LOCAL GOVERNMENT CONSOLIDATED MFMA REPORT
FOURTH QUARTER SECTION 71(7)
2020/2021 FINANCIAL YEAR
AS AT 30 JUNE 2021
1 of 33 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 31 DECEMBER 2020 TABLE OF CONTENT
A. Acronym…………………………………………………………………………………….3
B. Introduction…………………………………………………………………………………4
C. MEC - Key Notes ………………………………………………………………………….5
D. Municipal Risk Position Statement………………………………………………………7
E. Summary: State of EC Municipal Finances.……………………………………………8
F. In-Year Reporting: Compliance Monitoring….……………………….….……….……16
G. Overview on the Districts Performance a. Operating Revenue & Expenditure…………………….………………….…….....17 b. Capital Expenditure…………………….……………………………………..….….20 c. Cash Flow…………...………………………………………………….…….….…...21 d. Debtors……………………………………………………………….…...……….….21 e. Creditors…………………………………………………………….….……………..22 H. Progress on mSCOA implementation…………………………...……………………...23
I. Governance Provincial Overview…………………………………….……………...... 25
J. Covid-19 Reporting……………………………………………………………………….26
K. Procurement Status of Municipalities…………………………………………………...26
L. Conclusion……………………………………………………………………………..…..28
M. Recommendations…………………………………………………………………….….29
N. Annexures …………………………………………………………………………………30
Page 2 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 A. ACRONYMS 1 AWB Amatola Water Board 2 DWS Department of Water and Sanitation 3 ECAG Eastern Cape Auditor General 4 ECCOGTA Eastern Cape Cooperative Governance and Traditional Affairs 5 EC-SALGA Eastern Cape South African Local Government Association 6 GIZ German Agency for International Cooperation 7 IYM In Year Monitoring 8 LGD Local Government Database 9 MFMA Municipal Finance and Management Act 10 MPAC Municipal Public Accounts Committee 11 MRMCL Municipal Regulations on Minimum Competency 12 NMBM Nelson Mandela Bay Metro 13 NMD Notified Maximum Demand 14 NT National Treasury 15 PFMA Public Finance and Management Act 16 PT Provincial Treasury 17 SARS South African Revenue Services 18 UIF&W Unauthorised Irregular and Fruitless Expenditure
Page 3 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 B. INTRODUCTION 1. Section 71(7) of the Municipal Finance and Management Act (MFMA) requires the Provincial Treasury to consolidate the quarterly budget statements of all municipalities in the province. Section 71(7) further requires the Provincial Treasury to publish this report and tabling in the Provincial Legislature by no later than 45 days after the end of each quarter. 2. This takes into account the verification process undertaken by the National and Provincial Treasury with municipalities, a process taking longer than expected. For this reporting period, municipalities are to submit verified data to National Treasury no later than 31 July 2021. 3. This report forms part of the IYM, which enables provincial and national government to exercise oversight over municipalities and provide necessary support. National Treasury has institutionalised IYM for a number of years to produce monthly and quarterly reports, however, some municipalities still fall short of full compliance because of administrative and political leadership instability including unsatisfactory political oversight and governance. 4. The report provides an overview on the state of municipal finances; Serves as an early warning system to measure and detect municipalities in financial challenges and the need for intervention where necessary; Assists in promoting effective oversight mechanism, the appropriate fiscal discipline and managerial accountability, transparency on financial performance of municipalities; Enables PT to monitor and improve municipal performance; and Promoting greater effective political oversight.
5. PT uses the LGD of the National Treasury as the primary source for the data used in this report. Users of the report should take note that the quality of the report is compromised when municipalities fail to submit all the required reports. The quality of this report depends on the credibility of the information submitted and verified by the municipalities. 6. PT continues to provide support to all municipalities in the province on the implementation of the budget according to developed plans and when required. The IYM report is a management tool and further provides municipal councils with system to hold executive management to account. The IYM forms the basis for combined assurance process for different local government stakeholders to support in improving the quality of information for decision-making purposes. 7. This consolidated quarterly report relates to the fourth quarter of the 2020/21 municipal financial year. It should be noted that this is an unaudited state of municipal finances in the province in respect of the 2020/21 financial year. The PT publishes the quarterly IYM as required by the legislative prescripts and presented to various provincial political and technical structures within the province.
Page 4 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B C. KEY NOTE 8. The performance of the municipalities takes into account the current unfavourable economic conditions and fiscal challenges exacerbated by the Covid-19 pandemic national disaster lockdown. The non-submission by the Nelson Mandela Bay Metropolitan Municipality’s 2020/21 original and adjustments budget data strings because of its financial systems challenges is an issue both National and Provincial Treasury are constantly working with the metro to find a solution. This resulted in the municipality’s total operating revenue, expenditure and capital expenditure understatement by R11.9 billion, R11.6 billion and R1.6 billion respectively. The non-reporting of actual results also grossly distorts the comparative analyses poorly affecting information credibility. On aggregate, municipal revenue billing and other generated revenue, amounts to R24 billion representing 89.7 per cent of their adjusted revenue budget of R26.8 billion compared to 62 per cent achieved for the same period in the previous year, showing a year on year (y/y) percentage improvement of 26.7 per cent. Employee related costs, on aggregate shows an unstable pattern with R8.5 billion spending reported for the period under review constituting 40 per cent of the total YTD operating expenditure. 9. Municipalities reported capital expenditure amounting to R6.6 billion representing 79.8 per cent of the adjusted capital budget of R8.2 billion, a significant y/y underperformance compared to R10.8 billion reported during the same period in 2019/20. 10. Short term financial obligations outstanding over 60 days payable to Eskom, Auditor General, Amatola Water and the Department of Water and Sanitation for the quarter under review shows an increase of R100 million from R2.1 billion in 2019/20 to R2.2 billion. Eskom arrears are escalating at an alarming rate and this threatens municipality’s ability to provide sustainable service delivery to communities. 11. The y/y comparatives shows that Municipalities reported a net increase in cash held of R12.3 billion for the period under review which is significantly higher compared to net cash increase of R8.5 billion in the previous year. 12. Compliance to the Municipal Regulations on Minimum Competency Levels remains stable with an average compliance of 92 per cent of Municipal Managers and 95 per cent of Chief Financial Officers having attained the competency level out of 39 municipalities. 13. All municipalities have established the Municipal Disciplinary Boards with exception of Amathole District municipality Sarah Baartman District Municipality and Kou-Kamma local municipalities. Amathole District Municipality Council approved a Financial Misconduct Policy in 2020 after which the policy was workshopped to Councillors and officials. The municipality has also advertised for DC Board members in 2021 and the process has not yet been finalized. Sarah Baartman District Municipality had initially established the DC Board as an ad-hoc committee. Municipalities that established have shown functionality of the DC Boards; however, implementation of the recommendations by municipal Councils remains a challenge. The MPAC and DC Boards plays a joint significant role to limit the Unauthorised, Irregular, Fruitless and Wasteful expenditure, which is a provincial concern. It is however important to note that PT, EC-CoGTA, SALGA and GIZ provides support to municipalities to address effective functionality of the MPAC and DC Boards.
Page 5 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B 14. The implementation of the mSCOA reform remains a challenge, however, there are gradual improvements noted during Provincial Treasury and system vendor’s regular interactions with municipalities. 15. On aggregate, municipal debtors book continues to increase at an alarming rate. The y/y comparative shows that consumer debtors increased to R21.8 billion from R16.7 billion in (2019/20) Organs of state debt towards municipalities increased by approximately R100 million in 2020/21 from R1.1 billion reported in the same period in 2019/20. Organs of state debt forums interact quarterly to remedy the situation between national and provincial departments with municipalities. 16. PT and EC-CoGTA monitoring of infrastructure procurement plans for the quarter under review identified slow procurement process in six (6) municipalities where seven (7) catalytic projects were selected with capital budget of R740.6 million. The SCM procurement plan’s lag has potential to result in the province loosing further allocated funds, and needs urgent attention. Provincial Treasury working with the Provincial Joint Technical Task Team monitors the readiness of municipalities on procurement for these projects. 17. In total, ten (10) municipalities reported negative cash flow positions in the quarter under review compared to the six (6) reported in 2019/20. PT supports municipalities with prioritisation and improvement of operating expenditure structure to promote expenditure to be within collectable cash from billings. This shall be a milestone improvement as we continue to institutionalise prudent financial management through capacity building supported by the National Treasury’s Municipal Financial Improvement Program that provides further support to identified municipalities that have reflected capacity challenges. This financial discipline of spending within parameters of cash received from consumers will have needed value creation across all levels of municipal Councils. 18. In conclusion: . We strive to attain financially sustainable municipalities compliant to MFMA reforms; . Attain overall prudent financial management as we envision a local government that is financially resilient to absorb future crisis for sustainable period drawing our experience from the unexpected challenges of economic contraction aggravated by the Covid-19 pandemic; and . This report is public and submitted to legislature on a regular basis.
Page 6 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B D. MUNICIPAL RISK POSITION STATEMENT 19. Municipal financial sustainability remains vulnerable and this requires councils to play vigilant oversight to contain non-service delivery (non-essential) spending. The management of cash and bank in municipalities remains a thorny issue resulting in some failing to honour their financial obligations. We continue to observe challenges with the reporting to the extent that municipalities ended the 2020/21 financial year with a consolidated balance of R15.1 billion against an adjusted projection of R2 billion. This emanates from the fact that municipalities are struggling to properly report on cash flow transactions and this has given rise to the overstating of cash flow transactions despite the guidance that was given to municipalities through MSCOA circular 10. As the PT, we continue to monitor this area closely. 20. Already, there is a risk that some municipalities might lose grants due to under spending when the rollover process takes place in September 2021. The unspent conditional grants at 30 June 2021 (unaudited) stood at just over R1 billion.
21. Financial sustainability and the management of net working capital remains crucial focus areas during this economic contraction period;
22. Doing business at subnational and regional level remain under constant constraints triggered by poor performance of economic industries and in particular the agricultural and construction sectors;
23. Lack of political leadership to implement consequence management to improve overall institutional municipal good governance;
24. Information is relevant and useful for internal and external stakeholders when it is free of material errors, which in this case, the data submitted by municipalities fails to pass the credibility and completeness. This would lead to incorrect conclusion and decision making;
25. Financial obligations risk position on statutory payments and subsequent litigations and loss of assets through recovery of services is implanted in poor disclosure of contractual obligations of a latent nature;
26. The next local government elections during the period of uncertainty may pose material operational risk on business continuity, sustainability and in particular, the SMME’s push for policy direction that may fail legal tests.
27. The ECPT continues to monitor the potential risks to provide needed support in affected municipalities jointly with relevant stakeholders.
N.B Page 7 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 E. SUMMARY ON THE STATE OF EC MUNICIPAL FINANCES KEY AGGREGATE TRENDS 28. Table 1 below reflects the 2020/21 aggregated performance of the province with notable year- on-year (y/y) decrease of R3.6 billion million on operating revenue compared to R27.7 billion reported for the corresponding period of 2019/20. The quarter-on-qurter (q/q) revenue decreased by 38.3 per cent to R3.3 billion compared to R5.4 billion reported in 2019/20. The q/q results reflects R5.8 billion operating expenditure with a significant decrease of 7.4 per cent compared to the R6.2 billion in the corresponding quarter of 2019/20 financial year.
AGGREGRATED INFORMATION FOR EASTERN CAPE STATEMENT OF CAPITAL AND OPERATING EXPENDITURE FOR THE 4TH QUARTER ENDED 30 JUNE 2021 (PRELIMINARY RESULTS)
Table 1: Operating Revenue and Expenditure 2020/21 2019/20 Budget Fourth Quarter Year to Date Fourth Quarter Q4 of 2019/20 Main Adjusted Actual 4th Q as % of Actual Total Actual Total to Q4 of appropriation Budget Expenditure adjusted Expenditure Expenditure as Expenditure Expenditure as 2020/21 budget % of adjusted % of adjusted budget budget R thousands Operating Revenue and Expenditure Operating Revenue 24 917 855 26 818 109 3 320 683 12.4% 24 047 068 89.7% 5 384 240 63.1% (38.3%) Operating Expenditure 24 926 069 25 767 345 5 770 802 22.4% 21 204 793 82.3% 6 235 141 63.6% (7.4%)
Surplus/(Deficit) (8 214) 1 050 764 (2 450 119) 2 842 275 (850 900) Transfers and subsidies - capital (monetary allocations) (Nat / Prov and Dist) 5 394 877 5 836 831 1 247 603 21.4% 3 709 580 63.6% 930 780 48.4% 34.0% Transfers and subsidies - capital (monetary alloc)(Departm Agencies,HH,PE,PC,..) 1 231 1 231 25 293 2 054.7% 82 725 6 720.1% 21 181 20.4% 19.4% Transfers and subsidies - capital (in-kind - all) - 7 012 - - 548 7.8% - - - Surplus/(Deficit) after capital transfers and 5 387 894 6 895 837 (1 177 223) 6 635 128 101 061 contributions Taxation ------Surplus/(Deficit) after taxation 5 387 894 6 895 837 (1 177 223) 6 635 128 101 061 Attributable to minorities ------Surplus/(Deficit) attributable to municipality 5 387 894 6 895 837 (1 177 223) 6 635 128 101 061 Share of surplus/ (deficit) of associate ------Surplus/(Deficit) for the year 5 387 894 6 895 837 (1 177 223) 6 635 128 101 061 Source: NT Local Government Database
29. The current year’s operating surplus before capital transfers amounted to R2.8 billion and reflects a significant reduction from the R5.1 billion surplus reported for the fourth quarter of 2019/20 financial year. The impact of non-reporting by the Nelson Mandela Bay Metropolitan Municipality continues to negatively impact on the overall performace of municipalities for the quarter under review.
Capital Expenditure 30. The year-to-date aggregate capital expenditure amounts to R6.6 billion of the adjusted capital budget of R8.2 billion. This represents a R1.9 billion increase from the R4.7 billion reported as at end of March 2021. The y/y capital expenditure shows municipalities have spent 80 per cent of the aggregated adjusted capital budget compared to 84 per cent reported for the same period of the 2019/20 financial year. It is also necessary to remind the reader that this report is understated as it does not take into account the reports that are due from the Nelson Mandela Bay Metro Municipality.
31. It is noted with concern that the reported capital expenditure does not reconcile with the funding sources recognised to fund capital expenditure. Municipalities reported an amount of R6.8 billion used to fund the capital expenditure of R6.6 billion. The capital expenditure report will not be a true reflection because of misaligned funding source and expenditure.
Page 8 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B Infrastructure Conditional Grants Spending 32. Table 2 below reflects the aggregated infrastructure expenditure on direct and indirect infrastructure conditional grants as at 30 June 2021. The figures below are from sector department’s verification on conditional grant performance where Provincial Treasury and transferring officers meet on a regular basis. The results differ to what municipalities submit to the National Treasury (NT) database due to the inclusion of indirect grants.
Table 2: Aggregated Infrastructure Conditional Grant Expenditure - 30 June 2021
Grant Type 2020/21 Main Total Revised Expenditure end June 2021 Balance Budget Adjustment Allocation R'000
Municipal Infrastructure Grant (MIG) 3 025 069 158 751 2 866 318 2 616 478 91% 249 840
Expanded Public Works Programme Integrated Grant (Municipality) 111 953 0 111 953 98 972 88% 12 981
Integrated National Electrification Programme Grant (Municipal) 313 359 83 284 230 075 208 471 91% 21 604
Energy Efficiency and Demand Side Management (Municipal) Grant 27 994 2 594 25 400 13 340 53% 12 060
Regional Bulk Infrastructure Grant (RBIG) Schedule 5B 477 011 57 748 419 263 242 851 58% 176 412
Regional Bulk Infrastructure Grant (RBIG) Schedule 6B 377 366 0 377 366 202 267 54% 175 099
Water Services Infrastructure Grant (Schedule 5B) 486 950 33 000 453 950 320 821 71% 133 129
Public Transport Network Grant (PTNG) 322 507 33 188 355 695 216 016 61% 139 679
Urban Settlement Development Grant (USDG) 1 590 840 162 347 1 428 493 1 283 724 90% 144 769
Neighbourhood Development Partnership Grant (NDPG) S5B 53 000 18 550 34 450 25 000 73% 9 450
Total 6 786 049 483 086 6 302 963 5 227 940 83% 1 075 023 Source: Sector Departments
33. Municipalities in the province received allocations totalling R6.3 billion for infrastructure related conditional grants for the 2020/21 financial year with R6.3 billion transferred to date.
