Mnquma Local Municipality - The council approved … … · Web viewrd of May 2017. T he report...

BUDGET AND TREASURY OFFICE

REPORT TO COUNCIL

OCTOBER 2017

Compiled By: ________________________L. ManjingoloChief Financial Officer

Checked by: _________________________L. NonyongoActing Municipal Manager

Recommended by: ________________________Cllr. L. MgandelaPortfolio Head: BTO

Endorsed by: ________________________Cllr. T. BikitshaExecutive Mayor

1. BUDGET AND TREASURY OFFICE REPORT FOR THE QUARTER ENDING 30 SEPTEMBER 2017

1. PURPOSE

The purpose of the report is to present the implementation of the budget and the financial state of affairs of the municipality for the quarter ending 30 September 2017.

2. LEGAL AND OR STATUTORY REQUIREMENT

(a) In terms of section 71 of the Municipal Finance Management Act No. 56 of 2003 the Accounting Officer has a responsibility to submit to the Executive Mayor within 10 working days the state of the Municipality’s budget.

(b) In terms of section 52(d) of the Municipal Finance Management Act No. 56 of 2003, the Mayor of a municipality must within 30 days of the end of each quarter, submit a report to the council on the implementation of the budget and financial state of affairs of the municipality.

(c) In terms of section 11(4)(a) of the Municipal Finance Management Act No. 56 of 2003, the accounting officer must within 30 days after the end of each quarter table in the municipal council a consolidated report of all withdrawals made during the quarter.

3. BACKGROUND EXPOSITION, FACTS AND OR PROPOSAL

The council approved the budget of the municipality on the 23rd of May 2017.

The report presents the implementation of the approved budget including the financial performance and financial position of the municipality for the period ending 30 September 2017.

The report further gives detail on the implementation of finance related policies as approved by council.

4. OPERATING BUDGET IMPLEMENTATION

The following table summarizes revenue from July 2017 to 30 September 2017:

Description

2016/17 Budget Year 2017/18

Audited Outcome Original Budget YearTD

BudgetYearTD actual

YTD variance

YTD variance

R thousands R'000 R'000 R'000 R'000 R'000 %Revenue By Source

Property rates 19 472 19 472 4 868 5 724 13 748 118%Service charges - refuse revenue 4 100 4 100 1 025 444 3 655 43%Rental of facilities and equipment 2 317 3 203 801 216 2 987 27%Interest earned - external investments 4 500 5 661 1 415 1 187 4 474 84%Interest earned - outstanding debtors 4 525 5 383 1 346 – 5 383 0%Fines, penalties and forfeits 1 000 9 057 2 264 143 8 914 6%Licences and permits 4 283 1 015 254 680 335 268%Agency services 229 071 3 900 975 833 3 067 85%Transfers and subsidies 972 231 062 57 765 94 938 136 124 164%Other revenue 590 1 200 300 319 881 106%Gains on disposal of PPE 1 100 275 – 1 100 0%

Total Revenue (excluding capital transfers and contributions) 273 029 285 153 71 288 97 501 187 652 137%

EXPLANATORY NOTES ON REVENUE

Comparisons of the figures are based on year to date budget (YTD) against year to date income collected.

The municipality has billed R 5 724 000 which is 118% on property rates compared to the targeted billing of R 4 868 000 as per the budget.

The Service charges (refuse collection) billing are 43% compared to the budget. Interest from investments is sitting at 84%.

The transfers recognised are 164% compared to the targeted R57 765 000 with Licence and permits at 268%, agency servies income at 85% and fines income at 6%.

