Entire Document - Chris Hani District Municipality

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2009 2008 Bank,Cash and Cash Equivalents Call Deposits 115 060 738 - Bank,Cash and Cash Equivalents Bank Balances 254 765 637 222 948 015 R 369 826 375 222 948 015 Total Financial Assets 416 301 812 277 026 806 FINANCIAL LIABILITIES: In accordance with IAS 39.09 the Financial Liabilities of the municipality are classified as follows (FVTPL = Fair Value through Profit or Loss): Financial Liabilities Classification Long-term Liabilities Annuity Loans Financial liabilities at amortised cost 7 652 081 8 626 446 Creditors Trade Creditors Financial liabilities at amortised cost 13 584 796 37 367 631 Retentions Financial liabilities at amortised cost 3 529 077 - Staff Bonuses Financial liabilities at amortised cost 1 578 152 1 541 442 Sundry Deposits Financial liabilities at amortised cost 8 335 8 335 Other Creditors Financial liabilities at amortised cost 4 499 696 9 218 176 Current Portion of Long-term Liabilities Annuity Loans Financial liabilities at amortised cost 974 365 927 415 R SUMMARY OF FINANCIAL LIABILITIES Financial Liabilities at Amortised Cost: Long-term Liabilities Annuity Loans 7 652 081 8 626 446 Creditors Trade Creditors 13 584 796 37 367 631 Creditors Retentions 3 529 077 - Creditors Staff Bonuses 1 578 152 1 541 442 Creditors Sundry Deposits 8 335 8 335 Creditors Other Creditors 4 499 696 9 218 176 Current Portion of Long-term Liabilities Annuity Loans 974 365 927 415 31 826 502 57 689 445 Total Financial Liabilities 31 826 502 57 689 445 40.2 Fair Value The Fair Values of Financial Assets and Financial Liabilities are determined as follows: • The Fair Value of Financial Assets and Financial Liabilities with standard terms and conditions and traded on active liquid markets is determined with reference to quoted market prices; • The management of the municipality is of the opinion that the carrying value of Financial Assets and Financial Liabilities recorded at amortised cost in the Annual Financial Statements approximate their fair values. The fair value of Financial Assets and Financial Liabilities were determined after considering the standard terms and conditions of agreements entered into between the municipality and other parties as well as the the current payment ratio’s of the municipality’s debtors. 40.3 Capital Risk Management The municipality manages its capital to ensure that the municipality will be able to continue as a going concern while delivering sustainable services to consumers through the optimisation of the debt and equity balance. The municipality’s overall strategy remains unchanged from 2008. 182
The capital structure of the municipality consists of debt, which includes the Long-term Liabilities disclosed in Note 4, Bank, Cash and Cash Equivalents and Equity, comprising Funds, Reserves and Accumulated Surplus as disclosed in Note 16 and the Statement of Changes in Net Assets. Gearing Ratio The gearing ratio at the year-end was as follows: 2009 2008 R R Debt 8 626 446 9 553 861 Bank, Cash and Cash Equivalents (254 765 637) (222 948 015) Net Debt (246 139 191) (213 394 154) Total Capital (114 858 911) (119 708 902) Net debt to total capital ratio 214.30% 178.26% Debt is defined as Long- and Short-term Liabilities, as detailed in Note 13. Total Capital includes all Funds and Reserves of the municipality, disclosed as Net Assets in the Statement of Financial Performance and Net Debt as described above. 40.4 Financial Risk Management Objectives Due to the largely non-trading nature of activities and the way in which they are financed, municipalities are not exposed to the degree of financial risk faced by business entities. Financial Instruments play a much more limited role in creating or changing risks that would be typical of listed companies to which the IAS’s mainly apply. Generally, Financial Assets and Liabilities are generated by day-to-day operational activities and are not held to manage the risks facing the municipality in undertaking its activities. The Directorate: Financial Services monitors and manages the financial risks relating to the operations through internal policies and procedures. These risks include interest rate risk, credit risk and liquidity risk. Compliance with policies and procedures is reviewed by the internal auditors on a continuous basis, and annually by external auditors. The municipality does not enter into or trade financial instruments for speculative purposes. Internal audit, responsible for initiating a control framework and monitoring and responding to potential risk, reports periodically to the municipality’s audit committee, an independent body that monitors the effectiveness of the internal audit function. 40.5 Significant Accounting Policies Details of the significant Accounting Policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of Financial Asset, Financial Liability and Equity Instrument are disclosed in the Accounting Policies to the Annual Financial Statements. 40.6 Market Risk The municipality’s activities expose it primarily to the financial risks of changes in interest rates (see Note 40.9 below). No formal policy exists to hedge volatilities in the interest rate market. 40.6.1 Foreign Currency Risk Management The municipality’s activities do not expose it to the financial risks of foreign currency and therefore has no formal policy to hedge volatilities in the interest rate market. 183
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Table of Contents PART ONE: INTRODU
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PART ONE INTRODUCTION AND OVERVIEW
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providing us with your comments, vi
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SPECIAL PROGRAMMES SUCH AS YOUTH, W
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1.3.4 Values • Respect and Divers
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1.4 OVERVIEW OF THE MUNICIPALITY Mp
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SMME Development The District funde
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Corporate Services Directorate Ayan
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NAME OF SCHEME NUMBER OF MEMBERS AS
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organisation, can be seen to be inf
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2.1.4.5 Power Track Vehicle Managem
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2.2.0.1 Introduction A huge allocat
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In the 2008/2009 financial year Wat