34. As at 30 June 2021, spending of R5.2 billion across all conditional grants, representing 83 per cent of the total allocation was reported. This represents 26 percent increase from the 57 per cent that was reported as at end of March 2021. The expenditure on conditional grants reported for the same quarter of 2019/20 amounted to R4.9 billion that was spent by municipalities in the province. This represents y/y increase of approximately R300 million expenditure on conditional infrastructure expenditure compared to the same period of the last financial year.
35. Spending amounting to R208.5 million (R179.6 million in the last quarter) or 91 per cent was reported as at 30 June 2021 on the Integrated National Electrification Programme Grant (INEP) while R13.3 million (R4.2 million in the last quarter) expenditure was reported on the Energy Efficiency and Demand Side Management Grant (EEDG) representing 53 per cent of the total allocation. These two grants are allocated to address electricity backlogs particularly in the rural areas of the province. INEP performance has regressed when compared to the corresponding period in 2019/20 where R273.6 million was spent during the fourth quarter. The province could potentially lose R12 million if the rollover for this unspent portion is not approved. .
Page 9 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B 36. An amount of just over R2.6 billion or 91 per cent of the Municipal Infrastructure Grant (MIG) has been spent as at 30 June 2021. This is a marginal increase of R100 million from R2.5 billion reported for the previous quarter of the current financial year. It should also be highlighted that at the end of the fourth quarter of last year, municipalities had reported R2.3 billion expenditure on conditional grants and the y/y improvement is noted. However, the biggest challenge for our municipalities, particularly on MIG is the potential loss of R249.8 million if the rollover application is not approved. The risk is with municipalities that have not spent this grant this year might lose the funding particularly if such municipalities have previously applied for this grant in the past to financial years.
37. The Provincial Joint Technical Task Team (PJT3) sits on a quarterly basis to consider expenditure on conditional grants by municipalities. This committee consists of the OTP, COGTA, SALGA, DOE DWS, MISA and the PT. Where municipalities are experiencing challenges with spending, such municipalities are invited, engaged and supported by technical teams to improve spending. This committee will now oversee the rollover process for the unspent conditional grants during September 2021.
38. Table 2.1 below presents the 30 June 2021 preliminary direct conditional grants only as reported by municipalities and drawn from the database and cash in the bank results per local municipality’s submissions to Provincial Treasury.
Table 2.1: Conditional Grants, Cash-Bank and Investments Quarter Ending 30 June 2020 Direct Infrastructure Conditional Grants - DoRA Bank Balances and Investments as at 30 June Cond Grant (Over) / Under Cash and Investments Available 2020 2021 Spending as at 30 June'20 for: Main Allocation Adjusted YTD Actual Exp Bank Recon Short Term Long Term Estimated Estimated Unspent Operations allocation balance as at Invest - 30 Invest - 30 Cond Grants Cond Grants - Conditional After Unspent R thousands Code 30 June 2021 June 2021 June 21 (Bank (Over) Spent Under Spent Grants Cond Grant (Bank Statement) Total Alfred Nzo 867 879 816 795 628 957 22 753 610 297 - (6 317) 194 155 633 049 432 578 Total Amathole 1 014 146 1 017 383 662 284 263 578 198 670 5 138 - 355 099 462 248 107 149 Total Chris Hani 937 978 955 422 873 841 50 641 355 443 572 (856) 82 437 406 085 322 792 Total Joe Gqabi 387 434 379 330 316 840 18 133 546 748 316 - 62 490 564 881 502 391 Total O .R. Tambo 1 171 692 1 149 287 761 217 135 536 1 121 261 - (742) 388 812 1 256 797 867 243 Total Sarah Baartman 273 644 273 644 208 342 55 381 175 074 614 - 65 302 230 455 165 153 Sub-Total Excl Metros 4 652 773 4 591 861 3 451 481 546 022 3 007 493 6 640 (7 915) 1 148 295 3 553 516 2 397 306
Buffalo City BUF 815 934 740 425 336 873 3 501 713 - - - 403 552 3 501 713 3 098 161 Nelson Mandela Bay NMA 1 265 408 1 117 653 326 060 2 411 147 1 117 653 2 737 206 1 619 553 Sub-Total Metros 2 081 342 1 858 078 336 873 3 827 773 2 411 147 - - 1 521 205 6 238 919 4 717 714
Total Eastern Cape 6 734 115 6 449 939 3 788 355 4 373 795 5 418 640 6 640 (7 915) 2 669 499 9 792 436 7 115 020 Source: National Treasury Net Under Spent 2 661 584
There were four municipalities with negative cash after deduction of unspent conditional grants as shown in Annexure E.
Cash flow 39. Table 3 below reflects the consolidated cash position of municipalities in the province for the quarter under review, a balance of approximately R15.1 billion as at 30 June 2021. The database results below differ to what municipalities submitted as confirmation of cash in the bank account and short-term investment cash available to both NT and Provincial Treasury (PT). This shows further inconsistent reporting by municipalities when compared to Table 2.1 above due to incorrect use of the municipal standard chart of accounts (mSCOA) data strings to populate the cash flows tables in Schedules A, B and C of the Municipal Budget Reporting Regulations (MBRR).
Page 10 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B To assist municipalities, NT has issued mSCOA circulars no. 10 and 11, to provide further guidance to municipalities on the correct use of the municipal standard chart of accounts (mSCOA) data strings to populate the cash flows tables in Schedules A, B and C of the Municipal Budget Reporting Regulations (MBRR). The cash balances per district as at 30 June 2021 are reflected in Table 3 below.
Table 3: Cash Receipts and Payments 2020/21 2019/20 Budget Fourth Quarter Year to Date Fourth Quarter Q4 of 2019/20 Main Adjusted Actual 4th Q as % of Actual Total Actual Total to Q4 of appropriation Budget Expenditure adjusted Expenditure Expenditure Expenditure Expenditure 2020/21 budget as % of as % of R thousands adjusted adjusted budget budget Cash Flow from Operating Activities Receipts 22 373 940 17 233 611 4 474 524 26.0% 27 917 121 162.0% 1 094 588 43.4% 308.8% Property rates 2 727 384 1 272 056 624 148 49.1% 3 025 917 237.9% 54 587 12.0% 1 043.4% Service charges 6 164 443 2 690 610 1 848 846 68.7% 5 343 545 198.6% 224 120 20.8% 724.9% Other revenue 1 389 141 1 214 789 1 512 739 124.5% 9 098 638 749.0% 357 272 35.2% 323.4% Transfers and Subsidies - Operational 7 977 050 8 149 530 399 486 4.9% 6 455 590 79.2% 485 433 74.6% (17.7% ) Transfers and Subsidies - Capital 3 889 602 3 666 349 87 001 2.4% 3 983 904 108.7% (28 249) 56.6% (408.0% ) Interest 226 320 240 277 2 303 1.0% 9 528 4.0% 1 425 - 61.7% Dividends ------Payments (11 858 516) (9 543 634) (3 300 480) 34.6% (11 944 821) 125.2% 323 357 13.7% (1 120.7%) Suppliers and employees (11 632 017) (9 914 824) (3 337 227) 33.7% (12 475 757) 125.8% 323 620 13.7% (1 131.2% ) Finance charges (63 313) (32 535) (5 965) 18.3% (29 856) 91.8% - - (100.0% ) Transfers and grants (163 187) 403 725 42 712 10.6% 560 792 138.9% (263) (2.3% ) (16 331.9% ) Net Cash from/(used) Operating Activities 10 515 424 7 689 977 1 174 044 15.3% 15 972 300 207.7% 1 417 945 31.9% (17.2%)
Cash Flow from Investing Activities Receipts 99 855 107 968 9 041 8.4% 4 494 4.2% (59 727) .2% (115.1%) Proceeds on disposal of PPE 98 879 99 461 13 548 13.6% 8 919 9.0% 0 - 8 362 927.2% Decrease (Increase) in non-current debtors (not used) ------Decrease (increase) in non-current receivables 8 341 8 591 (261) (3.0% ) (235) (2.7% ) (60 458) - (99.6% ) Decrease (increase) in non-current investments (7 364) (84) (4 246) 5 060.7% (4 190) 4 993.7% 731 .2% (680.8% ) Payments (4 040 327) (3 314 333) (1 474 851) 44.5% (3 607 675) 108.9% (154 316) 38.0% 855.7% Capital assets (4 040 327) (3 314 333) (1 474 851) 44.5% (3 607 675) 108.9% (154 316) 38.0% 855.7% Net Cash from/(used) Investing Activities (3 940 472) (3 206 365) (1 465 810) 45.7% (3 603 182) 112.4% (214 043) 46.0% 584.8% Cash Flow from Financing Activities Receipts 312 337 58 318 19 959 34.2% 10 915 18.7% 159 170 2.4% (87.5%) Short term loans ------Borrowing long term/refinancing 314 051 72 501 ------Increase (decrease) in consumer deposits (1 714) (14 184) 19 959 (140.7% ) 10 915 (77.0% ) 159 170 5.1% (87.5% ) Payments (56 352) (60 278) (23 306) 38.7% (55 701) 92.4% 8 876 - (362.6%) Repayment of borrowing (56 352) (60 278) (23 306) 38.7% (55 701) 92.4% 8 876 - (362.6% ) Net Cash from/(used) Financing Activities 255 985 (1 960) (3 347) 170.8% (44 786) 2 284.9% 168 046 6.9% (102.0%)
Net Increase/(Decrease) in cash held 6 830 937 4 481 652 (295 114) (6.6%) 12 324 332 275.0% 1 371 948 30.4% (121.5%) Cash/cash equivalents at the year begin: (2 568 862) (2 401 664) 15 268 966 (635.8% ) 2 508 013 (104.4% ) 9 845 594 94.7% 55.1% Cash/cash equivalents at the year end: 4 262 075 2 079 988 15 131 865 727.5% 15 131 865 727.5% 11 273 793 39.3%34.2% Source: NT Local Government Database
40. The year to date total cash generated from operating activities amounted to R15.3 billion compared to negative R2 billion reported for the fourth quarter of the 2019/20 financial year. For the majority of 2019/20, municipalities had serious challenges with reporting of cash flow, a situation that has not really improved in the current financial year. Net cash from investing activities appears to be understated as it does not reconcile with expenditures reported for both the capital expenditure and that of conditional grants. Similarly, net cash from operating activities also appears to be understated.
41. Overall, net cash generated from operating activities has materially increased from the consolidated report submitted in respect of the 2019/20 financial year. About six (6) municipalities in the province reported negative cash balances as at 30 June 2021. The affected municipalities are in Table 3.1 below.
Page 11 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B Table 3.1 Municipalities That Reported Negative Cash Balances - 30 June 2021
No Municipality Cash Balance - 30 June 2021
1 Ntabankulu LM (41 514) 2 Amahlathi LM (122) 3 Raymond Mhlaba LM (856) 4 Engcobo LM (54 545) 5 Ngquza Hills LM (33 043) 6 Nyandeni LM (128 556) 7 Dr Beyers Naude LM (273 345) 8 Koukamma LM (24 191) 9 Makana LM (28 049) 10 Ndlambe LM (43 828) Source: NT LG Database
The negative cash balances reported for the quarter by these municipalities is indicative of the mSCOA cash flow reporting challenges due to incorrect segment use. PT continues to closely monitor and assist these municipalities in correcting the classification of financial transactions and the use of the correct segments.
Creditors 42. Table 4 below reflects the age analysis of creditors as at 30 June 2021 reported by municipalities. The EC municipalities owes a total amount of R5.7 billion (R3.9 billion for the previous quarter) to creditors as at the end of June 2021. This represents a y/y increase of R2.9 billion when compared to R2.7 billion for the fourth quarter of the 2019/20 financial year. In terms section 65(2)(e) of the MFMA, the Accounting Officer of a municipality must take all reasonable steps to ensure that all money owing by the municipality is paid within 30 days of receiving the relevant invoice. Failure to adhere to this requirement is not only a direct breach of the MFMA, but also exposes municipalities to interest and penalties as well as litigation.
Table 4: Consolidated Creditors Age Analysis as at 30 June 2021
0 - 30 Days 31 - 60 Days 61 - 90 Days Over 90 Days Total
R thousands Amount % Amount % Amount % Amount % Amount % Bulk Electricity 829 637 53.0% 38 916 2.5% 34 410 2.2% 662 945 42.3% 1 565 908 27.5% Bulk Water 56 628 29.5% 28 016 14.6% 8 698 4.5% 98 730 51.4% 192 072 3.4% PAYE deductions 90 879 91.7% 1 753 1.8% 927 .9% 5 585 5.6% 99 144 1.7% VAT (output less input) 1 634 100.0% (16 662) (1 019.8% ) - - 16 662 1 019.8% 1 634 - Pensions / Retirement 37 066 60.3% 2 307 3.8% 2 201 3.6% 19 899 32.4% 61 472 1.1% Loan repayments 15 845 100.0% ------15 845 .3% Trade Creditors 877 686 28.0% 387 290 12.4% 41 116 1.3% 1 826 823 58.3% 3 132 915 55.1% Auditor-General (247) (.7% ) 1 430 4.0% 2 365 6.7% 32 016 90.0% 35 564 .6% Other 246 857 42.4% 206 - 1 062 .2% 334 029 57.4% 582 155 10.2% Total 2 155 984 37.9% 443 256 7.8% 90 779 1.6% 2 996 690 52.7% 5 686 710 100.0% Sourec: NT LG Database
Creditors amounting to R2.9 billion are outstanding for more than 90 days representing 52.7 per cent of the total creditors outstanding as at 30 June 2021. The top three (3) creditor’s categories are Trade creditors (R3.1 billion), Bulk electricity (R1.6 billion) and Other (R582.2 million).
There is no alignment between creditor’s balances reported by municipalities and the balances reported by other stakeholders such as Eskom, Water Boards and the Auditor General as required by section 41(2) of the MFMA.
Page 12 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B
Provincial Treasury, working with CoGTA and SALGA forms part of meetings with the AGSA and ESKOM to resolve payment failures by municipalities. Municipalities mostly enter into payment agreement with Eskom and AGSA while not considering and performing their affordability test resulting in breaching their repayment agreements. This has a negative impact on basic service delivery as ESKOM has disconnected electricity in some municipalities due to arrear debt owed by municipalities.
43. Table 4.1 below in summary depicts total outstanding debt owed by municipalities reported by major creditors amounting to R3.4 billion as at 30 June 2021. There is an increase of about R600 million from the outstanding balance of R2.8 billion reported during the last quarter ended 31 March 2021. Table 4.1 : Debt owed to Major Creditors - 30 June 2021
MAJOR CREDITORCURRENT30 DAYS60 DAYS90 DAYS120+ DAYSTOTAL
Amatola Water 31 089 59311 116 17612 746 60210 234 483205 916 601271 103 455 ESKOM 999 598 3984 976 66064 835 99654 276 4811 502 297 4142 625 984 948 Water and Sanitation 33 133 86666 569 455630 89512 684 130294 726 786407 745 132 Auditor General 1 349 7161 849 6804 403 35316 566 89137 207 01961 376 659 TOTAL 1 065 171 57384 511 97182 616 84593 761 9852 040 147 8203 366 210 194 Source: Section 41 Reports
Amatola Water Board reported outstanding debt of R271.1 million (R241.4 million in March 2021) as being owed by Eastern Cape municipalities with arrear debt amounting to R228.8 million or 84.2 per cent of total outstanding amount. The top owing municipality is Amathole District Municipality (R250.7 million) which has since signed a settlement agreement with Amatola Water Board for the old debt (30 June 2019) in April 2020 for repayments over a period of 48 months with Amathole Water Board. Due to the financial challenges besetting the Amathole District Municipality, no additional payments were made to Amatola Water Board.