5. COMPARISON BETWEEN AMOUNT BILLED AND COLLECTED AMOUNT FOR THE QUARTER

SERVICE TYPE

BILLING FOR THE QUARTER

R

COLLECTION FOR THE

QUARTERR

VARIANCER

VARIANCE%

Rates 5 723 683 3 427 609 2 296 074 60%

Rental 215 627 113 259 102 368 53%

Refuse 444 404 72 615 371 789 16%

TOTAL 6 383 714 3 613 483 2 770 231 57%

6. EXPENDITURE INCURRED AS PER APPROVED BUDGET FROM 01 JULY 2017 TO 30 SEPTEMBER 2017

Description

2016/17 Budget Year 2017/18

Audited Outcome

Original Budget

YearTD Budget

YearTD actual

YTD variance

YTD variance

R thousands R'000 R'000 R'000 R'000 R'000 %Expenditure By Type

Employee related costs 154 386 175 121 58 374 55 092 120 029 94%Remuneration of councillors 27 021 26 687 6 672 3 656 23 031 55%Debt impairment 3 000 11 893 2 973 1 910 9 983 64%Depreciation & asset impairment 47 099 113 084 28 271 4 291 108 793 15%Finance charges 2 024 940 235 52 888 22%Bulk purchases 7 000 9 039 2 260 1 195 7 844 53%Other materials 6 698 6 376 1 594 311 6 065 20%Contracted services 7 349 10 844 2 711 3 409 7 435 126%Other expenditure 68 551 44 248 11 062 15 775 28 473 143%

Total Expenditure 323 128 398 231 99 558 28 350 369 881 28% Surplus/(Deficit) (50 099) (113 078) (28 270) 69 151 (182 229) -245%Transfers and subsidies - capital (monetary allocations) (National / Provincial and District) 68 776 17 194 3 147 65 629 18%Surplus/(Deficit) after capital transfers & contributions (50 099) (113 078) (28 270) 69 151 (182 229) -245%

7. EXPENDITURE INCURRED PER DIRECTORATE ON SALARIES AND ALLOWANCES AS AT 30 SEPTEMBER 2017

SALARIES, WAGES AND ALLOWANCES

ORIGINAL BUDGET 2017/2018

R

YTD BUDGET 2017/2018

R YTD ACTUAL

2017/2017 R VARIENCE

2016/2017 R

YTD ACTUAL 2016/2017

%

Infrastructural Development & Planning 27 606 384 9 202 128 7 761 454 1 440 674 84 Community Services 58 541 860 19 513 953 17 358 508 2 155 445 89 Corporate Services 29 243 615 9 747 872 9 909 389 -161 517 102 Budget & Treasury Office 25 173 292 8 391 097 7 658 012 733 085 91 Office of the Municipal Manager 9 674 205 3 224 735 2 126 603 1 098 132 66 Strategic Management 9 680 741 3 226 914 3 721 813 -494 899 115 Local Economic Development 7 291 601 2 430 534 2 269 608 160 926 93 Office of the Executive and Speaker 34 595 786 11 531 929 7 942 281 3 589 648 69 TOTAL EXPENDITURE 201 807 484 67 269 161 58 747 668 8 521 493 87

8. DEBT MANAGEMENT

8.1 CONSUMER DEBTORS

Below is a table showing debt owed to the municipality. An amount of R 100 223 259 is still outstanding as at 30 September 2017.

Institution Name Institution Code Amount (R)Dept. of Education 1001 17 447

Dept. of Justice 1002 527 475

Dept. of Health 1003 -

Dept. of Public Works 1004 5 216 143

Councilors 2001 -

Employees 2002 -

ECDC 3000 2 141 907

Butterworth Businesses 3001 19 932 203

Centane Businesses 3002 601 708

Nqamakwe Businesses 3003 1 574 040

Butterworth Residences 4001 80 282

Nqamakwe Residences 4002 1 533 539

Centane Residences 4003 1 276 996

Staff Rental 4004 -

Flats 4005 5 900 631

Cuba 4006 6 841 539

Mchubakazi 4007 6 694 929

Ibika 4008 7 262 085

Town Residences 4009 11 843 023

Msobomvu 4010 8 388 848

Vulli Valley 4011 12 453 760

Zizamele 4012 5 837 235

Coloured 4013 1 346 395

Municipal properties 4014 -

Institution Name Institution Code Amount (R)

