level Service Delivery and Budget Implementation Plan of 2016/ WETGEWING / LEGISLATION 2.1 Local Government: Municipal Systems Act 32 of Local Government: Municipal Finance Management Act 56 of KOPPELING AAN DIE GOP / LINK TO THE IDP Die kwartaalverslag koppel met Hoofstuk 7 van die GOP - Strategiese Uitkoms 1 ( n Finansieel volhoubare munisipaliteit met bates wat goed onderhou word) en dan veral met: Uitset 1.1 (Versekerde en verhoogde bronne van inkomste) Uitset 1.2 (Bekostigbare en goed bestuurde begroting) Uitset 1.3 (Beperking van uitgawes) Uitset 1.4 (Bates wat goed bestuur en onderhou word)

2 The quarterly report links with Chapter 7 of the IDP - Strategic Outcome 1 (A financially sustainable municipality with assets that are well maintained) and more specifically with: Output 1.1 (Insured and increased sources of revenue) Output 1.2 (Affordable and well-managed budget) Output 1.3 (Curbing of expenses) Output 1.4 (Well managed and maintained assets 4. FINANSIËLE IMPLIKASIE / FINANCIAL IMPLICATION None for June 2017, year-end transactions are still being processed which will influence the performance more positively. Geen vir Junie 2017, jaar-einde transaksies word nog steeds verwerk, wat die prestasie meer positief sal beïnvloed. 5. AANBEVELING / RECOMMENDATION Dat die raad kennis neem van die aangehegte kwartaalverslag, soos voorgeskryf deur Artikel 52 van die Wet op Munisipale Finansiële Bestuur, Wet 56 van 2003 ten opsigte van die implementering van die begroting sowel as die prestasie teenoor die Topvlak Dienslewering en Begroting Implementeringsplan van die munisipaliteit vir die periode 1 April 2017 tot 30 Junie That Council takes cognisance of the attached quarterly report, as required by Section 52 of the Municipal Finance Management Act, Act 56 of 2003 regarding the implementation of the budget as well as the performance against the Top Layer Service Delivery and Budget Implementation Plan of the municipality for the period 1 April 2017 to 30 June (Get) M BOLTON DIREKTEUR: Finansiële Dienste

3 WC015 Swartland Municipality Section 52 Quarterly Report Quarter 4 April June 2017

4 Table of Contents PART 1: IN-YEAR REPORT PAGE Section 1 Mayor s Report.3 Section 2 Resolutions...3 Section 3 Executive Summary Section 4 In-year budget statement tables PART 2 SUPPORTING DOCUMENTATION Section 5 Debtors' analysis Section 6 Creditors' analysis...22 Section 7 Investment portfolio analysis Section 8 Allocation and grant receipts and expenditure Section 9 Expenditure on Councillor, Senior Managers and Other Staff Section 10 Material variances to the SDBIP.31 Section 11 Capital programme performance.31 Section 12 Other supporting documentation Section 13 Quality certification

5 Section 1 Mayor s Report PART 1 IN-YEAR REPORT 1.1 In -Year Report Quarterly Budget Statement The quarterly budget statement for June 2017 has been prepared to meet the legislative requirements of the Municipal Budget and Reporting Regulations. 1.2 Financial problems or risks facing the municipality No problems or risks are facing the municipality currently. Section 2 - Resolutions RECOMMENDATION: That Council takes cognisance of the quarterly budget statement and supporting documentation for June Section 3 Executive Summary 3.1 Introduction It is required by Section 52(d) of the Municipal Finance Management Act that the Mayor of the Municipality, must within 30 days of the end of each quarter, submit a report to the council on the implementation of the budget and the financial state of affairs of the municipality. 3.2 Consolidated performance The following table summarises the overall position on the capital and operating Budgets Original Budget Roll-Over Adjusted Budget Second Adjusted Budget YTD Actual YTD Variance YTD Variance % Operating Expenditure R R R R R % Operating Revenue R R R R R % Capital R R R R R % 3

6 3.2.1 Actual vs Planned - Capital, Operational Expenditure and Revenue per directorate (SDBIP 2016/17) SWARTLAND MUNICIPALITY APRIL MAY JUNE SERVICE DELIVERY AND BUDGET Planned Actual % Planned Actual % Planned Actual % Planned Actual % IMPLEMENTATION PLAN 2017 Q4 QUARTER 4 Annual YTD Actual % YTD Budget Actual of Annual Budget CIVIL SERVICES CORPORATE SERVICES Expenditure % % % % % Capital % % % % % Expenditure % % % % % Capital % % % % % COUNCIL SERVICES ELECTRICITY SERVICES FINANCIAL SERVICES Expenditure % % % % % Capital % % % % % Expenditure % % % % % Capital % % % % % Expenditure % % % % % Capital % % % % % DEVELOPMENT SERVICES MUNICIPAL MANAGER PROTECTION SERVICES Expenditure % % % % % Capital % % % % % Expenditure % % % % % Capital % % % % % Expenditure % % % % % Capital % % % % % TOTAL Expenditure % % % % % Capital % % % % % NB: The above SDBIP includes transfers and grants received for quarter 4, whereas the C schedule does not include these amounts due to the fact that these amounts will only be recognized as income in June 2017.

