BUDGET AND TREASURY OFFICE
REPORT TO COUNCIL
OCTOBER 2017
Compiled By:______
L. Manjingolo
Chief Financial Officer
Checked by:______
L. Nonyongo
Acting Municipal Manager
Recommended by:______
Cllr. L. Mgandela
Portfolio Head: BTO
Endorsed by: ______
Cllr. T. Bikitsha
Executive Mayor
- BUDGET AND TREASURY OFFICEREPORT FORTHE QUARTER ENDING 30 SEPTEMBER 2017
- PURPOSE
The purpose of the report is to present the implementation of the budget and the financial state of affairs of the municipality for the quarter ending 30 September 2017.
- LEGAL AND OR STATUTORY REQUIREMENT
(a)In terms of section 71 of the Municipal Finance Management ActNo. 56 of 2003 the Accounting Officer has a responsibility to submit to the Executive Mayor within 10 working days the state of the Municipality’s budget.
(b)In terms of section 52(d) of the Municipal Finance Management ActNo. 56of 2003, the Mayor of a municipality must within 30 days of the end of each quarter, submit a report to the council on the implementation of the budget and financial state of affairs of the municipality.
(c)In terms of section 11(4)(a) of the Municipal Finance Management ActNo. 56of 2003, the accounting officer must within 30 days after the end of each quarter table in the municipal council a consolidated report of all withdrawals made during the quarter.
- BACKGROUND EXPOSITION, FACTS AND OR PROPOSAL
The council approved the budget of the municipality on the 23rd of May 2017.
The report presents the implementation of the approved budget including the financial performance and financial position of the municipality for the period ending30 September 2017.
The report further gives detail on the implementation of finance related policies as approved by council.
- OPERATING BUDGET IMPLEMENTATION
The following table summarizes revenue from July 2017 to30 September 2017:
Description / 2016/17 / Budget Year 2017/18Audited Outcome / Original Budget / YearTD Budget / YearTD actual / YTD variance / YTD variance
R thousands / R'000 / R'000 / R'000 / R'000 / R'000 / %
Revenue By Source
Property rates / 19 472 / 19 472 / 4 868 / 5 724 / 13 748 / 118%
Service charges - refuse revenue / 4 100 / 4 100 / 1 025 / 444 / 3 655 / 43%
Rental of facilities and equipment / 2 317 / 3 203 / 801 / 216 / 2 987 / 27%
Interest earned - external investments / 4 500 / 5 661 / 1 415 / 1 187 / 4 474 / 84%
Interest earned - outstanding debtors / 4 525 / 5 383 / 1 346 / – / 5 383 / 0%
Fines, penalties and forfeits / 1 000 / 9 057 / 2 264 / 143 / 8 914 / 6%
Licences and permits / 4 283 / 1 015 / 254 / 680 / 335 / 268%
Agency services / 229 071 / 3 900 / 975 / 833 / 3 067 / 85%
Transfers and subsidies / 972 / 231 062 / 57 765 / 94 938 / 136 124 / 164%
Other revenue / 590 / 1 200 / 300 / 319 / 881 / 106%
Gains on disposal of PPE / 1 100 / 275 / – / 1 100 / 0%
Total Revenue (excluding capital transfers and contributions) / 273 029 / 285 153 / 71 288 / 97 501 / 187 652 / 137%
EXPLANATORY NOTES ON REVENUE
Comparisons of the figures are based on year to date budget (YTD) against year to date income collected.
The municipality has billed R5 724 000which is 118% on property rates compared to the targeted billing of R 4868 000as per the budget.
The Service charges (refuse collection) billing are 43% compared to the budget.Interest from investments is sitting at 84%.
The transfers recognised are 164% compared to the targeted R57765000 with Licence and permits at 268%, agency servies income at 85% and fines income at 6%.
