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Greater Kokstad

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Greater Kokstad + - Greater Kokstad B2 local municipality in Harry Gwala, KwaZulu-Natal Population: 65 981 Size: 2 682.6 km² Density: 24.6 / km² Leaflet | Map data © OpenStreetMap contributors, CC-BY-SA Contacts Last updated October 2020 Mayor/Executive Mayor 039 797 6600 Mr B.M. Mtolo Email municipality 039 797 6600 http://www.kokstad.org.za [email protected] 75 Secretary of Mayor/Executive Mayor Hope Street Kokstad Ms Z. Mahonya 4700 039 797 6600 [email protected] Municipal Manager Mr Sipho Raynold Zwane 039 797 6603 [email protected] Secretary of Municipal Manager Ms Zizipho Vendle 039 797 6601 [email protected] Deputy Mayor/Executive Mayor Ms K. Walker 039 797 6605 [email protected] Secretary of Deputy Mayor/Executive Mayor Ms Z. Mahonya 039 797 6605 [email protected] Chief Financial O{cer Mr T.L.Mketsu 039 797 6613 [email protected] Secretary of Financial Manager Ms Z. Van Der Merwe 039 797 6681 [email protected] Financial Performance Audit Outcomes 2018-2019 2017-2018 2016-2017 2015-2016 Unquali}ed - Emphasis of Unquali}ed - Emphasis of Unquali}ed - Emphasis of Unquali}ed - Emphasis of Matter items Matter items Matter items Matter items Read report Read report Read report Read report What do dizerent audit outcomes mean? Unquali}ed Opinion Unquali}ed Opinion No Findings Emphasis of Matter Items Same as an Unquali}ed Opinion with no }ndings, but the Same as an Unquali}ed Opinion with no }ndings, but the Auditor-General wants to bring something particular to the Auditor-General wants to bring something particular to the attention of the reader. attention of the reader. Quali}ed Opinion Adverse Opinion The Auditor-General expresses reservations about the fair This is expressed when the auditor concludes that the annual presentation of the }nancial statements. There is some }nancial statements do not present the municipality’s }nancial departure from the Generally Recognised Accounting Practices position, results of operations and cash ~ows in line with (GRAP) but is not su{ciently serious as to warrant an adverse Generally Recognised Accounting Practices (GRAP). opinion or disclaimer of opinion. Disclaimer of Opinion An Outstanding Opinion The Auditor-General does not have all of the underlying documentation needed to determine an opinion. For example, Means that the Auditor General raised queries with the the lack of underlying documentation and the amounts in municipality and therefore has not submitted another opinion. question may be so great so that it is impossible to give any opinion on all. Cash Balance 2018-2019 R116 071 263 Cash balance at the end of the }nancial year. R120m About this indicator R100m R80m A municipality's cash balance refers to the money it has in the bank that it can access easily. If a R60m municipality's bank account is in overdraft it has a negative cash balance. Negative cash balances R40m are a sign of serious }nancial management problems. A municipality should have enough cash R20m on hand from month to month so that it can pay salaries, suppliers and so on. R 0 2015-2016 2016-2017 2017-2018 2018-2019 Show average for similar municipalities in KwaZulu-Natal or nationally ▶ How is performance measured? Good Positive balance Bad Negative balance Show calculation Reference: State of Local Government Finances Formula: = Cash available at year end = [Cash Flow] item code 4200, Audited Actual Cash Coverage 2018-2019 4.1 months Months of operating expenses can be paid for with the cash available. 5 4 About this indicator 3 Cash coverage measures the length of time, in months, that a municipality could manage to pay 2 for its day-to-day expenses using just its cash reserves. So, if a municipality had to rely on its cash reserves to pay all short-term bills, how long 1 could it last? Ideally, a municipality should have at least three months' of cash cover. 0 2015-2016 2016-2017 2017-2018 2018-2019 Show average for similar municipalities in KwaZulu-Natal or nationally ▶ How is performance measured? Good > 3 months Average 1-3 months Bad < 1 month Show calculation Reference: State of Local Government Finances Formula: = Cash available at year end / Operating Expenditure per month = [Cash Flow] item code 4200, Audited Actual / ( [Income & Expenditure] item code 4600, Adjusted Budget / 12 ) Spending of Operating Budget 2018-2019 14.8% underspent Dizerence between budgeted operating 0% expenditure and what was actually spent. -5% About this indicator This indicator is about how much more a -10% municipalty spent on its operating expenses, than was planned and budgeted for. It is important that a municipality controls its day-to-day expenses in -15% order to avoid cash shortages. If a municipality sigi}cantly overspends its operating budget this is a sign of poor operating controls or something -20% more sinister. 