Annexure A: In-year report (December 2014)
Contents
PART 1 - IN-YEAR REPORT: PARENT MUNICIPALITY ................................................................... 3
EXECUTIVE SUMMARY .............................................................................................................. 3
Summary Statement of Financial Performance ............................................................................. 3
Summary Statement of Capital Budget Performance .................................................................... 3
Table C1: Monthly budget statement summary ............................................................................ 4
Table C2: Monthly Budget Statement - Financial Performance (standard classification) .............. 5
Table C3: Monthly Budget Statement – Financial Performance (revenue and expenditure by
municipal vote) ............................................................................................................................. 7
Material variance explanations for revenue by vote (refer Table C3)............................................. 8
Material variance explanations for expenditure by vote (refer Table C3) ..................................... 11
Table C4: Monthly Budget Statement – Financial Performance (revenue by source and
expenditure by type) ................................................................................................................... 17
Material variance explanations for revenue by source (refer Table C4) ....................................... 18
Material variance explanations for expenditure by type (refer Table C4) ..................................... 21
Table C5: Monthly Budget Statement - Capital Expenditure (municipal vote, standard
classification and funding)........................................................................................................... 23
Material variance explanations for capital expenditure (refer Table C5) ...................................... 24
Table C6: Monthly Budget Statement - Financial Position........................................................... 29
Table C7: Monthly Budget Statement - Cash Flow...................................................................... 31
Table SC9: Monthly Budget Statement - Actual and revised targets for cash receipts and cash
flows
..................................................................................................................................... 33
PART 2 - SUPPORTING DOCUMENTATION: PARENT MUNICIPALITY ....................................... 35
Debtors analysis ......................................................................................................................... 35
Creditors analysis ....................................................................................................................... 36
Investment portfolio analysis ....................................................................................................... 37
Allocation and grant receipts and expenditure............................................................................. 38
Expenditure on councillor and board members allowances and employee benefits .......................... 40
Material variance explanations for corporate performance for Quarter 2 2015 ............................ 42
Capital programme performance................................................................................................. 42
PART 3 – CONSOLIDATED IN-YEAR REPORT .............................................................................. 47
Consolidated Monthly Budget Statement Summary .................................................................... 47
Consolidated Monthly Budget Statement – Financial Performance (revenue and expenditure)... 48
Consolidated Monthly Budget Statement – Financial Position..................................................... 49
Consolidated Monthly Budget Statement – Cash Flow ............................................................... 50
1
Annexure A: In-year report (December 2014)
PART 4 – IN-YEAR REPORT:
MUNICIPAL ENTITY (CAPE TOWN INTERNATIONAL
CONVENTION CENTRE – (CTICC)) ................................................................................................. 51
Executive Summary .................................................................................................................... 51
Table F1 Monthly Budget Statement Summary ........................................................................... 51
Table F2 Monthly Budget Statement – Financial Performance (revenue and expenditure) ......... 52
Table F3 Monthly Budget Statement – Capital expenditure ........................................................ 53
Table F4 Monthly Budget Statement – Financial Position ........................................................... 54
Table F5 Monthly Budget Statement – Cash Flow ...................................................................... 55
PART 5 - SUPPORTING DOCUMENTATION: ENTITY ................................................................... 56
Table SF1 Entity Material variance explanation .......................................................................... 56
Table SF3 Entity Aged debtors ................................................................................................... 56
Table SF4 Entity Aged creditors ................................................................................................. 57
Table SF5 Entity investment portfolio monthly statement ............................................................ 57
Table SF6 Entity Board member allowances & staff benefits ...................................................... 58
MUNICIPAL MANAGER'S QUALITY CERTIFICATION .................................................................... 59
2
Annexure A: In-year report (December 2014)
PART 1 - IN-YEAR REPORT: PARENT MUNICIPALITY
EXECUTIVE SUMMARY
Summary Statement of Financial Performance
Description
2014/2015
Budget
R Thousand
YTD Budget
R Thousand
YTD Actual
R Thousand
YTD
% Spend
Actual as % of
Current
Budget
Operating Revenue
32,275,572
15,149,489
15,408,930
101.7%
47.7%
Operating Expenditure
29,448,192
13,537,045
12,994,258
96.0%
44.1%
The summary statement of financial performance indicates actual operating revenue
realised of R15 409 million or 47.7% of the current budget and operating expenditure of
R12 994 million or 44.1% of the current budget.
Details of revenue and expenditure by municipal vote are shown in Table C3 on page 7.
Details of material variances and remedial action, where applicable, are shown on page 8
to page 16.
Detail of revenue by source and expenditure by type is shown in Table C4 on page 17.
Detail of material variances and remedial action, where applicable, is shown on page 18 to
page 22.
Summary Statement of Capital Budget Performance
2014/15 Budget
R Thousand
6,613,106
YTD Budget
R Thousand
1,742,411
YTD Actual
R Thousand
1,787,557
YTD
% Spend
Actual as % of
Current Budget
102.6%
27.0%
The year to date spend of R1 788 million represents 21.66% (R746 million) on internallyfunded projects and 32.87% (R1 042 million) on externally-funded projects.
Details of capital expenditure are shown in Table C5 on page 23 and is categorised by
municipal vote, standard classification and by funding source. Details of material variances
and remedial action, where applicable, are shown on page 24 to 27.
3
Annexure A: In-year report (December 2014)
Table C1: Monthly budget statement summary
The table below provides a high-level summation of the City’s operating- and capital
budgets, actuals to date, financial position and cash flow.
Budget Year 2014/15
2013/14
Description
Audited
Original
Adjusted
YearTD
YearTD
YTD
YTD
Full Year
Outcome
Budget
Budget
actual
budget
variance
variance
Forecast
R thousands
%
Financial Performance
Property rates
5,546,774
5,942,513
5,942,513
3,001,251
2,970,649
30,602
1.0%
5,964,279
13,903,679
461,053
15,262,264
275,762
15,198,242
275,762
7,448,246
254,876
7,351,375
167,344
96,871
87,532
1.3%
52.3%
15,184,641
275,762
Transfers recognised - operational
2,399,033
3,498,169
3,539,580
1,618,661
1,690,699
(72,038)
-4.3%
3,460,886
Other own revenue
3,751,219
3,392,277
4,150,741
2,042,906
1,969,557
73,350
3.7%
4,125,803
26,061,758
28,370,984
29,106,838
14,365,940
14,149,624
216,316
1.5%
29,011,371
Employee costs
Remuneration of Councillors
8,640,854
119,709
8,940,483
133,619
8,939,329
133,619
4,471,412
60,819
4,603,804
59,997
(132,393)
822
-2.9%
1.4%
8,818,467
133,619
Depreciation & asset impairment
1,784,970
2,154,335
2,154,335
946,295
1,065,474
(119,179)
-11.2%
2,014,841
Finance charges
Materials and bulk purchases
807,283
6,890,385
919,232
7,437,129
912,241
7,428,698
374,819
3,461,728
374,508
3,480,985
311
(19,257)
0.1%
-0.6%
912,233
7,439,669
Service charges
Investment revenue
Total Revenue (excluding capital transfers and
contributions)
Transfers and grants
Other expenditure
Total Expenditure
Surplus/(Deficit)
Transfers recognised - capital
Contributions & Contributed assets
Surplus/(Deficit) after capital transfers &
contributions
Share of surplus/ (deficit) of associate
115,021
125,354
138,609
85,397
82,027
3,369
4.1%
136,839
8,173,227
26,531,448
8,945,218
28,655,369
9,741,362
29,448,192
3,593,789
12,994,258
3,870,250
13,537,045
(276,460)
(542,787)
-7.1%
-4.0%
9,817,705
29,273,373
(469,690)
(284,384)
(341,354)
1,371,682
612,579
759,103
123.9%
(262,001)
2,052,758
76,408
2,817,627
65,226
3,102,985
65,749
1,017,765
25,225
977,787
22,077
39,977
3,148
4.1%
14.3%
3,184,165
52,010
1,659,476
2,598,469
2,827,380
2,414,672
1,612,444
802,228
49.8%
2,974,175
–
–
–
–
Surplus/ (Deficit) for the year
1,659,476
2,598,469
2,827,380
2,414,672
1,612,444
–
802,228
–
Capital expenditure & funds sources
Capital expenditure
-
–
49.8%
2,974,175
4,502,293
6,211,315
6,613,106
1,787,557
1,742,411
45,146
2.6%
6,331,619
Capital transfers recognised
2,053,319
2,809,834
3,095,365
1,017,796
934,657
83,139
8.9%
3,185,453
Public contributions & donations
Borrowing
44,022
1,856,889
73,019
2,350,301
73,369
2,446,723
23,694
604,476
20,779
617,766
2,915
(13,289)
14.0%
-2.2%
50,723
2,277,157
Internally generated funds
Total sources of capital funds
Financial position
Total current assets
548,064
978,161
997,648
141,591
169,210
(27,618)
-16.3%
4,502,293
6,211,315
6,613,106
1,787,557
1,742,411
45,146
2.6%
818,287
6,331,619
9,904,353
10,530,544
10,739,484
12,124,452
10,422,517
34,817,677
37,639,154
38,467,186
32,401,571
37,427,251
8,155,257
7,321,815
8,491,131
5,439,573
6,844,609
Total non current liabilities
12,450,101
13,001,051
13,001,051
12,613,082
13,881,057
Community wealth/Equity
Cash flows
24,116,672
27,846,832
27,714,488
26,473,368
27,124,102
Total non current assets
Total current liabilities
Net cash from (used) operating
4,462,953
5,618,991
5,555,550
2,196,765
2,434,154
237,390
9.8%
5,055,142
Net cash from (used) investing
Net cash from (used) financing
(6,069,629)
(283,067)
(6,478,138)
1,224,051
(7,436,235)
1,254,872
(2,143,956)
(153,203)
(2,775,869)
(154,628)
(631,913)
(1,426)
22.8%
0.9%
(7,300,493)
1,224,443
6,209,623
6,968,574
5,616,552
6,109,229
5,746,022
Cash/cash equivalents at the month/year end
5,188,715
The ensuing tables provide further explanations on the year-to-date material variances
reflected in the summary table.
4
Annexure A: In-year report (December 2014)
Table C2:
Monthly Budget Statement
classification)
- Financial Performance (standard
The table below is an overview of the budgeted financial performance in relation to
revenue and expenditure per standard classification.
2013/14
Description
Budget Year 2014/15
Audited
Original
Adjusted
Outcome
Budget
Budget
YTD actual
YTD budget YTD variance YTD variance
R thousands
Revenue - Standard
Governance and administration
Full Year
Forecast
%
9,725,371
10,461,359
10,474,840
5,997,653
5,859,153
138,501
2.4%
222,571
272,595
278,095
138,135
141,629
(3,494)
-2.5%
293,299
9,325,485
177,315
9,890,543
298,221
9,897,989
298,757
5,754,814
104,704
5,620,350
97,174
134,464
7,530
2.4%
7.7%
9,896,230
285,880
2,371,841
2,845,189
3,809,623
1,003,535
1,147,715
(144,180)
-12.6%
3,408,861
83,749
136,417
125,797
53,128
58,473
(5,346)
-9.1%
116,216
Sport and recreation
139,688
119,466
122,602
50,094
53,268
(3,175)
-6.0%
123,554
Public safety
803,168
231,113
991,067
158,691
118,947
39,744
33.4%
994,603
1,132,956
2,102,760
2,311,010
621,042
799,950
(178,908)
-22.4%
1,917,996
212,279
1,702,432
255,433
2,182,482
259,147
2,179,651
120,581
785,424
117,076
653,530
3,504
131,894
3.0%
20.2%
256,493
2,675,136
Executive and council
Budget and treasury office
Corporate services
Community and public safety
Community and social services
Housing
Health
Economic and environmental services
Planning and development
Road transport
Environmental protection
Trading services
10,475,408
244,648
314,250
256,615
122,354
118,774
3,580
3.0%
255,149
1,451,044
6,740
1,848,563
19,669
1,900,289
22,747
648,527
14,543
525,156
9,600
123,371
4,943
23.5%
51.5%
2,396,077
23,910
14,390,251
15,761,551
15,808,200
7,622,194
7,486,790
135,405
1.8%
15,682,884
Electricity
9,688,895
10,374,795
10,452,912
5,225,177
5,101,711
123,466
2.4%
10,441,383
Water
2,332,377
2,688,261
2,664,604
1,162,327
1,159,421
2,906
0.3%
2,637,633
Waste water management
Waste management
1,375,489
993,490
1,640,951
1,057,543
1,633,140
1,057,543
693,209
541,482
671,886
553,772
21,323
(12,290)
3.2%
-2.2%
1,564,693
1,039,175
1,030
28,190,924
3,258
31,253,838
3,258
32,275,572
123
15,408,930
2,302
15,149,489
(2,178)
259,441
-94.6%
1.7%
5,258
32,247,547
6,101,339
5,450,165
5,485,947
2,516,654
2,566,755
(50,101)
-2.0%
5,519,545
868,121
818,634
852,014
380,279
397,104
(16,825)
-4.2%
854,122
Budget and treasury office
3,362,374
2,506,777
2,511,429
1,166,557
1,181,334
(14,777)
-1.3%
2,508,567
Corporate services
1,870,844
2,124,754
2,122,503
969,817
988,317
(18,500)
-1.9%
2,156,856
5,338,007
469,116
6,155,784
508,334
6,910,387
497,645
2,528,865
251,881
2,697,883
257,648
(169,018)
(5,767)
-6.3%
-2.2%
6,518,359
531,635
Sport and recreation
1,242,113
1,315,435
1,317,186
581,879
619,014
(37,134)
-6.0%
1,332,308
Public safety
Housing
1,852,966
1,034,934
1,587,110
1,892,239
2,330,084
1,908,065
771,642
502,004
811,535
574,834
(39,893)
(72,830)
-4.9%
-12.7%
2,359,105
1,441,252
738,879
2,779,445
852,667
3,107,880
857,407
3,086,196
421,459
1,491,771
434,852
1,564,127
(13,394)
(72,356)
-3.1%
-4.6%
854,060
3,476,706
Other
Total Revenue - Standard
Expenditure - Standard
Governance and administration
Executive and council
Community and public safety
Community and social services
Health
Economic and environmental services
Planning and development
620,738
720,507
712,246
361,363
354,961
6,402
1.8%
720,844
2,068,358
90,348
2,291,386
95,987
2,275,580
98,370
1,081,041
49,367
1,163,055
46,112
(82,014)
3,255
-7.1%
7.1%
2,654,843
101,019
12,259,142
7,677,729
13,877,328
8,621,654
13,902,555
8,646,304
6,419,299
3,991,465
6,668,544
4,120,901
(249,245)
(129,436)
-3.7%
-3.1%
13,696,420
8,466,356
Water
1,995,569
2,295,850
2,271,093
1,054,309
1,098,707
(44,398)
-4.0%
2,228,074
Waste water management
Waste management
1,115,782
1,470,061
1,274,995
1,684,829
1,300,403
1,684,755
566,358
807,167
602,902
846,033
(36,544)
(38,866)
-6.1%
-4.6%
1,288,661
1,713,329
Other
Total Expenditure - Standard
53,516
26,531,448
64,212
28,655,369
63,108
29,448,192
37,670
12,994,258
39,736
13,537,045
(2,066)
(542,787)
-5.2%
-4.0%
62,342
29,273,373
Surplus/ (Deficit) for the year
1,659,476
2,598,469
2,827,380
2,414,672
1,612,444
802,228
49.8%
2,974,175
Road transport
Environmental protection
Trading services
Electricity
Note: As per GFS classification, Trading Services expenditure above excludes Street Lighting provisions
(included with Community and public safety).
5
Annexure A: In-year report (December 2014)
The graphs below illustrate the revenue and expenditure trend per month.
OPERATING REVENUE 2014/2015
PROGRESSIVE BUDGET vs ACTUAL
16,000
YTD Budget
YTD Actual
14,000
Millions
12,000
10,000
8,000
6,000
4,000
2,000
OPERATING EXPENDITURE 2014/2015
PROGRESSIVE BUDGET vs ACTUAL
14,000
June
May
April
March
February
January
December
November
October
September
July
August
0
YTD Budget
YTD Actual
12,000
Millions
10,000
8,000
6,000
4,000
2,000
6
June
May
April
March
February
January
December
November
October
September
August
July
0
Annexure A: In-year report (December 2014)
Table C3: Monthly Budget Statement – Financial Performance (revenue and
expenditure by municipal vote)
The table below shows budgeted financial performance in relation to the revenue and
expenditure by vote as well as the operating surplus or deficit.
2013/14
Vote Description
Audited
Outcome
Budget Year 2014/15
Original
Budget
Adjusted
Budget
YTD actual
YTD budget
YTD
variance
R thousands
YTD
variance
%
Full Year
Forecast
Revenue by Vote
Vote 1 - City Health
432,226
490,743
494,457
243,944
128
44
44
60
161,377
238,588
230,854
92,172
Vote 4 - Compliance and Auxiliary Services
24,417
14,932
20,991
Vote 5 - Corporate Services
64,914
72,689
73,225
108,295
191,146
127,115
Vote 2 - City Manager
Vote 3 - Community Services
Vote 6 - Economic, Environment & Spatial Planning
Vote 7 - Finance
239,846
–
4,098
1.7%
491,803
60
154
103,784
(11,612) -11.2%
222,237
2,882
4,179
(1,298) -31.0%
17,428
17,547
22,096
(4,549) -20.6%
62,862
55,797
7,065
12.7%
60,347
131,459
895,275
785,016
795,877
502,354
375,003
127,351
34.0%
795,577
Vote 8 - Human Settlements
1,132,956
2,102,760
2,311,010
621,042
799,950
(178,908) -22.4%
1,917,996
Vote 9 - Rates & Other
8,660,739
9,457,542
9,457,542
5,408,519
5,386,570
21,949
0.4%
9,456,145
836,091
254,301
1,007,518
174,170
134,559
39,611
29.4%
1,019,912
126
3,587
3,587
411
2,697
64,688
24,625
24,875
13,891
12,378
1,514
12.2%
Vote 10 - Safety & Security
Vote 11 - Social and Early Childhood Development
Vote 12 - Tourism, Events and Marketing
Vote 13 - Transport for Cape Town
Vote 14 - Utility Services
Total Revenue by Vote
(2,286) -84.8%
9,193
26,652
1,414,827
1,845,324
1,902,549
645,121
524,245
120,876
23.1%
2,405,489
14,394,865
15,772,541
15,825,928
7,623,939
7,488,385
135,554
1.8%
15,692,218
28,190,924
31,253,838
32,275,572
15,408,915
15,149,489
259,426
1.7%
32,246,608
784,947
907,929
907,839
443,358
460,165
(16,807)
-3.7%
904,656
88,982
132,613
133,210
55,654
58,818
(3,164)
-5.4%
163,251
1,371,054
1,507,629
1,503,639
687,880
727,474
(39,594)
-5.4%
1,533,066
Expenditure by Vote
Vote 1 - City Health
Vote 2 - City Manager
Vote 3 - Community Services
Vote 4 - Compliance and Auxiliary Services
Vote 5 - Corporate Services
Vote 6 - Economic, Environment & Spatial Planning
511,552
592,374
593,424
270,085
272,496
(2,411)
-0.9%
586,656
1,493,422
1,661,637
1,666,815
767,607
781,549
(13,942)
-1.8%
1,669,972
485,741
545,065
537,324
276,605
276,014
592
0.2%
550,463
Vote 7 - Finance
1,821,734
2,022,344
2,033,898
921,403
929,883
(8,480)
-0.9%
2,029,153
Vote 8 - Human Settlements
1,034,934
1,892,239
1,908,065
502,004
574,834
(72,830) -12.7%
1,441,252
Vote 9 - Rates & Other
1,861,654
902,820
901,268
445,997
451,207
(5,210)
-1.2%
900,620
Vote 10 - Safety & Security
1,901,498
1,641,626
2,383,111
795,918
842,597
(46,679)
-5.5%
2,432,289
127,503
Vote 11 - Social and Early Childhood Development
Vote 12 - Tourism, Events and Marketing
Vote 13 - Transport for Cape Town
Vote 14 - Utility Services
Total Expenditure by Vote
Surplus/ (Deficit) for the year
99,026
137,782
137,676
58,354
57,392
961
1.7%
530,817
482,822
482,813
241,370
240,827
543
0.2%
491,444
2,198,334
2,232,622
2,237,685
1,053,749
1,136,084
(82,336)
-7.2%
2,632,754
12,347,754
13,995,866
14,021,426
6,474,275
6,727,703
(253,429)
-3.8%
13,810,296
26,531,448
28,655,369
29,448,192
12,994,258
13,537,045
(542,787)
-4.0%
29,273,373
1,659,476
2,598,469
2,827,380
2,414,657
1,612,444
802,214
49.8%
2,973,236
Note: the above table includes capital grant and donations (CGD).
The vote structure reflected in the tables does not reflect organisational structure
changes post the May approved 2014/15 budget. Organisational structure changes
may only be effected during an adjustments budget.
Annexure B reflects actual operating expenditure per vote including internal costs
incurred across votes. (Refer to charge-in and –out columns.)
The following tables reflect the percentage variance for revenue and expenditure by vote,
reasons for material deviations and the remedial action thereof, where required.
7
Annexure A: In-year report (December 2014)
Material variance explanations for revenue by vote (refer Table C3)
De s cription
Re ve nue by Vote
Vote 1 - City Health
Vote 2 - City Manager
Vote 3 - Community
Services
YTD
Variance
R thous ands
4,098
Variance
%
1.7%
Re as ons for m ate rial de viations
Re m e dial or corre ctive s te ps /re m ark s
The over-recovery is a combination of under-recovery on capital grant-f unded
projects and over-recovery on operating grant-f unded projects. The underrecovery on capital grant-f unded projects is due to delays in the submission of
payment certif icates/invoices f or w ork done in December 2014 on the f ollow ing
projects: Environmental Health Of f ice-Khayelitsha, St Vincent Clinic, Taf elsig Clinic
and Mzamomhle Clinic. The over-recovery on operating grant-f unded projects is
due to higher than planned expenditure to date on pharmaceuticals and laboratory
costs. Revenue is recognised once expenditure is incurred.
The periodic budget w ill be amended, w here required, to ref lect the actual trend of
revenue, in the adjustments budget in January 2015.
Follow up meetings w ill be held w ith project managers, principal agents and
contractors af ter the Builders' Holidays to expedite submission of monthly payment
certif icates.
60
(11,612)
-11.2%
Immaterial variance.
1. Admission Fees ref lects an under-recovery, due to low er than anticipated
usage of f acilities.
2. The f ollow ing capital grant-f unded projects ref lects under-recovery:
a. City Parks: Cemetery Upgrades & Extensions as a result of delays in approval of
building plans f or alterations to the Maitland Crematorium and delays in f inalising
invoices.
b. Sports, Recreation and Amenities:
(i) Solomon Mahlangu Hall: Contractor handed in letter of termination of contract. (ii)
Sport and Recreation Facilities Upgrade: Retreat Sw imming Pool Roof Enclosure
delayed, due to slow vendor perf ormance w hich has since been resolved.
(iii) Imizamo Yethu Sportsground project experienced delays w ith electrical and
w ater connections.
(iv) Upgrade: Ruyterw acht Sw imming Pool delayed, due to due to higher than
planned upgrade costs.
3. Library and Inf ormation Systems: Construction of New Regional Library in
Kuyasa Khayelitsha delayed due to steel industry strike.
1. The period budget w ill be amended during the adjustments budget in January
2015.
2. Amendments on capital grant-f unded projects w ill be made in the adjustments
budget in January 2015 and various projects w ill be rephased into the 2015/16
f inancial year.
3. The contractor has resumed w ork and is currently on track w ith the revised
implementation programme and approved practical completion date of 02
September 2015.