- COMPARISON BETWEEN AMOUNT BILLED AND COLLECTEDAMOUNT FOR THEQUARTER
SERVICE TYPE / BILLING FOR THE QUARTER
R / COLLECTION FOR THE QUARTER
R / VARIANCE
R / VARIANCE
%
Rates / 5723683 / 3427 609 / 2296 074 / 60%
Rental / 215627 / 113 259 / 102 368 / 53%
Refuse / 444404 / 72 615 / 371 789 / 16%
TOTAL / 6383714 / 3613 483 / 2770 231 / 57%
- EXPENDITURE INCURRED ASPER APPROVEDBUDGET FROM 01 JULY 2017 TO30 SEPTEMBER 2017
Description / 2016/17 / Budget Year 2017/18
Audited Outcome / Original Budget / YearTD Budget / YearTD actual / YTD variance / YTD variance
R thousands / R'000 / R'000 / R'000 / R'000 / R'000 / %
Expenditure By Type
Employee related costs / 154 386 / 175 121 / 58 374 / 55 092 / 120 029 / 94%
Remuneration of councillors / 27 021 / 26 687 / 6 672 / 3 656 / 23 031 / 55%
Debt impairment / 3 000 / 11 893 / 2 973 / 1 910 / 9 983 / 64%
Depreciation & asset impairment / 47 099 / 113 084 / 28 271 / 4 291 / 108 793 / 15%
Finance charges / 2 024 / 940 / 235 / 52 / 888 / 22%
Bulk purchases / 7 000 / 9 039 / 2 260 / 1 195 / 7 844 / 53%
Other materials / 6 698 / 6 376 / 1 594 / 311 / 6 065 / 20%
Contracted services / 7 349 / 10 844 / 2 711 / 3 409 / 7 435 / 126%
Other expenditure / 68 551 / 44 248 / 11 062 / 15 775 / 28 473 / 143%
Total Expenditure / 323 128 / 398 231 / 99 558 / 28 350 / 369 881 / 28%
Surplus/(Deficit) / (50 099) / (113 078) / (28 270) / 69 151 / (182 229) / -245%
Transfers and subsidies - capital (monetary allocations) (National / Provincial and District) / 68 776 / 17 194 / 3 147 / 65 629 / 18%
Surplus/(Deficit) after capital transfers & contributions / (50 099) / (113 078) / (28 270) / 69 151 / (182 229) / -245%
- EXPENDITURE INCURRED PER DIRECTORATE ON SALARIES AND ALLOWANCES AS AT 30 SEPTEMBER 2017
SALARIES, WAGES AND ALLOWANCES / ORIGINAL BUDGET 2017/2018 R / YTD BUDGET 2017/2018 R / YTD ACTUAL 2017/2017 R / VARIENCE 2016/2017 R / YTD ACTUAL 2016/2017 %
Infrastructural Development & Planning / 27 606 384 / 9 202 128 / 7 761 454 / 1 440 674 / 84
Community Services / 58 541 860 / 19 513 953 / 17 358 508 / 2 155 445 / 89
Corporate Services / 29 243 615 / 9 747 872 / 9 909 389 / -161 517 / 102
Budget & Treasury Office / 25 173 292 / 8 391 097 / 7 658 012 / 733 085 / 91
Office of the Municipal Manager / 9 674 205 / 3 224 735 / 2 126 603 / 1 098 132 / 66
Strategic Management / 9 680 741 / 3 226 914 / 3 721 813 / -494 899 / 115
Local Economic Development / 7 291 601 / 2 430 534 / 2 269 608 / 160 926 / 93
Office of the Executive and Speaker / 34 595 786 / 11 531 929 / 7 942 281 / 3 589 648 / 69
TOTAL EXPENDITURE / 201 807 484 / 67 269 161 / 58 747 668 / 8 521 493 / 87
- DEBT MANAGEMENT
8.1CONSUMER DEBTORS
Below is a table showing debt owed to the municipality. An amount of R 100223 259 is still outstanding as at 30September 2017.
