Adjustment Budget 2018/19 2020/21tsantsabane.gov.za/wp-content/uploads/2019/06/... · KPI’s –...

TSANTSABANE MUNICIPALITY

Adjustment Budget

2018/19– 2020/21 Adjusted Medium Term Revenue and

Expenditure Framework

Table of Contents

Table of Contents ................................................................................................................... 2

Glossary ................................................................................................................................. 3

PART 1 – ADJUSTMENT BUDGET ....................................................................................... 4

Section 1 – Mayor’s Report .................................................................................................... 5

Section 2 - Budget Related Resolutions ............................................................................... 11

Section 3 – Executive Summary ........................................................................................... 12

Section 4 – Adjustment budget tables .................................................................................. 19

PART 2 – SUPPORTING DOCUMENTATION ..................................................................... 19

Section 5 – Measurable performance objectives and indicators ........................................... 19

Section 6 – Budget related policies....................................................................................... 22

Section 7 – Overview of budget assumptions ....................................................................... 22

Section 8 – Funding compliance ........................................................................................... 22

Section 9 – Overview of budget funding ............................................................................... 23

Section 10 _Expenditure on allocation and grants programmes……………………………….23

Section 11_ Allocations and grants made by the Municipality…………………………….24-25

Section 12 – Councillor Allowances and employee benefits ................................................. 27

Section 13 – Monthly targets for revenue, expenditure and cash flow .................................. 29

Section 14 – Adjustments to the quarterly service delivery and budget implementation plans – internal department 29

Section 15 – Annual budgets and service delivery agreements – municipal entities and other external mechanisms ................................................................................................... 29

Section 16 _Contracts having future budgetary implication ………………………………… 26-27

Section 17 – Capital expenditure details ............................................................................... 29

Summary. ............................................................................................................................. 30

Section 18 – Quality certification .......................................................................................... 31

Glossary

Adjustments Budget – Prescribed in section 28 of the MFMA. The formal means by which a municipality may revise its annual budget during the year.

Allocations – Money received from Provincial or National Government or other municipalities or public donations.

Budget – The financial plan of the Municipality.

Budget Related Policy – Policy of a municipality affecting or affected by the budget, examples include tariff policy, rates policy and credit control and debt collection policy.

Capital Expenditure - Spending on assets such as land, buildings and machinery. Any capital expenditure must be reflected as an asset on the Municipality’s balance sheet.

Cash flow statement – A statement showing when actual cash will be received and spent by the Municipality. Cash payments do not always coincide with budgeted expenditure timings. For example, when an invoice is received by the Municipality it is shown as expenditure in the month it is received, even though it may not be paid in the same period.

DORA – Division of Revenue Act. Annual legislation that shows the total allocations made by national to provincial and local government.

Equitable Share – A general grant paid to municipalities. It is predominantly targeted to help with free basic services.

Fruitless and wasteful expenditure – Expenditure that was made in vain and would have been avoided had reasonable care been exercised.

GFS – Government Finance Statistics. An internationally recognised classification system that facilitates like for like comparison between municipalities.

GRAP – Generally Recognised Accounting Practice. The new standard for municipal accounting.

IDP – Integrated Development Plan. The main strategic planning document of the Municipality

KPI’s – Key Performance Indicators. Measures of service output and/or outcome.

MFMA – The Municipal Finance Management Act – No. 53 of 2003. The principle piece of legislation relating to municipal financial management.

MTREF – Medium Term Revenue and Expenditure Framework. A medium term financial plan, usually 3 years, based on a fixed first year and indicative further two years budget allocations. Also includes details of the previous and current years’ financial position.

Net Assets – Net assets are the residual interest in the assets of the entity after deducting all its liabilities. This means the net assets of the municipality equates to the "net wealth" of the municipality, after all assets were sold/recovered and all liabilities paid. Transactions which do not

meet the definition of Revenue or Expenses, such as increases in values of Property, Plant and Equipment where there is no inflow or outflow of resources are accounted for in Net Assets.

Operating Expenditure – Spending on the day to day expenses of the Municipality such as salaries and wages.

Rates – Local Government tax based on the assessed value of a property. To determine the rates payable, the assessed rateable value is multiplied by the rate in the rand.

