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MBIZANA LOCAL MUNICIPALITY
QUARTERLY REPORT
REPORT IN TERMS OF s52d OF THE MFMA FOR THE QAURTER
ENDED 31 MARCH 2020
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Table of Contents
1. Executive Summary ........................................................................................................................... 3
1.1 The Political Oversight ...................................................................................................................... 3
2. Administration .................................................................................................................................. 4
3. Staff turnover .................................................................................................................................... 4
4. Implementation of mSCOA ............................................................................................................... 5
5. 2018/19 Audit Action Plan Implementation ..................................................................................... 6
6. Implementation of the Municipal Cost containment regulations .................................................... 7
a. Supply and Delivery of Municipal Vehicles ....................................................................................... 8
7. Strategic Objectives .......................................................................................................................... 9
8. In-year budget statement tables .................................................................................................... 10
9. Capital programme performance ................................................................................................... 22
10. Supply chain management .............................................................................................................. 24
a. Acquisition management ................................................................................................................ 24
b. Procurement requests below R2000.00 ......................................................................................... 25
c. Procurement requests above R2, 000.00 but below R30, 000.00 .................................................. 30
d. Procurement above R30 000 but below R200 000 ......................................................................... 38
11. Status of Tenders ............................................................................................................................ 41
12. Database rotation ........................................................................................................................... 45
Part 2 – supporting documentation ............................................................................................................ 48
1. The impact of COVID-19 to the municipality .................................................................................. 48
2. Debtors’ analysis ............................................................................................................................. 50
3. Creditors’ analysis ........................................................................................................................... 51
4. Investment portfolio analysis ......................................................................................................... 51
5. Allocation and grant receipts and expenditure .............................................................................. 53
6. Cash flow Statement ....................................................................................................................... 55
7. Statement of Financial Position ...................................................................................................... 56
8. Municipal Manager’s quality certification ...................................................................................... 57
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Part 1 – in-year report
1. Executive Summary
The Budget and Treasury Office has a responsibility of reporting on the performance of the municipality
against its approved budget. This must also take into account the service delivery performance of the
municipality, indicating remedial actions where variances have been identified.
Section 52(d) of the Municipal Finance Management Act No 56 of 2003 requires that a quarterly report
must be prepared at tabled to council within 30 days of the end of the quarter. The information as
contained in this report responds specifically to that, but as well provides the council with enough
information to play the oversight role, whilst providing the required direction where it is needed.
The municipality is currently experiencing huge pressure due to the demands from communities for
electrification and maintenance of existing roads. Although significant strides have been made in
ensuring that the backlogs are addressed, there is still significant ground to cover and this requires
significant financial resources from the municipality. This places a lot of pressure on the resources for all
service delivery and as such, a delicate balancing act must be carried out to ensure that all service
delivery requirements are met.
All departments have prepared their quarterly performance reports relating to service delivery and
other items. This is then submitted to the Internal Audit Unit for verification and assessment of
attached portfolio of evidence. This gives the information reported more credibility, and where
inadequate evidence is provided, it is corrected.
1.1 The Political Oversight
The Budget and Treasury Office standing committee is composed of the honourable councillors
indicated below with their respective responsibilities within the department as follows:-
• Cllr L. Makholosa Chairperson
• Cllr M. Qumba Supply Chain Management
• Cllr R.T Nkomo-Khwela Revenue & Expenditure
• Cllr. N Madikizela Budgeting & Reporting
• Cllr. N. Giyama-Bongwana Budgeting & Reporting
• Cllr N. Sipatala Supply Chain Management
• Cllr M. Dlamini Asset Management
• Cllr N. Sikiti
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2. Administration
The municipality has been implementing mSCOA like all municipalities in the country as a business
reform since its introduction from 1 July 2017. This was introduced to address among other things
ensuring standardisation of treatment of transactions and reporting across all municipalities, to
encourage proper planning and put controls in terms of revenue and expenditure management.
Introduction of new and improved versions of the mSCOA chart has proven to present problems that
sometimes make it impossible to operate normally requiring some extra effort to be put into the
operations of the municipality to fulfil its service delivery mandate.
3. Staff turnover
The expenditure section within the Budget and Treasury department was hit by a number of incidents
that lead to the section operating with a lesser number of employees than is required. The section is
divided into Capital and General expenditure with each subdivision having an accountant and a clerk.
During the month of January, we were reporting an unfortunate incident that lead to one of the
personnel being hospitalised. We can, however now report that the employee has resumed with her
duties which has brought the much-needed relief to the section. The accountant general expenditure
assumed duty during the month after interviews were and the municipality concluded verification of
qualifications as required for each employee. This has affected the municipality’s ability to process and
settle payments within the stipulated timeframes requiring more effort and hours to be put in.
The feeling of the vacancy has unfortunately resulted in a vacancy again in the section as the successful
candidate was employed as the clerk in the same section.
The Asset and Supply Chain management section has not been spared from similar challenges as we the
Asset Management Officer position remains vacant after the resignation and departure of the
incumbent who occupied the position. Recruitment processes have commenced, and we expect and
hope this will be attended to speedily. The Asset Management Officer position is unfortunately not the
only vacant position as we have also recently received news of the resignation of the Stores Officer who
departed at the end of March 2020 to join another institution.
In summary the following are the vacant positions within the department:
• General Expenditure Clerk
• Asset Management Officer
• Stores Officer
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4. Implementation of mSCOA
As mentioned in the executive summary of the report, the municipality is implementing mSCOA as
required. Following are some of the challenges that the implementation has posed to the municipality:
a) Challenges Identified
i. Version Changes
On an annual basis, the mSCOA chart is reviewed to address implementation challenges and correct
chart related errors. Towards this end, version 6.4 is released with MFMA Circular 98.
Since the introduction of mSOCA, National Treasury has introduced a number of chart versions with the
latest version referred to as 6.4 which will be used for the draft budgets and corrections made to the
draft budget as per the budget engagements that will be held with Provincial Treasury during the month
of April 2020.
The version has introduced a number of changes which will pose new challenges to the way the
municipality does business and records transactions. We will however examine the new chart to
understand the full extent of the changes and their anticipated impact thereof.
This has taught us that there does not seem to be any plan on the side of the system vendors and
Treasury themselves to ensure that the information gets transferred in a uniform manner as we find
that some municipalities do not face the same challenges as others while others only realise when we
raise these issues that they have similar challenges.
ii. Payroll interface
As part of the mSCOA system requirements, all accredited system vendors were required to
demonstrate that they financial systems have as they integral part the ability to integrate with payroll
systems that are used generally by the municipalities.
The municipality currently uses Munsoft as its accounting system and VIP as its payroll system which
both have confirmed seamless integration between the two. The purpose of this integration is to ensure
that payroll information is directly transferred into the accounting system with very little human
intervention if any at all.
We have noted that every time there is new chart version introduced the systems require a completely
new setup to ensure their integration. This has the potential to affect our employee cost reporting for
the upcoming financial year.
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iii. Production of in-year reports
All approved system vendors were required to have a functionality to produce all statutory reports to
avoid municipalities having to prepare these manually. Munsoft was approved as one of the service
providers on the strength that they indicated they use Caseware to produce these reports which the
municipality also has access to. The utilisation of these two systems does however require some work
and setting up to ensure they fully integrate which was successfully addressed. Parts of this report have
been prepared using the system even though there are parts that require manual population which is
how the templates are setup.
iv. Budget and reporting module functionality
The budget module of the system that the municipality uses has been discovered to only work well with
income and expenditure other modules like balance sheet and cashflow budgeting still continue to
produce unreasonably incorrect reports which we have not been able to submit without first doing
manual recalculations using the information that we have. This challenge seems however, to have been
addressed from the adjustment budget processes and we will be analysing further to check consistency.
Even though attempts are being made to ensure that all system vendors get their systems working as
required when it comes to the balance sheet and cashflow budget, there is however consensus that the
principles and information required to produce these are currently subject to discussions and revisions
required.
There are a number of trainings setup by both Treasury and system vendors on the balance sheet and
cashflow budgeting which we have attended as the municipality to ensure full compliance during the
adjustments budget and all other subsequent budgets.
5. 2018/19 Audit Action Plan Implementation
The 2019 audit was concluded with the municipality retaining the unqualified audit opinion that has
been received over the past four years.
An audit action plan has been prepared and presentated to the executive committee and subsequently
the council for adoption and implementation. The end of January marks the first month of
implementation. The following is a summary of the items that have been implemented:
• Specification committee includes a member from Engineering services
• New specification templates developed
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• Monthly monitoring reports submitted to SCM
• All payments to be processed only if accompanied by a monitoring or progress report
We would however like to report that the difficulty we find ourselves faced with when it comes to
departments submitting the monthly monitoring reports as was agreed and committed. We will be
sending a report to the Municipal manager on departments that have not submitted the required
reports.
6. Implementation of the Municipal Cost containment regulations
During the month of June 2019, the minister of finance approved Municipal Containment regulations
effective from 1 July 2019. The regulations required municipalities to develop, adopt and implement
policies as part of its budget related policies to support cost containment measures. These regulations
were unfortunately approved after the municipal budget processes had been concluded which made it
difficult for municipalities to develop these policies at such a short space of time. The council of Mbizana
local municipality has since developed and adopted a policy on cost containment that is now being
implemented.
The municipality has since implemented the following:
• No catering for all meetings taking less than 5 hours
• No catering for all meetings held by only staff members regardless of the duration of the
meeting
• All accommodation arrangements set within the limits as communicated
• All sporting activities have been discontinued.
The implementation of these regulations has seen a reduction in the amounts spend on traveling and
accommodation and catering expenses which we believe will assist the municipality to redirect these
funds to other service delivery initiatives.
QUARTER 3
ITEM DESCRIPTION 2019 2020 SAVING
Travel and accommodation
Catering
Sponsorship (Sport development)
Sport Activities (SAIMSA)
Consulting fees
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QUARTER 3
ITEM DESCRIPTION 2019 2020 SAVING
Total
a. Supply and Delivery of Municipal Vehicles
As part of the cost containment regulations municipalities were directed to utilise the transversal
contracts entered into and negotiated by National Treasury to procure municipal vehicles. Municipalities
are only allowed to procure vehicles using any other means only if they can demonstrate that they will
get the vehicles cheaper when using their own procurement processes. The municipality has applied to
participate in the transversal contract for procurement of municipal vehicles with National Treasury and
approval has been granted.
The municipality is now in the process of gathering more information on how to then submit the
requests for delivery of vehicles. This means that all advertisements for this procurement will now be
cancelled and completely discontinued.
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7. Strategic Objectives
The municipality developed strategies for the next five years from which short-term operational plans and targets talking to at least a period of
one financial year. This is done in the form of the Service Delivery and Budget Implementation Plan (SDBIP) which was approved by the mayor
within 30 days after the adoption of the annual budget by the municipal council. The table below gives a summary of the SDBIP with the targets
that the departments will be working to achieve on a quarterly basis. The table shows the municipality’s performance for the period ended to
ensure they are monitored and achieved at the end of the financial year:
A detailed report will be presented separately to give context to the performance recorded above.
DEPT/KPA TOTAL NUMBER OF
TARGETS
TARGETS
REPORTED
TARGETS
ACHIEVED
TARGETS NOT
ACHIEVED
ACHIEVEMENT
PERCENTAGE
COLOUR CODING FOR
OVERALL PERFORMANCE
MUNICIPAL MANAGER’S OFFICE 30 27 21 9 77
CORPORATE SERVICES DEPARTMENT 9 9 8 1 89
ENGINEERING SERVICES DEPARTMENT 24 24 21 3 88
COMMUNITY SERVICES DEPARTMENT 22 22 18 4 81
DEVELOPMENT PLANNING DEPARTMENT 21 21 14 7 67
BUDGET & TREASURY OFFICE 15 15 13 2 87
OVERALL PERFORMANCE 121 118 95 26 81
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8. In-year budget statement tables
a) Budget Statement Summary
EC443 Mbizana - Table C1 Monthly Budget Statement Summary - Q3 Third Quarter2018/19
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands %
Financial Performance
Property rates 18 967 24 796 24 796 894 18 570 18 597 (27) -0% 24 796
Service charges 35 685 42 067 40 067 2 580 24 717 30 050 (5 333) -18% 40 067
Investment revenue 8 772 9 617 9 917 802 7 435 7 438 (3) -0% 9 917
Transfers and subsidies 235 075 268 837 268 837 65 302 265 429 201 628 63 801 32% 268 837
Other own revenue 31 397 12 668 12 852 914 10 994 9 639 1 354 14% 12 852
Total Revenue (excluding capital transfers and
contributions)
329 895 357 985 356 470 70 491 327 145 267 352 59 793 22% 356 470
Employee costs 102 675 108 674 108 225 8 427 74 846 81 168 (6 322) -8% 108 225
Remuneration of Councillors 23 244 25 263 24 263 1 921 17 392 18 197 (805) -4% 24 263
Depreciation & asset impairment 41 890 50 872 50 872 3 610 32 478 38 154 (5 676) -15% 50 872
Finance charges 66 400 400 – 11 300 (289) -96% 400
Materials and bulk purchases 35 276 46 349 44 765 3 608 27 860 33 574 (5 714) -17% 44 765
Transfers and subsidies 702 1 130 1 530 340 1 230 1 147 83 7% 1 530
Other expenditure 118 122 202 874 243 336 11 526 149 841 182 502 (32 661) -18% 243 336
Total Expenditure 321 975 435 561 473 390 29 432 303 659 355 042 (51 383) -14% 473 390
Surplus/(Deficit) 7 920 (77 576) (116 920) 41 059 23 486 (87 690) 111 176 -127% (116 920)
Transfers and subsidies - capital (monetary allocations) (National / Provincial and District)85 899 79 602 85 729 4 394 52 905 64 296 (11 392) -18% 85 729
Contributions & Contributed assets – – – – – – – –
Surplus/(Deficit) after capital transfers &
contributions
93 820 2 026 (31 192) 45 454 76 391 (23 394) 99 784 -427% (31 192)
Share of surplus/ (deficit) of associate – – – – – – – –
Surplus/ (Deficit) for the year 93 820 2 026 (31 192) 45 454 76 391 (23 394) 99 784 -427% (31 192)
Capital expenditure & funds sources
Capital expenditure 98 857 77 460 94 118 7 286 41 163 70 588 (29 425) -42% 94 118
Capital transfers recognised 83 685 56 944 63 070 2 376 30 395 47 303 (16 908) -36% 63 070
Borrowing – – – – – – – –
Internally generated funds 15 172 20 516 31 047 4 911 10 769 23 286 (12 517) -54% 31 047
Total sources of capital funds 98 857 77 460 94 118 7 286 41 163 70 588 (29 425) -42% 94 118
Financial position
Total current assets 215 887 147 805 205 884 374 253 205 884
Total non current assets 675 090 811 750 734 208 606 468 734 208
Total current liabilities 62 532 44 315 51 450 83 500 51 450
Total non current liabilities 3 920 4 751 3 920 3 920 3 920
Community wealth/Equity 824 525 910 489 884 722 893 301 884 722
Cash flows
Net cash from (used) operating 121 501 93 194 99 086 61 597 196 282 74 315 (121 967) -164% 99 086
Net cash from (used) investing (92 567) (77 460) (94 118) (8 407) (51 770) (70 588) (18 818) 27% (94 118)
Net cash from (used) financing – – 72 – – – – –
Cash/cash equivalents at the month/year end 123 463 172 798 124 541 – 251 561 123 227 (128 334) -104% 112 018
Debtors & creditors analysis 0-30 Days 31-60 Days 61-90 Days 91-120 Days 121-150 Dys 151-180 Dys181 Dys-1
YrOver 1Yr Total
Debtors Age Analysis
Total By Income Source 4 357 3 231 3 108 2 974 2 546 53 942 – – 70 157
Creditors Age Analysis
Total Creditors 94 – – – – – – – 94
Description
Budget Year 2019/20
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The table above shows a summary of the municipality’s financial performance for the period ended 31
March 2020. The first part of the table shows financial performance which gives information about
whether the municipality made a loss or a surplus during the month followed by a summary of the
municipality’s performance on its capital budget. This is then followed by the municipality’s financial
position, a summary of the cashflow recalculation and then debtors and creditors age analysis.