Vote 4 - Compliance and
Auxiliary Services
(1,298)
-31.0%
The under-recovery is mainly on capital grant-f unded projects i.e. Lentegeur Pub
Space & Civic Of f ice Upgrade and Work-live-units - Ntlazane Road w here there
w ere delays in the receipt of invoices.
Final payments w ill be processed w hen invoices are received.
Vote 5 - Corporate
Services
(4,549)
-20.6%
1. A capital grant-f unded project (Broadband- Western Cape Provincial
Period budget w ill be amended to align w ith the latest trends on the Broadband
Government) ref lects an under-recovery, due to delays experienced in the tender revenue in the adjustment budget in January 2015.
process and subsequent implementation of the project.
2. Miscellaneous Income (Broadband Revenue related) ref lects an underrecovery, due to:
a. Delay by WCPG in identif ying their new broadband requirements. This has since
been conf irmed.
b. No revenue f rom SETA; Pretoria Head Of f ice must still sign the agreement
negotiated by it's Western Cape Of f ice w ith the City.
c. Revenue f rom commercial operators, w here grow th has been satisf actorily but
hampered by slow roll-out of the netw ork core especially sw itching centres,
f ailure to conclude contracts w ith the larger operators and contractual delays.
7,065
12.7%
1. Higher than planned revenue received f or Building Levies, partly attributable to
the implementation of the new IPOS system that has contributed to the f asttracking of plan approvals as w ell as an upsw ing in the building environment.
2. By-product Sales ref lects over-recovery as a result of the unanticipated sale
of timber at Helderberg Nature Reserve.
Vote 6 - Economic,
Environment & Spatial
Planning
Table continues on next page.
8
The budget provisions w ere review ed during the mid-year review process and
w ill be amended in the adjustment budget in January 2015.
Annexure A: In-year report (December 2014)
Description
Revenue by Vote
Vote 7 - Finance
Vote 8 - Human
Settlements
YTD
Variance
R thousands
Variance
%
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
127,351
34.0%
1. Interest Earned on External Investments ref lects over-recovery, due to higher
than expected interest received on available cash and investment balances.
2. Higher than anticipated revenue on Agency Income, due to the number of
licence renew als and new tarif f s since July 2014.
3. Higher than anticipated revenue on Rental Agreement Income, due to increased
debt management initiatives to collect the revenue due to the City.
Amendments w ill be made to various revenue elements and incorporated in the
January 2015 adjustment budget.
(178,908)
-22.4%
The under-recovery is mainly on number of operating- and capital grant-f unded
projects:
1. Operating grant-f unded projects:
a. National Government - Conditional Grants (R11 million over): The income relates
to the f unding f or pre-planning and the capacity grant to mainly f und staf f linked to
the housing f unction to be carried by the City. Revenue is slightly ahead of year-todate budget, due to higher than anticipated expenditure incurred on pre planning
and f easibility studies.
b. Provincial Government - Conditional Grants (R57 million under): Revenue
recognition is linked to the rate of progress achieved on housing development
projects. Community unrest slow s dow n the delivery of housing opportunities. In
addition, Province inf ormed the City that the amount gazetted f or HSDG w ill be
reduced f rom R1.3 billion to R974 million. This portion of the grant w as erroneously
allocated to the City and should initially have been allocated to Province f or various
housing-related projects.
2. Capital grant-f unded projects:
a. USDG and HSDG: Revenue recognition is linked to the rate of progress achieved
on housing development projects. The CRU projects progress is inf luenced
negatively by community unrest.
Adjustments to budgets and cash f low s w ill be made in the adjustments budget in
January 2015.
A new s80 committee w as established to approve and monitor progress on USDGf unded projects.
Vote 9 - Rates & Other
21,949
0.4%
Vote 10 - Saf ety & Security
39,611
29.4%
1. Traf f ic Fines ref lects an over-recovery, due to stricter law enf orcement
methods resulting in an increase in the number of enf orcement contraventions
identif ied and more f ines issued and paid.
2. Fire Fees ref lects an over-recovery, due to an increase in f ire related calls.
3. Miscellaneous Income ref lects an over-recovery, due to stricter by-law
enf orcement methods resulting in an increase in the number of animals and
unregistered inf ormal trader goods impounded, increased number of cell phone
impoundments and increased number of disks issued to the disabled.
Amendments w ill be made to various revenue elements and incorporated in the
January 2015 adjustment budget.
Vote 11 - Social and Early
Childhood Development
(2,286)
-84.8%
The under-recovery is mainly on a capital grant-f unded project (ICAN Project),
w here delays w ere experienced w ith quotations and appointment of service
providers.
Appointed contractors have commenced on site. The contractor f or aluminium
w orks w as appointed and w ill commence w ork by 19 January 2015. All scope of
w orks expected to be completed by 15 February 2015. Completion is expected by
February 2015.
Table continues on next page.
9
1. Over-recovery ref lects on Property Rates, due to the misalignment of the period Adjustments to budgets and cash f low s w ill be made in the adjustments budget in
budget w ith the number of days billed f or the month. This over-recovery w ill be
January 2015.
used to cover the impact of valuation objections and appeals, w hich might result in
a reduction in the rates billed.
2. Income Forgone is slightly under-spent and is mainly dependant on the number
of applications received and processed to date.
Annexure A: In-year report (December 2014)
Description
Revenue by Vote
Vote 12 - Tourism, Events
and Marketing
YTD
Variance
R thousands
Variance
%
1,514
12.2%
Vote 13 - Transport for
Cape Tow n
120,876
23.1%
Vote 14 - Utility Services
135,554
1.8%
10
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
1. Hire/Rental Income reflects an over-recovery, due to additional events held at
Cape Tow n Stadium.
2. Capital grant-funded projects reflects over-recovery, due to a donation to the
City of artw orks on Riebeeck Square, w hich w as not budgeted for.
The over-recovery is a combination of under-/over-recovery:
1. Operating grant funded projects (under), mainly due to:
a. Low er than anticipated tender rates/prices for the MyCiTi Station Management
Contracted Services.
b. Reduced operating hours at some MyCiTi stations resulting in decreased costs.
c. Delay in spending on Security (CCTV maintenance MyCiTi, Surveillance and Hire
of Vehicles for Law Enforcement Personnel Services). due to delay in receiving
cash tranches from National Treasury.
2. Bus fares-Transit Products (over), due to higher than planned usage of the
Transit Stored Value Tappings system instead of the EMV Card System.
3. Busfares - MyCiTi (under), due to commuters sw itching from EMV card system
to TSV system as w ell as roll-out of new routes.
4. Capital grant-funded projects (over), due to various projects progressing much
faster than anticipated i.e. Non Motorised Transport, the upgrading of concrete
roads, the MyCiTi N2 Expressw ay, Upgrading of the Main Road Muizenberg Phase
3 project and Boyes Drive emergency slope rehabilitation.
Period budget w as review ed during the mid-year review process and
amendments w ill be made in the adjustments budget in January 2015.
The over-recovery is a combination of under-/over-recovery:
1. Electricity Service:
a. Electricity Revenue (R75.4 million over), w hich is influenced by consumer
demand resulting in a higher than planned sale of electricity to date.
b. Capital grant-funded projects (Backyarders) (R25.2 million over) w here
progress is faster than anticipated due to good performance by contractor.
2. Water Service:
a. Water Revenue (R9.3 million under) and Sanitation Revenue (R5.4 million over),
w here consumption is influenced by a number of factors i.e. w ater saving
initiatives, tariffs, w eather conditions, consumer demand etc.
b. Capital grant-funded projects (Mitchells Plain) (R30.3 million over), w here
progress is faster than anticipated.
c. Industrial Effluent Charges (R3.5 million under), due to low er than planned
charges levied to date in accordance w ith compliance standards.
3. Solid Waste:
a. Disposal Coupon Fees (R6.8 million under), due to the misalignment of the
periodic budget w ith actual consumer demand.
b. Refuse Charges (R3 million under), due to data clean-up process, w hich
resulted in billing corrections.
c. Special Waste Fees (R1.6 million under), due to the misalignment of the periodic
budget w ith actual consumer demand.
1. Electricity: (a) The sale of electricity is monitored on a monthly basis.
2. Water: (a) Water Service Charges and Sew erage Charges: The monthly
volumes and sales are monitored by the finance manager. The situation w as
review ed during the mid-year review process and amendments, w here required,
w ill be made in the adjustments budget in January 2015.
3. Solid Waste: The situation w as review ed during the mid-year review process
and amendments, w here required, w ill be made in the adjustments budget in
January 2015.
Budget provisions including cash flow s w ere review ed in the mid-year review
process and w ill be adjusted in the adjustment budget in January 2015.
Annexure A: In-year report (December 2014)
Material variance explanations for expenditure by vote (refer Table C3)
Description
Expenditure by Vote
Vote 1 - City Health
YTD
Variance
R thousands
(16,807)
Vote 2 - City Manager
Vote 3 - Community Services
-3.7%
(3,164)
-5.4%
(39,594)
-5.4%
Table continues on next page.
11
Variance
%
Reasons for m aterial deviations
The variance is a combination of under- and over expenditure on various items.
1. Employee related costs (under), largely due to the turnaround time in filling
vacancies mainly on externally-funded posts.
2. Contracted Services: EPWP and Labour Brokers (under), largely due to delays in
the implementation of EPWP projects w ith some projects expected to only start in
January 2015 and low er than anticipated expenditure on labour brokers, w hich is
demand driven and difficult to plan accurately.
3. Contracted Services: Repairs (over), largely due to accelerated spending on the
reactive maintenance component as a result of the high rate of vandalism and theft at
facilities.
4. Transfers & Grants (under), as payments to beneficiaries still needs to be
processed.
5. Pharmaceutical supplies and Nutrition: Milk formula (grant-funded) (over), mainly
due to the non-alignment of the period budget w ith the actuals to date.
6. Electricity (over), largely due higher than anticipated electricity cost for facilities in
Eskom-supplied areas.
The variance is a combination of under- and over-expenditure on various items.
1. Employee-related costs (under), due to the turnaround time in filling of vacancies
and the impact of the internal filling of vacant posts.
2. Councillor Remuneration (over), due to the non-alignment of the budgetary
allocation.
3. Other Expenditure (under), largely due to low er than anticipated expenditure on
various items w ithin this category.
4. Depreciation (over), mainly due to the earlier than expected capitalisation of
assets.
The variance largely consists of under- and over expenditure on various items.
1. Employee-related costs (under), due to the turnaround time in filling vacancies, the
impact of internal filling of vacancies and the delayed appointment of seasonal staff in
order to accommodate extensive recreational programmes.
2. Contracted Services: Repairs (under) and R&M Plants (over), due to the incorrect
settlement of R&M expenditure on General Expenses instead of Contracted Services.
3. Contracted Services (under) , due to delays in the implementation of EPWP projects
and contractor payments still to be processed.
4. Recreation ,Sport, Social Development programme, Security Services & Charges,
Furniture & Fittings (under) expenditure items, largely due to low er than anticipated
expenditure to date.
Rem edial or corrective steps/rem arks
The recruitment and selection process is on-going.
The period budget for EPWP projects w ill be aligned to the expected implementation
dates and the full allocation is expected to be spent by financial year-end.
Re-alignment of grant-funded expenditure w ill be effected in the adjustments
budget in January 2015.
Continuous monitoring is performed by the finance manager and corrective action
to align the period budgets w ith anticipated cash flow s w ill be undertaken, w here
required.
The filling of vacancies w ithin the Integrated Strat Comms, Branding & Marketing,
Trade and Investment and SPU departments are on hold until departmental
restructuring due to reshuffling and merging of certain functions is finalised.
Existing positions w ill be abolished to create new positions in accordance w ith
new priorities identified. The re-alignment of the budgetary allocation on councillor
remuneration w ere included in the January 2015 adjustments budget.
The situation is monitored by the finance manager and corrective action
implemented, w here required.
The filling of vacancies is on-going. The process of aligning the period budgets is
ongoing and virements w ill be processed w here necessary.
Annexure A: In-year report (December 2014)
Description
YTD
Variance
R thousands
Expenditure by Vote
Vote 4 - Compliance and
Auxiliary Services
Vote 5 - Corporate Services
(2,411)
-0.9%
(13,942)
-1.8%
Table continues on next page.
12
Variance
%
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
The variance consists of under- and over expenditure on various items.
1. Employee-related costs (under), due to low er than anticipated expenditure on long
service aw ards and leave payments, w hich are dependent on w hen employees
exercise the option to convert the leave days to cash and w hen employees resign or
retire.
2. Consultants - ex payroll (under), due to the non-alignment of the period budget w ith
the payment of quarterly meetings held.
3. Contracted Services - EPWP (under), due to the EPWP payroll conversion to SAP,
w hich w as put on hold resulting in savings that w ill be allocated to other job creation
projects.
4. Consultants (under), due to low er than anticipated requests for investigators and
delays in the finalisation of the External Quality Assurance review contract.
5. Other Expenditure (over), mainly due to higher than anticipated expenditure on
Legal Fees & Expenses relating to the settlement of litigations, w hich are difficult to
estimate as w ell as higher than anticipated expenditure for public functions.
6. Contracted Services (over), largely due to the earlier than anticipated payment to
the Department of Justice for municipal magistrates and MURP payment for the Cease
Fire project.
The variance consists of a combination of under- and over expenditure on various
items.
1. Employee-related costs (under), due to the turnaround time in filling vacancies, the
impact of the internal filling of vacancies as w ell as consequential vacancies.
2. Contracted Services: Repairs, Other Materials and Other Expenditure (under),
largely due to low er than anticipated expenditure to date.
3. Depreciation (over), mainly due to the earlier than expected capitalisation of assets
and creation of new asset classes w ith varying useful lives.
4. Loss on Foreign Exchange relating to IT-related licenses (over), due to R/$
exchange rate fluctuations, w hich is unpredictable thus making it difficult to plan
accurately.
5. Security Services & Charges (over), due to higher than planned expenditure to
date.
A review of the period budget w ith actual expenditure is on-going. The situation is
monitored by the finance manager and virements processed w here necessary.
Further adjustments w ill be made in January 2015 adjustments budget.
1. Departments are expediting the process of filling vacancies as and w hen
positions become vacant. The directorate's latest vacancy rate (as at 31
December 2014) is 6.92% w ith 93.08% of posts currently filled. All the
departments w ithin Corporate Services have prioritised and expedited the filling of
all vacancies. Where delays occur, corrective action is implemented immediately
and monitored by the department heads.
2. Alignment of the period budget w ith actual to date is ongoing.
3. A review of the budgetary allocations for Depreciation and various expenditure
items w as undertaken in the mid-year review and amendments w ill be
incorporated into the January 2015 adjustments budget.
4. Budgetary allocations on various expenditure items w ere review ed in the midyear review and amendments w ill be incorporated in the January 2015
adjustments budget.
5. Security Costs are being monitored and managed at a directorate level.
Annexure A: In-year report (December 2014)
Description
YTD
Variance
R thousands
Expenditure by Vote
Vote 6 - Economic,
Environment & Spatial Planning
592
Vote 7 - Finance
Vote 8 - Human Settlements
0.2%
(8,480)
-0.9%
(72,830)
-12.7%
Table continues on next page.
13
Variance
%
Reasons for m aterial deviations
The variance consists of mainly under- and over expenditure on various items.
1. Contracted services (over), largely due the EPWP Alien Vegetation Clearing project
progressing faster than anticipated.
2. Other Expenditure (over), due to the non-alignment of the period budget on various
items w ithin this category.
3. Employee related costs (under), due to the turnaround time in filling of vacancies,
the impact of the internal filling of vacancies and the low er than planned expenditure
on leave pay and long service aw ards. Cash pay-outs for leave and long service
aw ards are unpredictable and difficult to plan accurately as this is processed on
retirement or resignations of employees and w hen staff exercise their options to
convert long service leave days to cash.
4. Transfers & Grants (under), due to delays in the finalisation of the Memorandum of
Agreement w ith the University of Cape Tow n as the payment can only be processed
as and w hen all requirements for the disbursement of funds are met.
The variance consist of both under- and over expenditure.
1. Employee-related costs (under), due to the turnaround time in filling of vacancies,
the impact of the internal filling of vacant posts, delays w ith the appointment of
temporary staff for the Valuation department's data clean-up project and low er than
planned expenditure on leave pay and long service aw ards, w hich is linked to cash
pay-outs on retirement or resignation.
2. Contracted Services (under), largely due to settlement errors on R&M orders,
w hich resulted in less expenditure being reflected in the cost centres.
3. City Improvement Districts (MIDS/CIDS) (over), due to the early processing of
payments in December.
The variance consist of both under- and over expenditure.
1. Employee-related costs (under), due to the turnaround time in filling of vacancies
as w ell as the impact of the internal filling of vacancies (largely grant funded).
2. Contracted Services (under), w hich is linked to the rate of progress achieved on
housing development projects that is currently impacted by community unrest slow ing
dow n the delivery of housing opportunities. In addition, Province informed the City that
the amount gazetted for the Human Settlement Development Grant (HSDG) w ill be
reduced from R1.3 billion to R974 million. This portion of the grant w as erroneously
allocated to the City and should initially have been allocated to Province for various
housing-related projects. This further contributes to the under-expenditure as
projected monthly cash flow s are based on the full grant allocation.
3. Depreciation (over), w hich is largely affected by the capitalisation rate of assets
based on the completion and progress of capital projects.
4. Peoples Housing Process (PHP) payments (grant funded) (over), w hich is
dependent on the rate of progress achieved by the PHP projects; these projects are
all managed and controlled by communities ito the national PHP programme.
5. Indigent relief (over), due to higher than anticipated applications granted as a result
of the emphasis on debt management of housing arrears.
6. Subsidy on Homeow ners Redemption (under), due to low er than anticipated
expenditure to date as this cost is now largely funded from grant funding.
Rem edial or corrective steps/rem arks
The filling of vacancies is on-going.
The budgetary amendment for the EPWP Alien Vegetation project w ill be included
in the January 2015 adjustments budget.
The process of aligning the period budgets are ongoing and virements / journals
w ill be processed w here necessary.
The recruitment and selection process is underw ay. The over expenditure on
MIDS/CIDS w ill even out during January 2015 . Further monitoring and corrective
action w ill be undertaken by the respective finance manager w here required.
A review of the budgetary allocations for depreciation w as undertaken in the midyear review and amendments w ill be incorporated in the January 2015
adjustments budget.
The reduction of the HSDG and other amendments w ill also be included in the
January 2015 adjustments budget.
Expenditure trends are monitored on a monthly basis and the period budget w ill be
aligned to the cash flow projections.
Annexure A: In-year report (December 2014)
Description
YTD
Variance
R thousands
Expenditure by Vote
Vote 9 - Rates & Other
Vote 10 - Safety & Security
Variance
%
(5,210)
-1.2%
(46,679)
-5.5%
Vote 11 - Social and Early
Childhood Development
961
1.7%
Vote 12 - Tourism, Events and
Marketing
543
0.2%
Table continues on next page.
14
Reasons for m aterial deviations
The variance is largely due to low er than anticipated expenditure on Post Retirement
medical aid and Consultants.
The variance consists largely of a combination of under- and over expenditure on
various items.
1. Employee related costs (under), due to the turnaround time in the filling of
vacancies, the impact of the internal filling of vacancies and seasonal staff w ho are
only appointed during the peak season. Overtime and Long Service Aw ards also
reflects under expenditure, largely due to overtime, w hich is captured one month in
arrears as w ell as the impact of employees w ho exercise their option to convert long
service leave days to cash.
2. Depreciation (over), mainly due to the accelerated capitalisation of assets.
3. Contracted services (under), due to delays in finalising the Memorandum of
Agreement w ith the SPCA , the slow er than anticipated rate of implementation of
EPWP projects and delays w ith the appointment of contractors for R&M projects.
4. Other Expenditure (under), due to (a) Commission Cost, w hich is paid one month in
arrears, (b) delays in the aw arding of the uniform tender, w hich is still in the process
of being finalised, (c) low er than anticipated year-to-date expenditure on Fuel Costs
as a result of stricter control measures implemented and Licences & Permits, w hich is
payable later in the financial year.
The variance consists of a combination of under- and over expenditure on various
items.
1. Other Expenditure (over), as a result of implementation of the directorate's
2014/15 business plan, w hich resulted in the non-alignment of the period budget w ith
the actual to date on various items. This includes expenditure relating to catering,
transport and hire charges for various social development programmes.
2. Employee related costs (under), due to the turnaround time in filling vacancies, the
impact of the internal filling of vacancies as w ell as consequential vacancies.
The variance consists of a combination of under- and over expenditure on various
items.
1. Transfers & Grants (over), largely due to the non-alignment of the period budget
w ith the actuals to date.
2. Other Expenditure (over), mainly on (a) Public Functions, w hich relates to
expenditure incurred for the sw itching on of the festive lights, (b) Security Services
& Charges and Cleaning Costs, due to additional events held at the Cape Tow n
Stadium and other facilities, w hich resulted in the non-alignment of the period budget
w ith the actuals to date.
3. Employee related costs (under), due to the turnaround time in filling vacancies, the
impact of the internal filling of vacancies as w ell as consequential vacancies.
4. Consultants (under), largely due to delays in finalising the Arts & Culture request
for quotations.
Rem edial or corrective steps/rem arks
The situation w ill be further monitored by the respective finance manager.
1. All vacancies are at various stages w ithin the recruitment and selection
process. The directorate had 300 vacancies in December 2014. 12 positions w ere
terminated for the period ending December 2014.
2. A review of the budgetary allocations for depreciation w as undertaken in the
mid-year review and amendments to the provision for depreciation w ill be included
in the January 2015 adjustments budget.
3. The Memorandum of Agreement w ith the SPCA has been signed; aw aiting final
approval before payments can be processed.
4. A review of the period budget w ill be undertaken to align the period budget w ith
the anticipated cash flow s.
A review of the period budgets is on-going w ith alignment of the period budgets,
w here required. The situation w ill be monitored by the respective finance manager
and virements processed w here necessary.
A review of the period budget is on-going w ith alignment of the period budgets,
w here required. Other amendments on various expenditure items w ill be
incorporated in the January 2015 adjustments budget. The situation w ill be
monitored by the respective finance manager.
Annexure A: In-year report (December 2014)
Description
Expenditure by Vote
Vote 13 - Transport for Cape
Tow n
YTD
Variance
R thousands
(82,336)
Table continues on next page.
15
Variance
%
-7.2%
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
The variance consist of both over- and under expenditure.
The recruitment and selection process is ongoing.
1. Employee related costs (under), due to the turnaround time in filling of vacancies, Amendments on various expenditure items w ill be included in the January 2015
the impact of the internal filling of vacant posts and low er than planned expenditure
adjustments budget.
on leave pay and long service aw ards linked to cash pay-outs on retirement or
resignations.
2. Depreciation (under), w hich is affected by the capitalisation rate of assets, based
on the completion and progress of capital projects.
3. Other Materials (over), as a result of increased tenders for materials, w hich has
led to an increase in procurement of bitumen and road reseal products by depots for
pot hole repairs and minor resurfacing projects.
4. Contracted Services (under), largely due to outstanding processing of MyCiTi VOC
invoices to the value of R30 million for November 2014, low er than anticipated tender
rates for the provision of the MyCiTi Station Management Contracts and the impact of
reduced operating hours at some MyCiTi stations. In addition, R&M Contracted
Services reflects under expenditure, largely due to the late start of tw o major
contractors for resurfacing projects, due to more rainy periods in the first tw o
months of 2014/15.
5. Other Expenditure (under), largely due to (a) the delay in spending on the National
land Transport Act (NLTA) project, due to incorrect grant funding, (b) low er than
anticipated spending on Security Services & Charges, due to the delay in receiving
cash tranches from National Treasury and, (c) low er than planned expenditure on
Cleaning Costs.
Annexure A: In-year report (December 2014)
Description
Expenditure by Vote
Vote 14 - Utility Services
16
YTD
Variance
R thousands
(253,429)
Variance
%
-3.8%
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
The variance is a combination of under-and over expenditure.