7 Capital, Operational Expenditure and Revenue per directorate (SDBIP 2015/16) SWARTLAND MUNICIPALITY APRIL MAY JUNE QUARTER 4 Annual SERVICE DELIVERY AND BUDGET Planned Actual % Planned Actual % Planned Actual % Planned Actual % Planned YTD Actual % IMPLEMENTATION PLAN 2016 Q4 CIVIL SERVICES CORPORATE SERVICES COUNCIL SERVICES ELECTRICITY SERVICES FINANCIAL SERVICES DEVELOPMENT SERVICES MUNICIPAL MANAGER PROTECTION SERVICES TOTAL Operational % % % % % Capital % % % % % Operational % % % % % Capital % % % % % Operational % % % % % Capital % % % % % Operational % % % % % Capital % % % % % Operational % % % % % Capital % % % % % Operational % % % % % Capital % % % % % Operational % % % % % Capital 625-0% % 625-0% % % Operational % % % % % Capital % % % % % Operational % % % % % Capital % % % % % 5

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9 3.2.2 OPERATING REVENUE ACTUAL RECEIPTS VERSUS BILLING PER SERVICE Apr-17 May-17 Jun-17 Quarter /2017 Debtors Actual Debtors Actual Debtors Actual Debtors Actual % Raised Payments Raised Payments Raised Payments Raised Payments ELECTRICITY % RATES % SEWERAGE % AVAILABILITY % HOUSING % WATER % REFUSE % OTHER % % 2015/2016 Apr-16 May-16 Jun-16 Quarter 4 Debtors Actual Debtors Actual Debtors Actual Debtors Actual % Raised Payments Raised Payments Raised Payments Raised Payments ELECTRICITY % RATES % SEWERAGE % AVAILABILITY % HOUSING % WATER % REFUSE % OTHER % % The payment rate of 89.71% for the Fourth quarter of the 2016/17 financial year shows a slight decline when compared to the rate of 91.86% for the 2015/16 financial year. The actual payments refer to amounts received for the previous month s debtors raised. Credit control processes are consistently reinforced to ensure that all monies due are collected. 7

10 3.2.3 Revenue by source against Annual Budget WC015 Swartland - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q4 Fourth Quarter 2015/16 Budget Year 2016/17 Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Revenue By Source Property rates % Property rates - penalties & collection Serv ice charges - electricity rev enue (3 717) -2% Serv ice charges - w ater rev enue (1 537) -3% Serv ice charges - sanitation rev enue (2 627) -9% Serv ice charges - refuse rev enue (1 539) -7% Serv ice charges - other Rental of facilities and equipment % Interest earned - ex ternal inv estments % Interest earned - outstanding debtors % Div idends receiv ed Fines (27 962) -99% Licences and permits % Agency serv ices % Transfers recognised - operational (37 255) -39% Other rev enue % Gains on disposal of PPE % 200 Total Revenue (excluding capital transfers and contributions) (57 671) -10% The statement of Financial Performance compares the expenditure and revenue against the budget for the period ended 30 June Service charges Water stands at 3% below YTD budgeted projections and can be attributed that the consumer is saving water due to the level 3 water restrictions that is applicable. Rental of facilities and equipment are 17% above budgeted projections due to higher than normal rental of Caravan Sites in Yzerfontein. Interest earned external investments are 14% above due to an increase in the interest rates. Revenue received from Fines is at 99% below YTD budgeted projections. The largest portion of Fines must still be recognised for 30 June 2017 as a result of the reconciliation process associated with the payments received by TMT. Transfers recognised operational currently stands at 39% below YTD budget projections. This includes the equitable share grant that was received, whereas the other grants must still be recognized for June Gains on disposal of PPE are revenue from Sale of land transactions/auction that was under budgeted. Revenue received for the month of June 2017 was R54.5 million and stands at 10% below the budgeted projections. Year end transactions are still being processed which will influence the performance more positively.

11 3.2.4 Expenditure by source against Annual Budget WC015 Swartland - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q4 Fourth Quarter Expenditure By Type Employ ee related costs (19 739) -11% Remuneration of councillors (286) -3% Debt impairment (17 983) -100% Depreciation & asset impairment (1 000) -1% Finance charges (69) 0% Bulk purchases (21 337) -10% Other materials Contracted serv ices (258) -6% Transfers and grants (304) -14% Other ex penditure (30 310) -27% Loss on disposal of PPE (2 251) -100% Total Expenditure (93 537) -15% Surplus/(Deficit) (692) (47 513) (24 665) (3 668) (24 665) (0) (24 665) Transfers recognised - capital (35 419) (0) Contributions recognised - capital (999) (0) 999 Contributed assets - Surplus/(Deficit) after capital (12 798) (3 668) transfers & contributions Taxation Surplus/(Deficit) after taxation (12 798) (3 668) Attributable to minorities Surplus/(Deficit) attributable to (12 798) (3 668) Share of surplus/ (deficit) of Surplus/ (Deficit) for the year (12 798) (3 668) Employee Related Cost stands at 11% below the YTD budgeted projections and year end transactions are still being processed. Debt impairment in terms of debtors and traffic fines must still be recognized for 30 June Bulk purchases stand at 10% below the YTD budgeted projections and is linked to the under performance of Service charges Water. Other expenditure stand at 27% below the YTD budgeted projections and year end transactions are still being processed. Expenditure for the month of June 2017 was R58.2 million whilst the overall YTD performance stands at 15% below the budgeted projections. Year end transactions are still being processed in this regard. 9

12 3.2.5 Capital expenditure and graphs against Annual Budget WC015 Swartland - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, standard classification and funding) - Q4 Fourth 2015/16 Budget Year 2016/17 Vote Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Capital Expenditure - Standard Classification Governance and administration (361) -4% Ex ecutiv e and council (19) -2% 818 Budget and treasury office (0) -1% 21 Corporate serv ices (342) -5% Community and public safety (4 553) -18% Community and social serv ices (210) -37% 580 Sport and recreation (4 034) -21% Public safety (0) 0% 510 Housing (309) -6% Economic and environmental services (2 846) -13% Planning and dev elopment % 40 Road transport (2 847) -13% Trading services (2 132) -8% Electricity (92) -1% Water (1 955) -20% Waste w ater management (85) -1% Waste management (0) 0% Total Capital Expenditure - Standard Classification (9 893) -12% Funded by: National Gov ernment (3 334) -13% Prov incial Gov ernment (1 941) -20% Transfers recognised - capital (5 276) -15% Public contributions & donations (999) -100% 999 Internally generated funds (3 618) -8% Total Capital Funding (9 893) -12% Capital expenditure for the month of June amounts to R As at 30 June 2017 the total YTD capital expenditure amounts to R and stands at 12% below the projected YTD expenditure. Payments and year end journals are still being processed for 30 June 2017 and therefore the current performance must be viewed as interim figures. 10