SDBIP – Service Delivery and Budget Implementation Plan. A detailed plan comprising quarterly performance targets and monthly budget estimates.

Strategic Objectives – The main priorities of the Municipality as set out in the IDP. Budgeted spending must contribute towards the achievement of the strategic objectives.

Unauthorised expenditure – Generally, spending without, or in excess of, an approved budget.

Virement – A transfer of budget.

Vote – One of the main segments of a budget. The structure is for reporting requirements and links the accounting performance both to the IDP and to the responsible officials.

The vote structure at Tsantsabane Municipality is made up as follows:

Refer to the next page

PART 1 – ADJUSTMENT BUDGET

Section 1 – Mayor’s Report

It is with great pleasure that I present the 2018/19 Adjustment Budget to Council for consideration.

The reason for the tabling of an adjustment budget is fully disclosed in the executive summary of the adjustment budget documentation. The adjustments were mainly necessitated by extra revenue that will collected and revenue that will not be collected from services as well as adjustments required due to over expenditure on votes and under expenditure of capital projects.

Vote 1 - EXCECUTIVE AND COUNCIL

1.1 - COUNCIL GENERAL

1.2 - MAYOR

1.3 - MUNICIPALMANAGER

Vote 2 - FINANCE AND ADMINISTRATION

2.1 - BUDGET AND TREASURY

2.2 - RATES AND TAXES

2.3 - CORPORATE SERVICES

2.4 - HUMAN RESOURCE

2.5 - MUNICIPAL PROPERTY(PRPOPERT SERVICES)

2.6 - SECURITY SERVICES

Vote 3 - COMMUNITY & SOCIAL SERVICES

3.1 - CEMETRY

3.2 - LIBRARY

Vote 4 - SPORT AND RECREATION

4.1 - CARAVAN PARK

4.2 - PARKS AND RECREATION

4.3 - SWIMMING POOL

Vote 5 - PUBLIC SAFETY

5.1 - FIRE FIGHTING

5.2 - TRAFFIC

Vote 6 - ROAD TRANSPORT

Vote 7 - ELECTRICITY DISTRIBUTION

Vote 8 - WATER DISTRIBUTION

Vote 9 - WASTE WATER

Vote 10 - WASTE MANAGEMENT

Vote 11 - HOUSING

Vote 12 - PLANNING AND DEVELOPMENT

12.1 - COMMONAGE

12.2 - TOWN PLANNING

12.3 - PROJECT MANAGEMENT UNIT

Vote 13 - OTHER

Council is still committed to ensure high quality basic services are provided without putting strain on the consumer by means of excessive rates and tariff increases.

The main adjustments proposed in this adjustment budget are:

Operating Budget: Revenue

1) Increase of R 44 510 000 in revenue due to the following –

i. Property rates : R5 924 000

ii. Electricity service charge : R22 508 000

iii. Water service charge :R11 001 000

iv. Other revenue : R5 078 000

2) An increase in operating expenditure amounting to R44 836.000. This increase is mainly as a result of the following –

i. An increase in employee related costs amounting to R 6,768 million. a. An increase in employee related costs amounting to R 5,026 million. This increase could mainly be attributed to the Projects management unit and employees at Sewer that were appointed during the current year but not budgeted for. Councillors Travel allowances and 3G allowance not budgeted under Remuneration of Councillors.

ii. An increase in bulk services : Electricity R 2,338 million.

: Water R 6,626 million.

iii. An increase in General Expenditure

iv. Finance charges of R 7,001 million not budgeted for.

v. Decrease in non-cash items(depreciation) : R 64.000

vi. Decrease in contracted services : R 2,599 million

vii. Decrease in other material : R 4,265 million

viii. Increase in other expenditure : R 29 033 million

Breakdown for other expenditure is as follows:


The net effect from these adjustments is that the projected operating surplus decreases from R 1,668.000 to R1, 342.000.

Capital Budget

There is an increase of R1000 000 in capital due to the INEP grant that was received and was not budgeted for. The grant will be used to fund electricity master Plan.

