Difference between budgeted operating expenditure and what was actually spent. KwaDukuza Strength, Weaknesses, Opportunities And Threats Analysis A middle income household use as base a property value of R700 000, consumption of 1 000 kWh electricity and 30kl water. Provincial transfers are income from the government of the province where this municipality is located. Objections formally closed on Monday, following an extension because of the Covid-19 lockdown. Minimum service standards may differ between municipalities. Fruitless and wasteful expenditure concerns spending which was made in vain and would have been avoided had reasonable care been exercised. An example of such expenditure would include paying a deposit for a venue and not using it and losing the deposit. This indicator is about how much more a municipalty spent on its operating expenses, than was planned and budgeted for. Overspending by up to 5 percent is usually condoned; overspending in excess of 15 percent is a sign of high risk. These ratios also show the level of cash the municipality has and / or the ability it has to turn other assets into cash to pay off liabilities and other current obligations. KwaDukuza as part of ILembe Family of Municipalities 10 1.2. Each type of transfer is intended for an express purpose, and should not be used for anything else. Liquidity ratios show the ability of a municipality to pay its current liabilities (monies it owes immediately such as rent and salaries) as they become due, and their long-term liabilities (such as loans) as they become current. Municipalities subject all applications to means tests to determine whether households applying meet the criteria set by their municipality to qualify for indigent status. This shows how much of this municipality's income is from its own activities that it bills for, and how much is paid to it by national and provincial government. Total transfers from provincial government to this municipality. Copyright © 2021 KwaDukuza Municipality. KwaDukuza Mayor, Cllr. Free basic service (FBS) is defined as the minimum amount of basic levels of services, provided on a day to day basis, sufficient to cover or cater for the basic needs of the poor households. Costs of contractor services as a percentage of operating expenditure. Opportunities Offered By KwaDukuza Municipality 14 1.6. iLembe consists of four local municipalities located between Durban and Richards Bay: Mandeni, KwaDukuza, Maphumulo and Ndwedwe. The municipality is linked with a well-developed network of roads and rail infrastructure. Moody's Investors Service 11 May 2016 Rating Action Moody's recalibrates South Africa's national rating scale and repositions national scale ratings of sub-sovereigns. From the Equitable Share of taxes, and Grants from national and provincial Government. Thank you! It is important that a municipality controls its day-to-day expenses in order to avoid cash shortages. Holds a Bachelor of Commerce Degree as well as Honours Bachelor of Commerce degree obtained through UNISA. These standards form part of the municipality’s budget which is consulted with citizens in the period 1 April to 31 May each year. This is expressed when the auditor concludes that the annual financial statements do not present the municipality’s financial position, results of operations and cash flows in line with Generally Recognised Accounting Practices (GRAP). In order to share this data with the public, National Treasury has enlisted the help of an external partner, Code for South Africa – an NGO that promotes informed public decision-making using technology. Postal: PO Box 72, KwaDukuza, 4450: Physical: 14 Chief Albert Luthuli Street, KwaDukuza: Tel: 032 437 5000: Fax: 032 437 5098: Web: www.kwadukuza.gov.za What did the municipality spend more on, and where did they spend less than planned? Municipalities are supposed to be able to support themselves financially - to fund the services they provide from the rates paid by the local residents. Resources from the South African and international community. Keep in Touch . This income could be for services that are provided by the municipality under an agreement with the province, when it is actually the provincial government's responsibility. Not all municipalities use basic levies. 2,3% Growth Rate KwaDukuza Municipality forms part of the iLembe District Municipality area (DC29), and lies on the east coast of KwaZulu-Natal, between eThekwini Metro in the south and Tugela River mouth in the north. Failure to spend even 85 percent is a clear warning sign. Municipal Money is an initiative of the National Treasury, which hosts extensive amounts of municipal financial data, submitted by municipalities. The bill represented in the graph reflects what it costs the municipality to render the services to indigent households, not what each indigent household needs to pay as these costs are covered by the Equitable Share grant allocation to the municipality. Means that the Auditor General raised queries with the municipality and therefore has not submitted another opinion. 