1. Employee related costs, due to the turnaround time in filling vacancies, the impact
of the internal filling of vacant posts and low er than planned expenditure on leave
pay and long service aw ards linked to cash pay-outs on retirement or resignations
and encashment of long service leave days.
2. Depreciation, mainly due to the impact of the extended useful life of assets w ithin
the Cape Tow n Electricity department.
3. Bulk purchases - Water (under), largely due to the late submission of invoices for
Raw Water and Water Levy payments.
4. Contracted Services (under), due to delays in the finalisation of tenders for meter
reading and portable toilets project (Water & Sanitation), delays w ith the roll-out of the
Radio Frequency Identification Device project (Solid w aste Management) and
implementation of EPWP projects.
5. Consultant Fees (under), due to savings realised as a result of a reduction in
electricity vendors and delays in aw arding of tender(s) to appointment a transaction
adviser and consultants for w aste disposal alternatives w ithin Solid Waste
Management and Water & Sanitation.
6. Minor Tools, Equipment and Other Materials (under), largely due to delays in
aw arding the tender for the purchase of refuse containers (Solid w aste
Management).
7. Chemicals (under), as a result of low er than anticipated expenditure to date.
8. Labour Brokers (over), due to the appointment of temporary staff in critical
positions as a result of delays in the filling of vacancies (Solid Waste Management).
9. Fuel (over), due to higher than anticipated fuel consumption resulting from price
fluctuations, w hich makes it difficult to accurately plan per month(Solid w aste
Management).
(10) Overtime (over) due to requirements for emergency burst mains/sew er pipes,
meter leaks and blocked sew ers (Water Services).
(11) Various other items reflects under - and over expenditure w hich are demand
driven and difficult to predict accurately per monthly cycles
1. The recruitment and selection processes are ongoing.
2. Amendments on various expenditure items w ill be included in the January 2015
adjustments budget
3. Outstanding invoices for Raw Water and Water Levy w ere received during
December 2014; the payment is being processing. The Water & Sanitation
department is follow ing up on outstanding invoices and further payments w ill be
processed w hen the invoices are received.
The situation is continuously monitored by the respective finance manager.
Annexure A: In-year report (December 2014)
Table C4: Monthly Budget Statement – Financial Performance (revenue by source
and expenditure by type)
The table below is a view of the budgeted financial performance in relation to the revenue
by source and expenditure by type.
2013/14
Description
Budget Year 2014/15
Audited
Original
Adjusted
Outcome
Budget
Budget
YTD actual
YTD budget
YTD
YTD
Full Year
variance
variance
%
Forecast
R thousands
Revenue By Source
Property rates
Property rates - penalties & collection charges
5,546,774
–
5,942,513
–
5,942,513
–
3,001,251
–
2,970,649
–
30,602
–
1.0%
5,964,279
–
Service charges - electricity revenue
Service charges - water revenue
9,323,160
2,185,812
10,072,265
2,540,080
10,072,265
2,493,562
5,086,448
1,093,939
5,010,996
1,103,235
75,452
(9,296)
1.5%
-0.8%
10,071,811
2,464,487
Service charges - sanitation revenue
1,188,051
1,338,202
1,327,720
598,904
593,510
5,394
0.9%
1,316,720
Service charges - refuse revenue
Service charges - other
920,173
286,484
989,912
321,805
989,912
314,784
482,863
186,093
494,956
148,678
(12,093)
37,415
-2.4%
25.2%
970,912
360,711
Rental of facilities and equipment
Interest earned - external investments
317,890
461,053
358,711
275,762
358,742
275,762
179,088
254,876
170,712
167,344
8,376
87,532
4.9%
52.3%
358,438
275,762
Interest earned - outstanding debtors
192,312
208,262
212,262
98,442
101,727
(3,285)
-3.2%
197,086
Dividends received
–
–
–
–
–
–
–
Fines
729,139
175,648
916,229
109,186
87,824
21,362
24.3%
916,393
Licences and permits
Agency services
44,386
150,256
40,388
150,439
40,378
153,993
21,565
83,246
19,722
65,097
1,844
18,149
9.3%
27.9%
40,988
153,993
Transfers recognised - operational
2,399,033
3,498,169
3,539,580
1,618,661
1,690,699
(72,038)
-4.3%
3,460,886
Other revenue
Gains on disposal of PPE
2,252,330
64,906
2,338,330
120,500
2,348,637
120,500
1,522,939
28,440
1,493,137
31,338
29,803
(2,898)
2.0%
-9.2%
2,338,406
120,500
26,061,758
28,370,984
29,106,838
14,365,940
14,149,624
216,316
1.5%
29,011,371
8,640,854
8,940,483
8,939,329
4,471,412
4,603,804
(132,393)
-2.9%
8,818,467
119,709
133,619
133,619
60,819
59,997
822
1.4%
133,619
Debt impairment
1,295,526
950,533
1,691,334
475,376
475,376
0
0.0%
1,691,334
Depreciation & asset impairment
1,784,970
2,154,335
2,154,335
946,295
1,065,474
(119,179)
-11.2%
2,014,841
807,283
919,232
912,241
374,819
374,508
311
0.1%
912,233
Bulk purchases
Other materials
6,591,232
299,153
7,050,011
387,117
7,046,661
382,036
3,296,986
164,741
3,316,375
164,610
(19,389)
132
-0.6%
0.1%
7,086,261
353,408
Contracted services
3,312,529
4,205,198
4,201,676
1,411,146
1,597,710
(186,564)
-11.7%
3,999,835
Transfers and grants
Other expenditure
115,021
3,563,228
125,354
3,789,486
138,609
3,848,352
85,397
1,707,267
82,027
1,797,163
3,369
(89,896)
4.1%
-5.0%
136,839
4,126,536
29,273,373
Total Revenue (excluding capital transfers
and contributions)
Expenditure By Type
Employee related costs
Remuneration of councillors
Finance charges
Loss on disposal of PPE
Total Expenditure
Surplus/(Deficit)
Transfers recognised - capital
Contributions recognised - capital
Contributed assets
1,944
26,531,448
–
28,655,369
–
–
–
–
–
29,448,192
12,994,258
13,537,045
(542,787)
-4.0%
(469,690)
(284,384)
(341,354)
1,371,682
612,579
759,103
123.9%
2,052,758
43,022
2,817,627
65,226
3,102,985
65,749
1,017,765
23,725
977,787
22,077
39,977
1,648
4.1%
7.5%
33,387
–
–
1,500
–
1,500
(262,001)
3,184,165
52,010
–
Surplus/(Deficit) after capital transfers &
contributions
1,659,476
2,598,469
2,827,380
2,414,672
1,612,444
2,974,175
Taxation
Surplus/(Deficit) after taxation
–
1,659,476
–
2,598,469
–
2,827,380
–
2,414,672
–
1,612,444
–
2,974,175
Attributable to minorities
–
–
–
–
–
–
Surplus/(Deficit) attributable to municipality
Share of surplus/ (deficit) of associate
1,659,476
–
2,598,469
–
2,827,380
–
2,414,672
–
1,612,444
–
2,974,175
–
Surplus/ (Deficit) for the year
1,659,476
2,598,469
2,827,380
2,414,672
1,612,444
2,974,175
The tables below reflect the percentage variance for revenue by source and expenditure by
type, reasons for material deviations and the remedial action thereof, if required.
17
Annexure A: In-year report (December 2014)
Material variance explanations for revenue by source (refer Table C4)
Description
YTD Variance
R thousands
Revenue By Source
Property rates
Property rates - penalties &
collection charges
Service charges - electricity
revenue
Service charges - w ater revenue
Service charges - sanitation
revenue
Service charges - refuse revenue
Table continues on next page.
18
30,602
–
Variance
%
1.0%
-
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
The over-recovery is mainly on Property Rates due to misalignment of the period
The budget including cash flow s w ere review ed during the mid-year review
budget w ith the number of days billed for the month. This over-recovery w ill be
process. Situation w ill be closely monitored and further amendments w ill be
used to cover the impact of valuation objections and appeals, w hich might result in effected in the 2015/16 draft budget, if necessary.
a reduction in the rates billed.
2. Income Forgone is slightly under-spent and is dependant on the number of
applications received and processed to date.
n/a
n/a
75,452
1.5%
The over-recovery is mainly on Electricity Sales (Credit Meters) and is
predominantly influenced by consumer demand, w hich resulted in a higher than
planned sale of electricity to date.
It is not possible to accurately determine a trend as consumption is demand
driven. The sale of electricity is closely monitored on a monthly basis.
(9,296)
-0.8%
The under-recovery is mainly on Water Sales betw een the different categories of
consumers, w here the actual consumption to date is low er than anticipated. The
sale of w ater is demand driven and consumption is influenced by a number of
factors, such as w ater saving initiatives, tariffs, w eather conditions, consumer
demand etc.
Adjustments to align the period budget w ith latest trends w ill be made in the
adjustments budget in January 2015.
5,394
0.9%
The over-recovery is mainly on Sew erage Sales betw een the different categories Adjustments w ere made during the mid-year review to align the period budget w ith
of consumers. The charges on sew erage are demand driven and linked to w ater latest trends.
consumption and the factors influencing w ater consumption.
(12,093)
-2.4%
Under recovery reflects against:
Adjustments w ere made during the mid-year review to align the period budget w ith
1. Refuse Charges, due to the ongoing data-clean-up initiative resulting in billing
latest trends.
corrections and account adjustments.
2. Disposal Coupon Fees and Waste Fees, due to low er than planned utilisation of
the dump sites by consumers. The use of w aste dump sites is demand-driven and
difficult to accurately predict.
Annexure A: In-year report (December 2014)
Description
YTD Variance
R thousands
Revenue By Source
Service charges - other
Rental of f acilities and equipment
37,415
8,376
Variance
%
25.2%
4.9%
Interest earned - external
investments
87,532
52.3%
Interest earned - outstanding
debtors
(3,285)
-3.2%
Dividends received
Fines
–
21,362
24.3%
Licences and permits
Table continues on next page.
19
1,844
9.3%
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
The over-recovery is a combination under-/over-recovery on various revenue
elements in this category.
1. Admission Fees (Community Services) (under), due to low er than planned
revenue at f acilities (i.e. sw imming pools).
2. Advertising Fees (TCT) (under), due to reversal of IRT Media billings on
advertising revenue.
3. Bus f ares-Transit Products (TCT) (over), due to higher than planned usage of
the Transit Stored Value Tappings system.
4. Fire Fees (Saf ety & Security)(over), w here revenue to date is higher than
planned as it is not possible to determine bef orehand the number of f ires and
w hen such f ires w ill occur.
5. Miscellaneous Charges (Saf ety & Security) (over), as a result of stricter ByLaw Enf orcement methods resulting in an increase in the number of animals and
unregistered inf ormal trader goods impounded, increased cell phone
impoundments and increased number of disks issued f or the disabled.
6. Recoveries of Inf rastructure Maintenance (Cape Tow n Electricity) (over), due to
the payment f rom Eskom f or unplanned inf rastructural w ork done by City.
7. Building Levies (EESP) (over), due to the implementation of the new IPOS
system, w hich has contributed to the f ast-tracking of plan approvals as w ell as an
upsw ing in the building environment.
8. Industrial Ef f luent ( Water & Sanitation) (under), w here revenue is low er than
planned due to less charges in accordance w ith compliance standards.
The over-recovery is a combination of under-/over-recovery:
1. Human Settlements (under), due to the transf er of rental units to tenants
resulting in low er than anticipated rental.
2. Community Services (under), w here low er than anticipated revenue w as
received, due to outstanding payments f rom SASSA f or hall rentals.
3. Finance Services (over), due to increased debt management initiatives to collect
property rentals due to the city.
4. Tourism, Events and Marketing directorate (over), due to additional events held
at the Cape Tow n Stadium.
The over -recovery is w ithin Finance, due to higher than expected interest
received on the available cash and investment f unds in the month of December
2014.
Admission Fees (Community Service): The periodic budget f or admission f ees w ill
be adjusted in the adjustments budget in January 2015.
Advertising Fees billings (TCT) is still under investigation.
Bus f ares-Transit Products have been review ed during the mid-year review to
align w ith latest trends.
Miscellaneous Revenue (Saf ety & Security): Adjustments w ill be made in the
adjustments budget in January 2015.
The under-recovery is mainly due to low er than anticipated interest billed on
outstanding rates debtors at the end of December. In addition, there are
continuous rates accounts corrections and adjustments resulting in reversal of
charges raised in prior periods.
The over-recovery is mainly on Traf f ic Fines as a result of stricter law
enf orcement methods, resulting in an increase in the number of enf orcement
contraventions identif ied, more f ines issued and paid f or the period.
The over-recovery is mainly w ithin TCT due to higher than anticipated revenue
received to date. Within TCT major role players such as Telkom are not opting f or
trenchless methodology iro the tarif f s f or w ay leave permits, resulting in
ref undable deposits being f orf eited.
The situation is monitored on a monthly basis.
Budget and cash f low s w ere review ed during the mid-year review process;
amendments w ill be made, w here required, in the adjustments budget in January
2015.
Interest on Investments is monitored by the Investment Section on a monthly basis.
The situation is monitored on a monthly basis.
Licences and Permits are demand driven and dif f icult to plan accurately per
annum.
Annexure A: In-year report (December 2014)
De s cription
Re ve nue By Source
Agency services
YTD Variance
R thous ands
Variance
Re as ons for m ate rial de viations
18,149
27.9%
(72,038)
-4.3%
Other revenue
29,803
2.0%
Gains on disposal of PPE
(2,898)
-9.2%
Transf ers recognised - operational
20
Re m e dial or corre ctive s te ps /re m ark s
%
The over-recovery is mainly w ithin Finance, due to the July 2014 tarif f increase
and the increased number of vehicle licence renew als. The unpredictable nature
of monthly payments received makes it dif f icult to accurately plan f or
monthly/annual receipts.
The under-recovery is a combination of under-/over-recovery:
1. National Government -Conditional Grants (R11 million over): The income relates
to the f unding f or pre-planning and the capacity grant to mainly f und staf f linked to
the housing f unction to be carried by the City. Revenue currently slightly ahead of
budget, due to higher than anticipated expenditure incurred on pre planning and
f easibility studies
2. Provincial Government - Conditional Grants (R57 million under): Revenue
recognition is linked to the rate of progress achieved on housing development
projects. Community unrest slow s dow n the delivery of housing opportunities.
Province inf ormed the City that the amount gazetted f or HSDG w ill be reduced
f rom R1. 3 billion to R974 million. This portion of the grant w as erroneously
allocated to the City and should initially have been allocated to Province f or various
housing-related projects.
3. TCT (R27 million under), due to:
a. Low er than anticipated tender rates on the provision f or the MyCiTi Station
Management Contracted Services.
b. Reduced operating hours at some MyCiTi stations resulting in decreased costs.
c. Delay in spending on Security (CCTV maintenance MyCiTi , Surveillance and Hire
of Vehicles f or Law Enf orcement Personnel Services), due to delay in receiving
cash tranches f rom National Treasury.
4. Health (R7.9 million over), due to higher than planned expenditure to date on
pharmaceuticals and laboratory costs. Revenue is linked to expenditure incurred.
This is demand driven and dif f icult to plan accurately per annum. The situation is
closely monitored.
The main contributors to this over-recovery are:
1. Salvaged items (R3.5 million over) mainly w ithin Cape Tow n Electricity, due to
higher than planned sale of salvaged items.
2. Miscellaneous (R13.7 million over) w ithin Saf ety & Security, due to stricter bylaw enf orcement methods resulting in an increase in the number of animals and
unregistered inf ormal trader goods impounded, increased number of cell phone
impoundments and increased number of disks f or the disabled being issued.
3. Recoveries - Other (R5.8 million over) w ithin the f ollow ing directorates/
departments:
a. Cape Tow n Electricity, due a higher than planned number of requests f rom
customers f or ad-hoc w ork to be perf ormed and damages paid.
b. Compliance & Auxiliary Services and Human Settlements f or recovery of legal
f ees.
c. Finance f or CID Levies (R2.2 million over), due to an increased number of
contributing properties w ithin the CID areas.
4. Development Levies (R4.7 million over) mainly w ithin Cape Tow n Electricity and
TCT, w here more than planned payments f rom developers f or developments to be
undertaken in the City w ere received.
The under-recovery is w ithin Water & Sanitation, Cape Tow n Electricity and
Human Settlements w here the sale of PPE to date is less than anticipated. The
actual sale of PPE is linked to demand and routine auctions and is theref ore dif f icult
to plan accurately.
The situation is monitored by the respective f inance managers on a monthly basis.
Corrective action is not required at this time.
Adjustments to budgets and cash f low s w ill be made in adjustment budget in
January 2015.
The situation is monitored on a monthly basis and periodic budgets are review ed
and adjusted w here possible.
Annexure A: In-year report (December 2014)
Material variance explanations for expenditure by type (refer Table C4)
Description
YTD Variance
R Thousands
Variance
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
The variance is mainly due to (1) the turnaround time in the filling of vacancies as
w ell as the impact of the internal filling of vacant posts, (2) appointment of
seasonal w orkers and temporary staff, w hich is dependent on peak seasons and
w hen departments require additional labour and (3) low er than anticipated
expenditure on leave pay and long service aw ards linked to cash pay-outs on
retirements or resignations as w ell as employees w ho exercise their option to
convert long service leave days to cash.
Immaterial variance.
The variance is largely due to the capitalisation rate of assets, w hich is based on
the completion and progress of capital projects. The impact of the extended useful
life of assets w ithin the Cape Tow n Electricity department further contributed to
the variance.
Immaterial variance.
The filling of vacancies is on-going and seasonal staff are appointed as required.
Savings realised to date have been set aside and ring-fenced w ithin investment
accounts to cover unfunded cash commitments as approved by Council. The
balance of the long service aw ard and leave budgetary allocations w ill be
transferred to the respective provisions, in accordance w ith GRAP 19, at financial
year.
-0.6%
The variance is largely due to delays in submission of the invoice for Raw Water
and Water Levy payments.
The outstanding invoices w ere received during December 2014 and the
processing of payments are underw ay. The Water & Sanitation department is
follow ing up on outstanding invoices and payments w ill be processed as and
w hen these invoices are received.
0.1%
Immaterial variance.
-
%
Expenditure By Type
Employee related costs
(132,393)
-2.9%
Remuneration of councillors
Debt impairment
Depreciation & asset impairment
822
0
(119,179)
1.4%
-11.2%
Finance charges
Bulk purchases
Other materials
Table continues on next page.
21
311
(19,389)
132
0.1%
A review of the budgetary allocations for depreciation w as undertaken in the midyear review and amendments w ill be incorporated into the January 2015
adjustments budget.
The situation is monitored by the finance manager.
Annexure A: In-year report (December 2014)
Description
Expenditure By Type
Contracted services
Transfers and grants
Other expenditure
Loss on disposal of PPE
22
YTD Variance
R Thousands
(186,564)
3,369
(89,896)
–
Variance
Reasons for m aterial deviations
Rem edial or corrective steps/rem arks
Major contributors to the variance are:
1. Utility Services, due to delays in the finalisation of tenders for meter reading
and portable toilets project (Water & Sanitation), the roll-out of the Radio
Frequency Identification Device project (Solid Waste Management) and
implementation of EPWP projects (Solid Waste Management and Water &
Sanitation).
2. TCT, largely due to delays in processing of November 2014 MyCiTi VOC
invoices (to the value of R30 million), low er than anticipated tender rates for the
provision of the MyCiTi Station Management Contracts and reduced operating
hours at some MyCiTi stations. In addition, R&M Contracted Services reflects under
expenditure, largely due to the late start by tw o major contractors for resurfacing
projects.
3. Community Services, due to incorrect posting of expenditure to General
Expenses.
4. Delays in the implementation of EPWP projects.
5. Safety & Security, due to delays in finalising the Memorandum of Agreement
w ith the SPCA.
6. Corporate Services, due to low er than anticipated year-to-date expenditure.
7. Human Settlements, w here expenditure is linked to the rate of progress
achieved on housing development projects, w hich are impacted by community
unrest slow ing dow n the delivery of housing opportunities. In addition, Province
informed the City that the amount gazetted for the Human Settlement Development
Grant (HSDG) w ill be reduced from R1.3 billion to R974 million. This portion of the
grant w as erroneously allocated to the City and should initially have been allocated
to Province for various housing-related projects. This further contributes to the
under expenditure as projected monthly cash flow s are based on the full budget
allocation.
The variance consists of under- and over expenditure:
1. City Health (under), as some second and third payments to beneficiaries still
needs to be processed.
2. Tourism, Events & Marketing (over). largely as a result of the non-alignment of
the period budget w ith the actual payments to date.
The variance consists of under- and over expenditure. The main contributors to
the under expenditure are (1) Commission Cost (Safety & Security), Hire Charges
and Consultant Fees (Solid Waste Management), Chemicals (Water & Sanitation),
Consultants (Utility Services) and License & Permits, largely due to low er than
anticipated expenditure incurred to date. Various items w ithin this category are
demand driven and difficult to predict accurately per monthly cycles.
Over expenditure reflects on Security Services & Charges, Fuel, Pharmaceutical
Supplies, largely due to the non-alignment of the period budget.
Expenditure is expected to increase in the upcoming months as projects are rolled
out and implemented. The outstanding IRT invoices w ill be processed once
finalised and R&M expenditure trend is expected to increase as commitments are
realised.
The reduction of the HSDG and other amendments w ill be included in the January
2015 adjustments budget.
-
-
%
-11.7%
4.1%
-5.0%
-
A review of the period budget w ill be undertaken and corrective action
implemented w here required.
The situation is monitored by the respective finance mangers w ithin the
directorates.
Amendments to address the variances have been included in the proposed
January 2015 adjustments budget.
Annexure A: In-year report (December 2014)
Table C5: Monthly Budget Statement - Capital Expenditure (municipal vote, standard
classification and funding)
The table below reflects the City’s capital programme in relation to capital expenditure by
municipal vote; capital expenditure by standard classification; and funding sources required
to fund the capital budget, including information on capital transfers from National and
Provincial departments.