Farms 9000 753 073

TOTAL 100 223 259

8.2 DEBTORS AGE ANALYSIS

8.2.1 AGE ANALYSIS PER SERVICE TYPE

TYPE OF SERVICECurrent 30 Days 60 Days 90 Days 120 Days 150 Days Total debt

R R R R R R RRates 837 639 1 681 759 1 608 060 1 533 108 1 508 536 72 938 492 78 096 432Rental 185 218 186 171 191 711 132 529 132 194 1 375 560 2 203 382Refuse 343 589 335 055 334 807 331 677 329 997 18 620 029 20 295 155TOTAL 1 366 447 2 202 985 2 134 577 1 997 314 1 970 727 92 930 467 100 223 259

8.2.2 AGE ANALYSIS OF DEBTORS BY INSTITUTION

INSTITUTION CURRENT 30 DAYS 60 DAYS 90 DAYS 120 DAYS 150 DAYS TOTAL DEBTGovernment 96 371 139 243 138 366 137 285 131 618 5 773 482 5 761 065

Business 435 936 541 489 460 284 358 428 345 806 23 200 429 24 249 858

Households 827 900 1 500 748 1 514 584 1 480 418 1 472 281 63 294 773 69 459 263

Farms 6239 21 504 21343 21 182 21 022 661 783 753 073

TOTAL 1 366 447 2 202 985 2 134 577 1 997 314 1 970 727 92 930 467 100 223 259

8.2.3 AGE ANALYSIS FOR DEBT OWED BY STAFF AND COUCILLORS

AGE ANALYSIS FOR STAFF

Clause 10 of schedule 2 – “A staff member of a municipality may not be in arrears to the municipality for rates and service charges for a period longer than three months and a municipality may deduct any outstanding amounts from staff member’s salary after this period.” There are no staff members owing the municipality for more than three months

AGE ANALYSIS FOR COUNCILLORS

In terms of Section 12A of the Municipal Systems Act, 2000: “A councilor may not be in arrears to the municipality for rates and service charges for a period of longer than 3 months’’. There are no councilors owing the municipality for more than three months.

9. INDIGENT POLICY IMPLEMENTATION FROM 01 JULY 2017 TO 30 SEPTEMBER 2017

9.1 INDIGENT RESIDENTS BENEFITING ON ALTERNATIVE ENERGY

COMPANY NAME

DELIVERED - JULY 17

DELIVERED- AUG 17

DELIVERED – SEPT 17 COMMENT

1BUTTERWORTH (Cluster 1) NO NO NO

Service providers not yet appointed

2NQAMAKWE (Cluster3) NO NO NO


3CENTANE (Cluster 2) NO NO NO


Contract expired, waiting for the appointment of new service providers.

9.2 INDIGENT RESIDENTS BENEFITING ON FREE BASIC ELECTRICITY

JULY 17 AUGUST 17 SEPTEMBER 17

6 806 Households 6 959 Households 6 900 Households

9.3 SUMMARY OF INDIGENTS PER WARD FOR PARAFFIN & ELECTRICITY AS AT 30 SEPTEMBER 2017

WARDNUMBER OF APPLICANTS RATES

ALTERNATIVE SOURCE OF ENERGY( PARAFFIN)

FREE BASIC ELECTRICITY

1 465 1 460 42 759 6 489 2643 402 30 171 2014 360 81 212 675 555 0 495 606 134 108 0 267 461 0 59 4028 569 0 100 4699 421 0 211 21010 311 0 113 19811 566 0 118 44812 369 0 170 19913 495 0 194 30114 594 0 263 33115 1202 0 1202 016 527 0 270 25717 377 0 216 16118 331 0 110 22119 326 0 119 20720 668 0 20 64821 293 0 122 17122 932 0 169 76323 727 0 165 56224 796 0 152 64425 724 0 431 29326 569 0 254 31527 688 0 391 29728 700 0 500 20029 706 0 231 47530 843 0 293 55031 855 0 233 622TOTAL NO 17725 226 7933 9566

10. GOVERNMENT GRANTS RECEIVED AND SPENT AS AT 30 SEPTEMBER 201710.1 INVESTMENTS

The table below shows balances on the municipality’s bank accounts. Bank reconciliations are done and are balanced every month. Interests earned from investments are transferred to the operating account on a monthly basis. These are the cumulative movements as at 30 September 2017.

