Porfolio of Evidence - Guide - US 116363 THERESA

Portfolio of Evidence
THERESA MOONSAMY
061 472 6036
02-03 October 2023
Unit Standard ID: 116363

Unit Standard Title: Prepare and analyse municipal financial reports
Group 3: US 119331 1
TABLE OF CONTENTS
LEARNER REGISTRATION FORM 4
LEARNER INDUCTION FORM 5
ASSESSMENT PLAN 6
PRE-ASSESSMENT MEETING 7
DECLARATION OF AUTHENTICITY 8
STRUCTURING YOUR PORTFOLIO OF EVIDENCE FILE 9
THE STRUCTURE OF THE ASSESSMENT...........................................................................................9

ASSESSMENT CRITERIA............................................................................................................... 9
ASSESSMENT METHODS/STRATEGIES..........................................................................................10
SECTION 1: BACKGROUND INFORMATION 11
SECTION 2: UNIT STANDARDS 12
SECTION 3: FORMATIVE ASSIGNMENTS 18
UNIT 1:.................................................................................................................................19
SELECT MEASURE, RECORD, CLASSIFY AND REPORT FINANCIAL DATA IN ACCORDANCE WITH CURRENT
FINANCIAL REPORTING STANDARDS.............................................................................................19
3.1.1 LIST AND BRIEFLY DEFINE THE OBJECTIVES OF THE GRAP STANDARDS WHICH ARE EFFECTIVE FROM
31 MARCH 2015. (20 MARKS).................................................................................................19
UNIT 2:.................................................................................................................................25
UNIT 3:.................................................................................................................................29
SECTION 4: COLLECTED EVIDENCE 35
NB: PLEASE READ THE FOLLOWING ANNEXURE 2 CAREFULLY BEFORE ATTEMPTING TO
ANSWER THE QUESTION 39
ANNEXURE 1 39
ANNEXURE 2 40
Group 3: US 119331 2
SECTION 5: SUPPORTING EVIDENCE 49
WITNESS TESTIMONIES 50
WITNESS STATUS LIST 53
RESOURCE LIST 55
Additional Evidence 56
Learner Registration Form

Programme
Municipal Finance Management Programme (MFMP)
Name:
Unit Standards US 116363: Prepare and analyse municipal financial reports
Candidate Information
Title: Mrs. Surname: Moonsamy
Maiden Name (if applicable) Bisunpersad
First Name: Theresa Middle Name: -
ID Number: 850115 0133 089 Birth Date: 15/01/1985
ID Type: (Passport, SA ID) SA ID Province: KwaZulu Natal
Nationality: South African Home English
Language:
Equity Status: Residence Status:
(Please tick.) (Please tick.)
African South African Citizen √
Colored Permanent Resident
Indian √ Temporary Resident
White Other (fill in)
Gender: M F √ Disability N √ Y
Status:
Nature of N/A
Disability:
Socio Economic Status (Please tick.)
Group 3: US 119331 3
Employ √ Unemploy Unemploy Learn Retire Volunte Hom
ed ed - ed Not er d er e
Looking Looking Mak
er
Physical Address: 19 Kingshaven Place,
foresthaven. Phoenix
Postal 4068
Code:
Postal Address: Same as above
(If different from your Home Address) Postal
Code:
Work
Work Telephone: 031 311 8785 -
Fax:
0614726036 Theresa.Moonsamy@durban.gov.z
Cell No: E-mail:
a
Learner Signature: Date: 29/07/2023
Supervisor
Date:
Signature:
Learner Induction Form

Learner Name: Theresa Moonsamy
Facilitator Meluleki Kunene

Programme Title
US 116363: Prepare and analyse municipal financial reports
& Unit Standards:
Start Date: 02 October 2023
I HAVE BEEN INFORMED OF: Tick
Learner Entitlement including Learner Guide / Handouts 
Emergency evacuation procedure and assembly point including fire alarm 
Location of first aid box and first aider information 
Procedure if absent/ill including contact phone numbers/email address 
Time commitment required to complete the course including all learning and 
assessment
Group 3: US 119331 4
Skills and knowledge needed for successful course completion including literacy 
and numeracy
Opportunities for learner/learning support for learners with learning difficulties 
and/or disabilities or other additional needs
Course content and learning resources available from the Training Provider 
NQF Framework and course outcomes 
Assessment associated with the course including Assessment Criteria 
Portfolio of Evidence structure and requirements therein 
Formative and Summative assessment 
Criteria to enable a candidate to be assessed as Competent 
Leaner feedback procedure 
Learner support from provider after assessment feedback 
Appeals Policy and Procedure 
Plagiarism Policy and Referencing of sources 
An outline of what learners could progress to when they complete the course 
Opportunity to provide feedback 
Complaints Policy and Procedure 
SIGNED
Date: 24/07/2023
(LEARNER):
SIGNED
Date:
(FACILITATOR):
Assessment Plan
Programme Municipal Finance Management Programme

:
Unit
Standard US 116363
Number(s)
Programme
US 116363: Prepare and analyse municipal financial reports
Title
CANDIDATE DETAILS
Name Theresa Moonsamy ID No. 8 5 0 1 1 5 0 1 3 3 0 8 9
Job Works Area Organisatio eThekwini Municipality

Manager n
Departmen Sanitation Operations
t
Group 3: US 119331 5
Contact Email: Theresa.Moonsamy@durban.gov.za
Details
Phone 061 472 Fax: -

: 6036
Facilitator Name &
Meluleki Kunene
Surname
AGREED ASSESSMENT TIMELINE
EVENT DATE RESOURCES REQUIRED EVIDENCE TO BE GENERATED
Attend
Training and
02/10/2023- Training material,
Pre- Attendance Register
05/10/2023 Facilitator
Assessment
Meeting
PoE Guide - Formative
Formative 02/10/2023- and / or Knowledge Completed documentation
Assessment 05/10/2023 Assignment + Pre-Assessment Meeting Form
Assessment instruments
Complete
02/11/2023 Portfolio of Evidence
Portfolios of Completed Portfolio of Evidence
Guide
Evidence
Submit
Portfolio of Portfolio of Evidence Acknowledgement of receipt from
Evidence to Guide Provider
Provider
Signature of Candidate: ______________________________
Signature of Assessor: ______________________________