2013/14
Vote Description
Budget Year 2014/15
Audited
Original
Adjusted
Outcome
Budget
Budget
YearTD actual
YearTD
budget
YTD variance
R thousands
YTD
Full Year
variance
Forecast
%
Multi-Year expenditure appropriation
Vote 1 - City Health
Vote 2 - City Manager
Vote 3 - Community Serv ices
Vote 4 - Compliance and Aux iliary Serv ices
Vote 5 - Corporate Serv ices
Vote 6 - Economic, Env ironment & Spatial Planning
Vote 7 - Finance
Vote 8 - Human Settlements
Vote 9 - Rates & Other
Vote 10 - Safety & Security
Vote 11 - Social and Early Childhood Dev elopment
Vote 12 - Tourism, Ev ents and Marketing
Vote 13 - Transport for Cape Tow n
Vote 14 - Utility Serv ices
Total Capital Expenditure
25,185
13,070
161,422
24,044
286,544
54,193
13,315
564,398
–
63,809
7,142
23,101
1,113,033
2,153,036
4,502,293
21,966
6,771
203,711
13,126
359,474
119,215
105,509
860,855
–
70,559
18,010
37,781
1,603,985
2,790,354
6,211,315
26,263
7,751
254,471
18,093
364,316
67,760
109,506
897,888
–
82,264
18,489
40,753
1,739,661
2,985,890
6,613,106
5,514
4,104
85,656
2,119
68,497
12,661
24,055
330,000
–
19,650
3,073
5,397
523,119
703,712
1,787,557
8,134
2,267
95,066
5,697
124,388
18,797
41,823
339,129
–
34,045
6,490
16,344
498,843
551,388
1,742,411
(2,620)
1,836
(9,409)
(3,578)
(55,890)
(6,137)
(17,768)
(9,128)
–
(14,395)
(3,418)
(10,947)
24,276
152,324
45,146
-32.2%
81.0%
-9.9%
-62.8%
-44.9%
-32.6%
-42.5%
-2.7%
-42.3%
-52.7%
-67.0%
4.9%
27.6%
2.6%
22,170
14,638
249,537
7,401
392,144
56,078
92,389
1,140,780
–
82,247
22,608
37,235
1,823,823
2,390,568
6,331,619
Capital Expenditure - Standard Classification
Governance and administration
Ex ecutiv e and council
Budget and treasury office
Corporate serv ices
Community and public safety
Community and social serv ices
Sport and recreation
Public safety
Housing
Health
Economic and environmental services
Planning and dev elopment
Road transport
Env ironmental protection
Trading services
Electricity
Water
Waste w ater management
Waste management
Other
Total Capital Expenditure - Standard Classification
331,690
19,286
11,085
301,319
860,117
48,114
134,842
88,074
564,398
24,690
1,190,510
59,776
1,116,363
14,370
2,119,975
1,151,286
458,746
372,281
136,619
1,043
4,502,293
510,823
34,406
14,032
462,384
1,232,384
109,187
130,805
109,640
860,855
21,896
1,726,276
99,620
1,613,361
13,295
2,741,833
1,255,722
513,312
555,899
415,875
1,025
6,211,315
519,812
34,866
15,024
469,921
1,346,943
110,804
183,029
128,980
897,888
26,242
1,816,721
52,032
1,749,161
15,528
2,929,630
1,331,726
520,696
639,311
436,875
1,023
6,613,106
103,113
5,464
8,143
89,506
459,640
30,557
60,374
33,195
330,000
5,514
541,643
9,613
529,837
2,193
683,161
293,417
165,765
145,885
77,974
121
1,787,557
183,446
10,395
6,881
166,170
504,623
38,105
72,648
46,607
339,129
8,134
521,847
13,785
505,610
2,453
532,495
187,474
119,018
140,110
85,270
623
1,742,411
(80,333)
(4,931)
1,262
(76,664)
(44,983)
(7,548)
(12,274)
(13,412)
(9,128)
(2,620)
19,795
(4,172)
24,227
(260)
150,667
105,943
46,748
5,774
(7,296)
(502)
45,146
-43.8%
-47.4%
18.3%
-46.1%
-8.9%
-19.8%
-16.9%
-28.8%
-2.7%
-32.2%
3.8%
-30.3%
4.8%
-10.6%
28.3%
56.5%
39.3%
4.1%
-8.6%
-80.6%
2.6%
534,563
30,692
16,582
487,289
1,568,156
101,439
183,019
120,769
1,140,780
22,149
1,885,810
41,844
1,832,831
11,135
2,343,091
1,021,435
543,043
549,089
228,501
1,023
6,331,619
Funded by:
National Gov ernment
Prov incial Gov ernment
District Municipality
Other transfers and grants
Transfers recognised - capital
Public contributions & donations
Borrowing
Internally generated funds
Total Capital Funding
1,768,880
283,513
–
926
2,053,319
44,022
1,856,889
548,064
4,502,293
2,515,669
292,065
–
2,100
2,809,834
73,019
2,350,301
978,161
6,211,315
2,768,260
324,831
–
2,274
3,095,365
73,369
2,446,723
997,648
6,613,106
848,486
169,156
–
153
1,017,796
23,694
604,476
141,591
1,787,557
778,853
154,505
–
1,298
934,657
20,779
617,766
169,210
1,742,411
69,633
14,651
–
(1,145)
83,139
2,915
(13,289)
(27,618)
45,146
8.9%
9.5%
2,867,300
315,880
–
2,274
3,185,453
50,723
2,277,157
818,287
6,331,619
-88.2%
8.9%
14.0%
-2.2%
-16.3%
2.6%
The table below reflects the percentage variance for capital expenditure by vote as well as
reasons for material deviations and the remedial action thereof, if required.
23
Annexure A: In-year report (December 2014)
Material variance explanations for capital expenditure (refer Table C5)
Description
Capital Expenditure by
Vote
Vote 1 - City Health
YTD
Variance
R
thousands
Variance
%
Reasons for material deviations
Remedial or corrective steps/remarks
(2,620)
-32.2%
Delays in the submission of payment certificates from contractors and/or
invoices for work done in December 2014 for the following projects:
a. New Environmental Health Office - Khayelitsha,
b. St Vincent clinic - extensions,
c. Tafelsig clinic - extensions, and
d. Mzamomhle clinic - extensions.
Vote 2 - City Manager
1,836
81.0%
1. Project and Portfolio Management (PPM) project progressing better than Cash flows to be amended in the adjustments budget in January 2015.
anticipated, due to the acceleration of the project deliverables.
2. Furniture and Equipment have been delivered earlier than anticipated.
Vote 3 - Community
Services
(9,409)
-9.9%
1. City Parks - Cemetery Upgrades & Extensions: Delays in approval of
Budget and cash flows to be amended in the adjustments budget in
building plans for alterations to Maitland Crematorium and signing off of
January 2015.
invoice by Civil Engineer who is on leave.
2. Sport, Recreation and Amenities:
a. Solomon Mahlangu Hall: Contractor has handed in letter of termination
of contract.
b. Sport and Recreation Facilities Upgrade: Retreat Swimming Pool Roof
enclosure delayed, due to slow vendor performance, which has now been
resolved.
c. Imizamo Yethu Sports Complex Upgrade: Delays with electrical and
water connections.
d. Upgrade Ruyterwacht Swimming Pool delayed, due to elemental
estimates exceeding budget.
3. Library and Information Systems: New Regional Library in Kuyasa,
Khayelitsha delayed, due to steel industry strike. Contractor has resumed
work and is currently on track with the revised implementation programme
and approved practical completion date of 02 September 2015.
Table continues on next page.
24
A follow-up will be made with the contractors once they are back from the
Builders' holiday. Cash flows will be adjusted, based on information
regarding historical submissions, during the adjustments budget in
January 2015.
Annexure A: In-year report (December 2014)
Description
Capital Expenditure by
Vote
Vote 4 - Compliance and
Auxiliary Services
Vote 5 - Corporate
Services
Vote 6 - Economic,
Environment & Spatial
Planning
YTD
Variance
R
thousands
Reasons for material deviations
Remedial or corrective steps/remarks
1. Cash flow to be amended in the adjustments budget in January 2015.
The final payment will be processed once all the outstanding work on the
snag list has been completed.
2. The project manager will follow-up with the contractor regarding the
outstanding completion certificate. Cash flow to be amended in the
adjustments budget in January 2015.
3. Cash flow to be amended in the adjustments budget in January 2015,
taking into account the final penalties imposed.
4. The budget for all the USDG-funded projects will be transferred to the
implementing departments during the adjustments budget in January
2015. Outstanding invoices will be processed thereafter.
5. Awaiting delivery.
Remaining orders will be expedited and project accelerated, where
possible. The directorate is confident that funds will be spent by or before
30 June 2015.
Budget and cash flow will be amended in the adjustments budget in
January 2015.
(3,578)
-62.8%
1. The Lentegeur Subcouncil Offices: Project has been completed;
building has been commissioned although payment of the final invoice is
being held back until all outstanding work on the snag list is completed.
2. The Khayelitsha Training Centre: Project completed and commissioned;
awaiting completion certificate from the contractor before final payment is
made.
3. Work Live Units: The final invoice has been received from contractor; the
treatment of penalties, due to the delay in implementing this project,
however, remains a challenge.
4. USDG-funded projects have been budgeted incorrectly within MURP.
5. Other projects: Computers and furniture has been ordered.
(55,890)
-44.9%
Broadband project - Tender 111Q/2012/13 (Construction of
Telecommunication Switching Centres): Adjusted prices relating to local
services and goods (CPAP) was approved by SCM on 30 October 2014.
The critical deviation report to the SCMBAC regarding the revised pricing
schedule to address the exchange rate issue was only approved by SCM
on 08 December 2014. Therefore, very few purchase orders could be
issued / work relating to the construction of Telecoms switching facilities
commenced for the first 6 months of the financial year. However, the
majority of purchase orders have now been issued and work will
commence in January 2015.
(6,137)
-32.6%
1. Quality Public Spaces - Strand Pavilion precinct: A risk assessment
Budget and cash flows to be amended in the adjustments budget in
was undertaken to inform the staging of the Pavilion and Seawall Upgrade January 2015.
contracts. The preliminary investigations reveal significant risk and cost
reductions associated with first undertaking the construction of the
Seawall, therefore it was decided to re-phase the project over the next two
financial years to allow for the Seawall project to be completed.
2. Quality Public Spaces - Langa station upgrade: Community unrest and
instability contributed to the delay in implementation of this project.
3. Integrated Planning & Operating System - Phase 2 still running slightly
behind schedule as a result of some contractors being on leave or in
certain cases leaving the project. More contractors have been appointed to
fast-track performance.
4. Equipment: Orders will only be placed once IPOS project is completed.
Table continues on next page.
25
Variance
%
Annexure A: In-year report (December 2014)
Description
Capital Expenditure by
Vote
Vote 7 - Finance
Vote 8 - Hum an
Settlem ents
Vote 9 - Rates & Other
Vote 10 - Safety &
Security
YTD
Variance
R
thousands
(17,768)
(9,128)
–
Variance
%
-42.5%
-2.7%
-
Reasons for material deviations
Remedial or corrective steps/remarks
1. Im m ovable As s et Regis ter Managem ent Project: Awaiting outs tanding
Budget and cas h flows to be am ended in the adjus tm ents budget in
invoices . Project will be com pleted within overall project plan and full
January 2015.
budget allocation com m itted to June 2015 in term s of the project plan.
2. Bas em ent Parking and Acces s : Work com m enced but is two m onths
behind s chedule, however, project s till on track for com pletion as planned.
Im m aterial variance.
-
-
-
(14,395)
-42.3%
1. Integrated Contact Centre: Project delayed during the des ign phas e, due Ongoing m onitoring of project progres s and expenditure.
to a lack of functionality not available in SAP Solution; further inves tigation
to be com pleted.
2. Equipm ent - Com m unication Additional: Project delayed, due to
quotations exceeding budget; quotations were s ubs equently adjus ted and
orders have been placed.
3. Dis as ter Managem ent Centre Additions /Alterations : Project delayed,
due to pos tponem ent of s ite m eetings by vendor. Orders will be placed
when quotations are obtained from the vendor.
Vote 11 - Social and Early
Childhood Developm ent
(3,418)
-52.7%
Vote 12 - Touris m , Events
and Marketing
(10,947)
-67.0%
1. Golden Gate ECD Centre: Delays experienced with the appointm ent of a 1.The contractor for the Golden Gate ECD was appointed; s ite hand-over
contractor.
is s cheduled for 12 January 2015. Project partially re-phas ed to the
2. ICAN Centre, Els ies River: Im plem entation delayed, due to is s ues
2015/16 financial year.
experienced with the relocation of current tenants at this centre.
2. Im plem entation of ICAN project currently underway.
Budget and cas h flows to be am ended in the adjus tm ents budget in
January 2015.
1. Provis ion of lifts for em pty s hafts CTS: Delay experienced, due to legal
1. R3 450 000 to be rephas ed to the 2015/16 financial year.
requirem ent with regard to local content not being com pleted by tenderers 2. Contractor to s ign off contract when building indus try res um es m id
on the tender docum ents . Legal Services advis ed that all tenderers be
January 2015. Savings on project to be re-allocated to various projects .
allowed to com plete the local content on the tender docum ents and re3. Cons truction work will continue when building indus try res um es m id
s ubm it by 27 January 2015. In addition, the awarded tender price is lower January 2015. Savings to be re-allocated to other projects .
than the anticipated, which res ulted in rephas ing of this project.
Budget and cas h flow to be am ended in the adjus tm ents budget in
2. Replacem ent of Servers : Appeal period ended 12 Decem ber 2014;
January 2015.
awaiting contractor to s ign off contract.
3. Various projects : Builders ' holiday im pacted on progres s . Savings to be
realis ed, as the awarded tender price is lower than the es tim ated tender
price, due to the com petitive nature of the tender proces s es .
24,276
4.9%
Vote 13 - Trans port for
Cape Town
Vote 14 - Utility Services
152,324
Table continues on next page.
26
27.6%
Certain projects have fallen behind as a res ult of poor contractor /
cons ultant perform ance as well as protracted procurem ent and due
diligence proces s es . However, other projects , s uch as the IRT bus
acquis ition as well as s om e NMT and road rehabilitation contracts are
progres s ing better than expected, with this expenditure m ore than
balancing out the other delays at this s tage.
Budget and cas h flows to be am ended in the adjus tm ents budget in
January 2015.
Refer below for com m ents per departm ent.
Refer below for com m ents per departm ent.
Annexure A: In-year report (December 2014)
Description
Utility Services Support
YTD
Variance
R
thousands
(20)
Water & Sanitation
52,522
Solid Waste
Management
(7,296)
Cape Town Electricity
27
107,118
Variance
%
Reasons for material deviations
-20.5% Funds were viremented from Furniture Fittings & Equipment to IT
Equipment to cater for docking stations. However, the department is still
engaging with the IT department and Supply Chain Management on
docking stations specifications.
20.3% 1. Meter replacement program is ahead of schedule.
2. Mitchells Plain and Borchards Quarry WWTWs projects are ahead of
schedule, due to the excellent performance of the contractors.
3. Fisantekraal Housing Garden City - Water project currently progressing
faster than anticipated.
4. Replace & Upgrade Sewer Pump station(Citywide): New pumps were
commissioned earlier than planned.
-8.6% 1.Bellville Transfer Station: Variance due to delay caused by a fatal
accident; the largest portion of the site was closed as a result of
investigations into the cause of the accident. The Department of Labour
has allowed access to the larger portion of the site not affected by the
incident and re-opened the main site in November.
2.Upgrading of Drop-off facilities: Delays in the finalisation of
specifications for Beaconvale drop-off site upgrade.
Remedial or corrective steps/remarks
Awaiting confirmation from IT department on type of docking station to be
procured. Cash flow to be amended in the adjustments budget in January
2015.
Project managers to ensure that tracking and monitoring of projects are
within the prescribed timeframes. Cash Flow and budget to be amended
in the adjustments budget in January 2015.
1. It is anticipated that the USDG budget will be spent, but the EFF
component will need to be monitored.
2. Project will be rephased to the 2015/16 financial year; amendments will
be affected in the adjustments budget in January 2015.
51.8% Excellent contractor performance against various projects i.e. System
Cash flow and budget to be amended in the adjustments budget in
Equipment Replacement North & South, Koeberg Road Switching station; January 2015.
System Infrastructure North & East; Facilities alterations & upgrading;
Electrification - Formal and Informal projects and the backyarders.
Annexure A: In-year report (December 2014)
The graphs below illustrate the capital budget versus actual expenditure per vote.
CAPITAL BUDGET 2013/2014 (MAJOR VOTES)
YTD PLANNED VS YTD ACTUALS
YTD Planned Spend
YTD Actual Spend
800
700
Millions
600
500
400
300
200
100
Utility Services
Transport for Cape Town
Human Settlements
CAPITAL BUDGET 2013/2014 (MINOR VOTES)
YTD PLANNED VS YTD ACTUALS
YTD Planned Spend
140,000
YTD Actual Spend
120,000
Thousands
100,000
80,000
60,000
40,000
20,000
City Manager
28
Compliance &
Auxiliary
Services
Community
Services
Finance
Corporate
Services
City Health
Safety &
Security
Economic,
Environment &
Spatial
Planning
Tourism,
Events &
Marketing
Social Dev &
Early Childhood
Development
Annexure A: In-year report (December 2014)
Table C6: Monthly Budget Statement - Financial Position
The table below reflects the performance to date in relation to the financial position of the
City.
2013/14
Budget Year 2014/15
Description
R thousands
Audited
Original
Adjusted
Outcome
Budget
Budget
YearTD actual
Full Year
Forecast
ASSETS
Current assets
Cash
2,266,560
Call inv estment deposits
2,621,907
5,362,934
5,583,295
6,072,274
5,155,458
Consumer debtors
4,309,649
4,499,300
4,503,300
3,246,669
4,506,736
417,305
351,500
351,500
360,799
459,034
19,650
20,495
18,543
19,650
18,543
Other debtors
Current portion of long-term receiv ables
Inv entory
Total current assets
–
–
2,112,721
–
269,283
296,315
282,846
312,339
282,747
9,904,353
10,530,544
10,739,484
12,124,452
10,422,517
91,984
Non current assets
Long-term receiv ables
Inv estments
104,311
91,753
91,753
3,245,041
1,682,069
1,859,632
–
99,097
1,859,632
Inv estment property
–
–
–
–
–
Inv estments in Associate
–
–
–
–
–
Property , plant and equipment
31,468,325
35,865,333
36,515,801
32,309,587
35,468,522
Agricultural
–
–
–
–
–
Biological assets
–
–
–
–
–
Intangible assets
–
–
–
–
–
Other non-current assets
–
–
–
–
–
Total non current assets
34,817,677
37,639,154
38,467,186
32,401,571
37,427,251
TOTAL ASSETS
44,722,030
48,169,698
49,206,670
44,526,024
47,849,768
LIABILITIES
Current liabilities
–
–
–
–
–
Bank ov erdraft
–
–
–
–
–
Borrow ing
Consumer deposits
368,325
378,885
378,885
368,325
378,885
370,217
372,943
372,943
257,759
407,239
Trade and other pay ables
6,338,165
5,125,323
5,658,751
3,817,052
4,904,437
Prov isions
1,078,550
1,444,665
2,080,552
996,437
1,154,048
8,155,257
7,321,815
8,491,131
5,439,573
6,844,609
Borrow ing
6,666,139
7,902,043
7,902,043
6,526,052
7,902,043
Prov isions
5,783,962
5,099,008
5,099,008
6,087,030
5,979,014
Total non current liabilities
12,450,101
13,001,051
13,001,051
12,613,082
13,881,057
TOTAL LIABILITIES
20,605,358
20,322,866
21,492,182
18,052,655
20,725,666
NET ASSETS
24,116,672
27,846,832
27,714,488
26,473,368
27,124,102
21,896,756
25,806,310
26,067,413
24,327,336
25,072,172
2,219,916
2,040,522
1,647,075
2,146,032
2,051,930
24,116,672
27,846,832
27,714,488
26,473,368
27,124,102
Total current liabilities
Non current liabilities
COMMUNITY WEALTH/EQUITY
Accumulated Surplus/(Deficit)
Reserv es
TOTAL COMMUNITY WEALTH/EQUITY
The definitions for the categories in the financial position table are shown below.
29
Annexure A: In-year report (December 2014)
Definitions of financial position categories
Description
Cas h
Call inves tm ent depos its
Definition
Cas h includes cas h on hand, cas h with banks , notice depos its and depos its with a
m aturity of three m onths or les s , readily convertible to cas h without s ignificant change in
value.
Call inves tm ent depos its include s hort-term bank and other depos its with a m aturity of
m ore than three m onths but les s than twelve m onths .
Cons um er debtors
A cus tom er of an entity who has not yet paid for m unicipal goods and s ervices rendered.
Other debtors
A cus tom er or an entity who has not yet paid for s undry s ervices rendered and/or fines
im pos ed.
Current portion of long-term receivables That portion of Long-term receivables that will becom e due in the next operating year.
Inventory
Inventory cons is ts of goods purchas ed and held for res ale and goods produced by the
City. Inventory als o includes raw m aterials and s upplies to be us ed in works and
proces s es .
Long-term receivables
Receivables that becom e due only in the financial years after the next one.
Inves tm ents
Inves tm ents include bank and other depos its with a m aturity of m ore than twelve m onths .
Inves tm ent property
Is land and buildings held to earn rentals or for capital appreciation or both, as oppos ed to
being us ed for production or for the s upply of goods or s ervices or for adm inis trative
purpos es , or intended for s ale in the norm al cours e of operations .
Inves tm ents in As s ociate
It is an inves tm ent in an entity in which the inves tor has s ignificant influence but is neither
a controlled entity nor a joint venture of the City.
Property, plant and equipm ent
Are tangible as s ets that are held for us e in the production or s upply of goods or s ervices ,
for rentals to others or for adm inis trative purpos es , and are expected to have a us eful life of
m ore than one reporting period.
Agricultural
The m anagem ent of an agricultural activity for the biological trans form ation and harves t of
biological as s ets for s ale or convers ion into agricultural produce or into additional
biological as s ets .
Biological as s ets
Cons is ts of as s ets undergoing the biological trans form ation in term s of the proces s es of
growth, degeneration, production and procreation that caus e qualitative or quantitative
changes in a biological as s et.
Intangible as s ets
Identifiable non-m onetary as s et without phys ical s ubs tance or form , held for us e in the
production or s upply of goods or s ervices , for rental to others or for adm inis trative
purpos es .
Bank overdraft
Bank overdraft includes that am ount overdrawn on the bank account and repres ents a
s hort-term debt facility repayable to the Bank. The city has not negotiated any overdraft
facilities .
Borrowing
Borrowing is that portion of loans taken up by the Council which are due and payable
within the next twelve m onths .
Cons um er depos its
Am ounts held by the City as s ecurity over the provis ion of s ervices on credit and repayable
on term ination of accounts .
Trade and other payables
Liabilities owed to s uppliers for purchas es of goods or s ervices already rendered to the
m unicipality.
Provis ions
A pres ent obligation aris ing from pas t events , the s ettlem ent of which is expected to res ult
in an outflow of res ources and will be taking place in the next 12 m onths .
Borrowing
Borrowing is that portion of loans taken up by the Council which are due and payable
longer than the twelve m onths (i.e. exclude that am ount of total loans included under
current liabilities .
A pres ent obligation aris ing from pas t events , the s ettlem ent of which is expected to res ult
in an outflow of res ources and will be taking place not in the next 12 m onths .
Provis ions
Accum ulated Surplus /(Deficit)
Res erves
30
The s urplus of an entity that has accum ulated s ince the beginning of the entity's exis tence.
Funds s et as ide from accum ulated s urplus es for s tatutory as well as s pecific
requirem ents .
Annexure A: In-year report (December 2014)
Table C7: Monthly Budget Statement - Cash Flow
The City’s cash flow position and cash/cash equivalent outcome is shown in the table
below.
2013/14
Description
Budget Year 2014/15
Audited
Original
Adjusted
Outcome
Budget
Budget
YTD actual
YTD budget
YTD variance
R thousands
YTD
Full Year
variance
Forecast
%
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepay ers and other
22,020,442
23,306,935
23,356,401
13,147,027
12,080,681
1,066,346
8.8%
23,265,803
Gov ernment - operating
2,389,432
3,498,169
3,502,470
1,540,085
2,313,582
(773,497)
-33.4%
2,987,675
Gov ernment - capital
2,052,758
2,882,853
3,104,572
1,762,587
1,709,172
53,415
3.1%
3,236,176
729,374
275,762
924,430
269,560
238,747
30,812
12.9%
924,430
Interest
Payments
Suppliers and employ ees
(21,822,483)
(23,514,982)
(24,502,576)
(14,162,674)
(13,549,637)
613,037
-4.5%
(24,529,196)
Finance charges
(791,549)
(829,746)
(829,746)
(359,819)
(358,391)
1,428
-0.4%
(829,746)
Transfers and Grants
(115,021)
NET CASH FROM/(USED) OPERATING ACTIVITIES
–
–
4,462,953
5,618,991
5,555,550
71,458
40,167
120,500
–
2,196,765
–
2,434,154
–
-
237,390
9.8%
–
5,055,142
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE
Decrease (Increase) in non-current debtors
Decrease (increase) other non-current receiv ables
Decrease (increase) in non-current inv estments
–
–
–
–
–
–
–
–
–
–
–
–
120,500
–
(1,751)
(4,829)
(51,092)
(110,970)
(1,689,664)
(379,999)
(1,029,558)
(229,998)
(230,000)
3
0.0%
(1,029,558)
(4,449,672)
(6,133,477)
(6,476,086)
(1,913,958)
(2,545,869)
(631,910)
24.8%
(6,280,466)
(6,069,629)
(6,478,138)
(7,436,235)
(2,143,956)
(2,775,869)
(631,913)
22.8%
(7,300,493)
Payments
Capital assets
NET CASH FROM/(USED) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
–
Borrow ing long term/refinancing
–
Increase (decrease) in consumer deposits
–
–
–
1,500,000
–
1,500,000
–
–
–
–
1,500,000
–
62,000
33,904
64,726
–
–
–
34,296
(345,067)
(309,853)
(309,853)
(153,203)
(154,628)
(1,426)
0.9%
(309,853)
(283,067)
1,224,051
1,254,872
(153,203)
(154,628)
(1,426)
0.9%
1,224,443
Payments
Repay ment of borrow ing
NET CASH FROM/(USED) FINANCING ACTIVITIES
NET INCREASE/ (DECREASE) IN CASH HELD
(1,889,743)
364,904
(625,813)
(100,394)
(496,343)
(1,020,908)
Cash/cash equiv alents at beginning:
8,099,366
6,603,670
6,242,365
6,209,623
6,242,365
6,209,623
Cash/cash equiv alents at month/y ear end:
6,209,623
6,968,574
5,616,552
6,109,229
5,746,022
5,188,715
31
Annexure A: In-year report (December 2014)
The table below reflects the variances for cash flow position and cash/cash equivalent
outcome as well as reasons for material deviations and remedial action.
