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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
(“the City”)
NOTICE OF AVAILABILITY OF ANNUAL FINANCIAL STATEMENTS
Further to the announcement released on SENS on 31 January 2022 regarding the delay in the City’s
audited annual financial statements for the year ended 30 June 2021 (“AFS”), the City hereby
notifies its debt investors that it has publicly released its Annual Report for the year ended 30 June
2021 (“Annual Report”) and that the auditor’s report relating to the consolidated AFS prepared by
the Auditor-General of South Africa (“Auditor’s Report”) is unqualified.
The Auditor’s Report contains emphasis of matters and material irregularities for the year ended 30
June 2021 as follows:
1. Emphasis of matters relating to:
1.1. Material losses/impairments of receivables from exchange and non-exchange transactions;
and
1.2. Significant underspending of the operating and capital budget due to the impact of the
Covid-19 lockdown, community dynamics and influences, delays with the appointment of
service providers and contractor performance.
2. Material irregularities relating to:
2.1. Payments made for plumbing repairs and installation services not received; and
2.2. Needs analysis to inform the required number of standby teams for plumbing repairs not
performed.
The Auditor’s Report was not modified as a result of the above matters.
Furthermore, the Annual Report contains restatements for the prior year ended 30 June 2020 as
follows:
1. Change in accounting policy
1.1. The implementation of GRAP 35 Consolidated Financial Statements has resulted in the City
Improvement District entities no longer meeting the definition of “controlled entities” and
therefore these entities are no longer being consolidated; and
1.2. The implementation of GRAP 110 Living and Non-living Resources introduced a new asset
class “Living Resources” with these assets having previously been classified as “Other
Assets”.
2. Reclassification
Cash from deposits has been reclassified from financing activities to operating activities in line
with the latest guidance issued by the Accounting Standards Board.
3. Change in accounting estimate
The City’s annual review of the useful lives resulted in a decrease of R283,38 million (2020:
R105,60 million) in the depreciation charge to the statement of financial performance. The
effect of the change is an estimated decrease in depreciation of R267,27 million for 2022 and
R261,03 million for 2023.
Full details of the restatements are set out in note 36 of the Annual Report.
The Annual Report, containing the consolidated AFS, is available on the City’s website at
https://resource.capetown.gov.za/documentcentre/Documents/City%20research%20reports%20an
d%20review/CCT_Integrated_Annual_Report_2020-21.pdf and for inspection at the registered office
of the City at 12 Hertzog Boulevard, Cape Town, 8001, upon request.
Cape Town
24 February 2022
Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 24-02-2022 04:40:00
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