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14 3.2.6 PERFORMANCE INDICATORS WC015 Swartland - Supporting Table SC2 Monthly Budget Statement - performance indicators - Q4 Fourth Quarter Description of financial indicator Basis of calculation Original Budget Budget Year 2016/17 Adjusted YearTD Budget actual Full Year Forecast Borrowing Management Capital Charges to Operating Expenditure Interest & principal paid/operating Ex penditure 15.2% 15.4% 1.5% 15.2% Borrow ed funding of 'ow n' capital ex penditure Borrow ings/capital ex penditure ex cl. transfers and grants 0.0% 0.0% 0.0% 0.0% Safety of Capital Debt to Equity Loans, Accounts Pay able, Ov erdraft & Tax Prov ision/ Funds & Reserv es Gearing Long Term Borrow ing/ Funds & Reserv es Liquidity Current Ratio Current assets/current liabilities 3 : : 1 3:1 3 : 1 Liquidity Ratio Monetary Assets/Current Liabilities 2 : 1 2 : 1 3:1 2 : 1 Revenue Management Annual Debtors Collection Rate Last 12 Mths Receipts/ Last 12 Mths Billing 95.0% 95.00% 94.50% 95.0% (Payment Lev el %) Outstanding Debtors to Rev enue Total Outstanding Debtors to Annual Rev enue 16.6% 16.6% 10.3% 13.4% Longstanding Debtors Recov ered Debtors > 12 Mths Recov ered/total Debtors > 16.6% 16.6% 10.2% 16.6% 12 Months Old Creditors Management Creditors Sy stem Efficiency % of Creditors Paid Within Terms (w ithin MFMA s 65(e)) 100% 98.9% 100% Funding of Provisions Percentage Of Prov isions Not Funded Unfunded Prov isions/total Prov isions Other Indicators Electricity Distribution Losses % Volume (units purchased and generated less units 5.81% 5.81% 5.80% 5.81% sold)/units purchased and generated Water Distribution Losses % Volume (units purchased and ow n source less units 15.36% 15.36% 16.54% 15.36% sold)/total units purchased and ow n source Employ ee costs Employ ee costs/total Rev enue - capital rev enue 29.6% 29.1% 28.5% 29.1% Repairs & Maintenance R&M/Total Rev enue - capital rev enue 7.9% 7.7% 5.4% 7.7% Interest & Depreciation I&D/Total Rev enue - capital rev enue 16.4% 16.0% 17.5% 16.4% IDP regulation financial viability indicators i. Debt cov erage (Total Operating Rev enue - Operating Grants)/Debt serv ice pay ments due w ithin financial y ear) ii. O/S Serv ice Debtors to Rev enue Total outstanding serv ice debtors/annual rev enue received for serv ices iii. Cost cov erage (Av ailable cash + Inv estments)/monthly fix ed operational ex penditure % 23.4% 14.5% 23.4%

15 Section 4 In-year budget statement tables 4.1 Monthly budget statements Table C1: s71 Monthly Budget Statement Summary WC015 Swartland - Table C1 Monthly Budget Statement Summary - Q4 Fourth Quarter 2015/16 Budget Year 2016/17 Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Financial Performance Property rates % Serv ice charges (9 420) -3% Inv estment rev enue % Transfers recognised - operational (37 255) -39% Other ow n rev enue (19 001) -32% Total Revenue (excluding capital transfers (57 671) -10% and contributions) Employ ee costs (19 739) -11% Remuneration of Councillors (286) -3% Depreciation & asset impairment (1 000) -1% Finance charges (69) -0% Materials and bulk purchases (21 337) -10% Transfers and grants (304) -14% Other ex penditure (50 802) -37% Total Expenditure (93 537) -15% Surplus/(Deficit) (692) (47 513) (24 665) (3 668) (24 665) % (24 665) Transfers recognised - capital (35 419) -100% Contributions & Contributed assets (999) -100% 999 Surplus/(Deficit) after capital transfers & contributions (12 798) (3 668) (551) -5% Share of surplus/ (deficit) of associate Surplus/ (Deficit) for the year (12 798) (3 668) (551) -5% Capital expenditure & funds sources Capital expenditure (9 893) -12% Capital transfers recognised (5 276) -15% Public contributions & donations (999) -100% 999 Borrow ing Internally generated funds (3 618) -8% Total sources of capital funds (9 893) -12% Financial position Total current assets Total non current assets Total current liabilities Total non current liabilities Community wealth/equity Cash flows Net cash from (used) operating % Net cash from (used) inv esting (86 502) (74 469) (81 207) (8 117) (64 756) (81 207) (16 452) 20% (81 207) Net cash from (used) financing (4 712) (4 462) (4 462) (2 176) (4 168) (4 562) (393) (4 462) Cash/cash equivalents at the month/year end (14 962) -5% Debtors & creditors analysis 0-30 Days Days Days Days Dys Dys 181 Dys- 1 Yr Over 1Yr Total Debtors Age Analysis Total By Income Source Creditors Age Analysis Total Creditors

