Verslag Ingxelo Report

Transcription

1 Verslag Ingxelo Report Kantoor van die Direkteur: Finansies 18 Oktober /1/2/2-2 WYK: ALLE ITEM 7.1 VAN DIE AGENDA VAN N RAADSVERGADERING WAT GEHOU SAL WORD OP 25 OKTOBER ONDERWERP: KWARTAALVERSLAG (ARTIKEL 52 van MFMA) JULIE - SEPTEMBER 2018 SUBJECT: QUARTERLY REPORT (ARTICLE 52 of MFMA) JULY - SEPTEMBER 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 1ste kwartaal soos op 30 September Hierdie verslag bevat ook die nie-finansiële inligting in die vorm van die munisipaliteit se prestasie gemeet teen die teikens soos uiteengesit in die Topvlak Dienslewering en Begroting Implementeringsplan van 2018/2019. 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 1st quarter as at 30 September This report also includes the non-financial information in the form of the municipality s performance measured against the targets set out in the Top Level Service Delivery and Budget Implementation Plan of 2018/ 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 The quarterly report links with Chapter 7 of the IDP - Strategic Goal 4 (Caring, Competent and Responsive Institutions, Organisations and Business) and more specifically with the following Strategic Objectives: 4.7 (Sound long-term financial planning including making the right investment decisions) 4.8 (Sound financial management, budgeting and expenditure control) 4.9 (Broaden the tax/ revenue base)

2 4. FINANSIËLE IMPLIKASIE / FINANCIAL IMPLICATION Not applicable. Grants and Subsidies received for July - September 2018: R Intergrated National Electrication Programme R Phola Park Housing Project R Library Grants R Energy Efficiency and Demand R Municipal Infrastructure Grant R Expanded Public Works Programme R Financial Management Grant NB: Grants and Subsidies will only be recorded in the Operating Budget as Income in June 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 Julie 2018 tot 30 September That Council takes cognisance of the attached quarterly report, as required by Section 52 of the Municipal Finance Management Act, Act 56 of 2003 in respect of 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 July 2018 to 30 September (get) J J Scholtz MUNICIPAL MANAGER

3 WC015 Swartland Municipality Section 52 Quarterly Report Quarter 1 July September 2018

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..13 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..27 Section 10 Material variances to the SDBIP.28 Section 11 Capital programme performance.29 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 the period ended 30 September 2018 has been prepared to meet the legislative requirements of the Municipal Budget and Reporting Regulations and the MFMA. 1.2 Financial problems or risks facing the municipality Water Security Risk The municipality has experienced a significant drop in consumption in the previous year as a direct result of the drought which forced the municipality to implement punitive water tariffs, having the multiplier effect of changed consumption patterns. The aforementioned patterns informed the municipality s medium term budget which is modelled around growth of only 2 3 percent. Section 2 - Resolutions RECOMMENDATION: That Council takes cognisance of the quarterly budget statement and supporting documentation for the quarter ended 30 September 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. NB: Please note the results referred to under the 2017/2018 Audited Outcome are preaudited figures and will be updated with audited figures after the regulatory audit is completed. 3.2 Consolidated performance The following table summarises the overall position on the Capital and Operating Budgets as per the C Schedule. Original Budget Adjustments Budget YTD Budget 3 YTD Actual YTD Budget vs YTD Actual Variance YTD Budget vs YTD Actual Variance % Operating Expenditure R R R R R % Operating Revenue R R R R R % Capital R R R R R %

6 3.2.1 Actual vs Planned - Capital, Operational Expenditure and Revenue per directorate (SDBIP 2018/19) SWARTLAND MUNICIPALITY SERVICE DELIVERY AND BUDGET Planned Actual % Planned Actual % Planned Actual % Planned Actual % IMPLEMENTATION PLAN 2019 Q1 CIVIL SERVICES Vote 2 - Civil Services CORPORATE SERVICES Vote 1 - Corporate Services COUNCIL SERVICES Vote 3 - Council ELECTRICITY SERVICES Vote 4 - Electricity Services FINANCIAL SERVICES Vote 5 - Financial Services DEVELOPMENT SERVICES Vote 6 - Development Services MUNICIPAL MANAGER Vote 7 - Municipal Manager PROTECTION SERVICES Vote 8 - Protection Services TOTAL JULY AUGUST SEPTEMBER QUARTER 1 Expenditure % % % % Revenue % % % % Capital % % % % Expenditure % % % % Revenue % % % % Capital - - 0% % % % Expenditure % % % % Revenue % % % % Capital - - 0% 500-0% 500-0% Expenditure % % % % Revenue % % % % Capital % % % % Expenditure % % % % Revenue % % % % Capital - - 0% % % % Expenditure % % % % Revenue % % % % Capital % % % % Expenditure % % % % Revenue % - - 0% - - 0% Capital - - 0% 500-0% 500-0% Expenditure % % % % Revenue % % % % Capital - - 0% % % % Expenditure % % % % Revenue % % % % Capital % % % % NB: Improved budgeted Revenue is noted compared to the same period the previous year. Material capital under performance is noted compared to planning for the first quarter. The views from the Department Heads are that it will pick up in the months to follow.