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b) Financial Performance by functional classification
2018/19 Budget Year 2019/20
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands 1 %
Revenue - Functional
Governance and administration 286 725 302 912 304 452 67 466 294 186 228 339 65 847 29% 304 452
Executive and council – – – – – – – –
Finance and administration 286 725 302 912 304 452 67 466 294 186 228 339 65 847 29% 304 452
Internal audit – – – – – – – –
Community and public safety 4 597 6 341 5 485 261 3 310 4 113 (804) -20% 5 485
Community and social services 135 763 683 1 267 512 (246) -48% 683
Sport and recreation – – – – – – – –
Public safety 4 463 5 578 4 802 259 3 043 3 601 (558) -15% 4 802
Housing – – – – – – – –
Health – – – – – – – –
Economic and environmental services 53 646 48 853 54 980 2 910 36 605 41 235 (4 630) -11% 54 980
Planning and development 357 491 491 9 280 368 (89) -24% 491
Road transport 53 289 48 362 54 489 2 900 36 325 40 866 (4 541) -11% 54 489
Environmental protection – – – – – – – –
Trading services 70 825 79 482 77 282 4 250 45 949 57 961 (12 012) -21% 77 282
Energy sources 64 036 69 110 66 910 3 696 38 179 50 182 (12 004) -24% 66 910
Water management – – – – – – – –
Waste water management – – – – – – – –
Waste management 6 789 10 372 10 372 554 7 770 7 779 (9) 0% 10 372
Other 4 – – – – – – – –
Total Revenue - Functional 2 415 795 437 587 442 198 74 886 380 050 331 649 48 401 15% 442 198
Expenditure - Functional
Governance and administration 151 582 180 386 181 218 11 405 107 994 135 914 (27 920) -21% 181 218
Executive and council 56 846 65 088 63 530 4 936 41 116 47 647 (6 531) -14% 63 530
Finance and administration 91 841 111 611 113 579 6 262 64 788 85 184 (20 396) -24% 113 579
Internal audit 2 894 3 687 4 110 207 2 089 3 083 (993) -32% 4 110
Community and public safety 25 946 27 096 27 225 2 723 19 835 20 418 (584) -3% 27 225
Community and social services 6 825 10 219 9 966 857 5 259 7 474 (2 215) -30% 9 966
Sport and recreation 7 723 2 307 2 307 605 5 661 1 730 3 930 227% 2 307
Public safety 11 282 13 355 14 135 1 261 8 885 10 601 (1 717) -16% 14 135
Housing 116 1 214 816 – 30 612 (582) -95% 816
Health – – – – – – – –
Economic and environmental services 75 521 90 156 94 050 9 338 51 643 70 537 (18 894) -27% 94 050
Planning and development 21 194 27 586 26 926 2 441 13 873 20 194 (6 321) -31% 26 926
Road transport 50 463 60 332 65 035 6 684 35 762 48 776 (13 014) -27% 65 035
Environmental protection 3 863 2 238 2 089 214 2 008 1 567 441 28% 2 089
Trading services 65 992 134 338 167 203 5 790 122 478 125 402 (2 924) -2% 167 203
Energy sources 51 464 110 236 142 731 4 388 111 271 107 048 4 222 4% 142 731
Water management – – – – – – – –
Waste water management – – – – – – – –
Waste management 14 528 24 101 24 471 1 402 11 208 18 354 (7 146) -39% 24 471
Other 2 934 3 586 3 695 176 1 710 2 771 (1 061) -38% 3 695
Total Expenditure - Functional 3 321 975 435 561 473 390 29 432 303 659 355 042 (51 383) -14% 473 390
Surplus/ (Deficit) for the year 93 820 2 026 (31 192) 45 454 76 391 (23 394) 99 784 -427% (31 192)
RefDescription
EC443 Mbizana - Table C2 Monthly Budget Statement - Financial Performance (functional classification) - Q3 Third Quarter
The table above shows the municipality’s financial performance for the period ended 31 March 2020 in
functional classification which was created by treasury to assist in reporting financial information per
functional area. This information is consolidated at National treasury level to produce the provincial and
national financial reports.
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c) Revenue by Source
2018/19
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actual
YearTD
actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands %
Revenue By Source
Property rates 18 967 24 796 24 796 894 18 570 18 597 (27) 0% 24 796
Service charges - electricity revenue 31 229 37 475 35 475 2 190 21 201 26 606 (5 405) -20% 35 475
Service charges - water revenue – – – – – – – –
Service charges - sanitation revenue – – – – – – – –
Service charges - refuse revenue 4 456 4 592 4 592 389 3 516 3 444 72 2% 4 592
Rental of facilities and equipment 2 224 950 2 258 214 3 207 1 694 1 513 89% 2 258
Interest earned - external investments 8 772 9 617 9 917 802 7 435 7 438 (3) 0% 9 917
Interest earned - outstanding debtors 4 047 4 214 4 214 417 3 793 3 160 633 20% 4 214
Dividends received – – – – – – – –
Fines, penalties and forfeits 1 038 2 136 936 15 167 702 (536) -76% 936
Licences and permits 2 257 2 413 2 637 175 1 989 1 978 11 1% 2 637
Agency services 1 271 1 295 1 295 76 877 971 (94) -10% 1 295
Transfers and subsidies 235 075 268 837 268 837 65 302 265 429 201 628 63 801 32% 268 837
Other revenue 1 537 1 659 1 512 17 635 1 134 (499) -44% 1 512
Gains on disposal of PPE 19 024 – – – 326 – 326 #DIV/0! –
Total Revenue (excluding capital transfers and
contributions)329 895 357 985 356 470 70 491 327 145 267 352 59 793 22% 356 470
EC443 Mbizana - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q3 Third Quarter
Description Ref
Budget Year 2019/20
The above table shows the municipality’s revenue per revenue source. This is in line with the services that
municipalities are providing. An analysis of each revenue source follows below:
• PROPERTY RATES: The municipality being a local municipality levies property rates on all rateable
properties within the Mbizana area in terms of the Municipal Property Rates Act No.6 of 2004.
The categories of rate payers include government departments which own properties, like Public
Works which are levied once at the beginning of the financial year which lead to the revenue
generated for the month to be R11.4 million in the 1st month and a decrease for the following
months to R894 which is anticipated to be the case until the end 30 June 2020. The current
revenue recognised on this stream is in line with the target set for the same period which is a
decrease from 7% in the prior month indicating the smoothing out of the billing as anticipated.
This however, cannot be really interpreted to mean anything at this point as there is billing for
other months as well for government properties that has already been include in the actuals
above. Indications are however that the municipality will not make the targeted revenue by year
end as a result of the change in the valuation roll figures for some properties.
• ELECTRICITY REVENUE: The municipality distributes electricity in the town area as per its
distribution licence. This is one of the major sources of revenue for the municipality as
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households now depend on electricity for their day to day living. This is a trading service where
the municipality gives electricity equivalent to the amount provided by the consumer.
Municipalities are therefore expected to at least recover the cost of providing the service. The
approval of tariffs by NERSA is set up such that the municipality can make some form of surpluses
from sale of electricity so that it may be able to maintain the infrastructure used to render the
service. The municipality has generated over R2.1 million for the month and a year to date actual
of R21.2 million. This is below the projection by about 20% which remained stagnant from last
month’s performance. New bulk meters have been installed for identified large power users that
we expect will begin to show results once the billing is made from them. There are however some
disturbing observations that have been made by the professional service provider contacted by
the municipality to install the meters and assess performance of some meters. Two of the large
power users in town that are owned by the same person seem to have a way to lower the way in
which our meters read consumption leading to less billing and more consumption from their side.
The service provider has been granted permission to put those meters on an electronical
monitoring mechanism which we believe will be able to indicate changes where there are any.
• Solid Waste Removal: Collection and disposal of solid waste is one of the services that the
municipality provides to the town area and a few sites outside of town including the Wild Coast
Sun Casino. The municipality has implemented a new billing approach which ensures that all
customers who individually generate waste are billed individually. The exercise was conducted by
the refuse section and the billing database has significantly increased and showed us that there
are customers we have been providing the service to at no cost at all. This has resulted in the
revenue billed for the month to be over R389 thousand which is more than the projection by 2%
which is consistent with previous months’ performance.
• Interest on Investments: The municipality invests surplus cash and unspent grants to generate
interest that would be utilised to fund other municipal programmes, this interest includes interest
on the municipality’s positive balance in the municipality’s main account. The table above shows
that the municipality received an overall income of over R802 thousand and a year to date of over
R7.4 million which is in line with the revised projected amount.
• Interest on outstanding debtors: The municipality charges interest on debtors owing for more
than 30 days at a rate of prime plus 2% as per the municipality’s credit control and debt collection
policy. This has yielded interest of R417 thousand for the period ended 31 March 2020 which is
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more than the amount projected for the period by 20%. This still requires intense debt collection
initiatives. A higher interest generation means the municipality’s debtors are growing.
• Fines: The municipality has a traffic department which enforces traffic laws and the municipality’s
by-laws. Anyone found to have contravened these laws is charged a fine accordingly. These fines
also include fines for electricity tempering. The municipality generated only R15 thousand on
these fines during the month of March 2020 as a result of fines for transgressions either of traffic
laws or electricity. This resulted in less than a quarter of the projected amount for the period
ended. It is worth noting though that this does not represent cash collected and measures should
be put in place to ensure people pay their fines. Experience has taught us that people generally do
not settle traffic fines and, in most cases when they do they do so at lower values than the initial
revenue recognised. This is one of the areas where we were forced to adjust down to ensure that
we end up with realistic revenues.
• Rental of facilities: The municipality has properties that it rents out to other businesses and
individuals from which it generates revenue. These include properties like the Boxer complex and
others. The revenue generated here also includes rental for billboards and advertising around the
town area. The municipality has generated about R214 thousand for the month which has pushed
the actual performance to above the revised projection by 89% which is less than prior periods by
10%.
• Licenses and permits: The municipality has a fully functional testing station which has been
operation for the past two years. This has been one of the municipality’s promising revenue
stream since the completion of the testing station. The municipality generated about R175
thousand during the period and has collected above the revised projected collection by 1% which
is a decrease from the outcome that was recorded in the previous months by 2%.
• Transfers and subsidies: The municipality receives grants, both conditional and those without
conditions. The report shows that an amount of over R65.3 million has been transferred to revenue
for the period ended 31 March 2020 from the operating grants whose conditions have been met. This
is boosted by the equitable share that was received during the month amounting to over R65 million.
This happens when the municipality has spent the grants according to the requirements of the
funders or DORA. The biggest chunk of these transfers is equitable share that was received in July,
December and during the month.
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d) Debt Collection
The table below shows a 169% overall collection rate for the month ended 31 March 2020. However, we
note a 580% collection rate on property rates, 56% on electricity and 90% on leasehold fees for the
period.
MBIZANA L M : MONTHLY BILLING & RECEIPTS (including VAT)
YEAR ENDING: 30 June 2020
INCOME TYPE 1st Quarter 2nd Quarter Jan-19 Feb-20 Mar -20 3rd Quarter TOTAL/ANNUAL
RATES
billed 13 215 297 2 680 821 893 607 893 607 893 607 2 680 821 18 576 939
payment received 978 369 1 871 346 328 196 2 652 694 5 185 015 8 165 904 11 015 619
% of billing received 7% 70% 37% 297% 580% 305% 59%
ELECTRICITY
billed 6 090 388 6 780 898 2 264 079 2 075 761 2 149 419 6 489 259 19 360 545
payment received 3 103 157 4 225 113 1 665 008 1 572 085 1 195 120 4 432 212 11 760 482
% of billing received 51% 62% 74% 76% 56% 68% 61%
LEASEHOLD FEES - - -
billed 627 360 631 253 212 943 212 943 212 943 638 829 1 897 442
payment received 544 706 544 706 181 569 186 620 191 940 560 129 1 649 540
% of billing received 87% 86% 85% 88% 90% 88% 87%
VAT
billed 1 180 249 1 287 263 429 944 401 696 412 745 1 244 384 3 711 896
payment received 638 587 1 018 318 201 861 345 098 245 193 792 152 2 449 057
% of billing received 54% 79% 47% 86% 59% 64% 66%
INTEREST
billed 1 112 114 1 367 204 455 827 442 964 417 049 1 315 839 3 795 157
payment received 100 188 208 321 20 783 216 459 527 748 764 989 1 073 499
% of billing received 9% 15% 5% 49% 127% 58% 28%
REFUSE REMOVAL
billed 1 167 078 1 169 598 389 268 389 268 389 268 1 167 804 3 504 479
payment received 601 741 538 919 160 270 317 171 217 415 694 856 1 835 516
% of billing received 52% 46% 41% 81% 56% 60% 52%
TOTAL INCOME
bil led 23 392 487 13 917 035 4 645 667 4 416 239 4 475 030 13 536 936 50 846 459
payment received 5 966 747 8 406 722 2 557 686 5 290 127 7 562 430 15 410 243 29 783 712
% of billing received 26% 60% 55% 120% 169% 114% 59%
17 | P a g e
e) Expenditure by Type
2018/19
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actual
YearTD
actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands %
Expenditure By Type
Employee related costs 102 675 108 674 108 225 8 427 74 846 81 168 (6 322) -8% 108 225
Remuneration of councillors 23 244 25 263 24 263 1 921 17 392 18 197 (805) -4% 24 263
Debt impairment 4 266 2 631 2 631 – – 1 973 (1 973) -100% 2 631
Depreciation & asset impairment 41 890 50 872 50 872 3 610 32 478 38 154 (5 676) -15% 50 872
Finance charges 66 400 400 – 11 300 (289) -96% 400
Bulk purchases 30 025 35 274 33 274 2 475 23 619 24 956 (1 337) -5% 33 274
Other materials 5 250 11 075 11 491 1 134 4 241 8 618 (4 377) -51% 11 491
Contracted services 55 419 89 848 96 213 8 194 48 304 72 160 (23 856) -33% 96 213
Transfers and subsidies 702 1 130 1 530 340 1 230 1 147 83 7% 1 530
Other expenditure 50 975 69 848 68 945 3 332 32 854 51 709 (18 855) -36% 68 945
Loss on disposal of PPE 7 462 40 546 75 546 – 68 683 56 660 12 024 21% 75 546
Total Expenditure 321 975 435 561 473 390 29 432 303 659 355 042 (51 383) -14% 473 390
EC443 Mbizana - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q3 Third Quarter
Description Ref
Budget Year 2019/20
The table above shows the municipality’s expenses per type of expenditure. This is compared with the
revenues generated per type to determine whether the municipality is operating at a loss or a surplus.
