FINANCIAL REPORT ITEM INTRODUCTION / AIM The purpose of this report is to inform the Council on the current financial state as at 31 October 2018. LEGAL REQUIREMENTS In terms of Section 71 of the Municipal Finance Management Act, Act 56 of 2003, the monthly Financial Report for the period ended 31 October 2018 is submitted to Council which reflects the implementation of the budget and the financial state of affairs of the municipality. BACKGROUND Attached is the Financial Report for the month of October 2018, which reflects the implementation of the budget, and the state of the municipality s financial affairs. The Financial Report consists of the following financial reports: 1. Executive Summary 2. Capital Expenditure 3. Operating Revenue and Expenditure 4. Cash and Investments 5. Borrowings 6. Grants 7. Debtors 8. Creditors FINANCIAL IMPLICATION As per attached report. RECOMMENDATION It is recommended that: 1. Council notes the Monthly Budget Statement, Performance and supporting documentation as at 31 October 2018.
BUDGET STATEMENT OCTOBER 2018 THEEWATERSKLOOF MUNICIPALITY In-Year Report of the Municipality Prepared in terms of Section 71 of the Local Government: Municipal Finance Management Act (56/2003) and Municipal Budget and Reporting Regulations, Government Gazette 32141, 17 May 2009. 2018/2019 FINANCIAL YEAR
TABLE OF CONTENTS GLOSSARY... 1 PART 1 IN-YEAR REPORT... 2 Section 1 - EXECUTIVE SUMMARY... 2 PART 2 SUPPORTING DOCUMENTATION... 4 Section 2 - CAPITAL EXPENDITURE... 4 Section 3 - OPERATING REVENUE AND EXPENDITURE... 9 Section 4 - CASH AND INVESTMENTS... 13 Section 5 - BORROWINGS... 16 Section 6 - GRANTS... 26 Section 7 - DEBTORS... 27 Section 8 - CREDITORS... 26 Section 9 QUALITY CERTIFICATION... 27
GLOSSARY Allocations Money received from Provincial or National Government or other municipalities. Budget The financial plan of the Municipality. Capital expenditure - Spending on assets such as land, buildings and machinery. Any capital expenditure must be reflected as an asset on the Municipality s balance sheet. Cash flow statement A statement showing when actual cash will be received and spent by the Municipality. Cash payments do not always coincide with budgeted expenditure timings. For example, when an invoice is received by the Municipality it is shown as expenditure in the month it is received, even though it may not be paid in the same period. DORA Division of Revenue Act. Annual legislation that shows the total allocations made by national to provincial and local government. Equitable share A general grant paid to municipalities. It is predominantly targeted to help with free basic services. MFMA Local Government: Municipal Finance Management Act (56/2003). The principle piece of legislation relating to municipal financial management. Sometimes referred to as the Act. MIG Municipal Infrastructure Grant. MTREF Medium Term Revenue and Expenditure Framework. A medium term financial plan, usually 3 years, based on a fixed first year and indicative further two years budget allocations. Also includes details of the previous and current years financial position. Operating expenditure Spending on the day to day expenses of the Municipality such as salaries and wages. SDBIP Service Delivery and Budget Implementation Plan. A detailed plan comprising quarterly performance targets and monthly budget estimates. Unauthorised expenditure Generally, is spending without, or in excess of, an approved budget. Vote One of the main segments into which a budget of a municipality is divided. 1
PART 1 IN-YEAR REPORT SECTION 1 - EXECUTIVE SUMMARY Introduction In terms of Section 71 of the Municipal Finance Management Act, Act 56 of 2003 the Budget Statement for the period ended 31 October 2018 is submitted to Council which reflects the implementation of the budget and the financial state / position of the municipality. This report presents a summary of the actual results compared to the budget. Furthermore, remedial steps will be proposed and instructions will be issued to the Accounting Officer. Section 54 of the MFMA requires the Mayor to consider the Section 71 report and take appropriate action to ensure that the approved budget is implemented in accordance with the SDBIP. A summary of the operating revenue and expenditure and capital expenditure is presented in the following table:- Particulars Capital Expenditure Operating Revenue Operating Expenditure Original Budget 78,755,666 580,022,012 551,182,401 Adjustment Budget Septembert 2018 94,544,700 598,879,766 563,627,125 Actual Result (YTD) 10,384,240 162,870,322 140,594,101 Variance 84,160,460 436,009,443 423,033,024 Variance % 89% 73% 75% Operating revenue currently reflects a variance of 73% and operating expenditure a variance of 75%. 2
Particulars Budget Adjustment Budget October 2018 TOTAL YTD % Spent Operating Expenditure (excl non Cash) 500,584,811 513,029,535 33,843,480 140,389,361 27% Operating Expenditure (Non Cash) 50,597,589 50,597,589 54,737 204,739 0% Total Operating Expenditure 551,182,401 563,627,125 33,898,217 140,594,101 25% Operating Income 580,022,012 598,879,766 32,007,448 162,870,322 27% TELEPHONE 624,400 624,400 58,429 193,565 31% STREETLIGHTS 3,067,029 3,067,029 106,455 353,990 12% FUEL 5,555,841 5,555,841 194,041 517,592 9% Repair & Maintenance (Excl Road Surfaces & Networks) Contracted Services - Maintenance of Infrastructure Assets (Road Surfaces) Other Materials - Maintenance Materials (Road Surfaces) Other Materials - Maintenance Materials (Networks) 100,312,111 100,312,111 8,006,220 26,173,798 26% 1,639,528 1,639,528 176,294 284,020 17% 1,275,960 1,275,960 88,268 267,334 21% 1,271,584 1,271,584 144,598 551,137 43% GRANTS INCOME 106,006,000 107,006,000 2,599,024 37,840,802 35% Equitable Shares Income 87,385,000 87,385,000-36,410,000 42% GRANTS EXPENDITURE 106,006,000 120,412,756 5,817,071 20,167,113 17% Equitable Shares Expenditure 59,969,942 59,969,942 4,997,495 19,989,981 33% Equitable Shares Expenditure Free Basic Services 27,415,058 27,415,058 310,464 7,481,285 27% PAYROLL 182,490,510 182,490,510 14,444,690 58,810,221 32% OVERTIME 6,332,722 6,332,722 661,158 2,593,417 41% STANDBY 3,460,317 3,460,317 360,196 1,307,105 38% EMPLOYEE RELATED COST (Non cash) 9,714,075 9,714,075 54,737 204,739 2% Capital Expenditure (Land/Build) 6,350,000 6,614,094 - - 0% Capital Expenditure (Roads) 977,193 5,428,191 - - 0% Capital Expenditure (Water) 6,336,287 7,985,714 2,586,342 3,396,857 43% Capital Expenditure (Electricity) 3,515,000 3,660,581 364,981 884,465 24% Capital Expenditure (Sewer) 18,686,269 24,254,483 761,518 4,499,490 19% Capital Expenditure (Housing) 24,100,000 26,062,032 25,057 512,958 2% Capital Expenditure (Solid Waste) 10,734,180 12,102,868-638,863 5% Capital Expenditure (Sportsfields) 1,600,000 1,600,000-97,849 6% Capital Expenditure (Fleet) 2,402,922 2,782,922 - - 0% Capital Expenditure (Office Equipment) 4,053,815 4,053,815 39,455 353,757 9% Capital Expenditure (Total) 78,755,666 94,544,700 3,777,354 10,384,240 11% Investments 54,107,780 Bank 74,695,659 Loans 86,008,291 TENDERS APPROVED 34,588,856 3
PART 2 SUPPORTING DOCUMENTATION SECTION 2 - CAPITAL EXPENDITURE WC031 Theewaterskloof - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, functional classification and funding) - M04 October 2017/18 Budget Year 2018/19 Provisional Audit Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands % Multi-Year expenditure appropriation YTD variance Full Year Forecast Vote 1 - Budget and treasury office Vote 2 - Community and social serv ices Vote 3 - Corporate serv ices Vote 4 - Electricity 3,642 165 165 43 (43) -100% 165 Vote 5 - Env ironmental protection Vote 6 - Ex ecutiv e and council Vote 7 - Housing Vote 8 - Planning and dev elopment Vote 9 - Public safety Vote 10 - Road transport 9,881 877 877 230 (230) -100% 877 Vote 11 - Sport and recreation Vote 12 - Waste management Vote 13 - Waste w ater management 10,890 18,686 18,686 762 4,499 4,839 (340) -7% 18,686 Vote 14 - Water 4,031 3,836 3,836 1,980 1,980 1,005 975 97% 3,836 Vote 15 - [NAME OF VOTE 15] Total Capital Multi-year expenditure 28,444 23,565 23,565 2,742 6,480 6,118 362 6% 23,565 Single Year expenditure appropriation Vote 1 - Budget and treasury office 19 Vote 2 - Community and social services 421 358 622 2 2 87 (85) -98% 622 Vote 3 - Corporate services 5,045 2,403 2,783 463 (463) -100% 2,783 Vote 4 - Electricity 10,540 3,350 3,496 365 884 878 7 1% 3,496 Vote 5 - Env ironmental protection Vote 6 - Executive and council 1,224 3,746 3,746 38 352 975 (623) -64% 3,746 Vote 7 - Housing 14,937 24,100 26,062 25 513 6,407 (5,894) -92% 26,062 Vote 8 - Planning and dev elopment 17 Vote 9 - Public safety 401 6,300 6,300 1,651 (1,651) -100% 6,300 Vote 10 - Road transport 584 100 4,551 52 (52) -100% 4,551 Vote 11 - Sport and recreation 985 1,600 1,600 98 419 (321) -77% 1,600 Vote 12 - Waste management 1,291 10,734 12,103 639 2,318 (1,679) -72% 12,103 Vote 13 - Waste w ater management 1,818 5,568 5,568 Vote 14 - Water 21,488 2,500 4,149 606 1,417 1,272 144 11% 4,149 Vote 15 - [NAME OF VOTE 15] Total Capital single-year expenditure 58,770 55,191 70,980 1,036 3,904 14,522 (10,618) -73% 70,980 Total Capital Expenditure 87,214 78,756 94,545 3,777 10,384 20,640 (10,256) -50% 94,545 Capital Expenditure - Functional Classification Governance and administration 6,288 6,149 6,529 38 352 1,438 (1,085) -76% 6,529 Ex ecutiv e and council 6,288 Finance and