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UMLALAZI 

MUNICIPALITY 



FINANCIAL 
STATEMENTS 
FOR THE YEAR 
ENDED 
30 JUNE 2007 



UMLALAZI MUNICIPALITY 


INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 


Page 


Foreword 

Manager : Financial Services Report 
Accounting policies 

General information 

Balance sheet 

Income statement 

Cash flow statement 

Notes to the financial statements 

Appendices 

A Statutory funds, Reserves, Trust Funds and Provisions 
B External loans and Internal advances 

C Analysis of fixed assets 

D Analysis of operating income and expenditure 

E Detailed income statement 


lto2 

3to6 

7to9 

10 

11 

12 

13 

14 to 28 

29 

30 

31 

32 

33 


F 


Statistical information 


34 




MANAGER: FINANCIAL SERVICES REPORT FOR THE TERM ENDED 30 JUNE 2007 
TO: HIS WORSHIP THE MAYOR AND COUNCILLORS OF THE UMLALAZI MUNICIPALITY 

Ladies and Gentlemen 

The 2006/2007 financial year started off with an accumulated surplus of R3286622 and the Council 
budgeted for a surplus of R193223 for the financial year wlth an expected expenditure growth of 17.8% 

As at 30 June 2007, the financial statements reflects an accumulated surplus of R 471940. It is expected that the surplus 
will be increased during the 2007/2008 financial year by R284638 to R756578. 


3 


1. OPERATING RESULTS 

Details of the operating results by expenditure component, department and classification are included in 
appendices D and E respectively. The applicable statistics are shown in appendix F. The overall operating 
results for the year ended are as follows 



Actual 

Variance 

Budget 

Variance 


2007 

2006/2007 

2007 

Actual Budget 

INCOME 

R 

% 

R 

% 

Opening surplus 

3286622 




Operating income for the year 

Closing deficit 

Sundry transfers 

90026439 

27.8 

93397234 

(3.6) 


93313061 


93397234 



EXPENDITURE 


89471213 32.3 93204011 (4) 

3369908 

471940 193223 

93313061 93397234 

The 27.8% increase in operating income was caused by the change in budgeting process of the rates income, as total rates 
levied was depicted as income while rebates on rates now reflects as an expenditure as income forgone. Rates income increased 
by 42.4% or R6 million. 


Opening deficit 

Operating expenditure for the year 
Sundry transfers 
Closing surplus 


The 32.3% increase in operating expenditure was caused mainly by the above mentioned additional expenditure and 
the following annual increases: 


Salaries.Wages and Allowances 10.7 

General Expenses 47.8 

Repairs & Maintenance 84.9 


The general expenses and repairs and maintenance expenses increased mainly because of Councillor Allowance increases of R3.6 million 
or 93% and grant expenditure which increased by R3991615 or 14.6%. 


The 3.6% and 4% negative variance between the budgeted revenue and expenditure is because of overbudgeting on grants or grants not 
being fully utilized. The grants are the following : 


IDP Review 

R 100 000 

Good Governance 

R 537 000 

Performance Management 

R 50 000 

MAP 

R 160 776 

Programme Support 

R 106 531 

LUMS-Eshowe & Gingindlovu 

R 200 000 

LUMS-Mtunzini 

R 400 000 

Organisational Structures 

R 104 600 

Anti Corruption 

R 47 452 

Public Participation 

R 55 290 

MSIG 

R 558 223 

Internal Control 

R 150 000 

Capacity Building 

R 56 593 

Mll P 

R 200 000 

Spatial Planning 

R 76 440 

REDS-lntergration 

R 150 000 

MDIS 

R 150 000 



Housing Unit 

R 390 106 





1.1 Rate and General Services 


4 



Actual 

Variance 

Budget 

Variance 


2007 

2006/2007 

2007 

Actual Budget 


R 

% 

R 

% 

Income 

63818463 

38.5 

66527468 

(4.1) 

Expenditure 

63450963 

39.9 

68354735 

(7.1) 

Surplus (deficit) 

367499 


(1827267) 


Surplus/(deficit) as % of total income 

0.6 


(2.7) 



The 38.5% increase in income is because of the change in budgeting principles on rates income and the expected increased grant income 
The same applied to the expenditure increase of 39.9%. The saving on the budgeted expenditure of 7.1% can be attributed to the grant 
funding not being fully utilized. Provision was made during the 2007/2008 financial year to utilize all available grant funds. 

1.2 Housing Service 



Actual 

Variance 

Budget 

Variance 


2007 

2006/2007 

2007 

Actual Budget 


R 

% 

R 

% 

Income 

53277 

6.3 

68586 

(28.3) 

Expenditure 

59570 

(2.6) 

65655 

(9.3) 

Surplus (Deficit) 

Surplus (deficit) as % of total income 

(6293) 

(11.8) 


2931 



The actual income is 22.3% less than the budgeted amount because of a number of loans being written off because of the housing subsidy 
scheme approved by the Department of Housing. 

1.3 Electricity Services 



Actual 

Variance 

Budget 

Variance 


2007 

2006/2007 

2007 

Actual Budget 


R 

% 

R 

% 

Income 

21274909 

2.9 

21896262 

(2.8) 

Expenditure 

21375343 

9.9 

19983077 

6.9 

Surplus (deficit) 

100434 


1913185 


Surplus (deficit) as % of total income 

0.5 


8.7 



The actual income is 2.8% or R621353 less than the budgeted amount because the National Electricity Regulator did not approve the 
Council's unit tariff increases for the year. The actual expenditure exceeded the budgeted amount by R1.4 million because of the 
transformation cost when the Manager: Engineering Services went on early retirement on 30 June 2007 and the electricity purchases vote 
which was overspent by R1159269 because at the Escom increase and additional expenditure for Mtunzini and Gingindlovu streetlights 
which was levied for the first time. 



1.4 Refuse Service 


5 



Actual 

Variance 

Budget 

Variance 


2007 

2006/2007 

2007 

Actual Budget 


R 

% 

R 

% 

Income 

4566447 

36.3 

4619270 

(1.1) 

Expenditure 

4467412 

66.1 

4664724 

(4.2) 

Surplus (deficit) 

99035 


(45454) 


Surplus (deficit) as % of total income 

2.2 


(0.9) 



The increase of 66.1% in expenditure consists of additional expenditure for the privatisation of the refuse collection services as well as the 
dump maintenance contract and the Project Consolidate Grant of R800 000 being utilized to establish a refuse transfer station. The grant 
also resulted in the increase in income. 

1.5 Chalet Park 



Actual 

Variance 

Budget 

Variance 


2007 

2006/2007 

2007 

Actual Budget 


R 

% 

R 

% 

Income 

313343 

5.9 

285648 

9.7 

Expenditure 

117924 

(15.6) 

135820 

(13.1) 

Surplus (deficit) 

195419 


149828 


Surplus (deficit) as % of total income 

62.3 


52.4 



The decrease in expenditure is because this facility was privatized during the 2002/2003 financial year.The 9.7% positive variance between 
the budgeted revenue and actual revenue is because no provision was made for the annual lease increase as per the sale agreement. 

2. CAPITAL EXPENDITURE AND FINANCING 

The expenditure on fixed assets during the year amounted to R12204291 which is 63 % more than that of the 
previous year. Actual expenditure is 35.7% less than that budgeted for and consists of the following: 



Actual 

Budget 

Actual 


2007 

2007 

2006 


R 

R 

R 

Land 

0 

0 

798816 

Buildings 

646531 

1160644 

1950443 

Roads & Streets 

7941906 

14765477 

1399568 

Other infrastructure 

1503098 

1593973 

646589 

Other movable assets 

1405538 

1476362 

2711068 


11497073 


18996456 


7506484 



Resources used to finance the fixed assets were as follows: 



Actual 

Budget 

Actual 


2007 

2007 

2006 


R 

R 

R 

External loans 

Governemnt loans 


3000000 


Capital Development Fund 

1645115 

1612206 

2695887 

Public improvement fund 

4145968 

5862000 

2633598 

Grants and subsidies 

5705990 

8522250 

1378183 

Unrealised revaluation surplus 

Revenue 



798816 


11497073 

18996456 

7506484 


Flxed assets are analysed by department and servlces In appendlx C. 


3. EXTERNAL LOANS, INVESTMENTS AND CASH 

External loans outstanding at 30 June 2007 amounted to R638270 {R1959210 in 2006) as set out in appendix B. 
During the year loans totalling R1360640 were repaid and written off. 

