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Availability of the Annual Financial Statements for the year ended 30 June 2019 - BIJHB
CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY
(a municipality as described in section 2 of the Local Government Municipal Systems Act,
2000, duly established in terms of Notice No. 6766, promulgated in the Provincial Gazette
Extraordinary of 1 October 2000 in terms of section 12(1) read with section 14(2) of the Local
Government : Municipal Structures Act, 1998, as amended)
Issuer Bond Code: BIJHB
AVAILABILITY OF THE ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED JUNE
2019
In terms of section 7.4 of the Debt Listings Requirements of the JSE Limited, investors are
advised that the City of Johannesburg Metropolitan Municipality annual financial results
for the year ended 30 June 2019 are available for viewing and downloading at
Link
https://www.joburg.org.za/documents_/Documents/Annual%20Reports/20182019%20Annual%20Rep
ort/2018-19%20City%20of%20Johannesburg%20Annual%20Report%20.pdf
The annual financial statements of the issuer have been audited by The Auditor-General of
South Africa, who have issued an unqualified audit opinion.
The City of Johannesburg’s 2017/18 comparative figures were restated due to material errors
that were identified and reclassification of amounts which were previously disclosed.
Presented below are those items contained in the statement of financial position and
statement of financial performance that have been affected by prior-year adjustments.
PRIOR-YEAR ADJUSTMENTS
STATEMENT OF FINANCIAL POSITION
GROUP
Description As Reclassification Correction Restated
previously of (R’000)
(R’000)
Reported Error (R’000)
(R’000)
Receivables from 1,037 817 15 045 183,438 1,236 300
exchange
transactions
Consumer Debtors 5,866 774 (251 750) 5,615 024
Current Tax 16 254 8 141 24 395
Receivable
Intangible assets 916 732 436 726 1, 353 458
Deferred Tax 1,105 562 203 726 1,309 288
Unspent conditional (202 486) (30 006) (232 492)
grant – Non current
Other balance sheet 35,416 868 (15 045) 942 800 36,344 623
items
Finance lease (44 102) 9 580 (34 522)
obligation
Accumulated (44,648 926) (1,368 407) (46,017 333)
Surplus
CJMM
Description As Reclassification Correction of Restated
previously
(R’000) Error (R’000)
Reported
(R’000)
(R’000)
CJMM – 71 936 15 045
Receivables from
exchange
transactions
CJMM – 45 540
Receivables from
non-exchange
transactions
CJMM – Property, 385 605
plant and equipment
CJMM – Intangible (44 802)
Assets
CJMM – Heritage 6 021
Assets
CJMM - Trade and 77 (15 045)
other payables
CJMM - (638 839)
Accumulated
Surplus
STATEMENT OF FINANCIAL PERFORMANCE
GROUP
Description As previously Reclassification Correction of Restated
Error
Reported (R’000) (R’000)
(R’000)
(R’000)
Rendering of 25,430 502 (233 245) (373 251) 24,824 006
services
Surcharges and 233 245 233 245
Taxes
Impairment losses (34 385) (68 933) (103 318)
Other (22,510 836) 171 355 2 339 481)
Surplus (deficit) 2,885 281 (270 829) 2,614 452
for the year
CJMM
Description As previously Reclassification Correction Restated
of
Reported (R’000) (R’000)
Error
(R’000)
(R’000)
CJMM – Service 233 245
Charges
CJMM – (233 245)
Surcharge and
Taxes
CJMM – 68 933
Impairment losses
CJMM – 145 868
Depreciation and
amortization
CJMM – General (41 039)
Expenses
(Deficit) Surplus 173 762
for the year
Group
1. Receivables from exchange transactions and non-exchange
Electricity revenue accrual was misstated in 2017 and 2018 financial periods. The affected
periods have been adjusted and comparative amounts restated.
2. Consumer Debtors and Rendering of services
The City of Johannesburg Metropolitan Municipality has recalculated the water and electricity
accrual value in relation to the 2017 and 2018 financial years. These transactions resulted in
an adjustment to the revenue for the 2017 and 2018 financial years as disclosed below. This
has been accounted for as a prior period adjustment accordingly.
3. Current tax receivable
An error in the calculation of company tax for the Joburg Market in the prior year was identified
and corrected in the current year. The error resulted from passing an incorrect journal to the
company tax account.
4. Intangible
The error was due to incorrect classification of intangible as PPE and due to the incorrect
amortization of capacity rights that were acquired from Eskom.
5. Grant
Grants incorrectly accounted for and restated during the current year.
6. Finance lease obligations
There is a prior year adjustment on the finance lease balance. The amount consist of an
adjustment on the minimum lease payments and future finance charges in PIKITUP SOC (Ltd)
7. Services rendered
Surcharge services were incorrectly classified as services rendered.
8. Impairment losses
Impairment losses restatement is as a result of capital projects which were halted in previous
years.
CJMM
1. Property, Plant and Equipment (PPE), Heritage Asset and Intangible Assets
The error was as a result of incorrect classification of Heritage and Intangible assets as PPE
2. Depreciation
The error is due to assets which were completed and ready for use in the previous financial
year but only capitalized in the current year. As a result, prior year numbers have been
restated.
3. Related Party Payables, General Expenses and Receivables form exchange
transactions (Accrued VAT)
The error is due to the misstatement in the previous financial year, and has been corrected.
4. Receivables from non-exchange transactions
This resulted from the reversal of consumer
Johannesburg
31 January 2020
Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment banking division)
Date: 31-01-2020 04:00:00
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