Institution Name / Institution Code / Amount (R)Dept. of Education / 1001 / 17 447
Dept. of Justice / 1002 / 527 475
Dept. of Health / 1003 / -
Dept. of Public Works / 1004 / 5216 143
Councilors / 2001 / -
Employees / 2002 / -
ECDC / 3000 / 2141 907
Butterworth Businesses / 3001 / 19932 203
Centane Businesses / 3002 / 601 708
Nqamakwe Businesses / 3003 / 1574 040
Butterworth Residences / 4001 / 80 282
Nqamakwe Residences / 4002 / 1533 539
Centane Residences / 4003 / 1276 996
Staff Rental / 4004 / -
Flats / 4005 / 5900 631
Cuba / 4006 / 6841 539
Mchubakazi / 4007 / 6694 929
Ibika / 4008 / 7262 085
Town Residences / 4009 / 11843 023
Msobomvu / 4010 / 8388 848
Vulli Valley / 4011 / 12453 760
Zizamele / 4012 / 5837 235
Coloured / 4013 / 1346 395
Municipal properties / 4014 / -
Farms / 9000 / 753 073
TOTAL / 100223 259
8.2 DEBTORS AGE ANALYSIS
8.2.1AGE ANALYSIS PER SERVICE TYPE
TYPE OF SERVICE / Current / 30 Days / 60 Days / 90 Days / 120 Days / 150 Days / Total debtR / R / R / R / R / R / R
Rates / 837 639 / 1681 759 / 1608 060 / 1533 108 / 1508 536 / 72938 492 / 78096 432
Rental / 185 218 / 186 171 / 191 711 / 132 529 / 132 194 / 1375 560 / 2203 382
Refuse / 343 589 / 335 055 / 334 807 / 331 677 / 329 997 / 18620 029 / 20295 155
TOTAL / 1366 447 / 2202 985 / 2134 577 / 1997 314 / 1970 727 / 92930 467 / 100223 259
8.2.2 AGE ANALYSIS OF DEBTORS BY INSTITUTION
INSTITUTION / CURRENT / 30 DAYS / 60 DAYS / 90 DAYS / 120 DAYS / 150 DAYS / TOTAL DEBTGovernment / 96 371 / 139 243 / 138 366 / 137 285 / 131 618 / 5773 482 / 5761 065
Business / 435 936 / 541 489 / 460 284 / 358 428 / 345 806 / 23200 429 / 24249 858
Households / 827 900 / 1500 748 / 1514 584 / 1480 418 / 1472 281 / 63294 773 / 69459 263
Farms / 6239 / 21 504 / 21343 / 21 182 / 21 022 / 661 783 / 753 073
TOTAL / 1366 447 / 2202 985 / 2134 577 / 1997 314 / 1970 727 / 92930 467 / 100223 259
8.2.3AGE ANALYSIS FOR DEBT OWED BY STAFF AND COUCILLORS
AGE ANALYSIS FOR STAFF
Clause 10 of schedule 2 – “A staff member of a municipality may not be in arrears to the municipality for rates and service charges for a period longer than three months and a municipality may deduct any outstanding amounts from staff member’s salary after this period.”There are no staff members owing the municipality for more than three months
AGE ANALYSIS FOR COUNCILLORS
In terms of Section 12A of the Municipal Systems Act, 2000: “A councilor may not be in arrears to the municipality for rates and service charges for a period of longer than 3 months’’. There are no councilors owing the municipality for more than three months.
9.INDIGENT POLICY IMPLEMENTATION FROM 01 JULY 2017 TO 30 SEPTEMBER 2017
9.1 INDIGENT RESIDENTS BENEFITING ON ALTERNATIVE ENERGY
COMPANY NAME / DELIVERED- JULY 17 / DELIVERED
- AUG 17 / DELIVERED
– SEPT 17 / COMMENT
1 / BUTTERWORTH (Cluster 1) / NO / NO / NO / Service providers not yet appointed
2 / NQAMAKWE (Cluster3) / NO / NO / NO / Service providers not yet appointed
3 / CENTANE (Cluster 2) / NO / NO / NO / Service providers not yet appointed
- Contract expired, waiting for the appointment of new service providers.