7 Actual vs Planned - Capital, Operational Expenditure and Revenue per directorate (SDBIP 2017/18) 5

8 6

9 3.2.2 OPERATING REVENUE ACTUAL RECEIPTS VERSUS BILLING PER SERVICE 2018/2019 Jul-18 Aug-18 Sep-18 Quarter 1 Debtors Actual Debtors Actual Debtors Actual Debtors Actual % Raised Payments Raised Payments Raised Payments Raised Payments ELECTRICITY % RATES % SEWERAGE % AVAILABILITY % HOUSING % WATER % REFUSE % OTHER % R R R R R R R R % 2017/2018 Jul-17 Aug-17 Sep-17 Quarter 1 Debtors Actual Debtors Actual Debtors Actual Debtors Actual % Raised Payments Raised Payments Raised Payments Raised Payments ELECTRICITY % RATES % SEWERAGE % AVAILABILITY % HOUSING % WATER % REFUSE % OTHER % R R R R R R R R % The payment rate of 91.39% for the first quarter of the 2018/19 financial year shows a decrease when compared to the previous financial year s rate of 95.36%. The actual payments refer to amounts received for the previous month s debtors raised. 7

10 3.2.3 Revenue by source against Annual Budget WC015 Swartland - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q1 First Quarter 2017/18 Budget Year 2018/19 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 % Serv ice charges - electricity rev enue % Serv ice charges - w ater rev enue % Serv ice charges - sanitation rev enue (172) -2% Serv ice charges - refuse rev enue % Serv ice charges - other Rental of facilities and equipment % Interest earned - ex ternal inv estments % Interest earned - outstanding debtors % Div idends receiv ed Fines, penalties and forfeits % Licences and permits % Agency serv ices (16) -2% Transfers and subsidies (673) -2% Other rev enue (80) -3% Gains on disposal of PPE #DIV/0! 200 Total Revenue (excluding capital transfers and contributions) % The statement of Financial Performance compares the expenditure and revenue against the budget for the period ended 30 September Services charges Water stand at 16% above the YTD budgeted projections due to above normal consumption in the winter months and level 6 water restrictions tariffs. Rental of facilities are 14% above YTD Budget projections due to more revenue received on rental facilities. Interest earned external investments stands at 16% above YTD budgeted projections due to interest received on the R40 million investment that matured on 31 July Fines stand at 16% above the YTD budgeted projections due to more revenue received on various line items. Gains on disposal of PPE are revenue from Sale of land transactions that were under budgeted. Revenue received for the month of September 2018 was R million and stands at 3% above the budgeted projections.

11 3.2.4 Expenditure by source against Annual Budget WC015 Swartland - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q1 First Quarter 2017/18 Budget Year 2018/19 Description Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance R thousands % Full Year Forecast Expenditure By Type Employ ee related costs (3 205) -7% Remuneration of councillors (125) -5% Debt impairment (31) (31) #DIV/0! Depreciation & asset impairment Finance charges (95) -87% Bulk purchases % Other materials % Contracted serv ices (15 969) -66% Transfers and subsidies % Other ex penditure (2 319) -33% Loss on disposal of PPE Total Expenditure (18 952) -14% Surplus/(Deficit) (3 007) Transfers and subsidies - capital (monetary Surplus/(Deficit) after capital transfers & (3 007) Finance charges stand at 87% below the YTD budgeted projections with the amount being insignificant from a material point of view. Contracted services stand at 66% below the YTD budgeted projections due underspending on various line items. Transfers and grants stand at 11% above the YTD budgeted projections with the amount being insignificant from a material point of view. Other expenditure stand at 33% below the YTD budgeted projections due underspending on various line items. Expenditure for the month of September 2018 was R million whilst the overall YTD performance stands at 14% below the budgeted projections. 9