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Integrated Planning and Economic De
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The implementation of housing co-or
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Livestock Improvement (Marketing Fa
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Chris Hani Month events Measurable
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Percentage Complete 99,9% Budget Sp
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Regional/LED Strategy Measurable Ou
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Health and Community Services Direc
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Due to the success of this project
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In observing HIV/AIDS days the CHDM
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Budget 2008/09 Key Deliverables •
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Challenges& Proposed Solutions Meas
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Budget Spent R125 000 Stakeholder/
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2.4.4 Disaster Management UNIT This
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critical areas. 2.4.4.5 INCIDENTS O
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2.4.5 Fire and Emergency Services U
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Stakeholders/partners Challenges Me
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2.5.0.1 Introduction For the financ
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Key Deliverables • Asset identifi
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• The possible rescheduling/timin
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Project leader T. Somtombo/ M. Mash
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Measurable outcome Activities/Proje
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72 Good Governance
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Communication strategy The District
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Stakeholders/partners Challenges Me
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2.6.2 INTERNAL AUDIT Services UNIT
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Challenges Measurable outcome Execu
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The SPU coordinating committee and
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We would like to highlight and comm
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3.1 Introduction to the Annual Fina
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3.2 Audit Report to the Annual Fina
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APPENDIX A QUALITY MATURITY MODEL O
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3.4 MFMA - Requirements The audit r
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IRONPORT LICENSES STATUS BEFORE 200
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provide sufficient evidence to iden
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25. The mayor did not submit to cou
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No. Matter Y N •The audit committ
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Usefulness and reliability of repor
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The overall operating results for t
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5. ACCUMULATED SURPLUS The balance
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13. LONG-TERM RECEIVABLES Long-term
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3.8 STATEMENT OF FINANCIAL PERFORMA
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3.10 CASH FLOW STATEMENT FOR THE YE
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1.1 Changes in Accounting Policy an
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Management has considered all the o
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2.7 Heritage Assets Heritage assets
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The municipality did not perform im
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Based on management’s judgement,
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Cash includes cash-on-hand (includi
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5.5 Derecognition of Financial Asse
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7.3 Transitional Provisions The rec
Page 131 and 132: 9.2.8 Sale of Goods Revenue from th
Page 133 and 134: of performance bonuses only when th
Page 135 and 136: amount of the Municipality’s net
Page 137 and 138: Changes in Accounting Estimates are
Page 139 and 140: 2.1 Reconciliation of Provision for
Page 141 and 142: 4.3 Cash and Cash Equivalents 2009
Page 143 and 144: Description Land and Buildings Infr
Page 145 and 146: The movement in Intangible Assets i
Page 147 and 148: Study Loans In terms of the MFMA no
Page 149 and 150: Unspent Conditional Grants have bee
Page 151 and 152: The municipality provides certain p
Page 153 and 154: The history of experienced adjustme
Page 155 and 156: 2009 2008 R R Present Value of Fund
Page 157 and 158: Interest Earned on Financial Assets
Page 159 and 160: The Financial Management Grant is p
Page 161 and 162: 20.11 Provincial: Office of the Pre
Page 163 and 164: 20.17 ProvinciaL: Department ROADS
Page 165 and 166: Remuneration of the Director: Finan
Page 167 and 168: 25. Impairment Losses 25.1 Impairme
Page 169 and 170: 29.1 Material Losses 2009 2008 R R
Page 171 and 172: Reserves Deferred Revenue Accumulat
Page 173 and 174: Operating Lease Liabilities R Accum
Page 175 and 176: The effect of the Correction of Err
Page 177 and 178: Incident Budgeted amounts exceeded:
Page 179 and 180: 38.7 Non-Compliance with Chapter 11
Page 181: 2009 2008 R R Own Resources - - 9 4
Page 185 and 186: Description Note ref in AFS Average
Page 187 and 188: 2009 2008 R R Long-term Receivables
Page 189 and 190: • The statutory valuation perform
Page 191 and 192: 44. CONTINGENT ASSETS 2009 2008 R R
Page 193 and 194: Appendices 193
Page 195 and 196: 3.13 Appendices to the AnnuAl FinAn
Page 197 and 198: Cost / Revaluation Accumulated Depr
Page 199 and 200: Appendix c - seGmentAl AnAlYsis oF
Page 201 and 202: Description 2008/2009 Actual 2008/2
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Page 205 and 206: Annexure A Three Year Capital Plan
Page 207 and 208: Project Number (1) Project Name Fun
Page 209 and 210: Project Number (1) Project Name Fun
Page 211 and 212: AUDIT REPORT FINDING: PROPERTY, PLA
Page 213 and 214: AUDIT REPORT FINDING: IRREGULAR EXP
Page 215 and 216: Acronyms 215
Page 217 and 218: 217
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