NC062 Nama Khoi AFS 2018-19 audited

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NAMA KHOI
MUNICIPALITY
FINANCIAL STATEMENTS
30 JUNE 2019
NAMA KHOI MUNICIPALITY
Index
Contents Page
General Information 1 - 3
Approval of the Financial Statements 4
Report of the Auditor General 5
Statement of Financial Position 6
Statement of Financial Performance 7
Statement of Changes In Net Assets 8
Cash Flow Statement 9
Statement of Comparison of Budget and Actual Amounts - Statement of 10
Financial Position
Statement of Comparison of Budget and Actual Amounts - Statement of 11
Financial Performance
Statement of Comparison of Budget and Actual Amounts - Cash Flow 12
Statement
Accounting Policies 13 - 52
Notes to the Financial Statements 53 - 107
APPENDICES
A Schedule of External Loans 108
B Segmental Statement of Financial Performance - GFS Classifications 109
C Segmental Statement of Financial Performance - Municipal Votes 110
D Disclosure of Grants and Subsidies In Terms of Section 123 of MFMA, 111
56 of 2003
NAMA KHOI MUNICIPALITY
FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019
GENERAL INFORMATION
NATURE OF BUSINESS
NamaKhoiMunicipalityisalocalmunicipalityperformingthefunctionsassetoutintheConstitution. (Actno105
of 1996)
COUNTRY OF ORIGIN AND LEGAL FORM
South African Category B Municipality (Local Municipality) as defined by the Municipal Structures Act. (Act no
117 of 1998)
JURISDICTION
The Nama Khoi Municipality includes the towns of Springbok, Concordia, Okiep, Steinkopf, Nababeep,
Carolusberg, Vioolsdrift, Rooiwal, Goodhouse and Komaggas.
EXECUTIVE MAYOR
LF Faber
SPEAKER
ML Isaacs
MEMBERS OF THE EXECUTIVE COMMITTEE
Mayor LF Faber
Speaker ML Isaacs
Executive Councillor S Kleinbooi
Executive Councillor WS Jordaan
MUNICIPAL MANAGER
SA Titus
CHIEF FINANCIAL OFFICER
H Cloete (Acting)
REGISTERED OFFICE
Private Bag X17
SPRINGBOK
8240
AUDITORS
Office of the Auditor-General (Northern Cape)
Private Bag X5013
KIMBERLEY
8300
PRINCIPLE BANKERS
ABSA Bank
Page 1
NAMA KHOI MUNICIPALITY
FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019
GENERAL INFORMATION
ATTORNEYS
Neville Cloete Attorneys
Webber Wentzel
Duncan J Britz Attorneys
Shreuders Attorneys
Werkman Attorneys
Bouwer & Kie
RELEVANT LEGISLATION
Basic Conditions of Employment Act (Act no 75 of 1997)
Collective Agreements
Division of Revenue Act
Electricity Act (Act no 41 of 1987)
Employment Equity Act (Act no 55 of 1998)
Housing Act (Act no 107 of 1997)
Infrastructure Grants
Municipal Budget and Reporting Regulations
Municipal Finance Management Act (Act no 56 of 2003)
Municipal Planning and Performance Management Regulations
Municipal Property Rates Act (Act no 6 of 2004)
Municipal Regulations on Standard Chart of Accounts
Municipal Structures Act (Act no 117 of 1998)
Municipal Systems Act (Act no 32 of 2000)
Municipal Systems Amendment Act (Act no 7 of 2011)
SALBC Leave Regulations
Skills Development Levies Act (Act no 9 of 1999)
Supply Chain Management Regulations, 2005
The Income Tax Act
Unemployment Insurance Act (Act no 30 of 1966)
Value Added Tax Act
Water Services Act (Act no 108 of 1997)
Page 2
NAMA KHOI MUNICIPALITY
FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2019
GENERAL INFORMATION
MEMBERS OF THE NAMA KHOI MUNICIPALITY
WARD COUNCILLOR
1 JE van den Heever
2 DA Markus
3 CE Gertze
4 R Kritzinger
5 S Kleinbooi
6 CG Coetzee
7 YL van Zyl
8 P van Reenen
9 GY Pieters
Proportional LF Faber
Proportional JD Owies (neè Joseph) (Resigned 29/03/2019)
Proportional SCJ van Wyk (Resigned 29/03/2019)
Proportional ZP de Jongh
Proportional LL Vries
Proportional SH Ruiter
Proportional WS Jordaan
Proportional GJ Coetzee
Proportional W Van Schalkwyk (Appointed 15/04/2019)
Proportional ML Isaacs (Appointed 03/04/2019)
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NAMA KHOI MUNICIPALITY
APPROVAL OF FINANCIAL STATEMENTS
I am responsible for the preparation of these annual financial statements year ended 30
June 2019, which are set out on pages 6 to 107 in terms of Section 126 (1) of the
Municipal Finance Management Act and which I have signed on behalf of the Municipality.
The annual financial statements have been prepared in accordance with Standards of
Generally Recognised Accounting Practice (GRAP), including any interpretations,
guidelines and directives issued by the Accounting Standards Board.
The annual financial statements are based upon appropriate accounting policies
consistently applied and supported by reasonable and prudent judgements and estimates.
I acknowledge that I am ultimately responsible for the system of internal financial control
and that the system of internal control provides reasonable assurance that the financial
records can be relied on.
I have reviewed the Municipality’s cash flowforecast forthe yearto 30 June2020 andam
satisfied that the Municipality can continue in operational existence for the foreseeable
future.
The external auditors are responsible for independently reviewing and reporting on the
Municipality’s financial statements.