The MIG allocation for the 2018/19 financial year amounts to R14,546 million. At the end of December 2018, R1,641 million or 11,29% was spent. The WSIG allocation for the current year amounts to 4 000 million and 1,423 or 35,60 was spent. INEP spending amount to R 287 500 which is 29% spending of the grant


Other Expenditure By Type

Collection costs – – – – – – – – – – –

Contributions to 'other' prov isions – – – – – – – – – – –

Consultant fees – – – – – – – – – – –

Audit fees – – – – – – – – – – –

General ex penses 3,5 6,920 – – – – – 148 148 7,068 5,551 4,904

Operating Leases 5,530 – – – – – 7,118 7,118 12,648 3,474 3,657

Travel and Subsistence 795 – – – – – 585 585 1,380 462 462

Advertising, Publicity and Marketing 663 – – – – – 4,091 4,091 4,754 465 465

Communication 720 – – – – – 300 300 1,020 291 291

Entertainment 30 – – – – – (6) (6) 24 33 33

External Computer Service 1,896 – – – – – 1,954 1,954 3,850 1,998 2,098

Bank Charges, Facility and Card Fees 349 – – – – – 8,715 8,715 9,064 349 367

Commission 1,154 – – – – – 5,965 5,965 7,119 571 611

Insurance Underwriting 136 – – – – – 287 287 423 95 1,111

Licences 906 – – – – – (124) (124) 782 1,007 1,007

Fines and Penalties – – – – – – – – – – –

– –

– –

– –

– –

– –

– –

– –

– –

– –

– –

– –

Total Other Expenditure 1 19,099 – – – – – 29,033 29,033 48,132 14,297 15,006

Repairs and Maintenance 14

Employ ee related costs – – – – – – – – – – –

Other materials 7,504 – – – – – (4,265) (4,265) 3,239 7,909 8,344

Contracted Serv ices – – – – – – – – – – –

Other Ex penditure – – – – – – – – – – –

Total Repairs and Maintenance Expenditure 15 7,504 – – – – – (4,265) (4,265) 3,239 7,909 8,344

Choose name from list - Table B5 Adjustments Capital Expenditure Budget by vote and funding -

Budget

Year +1

2019/20

Budget

Year +2

2020/21

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

5 6 7 8 9 10 11 12

R thousands A A1 B C D E F G H

Capital expenditure - Vote

Multi-year expenditure to be adjusted 2

Vote 1 - EXCECUTIVE AND COUNCIL 40 – – – – – – – 40 150 150

Vote 2 - FINANCE AND ADMINISTRATION – – – – – – – – – – –

Vote 3 - COMMUNITY & SOCIAL SERVICES 1,243 – – – – – – – 1,243 2,185 1,989

Vote 4 - SPORT AND RECREATION – – – – – – – – – – –

Vote 5 - PUBLIC SAFETY – – – – – – – – – – –

Vote 6 - ROAD TRANSPORT 18,546 – – – – – – – 18,546 14,765 15,369

Vote 7 - ELECTRICITY DISTRIBUTION – – – – – – – – – – –

Vote 8 - WATER DISTRIBUTION – – – – – – – – – – –

Vote 9 - WASTE WATER – – – – – – – – – – –

Vote 10 - WASTE MANAGEMENT – – – – – – – – – – –

Vote 11 - HOUSING – – – – – – – – – – –

Vote 12 - PLANNING AND DEVELOPMENT – – – – – – – – – – –

Vote 13 - OTHER – – – – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –

Capital multi-year expenditure sub-total 3 19,829 – – – – – – – 19,829 17,100 17,508

Single-year expenditure to be adjusted 2

Vote 1 - EXCECUTIVE AND COUNCIL – – – – – – – – – – –


Vote 3 - COMMUNITY & SOCIAL SERVICES – – – – – – – – – – –



Vote 6 - ROAD TRANSPORT – – – – – – 1,000 1,000 1,000 – –



Vote 9 - WASTE WATER – – – – – – – – – – –


Vote 11 - HOUSING – – – – – – – – – – –


Vote 13 - OTHER – – – – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –

Capital single-year expenditure sub-total – – – – – – 1,000 1,000 1,000 – –

Total Capital Expenditure - Vote 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508