NAME OPENING DEPOSITS INTERESTINTEREST

TRANSFERREDRedemptions /

Withdrawals CLOSING Municipal Support Programme (MSP) 25 068 360

(366) 25 062

Municipal Infrastructure Grant Investment (MIG) 1 604 254 20 683 000 255 621

(195 788) (2 043 126) 20 303 962

Finance Management Grant (FMG) 1 162 1 700 000 15 345

(7 964) (78 588) 1 629 955

T / A Intervention 23 756 341 (34

7) 23 751

Mnquma Call Account 357 926 85 000 000 782 029 (32 699

267) (33 924 281) 19 516 407

DEAT Investment 225 786 3 245 (3

295) 225 736

Electrification (INEG) 378 242 10 304 (13

812) (372 411) 2 322

EPWP 1 022 579 000 1 954 (72

7) (324 800) 256 449

EDSMG 6 904 589 99 714 (101

224) (48) 6 903 031

LGSETA 400 366 5 716 (5

866) 400

217

TOTAL 9 922 171 107 962 000 1 174 631 (33 028

656) (36 743 254) 49 286 892

10.2 UNSPENT GRANTS AND SUBSIDIES

Unspent grants are reconciled with their relevant accounts on a monthly basis and the expenditure incurred on grant funding is transferred from the investment account to the primary account and revenue is recognized when the expenditure is incurred.

GRANT NAME OPENING BALANCE AS

AT 01 JULY 2017 GRANTS

RECEIVED EXPENDITURE

INCURRED

CLOSING BALANCE AS AT

30 SEPTEMBER 2017

Municipal Support Programme 24 946 - - 24 946 Municipal Infrastructure Grant Investment 1 569 087 20 683 000 (2 492 981) 19 759 105Finance Management Grant - 1 700 000 (117 881) 1 582 119T / A Intervention 23,623 - - 23,623 DEAT Investment 224,691 - - 224,691 Electrification 372 411 - (372 411) -EPWP - 579 000 (463 314) 115 686 EDSMG 6 870 040 - - 6 870 040 LGSETA 398 416 - - 398 416 TOTAL 9 483 214 22 962 000 (3 446 588) 28 998 625

11. ACTUAL BORROWINGS

The table below shows details of loans taken by the municipality, payments made to date and closing balances as at 30 September 2017.

Lessor Description Cash Price Opening Balance

Direct Payments

Interest recognised

Capital Repayment

Outstanding Capital Balance

Toyota Financial Services Toyota Hilux 2.5

225 873 23 443 12 050

468 11 581 11 862


225 873 23 443 12 050

468 11 581 11 862


235 089 24 400 12 541

487 12 054 12 346


225 782 23 434 12 045

468 11 576 11 857

912 616 94 720 48 685 1 892 46 792 47 928

12. CREDITORS AND PAYROLL EXPENDITURE FROM JULY 2017 TO SEPTEMBER 2017

12.1 AMOUNT PAID TO CREDITORS FROM JULY 2017 TO SEPTEMBER 2017

JULY AUGUST SEPTEMBER TOTAL

R 7 035 064.55 R 7 076 188.85 R 6 631 155.09 R 20 742 408.49

12.2 SALARIES AND ALLOWANCES FROM JULY 2017 TO SEPTEMBER 2017

EXPENDITURE JULY AUGUST SEPTEMBER TOTALSalaries 10 833 921 10 114 925 10 197 984 31 146 829Salaries Councillors 1 151 033 1 165 884 1 165 884 3 482 800Traditional Leaders 29 750 86 700 56 950 173 400Audit Committee 13 800 15 249 50 000 79 049Unpaid leave -8 622 -3 704 -21 192 -33 517Wages (casuals) 163 200 161 600 138 514 463 314Wages (stipend) 308 000 308 000 308 000 924 000Bonus 137 438 37 059 9 654 235 9 828 733Leave Pays 0 52 127 42 481 94 609Overtime 14 446 67 287 48 708 130 441Housing Subsidy 10 388 10 388 10 388 31 164Travel 606 104 606 104 613 869 1 826 077Data Card 17 400 18 000 18 000 53 400M/Vehicle 377 077 382 028 382 028 1 141 132Other Allowance 502 420 443 091 339 419 1 284 930Pension 1 807 236 1 811 610 1 813 499 5 432 344Med. Aid 689 701 693 962 690 743 2 074 407Uif 73 316 72 528 72 034 217 879TOTAL 16 726 609 16 042 838 25 581 545 58 350 992

