In–Year Report of MunicipalitiesPrepared in terms of the Local Government Municipal FinanceManagement Act (56/2003) Municipal Budget and ReportingRegulations, Government Gazette 32141, 17 April 2009

Monthly BudgetStatement 31 July 2018

Table of ContentsPART 1: IN-YEAR REPORT

Section 1 – Purpose of ReportSection 2 - BackgroundSection 3 - In-year budget statement tables

PART 2: SUPPORTING DOCUMENTATION

AMAJUBA DM C SCHEDULE MONTHLY BUDGET STATEMENT General Information and Contact Information

Main Tables Monthly Budget Statements

Table C1-SUM Summary

Table C2-FinPer SC Financial Performance (standard classification)

Table C2C Financial Performance (standard classification)

Table C3-Fin Per V Financial Performance (revenue and expenditure by municipal vote)

Table C3C Financial Performance (revenue and expenditure by municipal vote) - A

Table C4-FinPer RE Financial Performance (revenue and expenditure)

Table C5-Capex Capital Expenditure (municipal vote, standard classification and funding)

Table C5C Capital Expenditure (municipal vote, standard classification and funding) - A

Table C6-FinPos Financial Position

Table C7-Cflow Cash Flow

Supporting Tables

Table SC1 Material variance explanations

Table SC2 Monthly Budget Statement - Performance indicators

Table SC3 Monthly Budget Statement - Aged debtors

Table SC4 Monthly Budget Statement - aged creditors

Table SC5 Monthly Budget Statement - Investment portfolio

Table SC6 Monthly Budget Statement - Transfers and grant receipts

Table SC7 Monthly Budget Statement - Transfers and grant expenditure

Table SC8 Monthly Budget Statement - Councillor and staff benefits

Table SC9 Monthly Budget Statement - Actual and revised targets for cash receipts

Table SC12 Monthly Budget Statement - Capital expenditure trend

Table SC13c Monthly Budget Statement - Expenditure on repairs and maintenance by asset class

TO: THE MAYOR THE MUNICIPAL MANAGER

FINANCIAL SERVICES DEPARTMENT:MUNICIPAL FINANCE MANAGEMENT ACT (MFMA): MONTHLY FINANCIAL REPORT FOR 31 JULY 2018 (MONTHLY BUDGET STATEMENT)

1. PURPOSE

To comply with section 71 of the MFMA, by the provision of a monthly budget statement to the Mayor containing certain financial particulars, as legislated.

2. BACKGROUNDSection 71 of the MFMA requires that:

The accounting officer of a municipality must by no later than 10 working days after the end of each month submit to the mayor of the municipality, and the relevant National and Provincial Treasury, a statement in the prescribed format on the state of the municipality's budget reflecting certain particulars for that month and for the financial year up to the end of that month.

For the reporting period ending 31 July 2018, the tenth working day reporting limit expired on 14 August 2018.

The Kwa-Zulu Natal Provincial Treasury monitors the municipality’s performance and compliance to reporting requirements. For this purpose, the required electronic reports have been lodged with the Provincial Treasury as well as the National Treasury.

ANNEXURES:

A. Statement of Financial PerformanceB. Capital expenditure reportC. Capital expenditure analysis and chartsD. Cash Flow StatementE. Outstanding Creditors ReportF. Key performance indicatorsG. Investment Portfolio

H. Debtors AnalysisI. Supply Chain ManagementJ. Grant and Subsidies ReceiptsK/L. Conditional Grants –Roll-Over Conditional Grants

3. 31 JULY 2018 REPORT This report is based upon financial information available at the time of preparation. The financial results for the period ended 31 July 2018 are summarised as follows:

Annexure A /J: Statement of Financial Performance (SFP)

The SFP shown in Annexure A and Annexure J is prepared on a similar basis to the prescribed budget format, detailing revenue by source type and expenditure by input type. The summary report indicates the following:

Summary Statement of Financial PerformanceDescription July YTD

BudgetJuly YTD

ActualVariance

Fav/(Unfav)