Date: 25/10/2023
Group 3: US 119331 6
PRE-ASSESSMENT MEETING
It is a requirement that all candidates are prepared for their assessment.
Your facilitator will prepare you for your assessment in your pre-assessment meeting which
will take place during your Introductory Briefing Session.
Below is a list of items that your facilitator will discuss with you at your pre-assessment
meeting.
Please ensure that you understand each of the items to be discussed.
Please do not hesitate to ask your facilitator for clarification on any items that you do not
understand.
Please indicate – Yes
ITE
AGENDA or No and your
M
initials
Candidate background established & is he/ she ready for
1
assessment? Y
An overview of the current developments in education and
training, including the National Qualifications Framework (NQF),
2
Education Training and Quality Assurance bodies (ETQAs), Unit
Standards and Qualifications was discussed Y
The purpose and process of assessment was explained to the
3
candidate Y
The unit standards to be used in this assessment and a copy given
4
to the candidate and explained Y
The roles and responsibilities of both the assessor and the
5
candidate in the assessment Y
Assessment methods and feedback process and timeframes were
6
explained Y
The use of assessment instruments was explained together with
7
the evidence required for this unit standard Y
Evidence collection techniques given and the required resources
8 for evidence collection; when, where, and how the evidence will
be collected, who will be involved, what resources are needed Y
Special needs and barriers to assessment.
9 (If applicable: Write these in the notes section below, to inform
your assessor) Y
An explanation of how feedback will be given, when it will be
10
given and in what format it will be given Y
The assessment appeals procedure and rights in respect of this
11
procedure. Y
The way forward was discussed, including the whole process to
12 be followed up to and including moderation and role of LGSETA in
Verification and endorsement Y
Notes (if any):
___________________________________________________________________________
______
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I confirm that all of the above items have been explained to me by my facilitator in my pre-
assessment meeting. I confirm that I understand each of the items covered.
Candidate Signature: _______________________ Assessor Signature:

_____________________
Date: 29/10/2023
DECLARATION OF AUTHENTICITY
I hereby declare that I personally prepared the Portfolio of Evidence for the learning
programme aligned to unit standard(s) as contained hereunder: Ii further give Summat
Training Institute to conduct reference checks on my Portfolio of Evidence whenever the need
arises.
LEARNING PROGRAMME DETAILS
Learning Municipal Finance Management Programme

Programme
Name
US Title US 116363: Prepare and analyze municipal financial reports
US ID Number US 116363
CANDIDATE’S DETAILS
Learner’s First
Name Theresa
Learner’s
Middle Name -
Learner’s
Surname Moonsamy ID No. 8 5 0 1 1 5 0 1 3 3 0 8 9
Cell phone
number Code 061 Number 4 7 2 6 0 3 6S
-
Fax number Code Number
Group 3: US 119331 8
Email address Theresa.Moonsamy@durban.gov.za
Municipality
Name eThekwini Municipality
............................................ 02/10/2023
Learner’s Signature Date
Group 3: US 119331 9
Group 3: US 119331 10
SECTION 1: BACKGROUND INFORMATION
1. Your CV
2. Your highest qualification
3. A Certified Copy of Your ID
4. Your Organisational Profile

(NB: This refers to a brief overview of your council and its main focus regarding
products / services)
5. Departmental organogram
(NB: Your departmental organogram enables the assessor to see where you fit
into the municipality. Highlight your position in the department.
If you do not work in the municipal finance department but serve on a related
committee, then indicate the portfolio or section in which you serve.
6. Your Job Profile
7. Your motivation for completing this programme

RESUME OF THERESA Summary
MOONSAMY
I am a self-motivated, hard-working, energetic and
Key skills Innovative Water and Wastewater Works Area Manager
and Chemical Process Engineer with over 18 years of
experience and overseeing the entire operation,
Multi-tasking and upgrade and maintenance of several large-scale water &
organisational, wastewater treatment works, solids and sludge
Management, operations, pumpstations and Collections systems, re-
Manufacturing, Water and use & energy management all operated by the largest
Wastewater, Operations, municipality in Durban, South Africa. These wastewater
Upgrade &Maintenance • treatment facilities and pumpstations discharge high
Highly Unionised staff quality effluent into major rivers and the Sea outfall and
management, Sludge we are known for high quality water and sanitation
Management, Biogas services. I am also writing the Project Management
Systems • Contract Professional exam in the next month and completing my
Management • Certified MBA. I have strong Business Development, Sale,
Project Management marketing, manufacturing, and Mining experience as
Professional (PMP ® (PMI) well.
• Water and Wastewater Career history
Engineering &Collection•
Technical Sales and
Marketing • Trainer of Works Area Manager at Ethekwini Water & Sanitation:
Group 3: US 119331 11
Trainers WWA• Project Operations
Management pr* June 2016 – Present
TEFL/Teach English ONLINE
Environmental Purpose to manage a number` of sewage treatment
Management • Community works and related networks within the Central Coastal
&Stakeholder Liaison • Area, including human resources, health and safety,
Coaching and Mentoring • financial and process management and process
Management Systems: development.
Energy, ISO, Process, SCM, Key responsibilities
HR • Customer Relations Manages the performance, development and conduct of
Management • Financial staff. • Manages the Wastewater Treatment processes
planning and management within the works area, so as to comply with the
• Manage Multicultural, statutory requirements of the National Water Act (No.
Multi-disciplinary teams• 36 of 1998). *Water re-use & Energy recovery •
Export Sales and marketing Assumes responsibility for the development of the
• Business Process Wastewater Treatments process plant within the works
Engineering • Conflict and area, to ensure adequate future provision of processing
Diversity Management • capacity. • Assumes responsibility for the financial
Report Writing and management of the works' operation to ensure proper
Professional Presenting • financial and budgetary control. • Provides a healthy
Administration • and safe working environment for Treatment Works'
Production planning • ISO staff in accordance with the Occupational Health and
9001:2015 and ISO 50001 • Safety Act (85 of 1993). • Accepts the appointment and
Staff Training (safety and undertakes the duties of Emergency Coordinator. •
Operations) SHE chair• Ensures that an adequate computer capability is
Occupational Health and maintained on the works. • Ensures that adequate
Safety • Design and safety protection is provided for both plant and staff at
Conceptualization • the works. • Management of Contracts and tenders and
Technology and Innovation Emergency Reports to City Manager, Adverts, Specs and
• Trouble shooting and cost Scoping, Tender Briefing and site meetings, Evaluation
saving • IETSL 8 of quotes and contracts, awards, Management of work •
(Speaking:8 ; reading 8.5, Management of Works by Integrated Process
Writing 7.5; Listening 8.5) • Management System • Concept Design and Technology
Motor Systems for upgrade (civil, electromechanical, trial, Process
Optimisation Optimization, Project management, EIAs,
Environmental) – Plant Commissioning and handover,
Education training of staff, SOPs• Environmental Forum, Odor
MBA major Water management Plans, Coastal Management –
Management from presentations and feedback • Capital projects and
Business School Maintenance (R 3 million): Building of staff ablutions ,
Netherlands kitchens etc., Dredging of maturation ponds, Fencing,
Graduate 2023 Access road to the works, Grass cutting, Safety
BSc Chemical Engineering Equipment Maintenance, Chemicals contracts for
from University of South WWTW * Energy recovery from WW and Sludge
Africa & Accredited by *Maintenance, Chemicals contracts for WWTW * Energy
International Credential recovery from WW and Sludge . . • Managing PPP:
Assessment of Canada Desalination and Remix plant • Managing PPPs – Durban
Group 3: US 119331 12
(ICAS) Water Recycling Plant – resuse effluent treated and sold
Graduated 2015 Achievements
______________________
Applied and obtained a 10-year Coastal Water Discharge
National Diploma from
Permit for the largest sea-outfall plant in KZN, Successful
University of South Africa
Operations management of 5 Wastewater Treatment
Graduated 2012 works – totally 137 ML/day and 105 Staff including Class
5 Superintendents and Senior Operators as well as M&E
TEFL/TSOL Teach English in workshop • Successful Operation of 2 Sea Outfall
Class/online TEFL.CO WWTW (approx. 300 ML.day) – One treats 60% of the
ACCREDITAT Acceditation Cities effluent including all Tankers and the Durban
Tesol.co Recycling Plant (Veolia) based at SWWTW. •
Development of Screenings and Sludge management
Professional Bodies plans for works. • Development of Pilot Energy
Professional Engineering Management Systems at 2 WWTWs • Successful
Technician from management of staff in a highly unionized environment
Engineering Council of SA • Upgrade of a Treatment works from 25 to 50ML/day
Since 2015 (R300 million project) • Implementation of Energy
Management System at the works and alignment of
works to ISO 9001:2015. • Registration with Engineering
Project Management
Council of South Africa as a Pr. Eng. Technician – 2020
Professional ®
applied for Pr Eng technologist due to degree timeline •
Project Management Presented a Paper on the Development of an Energy
Institute USA Management Systems in Wastewater treatment works
Since 2022 for a WISA Peri-Urban International Conference in Cape
Town • Managed capital and Operating budget of an
Candidate Engineering estimated R90 million per month • I Currently run
Technologist from of Southern Wastewater Treatment works (125 ML/day)
Engineering Council of SA and this is a sea outfall plant that feeds 50 ML/day of
Since 2015 effluent to Veolia Recycling plant that provides effluent
(Application sent for PrEng) to Mondi. • I also run Central WWTW – The Hitachi
Remix demo plant has been constructed and will
Full Member at Water provide an even mix of Sea water (desalination) and
Institute of South Africa Plant feed for effluent re-use. • I am also running
Isipingo WWTW that will be upgraded – I have been
Since 2011
moved to this area due to my high-level expertise in
upgrades and management of multi-disciplinary teams
Interests and processes in Wastewater treatment. • Acted as
Senior Manager: Wastewater when required.
Chemical Technician (1.4 years) to Senior Chemical
Gospel music- Church band Technician (2.5 Years) to Chief Technician (1 year) at
Arts and crafts Ethekwini Municipality Water & Sanitation Unit
Animals September 2012 – June 2016
The outdoors  Providing technical and managerial support to
specific water & wastewater treatment works,
Resume Gap: reticulation systems and assisting and
Student and Stay-home streamlining in quality and environmental
Group 3: US 119331 13
mum compliance and various innovative trials, cost-
saving projects, troubleshooting, staff training
April 2010- Jan 2011
and safety and integrated management systems
development.
Key responsibilities
References
Mainly Project based and Support to management: Plant
Available upon request inspections – Internal and External Audit teams, water
quality, Infrastructure, Documents, Process audits,
license audits and compliance. Daily Operational
Meetings, Upgrade projects, Troubleshooting projects,
Cost saving projects, Enhanced Ops Monitoring, Design
and Conceptualization Projects, Equipment Selection
and Design, P&IDs, COD Modelling, Green Drop and blue
Drop Certification and preparedness for audits, Process
Controller Training, Sludge Management tenders /
contracts, plant monitoring and technical investigations,
Digester Gas production monitoring, Steam and
Methane Gas systems analysis, Drawing up of plant log
sheets and databases for process controllers, Integrated
Process Managements System: SOPS, Ops Plans, Control
Plans, Water Quality failure response system, monthly
reports, pollution incidents and investigations,
breakdowns , SHE , Internal Audits, Chemical Analysis,
Enhanced Operational monitoring, Risk Assessments,
commissioning of units, Sludge management reports,
Chemical and sludge removal contracts i.e. WQ and WS
contracts (Site meeting, Adverts, Evaluation and Award),
Implementation of Energy Management Systems,
Innovative Plant Trials, Responsible for 5 Waterworks
and 4 wastewater treatment works, Management and
Area Engineer support, Safety, Incident and Accident
Management Project budgets of Almost R 1 million.
Achievements
Promoted from Chemical to Senior Chemical Technician
and then to Chief Technician • Management support on
Green Drop achievements in plants including auditing •
Concept design and contract scope for Admin building
and staff ablution and canteen facilities at various
plants• Upgrade scope, equipment design and selection
and investigative reporting to upgrade scope for various
plant upgrades • Technology &innovative trials and
plant & chemical selection.
Water Quality Officer (7 months) and Projects