IcertifythattheremunerationofCouncillorsandin-kindbenefitsarewithintheupperlimits
oftheframeworkenvisagedinSection219oftheConstitution,readwiththeRemuneration
of Public Officer Bearers Act and the Minister of Provincial and Local Government's
determination in accordance with this Act.
The annual financial statements were prepared on the going concern basis and the
municipalityhasneithertheintentionnortheneedtoliquidateorcurtailmateriallythescale
of the municipality.
SA Titus Date
Municipal Manager
Page 4
Report of AG
NAMA KHOI MUNICIPALITY
STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2019
Notes 2019 2018
R R
ASSETS
Non-Current Assets 788 113 750 791 277 053
Property, Plant and Equipment 2 663 557 305 666 728 393
Investment Property 3 123 444 704 123 444 704
Intangible Assets 4 72 942 65 156
Heritage Assets 5 1 038 799 1 038 799
Current Assets 112 373 554 93 588 654
Inventory 8 31 138 138 30 995 464
Receivables from Exchange Transactions 9 23 477 546 24 885 660
Receivables from Non-exchange Transactions 10 7 146 669 8 610 823
Operating Lease Asset 7.1 26 464 53 361
Taxes 20.3 21 093 132 12 957 073
Cash and Cash Equivalents 11.1 29 464 599 16 059 267
Short-term Investments 11.2 27 006 27 006
Total Assets 900 487 304 884 865 706
NET ASSETS AND LIABILITIES
Non-Current Liabilities 80 208 453 70 533 502
Long-term Borrowings 12 7 547 178 -
Non-current Provisions 13 49 232 691 46 794 687
Non-current Employee Benefits 14 23 428 584 23 738 815
-
Current Liabilities 343 698 773 278 092 372
Consumer Deposits 15 3 294 373 3 126 230
Provisions 16 31 047 598 29 510 121
Current Employee Benefits 17 9 543 206 8 760 970
Trade and Other Payables from Exchange Transactions 18 283 422 732 220 839 248
Unspent Transfers and Subsidies 19 12 727 195 13 402 799
Cash and Cash Equivalents 11.3 - 2 432 766
Current Portion of Long-term Borrowings 12 3 663 670 20 238
Total Liabilities 423 907 226 348 625 874
Net Assets 476 580 078 536 239 832
Accumulated Surplus/(Deficit) 476 580 078 536 239 832
Total Net Assets and Liabilities 900 487 304 884 865 706
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NAMA KHOI MUNICIPALITY
STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD ENDED 30 JUNE 2019
Notes 2019 2018
R R
REVENUE
Revenue from Non-exchange Transactions 135 447 574 119 397 001
Taxation Revenue 47 470 760 45 165 614
Property Rates 23 47 470 760 45 165 614
Transfer Revenue 79 272 077 69 587 063
Government Grants and Subsidies 24 79 210 781 69 587 063
Public Contributions and Donations 25 - -
Contributed Property, Plant and Equipment 61 296 -
Other Revenue 8 704 736 4 644 323
Actuarial Gains 14 4 558 829 1 371 142
Fines. Penalties and Forfeits 589 497 105 322
Interest Earned - Non-exchange Transactions 2 276 707 1 862 575
Licences and Permits 26 1 279 703 1 305 284
Revenue from Exchange Transactions 148 038 930 135 819 247
Service Charges 27 133 535 710 123 276 406
Sales of Goods and Rendering of Services 28 636 598 546 928
Rent on Land 29 1 001 144 968 579
Rental from Fixed Assets 30 2 258 569 1 720 569
Interest Earned - External Investments 31 1 778 151 1 357 398
Interest Earned - Exchange Transactions 32 8 322 000 6 559 589
Agency Services 244 284 1 075 499
Operational Revenue 33 262 475 314 279
Total Revenue 283 486 504 255 216 247
EXPENDITURE
Employee related costs 34 (85 976 830) (80 635 973)
Remuneration of Councillors 35 (5 985 148) (5 791 509)
Depreciation and Amortisation 36 (43 083 975) (41 525 355)
Finance Costs 37 (14 952 280) (12 475 276)
Bulk Purchases 38 (106 545 716) (96 374 175)
Inventory Consumed 8 (10 208 982) (7 692 408)
Operational Costs 39 (36 925 191) (50 791 833)
Total Expenditure (303 678 120) (295 286 529)
Operating Surplus/(Deficit) for the Year (20 191 617) (40 070 282)
Inventories: (Write-down)/Reversal of Write-down to Net Realisable
Value 8 (388 183) (20 910)
Reversal of Impairment Loss/(Impairment Loss) on Receivables 40 (39 066 593) (4 337 493)
Gains/(Loss) on Disposal of Fixed Assets 41 (13 361) (1 019)
Reversal of Impairment Loss/(Impairment Loss) on Fixed Assets 42 - -
Water Losses 43 - -
NET SURPLUS/(DEFICIT) FOR THE YEAR (59 659 754) (44 429 703)
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NAMA KHOI MUNICIPALITY
STATEMENT OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED 30 JUNE 2019
Capital Accumulated
Replacement Surplus/
Reserve (Deficit) Total
R R R
Balance at 1 July 2017 144 993 579 852 371 579 997 365
Correction of Error - Note 46.10 - 672 171 672 171
Restated balance 144 993 580 524 542 580 669 535
Net Surplus/(Deficit) for the year - (44 429 703) (44 429 703)
Net Surplus/(Deficit) previously reported - (51 088 428) (51 088 428)
Effects of Correction of Errors - Note 46.11 - 6 658 725 6 658 725
Transfer to/from CRR (144 993) 144 993 -
Restated balance - 536 239 832 536 239 832
Net Surplus/(Deficit) for the year - (59 659 754) (59 659 754)
Balance at 30 June 2019 - 476 580 078 476 580 078
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