16 4.1.2 Table C2: Monthly Budget Statement - Financial Performance (standard classification) WC015 Swartland - Table C2 Monthly Budget Statement - Financial Performance (standard classification) - Q4 Fourth Budget Year 2016/17 Description Original Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Revenue - Standard Governance and administration % Ex ecutiv e and council (190) -41% 463 Budget and treasury office % Corporate serv ices (3 205) -77% Community and public safety (66 162) -93% Community and social serv ices (9 652) -90% Sport and recreation (15 972) -83% Public safety (28 535) -99% Housing (12 004) -98% Health Economic and environmental services (19 350) -62% Planning and dev elopment % Road transport (19 781) -70% Env ironmental protection Trading services (16 168) -4% Electricity (6 712) -3% Water (6 798) -11% Waste w ater management (1 308) -2% Waste management (1 350) -4% Other (0) 0% 23 Total Revenue - Standard (94 089) -15% Expenditure - Standard Governance and administration (20 975) -22% Ex ecutiv e and council (2 007) -10% Budget and treasury office (12 819) -34% Corporate serv ices (6 149) -17% Community and public safety (24 549) -27% Community and social serv ices (2 138) -12% Sport and recreation (2 740) -13% Public safety (16 437) -41% Housing (3 234) -23% Health Economic and environmental services (16 443) -18% Planning and dev elopment (1 196) -9% Road transport (15 247) -20% Env ironmental protection Trading services (31 461) -9% Electricity (19 415) -9% Water (6 040) -11% Waste w ater management (2 800) -6% Waste management (3 207) -11% Other (109) -9% Total Expenditure - Standard (93 537) -15% Surplus/ (Deficit) for the year (12 798) (3 668) (551) -5%

17 4.1.3 Table C3: Monthly Budget Statement - Financial Performance (revenue and expenditure by municipal vote) WC015 Swartland - Table C3 Monthly Budget Statement - Financial Performance (revenue and expenditure by municipal vote) - Q4 Fourth Vote Description 2015/16 Budget Year 2016/17 Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Revenue by Vote Vote 1 - Corporate Serv ices (9 781) -92.7% Vote 2 - Civ il Serv ices (49 913) -26.1% Vote 3 - Council (53) -16.3% 325 Vote 4 - Electricity Serv ices (6 712) -2.7% Vote 5 - Financial Serv ices % Vote 6 - Dev elopment Serv ices (11 268) -62.8% Vote 7 - Municipal Manager (137) Vote 8 - Protection Serv ices (27 211) -77.0% Total Revenue by Vote (94 089) -14.8% Expenditure by Vote Vote 1 - Corporate Serv ices (3 407) -13.8% Vote 2 - Civ il Serv ices (30 687) -1% Vote 3 - Council (928) -6.4% Vote 4 - Electricity Serv ices (21 288) -9.4% Vote 5 - Financial Serv ices (12 819) -34.3% Vote 6 - Dev elopment Serv ices (5 397) -17.2% Vote 7 - Municipal Manager (1 079) -17.5% Vote 8 - Protection Serv ices (17 932) -37.7% Total Expenditure by Vote (93 537) -15.0% Surplus/ (Deficit) for the year (12 798) (3 668) (551) -4.7%

18 4.1.4 Table C4: Monthly Budget Statement - Financial Performance (revenue and expenditure) WC015 Swartland - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q4 Fourth Quarter 2015/16 Budget Year 2016/17 Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Revenue By Source Property rates % Property rates - penalties & collection Serv ice charges - electricity rev enue (3 717) -2% Serv ice charges - w ater rev enue (1 537) -3% Serv ice charges - sanitation rev enue (2 627) -9% Serv ice charges - refuse rev enue (1 539) -7% Serv ice charges - other Rental of facilities and equipment % Interest earned - ex ternal inv estments % Interest earned - outstanding debtors % Div idends receiv ed Fines (27 962) -99% Licences and permits % Agency serv ices % Transfers recognised - operational (37 255) -39% Other rev enue % Gains on disposal of PPE % 200 Total Revenue (excluding capital transfers and contributions) (57 671) -10% Expenditure By Type Employ ee related costs (19 739) -11% Remuneration of councillors (286) -3% Debt impairment (17 983) -100% Depreciation & asset impairment (1 000) -1% Finance charges (69) 0% Bulk purchases (21 337) -10% Other materials Contracted serv ices (258) -6% Transfers and grants (304) -14% Other ex penditure (30 310) -27% Loss on disposal of PPE (2 251) -100% Total Expenditure (93 537) -15% Surplus/(Deficit) (692) (47 513) (24 665) (3 668) (24 665) (0) (24 665) Transfers recognised - capital (35 419) (0) Contributions recognised - capital (999) (0) 999 Contributed assets - Surplus/(Deficit) after capital transfers & contributions (12 798) (3 668) Taxation Surplus/(Deficit) after taxation (12 798) (3 668) Attributable to minorities Surplus/(Deficit) attributable to (12 798) (3 668) Share of surplus/ (deficit) of Surplus/ (Deficit) for the year (12 798) (3 668)