12 3.2.5 Capital expenditure and graphs against Annual Budget WC015 Swartland - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, functional classification and funding) - Q1 First Quarter 2017/18 Budget Year 2018/19 Vote Description Ref Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands 1 % Capital Expenditure - Functional Classification Governance and administration (286) -53% Ex ecutiv e and council (2) -100% 10 Finance and administration (284) -53% Community and public safety (1 780) -79% Community and social serv ices (168) -94% Sport and recreation (1 572) -78% Public safety (40) -100% Economic and environmental services (265) -94% Planning and dev elopment (11) -100% 70 Road transport (254) -94% Trading services (2 559) -30% Energy sources % Water management % Waste w ater management (4 351) -99% Waste management (1 383) -95% Total Capital Expenditure - Functional Classification (4 890) -43% Funded by: National Gov ernment (263) -5% Prov incial Gov ernment (1 775) -88% Transfers recognised - capital (2 038) -30% Internally generated funds (2 852) -61% Total Capital Funding (4 890) -43% Capital expenditure for the month of September amounts to R and stands at 43% below the projected YTD budget. Commitments are R Most of the projects are in procurement stages and the view from the Department Heads are that it will pick up in the months to follow. 10

13 11

14 3.2.6 PERFORMANCE INDICATORS WC015 Swartland - Supporting Table SC2 Monthly Budget Statement - performance indicators - Q1 First Quarter Budget Year 2018/19 Description of financial indicator Basis of calculation Ref Original Budget YearTD actual Full Year Forecast Borrowing Management Capital Charges to Operating Ex penditure Interest & principal paid/operating Ex penditure 14.6% 14.6% Borrow ed funding of 'ow n' capital ex penditure Borrow ings/capital ex penditure ex cl. transfers and grants Safety of Capital Debt to Equity Loans, Accounts Pay able, Ov erdraft & Tax 9.6% 9.2% 9.6% Prov ision/ Funds & Reserv es Gearing Long Term Borrow ing/ Funds & Reserv es 77.9% 72.3% 77.9% Liquidity Current Ratio Current assets/current liabilities 1 5:1 6:1 5:1 Liquidity Ratio Monetary Assets/Current Liabilities 4:1 5:1 4:1 Revenue Management Annual Debtors Collection Rate Last 12 Mths Receipts/ Last 12 Mths Billing 95.0% 88.5% 95.0% (Pay ment Lev el %) Outstanding Debtors to Rev enue Total Outstanding Debtors to Annual Rev enue 18.8% 9.4% 18.8% Creditors Management Creditors Sy stem Efficiency % of Creditors Paid Within Terms (w ithin MFMA s % 10 65(e)) 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 sold)/units purchased and generated 2 6.0% 5.58% 6.0% Water Distribution Losses % Volume (units purchased and ow n source less units sold)/total units purchased and ow n source % 15.80% 15.0% Employ ee costs Employ ee costs/total Rev enue - capital rev enue 29.1% 24.2% 29.0% Repairs & Maintenance R&M/Total Rev enue - capital rev enue 7.9% 5.0% 7.9% Interest & Depreciation I&D/Total Rev enue - capital rev enue 14.4% 14.4% 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) 17.3% 9.5% 17.3% ii. O/S Serv ice Debtors to Rev enue iii. Cost cov erage Total outstanding serv ice debtors/annual rev enue receiv ed for serv ices (Av ailable cash + Inv estments)/monthly fix ed operational ex penditure 24.1% 17.9% 24.1%