9.2 INDIGENT RESIDENTS BENEFITING ON FREE BASIC ELECTRICITY
JULY 17 / AUGUST 17 / SEPTEMBER 176 806 Households / 6 959 Households / 6 900 Households
9.3SUMMARY OF INDIGENTS PER WARD FOR PARAFFIN & ELECTRICITY AS AT 30 SEPTEMBER 2017
WARD / NUMBER OF APPLICANTS / RATES / ALTERNATIVE SOURCE OF ENERGY( PARAFFIN) / FREE BASIC ELECTRICITY1 / 465 / 1 / 460 / 4
2 / 759 / 6 / 489 / 264
3 / 402 / 30 / 171 / 201
4 / 360 / 81 / 212 / 67
5 / 555 / 0 / 495 / 60
6 / 134 / 108 / 0 / 26
7 / 461 / 0 / 59 / 402
8 / 569 / 0 / 100 / 469
9 / 421 / 0 / 211 / 210
10 / 311 / 0 / 113 / 198
11 / 566 / 0 / 118 / 448
12 / 369 / 0 / 170 / 199
13 / 495 / 0 / 194 / 301
14 / 594 / 0 / 263 / 331
15 / 1202 / 0 / 1202 / 0
16 / 527 / 0 / 270 / 257
17 / 377 / 0 / 216 / 161
18 / 331 / 0 / 110 / 221
19 / 326 / 0 / 119 / 207
20 / 668 / 0 / 20 / 648
21 / 293 / 0 / 122 / 171
22 / 932 / 0 / 169 / 763
23 / 727 / 0 / 165 / 562
24 / 796 / 0 / 152 / 644
25 / 724 / 0 / 431 / 293
26 / 569 / 0 / 254 / 315
27 / 688 / 0 / 391 / 297
28 / 700 / 0 / 500 / 200
29 / 706 / 0 / 231 / 475
30 / 843 / 0 / 293 / 550
31 / 855 / 0 / 233 / 622
TOTAL NO / 17725 / 226 / 7933 / 9566
10.GOVERNMENT GRANTS RECEIVED AND SPENT AS AT 30 SEPTEMBER 2017
10.1INVESTMENTS
The table below shows balances on the municipality’s bank accounts. Bank reconciliations are done and are balanced every month. Interests earned from investments are transferred to the operating account on a monthly basis. These are the cumulative movements as at 30 September 2017.
NAME / OPENING / DEPOSITS / INTEREST / INTEREST TRANSFERRED / Redemptions / Withdrawals / CLOSINGMunicipal Support Programme (MSP) / 25 068 / 360 / (366) / 25 062
Municipal Infrastructure Grant Investment (MIG) / 1 604 254 / 20 683 000 / 255 621 / (195 788) / (2 043 126) / 20 303 962
Finance Management Grant (FMG) / 1 162 / 1 700 000 / 15 345 / (7 964) / (78 588) / 1 629 955
T / A Intervention / 23 756 / 341 / (347) / 23 751
Mnquma Call Account / 357 926 / 85 000 000 / 782 029 / (32 699 267) / (33 924 281) / 19 516 407
DEAT Investment /
225 786 / 3 245 / (3 295) / 225 736
Electrification (INEG) / 378 242 / 10 304 / (13 812) / (372 411) / 2 322
EPWP /
1 022 / 579 000 /
1 954 / (727) / (324 800) / 256 449
EDSMG / 6 904 589 / 99 714 / (101 224) / (48) / 6 903 031
LGSETA / 400 366 / 5 716 / (5 866) / 400 217
TOTAL / 9 922 171 / 107 962 000 / 1 174 631 / (33 028 656) / (36 743 254) / 49 286 892
10.2 UNSPENT GRANTS AND SUBSIDIES
Unspent grants are reconciled with their relevant accounts on a monthly basis and the expenditure incurred on grant funding is transferred from the investment account to the primary account and revenue is recognized when the expenditure is incurred.
GRANT NAME / OPENING BALANCE AS AT 01 JULY 2017 / GRANTS RECEIVED / EXPENDITURE INCURRED / CLOSING BALANCE AS AT 30 SEPTEMBER 2017Municipal Support Programme / 24946 / - / - / 24946
Municipal Infrastructure Grant Investment / 1569 087 / 20683 000 / (2492 981) / 19759 105
Finance Management Grant / - / 1700 000 / (117 881) / 1582 119
T / A Intervention / 23,623 / - / - / 23,623
DEAT Investment / 224,691 / - / - / 224,691
Electrification / 372 411 / - / (372 411) / -
EPWP / - / 579 000 / (463 314) / 115 686
EDSMG / 6870 040 / - / - / 6870 040
LGSETA / 398 416 / - / - / 398 416
TOTAL / 9483 214 / 22962 000 / (3446 588) / 28998 625
11.ACTUAL BORROWINGS
The table below shows details of loans taken by the municipality, payments made to date and closing balances as at 30 September 2017.