13. CAPITAL AND OPERATING PROJECTS AS AT 30 SEPTEMBER 2017

13.1 CAPITAL PROJECTS PER DIRECTORATE

DIRECTORATE

PROPOSED BUDGET

2017-2018 ACTUAL TO DATE VARIENCE % VARIENCE Local economic development 100 000 0 100 000 0% Strategic management 50 000 22 370 27 630 45% Infrastructural planning and development 65 614 350 3 385 700 62 228 650 5% Community services 325 540 41 386 284 154 13% Budget and treasury 271 233 46 224 225 009 17% Corporate services 370 000 171 690 198 310 46% TOTAL PER DIRECTORATE 66 731 123 3 667 370 63 063 753 5%

13.2 CAPITAL PROJECTS PER FUNDING SOURCES

FUNDING SOURCES

PROPOSED BUDGET

2017-2018 ACTUAL TO DATE VARIENCE % VARIENCE Equitable share 2 222 774 281 664 1 941 110 13% Intergrated national electrification plan 5 000 000 1 182 079 3 817 921 24% Municipal infrastructure grant 59 508 350 2 203 620 57 304 730 4% CAPITAL PROJECTS PER FUNDING 66 731 124 3 667 364 63 063 760 5%

13.3 CAPITAL PROJECTS PER CLUSTER

CLUSTER

PROPOSED BUDGET

2017-2018 ACTUAL TO

DATE VARIENCE % VARIENCE Basic Service Delivery and Infrastructure 65 939 890 3 427 086 62 512 804 5% Financial Viability 271 234 46 224 225 010 17% Good governance and Public Participation 50 000 22 364 27 636 45% Local Economic Development 100 000 0 100 000 0% Municipal Transformation and Institutional Development 370 000 171 690 198 310 46% TOTAL PER CLUSTER 66 731 124 3 667 364 63 063 760 5%

The tables above illustrate that Capital project expenditure to date is 5% compared to the budget.

13.4 OPERATING PROJECTS PER DIRECTORATE

DIRECTORATE

PROPOSED BUDGET

2017-2018 ACTUAL TO

DATE VARIENCE % VARIENCE Office of the municipal manager 200 000 22 668 177 332 11 Local economic development 309 000 0 309 000 0 Strategic management 2 454 000 527 926 1 926 074 22 Infrastructural planning and development 5 900 650 1 453 543 4 447 107 25 Community services 1 635 640 268 440 1 367 200 16 Budget and treasury 4 026 461 980 483 3 045 978 24 Corporate services 2 275 000 361 154 1 913 846 16 TOTAL PER DIRECTORATE 16 800 751 3 614 214 13 186 537 22

13.5 OPERATING PROJECTS PER FUNDING SOURCE

FUNDING SOURCES

PROPOSED BUDGET 2017-2018

ACTUAL TO DATE VARIENCE % VARIENCE

Equitable share 9 600 101 1 338 826 8 261 275 14 Finance management grant 1 700 000 821 846 878 154 48 Municipal infrastructure grant 3 184 650 990 228 2 194 422 31 Expande public works programme 2 316 000 463 314 1 852 686 20 CAPITAL PROJECTS PER FUNDING 16 800 751 3 614 214 13 186 537 22

13.6 OPERATING PROJECTS PER CLUSTER

CLUSTER

PROPOSED BUDGET 2017-2018

ACTUAL TO DATE VARIENCE % VARIENCE

Good Governance and Public Participation 2 654 000 550 624 2 103 376 21 Financial Viability 4 226 461 1 166 185 3 060 276 28 Basic Service Delivery and Infrastructure Development 4 791 000 638 737 4 152 263 13 Local Economic Development 309 000 0 309 000 0 Municipal Transformation and Institutional Development 3 184 650 990 228 2 194 422 31 Socio-Economic 1 635 640 268 440 1 367 200 16 TOTAL PER CLUSTER 16 800 751 3 614 214 13 186 537 22

The tables above illustrate that operating project expenditure to date is 22% compared to the budget.