administration 6,149 6,529 38 352 1,438 (1,085) -76% 6,529 Internal audit Community and public safety 16,343 26,058 28,284 27 612 6,913 (6,300) -91% 28,284 Community and social serv ices 421 358 622 2 2 87 (85) -98% 622 Sport and recreation 985 1,600 1,600 98 419 (321) -77% 1,600 Public safety Housing 14,937 24,100 26,062 25 513 6,407 (5,894) -92% 26,062 Health Economic and environmental services 10,883 7,277 11,728 1,933 (1,933) -100% 11,728 Planning and dev elopment 17 Road transport 10,865 7,277 11,728 1,933 (1,933) -100% 11,728 Env ironmental protection Trading services 53,700 39,272 48,004 3,713 9,420 10,356 (937) -9% 48,004 Energy sources 14,183 3,515 3,661 365 884 921 (37) -4% 3,661 Water management 25,519 6,336 7,986 2,586 3,397 2,278 1,119 49% 7,986 Waste w ater management 12,708 18,686 24,254 762 4,499 4,839 (340) -7% 24,254 Waste management 1,291 10,734 12,103 639 2,318 (1,679) -72% 12,103 Other Total Capital Expenditure - Functional Classification 87,214 78,756 94,545 3,777 10,384 20,640 (10,256) -50% 94,545 Funded by: Vote Description National Gov ernment 28,974 22,489 22,489 2,742 7,119 6,013 1,105 18% 22,489 Provincial Gov ernment 17,085 24,859 26,821 27 515 6,512 (5,997) -92% 26,821 District Municipality Other transfers and grants Transfers recognised - capital 46,059 47,348 49,310 2,769 7,633 12,525 (4,892) -39% 49,310 Public contributions & donations 4,451 26 (26) -100% 4,451 Borrowing 26,261 10,420 19,796 606 1,417 3,090 (1,673) -54% 19,796 Internally generated funds 14,894 20,988 20,988 403 1,334 4,999 (3,664) -73% 20,988 Total Capital Funding 87,214 78,756 94,545 3,777 10,384 20,640 (10,256) -50% 94,545 4
WC031 Theewaterskloof - Supporting Table SC12 Monthly Budget Statement - capital expenditure trend - M04 October 2017/18 Budget Year 2018/19 Provisional Month Original Adjusted Monthly YearTD YearTD YTD Audit Budget Budget actual actual budget variance Outcome % spend of YTD Adjustment variance Budget R thousands % Monthly expenditure performance trend July 218 1,569 1,569 593 593 1,569 (976) -62.2% 1% August 2,945 4,032 4,032 2,859 3,452 5,601 (2,150) -38.4% 4% September 5,151 6,741 6,741 3,155 6,607 12,342 (5,735) -46.5% 7% October 2,052 8,298 8,298 3,777 10,384 20,640 (10,256) -49.7% 11% Nov ember 2,690 10,816 10,816 31,455 December 10,284 9,324 9,324 40,780 January 761 6,002 6,002 46,782 February 1,815 6,642 6,642 53,424 March 5,002 8,447 8,447 61,871 April 8,038 6,387 6,387 68,258 May 5,878 3,093 3,093 71,352 June 42,381 7,404 23,193 94,545 Total Capital expenditure 87,214 78,756 94,545 10,384 The Total Capital Expenditure for the month ending 31 October 2018 amounts to R 10,384 million against the adjustment budget of R 94,545 million and the percentage spend is 11% when compared to the adjustment budget. The year to date expenditure compared to planned expenditure amounts to 50.3% (an underspent of 49.7%). 5
The following table indicates the spending per project and per funding. It also includes comments from departments on the progress of the projects. THEEWATERSKLOOF MUNICIPALITY CAPITAL PROGRAMME 2018-2019 VOTE PROJECT TOWN FUNCTION SOURCE OF FINANCE LAND AND BUILDINGS BUDGET 2018-2018 ADJUSTED BUDGET ACTUAL EXPENDTURE THIS PERIOD COMMITMENTS ACTUAL YEARTODATE EXPENDED 0 4 0 YEARTODATE CASH AVAILABLE BUDGET FLOW PROJECTION % OF BUDGET AVAILABLE COMMENTS 071013101750 Capital - Development of Venster Property Erf 136 Caledon Caledon Administration: Towns Capital out of Revenue 50,000 50,000 - - - 13,104 50,000 Project will commence later than expected as Public Participation is now done more extensive than projected. An application will be 100% submitted for the adjustment budget that funding be used for a Botanical study of the Warm baths land as the land is needed for an integrated development. The extension of Knofloks Kraal cemetery is awaiting the approval of 073013200101 Capital - Cemetery Grabouw Cemetery Loans - 264,094 - - - 86,690 264,094 100% public works since the adjacent property belong to public works, funds cannot be spend until approval. In the process of getting a valuation on the erven next to Grabouw Town 074010200630 Capital - Grabouw Traffic Department Grabouw Traffic Capital out of Revenue 6,300,000 6,300,000 - - - 1,651,063 6,300,000 100% Office. If the erven is procured Project Manager will be appointed to proceed with project. ROADS, PAVEMENTS, BRIDGES & STORMWATER Subtotal 6,350,000 6,614,094 - - - 1,750,857 6,614,094 100% 0 076510101840 Capital - Purchase of land for entrance to Private Hospital - portion of Erf 1085 Caledon Waiting on approval by Province to purchase the land. Application is Caledon Roads Capital out of Revenue 100,000 100,000 - - - 26,207 100,000 100% followed up every 2 weeks. 076510300191 Capital - Destiny access road Villiersdorp Roads MIG 877,193 877,193 - - - 229,889 877,193 Construction continued throughout October 2018. Payment certificate 100% nr 1 will be paid in November 2018. 076510201470 Capital - Grabouw pick up and drop off zone Grabouw Roads SANRAL - 4,450,998 - - - 26,207 4,450,998 In the process to appoint a new Project Manager. When Project 100% Manager is appointed he will evaluate the project plans and then the tender will be readvertised. WATER RESERVOIRS & RETICULATION Subtotal 977,193 5,428,191 - - - 282,304 5,428,191 100% 0 077010000020 Capital - Smart Water meters TWK Water Loans 2,500,000 3,275,709 512,459-1,322,973 914,147 1,952,736 60% Consultant appointed. 077010100321 Capital - Drought Relieve Caledon Water Loans - 43,450 37,095 2,091 37,095 43,450 4,264 10% Consultant appointed. Miniature Substation delivered. Installation will take place on the 18th of 077010400322 Capital - Drought Relieve Riviersonderend Water Loans - 513,043 54,766 32,841 54,766 147,560 425,436 83% November 2018. 077011100113 Capital - Water source development Tesselaarsdal Caledon Water Loans - 317,225 1,720-1,720 167,225 315,505 99% 077010300131 MIG 2,130,624 2,130,624 1,980,303-1,980,303 558,380 150,321 7% Capital Destiny: Bulk water Villiersdorp Water Construction continued throughout October 2018. Payment certificate nr 1 will be paid in November 2018. 077010300132 Capital out of Revenue 1,705,663 1,705,663 - - - 447,009 1,705,663 100% Subtotal 6,336,287 7,985,714 2,586,342 34,932 3,396,857 2,277,771 4,553,925 57% 6
THEEWATERSKLOOF MUNICIPALITY CAPITAL PROGRAMME 2018-2019 VOTE PROJECT TOWN FUNCTION SOURCE OF FINANCE ELECTRICITY RETICULATION BUDGET 2018-2018 ADJUSTED BUDGET ACTUAL EXPENDTURE THIS PERIOD COMMITMENTS ACTUAL YEARTODATE EXPENDED 0 4 0 YEARTODATE CASH AVAILABLE BUDGET FLOW PROJECTION % OF BUDGET AVAILABLE COMMENTS 077510300291 NEP 434,783 434,783 - - - 113,945 434,783 100% Consultant appointed. Capital - Upgrading of Bulk Electrical Villiersdorp Electricity Infrastructure 077510300293 Capital out of Revenue 65,217 65,217 - - - 17,092 65,217 100% Consultant appointed. Miniature Substation delivered. Installation will take place on the 18th of 077510300241 Capital - Replace and upgrade MV Networks Villiersdorp Electricity Capital out of Revenue 550,000 550,000-9,786 393,000 144,140 147,214 27% November 2018. 077511200230 Capital - Grabouw highmast lighting Grabouw Electricity Public Works Grant - 145,581 - - - - 145,581 100% Awaiting Eskom to Electrify area. 077510400242 Capital - Replace and upgrade MV Networks Riviersonderend Electricity Capital out of Revenue 2,300,000 2,300,000 364,981-491,465 602,769 1,808,535 79% Contractor appointed. Project is on programme. 077510001830 SEWERAGE Capital - Install security fencing Switching stations Caledon and Villiersdorp Material delivered. Quotation is send out for installation. Closing date Caledon & Villiersdorp Electricity Capital out of Revenue 165,000 165,000-124,671-43,242 40,329 24% Wednesday 14 November 2018. Subtotal 3,515,000 3,660,581 364,981 134,457 884,465 921,188 2,641,659 72% 0 076010100181 MIG 2,891,058 2,891,058 313,540-1,243,287 757,670 1,647,771 57% Phase 2 has been completed. Access to the site has not been secured Capital - Bulk outfall sewer Caledon Sewerage in order to start phase 3. Negotiations with the landowner is continuing 076010100183 Loans 2,631,579 2,631,579 - - - 689,667 2,631,579 100% 076010300160 Capital Destiny: Bulk sewer Villiersdorp Sewerage The site handover meeting was held and construction will begin in MIG 1,331,189 1,331,189 - - - 348,869 1,331,189 100% November The site handover meeting was held and construction will begin in Capital out of Revenue 1,602,424 1,602,424 - - - 419,953 1,602,424 100% November Phase 2 has been completed. Access to the site has not been secured 076010100183 Capital - Bulk outfall sewer Caledon Sewerage Loans - 2,297,621 - - - 450,109 2,297,621 100% in order to start phase 3. Negotiations with the landowner is continuing 076011100171 Capital - Waste Water Treatment Works Upgrade Caledon Sewerage MIG 6,941,319 6,941,319 447,978-3,256,204 1,819,136 3,685,115 53% Phase 1: The inlet works structure and rising main was completed. Loans - 1,706,169 - - - 119,752 1,706,169 Contractor is currently busy with the extention of the sump. 100% Phase 2: The tender was awarded by BAC, tender is in appeal period which ends on the 15 Nov 2018. 076011100173 Loans 3,288,700 4,853,124 - - - 233,897 4,853,124 100% Subtotal 18,686,269 24,254,483 761,518-4,499,490 4,839,054 19,754,993 81% 0 7