Total Revenue by Source 15 828 64 258

48 430

Total Operating Expenditure 18 622 13 391 5 231

Surplus / (Deficit) 2 794 50 867 53 661

SUMMARY TOTAL OPERATING REVENUE

2018/ 2019 2018/ 2019 2018/ 2019 2018/ 2019

Original Budget MTH ACTUAL YTD ACTUAL

Balance Available

REVENUE PER SOURCEWater Sales 23 225 251 1 502 219 1 502 219 21 723 032 Sanitation Sales 5 240 436 315 329 315 329 4 925 107 Interest on Overdue Account 4 083 654 459 424 459 424 3 624 230 Interest on Debtors:Sewerage - - - - Sundry Income-Debtors; - - - - CONNECTION FEE; - - - - Interest Earned-Ext Invest 4 551 860 18 910 18 910 4 532 950 Equitable Share-FBS Portion 148 705 000 61 960 000 61 960 000 86 745 000 Finance Management Grant; 1 570 000 - - 1 570 000 MSIG Grant; - - - - Infrastructure-Intergrated Development - - Disaster Management Grant; - - ROAD ASSET MANAGEMENT SYSTEM - - - - Operating Grants -PPE-MIG; - - - - EPWP -Publicworks Grant; 1 620 000 - - 1 620 000 Operating Grants-PPE -MWIG; - - Implementation of IGR Framework and Best Practices - - - - Tele/Cellphone Cost Recovered 5 000 - - 5 000 Rental Income - - - - Tender Deposits 100 000 - - 100 000 Sundry Income 2 000 728 728 1 272 Rental facilities-Hall Hire 250 000 1 800 1 800 248 200 Skills Development Grant ; 180 000 - - 180 000 Shared Services Grant -DPSS 400 000 - - 400 000 CAPACITATING NEW COUNCILLORS - - Reclaimed Vat from Conditional grants and Operating Expenditure- - - - Atmospheric Emmission LicencE - - - - Enviromental Management - - - - Penalty Late completion of Projects - - - - Donations - - - - Gain on Disposal of Asset - -

TOTAL DIRECT OPERATING INCOME 189 933 202 64 258 410 64 258 410 125 674 792

Description

CURRENT YEAR

1 Revenue Management

For the period under review, revenue is recorded at R64 258 410 which is R48 430 643 more than the expected revenue of R 15 827 769.

The revenue of R64 258 410 included the following:

Billed Revenue including interest charged on outstanding balances – R2 276 972.

Interest earned on short-term investments R18 910; Equitable Share received – R61 960 000,

Billed Revenue

Interest Earned-Ext Invest

Equitable Share-FBS Portion

Other Revenue

Revenue By Source

Billed RevenueInterest Earned-Ext InvestEquitable Share-FBS PortionOther Revenue

SUMMARY OF TOTAL OPERATING EXPENDITURE

2018/ 2019 2018/ 2019 2018/ 2019 2018/ 2019

Original Budget MTH ACTUAL YTD ACTUAL

Balance Available

EXPENDITURE PER CATERGORYSalaries , Wages & Allowances 86 824 590 6 493 124 6 493 124 80 331 466 Renumeration of Councillors 5 685 460 412 226 412 226 5 273 234 Depreciation 33 178 215 2 764 851 2 764 851 30 413 364 Repairs & Maintenance 11 287 533 39 429 39 429 11 248 104 Bulk Water Purchases 17 263 000 - - 17 263 000 Contracted Services 17 013 968 38 930 38 930 16 975 038 Operating Grants Expenditure - - General Costs-Other 36 829 920 2 876 362 2 876 362 33 953 558

- TOTAL DIRECT OPERATING EXPENDITURE 208 082 686 12 624 922 12 624 922 195 457 764

Contributions to capital 348 000 - - 348 000 Contributions to funds 14 265 065 350 387 350 387 13 914 678 Interest -External Loans 764 000 415 565 415 565 348 435

- TOTAL OPERATING EXPENDITURE 223 459 751 13 390 874 13 390 874 210 068 877

Capital Transfers 126 858 000 - - 126 858 000 Own Revenue-Capital 348 000 9 884 9 884 338 116 Loan Funding - - Capital Expenditure (127 206 000) (9 884) (9 884) (127 196 116)

- Surplus/ (Deficit) (33 526 550) 50 867 536 50 867 536 (84 394 086)

Description

CURRENT YEAR

2 Expenditure Management

Salaries

An amount of R 86 824 590 has been budgeted for. An amount of R 6 493 124 been recognised to date. Salaries are the major cost drivers.

Contracted Services

An amount of R 17 013 968 has been budgeted for. An amount of R38 930 has been recognised to date. Security Services and Water Tanker Services are the major contributors on contracted services.

The Breakdown of General Cost – Other:

MTH Actual YTD Actual Entertainment -R -R

Subsistence and Travelling 103 193,00R 103 193,00R

Conference and Seminars 2 000,00R 2 000,00R

Annual Report 458,00R 458,00R

Professional Fees 1 059 178,00R 1 059 178,00R

Printing and Stationary 445,00R 445,00R

Postage 41 885,00R 41 885,00R

Software License 24 545,00R 24 545,00R

Bank Charges 8 478,00R 8 478,00R

Insurance 894 035,00R 894 035,00R

FMG Expenditure 11 500,00R 11 500,00R

Rental Office Equipment 30 315,00R 30 315,00R

Telephone 25 739,00R 25 739,00R

Membership SALGA 2 686,00R 2 686,00R

Fuel & Oil 190 835,00R 190 835,00R

Skills Development 59 495,00R 59 495,00R

Electricity 272 043,00R 272 043,00R

Pest Control 40 344,00R 40 344,00R

Sport and Recreation 1 708,00R 1 708,00R

EPWP Expenditure 22 220,00R 22 220,00R

Budget and IDP Roadshow 378,00R 378,00R

Workmans Compensation 73 168,00R 73 168,00R

Job Evaluation 11 714,00R 11 714,00R

Total General Cost - Other 2 876 362,00R 2 876 362,00R

The Breakdown of Postage Expenditure:

Vote Department Description Amount0050/3631/0000 Budget and

Treasury Office

Meter Reading R41 885,48

TOTAL AMOUNT R41 885,48

The Breakdown of Printing & Stationary Expenditure:

Vote Department Description Amount0050/3630/0000 Corporate

ServicesPETTY CASH R43,48

0050/3630/0000 Corporate Services

PETTY CASH R222,61

0080/3630/0000 Budget and Treasury Office

PETTY CASH R55,62

0080/3630/0000 Budget and Treasury Office

PETTY CASH R123,21

TOTAL AMOUNT R444,92

Annexure B/L : Capital expenditure report

The Capital expenditure report shown in Annexure B and Annexure L has been prepared on the basis of the format required to be lodged electronically with National Treasury, and is categorised into major output ‘types’. The summary report indicates the following:

Summary Statement of Capital ExpenditureDescription July YTD

Budget R’000

July YTD Actual R’000

Variance Fav/(Unfav)

R’000

Total Capital Expenditure 10 601 10 10 591Total Capital Financing (10 601) 10 (10 591)

Annexure C is an analysis of actual capital expenditure compared to the budget targets, on a monthly and year-to-date basis. Annexure C indicates that total expenditure for the period ending 31 July 2018.

2017/18

Audited Outcome

Original Budget

Adjusted Budget

Monthly actual

YearTD actual

YearTD budget

YTD variance

YTD variance

% spend of Original Budget

R thousands %Monthly expenditure performance trend

July 7 596 10 601 10 10 10 601 10 591 99,9% 0%

August 7 596 10 601 – 21 201 –

September 7 596 10 601 – 31 802 –

October 7 596 10 601 – 42 402 –

Nov ember 7 596 10 601 – 53 003 –

December 7 596 10 601 – 63 603 –

January 7 596 10 601 – 74 204 –

February 7 596 10 601 – 84 804 –

March 7 596 10 601 – 95 405 –

April 7 596 10 601 – 106 005 –

May 7 596 10 601 – 116 606 –

June 7 596 10 601 – 127 206 –

Total Capital expenditure 91 150 127 206 – 10

Month

DC25 Amajuba - Supporting Table SC12 Monthly Budget Statement - capital expenditure trend - M01 JulyBudget Year 2018/19

Annexure C also includes charts that illustrate capital expenditure trends

Jul

Aug Sep Oct Nov Dec Jan

Feb Mar AprMay Ju

n –

2000 000

4000 000

6000 000

8000 000

10000 000

12000 000

R'0

00

Chart C1 2018/19 Capital Expenditure Monthly Trend: actual v target

Annexure D : Cash Flow Statement (CFS)

The CFS report for 31 July 2018 indicates a closing balance (cash and cash equivalents) of R97 986161.31 which comprise of the following:

Bank balance and cash = R 52 082 324.76 Investment Balance= R 45 900 836.55 Petty Cash= R 3 000.00 Cash Available = R 97 986 161.31

As at the end of 31 July 2018 the Municipality has R97 986 161.31 cash available.

The Cash Coverage Ratio is 2 month and 24 days against the norm is 1 to 3 months.

Cash Coverage Ratio

((Cash and Cash Equivalents - Unspent Conditional Grants - Overdraft) + Short Term Investment) / Monthly Fixed Operational Expenditure excluding (Depreciation, Amortisation, Provision for Bad Debts, Impairment and Loss on Disposal of Assets)

Statement of Financial Position, Statement of Financial Performance, Notes to the AFS, Budget, In year Reports and AR

1 - 3 Months

2 Month and 24 Days

Cash and cash equivalents 52 082 324.76Unspent Conditional Grants 56 744 131

Overdraft - Short Term Investments 45 900 836.55

Total Monthly Operational Expenditure 14 668 039

Please note that this Cost Coverage Ratio is based on MFMA Circular No 71, who formulated this model based on the fact that creditors are paid within 30 days.

The below Cash Coverage Ratio does take into account unspent conditional grants and other outstanding creditors.

Cash Coverage Ratio

((Cash and Cash Equivalents - Unspent Conditional Grants - Overdraft) + Short Term Investment) / Monthly Fixed Operational Expenditure excluding (Depreciation, Amortisation, Provision for Bad Debts, Impairment and Loss on Disposal of Assets)

Statement of Financial Position, Statement of Financial Performance, Notes to the AFS, Budget, In year Reports and AR

1 - 3 Months

48 Days

Cash and cash equivalents 52 082 324.76Unspent Conditional Grants

56 744 131

Other Outstanding Creditors

34 207 714.21

OverdraftShort Term Investments 45 900 836.55Total Monthly Operational Expenditure

14 668 039

The Cash Coverage Ratio is 48 Days the norm is 1 to 3 months, indicating that the municipality is not financial viable and it will continue to exist for 48 days if it does not receive revenue.

Annexure E : Outstanding Creditors report

The Creditors report has been prepared on the basis of the format required to be lodged electronically with National Treasury. This format provides an extended aged analysis, as well as an aged analysis by creditor type.

Annexure F : Key performance indicators

The table reflects key ratios which are monitored by National Treasury. These ratios will also assist us in monitoring and managing our performance as a municipality.

Annexure G : Investment Portfolio

The table and chart indicate the status of the investment portfolio and detail of instruments of where invested, which amounts to R52 106 805.10 as at 31 July 2018.

Annexure H : Supply Chain Management

The SCM Policy as adopted by Council, in line with the promulgated SCM Regulations, requires the Accounting Officer to report to Council on the implementation of the policy. This report details the procurement activities for the month

Annexure L : Disclosure on Councillors Allowances and Staff Salaries & Allowances

Monitor and ensure that the municipal entity reports to the council on all expenditure incurred by that municipal entity on directors and staff remuneration matters. In a manner that discloses such expenditure per type of expenditure namely:1. Salaries and wages;2. contributions for pensions and medical aid;3. Travel, motor car, accommodation. subsistence and other allowances:4. housing benefits and allowances;5. overtime payments;6. loans and advances; and7. any other type of benefit or allowance related to directors and

4. KEY PRELIMINARY RFORMANCE (FINANCIAL) INDICATORS

The favourable result relating to the various source groups totalling revenue is due to the controlled spending on operational expenditure. Spending on operational expenses is closely monitored and controlled.

5. FINANCIAL IMPLICATIONS

This report indicates various financial risks which require monitoring:

Cash flow problems faced by the municipality; Achievement of the operating revenue budget; Collection of the revenue raised / billed; and Achievement of the capital expenditure budget. Challenges with the EMS/mSCOA System not running live as at the 1st July 2017

As at the end of 31 July 2018 the operating revenue and expenditure ‘actuals’ represented approximately 33.8% and 6% respectively of the annual budget.

6. ENTERPRISE MANAGEMENT SYSTEM (EMS)/mSCOA CHALLENGES.

The following expenditure challenges are highlighted Challenges with the EMS/mSCOA System not running live as at the 1 July 2017; Municipality is dependent on the service provider(Sebata) for generation of data

strings for monthly reporting submission to National Treasury; Municipality is currently still using a non-compliant mSCOA system for capturing

of transactions and generating reports; Monthly Returns submission to National Treasury are manually done by officials

due to the non-functionality of the mSCOA Sebata EMS System.

7. LEGAL IMPLICATIONS

The accounting officer of a municipality must by no later than 10 working days after the end of each month submit to the mayor of the municipality, and the relevant National and Provincial treasury, a statement in the prescribed format on the state of the municipality's budget reflecting certain particulars for that month and for the financial year up to the end of that month.

8. STAFF IMPLICATIONS

Not applicable.

9. CONCLUSION

This report is in compliance of Section 71 of the MFMA, by providing a statement to the Mayor containing certain financial particulars, as legislated.

RECOMMENDED

That, in compliance with Section 71 of the MFMA:

(1) The Accounting Officer submits to the Mayor this statement reflecting certain particulars for the month ending 31 July 2018;and

(2) In order to comply with Section 71(4) of the MFMA, the Accounting Officer ensure that this statement be submitted to National Treasury and the Provincial Treasury, in both a signed document format and in electronic format.

Annexure A

2017/18Audited

OutcomeOriginal 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 – – – – – #REF! #REF!Serv ice charges - w ater rev enue 19 500 23 225 – 1 502 1 502 1 935 (433) -22% 23 225 Serv ice charges - sanitation rev enue 3 500 5 240 – 315 315 437 (121) -28% 5 240 Serv ice charges - refuse rev enue – – Serv ice charges - other – – – – – – – – Rental of facilities and equipment 240 250 – – – 21 (21) -100% 250 Interest earned - ex ternal inv estments 3 624 4 552 – 19 19 379 (360) -95% 4 552 Interest earned - outstanding debtors 2 900 4 084 – 459 459 340 119 35% 4 084 Div idends receiv ed – – Fines, penalties and forfeits – – Licences and permits – – Agency serv ices – – Transfers and subsidies 134 948 152 295 – 61 960 61 960 12 691 49 269 388% 152 295 Other rev enue 360 287 – 3 3 24 (21) -89% 287 Gains on disposal of PPE 2 210 – –

Total Revenue (excluding capital transfers and contributions)

167 281 189 933 – 64 258 64 258 15 828 48 431 306% 189 933

Expenditure By TypeEmploy ee related costs 82 283 86 825 6 493 6 493 7 235 (742) -10% 86 825

Remuneration of councillors 5 174 5 685 412 412 474 (62) -13% 5 685

Debt impairment 5 820 13 000 – – 1 083 (1 083) -100% 13 000

Depreciation & asset impairment 25 398 33 178 2 765 2 765 2 765 (0) 0% 33 178

Finance charges 764 764 416 416 64 352 553% 764

Bulk purchases 20 000 17 263 – – 1 439 (1 439) -100% 17 263

Other materials –

Contracted serv ices 13 363 17 014 39 39 1 418 (1 379) -97% 17 014

Transfers and subsidies – – – –

Other ex penditure 30 713 49 731 3 266 3 266 4 144 (878) -21% 49 731

Loss on disposal of PPE – – –

Total Expenditure 183 515 223 460 – 13 391 13 391 18 622 (5 231) -28% 223 460

Surplus/(Deficit) (16 234) (33 527) – 50 868 50 868 (2 794) 53 661 (0) (33 527) Transfers and subsidies - capital (monetary allocations)

(National / Prov incial and District) – – – Transfers and subsidies - capital (monetary allocations)

(National / Prov incial Departmental Agencies,

Households, Non-profit Institutions, Priv ate Enterprises,

Public Corporatons, Higher Educational Institutions) – – –

Transfers and subsidies - capital (in-kind - all) – – –

Surplus/(Deficit) after capital transfers & contributions

(16 234) (33 527) – 50 868 50 868 (2 794) (33 527)

Tax ation –

Surplus/(Deficit) after taxation (16 234) (33 527) – 50 868 50 868 (2 794) (33 527) Attributable to minorities

Surplus/(Deficit) attributable to municipality (16 234) (33 527) – 50 868 50 868 (2 794) (33 527) Share of surplus/ (deficit) of associate

Surplus/ (Deficit) for the year (16 234) (33 527) – 50 868 50 868 (2 794) (33 527)

Description RefBudget Year 2018/19

DC25 Amajuba - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - M01 July

Annexure B

C25 Amajuba - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, functional classification and funding) – M01 July

2016/17 Budget Year 2017/18Audited

OutcomeOriginal Budget

Adjusted Budget

Monthly actual

YearTD actual

YearTD budget

YTD variance

YTD variance

Full Year Forecast

R thousands 1 %

Vote Description Ref

Capital Expenditure - Functional Classification

Governance and administration – 348 – 10 10 29 (19) -66% 348 Executive and council – – –

Finance and administration 348 10 10 29 (19) -66% 348

Internal audit – –

Community and public safety – – – – – – – – Community and social services –

Sport and recreation –

Public safety – –

Housing –

Health –

Economic and environmental services – – – – – – – – Planning and development –

Road transport –

Environmental protection –

Trading services – 126 858 – – – 10 572 (10 572) -100% 126 858 Energy sources –

Water management 126 858 – – 10 572 (10 572) -100% 126 858

Waste water management –

Waste management –

Other –

Total Capital Expenditure - Functional Classification 3 – 127 206 – 10 10 10 601 (10 591) -100% 127 206

Funded by:

National Government 126 858 – – 10 572 (10 572) -100% 126 858

Provincial Government –

District Municipality –

Other transfers and grants –

Transfers recognised - capital – 126 858 – – – 10 572 (10 572) -100% 126 858 Public contributions & donations 5 –

Borrowing 6 –

Internally generated funds 348 10 10 29 (19) -66% 348

Total Capital Funding – 127 206 – 10 10 10 601 (10 591) -100% 127 206

Annexure CCapital expenditure

DC25 Amajuba - Supporting Table SC12 Monthly Budget Statement - capital expenditure trend - M01 July

Month

2017/18 Budget Year 2018/19

Audited Outcome

Original Budget

Adjusted Budget

Monthly actual

YearTD actual

YearTD budget

YTD variance

YTD variance

% spend of Original

Budget

R thousands %

Monthly expenditure performance trend

July 7 596 10 601 10 10 10 601 10 591 99,9% 0%

August 7 596 10 601 – 21 201 –

September 7 596 10 601 – 31 802 –

October 7 596 10 601 – 42 402 –

November 7 596 10 601 – 53 003 –

December 7 596 10 601 – 63 603 –

January 7 596 10 601 – 74 204 –

February 7 596 10 601 – 84 804 –

March 7 596 10 601 – 95 405 –

April 7 596 10 601 – 106 005 –

May 7 596 10 601 – 116 606 –

June 7 596 10 601 – 127 206 –

Total Capital expenditure 91 150 127 206 – 10

Annexure D2017/18 Budget Year 2018/19Audited

OutcomeOriginal Budget

Adjusted Budget

Monthly actual

YearTD actual

YearTD budget

YTD variance

YTD variance

Full Year Forecast

R thousands 1 %CASH FLOW FROM OPERATING ACTIVITIESReceipts

Property rates – – –

Serv ice charges 15 079 17 079 2 660 2 661 17 079 (14 418) -84% 17 079

Other rev enue 11 458 537 1 431 1 431 537 894 166% 537

Gov ernment - operating 134 948 152 295 61 960 61 960 152 295 (90 335) -59% 152 295

Gov ernment - capital 91 041 126 858 22 000 22 000 126 858 (104 858) -83% 126 858

Interest 6 524 7 002 88 88 7 002 (6 914) -99% 7 002

Div idends – – – – –

PaymentsSuppliers and employ ees (182 216) (222 696) (43 461) (43 461) (222 696) (179 235) 80% (222 696)

Finance charges (764) (764) (764) (764) (764) 0 0% (764)

Transfers and Grants – – – –

NET CASH FROM/(USED) OPERATING ACTIVITIES 76 070 80 312 – 43 913 43 914 80 312 36 398 45% 80 312

CASH FLOWS FROM INVESTING ACTIVITIESReceipts

Proceeds on disposal of PPE –

Decrease (Increase) in non-current debtors –

Decrease (increase) other non-current receiv ables –

Decrease (increase) in non-current inv estments –

PaymentsCapital assets (91 150) (127 206) (10) (10) (127 206) (127 196) 100% (127 206)

NET CASH FROM/(USED) INVESTING ACTIVITIES (91 150) (127 206) – (10) (10) (127 206) (127 196) 100% (127 206)

CASH FLOWS FROM FINANCING ACTIVITIESReceipts

Short term loans –

Borrow ing long term/refinancing –

Increase (decrease) in consumer deposits –

PaymentsRepay ment of borrow ing –

NET CASH FROM/(USED) FINANCING ACTIVITIES – – – – – – – –

NET INCREASE/ (DECREASE) IN CASH HELD (15 080) (46 894) – 43 903 43 904 (46 894) (46 894) Cash/cash equiv alents at beginning: 17 990 21 009 54 079 21 009 54 079

Cash/cash equiv alents at month/y ear end: 2 909 (25 886) – 97 983 (25 886) 7 185

Description Ref

DC25 Amajuba - Table C7 Monthly Budget Statement - Cash Flow - M01 July

Annexure E

Budget Year 2018/19

R thousandsCreditors Age Analysis By Customer Type

Bulk Electricity 0100 – Bulk Water 0200 – – – – – – – 18 995 18 995 PAYE deductions 0300 1 223 1 223 VAT (output less input) 0400 – Pensions / Retirement deductions 0500 – Loan repay ments 0600 – Trade Creditors 0700 78 3 018 2 856 455 1 508 4 067 – 2 008 13 990 Auditor General 0800 – – Other 0900 –

Total By Customer Type 1000 1 301 3 018 2 856 455 1 508 4 067 – 21 004 34 208 –

Prior y ear

totals for chart

(same period)

DC25 Amajuba - Supporting Table SC4 Monthly Budget Statement - aged creditors - M01 July

181 Days -1 Year

Over 1Year

Total61 - 90 Days

91 - 120 Days

121 - 150 Days

151 - 180 Days

Description NT Code

0 - 30 Days

31 - 60 Days

Top Ten Creditors AMOUNT

2 450 002,00R 1 222 734,31R 3 632 700,55R 2 788 641,00R 2 687 468,09R

18 995 160,31R 654 816,62R 411 408,38R 405 191,00R 312 741,65R

SENZUMUSA PROJECTS (PTY) LTD

CREDITORS NAMEM-CHARLIE TRADING ENTERPRISESOUTHERN AFRICAN REVENUE SERVICES

NDIMBAS TRANSPORTATIONEMADLANGENI MUNICIPALITYUTHUKELA WATER (PTY) LTD- LONG TERMINSTITUTE OF NATURAL RESOURCESAB PROJECTS CCFIRST TECHNOLOGY (PTY) LTDKANTECH

Annexure F

Investments by maturityName of institution & investment ID

Period of Investment

R thousands Yrs/MonthsMunicipalityABSA BANK Months FIXED – –

FIRST NATIONAL BANK Months FIXED – –

INVESTEC Months FIXED 24 308 19 767

STANSARD BANK Months FIXED 27 798 25 829

NEDBANK –

Municipality sub-total – 52 107 – 45 596

DC25 Amajuba - Supporting Table SC5 Monthly Budget Statement - investment portfolio - M01 July

Ref

Type of Investment

Expiry date of

investment

Market value at end

of the month

Accrued interest for the month

Yield for the month 1

(%)

Market value at

beginning of the month

Change in market value

Annexure G2017/18 Budget Year 2018/19Audited

OutcomeOriginal Budget

Adjusted Budget

YearTD actual

Full Year Forecast

Borrowing Management

Capital Charges to Operating Ex penditure Interest & principal paid/Operating Ex penditure 0,4% 15,2% 0,0% 3,1% 2,9%

Borrow ed funding of 'ow n' capital ex penditure Borrow ings/Capital ex penditure ex cl. transfers and

grants

0,0% 0,0% 0,0% 0,0% 0,0%

Safety of CapitalDebt to Equity Loans, Accounts Pay able, Ov erdraft & Tax

Prov ision/ Funds & Reserv es

5,0% 0,0% 0,0% 5,6% 5,0%

Gearing Long Term Borrow ing/ Funds & Reserv es 0,0% 0,0% 0,0% 0,0% 0,0%

LiquidityCurrent Ratio Current assets/current liabilities 1 187,6% 0,0% 0,0% 236,0% 187,6%

Liquidity Ratio Monetary Assets/Current Liabilities 39,2% 0,0% 0,0% 159,7% 39,2%

Revenue ManagementAnnual Debtors Collection Rate

(Pay ment Lev el %)

Last 12 Mths Receipts/ Last 12 Mths Billing

Outstanding Debtors to Rev enue Total Outstanding Debtors to Annual Rev enue 32,1% 28,2% 0,0% 71,0% 28,2%

Longstanding Debtors Recov ered Debtors > 12 Mths Recov ered/Total Debtors >

12 Months Old

0,0% 0,0% 0,0% 0,0% 0,0%

Creditors ManagementCreditors Sy stem Efficiency % of Creditors Paid Within Terms (w ithin MFMA s

65(e))

Funding of ProvisionsPercentage Of Prov isions Not Funded Unfunded Prov isions/Total Prov isions

Other IndicatorsElectricity Distribution Losses % Volume (units purchased and generated less

units sold)/units purchased and generated

2

Water Distribution Losses % Volume (units purchased and ow n source less

units sold)/Total units purchased and ow n source

2

Employ ee costs Employ ee costs/Total Rev enue - capital rev enue 49,2% 45,7% 0,0% 10,1% 45,7%

Repairs & Maintenance R&M/Total Rev enue - capital rev enue 0,0% 0,0% 0,0% 0,0% 0,0%

Interest & Depreciation I&D/Total Rev enue - capital rev enue 15,6% 17,9% 0,0% 0,6% 3,4%

IDP regulation financial viability indicatorsi. Debt cov erage (Total Operating Rev enue - Operating Grants)/Debt

serv ice pay ments due w ithin financial y ear)

ii. O/S Serv ice Debtors to Rev enue Total outstanding serv ice debtors/annual rev enue

receiv ed for serv ices

iii. Cost cov erage (Av ailable cash + Inv estments)/monthly fix ed

operational ex penditure

Description of financial indicator Basis of calculation Ref

DC25 Amajuba - Supporting Table SC2 Monthly Budget Statement - performance indicators - M01 July

Annexure HDescription

R thousands

NT Code

0-30 Days 31-60 Days 61-90 Days 91-120 Days 121-150 Dys 151-180 Dys 181 Dys-1 Yr Over 1Yr TotalTotal over 90 days

Actual Bad Debts Written Off against Debtors

Impairment - Bad Debts i.t.o Council Policy

Debtors Age Analysis By Income SourceTrade and Other Receiv ables from Ex change Transactions - Water 1200 2 214 2 587 2 053 1 503 1 303 1 313 6 800 26 348 44 121 37 267

Trade and Other Receiv ables from Ex change Transactions - Electricity 1300 – – – – – – – – – –

Receiv ables from Non-ex change Transactions - Property Rates 1400 – – – – – – – – – –

Receiv ables from Ex change Transactions - Waste Water Management 1500 491 833 665 543 518 471 2 465 8 760 14 746 12 757

Receiv ables from Ex change Transactions - Waste Management 1600 – – – – – – – – – –

Receiv ables from Ex change Transactions - Property Rental Debtors 1700 – – – – – – – – – –

Interest on Arrear Debtor Accounts 1810 – – – – – – – – – –

Recov erable unauthorised, irregular, fruitless and w asteful ex penditure 1820 – – – – – – – – – –

Other 1900 17 17 17 17 17 17 105 1 816 2 024 1 973

Total By Income Source 2000 2 722 3 437 2 736 2 063 1 838 1 802 9 370 36 924 60 891 51 997 – – 2017/18 - totals only – – Debtors Age Analysis By Customer Group

Organs of State 2200 1 180 313 183 175 94 103 478 1 785 4 311 2 635

Commercial 2300 116 242 311 146 70 71 369 1 167 2 492 1 823

Households 2400 1 425 2 882 2 242 1 741 1 674 1 628 8 522 33 959 54 073 47 524

Other 2500 1 0 0 0 0 0 1 13 16 14

Total By Customer Group 2600 2 722 3 437 2 736 2 063 1 838 1 802 9 370 36 924 60 891 51 997 – –

DC25 Amajuba - Supporting Table SC3 Monthly Budget Statement - aged debtors - M01 JulyBudget Year 2018/19

2017/18 Budget Year 2018/19Audited

OutcomeOriginal Budget

Adjusted Budget

Monthly actual

YearTD actual

YearTD budget

YTD variance

YTD variance

Full Year Forecast

R thousands %1 A B C D

Councillors (Political Office Bearers plus Other)Basic Salaries and Wages 5 174 5 685 412 412 474 (62) -13% 5 685

Pension and UIF Contributions –

Medical Aid Contributions –

Motor Vehicle Allow ance –

Cellphone Allow ance – –

Housing Allow ances –

Other benefits and allow ances –

Sub Total - Councillors 5 174 5 685 – 412 412 474 (62) -13% 5 685 % increase 4 9,9% 9,9%

Senior Managers of the Municipality 3

Basic Salaries and Wages 7 076 5 146 225 225 429 (203) -47% 5 146

Pension and UIF Contributions – – – – –

Medical Aid Contributions – – – – –

Ov ertime – – – – –

Performance Bonus 991 – – – –

Motor Vehicle Allow ance – – – – –

Cellphone Allow ance 108 108 5 5 9 (5) -50% 108

Housing Allow ances – – –

Other benefits and allow ances – – –

Pay ments in lieu of leav e – – –

Long serv ice aw ards – – –

Post-retirement benefit obligations 2 – – –

Sub Total - Senior Managers of Municipality 8 175 5 254 – 230 230 438 (208) -47% 5 254 % increase 4 -35,7% -35,7%

Other Municipal StaffBasic Salaries and Wages 47 639 51 936 4 205 4 205 4 328 #REF! #REF! 51 936

Pension and UIF Contributions 6 618 7 154 551 551 596 #REF! #REF! 7 154

Medical Aid Contributions 3 191 3 890 311 311 324 #REF! #REF! 3 890

Ov ertime 4 114 6 408 458 458 534 #REF! #REF! 6 408

Performance Bonus 3 963 4 309 – – 359 #REF! #REF! 4 309

Motor Vehicle Allow ance 5 085 5 184 406 406 432 #REF! #REF! 5 184

Cellphone Allow ance 585 551 46 #REF! #REF! 551

Housing Allow ances 490 582 29 29 48 #REF! #REF! 582

Other benefits and allow ances 2 439 1 556 302 302 130 #REF! #REF! 1 556

Pay ments in lieu of leav e – – – #REF! #REF! –

Long serv ice aw ards –

Post-retirement benefit obligations 2 –

Sub Total - Other Municipal Staff 74 125 81 571 – 6 263 6 263 6 798 (534) -8% 81 571 % increase 4 10,0% 10,0%

Total Parent Municipality 87 473 92 510 – 6 905 6 905 7 709 (804) -10% 92 510

Summary of Employee and Councillor remuneration Ref

DC25 Amajuba - Supporting Table SC8 Monthly Budget Statement - councillor and staff benefits - M01 July

Annexure LInvestment Portfolio 31 July 2018

INSTITUTION Bank Acc No ACCRUED BALANCE

STD 068448309-015 1 508,25 INVESTEC 1100-501686510 - STD 068448309-017 2 269 598,86 STD-water operating Subsidy grant068448309-002 68 844,27 INVESTEC-Equitable share 1100-501-686-500 472 039,85 INVESTEC(SSIG)- 1100-501-686-501 625 883,57 STD-SSIG2 068448309-009 61 938,76 STD 068448309-013 14 392 251,97 INVESTEC 1100-501686513 18 201 615,84 INVESTEC 1100-501-686-507 34 966,60 INVESTEC 1100-501686512 0,00 STD EPWP1 068448309-008 - STD 068448309-011 465 942,35 STD-FMG 068448309-007 189,58 STD 068448309-014 1 169 509,90 INVESTEC-Rural Road 1100-501-686-503 84 137,81 STD 068448309-012 51 247,53 INVESTEC 1100-501686511 272 057,53 INVESTEC 1100-501686508 - STD-Disaster Centre Management068448309-003 2 459 904,18 STD-Environment Grant 068448309-004 406 158,06 STD-Human Settlement 068448309-005 1 019,77 STD-Internal Operation 068448309-006 361 886,71 INVESTEC(MIG) 1100-501-686-502 - INVESTEC MIG 1100-501-686-505 70 700,65 INVESTEC 1100-501-686-506 5 797,44 STD 068448309-016 4 119 231,74 STD-EPWP2 068448309-010 - INVESTEC 1100-501686515 -

068448309-018 304 405,33 TOTAL - 45 900 836,55

END OF REPORT