Description
R thousands
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepayers and other
Government - operating
Government - capital
Interest
Dividends
Payments
Suppliers and employees
Finance charges
Transfers and Grants
NET CASH FROM/(USED) OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE
Decrease (Increase) in non-current debtors
Decrease (increase) other non-current receivables
Decrease (increase) in non-current investments
Payments
Capital assets
YTD
variance
R
Thousands
YTD
variance
%
1,066,346
8.8%
(773,497)
-33.4%
53,415
30,812
3.1%
12.9%
–
Remedial or corrective steps/remarks
Collections for the period year to date was
No corrective action required at this time.
higher than anticipated.
The under recovery is mainly due to a delay in No corrective action required at this time.
spending on items funded by grant allocations.
Immaterial variance.
No corrective action required at this time.
Investment income greater than expected due to No corrective action required at this time.
better returns earned on higher cash balances
by fund managers.
-
613,037
1,428
–
-4.5%
-0.4%
-
237,390
9.8%
Immaterial variance.
Immaterial variance.
No corrective action required at this time.
No corrective action required at this time.
–
–
–
3
0%
(631,910)
24.8%
NET CASH FROM/(USED) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrowing long term/refinancing
Increase (decrease) in consumer deposits
Payments
Repayment of borrowing
(631,913)
22.8%
(1,426)
0.9%
NET CASH FROM/(USED) FINANCING ACTIVITIES
(1,426)
0.9%
32
Reasons for material deviations
–
–
–
Slower cash outflow than originally anticipated. No corrective action required at this time.
Annexure A: In-year report (December 2014)
Table SC9: Monthly Budget Statement - Actual and revised targets for cash receipts and cash flows
2014/15 Medium Term Revenue &
Expenditure Framew ork
Budget Year 2014/15
Description
July
August
Sept
October
Nov
Dec
January
Feb
March
April
May
June
R thousands
Outcome
Outcome
Outcome
Outcome
Outcome
Outcome
Budget
Budget
Budget
Budget
Budget
Budget
Cash Receipts By Source
Property rates
Property rates - penalties & collection charges
Service charges - electricity revenue
Service charges - w ater revenue
Service charges - sanitation revenue
Service charges - refuse
Service charges - other
Rental of facilities and equipment
Interest earned - external investments
Interest earned - outstanding debtors
Dividends received
Fines
Licences and permits
Agency services
Transfer receipts - operating
Other revenue
Cash Receipts by Source
476,044
–
856,628
144,776
89,623
53,800
42,720
38,280
32,452
–
–
17,165
3,658
–
771,030
182,369
2,708,545
409,531
–
952,848
170,176
103,938
62,129
24,683
17,862
52,181
–
–
16,252
23,096
–
70,068
873,224
2,775,990
531,075
–
858,230
138,202
73,800
44,842
20,439
18,093
44,997
–
–
16,664
23,201
–
–
341,265
2,110,809
562,297
–
891,451
157,778
94,863
54,132
25,902
17,704
46,717
–
–
18,877
18,311
–
120,000
209,741
2,217,772
506,325
–
795,009
162,467
83,864
40,124
23,666
17,055
42,661
–
–
19,876
14,405
–
39,468
184,232
1,929,153
541,260
–
829,334
188,296
104,594
50,123
27,268
18,722
50,551
–
–
20,216
26,661
–
691,519
817,860
3,366,403
409,189
–
801,094
228,315
99,173
104,514
32,596
11,179
41,461
–
–
14,712
11,943
–
58,560
32,036
1,844,772
497,805
–
736,070
243,523
108,314
92,936
24,524
15,196
40,423
–
–
14,840
13,777
–
638,323
23,942
2,449,673
578,005
–
806,158
196,308
113,837
59,564
29,192
12,628
40,299
–
–
14,634
14,199
–
419,115
679,886
2,963,827
424,219
–
837,595
187,452
97,374
86,163
18,866
15,130
42,570
–
–
14,829
14,061
–
–
26,084
1,764,343
420,007
–
842,698
183,253
119,180
70,958
33,790
12,075
40,406
–
–
18,934
6,943
–
–
28,740
1,776,983
485,648 5,841,406
–
–
817,625 10,024,738
160,328 2,160,875
96,581 1,185,140
223,100
942,385
11,139
314,784
(25,288)
168,636
449,710
924,430
–
–
–
–
(11,572)
175,428
24,116
194,371
–
–
694,387 3,502,470
(1,050,742) 2,348,637
1,875,031 27,783,300
Other Cash Flow s by Source
Transfer receipts - capital
Contributions & Contributed assets
Proceeds on disposal of PPE
Short term loans
Borrow ing long term/refinancing
Increase in consumer deposits
Receipt of non-current debtors
Receipt of non-current receivables
Change in non-current investments
Total Cash Receipts by Source
800,762
–
–
–
–
–
–
–
–
3,509,306
3,671
–
–
–
–
–
–
–
–
2,779,661
120,294
–
–
–
–
–
–
–
–
2,231,103
22,971
–
–
–
–
–
–
–
(49,998)
2,190,745
225,556
–
–
–
–
–
–
–
–
2,154,709
437,332
–
–
–
–
–
–
–
(180,000)
3,623,735
349,558
–
–
–
–
–
–
–
–
2,194,330
207,814
–
–
–
–
–
–
–
(50,000)
2,607,486
472,066
–
–
–
–
–
–
–
(50,000)
3,385,893
357,947
–
–
–
–
–
–
–
(50,000)
2,072,291
427,473
–
–
–
–
–
–
–
–
2,204,456
(320,873) 3,104,572 2,456,222 2,456,911
–
–
–
–
120,500
120,500
74,448
78,468
–
–
–
–
1,500,000 1,500,000 1,500,000 1,000,000
64,726
64,726
37,294
41,024
–
–
–
–
(51,092)
(51,092)
(30,562)
(34,307)
(649,560) (1,029,558)
(206,352)
(89,310)
2,538,732 31,492,449 33,457,087 35,509,058
Table continues on next page.
33
Budget
Year
2014/15
Budget
Year +1
2015/16
Budget
Year +2
2016/17
6,188,871
–
10,774,483
2,452,410
1,329,592
1,014,216
353,181
164,081
501,633
–
–
185,484
219,933
–
4,005,459
2,436,694
29,626,038
6,623,437
–
11,603,398
2,752,640
1,492,294
1,088,970
414,253
168,517
440,593
–
–
195,500
257,395
–
4,446,242
2,573,032
32,056,271
Annexure A: In-year report (December 2014)
R thousands
2014/15 Medium Term Revenue &
Expenditure Framew ork
Budget Year 2014/15
Description
July
August
Sept
October
Nov
Dec
January
Feb
March
April
May
June
Outcome
Outcome
Outcome
Outcome
Outcome
Outcome
Budget
Budget
Budget
Budget
Budget
Budget
664,705
662,689
668,427
665,554
1,024,213
666,865
707,495
706,933
9,426
9,465
9,456
9,391
9,533
9,577
11,278
11,278
Budget
Year
2014/15
Budget
Year +1
2015/16
831,662
8,717,066
9,423,461
Budget
Year +2
2016/17
Cash Payments by Type
Employee related costs
Remuneration of councillors
Interest paid
Bulk purchases - Electricity
Bulk purchases - Water & Sew er
–
–
188,050
–
–
171,769
–
–
706,380
706,481
705,661
11,559
11,491
11,077
183,299
–
–
10,181,605
20,089
133,619
142,438
151,554
286,628
829,746
1,062,289
1,301,246
791,798
876,854
826,715
484,899
493,242
469,022
418,013
447,106
479,122
497,722
463,038
430,770
6,678,300
7,205,955
7,781,805
26,750
28,289
17,233
38,608
26,647
25,175
24,520
29,017
39,420
28,350
23,844
60,910
368,761
404,273
444,073
Other materials
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Contracted services
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Grants and subsidies paid - other municipalities
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Grants and subsidies paid - other
–
–
–
–
–
–
–
–
–
–
–
–
–
–
General expenses
Cash Payments by Type
–
1,614,923
796,348
849,212
817,803
857,059
712,799
637,837
632,069
641,924
690,683
628,624
(274,450)
8,604,830
9,147,975
9,938,169
3,107,602
2,373,646
2,559,092
2,016,255
2,410,693
2,055,205
1,799,143
1,826,403
2,061,703
1,934,727
1,832,244
1,355,609
25,332,322
27,386,391
29,798,452
462,057
202,822
119,203
310,054
429,821
390,003
210,332
466,810
604,612
759,127
908,190
1,613,057
6,476,086
5,601,948
5,413,057
67,169
309,853
285,598
407,882
Other Cash Flow s/Payments by Type
Capital assets
Repayment of borrow ing
Other Cash Flow s/Payments
–
–
–
–
88,055
–
–
–
–
–
65,148
–
–
–
–
–
89,481
–
–
–
–
–
–
–
–
–
Total Cash Payments by Type
3,569,659
2,576,467
2,766,350
2,326,308
2,840,514
2,510,356
2,009,475
2,293,212
2,755,796
2,693,854
2,740,434
3,035,836
32,118,261
33,273,936
35,619,391
NET INCREASE/(DECREASE) IN CASH HELD
(60,352)
6,209,623
203,194
6,149,271
(535,247)
6,352,465
(135,563)
5,817,218
(685,805)
5,681,655
1,113,379
4,995,850
184,855
6,109,229
314,274
6,294,084
630,097
6,608,357
(621,563)
7,238,454
(535,978)
6,616,891
(497,103)
6,080,913
(625,813)
6,242,365
183,151
5,616,552
(110,333)
5,799,703
6,149,271
6,352,465
5,817,218
5,681,655
4,995,850
6,109,229
6,294,084
6,608,357
7,238,454
6,616,891
6,080,913
5,583,810
5,616,552
5,799,703
5,689,370
Cash/cash equivalents at the month/year
beginning:
Cash/cash equivalents at the month/year end:
34
Annexure A: In-year report (December 2014)
PART 2 - SUPPORTING DOCUMENTATION: PARENT MUNICIPALITY
Debtors analysis
The debtor analysis provides an age analysis by revenue source and customer category.
Table SC3 Monthly budget statement Aged Debtors
Description
Budget Year 2014/15
Over 1
Year
Total
295,874
1,421,246
2,280,549
1,867,590
–
–
8,913
40,591
89,038
821,333
164,607
–
–
35,356
26,124
147,719
596,732
1,378,596
876,094
–
–
27,077
25,844
20,397
139,632
633,976
1,062,759
846,926
–
–
12,178
11,542
11,474
9,121
52,367
215,793
396,338
300,297
–
–
10,565
10,226
(716)
10,200
489,390
572,479
498,874
–
–
17,570
–
18,911
–
17,200
–
16,758
–
19,115
–
735,720
–
658,949
–
–
–
–
–
31-60
Days
61-90
Days
291,577
68,737
52,646
51,395
54,131
44,945
583,356
45,323
28,047
11,942
14,123
438,608
36,430
27,464
70,163
154,793
35,975
25,064
68,245
15,618
52,814
40,290
–
0-30 Days
Actual Bad
Impairment Debts
Bad Debts
Written Off
i.t.o Council
against
Policy
Debtors
Total
over 90
days
91-120
Days
121-150
Days
151-180 181 DaysDays
1 Year
R thousands
Debtors Age Analysis By Income Source
Trade and Other Receivables from Exchange
Transactions - Water
Trade and Other Receivables from Exchange
Transactions - Electricity
Receivables from Non-exchange
Transactions - Property Rates
Receivables from Exchange Transactions Waste Water Management
Receivables from Exchange Transactions Waste Management
Receivables from Exchange Transactions Property Rental Debtors
Interest on Arrear Debtor Accounts
Recoverable unauthorised, irregular, fruitless
and w asteful expenditure
Other
Total By Income Source
–
91,035
–
–
514,841
–
(97,319)
(59,005)
(93,018)
(24,219)
(14,711)
(8,546)
(40,204)
(165,229)
(502,251)
(252,908)
–
–
1,532,364
171,213
81,518
164,384
153,175
609,459
727,014
3,306,397
6,745,525
4,960,429
–
–
2013/14 - totals only
Debtors Age Analysis By Customer Group
44,083
(78,772)
(77,039)
(1,540)
8,404
8,617
31,101
42,506
(22,640)
89,089
–
–
Commercial
839,866
87,512
38,896
59,765
26,275
19,041
89,532
344,953
1,505,840
539,566
–
–
Households
787,726
183,886
140,662
124,878
130,741
588,452
629,826
2,959,721
5,545,891
4,433,616
–
–
Other
(139,312)
(21,413)
(21,001)
(18,718)
(12,245)
(6,651)
(23,445)
(40,783)
(283,567)
(101,841)
–
–
1,532,364
171,213
81,518
164,384
153,175
609,459
727,014
3,306,397
6,745,525
4,960,429
–
–
Organs of State
Total By Customer Group
Additional debtors information
Monthly collection rate
Period
12 Month
6 month
3 month
Monthly
Current year
96.91%
96.80%
96.17%
95.48%
Previous year
YTD collection
rate
96.62%
97.42%
100.76%
87.75%
97.16%
97.82%
97.97%
96.91%
12 month collection ratio per source
Source
Electricity
Water
Sewerage
Refuse
Rates
Other
35
Current year
99.69%
89.15%
92.39%
95.17%
98.57%
99.85%
Previous year
99.25%
87.13%
87.38%
91.55%
100.35%
99.38%
YTD collection
rate
99.80%
89.95%
92.60%
94.46%
98.91%
99.93%
2014/15 Billing vs Receipts
Month
July
August
September
October
November
December
Billing
R
1,957,772,594.77
2,253,395,142.71
2,171,870,466.03
2,099,995,541.53
2,171,329,415.03
2,190,493,155.94
Receipts
R
1,930,402,632.45
2,064,186,076.16
2,224,853,509.17
2,216,521,082.71
1,906,365,369.49
2,091,456,281.56
Annexure A: In-year report (December 2014)
Creditors analysis
The creditors’ analysis below contains an aged analysis by customer type.
Table SC4 Monthly budget Statement Aged Creditors
Budget Year 2014/15
Description
R thousands
Prior year
0-
31 -
61 -
91 -
121 -
151 -
181 Days -
Over 1
30 Days
60 Days
90 Days
120 Days
150 Days
180 Days
1 Year
Year
totals (same
Total
period)
Creditors Age Analysis By Customer Type
Bulk Electricity
–
–
–
–
–
–
–
–
–
–
Bulk Water
–
–
–
–
–
–
–
–
–
–
PAYE deductions
–
–
–
–
–
–
–
–
–
–
VAT (output less input)
–
–
–
–
–
–
–
–
–
–
Pensions / Retirement deductions
–
–
–
–
–
–
–
–
–
–
Loan repay ments
–
–
–
–
–
–
–
–
–
–
(75)
17
(5)
170
673
–
–
–
–
–
–
–
–
(75)
17
(5)
Trade Creditors
175,150
Auditor General
–
Other
Total By Customer Type
–
175,150
1,076
–
–
1,076
(2,668)
–
–
(2,668)
Outstanding commitments against Cash and Cash Equivalents
Item
Previous Month
Current Month
R'000
R'000
Closing Cash Balance
4,995,850
6,109,229
Unspent Conditional Grants
1,903,569
2,096,820
341,002
338,150
23,788
22,388
1,436
1,255
463,003
283,003
Housing Development
MTAB
Trust Funds
Financial commitments
Sinking Funds
Insurance reserves
-
-
501,007
541,786
CRR
1,136,728
1,123,301
TOTAL
4,370,533
4,406,703
625,317
1,702,526
TOTAL cash resources not committed
36
–
–
170
673
174,337
–
–
174,337
176,538
–
–
176,538
Annexure A: In-year report (December 2014)
Investment portfolio analysis
The investment portfolio analysis includes information on the institution where funds are
invested, period of investment, type of investment and accrued interest for the month.
Table SC5 Monthly Budget Statement investment portfolio
Investments by maturity
Period of
Name of institution & investment ID
Investment
R thousands
Type of
Expiry date of
Investment
investment
Accrued
Yield for the Market value at
interest for
month
beginning of
the month
(%)
the month
Change in
market value
Market value at
end of the
month
Yrs/Months
ABSA
25
Fix ed
2015/01/05
747
5.90%
220,000
747
220,747
Firstrand
25
Fix ed
2015/01/05
328
5.70%
100,000
328
100,328
Firstrand
31
Fix ed
2015/01/15
96
5.88%
35,000
96
35,096
Firstrand
31
Fix ed
2015/01/15
55
5.88%
20,000
55
20,055
Firstrand
31
Fix ed
2015/01/15
41
5.88%
15,000
41
15,041
Firstrand
29
Fix ed
2015/01/15
85
5.88%
35,000
85
35,085
Firstrand
28
Fix ed
2015/01/15
68
5.88%
30,000
68
30,068
Firstrand
182
Fix ed
2015/03/31
60
7.08%
10,000
60
10,060
Firstrand
182
Fix ed
2015/03/31
72
7.08%
12,000
72
12,072
Firstrand
182
Fix ed
2015/03/31
54
7.08%
9,000
54
9,054
Firstrand
182
Fix ed
2015/03/31
72
7.08%
12,000
72
12,072
Inv estec Bank
25
Fix ed
2015/01/05
345
6.00%
100,000
345
100,345
Inv estec Bank
16
Fix ed
2015/01/15
5
5.95%
15,000
5
15,005
Nedbank
25
Fix ed
2015/01/05
417
5.80%
125,000
417
125,417
Nedbank
31
Fix ed
2015/01/15
98
6.00%
35,000
98
35,098
Nedbank
29
Fix ed
2015/01/15
86
6.00%
35,000
86
35,086
Nedbank
28
Fix ed
2015/01/15
81
6.00%
35,000
81
35,081
Standard Bank
25
Fix ed
2015/01/05
421
5.85%
125,000
421
125,421
Standard Bank
31
Fix ed
2015/01/15
180
5.95%
65,000
180
65,180
Standard Bank
27
Fix ed
2015/01/15
188
5.85%
90,000
188
90,188
Standard Bank
29
Fix ed
2015/01/15
72
5.83%
30,000
72
30,072
Standard Bank
28
Fix ed
2015/01/15
79
5.88%
35,000
79
35,079
Standard Bank
16
Fix ed
2015/01/15
5
5.78%
15,000
5
15,005
2,239
450,452
2,239
452,691
578
35,684
578
36,263
12,253
58,388
12,253
70,641
4,320,048
22,934
4,342,981
6,067,572
41,657
6,109,229
ABSA Bank call
ABSA current account
Liberty , RMB and Nedbank sinking fund
Fund Managers
TOTAL INVESTMENTS AND INTEREST
37
18,723
Annexure A: In-year report (December 2014)
Allocation and grant receipts and expenditure
Table SC7 Monthly Budget Statement transfers and grants expenditure
2013/14
Description
Budget Year 2014/15
Audited
Outcom e
Original
Budget
Adjusted
Budget
YearTD
actual
YearTD
budget
YTD
variance
R thousands
Operating expenditure of Transfers and Grants
National Governm ent:
YTD
variance
Full Year
Forecast
%
417,462
1,919,255
1,957,266
136,055
157,563
–
1,191
1,191
–
–
–
Finance Management grant
219
1,250
1,250
96
192
(96)
-49.8%
990
Equitable share
376
1,503,173
1,503,173
1,274
3,173
(1,899)
-59.9%
1,505,392
Restructuring
Urban Settlements Development Grant
(21,508)
-13.7%
2,297,618
1,191
57,826
114,142
150,556
41,684
27,367
14,317
52.3%
152,469
217,101
217,498
217,498
73,360
105,186
(31,826)
-30.3%
442,968
Energy Efficiency and Demand Side Management Grant
1,728
900
900
–
434
(434)
-100.0%
599
Dept of Environ Affairs and Tourism
2,698
200
565
243
61
182
297.3%
329
57
200
200
14
70
(56)
-80.1%
200
38,192
20,804
20,804
8,936
7,652
1,284
16.8%
23,610
–
–
Public Transport Netw ork Operations Grant
Housing Accreditation
Expanded Public Works Programme
Integrated City Development Grant
2014 African Nations Championship Host City Operating Grant
LGSETA
864
–
–
45,060
–
–
–
–
536
–
–
–
536
(112)
–
–
(112)
9,500
0.0%
87
53,341
7,726
7,726
–
–
–
119,742
Infrastructure Skills Development Grant
–
2,300
2,300
–
–
–
3,201
Municipal Disaster Grant
–
–
–
–
–
–
Municipal Human Settlements Capacity Grant
–
49,871
49,871
10,282
12,768
Public Transport Infrastructure & Systems Grant
Department: Water and Sanitation
Provincial Governm ent:
Cultural Affairs and Sport - Provincial library Services
Human Settlements - Human Settlement Development Grant
707
(2,487)
-19.5%
35,401
–
–
697
277
660
(383)
-58.0%
697
545,969
1,542,400
1,540,538
315,894
360,660
(44,766)
-12.4%
1,113,129
22,008
30,735
30,735
15,700
15,273
427
300,663
1,097,130
1,095,268
174,520
233,153
(58,632)
2.8%
33,580
-25.1%
648,161
3,690
–
–
–
–
–
–
1,000
1,000
–
–
–
Health - TB
11,807
17,206
17,206
8,502
7,990
512
Health - Global Fund
91,676
37,555
37,555
19,341
19,517
(175)
-0.9%
38,994
Health - ARV
32,233
109,589
109,589
53,213
45,511
7,702
16.9%
109,589
Human Settlements - Municipal Accreditation Assistance
Human Settlement - Settlement Assistance
8,000
1,000
6.4%
17,206
Health - Nutrition
4,385
4,636
4,636
2,613
1,932
681
35.2%
4,636
Health - Vaccines
66,724
70,956
70,956
35,315
35,478
(163)
-0.5%
70,956
–
1,895
155,960
10,000
155,960
10,000
–
6,054
–
–
–
6,054
0.0%
155,960
10,075
Comprehensive Health
Transport and Public Works - Provision for persons w ith special
needs
Municipal Land Transport Fund
10,888
–
–
–
–
–
Transport Safety and Compliance - Rail Safety
–
500
500
498
–
498
0.0%
2,200
Community Development Workers
–
732
732
138
333
(195)
-58.5%
1,390
City of Cape Tow n - Public access centres
–
500
500
–
–
–
–
5,900
5,900
–
-100.0%
5,700
35,826
41,089
2,190
2,190
–
1,583
3,057
3,057
CMTF
27,228
9,777
11,979
Other
686
Planning, Maintenance and Rehabilitation of Transport Systems
and Infrastructure
Other grant providers:
Tourism
Carnegie
CID
Century City Property Ow ners Association
36,828
–
–
–
5,181
500
1,475
(1,475)
18,045
(8,131)
-45.1%
46,354
1,690
(1,690)
-100.0%
4,190
866
958
(92)
-
3,057
5,469
5,564
(95)
-
14,220
9,914
–
–
–
0
–
2,764
2,969
2,969
1,613
1,613
438
468
468
87
105
(17)
-16.7%
0.0%
2,840
468
1,135
654
859
(206)
-23.9%
1,135
1,417
–
Finland Government
112
–
–
–
–
–
–
Cities for Climate Protection
144
–
–
–
–
–
–
ICLEI Carbon Taxes
111
–
–
–
–
–
–
46
–
17
–
–
–
17
5
–
–
–
–
–
787
226
Traffic Free Flow (Pty) Ltd
Mamre Fencing
ATKV
South African Biodiversity Institute (SANBI)
2,244
482
2,391
Sustainable Energy Africa
–
424
424
University Stellenbosch
51
1,781
1,781
DBSA - Green Fund
–
10,000
10,000
4,679
3,497,481
4,679
3,538,892
Agency Francaise de Development (AFD)
Total operating expenditure of Transfers and Grants
Table continues on next page.