Capital Expenditure - Functional

Governance and administration 1,283 – – – – – – – 1,283 2,335 2,139

Ex ecutiv e and council – – – – – – – – – – –

Finance and administration 1,283 – – – – – – – 1,283 2,335 2,139

Internal audit – – – – – – – – – – –

Community and public safety – – – – – – – – – – –

Community and social serv ices – – – – – – – – – – –

Sport and recreation – – – – – – – – – – –

Public safety – – – – – – – – – – –

Housing – – – – – – – – – – –

Health – – – – – – – – – – –

Economic and environmental services 14,546 – – – – – – – 14,546 14,765 15,369

Planning and dev elopment – – – – – – – – – – –

Road transport 14,546 – – – – – – – 14,546 14,765 15,369

Env ironmental protection – – – – – – – – – – –

Trading services 4,000 – – – – – 1,000 1,000 5,000 – –

Energy sources – – – – – – 1,000 1,000 1,000 – –

Water management 4,000 – – – – – – – 4,000 – –

Waste w ater management – – – – – – – – – – –

Waste management – – – – – – – – – – –

Other – – – – – – – – – – –

Total Capital Expenditure - Functional 3 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508

Funded by:

National Gov ernment 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369

Prov incial Gov ernment – – – – – – – – – – –

District Municipality – – – – – – – – – – –

Other transfers and grants – – – – – – – – – – –

Transfers recognised - capital 4 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369

Public contributions & donations – – – – – – – – – – –

Borrowing – – – – – – – – – – –

Internally generated funds 1,283 – – – – – – – 1,283 2,335 2,139

Total Capital Funding 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508

Description Ref

Budget Year 2018/19

Funding and Cash flows

Council should note that this adjustment budget is not funded.

Cashflow statement R’000)

Tsantsabane Municipality continues to experience serious cash flow problems. The municipality has to implement turnaround strategy to stabilise cash flow.

Unforeseen and unavoidable expenditure

There was no unforeseen and unavoidable expenditure approved by the Municipal Manager and Mayor and incorporated into this adjustment budget since the original approved budget.

Changes to allocations and grant adjustments

Changes to expected grant expenditure are reflected below. Full details regarding income and allocations are disclosed in documentation forms SB7 to SB9.

NC085 Tsantsabane - Table B7 Adjustments Budget Cash Flows -

Budget

Year +1

2019/20

Budget

Year +2

2020/21

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10


CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates 35,502 5,924 5,924 41,426 37,419 39,478

Serv ice charges 140,233 33,509 33,509 173,742 154,523 170,735

Other rev enue 11,500 6,077 6,077 17,577 12,121 14,042

Gov ernment - operating 1 40,760 – 40,760 43,874 46,938

Gov ernment - capital 1 20,312 – 20,312 17,100 17,508

Interest 550 – 550 580 612

Div idends – –

Payments

Suppliers and employ ees (198,300) (39,109) (39,109) (237,409) (208,932) (221,447)

Finance charges (7,001) (7,001) (7,001)

Transfers and Grants 1 – –

NET CASH FROM/(USED) OPERATING ACTIVITIES 50,557 – – – – – (601) (601) 49,956 56,685 67,866

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE 1,000 – 1,000 8,000 8,000

Decrease (Increase) in non-current debtors (2,803) – (2,803) (2,954) (3,117)

Decrease (increase) other non-current receiv ables (9,006) – (9,006) (9,493) (10,015)

Decrease (increase) in non-current inv estments – –

Payments

Capital assets (20,312) – (20,312) (17,100) (17,508)

NET CASH FROM/(USED) INVESTING ACTIVITIES (31,121) – – – – – – – (31,121) (21,547) (22,640)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – –

Borrow ing long term/refinancing – –

Increase (decrease) in consumer deposits 24 – 24 25 25

Payments

Repay ment of borrow ing – –

NET CASH FROM/(USED) FINANCING ACTIVITIES 24 – – – – – – – 24 25 25

NET INCREASE/ (DECREASE) IN CASH HELD 19,460 – – – – – (601) (601) 18,859 35,164 45,252

Cash/cash equiv alents at the y ear begin: 2 9,439 – 9,439 28,899 64,063

Cash/cash equiv alents at the y ear end: 2 28,899 – – – – – (601) (601) 28,298 64,063 109,315

Description Ref

Budget Year 2018/19

Summary

An uncompromising commitment to quality service is a fundamental responsibility of the local government. Though we have not yet achieved all of the lofty goals that our citizens expect from us, we recognize and reaffirm our commitment that service delivery, service quality, and value must continuously be improved.