2015-2016 2016-2017 2017-2018 2018-2019 Overspending by up to 5 percent is usually condoned; overspending in excess of 15 percent is Show average for similar municipalities in KwaZulu-Natal or nationally a sign of high risk. ▶ How is performance measured? Good 0% - 5% Average 5% - 15% Bad > 15% Show calculation Reference: Over and under spending reports to parliament Formula: = ((Actual Operating Expenditure - Budget Operating Expenditure) / Budgeted Operating Expenditure) * 100 = ( ( [Income & Expenditure] item code 4600, Audited Actual - [Income & Expenditure] item code 4600, Adjusted Budget ) / [Income & Expenditure] item code 4600, Adjusted Budget ) * 100 Spending of Capital Budget 2018-2019 31.0% underspent Dizerence between budgeted capital expenditure and what was actually spent. 0% 0% About this indicator -10% Capital spending includes spending on infrastructure projects like new water pipes or -20% building a library. Underspending on a capital budget can lead to an under-delivery of basic services. This indicator looks at the percentage by -30% which actual spending falls short of the budget for capital expenses. Persistent underspending may be due to underresourced municipalities which -40% cannot manage large projects on time. 2015-2016 2016-2017 2017-2018 2018-2019 Municipalities should aim to spend at least 95 percent of their capital budgets. Failure to spend even 85 percent is a clear warning sign. Show average for similar municipalities in KwaZulu-Natal or nationally ▶ How is performance measured? Good 0% - 5% Average 5% - 15% Bad > 15% Show calculation Reference: Over and under spending reports to parliament Formula: = ((Actual Capital Expenditure - Budgeted Capital Expenditure) / Budgeted Capital Expenditure) * 100 = ( ( [Capital] item code 4100, Audited Actual - [Capital] item code 4100, Adjusted Budget ) / [Capital] item code 4100, Adjusted Budget ) * 100 Spending on Capital Projects 2019-2020 About this indicator Project description Budget The capital budget of a municipality consists of Social Housing: Housing Projects human settlement R14 534 384 the capital projects that the municipality plans to do for the next three years arranged under the various functions of the municipal budget. Capital Indoor Facilities: Gym Payne Sports Complex R13 900 000 projects can be road upgrades, water distribution, community parks etc, linked to the relevant municipal function. Power Plants: Bulk infrastructure −R27 143 313 Land}ll Sites: New Land}ll Site. R3 736 137 ▶ Roads: Shayamoya Taxi Route 3 R333 624 Showing 5 of 37 See more for this municipality Spending on Repairs and Maintenance 2018-2019 1.4% Spending on Repairs and Maintenance as a percentage of Property, Plant and Equipment. 2% About this indicator 1.5% Infrastructure must be maintained so that service delivery is not azected. This indicator looks at how 1% much money was budgeted for repairs and maintenance, as a percentage of total }xed assets (property, plant and equipment). For every R10 0.5% spent on building/replacing infrastructure, R0.80 should be spent every year on repairs and 0% maintenance. 2015-2016 2016-2017 2017-2018 2018-2019 This translates into a Repairs and Maintenance budget that should be 8 percent of the value of Show average for similar municipalities in KwaZulu-Natal or nationally property, plant and equipment. ▶ How is performance measured? Good > 8% Bad < 8% Show calculation Reference: Circular 71 Formula: = (Repairs and maintenance expenditure / (Property, Plant and Equipment + Investment Property)) * 100 = ( [Capital] item code 4100, Audited Actual / ( [Balance Sheet] item code 1300, Audited Actual + [Balance Sheet] item code 1401, Audited Actual ) ) * 100 Fruitless and Wasteful Expenditure 2018-2019 66.3% Unauthorised, Irregular, Fruitless and Wasteful Expenditure as a percentage of operating expenditure. About this indicator Unauthorised expenditure means any spending that was not budgeted for or that is unrelated to the municpal department's function. An example is using municipal funds to pay for unbudgeted projects. Irregular expenditure is spending that goes against the relevant legislation, municipal policies or by-laws. An example is awarding a contract that did not go through tender co ac a d d o go oug e de procedures. Fruitless and wasteful expenditure concerns spending which was made in vain and 60% would have been avoided had reasonable care 50% been exercised. An example of such expenditure would include paying a deposit for a venue and 40% not using it and losing the deposit. 30% 20% 10%
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