Investments and cash at 30 June 2007 amount to R26051453 (R19181886 in 2006). More information regarding 
loans and investments is disclosed in notes (7) to the financial statements. 

4. FUNDS AND RESERVES 

The provision for accumulated leave was increased as per Council's approval policy. 

More information regarding funds and reserves are disclosed in the notes (1 to 3) and appendix A to the financial 
statements. 

5. APPRECIATION 

The functioning of my Department is dependent on the staff and I wish to express my appreciation for their loyalty and 
for their efficient willing service. 


JG GERINGER L.I.A.C. AIMFO 

Manager: Financial Services 
23-Aug-07 



uMLALAZI MUNICIPALITY: ESHOWE ENTITV 


7 


ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2007 

1. Basis of presentation 

1.1 The annuai financiai statements have been prepared so as to confirm with the standards iaid down 
by the Institute of Municipai Financiai Officers in the Code of Practice (1997) and the Report of 
Annuai Financiai Statements (2nd edition.January 1996) 

1.2 Except for fixed assets the financiai statements are prepared on the historicai cost 
basis. 

1.3 The financiai statements are prepared on the accruai basis: 

Income is accrued when collectable and measurable. Certain direct income 
is accrued when received, such as traffic fines and certain licences. 

Expenditure is accrued in the year it is accrued. 


2. Consolidation 

The balance sheet includes the Rate and General Services, Housing Service, Trading 
Services and the different funds, reserves and provisions. All inter departmental charges 
are set-off against each other , with the exception of assessment rates, refuse removal, 
electricity and water, which are treated as income and expenditure in the respective 
departments. 

3. Fixed Assets 

3.1 Land is revalued once every five years based on rateable valuations as determined by 
the council's valuer. 

3.2 Other fixed assets are stated: 

at historical cost, while they are in existance and fit for use. 

3.3 Net proceeds from the sale of fixed property are credited to the Public Improvement 
Fund. Net proceeds from the sale of all other assets are credited to the relevant 
Capital Development Fund. 

3.4 Fixed assets are financed from different sources, including external loans, operating 
income, public contributions and internal advances. These loans and advances are 
repaid within the estimated lives of the assets acquired from such loans or advances. 
Interest is charged to the service concerned at the ruling interest rate applicable at the 
time that the advance is made. 

3.5 The balance shown against the heading "Loans Redeemed and Other Receipts" in the 
notes to the balance sheet is tantamount to a provision for depreciation, however, 
certain structural differences do exist. By way of this"Provision" assets are written down 
over their useful life. Apart from advances from the various council funds, assets may 
also be acquired through: 

Appropriations from income, where the full cost of the asset forms an 
immediate and direct charge against the operating income, and therefore it is 
necessary to make any further provision for depreciation. 



4. Stock 


8 


Stock, which comprises consumable stores is stated at the lower of cost determined on an 
average cost basis and net realisable value. 

5. Funds and Reserves 

5.1 Capital Development Fund 

The Local Authorities Ordinance 25 of 1974 Section 103 (9) (b), requires a minimum 
contribution of the defined income of a local authority for the financial year under review. 

5.2 Loans Redemption Fund 

The redemption of fixed loans are provided for by the annual contributions made to the loan 
redemption funds calculated on the estimated lives of assets acquired subject to a maximum 
of 30 years. 

6. Administration Charges 

Administration charges are charged to the various services on the basis of estimated time spent 
and cost of facilities used. 

7. Investments 

Investments are stated in the Financial Statements at original cost. They are invested in the 
securities prescribed in Section 125(1) of the Local Authorites Ordinance 1974 (25 of 1974). 

8. Retirement Benefits 

The Council and it's employees contribute to the Natal Joint Municipal Pension Fund which 
provides retirment benefits to such employees. 

The retiremnt benefit plan is subject to the Pension Fund Act No 24 of 1956, with pension being 
calculated on the final pensionable remuneration paid. Current contributions are charged against 
operating income on the basis of current service costs. 



9. Income Recognition 


g 


9.1 Electricity and Water billings 

Meters on all properties are read monthly and monthly accounts are sent out with final date of payment 
on or before the 15th of the following month. 

9.2 Assessment Rates 

Rates are levied on property value and rebates are granted in terms of the CouncN's Property Rates Policy. 
10. Provisions for Bad and Leave Pay 

10.1 Bad Debt 

General Rates and land sales debtors are not included in the calculations as the debt can be recovered or 
land repossessed. All balances on other short term debtor accounts outstanding for more than 90 days 
are used in the calculations. 

As it is expected that there is a 10% recovery, provision for bad debts are calculated on 90% of the 
balances older than 90 days. 

10.2 Leave Pay 

Credit leave due to staff members as at the end of the financial year is provided for at 33% for the 
following year. 

11 Surpluses and Deficits 

No surpluses or deficits on the operating accounts are to be appropriated for a specific use or 
service.No surpluses arising from the trading services were transferred to the Rate and General 
service. 

12 Leased Assets 

All leases are treated as operating leases and the relevant rentals are charged to the operating 
account in a systematic manner related to the period of use of the assets concerned. 



GENERAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2007 


10 


Members of the uMlalazi Munlclpallty Councll 


Hls Worship the Mayor Alderman SB Larkan 

Council 

or 

E N Ngema 

The Deputy Mayor Councillor M E T Magwaza 

Council 

or 

G N Ngema 

The Speaker Councillor M S Shandu 

Council 

or 

C T Ndwalane 

Councl 

lor T D Biyela 

Council 

or 

S G Ngema 

Councl 

lor N S Buthelezl 

Council 

or 

D T Ngonyama 

Councl 

lor C Buthelezi 

Council 

or 

S F Ngonyama 

Councl 

lor 

M M Cebekhulu 

Council 

or 

D C Ntanzi 

Councl 

lor 

P G Dlolane 

Council 

or 

M M M Ntuli 

Councl 

lor 

M Dludla 

Council 

or 

M C Nxumalo 

Councl 

lor 

C Gamede 

Council 

or 

S R Ngcobo 

Councl 

lor 

H G L Glass 

Council 

or 

J K Powell 

Councl 

lor 

E Z Jaffe 

Council 

or 

D K Palavar 

Councl 

lor 

K Khumalo 

Council 

or 

M S Shandu 

Councl 

lor 

K B Magwaza 

Council 

or 

B G S Sithole 

Councl 

lor 

M M Makhoba 

Council 

or 

B C Sithole 

Councl 

lor 

M E Maphumulo 

Council 

or 

B A Sibiya 

Councl 

lor 

D P Marais 

Council 

or 

T Y Sibiya 

Councl 

lor 

V Mathonsi 

Council 

or 

B P Simelane 

Councl 

lor 

S G Mbambo 

Council 

or 

E A Talmage 

Councl 

lor 

M Mbuyazi 

Council 

or 

J D Vilakazi 

Councl 

lor 

G Moodley 

Council 

or 

1 Woollatt 

Councl 

lor 

V B Mthethwa 

Council 

or 

Q T Xulu 

Councl 

lor 

M M Mzimela 

Council 

or 

V M Xulu 

Councl 

lor 

N S Mzimela 

Council 

or 

K B Zikalala 

Councl 

lor 

P S Mncwango 

Council 

or 

S Zikalala 

Councl 

lor 

B R L Ngema 

Council 

or 

N G Zondi 


Members of the Executlve Commlttee 

Alderman SB Larkan Chairman 

Councillor I MET Magwaza 

Councillor NS Buthelezl 

Counclllor I M C Nxumalo 

Councillor I C T Ndwalane 

Councillor ■ J K Powell 

Councillor I E A Talmage 

Councillor IQ T Xulu 

Counclllor , V M Xulu 

Councillor ' J D Vilakazi 

Category of Munlclpality 

Category B 

Audltors Members of the 

Audlt Commlttee 

Office of the Auditor-General Mrs K Horsley 

Mr H Oosthuizen 

Bankers Advocate M Mtshali 

First National Bank 

Reglstered Office 

uMlalazi Municipality 
Hutchinson Road 
Eshowe 

Munlcipal Manager 

J C Gerber 

Manager: Flnanclal Servlces 

J G Geringer: Registered Municipal Accountant (Associate) 