• Employee costs and Remuneration of councillors: The municipality has remunerated
employees who are remunerated as per the prevailing Bargaining Council agreements. The
expenditure for the month ended 31 March 2020 reflects over R8.4 million was spent. The
overall expenditure to date is R74.8 million which is below the projected expenditure by 8%. The
saving may be attributable to a number of things including positions that have remained vacant
for longer periods than anticipated, bonuses not due yet depending on people’s birthdays and
increments approved that were below the budgeted figures. As previously reported, every time
there is a version change the setup requires starting from scratch. We can however report that
we have ensured that all remuneration for the month is correctly accounted for. Remuneration
of councillors has been included and currently shows a saving of 4% which may be attributable
to a provision made for possible increases for the year under implementation when the new
upper limits are published during the year.
• Bulk Purchases: The municipality purchases electricity in bulk from Eskom for distribution to
the town customers. This is the main input cost to the distribution of electricity. The table
shows that the municipality spent over R2.4 million for the month for electricity purchases for
the period ended 31 March 2020.
• The revised projected amount is above actual expenditure by 5% which is a good indication on
the works being performed to eliminate electricity losses and control the input costs.
• Depreciation and asset impairment: The depreciation run has been performed after the end of
each quarter and recently monthly, which lead to an amount of over R3.6 million for the period
18 | P a g e
being recognised and R32.4 million year to date. This is below the projection by 15% for the
same period.
• Contracted Services: This relates to the municipality’s general expenses that have been incurred
during the month where only external service providers could be used to render the service or
procure goods. This shows that the municipality has spent less than the projected amount by
33% which a decrease from last month’s performance of 37% that was reported. This is as a
result of slow spending during the first months of the financial year which is always experienced.
• Other Expenditure: This also shows a saving of about 36% which might be as a result of the slow
spending during the first months of the financial year which is always experienced. This requires
though that departments that are currently underspending be sensitised of the matter.
• Loss on Disposal of PPE: The municipality implements electrification projects in the areas that
are only directly supplied by Eskom, these assets or infrastructure is therefore transferred to
Eskom once completed. This transfer results in a loss on disposal for the municipality as these
are given to Eskom at no cost. The municipality has during the month transferred electricity
infrastructure to Eskom as a result of completed projects to the value of R68.6 million. This has
resulted in expenditure being 21% less than the revised budgeted amount.
19 | P a g e
f) Revenue by Municipal Vote
Vote Description 2018/19
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual
YearTD
budgetYTD variance YTD variance
Full Year
Forecast
R thousands %
Revenue by Vote 1
Vote 1 - EXECUTIVE AND COUNCIL 150 – – – – – – –
Vote 2 - BUDGET AND TREASURY 286 287 302 787 304 145 67 466 294 003 228 108 65 894 28.9% 304 145
Vote 3 - CORPORATE SERVICES 288 125 308 – 183 231 (48) -20.6% 308
Vote 4 - COMMUNITY AND SOCIAL SERVICES 11 387 16 712 15 856 814 11 080 11 892 (813) -6.8% 15 856
Vote 5 - ENGINEERING SERVICES 117 367 117 650 121 576 6 580 74 673 91 182 (16 509) -18.1% 121 576
Vote 6 - DEVELOPMENT PLANNING 316 313 313 26 110 235 (125) -53.0% 313
Total Revenue by Vote 2 415 795 437 587 442 198 74 885 380 049 331 649 48 401 14.6% 442 198
EC443 Mbizana - Table C3 Monthly Budget Statement - Financial Performance (revenue and expenditure by municipal vote) - Q3 Third Quarter
Ref
Budget Year 2019/20
The table above shows revenue generated per municipal vote as defined in s1 of the MFMA. The table
shows that Engineering services has generated over R6.5 million for the month with Budget and Treasury
showing generation of over R67.4 million which may be attributable to grants that have already been spent
more than the projected amounts as well as Community and Social services at over R814 thousand.
20 | P a g e
g) Expenditure by Municipal Vote
Vote Description 2018/19
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual
YearTD
budgetYTD variance YTD variance
Full Year
Forecast
R thousands %
Expenditure by Vote 1
Vote 1 - EXECUTIVE AND COUNCIL 75 230 82 930 81 928 6 009 51 352 61 446 (10 094) -16.4% 81 928
Vote 2 - BUDGET AND TREASURY 25 305 28 162 28 265 968 14 144 21 199 (7 055) -33.3% 28 265
Vote 3 - CORPORATE SERVICES 44 188 58 783 58 551 3 458 34 467 43 913 (9 446) -21.5% 58 551
Vote 4 - COMMUNITY AND SOCIAL SERVICES 54 682 64 646 67 676 5 395 42 558 48 718 (6 160) -12.6% 67 676
Vote 5 - ENGINEERING SERVICES 105 024 176 016 211 546 11 350 149 054 158 659 (9 606) -6.1% 211 546
Vote 6 - DEVELOPMENT PLANNING 17 546 25 024 25 424 2 251 12 085 18 768 (6 683) -35.6% 25 424
Total Expenditure by Vote 2 321 975 435 561 473 390 29 432 303 659 352 703 (49 044) -13.9% 473 390
Surplus/ (Deficit) for the year 2 93 820 2 026 (31 192) 45 453 76 390 (21 055) 97 445 -462.8% (31 192)
EC443 Mbizana - Table C3 Monthly Budget Statement - Financial Performance (revenue and expenditure by municipal vote) - Q3 Third Quarter
Ref
Budget Year 2019/20
The table above shows the expenditure by municipal vote. The total expenditure for the month of
March 2020 amounted to above R29.4 million. R6 million of this was spent within Executive and council
vote. Engineering Services leads with an amount of just over R11 million followed by Community and
Corporate Services at R5.3 and R3.4 million respectively.
21 | P a g e
h) Municipality’s financial performance
2018/19
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands %
Revenue By Source
Property rates 18 967 24 796 24 796 894 18 570 18 597 (27) 0% 24 796
Service charges - electricity revenue 31 229 37 475 35 475 2 190 21 201 26 606 (5 405) -20% 35 475
Service charges - water revenue – – – – – – – –
Service charges - sanitation revenue – – – – – – – –
Service charges - refuse revenue 4 456 4 592 4 592 389 3 516 3 444 72 2% 4 592
Rental of facilities and equipment 2 224 950 2 258 214 3 207 1 694 1 513 89% 2 258
Interest earned - external investments 8 772 9 617 9 917 802 7 435 7 438 (3) 0% 9 917
Interest earned - outstanding debtors 4 047 4 214 4 214 417 3 793 3 160 633 20% 4 214
Dividends received – – – – – – – –
Fines, penalties and forfeits 1 038 2 136 936 15 167 702 (536) -76% 936
Licences and permits 2 257 2 413 2 637 175 1 989 1 978 11 1% 2 637
Agency services 1 271 1 295 1 295 76 877 971 (94) -10% 1 295
Transfers and subsidies 235 075 268 837 268 837 65 302 265 429 201 628 63 801 32% 268 837
Other revenue 1 537 1 659 1 512 17 635 1 134 (499) -44% 1 512
Gains on disposal of PPE 19 024 – – – 326 – 326 #DIV/0! –
Total Revenue (excluding capital transfers and
contributions)
329 895 357 985 356 470 70 491 327 145 267 352 59 793 22% 356 470
Expenditure By Type
Employee related costs 102 675 108 674 108 225 8 427 74 846 81 168 (6 322) -8% 108 225
Remuneration of councillors 23 244 25 263 24 263 1 921 17 392 18 197 (805) -4% 24 263
Debt impairment 4 266 2 631 2 631 – – 1 973 (1 973) -100% 2 631
Depreciation & asset impairment 41 890 50 872 50 872 3 610 32 478 38 154 (5 676) -15% 50 872
Finance charges 66 400 400 – 11 300 (289) -96% 400
Bulk purchases 30 025 35 274 33 274 2 475 23 619 24 956 (1 337) -5% 33 274
Other materials 5 250 11 075 11 491 1 134 4 241 8 618 (4 377) -51% 11 491
Contracted services 55 419 89 848 96 213 8 194 48 304 72 160 (23 856) -33% 96 213
Transfers and subsidies 702 1 130 1 530 340 1 230 1 147 83 7% 1 530
Other expenditure 50 975 69 848 68 945 3 332 32 854 51 709 (18 855) -36% 68 945
Loss on disposal of PPE 7 462 40 546 75 546 – 68 683 56 660 12 024 21% 75 546
Total Expenditure 321 975 435 561 473 390 29 432 303 659 355 042 (51 383) -14% 473 390
Surplus/(Deficit) 7 920 (77 576) (116 920) 41 059 23 486 (87 690) 111 176 (0) (116 920)
Transfers and subsidies - capital (monetary allocations)
(National / Provincial and District) 85 899 79 602 85 729 4 394 52 905 64 296 (11 392) (0) 85 729 Transfers and subsidies - capital (monetary allocations)
(National / Provincial Departmental Agencies, Households, Non-
profit Institutions, Private Enterprises, Public Corporatons, Higher
Educational Institutions) – – – – – – – –
Transfers and subsidies - capital (in-kind - all) – – – – – – – –
Surplus/(Deficit) after capital transfers & contributions 93 820 2 026 (31 192) 45 454 76 391 (23 394) (31 192)
Taxation – – – – – – – –
Surplus/(Deficit) after taxation 93 820 2 026 (31 192) 45 454 76 391 (23 394) (31 192)
Attributable to minorities – – – – – – –
Surplus/(Deficit) attributable to municipality 93 820 2 026 (31 192) 45 454 76 391 (23 394) (31 192)
Share of surplus/ (deficit) of associate – – – – – – –
Surplus/ (Deficit) for the year 93 820 2 026 (31 192) 45 454 76 391 (23 394) (31 192)
Description Ref
Budget Year 2019/20
EC443 Mbizana - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - Q3 Third Quarter
The municipality has so far recorded a surplus of over R45.4 million for the month ended 31 March
2020. This must be seen in the correct perspective as there has been receipts of the expected grants
from the national purse. The municipality is still heavily reliant on grant funding and as such the
surpluses still need to be seen in that perspective as they relate to expenditures that are still to be
incurred. Measures still need to be put in place to move the municipality towards self-sustainability.
22 | P a g e
9. Capital programme performance
a) Capital expenditure by asset class and sub-class
2018/19 Budget Year 2019/20
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actual
YearTD
actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands 1 %
Capital expenditure on new assets by Asset Class/Sub-class
Infrastructure 63 714 39 450 40 198 1 674 17 141 30 149 13 008 43.1% 40 198
Roads Infrastructure 22 397 28 450 29 198 1 674 16 091 21 899 5 808 26.5% 29 198
Roads 22 397 28 450 29 198 1 674 16 091 21 899 5 808 26.5% 29 198
Electrical Infrastructure 41 317 11 000 11 000 – 1 050 8 250 7 200 87.3% 11 000
MV Networks 41 317 11 000 11 000 – 1 050 8 250 7 200 87.3% 11 000
Community Assets 2 408 6 100 6 071 395 3 201 4 553 1 352 29.7% 6 071
Community Facilities 2 408 6 100 6 071 395 3 201 4 553 1 352 29.7% 6 071
Halls – 4 600 4 971 734 3 201 3 728 527 14.1% 4 971
Centres – – – – – – – –
Crèches 2 408 – – – – – – –
Markets – 1 500 1 100 (340) – 825 825 100.0% 1 100
Other assets – 2 200 2 000 774 774 1 500 726 48.4% 2 000
Operational Buildings – 2 200 2 000 774 774 1 500 726 48.4% 2 000
Yards – 2 200 2 000 774 774 1 500 726 48.4% 2 000
Computer Equipment 1 762 3 771 3 950 2 905 3 399 2 963 (436) -14.7% 3 950
Computer Equipment 1 762 3 771 3 950 2 905 3 399 2 963 (436) -14.7% 3 950
Furniture and Office Equipment 785 2 405 1 053 46 436 790 353 44.7% 1 053
Furniture and Office Equipment 785 2 405 1 053 46 436 790 353 44.7% 1 053
Machinery and Equipment 3 933 1 790 4 740 355 2 069 3 555 1 486 41.8% 4 740
Machinery and Equipment 3 933 1 790 4 740 355 2 069 3 555 1 486 41.8% 4 740
Transport Assets 2 796 4 250 380 – 235 285 50 17.5% 380
Transport Assets 2 796 4 250 380 – 235 285 50 17.5% 380
Total Capital Expenditure on new assets 1 75 399 59 966 58 392 6 149 27 255 43 794 16 539 37.8% 58 392
EC443 Mbizana - Supporting Table SC13a Monthly Budget Statement - capital expenditure on new assets by asset class - Q3 Third Quarter
Description Ref
2018/19 Budget Year 2019/20
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actual
YearTD
actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands 1 %
Capital expenditure on upgrading of existing assets by Asset Class/Sub-class
Infrastructure – – 285 – – 214 214 100.0% 285
Roads Infrastructure – – 285 – – 214 214 100.0% 285
Roads – – 285 – – 214 214 100.0% 285
Community Assets 23 458 17 494 32 441 1 137 13 908 24 330 10 422 42.8% 32 441
Community Facilities 10 901 11 021 19 841 1 137 10 440 14 881 4 441 29.8% 19 841
Halls 10 901 11 021 19 841 1 137 10 440 14 881 4 441 29.8% 19 841
Sport and Recreation Facilities 12 557 6 473 12 600 – 3 468 9 450 5 982 63.3% 12 600
Outdoor Facilities 12 557 6 473 12 600 – 3 468 9 450 5 982 63.3% 12 600
Total Capital Expenditure on upgrading of existing assets 1 23 458 17 494 32 726 1 137 13 908 24 544 10 636 43.3% 32 726
EC443 Mbizana - Supporting Table SC13e Monthly Budget Statement - capital expenditure on upgrading of existing assets by asset class - Q3 Third Quarter
Description Ref
The above tables indicate that the municipality spent R7.2 million for the month from its capital budget
for the period ended 31 March 2020. This is performance that cannot be encouraged at this time of the
year especially on the two major capital programmes being implemented by the municipality. Any
movement in these two projects brings the municipality a step closer to the completion of these
projects, however little.