Council and management must do everything in their power to address service delivery requirements within limited financial means. All Councillors and officials need to go the extra mile. The debt collection and credit control is an enormous problem in Tsantsabane Municipality and needs serious attention.

There is a need to restore confidence of the majority of the community and that requires team work.

NC085 Tsantsabane - Supporting Table SB8 Adjustments Budget - expenditure on transfers and grant programme -

Budget Year

+1 2019/20

Budget Year

+2 2020/21

Original

Budget

Prior

Adjusted

Multi-year

capital

Nat. or Prov.

Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

2 3 4 5 6 7

R thousands A A1 B C D E F

EXPENDITURE ON TRANSFERS AND GRANT PROGRAM: 1

Operating expenditure of Transfers and Grants

National Government: 38,800 – – – – – 38,800 41,703 45,990

Local Gov ernment Equitable Share 35,385 – 35,385 38,823 42,678

Finance Management 2,415 – 2,415 2,880 3,312

Municipal Sy stems Improv ement – –

EPWP Incentiv e 1,000 – 1,000

– –

– –

Other transfers and grants [insert description] – –

Provincial Government: 1,194 – – – – – 1,194 1,394 1,394

Sport and Recreation 1,194 – 1,194 1,394 1,394

– –

– –

– –

Other transfers and grants [insert description] – –

District Municipality: – – – – – – – – –

[insert description] – –

– –

Other grant providers: – – – – – – – – –


– –

Total operating expenditure of Transfers and Grants: 39,994 – – – – – 39,994 43,097 47,384

Capital expenditure of Transfers and Grants

National Government: 19,312 – – – 1,000 1,000 20,312 15,542 16,178

Municipal Infrastructure Grant (MIG) 15,312 – 15,312 15,542 16,178

Regional Bulk Infrastructure 4,000 1,000 1,000 5,000

– –

– –

– –

Other capital transfers [insert description] – –

Provincial Government: – – – – – – – – –

Other capital transfers/grants [insert description] – –

– –

District Municipality: – – – – – – – – –


– –

Other grant providers: – – – – – – – – –


– –

Total capital expenditure of Transfers and Grants 19,312 – – – 1,000 1,000 20,312 15,542 16,178

Total capital expenditure of Transfers and Grants 59,306 – – – 1,000 1,000 60,306 58,639 63,562

Description Ref

Budget Year 2018/19

Recommendations

It is recommended that:

1) Council approves the adjustment budget as set out below.

2) And consider the adjustment budget for approval as baseline for 2019/20 draft budget.

3) Approve the baseline 2019/20 draft budget for advertisement and public participation as per approved 2019/20 IDP/Budget Process Plan

Section 2 - Budget Related Resolutions

ADJUSTMENT BUDGET 2018/19

The resolution tabled at Council for consideration with approval of the adjustment budget is:

RECOMMENDATION:

a) That the adjustment budget of Tsantsabane Municipality for the financial year 2018/19 as set out in the schedules contained in section 2 be approved:

(i) Table B1 Adjustments Budget Summary;

(ii) Table B2 Adjustments Budget Financial Performance (by standard classification);

(iii) Table B3 Adjustments Budget Financial Performance (by municipal vote);

(iv) Table B4 Adjustments Budget Financial Performance (revenue by source); and

(v) Table B5 Adjustments Budget Capital Expenditure (by municipal vote and funding source)

b) That it be noted that there are changes to the budget related policies that were approved:

• Property Rates Policy

c) That the following new policies be adopted by Council.

• Contract Management Policy


Section 3 – Executive Summary

Introduction

Tsantsabane Municipality experience serious cash flow problems. It is advised that new funding sources be exploited to fund the capital program and to settle all outstanding creditors older than 30 days (i.e. more own revenue or additional grant funding or the sale of land or the installation of pre-paid water meters).