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 - Q1 First Quarter 2017/18 Budget Year 2018/19 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 % Inv estment rev enue % Transfers and subsidies (673) -2% Other ow n rev enue % Total Revenue (excluding capital transfers % and contributions) Employ ee costs (3 205) -7% Remuneration of Councillors (125) -5% Depreciation & asset impairment Finance charges (95) -87% Materials and bulk purchases % Transfers and subsidies % Other ex penditure (18 319) -59% Total Expenditure (18 952) -14% Surplus/(Deficit) (3 007) % Transfers and subsidies - capital (monetary alloc Contributions & Contributed assets Surplus/(Deficit) after capital transfers & contributions (3 007) % Share of surplus/ (deficit) of associate Surplus/ (Deficit) for the year (3 007) % Capital expenditure & funds sources Capital expenditure (4 890) -43% Capital transfers recognised (2 038) -30% Public contributions & donations Borrow ing Internally generated funds (2 852) -61% Total sources of capital funds (4 890) -43% Financial position Total current assets Total non current assets Total current liabilities Total non current liabilities Community w ealth/equity Cash flows Net cash from (used) operating (62 065) -123% Net cash from (used) inv esting ( ) (94 144) (94 144) (2 491) (4 158) % (94 144) Net cash from (used) financing (10 238) (4 335) (4 335) 79 (79) #DIV/0! (4 335) Cash/cash equivalents at the month/year end (48 634) -11% 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 (functional classification) - Q1 First Quarter 2017/18 Budget Year 2018/19 Description Ref Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands 1 % Revenue - Functional Governance and administration % Ex ecutiv e and council (38) -56% 274 Finance and administration % Internal audit (26) -100% 100 Community and public safety (11 666) -92% Community and social serv ices (2 202) -88% Sport and recreation (274) -31% Public safety (2) -41% 22 Housing (9 188) -99% Health Economic and environmental services (1 037) -25% Planning and dev elopment % Road transport (1 050) -32% Environmental protection Trading services % Energy sources % Water management % Waste w ater management % Waste management % Other (0) -2% 26 Total Revenue - Functional % Expenditure - Functional Governance and administration (3 589) -14% Ex ecutiv e and council (491) -11% Finance and administration (3 076) -15% Internal audit (23) -6% Community and public safety (9 924) -53% Community and social serv ices (436) -11% Sport and recreation (639) -13% Public safety (357) -37% Housing (8 493) -92% Health Economic and environmental services (5 014) -33% Planning and dev elopment (608) -21% Road transport (4 405) -36% Environmental protection Trading services (386) -1% Energy sources % Water management (1 924) -22% Waste w ater management (785) -10% Waste management (797) -11% Other (38) -11% Total Expenditure - Functional (18 952) -14% Surplus/ (Deficit) for the year (3 007) %

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) - Q1 First Quarter Vote Description 2017/18 Budget Year 2018/19 Ref Audited Original Adjusted Monthly YearTD YearTD YTD YTD Full Year Outcome Budget Budget actual actual budget variance variance Forecast R thousands % Revenue by Vote 1 Vote 1 - Corporate Serv ices (2 328) -92.7% Vote 2 - Civ il Serv ices % Vote 3 - Council (38) -56.2% 274 Vote 4 - Electricity Serv ices % Vote 5 - Financial Serv ices % Vote 6 - Dev elopment Serv ices (9 422) -86.4% Vote 7 - Municipal Manager (26) Vote 8 - Protection Serv ices (122) -5.3% Total Revenue by Vote % Expenditure by Vote 1 Vote 1 - Corporate Serv ices (712) -10.6% Vote 2 - Civ il Serv ices (8 562) -23.9% Vote 3 - Council (474) -12.5% Vote 4 - Electricity Serv ices % Vote 5 - Financial Serv ices (1 562) -15.9% Vote 6 - Dev elopment Serv ices (9 285) -67.1% Vote 7 - Municipal Manager (139) -8.7% Vote 8 - Protection Serv ices (1 064) -12.1% Total Expenditure by Vote (18 952) -14% Surplus/ (Deficit) for the year (3 007) %

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) - Q1 First Quarter 2017/18 Budget Year 2018/19 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 % Serv ice charges - electricity rev enue % Serv ice charges - w ater rev enue % Serv ice charges - sanitation rev enue (172) -2% Serv ice charges - refuse revenue % Serv ice charges - other Rental of facilities and equipment % Interest earned - external investments % Interest earned - outstanding debtors % Div idends receiv ed Fines, penalties and forfeits % Licences and permits % Agency serv ices (16) -2% Transfers and subsidies (673) -2% Other rev enue (80) -3% Gains on disposal of PPE #DIV/0! 200 Total Revenue (excluding capital transfers and contributions) % Expenditure By Type Employ ee related costs (3 205) -7% Remuneration of councillors (125) -5% Debt impairment (31) (31) #DIV/0! Depreciation & asset impairment Finance charges (95) -87% Bulk purchases % Other materials % Contracted serv ices (15 969) -66% Transfers and subsidies % Other ex penditure (2 319) -33% Loss on disposal of PPE Total Expenditure (18 952) -14% Surplus/(Deficit) (3 007) Transfers and subsidies - capital (monetary Surplus/(Deficit) after capital transfers & (3 007) Taxation Surplus/(Deficit) after taxation (3 007) Attributable to minorities Surplus/(Deficit) attributable to municipality (3 007) Share of surplus/ (deficit) of associate Surplus/ (Deficit) for the year (3 007)