19 4.1.5 Table C5: Monthly Budget Statement - Capital Expenditure (municipal vote, standard classification and funding) WC015 Swartland - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, standard classification and funding) - Q4 Fourth 2015/16 Budget Year 2016/17 Vote Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Multi-Year expenditure appropriation Vote 1 - Corporate Serv ices (294) -10% Vote 2 - Civ il Serv ices (113) -2% Vote 6 - Dev elopment Serv ices Vote 8 - Protection Serv ices (0) 0% Total Capital Multi-year expenditure (407) -5% Single Year expenditure appropriation Vote 1 - Corporate Serv ices (70) -2% Vote 2 - Civ il Serv ices (8 980) -17% Vote 3 - Council (9) -1% 705 Vote 4 - Electricity Serv ices (92) -1% Vote 5 - Financial Serv ices (0) -1% 21 Vote 6 - Dev elopment Serv ices (324) -6% Vote 7 - Municipal Manager (10) -9% 113 Vote 8 - Protection Serv ices (0) 0% 510 Total Capital single-year expenditure (9 486) -13% Total Capital Expenditure (9 893) -12% Capital Expenditure - Standard Classification Governance and administration (361) -4% Ex ecutiv e and council (19) -2% 818 Budget and treasury office (0) -1% 21 Corporate serv ices (342) -5% Community and public safety (4 553) -18% Community and social serv ices (210) -37% 580 Sport and recreation (4 034) -21% Public safety (0) 0% 510 Housing (309) -6% Economic and environmental services (2 846) -13% Planning and dev elopment % 40 Road transport (2 847) -13% Trading services (2 132) -8% Electricity (92) -1% Water (1 955) -20% Waste w ater management (85) -1% Waste management (0) 0% Total Capital Expenditure - Standard Classification (9 893) -12% Funded by: National Gov ernment (3 334) -13% Prov incial Gov ernment (1 941) -20% Transfers recognised - capital (5 276) -15% Public contributions & donations (999) -100% 999 Internally generated funds (3 618) -8% Total Capital Funding (9 893) -12%

20 4.1.6 Table C6: Monthly Budget Statement - Financial Position WC015 Swartland - Table C6 Monthly Budget Statement - Financial Position - Q4 Fourth Quarter Description 2015/16 Budget Year 2016/17 Audited Adjusted Original Budget YearTD actual Outcome Budget Full Year Forecast R thousands ASSETS Current assets Cash Consumer debtors Other debtors Current portion of long-term receiv ables Inv entory Total current assets Non current assets Long-term receiv ables Inv estment property Property, plant and equipment Intangible assets Other non-current assets Total non current assets TOTAL ASSETS LIABILITIES Current liabilities Borrow ing Consumer deposits Trade and other pay ables Prov isions Total current liabilities Non current liabilities Borrow ing Prov isions Total non current liabilities TOTAL LIABILITIES NET ASSETS COMMUNITY WEALTH/EQUITY Accumulated Surplus/(Deficit) Reserv es TOTAL COMMUNITY WEALTH/EQUITY

21 4.1.7 Table C7: Monthly Budget Statement - Cash Flow WC015 Swartland - Table C7 Monthly Budget Statement - Cash Flow - Q4 Fourth Quarter 2015/16 Budget Year 2016/17 Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % CASH FLOW FROM OPERATING ACTIVITIES Receipts Property rates, penalties & collection charges % Serv ice charges (18 794) -6% Other rev enue % Gov ernment - operating % Gov ernment - capital (19 144) -49% Interest % Payments Suppliers and employ ees ( ) -155% Finance charges % Transfers and Grants (6 433) -305% NET CASH FROM/(USED) OPERATING ACTIVITIES % CASH FLOWS FROM INVESTING ACTIVITIES Receipts Proceeds on disposal of PPE % 200 Decrease (Increase) in non-current debtors (21) -100% 21 Decrease (increase) other non-current receiv ables 21 Decrease (increase) in non-current investments Payments Capital assets (86 942) (74 690) (81 428) (8 495) (69 261) (81 428) (12 168) 15% (81 428) NET CASH FROM/(USED) INVESTING ACTIVITIES (86 502) (74 469) (81 207) (8 117) (64 756) (81 207) (16 452) 20% (81 207) CASH FLOWS FROM FINANCING ACTIVITIES Receipts Short term loans Borrow ing long term/refinancing Increase (decrease) in consumer deposits % 570 Payments Repay ment of borrow ing (4 712) (5 032) (5 032) (2 299) (5 649) (5 254) 396-8% (5 032) NET CASH FROM/(USED) FINANCING ACTIVITIES (4 712) (4 462) (4 462) (2 176) (4 168) (4 562) (393) 9% (4 462) NET INCREASE/ (DECREASE) IN CASH HELD Cash/cash equiv alents at beginning: Cash/cash equiv alents at month/y ear end:

22 PART 2 SUPPORTING DOCUMENTATION Section 5 Debtors' analysis 5.1 Supporting Table SC3 WC015 Swartland - Supporting Table SC3 Monthly Budget Statement - aged debtors - Q4 Fourth Quarter Description Budget Year 2016/17 Total NT % of Total 0-30 Days Days Days Days Dys Dys 181 Dys-1 Yr Over 1Yr Total over 90 Code Debtors days R thousands Debtors Age Analysis By Income Source Trade and Other Receiv ables from Ex change Transactions - Water % Trade and Other Receiv ables from Ex change Transactions - Electricity % Receiv ables from Non-ex change Transactions - Property Rates % Receiv ables from Ex change Transactions - Waste Water Management % Receiv ables from Ex change Transactions - Waste Management % Receiv ables from Ex change Transactions - Property Rental Debtors % Interest on Arrear Debtor Accounts % Recov erable unauthorised, irregular, fruitless and w asteful expenditure % Other 1900 (931) % Total By Income Source % 2015/16 - totals only Debtors Age Analysis By Customer Group Organs of State % Commercial % Households % Other % Total By Customer Group % Total Debtors has decreased from R in May 2017 to R in June Collection rate for June 2017 is 90.78% compared to 94.50% in May Year to date collection rate is 90.68%

23 5.2 Government Debt Schedule Swartland Municipality for the month ended June 2017 Rates Services Department Responsible for the Debt 0-30 Days Days Days > 90 Days Total 0-30 Days Days Days >90 Days Total Total Debt Grand Total Sec 71 Payment received for the month NPW TPW WCED HEALTH HOUSING OTHER - DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM SUNDRY TOTAL OUTSTANDING OTHER DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM 0% WCED 3% HEALTH 16% HOUSING 0% SUNDRY 0% TPW 7% NPW 74%