According to Eskom’s section 41 report, the EC municipalities owe an amount of R2.6 billion as at the end of June 2021. This outstanding Eskom debt has increased by R100 million from the last quarterly report on municipalities.
The top six (6) local municipalities with the highest outstanding debt are Enoch Mgijima (R555 million), Walter Sisulu (R343.3 million), Raymond Mhlaba (R234.4 million), Inxuba Yethemba (R233.3 million), King Sabata Dalindyebo (R180.7 million) and Dr Beyers Naude (R180.8 million) with a combined account for R1.7 billion or 65 per cent of the total amount owed.
Amount owing to AGSA fees by municipalities is R61.4 million (R74.4 million for the last quarter) for the period ended 30 June 2021 showing a reduction of R13 million compared to the total debt owed at 31 March 2021. This debt is a concern for the PT and there are municipalities that have signed payment arrangements with the AGSA to try and reduce the debt further.
The Department of Water and Sanitation reported total outstanding debt amounting to R407.7 million and R294.7 million is outstanding for more than 120 days. The y/y growth amounts to
Page 13 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B approximately R6.2 million compared to R401.5 million as reported as at end of the fourth quarter of 2019/20.
Debtors 44. Table 5 below reflects total outstanding debtors amounting to R21.8 billion reported by municipalities for the quarter ended 30 June 2021. The outstanding municipal debt has reduced by approximately R300 million from R22.1 billion reported for the previous quarter ended 31 March 2021. This is approximately 1.3 per cent q/q decrease.
Of the total outstanding debt owed to municipalities, debtors older than 90 days’ amount to R18.4 billion or 84 per cent of the total outstanding debtors. This presents a long-term risk that municipalities will not be able to collect this debt.
Table 5 : Debtors age analysis Per Customer Group - 30 June 2021 Debtors Age Analysis By Customer 0 - 30 Days 31 - 60 Days 61 - 90 Days Over 90 Days Total Group Amount % Amount % Amount % Amount % Amount % Organs of State 142 144 1% 57 628 0% 58 579 0% 949 214 4% 1 207 565 6% Commercial 722 682 3% 157 281 1% 125 650 1% 3 162 345 14% 4 167 958 19% Households 1 031 842 5% 569 032 3% 534 582 2% 14 052 280 64% 16 187 736 74% Other 18 812 0% 5 664 0% 5 997 0% 228 825 1% 259 298 1% Total By Customer Group 1 915 480 9% 789 605 4% 724 8082.8%18 392 664 84% 21 822 557 100% Source : NT Local Government Database
Reported outstanding household (h/h) debt amounts to R16.2 billion and is the highest contributing customer group (74 per cent). Debt owed by commercial/business consumers amounted to R4.1 billion (19 per cent of total debt). Household debt was reported at R11.7 billion during quarter four of the last financial year and has shown a year-on-year increase of R4.4 billion or 37.6 per cent increase compared to the corresponding quarter of 2019/20. These two categories need to be the major focus areas for municipalities including interventions at political level through awareness campaigns to communities, as the survival of municipalities is dependent on payment for services rendered, particularly the h/h category. The Covid19 pandemic has put enormous strain on the economy of the country and this has resulted in job losses across all sectors of the economy. As a consequence of this, municipal revenue collection capabilities have also suffered as more households lose income.
In terms of outstanding organs of state debt, monthly debt meetings take place with municipalities to conduct verification of government debtors’ accounts, as well as conducting reconciliations to resolve any disputes. Furthermore, quarterly meetings continue at a district level to discuss any unresolved issues with escalation to the Provincial Debt Steering Committee (SALGA, Provincial Treasury and Provincial CoGTA). These engagements assist municipalities to recover outstanding debt, however the lack of reconciliations by municipalities and non-availability of key personnel from departments and municipalities sometimes hinder progress in the sessions.
Page 14 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B Observations 45. Nelson Mandela Bay metropolitan Municipality (NMBM) could not submit the quarterly signoff schedules due to the municipality having submitted data strings containing errors for the first three months of the financial year and has been unable to submit monthly data strings since. This non-reporting has continued in the fourth quarter and presents challenges for the consolidated state of finances in the province. 46. Provincial Treasury has further noted with concern the lack of credibility of the mSCoA data strings submitted by some municipalities in the province. This is as a result of the following;
Incorrect use of the mSCoA and municipal accounting practices by municipalities;
Some municipalities are not budgeting, transacting, reporting directly from their core financial systems rather prepares their budgets and monthly reports on excel spreadsheet and later import into the system. This process leads to unauthorised, irregular, fruitful and wasteful (UIFW) expenditure because of the fact that financial systems built-in controls are not triggered resulting in wrong transactions being processed;
Municipalities are not locking their adopted budgets in their financial systems at month- end for completeness and quality of reported figures;
To force municipalities to lock their budgets and close their financial system at month-end, the National Treasury’s Local Government Database and Reporting System (LGDRS) will automatically lock all submission periods within the reporting deadline at the end of each quarter, effective from the first quarter of the 2020/21; and
The published period will NOT be re-opened to ensure consistency between publications.
N.B Page 15 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 F. IN-YEAR REPORTING: COMPLIANCE MONITORING
47. Municipalities should submit the signed-off verification reports by Municipal Managers (MM) and Chief Finance Officers (CFO) to National Treasury by the 04 August 2021 for the quarter ending 30 June 2021. The Table below shows that 27 municipalities submitted verified section 71, the same number reported for the quarter ending 31 March 2021. Total of 26 municipalities also submitted signed conditional grants, a regression of one (1) from the 27 that was submitted in the previous quarter.
Quarterly Section 71 Sign-off Documents Received Year 2021 Quarter Q4
Location Locat Location Locat Old S71 Grants BM IM NF info Description Code CAP Description Code Code Received Received Received Received Received District : - ( METROE ) Buffalo City BUF H Buffalo City BUF EC125 2021/07/30 2021/07/30 2021/07/30 2021/07/30 2021/07/30 Nelson Mandela Bay NMA H Nelson Mandela Bay NMA EC000 2021/07/29 2021/07/29 2021/07/29 District : Alfred Nzo ( DC44 ) Alfred Nzo DC44 M Alfred Nzo DC44 DC44 2021/07/29 2021/08/04 2021/07/29 Matatiele EC441 M Matatiele EC441 EC05b3 2021/07/30 2021/07/30 2021/07/30 2021/07/30 Ntabankulu EC444 L Ntabankulu EC444 EC152 2021/07/29 Umzimvubu EC442 M Umzimvubu EC442 EC05b2 2021/07/30 2021/07/30 2021/07/30 2021/07/26 Winnie Madikizela-Mandela EC443 M Winnie Madikizela-Mandela EC443 EC151 2021/07/29 2021/07/29 2021/08/04 2021/07/29 District : Amathole ( DC12 ) Amahlathi EC124 L Amahlathi EC124 EC124 Amathole DC12 H Amathole DC12 DC12 Great Kei EC123 L Great Kei EC123 EC123 Mbhashe EC121 L Mbhashe EC121 EC121 2021/08/02 2021/08/02 Mnquma EC122 M Mnquma EC122 EC122 2021/08/04 2021/08/04 Ngqushw a EC126 M Ngqushw a EC126 EC126 2021/08/02 2021/08/02 2021/08/02 2021/08/03 Raymond Mhlaba EC129 L Raymond Mhlaba EC129 EC129 District : Chris Hani ( DC13 ) Chris Hani DC13 M Chris Hani DC13 DC13 2021/07/30 2021/07/30 2021/08/02 2021/07/30 Emalahleni (EC) EC136 L Emalahleni (EC) EC136 EC136 2021/08/05 2021/08/05 2021/08/03 2021/08/03 2021/08/04 Engcobo EC137 M Engcobo EC137 EC137 2021/08/02 2021/08/02 Enoch Mgijima EC139 M Enoch Mgijima EC139 EC139 2021/08/03 2021/08/03 2021/08/03 2021/08/03 Intsika Yethu EC135 L Intsika Yethu EC135 EC135 2021/07/27 2021/07/27 2021/07/27 2021/07/27 2021/07/28 Inxuba Yethemba EC131 L Inxuba Yethemba EC131 EC131 2021/07/30 2021/07/30 2021/07/30 2021/07/30 Sakhisizw e EC138 L Sakhisizw e EC138 EC138 2021/08/03 2021/08/03 2021/08/03 District : Joe Gqabi ( DC14 ) Elundini EC141 L Elundini EC141 EC141 2021/07/29 2021/07/29 Joe Gqabi DC14 H Joe Gqabi DC14 DC14 2021/07/30 2021/07/30 Senqu EC142 M Senqu EC142 EC142 2021/07/30 2021/07/30 2021/07/30 2021/07/30 2021/07/29 Walter Sisulu EC145 L Walter Sisulu EC145 EC145 2021/07/30 2021/07/30 2021/07/30 2021/07/30 District : O .R. Tambo ( DC15 ) King Sabata Dalindyebo EC157 H King Sabata Dalindyebo EC157 EC157 Mhlontlo EC156 L Mhlontlo EC156 EC156 2021/07/30 2021/07/30 2021/07/30 2021/07/30 Ngquza Hills EC153 L Ngquza Hills EC153 EC153 Nyandeni EC155 L Nyandeni EC155 EC155 2021/08/02 2021/08/02 2021/08/02 2021/08/02 O R Tambo DC15 H O R Tambo DC15 DC15 Port St Johns EC154 M Port St Johns EC154 EC154 District : Sarah Baartman ( DC10 ) Blue Crane Route EC102 L Blue Crane Route EC102 EC102 2021/08/06 2021/08/06 2021/08/02 Dr Beyers Naude EC101 L Dr Beyers Naude EC101 EC101 2021/08/02 2021/08/02 2021/08/02 2021/08/03 Kou-Kamma EC109 M Kou-Kamma EC109 EC109 2021/08/05 2021/07/29 2021/08/05 Kouga EC108 M Kouga EC108 EC108 2021/07/29 2021/07/29 2021/07/29 2021/07/29 Makana EC104 M Makana EC104 EC104 2021/08/03 2021/08/03 2021/08/03 2021/08/03 Ndlambe EC105 L Ndlambe EC105 EC105 2021/08/06 Sarah Baartman DC10 M Sarah Baartman DC10 DC10 2021/08/02 2021/08/02 2021/08/02 2021/08/02 Sundays River Valley EC106 M Sundays River Valley EC106 EC106 Total Submitted 27 26 19 20 11 Source: NT LG Database
Page 16 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B G. DISTRICTS OVERVIEW Operating Revenue & Expenditure 48. Table 6 below shows the provincial operating revenue per district as at 30 June 2021:
Table 6: Operating Revenue Per District - 30 June 2021 District Original Adjusted Property Other Transfers Operating Revenue Actual YTD YTD % Contr YTD Electricity Water Sanitation Refuse Budget Budget Rates Revenue Recognised % Alfred Nzo 2 091 930 2 355 014 2 037 950 86.5 8% 98 425 88 305 24 335 1 920 17 854 94 602 1 712 507 Amathole 3 263 825 3 734 688 3 193 218 85.5 13% 240 359 82 315 316 525 111 265 47 007 247 952 2 147 796 Chris Hani 2 979 801 3 223 234 3 029 907 94.0 13% 212 191 339 984 307 984 62 664 97 803 279 612 1 729 668 Joe Gqabi 1 469 129 1 562 525 1 161 065 74.3 5% 79 753 162 874 123 254 20 639 14 394 109 980 650 171 OR Tambo 4 436 022 4 779 030 3 922 047 82.1 16% 327 870 441 627 239 829 60 340 58 148 252 347 2 541 885 Sarah Baartman 3 169 596 3 391 176 3 112 017 91.8 13% 579 649 769 861 316 102 136 444 131 205 194 756 984 001 Total Operating Revevenue 17 410 303 19 045 668 16 456 203 86.4 68% 1 538 248 1 884 966 1 328 029 393 271 366 411 1 179 249 9 766 029 Buffalo City Metro 7 507 552 7 772 441 7 590 865 97.7 32% 1 592 674 1 856 290 1 102 226 419 209 352 096 1 030 185 1 238 185 Nelson Mandela Bay Metro ------Total Operating Revenue Incl Metros 24 917 855 2624 818047 109068 89.7 100% 33 130741 922256 2 430 255 812 718 480507 2 209 434 11 004 214 Source : NT Local Government Database Municipalities on aggregate, generated revenue amounting to R24 billion or 89.7 per cent (77.4 per cent for Q3) of the total aggregated adjusted operating revenue budget of R26.8 billion. The year-to-date operating revenue for the province as reflected above is underpinned by: . R11 billion from Transfers and subsidies. This affirms grant reliance by most municipalities with the highest grant dependancy being in O.R. Tambo District and locals having received R2.5 billion and this district has also contributed 16 per cent to the year-to-date aggregated figures. The district that has contributed the least to the year-to-date performance is the Joe Gqabi District with only 5 per cent of the total year-to-date performance of the province. This district has also raised 74.3 percent of its adjusted budget for the year and is far below its annual projections.
. R7.7 billion from service charges which consists of - Electricity (R3.7 billion), Water (R2.4 billion), Sanitation (R812.4 million) and Refuse removal (R718.5 million) and;
. R3.1 billion generated from Property Rates income.
As indicated earlier, the Nelson Mandela Metro Municipality has not submitted any monthly financial reports during the 2020/21 financial year. As such, the consolidated operating revenue position of the province is understated. This factor is important because, as a metro municipality, this municipality has the biggest budget of all municipalities in the province. The non-submission is due to challenges with the financial system of the municipality. Although the metro is still struggling to implement the mSCOA reform, the municipality has implemented the following recommendations from the National Treasury assessment: . The metro has re-established mSCOA governance structures (steering committee) and the committee is sitting on a monthly basis. Representatives from both National and Provincial Treasuries have been appointed to serve on the steering committee; . The metro has appointed SITA as project manager for the implementation of the mSCOA reform. SITA will, amongst others, assist the metro with conducting a cost analysis on upgrading the in-house system or the procurement of a new system; and . The metro has developed and presented an mSCOA implementation action plan/roadmap with timeframes and will submit this plan to National Treasury.
Page 17 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B The Buffalo City Metropolitan Municipality has generated just over R7.5 billion (R6.2 billion in Q3) or 32 per cent of the total year-to-date revenue billed by all municipalities in the province. The metro has raised 97.7 percent of its adjusted budget for the year and this is in line with the annual projections.
The overall quarterly performance per district is reflected in the diagram below. The graph depicts how each district and the two metros performed relative to the aggregated operating revenue in the province.