Lessor / Description / Cash Price / Opening Balance / Direct Payments / Interest recognised / Capital Repayment / Outstanding Capital BalanceToyota Financial Services / Toyota Hilux 2.5 / 225 873 / 23 443 / 12 050 / 468 / 11 581 / 11 862
Toyota Financial Services / Toyota Hilux 2.5 / 225 873 / 23 443 / 12 050 / 468 / 11 581 / 11 862
Toyota Financial Services / Toyota Hilux 2.5 / 235 089 / 24 400 / 12 541 / 487 / 12 054 / 12 346
Toyota Financial Services / Toyota Hilux 2.5 / 225 782 / 23 434 / 12 045 / 468 / 11 576 / 11 857
912 616 / 94 720 / 48 685 / 1 892 / 46 792 / 47 928
- CREDITORS AND PAYROLL EXPENDITURE FROM JULY 2017 TO SEPTEMBER2017
12.1 AMOUNT PAID TO CREDITORS FROM JULY 2017 TO SEPTEMBER 2017
JULY / AUGUST / SEPTEMBER / TOTALR 7035064.55 / R 7076188.85 / R 6631155.09 / R 20742408.49
12.2 SALARIES AND ALLOWANCES FROM JULY 2017 TO SEPTEMBER 2017
EXPENDITURE / JULY / AUGUST / SEPTEMBER / TOTALSalaries / 10 833 921 / 10 114 925 / 10 197 984 / 31 146 829
Salaries Councillors / 1 151 033 / 1 165 884 / 1 165 884 / 3 482 800
Traditional Leaders / 29 750 / 86 700 / 56 950 / 173 400
Audit Committee / 13 800 / 15 249 / 50 000 / 79 049
Unpaid leave / -8 622 / -3 704 / -21 192 / -33 517
Wages (casuals) / 163 200 / 161 600 / 138 514 / 463 314
Wages (stipend) / 308 000 / 308 000 / 308 000 / 924 000
Bonus / 137 438 / 37 059 / 9 654 235 / 9 828 733
Leave Pays / 0 / 52 127 / 42 481 / 94 609
Overtime / 14 446 / 67 287 / 48 708 / 130 441
Housing Subsidy / 10 388 / 10 388 / 10 388 / 31 164
Travel / 606 104 / 606 104 / 613 869 / 1 826 077
Data Card / 17 400 / 18 000 / 18 000 / 53 400
M/Vehicle / 377 077 / 382 028 / 382 028 / 1 141 132
Other Allowance / 502 420 / 443 091 / 339 419 / 1 284 930
Pension / 1 807 236 / 1 811 610 / 1 813 499 / 5 432 344
Med. Aid / 689 701 / 693 962 / 690 743 / 2 074 407
Uif / 73 316 / 72 528 / 72 034 / 217 879
TOTAL / 16 726 609 / 16 042 838 / 25 581 545 / 58 350 992
- CAPITAL AND OPERATING PROJECTS AS AT 30 SEPTEMBER 2017
13.1 CAPITAL PROJECTS PER DIRECTORATE
DIRECTORATE / PROPOSED BUDGET 2017-2018 / ACTUAL TO DATE / VARIENCE / % VARIENCELocal economic development / 100 000 / 0 / 100 000 / 0%
Strategic management / 50 000 / 22 370 / 27 630 / 45%
Infrastructural planning and development / 65 614 350 / 3 385 700 / 62 228 650 / 5%
Community services / 325 540 / 41 386 / 284 154 / 13%
Budget and treasury / 271 233 / 46 224 / 225 009 / 17%
Corporate services / 370 000 / 171 690 / 198 310 / 46%
TOTAL PER DIRECTORATE / 66 731 123 / 3 667 370 / 63 063 753 / 5%
13.2 CAPITAL PROJECTS PER FUNDING SOURCES
FUNDING SOURCES / PROPOSED BUDGET 2017-2018 / ACTUAL TO DATE / VARIENCE / % VARIENCEEquitable share / 2 222 774 / 281 664 / 1 941 110 / 13%
Intergrated national electrification plan / 5 000 000 / 1 182 079 / 3 817 921 / 24%
Municipal infrastructure grant / 59 508 350 / 2 203 620 / 57 304 730 / 4%
CAPITAL PROJECTS PER FUNDING / 66 731 124 / 3 667 364 / 63 063 760 / 5%
13.3 CAPITAL PROJECTS PER CLUSTER
CLUSTER / PROPOSED BUDGET 2017-2018 / ACTUAL TO DATE / VARIENCE / % VARIENCEBasic Service Delivery and Infrastructure / 65 939 890 / 3 427 086 / 62 512 804 / 5%
Financial Viability / 271 234 / 46 224 / 225 010 / 17%
Good governance and Public Participation / 50 000 / 22 364 / 27 636 / 45%
Local Economic Development / 100 000 / 0 / 100 000 / 0%
Municipal Transformation and Institutional Development / 370 000 / 171 690 / 198 310 / 46%
TOTAL PER CLUSTER / 66 731 124 / 3 667 364 / 63 063 760 / 5%
The tables above illustrate that Capital project expenditure to date is5% compared to the budget.