P O Box 37 Telephone : 035 - 473 3474 

Eshowe Fax 035 - 474 2809 

3815 



UMLALAZI MUNICIPALITY 


11 




Notes 

2007 

2006 



R 

R 

CAPITAL EMPLOYED 




FUNDS AND RESERVES 


89 047 025 

86 628 596 

Statutory Funds 

1 

88 747 450 

86 504 148 

Reserves 

2 

299 575 

124 449 

(Accumulated Deficit)/Surplus 

17 

471 940 

3 286 622 



89 518 965 

89 915 218 

TRUST FUNDS 

3 

6 231 120 

4 909 354 

LONG TERM LIABILITIES 

4 

303 734 

1 111 974 

DEPOSITS 

5 

939 228 

887 646 



96 993 047 

96 824 192 


EMPLOYMENT OF CAPITAL 


FIXED ASSETS 
INVESTMENTS 
LONG TERM DEBTORS 


70 725 194 

1000 
900 904 

71 627 097 


66 417 595 
1 101 000 
2 455 352 
69 973 947 


NET CURRENT ASSETS/LIABILITIES 


25 365 949 


26 850 245 


CURRENT ASSETS 

Inventory 

Debtors 

Short term portion of long-term debtors 
Short term portion of investments 
Cash 


42 932 130 
1 483 826 
15 263 858 
133 994 
22 757 895 
3 292 558 


36 457 644 
1 349 026 
16 736 857 
290 874 
16 090 812 
1 990 074 


CURRENT LIABILITIES 

Provisions 

Creditors 

Short term portion of Long Term Liabilities 
Bank Overdraft 


17 566 181 
438 898 
16 792 747 
334 536 


9 607 399 
1 527 699 
7 232 463 
847 236 


96 993 047 


96 824 192 


CERTIFIED AS CORRECT 

CHRIS GERBER 
MUNICIPAL MANAGER 
27-Aug-07 


CERTIFIED AS CORRECT 

HUEYGERINGER 

MANAGER : FINANCIAL SERVICES 







UMLALAZI MUNICIPALITY 
INCOME STATEMENT FOR THE YEAR ENDED 
30 JUNE2007 


2006 

2006 

2006 

Actual 

Actual 

Surplus 

Income 

Expenditure 

(Deficit) 

R 

R 

R 

RATE & GENERAL 

46 071 277 

45 331 420 

739 857 SERVICES 

42 402 769 

35 222 141 

7 180 628 Community services 

2 216 596 

9 245 435 

(7 028 839) Subsidised services 

1 451 912 

863 844 

588 068 Economic services 

50 090 

61 145 

(11 055) HOUSING 

24 304 430 

22 265 074 

2 039 356 TRADING SERVICES 

70 425 797 

67 657 639 

2 768158 TOTAL 


— 

Appropriations for the 
(1 103 337) year (Refer to Note 17 ) 

Net surplus/(deficit) for 

1 664 821 the year 

Accumulated surplus/ 

1 621 800 (deficit) beginning of year 

Accumulated surplus/ 

3 286 621 (deficit) end of year 


12 


2007 

Actual 

Income 

2007 

Actual 

Expenditure 

2007 

Surplus 

(Deficit) 

2007 

Budget 

Surplus/ 

(Deficit) 

R 

R 

R 

R 

63 818 463 

63 450 963 

367 499 

(1 827 267) 

56 145 556 

48 616 688 

7 528 868 

5 255 637 

5 959 647 

13 872 315 

(7 912 668) 

(7 833 283) 

1 713 260 

961 961 

751 299 

750 379 

53 277 

59 570 

(6 293) 

2 931 

26 154 699 

25 960 679 

194 020 

2 017 559 

90 026 439 

89 471 213 

555 226 

193 223 


(3 369 909) 

(2 814 682) 

3 286 622 


471 940 




UMLALAZI MUNICIPALITY 


13 



CASH RETAINED FROM OPERATING 
ACTIVITIES 

Cash generated by operations 
Investments income (external) 
(Increase) decrease in working capital 

Less: External interest paid 

Cash available from operations 


Cash contributions from the public and 
the state 

Net proceeds on disposal of flxed assets 


l -» 

00 

477 

147 

(8 

814 

522) 

8 

403 

423 

12 

661 

395 

12 

250 

296 


247 

810 

12 

498 

106 

5 

979 

041 


16 695 712 
6 160 720 
729 624 
18 077 578 
24 967 922 
(304 827) 

24 663 095 


(7 967 383) 


CASH UTILISED IN INVESTING ACTIVITIES 

Investments in fixed assets 

NET CASH FLOW 

CASH EFFECTS OF FINANCING ACTIVITIES 

Increase / ( decrease ) in long-term loans 
(Increase) / decrease in external cash investments 
(Increase) / decrease in cash on hand 

NET CASH (GENERATED)/UTILISED 



(10 286 640) 

(6 823 743) 


8 190 507 

9 871 969 

20 

(1 320 940) 

(362 971) 

21 

(5 567 083) 

(6 545 601) 

22 

(1 302 484) 

(2 963 396) 


(8 190 507) 

(9 871 968) 





UMLALAZI MUNICIPALITY 

14 


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 



2007 

2006 


R 

R 

1. STATUTORY FUNDS 



Capital Development Fund 

15 441 272 

13 877 635 

Loan Redemption Fund 

- 

606 899 

Public Improvement Fund 

73 306 178 

72 019 614 


88 747 450 

86 504 148 

(Refer to Appendix A for more detail) 



2. RESERVES 



Parking Reserve 

3 746 

3 511 

Electrical Network 

295 829 

120 937 


299 575 

124 449 

(Refer to Appendix A for more detail) 



3. TRUSTFUNDS 



Housing Development 

4 345 683 

4 013 935 

Dorothy Irons Trust Fund 

10 928 

10 201 

Masakhane 

2 555 

3 918 

Indigent Support 

937 969 

692 322 

Disaster Relief 

697 898 

111 012 

Mayoral Community Assistance 

- 

37 090 

Humanitatiun Fund 

111 464 

40 876 

UML Community Fund 

124 623 



6 231 120 

4 909 354 

(Refer to Appendix A for more detail) 



4. LONG TERM LIABILITIES 



Local registered stock 

. 

940 000 

Annuity loans 

638 270 

1 019 210 


638 270 

1 959 210 

Less; Current portion transferred to current liabilities 

334 536 

847 236 


303 734 

1 111 974 

(Refer to Appendix B for more detail) 





NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 


15 


2007 

R 


5. DEPOSITS 

Consumer Deposits 
Sundry Deposits 


Guarantees in iieu of eiectricity deposits 

6. FIXEDASSETS 

Fixed assets at the beginning of the year 
Asset vaiue correction 
Capitai outiay during the year 

Less : Assets written off, transferred or 
disposed of during the year 

Total fixed assets 

Less : Loans redeemed and other capitai 
receipts 

Net fixed assets 

(Refer to Appendix C and section two of the Manager: 
Financiai Services Report for more detaii) 

Asset Lease Rentals 

7. INVESTMENTS 
Unlisted 

Locai registered stock 
Short term deposits 
Caii Deposits 
Coastai Farmers 

Less : Short-term portion of investments 
transferred to current assets 


30 774 166 

35 165 062 


939 228 


621 062 


138 132 800 

11 497 073 
149 629 873 

(1 210 432) 
148 419 441 

77 694 247 
70 725 194 


357 500 


53 


22 757 895 
1000 
22 758 895 


22 757 895 
1000 


Average rate of return on investments 6.70% 

Section 125 of the Locai Authorities Ordinance, 25 of 
1974, requires iocai authorities to invest funds, which 
are not immediateiy required, with prescribed institutions 


2006 

R 


715 498 
172 148 


887 646 


621 062 


131 309 057 
798 816 
6 708 424 
138 816 297 

(683 498) 
138 132 800 

71 715 206 
66 417 595 


345 575 


1 100 000 
4 013 935 
12 076 877 
1000 
17 191 812 

16 090 812 
1 101 000 


6.10% 


No investments bave been written off during the year. 