The adopted turnaround strategy should be implemented.

Outstanding Debt

The total debt older than 120 days amounts to R184 842 212 or 88.61%. The outstanding debt increased as follows:

Total outstanding debt as at 31 December 2013 R118 077 078






In 2018 the debt increased with an amount of R38 330 128 or 19.58%. The Municipality will find it difficult to collect the debt that is outstanding for more than 121 days. Debt collection at the municipality is poor.

The average debt collection (billing vs collection only) from July 2018 to December 2018 was a mere 38,34%. The average debt collection based on the total outstanding debtors is 13%

Management should strive to maintain, and where possible increase accumulated reserves. This is however only possible if debt collection improves and regular credit control is enforced. We (Council and Management) need to work hand in hand to turn around Tsantsabane Municipality. This is expected from the community we serve.

Effect of the adjustment budget

The overall changes made to the 2018/19 budget can be best illustrated in the table below.


Operating Budget: Revenue

NC085 Tsantsabane - Table B1 Adjustments Budget Summary -

Budget

Year +1

2019/20

Budget

Year +2

2020/21

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

1 2 3 4 5 6 7 8


Financial Performance

Property rates 35,502 – – – – – 5,924 5,924 41,426 37,419 39,478

Serv ice charges 140,232 – – – – – 33,509 33,509 173,741 154,489 170,702

Inv estment rev enue 550 – – – – – – – 550 580 612

Transfers recognised - operational 40,810 – – – – – – – 40,810 43,930 46,938

Other ow n rev enue 12,450 – – – – – 5,078 5,078 17,528 20,066 22,042

Total Revenue (excluding capital transfers

and contributions)

229,544 – – – – – 44,510 44,510 274,054 256,484 279,772

Employ ee costs 81,810 – – – – (76) 5,103 5,026 86,837 79,590 83,550

Remuneration of councillors 3,699 – – – – – 1,665 1,665 5,364 3,899 4,113

Depreciation & asset impairment 17,053 – – – – – (64) (64) 16,989 17,974 18,963

Finance charges 0 – – – – – 7,001 7,001 7,001 – –

Materials and bulk purchases 63,390 – – – – 163 4,699 4,862 68,252 67,799 72,551

Transfers and grants – – – – – – – – – – –

Other ex penditure 61,923 – – – – 409 26,434 26,843 88,766 62,378 66,252

Total Expenditure 227,876 – – – – 496 44,837 45,333 273,208 231,640 245,429

Surplus/(Deficit) 1,668 – – – – (496) (327) (822) 846 24,844 34,343

Transfers recognised - capital 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369

Contributions recognised - capital & contributed assets – – – – – – – – – – –

Surplus/(Deficit) after capital transfers &

contributions

20,214 – – – – (496) 673 178 20,392 39,609 49,712

Share of surplus/ (deficit) of associate – – – – – – – – – – –

Surplus/ (Deficit) for the year 20,214 – – – – (496) 673 178 20,392 39,609 49,712

Capital expenditure & funds sources

Capital expenditure 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508

Transfers recognised - capital 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369


Borrow ing – – – – – – – – – – –


Total sources of capital funds 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508

Financial position

Total current assets 136,332 – – – – – – – 136,332 141,205 146,698

Total non current assets 663,188 – – – – – – – 663,188 698,337 736,745

Total current liabilities 167,553 – – – – – – – 167,553 162,911 171,872

Total non current liabilities 13,424 – – – – – – – 13,424 16,750 17,250

Community wealth/Equity 694,991 – – – – – – – 694,991 717,459 750,020

Cash flows

Net cash from (used) operating 50,557 – – – – – (601) (601) 49,956 56,685 67,866

Net cash from (used) inv esting (31,121) – – – – – – – (31,121) (21,547) (22,640)

Net cash from (used) financing 24 – – – – – – – 24 25 25

Cash/cash equivalents at the year end 28,899 – – – – – (601) (601) 28,298 64,063 109,315

Cash backing/surplus reconciliation

Cash and inv estments av ailable 9,000 – – – – – – – 9,000 9,477 9,998

Application of cash and inv estments 28,761 – – – – – (669) (669) 28,092 36,100 39,862