THEEWATERSKLOOF MUNICIPALITY CAPITAL PROGRAMME 2018-2019 HOUSING VOTE PROJECT TOWN FUNCTION SOURCE OF FINANCE BUDGET 2018-2018 ADJUSTED BUDGET ACTUAL EXPENDTURE THIS PERIOD COMMITMENTS ACTUAL YEARTODATE EXPENDED 0 4 0 YEARTODATE CASH AVAILABLE BUDGET FLOW PROJECTION % OF BUDGET AVAILABLE COMMENTS 073510200041 073510200042 073510200043 Capital - Low Cost Housing Project: Grabouw Rooidakke Extension (4300-1169) Capital - Low Cost Housing Project: Grabouw Rooidakke Extension (4300-1169) Capital - Low Cost Housing Project: Grabouw Rooidakke Extension (4300-1169) Grabouw Housing Housing 250,000 508,649 25,057-411,178 67,100 97,471 Provincial Department to appoint consulting engineers on behalf of 19% TWK. Once this appointment is finalized the project can commence and expenditure can be incurred. Provincial Department to appoint consulting engineers on behalf of Grabouw Housing Housing 250,000 508,649 - - 101,780 65,518 406,869 80% TWK. Once this appointment is finalized the project can commence and expenditure can be incurred. Provincial Department to appoint consulting engineers on behalf of Grabouw Housing Housing 250,000 508,649 - - - 65,518 508,649 100% TWK. Once this appointment is finalized the project can commence and expenditure can be incurred. 073510200044 Capital - Low Cost Housing Project: Grabouw Rooidakke Extension (4300-1169) Provincial Department to appoint consulting engineers on behalf of Grabouw Housing Housing 250,000 508,649 - - - 154,593 508,649 100% TWK. Once this appointment is finalized the project can commence and expenditure can be incurred. 073510201791 073510201792 073510201793 073510201794 Capital - Low Cost Housing Project: Grabouw Rooidakke Extention Iraq Capital - Low Cost Housing Project: Grabouw Rooidakke Extention Iraq Capital - Low Cost Housing Project: Grabouw Rooidakke Extention Iraq Capital - Low Cost Housing Project: Grabouw Rooidakke Extention Iraq Grabouw Housing Housing 3,925,000 3,925,000 - - - 1,028,639 3,925,000 Land Surveyor appointed for the registration of the general plan and the pegging of erven. Once service provider commence spending will improve Contractor on site and works are progressing. Contractor appointed by 100% the Department and consulting engineer appointed by TWK. Expenditure incurred on the installation of the services not recorded by the municipality as the contractor was appointed by the Department directly. Grabouw Housing Housing 3,925,000 3,925,000 - - - 1,028,639 3,925,000 Land Surveyor appointed for the registration of the general plan and the pegging of erven. Once service provider commence spending will improve Contractor on site and works are progressing. Contractor appointed by 100% the Department and consulting engineer appointed by TWK. Expenditure incurred on the installation of the services not recorded by the municipality as the contractor was appointed by the Department directly. Land Surveyor appointed for the registration of the general plan and the pegging of erven. Once service provider commence spending will improve Grabouw Housing Housing 3,925,000 3,925,000 - - - 1,028,639 3,925,000 Contractor on site and works are progressing. Contractor appointed by 100% the Department and consulting engineer appointed by TWK. Expenditure incurred on the installation of the services not recorded by the municipality as the contractor was appointed by the Department directly. Grabouw Housing Housing 3,925,000 3,925,000 - - - 1,028,639 3,925,000 Land Surveyor appointed for the registration of the general plan and the pegging of erven. Once service provider commence spending will improve Contractor on site and works are progressing. Contractor appointed by 100% the Department and consulting engineer appointed by TWK. Expenditure incurred on the installation of the services not recorded by the municipality as the contractor was appointed by the Department directly. The consulting team was requested to prepare the tender 073510201820 Capital - Grabouw Hillside Civils (Water) Grabouw Housing Housing - 370,066 - - - - 370,066 100% documentation and update the contract to go out on tender. The costing will have to be revisited and extension of the budget requested to DHS 8
THEEWATERSKLOOF MUNICIPALITY CAPITAL PROGRAMME 2018-2019 HOUSING VOTE PROJECT TOWN FUNCTION SOURCE OF FINANCE BUDGET 2018-2018 ADJUSTED BUDGET ACTUAL EXPENDTURE THIS PERIOD COMMITMENTS ACTUAL YEARTODATE EXPENDED 0 4 0 YEARTODATE CASH AVAILABLE BUDGET FLOW PROJECTION % OF BUDGET AVAILABLE COMMENTS The consulting team was requested to prepare the tender 073510201821 Capital - Grabouw Hillside Civils (Sewer) Grabouw Housing Housing - 370,066 - - - - 370,066 100% documentation and update the contract to go out on tender. The costing will have to be revisited and extension of the budget requested to DHS The consulting team was requested to prepare the tender 073510201830 Capital - Pine View 266 Civils (Water) Grabouw Housing Housing - 93,652 - - - - 93,652 100% documentation and update the contract to go out on tender. The costing will have to be revisited and extension of the budget requested to DHS The consulting team was requested to prepare the tender 073510201831 Capital - Pine View 266 Civils (Sewer) Grabouw Housing Housing - 93,652 - - - - 93,652 100% documentation and update the contract to go out on tender. The costing will have to be revisited and extension of the budget requested to DHS 073510201801 Capital - Low Cost Housing Project: Grabouw Hillside 348 The consulting team was requested to prepare the tender Grabouw Housing Housing 375,000 375,000 - - - 98,278 375,000 100% documentation and update the contract to go out on tender. The costing will have to be revisited and extension of the budget requested to DHS 073510201802 Capital - Low Cost Housing Project: Grabouw Hillside 348 The consulting team was requested to prepare the tender Grabouw Housing Housing 375,000 375,000 - - - 98,278 375,000 100% documentation and update the contract to go out on tender. The costing will have to be revisited and extension of the budget requested to DHS 073510201803 Capital - Low Cost Housing Project: Grabouw Hillside 348 The consulting team was requested to prepare the tender Grabouw Housing Housing 375,000 375,000 - - - 98,278 375,000 100% documentation and update the contract to go out on tender. The costing will have to be revisited and extension of the budget requested to DHS 073510201804 0'73510201641 073510201642 073510201643 073510201644 073510700081 Capital - Low Cost Housing Project: Grabouw Hillside 348 Capital - Low Cost Housing Project: Grabouw Siyayanzela - Water Distribution Capital - Low Cost Housing Project: Grabouw Siyayanzela Planning - Sanitation Capital - Low Cost Housing Project: Grabouw Siyayanzela Planning - Roads Capital - Low Cost Housing Project: Grabouw Siyayanzela Planning - Stormwater Capital - Low Cost Housing Project: Botrivier New France (226) The consulting team was requested to prepare the tender Grabouw Housing Housing 375,000 375,000 - - - 98,278 375,000 100% documentation and update the contract to go out on tender. The costing will have to be revisited and extension of the budget requested to DHS Consulting engineers appointed. Expenditure to be incurred as Grabouw Housing Housing 350,000 350,000 - - - 91,726 350,000 progress is made on site. Final designs for the installation of the 100% services completed, invoice to be submitted for payment which will improve spending Consulting engineers appointed. Expenditure to be incurred as Grabouw Housing Housing 350,000 350,000 - - - 91,726 350,000 progress is made on site. Final designs for the installation of the 100% services completed, invoice to be submitted for payment which will improve spending Consulting engineers appointed. Expenditure to be incurred as Grabouw Housing Housing 350,000 350,000 - - - 91,726 350,000 progress is made on site. Final designs for the installation of the 100% services completed, invoice to be submitted for payment which will improve spending Consulting engineers appointed. Expenditure to be incurred as Grabouw Housing Housing 350,000 350,000 - - - 91,726 350,000 progress is made on site. Final designs for the installation of the 100% services completed, invoice to be submitted for payment which will improve spending Botrivier Housing Housing 1,125,000 1,125,000 - - - 294,833 1,125,000 The current informal settlement is situated on a landfill site and the cost to remediate the landfill site is more that the cost to service the 100% settlement. The Development Directorate is in the process of identifying alternative land to purchase. Once this process is finalized a contractor can be appointed. 9