At a district level, municipalities in the O.R. Tambo District have reported the highest operating revenue generated amounting to R3.9 billion or 16 per cent of the total aggregated year-to- date operating revenue, followed by municipalities in the Amathole, Sarah Baartman and Chris Hani districts which reported R3.1 billion, R3 billion and R3.1 billion respectively. While all the districts have billed, on average – 86.4 percent of the budgeted revenues, the major concern is the collection rate that is very low in most municipalities in the province. Table 7 below indicates the operating expenditure per district as at 30 June 2021:
Table 7 : Operating Expenditure Per District - 30 June 2021 Finance, Depreciatio District Employee Councillor Material - Original Adjusted Debt n and Bulk Contracted Other Transfers Operating Expenditure Actual YTD YTD % Contr YTD Related Remunerat Loss Budget Budget Impairment Asset Purchases Services Expenditure and Grants % Costs on Disposal Impairment Exp Alfred Nzo 2 189 553 2 348 658 1 726 299 73.5 8% 614 163 80 907 - 208 852 75 449 442 584 261 178 6 30 050 Amathole 3 315 693 3 391 530 2 266 236 66.8 11% 1 287 456 81 663 289 865 43 424 85 307 259 535 310 219 (137 235) 46 002 Chris Hani 2 865 945 2 648 766 2 283 574 86.2 11% 1 106 541 100 796 8 324 (17 922) 312 606 332 855 263 373 91 377 85 623 Joe Gqabi 1 466 557 1 593 711 870 702 54.6 4% 338 131 17 739 17 065 41 178 76 361 203 433 133 824 31 201 11 770 OR Tambo 4 340 103 4 655 103 3 455 622 74.2 16% 1 680 179 125 151 726 241 707 322 232 340 661 511 960 107 163 125 843 Sarah Baartman 3 241 266 3 357 735 3 014 277 89.8 14% 1 126 406 68 211 51 997 325 562 634 428 257 759 397 993 124 861 27 062 Total Operating Expenditure 17 419 116 17 995 503 13 616 710 75.7 64% 6 152 875 474 468 367 976 842 801 1 506 383 1 836 827 1 878 548 217 373 326 349 Buffalo City Metro 7 506 953 7 771 842 7 588 084 97.6 36% 2 349 790 63 813 503 452 1 329 943 1 621 307 774 712 518 389 333 061 93 617 Nelson Mandela Bay Metro ------Total Operating Expenditure Incl Metros 24 926 069 25 767 345 21 204 793 82.3 100% 8 502 666 538 281 871 428 2 172 744 3 127 691 2 611 539 2 396 937 550 433 419 965 Source : NT Local Government Database Total spending reported for the quarter ending 30 June 2021 amounted to R21.2 billion (R15.4 billion at 31 March 2021) and this is equivalent to 82.3 per cent of the total aggregated adjusted operating expenditure budget of R25.8 billion.
Employee related cost remains the highest cost driver amounting to R8.5 billion or 40 per cent of the total actual YTD operating expenditure. R2.1 billion of this total amount was incurred during the quarter under review. The y/y comparatives on Employee Related Costs for 2019/20 shows that municipalities had incurred R2.8 billion and this is a reduction of 24.8
Page 18 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B percent quarter-to-quarter. Municipalities have also reported significant expenditure on Bulk purchases, Contracted Services and Other expenditure with just over R3.1 billion, R2.6 billion and R2.3 billion respectively. The detailed performance per each district in the province as well as the two metros relative to the YTD performance of the province is in the graph below.
The Buffalo City Metropolitan municipality has reported 97.6 per cent of its adjusted operating expenditure budget amounting to R7.5 billion. The municipality is the biggest contributor to the overall year-to-date expenditure for the province with 36 per cent of the total spending.
The district performance shows that municipalities in the OR Tambo and Sarah Baartman districts have contributed the most to the year-to-date performance with R3.4 billon and R3 billion respectively. Municipalities in the Joe Gqabi district have spent R870.7 million of their total operating expenditure and this is equivalent to only 54.6 percent of the adjusted budget.
There are municipalities that are still not reporting on debt impairment. This is despite the fact that this is a requirement as per GRAP. This practice is more prevalent in municipalities in the Alfred Nzo and O.R. Tambo districts.
Page 19 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B
Capital Expenditure 49. Table 8 below shows the Provincial Capital Expenditure Summary.
Table 8 : Provincial Capital Expenditure Summary - 30 June 2021 Original Adjusted Capital Expenditure Description Actual YTD YTD % Budget Budget Governance and Administration 365 510 605 218 765 735 127% Community and Public Safety 575 106 925 383 680 904 74% Economic and Environmental Services 2 242 056 2 508 489 1 738 577 69% Trading Services 3 695 299 4 033 185 3 274 000 81% Other 82 175 165 941 112 781 68% Capital Expenditure Standard Classification 6 960 146 8 238 217 6 571 998 80% Source : NT Local Government Database
50. The reported year-to-date capital expenditure amounted to R6.6 billion or 80 per cent of the total adjusted capital budget of R8.2 billion. The highest contributor to the expenditure for the quarter under review is Trading Services (R3.3 billion) followed by Economic and Environmental Services at R1.7 billion. It was noted that Governance and Administration as a function has reported expenditure in excess of the budgeted amount resulting in 127 per cent. This may be as a result of an incorrect reporting on the system by municipalities.
51. Of the total spending to-date, R1.8 billion was spent during the fourth quarter of this financial year. This is against the R3 billion that was spent by municipalities during the corresponding quarter of the 2019/20 financial year and this reflects a 39.7 percent reduction, quarter to quarter.
52. Table 9 below shows Capital funding per district as at the end of June 2021.
Table 9 : Capital Funding Per District - 30 June 2021 District Public % Own Original Adjusted District National Provincial Other Grants % Grant Internally Funding Sources - Capex YTD %YTD Municipalitie Borrowings Contribution Funding Budget Budget Contr YTD % Government Government and Transfers Funding Generated s s to YTD Alfred Nzo 1 091 937 1 145 492 844 007 74% 12% 593 648 24 504 - - 73% - 225 854 - 27% Amathole 831 848 754 469 492 668 65% 7% 408 388 12 027 - - 85% - 72 253 - 15% Chris Hani 899 433 1 063 486 963 111 91% 14% 807 564 59 288 37 - 90% - 96 221 - 10% Joe Gqabi 476 613 473 225 277 324 59% 4% 220 767 11 065 - - 84% 15 738 29 754 - 16% OR Tambo 1 666 389 1 990 208 1 157 177 58% 17% 864 099 128 105 21 527 - 88% - 143 446 - 12% Sarah Baartman 316 537 531 904 1 739 518 327% 26% 1 258 344 115 727 6 105 13 369 80% 2 379 343 593 - 20% Total Revenue 5 282 757 5 958 784 5 473 804 0.9 81% 4 152 810 350 717 27 670 13 369 83% 18 117 911 122 - 17% Buffalo City Metro 1 660 089 2 208 847 1 294 718 59% 19% 743 143 - - 141 57% 1 979 549 455 - 43% Nelson Mandela Bay Metro ------#DIV/0! - - - #DIV/0! Total Rev Incl Metro 6 942 846 8 167 631 6 768 522 83% 100% 4 895 953 350 717 27 670 13 510 78% 20 095 1 460 577 - 22% Source : NT Local Government Database 53. Municipalities in the Sarah Baartman and O.R. Tambo Districts have reportedly contributed the highest amounts in respect of the aggregated provincial capital revenue with 26 per cent and 17 per cent respectively. Municipalities in the Amathole and Joe Gqabi Districts reported the lowest capital funding contribution with 7 per cent and 4 per cent respectively.
Municipalities in the Sarah Baartman district recognised sources of funding amounting to R1.7 billion or 327 per cent against an aggregated adjustments budget of R531.9 million, this does not seem to be correct and may be attributable to incorrect reporting on the system by municipalities in the district.
Page 20 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B
Cash Flow 54. Table 10 below indicates the cash flow position per district as at 30 June 2021.
Table 10: Cash Receipts and Payments per district as at 30 June 2021 Cash/cash equivalents Net Cash from/(used) Net Cash from/(used) Net Cash from/(used) Cash/cash equivalents DISTRICT at the year begin: Operating Activities Investing Activities Financing Activities at the year end:
Alfred Nzo 1 843 904 2 960 283 (891 709) 11 1 605 656 Amathole 629 786 214 770 (20 803) (137) 823 615 Chris Hani 39 082 2 959 625 (720 567) (742) 2 320 263 Joe Gqabi 165 614 447 278 (60 132) (85) 551 894 OR Tambo 2 014 817 2 159 564 (341 846) (468) 3 898 153 Sarah Baartman (528 312) 1 988 330 (186 073) 16 536 1 387 864 Total Excl Metros 4 164 892 10 729 851 (2 221 129) 15 114 10 587 445 Buffalo City Metro 1 360 408 4 525 987 (1 295 784) (59 494) 4 544 420 Nelson Mandela Bay Metro - - - - - Total 5 525 300 15 255 838 (3 516 913) (44 380) 15 131 865 Source: NT lgdatabase
55. As at 30 June 2021 municipalities in the OR Tambo District reported the highest consolidated cash and cash equivalents amount of R3.8 billion followed by municipalities in the Chris Hani district and Alfred Nzo District with amounts of R2.3 billion and R1.6 billion respectively. Municipalities in the Joe Gqabi District reported the lowest cash and cash equivalents balance of R551.8 million.
Debtors 56. Table 11 below shows the debtors age analysis per district. Table 11 : Debtors age analysis Per District - 30 June 2021 Description 0 - 30 days 31- 60 days 61-90 days Over 90 days Total Alfred Nzo 25 14310 13310 436429 017474 729 Amathole 68 15560 14061 5581 925 0542 114 907 Chris Hani 99 34379 774142 5443 586 7503 908 411 Joe Gqabi 40 00224 15227 209926 0581 017 421 OR Tambo 99 85142 88959 5081 399 3971 601 645 Sarah Baartman 117 33838 68438 8221 492 5441 687 388 Total Exc Metros 449 832255 772340 0779 758 820 10 804 501 Buffalo City Metro 420 713187 944136 3863 070 3133 815 356 Nelson Mandela Bay Metro 991 775345 890248 3465 616 6897 202 700 Total Incl Metros 1 862 320789 606724 809 18 445 822 21 822 557 Source : NT Local Government Database Despite the challenges with reporting, the Nelson Mandela Bay Metropolitan Municipality has reported the highest outstanding debtors as at the end of June 2021, with a balance of R7.2 billion while Buffalo City Metropolitan Municipality reported outstanding debt amounting to R3.8 billion. The two metros in the province account for 50 per cent of the total outstanding debt for the province.
With regard to districts, municipalities in the Chris Hani and Amathole districts continue to report the highest outstanding debtors with a combined balance of R3.9 billion and R2.1 billion respectively. The bulk of this debt is in respect of water, which is a mandate of the district municipality. The high levels of debt present a risk to the financial sustainability of municipalities in these districts. Some of the municipalities that are struggling with payment of creditors such as Eskom and Water Board are in these two districts.
Page 21 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B
Effects of the COVID-19 pandemic may derail debt collection efforts by municipalities; however, the advice given is to take note of Government gazette no 43291 issued by CoGTA on 7 May 2020 directing municipalities to put measures in place to ensure protection of revenue streams whilst continuously engaging communities.
Creditors 57. Table 12 below shows creditors per district including locals and metros in respect of the quarter ended 30 June 2021.
Table 12 : Creditors age analysis Per District - 30 June 2021 Description 0 - 30 days 31- 60 days 61-90 days Over 90 days Total Alfred Nzo 37 736 27 (77)1 15138 837 Amathole 92 64814 85324 529319 446451 476 Chris Hani 217 22632 01031 483727 4081 008 127 Joe Gqabi 65 249(1 710)1 769302 796368 104 OR Tambo 56 30139 9853 724177 955277 965 Sarah Baartman 105 95738 16823 304336 385503 814 Total Exc Metros 575 117123 33384 7321 865 1412 648 323 Buffalo City Metro 662 696 0 0 0662 696 Nelson Mandela Bay Metro918 171319 9256 0461 131 5482 375 690 Total Incl Metros 2 155 984443 25890 7782 996 6895 686 709 Source : NT Local Government Database
The two metros account for R3 billion or 53 per cent of the debt owed by municipalities in the province. In this regard, Nelson Mandela Bay Metropolitan Municipality reported creditors amounting to R2.4 billion while Buffalo City Metropolitan Municipality reported outstanding creditors amounting to R662 million.
Municipalities in the Chris Hani and Sarah Baartman districts reported the highest amount of outstanding creditors at R1 billion and R503.8 million respectively. As highlighted under the Eskom debt section of this report, two municipalities in the Chris Hani district are in the top five municipalities in terms of ESKOM arrears. These municipalities are Enoch Mgijima and Inxuba Yethemba local municipalities.
Total outstanding creditors over 30 day’s amount to R3.5 billion or 63 per cent of total creditors reported. This suggests that the majority of the municipalities in the province do not comply with Section 65(2) (e) of the MFMA. As such, many might attract interest, penalties and even litigation.
Exhibit 1 below shows interest comparatives of the 2019/20 year and the current year under review for Eskom. This paints a negative picture that municipalities continue to incur interest resulting in fruitless and wasteful expenditure
Page 22 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B Exhibit 1 - INTEREST CHARGED BY ESKOM - ANALYSES FOR PERIOD 2019/20 AND 2020/21 Municipal Code and Name Quarter 3 Ending 31 March - '000 Quarter 4 Ending 30 June - '000
Ytd Q3 - Ytd Q3 - Varience % (Decr) / Ytd Q4 - Ytd Q4 - Varience % (Decr) / No. Code Municipality 2019/20 2020/21 (Decr)/Incr Incr 2019/20 2020/21 (Decr)/Incr Incr Alfred Nzo District 22 10 (12) -56.3% 11 28 17 154.7% Amathole District District 49 100 56 379 7 279 14.8% 50 456 56 685 6 229 12.3% Chris Hani District 66 649 89 965 23 316 35.0% 70 622 98 767 28 145 39.9% Joe Gqabi District 68 384 75 428 7 044 10.3% 70 164 78 131 7 967 11.4% OR Tambo District 26 716 8 550 (18 166) -68.0% 6 299 8 595 2 295 36.4% Sarah Baartman District 13 054 23 765 10 711 82.1% 14 890 26 084 11 194 75.2% Total Interest Status 447 826 508 182 60 356 13.5% 424 872 536 550 111 678 26.3% Source: Section 41 Reports The q/q comparative analysis for June shows an increase of R111.7 million or 26.3 per cent. More details are published under Annexure G
H. mSCOA IMPLEMENTATION 58. The accounting officer of a municipality is required to, by no later than 10 working days after the end of each month, submit to the mayor of the municipality and the relevant provincial treasury in the prescribed format the statutory monthly reporting for the municipality, which includes the electronic monthly mSCOA transactional information submissions.
59. As at the end of June 2021, stage 1 validation status of the Eastern Cape Province is reflected in Table 13 below: Table 13: Status of Schedule of Submissions - stage 1(month 12) # MUNICIPALITY STATUS OF SUBMISSION # MUNICIPALITY STATUS OF SUBMISSION # MUNICIPALITY STATUS OF SUBMISSION 1 Buffalo City Submitted/Successful 14 Raymond Mhlaba Submitted with error (Phase1) 27 Mhlontlo Submitted/Successful 2 Nelson Mandela Bay Outstanding 15 Chris Hani Submitted/Successful 28 Ngquza Hills Submitted/Successful 3 Alfred Nzo Submitted/Successful 16 Emalahleni (EC) Submitted/Successful 29 Nyandeni Submitted/Successful 4 Matatiele Submitted/Successful 17 Engcobo Submitted/Successful 30 O R Tambo Submitted/Successful 5 Mbizana Submitted/Successful 18 Enoch Mgijima Submitted/Successful 31 Port St Johns Submitted/Successful 6 Ntabankulu Submitted/Successful 19 Intsika Yethu Submitted/Successful 32 Blue Crane Route Submitted/Successful 7 Umzimvubu Submitted/Successful 20 Inxuba Yethemba Submitted/Successful 33 Dr Beyers Naude Submitted/Successful 8 Amahlathi Submitted/Successful 21 Sakhisizwe Submitted/Successful 34 Kou-Kamma Submitted/Successful 9 Amathole Submitted/Successful 22 Elundini Submitted/Successful 35 Kouga Submitted/Successful 10 Great Kei Submitted/Successful 23 Joe Gqabi Submitted/Successful 36 Makana Submitted/Successful 11 Mbhashe Submitted/Successful 24 Senqu Submitted/Successful 37 Ndlambe Submitted/Successful 12 Mnquma Submitted/Successful 25 Walter Sisulu Submitted/Successful 38 Sarah Baartman Submitted/Successful 13 Ngqushwa Submitted/Successful 26 King Sabata Dalindyebo Submitted/Successful 39 Sundays River Valley Submitted/Successful Source: LG Database
60. Table 14 below shows stage 2 validations. Subsequent to the receipt of the monthly mSCOA transactional data strings, National Treasury Local Government Portal conducts segment validation of the data strings to ensure that municipalities have applied the correct segments based on predetermined rules. Provincial Treasury has engaged municipalities on these errors and provided guidance to clear the errors.