Balance - surplus (shortfall) (19,761) – – – – – 669 669 (19,092) (26,623) (29,863)

Asset Management

Asset register summary (WDV) – – – – – – – – – – –

Depreciation & asset impairment 17,053 – – – – – (64) (64) 16,989 17,974 16,989

Renew al of Ex isting Assets 19,829 – – – – – – – 19,829 17,100 19,829

Repairs and Maintenance – – – – – – – – – – –

Free services

Cost of Free Basic Serv ices prov ided 9,675 – – – – – – – 9,675 10,231 10,792

Rev enue cost of free serv ices prov ided – – – – – – – – – – 0

Households below minimum service level

Water: – – – – – – – – – – –

Sanitation/sew erage: – – – – – – – – – – –

Energy : – – – – – – – – – – –

Refuse: – – – – – – – – – – –

Budget Year 2018/19

Description

4) Increase of R44,510.000 in revenue due to the following –

i. Property rates : R5,924.000

ii. Electricity service charge :R22,508.000

iii. Water service charge :R11,001.000

iv. Other revenue :R5,078.

5) An increase in operating expenditure amounting to R 45,333 million. This increase is mainly as a result of the following –

i. An increase in employee related costs amounting to R 6,768 million.

ii. An increase in bulk services : Electricity R 2,338 million.

: Water R 6,626 million.

iii. An increase in General Expenditure

iv. Finance charges: R7, 001.000

v. Increase in other expenditure :R29 033 million

vi. Decrease in non-cash items(depreciation) :R64.000

vii. Decrease in contracted services :R2,599 million

viii. Decrease in other material :R4,265 million


Revenue and Expenditure by Municipal vote:

NC085 Tsantsabane - Table B3 Adjustments Budget Financial Performance (revenue and expenditure by municipal vote) -

Budget

Year +1

2019/20

Budget

Year +2

2020/21

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

[Insert departmental structure etc] 3 4 5 6 7 8 9 10


Revenue by Vote 1

Vote 1 - EXCECUTIVE AND COUNCIL 4 004 – – – – – – – 4 004 11 296 11 627

Vote 2 - FINANCE AND ADMINISTRATION 71 205 – – – – – 11 001 11 001 82 206 76 782 82 848

Vote 3 - COMMUNITY & SOCIAL SERVICES 1 232 – – – – – – – 1 232 1 434 1 436

Vote 4 - SPORT AND RECREATION 151 – – – – – – – 151 159 167

Vote 5 - PUBLIC SAFETY 1 118 – – – – – – – 1 118 1 178 1 243

Vote 6 - ROAD TRANSPORT 1 162 – – – – – – – 1 162 171 180

Vote 7 - ELECTRICITY DISTRIBUTION 54 133 – – – – – 22 508 22 508 76 640 57 056 60 194

Vote 8 - WATER DISTRIBUTION 49 942 – – – – – 11 001 11 001 60 943 55 873 62 072

Vote 9 - WASTE WATER 22 026 – – – – – – – 22 026 23 716 25 770

Vote 10 - WASTE MANAGEMENT 23 806 – – – – – – – 23 806 28 076 33 458

Vote 11 - HOUSING – – – – – – – – – – –

Vote 12 - PLANNING AND DEVELOPMENT 766 – – – – – – – 766 777 809

Vote 13 - OTHER – – – – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –

Total Revenue by Vote 2 229 544 – – – – – 44 510 44 510 274 054 256 517 279 805

Expenditure by Vote 1

Vote 1 - EXCECUTIVE AND COUNCIL 14 447 – – – – – 6 101 6 101 20 548 15 227 16 064

Vote 2 - FINANCE AND ADMINISTRATION 58 465 – – – – – 20 764 20 764 79 230 61 600 64 988

Vote 3 - COMMUNITY & SOCIAL SERVICES 5 777 – – – – – 7 416 7 416 13 194 6 089 6 424

Vote 4 - SPORT AND RECREATION 10 051 – – – – – (6 206) (6 206) 3 845 10 593 11 176

Vote 5 - PUBLIC SAFETY 5 696 – – – – – 429 429 6 125 6 004 6 334

Vote 6 - ROAD TRANSPORT 14 129 – – – – – 1 827 1 827 15 956 13 838 14 599

Vote 7 - ELECTRICITY DISTRIBUTION 46 574 – – – – – 7 530 7 530 54 103 50 074 53 851

Vote 8 - WATER DISTRIBUTION 33 408 – – – – – 5 121 5 121 38 529 35 212 37 148

Vote 9 - WASTE WATER 25 189 – – – – – 3 144 3 144 28 333 26 549 28 010

Vote 10 - WASTE MANAGEMENT 8 507 – – – – – (2 902) (2 902) 5 604 8 966 9 459

Vote 11 - HOUSING 1 189 – – – – – 1 116 1 116 2 305 1 253 1 322

Vote 12 - PLANNING AND DEVELOPMENT 1 050 – – – – – 434 434 1 484 1 106 1 167

Vote 13 - OTHER 3 456 – – – – – – – 3 456 3 636 3 836

Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –

Total Expenditure by Vote 2 227 937 – – – – – 44 775 44 775 272 712 240 148 254 379

Surplus/ (Deficit) for the year 2 1 606 – – – – – (265) (265) 1 342 16 370 25 427

Vote Description

Ref

Budget Year 2018/19

The capital budget has been adjusted from R19,829 million to R20,829 million.

Increase of R1000 000.

Budget

Year +1

2019/20

Budget

Year +2

2020/21

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

5 6 7 8 9 10 11 12












Vote 9 - WASTE WATER – – – – – – – – – – –


Vote 11 - HOUSING – – – – – – – – – – –


Vote 13 - OTHER – – – – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –











Vote 9 - WASTE WATER – – – – – – – – – – –


Vote 11 - HOUSING – – – – – – – – – – –


Vote 13 - OTHER – – – – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –







Internal audit – – – – – – – – – – –




Public safety – – – – – – – – – – –

Housing – – – – – – – – – – –

Health – – – – – – – – – – –



Road transport 14,546 – – – – – – – 14,546 14,765 15,369



Energy sources – – – – – – 1,000 1,000 1,000 – –

Water management 4,000 – – – – – – – 4,000 – –

Waste w ater management – – – – – – – – – – –

Waste management – – – – – – – – – – –

Other – – – – – – – – – – –

Total Capital Expenditure - Functional 3 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508

Funded by:

National Gov ernment 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369

Prov incial Gov ernment – – – – – – – – – – –

District Municipality – – – – – – – – – – –

Other transfers and grants – – – – – – – – – – –

Transfers recognised - capital 4 18,546 – – – – – 1,000 1,000 19,546 14,765 15,369


Borrowing – – – – – – – – – – –


Total Capital Funding 19,829 – – – – – 1,000 1,000 20,829 17,100 17,508

Description Ref

Budget Year 2018/19

The new projected forecasts for the MTREF are as follows:

OPERATING BUDGET AFTER ADJUSTMENTS (R’ 000)

Summary of total revenue and expenditure excluding capital transfers:

CAPITAL BUDGET (R’ 000)


TYPE 2019/20 2020/2021 2021/2022

REVENUE 274 054 256 517 279 805

EXPENDITURE 272 712 240 148 254 379

TOTAL 1 342 16 369 25 426

NC085 Tsantsabane - Table B5 Adjustments Capital Expenditure Budget by vote and funding -

Budget

Year +1

2019/20

Budget

Year +2

2020/21

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

5 6 7 8 9 10 11 12












Vote 9 - WASTE WATER – – – – – – – – – – –


Vote 11 - HOUSING – – – – – – – – – – –


Vote 13 - OTHER – – – – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –











Vote 9 - WASTE WATER – – – – – – – – – – –


Vote 11 - HOUSING – – – – – – – – – – –


Vote 13 - OTHER – – – – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – –







Internal audit – – – – – – – – – – –




Public safety – – – – – – – – – – –

Housing – – – – – – – – – – –

Health – – – – – – – – – – –



Road transport 14,546 – – – – – – – 14,546 14,765 15,369



Energy sources – – – – – – 1,0

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