23 | P a g e
b) Capital Expenditure by municipal vote
2018/19 Budget Year 2019/20
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual YearTD budget YTD variance YTD variance
Full Year
Forecast
R thousands 1 %
Multi-Year expenditure appropriation 2
Vote 5 - ENGINEERING SERVICES 23 459 17 494 31 691 1 137 13 908 23 768 (9 860) -41% 31 691
Total Capital Multi-year expenditure 4,7 23 459 17 494 31 691 1 137 13 908 23 768 (9 860) -41% 31 691
Single Year expenditure appropriation 2
Vote 2 - BUDGET AND TREASURY – 2 500 2 500 2 304 2 304 1 875 429 23% 2 500
Vote 3 - CORPORATE SERVICES 4 418 5 074 4 303 619 1 502 3 227 (1 725) -53% 4 303
Vote 4 - COMMUNITY AND SOCIAL SERVICES 1 493 6 842 6 070 1 157 3 107 4 553 (1 446) -32% 6 070
Vote 5 - ENGINEERING SERVICES 69 488 44 050 48 454 2 408 20 342 36 341 (15 999) -44% 48 454
Vote 6 - DEVELOPMENT PLANNING – 1 500 1 100 (340) – 825 (825) -100% 1 100
Total Capital single-year expenditure 4 75 398 59 966 62 427 6 149 27 255 46 820 (19 565) -42% 62 427
Total Capital Expenditure 98 857 77 460 94 118 7 286 41 163 70 588 (29 425) -42% 94 118
Capital Expenditure - Functional Classification
Governance and administration 4 537 8 426 7 203 2 952 3 835 5 402 (1 567) -29% 7 203
Finance and administration 4 537 8 426 7 203 2 952 3 835 5 402 (1 567) -29% 7 203
Community and public safety 776 2 790 2 470 991 1 226 1 853 (626) -34% 2 470
Community and social services 26 700 700 – – 525 (525) -100% 700
Public safety 750 2 090 1 770 991 1 226 1 328 (101) -8% 1 770
Economic and environmental services 53 876 52 044 70 245 3 206 33 200 52 684 (19 484) -37% 70 245
Planning and development 31 479 23 594 40 762 1 532 17 109 30 571 (13 462) -44% 40 762
Road transport 22 397 28 450 29 483 1 674 16 091 22 113 (6 022) -27% 29 483
Trading services 39 668 14 200 14 200 137 2 902 10 650 (7 748) -73% 14 200
Energy sources 39 668 11 000 11 000 – 1 050 8 250 (7 200) -87% 11 000
Waste management – 3 200 3 200 137 1 852 2 400 (548) -23% 3 200
Total Capital Expenditure - Functional Classification 3 98 857 77 460 94 118 7 286 41 163 70 588 (29 425) -42% 94 118
Funded by:
National Government 83 685 56 944 63 070 2 376 30 395 47 303 (16 908) -36% 63 070
Transfers recognised - capital 83 685 56 944 63 070 2 376 30 395 47 303 (16 908) -36% 63 070
Borrowing 6 – – – – – – – –
Internally generated funds 15 172 20 516 31 047 4 911 10 769 23 286 (12 517) -54% 31 047
Total Capital Funding 98 857 77 460 94 118 7 286 41 163 70 588 (29 425) -42% 94 118
EC443 Mbizana - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, functional classification and funding) - Q3 Third Quarter
Vote Description Ref
The above table indicate that the municipality spent R7.2 million from its capital budget for the period
ended 31 March 2020 which is not very encouraging considering that we have two major projects that have
been allocated the bigger slice of the municipality’s available resources.
24 | P a g e
10. Supply chain management
The municipality has an established Supply Chain Management Unit in terms of the Municipal Finance
Management Act. The section is placed within the Budget and Treasury to deal centrally with all issues
that relate to procurement, demand management, logistics and disposals. The following is the
indication of the activities that have occurred within the department for the period being reported on.
a. Acquisition management
To improve the system of acquisition management the following should be taken into considerations
• Goods and services must only be procured in accordance with authorized procurement
processes.
• Procurement of goods and services, either through quotations or through a bidding process,
must be within the threshold values as determined by National treasury and the municipality’s
supply chain management policy.
25 | P a g e
b. Procurement requests below R2000.00
S13.2. (b)(1) Supply Chain Management policy states that 01 written quotation will be obtain for any procurement of transaction below an
amount of R2000 including vat.
ReqNum
OrderNum
OrderDate
InvNum Creditor
Code CreditorName QtyOrd UnitPrice VATAmnt TotalAmnt Status SegmentDESC
CSDRefNumber
32656 30360 24/03/2020
INA69412 2658
GENBIZ TRADING 1001 PTY LTD 1
59.80 8.97
68.77 RECEIVED Lease and usage
MAAA0023122
32575 30329 18/03/2020 100001 15362
IMIDIHLUME GENERAL
TRADING (PT 9 12.00 0
108.00 RECEIVED
Community Education catering 505260695
MAAA0465323
32605 30314 12/03/2020 11 5431
SEBEKHO HOLDINGS 1
120.00 0
120.00 RECEIVED
Library awareness promotional items
MAAA0596923
32580 30291 10/03/2020 606 56682 TUNIMART 1
121.50 18.23
139.73 RECEIVED
Accommodation HR 1010260240
MAAA0051710
32632 30343 19/03/2020
HOF0100728 56682 TUNIMART 1
126.00 18.9
144.90 RECEIVED
Accommodation Finance 1005260240
MAAA0051710
32634 30344 19/03/2020
HOF0100754 56682 TUNIMART 1
126.00 18.9
144.90 RECEIVED
Accommodation Fleet 1010260240
MAAA0051710
32616 30321 17/03/2020 678 56682 TUNIMART 1
126.00 18.9
144.90 RECEIVED
Accommodation Traffic 2505260240
MAAA0051710
32551 30271 03/03/2020 604 56682 TUNIMART 1
129.60 19.44
149.04 RECEIVED
Accommodation Traffic 2505260240
MAAA0051710
32581 30293 11/03/2020 605 56682 TUNIMART 1
129.60 19.44
149.04 RECEIVED
Accommodation MM 515260240
MAAA0051710
32550 30270 03/03/2020 570 56682 TUNIMART 1
129.60 19.44
149.04 RECEIVED
Accommodation Traffic 2505260240
MAAA0051710
32571 30288 10/03/2020 571 56682 TUNIMART 1
129.60 19.44
149.04 RECEIVED
Accommodation MM 515260240
MAAA0051710
32488 30218 19/02/2020 2 69516
ABHIDA TRADING AND PROJECTS 20
10.00 0
200.00 RECEIVED
Community Education catering 505260695
MAAA0184147
32629 30339 19/03/2020 60 664
THANKS TO GIVE TRADING AND
PRO 25 10.00 0
250.00 RECEIVED
Catering Councillors meetings
MAAA0447568
26 | P a g e
ReqNum
OrderNum
OrderDate
InvNum Creditor
Code CreditorName QtyOrd UnitPrice VATAmnt TotalAmnt Status SegmentDESC
CSDRefNumber
32539 30263 02/03/2020
2IHE00187 10548
IHEANS TRAVELLING
AGENCIES 1 273.60 0
273.60 RECEIVED
Accommodation Council 505260240
MAAA0180464
32552 30272 03/03/2020
2IHE00184 10548
IHEANS TRAVELLING
AGENCIES 1 273.60 0
273.60 RECEIVED
Accommodation Fleet 1010260240
MAAA0180464
32635 30348 24/03/2020
HOF0100753 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accomodation Audit Comm
MAAA0051710
32635 30348 24/03/2020
HOF0100753 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accomodation Audit Comm
MAAA0051710
32585 30298 11/03/2020 712 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accommodation Council 505260240
MAAA0051710
32618 30324 17/03/2020 709 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accommodation Planning 1505260240
MAAA0051710
32589 30303 11/03/2020 710 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accommodation Electricity 6505260240
MAAA0051710
32563 30286 10/03/2020 631 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accommodation Electricity 6505260240
MAAA0051710
32567 30284 10/03/2020 632 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accommodation Electricity 6505260240
MAAA0051710
32564 30285 10/03/2020 630 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accommodation Fleet 1010260240
MAAA0051710
32557 30268 03/03/2020 586 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accommodation BTO 1005260240
MAAA0051710
32467 30197 12/02/2020 476 56682 TUNIMART 1
259.20 38.88
298.08 RECEIVED
Accommodation MM 515260240
MAAA0051710
32635 30348 24/03/2020
HOF0100753 56682 TUNIMART 1
340.20 51.03
391.23 RECEIVED
Car Hire Audit Committee Meetings 515260553
MAAA0051710
32543 30262 02/03/2020
2IHE00186 10548
IHEANS TRAVELLING
AGENCIES 1 410.40 0
410.40 RECEIVED
Accommodation Council 505260240
MAAA0180464
32567 30284 10/03/2020 632 56682 TUNIMART 1
372.60 55.89
428.49 RECEIVED
Car rental Electricity 6505260240
MAAA0051710
32648 30356 24/03/2 HOF0100 56682 TUNIMART 1 58.32 RECEIVED Accommodation HR MAAA005
27 | P a g e
ReqNum
OrderNum
OrderDate
InvNum Creditor
Code CreditorName QtyOrd UnitPrice VATAmnt TotalAmnt Status SegmentDESC
CSDRefNumber
020 766 388.80 447.12 1010260240 1710
32555 30267 03/03/2020 589 56682 TUNIMART 1
388.80 58.32
447.12 RECEIVED
Accommodation MM 515260240
MAAA0051710
32604 30319 17/03/2020 25 6777
XABANI TRADING AND PROJECTS CC 50
10.00 0
500.00 RECEIVED
Catering Councillors meetings
MAAA0126522
32540 30260 02/03/2020
IHE00189 10548
IHEANS TRAVELLING
AGENCIES 1 547.20 0
547.20 RECEIVED
Accommodation Council 505260240
MAAA0180464
32542 30261 02/03/2020
2IHE00183 10548
IHEANS TRAVELLING
AGENCIES 1 547.20 0
547.20 RECEIVED
Accommodation Council 505260240
MAAA0180464
32541 30275 04/03/2020 587 56682 TUNIMART 1
518.40 77.76
596.16 RECEIVED
Accommodation Fleet 1010260240
MAAA0051710
32615 30325 17/03/2020
2IHE00188 10548
IHEANS TRAVELLING
AGENCIES 1 684.00 0
684.00 RECEIVED
Accommodation MM 515260240
MAAA0180464
32614 30326 17/03/2020
2IHE00189 10548
IHEANS TRAVELLING
AGENCIES 1 684.00 0
684.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
32605 30314 12/03/2020 11 5431
SEBEKHO HOLDINGS 100
7.00 0
700.00 RECEIVED
Library Awareness campaign catering
MAAA0596923
32510 30241 25/02/2020 540 56682 TUNIMART 1
648.00 97.2
745.20 RECEIVED
Accommodation Council 505260240
MAAA0051710
32509 30238 25/02/2020 545 56682 TUNIMART 1
648.00 97.2
745.20 RECEIVED
Accommodation Fleet 1010260240
MAAA0051710
32511 30237 25/02/2020 546 56682 TUNIMART 1
648.00 97.2
745.20 RECEIVED
Accommodation HR 1010260240
MAAA0051710
32651 30351 24/03/2020
HOF0100743 56682 TUNIMART 1
654.84 98.23
753.07 RECEIVED
Whippery support transport hire
MAAA0051710
32569 30287 10/03/2020 566 56682 TUNIMART 1
657.33 98.6
755.93 RECEIVED
Whippery support transport hire
MAAA0051710
32635 30348 24/03/2020
HOF0100753 56682 TUNIMART 1
703.30 105.5
808.80 RECEIVED
Flights Audit Committee Meetings 515
MAAA0051710
32567 30284 10/03/2020 632 56682 TUNIMART 1
744.12 111.62
855.74 RECEIVED
Flights Electricity 6505260240
MAAA0051710
28 | P a g e
ReqNum
OrderNum
OrderDate
InvNum Creditor
Code CreditorName QtyOrd UnitPrice VATAmnt TotalAmnt Status SegmentDESC
CSDRefNumber
32576 30297 11/03/2020 87 8082
MASINYANE AND SON (PTY) LTD 15
70.00 0
1 050.00 RECEIVED
Conferences workshops 1010260080
MAAA0551580
32544 30264 02/03/2020 588 56682 TUNIMART 1
1 036.80 155.52
1 192.32 RECEIVED
Accommodation HR 1010260240
MAAA0051710
32580 30291 10/03/2020 606 56682 TUNIMART 1
1 350.00 0
1 350.00 RECEIVED
Accommodation HR 1010260240
MAAA0051710
32515 30243 25/02/2020
2IHE00182 10548
IHEANS TRAVELLING
AGENCIES 1 1 359.45 0
1 359.45 RECEIVED
Accommodation Council 505260240
MAAA0180464
32629 30339 19/03/2020 60 664
THANKS TO GIVE TRADING AND
PRO 25 55.00 0
1 375.00 RECEIVED
Catering Councillors meetings
MAAA0447568
32506 30233 24/02/2020 70 9126
AMANDL'ENTOMBI TRADING & PRO 12
115.00 0
1 380.00 RECEIVED
Annual Report Consultations catering 505260554
MAAA0423061
32632 30343 19/03/2020
HOF0100728 56682 TUNIMART 1
1 400.00 0
1 400.00 RECEIVED
Accommodation Finance 1005260240
MAAA0051710
32634 30344 19/03/2020
HOF0100754 56682 TUNIMART 1
1 400.00 0
1 400.00 RECEIVED
Accommodation Fleet 1010260240
MAAA0051710
32616 30321 17/03/2020 678 56682 TUNIMART 1
1 400.00 0
1 400.00 RECEIVED
Accommodation Traffic 2505260240
MAAA0051710
32551 30271 03/03/2020 604 56682 TUNIMART 1
1 440.00 0
1 440.00 RECEIVED
Accommodation Traffic 2505260240
MAAA0051710
32581 30293 11/03/2020 605 56682 TUNIMART 1
1 440.00 0
1 440.00 RECEIVED
Accommodation MM 515260240
MAAA0051710
32550 30270 03/03/2020 570 56682 TUNIMART 1
1 440.00 0
1 440.00 RECEIVED
Accommodation Traffic 2505260240
MAAA0051710
32571 30288 10/03/2020 571 56682 TUNIMART 1
1 440.00 0
1 440.00 RECEIVED
Accommodation MM 515260240
MAAA0051710
32545 30265 02/03/2020
2IHE00179 10548
IHEANS TRAVELLING
AGENCIES 1 1 440.00 0
1 440.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
