CITY OF CAPE TOWN METROPOLITAN MUNICIPALITY - Notice of availability of annual financial statements - BICITY

Notice of availability of annual financial statements - BICITY

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

CCT hereby notifies its debt investors that it has publicly released its Annual Report for the year
ended 30 June 2020 (“Annual Report”) and that the auditor’s report relating to the consolidated
annual financial statements prepared by the Auditor-General of South Africa (“auditors” or “AGSA”)
is unqualified.

The Annual Report contains prior year restatements as a result of:

1. Reclassifications
       a. The City of Cape Town adopted GRAP 108 on statutory receivables as effective during
           the year ended 30 June 2020. Amendments were made to the classification of
           receivables so as to align with this standard, which have resulted in the reclassification
           of “Receivables and Other receivables” as statutory and contractual receivables. This
           change has had no financial impact on the statement of financial position.
       b. The City of Cape Town reclassified an amount from current receivables to long term
           receivables that related to a prepayment to the Department of Human Settlements,
           Province, where there was no movement for 36 months. This amount was fully
           recovered during the 2019/20 financial year and consequently the City reclassified this
           amount as a current asset in 2019.
2. Changes in accounting estimates in relation to the annual review of assets’ useful lives and
   impairment of statutory and contractual receivables.

Full details of the restatements are set out in note 36 of the Annual Report.

In addition, the auditor’s report contains a paragraph relating to emphasis of matters in relation to:

1.      the abovementioned restatements;
2.      material losses and impairments in relation to exchange and non-exchange transactions;
3.      underspending of the budget due to the impact of the covid-19 lockdown, community
        dynamics and influences, delays with the appointment of service providers and contractor
        performance;
4.      unaudited disclosure notes in terms of section 125(2)(e) of the MFMA; and
5.      unaudited supplementary schedules which has been presented as additional information to
        the consolidated annual financial statements.

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.

The Annual Report, containing the consolidated annual financial statements, is available on the
Municipality’s website at http://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
31 March 2021

Debt Sponsor
Nedbank Corporate and Investment Banking

Date: 31-03-2021 05:37:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.