16 


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 

2007 2006 

R R 

8. LONG TERM DEBTORS 


Housing Loans 

32 

940 189 

2 565 726 

Staff Car Loans 

33 

- 

6 581 

Deposits with creditors 

293 

56 800 

53 800 

Land Sales 

36 

37 909 

120 120 



1 034 898 

2 746 226 

Less : Short-term portion of long-term debtors 




transferred to current assets 

305 

133 994 

290 874 



900 904 

2 455 352 

INVENTORY 




Inventory represents consumable stores 

37 

1 483 826 

1 349 026 

. DEBTORS 




Current debtors ( consumers and other ) 

38 

16 544 115 

18 440 442 

Survey Costs 

39 

70 377 

34 277 



16 614 492 

18 474 719 

Less : Provision for bad debts 


(1 350 635) 

(1 737 861) 



15 263 858 

16 736 857 


An amount of R1 677 747 was written off as irrecoverable 
during the year (2006 : R1 283 707) 


11. PROVISIONS 


Audit fees 


- 

743 661 

Accumulated Leave 


438 898 

784 039 


— 

438 898 

1 527 699 

CREDITORS 




Trade Creditors 

41 

5 812 486 

2 414 491 

Payments in Advance 

42 

609 324 

275 699 

Unclaimed Monies 

43 

427 114 

124 712 

Value Added Tax 

44 

1 323 987 

924 337 

Salary Suspense 

45 

68 626 

35 090 

Retention Monies 

46 

375 006 

650 880 

Regional Development 

47 

- 

29 133 

Government Grants 

303 

8 176 204 

2 778 121 



16 792 747 

7 232 463 





19 


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 

2007 

R 

16. FINANCE TRANSACTIONS 

2006 

R 

Total external interest earned or paid: 

Interest earned 


1 537 666 

729 624 

Interest paid 


247 810 

304 827 

Capital charges debited to operating account: 

Interest - External 

64 

247 810 

304 827 

Internal 

69 

2 611 118 

2 434 890 

Redemp- External 

65 

419 989 

362 971 

Internal 

68 

3 834 651 

3 319 364 

17. APPROPRIATONS 

Appropriation account: 

Accumulated (deficit)/surplus at the beginning 


7 113 567 

6 422 052 

of the year 


3 286 622 

1 621 800 

Operating (deficlQ/surplus for the year 


555 226 

2 768 159 

Appropriations for the year 


(3 369 909) 

(1 103 337) 

Contribution to Capital Development Fund 

r 

- 

- 

Prior year adjustments 

L 

(3 369 909) 

(1 103 337) 

Accumulated (deficit)/surplus at the end of the year 

— 

471 940 

3 286 622 





20 


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 

2007 2006 

R R 

Operating account : 

Contributions to : 

Fixed assets 


Capital Development Fund 

1 274 210 

1 072 639 

Loan Redemption Fund 

327 999 

31 724 

Public Improvement Fund 

150 000 

888 997 

Housing Development 



Parking Reserve 

- 

143 860 

Electrical Network 

219 076 

143 555 

Masakhane 



Indigent Support 

200 000 

200 000 

Disaster Relief 

800 000 

250 000 

Mayoral Community Assistance 

- 

5 000 

Audit fees 

1 398 273 

1 065 973 

Bad Debt 

1 290 521 

1 551 141 

Accumulated Leave 

594 790 

615 365 


6 254 869 5 968 254 


18. CASH GENERATED BY OPERATIONS 

(DeficiQ/surpius for the year 
Adjustments in respect of: 

Previous years' operating transactions 


555 226 2 768 159 

(3 369 909) (1 103 337) 


Appropriations charged against income: 
Provisions 
Fixed Assets 
Capitai Charges 
Interest paid: 

- to internal funds 

- on external funds 
Redemptions paid: 

- of internal advances 

- of external loans 

Investment income (operating account) 

Non-operating income: 

Statutary Funds 
Reserves 
Trust Funds 

Non-operating expenditure: 

Statutary Funds 
Reserves 
Trust Funds 


(1 088 802) 

214 522 

(1 088 802) 


214 522 

(7 113 567) 

304 827 

(2 611 118) 
(247 810) 


304 827 

(3 834 651) 
(419 989) 



1 537 666 

729 624 

5 211 791 

5 227 733 

3 178 201 

224 405 

1 809 185 


3 682 344 

287 414 

1 257 975 

(1 471 597) 

(521 560) 

(934 898) 
(49 280) 
(487 418) 


(38 089) 
(162 966) 
(320 505) 


(8 814 522) 6 160 720 







NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 




21 

2007 

R 

2006 

R 

19. (INCREASE) / DECREASE IN WORKING CAPITAL 

Increase /(Decrease) in deposits 


51 582 

34 400 

(Increase) / Decrease in inventory 


(134 799) 

(36 522) 

(Increase) / Decrease in debtors 


3 184 328 

16 503 667 

Increase /(Decrease) in creditors 


9 560 284 

1 576 034 


— 

12 661 395 

18 077 579 

20. INCREASE / (DECREASE) IN LONG TERM LOANS 

Loans raised 


39 700 

. 

Loans repaid 


(1 360 640) 

(362 971) 


= 

(1 320 940) 

(362 971) 

21. (INCREASE) / DECREASE IN EXTERNAL 

CASH INVESTMENTS 

Investments as at 30/06/2006 


17 191 812 

10 646 211 

Investments as at 30/06/2007 


22 758 895 

17 191 812 


= 

(5 567 083) 

(6 545 601) 

22. (INCREASE) / DECREASE IN CASH ON HAND 

Cash balance at beginning of year 


1 990 074 

(973 324) 

Cash balance at end of year 

50 

3 292 558 

1 990 074 


— 

(1 302 484) 

(2 963 398) 

23. CAPITAL DEVELOPMENT FUND 

Outstanding advances to borrowing services 

Accumulated funds 


15 441 272 

13 877 635 

Less: External investments 

Cash on hand 

2020 

7 804 270 

(4 537 468) 
(1 570 075) 

Refer to appendix B for more detail on outstanding 

advances to borrowing services 



7 637 003 

7 770 092 



2006 

R 


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 22 

2007 

R 

24. LOAN REDEMPTION FUND 


Outstanding advances to borrowing services 

Accumulated funds - 606 899 

Less: External Investments 


Refer to appendlx B for more detall on outstandlng 

advances to borrowlng servlces - 606 899 


25. PUBLIC IMPROVEMENT FUND 


Outstanding advances to borrowing services 


Accumulated funds 
Less: 

Value of land and development cost 
External Investments 
Cash on hand 
Debtors 


73 306 178 72 019 614 

56 605 618 57 408 578 


50 590 715 


50 590 716 

5 906 617 


6 663 466 

37 909 


120 119 

70 377 


34 277 


Refer to appendlx B for more detall on outstandlng 

advances to borrowlng servlces 16 700 560 14 611 036 


26. CONTRACT GUARANTEES 24 253 

27. CONTRACTUAL OBLIGATIONS 


Staff Leave 


1 462 993 


1 568 078 





23 


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 


(Continued) 

2007 

R 


28 RETIRMENT BENEFITS 

The last actuarial valuations of the Natal Joint 
Municipal Pension Funds (Superannuation and 
Retirement) was done at 31 March 2005. These 
valuations disclosed a deficit for past service 
of R224,7 million and a deficit for past service of 
R202,9 million respectively. 

These shortfalls will be met with a surcharge of 6% from 
1 July 2006 for 3 years for the Superannuation Pension 
Fund, and a surcharge of 14% from 1 July 2006 for 
the Retirement Pension Fund. 


29 South African Local Government Association 

Membership 112 762 

Bargaining Council 20 430 


133 192 

No amounts outstanding at the end of 
the financial year 


30 Audit fees 

No amounts outstanding at the end of 
the financial year 


31 South African Revenue Services 

PAYE 

Value added tax 


3 613 340 
1 278 787 


4 892 127 

No amounts outstanding at the end of 
the financial year 


32 uThungulu District Municipality 

Skills Development Levy 268 148 


268 148 

No amounts outstanding at the end of 
the financial year 


2006 

R 


117 858 
9 215 


127 073 


736 437 


2 729 174 
537 493 


3 266 667 


110 341 
224 083 


334 424 



NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 


24 


2007 

R 


33 Pension Fund Contributions 

Staff 

Councillors 


3 870 394 
3 444 487 
425 907 


Medical Aid Contributions 

Staff 

Councillors 


1 033 033 
1 002 420 
30 613 


No amounts outstanding at the end of 
the financial year 

34 BANK ACCOUNT INFORMATION 

Name of the bank 
Type of account 
Year opening balance 
Year end balance 


4 903 427 


F N B 
Current 

2 017 998 

3 949 766 


2006 

R 


3 258 400 
3 012 828 
245 572 


1 012 962 
1 000 794 
12 168 


4 271 362 


F N B 
Current 
(987 419) 
2 017 998 







NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 


17 


13 ASSESSMENT RATES 


Residential 
Commercial 
Light Industrial 
Caravan Parks 
Agricultural 

Less: Rebates granted 


Valuations on land are performed every 5 years. 
The fixed dates of the valuation rolls are as follows: 
Eshowe -lJulyl999 
Mtunzini - 1 July 1995 
Gingindlovu -lJulyl996 
The basic rates were as foliows: 

