Lekwa Local Municipality 2013/14 - Co-operative Governance and ...

MP305 Lekwa - Table A6 Budgeted Financial PositionDescription 2010/11 2011/12Current Year 2012/132013/14 Medium Term Revenue &Expenditure FrameworkR thousandAudited Audited Original Adjusted Budget Year Budget Year Budget YearOutcome Outcome Budget Budget 2013/14 +1 2014/15 +2 2015/16ASSETSCurrent assetsCash 1 427 15 605 18 069 18 069 52 409 4 850 3 150Call inv estment deposits 7 534 11 316 15 500 15 500 34 000 32 000 28 000Consumer debtors 44 760 39 449 53 941 53 941 31 563 38 413 34 022Other debtors 399 10 980 500 500 10 378 10 000 10 000Current portion of long-term receiv ables 6 107 6 107Inv entory 1 540 2 322 2 975 2 975 2 843 2 300 2 480Total current assets 55 660 79 673 97 092 97 092 131 193 87 563 77 652Non current assetsLong-term receiv ablesInv estmentsInv estment propertyInv estment in AssociateProperty , plant and equipment 46 220 1 937 690 73 836 73 836 1 885 866 1 905 716 1 690 716AgriculturalBiologicalIntangible 361 361Other non-current assetsTotal non current assets 46 220 1 937 690 74 197 74 197 1 885 866 1 905 716 1 690 716TOTAL ASSETS 101 880 2 017 363 171 289 171 289 2 017 059 1 993 280 1 768 368LIABILITIESCurrent liabilitiesBank ov erdraftBorrow ing 1 716 36 641 655 655 1 699 – –Consumer deposits 2 542 2 592 2 500 2 500 2 609 2 700 3 000Trade and other pay ables 90 997 121 269 78 007 78 007 160 126 129 891 135 841Prov isions 11 551 348 14 250 14 250 348 348 348Total current liabilities 106 806 160 850 95 412 95 412 164 782 132 939 139 189Non current liabilitiesBorrow ing 2 276 33 346 2 595 2 595 – – –Prov isions – – – – 32 309 32 309 32 309Total non current liabilities 2 276 33 346 2 595 2 595 32 309 32 309 32 309TOTAL LIABILITIES 109 082 194 197 98 007 98 007 197 091 165 248 171 498NET ASSETS (7 202) 1 823 167 73 282 73 282 1 819 968 1 828 031 1 596 870COMMUNITY WEALTH/EQUITYAccumulated Surplus/(Deficit) (7 202) 1 811 850 57 782 57 782 1 758 029 1 796 031 1 568 870Reserv es – – – – – – –Minorities' interestsTOTAL COMMUNITY WEALTH/EQUITY (7 202) 1 811 850 57 782 57 782 1 758 029 1 796 031 1 568 870It is evident from the table that during the previous financial years the municipality’s current liabilities exceededthe current assets of the municipality and no provisions were made for working capital. Because no provisionswere made for working capital this place strains on the municipality’s ability to implement its budget, service itsdebt and provisions for services. Outstanding creditors contributed highly to the high current liabilities. Themunicipality will phase in the provision for working capital over the MTREF and this will be done realistically whileensuring that it’s funded.245 | P a g e