32640 30336 19/03/2020 28 6777
XABANI TRADING AND PROJECTS CC 25
60.00 0
1 500.00 RECEIVED
Business Breakfast catering 1505
MAAA0126522
29 | P a g e
ReqNum
OrderNum
OrderDate
InvNum Creditor
Code CreditorName QtyOrd UnitPrice VATAmnt TotalAmnt Status SegmentDESC
CSDRefNumber
32640 30336 19/03/2020 28 6777
XABANI TRADING AND PROJECTS CC 25
70.00 0
1 750.00 RECEIVED
Business Breakfast catering 1505
MAAA0126522
32640 30336 19/03/2020 28 6777
XABANI TRADING AND PROJECTS CC 25
70.00 0 1 750.00 RECEIVED
Business Breakfast catering 1505
MAAA0126522
32621 30323 17/03/2020 724 56682 TUNIMART 1 1 555.20 233.28 1 788.48 RECEIVED
Accommodation Roads 5505260240
MAAA0051710
32576 30297 11/03/2020 87 8082
MASINYANE AND SON (PTY) LTD 90
20.00 0 1 800.00 RECEIVED OHS Catering
MAAA0551580
32498 30226 20/02/2020 39 55228
SANDISO ZANGOXOLO
CONTRACTING 200 9.50 0 1 900.00 RECEIVED
Whippery support catering costs 505260175
MAAA0601356
32630 30340 19/03/2020 86 8082
MASINYANE AND SON (PTY) LTD 20
95.00 0 1 900.00 RECEIVED BIGM Catering
MAAA0551580
32548 30269 03/03/2020
INA10422 10527
KU-BHA SERVICE STATION 100
19.50 0 1 950.00 RECEIVED Acquisitions
MAAA0553861
32505 30231 24/02/2020
INA10421 10527
KU-BHA SERVICE STATION 1 1 950.00 0 1 950.00 RECEIVED Grass Cutting 5020
MAAA0553861
32622 30342 19/03/2020 19 2255
SINOZINTO MULTIPURPOSE
PRIMARY 1 2 000.00 0 2 000.00 RECEIVED Public participation Groceries
MAAA0497164
35 206.54 1 946.13 54 632.67
30 | P a g e
c. Procurement requests above R2, 000.00 but below R30, 000.00
Procurement of goods and services above R2000.00 but below R30 000.00 is done through a three quotation system
ReqNum
OrderNum
OrderDate
InvNum
CreditorCode
CreditorName
Qty
Ord
UnitPrice VATAmn
t TotalAmnt Status SegmentDESC
CSDRefNumber
32622 30342
19/03/2020 19
2255
SINOZINTO MULTIPURPOSE PRIMARY 1 2 000.00 0
2 000.00 RECEIVED Public participation Groceries
MAAA0497164
32628 30330
18/03/2020 79
3006
ATHAYANDA MASHABANE ENTERPRISE 30 70.00 0
2 100.00 RECEIVED
Business Breakfast catering 1505
MAAA0478399
32628 30330
18/03/2020 79
3006
ATHAYANDA MASHABANE ENTERPRISE 30 70.00 0
2 100.00 RECEIVED
Business Breakfast catering 1505
MAAA0478399
32628 30330
18/03/2020 79
3006
ATHAYANDA MASHABANE ENTERPRISE 30 70.00 0
2 100.00 RECEIVED
Business Breakfast catering 1505
MAAA0478399
32604 30319
17/03/2020 25
6777
XABANI TRADING AND PROJECTS CC 30 70.00 0
2 100.00 RECEIVED Catering Councillors meetings
MAAA0126522
32545 30265
02/03/2020 2IHE00179
10548
IHEANS TRAVELLING AGENCIES 1 2 209.22 0
2 209.22 RECEIVED
Accommodation Council 505260240
MAAA0180464
32629 30339
19/03/2020 60 664
THANKS TO GIVE TRADING AND PRO 25 95.00 0
2 375.00 RECEIVED Catering Councillors meetings
MAAA0447568
32584 30295
11/03/2020 24
12789 KUMILISIWE PTY LTD
200 12.00 0
2 400.00 RECEIVED
Whippery support catering costs 505260175
MAAA0743296
32577 30292
11/03/2020 2IHE00191
10548
IHEANS TRAVELLING AGENCIES 1 2 480.64 0
2 480.64 RECEIVED
Accommodation Council 505260240
MAAA0180464
32528 30251
27/02/2020 31E04010
25698 LUSIKISIKI SPARES CC 2 1 152.18 345.64
2 650.00 RECEIVED
Vehicle maintenance outsourced 1010235115
MAAA0490384
32635 30348
24/03/2020
HOF0100753
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED Accomodation Audit Comm
MAAA0051710
32635 30348
24/03/2020
HOF0100753
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED Accomodation Audit Comm
MAAA0051710
32539 30263
02/03/2020 2IHE00187
10548
IHEANS TRAVELLING AGENCIES 2 1 440.00 0
2 880.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
3258 30298 11/03/ 712 566 TUNIMART 2 1 440.00 0 2 RECEIVED Accommodation Council MAAA005
31 | P a g e
ReqNum
OrderNum
OrderDate
InvNum
CreditorCode
CreditorName
Qty
Ord
UnitPrice VATAmn
t TotalAmnt Status SegmentDESC
CSDRefNumber
5 2020 82 880.00 505260240 1710
32618 30324
17/03/2020 709
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED
Meals Economic Planning 1505260240
MAAA0051710
32589 30303
11/03/2020 710
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED
Accommodation Electricity 6505260240
MAAA0051710
32563 30286
10/03/2020 631
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED
Accommodation Electricity 6505260240
MAAA0051710
32567 30284
10/03/2020 632
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED
Accommodation Electricity 6505260240
MAAA0051710
32564 30285
10/03/2020 630
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED
Accommodation Fleet 1010260240
MAAA0051710
32557 30268
03/03/2020 586
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED
Accommodation BTO 1005260240
MAAA0051710
32467 30197
12/02/2020 476
56682 TUNIMART 2 1 440.00 0
2 880.00 RECEIVED
Accommodation MM 515260240
MAAA0051710
32545 30265
02/03/2020 2IHE00179
10548
IHEANS TRAVELLING AGENCIES 2 1 440.00 0
2 880.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
32552 30272
03/03/2020 2IHE00184
10548
IHEANS TRAVELLING AGENCIES 2 1 440.00 0
2 880.00 RECEIVED
Accommodation Fleet 1010260240
MAAA0180464
32148 29900
21/11/2019 2
6790
THAHLE KA-NDAYINI TRADING 1 2 912.00 0
2 912.00 RECEIVED
RM Buildings Maintenance roads 5505
MAAA0100953
32655 30358
24/03/2020
HOF0100752
56682 TUNIMART 1 2 578.50 386.78
2 965.28 RECEIVED Audit Comm Hire Charges
MAAA0051710
32636 30346
19/03/2020 31615.28
56682 TUNIMART 1 2 578.50 386.78
2 965.28 RECEIVED Audit Comm Hire Charges
MAAA0051710
32576 30297
11/03/2020 87
8082
MASINYANE AND SON (PTY) LTD 90 33.00 0
2 970.00 RECEIVED
Conferences workshops 1010260080
MAAA0551580
32507 30236
24/02/2020 513
56682 TUNIMART 1 2 592.00 388.8
2 980.80 RECEIVED
Accommodation PMU 5505260240
MAAA0051710
32547 30280
04/03/2020 4
69874 MIMO INVESTMENT 40 85.00 0
3 400.00 RECEIVED
Catering elderly programe 505260189
MAAA0381457
3261 30333 18/03/ F1 611 EZAMAVOVO TRADING 35 10.00 0 3 RECEIVED Social Services Awarenesses MAAA012
32 | P a g e
ReqNum
OrderNum
OrderDate
InvNum
CreditorCode
CreditorName
Qty
Ord
UnitPrice VATAmn
t TotalAmnt Status SegmentDESC
CSDRefNumber
2 2020 1 (PTY) LTD 0 500.00 catering 2505 8711
32657 30361
24/03/2020
FCI0009356
2658
GENBIZ TRADING 1001 PTY LTD 1 3 251.82 487.77
3 739.59 RECEIVED Lease and usage
MAAA0023122
32635 30348
24/03/2020
HOF0100753
56682 TUNIMART 1 3 780.00 0
3 780.00 RECEIVED
Car Hire Audit Committee Meetings 515260553
MAAA0051710
32547 30280
04/03/2020 4
69874 MIMO INVESTMENT 40 95.00 0
3 800.00 RECEIVED
Catering elderly programe 505260189
MAAA0381457
32623 30322
17/03/2020 707
56682 TUNIMART 1 3 312.00 496.8
3 808.80 RECEIVED
Conferences workshops 1010260080
MAAA0051710
32558 30282
04/03/2020 2IHE00180
10548
IHEANS TRAVELLING AGENCIES 1 4 079.30 0
4 079.30 RECEIVED
Accommodation HR 1010260240
MAAA0180464
32567 30284
10/03/2020 632
56682 TUNIMART 3 1 380.00 0
4 140.00 RECEIVED
Car rental Electricity 6505260240
MAAA0051710
32534 30256
27/02/2020 2020-004
56689 ISO NEWS (PTY) LTD 1 4 200.00 0
4 200.00 RECEIVED Advertising 1005260540
MAAA0610587
32648 30356
24/03/2020
HOF0100766
56682 TUNIMART 3 1 440.00 0
4 320.00 RECEIVED Accomodation
MAAA0051710
32543 30262
02/03/2020 2IHE00186
10548
IHEANS TRAVELLING AGENCIES 3 1 440.00 0
4 320.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
32555 30267
03/03/2020 589
56682 TUNIMART 3 1 440.00 0
4 320.00 RECEIVED
Accommodation MM 515260240
MAAA0051710
32515 30243
25/02/2020 2IHE00182
10548
IHEANS TRAVELLING AGENCIES 3 1 440.00 0
4 320.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
32612 30333
18/03/2020 F1
6111
EZAMAVOVO TRADING (PTY) LTD 3 1 500.00 0
4 500.00 RECEIVED
Social Services Awarenesses promotional materials 2505
MAAA0128711
32526 30246
27/02/2020 INV015
1204
YOUR MEDIA TODAY HUB AND PRINT 1 5 000.00 0
5 000.00 RECEIVED
Advertising fees Annual Report 515260554
MAAA0428800
32577 30292
11/03/2020 2IHE00191
10548
IHEANS TRAVELLING AGENCIES 3 1 735.00 0
5 205.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
32540 30260
02/03/2020 IHE00189
10548
IHEANS TRAVELLING AGENCIES 4 1 440.00 0
5 760.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
3254 30275 04/03/ 587 566 TUNIMART 4 1 440.00 0 5 RECEIVED Accommodation Fleet MAAA005
33 | P a g e
ReqNum
OrderNum
OrderDate
InvNum
CreditorCode
CreditorName
Qty
Ord
UnitPrice VATAmn
t TotalAmnt Status SegmentDESC
CSDRefNumber
1 2020 82 760.00 1010260240 1710
32542 30261
02/03/2020 2IHE00183
10548
IHEANS TRAVELLING AGENCIES 4 1 440.00 0
5 760.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
32612 30333
18/03/2020 F1
6111
EZAMAVOVO TRADING (PTY) LTD
200 30.00 0
6 000.00 RECEIVED
Social Services Awarenesses promotional materials 2505
MAAA0128711
32605 30314
12/03/2020 11
5431 SEBEKHO HOLDINGS 1 6 000.00 0
6 000.00 RECEIVED
Library awareness campaign sound
MAAA0596923
32545 30265
02/03/2020 2IHE00179
10548
IHEANS TRAVELLING AGENCIES 1 6 290.00 0
6 290.00 RECEIVED
Vehicle rental councillors 505260240
MAAA0180464
32639 30345
19/03/2020 2
69854 NONO COMPUTERS
800 8.00 0
6 400.00 PARTLY
Product owner involvement promotional material 1505
MAAA0794109
32562 30276
04/03/2020 341981 18 AUDITOR GENERAL 1 5 585.00 837.75
6 422.75 RECEIVED
External Audit Fees 1005260530
32617 30332
18/03/2020 14
70019 LIONS DEN PROJECTS 1 6 800.00 0
6 800.00 RECEIVED Office Furniture
MAAA0391611
32608 30341
19/03/2020 45
69907
VILO SECURITY SERVICES PTY LTD 1 7 000.00 0
7 000.00 RECEIVED Hiring-Public Participation
MAAA0029440
32615 30325
17/03/2020 2IHE00188
10548
IHEANS TRAVELLING AGENCIES 5 1 440.00 0
7 200.00 RECEIVED
Accommodation MM 515260240
MAAA0180464
32614 30326
17/03/2020 2IHE00189
10548
IHEANS TRAVELLING AGENCIES 5 1 440.00 0
7 200.00 RECEIVED
Accommodation Council 505260240
MAAA0180464
32510 30241
25/02/2020 540
56682 TUNIMART 5 1 440.00 0
7 200.00 RECEIVED
Accommodation Council 505260240
MAAA0051710
32509 30238
25/02/2020 545
56682 TUNIMART 5 1 440.00 0
7 200.00 RECEIVED
Accommodation Fleet 1010260240
MAAA0051710
32511 30237
25/02/2020 546
56682 TUNIMART 5 1 440.00 0
7 200.00 RECEIVED
Accommodation HR 1010260240
MAAA0051710
32516 30244
25/02/2020 6772861
15262 ARENA HOLDINGS 1 6 279.00 941.85
7 220.85 RECEIVED
Advertising fees Human resources 1010260540
MAAA0076388
32599 30312
11/03/2020 PSB25
9734
SUGUDHAV-SEWPERSADH
ATTORNEYS 1 7 257.80 0 7 257.80 RECEIVED Legal fees
MAAA0321444
34 | P a g e
ReqNum
OrderNum
OrderDate
InvNum
CreditorCode
CreditorName
Qty
Ord
UnitPrice VATAmn
t TotalAmnt Status SegmentDESC
CSDRefNumber
32651 30351
24/03/2020
HOF0100743
56682 TUNIMART 4 1 819.00 0
7 276.00 RECEIVED
Whippery support transport hire
MAAA0051710
32569 30287
10/03/2020 566
56682 TUNIMART 3 2 434.56 0
7 303.68 RECEIVED
Whippery support transport hire
MAAA0051710
32607 30318
12/03/2020 2
9574
NONGCULA AIRCONDITIONS AND REF 1 7 800.00 0
7 800.00 RECEIVED R&M Backup generator
MAAA0184040
32635 30348
24/03/2020
HOF0100753
56682 TUNIMART 2 3 907.20 0
7 814.40 RECEIVED
Flights Audit Committee Meetings 515
MAAA0051710
32605 30314
12/03/2020 11
5431 SEBEKHO HOLDINGS 1 8 000.00 0
8 000.00 RECEIVED
Library awareness campain Transport
MAAA0596923
32527 30247
27/02/2020 6773515
15262 ARENA HOLDINGS 1 6 996.00 1049.4
8 045.40 RECEIVED
Advertising Traffic 2505260540
MAAA0076388
32567 30284
10/03/2020 632
56682 TUNIMART 2 4 134.00 0
8 268.00 RECEIVED Flights Electricity 6505260240
MAAA0051710
32423 30155
30/01/2020 6760327
15262 ARENA HOLDINGS 1 7 575.00 1136.25
8 711.25 RECEIVED
Advertising fees Human resources 1010260540
MAAA0076388
32400 30137
24/01/2020 6757359
15262 ARENA HOLDINGS 1 7 575.00 1136.25
8 711.25 RECEIVED Advertising 1010260540
MAAA0076388
32647 30355
24/03/2020
MMA1029/2020
1099
M.MAGIGABA INCOPORATED 1 8 987.00 0
8 987.00 RECEIVED
Issue of summons legal services 515225010
32612 30333
18/03/2020 F1
6111
EZAMAVOVO TRADING (PTY) LTD 60 150.00 0
9 000.00 RECEIVED
Social Services Awarenesses promotional materials 2505
MAAA0128711