Eshowe :15,77 per rand on land only 
Mtunzini : 6,10 per rand on land only 
Gingindlovu : 15,06 per rand on land only 
The following rebates were granted: 


Municipal properties : - 100% 

Government properties - 20% 

Pensioners : - 50% 

Properties with land values 
of R7,000 and less -100% 


Site 

2007 

2006 

valuations 



atOlJuly 2006 



R 

R 

R 

172 152 770 

15564988 

14 683 992 

19 382 780 

3992312 

3 766 342 

4 211 000 

430405 

406 044 

700 000 

84261 

77 793 

333 000 

40436 

39 847 

196 779 550 

20 112 402 

18 974 018 


(4 997 338) 

(4 802 299) 

196 779 550 

15 115 064 

14 171 719 


14 COUNCILLOR' S REMUNERATION 


Mayor 

421 239 

276 102 

Salary 

264 231 


169 698 

Allowances and benefits 

157 008 


106 404 

Speaker 

177 473 

107 067 

Allowance 

122 815 


79 203 

Benefits 

54 658 


27 864 

Deputy Mayor 

232 944 

106 924 

Allowance 

161 725 


79 203 

Benefits 

71 219 


27 721 

Members of Excutive Committee 

1 357 047 

835 222 

Allowances 

936 803 


598 434 

Benefits 

420 244 


236 788 

Councillors 

5 259 601 

2 529 706 

Allowances 

3 599 327 


1 661 651 

Benefits 

1 660 274 


868 055 


7 448 304 3 855 021 




NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 


18 


15 REMUNERATION OF THE MUNICIPAL MANAGER 2007 

Annual Remuneration 457 555 

Performance Bonus 62 282 

Car Allowance 84 000 

Contributions to UIF, Medical and Pension Funds 93 718 

Total 697 554 


REMUNERATION OF THE CHIEF FINANCIAL OFFICER 

Annual Remuneration 222 055 

13th Cheque 37 070 

Allowances : Car / Housing 193 892 

Contributions to UIF, Medical and Pension Funds 72 329 


Total 525 346 


EMPLOYEE RELATED COSTS (CONTINUED) 