24 Section 6 Creditors' analysis 6.1 Supporting Table SC4 WC015 Swartland - Supporting Table SC4 Monthly Budget Statement - aged creditors - Q4 Fourth Quarter Budget Year 2016/17 Prior y ear Description NT Days - Over 1 Total totals for chart Code R thousands 30 Days 60 Days 90 Days 120 Days 150 Days 180 Days 1 Year Year (same period) Creditors Age Analysis By Customer Type Bulk Electricity 0100 Bulk Water 0200 PAYE deductions 0300 VAT (output less input) 0400 Pensions / Retirement deductions 0500 Loan repayments 0600 Trade Creditors Auditor General 0800 Other 0900 Total By Customer Type Section 7 Investment portfolio analysis 7.1 Supporting Table SC5 WC015 Swartland - Supporting Table SC5 Monthly Budget Statement - investment portfolio - Q4 Fourth Quarter Type of Expiry date of Accrued Yield for the Investments by maturity Name of institution & investment ID Period of Investment Investment investment interest for the month month 1 (%) R thousands Yrs/Months Municipality Market value at beginning of the month Change in Market market value at end value of the month STANDARD 150 Day s Fix ed Deposit 30 June % ( ) NEDBANK 364 Day s Fix ed Deposit 30 June % ( ) STANDARD 269 day s Fix ed Deposit 30 June % (30 000) NEDBANK 91 days Fixed Deposit 17 May % ABSA Call Account 6.80% ( ) Municipality sub-total ( ) Entities N/A Entities sub-total TOTAL INVESTMENTS AND INTEREST ( )

25 7.2 Commitments against Cash and Cash Equivalents Item Commitments against Cash & Cash Equivalents May 2017 Transactions 2016/2017 Current Month Cash & Cash Equivalents R R Primary Bank Account R R R Short Term Investments (Less 6 months) R - R - Medium Term Investments (more 6 months) R R R - Longterm Investments R - R - Cash Floats R R R Commitments: R R Ceded investments ( to DBSA) R - R - R - Investment in associate R - R - R - Unspent Borrowings R - R - R - Unspent Committed Conditional Grants R R R Capital funding requirement 2016/2017 (cash resources) R R R Cash Portion of Housing Development Fund R R - R Capital Replacement Reserve by 30 June R R R Loan repayment due June R R R - Sinking funds R - R - EFF Roll-overs R - R - Trust Funds R - R - Year-end creditor payments (partly funded) R R R Surplus/(Deficit) R R

26 7.3 Withdrawals from Municipal Bank Account SWARTLAND MUNICIPALITY Withdrawals from Municipal Bank Accounts In accordance with Section 11, Sub-section 1 (b) to (j) NAME OF MUNICIPALITY: MUNICIPAL DEMARCATION CODE: QUARTER ENDED: MFMA section 11. (1) Only the accounting officer or the chief financial officer of a municipality, or any other senior financial official of the municipality acting on the written authority of the accounting officer may withdraw money or authorise the withdrawal of money fromany of the municipality 's bank accounts, and may do so only - SWARTLAND MUNICIPALITY WC015 Jun-17 Amount R Reason for withdrawal To pay creditors, service providers, employee related costs, etc (b) to defray expenditure authorised in terms of section 26(4); (c) to defray unforeseeable and unavoidable expenditure authorised in terms of section 29(1); (d) in the case of a bank account opened in terms of section 12. to make payments from the account in accordance with subsection (4) of that section; (e) to pay over to a person or organ of state money received by the municipality on behalf of that person or organ of state, including - (i) money collected by the municipality on behalf of that person or organ of state by agreement; or (ii) any insurance or other payments received by the municipality for that person or organ of state; (f) to refund money incorrectly paid into a bank account; (g) to refund guarantees, sureties and security deposits; (h) for cash management and investment purposes in accordance with section 13; (i) to defray increased expenditure in terms of section 31; or R R R Motor Vehicle Registration and Road Traffic Mangement Corporation. Service deposits, Community and Town Halls, Sport Club Houses, etc (j) for such other purposes as may be prescribed. 24

27 Section 8 Allocation and grant receipts and expenditure 8.1 Supporting Table SC6 WC015 Swartland - Supporting Table SC6 Monthly Budget Statement - transfers and grant receipts - Q4 Fourth Quarter Budget Year 2016/17 Description Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance R thousands % RECEIPTS: Full Year Forecast Operating Transfers and Grants National Government: Local Gov ernment Equitable Share Finance Management EPWP Incentiv e Provincial Government: Community Dev elopment: Workers Housing Libraries Proclaimed Roads Subsidy Financial Management Support Grant: Student Bursaries RSEP Financial Management Support Grant: mscoa Greenest Tow n Aw ard FMSG: Graduate Internship Programme District Municipality: [insert description] Other grant providers: Sondeza Total Operating Transfers and Grants Capital Transfers and Grants National Government: Municipal Infrastructure Grant (MIG) Integrated National Electrification Programme (municipal) Provincial Government: RSEP/VPUU Municipal Projects Libraries Sport facility Housing District Municipality: [insert description] Other grant providers: Accelerated Community Infrastructure Programme Total Capital Transfers and Grants TOTAL RECEIPTS OF TRANSFERS & GRANTS

