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Contacts Financial Performance + - Lekwa B3 local municipality in Gert Sibande, Mpumalanga Population: 115 661 Size: 4 564.9 km² Density: 25.3 / km² Leaflet | Map data © OpenStreetMap contributors, CC-BY-SA Contacts Last updated October 2020 Mayor/Executive Mayor 017 712 9600 Mr LBR Dhlamini Email municipality 017 712 9634 Main Administration Building Cnr B Naude & M Maiyela Street [email protected] Standerton 2430 Secretary of Mayor/Executive Mayor Ms Precious Nonhlanhla Ngcobo 017 712 9635 [email protected] Municipal Manager Ms G P Mhlongo-Ntshangase 017 712 9613 [email protected] Secretary of Municipal Manager Deputy Mayor/Executive Mayor Secretary of Deputy Mayor/Executive Mayor Chief Financial O{cer Secretary of Financial Manager Mrs I Edwards 017 712 9613 [email protected] Financial Performance Audit Outcomes 2018-2019 2017-2018 2016-2017 2015-2016 Disclaimer of opinion Quali}ed Unquali}ed - Emphasis of Unquali}ed - Emphasis of Matter items Matter items No report available Read report Read report Read report What do dizerent audit outcomes mean? Unquali}ed Opinion Unquali}ed Opinion No Findings Emphasis of Matter Items Same as an Unquali}ed Opinion with no }ndings, but the Same as an Unquali}ed Opinion with no }ndings, but the Auditor-General wants to bring something particular to the Auditor-General wants to bring something particular to the attention of the reader. attention of the reader. Quali}ed Opinion Adverse Opinion The Auditor-General expresses reservations about the fair This is expressed when the auditor concludes that the annual presentation of the }nancial statements. There is some }nancial statements do not present the municipality’s }nancial departure from the Generally Recognised Accounting Practices position, results of operations and cash ~ows in line with (GRAP) but is not su{ciently serious as to warrant an adverse Generally Recognised Accounting Practices (GRAP). opinion or disclaimer of opinion. Disclaimer of Opinion An Outstanding Opinion The Auditor-General does not have all of the underlying documentation needed to determine an opinion. For example, Means that the Auditor General raised queries with the the lack of underlying documentation and the amounts in municipality and therefore has not submitted another opinion. question may be so great so that it is impossible to give any opinion on all. Cash Balance 2018-2019 R12 444 370 Cash balance at the end of the }nancial year. R20m About this indicator R 0 A municipality's cash balance refers to the money R−20m it has in the bank that it can access easily. If a municipality's bank account is in overdraft it has a R−40m negative cash balance. Negative cash balances are a sign of serious }nancial management R−60m problems. A municipality should have enough cash on hand from month to month so that it can pay R−80m salaries, suppliers and so on. 2015-2016 2016-2017 2017-2018 2018-2019 Show average for similar municipalities in Mpumalanga or nationally ▶ ▶ How is performance measured? Good Positive balance Bad Negative balance Show calculation Reference: State of Local Government Finances Formula: = Cash available at year end = [Cash Flow] item code 4200, Audited Actual Cash Coverage 2018-2019 0.2 months Months of operating expenses can be paid for 0.3 with the cash available. 0.3 About this indicator 0.2 Cash coverage measures the length of time, in 0.2 months, that a municipality could manage to pay for its day-to-day expenses using just its cash 0.1 reserves. So, if a municipality had to rely on its cash reserves to pay all short-term bills, how long 0.1 could it last? Ideally, a municipality should have at least three months' of cash cover. 0 2015-2016 2016-2017 2017-2018 2018-2019 Show average for similar municipalities in Mpumalanga or nationally ▶ How is performance measured? Good > 3 months Average 1-3 months Bad < 1 month Show calculation Reference: State of Local Government Finances Formula: = Cash available at year end / Operating Expenditure per month = [Cash Flow] item code 4200, Audited Actual / ( [Income & Expenditure] item code 4600, Adjusted Budget / 12 ) Adjusted Budget / 12 ) Spending of Operating Budget 2018-2019 15.3% underspent Dizerence between budgeted operating expenditure and what was actually spent. 10% 5% About this indicator 0% This indicator is about how much more a municipalty spent on its operating expenses, than -5% was planned and budgeted for. It is important that a municipality controls its day-to-day expenses in order to avoid cash shortages. If a municipality -10% sigi}cantly overspends its operating budget this is a sign of poor operating controls or something -15% more sinister. 