Annual Financial Statements for RICHMOND LOCAL MUNICIPALITY for the year ended 30 June: 2012 Province: KwaZulu Natal AFS rounding: R (i.e. only cents) Contact Information: Name of Municipal Manager: Mr ES Sithole Name of Chief Financial Officer (Acting): Mrs H Osman Contact telephone number: 033 212 2155 Contact e-mail address: [email protected] Name of contact at provincial treasury: Neli Cilo Contact telephone number: 033 897 4545 Contact e-mail address: [email protected] Name of relevant Auditor: Sudesh Sivnerian Contact telephone number: 033 264 7400 Contact e-mail address: [email protected] Name of contact at National Treasury: Johan Botha Contact telephone number: 012 315 5171 Contact e-mail address: [email protected] RICHMOND LOCAL MUNICIPALITY ANNUAL FINANCIAL STATEMENTS for the year ended 30 June 2012 General information Members of the Council Cllr. A Ragavaloo Mayor Cllr. PC Ngcobo Deputy Mayor Cllr. T Shabalala Speaker Cllr. TD Kunene Member of the Executive Committee Cllr. KE Magubane Member Cllr. RB Shange Member Cllr. B Ngcongo Member Cllr. J Jili Member Cllr. P Moonsamy Member Cllr. B Ngubo Member Cllr. S Mdlalose Member Cllr. TC Madonda Member Cllr. M Maphumulo Member Cllr. BM Mngadi Member Municipal Manager Mr ES Sithole Chief Financial Officer (Acting) Mrs H Osman Grading of Local Authority Grade 4 Auditors Auditor-General 1 RICHMOND LOCAL MUNICIPALITY ANNUAL FINANCIAL STATEMENTS for the year ended 30 June 2012 General information (continued) Bankers First National Bank Registered Office: Memorial Hall 57 Shepstone Street RICHMOND 3780 Physical address: Memorial Hall 57 Shepstone Street RICHMOND 3780 Postal address: Private Bag x1028 RICHMOND 3780 Telephone number: 033 212 2155 Fax number: 033 212 4183 E-mail address: [email protected] 2 RICHMOND LOCAL MUNICIPALITY ANNUAL FINANCIAL STATEMENTS for the year ended 30 June 2012 Approval of annual financial statements I am responsible for the preparation of these annual financial statements, which are set out on pages 5 to 67, in terms of Section 126(1) of the Municipal Finance Management Act (Act no. 56 of 2003) and which I have signed on behalf of the Municipality. I certify that the salaries, allowances and benefits of Councillors, loans made to Councillors, if any, and payments made to Councillors for loss of office, if any, as disclosed in note 28 of these annualfinancialstatements are withintheupperlimits oftheframework envisagedinSection219of theConstitution, read with the Remuneration of Public Officer Bearers Act and the Minister of Provincial and Local Government’s determination in accordance with this Act. __________________________________________________________________ Municipal Manager: Mr. ES Sithole 31 August 2012 3 RICHMOND LOCAL MUNICIPALITY Annual Financial Statements for the year ended 30 June 2012 Index The reports and statements set out below comprise the annual financial statements presented to the Councillors: Index Statement of Financial Position Statement of Financial Performance Statement of Changes in Net Assets Cash Flow Statement Accounting Policies Notes to the Annual Financial Statements Appendix A: Schedule of External Loans Appendix B: Analysis of Property, Plant and Equipment Appendix C: Segmental Analysis of Property, Plant and Equipment Appendix D: Segmental Statement of Financial Performance Appendix E: Disclosure of Grants in terms of Section 123 of the Municipal Finance Management Act, 56 of 2003 4 Page 5 6 7 8 9 - 28 29 - 62 63 64 65 66 67 5 RICHMOND LOCAL MUNICIPALITY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2012 Note 2012 2011 R R ASSETS Restated Current assets Inventories 2 175 162 171 710 Other financial assets 3 20 768 17 551 Trade and other receivables from exchange transactions 5 51 353 49 752 Other receivables from non- exchange transactions 6 3 451 556 1 348 538 VAT receivable 7 1 136 189 1 056 694 Consumer debtors 8 390 684 496 435 Cash and cash equivalents 9 37 721 545 36 386 170 42 947 257 39 526 850 Non-current assets Property, plant and equipment 10 86 894 918 75 823 300 Investment property 11 4 114 853 4 114 853 Intangible assets 12 23 379 33 798 Other financial assets 3 32 633 54 922 Non current other receivables from non-exchange transactions 6 1 918 788 1 916 263 Non current consumer debtors 8 2 752 958 1 403 674 95 737 529 83 346 810 Non-current assets held for sale 13 1 113 114 1 018 872 Total Assets 139 797 900 123 892 532 LIABILITIES Current liabilities Other financial liabilities 14 20 768 17 551 Operating lease liability 15 222 087 184 075 Current portion of finance lease obligation 16 119 594 46 164 Trade and other payables from exchange transactions 17 5 719 181 7 050 027 Unspent conditional grants and receipts 18 21 765 192 15 743 516 27 846 822 23 041 333 Non-current liabilities Other financial liabilities 14 32 367 54 656 Retirement benefit obligation 19 5 297 000 3 849 564 Non current finance lease obligation 16 138 766 96 251 Provisions 20 3 589 430 3 214 300 9 057 563 7 214 771 Total Liabilities 36 904 385 30 256 104 Net Assets 102 893 515 93 636 428 Net assets Accumulated surplus 102 893 515 93 636 428 5 RICHMOND LOCAL MUNICIPALITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2012 Note 2012 2011 R R Restated REVENUE Revenue from Non-exchange Transactions 48 474 882 52 062 969 Taxation Revenue 6 908 471 5 539 594 Property rates 22 6 115 439 5 085 774 Property rates - penalties imposed and collection charges 22 793 032 453 820 Transfer Revenue 41 563 752 46 440 053 Government grants and subsidies 24 41 563 752 46 440 053 Other Revenue 2 659 83 322 Fines 2 659 83 322 Revenue from Exchange Transactions 4 781 327 5 946 171 Service charges 23 283 028 1 125 151 Rental of facilties and equipment 1 349 177 821 944 Interest earned - external investments 1 610 290 1 390 269 Interest earned - outstanding debtors 98 028 133 227 Licences and permits 489 679 1 620 880 Income from agency services 427 511 375 170 Other revenue 25 523 614 479 530 Total Revenue 53 256 209 58 009 140 EXPENDITURE Employee related costs 27 20 027 040 16 318 069 Remuneration of councillors 28 3 389 998 3 044 342 Debt impairment 8 473 068 1 646 091 Depreciation and amortisation 29 4 016 422 3 340 292 Collection costs 16 939 28 433 Repairs and maintenance 2 113 536 2 653 064 Finance costs 30 26 696 832 Contracted services 2 339 742 1 416 279 Grants and subsidies paid 32 64 730 93 582 Landfill Rehabilitation 20 256 130 232 846 General expenses 26 11 511 884 12 528 778 Total Expenditure 44 236 185 41 302 608 Operating Surplus for the year 9 020 024 16 706 532 (Loss)/ Gain on disposal on property, plant & equipment/Investment property ( 9 200) 78 109 (Impairment loss)/ reversal on impairment loss 41 648 ( 148 634) Gain on donated assets 67 930 94 466 Gain on fair valuing of assets 126 458 - NET SURPLUS FOR THE YEAR 9 246 860 16 730 473 6 RICHMOND LOCAL MUNICIPALITY STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2012 Balance at 1 July 2010 Interest received Prior year adjustment Net income (expense) recognised directly in net assets Surplus for the year - restated (Note 45.15) Total recognised income and expenses for the year Total changes Balance at 1 July 2011 Interest received Prior year adjustment Net income (expense) recognised directly in net assets Surplus for the year Total recognised income and expenses for the year Total changes Balance as at 30 June 2012 7 Restated Accumulated Surplus/ (Deficit) R 77 059 969 9 966 ( 163 980) ( 154 014) 16 730 473 16 576 459 16 576 459 93 636 428 10 228 ( 1) 10 227 9 246 860 9 257 087 9 257 087 102 893 515 8