28 8.2 Supporting Table SC7 (1) WC015 Swartland - Supporting Table SC7(1) Monthly Budget Statement - transfers and grant expenditure - Q4 Fourth Quarter Budget Year 2016/17 Description Original Adjusted Monthly YearTD YearTD YTD Budget Budget actual actual budget variance YTD variance Full Year Forecast R thousands % EXPENDITURE Operating expenditure of Transfers and Grants National Government: (2 142) -4.2% Local Gov ernment Equitable Share (1 853) -3.8% Finance Management (156) -10.6% EPWP Incentiv e Municipal Sy stems Improv ement (133) -42.5% 312 Provincial Government: (8 955) -27.4% Community Development: Workers (19) -28.3% 67 Housing (2 167) -19.8% Libraries (720) -9.7% Proclaimed Roads Subsidy (5 930) -42.1% Financial Management Support Grant: Student Bursaries (120) Financial Management Support Grant: mscoa (218) -84.9% 257 Greenest Tow n Aw ard (105) - 70 FMSG: Graduate Internship Programme RSEP (332) District Municipality: Other grant providers: Sondeza Total operating expenditure of Transfers and Grants: (11 098) -13.2% Capital expenditure of Transfers and Grants National Government: (1 378) -5.8% Municipal Infrastructure Grant (MIG) (1 247) -6.1% Integrated National Electrification Programme (municipal) (131) -3.9% Provincial Government: (1 941) -20.5% RSEP/VPUU Municipal Projects (1 613) -30.0% Libraries (324) -10.7% Sport facility (4) -7.6% 54 Housing (0) 0.0% District Municipality: Other grant providers: (1 956) -88.5% Accelerated Community Infrastructure Programme (1 956) -88.5% Total capital expenditure of Transfers and Grants (5 276) -14.9% TOTAL EXPENDITURE OF TRANSFERS AND GRANTS (16 373) -13.7%

29 8.3 Supporting Table SC7 (2) WC015 Swartland - Supporting Table SC7(2) Monthly Budget Statement - Expenditure against approved rollovers - Q4 Fourth Quarter Description Ref Approved Rollover 2015/16 Monthly actual Budget Year 2016/17 YearTD actual YTD variance YTD variance R thousands % EXPENDITURE Operating expenditure of Approved Roll-overs National Government: % Municipal Sy stems Improv ement Grant % Financial Management Support Grant: mscoa (0) 0.0% Provincial Government: District Municipality: Other grant providers: Total operating expenditure of Approved Roll-overs % Capital expenditure of Approved Roll-overs National Government: Provincial Government: RSEP/VPUU Municipal Projects Housing District Municipality: Other grant providers: Total capital expenditure of Approved Roll-overs TOTAL EXPENDITURE OF APPROVED ROLL-OVERS % 27

30 Section 9 Expenditure on Councillor, Senior Managers and Other Staff 9.1 Supporting Table SC8 WC015 Swartland - Supporting Table SC8 Monthly Budget Statement - councillor and staff benefits - Q4 Fourth Quarter Budget Year 2016/17 ummary of Employee and Councillor remuneratio Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % B C D Councillors (Political Office Bearers plus Other) Basic Salaries and Wages % Pension and UIF Contributions % 824 Medical Aid Contributions (138) -42% 331 Motor Vehicle Allow ance (703) -34% Cellphone Allow ance (8) -2% 547 Sub Total - Councillors (554) -6% Senior Managers of the Municipality Basic Salaries and Wages (537) -8% Pension and UIF Contributions (102) -8% Medical Aid Contributions (6) -2% 313 Motor Vehicle Allow ance % 764 Cellphone Allow ance (14) -18% 98 Other benefits and allowances (25) -24% 111 Long serv ice awards % 269 Sub Total - Senior Managers of Municipality (563) -6% Other Municipal Staff Basic Salaries and Wages (4 031) -4% Pension and UIF Contributions (499) -3% Medical Aid Contributions (900) -11% Ov ertime % Motor Vehicle Allow ance (454) -6% Cellphone Allow ance (8) -3% 265 Housing Allow ances (221) -24% Other benefits and allow ances (635) -10% Pay ments in lieu of leav e (1 302) -100% Long serv ice awards (822) -100% 825 Post-retirement benefit obligations (10 866) -100% Sub Total - Other Municipal Staff (18 908) -12% Total Parent Municipality (20 024) -11% Unpaid salary, allowances & benefits in arrears: Total Municipal Entities TOTAL SALARY, ALLOWANCES & BENEFITS (20 024) -11% % increase 978 9% 971 8% 971 8% TOTAL MANAGERS AND STAFF (19 470) -11%

31 Expenditure per Type Expenditure on Staff Benefits : Section 66 of the MFMA : JUNE 2017 Adjustment Budget (B) Monthly Actual A YTD Actual YTD Budget YTD (R) Variance A / B VARIANCE (a) Basic Salaries and Wages % (b) Pension and UIF Contributions % (c) Medical Aid Contributions % (d) Overtime payments % (e) Standby Allowance % (f) Motor Vehicle Allowance % (g) Cellphone Allowance % (h) Housing Allowance % (i) Other benefits and Allowances % (j) Payments in lieu of Leave % (k) Post-retirement benefit obligations % % Directorate % Civil Services % Corporate Services % Council % Electricity Services % Financial Services % Development Services % Municipal Manager % Protection Services % (a) Basic Salaries and Wages % Civil Services % Corporate Services % Council % Electricity Services % Financial Services % Development Services % Municipal Manager % Protection Services % (b) Contributions for Pensions, UIF % Civil Services % Corporate Services % Council % Electricity Services % Financial Services % Development Services % Municipal Manager % Protection Services % (c) Medical Aid Contributions % Civil Services % Corporate Services % Council % Electricity Services % Financial Services % Development Services % Municipal Manager % Protection Services % 29

