MC B/4012/02/2013 [FS]: MONTHLY REPORT PERIOD ENDING 30 ... · 19 FEBRUARY 2013 AT 08:00 AT THE ACTIVITY ROOM 596 MC B/4012/02/2013 4.B.7 [FS]: MONTHLY REPORT PERIOD ENDING 30 NOVEMBER

MIDVAAL LOCAL MUNICIPALITY

MINUTES OF THE 1ST MAYORAL COMMITTEE MEETING OF 2013 HELD ON TUESDAY,

19 FEBRUARY 2013 AT 08:00 AT THE ACTIVITY ROOM

35

MC B/4012/02/2013 4.B.7 [FS]: MONTHLY REPORT PERIOD ENDING 30 NOVEMBER 2012

9/1/2/2 COMPETENCY: MAYORAL COMMITTEE RESOLVED That the financial report for the period ending 30 November 2012, be noted. [FS]


AGENDA OF THE 1ST MAYORAL COMMITTEE MEETING OF 2013 TO BE HELD ON TUESDAY,


596

MC B/4012/02/2013 4.B.7 [FS]: MONTHLY REPORT PERIOD ENDING 30 NOVEMBER 2012

9/1/2/2 COMPETENCY: MAYORAL COMMITTEE PURPOSE To submit the Monthly report of the Department of Finance for the period ending 30 November 2012. RECOMMENDATION That the financial report for the period ending 30 November 2012, be noted. REPORT In terms of Section 71 of the MFMA the Accounting Officer must, within 10 working days after the end of each month, submit a statement to the Mayor on the implementation of the budget and the financial state of affairs of the municipality. The following documents are attached as per the above requirements for the month 30 November 2012. Annexure “A” – In year report November 2012 – Schedule C Annexure “B” – Bank reconciliation Statement Annexure “C” – Actual borrowings Annexure “D” – Actual capital expenditure per vote Annexure “E” – Allocations received and expenditure on allocations Annexure “F” – Investments Annexure “G” – Actual Revenue per revenue source Annexure “H” – Monthly report on Expenditure in terms of section 66 of the MFMA Annexure “I” – Outstanding Debtors report Annexure “J” – Outstanding Contributions Annexure “K” – Summary Comparative Return Annexure “L” – Supply Chain Management Annexure “M ” – Water (purchases, sales and unaccounted) Annexure “N” – Electricity (purchases, sales and unaccounted) Annexure “O” – Actual expenditure per vote




597

COMMENTS: MEETING OF THE MUNICIPAL MANAGER AND HEADS OF DEPARTMENT: 22 JANUARY 2013

Resolved to Recommend

That the item be referred to the Section 80 Finance & Corporate Services Portfolio Committee.

COMMENTS: SECTION 80 FINANCE & CORPORATE SERVICES PORTFOLIO COMMITTEE: 05 FEBRUARY 2013

The recommendation is supported.




598

[FS]: IN YEAR MONTHLY STATEMENT REPORT: 30 NOVEMBER 2012

5/1/1 2012/13 EXECUTIVE SUMMARY

INTRODUCTION

This report is submitted in terms of Section 71(1) of the Local Government Municipal Finance

Management Act No. 56 of 2003 (MFMA). In terms of the Municipal Budget and Reporting Regulations, Schedule C, Section 3a (Mayors’

report) the Council’s budget is being implemented in accordance with the service delivery and budget implementation plan.

Budget Performance Analyses Revenue

2011/12 Budget Year 2012/13

Description Audited Outcome

Original Budget

Adjusted Budget

Monthly actual

Year TD actual

Year TD budget

YTD variance

YTD variance

Full Year Forecast

R thousands %

Revenue Standard

Governance and Administration – 130 083 – 13 665 79 769 45 201 25 568 47% –

Executive and Council – 3 519 – – 3 532 1 466 2 066 141% –

Budget and Treasury Office – 123 316 – 13 359 75 244 51 382 23 862 46% –

Corporate Services – 3 248 – 306 993 1 353 (360) - 27% –

Community and Public Safety – 36 772 – 2 069 3 203 15 322 (12 119) - 79% –

Community and Social Services – 10 448 – 46 272 4 353 (4 081) - 94% –

Sport and Recreation – 1 141 – 28 63 475 (412) - 87% –

Public Safety – 19 223 – 1 330 2 202 8 009 (5 807) - 73% –

Housing – – – – – – – – –

Health – 5 961 – 665 665 2 484 (1 819) - 73% –

Economic and Environmental Services – 29 951 – 275 1 306 12 480 (11 173) - 90% –

Planning and Development – 1 667 – 136 879 695 184 27% –

Road Transport – 25 085 – – – 10 452 (10 452) - 100% –

Environmental Protection – 3 199 – 138 428 1 333 (905) - 68% –

Trading Services – 536 453 – 47 465 198 899 223 522 (24 623) - 11% –

Electricity – 274 845 – 22 123 108 810 114 519 (5 709) - 5% –

Water – 133 937 – 13 698 56 200 55 807 393 1% –

Waste Water Management – 93 366 – 5 385 17 040 38 903 (21 862) - 56% –

Waste Management – 34 305 – 6 258 16 849 14 294 2 555 18% –

Other – – – – – – – – –

Total Revenue Standard

–

733 259

–

63 474

283 177

305 525

(22 347)

- 7%




599

In total the actual revenue is R283 177 000 versus ytd. budget of R305 525 000 resulting in a shortfall in revenue in comparison with the year-to date budget of R22 347 000 (-7%). This shortfall is mainly the result of a lower payment rate experienced over the first number of months of the 2012/2013 financial year. It is however anticipated that the payment/collection rate will pick up for the months to follow due to a more stringent control measures.

From a revenue source point of view, (Budget Statement Summary, Table C1) the following

apply:

2011/12 Budget Year 2012/13


Original Budget

Adjusted Budget

Monthly actual YearTD actual

YearTD budget

YTD variance

YTD variance

Full Year Forecast

Financial Performance

Property Rates – 135 847

– 12 597 63 223 56 603 6 620 12% –

Service Charges – 341 145

– 25 206 140 302 142 144 (1 841) - 1% –

Investment Revenue – 1 100 – 111 438

458 (21) - 5% –

Transfers recognised – operational – 68 352 –

17 927 45 340

28 480 16 860 59% –

Other own revenue – 91 194

–

7 165 36 815 37 997 (1 182) - 3% – Total Revenue (excluding capital transfers and contributions)

–

637 637

–

63 006

286 118

265 682

20 435

8%

Property Rates (12%) Budget ytd = R56 603 000. Actual ytd = R63 223 000. Variance = R6 620 000 (12%). The increase is contributed to the implementation of the approved 2012/2013 tariffs, as well as ratepayers paying for the full year in advance and a more effective collection control measures.

Service Charges (- 1%) Budget ytd = R142 144 000. Actual ytd = R140 302 000. Variance = (R1 841 000) (- 1%). The increase in tariffs seems to have an impact, and is regarded as the reason for the marginally negative variance of - 1%.

Investment Revenue (- 5%)

Budget ytd = R458 000. Actual ytd = R438 000. Variance = - R20 000 (- 5%). Interests on investments were calculated at an anticipated interest rate of 5.5% whilst the current actual rate stands at 4.7% per annum. Investments are still in a process of accumulating since 1 July 2012.




600

Transfers recognised (59%) Budget ytd = R28 480 000. Actual ytd = R45 340 000. Variance = R16 820 000 (59%). The

allocation / payment of operational grants is divided into basically 3 payments per annum (financial year) namely:

July 2012 R24 170 000 November 2012 R21 170 000 March 2013 – _________ R45 340 000 __________

Other own Revenue Sources (- 3%) Budget ytd = R37 997 000. Actual ytd = R36 815 000. Variance = - R1 182 000 (- 3%).

Revenue derived from this source consists of a number of various sources such as: traffic fines, rental of own facilities, etc. The under-achievement to budget on this Revenue is probably due to the contract for Traffic Fines Revenue that only became effective near the end of July 2012.

Expenditure

2011/12 Budget Year 2012/13


Original Budget

Adjusted Budget

Monthly actual

Year TD actual

Year TD budget

YTD variance

YTD variance

Full Year Forecast

R thousands %

Expenditure Standard

Governance and Administration

–

97 818

–

6 225

30 776

40 758

(9 982)

- 24%

–

Executive and Council – 15 747 – 1 103 6 763 6 561 202 3% –

Budget and Treasury Office – 39 796 – 2 541 11 372 16 582 (5 210) - 31% –

Corporate Services – 42 276 – 2 581 12 641 17 615 (4 974) - 28% –

Community and Public Safety

–

81 591

–

4 539

22 866

33 996

(11 131)

- 33%

–

Community and Social Services – 11 585 – 763 3 763 4 827 (1 064) - 22% –

Sport and Recreation – 18 019 – 1 163 4 254 7 508 (3 254) - 43% –

Public Safety – 44 577 – 2 269 13 063 18 574 (5 510) - 30% –

Housing – – – – – – – –

Health – 7 410 – 345 1 785 3 087 (1 302) - 42% –

Economic and Environmental Services – 73 313 – 2 742 10 401 30 547 (20 146) - 66% –

Planning and Development – 17 570 – 1 690 5 833 7 321 (1 488) - 20% –

Road Transport – 52 808 – 903 3 793 22 003 (18 211) - 83% –

Environmental Protection – 2 935 – 149 776 1 223 (447) - 37% –

Trading Services – 426 823 – 22 625 106 311 177 843 (71 532) - 40% –

Electricity – 251 275 – 13 211 67 582 104 698 (37 116) - 35% –

Water – 103 518 – 6 451 26 762 43 132 (16 371) - 38% –

Waste Water Management – 33 809 – 1 066 2 187 14 087 (11 900) - 84% –

Waste Management – 38 222 – 1 896 9 781 15 926 (6 145) - 39% –

Other – – – – – – – –




601

Total Expenditure Standard

– 679 546 – 36 132 170 353 283 144 (112 791) - 40% –

Surplus/ (Deficit) for the year – 53 714 – 27 343 112 824 22 381 90 443 404% –

Actual expenditure (R170 353 000) in comparison with the anticipated expenditure as per budget (R283 144 000) reveals an under-expenditure of 40% as at 30 November 2012, or the amount of R112 791 000.

Contribution towards provisions proportional are not yet accounted for which is representative of

R65 743 000 of the variances of R112 000 000. The semi-annual payment of loan charges falls due on 31 December 2012 of which the proportional amount (July – November) is R9 200 000.

The under expenditure of R112 791 000 consists of the following:

2011/12 Budget Year 2012/13


Original Budget

Adjusted Budget

Monthly actual

Year TD actual

Year TD budget

YTD variance

YTD variance

Full Year Forecast

R thousands %

Employee costs - 158 218 - 11 880 57 945 65 924 (7 980) -12% - Remuneration of Councillors - 8 401 - 621 3 109 3 500 (391) -11% - Depreciation & asset impairment - 106 398 - - - 44 332 (44 332) -100% - Finance charges - 15 635 - 4 26 6 515 (6 489) -100% - Materials and bulk purchases - 234 617 - 17 724 83 610 97 757 (14 147) -14% - Transfers and grants - - - - - - - - Other expenditure - 156 276 - 5 862 28 359 65 115 (36 757) -56% - TOTAL EXPENDITURE - 679 545 - 36 091 173 048 283 144 (110 096) -39% - -

2011/12 Budget Year 2012/13


Original Budget

Adjusted Budget

Monthly actual YearTD actual

YearTD budget

YTD variance

YTD variance

Full Year Forecast

Capital expenditure & funds sources

Capital expenditure – 194 730 – 2 094 8 351 81 138 (72 786) - 90% –

Capital transfers recognised – 47 311 – 1 784 7 103 19 713 (12 610) - 64% –

Public contributions & donations –

76 311 – – – 31 796

(31 796) - 100% –

Borrowing –

54 800 – 159

22 833

(22 675) - 99% –

Internally generated funds –

16 308 – 151 1 248

6 795

(5 705) - 84% –

Total sources of capital funds –

194 730 – 2 094 8 351 81 138 (72 786) - 90% –

Actual Capital expenses totals to R8 351 000 in comparison with an ytd. budget prediction of R81 138 000 (- 90%). Capital expenditure will increase as soon as the tender processes are dealt with and adjudicated to the successful bidders. Capital funding from external sources (loans) to the amount of R41 000 000 still need to be raised.




602

Debtors & creditors analysis 0-30 Days 31-60 Days

61-90 Days 91-120 Days

121-150 Dys

151-180 Dys 181 Dys-1 Yr

Over 1Yr Total

Debtors Age Analysis

Total By Revenue Source 38 905 6 886 5 465 4 234 72 913 – – – 128 403

Creditors Age Analysis

Total Creditors 36 538 – – – – – – – 36 538

Outstanding debtors totals to an amount of R128 493 000 as at 30 November 2012 of which 56.7% is in excess of 120 days.

Debtors by revenue source and per customer category consist of the following:

Description Budget Year 2012/13

0-30 Days

31-60 Days

61-90 Days

91-120 Days

121-150 Days

151-180 Days

181 Dys-1

Yr

Over 1Yr

R thousands

NT Code

Total

Debtors Age Analysis By Revenue Source

Rates 1200 8 031

1 205

1 024

15 413

25 673

Electricity 1300

8 883 454

426

5 641

15 404

Water 1400

11 244

2 332

1 469

19 627

34 673

Sewerage / Sanitation 1500

2 665

531

491 10 242

13 930

Refuse Removal 1600

2 572

491

478

7 065

10 607

Housing (Rental Revenue) 1700

Other 1900

5 509

1 872

1 576

19 158

28 115

Total By Revenue Source 2000

38 905

6 886

5 465

77 147

–

–

128 403

2011/12 - totals only Debtors Age Analysis By Customer Category

Government 2200 683 169 168 2 772 3 792

Business 2300

12 023 1 029 280

7 022

20 353

Households 2400

25 976 5 588 4 927 67 111 103 602

Other 2500

223 99

90 242 655 Total By Customer Category 2600

38 905 6 886 5 465 77 147

–

–

128 403




603

Creditor analyses per customer type consist of the following:

Description Budget Year 2012/13

0-30 Days

31-60 Days

61-90 Days

91-120 Days

121-150 Days

151-180 Days

181 Dys-1

Yr

Over 1Yr

R thousands

NT Code

Total

Creditors Age Analysis By Customer Type

Bulk Electricity 0100 13 778 13 778

Bulk Water 0200 6 358 6 358

PAYE Deductions 0300 1 667 1 667

VAT (output less input) 0400 1 050 1 050 Pensions / Retirement deductions 0500 2 084 2 084

Loan Repayments 0600 – –

Trade Creditors 0700

Auditor General 0800 797 797

Other 0900 10 803 10 803 Total By Customer Type

2600

36 538

–

–

–

–

–

–

–

36 538




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Documents

MC B/4012/02/2013 [FS]: MONTHLY REPORT PERIOD ENDING 30 ... · 19 FEBRUARY 2013 AT 08:00 AT THE ACTIVITY ROOM 596 MC B/4012/02/2013 4.B.7 [FS]: MONTHLY REPORT PERIOD ENDING 30 NOVEMBER