ITEM
SECTION 80 FINANCE COMMITTEE:
DIRECTORATE BUDGET AND TREASURY:
3RD QUARTER FINANCIAL REPORT: 1 JULY 2013 –31 MARCH 2014
SECTION 52(D)
2/9/3 & 5/15
Attached as Annexure, is the consolidated quarterly financial report on revenue and expenditure of the District Municipality and the Development Agency for the period 1 July 2013 – 31 March 2014. This represents the Local Government Municipal Finance Management Act, Section 52(d) Report.
The annexure consist of the documentation as prescribed by Government Gazette Notice 393 of 2009 (Local Government: Municipal Finance Management Act, 2003: Municipal Budget and Reporting Regulations):
-Schedule C (section 28) –WRDM consolidated report.
Below is a brief summary of the operations for the period 1 July 2013 –
31 March2014:
A. OPERATING REVENUE:
TOTAL ADJUSTED BUDGET: REVENUER276 406 629
Total levied/receivedR232 165 580
Percentage (revenue)84%
The transfers recognised impact on better performance for the 1st, 2nd and 3rdquarter under review. The Equitable Share and RSC Levy Replacement Grant are transferred in the first, second and third quarter, whereas the Local Government Financial Management Grant (FMG) and Local Government Municipal Systems Improvement Grant (MSIG) are transferred in the first quarter.
A.1 CONTRIBUTIONS FROM LOCALS
In the current financial year 2013/14 the District Municipality has budgeted contributions from local municipalities within a region. An amount of R 2,000,000 was budgeted for transformation projects whereby 4 municipalities were to contribute R500,000 each and another R 500,000 from each of the 4 local municipalities to assist in subsidising the WRDA.
No contributions have been received as at 31 March 2014:
Transformation
BudgetReceived
Mogale CityLocal MunicipalityR 500,000
RandfonteinLocal MunicipalityR 500,000
Merafong City Local MunicipalityR 500,000R500,000
Westonaria Local MunicipalityR 500,000
WRDA Subsidies
BudgetReceived
Mogale CityLocal MunicipalityR 500,000
RandfonteinLocal MunicipalityR 500,000
Merafong City Local MunicipalityR 500,000
Westonaria Local MunicipalityR 500,000
B. OPERATING EXPENDITURE:
Total AdjustedbudgetR273 430 858
Total expenditureR194 949 043
Percentage71%
C. DEBTORS (CONSUMERS):
At month end (WRDM)R1 963 698
At month end (WRDA)R 285 141
TotalR2 248 838
D. CREDITORS:
At month end (WRDM)R 538 638
At month end (WRDA)R 155 131
TotalR 693 769
E. BANK AND INVESTMENTS (WRDM):
Bank balance at month endR 41 857 364
Short-term investmentsR 60 000 000
Interest on investments received to dateR 3 812 430
The short term investments are done on the funds that are not required for immediate cash flow obligations. These investments are done through seeking of the competitive quotes from the four financial institutions, i.e. FNB, ABSA, Nedbank and Standard Bank.
F. BANK AND INVESTMENTS (WRDA):
Bank balance at month endR 1 636 073
Short-term investmentsR 306 269
Interest on investments received to dateR 9 863
G. CAPITAL EXPENDITURE:
Total adjusted budgetR 2 975 771
Total expenditureR 2 001 463
Percentage67%
The breakdown of Capital Expenditure is as follows:
Adjusted BudgetExpenditure%
Fire EnginesR 1 885 771 R 1885 771100%
ICT Equipment’sR 100 00000%
WRDA (buildings)R 790 00000%
MPAC FurnitureR 200 000R 115 6920%
TotalR 2 975 771R 2 001 46363%
RECOMMENDATION THAT:
- In terms of the Municipal Finance Management Act, 2003 (Act no 56 of 2003), cognisance be taken of the consolidated quarterly financial report of the District Municipality and the Development Agency, attached as Annexure, for the period 1 July 2013 – 31 March 2014; and
- The Monthly Budget Statement (MFMA Section 71 Reports) is submitted within ten (10) working days to the Executive Mayor and relevant provincial treasury.