Technician (4 Months) at Ethekwini Municipality Water
& Sanitation Unit: Technical Services
Group 3: US 119331 14
October 2011 – September 2012
 Providing technical and managerial support
within the Pollution and Environment Branch by
monitoring and regulating water and wastewater
treatment works, industries, package plants,
tanker bay and tankered effluent, reticulation
systems and assisting and streamlining in quality
and environmental compliance, measuring and
monitoring quality billing, permitting and
auditing & various investigative projects, staff
training and safety and integrated management
systems development.
 Implementation of the Green droplet Systems at
Domestic Package Plants in eThekwini * Regular
monitoring of Package plants and Metal finishing
industries, RFID Tagging Tender Project,
development and Training of Area technicians on
the Pie Chart Displays of area quality data,
Monitoring of Sea Outfall and Tankers
discharging into the Sea Outfall Pipeline,
Trending Quality data, Random audits of Mobile
Effluent and Industrial Water treatment
processes and advice on plant design and layout,
assessment of monthly results of Water Quality,
Industrial Trade Effluent and Water Treatment
plant
Achievements
Obtained Permitting and Auditing Certificate • Drew up
and saw completion of a contract for RFID tagging of all
tankers Discharging into the wastewater treatment
works • WISA Associate member since 2012 •
Researched and drew up a feasibility and baseline and
thus and assisted in the launch of a WISA project for the
Green Droplet Accreditation system for all Package
plants in eThekwini Region. • Stakeholder engagement
to ensure completion of RFID tagging and green droplet
project.
Trainee Technician (8 Months) at Ethekwini Municipality

