Entire Document - Chris Hani District Municipality

See Note 21 for the reconciliation of Grants from Government. The Unspent Grantsare cashbacked by term deposits. The municipality complied with the conditionsattached to all grants received to the extent of revenue recognised. No grants werewithheld.16. OPERATING LEASE LIABILITIES / PAYABLESCHRIS HANI DISTRICT MUNICIPALITY ANNUAL REPORT 2011 / 2012Operating Leases are recognised on the straight-line basis as per the requirementsof GRAP 13. In respect of Non-cancellable Operating Leases the following liabilitieshave been recognised:2012 2011RRBalance at beginning of year 28 924 4 350Operating Lease expenses recorded 1 502 598 878 914Operating Lease payments effected (1 467 064) (854 341)Total Operating Lease Liabilities 64 458 28 92416.1 Leasing ArrangementsThe Municipality as Lessee:Operating Leases relate to Property, Plant and Equipment with lease terms notlonger than 5 years, with an option to extend for a further period. All operating leasecontracts contain market review clauses in the event that the municipality exercisesits option to renew. The municipality does not have an option to purchase the leasedasset at the expiry of the lease period.16.2 Amounts payable under Operating LeasesAt the Reporting Date the municipality had outstanding commitments under NoncancellableOperating Leases for Property, Plant and Equipment, which fall due asfollows:Buildings: 2 269 122 2 783 680Up to 1 year 1 277 273 1 073 4642 to 5 years 991 849 1 710 215Other Equipment: 267 397 516 323Up to 1 year 257 122 263 2882 to 5 years 10 275 253 035Total Operating Lease Arrangements 2 536 519 3 300 002134