32577 30292
11/03/2020 2IHE00191
10548
IHEANS TRAVELLING AGENCIES 1 9 670.00 0
9 670.00 RECEIVED Air tickets Council 505260240
MAAA0180464
32515 30243
25/02/2020 2IHE00182
10548
IHEANS TRAVELLING AGENCIES 1 9 989.99 0
9 989.99 RECEIVED Air tickets Council 505260240
MAAA0180464
32612 30333
18/03/2020 F1
6111
EZAMAVOVO TRADING (PTY) LTD 1 10 000.00 0
10 000.00 RECEIVED
Social Services Awarenesses sound 2505
MAAA0128711
32558 30282
04/03/2020 2IHE00180
10548
IHEANS TRAVELLING AGENCIES 1 10 300.00 0
10 300.00 RECEIVED Car rental HR 1010260240
MAAA0180464
32092 29857
11/11/2019 6727148
15262 ARENA HOLDINGS 1 9 090.00 1363.5
10 453.50 RECEIVED
Advertising fees SCM 1005260540
MAAA0076388
35 | P a g e
ReqNum
OrderNum
OrderDate
InvNum
CreditorCode
CreditorName
Qty
Ord
UnitPrice VATAmn
t TotalAmnt Status SegmentDESC
CSDRefNumber
32430 30163
31/01/2020 6760326
15262 ARENA HOLDINGS 1 9 292.00 1393.8
10 685.80 RECEIVED
Advertising fees community services 2505260540
MAAA0076388
32556 30274
04/03/2020 713
56682 TUNIMART 1 9 292.50 1393.88
10 686.38 RECEIVED
Hire costs youth programe 505260190
MAAA0051710
32603 30317
12/03/2020 12
13678 S JABIXI 3 3 675.00 0
11 025.00 RECEIVED Office Furniture
MAAA0639778
32577 30292
11/03/2020 2IHE00191
10548
IHEANS TRAVELLING AGENCIES 1 11 237.00 0
11 237.00 RECEIVED
Vehicle rental councillors 505260240
MAAA0180464
32610 30320
17/03/2020
HOF0100751
56682 TUNIMART 1 9 821.57 1473.24
11 294.81 RECEIVED Accomodation
MAAA0051710
32544 30264
02/03/2020 588
56682 TUNIMART 8 1 440.00 0
11 520.00 RECEIVED
Accommodation HR 1010260240
MAAA0051710
32561 30281
04/03/2020 14
23255 INTELEKT HOLDINGS 1 11 801.05 0
11 801.05 RECEIVED Newspapers Library 2505
MAAA0570434
32660 30363
25/03/2020 56
23255 INTELEKT HOLDINGS 1 11 801.85 0
11 801.85 RECEIVED Newspapers Library 2505
MAAA0570434
32612 30333
18/03/2020 F1
6111
EZAMAVOVO TRADING (PTY) LTD
200 60.00 0
12 000.00 RECEIVED
Social Services Awarenesses promotional materials 2505
MAAA0128711
32545 30265
02/03/2020 2IHE00179
10548
IHEANS TRAVELLING AGENCIES 1 12 645.00 0
12 645.00 RECEIVED Air tickets Council 505260240
MAAA0180464
32558 30282
04/03/2020 2IHE00180
10548
IHEANS TRAVELLING AGENCIES 9 1 440.00 0
12 960.00 RECEIVED
Accommodation HR 1010260240
MAAA0180464
32498 30226
20/02/2020 39
55228
SANDISO ZANGOXOLO CONTRACTING
200 65.00 0
13 000.00 RECEIVED
Whippery support catering costs 505260175
MAAA0601356
32639 30345
19/03/2020 2
69854 NONO COMPUTERS
500 30.00 0
15 000.00 PARTLY
Product owner involvement promotional material 1505
MAAA0794109
32576 30297
11/03/2020 87
8082
MASINYANE AND SON (PTY) LTD 90 170.00 0
15 300.00 RECEIVED OHS Catering
MAAA0551580
32584 30295
11/03/2020 24
12789 KUMILISIWE PTY LTD
200 80.00 0
16 000.00 RECEIVED
Whippery support catering costs 505260175
MAAA0743296
32621 30323
17/03/2020 724
56682 TUNIMART 12 1 440.00 0
17 280.00 RECEIVED
Accommodation Roads 5505260240
MAAA0051710
36 | P a g e
ReqNum
OrderNum
OrderDate
InvNum
CreditorCode
CreditorName
Qty
Ord
UnitPrice VATAmn
t TotalAmnt Status SegmentDESC
CSDRefNumber
32549 30279
04/03/2020 3451
4265 KWIK-FIT BIZANA 4 3 900.00 2340
17 940.00 RECEIVED
Vehicle maintenance outsourced 1010235115
MAAA0408288
32607 30318
12/03/2020 2
9574
NONGCULA AIRCONDITIONS AND REF 1 18 982.03 0
18 982.03 RECEIVED R&M Backup generator
MAAA0184040
32658 30359
24/03/2020
CIN0109191
2658
GENBIZ TRADING 1001 PTY LTD 1 16 593.71 2489.06
19 082.77 RECEIVED Lease and usage
MAAA0023122
32594 30347
24/03/2020
VMT3D100320
25545
KATI KABIZWAYO (PTY) LTD 2 9 652.50 0
19 305.00 RECEIVED
RM Buildings Maintenance roads 5505
MAAA0441360
32558 30282
04/03/2020 2IHE00180
10548
IHEANS TRAVELLING AGENCIES 1 19 679.98 0
19 679.98 RECEIVED Flight HR 1010260240
MAAA0180464
32588 30304
11/03/2020 11
69907
VILO SECURITY SERVICES PTY LTD 1 19 800.00 0
19 800.00 RECEIVED
Transport Hire street lights 6505235001
MAAA0029440
32609 30313
12/03/2020 ATS12
18958
ATS CIVILS & TRADING PTY LTD 1 20 000.00 0
20 000.00 RECEIVED
Vehicle maintenance outsourced 1010235115
MAAA0376404
32488 30218
19/02/2020 2
69516
ABHIDA TRADING AND PROJECTS
250 85.00 0
21 250.00 RECEIVED
Community Education catering 505260695
MAAA0184147
32582 30299
11/03/2020 8
10041
LUSTARZ PROJECT (PTY) LTD 2 10 650.00 0
21 300.00 RECEIVED
Transportation youth programe 505260190
MAAA0325089
32605 30314
12/03/2020 11
5431 SEBEKHO HOLDINGS 10 2 299.00 0
22 990.00 RECEIVED
Library awareness promotional items
MAAA0596923
32582 30299
11/03/2020 8
10041
LUSTARZ PROJECT (PTY) LTD 2 11 600.00 0
23 200.00 RECEIVED
Hire costs youth programe 505260190
MAAA0325089
32457 30189
10/02/2020 352
56894
LWAZI TRADING ENTERPRISE 70 332.00 0
23 240.00 RECEIVED Acquisitions
MAAA0157663
32553 30273
04/03/2020 2IHE185
10548
IHEANS TRAVELLING AGENCIES 1 23 276.25 0
23 276.25 RECEIVED
Annual Report Consultations hiring costs 505260554
MAAA0180464
32612 30333
18/03/2020 F1
6111
EZAMAVOVO TRADING (PTY) LTD
350 70.00 0
24 500.00 RECEIVED
Social Services Awarenesses catering 2505
MAAA0128711
32575 30329
18/03/2020 100001
15362
IMIDIHLUME GENERAL TRADING (PT
250 100.00 0
25 000.00 RECEIVED
Community Education catering 505260695
MAAA0465323
32605 30314
12/03/2020 11
5431 SEBEKHO HOLDINGS 4 6 600.00 0
26 400.00 RECEIVED
Library awareness promotional items
MAAA0596923
37 | P a g e
ReqNum
OrderNum
OrderDate
InvNum
CreditorCode
CreditorName
Qty
Ord
UnitPrice VATAmn
t TotalAmnt Status SegmentDESC
CSDRefNumber
32148 29900
21/11/2019 2
6790
THAHLE KA-NDAYINI TRADING 13 2 076.00 0
26 988.00 RECEIVED
RM Buildings Maintenance roads 5505
MAAA0100953
32587 30308
11/03/2020 100
1931 OLEW TRADING PROJECTS 2 13 500.00 0
27 000.00 RECEIVED
RM Buildings Maintenance roads 5505
MAAA0082060
32592 30310
11/03/2020 2
70016 CUJANA 1 27 500.00 0
27 500.00 RECEIVED Pound Equipment
MAAA0368446
32655 30358
24/03/2020
HOF0100752
56682 TUNIMART 1 28 650.00 0
28 650.00 RECEIVED Audit Comm Hire Charges
MAAA0051710
32636 30346
19/03/2020 31615.28
56682 TUNIMART 1 28 650.00 0
28 650.00 RECEIVED Audit Comm Hire Charges
MAAA0051710
32507 30236
24/02/2020 513
56682 TUNIMART 20 1 440.00 0
28 800.00 RECEIVED
Accommodation PMU 5505260240
MAAA0051710
32598 30311
11/03/2020 psb24
9734
SUGUDHAV-SEWPERSADH
ATTORNEYS 1 29 686.00 0 29 686.00 RECEIVED Legal fees
MAAA0321444
32612 30333
18/03/2020 F1
6111
EZAMAVOVO TRADING (PTY) LTD
200 150.00 0
30 000.00 RECEIVED
Social Services Awarenesses promotional materials 2505
MAAA0128711
616 592.15 18 047.55 1 171 639.70
38 | P a g e
d. Procurement above R30 000 but below R200 000
Procurement of goods and services above R30 000.00 but below R200 000.00is done through a system of advertising on website and the tender notice board and
reports to be evaluated using PPPFA.
ReqNum
OrderNum
OrderDate
InvNum Creditor
Code CreditorName
QtyOrd
UnitPrice VATAmnt TotalAmnt Status SegmentDESC CSDRefNu
mber
32612 30333
18/03/2020 F1 6111
EZAMAVOVO TRADING (PTY)
LTD 200 150.00 - 30 000.00 RECEIVED
Social Services Awarenesses promotional materials 2505
MAAA0128711
32582 30299
11/03/2020 8 10041
LUSTARZ PROJECT (PTY)
LTD 1 33 000.00 - 33 000.00 RECEIVED
Hire costs youth programe 505260190
MAAA0325089
32612 30333
18/03/2020 F1 6111
EZAMAVOVO TRADING (PTY)
LTD 350 95.00
- 33 250.00 RECEIVED
Social Services Awarenesses catering 2505
MAAA0128711
32605 30314
12/03/2020 11 5431
SEBEKHO HOLDINGS 10 3 600.00
- 36 000.00 RECEIVED
Library awareness promotional items
MAAA0596923
32553 30273
04/03/2020 2IHE185 10548
IHEANS TRAVELLING
AGENCIES 1 36 000.00 - 36 000.00 RECEIVED
Annual Report Consultations hiring costs 505260554
MAAA0180464
32623 30322
17/03/2020 707 56682 TUNIMART 1 36 800.00
- 36 800.00 RECEIVED
Conferences workshops 1010260080
MAAA0051710
32647 30355
24/03/2020
MMA1029/2020 1099
M.MAGIGABA INCOPORATED 1 32 316.67 4 847.50 37 164.17 RECEIVED
Issue of summons legal services 515225010
32605 30314
12/03/2020 11 5431
SEBEKHO HOLDINGS 300
130.00
- 39 000.00 RECEIVED
Library Awareness campaign catering
MAAA0596923
32609 30313
12/03/2020 ATS12 18958
ATS CIVILS & TRADING PTY LTD 1 40 000.00
- 40 000.00 RECEIVED
Vehicle maintenance outsourced 1010235115
MAAA0376404
32664 30367
25/03/2020 90001284 25 CONLOG 1 38 582.10 5 787.32 44 369.42 RECEIVED
Commission on prepaid electricity
MAAA0233537
32582 30299
11/03/2020 8 10041
LUSTARZ PROJECT (PTY)
LTD 100 475.00 - 47 500.00 RECEIVED
Catering youth programe 510260190
MAAA0325089
32661 30364
25/03/2020
INVOICE NO 03 5638
DOLCE N GABANA 1 47 865.00
- 47 865.00 RECEIVED
Social Relief promotional material 2505
MAAA0408615
39 | P a g e
ReqNum
OrderNum
OrderDate
InvNum Creditor
Code CreditorName
QtyOrd
UnitPrice VATAmnt TotalAmnt Status SegmentDESC CSDRefNu
mber
TRADING
32646 30354
24/03/2020
MMA1028/2020 1099
M.MAGIGABA INCOPORATED 1 49 249.00
- 49 249.00 RECEIVED
Issue of summons legal services 515225010
32612 30333
18/03/2020 F1 6111
EZAMAVOVO TRADING (PTY)
LTD 10 5 000.00 - 50 000.00 RECEIVED
Social Services Awarenesses transport hire 2505
MAAA0128711
32653 30352
24/03/2020
MBIZLM007 COM 5523
SAKHIWE CONTRACTORS 1 59 775.00
- 59 775.00 RECEIVED
Grass cutting Tractor and Refuse Truck
MAAA0515681
32596 30307
11/03/2020 9 11223
AYOLE TRADING (PTY)LTD 1 60 890.00
- 60 890.00 RECEIVED Maintenance of Library
MAAA0424453
32600 30305
11/03/2020
mbiz lm007com 5523
SAKHIWE CONTRACTORS 1 77 558.00
- 77 558.00 RECEIVED
Grass cutting Tractor and Refuse Truck
MAAA0515681
32671 30373
03/04/2020
5.93315E+11 23
ESKOM HOLDINGS 1 81 306.45 12 195.97 93 502.42 RECEIVED
Free basic electricity 2505260130
MAAA0261424
32667 30371
26/03/2020 10 11223
AYOLE TRADING (PTY)LTD 1
99 950.00
- 99 950.00 RECEIVED
Newsletters Communication costs 515260565
MAAA0424453
32556 30274
04/03/2020 713 56682 TUNIMART 1 103 250.00
- 103 250.00 RECEIVED
Hire costs youth programe 505260190
MAAA0051710
32646 30354
24/03/2020
MMA1028/2020 1099
M.MAGIGABA INCOPORATED 1
90 220.00 13 533.00 103 753.00 RECEIVED
Issue of summons legal services 515225010
32610 30320
17/03/2020
HOF0100751 56682 TUNIMART 1 109 128.60
- 109 128.60 RECEIVED Accomodation
MAAA0051710
32597 30306
11/03/2020 7 45483
VAVA CONSULTING
(PLT)LTD 1 136 341.50 - 136 341.50 RECEIVED Waste receptacles
MAAA0614035
32666 30369
25/03/2020 MBZLM07 65846
LITHUBA LAM JV XS DOLLARS 1 120 830.30 18 124.55 138 954.85 RECEIVED Retentions withdrawal
32662 30365
25/03/2020
MLM23/03/20 25444
LIANA CONSULTING PTY
LTD 1 130 000.00 19 500.00 149 500.00 RECEIVED Consulting fees rehab of dumpsite
MAAA0020849
32583 30300
11/03/2020 17 9766
MVAZANAS CONSTRUCTION 1 150 000.00
- 150 000.00 RECEIVED
Annual Report Consultations transport hire 505260554
MAAA0015090
3265 30353 24/03/ NO 1 65896 ISANGA 1 160 000.00 160 000.00 RECEIVED Promotional Items MAAA084
40 | P a g e
ReqNum
OrderNum
OrderDate
InvNum Creditor
Code CreditorName
QtyOrd
UnitPrice VATAmnt TotalAmnt Status SegmentDESC CSDRefNu
mber
2 2020 BUSINESS SOLUTIONS
- 3432
32665 30368
25/03/2020
MBIZLMWOSAN06 4215
WOSA NAWE TRADING 16 1 145 154.55 21 773.18 166 927.73 RECEIVED Retentions withdrawal
32659 30362
25/03/2020 INA69412 2
MUNSOFT (PTY) LTD 1 161 715.25 24 257.29 185 972.54 RECEIVED Lease and usage
MAAA0175705
32656 30360
24/03/2020 INA69412 2658
GENBIZ TRADING 1001 PTY LTD 1 161 715.25 24 257.29 185 972.54 RECEIVED Lease and usage
MAAA0023122
32654 30357
24/03/2020 7 9786
BOARA CONSTRUCTION
AND PROJECT 1 188 482.50 - 188 482.50 RECEIVED
Computer Hardware IT 1010
MAAA0325137
32668 30370
26/03/2020 10 22582 KERVEL GROUP 1 190 000.00
- 190 000.00 RECEIVED Pound Storage Container
MAAA0587576
2 549 580.17 144 276.10 2 920 156.27
41 | P a g e
11. Status of Tenders
This procurement is done through a system of competitive bidding processes advertised on the provincial paper for a minimum of 14 days as per Regulation 14 as
per S19 of Treasury Regulation of MFMA.