Water & Sanitation Unit: Treatment works Branch
Jan 2011 – September 2011
Trainee responsible for all Monthly reports, Green Drop
Audit preparation for the relevant authorities, internal
process audits and reports, basic water and wastewater
projects
Group 3: US 119331 15
Lab Technician/ ISO 9001 Management Rep/ Safety
manager/ Assistant to MD/ Operations
Management/Customer Relationship manager/Internal
sales and marketing co-ordination/ Orders Dept
manager / Logistics / Export Market founder and rep /
Quality Assurance dept Founder and manager at Melton
Adhesives
June 2006 – April 2010
 Hired as a Lab Technician but quickly took on
many roles that lead to me assisting the
Managing Director, Managing the entire
Customer base,daily, weekly and monthly
operation management, launching the export
market without travelling, launching new
business ventures, earning and maintaining the
companies Safety and ISO 9001, 14001 systems,
launching new departments, recovering new and
lost business and reducing waste & customer
returns
Operations Manager, Assistant to the Managing director
on affairs relating to staff, quality and business
Processes, Quality Assurance department launch and
Management, ISO 9001 Management Representative
and Auditor and Chairperson for Safety, ISO
Management Reviews and lead auditor, Operations
Research and Development Lab formulation, Technician
Project and report writing, Projects include formulating
and developing new products, Technical presentations,
Safety committee developer and chair :Implementation
– research acts, Hot work permit/VAM audit/ Chemical
Cleanliness certificates/Lockout-tagout system / Plant
fire certification and hazardous area classification,
Safety and certification • 2009: Promoted to Customer
Relationship manager as well as Orders Department
Head. Managed the Logistics, Launched the Export Sales
department and assisted in the Managing Director in
launch of new divisions. • Export Market and local
Technical Sales for Industrial Adhesives and Polymer/
Customer Representative internally/Tenders/Approval
and issue of quotations and price increases/ Sales
analysis. • Operations Manager and Customer Liaison
Representative
Achievements
Group 3: US 119331 16
Launched the Export sales Division of the company •
Moved the company from losing ISO 9001 to
maintaining and keeping ISO 9001:2001 and moved
company to ISO 9001:2008 as well as ISO 14000 •
Obtained the company a Fire Clearance Certificate for
the storage of dangerous gases and Chemicals •
Launched the Quality Assurance dept. to minimize
returns • Reworked reject and return products into
batches and saved the company R500k on waste •
Launched the Consumer range of products • Increased
profit and turnover as well as lost business due to good
CRM • Commissioned Technical Equipment for technical
analyses and project work • Designed the wastewater
treatment facility to reduce CODs at the factory and
save on the COD discharge bills • Planned monthly and
daily production with each process team
Trainee Metallugist at Anglo Platinum Mines Rustenburg

SA
Dec 2002 – June 2006
Achievements
Full time Bursary to study BSc Chemical Engineering at
UKZN • Projects that saw full benefit in the
Concentrators and Smelters
Key Responsibilities
Plant Water Balance /Routine Work (Admin) • Lockout –
Procedures and control • Control Room filing • Control
Room SCADA study and report • Design and
Commissioning of Flocculent Plant • Plant survey –
sampling and sample prep for external lab (Turn-table
splitter, Flotation cells/Industrial filtration inter alia) •
Plant photography and progression report – mechanical
engineering Ball Mill Gear replacement project • Plant
Safety induction and training • Rougher Tails Floatation
Project: Investigation of Platinum Recovery potential on
Central and East dam by running lab milling and
Flotation tests using plant reagent regime •
Investigation into feasibility of mill by passing by running
lab flotation tests on plant feed • Reagent Strength
Tests to investigate refractometer accuracy and correct
plant reagent regime • Detailed and Technical report
writing • Opinionated discussions on plant optimization/
Performance Appraisal available
References
Available upon request
Group 3: US 119331 17
2. Copy of Highest Qualification
Group 3: US 119331 18
3. Certified copy of the ID
Group 3: US 119331 19
4. ORGANISTATIONAL PROFILE
EThekwini Municipality is the third-largest metropolitan city in South Africa, and the
largest city within the KwaZulu-Natal Province. It has a budget of over R50 billion, 24
000 municipal employees and services approximately 3.9 million people. eThekwini
Municipality’s core values are: Sustainability, economically successful city, caring
city, smart city, poverty reduction and democratic and equal city. The city
administration is led by the city manager, Mr Musa Mbhele and supported by an
executive management team. Services rendered by the city include:
 Cleansing and solid waste services
 Community Health Services
 Electricity services
 Engineering Services
 Public Safety and Emergency Services
 Transportation Services
 Water and Sanitation Services
Additionally, the city has support departments such as City integrity and
investigations, Development Planning, Environment and management,
Environmental Planning and climate protection and Human Capital.
The city’s 5 main focus priorities are:

1) Building adequate infrastructure to improve service delivery.
2) Job creation
3) Skills Development
4) Fighting crime to create safe living spaces
5) A resilient social solidarity economy
Group 3: US 119331 20
5. DEPARTMENTAL ORGANOGRAM
Group 3: US 119331 21
6. JOB PROFILE
Effectively, economically and efficiently leading, organizing and controlling of the regional
Treatment Works staff and the operation of wastewater treatment systems, processes, budgets,
contracts, projects, services, utilities and facility maintenance ensuring the continuous, safe and
reliable operations of all the regional Wastewater Treatment Works thereby delivering the highest
quality of wastewater purification, in compliance with legislative requirements, standards and
guidelines to all customers and stakeholders in the eThekwini Municipality.
Duties if the post include:
1. Human Resource Management – Management of works branch staff within the region so as to
maximise their potential so that personnel are managed for maximum productivity with sound
industrial relations.
2. Process Management – Management of the Wastewater Treatment processes within the region,
so as to comply with the statutory requirements of the National Water Act, 1998 (act 36 of
1998), so that processes are managed effectively and efficiently according to the Integrated
Process Management System (IPMS) for maximum production and performance communicated
to management in a formal manner.
3. Process Development – Development of the Wastewater Treatment process plant with the
region so that adequate future treatment capacity is provided; projects managed to completion
according to specifications and commissioned successfully, monitored using calibrated
equipment and that computer systems are developed to store and process data.
4. Financial Management – Financial management of the works’ operation to ensure proper
financial and budgetary control so that sufficient funds are made available for day to day
operations and for the 3-year capital budget. To ensure that contracts are put in place for service
provision and supplies in accordance with the SCM requirements.
5. Health and Safety Management – Provision of a healthy and safe working environment for
Treatment Works’ staff. Maintain and inspect the working environment for compliance in
accordance with health and safety standards, management systems and legislation.
Group 3: US 119331 22
7.MOTIVATION FOR COMPLETING THIS PROGRAMME
A major part of our responsibilities of Area Managers of Treatment facilities is Financial Management.
It is very sensitive and an aspect that was not fully covered in my training and academic courses over
the years. I see this as a beneficial tool to be able to manage finances in the Public Sector. It is also a
responsibility to the communities and rate-payers I serve as well as to my employer to ensure that I
learn to manage finances well and I believe it will enhance my performance in my role going
forward.
Whilst the Framework and Acts are available, this training will assist me in my daily, weekly and
monthly tasks where Financial Management is concerned.
Group 3: US 119331 23
Group 3: US 119331 24
SECTION 2: UNIT STANDARDS
This POE relates to Unit Standard 116363
Prepare and analyse municipal financial reports
Group 3: US 119331 25
Unit Standard 116363
All qualifications and unit standards registered on the National

Qualifications Framework are public property. Thus the only payment
that can be made f7631
or them is for service and reproduction. It is illegal to sell this material for
profit. If the material is reproduced or quoted, the South African
Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY
REGISTERED UNIT STANDARD:
Prepare and analyse municipal financial reports
SAQA US ID UNIT STANDARD TITLE
116363 Prepare and analyse municipal financial reports
ORIGINATOR
SGB Public Administration and Management
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-
FIELD SUBFIELD
Field 03 - Business, Commerce and Public Administration
Management Studies
ABET BAND UNIT PRE-2009 NQF NQF LEVEL CREDITS
STANDARD LEVEL
TYPE
Undefined Regular Level 6 Level TBA: Pre- 12
2009 was L6
REGISTRATION STATUS REGISTRATION REGISTRATION SAQA DECISION NUMBER
START DATE END DATE
Reregistered 2018-07-01 2023-06-30 SAQA 01620/18
LAST DATE FOR LAST DATE FOR ACHIEVEMENT
ENROLMENT
2024-06-30 2027-06-30
This unit standard does not replace any other unit standard and is not replaced by any
other unit standard.
PURPOSE OF THE UNIT STANDARD