14. GOVERNMENT GRANTS RECEIVED The municipality on yearly basis is allocated with funds from the Division of Revenue Act (DoRA), a letter of allocation was received and as at 30 September 2017 the municipality has received R 117 555 000. Interest earned from these grants is transferred to operating bank account on monthly basis. Below is the detail of grants received to date.

Allocation as per DoRA Allocation as per DoRA Actual Received

Date Received

MIG 63 693 000.00 20 638 000.00 17-07-2017 TOTAL 63 693 000.00 20 638 000.00 Minerals & Energy (INEG) 5 000 000.00 TOTAL 5 000 000.00

Equitable share 227 129 000.00 94 638 000.00 07-07-2017 TOTAL 227 129 000.00 94 638 000.00

FMG 1 700 000.00 1 700 000.00 26-07-2017 TOTAL 1 700 000.00 1 700 000.00

EPWP 2 316 000.00 579 000.00 15-08-2017 TOTAL 2 316 000.00 579 000.00 TOTAL 299 838 000.00 117 555 000.00

15. IMPLEMENTATION OF SCM POLICY

Demand management

1) Procurement Plan

Supply Chain Management division has coordinated the development of 2017/2018

procurement plan in consultation with end-user directorates through IDP directorate

sessions. The municipal directorates’ annual procurement plans were linked to the

annual budget, and were consolidated to be the municipal annual procurement plan for

2017/2018 financial year.

2) Implementation of the 2017/2018 procurement plan

A spread sheet of advertised tenders for the quarter: July 2017 – September

2017

Tender No Advert Date Description Closing Date

MNQ/49/16-17 27 July 2017 Compilation of Immovable

Asset Register for 2016-2017

Financial year

12 July17

MNQ/48/16-17 27 July 2017 Preparation of AFS & Movable

Asset Register for

12 July 17

SCM/MNQ/ 10-16/17-18

15 August 2017 Supply and Delivery of Paraffin for Cluster 1-7

24-25 September 2017

SCM/MNQ/21/17-18 28 August 2017 Training of 72 councillors and Traditional Leaders on Leadership Skills

07 September 2017

SCM/MNQ/22/17-18 28 August 2017 Training of 72 councillors and Traditional Leaders on Reporting Skills

07 September 2017

SCM/MNQ/22/17-18 28 August 2017 Training of 72 Councillors on Presentation Skills

07 September 2017

SCM/MNQ/08/17-18 30 August 2017 Municipal Finance Management Programme

11 September 2017

SCM/MNQ/23/17-18 30 August 2017 Training of seventy-two (72) Councillors and Traditional Leaders on Policy Development and Implementation

11 September 2017

SCM/MNQ/09/17-18 28 September 2017

Training of General Workers and Office Assistants on Occupational Health and Safety

08 September 2017


Training of 35 Office Assistants on Customer care

06 September 2017


Learnership Programme for thirteen (13) MPAC Members

11 September 2017


Supply and Delivery of Diaries 20 September 2017


Supply and Delivery of Calendars

20 September 2017

SCM/MNQ/07/17-18 29 August 2017 Supply, Delivery and Installation of Office Door and Indoor Directional Signage’s

08 September 2017


Radio Broadcast Services 29 September 2017

SCM/MNQ/09/17-18 29 August 2017 Design, Delivery and Installation of Mnquma Local Municipality Sign Boards

08 September 2017

Deviations – Regulation 36

Description Amount Service provider

Reasons for Deviation Responsible Department

Services for Grader - FNY 738 EC

R 12 657.65

Peugair Border cc

The Grader for FNY 738 EC is the product of Peugair Border cc and needs service. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations

Budget &

Treasury

Repairs for Lowbed Trailer

R 20 451.65

TFM Manufacturing

The Lowbed Trailer for FWR 647 EC is the product of TFM Manufacturing and needs repairs. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Budget &

Treasury

Services and Repairs of TLB -HLH 282

R 6 815.28

Bell Equipment

The TLB for HLH 282 EC is the product of Bell Equipment and needs service/ repairs at Bell Equipment. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Budget &

Treasury

Service for Mnquma 2 EC

R 5 133.10

Buffalo Toyota

The Toyota Hilux for MNQUMA 2 EC is the product of Buffalo Toyota and needs a service at Buffalo Toyota. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Budget & Treasury

Repairs for R 12 Buffalo The Toyota Hilux for MNQUMA 3 Budget &



Mnquma 3 EC

984.85 Toyota EC is the product of Buffalo Toyota and needs a service and repairs at Buffalo Toyota. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Treasury

Renewal of caseware software

R 72 711.48

Adapt IT (Pty) Ltd

The Adapt IT (Pty) Ltd is the only service provider that provides a caseware software license that is used by Mnquma Local Municipality in preparing GRAP compliant financial statements. Therefore the reason for deviation is based in terms of SCM regulation 36 (i) (a) (ii) that allows the accounting officer to deviate if such goods or services are produced or available from a single provider only.

Budget & Treasury

Services and Repairs of TLB -HLH 282

R 6 815.28

Buffalo Toyota

The TLB for HLH 282 EC is the product of Bell Equipment and needs service/ repairs at Bell Equipment. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Budget & Treasury

Service for Mnquma 5 EC

R 6 239.70

Buffalo Toyota

The Toyota Hilux for MNQUMA 5 EC is the product of Buffalo Toyota and needs a service at Buffalo Toyota. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Budget & Treasury

Repairs for R 32 East London The Water Tanker for FXZ 839 EC Budget &



Water Tanker FXZ EC

431.32 Bus & Truck is the product of East London Truck & Bus and needs repairs at East London Truck & Bus. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Treasury

Service for Toyota Corolla FCX 571 EC

R 2 771.70

Buffalo Toyota

The Toyota Corolla for FCX 571 EC is the product of Buffalo Toyota and needs a service at Buffalo Toyota. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Budget & Treasury

Repairs for a Grader

R 7 504.62

Peugair Border cc

The Grader for FNY 738 EC is the product of Peugair Border cc and need repairs at Peugair Border. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Budget & Treasury

Repairs for Lowbed Trailer FWR 647

R 16 621.20

TFM Manufacturing (Pty) Ltd

The Lowbed Trailer for FWR 647 EC is the product of TFM Manufacturing (Pty) Ltd and need repairs at TFM Manufacturing (Pty) Ltd. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Budget & Treasury

Repairs for a Grid Roller

R 19 879.00

Bell Equipment

The Grid Roller is the product of Bell Equipment and need repairs

Budget & Treasury



at Bell Equipment. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations).

Replacement of server room UPS batteries

R 82 194.00

CHM Vuwani Computer Solutions

The request for formal quotations for the Replacement of Server Room UPS Batteries was advertised for seven (7) days on the notice boards and municipal website but there was only one (01) quotation received, which is CHM Vuwani Computer Solutions (EC) (Pty) Ltd. Therefore the reason for deviation is based in terms of SCM regulation 36 (i) (a) (ii) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To obtain three written quotations).