32 Expenditure per Type Expenditure on Staff Benefits : Section 66 of the MFMA : JUNE 2017 Adjustment Budget (B) Monthly Actual A YTD Actual YTD Budget YTD (R) Variance A / B VARIANCE (d) Overtime payments % Civil Services % Corporate Services % Council % Electricity Services % Financial Services % Development Services % Municipal Manager % Protection Services % (e) Standby Allowance % Civil Services % Electricity Services % Financial Services % Development Services % Protection Services % (f) Motor Vehicle Allowance % Civil Services % Corporate Services % Council % Electricity Services % Financial Services % Development Services % Municipal Manager % Protection Services % (g) Cellphone Allowance % Civil Services % Corporate Services % Council % Electricity Services % Financial Services % Development Services % Municipal Manager % Protection Services % (h) Housing Allowance % Civil Services % Corporate Services % Electricity Services % Financial Services % Development Services % Protection Services % (i) Other benefits and Allowances % Civil Services % Corporate Services % Electricity Services % Financial Services % Development Services % Municipal Manager % Protection Services % (j) Payments in lieu of Leave % (k) Post-retirement benefit obligations % % 30

33 Section 10 Material variances to the SDBIP No Material variances to the SDBIP Section 11 Capital programme performance 11.1 Supporting Table SC12 WC015 Swartland - Supporting Table SC12 Monthly Budget Statement - capital expenditure trend - Q4 Fourth Quarter Budget Year 2016/17 % spend of Month Original Adjusted Monthly YearTD YearTD YTD YTD Original Budget Budget actual actual budget variance variance Budget R thousands % Monthly expenditure performance trend July % August % September % October % Nov ember % December (2) 0.0% 32% January % 40% February % 43% March % 52% April % 69% May % 77% June % 88% Total Capital expenditure

34 Section 12 Other Supporting Documentation 12.1 Supporting Table SC13a and b WC015 Swartland - Supporting Table SC13a Monthly Budget Statement - capital expenditure on new assets by asset class - Q4 2015/16 Budget Year 2016/17 Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Capital expenditure on new assets by Asset Class/Sub-class Infrastructure % Infrastructure - Road transport % 954 Roads, Pavements & Bridges % 954 Infrastructure - Electricity % Generation Transmission & Reticulation % Infrastructure - Water (1) 0.0% Dams & Reservoirs Reticulation Water (1) 0.0% Infrastructure - Sanitation Reticulation Infrastructure - Other Community % Parks & gardens % Sportsfields & stadia % Libraries % Recreational facilities % 900 Cemeteries % 500 Other Community Heritage assets Investment properties Other assets % General v ehicles 13 Specialised v ehicles Plant & equipment 474 Computers - hardware/equipment % 951 Furniture and other office equipment % 897 Other Land % Surplus Assets - (Investment or Inv entory ) Other % Agricultural assets Biological assets Intangibles Computers - software & programming Total Capital Expenditure on new assets (7 160) -16.3%

35 WC015 Swartland - Supporting Table SC13b Monthly Budget Statement - capital expenditure on renewal of existing assets by asset class - Q4 Fourth Quarter 2015/16 Budget Year 2016/17 Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands % Capital expenditure on renewal of existing assets by Asset Class/Sub-class YTD variance Full Year Forecast Infrastructure % Infrastructure - Road transport % Roads, Pavements & Bridges % Storm water % Infrastructure - Electricity % Transmission & Reticulation % Infrastructure - Water % Reticulation Water % Infrastructure - Sanitation % Reticulation % Infrastructure - Other Other Community Other Heritage assets Other Investment properties Other Other assets % General v ehicles % Specialised v ehicles Other % 170 Agricultural assets List sub-class Biological assets List sub-class Intangibles Computers - softw are & programming Total Capital Expenditure on renewal of existing assets (2 733) -7.3%

36 12.2 Supporting Table SC13c and d WC015 Swartland - Supporting Table SC13c Monthly Budget Statement - expenditure on repairs and maintenance by asset class - Q4 Fourth Quarter 2015/16 Budget Year 2016/17 Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Repairs and maintenance expenditure by Asset Class/Sub-class Infrastructure % Infrastructure - Road transport % Roads, Pavements & Bridges % Storm water % Infrastructure - Electricity (3) % Transmission & Reticulation (3) % 771 Street Lighting % 453 Infrastructure - Water % Reticulation Water % Infrastructure - Sanitation % Reticulation Sewerage % Sewerage purification Infrastructure - Other % Waste Management % Community % Sportsfields & stadia % 470 Sw imming pools % 113 Community halls Recreational facilities % 526 Fire, safety & emergency % 20 Security and policing Cemeteries % 65 Social rental housing % 50 Other Heritage assets Investment properties Other assets % General v ehicles % Specialised v ehicles Plant & equipment % 921 Furniture and other office equipment % Other Buildings % Agricultural assets Biological assets Intangibles Total Repairs and Maintenance Expenditure (16 961) -36.8% Repairs and Maintenance are 36.8% below our YTD budgeted expenditure projection. Year end transactions are still being processed. 34

37 WC015 Swartland - Supporting Table SC13d Monthly Budget Statement - depreciation by asset class - Q4 Fourth Quarter Budget Year 2016/17 Description Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % Depreciation by Asset Class/Sub-class Infrastructure Infrastructure - Road transport Roads, Pavements & Bridges Storm water Infrastructure - Electricity Generation Transmission & Reticulation Infrastructure - Water Dams & Reservoirs Water purification Reticulation Infrastructure - Sanitation Reticulation Sewerage purification Infrastructure - Other Waste Management Community Parks & gardens Sportsfields & stadia Sw imming pools Community halls Libraries Recreational facilities Fire, safety & emergency Security and policing Cemeteries Other Heritage assets Other Investment properties Housing dev elopment Other assets General v ehicles Specialised v ehicles Plant & equipment Computers - hardw are/equipment Furniture and other office equipment Other Buildings Agricultural assets List sub-class Biological assets List sub-class Intangibles Computers - softw are & programming Total Depreciation Specialised vehicles Refuse Fire

38