This Unit Standard is for all people involved in Financial Management in a municipality.
People credited with this Unit Standard are able to:

Group 3: US 119331 26
 Select, measure, recognise, classify, and report on financial information after
taking into account relevant financial reporting standards, as well as legislative
requirements.
 Contribute to municipal financial reporting.
LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

It is assumed that the Learners are competent in:
 Communication at NQF Level 4
 Mathematical Literacy at Level 4.
 Accountancy at Level 4.
UNIT STANDARD RANGE

N/A
Specific Outcomes and Assessment Criteria:
SPECIFIC OUTCOME 1
Select measure, record, classify and report financial data in accordance with current
financial reporting standards.
ASSESSMENT CRITERIA
ASSESSMENT CRITERION 1
The background and purpose of a financial reporting standard is commented on in line
with the principles of municipal financial reporting.
The components of the statement of financial position are defined, measured, classified
and disclosed in accordance with acceptable local and international public sector
accounting standards.
The components of the statement of financial performance are defined, measured,
classified, and disclosed in accordance with internationally accepted publics sector
accounting procedures.
The concepts of the different types of capital maintenance are applied in line with
generally recognised accounting practice.
SPECIFIC OUTCOME 2
Prepare and comment on financial reports for different forms of municipal entities.
ASSESSMENT CRITERIA
Group 3: US 119331 27
Consequential differences in the reporting of equity of municipal entities is recognised in
the preparation of consolidated financial statements.
SPECIFIC OUTCOME 3
Apply and comment on statements of generally recognised accounting practice.
ASSESSMENT CRITERIA
The concepts of the different types of capital maintenance are applied in line with
international public sector accounting standards.
The appropriate method of current value accounting is used in preparation and
presentation of supplementary financial statements in line with international public
sector accounting standards.
SPECIFIC OUTCOME 4
Analyse and interpret financial statements for stakeholders.
ASSESSMENT CRITERIA
Ratios relevant to the determination of liquidity, profitability, activity and long-term
solvency are calculated and advised on from a set of financial statement.
Different users of municipal financial statements are identified and their information
needs presented and explained to inform financial reporting system.
Limitations of published financial information are recognised with reference to
improving operating capability of a municipality.
Results of an analysis of profitability and solvency risks are interpreted in the assessment
of financial health of a municipality.
Multivariate financial analysis are carried out and communicated to appropriate users of
municipal financial statements.
Ratios relevant to the determination of liquidity, profitability, activity and long-term
solvency are calculated and advised on from a set of financial statement.
Group 3: US 119331 28
The financial performance report is prepared to enable an analysis of the overall
financial state of a municipality within the framework of financial reporting.
UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

 An individual wishing to be assessed (including through RPL) against this Unit
Standard may apply to an assessment agency, assessor or provider institution
accredited by the relevant ETQA, or an ETQA that has a Memorandum of
Understanding with the relevant ETQA.
 Anyone assessing a learner against this Unit Standard must be registered as an
assessor with the relevant ETQA, or an ETQA that has a Memorandum of
Understanding with the relevant ETQA.
 Any institution offering learning that will enable achievement of this Unit
Standard or assessing this Unit Standard must be accredited as a provider with
the relevant ETQA, or an ETQA that has a Memorandum of Understanding with
the relevant ETQA.
 Moderation of assessment will be conducted by the relevant ETQA at its
discretion.
UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

 Nature of accounting data
 Objectives of financial reporting
 Different bases of measurement
 International public sector accounting standards
 National Treasury regulations
 Municipal finance management legislation
UNIT STANDARD DEVELOPMENTAL OUTCOME

N/A
UNIT STANDARD LINKAGES

N/A
Critical Cross-field Outcomes (CCFO):
UNIT STANDARD CCFO IDENTIFYING

Identify and solve problems using critical and creative thinking processes, e.g. by
implementing effective risk management and accounting practices.
UNIT STANDARD CCFO WORKING

Work effectively with others as a member of a team, group, organisation or community,
e.g. through assuring that all roles players are committed to meeting the required
reporting standards.
Group 3: US 119331 29
UNIT STANDARD CCFO ORGANISING
Organise and manage oneself and one`s activities responsibly and effectively, e.g.
through the demonstration of ethical and moral principles in all reporting processes.
UNIT STANDARD CCFO COLLECTING

Collect, analyse, organise and critically evaluate information, e.g. through assuring
accuracy in all reporting documents.
UNIT STANDARD CCFO COMMUNICATING

Communicate effectively using visual, mathematical and / or language skills in the modes
of oral and/or written persuasion, e.g. through contributing to discussions on ways of
minimizing risks and improving financial reporting procedures.
UNIT STANDARD CCFO SCIENCE

Use Science and technology effectively and critically, showing responsibility to the
environment and health of others, e.g. use appropriate computer software for
mathematical computation, planning, data capturing and document storage purposes.
UNIT STANDARD CCFO DEMONSTRATING

Demonstrate an understanding of the world as a set of interrelated systems by
recognising that problem-solving contexts do not exist in isolation, e.g. in keeping in
mind that best practice financial reporting effects the financial sustainability of not only
the municipality but the country as a whole.
UNIT STANDARD CCFO CONTRIBUTING

Participating as responsible citizens in the life of local, national and global communities,
e.g. acting as custodian of ethical behaviour and maintaining a high level of commitment
to providing effective reporting procedures.
QUALIFICATIONS UTILISING THIS UNIT STANDARD:

ID QUALIFICATION TITLE LEVEL STATUS END DATE
Certificate: Municipal Financial 2010-09-
Core 48965 Level 6 Reregistered
Management 18
National Certificate: Municipal 2011-04-
Elective 60529 Level 5 Registered
Governance 09
All qualifications and unit standards registered on the National Qualifications Framework are
public property. Thus the only payment that can be made for them is for service and
reproduction. It is illegal to sell this material for profit. If the material is reproduced or
quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the
source.
Group 3: US 119331 30
Group 3: US 119331 31
Section 3: Formative Assignments
Please insert:
1. Your formative assignments in this section
2. The completed marking grid

(NB: Your provider will return to you your marked assignment and marking grid)
Group 3: US 119331 32
Unit 1:
Select measure, record, classify and report financial data in accordance with current financial
reporting standards
3.1.1 List and briefly define the objectives of the GRAP standards which are effective from 31
March 2015. (20 marks)
GRAP Objectives Definition X/