38
–
1,000,259
1,013
–
28.8%
3,544
–
–
–
95
742
(647)
-87.1%
1,781
4,500
(4,500)
-100.0%
10,000
1,227
536,268
(1,111)
(74,405)
-90.5%
-13.9%
4,679
3,457,100
–
116
461,863
424
Annexure A: In-year report (December 2014)
Budget Year 2014/15
2013/14
Description
Audited
Outcom e
Original
Budget
Adjusted
Budget
YearTD
actual
YearTD
budget
YTD
variance
R thousands
YTD
variance
Full Year
Forecast
%
Capital expenditure of Transfers and Grants
National Governm ent:
1,764,988
2,515,669
2,768,260
848,486
778,853
69,633
8.9%
2,863,620
Mineral Energy: Energy Efficiency and Demand Side
Management Grant
7,683
9,100
9,100
954
702
252
35.9%
5,990
Minerals and Energy: Integrated National Electrification
Programme (Municipal) Grant
7,276
5,000
5,000
1,137
1,639
(502)
-30.7%
22,224
–
412
200
400
200
400
7
196
50
50
(43)
146
-86.0%
292.2%
200
400
16,087
11,226
43.3%
57,171
National Government - Other: Previous years' Dora allocations
National Treasury: Expanded Public Works Programme
National Treasury: Intergrated City Development Grant
–
57,171
54,482
National Treasury: Municipal Human Settlements Capacity Grant
14
500
500
24,551
35,470
40,030
National Treasury: Neighbourhood Development Partnership
Grant
National Treasury: Other
National Treasury: Urban Settlements Development Grant
–
2,127
(200)
-100.0%
500
15,429
(13,302)
-86.2%
30,785
13.1%
1,493,157
(86)
-34.3%
250
15,373
1,902
2,239
182
1,489
915,400
1,244,737
1,494,870
465,683
411,600
250
164
250
–
–
4,860
200
(1,307)
54,083
2,089
Sport & Recreation SA: 2010 Fifa Word Cup Stadiums
Development Grant
Transport: Public Transport Infrastructure & Systems Grant
131,296
2,000
2,000
1,496
1,000
496
49.6%
2,000
Transport: Public Transport Infrastructure Grant
654,511
1,159,140
1,159,140
360,454
335,218
25,236
7.5%
1,248,854
1
50
50
–
–
–
–
3,589
–
–
–
–
–
–
99
–
–
–
–
–
–
Sport & Recreation SA: 2014 African Nations Championship
Host City Operating Grant
3,942
–
–
–
–
–
–
National Treasury: Local Government Financial Management
Grant
Provincial Governm ent:
841
–
–
–
–
–
–
Transport: Public Transport Netw ork Operations Grant
National Treasury: Municipal Disaster Grant
National Treasury: Infrastructure Skills Development Grant
Cultural Affairs and Sport: Development of Sport and Recreation
Facilities
Cultural Affairs and Sport: Library Services (Conditional Grant)
Economic Development and Tourism: False Bay Ecology
Economic Development and Tourism: Public Access Centres
Housing: Integrated Housing and Human Settlement Development
Grant
Provincial Government: Community Development Workers (CDW)
Operational Grant Support
Provincial Government: Fibre Optic Broadband Roll Out
Transport and Public Works: Other
Transport and Public Works: Planning, Maintenance and
Rehabilitation of Transport System and Infratructure
Provincial Government: Western Cape Education Department
District Municipality:
262,722
292,065
324,831
874
250
250
2,263
10,200
10,808
3,093
1,439
850
838
850
(12)
-1.4%
850
2,350
2,350
253
2,350
(2,097)
-89.2%
2,350
263,029
294,335
162,925
145,431
17,494
12.0%
281,224
300
300
4,860
10,702
10,702
1,457
234
235
–
5,000
5,000
1,815
243
–
252,825
–
–
169,156
–
–
154,505
–
14,651
9.5%
–
1,654
310,805
250
114.9%
9,365
300
(300)
-100.0%
300
0
2,900
(2,900)
-100.0%
10,923
232
235
(3)
-1.3%
343
1,000
815
81.5%
5,200
200
–
–
–
–
–
100.0%
–
–
–
–
–
–
–
-
–
Other grant providers:
76,408
75,119
75,643
23,847
22,077
1,770
8.0%
Other grant providers:
76,408
75,119
75,643
23,847
22,077
1,770
8.0%
52,996
Total capital expenditure of Transfers and Grants
2,104,118
2,882,853
3,168,734
1,041,489
955,436
86,054
9.0%
3,227,421
TOTAL EXPENDITURE OF TRANSFERS AND GRANTS
3,104,377
6,380,334
6,707,626
1,503,353
1,491,704
11,649
0.8%
6,684,521
39
52,996
Annexure A: In-year report (December 2014)
Expenditure on councillor and board members allowances and employee benefits
Table SC8 Monthly Budget Statement - councillor and staff benefits
Summary of Employee and Councillor
remuneration
Budget Year 2014/15
2013/14
Audited
Original
Adjusted
YearTD
YearTD
YTD
YTD
Full Year
Outcome
Budget
Budget
actual
budget
variance
variance
Forecast
R thousands
%
Councillors (Political Office Bearers plus Other)
Basic Salaries and Wages
Pension and UIF Contributions
Other benefits and allow ances
Sub Total - Councillors
104,001
115,624
4,583
–
115,624
51,587
51,000
587
1.2%
5,360
2,303
2,680
(377)
-14.1%
115,624
5,360
11,125
17,994
12,634
6,928
6,317
611
9.7%
12,634
119,709
133,618
133,618
60,818
59,997
821
1.4%
133,618
11.6%
% increase
11.6%
11.6%
Senior Managers of the Municipality
Basic Salaries and Wages
17,631
21,182
21,182
10,665
10,591
74
0.7%
21,182
1,273
1,392
1,392
695
696
(1)
-0.1%
1,392
Medical Aid Contributions
237
234
234
108
117
(9)
-7.7%
234
Motor Vehicle Allow ance
431
567
567
284
284
–
Cellphone Allow ance
137
179
179
62
89
(27)
-30.3%
179
Other benefits and allow ances
287
88
88
39
44
(5)
-11.4%
88
–
–
–
149
–
Pension and UIF Contributions
Pay ments in lieu of leav e
Sub Total - Senior Managers of Municipality
20,141
23,642
23,642
12,002
11,821
567
149
181
–
1.5%
23,642
17.4%
17.4%
4,634,751
6,181,730
6,181,730
3,199,487
3,253,602
(54,115)
-1.7%
6,043,999
Pension and UIF Contributions
753,113
1,089,465
1,089,465
525,958
542,160
(16,202)
-3.0%
1,017,875
Medical Aid Contributions
439,337
562,394
562,394
260,815
281,395
(20,580)
-7.3%
556,282
Ov ertime
328,082
329,014
329,014
145,821
146,165
(344)
-0.2%
392,037
Motor Vehicle Allow ance
180,012
180,604
180,604
94,715
93,492
1,223
1.3%
196,292
Cellphone Allow ance
13,230
13,746
13,746
6,760
6,867
(107)
-1.6%
13,786
Housing Allow ances
29,266
26,534
26,534
14,037
15,412
(1,375)
-8.9%
30,836
172,265
194,824
194,824
93,496
87,034
6,462
7.4%
203,999
76,816
100,550
100,550
36,173
51,723
(15,550)
-30.1%
103,629
% increase
17.4%
Other Municipal Staff
Basic Salaries and Wages
Other benefits and allow ances
Pay ments in lieu of leav e
Long serv ice aw ards
73,013
66,265
66,265
269
33,091
(32,822)
-99.2%
64,353
Post-retirement benefit obligations
495,852
171,715
171,715
81,879
85,857
(3,978)
-4.6%
171,738
Sub Total - Other Municipal Staff
7,195,737
8,916,841
8,916,841
4,459,410
4,596,798
(137,388)
-3.0%
8,794,826
23.9%
23.9%
9,074,101
9,074,101
% increase
Total Parent Municipality
40
7,335,587
22.2%
4,532,230
4,668,616
(136,386)
-2.9%
8,952,086
Annexure A: In-year report (December 2014)
The table below reflects the percentage variance for councilor and staff benefits, reasons
for material deviations and the remedial action thereof.
Description
YTD Variance
R Thousands
Variance
%
Reasons for material deviations
Remedial or corrective steps/remarks
Councillors (Political Office
Bearers plus Other)
Basic Salaries and Wages
Pension and UIF Contributions
587
(377)
1.2% Immaterial variance.
-14.1% Immaterial variance.
-
Other benefits and allowances
611
9.7% Immaterial variance.
-
74
(9)
0.7% Immaterial variance.
-7.7% Immaterial variance.
-
Cellphone Allowance
Other benefits and allowances
(27)
(5)
-30.3% Immaterial variance.
-11.4% Immaterial variance.
-
Payments in lieu of leave
149
0.0% Immaterial variance.
-
-1.7% The variance is mainly due to (1) the turnaround time of filling
vacancies as well as the impact of the internal filling of vacant
posts, the appointment of seasonal workers and temporary
staff, which is dependent on peak seasons.
-3.0% The variance is mainly due to the turnaround time in filling
vacancies and the internal filling of vacant posts.
The filling of vacancies is on-going and seasonal staff are
appointed as and when required. Savings realised to date
have been set aside and ring-fenced within investment
accounts to cover unfunded corporate initiatives.
The filling of vacancies is on-going. Savings realised to date
have been set aside and ring-fenced within investment
accounts to cover unfunded corporate initiatives.
Medical aid schemes annual rates increment will be
implemented in January 2015.
Senior Managers of the
Municipality
Basic Salaries and Wages
Medical Aid Contributions
Other Municipal Staff
Basic Salaries and Wages
(54,115)
Pension and UIF Contributions
(16,202)
Medical Aid Contributions
(20,580)
Overtime
(344)
Motor Vehicle Allowance
Cellphone Allowance
1,223
(107)
Housing Allowances
Other benefits and allowances
(1,375)
6,462
Payments in lieu of leave
(15,550)
Long service awards
(32,822)
Post-retirement benefit obligations
41
(3,978)
-7.3% The variance is mainly due to the turnaround time in filling
vacancies, the internal filling of vacant posts and the annual
provision made for the medical aid increases.
-0.2% The variance is mainly on (1) Safety and Security (R2.6
million under), mainly due to the non-alignment of the period
budget with the actual expenditure within the Fire Services
department. Expenditure is linked to the fire season, which is
unpredictable and difficult to plan per monthly cycles, (2)
Water & Sanitation (R12 million over), mainly on nonstructured overtime, due to unforeseen work that had to be
done, along with burst mains/sewer pipes, meter leaks and
blocked sewers, (3) Solid Waste Management (R6.6 million
under), mainly due to less overtime required as a result of
minimal vehicle breakdowns as old vehicles were replaced
and (4) Community Services (R2 million under), mainly due
to the non-alignment of the period budget with the actual
expenditure relating to overtime requirements for seasonal
programmes and activities.
1.3% Immaterial variance.
-1.6% Immaterial variance.
-8.9% Immaterial variance.
7.4% The variance due to the non-alignment of the period budget
with actual expenditure on Allowance: Other and Standby
Allowance.
-30.1% Payments are dependent on employees' service termination
and encashment of leave days, which is difficult to plan
accurately per month.
-99.2% Payments are dependent on whether qualifying employees
exercise their option to convert leave days to cash, which is
difficult to plan accurate per monthly cycles.
-4.6% The variance is largely due to lower than anticipated year-todate expenditure and the non-implementation of annual
increases.
Shift system within Water & Sanitation and Safety & Security is
underway to kerb over-expenditure on overtime. The situation
is monitored by the respective finance manager and a review
of the period budget will be undertaken to align with
anticipated spend on programmes and projects. Further
adjustments will be included in the January 2015
adjustments budget.
A review of the period budgets is ongoing and further
adjustments will be included in the January 2015
adjustments budget.
The balance of the budgetary provisions will be transferred to
the leave pay provision at financial year, in accordance with
GRAP 19.
The balance of the budgetary provisions will be transferred to
the long service provision at financial year, in accordance with
GRAP 19.
Medical aid schemes annual rates increment to be
implemented in January 2015.
Annexure A: In-year report (December 2014)
Material variance explanations for corporate performance for Quarter 2 2015
No material variance to be reported for the 2nd Quarter Corporate Performance 2014/15 (1 July
2014 - 31 December 2014).
Capital programme performance
The capital programme performance tables provide details of capital expenditure by month;
and summaries of capital expenditure by asset class and sub-class.
Table SC12 Monthly Budget Statement - capital expenditure trend
Budget Year 2014/15
2013/14
Month
R thousands
Audited
Original
Adjusted
YearTD
YearTD
YTD
Outcome
Budget
Budget
actual
budget
variance
YTD
% spend of
variance
Original
%
Budget
Monthly expenditure performance trend
July
52,401
135,515
62,421
38,964
62,421
23,457
37.6%
0.6%
August
198,025
279,404
201,488
241,786
263,909
22,123
8.4%
3.9%
September
255,735
461,448
321,047
568,959
584,956
15,997
2.7%
9.2%
October
284,835
402,354
411,336
965,432
996,293
30,861
3.1%
15.5%
Nov ember
341,978
465,382
416,105
1,396,877
1,412,397
15,520
1.1%
22.5%
December
490,309
390,410
330,014
1,787,557
1,742,411
(45,146)
-2.6%
28.8%
January
63,338
256,268
221,814
1,964,225
–
February
282,952
505,716
472,809
2,437,034
–
March
380,479
558,353
582,511
3,019,545
–
April
378,773
631,070
747,242
3,766,787
–
May
456,073
696,878
929,204
4,695,990
–
June
1,317,394
1,428,519
1,917,115
6,613,106
–
4,502,293
6,211,315
6,613,106
Total Capital expenditure
The monthly expenditure-to-date measured against the 2014/15 current budget is
graphically illustrated below.
2,500
Plan
Actuals
2,000
Millions
1,500
Actual YTD spend for
December: 27.03%
1,000
500
0
Jul
42
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Annexure A: In-year report (December 2014)
The capital expenditure trend for the City for the 2012/13, 2013/14 and 2014/15 financial
years is graphically illustrated below.
7,000
2012/2013
2013/2014
6,000
2014/2015
Millions
5,000
4,000
3,000
2,000
1,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
The table below reflects the City’s 2014/15 capital commitments as at 31 December 2014.
Directorate
City Manager
Compliance & Auxiliary Services
Utility Services
Utility Services Support
Cape Town Electricity
Solid Waste Management
Water & Sanitation
Community Services
Transport for Cape Town
Finance
Corporate Services
City Health
Safety & Security
Human Settlements
Economic, Environment & Spatial Planning
* Commitments for
2014/15
R
978,801
1,139,040
525,984,324
0
105,837,676
84,131,551
336,015,097
56,704,348
420,231,784
81,441,519
151,215,274
9,092,877
17,040,084
163,461,211
12,969,069
Tourism, Events & Marketing
6,885,897
Social Dev & Early Childhood Development
4,337,364
TOTAL
1,451,481,591
* Commitments currently reflected on SAP as at financial year-end - may not necessarily result in
actual expenditure.
43
Annexure A: In-year report (December 2014)
Table SC13a Monthly Budget Statement - capital expenditure on new assets by asset
class
2013/14
Description
Budget Year 2014/15
Audited
Original
Adjusted
YearTD
YearTD
YTD
YTD
Full Year
Outcom e
Budget
Budget
actual
budget
variance
variance
Forecast
R thousands
%
Capital expenditure on new assets by Asset Class/Sub-class
Infrastructure
Infrastructure - Road transport
Roads, Pav ements & Bridges
Storm w ater
Infrastructure - Electricity
Generation
Transmission & Reticulation
Street Lighting
1,656,571
2,364,215
2,571,301
712,109
647,915
(64,195)
-9.9%
2,144,341
666,729
1,002,469
1,064,961
360,798
323,709
(37,089)
-11.5%
1,025,337
615,030
876,646
936,809
327,699
294,825
(32,873)
-11.2%
927,362
51,699
125,822
128,151
33,099
28,884
(4,215)
-14.6%
97,975
607,595
609,204
686,111
170,129
96,219
(73,910)
-76.8%
536,976
-94.7%
488,585
–
565,731
–
559,768
–
–
–
–
628,937
149,512
76,800
(72,712)
–
41,864
49,436
57,173
20,617
19,419
(1,198)
-6.2%
48,391
Infrastructure - Water
156,526
244,904
244,905
56,584
55,787
(797)
-1.4%
214,070
Dams & Reserv oirs
26,797
77,411
72,344
3,340
11,327
7,987
70.5%
56,164
6,000
6,000
700
700
129,729
161,493
166,561
53,244
43,759
(9,484)
-21.7%
157,905
162,452
278,173
338,543
54,571
80,705
26,134
32.4%
193,219
162,452
276,873
320,243
54,571
79,705
25,134
31.5%
192,919
1,300
18,300
1,000
1,000
100.0%
21,468
23.5%
174,739
Water purification
Reticulation
Infrastructure - Sanitation
Reticulation
Sew erage purification
–
–
–
–
100.0%
–
300
Infrastructure - Other
63,269
229,465
236,781
70,028
91,495
Waste Management
24,975
159,000
170,000
67,421
72,500
5,079
7.0%
140,000
Transportation
35,853
63,849
54,099
876
16,500
15,624
94.7%
21,826
30.6%
12,913
Gas
–
–
–
–
–
–
Other
2,441
6,617
12,683
1,731
2,495
764
Com m unity
31,076
61,759
122,956
136,862
22,423
53,498
Parks & gardens
1,727
2,231
2,648
2,137
1,457
Sportsfields & stadia
7,185
3,500
3,738
207
–
–
58.1%
96,034
(681)
-46.7%
2,592
556
349
62.8%
2,211
–
–
Sw imming pools
425
Community halls
2,364
14,808
22,547
1,054
5,402
4,347
80.5%
14,290
16,114
40,316
54,935
11,651
19,791
8,140
41.1%
48,156
4
4
4
0
5.9%
Libraries
–
–
847
Recreational facilities
15
–
Fire, safety & emergency
–
–
–
–
–
–
–
Security and policing
–
–
–
–
–
–
–
Buses
–
–
–
–
–
–
Clinics
8,862
Museums & Art Galleries
–
Cemeteries
–
Social rental housing
Other
Heritage assets
6,700
–
5,164
1,145
3,364
2,219
4
–
66.0%
2,964
–
–
–
–
7,542
100
–
100
100
–
18,763
32,300
32,575
5,386
21,975
16,589
75.5%
18,275
6,304
15,558
15,150
838
850
12
1.4%
6,594
100.0%
100
204
–
–
–
–
–
–
–
–
–
–
–
–
–
204
–
–
–
–
–
–
Investm ent properties
–
–
–
–
–
–
–
Housing dev elopment
–
–
–
–
–
–
–
Other
–
–
–
–
–
–
Buildings
Other
Other assets
General v ehicles
Specialised v ehicles
Plant & equipment
–
721,145
1,007,201
996,074
209,797
257,223
47,426
18.4%
1,439,003
153,746
347,399
365,961
69,882
67,076
(2,805)
-4.2%
384,679
–
–
–
–
–
–
–
272,142
401,318
359,527
74,135
90,150
16,015
17.8%
403,438
Computers - hardw are/equipment
67,356
71,577
78,467
15,736
26,550
10,815
40.7%
83,990
Furniture and other office equipment
34,315
41,610
44,924
13,126
17,273
4,147
24.0%
44,906
Abattoirs
–
–
–
–
–
–
Markets
–
–
–
–
–
–
(621)
Civ ic Land and Buildings
Other Buildings
Other Land
Surplus Assets - (Inv estment or Inv entory )
Other
Agricultural assets
–
–
31,152
10,834
3,435
856
235
103,804
120,100
124,983
19,759
37,308
17,549
47.0%
99,918
58,101
14,150
18,550
16,077
18,450
2,373
12.9%
418,550
-25.7%
227
–
–
–
–
–
–
529
213
227
226
180
(46)
-263.8%
3,293
–
–
–
–
–
–
–
–
List sub-class
–
–
–
–
–
–
–
Biological assets
–
–
–
–
–
–
–
List sub-class
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Computers - softw are & programming
–
–
–
–
–
–
–
Other
–
–
–
–
–
–
Intangibles
Total Capital Expenditure on new assets
Specialised vehicles
2,439,680
3,494,371
3,704,237
944,329
958,636
14,307
–
1.5%
3,679,377
–
–
–
–
–
–
-
–
Refuse
–
–
–
–
–
–
-
–
Fire
–
–
–
–
–
–
-
–
Conserv ancy
–
–
–
–
–
–
-
–
Ambulances
–
–
–
–
–
–
-
–
44
Annexure A: In-year report (December 2014)
Table SC13b Monthly Budget Statement - capital expenditure on renewal of existing
assets by asset class
2013/14
Description
Budget Year 2014/15
Audited
Original
Adjusted
YearTD
YearTD
YTD
YTD
Full Year
Outcom e
Budget
Budget
actual
budget
variance
variance
Forecast
R thousands
%
Capital expenditure on renewal of existing assets by Asset Class/Sub-class
Infrastructure
Infrastructure - Road transport
Roads, Pav ements & Bridges
Storm w ater
Infrastructure - Electricity
Generation
Transmission & Reticulation
Street Lighting
Infrastructure - Water
1,094,900
1,653,963
1,814,032
476,294
409,209
(67,085)
-16.4%
217,144
353,351
478,248
132,124
138,639
6,515
4.7%
451,462
175,031
342,551
448,953
126,428
131,598
5,170
3.9%
424,343
42,113
10,800
29,295
5,696
7,041
1,345
19.1%
27,119
305,626
477,451
501,997
111,776
92,644
(19,132)
-20.7%
356,529
-20.7%
356,529
-67.7%
296,975
88
305,540
(2)
225,244
–
477,451
–
253,966
–
501,997
–
267,675
–
111,776
–
108,844
–
92,644
–
64,891
–
–
(43,953)
–
Dams & Reserv oirs
–
2,092
2,092
–
Water purification
–
2,000
14,000
648
2,000
1,352
67.6%
12,800
225,244
249,874
251,583
108,196
62,891
(45,305)
-72.0%
282,083
227,906
351,120
347,299
106,665
71,687
(34,978)
-48.8%
381,659
70,321
109,150
112,795
34,377
22,500
(11,877)
-52.8%
99,155
157,585
241,970
234,505