13.4OPERATING PROJECTS PER DIRECTORATE
DIRECTORATE / PROPOSED BUDGET 2017-2018 / ACTUAL TO DATE / VARIENCE / % VARIENCEOffice of the municipal manager / 200 000 / 22 668 / 177 332 / 11
Local economic development / 309 000 / 0 / 309 000 / 0
Strategic management / 2 454 000 / 527 926 / 1 926 074 / 22
Infrastructural planning and development / 5 900 650 / 1 453 543 / 4 447 107 / 25
Community services / 1 635 640 / 268 440 / 1 367 200 / 16
Budget and treasury / 4 026 461 / 980 483 / 3 045 978 / 24
Corporate services / 2 275 000 / 361 154 / 1 913 846 / 16
TOTAL PER DIRECTORATE / 16 800 751 / 3 614 214 / 13 186 537 / 22
13.5 OPERATING PROJECTS PER FUNDING SOURCE
FUNDING SOURCES / PROPOSED BUDGET 2017-2018 / ACTUAL TO DATE / VARIENCE / % VARIENCEEquitable share / 9 600 101 / 1 338 826 / 8 261 275 / 14
Finance management grant / 1 700 000 / 821 846 / 878 154 / 48
Municipal infrastructure grant / 3 184 650 / 990 228 / 2 194 422 / 31
Expande public works programme / 2 316 000 / 463 314 / 1 852 686 / 20
CAPITAL PROJECTS PER FUNDING / 16 800 751 / 3 614 214 / 13 186 537 / 22
13.6OPERATING PROJECTS PER CLUSTER
CLUSTER / PROPOSED BUDGET 2017-2018 / ACTUAL TO DATE / VARIENCE / % VARIENCEGood Governance and Public Participation / 2 654 000 / 550 624 / 2 103 376 / 21
Financial Viability / 4 226 461 / 1166 185 / 3060 276 / 28
Basic Service Delivery and Infrastructure Development / 4 791 000 / 638 737 / 4 152 263 / 13
Local Economic Development / 309 000 / 0 / 309 000 / 0
Municipal Transformation and Institutional Development / 3 184 650 / 990 228 / 2 194 422 / 31
Socio-Economic / 1 635 640 / 268 440 / 1 367 200 / 16
TOTAL PER CLUSTER / 16 800 751 / 3 614 214 / 13 186 537 / 22
The tablesabove illustratethat operating project expenditure to date is22% compared to the budget.
14.GOVERNMENT GRANTS RECEIVED
The municipality on yearly basis is allocated with funds from the Division of Revenue Act (DoRA), a letter of allocation was received and as at 30 September 2017 the municipality has received R 117555 000. Interest earned from these grants is transferred to operating bank account on monthly basis. Below is the detail of grants received to date.