Remuneration of Individual Executive Directors 

Corporate 


Community 

Protection 

Engineer 

30-Jun-07 

Services 


Services 

Services 

Services 

Annual Remuneration 


222 055 

222055 

222055 

222055 

13th Cheque 


18 352 

18352 

37070 

37070 

Allowances : Car / Housing 


85 255 

116777 

707505 

414625 

Medical,Pension,UIF and Group Life funds 


85 255 

77176 

77176 

63764 

Total 


410 916 

434 360 

1 043 807 

737 514 



NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 

25 

2007 

R 

35 GOVERNMENT GRANTS AND SUBSIDIES 


GRl 16.1 Programme Support 

Balance unspent at beginning of year 25 732 

Currect year receipts 

Interest Earned 12 043 

Conditions met - transferred to revenue 34 200 

Conditions still to be met - transferred to liabilities 3 575 

GR 5 16.2 PMS Human Resources 

Balance unspent at beginning of year 28 240 

Currect year receipts 

Conditions met - transferred to revenue 6 645 

Conditions still to be met - transferred to liabilities 21 595 

GR 6 16.3 Capacity Building : GIS 

Balance unspent at beginning of year 44 779 

Currect year receipts 50 000 

Conditions met - transferred to revenue 90 577 

Conditions still to be met - transferred to liabilities 4 203 

GR 7 16.4 Development Administrator 

Balance unspent at beginning of year 116 000 

Currect year receipts 

Conditions met - transferred to revenue 

Conditions still to be met - transferred to liabilities 116 000 

GR 9 16.5 IDP Review 

Balance unspent at beginning of year 24 599 

Currect year receipts 

Conditions met - transferred to revenue 24 599 

Conditions still to be met - transferred to liabilities ^ 

GR 10 16.6 Development Administrator 

Balance unspent at beginning of year 100 000 

Currect year receipts 

Conditions met - transferred to revenue 95 905 

Conditions still to be met - transferred to liabilities 4 095 

GR 11 16.7 Capacity Building : MDPCB 

Balance unspent at beginning of year 80 000 

Currect year receipts 70 000 

Conditions met - transferred to revenue 93 507 

Conditions still to be met - transferred to liabilities 56 493 

GR 12 16.8 IDP Review 

Balance unspent at beginning of year 45 565 

Currect year receipts 

Conditions met - transferred to revenue 45 565 

Conditions still to be met - transferred to liabilities ^ 

GR 13 16.9 IDP Revision 

Balance unspent at beginning of year 1 485 

Currect year receipts 

Conditions met - transferred to revenue 1 485 

Conditions still to be met - transferred to liabilities ^ 

GR 15 16.10 MSIG 

Balance unspent at beginning of year 402 509 

Currect year receipts 734 000 

Conditions met - transferred to revenue 575 500 

Conditions still to be met - transferred to liabilities 561 009 



NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 

26 

GR 15 16.11 Workers Programme 

Balance unspent at beginning of year 32 755 

Currect year receipts 

Conditions met - transferred to revenue 22 633 

Conditions still to be met - transferred to liabilities 10 122 


GR 17 16.12 Municipal Development Infra Structure 

Balance unspent at beginning of year 100 000 

Currect year receipts 

Conditions met - transferred to revenue 

Conditions still to be met - transferred to liabilities 100 000 


GR 17 16.13 Lums Mtunzini 

Balance unspent at beginning of year 110 000 

Currect year receipts 

Conditions met - transferred to revenue 70 000 

Conditions still to be met - transferred to liabilities 40 000 


GR 19 16.14 Project Conlidate : Housing Unit 

Balance unspent at beginning of year 400 000 

Currect year receipts 

Interst Earned 15 045 

Conditions met - transferred to revenue 9 900 

Conditions still to be met - transferred to liabilities 405 145 


GR 20 16.15 Project Consolidate : Landfill Site 

Balance unspent at beginning of year 800 000 

Currect year receipts 

Interst Earned 30 089 

Conditions met - transferred to revenue 696 237 

Conditions still to be met - transferred to liabilities 133 852 


GR 22 16.16 Capacity Building 

Balance unspent at beginning of year 24 816 

Currect year receipts 

Conditions met - transferred to revenue 24 816 

Conditions still to be met - transferred to liabilities 0 


GR 23 16.17 Plan & Int Performance Management 

Balance unspent at beginning of year 205 420 

Currect year receipts 

Conditions met - transferred to revenue 193 336 

Conditions still to be met - transferred to liabilities 12 084 


GR23 16.18 MFMA 

Balance unspent at beginning of year 145 000 

Currect year receipts 

Conditions met - transferred to revenue 139 231 

Conditions still to be met - transferred to liabilities 5 769 


GR23 16.19 Interdepartmental Monitoring 

Balance unspent at beginning of year 40 000 

Currect year receipts 

Conditions met - transferred to revenue 40 000 

Conditions still to be met - transferred to liabilities 0 


GR 23 16.20 Housing Plan 

Balance unspent at beginning of year 95 104 

Currect year receipts 

Conditions met - transferred to revenue 52 534 

Conditions still to be met - transferred to liabilities 42 570 


GR 29 16.21 Municipal Systems Improvement 

Balance unspent at beginning of year 40 956 

Currect year receipts 

Conditions met - transferred to revenue 40 956 

Conditions still to be met - transferred to liabilities -0 



NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 


27 

GR 30 16.22 Capacity Building 

Balance unspent at beginning of year 286 000 

Currect year receipts 

Conditions met - transferred to revenue 101 532 

Conditions still to be met - transferred to liabilities 184 468 

GR 31 16.23 IDP Review & Development Plan 

Balance unspent at beginning of year 50 000 

Currect year receipts 

Conditions met - transferred to revenue 50 000 

Conditions still to be met - transferred to liabilities ^ 

GR32 16.24 LUMS Spatial 

Balance unspent at beginning of year 80 000 

Currect year receipts 

Conditions met - transferred to revenue 3 560 

Conditions still to be met - transferred to liabilities 76 440 

GR 33 16.25 LUMS Ward 17 

Balance unspent at beginning of year 470 000 

Currect year receipts 

Conditions met - transferred to revenue 135 000 

Conditions still to be met - transferred to liabilities 335 000 

GR34 16.26 Budget Reform 

Balance unspent at beginning of year 449 900 

Currect year receipts 

Interst Earned 95 981 

Conditions met - transferred to revenue 448 689 

Conditions still to be met - transferred to liabilities 97 192 

GR35 16.27 MIG 

Balance unspent at beginning of year 598 320 

Currect year receipts 8 683 638 

Interst Earned 111 039 

Conditions met - transferred to revenue 5 810 390 

Conditions still to be met - transferred to liabilities 3 582 607 

GR37 16.28 Review and Amendment of IDP 

Balance unspent at beginning of year 50 000 

Currect year receipts 

Conditions met - transferred to revenue 

Conditions still to be met - transferred to liabilities 50 000 


GR38 16.29 Development of LUMS 

Balance unspent at beginning of year 
Currect year receipts 


Conditions met - transferred to revenue 40 000 

Conditions still to be met - transferred to liabilities -40 000 

GR 39 16.30 MAP 

Balance unspent at beginning of year 500 000 

Currect year receipts 

Interst Earned 18 519 

Conditions met - transferred to revenue 339 224 

Conditions still to be met - transferred to liabilities 179 296 

GR 40 16.31 Internal Control Units 

Balance unspent at beginning of year 150 000 

Currect year receipts 

Interst Earned 5 642 

Conditions met - transferred to revenue 

Conditions still to be met - transferred to liabilities 155 642 



NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 30 JUNE 2007 (Continued) 

28 

GR 41 16.32 Organizational Structure 

Balance unspent at beginning of year 137 000 

Currect year receipts 

Interst Earned 5 153 

Conditions met - transferred to revenue 32 400 

Conditions still to be met - transferred to liabilities 109 753 


GR 42 16.33 Public Participation 

Balance unspent at beginning of year 250 000 

Currect year receipts 

Interst Earned 8 957 

Conditions met - transferred to revenue 194 710 

Conditions still to be met - transferred to liabilities 64 247 


GR 43 16.34 Financial Mangement 

Balance unspent at beginning of year 100 000 

Currect year receipts 

Conditions met - transferred to revenue 100 000 

Conditions still to be met - transferred to liabilities 0 


GR 44 16.35 Financial Management Grant 

Balance unspent at beginning of year 500 000 

Currect year receipts 

Interst Earned 15 392 

Conditions met - transferred to revenue 22 277 

Conditions still to be met - transferred to liabilities 493 115 


GR 45 16.36 KDS Bus Route : Project Consolidate 

Balance unspent at beginning of year 1 500 000 

Currect year receipts 

Interst Earned 43 290 

Conditions met - transferred to revenue 71 974 

Conditions still to be met - transferred to liabilities 1 471 316 


GR 46 16.37 Municipal Infrastructure : MIIP 

Balance unspent at beginning of year 200 000 

Currect year receipts 

Interst Earned 2 481 

Conditions met - transferred to revenue 

Conditions still to be met - transferred to liabilities 202 481 


GR 47 16.38 Integration with REDS 

Balance unspent at beginning of year 150 000 

Currect year receipts 

Interst Earned 13 681 

Conditions met - transferred to revenue 

Conditions still to be met - transferred to liabilities 163 681 


16.39 GING TLC : Systems Improvement 

Balance unspent at beginning of year 200 000 

Currect year receipts 

Conditions met - transferred to revenue 188 130 

Conditions still to be met - transferred to liabilities 11 870 


16.40 GING TLC : IDP Switchboard 

Balance unspent at beginning of year 150 457 

Currect year receipts 

Interst Earned 9 007 

Conditions met - transferred to revenue 137 477 

Conditions still to be met - transferred to liabilities 21 987 


This is the first year that all grants received are listed.Previous year 
information is not available in this format 



UMLALAZI MUNICIPALITY 
APPENDIX A 


29 


STATUTORY FUNDS, RESERVES, TRUST FUNDS AND PROVISIONS FOR THE 

YEAR ENDED 30 JUNE 2007 








Balance at 

Contributions 

Interest on 

Other 

Expenditure 

Balance at 







2006/06/30 

during the 

investments 

income 

during the 

2007/06/30 








year 



year 








R 

R 

R 

R 

R 

R 

STATUTORY FUNDS 

Capital Development 

Fund 

222 

223 

224 

225 

226 

13 877 635 

1 274 210 

289 427 



15 441 272 

Loan Redemption 

Fund 

227 

228 

229 

230 

231 

606 899 

327 999 



934 898 


Public Improvement 

Fund 

232 

233 

234 

235 

236 

72 019 614 

150 000 

1 136 564 

- 

- 

73 306 178 







86 504 148 

1 752 209 

1 425 992 

- 

934 898 

88 747 450 

RESERVES 

Parking Reserve 

237 

238 

239 

240 

241 

3 511 


234 



3 745 

Electrical Network 

242 

243 

244 

245 

246 

120 937 

219 076 

5 096 

" 

49 280 

295 829 







124 449 

219 076 

5 329 

- 

49 280 

299 574 

TRUST FUNDS 

Housing Development 

247 

248 

249 

250 

251 

4 013 935 


331 748 



4 345 683 

Dorothy Irons Trust 

252 

253 

254 

255 

256 

10 201 

- 

727 

- 

- 

10 928 

Masakhane 

257 

258 

259 

260 

261 

3 918 

- 

237 

- 

1600 

2 555 

Indigent Support 

262 

263 

264 

265 

266 

692 322 

200 000 

61 170 

- 

15 523 

937 969 

Disaster Relief 

267 

268 

269 

270 

271 

111 012 

800 000 

51 777 

- 

264 891 

697 898 

Mayoral Assistance 

272 

273 

274 

275 

276 

37 090 




37 090 

- 

Humanitatiun Fund 

292 

293 

294 

295 

296 

40 876 

40 876 

11 690 

150 000 

131 977 

111 464 

UML Community Fund 

297 

298 

299 

300 

301 

- 

37 090 

3 870 

120 000 

36 338 

124 623 







4 909 354 

1 077 966 

461 219 

270 000 

487 418 

6 231 120 

PROVISIONS 

Audit fees 

277 





743 661 

1 398 273 



2 141 933 


Bad Debts 

282 





1 737 861 

1 290 521 



1 677 747 

1 350 635 

Accumulated Leave 

287 





784 039 

594 790 



939 931 

438 898 







3 265 561 

3 283 584 

- 

- 

4 759 612 

1 789 533 
















30 


UMLALAZI MUNICIPALITY 
APPENDIX B 


EXTERNAL LOANS AND INTERNAL ADVANCES 
FOR THE YEAR ENDED 30 JUNE 2007 


Balance at 
2006/06/30 


Received 
during the 
year 


Redeemed or 
written off 
during the 
year 
R 


Balance at 
2007/06/30 


EXTERNAL LOANS 

Local Registered Stock 


Issued 


Cert No Redeemable 


1974 ( 5 ) 9 % 

170 

2005 

198 

199 

200 

39 673 

- 

39 673 

1968 ( 5 ) 10 % 

172 

2005 

201 

202 

203 

395 225 

- 

395 225 

1988 ( 5 ) 10 % 

174 

2010 

204 

205 

206 

500 000 

- 

500 000 


Matured stock 
loans 


Annuity loans 
( Refer to Note 4 ) 

INTERNAL ADVANCES TO BORROWING 
SERVICES 

Consolidated Capital Development Fund 
Loan Redemption Fund 
Public Improvement Fund 


210 


207 


211 


208 


212 


209 


934 898 

- 

934 898 

- 

5 102 

. 

5 102 

. 