Page 23 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B Table 14: Stage 2 validations # MUNICIPALITY STATUS OF VALIDATION # MUNICIPALITY STATUS OF VALIDATION # MUNICIPALITY STATUS OF VALIDATION 1 Buffalo City Successful (Phase2) 14 Raymond Mhlaba Submitted with error (Phase1) 27 Mhlontlo Successful (Phase 2) 2 Nelson Mandela Bay Data file is outstanding 15 Chris Hani Successful (Phase 2) 28 Ngquza Hills Successful (Phase 2) 3 Alfred Nzo Succesful (Phase 2) 16 Emalahleni (EC) Successful (Phase 2) 29 Nyandeni Successful (Phase 2) 4 Matatiele Succesful (Phase 2) 17 Engcobo Successful (Phase 2) 30 O R Tambo Successful (Phase 2) 5 Mbizana Succesful (Phase 2) 18 Enoch Mgijima Successful (Phase 2) 31 Port St Johns Successful (Phase 2) 6 Ntabankulu Succesful (Phase 2) 19 Intsika Yethu Succesful (Phase 2) 32 Blue Crane Route Succesful (Phase 2) 7 Umzimvubu Succesful (Phase 2) 20 Inxuba Yethemba Successful (Phase 2) 33 Dr Beyers Naude Successful (Phase 2) 8 Amahlathi Succesful (Phase 2) 21 Sakhisizwe Successful (Phase 2) 24 Kou-Kamma Successful (Phase 2) 9 Amathole Succesful (Phase 2) 22 Elundini Successful (Phase 2) 35 Kouga Succesful (Phase 2) 10 Great Kei Succesful (Phase 2) 23 Joe Gqabi Successful (Phase 2) 36 Makana Successful (Phase 2) 11 Mbhashe Succesful (Phase 2) 24 Senqu Successful (Phase 2) 27 Ndlambe Successful (Phase 2) 12 Mnquma Succesful (Phase 2) 25 Walter Sisulu Succesful (Phase 2) 38 Sarah Baartman Successful (Phase 2) 13 Ngqushwa Succesful (Phase 2) 26 King Sabata Dalindyebo Successful (Phase 2) 39 Sundays River Valley Successful (Phase 2) Source: LG Database
There were 37 municipalities that submitted data strings and passed stage one (1) validation. One (1) municipality, namely Nelson Mandela Metropolitan Municipality did not submit datastrings in respect of June 2021. Raymond Mhlaba Local Municipality submitted data strings that contained errors.
Provincial Treasury undertakes an analysis of the municipalities submitted data strings as part of its monitoring and oversight on municipalities. The analysis revealed the following: . When budgeting municipalities use a different function or region segment than when transacting leading to a misallocations; . Municipality’s systems do not close the previous month and automatically transfer closing balances to the new period hence no opening balance strings reported on database for most system vendors; . Municipality do not follow the guidelines provided by National Treasury in mSCOA circular No. 09 regarding the classification of Covid-19 transactions. In some cases, it was discovered that some municipalities do not make allocations towards COVID19 budget; . Not all the modules are utilized by municipalities. This is despite the fact that municipalities are already paying for such modules; . Not all municipalities have submitted MSCOA Implementation Plans to the PT despite numerous requests by district offices in this regard, letters of non-compliance have been issued to Accounting Officers of affected municipalities; . Non-sitting of Project Steering Committees in some municipalities. This challenge is also exacerbated by the fact that some municipalities do not invite representatives from PT to attend these meetings; . Some municipalities have opted to change their financial systems and system vendors. While municipalities are entitled to take such decisions, this presents risks for municipalities. . Some municipalities have been spending against line items where there is no budget thereby resulting in unauthorized expenditure; . Function segments are not used correctly – e.g.: roads projects not used against roads function; and . Some municipalities using whole of municipalities as region.
61. During the quarter under review the following activities were prioritised: . Follow up on submission of outstanding data strings for delegated municipalities (i.e. for AUD, Month 10 to 12 monthly data strings).
Page 24 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B . Analyse these data strings to for credibility; . Supporting municipalities to submit/correct data string errors; . Support and monitor “red municipalities” o Compile Provincial List; o Obtain Action Plans (Road Maps) and attend Steercom meetings; and o Monitor progress against National mSCOA Road Map (Joint strategy). . Issue non-compliance letters to municipalities that are persistently (even before lock down commenced) not submitting their data string or that are submitting the data late (data strings to be submitted within 10 working days after month-end).
I. GOVERNANCE PROVINCIAL OVERVIEW Risk management and Internal Audit 62. In terms of MFMA sec 165(1), Each municipality and each municipal entity must have an internal audit unit, subjec t to subsection (3). During the quarter under review, Provincial Treasury in collaboration with CoGTA participated in the quarterly Provincial Chief Audit Executive (CAE) forum which took place on 03 June 2021. The agenda items were as follows: . 2019/20 Audit Outcomes; . Role of internal audit on the implementation of the strategy to reduce Irregular expenditure; . Role of Internal Audit Unit on Review of AFS – 2020/21 FY; . The Importance of Risk Management Unit in Municipalities; and . Supply Chain Management Draft Standard Audit Program.
The following 10 municipalities received support on Internal Audit and Risk Management in the current quarter: . Nyandeni Local Municipality; KSD Local Municipality; . Mhlontlo Local Municipality; Amathole Local Municipality; . Emalahleni Local Municipality; Sakhisizwe Local Municipality; . Intsika Yethu Local Municipality; Alfred Nzo District Municipality; and . Umzimvubu Local Municipality; Walter Sisulu Local Municipality
63. PT also supported municipalities through attending Audit Committee meetings and providing an advisory role to members. Audit committee meetings of the following 10 municipalities were supported: . Nyandeni Local Municipality; KSD Local Municipality; . Mhlontlo Local Municipality; Amathole Local Municipality; . Emalahleni Local Municipality; Sakhisizwe Local Municipality; . Intsika Yethu Local Municipality; Alfred Nzo District Municipality; and . Umzimvubu Local Municipality; Walter Sisulu Local Municipality.
Minimum Competency Level 64. Table 15 below shows the preliminary summary status of the minimum competence level (MCL) confirmed with municipalities in March 2021 and updated in July 2021 in compliance with the prescribed regulations. For the quarter under review Provincial Treasury together with National Treasury are currently busy with the verification of the submitted information by municipalities.
Type textN.B here Page 25 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 Table 15: EC- Minimum competency levels at as 30 June 2021 Provincial Summary Status Accounting Officers Chief Financial Officers Other Senior Managers Other SM with MCL Other SM with No MCL
Total positions 39 39 154 Completed 36 34 114 Not Completed 3 2 35 Acting Capacity 0 3 % Completed 92% 87% 74% % Not Completed 8% 5% 23% % ActingCapacity 0% 8% 0% Source: Eastern Cape Municipal Submissions
65. According to the result, the status has remained constant due to the fact that the minimum competency statistics are updated on a bi-annual basis. These will be next updated in June 2021. Full details in Annexure F.
J. COVID – 19 REPORTING 66. On 15 March 2020, the President of the Republic of South Africa declared a national state of disaster in terms of the Disaster Management Act to enable government and the country at large to manage the spreading of the COVID-19 virus.
The country is facing two major phenomena, firstly, the financial impact of the COVID-19 Pandemic on municipalities and secondly the impact of the downgrade on South Africa’s credit rating. As a result of the crisis, municipalities are under pressure to provide certain services to assist in curbing the spread of this virus. It is for this reason that municipalities were requested to share the cost of this expenditure to deal with this matter.
As at 25 June 2021, total reported expenditure incurred by municipalities in the province amounted to R655.7 million representing an increase of R104.3 million when compared to the amount of R551.4 million reported in the previous quarter. The expenditure can be broken down as follows: . General Expenditure – R231.4 million (R220.7 million in quarter three) . Community and Social Services – R127.3 million (R115.1 million in quarter three) . Public Safety – R10.8 million (R9 million in quarter three) . Housing – R156.7 million (R85.1 million in quarter three) . Health – R129.4 million (R121.4 million in quarter three)
K. PROCUREMENT STATUS OF MUNICIPALITIES 67. The procurement status of the seven catalytic projects in the province is shown in Annexure H of this document. There are seven (7) projects selected from six (6) municipalities that had submitted their Project Implementation Plans (PIPs) on the 30th April 2020. Municipalities were requested to submit progress made in preparation for implementation such as adverts, appointment letters and site visits plans that will be conducted during implementation.
Joe Gqabi District Municipality - Provision of Sanitation Infrastructure for Ugie - Phase 1: - The project has an estimated total budget of R27.4 million, (budgeted R15 million for 2020/21) the project had not been awarded as at end of March 2021. Project was at the Bid Evaluation Committee thrice - first sitting on 28 January 2021, second sitting was on 16 February 2021 and the third sitting was on 10 March 2021 after having being returned by BAC. The project is at the Bid Adjudication Committee as at end March 2021, it is likely to be affected by section 19 of Division of Revenue Act 2020 (stopping). It is clear that the project will not be implemented as planned by the municipality as it is still delayed on procurement. Chris Hani District Municipality - Provision of Bulk Service: Water & Sanitation Rathwick Development: - The project has an estimated budget of R306.4 million, (Budgeted R 14.1 million in 2020/21 & R1.1 million in 2021/22). Municipality was engaged in November 2020 in
Page 26 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B preparation for Section 19 (stopping) engagement, the session was facilitated in collaboration with CoGTA as the Transferring Officer. The delay is due to the fact that the municipality has deviated from the scheduled date for BEC sitting for 30 days and that has contributed to the municipality being affected by section 18 of the DoRA (withholding of funds), the second tranche of the MIG allocation has been withheld. The municipality has awarded during the third quarter (18th December 2020) three (3) months behind schedule, as per their planned date and the project is currently at construction stage. This project is likely to be affected by the 2021 rollover process.
Alfred Nzo District Municipality - Umzimvubu - Fobane Sub-Regional Water Supply Scheme - Phase 2:. The project has an estimated budget of R377.5 million. The municipality has not honoured the planned dates, to the extent that project has been awarded during the fourth quarter (10th March 2021) and is six (6) months behind schedule as per their planned date with only three (3) months left in the financial year. Due to the delays in the procurement processes, this project will also be impacted by the rollover process. The project is currently at construction stage.
Ndlambe Local Municipality - Upgrading of Marselle & Kenton on Sea Sports-fields - Phase 2. The Department of Sports issued an allocation letter to the municipality on 3rd March 2020 with emphasis, that project must be registered with CoGTA by 30th April 2020. CoGTA approved the project on the 15th May 2020 for implementation in the 2020/21 financial year. These projects have an estimated budget of R4.6 million & R4.7 million. The project has a total budget of R9.4 million, with the expenditure of R5.6 million or 59.7 per cent as at end February 2021. Sustained rains delayed the implementation of the project but the projects were completed. Umzimvubu local municipality - Phepheni Sports Facility: - The Department of Sports South issued an allocation letter to the municipality on 03 March 2020. CoGTA approved the project on the 24 April 2020 for implementation in 2020/21 financial year. The project has an estimated budget of R10 million. To-date, the contractor has been appointed with an amount of R2.3 reported to have been spent. The project is not without challenges as our findings during site visit found that there was no proper communication between the contractor and consultant regarding work to be done. The project also experienced delays due to community unrest, however the project is currently at construction stage. Intsika Yethu municipality - Development of Magwala Sports Facility. - The project was registered in MIG-MIS with R23.3 million on 15 June 2020. The municipality has budgeted R10 million for 2020/21 financial year and is a multi-year project. The municipality is behind schedule as there were delays on BSC and BEC sittings for almost 30 days, these delays have pushed the award date to approximately 60 days). This project is currently at construction stage.
The project was visited by DSRAC, CoGTA, MISA and PT on the 12th March 2021, to verify progress made and value for money. Project was delayed due to community demands but has since resumed and the contractor is continuing well as the progress is 48 per cent against 22 per cent time lapsed on the project.
Page 27 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 N.B L.CONCLUSION 68. In conclusion: . Accuracy and completeness of the data strings submitted remains a challenge; . Municipalities are not preparing reconciliation and passing journals monthly; . Improved credibility of the data strings requires extra joint support between National and Provincial Treasury; . Correction of capital expenditure funding source requires more engagement between municipalities and system vendors on segment use; . The partnership between Provincial Treasury, CoGTA, and SALGA continues to support municipalities on municipal debts, internal audits and risk management; . mSCOA district champions provide support to municipalities in order to achieve full compliance on data strings submission towards seamless integration; . Provincial Treasury, CoGTA, GIZ, SALGA and Municipal Financial Technical Advisors are working in partnership on improving project planning, capital budget spending improvement; . MPAC, DC Boards and other oversight governance structures will support in addressing UIF&W . Provincial Treasury, COGTA and transferring departments will keep on supporting municipalities in the rollover process; . In promoting transparency and accountability, PT will continue monitoring the Covid -19 procurement information by the municipalities and entities; and . The SCM procurement plan’s lag has potential to result in the province loosing further allocated funds, and needs urgent attention
Page 28 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 Type N.B text hereType text here M. RECOMMENDATIONS 69. It is recommended that the MEC : a. Note the content of the report; b. Note that current and post Covid-19 financial and fiscal risk management monitoring support to maintain sustainability and funded budgets requires strengthened dedicated municipal committees; c. Note support on operating expenditure structure efficacy, assets and liability management to improve prudent financial management and due diligence leading to 2021/22 MTREF; d. Support request to improving poor response with regards to NT’s letter to provincial departments to prioritise payments of municipal debts; and e. Engage CoGTA MEC to support the Municipal Disciplinary Boards concerning Councils lack of appetite to implement consequence management after irregular expenditure investigation.