THEEWATERSKLOOF MUNICIPALITY CAPITAL PROGRAMME 2018-2019 HOUSING VOTE PROJECT TOWN FUNCTION SOURCE OF FINANCE 073510700082 073510700083 073510701810 SOLID WASTE Capital - Low Cost Housing Project: Botrivier New France (226) Capital - Low Cost Housing Project: Botrivier New France (226) Capital - Low Cost Housing Project: Botrivier New France (226) BUDGET 2018-2018 ADJUSTED BUDGET ACTUAL EXPENDTURE THIS PERIOD COMMITMENTS ACTUAL YEARTODATE EXPENDED 0 4 0 YEARTODATE CASH AVAILABLE BUDGET FLOW PROJECTION Botrivier Housing Housing 1,125,000 1,125,000 - - - 294,833 1,125,000 The current informal settlement is situated on a landfill site and the cost to remediate the landfill site is more that the cost to service the 100% settlement. The Development Directorate is in the process of identifying alternative land to purchase. Once this process is finalized a contractor can be appointed. Botrivier Housing Housing 1,125,000 1,125,000 - - - 294,833 1,125,000 The current informal settlement is situated on a landfill site and the cost to remediate the landfill site is more that the cost to service the 100% settlement. The Development Directorate is in the process of identifying alternative land to purchase. Once this process is finalized a contractor can be appointed. Botrivier Housing Housing 1,125,000 1,125,000 - - - 294,833 1,125,000 The current informal settlement is situated on a landfill site and the cost to remediate the landfill site is more that the cost to service the 100% settlement. The Development Directorate is in the process of identifying alternative land to purchase. Once this process is finalized a contractor can be appointed. % OF BUDGET AVAILABLE Subtotal 24,100,000 26,062,032 25,057-512,958 6,406,629 25,549,074 98% 0 075511100221 MIG 4,192,509 4,192,509 - - 587,963 1,098,746 3,604,546 86% Tender was awarded by BAC. In Appeal period which ends on the 20th Capital Transfer Station Caledon Solid Waste Nov2018. 075511100222 Capital out of Revenue 2,631,579 2,631,579 - - - 194,742 2,631,579 100% COMMENTS Tender was awarded by BAC. In Appeal period which ends on the 20th 075511100223 Capital Transfer Station Caledon Solid Waste Loans - 1,368,688 - - - - 1,368,688 100% Nov2018. 075511400211 MIG 3,690,020 3,690,020 - - 50,901 967,057 3,639,119 99% Tender was awarded by BAC. In Appeal period which ends on the 21 Capital Waste Drop off Riviersonderend Solid Waste Nov2018. 075511400212 Capital out of Revenue 220,072 220,072 - - - 57,675 220,072 100% SPORTFIELDS Subtotal 10,734,180 12,102,868 - - 638,863 2,318,219 11,464,005 95% 0 074510200300 Capital out of Revenue 1,199,000 1,199,000 - - 97,849 314,226 1,101,151 92% 074510200301 Capital Upgrading of Pineview sports ground Grabouw Sport Development of Sport & Recreation Facilities A TWK 2 for cricket nets has been advertised. Additional lights installed as requested. Awaiting feedback regarding pitch construction. 401,000 401,000 - - - 105,091 401,000 100% FLEET 071012000310 Capital Purchase of Fleet TWK Fleet Subtotal 1,600,000 1,600,000 - - 97,849 419,318 1,502,151 94% 0 Loans 2,000,000 2,000,000 - - - 313,432 2,000,000 100% Purchase of vehicles out of RT57 - Transversal contract Tender during October / November 2018 - Vehicles already identified for purchase - Capital out of Revenue 402,922 402,922 - - - 105,595 402,922 100% Awaits letter of the OG to continue purchase out of RT57 Tender Tracking Tender - Appointment to Ctrack Mzanzi, awaits 21day appeal 071012001550 Capital - Vehicle Tracking System TWK Fleet Loans - 380,000 - - - 43,551 380,000 100% period ended 16/11/2018 Subtotal 2,402,922 2,782,922 - - - 462,578 2,782,922 100% 0 10
THEEWATERSKLOOF MUNICIPALITY CAPITAL PROGRAMME 2018-2019 VOTE PROJECT TOWN FUNCTION SOURCE OF FINANCE OFFICE EQUIPMENT BUDGET 2018-2018 ADJUSTED BUDGET ACTUAL EXPENDTURE THIS PERIOD COMMITMENTS ACTUAL YEARTODATE EXPENDED 0 4 0 YEARTODATE CASH AVAILABLE BUDGET FLOW PROJECTION % OF BUDGET AVAILABLE COMMENTS 071013001730 Capital Inventory Items TWK Administration: Towns Capital out of Revenue 452,612.96 452,613 - - 313,113 452,613 139,500 31% 071010200551 Furniture and Office Equipment_Upgrading (Copiers) Grabouw Directortae Corporate Capital out of Revenue 45,000 45,000 - - - 45,000 45,000 100% 071010400551 Furniture and Office Equipment_Upgrading (Copiers) Riviersonderend Directortae Corporate Capital out of Revenue 45,000 45,000 - - - 45,000 45,000 100% 071010900551 Furniture and Office Equipment_Upgrading (Copiers) Administration Directortae Corporate Capital out of Revenue 81,000 81,000 - - - 81,000 81,000 100% 071012901551 Machinery and Equipment (New) Administration Administration: Technical Services Capital out of Revenue 11,000 11,000 4,934-6,123 11,000 4,878 44% 071012900531 Furniture and Office Equipment (Renewal) Administration Administration: Technical Services Capital out of Revenue 6,000 6,000 4,400-4,400-1,600 27% 071012900541 Furniture and Office Equipment (New) Administration Administration: Technical Services Capital out of Revenue 3,000 3,000 1,500-1,500 2,836 1,500 50% 071013101551 Machinery and Equipment (New) Caledon Administration: Towns Capital out of Revenue 255,000 255,000-3,701-87,480 251,300 99% Twk2 Is in the process of approval will be finalised by the end of 071013200541 Furniture and Office Equipment (New) Grabouw Administration: Towns Capital out of Revenue 29,000 29,000 - - - 29,000 29,000 100% November 2018 071013201551 Machinery and Equipment (New) Grabouw Administration: Towns Capital out of Revenue 244,000 244,000 25,983-25,983-218,017 89% Twk2 was advertised closing date is on the 9th November 2018 071013201561 Machinery and Equipment (Renewal) Grabouw Administration: Towns Capital out of Revenue 30,000 30,000 - - - - 30,000 100% Twk2 was advertised closing date is on the 9th November 2018 071013300541 Furniture and Office Equipment (New) Villiersdorp Administration: Towns Capital out of Revenue 80,000 80,000 - - - 95,000 80,000 100% 11
THEEWATERSKLOOF MUNICIPALITY CAPITAL PROGRAMME 2018-2019 VOTE PROJECT TOWN FUNCTION SOURCE OF FINANCE OFFICE EQUIPMENT BUDGET 2018-2018 ADJUSTED BUDGET ACTUAL EXPENDTURE THIS PERIOD COMMITMENTS ACTUAL YEARTODATE EXPENDED 0 4 0 YEARTODATE CASH AVAILABLE BUDGET FLOW PROJECTION % OF BUDGET AVAILABLE COMMENTS 071013300811 Furniture and Equipment (New) Villiersdorp Administration: Towns Capital out of Revenue 8,000 8,000 - - - - 8,000 100% 071013301551 Machinery and Equipment (New) Villiersdorp Administration: Towns Capital out of Revenue 130,500 130,500 - - - - 130,500 100% Request for quotations was send out on the 9th of November 2018 and 071013400541 Furniture and Office Equipment (New) Riviersonderend Administration: Towns Capital out of Revenue 39,000 39,000-22,220-39,000 16,780 43% will close on the 16th of November 2018. Request for quotations was send out on the 9th of November 2018 and 071013400811 Furniture and Equipment (New) Riviersonderend Administration: Towns Capital out of Revenue 2,500 2,500 - - - - 2,500 100% will close on the 16th of November 2018. 071013501551 Machinery and Equipment (New) Greyton/Genadendal Administration: Towns Capital out of Revenue 145,000 145,000-5,102 - - 139,898 96% 071013500811 Furniture and Equipment (New) Greyton/Genadendal Administration: Towns Capital out of Revenue 7,000 7,000 - - - - 7,000 100% 071013701551 Machinery and Equipment (New) Botrivier Administration: Towns Capital out of Revenue 5,000 5,000 - - - - 5,000 100% 071013001760 Office Equipment (Assets) TWK Administration: Towns Capital out of Revenue 50,000 50,000 - - - 13,104 50,000 100% 071013001770 Machinery & Equipment TWK Administration: Towns Capital out of Revenue 50,000 50,000 - - - 13,104 50,000 100% 071013001780 Transport Assets TWK Administration: Towns Capital out of Revenue 100,000 100,000 - - - 26,207 100,000 100% 071510900541 Furniture and Office Equipment (New) Administration Finance Capital out of Revenue 42,975 42,975 - - - - 42,975 100% 071513000541 Furniture and Office Equipment (New) TWK ICT Capital out of Revenue 283,500 283,500-37,693 - - 245,807 87% 071513000551 Furniture and Office Equipment (Upgrading) TWK ICT Capital out of Revenue 15,500 15,500 - - - - 15,500 100% 071513000451 Computer Equipment (New) TWK ICT Capital out of Revenue 355,000 355,000 - - - - 355,000 100% 071513100451 Computer Equipment (New) Caledon ICT Capital out of Revenue 300,000 300,000 - - - - 300,000 100% 071513100461 Computer Equipment (Upgrading) Caledon ICT Capital out of Revenue 150,000 150,000-66,873 - - 83,127 55% 071513100541 Furniture and Office Equipment (New) Caledon ICT Capital out of Revenue 224,500 224,500-346 - - 224,154 100% 071513100551 Furniture and Office Equipment (Upgrading) Caledon ICT Capital out of Revenue 150,000 150,000 - - - - 150,000 100% 071515900541 Furniture and Office Equipment (New) Administration Internal Audit Capital out of Revenue 5,500 5,500 952-952 - 4,548 83% 12
THEEWATERSKLOOF MUNICIPALITY CAPITAL PROGRAMME 2018-2019 VOTE PROJECT TOWN FUNCTION SOURCE OF FINANCE OFFICE EQUIPMENT 072015300541 Furniture and Office Equipment (New) Villiersdorp 072015300811 Furniture and Equipment (New) Villiersdorp Town Planning and Building Control Town Planning and Building Control BUDGET 2018-2018 ADJUSTED BUDGET ACTUAL EXPENDTURE THIS PERIOD COMMITMENTS ACTUAL YEARTODATE EXPENDED 0 4 0 YEARTODATE CASH AVAILABLE BUDGET FLOW PROJECTION % OF BUDGET AVAILABLE Capital out of Revenue 2,000 2,000-1,799 - - 201 10% Capital out of Revenue 1,000 1,000-999 - - 1 0% COMMENTS 072015900541 Furniture and Office Equipment (New) Administration Town Planning and Building Control Capital out of Revenue 35,000 35,000 - - - - 35,000 100% Construction of new facility delayed. Funds might have to be 073010000811 Furniture and Equipment (New) TWK Library Capital out of Revenue 325,000 325,000 1,687 43,678 1,687-279,635 86% reallocated to another project at adjustment budget. 073010100811 Furniture and Equipment (New) Caledon Library Capital out of Revenue 5,000 5,000-3,480 - - 1,520 30% Additional equipment on order. 073010200811 Furniture and Equipment (New) Grabouw Library Capital out of Revenue 3,000 3,000 - - - - 3,000 100% In the process of obtaining quotations for furniture. In the process of obtaining quotations for furniture. Building has been 073010300811 Furniture and Equipment (New) Villiersdorp Library Capital out of Revenue 25,000 25,000 - - - - 25,000 100% recently completed. 074010100541 Furniture and Office Equipment (New) Caledon Traffic Capital out of Revenue 70,328 70,328 - - - - 70,328 100% 074010101551 Machinery and Equipment (New) Caledon Traffic Capital out of Revenue 210,000 210,000 - - - - 210,000 100% 077510001551 Machinery and Equipment (New) TWK Electricity Capital out of Revenue 6,400 6,400 - - - - 6,400 100% Quotation and Requisition send to SCM 077510101551 Machinery and Equipment (New) Caledon Electricity Capital out of Revenue 22,500 22,500 - - - 21,515 22,500 100% Awaiting SCM evaluation to order equipment 077510300541 Furniture and Office Equipment (New) Villiersdorp Electricity Capital out of Revenue 3,000 3,000-2,475 - - 525 18% Project completed with a saving. GRAND TOTAL CAPITAL BUDGET Subtotal 4,053,815 4,053,815 39,455 188,365 353,757 961,858 3,511,692 87% 0 78,755,666 94,544,700 3,777,354 357,754 10,384,240 20,639,776 83,802,706 89% 13