940 000 

- 

940 000 

- 


1 019 210 

39 700 

420 640 

638 270 


1 959 210 

39 700 

1 360 640 

638 270 


213 

214 

215 

7 770 092 

1 645 115 

1 778 205 

7 637 003 

219 

220 

221 

606 898 

- 

606 898 

- 

216 

217 

218 

14 611 036 

4 145 968 

2 056 445 

16 700 560 




22 988 026 

5 791 084 

4 441 548 

24 337 562 


UMLALAZI MUNICIPALITY 
APPENDIX C 

ANALYSIS OF FIXED ASSETS 
FOR THE YEAR ENDED 30 JUNE 2007 


Expenditure 

Servlce 

Budget 

Balance at 

Expenditure 

Redeemed, 

2005 


2007 

2006/06/30 

2007 

transferred 
or written off 

R 


R 

R 

R 

R 


RATE AND GENERAL 




T 1 379 866 

62 030 755 

SERVICES 

17 979 456 

70 361 870 

9 993 974 

907 296 


T 978 833 


26 521 397 

Community services 




15 873 940 

31 144 142 

1 375 802 


880 905 









T 

155113 

1 016 037 

Mayoral Office 

18 

80 

81 

38 000 

1 293 278 

31 415 


1899 










(52 274) 

24 662 

Municipal Manager 

19 

83 

84 


24 662 

40 449 











T 

229 209 

642 578 

Corporate Services 

20 

86 

87 

41 000 

663 090 

44 802 


21013 









T 

554 024 

554 024 

Furniture & Equipment 


89 

90 


554 024 













(19 183 905) 

42 580 

Land 

23 

94 

95 


42 580 

646 531 


38 686 









T 

361151 

361151 

Refuse Dump 


97 

98 


361 151 












T 

3 376 

10 702 

Refuse 


100 

101 


3 376 












T 

251 174 

251 174 

Equipment 


103 

104 


251 174 












T 

6 950 112 

6 972 167 

Town Hall & Offices 

27 

106 

107 

357 000 

7 258 905 

16 850 


52 845 









T 

(209 784) 

134 678 

Town Planning 

28 

109 

110 


134 678 

116 180 


135 988 


Buildings 


198 


123 550 














(427 848) 

1 043 889 

Staff Housing 

29 

112 

113 

80 000 

1 146 966 

70 954 


8 618 









T 

2 936 964 

1 593 306 

Libraries 

30 

115 

116 

52 000 

3 252 028 

22 019 


15 712 









T 

552 993 

552 993 

Recreation Grounds 


118 

119 


552 993 












T 

370 748 

178 480 

Council General 

32 

121 

122 

14 342 090 

1 364 277 



44 345 









T 

88 591 

88 591 

Sunnydale Hall 


124 

125 


88 591 












T 

254 224 

1 582 120 

Traffic 

34 

127 

128 

279 000 

1 999 695 

176 679 


129 215 









T 

21368 

21 368 

Aerodrome 


130 

131 


21368 












T 

1 440 555 


Finance 





1 440 555 













(326 875) 

1 346 546 

CFO 

38 

142 

146 

123 000 


19 721 


9 954 










(687 783) 


Expenditure 

52 

143 

147 



38 580 


29 117 










(486 398) 


Revenue 

53 

144 

148 



62 671 


14 230 










(105 615) 


Testing Grounds 

36 

133 

134 

267 000 


12 654 












(220 820) 


Stores 

54 

145 

149 



2 433 


1306 









T 

595 754 

530 200 

Workshop 

39 

151 

152 

10 200 

756 056 



2 957 









T 

1 025 927 

1 025 927 

Public Conveniences 


154 

155 


1 025 927 












T 

3 304 

78 970 

Street Cleaning 

41 

157 

158 


74 787 












T 

4 993 374 

6 390 587 

Parks.Gardens & Est 

42 

160 

161 

36 100 

6 680 688 

34 193 


371 986 









T 

168 448 

400 241 

Swimming Pool 

43 

163 

164 

80 000 

399 698 

18 723 


2 021 









T 

82 868 

44118 

Caravan Park 


166 

167 


82 868 












T 

511407 

499 888 

Engineering Services 

45 

169 

170 

45 000 

536 306 

20 948 


784 









T 

1 129 450 

1 134 420 

Cemetries 

46 

172 

173 


1 134 420 



232 


31 

Balance at 
2006/07/30 

R 

78 068 682 

30 660 206 

1 167 681 
117 385 
457 670 

19 834 331 


272 798 
324 654 

1 637 150 
321 372 

949 184 

1 792 935 

336 642 
697 246 
534 839 
118 269 
221 947 
157 345 

71483 
1 349 521 
247 952 

45 063 
4 738 




T 401 033 


35 509 358 

Subsidised services 




2 105 516 

39 217 728 

8 618 172 


26 391 

47 408 476 









T 

415 188 


566 292 

Zld Historical Museum 

47 

175 

176 

22 000 

606 292 

21 329 


450 

211 982 









T 

8 844 


611916 

Fire Fighting 

48 

178 

179 


1 884 527 

549 842 


721 

2 424 804 


Health 

50 

184 

185 

15 000 


13 922 


(143 993) 
3 111 

154 804 









T 

1 903 742 


2 110 364 

Clinics 

49 

181 

182 

148 316 

2 116 816 

91 174 


1 296 

302 952 

32 220 786 

Roads & Streets 

51 

187 

188 

1 920 200 

34 610 093 

7 941 906 


(1 782 748) 
20 814 

44 313 933 

43 758 

HOUSING 





43 758 




43 758 

1 43 758 

Sub-economic housing 

5 

77 

78| d 

1 43 758 1 


E 


1 43 7581 

15 348 120 

TRADING SERVICES 




1 017 000 

17 136 457 

1 503 098 

T 

(1 379 867) 
303 136 

19 716 286 










(0) 


83 231 

Cane Farm 


196 

197 


74 374 


T 

32 251 

74 374 

1 192 006 

Refuse 

1 

74 

75 

488 000 

1 684 002 

397 963 


261 996 

1 787 718 

2 567 830 

Chalet Park 

2 

190 

191 


2 567 830 



(14 681) 

2 582 511 

11 505 053 

Electricity 

3 

193 

194 

529 000 

12 810 252 

1 105 135 


(1 397 436) 
41 140 

15 271 684 







50 590 716 



1 

50 590 715 

51 223 698 

PUBLIC 








1 


1 51 223 698 IIMPROVEMENT FUND 

70 

71 

72 


50 590 716 


L 


50 590 715 


128 646 331 TOTAL FIXED ASSETS 


Less : 

Loans redeemed and 
other capital receipts 
Loans redeemed and 

advances repaid 20 

Contributions from 

operating income 21 

Grants and subsidies 22 

Public contributions 23 

Renewals fund 24 

Contributions from 

reserves 25 

Insurance 26 

Endowments 27 

Proceeds sale of assets 28 


T 0 


18 996 456 

138 132 800 

11 497 073 

1 210 432 

148 419 441 

71 715 206 

48 661 082 

42 682 041 

77 694 247 


42 643 298 

8 492 091 

7 691 872 

43 443 516 


923 372 



923 372 


26 918 461 

40 096 411 

34 988 613 

32 026 259 


906 899 



906 899 


16 961 



16 961 


167 



167 


23 943 



23 943 


43 951 



43 951 


238 155 

72 580 

1 556 

309 179 


NET FIXED ASSETS 


66 417 595 (37 164 009) (41 471 608) 70 725 194 






Actual 

2006 

R 


27 338 529 
43 087 268 


70 425 797 


25 793 961 
28 874 143 

5 133 886 

6 453 777 

1 467 592 


67 723 358 


65 720 


67 657 638 


2 768 159 


UMLALAZI MUNICIPALITY 32 


APPENDIX D 

ANALYSIS OF OPERATING INCOME AND EXPENDITURE 
FOR THE YEAR ENDED 30 JUNE 2007 



Actual 

Budget 


2007 

2007 


R 

R 

INCOME 



2 Government and Provincial grants and subsidies 

31 669 368 

34 825 131 

1 Income from tariffs, service charges, etc. 

58 357 071 

58 572 103 


90 026 439 93 397 234 


EXPENDITURE 


3 Salaries, wages and allowances 

28 542 115 

28 406 101 

4 General expenses 

42 692 931 

46 156 214 

5 Repairs and maintenance 

9 494 245 

9 726 890 

6 Capital charges 

7 441 566 

7 140 450 

7 Contributions to fixed assets 



8 Contributions 

1 376 092 

1 802 308 

Gross expenditure 

89 546 948 

93 231 963 

9 Amounts charged out 

1 75 736 

27 952| 

Net expenditure 

89 471 213 

93 204 011 

Surplus/(Deficit) 

1 555 226 

193 223 1 





UMLALAZI MUNICIPALITY 


33 


APPENDIX E 

DETAILED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2007 


2006 

2006 

2006 


2007 

2007 

2007 

2007 

Actual 

Actual 

Surplus/ 


Actual 

Actual 

Surplus/ 

Budget 

Income 

Expenditure 

(Deficit) 


Income 

Expenditure 

(Deficit) 

Surplus/ 

(Deficit) 

R 

R 

R 

RATE & GENERAL 

R 

R 

R 

R 

46 071 277 

45 331 419 

739 857 

SERVICES 

63 818 463 

63 450 963 

367 499 

(1 827 267) 




