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Availability of the Annual Financial Statements for the year ended 30 June 2022 - BIEM
CITY OF EKURHULENI METROPOLITAN MUNICIPALITY
Established in the Republic of South Africa in terms of section 12(1) of the Local Government: Municipal
Structures Act, 117 of 1998, read with Notice No 6768 of 2000 published in Provincial Gazette
Extraordinary No 141 dated 1 October 2000)
Company code: BIEM
(“Ekurhuleni” or the “Issuer”)
AVAILABILITY OF THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
In terms of sections 6.15 and 6.17 of the Debt Listings Requirements of the JSE Limited, noteholders are advised
that the City of Ekurhuleni Metropolitan Municipality’s annual financial statements for the year ended
30 June 2022 are available on Ekurhuleni’s website for downloading at:
https://www.ekurhuleni.gov.za/about-the-city/annual-reports/
The following reports covering Ekurhuleni’s financial year ended 30 June 2022 have been published on the
Issuer’s website:
1. Annual Report
2. Audited Financial Statements (Consolidated);
3. Auditor-General’s Report on the Consolidated Financial Statements
4. Item for 2021-22 Annual report (EXTRAORDINARYCOUNCIL MEETING)
The annual financial statements of the issuer have been audited by The Auditor General of South Africa, who
have issued an unqualified audit opinion.
Restatements
The City of Ekurhuleni’s corresponding figures for 30 June 2021 were restated as a result of an error in the
financial statements of the group at, and for the year ended, 30 June 2022.
• Investment Property, Property Plant and Equipment; Intangibles (including Assets under construction)
increased due to the corrections of completed projects previously partially capitalised as a result of additional
project management costs and other consumer price adjustments costs incurred after the completion of the
construction phase or where there were disputes on contract variations. These corrections do not have an
impact on assets gross values, but result in additional accumulated depreciation for the prior period.
Furthermore, additional information was provided for the donated assets to enable their addition in the fixed
asset register, and the contra entry is in accumulated surplus.
• Inventory increased due to additional transfer/ capitalisation of other assets under construction.
• Accounts payables increased due to additional accruals of invoices received in the current year.
• The reclassification of the short retirement benefits and provisions according to GRAP 101.
• The HSDG grant has been reclassified from non-exchange revenue to construction income as required by
the Housing guide.
• Corrections on prior year on the statements of financial performance relate reclassification of transaction
done at entity level.
• The net impact of these corrections leads to a decrease in the accumulated surplus as previously reported.
Please refer to note number 54 in the Notes to the Annual Financial Statements for further details.
Emphasis of matters
The Auditor General opinion has not been modified in respect of these matters.
1. Restatement of corresponding figures
• As disclosed in note 54 to the consolidated and separate financial statements, the corresponding
figures for 30 June 2021 were restated as a result of an error in the financial statements of the
group at, and for the year then ended, 30 June 2022.
2. Material impairments
• As disclosed in note 13 to the consolidated and separate financial statements, the consumer
debtor’s balance has been impaired. The allowance for impairment of consumer debtors amounts
to R20 505 208 909 (2021: R16 126 582 172) which represents 73% (2021: 73%) of total consumer
debtors. The contribution to the allowance for debt impairment was R4 848 693 063
(2021: R4 116 187 914).
• As disclosed in note 12 to the consolidated and separate financial statements, the traffic fines
debtors’ balance has been impaired. The allowance for impairment of traffic fines debtors amounts
to R1 750 211 616 (2021: R1 350 493 038) which represents 81% (2021: 81%) of total traffic fines
debtors.
3. Material losses
• As disclosed in note 60 to the consolidated and separate financial statements, material electricity
losses of R2 400 497 279 (2021: R1 953 320 409) was incurred, which represents 17% (2021: 16%)
of total electricity purchased. Technical losses amounted to R622 851 521 (2021: R524 032 620)
and non-technical losses amounted to R1 777 645 758 (2021: R1 429 287 789).
• As disclosed in note 60 to the consolidated and separate financial statements, material water losses
of R1 219 419 448 (2021: R1 179 288 614) was incurred, which represents 32% (2021: 33%) of
total water purchased. Technical losses amounted to R182 760 299 (2021: R176 893 291) and
non-technical losses amounted to R1 036 659 149 (2021: R1 002 395 323).
4. Material uncertainties
• With reference to note 42 to the financial statements, the group is the defendant in various claims.
The ultimate outcome of the matters could not be determined and no provision for any liability that
may result was made in the consolidated and separate financial statements.
28 February 2023
Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking Division)
Date: 28-02-2023 03:00:00
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