GRAP 1 GRAP 1 – The objective of this standard is to prescribe the
Presentation of
basis for presentation of general-purpose financial
Annual Financial
statements so as to ensure comparability both with
Statements
the entity’s financial statements of previous periods
and with the financial statements of other entities.
To achieve this objective, the standard sets out
overall considerations for the presentation of
financial statements, guidelines for their structure
and minimum requirements for their content.
General purpose financial statements are dealt with

in this standard. It refers to those statements
intended to meet the needs of users who are not in a
position to demand reports tailored to meet their
particular information needs. Users of general
purpose financial statements include taxpayers and
ratepayers, members of the legislature, creditors,
suppliers, the media, and employees. General
purpose financial statements include those that are
presented separately or within another public
document such as an annual report. This standard
does not apply to the structure and content of
condensed interim financial information.
Group 3: US 119331 33
GRAP 2 GRAP 2 – Cash The cash flow statement standard identifies the
Flow Statements sources of cash inflows, the items on which cash was
spent during the reporting period, and the cash
balance as at the reporting date. Information about the
cash flows is useful in providing users of financial
statements with information for both accountability
and decision making purposes. Cash flow information
allows users to ascertain how an entity raised the cash
it required to fund its activities and the manner in
which that cash was used. In making and evaluating
decisions about the allocation of resources, such as the
sustainability of the entity’s activities, users require an
understanding of the timing and certainty of cash
flows. It basically refers to the reconciliation of the
transaction flow between the opening balances and
closing
balances of the bank.
GRAP 3 GRAP 3- This standard prescribes the accounting treatment and
Accounting disclosure requirements when an entity changes its
policies, changes in accounting policies or accounting estimates. It deals
accounting with the accounting treatment and disclosure
estimates requirements regarding prior period errors.
and errors
Accounting policies are the specific principles, bases,
conventions, rules and practices applied by an entity in
preparing and presenting financial statements.
A change in accounting estimate is an adjustment of

the carrying amount of an asset or a liability. It may
also refer to the amount of the periodic consumption
of an asset that results from the assessment of the
Group 3: US 119331 34
present status of, and expected future benefits and
obligations associated with assets and liabilities.
Changes in accounting estimates result from new

information or new developments and, accordingly,
are not corrections of errors.
Prior period errors are omissions from, and
misstatements in, the entity’s financial statements for
one or more prior periods Such errors include the
effects of mathematical mistakes, mistakes in applying
accounting policies, oversights or misinterpretations of
facts, and fraud.
GRAP 4 GRAP 4 – A municipality may have transactions in foreign

The
currencies. These transactions should be converted
effects of
into the entity’s reporting currency. The standard
changes in
gives guidance on the exchange rate to use when
converting foreign currency into Rand and how to
Foreign
recognise the financial effect of changes in exchange
Exchange Rates
rates in the entity’s financial statements. The
contents of this standard have been largely
constrained by section 164 read with section 47 of
the MFMA -
Regulating transactions in foreign currency.
GRAP 5 Borrowing Costs It is a long-established principle in accounting that
the cost of an asset should include all costs incurred
to prepare it for its purpose to earn revenue.
Borrowing costs are defined as interest and other
costs incurred by the entity in connection with the
borrowing of funds.
This standard gives guidance on the calculation of
Group 3: US 119331 35
borrowing costs that can be capitalised as part of the
cost of qualifying assets.
GRAP 6 The objective of this GRAP 6 is to prescribe the
GRAP 6 – circumstances in which consolidated and separate
Consolidated and financial statements are to be prepared and the
information to be included in those financial
Separate Financial
statements so that the consolidated financial
Statements statements reflect the financial performance, financial
position, and cash flows of an economic entity as a
single entity. The standard includes consolidation
procedures and disclosure requirements.
In preparing consolidated financial statements, the

financial statements of the controlling entity and its
controlled entities are combined on a line-by-line
basis by adding together like items of assets,
liabilities, net assets, revenue and expenses. Inter
entity transactions are eliminated.
The purpose of consolidated financial statements is to
present
financial information about a group of entities as that
of a single entity.
GRAP 7 This standard provides the basis for accounting for
GRAP 7
interests in associates. An associate is an entity,
–
Investment in including an unincorporated entity such as a
Associates partnership, over which the municipality has
significant influence and that is neither a controlled
entity nor an interest in a joint venture.
This Standard prescribes the accounting treatment for
investments in associates where the investment in the
associate leads to the holding of an ownership interest
in the form of a shareholding or other form of interest
in the net assets. This Standard generally requires that
investments in associates should be accounted for in
Group 3: US 119331 36
consolidated financial statements of the municipality
by using the equity method only when the municipality
has significant influence in participating in the financial
and operating policies of the associate.
GRAP 8 A joint venture is a binding agreement whereby two
GRAP 8- Interest in
or more parties are committed to undertake an
Joint ventures
activity which is subject to joint control. This
standard provides the basis for accounting for
interests in joint ventures and the reporting of joint
venture assets, liabilities, revenue and expenditure in
the financial statements of a municipality
involved in such a venture.
GRAP 9 The objective of this standard is to prescribe the
GRAP 9
accounting treatment of revenue. The primary issue
–
Revenue in accounting for revenue is determining when to
from recognise revenue. Municipalities have a variety of
exchange revenue flows of which rate and service revenues are
transactions the predominant sources. These revenue flows are
lined to conditional and unconditional government
grants.
Revenue is recognised when it is probable that

future economic benefits or service potential will
flow to the entity and these benefits can be
measured reliably. The standard identifies the
circumstances in which these criteria will be met.
The application of this standard will depends on the
nature of the revenue flow. For example, revenue
from meter readings can be referred to accrued
revenue because the revenue is based on a set
delivery of service during a specific financial period.
Group 3: US 119331 37
Fines, on the other hand, are unsure of revenue
collection because it is dependable on the receipt of
payment. Examples of the application of these
criteria are provided
in the standard.
GRAP 10 This standard deals with adjustments that need to be
GRAP 10
made to the historical cost basis financial statements
-
of municipalities that operate in hyperinflationary
Financial
economics.
Reporting
GRAP 11 This statement deals with the recognition,

GRAP 11
measurement, and disclosure of a particular kind of
-
Construction inventory in the financial statements of an entity that
Contracts pursues construction activities. The standard
addresses in particular the difficulty concerning the
allocation of contract revenue and expenses to
different accounting periods over
the duration of the contract.
GRAP 12 Inventories are assets held for sale in the following
GRAP 12 instances:
–  in the ordinary course of business or in the
Inventories
production for such sale;
 in the form of materials to be consumed;
 in the production process; and
 in the rendering of services inclusive of water and
purified effluent on hand.
The objective of this standard is to prescribe the
accounting treatment of inventories including:
 costing
 measurement of inventories;
 write down of inventories
disclosure in the AFS
Group 3: US 119331 38
GRAP 13 This standard gives guidance on the recognition of
GRAP 13 - Leases
operational and finance leases as well as the
accounting treatment of leases in the financial
statements of the lessee and the lessor. The
treatment of leases is an important disclosure issue
in the AFS and is fully
described in this standard.
GRAP 14
GRAP 14 – Events This standard deals with the accounting treatment
after reporting and disclosure requirements of events after the
date reporting date that occurs between the balance
sheet date and the date when the financial
statements are authorised for issue. Two types of
events can be identified:
 those that provide evidence of conditions that
existed at the balance sheet date (adjusting
events after the balance sheet date); and
 those that is indicative of conditions that arose
after the balance sheet date (non-adjusting
events after the balance sheet
date).
GRAP 16 GRAP 16 This standard defines investment property as
–
property held to earn rentals or for capital
Investment
appreciation, or both. It prescribes a choice that has
Properties
to be made by the municipality to apply one of the
following two accounting models for the
measurement of investment property:
 Cost model
 Fair value model
The standard gives guidance on the accounting and