Ikhwezi Lomso greetings: Serving with Honesty, Humility and Integrity
Prepared by: First reviewed by:
______Mr. NCEBA BOMVANE Mr. THOBELANI NTSHINGILA DEPUTY DIRECTOR: MFG DIRECTOR: MFG DATE: _10______August 2021 DATE: _10______August 2021 ____
Quality assurance review by: Recommended/Not Recommended
______Mr. TEMPLETON PHOGOLE Ms. BULELWA NQADOLO CHIEF DIRECTOR: MFG DEPUTY DIRECTOR-GENERAL: MFG DATE: _10______August 2021 DATE: ______11-08-2021
______Mr. DALUHLANGA MAJEKE HEAD OF DEPARTMENT DATE: _12/08/2021______
______Mr. M.G MVOKO (MPL) MEMBER OF THE EXECUTIVE COUNCIL MINISTRY OF FINANCE, ECONOMIC DEVELOPMENT, ENVIRONMENTAL AFFAIRS AND TOURISM DATE: _17/08/2021______
Page 29 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021
ANNEXURE A: STATEMENT OF OPERATING REVENUE AND EXPENDITURE FOR THE 4th QUARTER ENDED 30 JUNE 2021
AGGREGRATED INFORMATION FOR EASTERN CAPE STATEMENT OF CAPITAL AND OPERATING EXPENDITURE FOR THE 4TH QUARTER ENDED 30 JUNE 2021 (PRELIMINARY RESULTS)
Part1: Operating Revenue and Expenditure 2020/21 2019/20 Budget Fourth Quarter Year to Date Fourth Quarter Q4 of 2019/20 Main Adjusted Actual 4th Q as % of Actual Total Actual Total to Q4 of appropriation Budget Expenditure adjusted Expenditure Expenditure Expenditure Expenditure 2020/21 budget as % of as % of R thousands adjusted adjusted budget budget Operating Revenue and Expenditure Operating Revenue 24 917 855 26 818 109 3 320 683 12.4% 24 047 068 89.7% 5 384 240 63.1% (38.3%) Property rates 3 249 405 3 247 084 513 338 15.8% 3 130 922 96.4% 654 813 111.9% (21.6% ) ------Service charges - electricity revenue 4 383 681 4 244 400 992 074 23.4% 3 741 256 88.1% 1 578 278 26.7% (37.1% ) Service charges - water revenue 2 041 251 2 132 320 587 087 27.5% 2 430 255 114.0% 756 783 85.0% (22.4% ) Service charges - sanitation revenue 897 059 911 382 181 404 19.9% 812 480 89.1% 338 898 85.0% (46.5% ) Service charges - refuse revenue 781 545 762 860 170 677 22.4% 718 507 94.2% 217 945 79.6% (21.7% ) ------Rental of facilities and equipment 105 513 88 683 20 871 23.5% 69 687 78.6% 37 223 70.2% (43.9% ) Interest earned - external investments 466 633 473 253 74 254 15.7% 232 407 49.1% 228 347 113.7% (67.5% ) Interest earned - outstanding debtors 617 294 613 667 147 896 24.1% 579 070 94.4% 211 843 81.0% (30.2% ) Dividends received ------4 - (100.0% ) Fines, penalties and forfeits 94 703 65 773 17 104 26.0% 64 386 97.9% 8 358 22.7% 104.6% Licences and permits 129 791 126 278 23 723 18.8% 97 343 77.1% 98 821 164.9% (76.0% ) Agency services 108 102 107 448 24 396 22.7% 81 823 76.2% 16 032 79.9% 52.2% Transfers and subsidies 9 728 645 11 476 622 445 809 3.9% 11 004 214 95.9% 1 213 915 95.3% (63.3% ) Other revenue 2 181 142 2 413 030 109 956 4.6% 1 071 488 44.4% 22 729 39.9% 383.8% Gains 133 091 155 309 12 093 7.8% 13 230 8.5% 251 9.2% 4 723.1% Operating Expenditure 24 926 069 25 767 345 5 770 802 22.4% 21 204 793 82.3% 6 235 141 63.6% (7.4%) Employee related costs 9 135 309 9 200 642 2 169 542 23.6% 8 502 666 92.4% 2 885 258 79.2% (24.8% ) Remuneration of councillors 637 170 612 878 144 837 23.6% 538 281 87.8% 195 090 85.8% (25.8% ) Debt impairment 1 660 900 1 681 764 253 999 15.1% 871 428 51.8% (156 177) 29.3% (262.6% ) Depreciation and asset impairment 2 973 852 3 057 121 778 668 25.5% 2 172 744 71.1% 568 803 61.7% 36.9% Finance charges 110 060 113 579 49 069 43.2% 118 458 104.3% 679 62.8% 7 128.8% Bulk purchases 3 467 651 3 418 675 834 750 24.4% 3 127 691 91.5% 1 262 509 60.5% (33.9% ) Other Materials 969 784 1 028 865 (59 818) (5.8% ) 473 610 46.0% 239 744 63.0% (125.0% ) Contracted services 2 762 975 3 264 348 784 153 24.0% 2 611 539 80.0% 598 040 56.2% 31.1% Transfers and subsidies 418 268 479 783 127 814 26.6% 419 965 87.5% 134 001 103.4% (4.6% ) Other expenditure 2 789 652 2 872 962 685 022 23.8% 2 352 965 81.9% 525 058 40.7% 30.5% Losses 450 36 727 2 765 7.5% 15 446 42.1% (17 862) 130.8% (115.5% )
Surplus/(Deficit) (8 214) 1 050 764 (2 450 119) 2 842 275 (850 900) Transfers and subsidies - capital (monetary allocations) (Nat / Prov and Dist) 5 394 877 5 836 831 1 247 603 21.4% 3 709 580 63.6% 930 780 48.4% 34.0% Transfers and subsidies - capital (monetary alloc)(Departm Agencies,HH,PE,PC,..) 1 231 1 231 25 293 2 054.7% 82 725 6 720.1% 21 181 20.4% 19.4% Transfers and subsidies - capital (in-kind - all) - 7 012 - - 548 7.8% - - - Surplus/(Deficit) after capital transfers and 5 387 894 6 895 837 (1 177 223) 6 635 128 101 061 contributions Taxation ------Surplus/(Deficit) after taxation 5 387 894 6 895 837 (1 177 223) 6 635 128 101 061 Attributable to minorities ------Surplus/(Deficit) attributable to municipality 5 387 894 6 895 837 (1 177 223) 6 635 128 101 061 Share of surplus/ (deficit) of associate ------Surplus/(Deficit) for the year 5 387 894 6 895 837 (1 177 223) 6 635 128 101 061
Page 30 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021
ANNEXURE B: CAPITAL REVENUE AND EXPENDITURE
Part 2: Capital Revenue and Expenditure 2020/21 2019/20 Budget Fourth Quarter Year to Date Fourth Quarter Q4 of 2019/20 Main Adjusted Actual 4th Q as % of Actual Total Actual Total to Q4 of appropriation Budget Expenditure adjusted Expenditure Expenditure Expenditure Expenditure 2020/21 budget as % of as % of R thousands adjusted adjusted budget budget Capital Revenue and Expenditure Source of Finance 6 942 846 8 167 631 1 850 954 22.7% 6 768 522 82.9% 1 649 653 84.8% 12.2% National Government 5 043 506 5 443 368 1 358 614 25.0% 4 895 953 89.9% 1 322 135 74.7% 2.8% Provincial Government 248 979 365 193 68 362 18.7% 350 717 96.0% 19 832 58.3% 244.7% District Municipality 30 861 110 022 2 026 1.8% 27 670 25.1% 754 58.6% 168.5% Transfers and subsidies - capital (monetary alloc)(Departm Agencies,HH,PE,PC,..) 1 851 1 851 (17) (.9%) 13 510 729.9% 14 008 29.7% (100.1%) Transfers recognised - capital 5 325 197 5 920 434 1 428 984 24.1% 5 287 850 89.3% 1 356 730 72.7% 5.3% Borrowing 306 451 260 324 9 553 3.7% 20 095 7.7% 628 2.0% 1 421.7% Internally generated funds 1 311 197 1 986 874 412 416 20.8% 1 460 577 73.5% 292 295 150.7% 41.1% ------Capital Expenditure Functional 6 960 146 8 238 217 1 851 752 22.5% 6 571 998 79.8% 3 071 161 124.8% (39.7%) Municipal governance and administration 365 510 605 218 64 684 10.7% 765 735 126.5% 792 626 (233.1%) (91.8%) Executive and Council 31 605 49 121 (30 240) (61.6% ) 18 491 37.6% 1 871 91.5% (1 716.4% ) Finance and administration 333 652 555 829 94 917 17.1% 747 188 134.4% 788 232 (285.1% ) (88.0% ) Internal audit 253 268 7 2.7% 57 21.1% 2 523 582.9% (99.7% ) Community and Public Safety 575 106 925 383 266 119 28.8% 680 904 73.6% 203 303 178.2% 30.9% Community and Social Services 61 009 146 772 25 333 17.3% 112 136 76.4% 73 644 236.5% (65.6% ) Sport And Recreation 88 071 134 174 35 302 26.3% 111 002 82.7% 56 130 204.4% (37.1% ) Public Safety 37 267 59 972 6 304 10.5% 27 069 45.1% 6 767 (68.9% ) (6.8% ) Housing 385 748 581 501 199 040 34.2% 430 180 74.0% 65 846 170.8% 202.3% Health 3 010 2 964 139 4.7% 517 17.4% 916 1 114.4% (84.8% ) Economic and Environmental Services 2 242 056 2 508 489 528 966 21.1% 1 738 577 69.3% 1 404 810 163.8% (62.3%) Planning and Development 595 758 553 491 146 376 26.4% 507 827 91.7% 205 669 95.0% (28.8% ) Road Transport 1 646 156 1 954 929 382 548 19.6% 1 230 685 63.0% 1 199 044 213.7% (68.1% ) Environmental Protection 142 69 42 60.5% 66 95.2% 97 4 651.6% (57.1% ) Trading Services 3 695 299 4 033 185 950 351 23.6% 3 274 000 81.2% 651 883 131.4% 45.8% Energy sources 394 624 534 722 129 531 24.2% 509 026 95.2% 170 804 202.6% (24.2% ) Water Management 2 791 605 2 900 862 731 259 25.2% 2 175 407 75.0% 316 238 103.0% 131.2% Waste Water Management 424 494 445 819 49 543 11.1% 540 467 121.2% 105 552 127.8% (53.1% ) Waste Management 84 575 151 782 40 018 26.4% 49 100 32.3% 59 289 212.4% (32.5% ) Other 82 175 165 941 41 632 25.1% 112 781 68.0% 18 539 216.5% 124.6%
Page 31 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021
ANNEXURE C: CASH RECEIPTS AND PAYMENTS
Part 3: Cash Receipts and Payments 2020/21 2019/20 Budget Fourth Quarter Year to Date Fourth Quarter Q4 of 2019/20 Main Adjusted Actual 4th Q as % of Actual Total Actual Total to Q4 of appropriation Budget Expenditure adjusted Expenditure Expenditure Expenditure Expenditure 2020/21 budget as % of as % of R thousands adjusted adjusted budget budget Cash Flow from Operating Activities Receipts 22 373 940 17 233 611 4 474 524 26.0% 27 917 121 162.0% 1 094 588 43.4% 308.8% Property rates 2 727 384 1 272 056 624 148 49.1% 3 025 917 237.9% 54 587 12.0% 1 043.4% Service charges 6 164 443 2 690 610 1 848 846 68.7% 5 343 545 198.6% 224 120 20.8% 724.9% Other revenue 1 389 141 1 214 789 1 512 739 124.5% 9 098 638 749.0% 357 272 35.2% 323.4% Transfers and Subsidies - Operational 7 977 050 8 149 530 399 486 4.9% 6 455 590 79.2% 485 433 74.6% (17.7% ) Transfers and Subsidies - Capital 3 889 602 3 666 349 87 001 2.4% 3 983 904 108.7% (28 249) 56.6% (408.0% ) Interest 226 320 240 277 2 303 1.0% 9 528 4.0% 1 425 - 61.7% Dividends ------Payments (11 858 516) (9 543 634) (3 300 480) 34.6% (11 944 821) 125.2% 323 357 13.7% (1 120.7%) Suppliers and employees (11 632 017) (9 914 824) (3 337 227) 33.7% (12 475 757) 125.8% 323 620 13.7% (1 131.2% ) Finance charges (63 313) (32 535) (5 965) 18.3% (29 856) 91.8% - - (100.0% ) Transfers and grants (163 187) 403 725 42 712 10.6% 560 792 138.9% (263) (2.3% ) (16 331.9% ) Net Cash from/(used) Operating Activities 10 515 424 7 689 977 1 174 044 15.3% 15 972 300 207.7% 1 417 945 31.9% (17.2%)
Cash Flow from Investing Activities Receipts 99 855 107 968 9 041 8.4% 4 494 4.2% (59 727) .2% (115.1%) Proceeds on disposal of PPE 98 879 99 461 13 548 13.6% 8 919 9.0% 0 - 8 362 927.2% Decrease (Increase) in non-current debtors (not used) ------Decrease (increase) in non-current receivables 8 341 8 591 (261) (3.0% ) (235) (2.7% ) (60 458) - (99.6% ) Decrease (increase) in non-current investments (7 364) (84) (4 246) 5 060.7% (4 190) 4 993.7% 731 .2% (680.8% ) Payments (4 040 327) (3 314 333) (1 474 851) 44.5% (3 607 675) 108.9% (154 316) 38.0% 855.7% Capital assets (4 040 327) (3 314 333) (1 474 851) 44.5% (3 607 675) 108.9% (154 316) 38.0% 855.7% Net Cash from/(used) Investing Activities (3 940 472) (3 206 365) (1 465 810) 45.7% (3 603 182) 112.4% (214 043) 46.0% 584.8% Cash Flow from Financing Activities Receipts 312 337 58 318 19 959 34.2% 10 915 18.7% 159 170 2.4% (87.5%) Short term loans ------Borrowing long term/refinancing 314 051 72 501 ------Increase (decrease) in consumer deposits (1 714) (14 184) 19 959 (140.7% ) 10 915 (77.0% ) 159 170 5.1% (87.5% ) Payments (56 352) (60 278) (23 306) 38.7% (55 701) 92.4% 8 876 - (362.6%) Repayment of borrowing (56 352) (60 278) (23 306) 38.7% (55 701) 92.4% 8 876 - (362.6% ) Net Cash from/(used) Financing Activities 255 985 (1 960) (3 347) 170.8% (44 786) 2 284.9% 168 046 6.9% (102.0%)
Net Increase/(Decrease) in cash held 6 830 937 4 481 652 (295 114) (6.6%) 12 324 332 275.0% 1 371 948 30.4% (121.5%) Cash/cash equivalents at the year begin: (2 568 862) (2 401 664) 15 268 966 (635.8% ) 2 508 013 (104.4% ) 9 845 594 94.7% 55.1% Cash/cash equivalents at the year end: 4 262 075 2 079 988 15 131 865 727.5% 15 131 865 727.5% 11 273 793 39.3% 34.2%
Page 32 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021
Annexure D: REPORTING COMPLIANCE
Municipalities that did not comply with the reporting requirements as per Section 71(1) of the MFMA.