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, functional classification and funding) - Q1 First Quarter 2017/18 Budget Year 2018/19 Vote Description Ref Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands 1 % Multi-Year expenditure appropriation 2 Vote 2 - Civ il Serv ices (290) -8% Vote 4 - Electricity Serv ices (320) -64% Vote 6 - Dev elopment Serv ices (1 692) -87% Total Capital Multi-year expenditure 4, (2 302) -37% Single Year expenditure appropriation 2 Vote 1 - Corporate Serv ices (162) -93% 698 Vote 2 - Civ il Serv ices (751) -67% Vote 3 - Council (1) -100% 5 Vote 4 - Electricity Serv ices % Vote 5 - Financial Serv ices % 628 Vote 6 - Dev elopment Serv ices (2 472) -100% Vote 7 - Municipal Manager (1) -100% 5 Vote 8 - Protection Serv ices (194) -92% Total Capital single-year expenditure (2 588) -49% Total Capital Expenditure (4 890) -43% Capital Expenditure - Functional Classification Governance and administration (286) -53% Ex ecutiv e and council (2) -100% 10 Finance and administration (284) -53% Community and public safety (1 780) -79% Community and social serv ices (168) -94% Sport and recreation (1 572) -78% Public safety (40) -100% Economic and environmental services (265) -94% Planning and dev elopment (11) -100% 70 Road transport (254) -94% Trading services (2 559) -30% Energy sources % Water management % Waste w ater management (4 351) -99% Waste management (1 383) -95% Total Capital Expenditure - Functional Classification (4 890) -43% Funded by: National Gov ernment (263) -5% Prov incial Gov ernment (1 775) -88% Transfers recognised - capital (2 038) -30% Internally generated funds (2 852) -61% Total Capital Funding (4 890) -43%

20 4.1.6 Table C6: Monthly Budget Statement - Financial Position WC015 Swartland - Table C6 Monthly Budget Statement - Financial Position - Q1 First Quarter 2017/18 Budget Year 2018/19 Description Ref Audited Original Adjusted Full Year YearTD actual Outcome Budget Budget Forecast R thousands 1 ASSETS Current assets Cash Call inv estment deposits Consumer debtors Other debtors Current portion of long-term receiv ables 70 Inv entory Total current assets Non current assets Long-term receiv ables 3 3 Inv estments Inv estment property Investments in Associate Property, plant and equipment Agricultural Biological Intangible Other non-current assets Total non current assets TOTAL ASSETS LIABILITIES Current liabilities Bank ov erdraft 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 The concept of mscoa Balacesheet budgeting is new to local government and in this regard somewhat challenging. 18

21 4.1.7 Table C7: Monthly Budget Statement - Cash Flow WC015 Swartland - Table C7 Monthly Budget Statement - Cash Flow - Q1 First Quarter 2017/18 Budget Year 2018/19 Description Ref Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands 1 % CASH FLOW FROM OPERATING ACTIVITIES Receipts Property rates (527) -2% Serv ice charges (10 591) -12% Other rev enue % Gov ernment - operating (273) -1% Gov ernment - capital Interest (198) -10% Div idends Payments Suppliers and employ ees ( ) ( ) ( ) (62 842) ( ) ( ) % ( ) Finance charges (13 337) (15 135) (15 135) (110) (110) 100% (15 135) Transfers and Grants (2 471) (2 883) (2 883) (165) (736) (708) 28-4% (2 883) NET CASH FROM/(USED) OPERATING ACTIVITIES (62 065) -123% CASH FLOWS FROM INVESTING ACTIVITIES Receipts Proceeds on disposal of PPE #DIV/0! 200 Decrease (Increase) in non-current debtors (7 431) Decrease (increase) other non-current receivables (30 677) Decrease (increase) in non-current investments Payments Capital assets (93 630) (94 344) (94 344) (2 722) (4 439) % (94 344) NET CASH FROM/(USED) INVESTING ACTIVITIES ( ) (94 144) (94 144) (2 491) (4 158) % (94 144) CASH FLOWS FROM FINANCING ACTIVITIES Receipts Short term loans Borrow ing long term/refinancing Increase (decrease) in consumer deposits #DIV/0! 619 Payments Repayment of borrowing (11 900) (4 954) (4 954) (4 954) NET CASH FROM/(USED) FINANCING ACTIVITIES (10 238) (4 335) (4 335) 79 (79) #DIV/0! (4 335) NET INCREASE/ (DECREASE) IN CASH HELD Cash/cash equivalents at beginning: Cash/cash equivalents at month/year end: The YTD actual for Cash/cash equivalents at month/year end includes a total of R investments made during the 1st Quarter. 19