6 of 2004 Determination of rates In terms of the Final Rates Policy 2019/20, the Municipality may levy different rates for different categories of properties. KwaDukuza Powers And Functions 13 1.4. The KwaDukuza Municipality occupies a coastal and inland stretch of approximately 50km in length and 14km in width, with a variety of clustered and ad hoc settlements and small towns. The proposed tariff increases in KwaDukuza municipality’s consolidated draft budget for the coming financial year tabled last Tuesday at a virtual council meeting has been met with heavy criticism from opposition parties who say it will be a burden on consumers already struggling from the … Was responsible for leading the financial turnaround of the KwaDukuza Municipality and raised its Financial profile from near bankruptcy in 2005/2006 to being the most financially viable municipality within South Africa by 2010/2011 financial year as independently assessed by Ratings Afrika.. KwaDukuza Long-Term Vision 13 1.5. Unauthorised, Irregular, Fruitless and Wasteful Expenditure as a percentage of operating expenditure. Read more about Local Government Finances and learn about how your money is spent. Billing for Electricity and Refuse services, Compilation of Annual Financial Statements and attending to the external audit processes. How Do I? 276 719 Population. Chart label that shows on hover of the label, Chart label that is too long to fit on one line, Understanding the Standard Chart of Accounts, Understanding the Public Finance Management Act & Municipal Finance Management Act, State of Local Government Finances reports, In-year Management, Monitoring and Evaluation of Municipal Finances, Local Government in South Africa – Part 5, Finances, 19 March 2014, Engaging with Government Budgets. The KwaDukuza municipal area stretches from the Zinkwazi River in the north to the UThongathi River in the South. Dolly Govender. Infrastructure must be maintained so that service delivery is not affected. How Do I? There might also have been other external disruptions. The KwaDukuza municipal area stretches from the Zinkwazi River in the north to the UThongathi River in the South. Which sources provided more or less income than planned? Your submission has been received! iLembe District Municipality is situated on the east coast of KwaZulu-Natal and is the smallest of the province’s district municipalities. An example is using municipal funds to pay for unbudgeted projects. Municipalities should aim to spend at least 95 percent of their capital budgets. Municipalities don't manage to collect all of the money they earn through rates and service charges. Employee-related costs are typically the largest portion of operating expenditure, but they should not grow so large that they threaten the sustainability of the operating budget. 1.1. This shows how much income this municipality receives from each type of transfer. Facebook Twitter LinkedIn Tumblr Pinterest WhatsApp Telegram Share via Email Print. The property values, water consumption and electricity consumption of a household in an income category may differ from municipality to municipality. Mahatma Gandhi and Gizenga Streets, Contact person: Adil Nunkumar (Director: Budgets and Compliance), Contact person: Dan Pillay (Director: Expenditure), Contact person: Rashina Singh (Director: Revenue, Contact person: Louie Moothusamy (Head: SCM). For example, the lack of underlying documentation and the amounts in question may be so great so that it is impossible to give any opinion on all. Various sector departments have set minimum standards outlining basic amount of services or quantity to be supplied to the indigents with regards to water, energy, sanitation and refuse removal. Worked his way up from entry level position within Finance through to various middle management positions and finally appointed as the CFO of KwaDukuza Municipaity in 2007 after having acted in the position for a year. KwaDukuza Municipality Rates Policy 2 “Act” means the Local Government: Municipal Property Rates Act (No. Was responsible for leading the financial turnaround of the KwaDukuza Municipality and raised its Financial profile from near bankruptcy in 2005/2006 to being the most financially viable municipality within South Africa by 2010/2011 financial year as independently assessed by Ratings Afrika.. Municipalities must guard against spending too much on staff while also making sure they have the people they need to deliver services effectively. Anything less than that and the municipality may struggle