a) Mini Tender progress for March 2020
SUPPLIER AWARD
AMOUNT PAYMENTS
PROCESSED
BALANCE OF THE
PROJECT BID NUMBER BID DETAILS APPOINTMENT DATE
45 Lustaz Projects R 125 000.00 R125 000 R 0.00 MBIZLM/19/02/20CE2020 Career Exhibition 2020 03/03/2020
46 Mvazanas Construction cc R 150 000.00 R 150 000.00 R 0.00 MBIZLM/19/02/20T31W2018/19AR Transport for 31 Wards 04/03/2020
47 Kervel Group R 190 000.00 R 190 000.00 MBIZ LM /12/2/20/s7dsc Supply and Delivery of 2 Strage Contaners 06/03/2020
48
Ingqayi Design Economic Parterhip R 188 200.00 R 0.00 R 188 200.00 MBIZ LM04/03/2001SIT
Development of Site Plans and Buidlng Plans 24/03/2020
Total R 653 200.00 R 465 000.00 R 0.00
42 | P a g e
b) Tenders awarded during the month of March 2020
Competitive Bidding
TENDER REGISTER 2019-2020
Mar-20
SUCCESSFUL TENDERER AWARDED AMOUNT TENDER NO DESCRIPTION DATE AWARDED
END USER DEPARTMENT
Fatty's Building & Civil
Construction R1 482 853.12 MBIZ LM0035EBF Erection of boundary (outside) fence pound
Monday, 02 March
2020
Community
Services
Sword Group Pty Ltd R 850 000.00
MBIZ LM 0090
MSTA
Supply and delivery of Municipal
stationery
Monday, 09 March
2020 Corporate Services
R 2 332
853.12
43 | P a g e
c) Status of current tenders
4.
PROJECTS TO BE PRESENTED Appointment Date End of Validity
1. Review of Municipal Corporate Governance of ICT Charter & Framework for 2 Years Ms. N. Ngejane 06-Mar-20 22-05-2020
2. Rehabilitation of Dumping Site for 24 Months Mr. M. Khuzwayo 06-Mar-20 02-05-2020
3. Advert Supply & Delivery of a Two Wheel Drive Tractor Mr. M. Khuzwayo 06-Mar-20 13-04-2020
4.
Supply & Delivery of Refuse Removal Protective Clothing for 36 Months Ms. N. Xoko 06-Mar-20 15-04-2020
5.
Environmental Impact Assessment Ms. N. Xoko 06-Mar-20 24-05-2020
6 Review of SCM Standard Operating Procedures and Re-Design of Process Flow Ms. N. Ngejane 06-Mar-20 28-05-2020
44 | P a g e
d) Deviations
There were no deviations from normal procurement processes identified during the month.
45 | P a g e
12. Database rotation
The following table indicates the service providers that have been utilised for the month of March 2020. This is in keeping in line with
demonstrating that we are making strides in ensuring that there is rotation of service providers and no single provider is preferred.
Sequence Quote Code
Req No
No. of Quotes
Rec
Order No.
Order Date GRV No.
Inv No Creditor Name Function Name Value Status Ward
Number
89
01 WRITTEN QUOTES 32506 2 30233 2020/02/24 27317 70
AMANDL'ENTOMBI TRADING & PRO Mayor and Council
1 380.00
RECEIVED
Ward 24
36
03 WRITTEN QUOTES 32604 4 30319 2020/03/17 27370 25
XABANI TRADING AND PROJECTS CC Mayor and Council 2 600.00 RECEIVED
Ward 13
33
03 WRITTEN QUOTES 32629 4 30339 2020/03/19 27373 60
THANKS TO GIVE TRADING AND PRO Mayor and Council 4 000.00 RECEIVED
Ward 17
34
03 WRITTEN QUOTES 32640 4 30336 2020/03/19 27372 28
XABANI TRADING AND PROJECTS CC
Economic Development/Planning 5 000.00 RECEIVED
Ward 13
35
03 WRITTEN QUOTES 32628 4 30330 2020/03/18 27371 79
ATHAYANDA MASHABANE
ENTERPRISE Economic Development/Planning 6 300.00 RECEIVED
Ward 18
23
03 WRITTEN QUOTES 32617 7 30332 2020/03/18 27383 14 LIONS DEN PROJECTS
Administrative and Corporate Support 6 800.00 RECEIVED Ward 4
40
03 WRITTEN QUOTES 32608 7 30341 2020/03/19 27366 45
VILO SECURITY SERVICES PTY LTD Mayor and Council 7 000.00 RECEIVED
Ward 13
109
03 WRITTEN QUOTES 32547 7 30280 2020/03/04 27297 4 MIMO INVESTMENT Mayor and Council
7 200.00
RECEIVED Ward 8
54
03 WRITTEN QUOTES 32603 7 30317 2020/03/12 27352 12 S JABIXI
Administrative and Corporate Support 11 025.00 RECEIVED
Ward 23
114 03 WRITTEN 32498 7 30226 2020/02/20 27292 39
SANDISO ZANGOXOLO CONTRACTING Mayor and Council 14 900.00
RECEIVED
Ward 14
46 | P a g e
Sequence Quote Code
Req No
No. of Quotes
Rec
Order No.
Order Date GRV No.
Inv No Creditor Name Function Name Value Status Ward
Number
QUOTES
107
03 WRITTEN QUOTES 32549 4 30279 2020/03/04 27299 3451 KWIK-FIT BIZANA Fleet Management 17 940.00 RECEIVED Ward 1
84
03 WRITTEN QUOTES 32584 3 30295 2020/03/11 27322 24 KUMILISIWE PTY LTD Mayor and Council 18 400.00 RECEIVED
Ward 31
28
03 WRITTEN QUOTES 32594 7 30347 2020/03/24 27378 VMT3D100320
KATI KABIZWAYO (PTY) LTD Roads 19 305.00 RECEIVED Ward 5
53
03 WRITTEN QUOTES 32588 7 30304 2020/03/11 27353 11
VILO SECURITY SERVICES PTY LTD Electricity 19 800.00 RECEIVED
Ward 13
39
03 WRITTEN QUOTES 32576 7 30297 2020/03/11 27367 87
MASINYANE AND SON (PTY) LTD Human Resources 21 120.00 RECEIVED
Ward 17
115
03 WRITTEN QUOTES 32488 4 30218 2020/02/19 27291 2
ABHIDA TRADING AND PROJECTS Mayor and Council 21 450.00 RECEIVED
Ward 22
55
03 WRITTEN QUOTES 32457 3 30189 2020/02/10 27351 352
LWAZI TRADING ENTERPRISE
Administrative and Corporate Support 23 240.00 RECEIVED Ward 7
29
03 WRITTEN QUOTES 32575 4 30329 2020/03/18 27377 100001
IMIDIHLUME GENERAL TRADING (PT Mayor and Council 25 108.00 RECEIVED
Ward 30
74
03 WRITTEN QUOTES 32587 3 30308 2020/03/11 27332 100
OLEW TRADING PROJECTS Roads 27 000.00 RECEIVED
Ward 26
13
03 WRITTEN QUOTES 32592 7 30310 2020/03/11 27393 2 CUJANA
Licensing and Control of Animals 27 500.00 RECEIVED
Ward 15
12
03 WRITTEN QUOTES 32639 3 30345 2020/03/19 27394 2 NONO COMPUTERS Tourism 28 800.00 PARTLY
Ward 13
83 04 Mini Tenders 32148 7 29900 2019/11/21 27323 2
THAHLE KA-NDAYINI TRADING Roads 29 900.00 RECEIVED
Ward 25
47 | P a g e
Sequence Quote Code
Req No
No. of Quotes
Rec
Order No.
Order Date GRV No.
Inv No Creditor Name Function Name Value Status Ward
Number
345 768.00
48 | P a g e
PART 2 – SUPPORTING DOCUMENTATION
1. The impact of COVID-19 to the municipality
The President of South Africa declared a nationwide lockdown, where all citizens, except those that
form part of essential services, were ordered to stay home for a period of 21 days. Those working in
essential services, as defined in the latter announcement, were exempted from the nationwide
lockdown declaration. The nationwide lockdown commenced at midnight on Thursday, 26 March 2020.
This announcement will broadly affect how municipalities and municipal entities undertake their
financial management responsibilities for the remainder of the 2019/20 financial year in terms of the
MFMA and more imminently the 2020/21 MTREF budget preparations process.
As a result, the Minister of Finance issued a conditional Exemption Notice in terms of section 177(1)(b)
of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) (MFMA) on 30 March 2020 to
facilitate and enable the performance of legislative responsibilities by municipalities and municipal
entities during the national state of disaster. Below are some of the areas that have been greatly
affected and will continue to be affected as long COVID-19 is still within our shores:
a) Municipal planning
The municipality has recently passed an adjustment budget which lead to a number of changes in plans
for the year. These required some activities to take place before the end of June 2020. The lockdown
has put a stop to those plans meaning they may not be implemented at by the end of the financial year.
This will lead to the following:
i. Targets not met
ii. Service delivery programmes not completed
iii. Budgets not fully spent
iv. Increase in rollover applications
v. Difficulties to comply with planning requirements for the next year’s budget
vi. Special adjustment being passed to reprioritise funds to COVID-19 initiatives
vii. Rise in Emergency procurements
b) Financial Performance
49 | P a g e
The municipality generates its revenues from a number of sources including provision of services. With
the lockdown in full force, it means that the municipality will not be generating any revenues from
some services. The most affected areas are as follows:
i. Refuse removal
Due to the number of businesses currently being closed, it means the municipality is not providing any
service to those as they do not generate any refuse. This will require the municipality to exempt those
from paying during the period of the lockdown.
ii. Electricity distribution
The municipality provides electricity in the town area with businesses forming the bigger part of the
municipality’s revenue generation capacity. With most of these businesses currently closed, it means
less electricity will be consumed and therefore less revenue generated.
iii. Licences and permits
The municipality as indicated earlier in the report runs a drivers license testing center which has
unfortunately not been operating during the lockdown and will continue not operating for the duration
of the lockdown. This means loss of income to the municipality
50 | P a g e
2. Debtors’ analysis
Summary of all Debtors
Description
R thousands
NT
Code0-30 Days 31-60 Days 61-90 Days 91-120 Days 121-150 Dys 151-180 Dys 181 Dys-1 Yr Over 1Yr Total
Total
over 90 days
Actual Bad
Debts Written
Off against
Debtors
Impairment - Bad
Debts i.t.o
Council Policy
Debtors Age Analysis By Income Source
Trade and Other Receivables from Exchange Transactions - Water 1200 – – – – – – – – – – – –
Trade and Other Receivables from Exchange Transactions - Electricity 1300 2 076 1 426 1 337 1 271 1 043 4 591 – – 11 744 6 905 – –
Receivables from Non-exchange Transactions - Property Rates 1400 894 758 779 723 655 30 087 – – 33 896 31 465 – –
Receivables from Exchange Transactions - Waste Water Management 1500 – – – – – – – – – – – –
Receivables from Exchange Transactions - Waste Management 1600 389 327 303 293 251 5 330 – – 6 894 5 874 – –
Receivables from Exchange Transactions - Property Rental Debtors 1700 213 18 18 18 19 941 – – 1 225 977 – –
Interest on Arrear Debtor Accounts 1810 443 454 459 448 428 10 393 – – 12 627 11 270 – –
Recoverable unauthorised, irregular, fruitless and wasteful expenditure 1820 – – – – – – – – – – – –
Other 1900 342 248 211 221 150 2 600 – – 3 772 2 971 – –
Total By Income Source 2000 4 357 3 231 3 108 2 974 2 546 53 942 – – 70 157 59 462 – –
2018/19 - totals only – –
Debtors Age Analysis By Customer Group
Organs of State 2200 677 760 768 803 828 29 262 – – 33 098 30 893 – –
Commercial 2300 3 419 2 250 2 108 1 945 1 513 14 040 – – 25 275 17 498 – –
Households 2400 260 221 231 226 205 10 626 – – 11 771 11 058 – –
Other 2500 (0) (0) 0 – (0) 13 – – 13 13 – –
Total By Customer Group 2600 4 357 3 231 3 108 2 974 2 546 53 942 – – 70 157 59 462 – –
EC443 Mbizana - Supporting Table SC3 Monthly Budget Statement - aged debtors - Q3 Third Quarter
Budget Year 2019/20
The table above shows municipal debtors for the month of March 2020 per income source and per customer group. It should be noted that the
municipality’s leading source of income when it comes to debtors is property rate followed by interest on arrears which is an indication that we have
more debtors that have stayed for longer periods outstanding. It should also be noted that the municipality’s majority of debtors are more than 150 days
old. This could prompt a write-off at some point if these are not collected as they overstate the municipality’s balance sheet.