Status of Schedule of Submissions
Demarcation Demarc Financial Submission Status of Description Code CAP Year Code Due Date Schedule Financial Data Location Level Selected: Province(s): EC District : - ( METROE ) Nelson Mandela Bay NMA H 2021 M04 In-Year Monthly 04 2020/11/14 Outstanding Nelson Mandela Bay NMA H 2021 M05 In-Year Monthly 05 2020/12/14 Outstanding Nelson Mandela Bay NMA H 2021 M06 In-Year Monthly 06 2021/01/15 Outstanding Nelson Mandela Bay NMA H 2021 M07 In-Year Monthly 07 2021/02/14 Outstanding Nelson Mandela Bay NMA H 2021 M08 In-Year Monthly 08 2021/03/15 Outstanding Nelson Mandela Bay NMA H 2021 M09 In-Year Monthly 09 2021/04/16 Outstanding Nelson Mandela Bay NMA H 2021 M10 In-Year Monthly 10 2021/05/14 Outstanding Nelson Mandela Bay NMA H 2021 M11 In-Year Monthly 11 2021/06/14 Outstanding Nelson Mandela Bay NMA H 2021 M12 In-Year Monthly 12 2021/07/14 Outstanding Nelson Mandela Bay NMA H 2021 ORGB Original Budget 2020/07/14 Outstanding Nelson Mandela Bay NMA H 2021 TABB Tabled Budget 2020/04/14 Outstanding District : Amathole ( DC12 ) Mnquma EC122 M 2021 M02 In-Year Monthly 02 2020/09/14 Outstanding Mnquma EC122 M 2021 M03 In-Year Monthly 03 2020/10/14 Outstanding Mnquma EC122 M 2021 M05 In-Year Monthly 05 2020/12/14 Outstanding Mnquma EC122 M 2021 M06 In-Year Monthly 06 2021/01/15 Outstanding Raymond Mhlaba EC129 L 2021 M01 In-Year Monthly 01 2020/08/17 Outstanding Raymond Mhlaba EC129 L 2021 M02 In-Year Monthly 02 2020/09/14 Outstanding Raymond Mhlaba EC129 L 2021 M03 In-Year Monthly 03 2020/10/14 Outstanding Raymond Mhlaba EC129 L 2021 M08 In-Year Monthly 08 2021/03/15 Outstanding Raymond Mhlaba EC129 L 2021 M09 In-Year Monthly 09 2021/04/16 Outstanding District : Joe Gqabi ( DC14 ) Senqu EC142 M 2021 M01 In-Year Monthly 01 2020/08/17 Outstanding Walter Sisulu EC145 L 2021 M09 In-Year Monthly 09 2021/04/16 Outstanding Non Financial Data Location Level Selected: Province(s): EC District : - ( METROE ) Buffalo City BUF H 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Buffalo City BUF H 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Buffalo City BUF H 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Buffalo City BUF H 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Nelson Mandela Bay NMA H 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Nelson Mandela Bay NMA H 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Nelson Mandela Bay NMA H 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Nelson Mandela Bay NMA H 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Nelson Mandela Bay NMA H 2021 PROR Project Details Original Budget 2020/07/14 Outstanding Nelson Mandela Bay NMA H 2021 PRTA Project Details Tabled Budget 2020/04/14 Outstanding District : Alfred Nzo ( DC44 ) Alfred Nzo DC44 M 2021 CR09 Creditors Monthly-M09 2021/04/16 Outstanding Alfred Nzo DC44 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Alfred Nzo DC44 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Alfred Nzo DC44 M 2021 DB09 Debtors Monthly-M09 2021/04/16 Outstanding Alfred Nzo DC44 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Alfred Nzo DC44 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Alfred Nzo DC44 M 2021 IMQ3 Investment Monitoring-Q3 2021/04/16 Outstanding Matatiele EC441 M 2021 CR08 Creditors Monthly-M08 2021/03/15 Outstanding Matatiele EC441 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Matatiele EC441 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Matatiele EC441 M 2021 DB08 Debtors Monthly-M08 2021/03/15 Outstanding Matatiele EC441 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Matatiele EC441 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Ntabankulu EC444 L 2021 BMQ1 Borrow ing Monitoring-Q1 2020/10/14 Outstanding Ntabankulu EC444 L 2021 BMQ3 Borrow ing Monitoring-Q3 2021/04/16 Outstanding Ntabankulu EC444 L 2021 CR05 Creditors Monthly-M05 2020/12/14 Outstanding Ntabankulu EC444 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Ntabankulu EC444 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Ntabankulu EC444 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Ntabankulu EC444 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Ntabankulu EC444 L 2021 IMQ1 Investment Monitoring-Q1 2020/10/14 Outstanding Ntabankulu EC444 L 2021 IMQ3 Investment Monitoring-Q3 2021/04/16 Outstanding Umzimvubu EC442 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Umzimvubu EC442 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Umzimvubu EC442 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Umzimvubu EC442 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Winnie Madikizela-Mandela EC443 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Winnie Madikizela-Mandela EC443 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Winnie Madikizela-Mandela EC443 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Winnie Madikizela-Mandela EC443 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding
Page 33 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021
Te text here District : Amathole ( DC12 ) Amahlathi EC124 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Amahlathi EC124 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Amahlathi EC124 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Amahlathi EC124 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Amathole DC12 H 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Amathole DC12 H 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Amathole DC12 H 2021 DB05 Debtors Monthly-M05 2020/12/14 Outstanding Amathole DC12 H 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Amathole DC12 H 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Great Kei EC123 L 2021 CR08 Creditors Monthly-M08 2021/03/15 Outstanding Great Kei EC123 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Great Kei EC123 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Great Kei EC123 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Great Kei EC123 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Mbhashe EC121 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Mbhashe EC121 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Mbhashe EC121 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Mbhashe EC121 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Mbhashe EC121 L 2021 IMQ1 Investment Monitoring-Q1 2020/10/14 Outstanding Mnquma EC122 M 2021 BMQ1 Borrow ing Monitoring-Q1 2020/10/14 Outstanding Mnquma EC122 M 2021 BMQ2 Borrow ing Monitoring-Q2 2021/01/15 Outstanding Mnquma EC122 M 2021 CR02 Creditors Monthly-M02 2020/09/14 Outstanding Mnquma EC122 M 2021 CR05 Creditors Monthly-M05 2020/12/14 Outstanding Mnquma EC122 M 2021 CR06 Creditors Monthly-M06 2021/01/15 Outstanding Mnquma EC122 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Mnquma EC122 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Mnquma EC122 M 2021 DB01 Debtors Monthly-M01 2020/08/17 Outstanding Mnquma EC122 M 2021 DB02 Debtors Monthly-M02 2020/09/14 Outstanding Mnquma EC122 M 2021 DB03 Debtors Monthly-M03 2020/10/14 Outstanding Mnquma EC122 M 2021 DB05 Debtors Monthly-M05 2020/12/14 Outstanding Mnquma EC122 M 2021 DB06 Debtors Monthly-M06 2021/01/15 Outstanding Mnquma EC122 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Mnquma EC122 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Mnquma EC122 M 2021 IMQ1 Investment Monitoring-Q1 2020/10/14 Outstanding Mnquma EC122 M 2021 IMQ2 Investment Monitoring-Q2 2021/01/15 Outstanding Ngqushw a EC126 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Ngqushw a EC126 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Ngqushw a EC126 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Ngqushw a EC126 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Raymond Mhlaba EC129 L 2021 CR04 Creditors Monthly-M04 2020/11/14 Outstanding Raymond Mhlaba EC129 L 2021 CR11 Creditors Monthly-M11 2021/06/14 Outstanding Raymond Mhlaba EC129 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Raymond Mhlaba EC129 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Raymond Mhlaba EC129 L 2021 DB03 Debtors Monthly-M03 2020/10/14 Outstanding Raymond Mhlaba EC129 L 2021 DB08 Debtors Monthly-M08 2021/03/15 Outstanding Raymond Mhlaba EC129 L 2021 DB09 Debtors Monthly-M09 2021/04/16 Outstanding Raymond Mhlaba EC129 L 2021 DB12 Debtors Monthly-M12 2021/07/14 Outstanding Raymond Mhlaba EC129 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Raymond Mhlaba EC129 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding District : Chris Hani ( DC13 ) Chris Hani DC13 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Chris Hani DC13 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Chris Hani DC13 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Chris Hani DC13 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Emalahleni (EC) EC136 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Emalahleni (EC) EC136 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Emalahleni (EC) EC136 L 2021 DB01 Debtors Monthly-M01 2020/08/17 Outstanding Emalahleni (EC) EC136 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Emalahleni (EC) EC136 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Engcobo EC137 M 2021 BMQ2 Borrow ing Monitoring-Q2 2021/01/15 Outstanding Engcobo EC137 M 2021 BMQ4 Borrow ing Monitoring-Q4 2021/07/14 Outstanding Engcobo EC137 M 2021 CR04 Creditors Monthly-M04 2020/11/14 Outstanding Engcobo EC137 M 2021 CR07 Creditors Monthly-M07 2021/02/14 Outstanding Engcobo EC137 M 2021 CR09 Creditors Monthly-M09 2021/04/16 Outstanding Engcobo EC137 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Engcobo EC137 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Engcobo EC137 M 2021 DB04 Debtors Monthly-M04 2020/11/14 Outstanding Engcobo EC137 M 2021 DB07 Debtors Monthly-M07 2021/02/14 Outstanding Engcobo EC137 M 2021 DB09 Debtors Monthly-M09 2021/04/16 Outstanding Engcobo EC137 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Engcobo EC137 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Enoch Mgijima EC139 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Enoch Mgijima EC139 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Enoch Mgijima EC139 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Enoch Mgijima EC139 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Intsika Yethu EC135 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Intsika Yethu EC135 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Intsika Yethu EC135 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Intsika Yethu EC135 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Inxuba Yethemba EC131 L 2021 BMQ3 Borrow ing Monitoring-Q3 2021/04/16 Outstanding Inxuba Yethemba EC131 L 2021 CR11 Creditors Monthly-M11 2021/06/14 Outstanding Inxuba Yethemba EC131 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Inxuba Yethemba EC131 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Inxuba Yethemba EC131 L 2021 DB11 Debtors Monthly-M11 2021/06/14 Outstanding Inxuba Yethemba EC131 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Inxuba Yethemba EC131 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Inxuba Yethemba EC131 L 2021 IMQ3 Investment Monitoring-Q3 2021/04/16 Outstanding Sakhisizw e EC138 L 2021 BMQ1 Borrow ing Monitoring-Q1 2020/10/14 Outstanding Sakhisizw e EC138 L 2021 BMQ2 Borrow ing Monitoring-Q2 2021/01/15 Outstanding Sakhisizw e EC138 L 2021 BMQ3 Borrow ing Monitoring-Q3 2021/04/16 Outstanding Sakhisizw e EC138 L 2021 BMQ4 Borrow ing Monitoring-Q4 2021/07/14 Outstanding Sakhisizw e EC138 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Sakhisizw e EC138 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Sakhisizw e EC138 L 2021 DB03 Debtors Monthly-M03 2020/10/14 Outstanding Sakhisizw e EC138 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Sakhisizw e EC138 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding
Page 34 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 District : Joe Gqabi ( DC14 ) Elundini EC141 L 2021 CR07 Creditors Monthly-M07 2021/02/14 Outstanding Elundini EC141 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Elundini EC141 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Elundini EC141 L 2021 DB07 Debtors Monthly-M07 2021/02/14 Outstanding Elundini EC141 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Elundini EC141 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Joe Gqabi DC14 H 2021 BMQ2 Borrow ing Monitoring-Q2 2021/01/15 Outstanding Joe Gqabi DC14 H 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Joe Gqabi DC14 H 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Joe Gqabi DC14 H 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Joe Gqabi DC14 H 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Joe Gqabi DC14 H 2021 IMQ2 Investment Monitoring-Q2 2021/01/15 Outstanding Senqu EC142 M 2021 BMQ2 Borrow ing Monitoring-Q2 2021/01/15 Outstanding Senqu EC142 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Senqu EC142 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Senqu EC142 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Senqu EC142 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Senqu EC142 M 2021 IMQ2 Investment Monitoring-Q2 2021/01/15 Outstanding Walter Sisulu EC145 L 2021 BMQ2 Borrow ing Monitoring-Q2 2021/01/15 Outstanding Walter Sisulu EC145 L 2021 CR09 Creditors Monthly-M09 2021/04/16 Outstanding Walter Sisulu EC145 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Walter Sisulu EC145 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Walter Sisulu EC145 L 2021 DB09 Debtors Monthly-M09 2021/04/16 Outstanding Walter Sisulu EC145 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Walter Sisulu EC145 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding District : O .R. Tambo ( DC15 ) King Sabata Dalindyebo EC157 H 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding King Sabata Dalindyebo EC157 H 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding King Sabata Dalindyebo EC157 H 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding King Sabata Dalindyebo EC157 H 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Mhlontlo EC156 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Mhlontlo EC156 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Mhlontlo EC156 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Mhlontlo EC156 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Ngquza Hills EC153 L 2021 CR03 Creditors Monthly-M03 2020/10/14 Outstanding Ngquza Hills EC153 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Ngquza Hills EC153 L 2021 DB09 Debtors Monthly-M09 2021/04/16 Outstanding Ngquza Hills EC153 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Ngquza Hills EC153 L 2021 IMQ1 Investment Monitoring-Q1 2020/10/14 Outstanding Nyandeni EC155 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Nyandeni EC155 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Nyandeni EC155 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Nyandeni EC155 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding O R Tambo DC15 H 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding O R Tambo DC15 H 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding O R Tambo DC15 H 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding O R Tambo DC15 H 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Port St Johns EC154 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Port St Johns EC154 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Port St Johns EC154 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Port St Johns EC154 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding District : Sarah Baartman ( DC10 ) Blue Crane Route EC102 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Blue Crane Route EC102 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Blue