to keep up with its payments. Irregular expenditure is spending that goes against the relevant legislation, municipal policies or by-laws. This shows how much income the municipality receives from each provincial department. • KwaDukuza Municipality Climate Change Awareness Survey: The aim was to assess the level of awareness of climate change by both staff and councillors. Your municipal bill is made up of property rates, basic electricity levy, electricity consumption charge, basic water levy, water consumption charge, sanitation, refuse removal and ‘other’. The current ratio compares the value of a municipality's short-term assets (cash, bank deposits, etc) compared with its short-term liabilities (creditors, loans due and so on). Unauthorised expenditure means any spending that was not budgeted for or that is unrelated to the municpal department's function. Municipalities spend money on providing services and maintaining facilities for their residents. KwaDukuza Broad Geographical Context 11 1.3. This can happen when the municipality is better-placed to provide that service. In doing so we hope to empower our citizens, strengthen civic oversight and promote accountability. Spending on Repairs and Maintenance as a percentage of Property, Plant and Equipment. Unrealistic plans result in disappointing service delivery. Tariff of Charges Guide for Building Plan Submission for 2018_2019 According to the affidavit, KDM instructed its attorneys in June 2018 to recover arrears rates from a particular client, by legal proceeding if necessary. Average increase over the financial years. An example is awarding a contract that did not go through tender procedures. Financial Results. It is also referred to as the Current Debtors Collection Ratio. communications (@) kwadukuza.gov.za 032 437 5000. Ideally, a municipality should have at least three months' of cash cover. Conditional grants are money paid to municipalities and provinces to achieve specific outcomes. KwaDukuza. Collaboratively with Mayor Mthembu, the pair have steered KwaDukuza to being an investment friendly precinct that is attracting both Direct Investment and … For every R10 spent on building/replacing infrastructure, R0.80 should be spent every year on repairs and maintenance. KwaDukuza. Cash coverage measures the length of time, in months, that a municipality could manage to pay for its day-to-day expenses using just its cash reserves. She was first elected for the post of Deputy Mayor in 2011, and was re-elected for a second term in August 2016. This measure looks at the percentage of new revenue that a municipality collects. The percentage of new revenue (generated within the financial year) that a municipality actually collects. A heavy reliance on outside funding is a cause for concern. The normal range for this indicator is between 25% - 40% of total operating expenditure. communications (@) kwadukuza.gov.za 032 437 5000. This shows how much money has been allocated to the municipality for each grant that they are receiving, how much has been paid to the municipality so far, and how much they have spent. Capital spending includes spending on infrastructure projects like new water pipes or building a library. Asked if it were not grossly unfair to expect ratepayers to pay for services that are not being provided and where local service infrastructure has collapsed, Horton said ratepayers did have recourse through the courts. How much did the municipality plan on spending, and how much did they actually spend? The municipality's immediate ability to pay its current liabilities. The proposed increases in rates and tariffs by KwaDukuza municipality (KDM) averaging 9% for the coming year, has attracted outrage from ratepayers. Demographic Information: Population, Households, Age Structure, Population Growth, Labour Market, Household Services, Census 2011, Community Survey 2016 Same as an Unqualified Opinion with no findings, but the Auditor-General wants to bring something particular to the attention of the reader. Transfers is income that the municipality receives from other parts of government. Keep in Touch . For optimum search results it is recommended that for full title property a combination of Erf and Deeds Town be used, while for sectional title property it is recommended that a combination of Scheme Name and Section Number be used. 6 of 2004) and the regulations as promulgated in terms of the said Act. Negative cash balances are a sign of serious financial management problems. A municipality should have enough cash on hand from month to month so that it can pay salaries, suppliers and so on. A municipality's cash balance refers to the money it has in the bank that it can access easily. Something went wrong while submitting the form. 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