2015-2016 2016-2017 2017-2018 2018-2019 Overspending by up to 5 percent is usually condoned; overspending in excess of 15 percent is Show average for similar municipalities in Mpumalanga or nationally a sign of high risk. ▶ How is performance measured? Good 0% - 5% Average 5% - 15% Bad > 15% Show calculation Reference: Over and under spending reports to parliament Formula: = ((Actual Operating Expenditure - Budget Operating Expenditure) / Budgeted Operating Expenditure) * 100 = ( ( [Income & Expenditure] item code 4600, Audited Actual - [Income & Expenditure] item code 4600, Adjusted Budget ) / [Income & Expenditure] item code 4600, Adjusted Budget ) * 100 Spending of Capital Budget 2018-2019 13.3% underspent Dizerence between budgeted capital expenditure and what was actually spent. 0% About this indicator -10% -20% Capital spending includes spending on infrastructure projects like new water pipes or -30% building a library. Underspending on a capital budget can lead to an under-delivery of basic -40% services. This indicator looks at the percentage by which actual spending falls short of the budget for -50% capital expenses. Persistent underspending may be due to underresourced municipalities which -60% cannot manage large projects on time. 2015-2016 2016-2017 2017-2018 2018-2019 Municipalities should aim to spend at least 95 percent of their capital budgets. Failure to spend even 85 percent is a clear warning sign. Show average for similar municipalities in Mpumalanga or nationally ▶ How is performance measured? Good 0% - 5% Average 5% - 15% Bad > 15% Show calculation Reference: Over and under spending reports to parliament Formula: = ((Actual Capital Expenditure - Budgeted Capital Expenditure) / Budgeted Capital Expenditure) * 100 = ( ( [Capital] item code 4100, Audited Actual - [Capital] item code 4100, Adjusted Budget ) / [Capital] item code 4100, Adjusted Budget ) * 100 Spending on Capital Projects 2019-2020 About this indicator Project description Budget The capital budget of a municipality consists of Reticulation: Rehabilitation of Rooikoppen network and bulk sewer R6 431 020 the capital projects that the municipality plans to infrastructure do for the next three years arranged under the various functions of the municipal budget. Capital Waste Water Treatment Works: Upgrade Standerton sewer treatment R82 167 projects can be road upgrades, water distribution, works community parks etc, linked to the relevant municipal function. Machinery and Equipment: Machinery & Equipments R672 765 MV Networks: Refurbish bulk and reticulation infrastructure R9 518 312 ▶ Outdoor Facilities: Upgrade of Sports Facilities R3 211 700 Showing 5 of 10 See more for this municipality Spending on Repairs and Maintenance 2018-2019 0.6% Spending on Repairs and Maintenance as a percentage of Property, Plant and Equipment. 2.5% About this indicator 2% Infrastructure must be maintained so that service 1.5% delivery is not azected. This indicator looks at how much money was budgeted for repairs and 1% maintenance, as a percentage of total }xed assets (property, plant and equipment). For every R10 0.5% spent on building/replacing infrastructure, R0.80 should be spent every year on repairs and 0% maintenance. 2015-2016 2016-2017 2017-2018 2018-2019 This translates into a Repairs and Maintenance budget that should be 8 percent of the value of Show average for similar municipalities in Mpumalanga or nationally property, plant and equipment. ▶ How is performance measured? Good > 8% Bad < 8% Show calculation Reference: Circular 71 Formula: = (Repairs and maintenance expenditure / (Property, Plant and Equipment + Investment Property)) * 100 = ( [Capital] item code 4100, Audited Actual / ( [Balance Sheet] item code 1300, Audited Actual + [Balance Sheet] item code 1401, Audited Actual ) ) * 100 Fruitless and Wasteful Expenditure 2018-2019 20.4% Unauthorised, Irregular, Fruitless and Wasteful Expenditure as a percentage of operating expenditure. About this indicator Unauthorised expenditure means any spending that was not budgeted for or that is unrelated to the municpal department's function. An example is using municipal funds to pay for unbudgeted projects. Irregular expenditure is spending that goes against the relevant legislation, municipal policies or by-laws. An example is awarding a contract that did not go through tender procedures. Fruitless and wasteful expenditure concerns spending which was made in vain and 30% would have been avoided had reasonable care 25% been exercised. An example of such expenditure 25% would include paying a deposit for a venue and not using it and losing the deposit. 20% 15% 10% 5% 0% ▶ 2015-2016 2016-2017 2017-2018 2018-2019 Show average for similar municipalities in Mpumalanga or nationally How is performance measured?
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