annual report 2010 - 2011 - Intsika Yethu Municipality
annual report 2010 - 2011 - Intsika Yethu Municipality
annual report 2010 - 2011 - Intsika Yethu Municipality
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<strong>Intsika</strong> <strong>Yethu</strong> <strong>Municipality</strong><br />
Annual Financial Statements for the year ended 30 June <strong>2011</strong><br />
Notes to the Annual Financial Statements<br />
Figures in Rand <strong>2011</strong> <strong>2010</strong><br />
28. Deviation from supply chain management regulations<br />
Paragraph 12(1)(d)(i) of Government gazette No. 27636 issued on 30 May 2005 states that a supply chain management policy<br />
must provide for the procurement of goods and services by way of a competitive bidding process.<br />
Paragraph 36 of the same gazette states that the accounting officer may dispense with the official procurement process in<br />
certain circumstances, provided that he records the reasons for any deviations and <strong>report</strong>s them to the next meeting of the and<br />
includes a note to the <strong>annual</strong> financial statements.<br />
29. Commitments<br />
Authorised capital expenditure<br />
Approved and contracted for<br />
Infrastructure 11 521 067 32 951 205<br />
Community - 4 216 533<br />
Buildings - 4 237 074<br />
Other - 3 201 360<br />
11 521 067 44 606 172<br />
Approved but not yet contracted for<br />
Infrastructure 7 819 700 1 444 181<br />
Operating leases - as lessee (expense)<br />
Minimum lease payments due<br />
- within one year 178 828 162 571<br />
- in second to fifth year inclusive 256 133 232 848<br />
434 961 395 419<br />
Operating lease payments represent rentals payable by the municipality for certain of its office properties. Leases are<br />
negotiated for an average term of seven years and rentals are fixed for an average of three years. No contingent rent is<br />
payable.<br />
Operating leases - as lessor (income)<br />
Minimum lease payments due<br />
- within one year 148 830 135 300<br />
Operating Leases consists of the following:<br />
Certain of the municipality's land and building are held to generate rental income. Lease agreements are non-cancellable and<br />
have terms of 5 years. There are no contigent rents receivable.<br />
30. Contingencies<br />
Contingent Liability<br />
Claim for default 2 121 174 2 121 174<br />
The <strong>Municipality</strong> is being sued by the Municipal Councilors Pension Fund for the default of contribution payment. Should<br />
Council be unsuccessful in defending the claim, there is a possibility that the claim will be settled from Equitable share.<br />
36
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