72,288
49,187
(23,101)
-47.0%
282,505
Infrastructure - Other
118,979
218,074
218,812
16,884
41,347
24,463
59.2%
100,420
Waste Management
41,645
166,764
145,432
5,808
12,558
6,750
53.7%
17,321
Transportation
75,108
48,700
70,770
10,356
27,570
17,214
62.4%
80,770
40.9%
2,329
Reticulation
Infrastructure - Sanitation
Reticulation
Sew erage purification
Gas
Other
Com m unity
–
–
–
–
–
–
(19,132)
1,587,046
–
–
2,092
–
2,225
2,610
2,610
720
1,219
499
–
441,809
482,217
568,664
259,526
276,146
16,619
6.0%
585,832
Parks & gardens
56,223
26,671
60,002
22,446
17,824
(4,622)
-25.9%
61,222
Sportsfields & stadia
33,650
61,848
78,337
30,893
42,698
11,805
27.6%
75,826
69
16
69
52
76.3%
6,265
7,000
9,404
1,513
5,794
4,281
73.9%
8,556
6,788
7,040
2,937
1,150
(1,787)
-155.4%
6,859
Sw imming pools
170
Community halls
19,161
Libraries
–
–
Recreational facilities
6,773
350
837
35
487
452
92.9%
1,184
Fire, safety & emergency
2,800
2,763
2,765
764
1,092
328
30.0%
2,765
Security and policing
–
–
–
–
–
–
Buses
–
–
–
–
–
–
Clinics
Museums & Art Galleries
Cemeteries
Social rental housing
Other
Heritage assets
Buildings
Other
Other assets
11,211
–
11,625
–
–
4,345
821
18.9%
15,064
190
68
190
121
63.9%
190
21,950
10,366
933
1,106
173
15.6%
10,366
297,276
342,147
378,845
195,079
199,779
4,700
2.4%
394,783
4,853
1,074
2,353
1,318
1,613
295
18.3%
2,753
500
850
1,339
345
595
250
42.0%
1,339
500
850
1,339
345
595
250
42.0%
1,339
–
–
–
–
–
579,915
General v ehicles
98,390
Specialised v ehicles
64,004
Plant & equipment
Furniture and other office equipment
3,524
9,692
525,404
Computers - hardw are/equipment
18,457
–
–
–
524,833
107,063
97,825
(9,238)
-9.4%
478,026
41,591
42,002
17,553
12,789
(4,764)
-37.3%
56,182
84,000
111,000
3,699
22,038
30,056
30,836
3,782
6,415
2,633
41.0%
30,154
123,936
103,102
111,472
42,940
42,982
42
0.1%
123,994
12,601
13,263
14,573
1,688
2,793
1,105
39.6%
31,825
–
(3,699)
63,000
Abattoirs
–
–
–
–
–
–
–
Markets
783
350
350
–
–
–
200
Civ ic Land and Buildings
Other Buildings
63,665
98,545
60,241
10,912
15,536
4,624
29.8%
60,241
139,245
207,009
151,952
26,387
17,111
(9,276)
-54.2%
111,522
Other Land
–
–
–
–
–
–
Surplus Assets - (Inv estment or Inv entory )
–
–
–
–
–
–
103
200
97
48.6%
907
Other
Agricultural assets
743
2,000
2,407
–
–
–
–
–
–
–
–
-
–
List sub-class
–
–
–
–
–
–
-
–
Biological assets
–
–
–
–
–
–
-
–
List sub-class
–
–
–
–
–
–
-
–
–
–
–
–
–
–
-
–
Computers - softw are & programming
–
–
–
–
–
–
-
–
Other
–
–
–
–
–
–
-
Intangibles
Total Capital Expenditure on renewal of
2,062,613
2,716,944
2,908,869
843,229
783,775
(59,454)
64,004
84,000
111,000
3,699
–
(3,699)
64,004
84,000
111,000
3,699
–
(3,699)
-7.6%
–
2,652,242
existing assets
Specialised vehicles
Refuse
63,000
-100.0%
63,000
Fire
–
–
–
–
–
–
-
–
Conserv ancy
–
–
–
–
–
–
-
–
Ambulances
–
–
–
–
–
–
-
–
45
Annexure A: In-year report (December 2014)
Table SC13c Monthly Budget Statement - expenditure on repairs and maintenance by
asset class
2013/14
Description
Budget Year 2014/15
Audited
Original
Adjusted
YearTD
YearTD
Outcom e
Budget
Budget
actual
budget
YTD variance YTD variance
R thousands
Full Year
Forecast
%
Repairs and m aintenance expenditure by Asset Class/Sub-class
Infrastructure
Infrastructure - Road transport
Roads, Pav ements & Bridges
Storm w ater
Infrastructure - Electricity
Generation
1,056,994
1,157,488
1,146,870
508,284
546,516
38,232
7.0%
1,146,870
508,687
617,412
617,412
257,494
292,807
35,314
12.1%
617,412
508,687
617,412
617,412
257,494
292,807
35,314
12.1%
617,412
–
–
–
–
–
–
–
348,592
354,430
354,430
173,216
177,202
3,986
2.2%
354,430
348,592
354,430
354,430
173,216
177,202
3,986
2.2%
354,430
Transmission & Reticulation
–
–
–
–
–
–
Street Lighting
–
–
–
–
–
–
–
–
Infrastructure - Water
65,935
59,414
40,398
23,746
19,542
(4,205)
-21.5%
40,398
Dams & Reservoirs
65,935
59,414
40,398
23,746
19,542
(4,205)
-21.5%
40,398
Water purification
–
–
–
–
–
–
Reticulation
–
–
–
–
–
–
Infrastructure - Sanitation
Reticulation
Sewerage purification
Infrastructure - Other
–
–
97,167
88,138
96,236
46,430
45,478
(952)
-2.1%
96,236
97,167
88,138
96,236
46,430
45,478
(952)
-2.1%
96,236
35.6%
38,394
–
36,612
–
38,094
–
38,394
–
7,398
–
11,488
–
4,090
–
Waste Management
–
–
–
–
–
–
–
Transportation
–
–
–
–
–
–
–
Gas
–
–
–
–
–
–
Other
Com m unity
Parks & gardens
36,612
38,094
38,394
7,398
11,488
4,090
81,839
82,389
83,374
30,686
25,522
11,093
7,287
7,287
5,725
2,597
(5,164)
-20.2%
83,374
(3,127)
-120.4%
7,287
1,473
–
–
Sw imming pools
4,230
102
102
4,772
51
(4,721)
-9287.8%
Community halls
7,244
2,591
1,740
2,524
866
(1,658)
-191.4%
180
669
670
829
233
(596)
-255.4%
47,602
66,213
67,548
14,019
18,841
4,822
25.6%
67,548
81
34.6%
521
Recreational facilities
Fire, safety & emergency
–
38,394
Sportsfields & stadia
Libraries
188
–
35.6%
(188)
407
521
521
152
233
Security and policing
–
–
–
–
–
–
Buses
–
–
–
–
–
–
Clinics
Museums & Art Galleries
Cemeteries
Social rental housing
Other
Heritage assets
Buildings
Other
1,688
–
6,061
–
2,512
–
1,465
–
1,965
–
1,587
1,259
–
1,024
–
–
1,029
1,029
334
418
14,217
15,199
13,909
9,154
5,590
14,217
–
15,199
–
556
1,861
–
–
2,512
–
13,909
–
9,154
–
5,590
703
–
(3,564)
–
2,512
-55.0%
1,965
20.0%
1,029
-63.8%
13,909
-63.8%
13,909
–
–
–
(3,564)
670
55.8%
–
84
1,740
–
–
(563)
102
–
Investm ent properties
–
–
–
–
–
–
–
Housing dev elopment
–
–
–
–
–
–
–
Other
–
–
–
–
–
–
Other assets
General v ehicles
Specialised v ehicles
Plant & equipment
–
1,752,321
1,894,279
1,872,722
783,929
852,518
68,589
8.0%
1,872,722
136,885
137,258
136,958
68,546
69,316
770
1.1%
136,958
13,516
–
9,955
–
13,516
–
–
–
–
–
13,516
4,138
4,433
295
6.7%
Computers - hardw are/equipment
234,390
294,350
289,451
113,000
134,711
21,712
16.1%
289,451
Furniture and other office equipment
967,841
1,021,188
1,017,635
421,210
458,351
37,141
8.1%
1,017,635
Abattoirs
–
–
–
–
–
–
Markets
–
–
–
–
–
–
Civ ic Land and Buildings
Other Buildings
Other Land
Surplus Assets - (Inv estment or Inv entory )
Other
Agricultural assets
66,766
72,965
74,247
24,826
35,190
10,364
–
–
29.5%
74,247
1,651
1,860
1,860
1,012
868
(144)
-16.7%
1,860
110,407
110,197
110,247
47,933
39,704
(8,230)
-20.7%
110,247
6.1%
228,806
–
224,425
–
242,945
–
228,806
–
103,264
–
109,945
–
6,681
–
–
–
–
–
–
–
List sub-class
–
–
–
–
–
–
-
–
Biological assets
–
–
–
–
–
–
-
–
List sub-class
–
–
–
–
–
–
-
–
–
–
–
–
–
–
-
–
Computers - softw are & programming
–
–
–
–
–
–
-
–
Other
–
–
–
–
–
–
-
Intangibles
Total Repairs and Maintenance Expenditure
Specialised vehicles
2,905,370
3,149,355
3,116,874
1,332,053
1,430,146
98,093
–
6.9%
–
3,116,874
–
–
–
–
–
–
-
–
Refuse
–
–
–
–
–
–
-
–
Fire
–
–
–
–
–
–
-
–
Conserv ancy
–
–
–
–
–
–
-
–
Ambulances
–
–
–
–
–
–
-
–
46
Annexure A: In-year report (December 2014)
PART 3 – CONSOLIDATED IN-YEAR REPORT
Consolidated Monthly Budget Statement Summary
Description
R thousands
Current Year 2014/15
2013/14
Audited
Outcome
Original
Budget
Adjusted
Budget
YearTD actual YearTD budget
YTD
variance
YTD
variance %
Full Year
Forecast
Financial Performance
Property rates
Service charges
Investment revenue
5,546,774
5,942,513
5,942,513
2,999,291
2,968,358
30,933
1.0%
5,964,279
13,903,679
15,262,264
15,198,242
7,442,371
7,345,196
97,175
1.3%
15,184,641
472,292
292,750
292,750
265,815
177,184
88,631
50.0%
283,338
2,399,033
3,498,169
3,539,580
1,618,661
1,690,699
(72,038)
-4.3%
3,460,886
3,926,120
26,247,898
3,570,063
28,565,757
4,328,526
29,301,611
2,141,042
14,467,180
2,067,866
14,249,303
73,176
217,877
3.5%
1.5%
4,303,380
29,196,524
8,682,573
8,984,807
8,983,653
4,493,105
4,625,807
(132,702)
-2.9%
8,862,482
119,709
133,619
133,619
60,819
59,997
822
1.4%
133,619
445
289
289
183
332
(149)
-44.9%
140
1,805,844
2,181,042
2,181,042
957,343
1,078,828
(121,485)
-11.3%
2,039,242
807,283
919,232
912,241
374,819
374,508
311
0.1%
912,233
6,890,385
7,437,129
7,428,698
3,461,728
3,480,985
(19,257)
-0.6%
7,439,669
115,021
125,354
138,609
85,397
82,027
3,369
4.1%
136,839
8,270,520
26,691,780
9,050,848
28,832,320
9,846,992
29,625,143
3,633,260
13,066,652
3,914,579
13,617,062
(281,319)
(550,409)
-7.2%
-4.0%
9,917,807
29,442,031
(443,881)
(266,562)
(323,532)
1,400,527
632,241
768,286
121.5%
2,052,758
2,817,627
3,102,985
1,017,765
977,787
39,977
4.1%
76,408
65,226
65,749
25,225
22,077
3,148
14.3%
Surplus/(Deficit) after capital transfers &
contributions
Taxation
1,685,285
2,616,291
2,845,202
2,443,517
1,632,106
8,252
4,990
4,990
8,077
5,443
Surplus/(Deficit) after Taxation
1,677,033
2,611,301
2,840,212
2,435,440
1,626,663
2,985,988
6,533
1,670,500
3,621
2,607,680
3,621
2,836,591
5,842
2,429,598
4,013
1,622,650
3,334
2,982,654
Total current assets
10,035,121
10,605,522
10,814,463
12,232,009
10,934,555
Total non current assets
35,022,992
37,893,274
38,721,305
32,628,577
38,837,971
8,216,752
7,370,680
8,539,996
5,495,795
8,541,940
Total non current liabilities
12,452,302
13,005,691
13,005,691
12,615,283
13,003,252
Total Community wealth/Equity
24,389,058
28,122,425
27,990,081
26,749,508
28,227,334
Net cash from (used) operating
4,505,290
5,663,503
5,555,550
2,220,215
2,461,778
(241,564)
Net cash from (used) investing
(6,110,888)
(6,556,917)
(7,436,235)
(2,176,747)
(2,789,223)
Net cash from (used) financing
(83,994)
1,454,051
1,254,872
33,154
(154,628)
6,564,622
7,518,925
5,616,552
6,641,244
6,276,445
Transfers recognised - operational
Other own revenue
Total Revenue (excluding capital transfers and
contributions)
Employee costs
Remuneration of Councillors
Remuneration of Directors
Depreciation & asset impairment
Finance charges
Materials and bulk purchases
Transfers and grants
Other expenditure
Total Expenditure
Surplus/(Deficit)
Transfers recognised - capital
Contributions recognised - capital & contributed assets
Attributable to minorities
Surplus/ (Deficit) for the year
(245,507)
3,184,165
52,010
2,990,669
2,634
48.4%
4,681
Financial position
Total current liabilities
Cash flows
Cash/cash equivalents at the year end
47
-10%
5,580,204
612,475
-22%
(7,628,414)
187,782
-121%
1,737,588
6,254,001
Annexure A: In-year report (December 2014)
Consolidated Monthly Budget Statement – Financial Performance (revenue and
expenditure)
2013/14
Description
Current Year 2014/15
Audited
Original
Adjusted
Outcome
Budget
Budget
YearTD actual
YearTD
YTD variance
budget
R thousands
YTD variance
Full Year
Forecast
%
Revenue By Source
Property rates
Property rates - penalties & collection charges
5,546,774
–
5,942,513
–
5,942,513
–
2,999,291
–
2,968,358
–
30,933
1.0%
5,964,279
–
–
Serv ice charges - electricity rev enue
9,323,160
10,072,265
10,072,265
5,081,004
5,005,307
75,697
1.5%
10,071,811
Serv ice charges - w ater rev enue
2,185,812
2,540,080
2,493,562
1,093,508
1,102,746
(9,238)
-0.8%
2,464,487
Serv ice charges - sanitation rev enue
1,188,051
1,338,202
1,327,720
598,904
593,510
5,394
0.9%
1,316,720
Serv ice charges - refuse rev enue
920,173
989,912
989,912
482,863
494,956
(12,093)
-2.5%
970,912
Serv ice charges - other
286,484
321,805
314,784
186,093
148,678
37,415
20.1%
360,711
Rental of facilities and equipment
401,348
442,959
442,989
227,270
222,136
5,133
2.3%
439,408
Interest earned - ex ternal inv estments
472,292
292,750
292,750
265,815
177,184
88,631
33.3%
283,338
Interest earned - outstanding debtors
192,312
208,262
212,262
98,442
101,727
(3,285)
-3.3%
197,086
19.6%
916,393
Div idends receiv ed
Fines
Licences and permits
–
729,139
–
175,648
–
–
–
916,229
109,186
87,824
–
21,362
–
44,386
40,388
40,378
21,565
19,722
1,844
8.5%
40,988
150,256
150,439
153,993
83,246
65,097
18,149
21.8%
153,993
Transfers recognised - operational
2,399,033
3,498,169
3,539,580
1,618,661
1,690,699
(72,038)
-4.5%
3,460,886
Other rev enue
2,343,773
2,431,868
2,442,175
1,572,893
1,540,022
32,871
2.1%
2,435,013
64,906
120,500
120,500
28,440
31,338
(2,898)
-10.2%
26,247,898
28,565,757
29,301,611
14,467,180
14,249,303
217,877
1.5%
29,196,524
8,682,573
8,984,807
8,983,653
4,493,105
4,625,807
(132,702)
-3.0%
8,862,482
119,709
133,619
133,619
60,819
59,997
822
1.4%
133,619
445
289
289
183
332
(149)
-81.4%
1,295,526
950,533
1,691,334
475,376
475,376
0
Agency serv ices
Gains on disposal of PPE
Total Revenue (excluding capital transfers and
120,500
contributions)
Expenditure By Type
Employ ee related costs
Remuneration of Councillors
Remuneration of Directors
Debt impairment
Collection costs
Depreciation & asset impairment
Finance charges
–
1,805,844
–
2,181,042
–
2,181,042
–
957,343
–
1,078,828
1,691,334
-12.7%
2,039,242
–
(121,485)
140
0.0%
–
807,283
919,232
912,241
374,819
374,508
311
0.1%
912,233
Bulk purchases
6,591,232
7,050,011
7,046,661
3,296,986
3,316,375
(19,389)
-0.6%
7,086,261
Other materials
299,153
387,117
382,036
164,741
164,610
132
0.1%
353,408
Contracted serv ices
3,312,529
4,205,198
4,201,676
1,411,146
1,597,710
(186,564)
Transfers and grants
115,021
125,354
138,609
85,397
82,027
3,369
3.9%
136,839
3,660,521
3,895,116
3,953,982
1,746,737
1,841,492
(94,755)
-5.4%
4,226,638
Other ex penditure
Loss on disposal of PPE
Total Expenditure
Surplus/(Deficit)
Transfers recognised - capital
1,944
–
–
–
–
–
-13.2%
-
3,999,835
–
26,691,780
28,832,320
29,625,143
13,066,652
13,617,062
(550,409)
-4.0%
29,442,031
(443,881)
(266,562)
(323,532)
1,400,527
632,241
768,286
54.9%
(245,507)
2,052,758
2,817,627
3,102,985
1,017,765
977,787
39,977
3.9%
3,184,165
Contributions recognised - capital
43,022
65,226
65,749
23,725
22,077
1,648
6.9%
52,010
Contributed Assets
33,387
1,500
100.0%
–
–
1,500
–
–
Surplus/(Deficit) after capital transfers and
contributions
Tax ation
Surplus/(Deficit) after taxation
Attributable to minorities
Surplus/(Deficit) attributable to municipality
Share of surplus/(deficit) of associate
Surplus/(Deficit) for the year
48
1,685,285
2,616,291
2,845,202
2,443,517
1,632,106
811,411
33.2%
2,990,669
8,252
4,990
4,990
8,077
5,443
2,634
32.6%
4,681
1,677,033
2,611,301
2,840,212
2,435,440
1,626,663
6,533
3,621
3,621
5,842
4,013
3,334
1,670,500
2,607,680
2,836,591
2,429,598
1,622,650
2,982,654
–
1,670,500
–
2,607,680
–
2,836,591
–
2,429,598
–
1,622,650
2,985,988
–
2,982,654
Annexure A: In-year report (December 2014)
Consolidated Monthly Budget Statement – Financial Position
Vote Description
2013/14
Current Year 2014/15
Audited
Outcome
Original
Budget
Adjusted
Budget
YearTD actual
Full Year
Forecast
R thousands
ASSETS
Current assets
Cash
2,273,427
Call investment deposits
2,735,107
5,422,313
5,642,674
6,158,738
5,762,513
Consumer debtors
4,309,614
4,499,300
4,503,300
3,246,669
4,503,300
426,971
365,086
365,086
373,330
365,311
Other debtors
Current portion of long-term receivables
Inventory
Total current assets
–
–
2,119,970
–
19,650
20,495
18,543
19,650
18,543
270,351
298,329
284,860
313,652
284,887
10,035,121
10,605,522
10,814,463
12,232,009
10,934,555
104,311
91,753
91,753
91,984
91,753
3,245,041
1,682,069
1,859,632
Non current assets
Long-term receivables
Investments
–
1,859,632
Investment property
–
–
–
–
–
Investments in Associate
–
–
–
–
–
Property, plant and equipment
31,673,639
36,119,452
36,769,920
32,536,593
36,886,587
Agricultural assets
–
–
–
–
–
Biological assets
–
–
–
–
–
Intangible assets
–
–
–
–
–
Other non-current assets
–
–
–
–
–
Total non current assets
35,022,992
37,893,274
38,721,305
32,628,577
38,837,971
TOTAL ASSETS
45,058,112
48,498,796
49,535,768
44,860,586
49,772,526
LIABILITIES
Current liabilities
Bank overdraft
–
–
–
–
–
Borrowing
368,325
378,885
378,885
368,325
378,885
Consumer deposits
398,525
383,610
383,610
281,947
383,787
Trade and other payables
6,368,102
5,160,362
5,693,790
3,846,821
5,695,194
Provisions
1,081,800
1,447,824
2,083,711
998,701
2,084,074
8,216,752
7,370,680
8,539,996
5,495,795
8,541,940
Borrowing
6,666,139
7,902,043
7,902,043
6,526,052
7,902,043
Provisions
5,786,163
5,103,648
5,103,648
6,089,231
5,101,209
Total non current liabilities
12,452,302
13,005,691
13,005,691
12,615,283
13,003,252
TOTAL LIABILITIES
20,669,054
20,376,371
21,545,687
18,111,078
21,545,192
NET ASSETS
24,389,058
28,122,425
27,990,081
26,749,508
28,227,334
21,980,369
25,865,578
26,126,681
24,402,504
26,142,145
2,219,916
2,040,522
1,647,075
2,146,032
1,647,075
Total current liabilities
Non current liabilities
COMMUNITY WEALTH/EQUITY
Accumulated Surplus/(Deficit)
Reserves
Share capital
Non-controlling interest
TOTAL COMMUNITY WEALTH/EQUITY
49
–
–
–
–
221,789
188,773
216,325
216,325
200,972
216,325
24,389,058
28,122,425
27,990,081
26,749,508
28,227,334
Annexure A: In-year report (December 2014)
Consolidated Monthly Budget Statement – Cash Flow
2013/14
Description
R thousands
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepayers and other
Government - operating
Government - capital
Interest
Dividends
Payments
Suppliers and employees
Finance charges
Dividends paid
Transfers and Grants
NET CASH FROM/(USED) OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE
Decrease (Increase) in non-current debtors
Decrease (increase) other non-current receivables
Decrease (increase) in non-current investments
Payments
Capital assets
NET CASH FROM/(USED) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrowing long term/refinancing
Increase (decrease) in consumer deposits
Payments
Repayment of borrowing
NET CASH FROM/(USED) FINANCING ACTIVITIES
NET INCREASE/ (DECREASE) IN CASH HELD
Cash/cash equivalents at beginning:
Cash/cash equivalents at month/year end:
50
Audited
Outcome
Current Year 2014/15
Original
Budget
Adjusted
Budget
YearTD actual YearTD budget
YTD variance
YTD
variance
%
Full Year
Forecast
22,201,554
2,389,432
2,052,758
740,654
–
23,390,138
3,498,169
2,882,853
292,750
–
23,356,401
3,502,470
3,104,572
924,430
–
13,240,235
1,540,085
1,762,587
280,518
–
12,180,382
2,313,582
1,709,172
248,587
–
1,059,853
(773,497)
53,415
31,931
–
9%
-33%
3%
13%
23,520,271
3,502,470
3,104,572
944,959
(21,972,498)
(791,590)
–
(115,021)
4,505,290
(23,570,660)
(829,746)
–
–
5,663,503
(24,502,576)
(829,746)
–
–
5,555,550
(14,243,372)
(359,838)
–
–
2,220,215
(13,631,554)
(358,391)
–
–
2,461,778
(611,818)
(1,447)
–
(241,564)
4%
0%
-10%
(24,662,322)
(829,746)
–
–
5,580,204
71,458
–
(1,751)
(1,689,664)
40,167
–
(4,829)
(379,999)
120,500
–
(51,092)
(1,029,558)
–
–
–
(229,998)
–
–
–
(230,000)
0%
120,500
–
(51,092)
(1,029,558)
(4,490,931)
(6,212,256)
(6,476,086)
(1,946,750)
(2,559,223)
612,473
-24%
(6,668,265)
(6,110,888)
(6,556,917)
(7,436,235)
(2,176,747)
(2,789,223)
612,475
-22%
(7,628,414)
–
199,074
62,000
–
1,730,000
33,904
–
1,500,000
64,726
–
186,357
–
(345,067)
(83,994)
(1,689,592)
8,254,214
6,564,622
(309,853)
1,454,051
560,637
6,958,287
7,518,925
(309,853)
1,254,872
(625,813)
6,242,365
5,616,552
(153,203)
33,154
76,621
6,564,622
6,641,244
–
–
–
(154,628)
(154,628)
(482,073)
6,758,518
6,276,445
–
–
–
3
–
186,357
–
1,426
187,782
–
1,982,716
64,726
-1%
-121%
(309,853)
1,737,588
(310,622)
6,564,622
6,254,001
Annexure A: In-year report (December 2014)
PART 4 – IN-YEAR REPORT:
MUNICIPAL ENTITY (CAPE TOWN
INTERNATIONAL CONVENTION CENTRE – (CTICC))
Executive Summary
CTICC hosted 28 events in December 2014. The entity achieved a year-to-date surplus of
R20.7 million. Total revenue exceeded its budget by R891 000 while total expenditure
reflects a savings of R8.3 million.