disclosure requirements on the model that the
Group 3: US 119331 39
municipality applies.
GRAP 17 GRAP 17 The objective of this standard is to prescribe the
–
accounting treatment for property, plant and
Property,
equipment. The principal issues in accounting for
Plant and
property, plant and equipment are:
Equipment
 the timing of recognition of the assets;
 measurement at cost or in the case of properties
at cost or a revalued amount;
 the compilation of cost;
 determination of useful lives and the reviewing
them and account for any changes;
 the depreciation methodology and charges to be
recognised in relation to them;
 reviewing the depreciation methodology and
account for any changes;
 the determination and accounting treatment of
impairments to the carrying amounts.(value less
accumulated depreciation)
 classification of property, plant and equipment
into infrastructure-, community-, heritage-, and
other assets.
disclosure of PPE in the AFS
GRAP 18 GRAP 18 The objective of this Standard is to establish principles
–
for reporting financial information by segments.
Segment Reporting
GRAP 19 GRAP 19 The objective of this standard is to define the
– following:
Provisions,
 Provisions, when a municipality has a present
Contingent
legal or constructive obligation to transfer
Liabilities and
economic benefits at reporting date and a
Contingent Assets
reasonable estimate of the obligation can be
made. An obligation implies the existence of a
Group 3: US 119331 40
third party to which the municipality is obligated.
 Contingent assets; are possible assets which

arises from past events (existed at reporting
date) and whose existence will be confirmed only
by the occurrence or non-occurrence of one or
more uncertain future events not wholly within
the control of the municipality.
 Contingent liabilities are possible obligations that

arises from past events and whose existence will
be confirmed only by the occurrence or non-
occurrence of one or more uncertain future
events not wholly within the control of the
municipality
 The standard also gives guidance to:

 the identification of the circumstances in
which provisions should be recognised;
 how they should be measured;
 the disclosure requirements; and
 The disclosure requirements of contingent
assets and contingent liabilities in the notes
to the financial statements to
enable users to understand their nature, timing and
amount.
GRAP 21  The objective of this Standard is to prescribe
GRAP 21
the procedures that a municipality applies to
–
Impairment of determine whether a non-cash- generating
Non- cash- asset is impaired and to ensure that
generating Assets impairment losses are recognised. The
Standard also specifies when a municipality
Group 3: US 119331 41
would reverse an impairment loss and
prescribes
disclosures.
GRAP 23 GRAP 23 The objective of this Standard is to prescribe
–
requirements for the financial reporting of revenue
Revenue from
arising from non-exchange transactions, other than
Non- exchange
non-exchange transactions that involves a transfer of
Transactions
functions between entities under common control or
a merger. The Standard deals with issues that need
to be considered in recognising and measuring
revenue from non-exchange transactions, including
the identification of contributions from owners.
GRAP 24 GRAP This Standard requires a comparison of budget
amounts and the actual amounts arising from
24-
Presentation of execution of the budget to be included in the financial
Budget statements of entities that are required to, or elect to,
Information in make publicly available their approved budget(s) and
Financial for which they are, therefore, held publicly
Statements accountable. The Standard also requires disclosure of
an explanation of the reasons for material differences
between the budget and actual amounts. Compliance
with the requirements of this Standard will ensure that
entities discharge their accountability obligations and
enhance the transparency of their financial statements
by demonstrating compliance with the approved
budget(s) for which they are held publicly accountable
and, where the budget(s) and the financial statements
are prepared on the same basis, their financial
performance in achieving the budgeted results.
GRAP 25 The objective of this Standard is to prescribe the
GRAP 25- accounting and disclosure for employee benefits.
The Standard requires an entity to recognise:
Group 3: US 119331 42
Employee Benefits (a) a liability when an employee has provided service
in exchange for employee benefits to be paid in the
future; and
an expense when the entity consumes the
economic benefits or service potential arising from
service provided by an employee in exchange for
employee benefits.
GRAP
procedures that a municipality applies to determine
26- whether a cash-generating asset is impaired and to
Impairment of
ensure that impairment losses are recognised. The
Cash- generating
Standard also specifies when a municipality should
assets
reverse an impairment loss and prescribes
disclosures.
GRAP
accounting treatment and disclosures for an
27- agricultural activity.
Agriculture
GRAP 31- accounting treatment for
intangible assets that are not dealt with specifically in
Intangible Assets
another Standard of GRAP.
This Standard requires an entity to recognise an
intangible asset if, and only if,
specified criteria are met. The Standard also specifies
how to measure the
carrying amount of intangible assets, and requires
specified disclosures about
Intangible assets.
GRAP 100 The objective of this Standard is to specify the
GRAP 100
presentation and disclosure of discontinued
–
Discontinued operations. In particular, the Standard requires the
Operations results of discontinued operations to be presented
separately in the statement of financial performance
with additional disclosures provided in the notes to the
Group 3: US 119331 43
financial statements.
GRAP 103
accounting treatment for heritage assets and related
–
Heritage Assets disclosure requirements.
GRAP 104 GRAP 104 prescribes recognition, measurement,
GRAP 104 presentation and disclosure requirements for
– financial instruments. Financial instruments are
Financial broadly defined as those contracts that results in a
financial asset in one entity and a financial liability or
Instruments
residual interest in another entity. A key
distinguishing factor between financial assets and
financial liabilities and other assets and liabilities, is
that they are
settled in cash or by exchanging financial instruments
rather than through the provision of goods or service.
GRAP 105
GRAP 105- The objective of this Standard is to establish
Transfer of accounting principles for the acquirer and transferor in
a transfer of functions between entities under
Functions common control.
Between
Entities Under
Common Control
GRAP 106 GRAP 106- The objective of this Standard is to establish
Transfer accounting principles for the acquirer in a transfer of
Functions functions between entities not under common control.
Between Entities
Not Under
Common Control
GRAP 107 GRAP 107- The objective of this Standard is to establish
Mergers accounting principles for the combined entity and
combining entities in a merger.
Mark
Group 3: US 119331 44
3.1.2 Define MFMA requirements with regards to the drafting and presentation of financial
statements. (8)
Tip: Indicate what each section refers to.
Section X/
Section 122 (1): Every municipality and every municipal entity must for each
financial year prepare annual financial statements which:-
 Fairly presents the state of affairs of the municipality or entity, its
performance against its budget, its management of revenue, expenditure, assets
and liabilities, its business activities, its financial results, and its financial position as
at the end of the financial year; and
 Disclose the information required in terms of sections 123, 124 and 125
Section 121 (2): A municipality which has sole control of a municipal entity, or
which has effective control within the meaning of the Municipal Systems Act of
a municipal entity which is a private entity, must in addition to complying with
subsection (1), prepare consolidated annual financial statements incorporating
the annual financial statements of the municipality and of such entity. Such
consolidated annual financial statements must comply with any requirements
as may be prescribed.
Section 121 (3): Both annual financial statements and consolidated annual
financial statements must be prepared in accordance with generally recognised
accounting practice prescribed in terms of Section 91(1) (b) of the MFMA.
What other important sections within the MFMA that impacts on financial
statements include and stipulate that:
 Section 123 stipulate the disclosures on intergovernmental and
other allocations
 Section 124 stipulate the disclosures concerning councillors, directors
and officials
 Section 125 stipulate the other compulsory disclosures.
Mark
3.1.3 Name the components of the statement of financial position and list four examples for
each component from appendix A below. (6)
Group 3: US 119331 45
Component Example X/
Assets Current assets (e.g. cash at bank, cash in hand, inventory)
Trade receivables (debtors; money that clients or