22 PART 2 SUPPORTING DOCUMENTATION Section 5 Debtors' analysis 5.1 Supporting Table SC3 WC015 Swartland - Supporting Table SC3 Monthly Budget Statement - aged debtors - Q1 First Quarter Description Actual Bad Total Impairment - NT Debts Written 0-30 Days Days Days Days Dys Dys 181 Dys-1 Yr Over 1Yr Total over 90 Bad Debts i.t.o Code Off against days Council Policy R thousands Debtors 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 Receivables from Exchange Transactions - Property Rental Debtors Interest on Arrear Debtor Accounts 1810 Recoverable unauthorised, irregular, fruitless and w asteful expenditure 1820 Other 1900 Total By Income Source /18 - totals only Debtors Age Analysis By Customer Group Organs of State Commercial Households Other 2500 Total By Customer Group Total Debtors increased from R in August 2018 to R in September Budget Year 2018/19 The collection rate for September 2018 was 88.37% compared to 96.76% in August The YTD collection rate is 88.45% compared to the annual projection of 95% and in the main as a result of water charges. 20

23 5.2 Government Debt Schedule Swartland Municipality for the month ended September 2018 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% SUNDRY 0% HOUSING 27% HEALTH 6% NPW 64% WCED 2% TPW 1%

24 Section 6 Creditors' analysis 6.1 Supporting Table SC4 WC015 Swartland - Supporting Table SC4 Monthly Budget Statement - aged creditors - Q1 First Quarter Budget Year 2018/19 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 repay ments 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 - Q1 First Quarter Type of Expiry date Accrued Yield for the Market Change in Market Investments by maturity Name of institution & investment ID Period of Investment Investment of investment interest for the month month 1 (%) value at beginning market value value at end of the of the month R thousands Yrs/Months month Municipality NEDBANK 361 Day s Fix ed 28/06/ % STANDARDBANK 92 Day s Call Acount 31/10/ % Municipality sub-total Entities sub-total TOTAL INVESTMENTS AND INTEREST

25 7.2 Commitments against Cash and Cash Equivalents Commitments against Cash & Cash Equivalents 31 August 2018 Transactions 2018/2019 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 Longterm Investments R - R - Cash Floats R R R Commitments: R R Unspent Committed Conditional Grants R R R Capital funding requirement 2018/2019 (cash resources) R R R Cash Portion of Housing Development Fund R R - R Capital Replacement Reserve Movement R R R Loan repayment due Dec / June R R - R Consumer Deposits R - R R Creditor payments R R R Working Capital 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: SWARTLAND MUNICIPALITY WC015 Sep-18 Amount Reason for withdrawal 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 from any of the municipality 's bank accounts, and may do so only - R To pay creditors, service providers, employee related costs, etc Includes investments of R (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 Motor Vehicle Registration and Road Traffic Mangement Corporation. R Service deposits, Community and Town Halls, Sport Club Houses, etc R 0 To re-invest and deposit into the cheque account when needed. (j) for such other purposes as may be prescribed. (4) The accounting officer must within 30 days after the end of each quarter - (a) table in the municipal council a consolidated report of all withdrawals made in terms of subsection (1)(b) to (j) during that quarter ; and (b) submit a copy of the report to the relevant provincial treasury and the Auditor-General. 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 - Q1 First Quarter Budget Year 2018/19 Description Ref Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance R thousands % RECEIPTS: 1,2 Full Year Forecast Operating Transfers and Grants National Government: Local Gov ernment Equitable Share Finance Management EPWP Incentiv e Provincial Government: Community Development: Workers Human Settlements Libraries Proclaimed Roads Subsidy Financial Management Support Grant: Student Bursaries Financial Management Support Grant: mscoa WCFSG: Risk Management Improv ement (Softw are) Thusong Grant Other grant providers: LG Seta Total Operating Transfers and Grants Capital Transfers and Grants National Government: Municipal Infrastructure Grant (MIG) Energy Efficiency and Demand Side Management Grant Integrated National Electrification Programme (municipal) Finance Management Provincial Government: Human Settlements RSEP/VPUU Municipal Projects 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 - Q1 First Quarter Budget Year 2018/19 Description Ref Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance R thousands % Full Year Forecast EXPENDITURE Operating expenditure of Transfers and Grants National Government: (160) -0.9% Local Gov ernment Equitable Share Finance Management (160) -43.1% EPWP Incentiv e Provincial Government: (9 821) -82.1% Community Development: Workers (9) Human Settlements (8 500) -95.5% Libraries (246) -12.4% Proclaimed Roads Subsidy (868) Financial Management Support Grant: Student Bursaries (87) -98.3% 360 Financial Management Support Grant: mscoa (82) WCFSG: Risk Management Improv ement (Softw are) (29) Thusong Grant Other grant providers: LG Seta Total operating expenditure of Transfers and Grants: (9 980) -33.6% Capital expenditure of Transfers and Grants National Government: (263) -5.5% Municipal Infrastructure Grant (MIG) (301) -7.9% Energy Efficiency and Demand Side Management Grant (320) -64.0% Integrated National Electrification Programme (municipal) % Finance Management Provincial Government: (2 024) Human Settlements (1 624) RSEP/VPUU Municipal Projects (400) Total capital expenditure of Transfers and Grants (2 287) -33.5% TOTAL EXPENDITURE OF TRANSFERS AND GRANTS (12 267) -33.6% Supporting Table SC7 (2) WC015 Swartland - Supporting Table SC7(2) Monthly Budget Statement - Expenditure against approved rollovers - Q1 First Quarter Budget Year 2018/19 Description Ref Approved Rollover 2017/18 Monthly actual YearTD actual YTD variance YTD variance R thousands % Capital expenditure of Approved Roll-overs Provincial Government: % RSEP/VPUU Municipal Projects % Total capital expenditure of Approved Roll-overs % TOTAL EXPENDITURE OF APPROVED ROLL-OVERS % 26

