RUSTENBURG LOCAL MUNICIPALITY NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008 MUNICIPALITY 2007 R 2008 R 1 HOUSING DEVELOPMENT FUND 63,771,481 59,058,090 4,713,390 16,379,068 11,098,657 5,280,411 Housing Development Fund Unappropriated Surplus Loans extinguished by Government on 1 April 1998 (Old Housing Development Fund) 16,379,068 11,098,657 5,280,411 63,771,481 59,058,090 4,713,390 2008 R GROUP Restated 2007 R
The Housing Development Fund is represented by the following assets and liabilities 55,513,999 2,015,769 (2,205,405) (169,053) (2,869,834) 151,085 6,621,529 59,058,090 20,995,560 (469,447) 4,863,974 (15,500,068) (84,903) (5,479,074) 151,085 6,621,529 11,098,657 Bank Account Unspecified income related to Housing Debtors - VAT claimable Creditors-housing Other Housing - retention Adjustments to VAT pay over Amount to be carried from Primary Account to ring fence housing Total Housing Development Fund Assets and Liabilities 20,995,560 (469,447) 4,863,974 (15,500,068) (84,903) (5,479,074) 151,085 6,621,529 11,098,657 55,513,999 2,015,769 (2,205,405) (169,053) (2,869,834) 151,085 6,621,529 59,058,090
2 LONG-TERM LIABILITIES Other long-term loans 50,000,000 18,883,046 19,477,991 20,000,000 108,361,037 1,710,103 645,103 567,675 497,325 106,650,935 50,000,000 18,237,943 18,910,316 19,502,675 106,650,934 51,998,434 50,000,000 748,788 663,525 586,120 54,652,501 - INCA Loan - ABSA Loan - First draw down - ABSA Loan - Second draw down - ABSA Loan - Third and final draw down Rustenburg Water Services Trust (RWST) liabilities - ABSA loan - Capital and capitalized interest(2007: Only capital) - ABSA loan: Capitalized interest Sub-total Less : Current portion transferred to current liabilities - INCA loan - Redeemable in April 2009 - ABSA Loan - First draw down - 30 June 2005 - ABSA Loan - Second draw down - 30 June 2006 - ABSA Loan - Third and final draw down - 30 June 2007 - ABSA Loan (RWST) Total External Loans 262,902,020 369,552,954 60,094,601 50,000,000 748,788 663,525 586,120 8,096,167 309,458,354 223,998,119 45,736,081 378,095,237 8,398,039 645,103 567,675 497,325 6,687,936 369,697,199 50,000,000 18,237,943 18,910,316 19,502,675 50,000,000 18,883,046 19,477,991 20,000,000
Refer to Appendix A for more detail on long-term liabilities INCA Loan Bears interest at 16.5% per annum and will be fully redeemed with a redemption fund investment made at INCA specifically for this purpose. The loan will be redeemed on 23 April 2009. Refer to note on investments on the current value of the redemption fund. Agreement have already been reached with INCA that a new loan of R50 million will be granted to the municipality. ABSA Loan Bears respectively interest from first draw down at 11.92%, 12.02% and 12.14% and is repayable within 15 years from drawdown.
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RUSTENBURG LOCAL MUNICIPALITY NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008 MUNICIPALITY 2007 R 2008 R 2008 R GROUP Restated 2007 R
ABSA Loan: Entity The loan is secured by: • a general notarial bond over the movable assets of the Trust. • cession of the Rustenburg Lease Agreement • the Debt Service Reserve Account, the Contingency Reserve Account and the Industrial Contingency Reserve Account. The loan bears interest at a rate, 12.8044% NACM and is repayable over a period of 15 years. 3 NON-CURRENT PROVISIONS 3,000,000 3,000,000 3,000,000 3,000,000 Provision for long-service Total Non-Current Provisions The long-service award is payable after every 5 years of continuous service. The provision is an estimate of the long-service based on historical staff turnover. 3,000,000 3,000,000 3,000,000 3,000,000
The movement in the provision for long-service awards are reconciled as follows: 4,159,153 74,224 (1,233,376) 3,000,000 4,233,376 (256,137) (977,239) 3,000,000 Balance at beginning of year Contributions to provision Expenditure incurred/leave taken Transfer to current provisions Balance at end of year 4,233,376 (256,137) (977,239) 3,000,000 4,159,153 74,224 (1,233,376) 3,000,000
4 CONSUMER DEPOSITS 18,589,226 19,659,723 Electricity and Water No interest are paid on consumer deposits received. 28,097,117 30,706,801 Guarantees held in lieu of Electricity and Water Deposits 30,706,801 28,097,117 19,659,723 18,589,226
5 PROVISIONS 1,233,376 1,233,376 977,239 977,239 Current portion of long-service provision (see note 3 above) Total Provisions 977,239 977,239 1,233,376 1,233,376
The movement in the current portion of long-service provisions are reconciled as follows: 1,159,152 74,224 1,233,376 1,233,377 (256,137) 977,239 Balance at beginning of year Transfer from non-current Contributions to provision Expenditure incurred / leave taken Balance at end of year 1,233,376 (256,137) 977,238 1,159,152 74,224 1,233,376
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RUSTENBURG LOCAL MUNICIPALITY NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008 MUNICIPALITY 2007 R 2008 R 6 CREDITORS 79,642,002 8,906,913 9,253,170 16,579,145 12,036,941 9,091,364 135,509,535 85,247,873 14,857,656 16,351,690 19,232,720 12,412,205 8,102,335 156,204,479 Trade creditors Payments received in advance Retentions Staff leave Unspecified income/unallocated grants Other creditors Total Creditors 87,212,498 14,857,656 16,351,690 19,232,720 12,412,205 8,102,335 158,169,104 76,848,028 8,906,913 9,253,170 16,579,145 12,036,941 9,091,364 132,715,561 2008 R GROUP Restated 2007 R
7 UNSPENT CONDITIONAL GRANTS AND RECEIPTS 7.1 Conditional Grants from other spheres of Government 8,264,726 4,678,970 3,462,676 2,578,876 5,488,645 130,205 4,057,991 111,275 159,035 100,000 1,200,000 1,123,426 497,580 675,810 114,103 1,058,224 33,701,542 774,128 142,648,944 19,933 1,986,498 1,123,427 497,580 622,357 48,362,926 257,825 44,161,004 3,751,950 3,462,676 31,292,786 3,500,000 2,835,854 MIG Grants Bojanala Platinum District Municipality Finance Management Grant Public Transport Infrastructure Other conditional grants - Upgrading of fire stations DASA - Tlhabane Library Grant Umsobomvu Youth Fund FIFA 2010 World Cup - See also note 16.3 MSIP Grant IMMIS Grant DWAF Greening Strategy Magalies Water SEED funding DWAF - Water Services Development Plan DME - Boitekong IDP Grant 7.2 Other Conditional Receipts Public contributions Total Conditional Grants and Receipts 774,128 142,648,944 1,058,224 33,701,542 19,933 1,986,498 1,123,427 497,580 622,357 48,362,926 257,825 44,161,004 3,751,950 3,462,676 31,292,786 3,500,000 2,835,854 8,264,726 4,678,970 3,462,676 2,578,876 5,488,645 130,205 4,057,991 111,275 159,035 100,000 1,200,000 1,123,426 497,580 675,810 114,103
See Note 19 for reconciliation of grants from other spheres of government. These amounts are not yet invested in a ring-fenced investment until utilized. 8 VAT 36,345,351 38,244,328 Net VAT payable 38,467,804 37,011,233
VAT is payable on the receipts basis. Only once payment is received from debtors is VAT paid over to SARS.
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