Table F1 Monthly Budget Statement Summary
Description
R thousands
Current Year 2014/15
2013/14
Audited
Original
Adjusted
YearTD
YearTD
Outcome
Budget
Budget
actual
budget
YTD variance
YTD variance
Full Year
%
Forecast
Financial Performance
Property rates
–
–
–
–
–
–
-
Serv ice charges
–
–
–
–
–
–
-
Inv estment rev enue
Transfers recognised - operational
Other ow n rev enue
Total Revenue (excluding capital
11,239
–
16,988
–
–
–
10,939
–
9,840
–
1,099
11%
–
–
20,529
–
-
174,902
177,785
–
99,675
99,884
(209)
-0%
180,735
–
186,141
194,773
–
110,614
109,724
891
1%
201,265
41,719
44,324
–
21,693
22,003
(309)
-1%
46,811
445
289
–
183
332
(149)
-45%
850
20,875
26,707
–
11,048
13,354
(2,306)
-17%
26,707
transfers and contributions)
Employ ee costs
Remuneration of Board Members
Depreciation and asset impairment
Finance charges
–
–
–
–
–
–
-
–
Materials and bulk purchases
–
–
–
–
–
–
-
–
Transfers and grants
–
–
–
–
–
–
-
Other ex penditure
Total Expenditure
Surplus/(Deficit)
Transfers recognised - capital
97,293
105,630
–
48,845
54,374
(5,529)
160,331
176,951
–
81,769
90,062
25,809
17,822
–
28,845
19,662
–
–
–
–
–
–
–
–
-10%
107,750
(8,293)
-9%
182,119
9,183
47%
19,146
–
-
–
Contributions recognised capital & contributed assets
Surplus/(Deficit) after capital transfers
–
25,809
17,822
–
8,252
4,990
–
17,558
12,832
–
52,100
–
28,845
–
–
-
–
19,662
9,183
47%
19,146
8,077
5,443
2,634
48%
5,361
20,768
14,219
6,550
46%
13,785
165,500
& contributions
Tax ation
Surplus/ (Deficit) for the year
Capital expenditure & funds sources
Capital expenditure
Transfers recognised - capital
–
–
–
–
–
-
Public contributions & donations
–
–
–
–
–
–
-
Borrow ing
–
–
–
–
–
–
-
Internally generated funds
–
–
41,259
26,679
–
32,893
39,389
(6,496)
-16%
26,679
41,259
78,779
–
32,893
39,389
(6,496)
-16%
192,179
Total current assets
365,734
565,951
–
545,859
686,043
Total non current assets
205,314
254,119
–
227,005
370,786
61,530
48,865
–
56,221
50,810
2,201
4,640
–
2,201
2,201
507,317
766,565
–
714,442
1,003,818
Total sources of capital funds
Financial position
Total current liabilities
Total non current liabilities
Community wealth/Equity
Cash flows
Net cash from (used) operating
42,337
44,512
–
23,450
27,624
(4,174)
-24%
24,654
Net cash from (used) inv esting
(41,259)
(78,779)
–
(32,791)
(13,354)
(19,438)
-146%
(192,179)
Net cash from (used) financing
199,074
230,000
–
186,357
186,357
-
482,716
354,999
550,351
–
532,015
362,896
1140%
670,190
Cash/cash equivalents at the year end
51
–
169,119
Annexure A: In-year report (December 2014)
Table F2 Monthly Budget Statement – Financial Performance (revenue and
expenditure)
2013/14
Description
Current Year 2014/15
Audited
Original
Adjusted
YearTD
YearTD
Outcome
Budget
Budget
actual
budget
YTD variance YTD variance
R thousands
Full Year
Forecast
%
Revenue By Source
Property rates
–
–
–
–
–
–
-
–
Property rates - penalties & collection charges
–
–
–
–
–
–
-
–
Serv ice charges - electricity rev enue
–
–
–
–
–
–
-
–
Serv ice charges - w ater rev enue
–
–
–
–
–
–
-
–
Serv ice charges - sanitation rev enue
–
–
–
–
–
–
-
–
Serv ice charges - refuse rev enue
–
–
–
–
–
–
-
–
Serv ice charges - other
–
–
–
–
–
–
-
–
Rental of facilities and equipment
83,459
84,247
–
49,721
52,999
(3,277)
-6%
85,447
Interest earned - ex ternal inv estments
11,239
16,988
–
10,939
9,840
1,099
11.2%
20,529
Interest earned - outstanding debtors
–
–
–
–
–
–
-
–
Div idends receiv ed
–
–
–
–
–
–
-
–
Fines
–
–
–
–
–
–
-
–
Licences and permits
–
–
–
–
–
–
-
–
Agency serv ices
–
–
–
–
–
–
-
–
Transfers recognised - operational
–
–
–
–
–
–
-
Other rev enue
Gains on disposal of PPE
91,443
–
–
–
49,954
–
46,885
–
3,069
6.5%
–
95,288
–
-
186,141
194,773
–
110,614
109,724
891
0.8%
201,265
41,719
44,324
–
21,693
22,003
(309)
-1.4%
46,811
445
289
–
183
332
(149)
-44.9%
850
Debt impairment
–
–
–
–
–
–
-
–
Collection costs
–
–
–
–
–
–
-
Total Revenue (excluding capital transfers and
–
93,538
–
contributions)
Expenditure By Type
Employ ee related costs
Remuneration of Directors
Depreciation & asset impairment
20,875
26,707
–
11,048
13,354
(2,306)
-17.3%
–
26,707
Finance charges
–
–
–
–
–
–
-
–
Bulk purchases
–
–
–
–
–
–
-
–
Other materials
–
–
–
–
–
–
-
–
Contracted serv ices
–
–
–
–
–
–
-
–
Transfers and grants
–
–
–
–
–
–
-
Other ex penditure
Loss on disposal of PPE
97,293
–
105,630
–
–
–
48,845
–
54,374
–
(5,529)
–
-10.2%
-
–
107,750
–
Total Expenditure
160,331
176,951
–
81,769
90,062
(8,293)
-9.2%
182,119
Surplus/(Deficit)
25,809
17,822
–
28,845
19,662
9,183
46.7%
19,146
Transfers recognised - capital
–
–
–
–
–
–
-
–
Contributions recognised - capital
–
–
–
–
–
–
-
–
Contributions of PPE
–
–
–
–
–
–
-
Surplus/(Deficit) before taxation
Tax ation
Surplus/(Deficit) for the year
52
25,809
17,822
–
8,252
4,990
–
17,558
12,832
–
28,845
–
19,662
9,183
46.7%
19,146
8,077
5,443
2,634
48.4%
5,361
20,768
14,219
6,550
46.1%
13,785
Annexure A: In-year report (December 2014)
Table F3 Monthly Budget Statement – Capital expenditure
2013/14
Vote Description
Current Year 2014/15
Audited
Original
Adjusted
YearTD
YearTD
Outcome
Budget
Budget
actual
budget
YTD variance YTD variance
R thousands
Full Year
Forecast
%
Single Year expenditure
Building Enhancements
6,883
13,300
–
1,275
6,650
(5,375)
-80.8%
13,300
10,430
9,029
–
1,650
4,514
(2,865)
-63.5%
9,029
868
960
–
296
480
(184)
-38.3%
960
2,114
3,390
–
1,378
1,695
(317)
-18.7%
3,390
CTICC2
20,964
52,100
–
28,294
26,050
2,244
8.6%
165,500
Capital single-year expenditure sub-total
41,259
78,779
–
32,893
39,389
(6,496)
-16.5%
192,179
IT & Telecommunications
Operational Furniture & Equipment
Catering Furniture & Equipment
Funded by:
National Gov ernment
–
–
–
–
–
–
-
Prov incial Gov ernment
–
–
–
–
–
–
-
Parent Municipality
–
–
–
–
–
-
District Municipality
–
–
–
–
–
-
–
–
–
–
–
Transfers recognised - capital
–
Public contributions & Donations
–
–
–
–
–
–
-
Borrowing
–
–
–
–
–
–
-
Internally generated funds
Total Capital Funding
53
52,100
52,100
–
–
165,500
–
165,500
–
–
41,259
26,679
–
32,893
39,389
(6,496)
-16.5%
26,679
41,259
78,779
–
32,893
39,389
(6,496)
-16.5%
192,179
Annexure A: In-year report (December 2014)
Table F4 Monthly Budget Statement – Financial Position
2013/14
Vote Description
Current Year 2014/15
Audited
Original
Adjusted
YearTD
Full Year
Outcome
Budget
Budget
actual
Forecast
R thousands
ASSETS
Current assets
Cash
Call inv estment deposits
Consumer debtors
Other debtors
Current portion of long-term receiv ables
Inv entory
Total current assets
6,867
348,132
–
9,666
–
–
550,351
–
13,586
–
–
7,249
–
524,766
–
–
–
–
12,531
–
–
670,190
–
13,811
–
1,068
2,014
–
1,313
2,041
365,734
565,951
–
545,859
686,043
Non current assets
Long-term receiv ables
–
–
–
–
–
Inv estments
–
–
–
–
–
–
–
Inv estment property
Property , plant and equipment
–
205,314
254,119
–
–
227,005
–
370,786
Agricultural assets
–
–
–
–
–
Biological assets
–
–
–
–
–
Intangible assets
–
–
–
–
–
Total non current assets
205,314
254,119
–
227,005
370,786
TOTAL ASSETS
571,048
820,070
–
772,864
1,056,829
LIABILITIES
Current liabilities
Bank ov erdraft
–
–
–
–
–
Borrow ing
–
–
–
–
–
Consumer deposits
28,308
10,667
–
24,189
10,844
Trade and other pay ables
29,972
35,039
–
29,769
36,443
3,250
3,159
–
2,264
3,522
61,530
48,865
–
56,221
50,810
Prov isions
Total current liabilities
Non current liabilities
Borrow ing
Prov isions
Total non current liabilities
TOTAL LIABILITIES
NET ASSETS
–
–
–
–
–
2,201
4,640
–
2,201
2,201
2,201
4,640
–
2,201
2,201
63,731
53,505
–
58,422
53,011
507,317
766,565
–
714,442
1,003,818
(257,396)
(259,075)
–
(236,628)
(243,611)
COMMUNITY WEALTH/EQUITY
Accumulated Surplus/(Deficit)
Reserv es
Share capital
TOTAL COMMUNITY WEALTH/EQUITY
54
–
–
–
–
–
764,713
1,025,640
–
951,070
1,247,429
507,317
766,565
–
714,442
1,003,818
Annexure A: In-year report (December 2014)
Table F5 Monthly Budget Statement – Cash Flow
2013/14
Description
Current Year 2014/15
Audited
Original
Adjusted
YearTD
YearTD
Outcome
Budget
Budget
actual
budget
YTD variance YTD variance
R thousands
Full Year
Forecast
%
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepay ers and other
181,112
83,203
–
93,209
99,701
(6,492)
-6.5%
Gov ernment - operating
–
–
–
–
–
–
-
Gov ernment - capital
–
–
–
–
–
–
-
Interest
Div idends
11,280
–
16,988
–
–
–
10,958
–
9,840
–
1,119
–
11.4%
-
163,871
–
–
20,529
–
Payments
Suppliers and employ ees
–
(80,697)
Finance charges
(41)
–
–
(20)
–
(20)
Div idends paid
–
–
–
–
–
–
-
Transfers and Grants
–
–
–
–
–
–
-
NET CASH FROM/(USED) OPERATING ACTIVITIES
(150,015)
42,337
(55,679)
44,512
–
23,450
(81,917)
27,624
1,219
(6,573)
-1.5%
(159,746)
–
-23.8%
–
–
24,654
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE
–
–
–
–
–
–
-
–
Decrease (Increase) in non-current debtors
–
–
–
–
–
–
-
–
Decrease (increase) other non-current receiv ables
–
–
–
–
–
–
-
–
Decrease (increase) in non-current inv estments
–
–
–
–
–
–
-
–
Payments
Capital assets
NET CASH FROM/(USED) INVESTING ACTIVITIES
(41,259)
(78,779)
–
(32,791)
(13,354)
(19,438)
145.6%
(192,179)
(41,259)
(78,779)
–
(32,791)
(13,354)
19,438
-145.6%
(192,179)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrow ing long term/refinancing
Increase (decrease) in consumer deposits
–
199,074
–
–
230,000
–
–
–
–
–
–
–
186,357
–
–
–
–
–
–
–
-
186,357
–
482,716
–
-
–
-
–
Payments
Repay ment of borrow ing
–
NET CASH FROM/(USED) FINANCING ACTIVITIES
199,074
230,000
–
186,357
NET INCREASE/ (DECREASE) IN CASH HELD
–
–
186,357
-
482,716
162,745
1140.4%
315,191
200,151
195,733
–
177,015
14,271
Cash/cash equiv alents at the y ear begin:
154,848
354,617
–
354,999
154,848
354,999
Cash/cash equiv alents at the y ear end:
354,999
550,351
–
532,015
169,119
670,190
Note: Borrowing long term/refinancing: Expected shareholding taken up by the City towards the expansion of
the Convention Centre.
55
Annexure A: In-year report (December 2014)
PART 5 - SUPPORTING DOCUMENTATION: ENTITY
Table SF1 Entity Material variance explanation
Description
Variance
Reasons for m aterial deviations
Rem edial or corrective steps / rem arks
R thousands
Revenue item s
Rental of facilities and equipment
(3,277) Venue rental has not achieved its budget as at December 2014 Month
end, how ever this w ill be made up in the remainder of the financial
year.
Interest earned - external investments
Management is confident that the budget w ill be met during
the remainder of the financial year.
1,099 The variance is due to the favourable cash balances as a result of the No remedial action required at this stage.
timing of payment of capital projects and the investment of surplus
funds.
Expenditure item s
Depreciation & asset impairment
(2,306) The depreciation charge is less than budget due to the timing of the
capital spend.
Spending w ill accelerate as the year progresses.
(5,529) The favourable variance is as a result of savings on various indirect
expenses.
-
(5,375) Percentage of capital projects for the year-to-date completed/or
committed is 68%. The variance relates to the delay in payment to the
respective service providers until the projects are 100% satisfactory.
No remedial action required at this stage.
(2,865) Percentage of capital projects for the year-to-date completed/or
committed is 68%. The variance relates to the delay in payment to the
respective service provider until the projects are 100% satisfactory.
No remedial action required at this stage.
Operational Furniture & Equipment
(184) Percentage of capital projects for the year-to-date completed/or
committed is 68%. The variance relates to the delay in payment to the
respective service provider until the projects are 100% satisfactory.
No remedial action required at this stage.
Catering Furniture & Equipment
(317) Percentage of capital projects for the year-to-date completed/or
committed is 68%. The variance relates to the delay in payment to the
respective service provider until the projects are 100% satisfactory.
No remedial action required at this stage.
Other expenditure
Capital Expenditure item s
Building Enhancements
IT & Telecommunications
Table SF3 Entity Aged debtors
Current Year 2014/15
Detail
R thousands
0-
31 -
61 -
91 -
121 -
151 -
181 Days -
Over 1
30 Days
60 Days
90 Days
120 Days
150 Days
180 Days
1 Year
Year
Total
Bad
>90 days
Debts
Debtors Age Analysis By Revenue Source
Rates
–
–
–
–
–
–
–
–
–
–
–
Electricity
–
–
–
–
–
–
–
–
–
–
–
Water
–
–
–
–
–
–
–
–
–
–
–
Sew erage / Sanitation
–
–
–
–
–
–
–
–
–
–
–
Refuse Remov al
–
–
–
–
–
–
–
–
–
–
–
Housing (Rental Rev enue)
–
–
–
–
–
–
–
–
–
–
1,885
707
451
80
1,696
–
–
–
4,819
–
1,776
1,885
707
451
80
1,696
–
–
–
4,819
–
1,776
Other
Total By Income Source
Debtors Age Analysis By Customer Group
Gov ernment
–
–
–
–
–
–
–
–
–
–
Business
–
–
–
–
–
–
–
–
–
–
Households
–
–
–
–
–
–
–
–
–
–
1,885
707
451
80
1,696
–
–
–
4,819
–
1,885
707
451
80
1,696
–
–
–
4,819
–
Other
Total By Customer Group
56
–
Annexure A: In-year report (December 2014)
Table SF4 Entity Aged creditors
Current Year 2014/15
Detail
R thousands
0-
31 -
61 -
91 -
121 -
151 -
181 Days -
Over 1
30 Days
60 Days
90 Days
120 Days
150 Days
180 Days
1 Year
Year
Total
Creditors Age Analysis By Customer Type
Bulk Electricity
–
–
–
–
–
–
–
–
–
Bulk Water
–
–
–
–
–
–
–
–
–
PAYE deductions
–
–
–
–
–
–
–
–
–
VAT (output less input)
–
–
–
–
–
–
–
–
–
Pensions / Retirement deductions
–
–
–
–
–
–
–
–
–
Loan repay ments
–
–
–
–
–
–
–
–
669
–
–
–
Trade Creditors
5,572
65
9
0
Auditor General
–
–
–
–
–
–
–
–
Other
–
–
–
–
–
–
–
–
669
–
–
–
Total By Customer Type
5,572
65
9
0
–
6,315
–
–
6,315
Table SF5 Entity investment portfolio monthly statement
Investm ents by m aturity
Nam e of institution & investm ent ID
R thousands
Cash
Current Year 2014/15
Period of
investm ent
Months
Nedbank Current Account (Acc Number: 1232043850)
Expiry date of
investm ent
Accrued
interest
for the
m onth
Yield
%
Current Account
Nedbank Call Account (Acc Number:
03/7881544007/46)
Nedbank Investment Account (Acc Number:
03/7881544007/000096)
Type of investm ent
Call Account
Three
3 Month
13 January 2015
Market value
Begin
Change
End
111
16
127
2,813
54
2,867
21
5.50
5,360
(3,414)
1,946
35
6.05
14,925
42
14,967
ABSA Bank Current (Acc Number: 4072900553)
Current Account
4,762
(4,066)
696
ABSA Bank - CTICC East - Current (Acc Number:
4072900228)
Current Account
5
266
272
ABSA Bank - Exh Serv - Current (Acc Number:
4072900731)
Current Account
701
545
1,246
9
1,981
ABSA Bank Treasury (Acc Number: 4073731246)
Treasury
61
ABSA Bank Treasury (Acc Number : 4073733701)
Treasury
1,973
61
Absa Bank - Call Deposit (Acc Number: 4074708347)
Call Account
3
5.50
3,484
713
4,197
Stanlib - Bank (Acc Number: 551436367)
Call Account
119
6.22
24,270
(4,560)
19,710
Standard Bank Investment Account (Acc
Number:481496)
Three
Investment
19 December 2014
110
6.10
18,749
(6,447)
12,301
Standard Bank Investment Account (Acc Number:
480045)
Three
Investment
13 January 2015
257
6.03
21,912
61
21,973
Absa Bank- Investment New 2 (Acc
Number:39256689)
Three
Investment 2
26 January 2015
14
6.05
21,159
59
21,218
Absa Bank- Investment New 1 (Acc Number:
38875655)
Three
Investment 1
13 January 2015
44
6.05
19,043
53
19,096
Nedbank - Three- Month Deposit (Acc Number:
03/7881544007/000095)
Three
3 Month
21 May 2015
137
6.65
13,823
43
13,866
120
6.36
17,546
52
17,598
6.52
24,304
(31)
24,273
6.05
30,845
86
30,932
5.50
28,803
(11,694)
17,110
Investec - Corporate Money Market Account (Acc
Number: (462097) 1008645)
Nedgroup Money Market (1452 027 900 - 8319631)
ABSA Bank - Fixed Deposit (Acc Number:
5060094072900553 - 38986395FDE)
Money Market
Money Market
CTICC East Security
19 January 2015
ABSA Bank - CTICC East - Call Deposit (Acc Number:
4083941322)
Investment
Nedbank - CTICC East - (Acc Number: 1766000029)
Investment
6.05
40,110
112
40,222
ABSA - CTICC East - Money Market - (Acc Number:
9295637051)
Investment
6.30
21,560
63
21,623
Investec - CTICC East - Corp Money Market (Acc
Number: 62145760379)
Investment
6.49
36,223
107
36,329
Nedgroup - CTICC East -Money Market (Acc Number:
8330497)
Investment
6.60
34,217
103
34,321
Nedgroup - CTICC East - Corp Money Market (Acc
Number: 8330496)
Investment
6.45
22,689
68
22,757
StanlibCTICC East - Money Market (Acc Number:
000402184-552166459)
Investment
6.40
30,082
88
30,170
ABSA Bank - CTICC Esat - Fixed Deposit - (Guarantee)
(Acc Number: 43939765 FDE)
Total investm ents
57
CTICC East Guarantee
19 January 2015
12 December 2016
8.00
861
120,158
439,528
(27,671)
532,015
Annexure A: In-year report (December 2014)
Table SF6 Entity Board member allowances & staff benefits
2013/14
Summary of Employee and Board
Member remuneration
Current Year 2014/15
Audited
Original
Adjusted
YearTD
YearTD
Outcome
Budget
Budget
actual
budget
YTD variance
YTD
Full Year
variance
Forecast
%
R thousands
Remuneration
Board Members of Entities
Basic Salaries
Sub Total - Board Members of Entities
468
289
–
183
332
(149)
-44.9%
468
289
–
183
332
(149)
-44.9%
% increase
-38.2%
850
850
81.6%
Senior Managers of Entities
Basic Salaries
Sub Total - Senior Managers of Entities
4,850
5,543
–
2,900
2,900
–
4,850
5,543
–
2,900
2,900
–
% increase
6,057
6,057
14.3%
24.9%
Other Staff of Entities
Basic Salaries
Sub Total - Other Staff of Entities
36,358
38,782
–
18,793
19,103
(309)
-1.6%
36,358
38,782
–
18,793
19,103
(309)
-1.6%
% increase
Total Municipal Entities remuneration
Unpaid salary, allowances & benefits in
arrears
58
6.7%
41,676
–
40,754
40,754
12.1%
44,613
–
–
–
21,876
–
22,334
–
(458)
-2.1%
–
-
47,661
-
Annexure A: In-year report (December 2014)
MUNICIPAL MANAGER'S QUALITY CERTIFICATION
I, Achmat Ebrahim, the municipal manager of City of Cape Town, hereby certify that the
monthly budget statement for the month of December 2014 has been prepared in
accordance with the Municipal Finance Management Act and regulations made under the
Act.
Print name ------------------------------------------------------------------Municipal Manager of City of Cape Town (CPT)
Signature -----------------------------
59
Date ------------------------------------