29 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 - Q1 First Quarter 2017/18 Budget Year 2018/19 Summary of Employee and Councillor remuneration Ref Audited Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands % 1 A B C E Councillors (Political Office Bearers plus Other) Basic Salaries and Wages Pension and UIF Contributions (20) -8% Medical Aid Contributions % 207 Motor Vehicle Allowance Cellphone Allow ance (30) -10% Housing Allowances Other benefits and allow ances (78) -4% Sub Total - Councillors (125) -5% Senior Managers of the Municipality 3 Basic Salaries and Wages % Pension and UIF Contributions % Medical Aid Contributions % 368 Ov ertime Performance Bonus Motor Vehicle Allow ance % 847 Cellphone Allowance % 286 Housing Allowances Other benefits and allowances (5) -11% 199 Pay ments in lieu of leav e Long service awards Post-retirement benefit obligations (328) -100% Sub Total - Senior Managers of Municipality (170) -6% Other Municipal Staff Basic Salaries and Wages (864) -3% Pension and UIF Contributions % Medical Aid Contributions (72) -3% Ov ertime (403) -22% Performance Bonus Motor Vehicle Allow ance (159) -13% Cellphone Allowance % 311 Housing Allow ances (9) -3% Other benefits and allow ances (210) -8% Pay ments in lieu of leav e (298) -75% Long service awards (152) -66% 956 Post-retirement benefit obligations (957) -64% Sub Total - Other Municipal Staff (3 036) -7% Total Parent Municipality (3 331) -7% Total Municipal Entities TOTAL SALARY, ALLOWANCES & BENEFITS (3 331) -7% TOTAL MANAGERS AND STAFF (3 205) -7%

30 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 - Q1 First Quarter Budget Year 2018/19 % spend of Month Original Monthly YearTD YearTD YTD YTD Original Budget actual actual budget variance variance Budget R thousands % Monthly expenditure performance trend July % 1% August % 4% September % 8% October Nov ember December January February March April May June Total Capital expenditure

31 Section 12 Other Supporting Documentation 12.1 Supporting Table SC13a, b and e WC015 Swartland - Supporting Table SC13a Monthly Budget Statement - capital expenditure on new assets by asset class - Q1 First Quarter Budget Year 2018/19 Description Ref Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands 1 % Capital expenditure on new assets by Asset Class/Sub-class Infrastructure (99) -2.2% Roads Infrastructure Roads Road Furniture Storm w ater Infrastructure Electrical Infrastructure (585) % MV Substations (49) % LV Networks (537) -94.1% Water Supply Infrastructure (2 902) Boreholes % 500 Reservoirs (3 095) % Sanitation Infrastructure Reticulation Community Assets % Community Facilities % Cemeteries/Crematoria % Public Open Space Public Ablution Facilities Sport and Recreation Facilities % Indoor Facilities % Outdoor Facilities % Other assets Operational Buildings Housing Social Housing Computer Equipment % 567 Computer Equipment % 567 Furniture and Office Equipment % 73 Furniture and Office Equipment % 73 Machinery and Equipment (518) % Machinery and Equipment (518) % Transport Assets (4) (172) % Transport Assets (4) (172) % Total Capital Expenditure on new assets %

32 WC015 Swartland - Supporting Table SC13b Monthly Budget Statement - capital expenditure on renewal of existing assets by asset class - Q1 First Quarter Budget Year 2018/19 Description Ref Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thousands 1 % Capital expenditure on renewal of existing assets by Asset Class/Sub-class Infrastructure % Roads Infrastructure Storm w ater Infrastructure Electrical Infrastructure (221) % 825 LV Networks (221) % 825 Water Supply Infrastructure % Distribution % Sanitation Infrastructure Waste Water Treatment Works Solid Waste Infrastructure Landfill Sites Rail Infrastructure Coastal Infrastructure Information and Communication Infrastructure Community Assets Community Facilities Sport and Recreation Facilities Heritage assets Investment properties Revenue Generating Other assets Operational Buildings Housing Total Capital Expenditure on renewal of existing ass % WC015 Swartland - Supporting Table SC13e Monthly Budget Statement - capital expenditure on upgrading of existing assets by asset class - Q1 First Quarter Budget Year 2018/19 Description Ref Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands 1 % Capital expenditure on upgrading of existing assets by Asset Class/Sub-class YTD variance Full Year Forecast Infrastructure % Roads Infrastructure Roads Road Furniture Electrical Infrastructure % MV Substations LV Networks % Water Supply Infrastructure Distribution Solid Waste Infrastructure % Landfill Sites Waste Transfer Stations % Community Assets Community Facilities Police Sport and Recreation Facilities Outdoor Facilities Transport Assets Transport Assets Total Capital Expenditure on upgrading of existing a %

33 12.2 Supporting Table SC13c and d WC015 Swartland - Supporting Table SC13c Monthly Budget Statement - expenditure on repairs and maintenance by asset class - Q1 First Quarter Budget Year 2018/19 Description Ref Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands 1 % Repairs and maintenance expenditure by Asset Class/Sub-class YTD variance Full Year Forecast Infrastructure % Roads Infrastructure % Roads % Road Furniture % 518 Storm w ater Infrastructure % Storm water Conveyance % Electrical Infrastructure (186) -34.5% MV Substations (78) % 136 LV Networks (108) -21.3% Sanitation Infrastructure % Pump Station % 710 Waste Water Treatment Works (47) -9.7% Solid Waste Infrastructure % Landfill Sites % Community Assets (114) -23.6% Community Facilities (46) -12.5% Halls % 688 Centres (108) -62.2% 598 Libraries Cemeteries/Crematoria % 72 Police Purls 128 Sport and Recreation Facilities (69) -57.8% 560 Indoor Facilities Outdoor Facilities (69) -57.8% 460 Other assets % Operational Buildings % 809 Municipal Offices % 809 Housing (27) % Staff Housing 167 (27) % Social Housing % Biological or Cultivated Assets Intangible Assets % Licences and Rights % Computer Software and Applications % Computer Equipment % 462 Computer Equipment % 462 Furniture and Office Equipment % 60 Furniture and Office Equipment % 60 Machinery and Equipment % 883 Machinery and Equipment % 883 Transport Assets % Transport Assets % Total Repairs and Maintenance Expenditure %

34 WC015 Swartland - Supporting Table SC13d Monthly Budget Statement - depreciation by asset class - Q1 First Quarter Budget Year 2018/19 Description Ref Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance R thousands 1 % Depreciation by Asset Class/Sub-class Full Year Forecast Infrastructure Roads Infrastructure Roads Road Structures Road Furniture Storm w ater Infrastructure Drainage Collection Storm water Conveyance Attenuation Electrical Infrastructure Power Plants HV Substations HV Switching Station MV Substations MV Networks LV Networks Water Supply Infrastructure Dams and Weirs Boreholes Reservoirs Pump Stations Bulk Mains Distribution Distribution Points Sanitation Infrastructure Pump Station Reticulation Waste Water Treatment Works Outfall Sewers Toilet Facilities Solid Waste Infrastructure Landfill Sites Waste Transfer Stations Waste Drop-off Points Rail Infrastructure Coastal Infrastructure Revetments Information and Communication Infrastructure 32

35 WC015 Swartland - Supporting Table SC13d Monthly Budget Statement - depreciation by asset class - Q1 First Quarter Budget Year 2018/19 Description Ref Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance R thousands 1 % Full Year Forecast Community Assets Community Facilities Halls Clinics/Care Centres Museums Libraries Cemeteries/Crematoria Public Ablution Facilities Sport and Recreation Facilities Outdoor Facilities Investment properties Revenue Generating Improved Property Other assets Operational Buildings Municipal Offices Workshops Stores Housing Staff Housing Social Housing Intangible Assets Licences and Rights Computer Software and Applications Computer Equipment Computer Equipment Furniture and Office Equipment Furniture and Office Equipment Machinery and Equipment Machinery and Equipment Transport Assets Transport Assets Total Depreciation

36

37