Strategic Objectives – The main priorities of the Municipality as set out in the IDP. Budgeted spending must contribute towards the achievement of the strategic objectives. Unauthorized expenditure – Generally, spending without, or in excess of, an approved budget. Virement – A transfer of budget Section 1 – Mayor’s Report In accordance with section 28 of the Municipal Finance Management Act, No 56 of 2003 (MFMA) a municipality must revise its approved annual budget through an adjustments budget, in the following circumstances: (i) To appropriate additional revenues that have become available over and above those anticipated in the annual budget, but only to revise or accelerate spending programmes already Budgeted for. (ii) To authorize the utilization of projected savings in one vote towards spending under another vote. (iii) To authorize the spending of funds that were unspent at the end of the past financial year where the under-spending could not reasonably have been foreseen at the time to include projected rollovers when the annual budget for the current year was approved by the Council. (iv) To correct any errors in the annual budget. In line with the MFMA, the 2016/17 approved Budget has now been adjusted. The main adjustments proposed in this adjustment budget are: Operating Budget Property Rates decrease by R 663 013.00 because of updated indigent Relief list and accurate tariff setting. Sundry income decreased by 32% because of the trade-in amount projected decreased to R 340 000.00 when the new motor vehicle purchased Operating Expenditure Employee Related Cost Basic Salaries decrease by R 3 719 008.00 mainly because of the posts on the organogram that are not yet filled. Travelling allowance increase by R 278 000.00 Pension Fund budget was not adequate and it has been adjusted by R 1 238 524.00 Employee Related Costs decreased by 15%. General Expenses Newsletter and Media Briefings increased by R 200 000.00, there’s a need to publicize the good work that is done by the Municipality. Catering: Meetings and conference expenditure was at 92% in the Mid-Year assessment report, therefore adjusted by R 234 088.00 Rental Office Machinery increased by R 212 383.00, expenditure is above 100% to-date Printing and Stationery budget was R 476,091.00, adjusted to R 749,652.00
Strategic Objectives – The main priorities of the Municipality as set out in the IDP. Budgeted spending must contribute towards the achievement of the strategic objectives. Unauthorized expenditure – Generally, spending without, or in excess of, an approved budget. Virement – A transfer of budget Section 1 – Mayor’s Report In accordance with section 28 of the Municipal Finance Management Act, No 56 of 2003 (MFMA) a municipality must revise its approved annual budget through an adjustments budget, in the following circumstances: (i) To appropriate additional revenues that have become available over and above those anticipated in the annual budget, but only to revise or accelerate spending programmes already Budgeted for. (ii) To authorize the utilization of projected savings in one vote towards spending under another vote. (iii) To authorize the spending of funds that were unspent at the end of the past financial year where the under-spending could not reasonably have been foreseen at the time to include projected rollovers when the annual budget for the current year was approved by the Council. (iv) To correct any errors in the annual budget. In line with the MFMA, the 2016/17 approved Budget has now been adjusted. The main adjustments proposed in this adjustment budget are: Operating Budget Property Rates decrease by R 663 013.00 because of updated indigent Relief list and accurate tariff setting. Sundry income decreased by 32% because of the trade-in amount projected decreased to R 340 000.00 when the new motor vehicle purchased Operating Expenditure Employee Related Cost Basic Salaries decrease by R 3 719 008.00 mainly because of the posts on the organogram that are not yet filled. Travelling allowance increase by R 278 000.00 Pension Fund budget was not adequate and it has been adjusted by R 1 238 524.00 Employee Related Costs decreased by 15%. General Expenses Newsletter and Media Briefings increased by R 200 000.00, there’s a need to publicize the good work that is done by the Municipality. Catering: Meetings and conference expenditure was at 92% in the Mid-Year assessment report, therefore adjusted by R 234 088.00 Rental Office Machinery increased by R 212 383.00, expenditure is above 100% to-date Printing and Stationery budget was R 476,091.00, adjusted to R 749,652.00
ADJUSTMENT%20BUDGET2016%202017.docx