Allocation as per DoRA / Allocation as per DoRA / Actual Received / Date ReceivedMIG / 63 693 000.00 / 20 638 000.00 / 17-07-2017
TOTAL / 63 693 000.00 / 20 638 000.00
Minerals & Energy (INEG) / 5 000 000.00
TOTAL / 5 000 000.00
Equitable share / 227 129 000.00 / 94 638 000.00 / 07-07-2017
TOTAL / 227 129 000.00 / 94 638 000.00
FMG / 1 700 000.00 / 1 700 000.00 / 26-07-2017
TOTAL / 1 700 000.00 / 1 700 000.00
EPWP / 2 316 000.00 / 579 000.00 / 15-08-2017
TOTAL / 2 316 000.00 / 579 000.00
TOTAL / 299 838 000.00 / 117 555 000.00
15.IMPLEMENTATION OF SCM POLICY
Demand management
1)Procurement Plan
Supply Chain Management division has coordinated the development of 2017/2018 procurement plan in consultation with end-user directorates through IDP directorate sessions. The municipal directorates’ annual procurement plans were linked to the annual budget, and were consolidated to be the municipal annual procurement plan for 2017/2018 financial year.
2)Implementation of the 2017/2018 procurement plan
- A spread sheet of advertised tenders for the quarter: July 2017 – September 2017
Tender No / Advert Date / Description / Closing Date
MNQ/49/16-17 / 27 July 2017 / Compilation of Immovable Asset Register for 2016-2017 Financial year / 12 July17
MNQ/48/16-17 / 27 July 2017 / Preparation of AFS & Movable Asset Register for / 12 July 17
SCM/MNQ/ 10-16/17-18 / 15 August 2017 / Supply and Delivery of Paraffin for Cluster 1-7 / 24-25 September 2017
SCM/MNQ/21/17-18 / 28 August 2017 / Training of 72 councillors and Traditional Leaders on Leadership Skills / 07 September 2017
SCM/MNQ/22/17-18 / 28 August 2017 / Training of 72 councillors and Traditional Leaders on Reporting Skills / 07 September 2017
SCM/MNQ/22/17-18 / 28 August 2017 / Training of 72 Councillors on Presentation Skills / 07 September 2017
SCM/MNQ/08/17-18 / 30 August 2017 / Municipal Finance Management Programme / 11 September 2017
SCM/MNQ/23/17-18 / 30 August 2017 / Training of seventy-two (72) Councillors and Traditional Leaders on Policy Development and Implementation / 11 September 2017
SCM/MNQ/09/17-18 / 28 September 2017 / Training of General Workers and Office Assistants on Occupational Health and Safety / 08 September 2017
SCM/MNQ/18/17-18 / 28 September 2017 / Training of 35 Office Assistants on Customer care / 06 September 2017
SCM/MNQ/19/17-18 / 30 September 2017 / Learnership Programme for thirteen (13) MPAC Members / 11 September 2017
SCM/MNQ/24/17-18 / 11 September 2017 / Supply and Delivery of Diaries / 20 September 2017
SCM/MNQ/25/17-18 / 11 September 2017 / Supply and Delivery of Calendars / 20 September 2017
SCM/MNQ/07/17-18 / 29 August 2017 / Supply, Delivery and Installation of Office Door and Indoor Directional Signage’s / 08 September 2017
SCM/MNQ/17/17-18 / 19 September 2017 / Radio Broadcast Services / 29 September 2017
SCM/MNQ/09/17-18 / 29 August 2017 / Design, Delivery and Installation of Mnquma Local Municipality Sign Boards / 08 September 2017
Deviations – Regulation 36
Description / Amount / Service provider / Reasons for Deviation / Responsible DepartmentServices for Grader - FNY 738 EC / R 12 657.65 / Peugair Border cc / The Grader for FNY 738 EC is the product of Peugair Border cc and needs service. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations / Budget & Treasury
Repairs for Lowbed Trailer / R 20 451.65 / TFM Manufacturing / The Lowbed Trailer for FWR 647 EC is the product of TFM Manufacturing and needs repairs. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Services and Repairs of TLB -HLH 282 / R 6 815.28 / Bell Equipment / The TLB for HLH 282 EC is the product of Bell Equipment and needs service/ repairs at Bell Equipment. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Service for Mnquma 2 EC / R 5 133.10 / Buffalo Toyota / The Toyota Hilux for MNQUMA 2 EC is the product of Buffalo Toyota and needs a service at Buffalo Toyota. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Repairs for Mnquma 3 EC / R 12 984.85 / Buffalo Toyota / The Toyota Hilux for MNQUMA 3 EC is the product of Buffalo Toyota and needs a service and repairs at Buffalo Toyota. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Renewal of caseware software / R 72 711.48 / Adapt IT (Pty) Ltd / The Adapt IT (Pty) Ltd is the only service provider that provides a caseware software license that is used by Mnquma Local Municipality in preparing GRAP compliant financial statements. Therefore the reason for deviation is based in terms of SCM regulation 36 (i) (a) (ii) that allows the accounting officer to deviate if such goods or services are produced or available from a single provider only. / Budget & Treasury
Services and Repairs of TLB -HLH 282 / R 6 815.28 / Buffalo Toyota / The TLB for HLH 282 EC is the product of Bell Equipment and needs service/ repairs at Bell Equipment. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Service for Mnquma 5 EC / R 6 239.70 / Buffalo Toyota / The Toyota Hilux for MNQUMA 5 EC is the product of Buffalo Toyota and needs a service at Buffalo Toyota. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Repairs for Water Tanker FXZ EC / R 32 431.32 / East London Bus & Truck / The Water Tanker for FXZ 839 EC is the product of East London Truck & Bus and needs repairs at East London Truck & Bus. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Service for Toyota Corolla FCX 571 EC / R 2 771.70 / Buffalo Toyota / The Toyota Corolla for FCX 571 EC is the product of Buffalo Toyota and needs a service at Buffalo Toyota. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Repairs for a Grader / R 7 504.62 / Peugair Border cc / The Grader for FNY 738 EC is the product of Peugair Border cc and need repairs at Peugair Border. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Repairs for Lowbed Trailer FWR 647 / R 16 621.20 / TFM Manufacturing (Pty) Ltd / The Lowbed Trailer for FWR 647 EC is the product of TFM Manufacturing (Pty) Ltd and need repairs at TFM Manufacturing (Pty) Ltd. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Repairs for a Grid Roller / R 19 879.00 / Bell Equipment / The Grid Roller is the product of Bell Equipment and need repairs at Bell Equipment. Therefore reasons for deviation is in terms of regulation 36 (i) (a) (v) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To request three quotations). / Budget & Treasury
Replacement of server room UPS batteries / R 82 194.00 / CHM Vuwani Computer Solutions / The request for formal quotations for the Replacement of Server Room UPS Batteries was advertised for seven (7) days on the notice boards and municipal website but there was only one (01) quotation received, which is CHM Vuwani Computer Solutions (EC) (Pty) Ltd. Therefore the reason for deviation is based in terms of SCM regulation 36 (i) (a) (ii) that allows the accounting officer to deviate in any exceptional case where it is impractical or impossible to follow the official procurement processes (To obtain three written quotations). / Budget & Treasury
Bids Awarded Register
NO / BID/TENDER NUMBER / DATE ADJUDICATED / DATE APPOINTED / DESCRIPTION / APPOINTED BIDDER / BID AMOUNT (R) / DURATION OF CONTRACT1. / MNQ/SCM/27/16-17 / 28/06/2017 / 07/07/2017 / Provision of Comprehensive insurance cover / Marsh (Pty) Limited / 583 075.00 / 01 year
2. / MNQ/SCM/20-16-17 / 08/08/2017 / 08/08/2017 / Supply & Installation Fleet Management System / Tracker Connect (Pty) Ltd / 788340.00 / 03 years
3. / MNQ/SCM/48/16-17 / 08/08/2017 / 08/08/2017 / Preparation of GRAP Compliant Annual Financial Statements, Movable Asset Register, and Review of Performance Management Report for 2016/2017 Financial Year / Audit & Risk Management Solutions (Arms –Audit) / 942549.00 / 06 Months
4. / MNQ/SCM/49/16-17 / 08/08/2017 / 08/08/2017 / Compilation of Immovable Asset Register for 2016/2017 Financial Year / Morar Incorporated / 623044.00 / 06 Months
16.IMPLEMENTATION OF ASSET MANAGEMENT POLICY
16.1 PROPERTY PLANT AND EQUIPMENT
The following table is for the institutions asset register as well as additional assets purchased as at 30September 2017: