Entire Document - Chris Hani District Municipality

Unspent Conditional Grants have been restated to correctly classify amounts now included in Creditors. Refer to
Note 32.3 on “Correction of Error” for details of the restatement.
The amount for Unspent Conditional Grants and Receipts are deposited in ring-fenced investment accounts until
utilised.
See Note 20 for the reconciliation of Grants from Other Spheres of Government.
Refer to Appendix “F” for more detail on Conditional Grants.
12. OPERATING LEASE LIABILITIES/PAYABLES
Operating Leases are recognised on the straight-line basis as per the requirements of GRAP 13. In respect of Noncancellable
Operating Leases the following liabilities have been recognised:
2009 2008
R
R
Balance at beginning of year 3 084 12 989
Operating Lease expenses recorded (654 990) (491 510)
Operating Lease payments effected 659 778 481 606
Total Operating Lease Liabilities 7 873 3 084
Operating Lease Liabilities have been restated to adhere to the disclosure provisions of GRAP 13. Refer to Note 31.1
on “Change in Accounting Policy” for details of the restatement.
12.1 Leasing Arrangements
The Municipality as Lessee:
Operating Leases relate to Property, Plant and Equipment with lease terms not longer than 5 years, with an option
to extend for a further period. All operating lease contracts contain market review clauses in the event that the
municipality exercises its option to renew. The municipality does not have an option to purchase the leased asset at
the expiry of the lease period.
12.2 Amounts payable under Operating Leases
At the Reporting Date the municipality had outstanding commitments under Non-cancellable Operating Leases for
Property, Plant and Equipment, which fall due as follows:
2009 2008
R
R
Buildings: 278 411 499 866
Up to 1 year 278 411 283 855
2 to 5 years - 216 011
More than 5 years - -
Other Equipment: 1 036 500 145 823
Up to 1 year 271 801 90 638
2 to 5 years 764 698 55 185
More than 5 years - -
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