CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY - Notice of Availability of Annual Financial Statements

Notice of Availability of Annual Financial Statements

THE CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY
(A Municipality in terms of Section 155 of the Constitution of the Republic of South Africa, duly
established by notice in the Provincial Notice 479/2000 dated 22nd September 2000, of the Western
Cape, pursuant to Section 12(1) and Section 14(2) of the Local Government: Municipal Structures Act,
1998 (Act 117 of 1998) as amended)
JSE alpha code: BICITY
(“CCT” or the “Municipality”)

NOTICE OF AVAILABILITY OF ANNUAL FINANCIAL STATEMENTS

Notice of availability of annual financial statements

CCT hereby notifies its debt investors that it has publicly released its Annual Report for the year ended
30 June 2022 (“Annual Report”) and that the auditor’s report relating to the consolidated annual
financial statements (“Auditor’s Report”) prepared by the Auditor-General of South Africa (“AGSA”)
is unqualified.

The Auditor’s Report contains emphasis of matters as follows:

•    the restatement of corresponding figures for 30 June 2021 as a result of errors; and
•    the impairment of trade debtors.

The AGSA’s audit opinion has not been modified as a result of the emphasis of matters and full details
are set out in the Auditor’s Report forming part of the Annual Report.

Furthermore, the Annual Report contains restatements for the prior year ended 30 June 2021 relating
to:

1.     Reclassification of the following accounts:

       1.1   indigent discounts and relief accounts were reclassified from “General expenses, Indigent
             relief” to be set off against “Service charges” and “Rental of letting stock and facilities”
             respectively;
       1.2   availability charges were reclassified from “Exchange revenue, Services charges” to “Non-
             exchange revenue, Service charges”;
       1.3   impoundment fees were reclassified from “Service charges, other” to “Fines, penalties
             and forfeits”; and
       1.4   payables relating to capital assets which were previously incorrectly classified as
             movements in working capital, have been adjusted against “Additions to property, plant
             and equipment and other”.

2.     Correction of errors in respect of:

       2.1   connection fees received to be reflected as exchange revenue;
       2.2   in 2020, the Division of Revenue Act issued an equitable share to enable municipalities to
             maintain existing services in response to the Covid-19 pandemic (“allocation”). The
             allocation was treated as an unconditional grant and recognised as revenue in error; and
       2.3   in March 2021, CCT received level-two accreditation for participation in the National
             Housing Programme and now serves as a project developer relating to the construction
             and transfer of houses to beneficiaries of the National Housing Programme. The
            recognition, measurement, presentation and disclosure of transactions relating to this
            arrangement should have been applied in terms of GRP11 : Construction Contracts.

      Full details of the restatements are set out in note 37 of the Annual Report.

The Annual Report, containing the consolidated annual financial statements, is available on the
Municipality’s website at https://www.capetown.gov.za/local%20and%20communities/meet-the-
city/city-reports/annual-reports and for inspection at the registered office of CCT at 12 Hertzog
Boulevard, Cape Town, 8001, upon request.


Cape Town
27 January 2023

Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 27-01-2023 03:40:00
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