Community 





42 402 769 

35 222 141 

7 180 628 

services 

56 145 556 

48 616 688 

7 528 868 

5 255 637 


14 164 212 


14 164 212 

Assessment rates 

42 

20 168 866 

0 

20 168 866 

20 130 799 

85 000 

1 054 974 

(969 974) 

Mayoral office 

1 

0 

1 288 778 

(1 288 778) 

-1 282 255 


807 208 

(807 208) 

Municipal Manager 

2 

0 

871553 

(871 553) 

-1 098 779 

38 415 

2 026 645 

(1 988 230) 

CS : Administration 

3 

32 989 

2 129 785 

(2 096 796) 

-2 145 641 

39 225 

1 157 659 

(1 118 434) 

Town Hall & Offices 

4 

86 072 

1 320 774 

(1 234 702) 

-1 261 759 

179 315 

295 532 

(116 217) 

Staff Housing 

36 

150 015 

311367 

(161 352) 

-89 476 

16 852 

690 091 

(673 239) 

Libraries 

6 

12 756 

710 012 

(697 256) 

-739 651 

3 124 

17 480 

(14 356) 

Mun Sport Club 

7 

3 766 

17 025 

(13 258) 

-14 287 


174 233 

(174 233) 

Grant -in- Aid 

8 

0 

196 056 

(196 056) 

-202 000 

21 744 444 

12 982 940 

8 761 504 

Gen Exp-Council 

9 

28 756 679 

24 160 570 

4 596 109 

3 548 286 

1 353 445 

3 478 691 

(2 125 246) 

Traffic 

13 

2 301 346 

4 587 776 

(2 286 430) 

-2 469 025 


30 708 

(30 708) 

Disaster Management 

15 

0 

11420 

(11 420) 

-42 674 


8 736 

(8 736) 

Aerodrome 

16 

0 

47 549 

(47 549) 

-48 748 

1 673 403 

2 602 294 

(928 891) 

Finance 

18 

1 644 137 

2 929 510 

(1 285 374) 

-1 034 888 

791 

241 663 

(240 873) 

Stores 

19 

0 

340 223 

(340 223) 

-382 862 


256 280 

(256 280) 

Public Convenien 

39 

13 006 

263 186 

(250 180) 

-310 748 

7 363 

1248 348 

(1 240 985) 

Street Cleaning 

40 

945 

1351593 

(1 350 648) 

-1 388 896 


155 386 

(155 386) 

Recreation Grounds 

24 

0 

124 839 

(124 839) 

-132 816 

2 658 626 

5 895 186 

(3 236 561) 

Parks,Gardens,Est 

25 

2 665 887 

5 922 583 

(3 256 696) 

-3 737 249 

22 228 

625 547 

(603 319) 

Swimming Pools 

26 

90 324 

619 380 

(529 056) 

-765 300 

4 834 

55 913 

(51 079) 

Caravan Park 

27 

11 911 

27 315 

(15 403) 

-43 354 

298 083 

689 724 

(391 641) 

ES: Administration 

30 

140 870 

523 575 

(382 705) 

-420 950 

113 409 

164 093 

(50 684) 

Cemetries 

31 

65 987 

134 933 

(68 946) 

-91 339 


302 822 

(302 822) 

Workshop 

33 

0 

335 738 

(335 738) 

-339 756 


259 988 

(259 988) 

Buildings 

34 

0 

391 149 

(391 149) 

-380 995 


Subsidised 

2 216 596 9 245 435 (7 028 839) services 5 959 647 13 872 315 (7 912 668) (7 833 283) 


60 953 

417 280 

1 133 537 

604 825 

298 729 

912 410 

1 213 529 

1 877 408 

4 943 359 

(237 775) 
(912 410) 
(796 249) 
(743 871) 
(4 338 534) 

Zld Hist Museum 

Fire Fighting 

Public Health 

Clinic 

Roads and Streets 

5 

14 

20 

21 

32 

72 325 

0 

958 274 

1 858 572 

3 070 476 

323 847 

1 284 377 

1 512 966 

2 338 817 

8 412 308 

(251 522) 
(1 284 377) 
(554 692) 
(480 245) 
(5 341 832) 

-274 086 

-1 324 036 

-657 455 

-618 409 

-4 959 297 

1 451 912 

863 844 

588 068 

Economic 

services 


1 713 260 

961 961 

751 299 

750 379 

1 1 451 912 1 

1 863 844 1 

1 588 068 1 

Testing Grounds 

17 

1 1 713 260 

1 9619611 

1 751 299 1 

1 750 379| 

50 090 

61 145 

(11055) HOUSING 


53 277 

59 570 

•6 293 

2 931 

24 797 

24 304 

493 

Gingindlouv Housing 

10 

26 642 

23 795 

2 847 

2 686 

20 080 

36 418 

(16 338) 

Mpushini Park 

11 

21 184 

35 365 

(14 181) 

-4 729 

5 213 

423 

4 790 

Sunnydale Three 

12 

5 451 

410 

5 041 

4 974 

24 304 430 

22 265 074 

2 039 356 

TRADING 

SERVICES 


26 154 699 

25 960 679 

194 020 

2 017 559 

295 672 

139 843 

155 828 

Chalet Park 

28 

313 343 

117 924 

195 419 

149 828 

3 349 676 

2 690 141 

659 535 

Refuse Removal 

41 

4 566 447 

4 467 412 

99 035 

-45 454 

1 901 223 

14 305 426 

(12 404 203) 

Electricity : Administration 

37 

1 965 153 

15 834 625 

(13 869 472) 

-12 609 807 

18 757 860 

5 129 663 

13 628 196 

Electricity : Distribution 

38 

19 309 756 

5 540 718 

13 769 038 

14 522 992 

70 425 797 

67 657 638 

2 768 159 

TOTAL 


90 026 439 

89 471 213 

555 226 

193 223 


Appropriations for this 
(1 103 337) year (Refer to Note 17) 


•3 369 909 


Net surplus/{deficit) for 
1 664 822 the year 

Accumulated surplus/ 

1621800 (deficit) beginning of year 4998 


(2 814 682) 
3 286 622 


Accumulated surplus/ 

3 286 622 (deficit) end of year 


471 940 


4998 





UMLALAZI MUNICIPALITY 


34 


APPENDIX F: STATISTICAL INFORMATION 
FOR THE YEAR ENDED 30 JUNE 2007 


a General Statistics 

i Population 

ii Valuation of "taxable" Property 
Valuation of "non taxable" Property 

iii Valuation of residential property 
Valuation of commercial property 

iv Number of residential properties 
Number of commercial properties 

V Assessment rates: Cent/Rand: 

Eshowe 

Mtunzini 

Gingindlovu 

vi Number of employees of the local authority 


2007 


220 213 
181 022 550 
12 493 700 
142 588 200 
33 744 250 
6 723 
218 

15.77 

6.10 

15.06 

278 


2006 


220 213 
169 609 650 
12 493 700 
131 267 300 
33 675 250 
6 672 
216 

14.81 

5.73 

14.15 

289 


Electricity Statistics 




i 

Units bought/generated 

66 177 657 

54 161 400 


ii 

Units sold 

53 675 091 

48 980 286 


iii 

Units lost in distribution (i-ii) 

12 502 566 

5 181 114 


iv 

Units lost in distribution, as a % of (i) 

18.89% 

9.57% 


V 

Cost per unit sold in cents (operating expenditure divided by ii) 

0.36 

0.35 

Sundry Statistics 



i 


Area km^ 

2 300 

2 300 

ii 


Previous election numberof registered voters 

92 304 

92 659 



Previous election % poll 

54 

52 

iii 


Fire service/ambulance service/security department 





Units (Stations) 

1 

1 



Number of employees (excluding administrative personnel) 

23 

20 

iv 


Parks and Recreations 





Number of developed parks/are (km^) of developed parks 

7 

6 



Number of swimming pools 

- 

2 



Number of tennis courts/rugby fields etc. 

- 

9 



Number of soccer fields in rural areas 

9 

22 

V 


Licences issued 





Vehicle registration 

44 000 

44 000 



Other 

10 210 

10 210 

vi 


Library 





Books issued 

65 000 

73 004 

vii 


Cleansing 





Refuse removed and dumped: tonnage 

19.22 

18 047 

viii 


Roads and Works 





Kilometre roads constructed/repaired 

5.50 

2.2 

ix 


Flousing 





Number of houses 

525 

- 



Number of people accommodated 

450 

- 



Number of people on waiting list 

6 000 

6 000