SECTION 3 - OPERATING REVENUE AND EXPENDITURE Financial Performance (revenue and expenditure by municipal vote) The municipal votes are in accordance with the GFS classification. WC031 Theewaterskloof - Table C3 Monthly Budget Statement - Financial Performance (revenue and expenditure by municipal vote) - M04 Vote Description 2017/18 Provisional Audit Outcome Original Budget Adjusted Budget Unauthorized expenditure by year end would occur either for the Municipality as a whole if the adjustment budget Total Expenditure by vote or if any of the individual budgets for any specific votes were overspent. 14 Monthly actual YearTD actual YearTD budget YTD variance R thousands % Revenue by Vote YTD variance Full Year Forecast Vote 1 - Budget and treasury office 189,072 187,973 188,973 1,960 57,553 96,672 (39,119) -40.5% 188,973 Vote 2 - Community and social serv ices 8,202 9,942 9,942 742 2,069 4,324 (2,255) -52.2% 9,942 Vote 3 - Corporate serv ices 27,995 26,688 26,688 2,000 5,607 7,413 (1,807) -24.4% 26,688 Vote 4 - Electricity 89,649 88,413 88,413 7,173 32,767 32,601 166 0.5% 88,413 Vote 5 - Env ironmental protection Vote 6 - Ex ecutiv e and council 1,153 1,130 1,130 66 180 398 (218) -54.8% 1,130 Vote 7 - Housing 16,858 61,255 74,662 899 903 22,985 (22,083) -96.1% 74,662 Vote 8 - Planning and dev elopment 3,374 2,558 2,558 185 636 869 (234) -26.9% 2,558 Vote 9 - Public safety 48,278 32,261 32,261 436 2,421 9,246 (6,825) -73.8% 32,261 Vote 10 - Road transport 5,448 6,263 10,714 620 2,287 1,985 302 15.2% 10,714 Vote 11 - Sport and recreation 77 444 444 1 15 116 (101) -86.9% 444 Vote 12 - Waste management 37,096 42,785 42,785 6,067 17,030 15,711 1,318 8.4% 42,785 Vote 13 - Waste water management 33,936 40,341 40,341 6,480 16,099 14,147 1,952 13.8% 40,341 Vote 14 - Water 72,699 79,970 79,970 5,379 25,305 26,142 (837) -3.2% 79,970 Vote 15 - [NAME OF VOTE 15] Total Revenue by Vote 533,838 580,022 598,880 32,007 162,870 232,611 (69,741) -30.0% 598,880 Expenditure by Vote Budget Year 2018/19 Vote 1 - Budget and treasury office 53,537 46,719 47,719 2,921 22,054 14,654 7,400 50.5% 47,719 Vote 2 - Community and social serv ices 6,527 9,317 9,317 597 2,265 2,866 (601) -21.0% 9,317 Vote 3 - Corporate serv ices 54,790 78,085 78,085 3,935 15,415 25,482 (10,067) -39.5% 78,085 Vote 4 - Electricity 70,727 77,609 77,609 5,685 24,284 26,304 (2,020) -7.7% 77,609 Vote 5 - Env ironmental protection 0 299 299 0 62 (62) -99.6% 299 Vote 6 - Ex ecutiv e and council 35,870 38,184 38,184 3,137 11,898 12,255 (357) -2.9% 38,184 Vote 7 - Housing 6,458 43,588 55,032 641 2,299 16,948 (14,649) -86.4% 55,032 Vote 8 - Planning and dev elopment 11,973 13,116 13,116 788 3,652 4,204 (553) -13.1% 13,116 Vote 9 - Public safety 62,942 55,854 55,854 3,992 15,568 15,571 (3) 0.0% 55,854 Vote 10 - Road transport 31,434 30,374 30,374 2,230 8,260 9,520 (1,259) -13.2% 30,374 Vote 11 - Sport and recreation 8,106 10,772 10,772 760 2,633 3,269 (636) -19.5% 10,772 Vote 12 - Waste management 41,985 53,119 53,119 2,973 10,210 15,969 (5,759) -36.1% 53,119 Vote 13 - Waste water management 31,140 39,150 39,150 2,522 9,081 11,785 (2,704) -22.9% 39,150 Vote 14 - Water 49,083 54,996 54,996 3,718 12,976 16,975 (4,000) -23.6% 54,996 Vote 15 - [NAME OF VOTE 15] Total Expenditure by Vote 464,573 551,182 563,627 33,898 140,594 175,863 (35,269) -20.1% 563,627 Surplus/ (Deficit) for the year 69,265 28,840 35,253 (1,891) 22,276 56,748 (34,472) -60.7% 35,253
Financial Performance (revenue and expenditure) WC031 Theewaterskloof - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - M04 October 2017/18 Budget Year 2018/19 Provisional Audit Outcome Original Budget The year to date revenue is 27% of the adjustment budget of R 598,880 million. The expenditure is 20% below the year to date budget. 15 Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands % YTD variance Full Year Forecast Revenue By Source Property rates 98,397 100,604 100,604 4,826 54,790 59,913 (5,123) -9% 100,604 Service charges - electricity revenue 80,216 85,712 85,712 6,336 31,929 31,470 459 1% 85,712 Service charges - w ater revenue 64,490 72,708 72,708 4,363 24,269 22,885 1,384 6% 72,708 Service charges - sanitation rev enue 27,553 32,562 32,562 4,360 13,974 10,658 3,316 31% 32,562 Service charges - refuse rev enue 29,947 34,047 34,047 3,648 14,610 11,791 2,819 24% 34,047 Serv ice charges - other Rental of facilities and equipment 1,843 2,035 2,035 105 511 524 (13) -2% 2,035 Interest earned - ex ternal investments 8,157 6,159 6,159 1,598 2,209 1,747 461 26% 6,159 Interest earned - outstanding debtors 10,340 8,000 8,000 1,349 5,261 2,340 2,922 125% 8,000 Div idends receiv ed Fines, penalties and forfeits 48,989 32,119 32,119 425 2,394 9,198 (6,805) -74% 32,119 Licences and permits 31 58 58 2 10 19 (9) -47% 58 Agency services 5,358 6,146 6,146 620 2,287 1,907 381 20% 6,146 Transfers and subsidies 98,219 146,043 158,488 1,876 4,204 65,522 (61,318) -94% 158,488 Other rev enue 10,154 6,481 6,481 453 1,530 2,203 (673) -31% 6,481 Gains on disposal of PPE Total Revenue (excluding capital transfers and contributions) 483,693 532,674 545,119 29,961 157,977 220,176 (62,199) -28% 545,119 Expenditure By Type Employee related costs 181,044 201,998 201,998 15,521 62,915 65,314 (2,399) -4% 201,998 Remuneration of councillors 11,539 12,179 12,179 922 3,763 3,792 (29) -1% 12,179 Debt impairment 81,973 57,890 57,890 4,824 19,297 14,413 4,884 34% 57,890 Depreciation & asset impairment 24,122 31,305 31,305 10,435 (10,435) -100% 31,305 Finance charges 19,010 22,362 22,362 2,009 4,758 (2,749) -58% 22,362 Bulk purchases 67,091 75,374 75,374 5,688 23,411 25,761 (2,350) -9% 75,374 Other materials 61,849 66,878 1,590 5,269 24,772 (19,503) -79% 66,878 Contracted services 23,687 44,695 51,811 2,873 7,018 9,227 (2,209) -24% 51,811 Transfers and subsidies 2,378 232 232 67 67 85 (18) -21% 232 Other expenditure 51,370 43,298 43,598 2,413 16,845 17,306 (461) -3% 43,598 Loss on disposal of PPE 2,359 Total Expenditure 464,573 551,182 563,627 33,898 140,594 175,863 (35,269) -20% 563,627 Surplus/(Deficit) 19,120 (18,508) (18,508) (3,937) 17,383 44,313 (26,930) (0) (18,508) Transfers and subsidies - capital (monetary allocations) (National / Provincial and District) 50,145 47,348 49,310 2,047 4,893 12,409 (7,515) (0) 49,310 (National / Prov incial Departmental Agencies, Households, Non-profit Institutions, Priv ate Enterprises, Public Corporatons, Higher Educational Institutions) Transfers and subsidies - capital (in-kind - all) 4,451 26 (26) (0) 4,451 Surplus/(Deficit) after capital transfers & contributions Description 69,265 28,840 35,253 (1,891) 22,276 56,748 35,253 Tax ation Surplus/(Deficit) after taxation 69,265 28,840 35,253 (1,891) 22,276 56,748 35,253 Attributable to minorities Surplus/(Deficit) attributable to municipality 69,265 28,840 35,253 (1,891) 22,276 56,748 35,253 Share of surplus/ (deficit) of associate Surplus/ (Deficit) for the year 69,265 28,840 35,253 (1,891) 22,276 56,748 35,253
The reasons for the variances in some of the income and expenditure items are as follows: Fines Actual fines revenue for the year includes only the actual cash collected and the budget is based on the accrual basis i.e. the expected value of fines to be issued. An adjusting journal to account for the actual accrued fines is normally processed as part of the year end procedures. Licenses and permits Licenses and permits consists of only filming and trading fees of which the municipality has no control over due to the fact that the Theewaterskloof jurisdiction don t get used for shooting films very often and not everyone that has a shop applies for trading licenses e.g. Tuck shops. Agency Services There is no control over the income received towards agency services because it consist of items like driver s and vehicle licenses, road worthy applications and certificates etc. and the budget is based on the expected amount income that will accrue. Transfers and subsidies Monthly actual for transfers and subsidies shows a negative due to a correction that was made regarding the grants received. The journal for the equitable share grant hasn t been processed yet, hence the reason for the variance. Depreciation Market Demand is in the process to integrate with the Phoenix system but due to some of the vote numbers mscoa segments not corresponding with the segments on the Market Demand system the integration could not take place during October because this issue first had to be resolved in order to proceed. Finance charges Finance charges year to date budget is a provision for interest and redemption on loans which is paid bi-annually. Other materials Title Deed Restoration Work package for the appointment of attorneys from the framework has been finalized. Once attorneys are appointed sales contracts will be submitted to do the property transfers. Attorneys will submit invoices for lodgment to the deeds office which will improve the spending. 16