The biggest category of debtors is government and they owe the municipality long outstanding amounts followed by households. This is due to some
accounts that are being disputed by consumers and government schools that public works says are not surveyed and therefore they cannot pay according
to their processes until they have been surveyed.
51 | P a g e
3. Creditors’ analysis
Budget Year 2019/20
R thousands
Creditors Age Analysis By Customer Type
Bulk Electricity 0100 – – – – – – – – – –
Bulk Water 0200 – – – – – – – – – –
PAYE deductions 0300 – – – – – – – – – –
VAT (output less input) 0400 – – – – – – – – – –
Pensions / Retirement deductions 0500 – – – – – – – – – –
Loan repayments 0600 – – – – – – – – – –
Trade Creditors 0700 94 – – – – – – – 94 –
Auditor General 0800 – – – – – – – – – –
Other 0900 – – – – – – – – – –
Total By Customer Type 1000 94 – – – – – – – 94 –
NT
Code0 -
30 Days
31 -
60 Days
Prior year totals
for chart (same
period)
EC443 Mbizana - Supporting Table SC4 Monthly Budget Statement - aged creditors - Q3 Third Quarter
181 Days -
1 Year
Over 1
Year
Total61 -
90 Days
91 -
120 Days
121 -
150 Days
151 -
180 Days
Description
The above table shows the municipality’s creditors and their ageing. All creditors recorded are within the 30
days requirement with no creditors beyond the 30 days. The municipality continues to find ways to ensure
that this status quo is maintained at all times.
4. Investment portfolio analysis
Investments by maturity
Name of institution & investment ID
Period of
Investment
R thousands Yrs/Months
Municipality
FNB CALL DEPOSIT ACCOUNT(62550717767) Not fixed Call Deposit Not fixed 28 0.5% 5 423 11 608 17 030
FNB CALL DEPOSIT ACCOUNT(62459758078) Not fixed Call Deposit Not fixed 60 0.4% 15 632 (2 521) 13 110
FNB CALL DEPOSIT ACCOUNT(62028477992) Not fixed Call Deposit Not fixed 689 0.4% 171 590 46 294 217 885
FNB CALL DEPOSIT ACCOUNT(62816769220) Not fixed Call Deposit Not fixed 3 0.4% 767 3 770
FNB CALL DEPOSIT ACCOUNT(62816773073) Not fixed Call Deposit Not fixed 3 0.4% 608 3 610
FNB CALL DEPOSIT ACCOUNT(62550715828) Not fixed Call Deposit Not fixed 4 0.4% 1 098 (98) 1 000
Municipality sub-total 787 195 118 55 288 250 406
Entities
Entities sub-total – – – –
TOTAL INVESTMENTS AND INTEREST 2 787 195 118 55 288 250 406
EC443 Mbizana - Supporting Table SC5 Monthly Budget Statement - investment portfolio - Q3 Third Quarter
Ref
Type of
Investment
Expiry date of
investment
Market value
at end of the
month
Accrued
interest for
the month
Yield for the
month 1
(%)
Market value
at beginning
of the month
Change in
market value
52 | P a g e
The table above shows the municipality’s investments performance. The table shows that the municipality’s cash
and cash equivalents increased during the month by over R55.2 million which lead to an increase in its
investments for the month of March 2020. It should however be noted that this only reflects the difference
between what was received and what was spent.
53 | P a g e
5. Allocation and grant receipts and expenditure
a) Transfers & Grants Receipts
2018/19 Budget Year 2019/20
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands %
RECEIPTS: 1,2
Operating Transfers and Grants
National Government: 267 685 296 291 296 291 65 096 296 291 222 218 65 096 29.3% 296 291
Local Government Equitable Share 230 525 260 384 260 384 65 096 260 384 195 288 65 096 33.3% 260 384
Finance Management 2 215 2 215 2 215 – 2 215 1 661 2 215
EPWP Incentive 2 335 2 452 2 452 – 2 452 1 839 2 452
Integrated National Electrification Programme 32 610 31 240 31 240 – 31 240 23 430 31 240
– – – – – – –
3 – – – – – – – –
– – – – – – – –
– – – – – – – –
– – – – – – – –
– – – – – – – –
Other transfers and grants [insert description] – – – – – – – –
Provincial Government: – 3 786 3 786 – 3 786 2 840 947 33.3% 3 786
Sport and Recreation – 500 500 – 500 375 125 33.3% 500
– – – – – – –
– – – – – – – –
4 – – – – – – – –
– – – – – – – –
Green Municipality Grant 3 286 3 286 – 3 286 2 465 822 33.3% 3 286
District Municipality: – – – – – – – –
[insert description] – – – – – – – –
– – – – – – – –
Other grant providers: – – – – – – – –
[insert description] – – – – – – –
– – – – – –
–
Total Operating Transfers and Grants 5 267 685 300 077 300 077 65 096 300 077 225 058 66 043 29.3% 300 077
Capital Transfers and Grants
National Government: 53 289 48 362 54 489 14 508 48 362 40 866 7 496 18.3% 54 489
Municipal Infrastructure Grant (MIG) 53 289 48 362 54 489 14 508 48 362 40 866 7 496 18.3% 54 489
–
–
–
–
Other capital transfers [insert description] –
Provincial Government: – – – – – – – –
[insert description] –
–
District Municipality: – – – – – – – –
[insert description] –
–
Other grant providers: – – – – – – – –
[insert description] –
–
Total Capital Transfers and Grants 5 53 289 48 362 54 489 14 508 48 362 40 866 7 496 18.3% 54 489
TOTAL RECEIPTS OF TRANSFERS & GRANTS 5 320 974 348 439 354 566 79 604 348 439 265 924 73 538 27.7% 354 566
Description Ref
EC443 Mbizana - Supporting Table SC6 Monthly Budget Statement - transfers and grant receipts - Q3 Third Quarter
The above table shows grants received during the period ended 31 March 2020.
54 | P a g e
b) Transfers & Grants Expenditure
2018/19 Budget Year 2019/20
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands %
EXPENDITURE
Operating expenditure of Transfers and Grants
National Government: 267 685 296 291 296 291 30 044 307 243 222 218 85 025 38.3% 296 291
Local Government Equitable Share 230 525 260 384 260 384 28 502 286 671 195 288 91 383 46.8% 260 384
Finance Management 2 215 2 215 2 215 48 1 215 1 661 (446) -26.8% 2 215
EPWP Incentive 2 335 2 452 2 452 – 2 452 1 839 613 33.3% 2 452
Integrated National Electrification Programme 32 610 31 240 31 240 1 494 16 905 23 430 (6 525) -27.8% 31 240
– –
–
Other transfers and grants [insert description] –
Provincial Government: – 3 786 3 786 164 1 987 2 840 (853) -30.0% 3 786
Sport and Recreation 500 500 – 185 375 (190) -50.7% 500
– –
–
–
Green Municipality Grant 3 286 3 286 164 1 802 2 465 (663) -26.9% 3 286
District Municipality: – – – – – – – –
–
[insert description] –
Other grant providers: – – – – – – – –
–
[insert description] –
Total operating expenditure of Transfers and Grants: 267 685 300 077 300 077 30 208 309 230 225 058 84 173 37.4% 300 077
Capital expenditure of Transfers and Grants
National Government: 53 289 48 362 54 489 2 900 36 000 40 866 (4 867) -11.9% 54 489
Municipal Infrastructure Grant (MIG) 53 289 48 362 54 489 2 900 36 000 40 866 (4 867) -11.9% 54 489
–
–
–
–
Other capital transfers [insert description] –
Provincial Government: – – – – – – – –
–
–
District Municipality: – – – – – – – –
–
–
Other grant providers: – – – – – – – –
–
–
Total capital expenditure of Transfers and Grants 53 289 48 362 54 489 2 900 36 000 40 866 (4 867) -11.9% 54 489
TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 320 974 348 439 354 566 33 109 345 230 265 924 79 306 29.8% 354 566
Description Ref
EC443 Mbizana - Supporting Table SC7(1) Monthly Budget Statement - transfers and grant expenditure - Q3 Third Quarter
The above table shows expenditure on grants that have been allocated to the municipality.
55 | P a g e
6. Cash flow Statement
2018/19 Budget Year 2019/20
Audited
Outcome
Original
Budget
Adjusted
Budget
Monthly
actualYearTD actual
YearTD
budget
YTD
variance
YTD
variance
Full Year
Forecast
R thousands 1 %
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Property rates 18 967 24 796 24 796 894 16 821 18 597 (1 776) -10% 24 796
Service charges 35 685 42 490 40 290 2 580 18 781 30 217 (11 436) -38% 40 290
Other revenue 11 809 7 540 8 080 2 917 10 063 6 060 4 003 66% 8 080
Government - operating 241 768 265 344 269 200 65 302 265 863 201 900 63 962 32% 269 200
Government - capital 85 899 79 602 85 729 14 508 79 602 64 296 15 306 24% 85 729
Interest 12 820 13 803 13 803 1 219 7 644 10 353 (2 709) -26% 13 803
Dividends – – – – – – –
Payments
Suppliers and employees (285 381) (339 982) (342 412) (25 482) (201 257) (256 809) (55 552) 22% (342 412)
Finance charges (66) (400) (400) – (5) (300) (295) 98% (400)
Transfers and Grants – – – (340) (1 230) – 1 230 #DIV/0! –
NET CASH FROM/(USED) OPERATING ACTIVITIES 121 501 93 194 99 086 61 597 196 282 74 315 (121 967) -164% 99 086
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE 96 – – – – – – –
Decrease (Increase) in non-current debtors – – – – – – – –
Decrease (increase) other non-current receivables – – – – – – – –
Decrease (increase) in non-current investments – – – – – – – –
Payments
Capital assets (92 663) (77 460) (94 118) (8 407) (51 770) (70 588) (18 818) 27% (94 118)
NET CASH FROM/(USED) INVESTING ACTIVITIES (92 567) (77 460) (94 118) (8 407) (51 770) (70 588) (18 818) 27% (94 118)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans – – – – – – – –
Borrowing long term/refinancing – – – – – – – –
Increase (decrease) in consumer deposits – – 72 – – – – –
Payments
Repayment of borrowing – – – – – – – –
NET CASH FROM/(USED) FINANCING ACTIVITIES – – 72 – – – – –
NET INCREASE/ (DECREASE) IN CASH HELD 28 935 15 734 5 041 53 190 144 512 3 726 4 969
Cash/cash equivalents at beginning: 94 528 157 064 119 501 107 049 119 501 107 049
Cash/cash equivalents at month/year end: 123 463 172 798 124 541 251 561 123 227 112 018
Description Ref
EC443 Mbizana - Table C7 Monthly Budget Statement - Cash Flow - Q3 Third Quarter
The above table shows how the municipality’s cash was applied during the period to account for the movement in
actual cash at the bank.
56 | P a g e
7. Statement of Financial Position
2018/19 Budget Year 2019/20
Audited
Outcome
Original
Budget
Adjusted
BudgetYearTD actual
Full Year
Forecast
R thousands 1
ASSETS
Current assets
Cash 123 463 1 201 5 041 1 155 5 041
Call investment deposits – 80 430 119 501 250 406 119 501
Consumer debtors 29 712 32 795 24 678 68 045 24 678
Other debtors 61 441 30 659 55 393 51 125 55 393
Current portion of long-term receivables – 2 400 – – –
Inventory 1 271 320 1 271 3 522 1 271
Total current assets 215 887 147 805 205 884 374 253 205 884
Non current assets
Long-term receivables – – – – –
Investments – – – – –
Investment property 25 097 6 745 25 097 25 097 25 097
Investments in Associate – – – – –
Property, plant and equipment 648 433 804 424 707 551 580 110 707 551
Biological – – – – –
Intangible 329 581 329 31 329
Other non-current assets 1 231 – 1 231 1 231 1 231
Total non current assets 675 090 811 750 734 208 606 468 734 208
TOTAL ASSETS 890 977 959 555 940 091 980 721 940 091
LIABILITIES
Current liabilities
Bank overdraft – – – – –
Borrowing – – – – –
Consumer deposits 479 457 529 460 529
Trade and other payables 43 578 34 453 32 449 64 952 32 449
Provisions 18 476 9 405 18 471 18 089 18 471
Total current liabilities 62 532 44 315 51 450 83 500 51 450
Non current liabilities
Borrowing – – – – –
Provisions 3 920 4 751 3 920 3 920 3 920
Total non current liabilities 3 920 4 751 3 920 3 920 3 920
TOTAL LIABILITIES 66 452 49 066 55 369 87 420 55 369
NET ASSETS 2 824 525 910 489 884 722 893 301 884 722
COMMUNITY WEALTH/EQUITY
Accumulated Surplus/(Deficit) 824 525 910 489 884 722 893 301 884 722
Reserves – – – – –
TOTAL COMMUNITY WEALTH/EQUITY 2 824 525 910 489 884 722 893 301 884 722
Description Ref
EC443 Mbizana - Table C6 Monthly Budget Statement - Financial Position - Q3 Third Quarter
This is the report for the period ended 31 March 2020 and we would like the Committee to consider its
contents.
57 | P a g e
8. Municipal Manager’s quality certification
Quality Certificate
I, ................................................................., the municipal manager of Mbizana Local Municipality,
hereby certify that –
Quarterly report on implementation of the budget and financial state of affairs of the
municipality
for the quarter ended 31 March 2020 has been prepared in accordance with the Municipal Finance
Management Act and Regulations made under that Act.
Print name: ____________________________________________
Municipal manager of Mbizana Local Municipality (EC443)
Signature: _____________________________________________
Date: _______________________
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