Budget & Treasury

Bids Awarded Register

NO

BID/TENDER NUMBER

DATE ADJUDICATED

DATE APPOINTED

DESCRIPTION

APPOINTED BIDDER

BID AMOUNT (R)

DURATION OF CONTRACT

1. MNQ/SCM/27/16-17

28/06/2017 07/07/2017 Provision of Comprehensive insurance cover

Marsh (Pty) Limited

583 075.00 01 year

2. MNQ/SCM/20-16-17

08/08/2017 08/08/2017 Supply & Installation Fleet Management System

Tracker Connect (Pty) Ltd

788 340.00 03 years

3. MNQ/SCM/

08/08/2017 08/08/2017 Preparation of GRAP

Audit & Risk Manageme

942 549.00 06 Months

48/16-17 Compliant Annual Financial Statements, Movable Asset Register, and Review of Performance Management Report for 2016/2017 Financial Year

nt Solutions (Arms –Audit)

4. MNQ/SCM/49/16-17

08/08/2017 08/08/2017 Compilation of Immovable Asset Register for 2016/2017 Financial Year

Morar Incorporated

623 044.00 06 Months

16. IMPLEMENTATION OF ASSET MANAGEMENT POLICY

16.1 PROPERTY PLANT AND EQUIPMENTThe following table is for the institutions asset register as well as additional assets purchased as at 30 September 2017:

CLASSES OF ASSETSOPENING BALANCE AS AT 01 JULY 2017

ADDITIONS SEPTEMBER 2017

DISPOSALS AS AT SEPTEMBER 2017

CLOSING BALANCE AS AT SEPTEMBER 2017

Land 21 925 964 - - 21 925 964

Plant and Equipment 11 290 487 - - 11 290 487

Furniture and Fixtures 2 019 186 8 183 - 2 027 369

Motor Vehicles 9 635 340 - - 9 635 340

Office Equipment 4 125 087 13 794 - 4 138 881

Infrastructure 667 068 598 - - 667 068 598

Community facilities 90 685 725 - - 90 685 725

Security measures 83 217 - - 83 217

Housing development fund - - -

Work in progress 40 476 192 854 101 - 41 330 293

Total 847 309 796 876 078 - 848 185 874

16.2 IMPLEMENTATION OF FLEET MANAGEMENT POLICY

The policy is intended to manage the municipal’s fleet. On monthly basis directorates are required to submit the compliance reports such as trip authorities and log books. Repairs and maintenance of vehicles is also managed within the directorate. An amount of R 702 236 has been spent on fuel during the quarter ending 30 September 2017.

16.2.1 FUEL EXPENDITURE PER DIRECTORATE

Directorates Jul-17 Aug-17 Sep-17 Total Infrastructural Planning and Development 131 953 95 653 125 097

352 702

Community Services 93 260 90 119 60 160 24

3 539

Office of the Municipal Manager 228 7 211 6 437 1

3 876

Office of the Speaker 3 871 22 519 12 254 3

8 645

Office of the Executive Mayor 7 405 13 088 7 653 2

8 146

Pool 3 523 6 669 3 270 1

3 462

Strategic Management 1 210 695 2 160

4 065

Corporate Services 2 240 2 985 -

5 226

BTO 114 726 1 734

2 574

Total 243 805 239 666 218 765 70

2 236

16.2.2 REPAIRS AND MAINTENANCE PER DIRECTORATE

An amount of R 574 786 has been spent on repairs and maintenance during the quarter. This is reflected below:

DIRECTORATE JULY AUGUST SEPTEMBER Total Infrastructural Planning and Development 118 125 96 520 108 811 323 456

Community Services 131 518 46 240 71 746 249 503 Office of the Municipal Manager - - - - Office of the Speaker - - - - Office of the Executive Mayor - - - - Pool 1 277 - 550 1 827

Strategic Management - - - - Bto - - - - TOTAL 250 920 142 759 181 107 574 786

17. Staff Implications

None

18. Financial Implications

This report details the implementation of the approved budget and related policies.

19. Annexures

1. Bank reconciliations as at 31 July 20172. Detailed capital projects as at 30 September 20173. Detailed operating projects as at 30 September 20174. Schedule of payments from 01 July 2017 to 30 September 20175. Cash withdrawal report from 01 July 2017 to 30 September 2017

20. Recommendations

It is hereby recommended that the Council approves the report for the quarter ending 30 September 2017 for onward transmission to Council.

Mnquma Local Municipality - The council approved … … · Web viewrd of May 2017. T he report...

Documents

Transcript of Mnquma Local Municipality - The council approved … … · Web viewrd of May 2017. T he report...