annual report 2010 - 2011 - Intsika Yethu Municipality

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Intsika Yethu Municipality Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010 31. Risk management Financial risk management The municipality’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. Liquidity risk The municipality’s risk to liquidity is a result of the funds available to cover future commitments. The municipality manages liquidity risk through an ongoing review of future commitments and credit facilities. The information below analyses the municipality’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Later than one month and not later than one year (2011: R349,092) and Later than one year and not later than twenty years (2011: R9 343 428) Later than one month and not later than one year (2010: R121,795) and Later than one year and not later than twenty years (2010: R3,524,429) Interest rate risk As the municipality has no significant interest-bearing assets, the municipality's income and operating cash flows are substantially independent of changes in market interest rates. The municipality's interest rate risk arises from long term borrowings. Borrowings issued at fixed rates exposes the municipality to fair value interest rate risk. At year end, financial instruments exposed to interest rate risk were as follows: ` Financial instrument 2011 2010 Call deposits 2 405 299 2 399 860 Development Bank of South Africa - Interest on a Loan 349 092 121 795 32. Going concern We draw attention to the fact that at 30 June 2011, the municipality had accumulated surplus of R 14 014 134 and that the municipality's total liabilities exceed its assets by R 66 452 219. The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. 33. Additional disclosure in terms of Municipal Finance Management Act Contributions to organised local government Current year subscription / fee 617 798 212 435 Amount paid - current year (617 798) (130 834) Audit fees - 81 601 Amount paid - current year 1 371 936 1 276 749 37
Intsika Yethu Municipality Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010 33. Additional disclosure in terms of Municipal Finance Management Act (continued) PAYE and UIF Opening balance - 276 681 Current year subscription / fee 2 222 905 4 273 147 Amount paid - current year - (4 332 816) 2 222 905 217 012 The balance represents PAYE and UIF deducted from the June 2011 and June 2010 payroll. These amounts were paid during July 2011 and July 2010 respectively. Pension and Medical Aid Deductions Current year subscription / fee - (8 838 036) Amount paid - current year - 8 838 036 VAT - - VAT receivable 1 390 023 2 211 667 VAT output payables and VAT input receivables are shown in note . All VAT returns have been submitted by the due date throughout the year. 34. Utilisation of Long-term liabilities reconciliation Long-term liabilities raised 349 092 - Long-term liabilities have been utilized in accordance with the Municipal Finance Management Act. Sufficient cash has been set aside to ensure that long-term liabilities can be repaid on redemption date. 35. Intangible assets Computer software, internally generated Cost / Valuation 2011 2010 Accumulated Carrying value Cost / amortisation Valuation and accumulated impairment Accumulated Carrying value amortisation and accumulated impairment 58 037 - 58 037 - - - 36. Current portion of borrowings At fair value through surplus or deficit DBSA Loan - Current portion transferred to current liability Terms and conditions 349 092 121 795 349 092 121 795 - - Current liabilities Fair value through surplus or deficit 349 092 121 795 38
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INTSIKA YETHU LOCAL MUNICIPALITY |
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FOREWORD BY THE MUNICIPAL MANAGER I
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Lokishini - C 3 Mtwaku - B Mtwaku -
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MEMBERS OF EXECUTIVE COMMITTEE Hon
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4. Trends on total personnel expend
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Chapter TWO Basic Service delivery
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• Implementation of current legis
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CHAPTER THREE MUNICIPAL LOCAL ECONO
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The key issues relating to IYM spat
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Intensify Enterprise support and bu
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In order to come out with spatial d
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• Strategic Development Zones •
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However, this study has identified
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Number Property Application Applica
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Basic service delivery area 30 June
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Reporting Level Detail Total Cost -
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ROLE PLAYERS Roles RESPONSIBILITIES
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1.27 SPATIAL PLANNING PREPARATION A
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A vast number of cases are identifi
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Intsika Yethu Municipality STATEMEN
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Intsika Yethu Municipality STATEMEN
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Intsika Yethu Municipality SUMMARY
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Application of all of the above GRA
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3 INTANGIBLE ASSETS 3.1 INITIAL REC
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Due to the fact that the municipali
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5.3.1 INVESTMENTS Investments, whic
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Operating leases are those leases t
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13.2 DEFINED CONTRIBUTION PLANS A d
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Intsika Yethu Municipality NOTES TO
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Page 76 and 77: Planning by Reviewed Performed by F
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Page 84 and 85: Report of the Auditor General To th
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Page 120 and 121: Computers - software & programming
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Page 124 and 125: Intsika Yethu Municipality Appendix
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annual report 2010 - 2011 - Intsika Yethu Municipality

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