Riemvasmaak Planning VPUU appointed by the Department of Human Settlement for the enumeration of the informal structures and community social profiling. Once this process is completed the town planner can amend the draft layout. Delays on the environmental assessment as a result of DEADP requesting additional information. Grabouw Rooidakke Extension 7000 Sites The Department of Human Settlements appointed the professionals directly. Although the allocation is on the municipality s business plan the Department pays the consultants directly. Grabouw Siyayanzela Planning Final civil engineering designs drafted and presented but referred back by the community to ensure that all interim services be within 200m. Consulting engineers to revise designs where possible and give feedback to the municipality. Invoice for the cost of re-design to be submitted which will improve spending Grabouw Hillside Top Structures The Department of Human Settlements appointed the contractor directly. Although the allocation is on the municipality s business plan the Department pays the contractor directly. Riviersonderend Top Structures Contractor established site. Amendments to the building plans not yet finalized. Once building plan approval is granted the contractor can commence. Greyton Erf 295 Environmental Practitioner and Town Planner appointed. Once works commence invoices can be paid. Botrivier New France: Project Initiation Documentation (PID) submitted to the Department for funding approval to purchase alternative land. Awaiting approval. Contracted Services Traffic Fines management The contractors appointed for the traffic services project is paid per case that is finalized on their system. In other words, the longer the contractor takes to complete a case the longer it will take to see any movement on the budget. Contracted Services Geoinformatic Services The licenses for the Geoinformatic system is only payable 1 June 2019 therefore no movement will be made on the budget regarding this project until June 2019. 17
Councilors and staff benefits WC031 Theewaterskloof - Supporting Table SC8 Monthly Budget Statement - councillor and staff benefits - M04 October 2017/18 Budget Year 2018/19 Summary of Employee and Councillor remuneration Provisional Audit Outcome Original Budget Adjusted The payroll report is required by section 66 of the MFMA. The active employees on the Payday system are 835, of which 156 are temporary workers, 27 council members and 652 permanent workers. The active employees include 12 new appointments and 15 resignations for the month of October 2018. The resignations includes the temp workers whose contract expired within October 2018. The total Salary, allowances & benefits for managers and staff amounts to R 15,521 million for the month. Overtime for October 2018 amounts to R 611 thousand. Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands % Councillors (Political Office Bearers plus Other) YTD variance Full Year A B C D Basic Salaries and Wages 9,327 10,211 10,211 753 3,071 3,179 (108) -3% 10,211 Pension and UIF Contributions 85 90 90 7 27 28 (1) -4% 90 Medical Aid Contributions 25 19 19 2 6 6 0 5% 19 Motor Vehicle Allow ance 919 966 966 65 264 301 (37) -12% 966 Cellphone Allowance 1,182 892 892 96 395 278 117 42% 892 Forecast Housing Allow ances Other benefits and allow ances - Sub Total - Councillors 11,539 12,179 12,179 947 1,894 1,849 46 2% 12,179 % increase 5.5% 5.5% 5.5% Senior Managers of the Municipality Basic Salaries and Wages 2,132 4,725 4,725 274 1,042 1,528 (486) -32% 4,725 Pension and UIF Contributions 376 332 332 37 145 108 37 35% 332 Medical Aid Contributions 47 242 242 4 17 78 (62) -79% 242 Ov ertime Performance Bonus 252 450 450 122 146 (23) -16% 450 Motor Vehicle Allow ance 108 473 473 9 36 153 (117) -76% 473 Cellphone Allowance 86 86 1 6 28 (22) -80% 86 Housing Allow ances 23 23 1 4 7 (3) -40% 23 Other benefits and allow ances 15 97 97 1 3 31 (28) -90% 97 Pay ments in lieu of leav e Long serv ice aw ards Post-retirement benefit obligations Sub Total - Senior Managers of Municipality 2,931 6,428 6,428 327 1,374 2,079 (704) -34% 6,428 % increase 119.3% 119.3% 119.3% Other Municipal Staff Basic Salaries and Wages 123,048 133,177 133,177 10,612 43,157 43,881 (723) -2% 133,177 Pension and UIF Contributions 20,334 22,818 22,818 1,796 7,253 7,378 (125) -2% 22,818 Medical Aid Contributions 8,992 6,664 6,664 543 2,228 2,155 73 3% 6,664 Ov ertime 6,726 6,333 6,333 661 2,593 2,048 546 27% 6,333 Performance Bonus Motor Vehicle Allow ance 9,075 7,822 7,822 714 2,926 2,529 397 16% 7,822 Cellphone Allowance 571 571 55 221 185 36 19% 571 Housing Allow ances 1,278 1,259 1,259 138 542 407 134 33% 1,259 Other benefits and allow ances 6,135 5,210 5,210 503 1,940 1,685 255 15% 5,210 Pay ments in lieu of leav e 1,864 2,000 2,000 117 477 647 (169) -26% 2,000 Long serv ice aw ards 663 714 714 55 205 231 (26) -11% 714 Post-retirement benefit obligations - 9,000 9,000 2,910 (2,910) -100% 9,000 Sub Total - Other Municipal Staff 178,113 195,569 195,569 15,194 61,541 64,055 (2,513) -4% 195,569 % increase 9.8% 9.8% 9.8% Total Parent Municipality 192,583 214,177 214,177 16,468 64,810 67,982 (3,172) -5% 214,177 Unpaid salary, allowances & benefits in arrears: TOTAL SALARY, ALLOWANCES & BENEFITS 192,583 214,177 214,177 16,468 64,810 67,982 (3,172) -5% 214,177 % increase 11.2% 11.2% 11.2% TOTAL MANAGERS AND STAFF 181,044 201,998 201,998 15,521 62,915 66,133 (3,218) -5% 201,998 18
Expenditure on Repairs & Maintenance by asset class WC031 Theewaterskloof - Supporting Table SC13c Monthly Budget Statement - expenditure on repairs and maintenance by asset class - M04 2017/18 Budget Year 2018/19 Description Provisional Audit Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands % Repairs and maintenance expenditure by Asset Class/Sub-class YTD variance Full Year Forecast Infrastructure 9,305 68,799 68,799 5,788 19,823 8,379 11,444 136.6% 68,799 Roads Infrastructure 3,282 22,348 22,348 1,740 6,197 2,874 3,322 115.6% 22,348 Roads 3,260 22,264 22,264 1,737 6,182 7,277 (1,095) -15.0% 22,264 Road Structures Road Furniture 22 84 84 2 15 34 (19) -56.4% 84 Capital Spares Storm w ater Infrastructure Drainage Collection Storm water Conveyance Attenuation Electrical Infrastructure 1,727 8,908 8,908 751 2,886 3,236 (350) -10.8% 8,908 Power Plants HV Substations HV Switching Station HV Transmission Conductors MV Substations MV Switching Stations MV Networks LV Networks 1,727 8,908 8,908 751 2,886 3,236 (350) -10.8% 8,908 Capital Spares Water Supply Infrastructure 1,759 17,491 17,491 1,306 4,845 5,945 (1,099) -18.5% 17,491 Dams and Weirs Boreholes Reservoirs Pump Stations Water Treatment Works 356 1,200 1,200 47 94 331 (237) -71.6% 1,200 Bulk Mains Distribution 1,403 16,292 16,292 1,259 4,751 5,613 (862) -15.4% 16,292 Distribution Points PRV Stations Capital Spares Sanitation Infrastructure 1,244 17,806 17,806 1,449 5,213 5,988 (775) -12.9% 17,806 Pump Station Reticulation 454 12,158 12,158 828 3,091 4,269 (1,179) -27.6% 12,158 Waste Water Treatment Works 790 5,648 5,648 621 2,122 1,718 404 23.5% 5,648 Outfall Sewers Toilet Facilities Capital Spares Solid Waste Infrastructure 1,293 2,246 2,246 542 682 820 (138) -16.8% 2,246 Landfill Sites 1,293 2,246 2,246 542 682 820 (138) -16.8% 2,246 Waste Transfer Stations Waste Processing Facilities Waste Drop-off Points Waste Separation Facilities Electricity Generation Facilities Capital Spares 19
WC031 Theewaterskloof - Supporting Table SC13c Monthly Budget Statement - expenditure on repairs and maintenance by asset class - M04 2017/18 Budget Year 2018/19 Description Provisional Audit Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands % Repairs and maintenance expenditure by Asset Class/Sub-class YTD variance Full Year Forecast Infrastructure 9,305 68,799 68,799 5,788 19,823 8,379 11,444 136.6% 68,799 Rail Infrastructure Rail Lines Rail Structures Rail Furniture Drainage Collection Storm water Conveyance Attenuation MV Substations LV Networks Capital Spares Coastal Infrastructure Sand Pumps Piers Revetments Promenades Capital Spares Information and Communication Infrastructure Data Centres Core Layers Distribution Layers Capital Spares Community Assets 1,165 12,869 12,869 751 2,686 3,797 (1,111) -29.3% 12,869 Community Facilities 738 11,722 11,722 711 2,579 3,482 (903) -25.9% 11,722 Halls 261 714 714 32 54 175 (121) -68.9% 714 Centres Crèches Clinics/Care Centres Fire/Ambulance Stations Testing Stations Museums Galleries Theatres Libraries 1,700 1,700 4 65 454 (388) -85.6% 1,700 Cemeteries/Crematoria 224 546 546 54 71 128 (57) -44.4% 546 Police Purls Public Open Space 191 7,434 7,434 525 2,068 2,320 (252) -10.9% 7,434 Nature Reserves 61 1,328 1,328 97 320 406 (85) -21.1% 1,328 Public Ablution Facilities Markets Stalls Abattoirs Airports Taxi Ranks/Bus Terminals Capital Spares Sport and Recreation Facilities 428 1,147 1,147 40 107 315 (208) -66.0% 1,147 Indoor Facilities Outdoor Facilities 428 1,147 1,147 40 107 315 (208) -66.0% 1,147 Capital Spares 20
