intsika yethu local municipality - Provincial Spatial Development plan

Critically as part of Intsika Yethu LM commitment to improve continued access to service and provide abasket of free services as part of the poverty alleviation programme.8.7 Actual expenditure and revenue for 2010/2011The following tables provide an overview of IYLM’s actual expenditure and revenue over the last financialyear audited, 2010/2011. From the tables provided it is clear that IYLM’s challenges remain with the costof employing staff. Unlike in previous years, the municipality has been particularly effective in utilizing thegrants allocated to it for infrastructure development. Furthermore, it has also managed to collect morerevenue than was originally planned.Table 43: IYLM budgeted expenditure versus actual expenditure 2010/2011PERSONNEL COSTSBudget 2010/11 Actual 2010/2011 VarianceEmployee costs-Salaries 33,757,486 42,290,417 125.28%Executive Committee and Councilcosts- SalariesSUB-TOTAL11,467,812 10,877,367 94.85%45,225,298 53,167,784GENERAL EXPENDITURE 35,873,279 40,599,473 113.17%Repairs and maintenance ofinfrastructure3,415,000 8,422,481 246.63%SUB-TOTAL 39,288,279 41,385,038CAPITAL PROJECTS 29,863,850 34,358,293 115.05%TOTAL EXPENDITURE 114,377,427 128,911,115 112.71%An area of concern lies with the municipality over-spending of its budget by more than 12%, whereasrevenue only increase by less than 2%. In the future the municipality will need to ensure there are strictercontrols in place to avoid over-spending on employee costs.Table 44: IYLM budgeted revenue versus actual revenue 2010/2011REVENUE BUDGET Budget 2010/11 Actual 2010/2011 VarianceEQUITABLE SHARE 66,271,000 66,271,000 100.00%MIG 21,564,000 21,564,000 100.00%FMG 1,250,000 1,250,000 100.00%MSIG 750,000 750,000 100.00%OTHER INCOME 24,542,427 26,368,872 107.44%TOTAL REVENUE 114,377,427 116,203,872 101.60%8.9 Financial Plan and Budget StatementThis plan is prepared in terms of Section 26 (h) of the Local Government: Municipal Systems Act, asamended, which stipulates that a financial plan must be prepared as part of the Integrated DevelopmentPlan.191