Crane Route EC102 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Blue Crane Route EC102 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Dr Beyers Naude EC101 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Dr Beyers Naude EC101 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Dr Beyers Naude EC101 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Dr Beyers Naude EC101 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Kou-Kamma EC109 M 2021 BMQ2 Borrow ing Monitoring-Q2 2021/01/15 Outstanding Kou-Kamma EC109 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Kou-Kamma EC109 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Kou-Kamma EC109 M 2021 IMQ2 Investment Monitoring-Q2 2021/01/15 Outstanding Kouga EC108 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Kouga EC108 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Kouga EC108 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Kouga EC108 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Makana EC104 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Makana EC104 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Makana EC104 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Makana EC104 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Ndlambe EC105 L 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Ndlambe EC105 L 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Ndlambe EC105 L 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Ndlambe EC105 L 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Sarah Baartman DC10 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Sarah Baartman DC10 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Sarah Baartman DC10 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Sarah Baartman DC10 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Sundays River Valley EC106 M 2021 BMQ4 Borrow ing Monitoring-Q4 2021/07/14 Outstanding Sundays River Valley EC106 M 2021 CR10 Creditors Monthly-M10 2021/05/14 Outstanding Sundays River Valley EC106 M 2021 CRAU Creditors Audited Actuals 2022/01/31 Outstanding Sundays River Valley EC106 M 2021 CRPA Creditors Pre-Audited 2021/09/14 Outstanding Sundays River Valley EC106 M 2021 DB07 Debtors Monthly-M07 2021/02/14 Outstanding Sundays River Valley EC106 M 2021 DB10 Debtors Monthly-M10 2021/05/14 Outstanding Sundays River Valley EC106 M 2021 DBAU Debtors Audited Actuals 2022/01/31 Outstanding Sundays River Valley EC106 M 2021 DBPA Debtors Pre-Audited 2021/09/14 Outstanding Sundays River Valley EC106 M 2021 IMQ4 Investment Monitoring-Q4 2021/07/14 Outstanding Source: NT LG Database
Page 35 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 Annexure E: CONDITIONAL GRANTS, CASH-BANK AND INVESTMENTS QUARTER ENDING 30 JUNE 2021
Conditional Grants, Cash-Bank and Investments Quarter Ending 30 June 2021 Direct Infrastructure Conditional Grants - DoRA Bank Balances and Investments as at 30 June Cond Grant (Over) / Under Cash and Investments Available 2020 2021 Spending as at 30 June 2021 for: Main Allocation Adjusted YTD Actual Exp Bank Recon Short Term Long Term Estimated Estimated Unspent Operations allocation balance as at Invest - 30 Invest - 30 Cond Grants Cond Grants - Conditional After Unspent R thousands Code 30 June 2021 June 21 (Bank June 2021 (Over) Spent Under Spent Grants Cond Grant Statement) (Bank Matatiele EC441 101 527 81 527 81 527 11 284 213 127 - - - 224 410 224 410 Umzimvubu EC442 70 818 70 818 77 135 450 119 444 - (6 317) - 119 894 113 577 Mbizana EC443 77 335 74 251 72 371 9 353 248 808 - - 1 880 258 161 256 281 Ntabankulu EC444 44 915 41 915 41 653 1 666 28 918 - - 262 30 584 30 322 Alfred Nzo DC44 573 284 548 284 356 271 - - - - 192 013 - (192 013) Total Alfred Nzo 867 879 816 795 628 957 22 753 610 297 - (6 317) 194 155 633 049 432 578
Mbhashe EC121 59 595 59 595 56 573 144 104 28 876 814 - - 3 022 172 981 169 959 Mnquma EC122 71 464 85 701 79 171 4 509 123 166 - - 6 530 127 674 121 145 Great Kei EC123 11 208 11 208 11 070 404 5 033 - - 138 5 437 5 299 Amahlathi EC124 27 972 27 972 27 901 (78) 12 959 - - 71 12 881 12 810 Ngqushwa EC126 32 681 29 681 23 300 58 841 - - 6 381 58 841 52 460 Raymond Mhlaba EC129 63 540 55 540 - - - - - 55 540 - (55 540) Amathole DC12 747 686 747 686 464 269 55 798 28 636 5 138 - 283 417 84 434 (198 983) Total Amathole 1 014 146 1 017 383 662 284 263 578 198 670 5 138 - 355 099 462 248 107 149
Inxuba Yethemba EC131 20 524 20 524 19 827 1 214 524 572 - 697 1 739 1 042 Intsika Yethu EC135 57 563 66 916 64 899 1 695 60 523 - 2 017 62 218 60 201 Emalahleni (Ec) EC136 40 543 48 634 48 075 12 509 51 344 - 559 63 853 63 294 Engcobo EC137 61 340 61 340 60 175 104 99 656 - 1 165 99 760 98 595 Sakhisizwe EC138 20 180 20 180 21 036 5 587 11 961 (856) - 17 548 16 692 Enoch Mgijima EC139 57 258 57 258 48 602 2 642 33 638 - 8 656 36 281 27 625 Chris Hani DC13 680 570 680 570 611 227 26 889 97 797 - - 69 343 124 686 55 343 Total Chris Hani 937 978 955 422 873 841 50 641 355 443 572 (856) 82 437 406 085 322 792
Elundini EC141 62 442 58 942 58 172 8 916 99 404 - 770 108 320 107 550 Senqu EC142 38 244 38 244 19 606 1 779 440 267 - 18 638 442 046 423 409 Walter Sisulu EC145 18 772 14 168 6 557 7 256 2 088 316 - 7 611 9 344 1 733 Joe Gqabi DC14 267 976 267 976 232 505 182 4 989 - 35 471 5 171 (30 300) Total Joe Gqabi 387 434 379 330 316 840 18 133 546 748 316 - 62 490 564 881 502 391
Ngquza Hills EC153 56 489 40 825 40 416 - 367 121 - - 409 367 121 366 712 Port St Johns EC154 83 040 34 226 33 540 3 906 499 305 - - 686 503 211 502 525 Nyandeni EC155 66 990 79 849 79 849 83 735 43 945 - - - 127 680 127 680 Mhlontlo EC156 18 259 55 727 55 727 2 147 192 830 - - - 194 977 194 977 King Sabata Dalindyebo EC157 95 395 87 141 87 883 45 749 18 059 - (742) - 63 809 63 067 O .R. Tambo DC15 851 519 851 519 463 802 - - - - 387 717 - (387 717) Total O .R. Tambo 1 171 692 1 149 287 761 217 135 536 1 121 261 - (742) 388 812 1 256 797 867 243
Dr Beyers Naude EC101 54 495 54 495 31 125 1 943 956 - - 23 370 2 899 (20 470) Blue Crane Route EC102 32 753 32 753 17 300 5 453 20 230 614 - 15 453 25 683 10 230 Makana EC104 44 260 44 260 32 814 16 892 3 410 - 11 446 20 302 8 856 Ndlambe EC105 51 535 51 535 46 529 6 765 7 840 - - 5 006 14 605 9 600 Sundays River Valley EC106 35 464 35 464 35 332 4 701 2 148 - 132 6 849 6 717 Kouga EC108 36 778 36 778 26 940 12 878 40 489 - 9 838 53 367 43 529 Kou-Kamma EC109 18 359 18 359 18 301 3 355 - - - 58 3 355 3 297 Sarah Baartman DC10 - - 3 394 100 000 - - - 103 394 103 394 Total Sarah Baartman 273 644 273 644 208 342 55 381 175 074 614 - 65 302 230 455 165 153 Sub-Total Excl Metros 4 652 773 4 591 861 3 451 481 546 022 3 007 493 6 640 (7 915) 1 148 295 3 553 516 2 397 306
Buffalo City BUF 815 934 740 425 336 873 3 501 713 - - - 403 552 3 501 713 3 098 161 Nelson Mandela Bay NMA 1 265 408 1 117 653 326 060 2 411 147 1 117 653 2 737 206 1 619 553 Sub-Total Metros 2 081 342 1 858 078 336 873 3 827 773 2 411 147 - - 1 521 205 6 238 919 4 717 714
Total Eastern Cape 6 734 115 6 449 939 3 788 355 4 373 795 5 418 640 6 640 (7 915) 2 669 499 9 792 436 7 115 020 Source: National Treasury Net Under Spent 2 661 584
36 of 33 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 31 DECEMBER 2020 Annexure F: MINIMUM COMPETENCY REGULATIONS
Table: EC - Minimum Competency Levels (MCL) - 31 March 2021 No. Municipality Accounting Officer Chief Financial Officer Number of Other Senior Managers Total Senior Managers With MCL Without NO MCL NON-DELEGATED 1 Buffalo City Metro a a 6 4 2 2 Nelson Mandela Bay Metro r a 6 2 4 3 OR Tambo District r r 5 4 1 Total positions 3 3 17 Completed 1 2 10 Not Incompleted 2 1 7 ALFRED NZO DISTRICT 1 Alfred Nzo District a a 4 4 0 2 Umzimvubu LM a a 5 4 1 3 Matatiele LM a a 4 3 1 4 Mbizana LM a a 4 3 1 5 Ntabankulu LM a a 4 4 0 Total positions 5 5 21 Completed 5 5 18 Not Incompleted 0 0 3 AMATHOLE DISTRICT 1 Amathole District a a 4 2 2 2 Amahlati LM a a 6 2 4 3 Great Kei LM a a 1 1 0 4 Mbhashe LM a a 5 1 4 5 Ngqushwa LM a a 4 2 2 6 Raymond Mhlaba LM a Acting CFO 2 2 0 7 Mnquma LM a a 5 2 3 Total positions 7 7 27 Completed 7 6 12 Not Incompleted 0 0 15 SARAH BAARTMAN 1 Sarah Baartman District a a 2 2 0 2 Blue Crane Route LM a a 5 5 0 3 Kou Kamma a a 2 1 1 4 Kouga a a 4 4 0 5 Makana a a 3 3 0 6 Ndlambe a a 3 3 0 7 Sundays River Valley a r 2 2 0 8 Dr Beyers Naudé a a 0 0 0 Total positions 8 8 21 Completed 8 7 20 Not Incompleted 0 1 1 CHRIS HANI DISTRICT 1 Chris Hani District a Acting CFO 4 4 0 2 Engcobo LM a a 4 3 1 3 Intsika Yethu LM a a 4 3 0 4 Inxuba Yethemba LM a a 4 0 0 5 Sakhisizwe LM a a 2 2 0 6 Emalahleni (EC) LM a a 4 3 1 7 Enoch Mgijima LM a Acting CFO 7 7 0 Total positions 7 7 29 Completed 7 5 22 Not Incompleted 0 0 2 JOE GQABI DISTRICT 1 Joe Gqabi District a a 5 5 0 2 Elundini LM a a 3 3 0 3 Walter Sisulu LM a a 3 3 0 4 Senqu LM a a 4 3 1 Total positions 4 4 15 Completed 4 4 14 Not Incompleted 0 0 1 OR TAMBO DISTRICT 1 King Sabata Dalindyebo LM a a 8 7 1 2 Mhlontlo LM a a 4 1 3 3 Nyandeni LM a a 3 3 0 4 Port St. Johns LM a a 4 2 2 5 Ingquza Hill LM r a 5 5 0 Total positions 5 5 24 Completed 4 5 18 Not Completed 1 0 6
Provincial Summary Status Accounting Officers Chief Financial Officers Other Senior Managers Other SM with MCL Other SM with No MCL
Total positions 39 39 154 Completed 36 34 114 Not Completed 3 2 35 Acting Capacity 0 3 % Completed 92% 87% 74% % Not Completed 8% 5% 23% % ActingCapacity 0% 8% 0% Source: Eastern Cape Municipal Submissions
Page 37 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 ANNEXURE G: INTEREST CHARGED BY ESKOM
ANNEXURE G - INTEREST CHARGED BY ESKOM - ANALYSES FOR PERIOD 2019/20 AND 2020/21 Municipal Code and Name Quarter 1 Ending 30 September - '000 Quarter 2 Ending 31 December - '000 Quarter 3 Ending 31 March - '000 Quarter 4 Ending 30 June - '000 % % Ytd Q1 - Ytd Q1 - Varience Ytd Q2 - Ytd Q2 - Varience Ytd Q3 - Ytd Q3 - Varience Ytd Q4 - Ytd Q4 - Varience % (Decr) / (Decr) / % (Decr) / Incr (Decr) / No. Code Municipality 2019/20 2020/21 (Decr)/Incr 2019/20 2020/21 (Decr)/Incr 2019/20 2020/21 (Decr)/Incr 2019/20 2020/21 (Decr)/Incr Incr Incr Incr Alfred Nzo District 1 EC441 Matatiele - 0 0 #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 2 EC442 Umzimvubu 1 0 (1) (70.4%) 0 - (0) -100.0% - - - #DIV/0! 1 - (1) -100.0% 3 EC443 Mbizana 3 1 (2) (57.0%) 1 1 - 0.0% 1 1 - 0.0% 1 1 - 0.0% 4 EC444 Ntabankulu 1 0 (1) (67.4%) 1 - (1) -100.0% - 0 0 #DIV/0! - 0 0 #DIV/0! 5 DC44 Alfred Nzo 2 13 11 505.8% 3 16 12 357.6% 21 8 (13) -59.7% 9 27 18 203.6% Amathole District District 6 EC121 Mbhashe 7 0 (7) (98.1%) - 0 0 #DIV/0! - - - #DIV/0! 0 0 0 15.4% 7 EC122 Mnquma - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 8 EC123 Great Kei 367 571 204 55.6% 434 533 98 22.6% 415 593 179 43.1% 469 650 181 38.7% 9 EC124 Amahlathi 694 2 501 1 807 260.3% 1 466 3 104 1 638 111.8% 1 972 3 480 1 508 76.5% 1 960 1 712 (249) -12.7% 10 EC126 Ngqushw a - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 11 EC129 Raymond Mhlaba 36 819 48 924 12 105 32.9% 41 668 50 419 8 751 21.0% 46 696 52 284 5 589 12.0% 47 934 54 268 6 334 13.2% 12 DC12 Amathole 58 60 1 2.2% 24 31 7 31.0% 18 22 4 20.0% 92 55 (37) -40.4% Chris Hani District 13 EC131 Inxuba Yethemba 20 134 31 175 11 042 54.8% 24 219 33 053 8 834 36.5% 28 380 35 163 6 782 23.9% 29 826 36 973 7 147 24.0% 14 EC135 Intsika Yethu - 1 1 #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 15 EC136 Emalahleni (Ec) - 0 0 #DIV/0! - 0 0 #DIV/0! 7 10 4 60.1% 6 32 27 451.9% 16 EC137 Engcobo - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 17 EC138 Sakhisizw e 85 0 (85) (99.6%) 26 - (26) -100.0% 20 44 24 121.0% 43 19 (24) -56.6% 18 EC139 Enoch Mgijima 28 592 43 727 15 135 52.9% 38 024 49 145 11 121 29.2% 38 235 54 746 16 511 43.2% 40 722 61 729 21 006 51.6% 19 DC13 Chris Hani 7 14 6 87.7% 4 0 (4) -93.0% 7 1 (5) -84.0% 25 14 (11) -43.9%
Joe Gqabi District 20 EC141 Elundini - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 21 EC142 Senqu - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 22 EC145 Walter Sisulu 54 297 71 282 16 985 31.3% 61 321 73 217 11 897 19.4% 68 384 75 428 7 044 10.3% 70 152 78 131 7 979 11.4% 23 DC14 Joe Gqabi - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 12 - (12) -100.0%
OR Tambo District 24 EC153 Ngquza Hills 4 2 (2) (55.8%) 0 1 0 78.9% 0 - (0) -100.0% 3 0 (3) -93.2% 25 EC154 Port St Johns - - - #DIV/0! 0 0 (0) -57.1% - - - #DIV/0! - - - #DIV/0! 26 EC155 Nyandeni - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 27 EC156 Mhlontlo 2 - (2) (100.0%) 1 - (1) -100.0% 1 - (1) -100.0% 0 - (0) -100.0% 28 EC157 K.S Dalindyebo 21 488 10 218 (11 270) (52.4%) 26 170 7 313 (18 857) -72.1% 26 714 8 550 (18 165) -68.0% 6 296 8 594 2 298 36.5%
Sarah Baartman District 29 EC101 Dr Beyers Naude 9 434 18 944 9 510 100.8% 9 890 20 667 10 777 109.0% 11 774 22 462 10 689 90.8% 13 214 24 626 11 412 86.4% 30 EC102 Blue Crane Route - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 31 EC104 Makana 970 1 108 138 14.2% 922 1 187 265 28.7% 916 1 263 347 37.9% 1 109 1 307 198 17.8% 32 EC105 Ndlambe 0 0 0.0 119.1% - - - #DIV/0! - - - #DIV/0! - - - #DIV/0! 33 EC106 Sundays River Valley 113 619 506 446.1% 281 26 (256) -90.9% 363 38 (325) -89.6% 495 75 (419) -84.8% 34 EC108 Kouga 2 1 (1) (61.5%) 114 1 (113) -99.3% 2 1 (1) -55.5% 70 70 0 0.0% 35 EC109 Kou-Kamma 6 7 1 9.2% - - - #DIV/0! 0 2 1 1120.4% 2 6 4 201.0% 36 DC10 Sarah Baartman #DIV/0! Total Interest Status 173 089 229 169 56 080 32.4% 204 571 238 714 34 143 16.7% 223 924 254 096 30 172 13.5% 212 441 268 289 55 847 26.3%
Page 38 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021 BID MUNICIPAL SUBMISSION BID SPECIFICATION CLOSING BID EVALUATION ADJUDICATION AWARD NO PROJECT DESCRIPTION DATES ADVERT DATES NAME DATE TO BSC COMMITTEE DATES COMMITTEE DATES COMMITTEE DATES DATES 2020/08/21 Planned 2020/06/17 2020/06/17 2020/07/03 2020/07/24 2020/08/04 2020/08/12
Provision of Sanitation st 1 Joe Gqabi 2021/01/28 (1 sitting) Infrastructure for Ugie: Phase 1 2021/02/16(2nd sitting) Actual 2020/06/24 2020/07/02 2020/07/11 2020/08/03 2021/03/03 2021/03/10 (3rd sitting after return by BAC) Planned 2020/06/05 2020/06/09 2020/06/12 2020/07/03 2020/07/08 2020/07/15 2020/08/26 2 Umzimvubu Phepeni Sport facility Actual 2020/07/22 2020/07/22 2020/07/31 2020/09/11 2020/10/30 2020/10/01 2020/11/02
Planned 2020/05/25 2020/06/08 2020/06/11 2020/07/31 2020/08/21 2020/08/31 2020/09/21 CHDM: Provision Of Bulk Service: 3 Chris Hani Water & Sanitation Rathwick Development phase 4 (Civil) Actual 2020/05/18 2020/06/08 2020/06/11 2020/07/31 2020/09/22 2020/12/17 2020/12/18
Planned 2020/06/22 2020/06/23 2020/06/30 2020/07/30 2020/08/10 2020/08/24 2020/09/01 Fobane Sub-Regional Water 4 Alfred Nzo Supply Scheme - Phase 2 Actual 2020/10/13 2020/10/20 2020/12/03 2021/01/20 2021/02/22 2021/02/24 2021/03/10
Planned 2020/06/12 2020/06/19 2020/06/29 2020/07/17 2020/07/20 2020/07/28 2020/08/21 Upgrading of Marselle Sport-field 5 Phase 2 Actual 2020/06/12 2020/06/19 2020/07/02 2020/07/17 08/09/2020 2020/10/05 2020/10/16 Ndlambe Upgrading of Kenton on Sea Planned 2020/06/12 2020/06/19 2020/06/29 2020/07/17 2020/07/20 2020/07/28 2020/08/21 Sport-field Phase 2 6 Actual 2020/06/12 2020/06/19 2020/07/02 2020/07/17 08/09/2020 2020/10/05 2020/10/16
Development of Magwala Sports 7 Intsika Yethu Planned 2020/06/09 2020/06/12 2020/06/17 2020/07/08 2020/07/10 2020/07/14 2020/08/07 Facility
39 of 33 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 31 DECEMBER 2020 BID MUNICIPAL SUBMISSION BID SPECIFICATION CLOSING BID EVALUATION ADJUDICATION AWARD NO PROJECT DESCRIPTION DATES ADVERT DATES NAME DATE TO BSC COMMITTEE DATES COMMITTEE DATES COMMITTEE DATES DATES
Actual 2020/06/22 2020/07/20 2020/07/24 2020/08/13 2020/08/19 2020/10/05 2020/11/23
Page 40 of 40 CONSOLIDATED MFMA SECTION 71(7) QUARTERLY REPORT AS AT 30 JUNE 2021