WC031 Theewaterskloof - Supporting Table SC13c Monthly Budget Statement - expenditure on repairs and maintenance by asset class - M04 2017/18 Budget Year 2018/19 Description Provisional Audit Outcome Original Budget Adjusted Budget Monthly actual YearTD actual YearTD budget YTD variance R thousands % Repairs and maintenance expenditure by Asset Class/Sub-class YTD variance Full Year Forecast Heritage assets Monuments Historic Buildings Works of Art Conserv ation Areas Other Heritage Investment properties Rev enue Generating Improved Property Unimproved Property Non-rev enue Generating Improved Property Unimproved Property Other assets 4,858 10,464 10,464 863 1,871 2,968 (1,097) -37.0% 10,464 Operational Buildings 4,858 10,464 10,464 863 1,871 2,968 (1,097) -37.0% 10,464 Municipal Offices 4,682 9,608 9,608 841 1,751 2,729 (978) -35.8% 9,608 Pay/Enquiry Points Building Plan Offices Workshops 176 857 857 23 120 239 (119) -49.7% 857 Yards Stores Laboratories Training Centres Manufacturing Plant Depots Capital Spares Housing Staff Housing Social Housing Capital Spares Biological or Cultivated Assets Biological or Cultiv ated Assets Intangible Assets 4,242 4,242 464 1,371 1,699 (328) -19.3% 4,242 Serv itudes Licences and Rights 4,242 4,242 464 1,371 1,699 (328) -19.3% 4,242 Water Rights Effluent Licenses Solid Waste Licenses Computer Software and Applications 4,242 4,242 464 1,371 1,699 (328) -19.3% 4,242 Load Settlement Software Applications Unspecified Computer Equipment Computer Equipment Furniture and Office Equipment 158 296 296 26 98 65 32 49.7% 296 Furniture and Office Equipment 158 296 296 26 98 65 32 49.7% 296 Machinery and Equipment 839 1,332 1,332 31 181 275 (94) -34.1% 1,332 Machinery and Equipment 839 1,332 1,332 31 181 275 (94) -34.1% 1,332 Transport Assets 4,322 6,497 6,497 491 1,247 1,380 (133) -9.6% 6,497 Transport Assets 4,322 6,497 6,497 491 1,247 1,380 (133) -9.6% 6,497 Land Land Zoo's, Marine and Non-biological Animals Zoo's, Marine and Non-biological Animals Total Repairs and Maintenance Expenditure 20,647 104,499 104,499 8,415 27,276 18,562 8,714 46.9% 104,499 21
SECTION 4 - CASH ANDINVESTMENTS Cash Flow Table C7 includes the balance of the Cashbook and Current Investment Deposits. WC031 Theewaterskloof - Table C7 Monthly Budget Statement - Cash Flow - M04 October 2017/18 Budget Year 2018/19 Provisional Description Original Adjusted Monthly YearTD YearTD YTD Audit Budget Budget actual actual budget variance Outcome YTD variance Full Year Forecast R thousands % CASH FLOW FROM OPERATING ACTIVITIES Receipts Property rates 93,425 87,112 87,112 8,866 44,863 13,402 31,461 235% 87,112 Serv ice charges 166,985 194,850 194,850 17,426 73,203 33,833 39,370 116% 194,850 Other revenue 18,444 19,665 19,665 1,387 5,132 2,939 2,193 75% 19,665 Gov ernment - operating 114,094 141,913 158,488 15,154 58,769 48,681 10,088 21% 158,488 Gov ernment - capital 36,572 51,478 47,348 14,195 14,939 15,783 (843) -5% 47,348 Interest 8,157 13,086 13,086 245 3,965 1,640 2,325 142% 13,086 Div idends Payments Suppliers and employ ees 330,389 (441,358) (453,803) (32,403) (147,867) (54,489) 93,378-171% (453,803) Finance charges 9,576 (12,783) (12,783) (683) 2,628 (2,628) #DIV/0! (12,783) Transfers and Grants 2,378 (232) (232) 67 (26) (94) 356% (232) NET CASH FROM/(USED) OPERATING ACTIVITIES 95,335 53,731 53,731 24,187 55,699 61,762 6,063 10% 53,731 CASH FLOWS FROM INVESTING ACTIVITIES Receipts Proceeds on disposal of PPE 295 Decrease (Increase) in non-current debtors 1 1 0 0 0 0 62% 1 Decrease (increase) other non-current receivables Decrease (increase) in non-current investments (924) (924) #DIV/0! Payments Capital assets 87,866 (78,756) (78,756) (2,859) (10,384) (5,601) 4,783-85% (78,756) NET CASH FROM/(USED) INVESTING ACTIVITIES (87,571) (78,754) (78,754) (2,859) (11,308) (5,601) 5,707-102% (78,754) CASH FLOWS FROM FINANCING ACTIVITIES Receipts Short term loans Borrowing long term/refinancing 10,420 19,796 19,796 Increase (decrease) in consumer deposits 3 290 290 8 43 48 (5) -11% 290 Payments Repay ment of borrow ing 8,189 (8,463) (8,463) (1,191) 1,191 #DIV/0! (8,463) NET CASH FROM/(USED) FINANCING ACTIVITIES (8,187) 2,247 11,623 8 (1,149) 48 1,197 2479% 11,623 NET INCREASE/ (DECREASE) IN CASH HELD (423) (22,776) (13,400) 21,337 43,243 56,209 (13,400) Cash/cash equivalents at beginning: 64,323 41,611 41,611 63,901 41,611 63,901 Cash/cash equivalents at month/year end: 63,901 18,835 28,211 107,143 97,820 50,501 22
Cash/cash equivalents at the month/year end: Unspent grants Net cash & cash equivalents 107,143,062 35,269,049 71,874,013 COST COVERAGE RATIO Formula: Cash/cash equivalents / Fixed monthly operating expenditure * Fixed monthly operating expenditure exclude Debt Impairment, Depreciation and asset impairment and housing operating grants expenditure Cash/cash equivalents 71,874,013 Fixed Monthly Operating Expenditure (budget) 35,486,011 Cost coverage ratio 62 days 23
Investments The municipality has an amount of R 41,539 million on call account investments, a fixed deposit of R 12,353 million and Sanlam Share Investment of R 216 thousand as illustrated in the table below. The municipality s bank account per bank statement reflects a positive balance as at the end of October 2018. WC031 Theewaterskloof - Supporting Table SC5 Monthly Budget Statement - investment portfolio - M04 October R thousands Municipality Investments by maturity Name of institution & investment ID Period of Investment Yrs/Months Type of Investment Expiry date Listed shares 216 Fixed Deposits 12,353 Short Term Deposits 41,539 Municipality sub-total 54,108 Entities sub-total TOTAL INVESTMENTS AND INTEREST 54,108 of investment Accrued interest for the month Yield for the month 1 (%) Market value at beginning of the month Change in market value Market value at end of the month 24
SECTION 5 - BORROWINGS THEEWATERSKLOOF MUNICIPALITY Summary of external loans for the month: October 2018 Lending Institition Percentage Maturity Date Balance 01/10/2018 Interest PAID Repayments Balance 31/10/2018 % D/M/Y (R'000) (R'000) (R'000) (R'000) DBSA 9.77 31/12/2019 9.46 31/12/2024 7,000 7,000 DBSA 9.39 31/3/2022 9.29 31/3/2027 10,023 10,023 DBSA 9.69 30/6/2018 9.47 30/6/2028 6,420 6,420 DBSA 11.44 31/12/2018 11.38 31/12/2018 7,326 7,326 DBSA 10.00 9.97 31/3/2019 31/3/2024 20,323 20,323 9.85 31/3/2029 ABSA 11.14 30/12/2018 61 61 ABSA 11.14 30/12/2010 65 65 DBSA 16.5 30/12/2019 45 45 DBSA 15.75 30/6/2020 28 28 STANDARD BANK 11.72 31/7/2020 902 902 DBSA 11.06 21/12/2030 9,443 9,443 STANDARD BANK 12.22 30/6/2026 6,056 6,056 ABSA 10.79 27/6/2027 9,087 9,087 ABSA 9.42 27/6/2019 1,555 1,555 ABSA 8.25 27/6/2019 69 69 ABSA 8.25 27/6/2019 18 18 ABSA 8.25 27/6/2019 110 110 ABSA 10.09 27/6/2021 1,541 1,541 ABSA 10.63 27/6/2024 5,938 5,938 Total 86,008 86,008 Outstanding loans at the end of October 2018 amount to R 86,008 million. Long term liabilities resulting from finance leases are excluded from the above table. The loans regarding capital projects for the financial year is in the evaluation process and therefore still excluded from the above schedule. 25
SECTION 6 - GRANTS WC031 Theewaterskloof - Supporting Table SC7(1) Monthly Budget Statement - transfers and grant expenditure - M04 October 2017/18 Budget Year 2018/19 Provisional Description Original Adjusted Monthly YearTD YearTD YTD Audit Budget Budget actual actual budget variance Outcome R thousands % EXPENDITURE YTD variance Full Year Forecast Operating expenditure of Transfers and Grants National Government: 86,290 99,009 99,009 6,037 30,005 31,626 (1,621) -5.1% 99,009 Local Gov ernment Equitable Share 77,911 87,385 87,385 5,308 27,471 29,128 (1,657) -5.7% 87,385 Ex panded Public Works Programme [Schedule 5B] 1,623 1,451 1,451 131 462 484 (22) -4.6% 1,451 Local Gov ernment Financial Management Grant [Schedule 5B] 1,700 1,700 1,700 111 697 567 131 23.1% 1,700 Municipal Infrastructure Grant [Schedule 5B] 4,097 3,908 3,908 487 1,375 1,303 72 5.5% 3,908 Integrated National Electrification Programme [Schedule 5B] 936 4,565 4,565 145 (145) -100.0% 4,565 Provincial Government: 10,204 47,034 59,479 2,319 10,000 19,493 (9,454) -48.5% 59,479 Municipal Capacity Building Grant 363 360 360 120 (120) -100.0% 360 Community Dev elopment Workers 84 130 130 6 27 43 (17) -38.5% 130 Human Settlement Dev elopment 1,360 37,155 48,600 1,710 7,526 16,200 (8,673) -53.5% 48,600 Financial Support Grant 330 330 1,330 14 110 (96) -87.6% 1,330 Library Service 7,499 8,942 8,942 603 2,433 2,981 (547) -18.4% 8,942 Maintenance of Main Roads 85 117 117 39 (39) -100.0% 117 Local Gov ernment Graduate Internship Allocation 40 Thusong Centre 442 District Municipality: Other grant providers: 495 DBSA LED 234 National Skills Fund (SETA) 261 Total operating expenditure of Transfers and Grants: 96,989 146,043 158,488 8,356 40,005 51,119 (11,075) -21.7% 158,488 Capital expenditure of Transfers and Grants National Government: 32,676 22,489 22,489 2,742 7,119 8,873 (1,754) -19.8% 22,489 Municipal Infrastructure Grant [Schedule 5B] 22,947 22,054 22,054 2,742 7,119 7,351 (233) -3.2% 22,054 Integrated National Electrification Programme (Municipal Grant) 6,689 435 435 1,522 (1,522) -100.0% 435 Municipal Disaster Recov ery Grant Municipal Drought Reliev e (MDR) 2,886 Public Works 154 Provincial Government: 17,469 24,859 26,821 27 515 8,940 (8,426) -94.2% 26,821 'Library Service 358 358 2 2 119 (118) -98.6% 358 Water Supply Grant 2,131 Thusong Centre 17 Sport and Recreation 401 401 134 401 Human Settlements 15,321 24,100 26,062 25 513 8,687 26,062 District Municipality: Other grant providers: Total capital expenditure of Transfers and Grants 50,145 47,348 49,310 2,769 7,633 17,813 (10,180) -57.1% 49,310 TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 147,134 193,391 207,798 11,125 47,638 68,933 (21,255) -30.8% 207,798 Expenditure for the provision of free basic services from the Equitable Share Grant is incurred on a monthly basis. Expenditure in respect of the Finance Management Grant and MIG, are incurred in accordance with business plans. Expenditure in respect of the Low Cost Housing is once off payments and are done in accordance with claims submitted to either Provincial or National Government. 26
SECTION 7 - DEBTORS The schedules were compiled in line with how figures are currently reflecting on the financial system and is subject to change. WC031 Theewaterskloof - Supporting Table SC3 Monthly Budget Statement - aged debtors - M04 October Description R thousands Debtors Age Analysis By Income Source 0-30 Days 31-60 Days 61-90 Days 91-120 Days 121-150 Dys 151-180 Dys 181 Dys-1 Yr Over 1Yr Total The revenue collection rate for Theewaterskloof municipality for October 2018 is currently 72% which is an improvement from October 2017 which was 65%.This is an area where Theewaterskloof municipality have to improve their collection rate in order to become financially sustainable to enable the municipality to provide services. Total over 90 days Actual Bad Debts Written Off against Debtors Impairment - Bad Debts i.t.o Council Policy Trade and Other Receiv ables from Ex change Transactions - Water 9,233 2,353 2,062 1,300 1,214 1,248 9,384 19,737 46,530 32,882 Trade and Other Receiv ables from Ex change Transactions - Electricity 4,375 894 651 364 151 84 318 453 7,290 1,371 Receiv ables from Non-ex change Transactions - Property Rates 5,620 4,123 1,133 8,485 991 723 3,785 19,417 44,277 33,401 Receiv ables from Ex change Transactions - Waste Water Management 5,065 1,521 1,297 1,161 959 901 7,074 17,578 35,556 27,672 Receiv ables from Ex change Transactions - Waste Management 4,242 1,766 1,477 1,344 1,136 1,071 8,856 21,658 41,550 34,066 Receiv ables from Ex change Transactions - Property Rental Debtors 114 88 50 34 50 15 94 169 614 362 Interest on Arrear Debtor Accounts 1,393 1,293 1,275 1,268 1,267 1,210 5,629 23,368 36,703 32,742 Recov erable unauthorised, irregular, fruitless and w asteful ex penditure Other (3,874) 34 1 9 308 1 298 1,219 (2,005) 1,835 Total By Income Source 26,168 12,072 7,946 13,966 6,075 5,254 35,438 103,599 210,516 164,330 2017/18 - totals only 22,032 8,921 6,418 141,828 - - - - 179,199 141,828 - - Debtors Age Analysis By Customer Group Budget Year 2018/19 Organs of State 156 2,208 39 291 41 31 246 399 3,412 1,008 Commercial 4,383 181 335 223 100 50 127 178 5,577 678 Households 16,735 7,050 5,537 11,483 3,996 3,855 25,064 76,753 150,475 121,152 Other 4,893 2,632 2,035 1,969 1,938 1,317 10,001 26,267 51,052 41,492 Total By Customer Group 26,168 12,072 7,946 13,966 6,075 5,254 35,438 103,599 210,516 164,330 The annual property taxes outstanding as at the end of October 2018 in respect of businesses is R1 240,905.29. Oct-18 Town Amount outstanding for October 2018 % Outstanding for October 2018 Tesselaarsdal 2,009,364 1% Greyton 6,116,203 3% Riviersonderend 10,127,469 5% Villiersdorp 6,414,636 3% Landelik 16,998,368 8% Botrivier 16,155,952 8% Caledon 20,134,304 10% Genadendal 56,929,283 27% Grabouw 75,630,121 35% Total 210,515,701 100% 27
Grabouw (35%) and Genadendal (27%) where the municipality is not providing electricity has the highest percentage outstanding debt for the month of October 2018. To be able to be mscoa compliant Theewaterskloof Municipality had to appoint the service provider Vesta who implemented the Phoenix financial system. Due to the challenges with the implementation from July 2017 the municipality was only able to bill debtors from the 28th of August 2017 which has an effect on the collection rate. Development of the Credit Control system was a challenge at the end of the 2017/2018 financial year and is currently still done manually as from February 2018. The credit control function is still not operational but the municipality in conjunction with the service provider are busy with the development of the credit control module. Notice letters are amended as required by the municipality within the system and is currently tested. The debt collection and credit control function was handled manually for this month and water and electricity notices was sent out to defaulters in several towns. In this way, water was limited and electricity was blocked as from October 2018 after a long absence of credit control. R 500 thousand was received from Provincial Treasury for debt collection. Our current financial systems vendor, Vesta, confirmed that they will not develop a debt collection module within Phoenix, therefore the R 500 thousand will be used to procure a debt collection system from a third party The procurement of a third party debt collection system will be in terms of the municipality s Supply Chain Management policy. This will also be used to help with data cleansing. The amount of utility meters installed to date are as follow: Towns Amount of utility meters Caledon 592 Grabouw 2,153 Villiersdorp 739 Riviersonderend 670 Greyton 71 Genadendal 162 Botrivier 1,097 Tesselaarsdal & Farms 62 Total 5,546 28
The total 5 546 utility meters mentioned above are which is currently in operation and this is the total amount of meters that have been installed over the past three years. The financial system indicates that for the 2017/2018 financial year 1 668 meters was installed not taking into consideration the replacements and for the 2018/2019 financial year thus far 621 meters was installed which the majority was replacements. The towns with the majority of meters Grabouw and Botrivier was instituted on a project basis and the other towns are more on a replacement basis. The primary reason for the roll out of these meters was credit control and the phasing out of prepaid meters. Villiersdorp replaced all their prepaid meters with smart meters. Botrivier have only 10 prepaid meters left. In Grabouw the primary reason for the roll out of these meters was for credit control purposes (Eskom supply area) and the areas that have the ability to pay was targeted. Simultaneously the new housing developments also install these meters to ensure consistency in credit control, indigent and drought management. In Botrivier we installed these meters street by street since it is a much smaller and manageable area operationally. The primary reason for the roll out was credit control in the absence of the option to cut electricity. The contract for the project expired a while back and the Operational staff have to install the meters themselves, therefore the installment of the smart meters are showing a slow increase. The current issues we have with the smart meters are also hampering installation because the operational staff is currently only doing replacement because of the vast number of faulty meters and huge backlogs. The WMD s have a definite impact on collection but the current technical issues with the meter needs to be resolved and decisions taken on the continuous installation of the meters. New projects will also need to be identified and initiated. 29
SECTION 8 - CREDITORS WC031 Theewaterskloof - Supporting Table SC4 Monthly Budget Statement - aged creditors - M04 October Budget Year 2018/19 Description 0-31 - 61-91 - 121-151 - 181 Days - R thousands Creditors Age Analysis By Customer Type 30 Days 60 Days 90 Days 120 Days 150 Days Most creditors were paid within 30 days of receiving the relevant invoice or statement as prescribed in terms of Section 65(e) of the MFMA. The reason for the outstanding creditors being paid late is due to no statement received and the dates on the invoice was in the middle of October & therefor the payment will only be made 30 days after the invoice date. The following Tenders with a total R 34,589 million was awarded. 180 Days Bulk Electricity Bulk Water PAYE deductions VAT (output less input) Pensions / Retirement deductions Loan repay ments Trade Creditors 325 45 370 Auditor General Other 3 3 Total By Customer Type 325 48 373 Tenderer Tender Description Tender Amount 1 Year Over 1 Year Total BFECT (Pty) Ltd. Supply and Delivery of Photocopy Paper to Various Municipal - and Traffic Offices of Theewaterskloof Municipality for the Period from August 2018 to 30 June 2019 R 478,515 C-Track Mzanzi (pty) Ltd. Supply and Installation of Vehicle Tracking System and Monitoring for the period from 01 July 2018 to 30 June 2021 R 1,910,570 JVZ JV Construction of the Caledon Solid Waste Transfer Station and Material Recovery Facility - Phase 1 R 5,770,264 Amandla Asphalt Construction of the Riviersonderend Solid Waste Transfer Station - Phase 1 R 7,166,023 Rodpaul Construction (Pty) Ltd. Upgrading and Refurhbishment of the Caledon Waste Water Treatment Works - Phase 2 R 15,866,166 Neil Lyners & Associates (RF) (Pty) Ltd. Provision of Professional Services: Phased Installation of Bulk and Internal Electrical Services for Destiny Development in Villiersdorp R 3,397,319 30