customers owe the business)
Fixed assets (e.g. property, PPE, vehicles, machinery,
equipment)
Intangible assets (e.g. trademarks, patents, licences,
copyrights)
Liabilities Current Liabilities: Accounts payable, Trade payables
(money that the company owes to its suppliers and service
providers)
Business tax (VAT, Corporation Tax, PAYE payments due)
Long-term Liabilities: Bank loans, external loans and

mortgages
Accrued expenses (such as wages and salaries); the

current due within a one-year portion of long-term debt;
and any other obligations to creditors due within one
year from the date of the statement of financial position.
Mark
3.1.4 Name the components of the statement of financial performance and list four examples
for each component from appendix A below. (10)
Component Example X/
Revenues Property Rates: Represents revenue bases on

levies on rateable properties.
Property Rates/Penalties Interest raised on
payment in arrears on property rates levies.
Service Charges: Represent charges on the
consumption of water and
Group 3: US 119331 46
electricity and charges for the removal of
sewerage and refuse.
Rental of Facilities and Equipment Represents
revenue derived from rental agreements
with third parties.
Expenditure Employee Related Costs Includes salaries,wages
and allowances of employees.
Remuneration of Councilors
Bad Debts, Represent the contribution
to the bad debt allowance account as well as the
actual write off of bad debt.
Collection Costs
Mark
3.1.5 List and define the concepts applied in capital maintenance. (4)
Concept Definition X/

Financial capital Financial capital refers to the sum of the values of the
Maintenance net assets at a point in time. The term “values” refer to
measurements of defined attributes of the assets i.e.
acquisition costs, replacement costs, net realisable
values or a diverse choice of these measures. Financial
capital maintenance means the entity has the same
amount of assets measured in nominal currency or
constant currency. Profit is measured as the difference
between capital at beginning and end of a period where
capital is the amount of net assets. Increases and
decreases in asset values are part of income.
Physical capital Physical capital refers to the physical quantity of assets
Maintenance and liabilities at a point in time that is the potential
operating capacity of the entity. Operating capacity may
be interpreted as physical assets, the volume of goods
Group 3: US 119331 47
and services being produced by the entity, or the value of
such goods and services.
Mark
Group 3: US 119331 48
Unit 2:
Prepare and comment on financial reports for different forms of municipal entities
3.2.1 Define equity with reference to annual financial statements of a municipality.
(9)
Equity Definition X/

Equity in The equivalent in the statement of financial position of a
Municipalities municipality, to what is regarded as the equity section of
an organisation’s statement of performance (balance
sheet), is net assets, also described as community wealth.
It represents the residual interest of the owners in the
assets of the municipality after deducting all its liabilities.
Within the municipal framework, owners refer to the
community (ratepayers, consumers, citizens within the
borders of the municipality). These “owners” don’t have
the same interest in the municipality as owners of a
company who have a vested interest and expect a return
on their investment through shareholding. The community
in the municipal jurisdiction has invested interest in the
ability of the municipality to deliver services to them.
Net Assets Net assets are the term used in the conceptual framework
(GRAP0) to refer to the residual left over in the statement
of financial position after liabilities were deducted from
assets. Such residual can either be positive or negative.
Although net assets are defined as a residual, it is sub-
classified in the statement of financial position of a
municipality. Such classifications can be relevant to the
decision-making needs of the users of the financial
statements when they indicate legal or other restrictions
on the ability of the entity to distribute or otherwise apply
Group 3: US 119331 49
its net assets.
The disclosure of net assets on the statement of financial
position as issued by National Treasury in the specimen
statements 2013 are described hereunder:
Net Assets And Liabilities: Net assets, Housing
development fund, COID fund, Self-insurance fund,
Revaluation reserve, Government grant reserve,
Capitalisation reserve, Donations and public contribution
reserves, Accumulated Surplus / Deficit
Net Realizable Value Net realizable value might more appropriately be called
“exit value” in that it represents an expected selling value
after an allowance for appropriate carrying and disposal
costs including such items as income taxes and interest.
Mark
3.2.2 Define equity with reference to the annual financial statements of an entity other than a
municipality. (9)
Definition X/
Equity is sometimes called capital or net worth. It refers to money that would
be left over if an entity sold all of its assets and paid off all of its liabilities. This
leftover money belongs to the shareholders, or the owners, of the entity. This
equity can include share capital. The aim of this unit is to prepare and
comment on financial reports related to different municipal entities.
Mark
3.2.3 List the disclosure requirements in an entity’s annual financial statements for equity. (6)
Disclosure Requirements X/
Housing development fund
COID fund
Self- insurance fund
Group 3: US 119331 50
Revaluation reserve
Government grant reserve
Capitalisation reserve
Donations and public contribution reserves
Accumulated Surplus / Deficit
Mark
3.2.4 Briefly discuss the differences in reporting on equity between municipal entities and the
municipalities. (4)
The following differences exist in the equity reporting of a municipality to those of controlled
municipal entities
Municipality X/ Controlled municipal entity X/
No share capital. Issued share capital.
No partner’s capital accounts. Partner capital accounts if
entity is a
partnership.
Statutory funds i.e Housing No statutory funds.
development fund.
Government grant reserve, donations No equivalent reserves.
and public contribution reserves, Self
insurance fund, Capitalisation reserve.
Difference in accounting policies: e.g. Accounting policy determines
Accounting policy determines all all investment properties to
investment property to becarried at be valued at historical cost.
fair value .
Mark Mark
Total Mark
3.2.5: Discuss, using practical examples, the difference in the reporting of equity of municipal
entities in the preparation of consolidated financial statements.
ABC municipality controls a partially owned entity, XYZ Pty (Ltd) and the following must be
accounted for in the consolidation:
The municipality owns 80% of the issued shares in the controlled entity which they acquired at R1
per share and has power to govern financial and operating activities of the entity.
Group 3: US 119331 51
On 30 June 2015 the entity had land with a cost price of R25 000 which it had revalued to R 37 000
at year end. ABC municipality has adopted a policy of disclosing PPE at cost and this policy will be
applied for the consolidation of the statements.
The following tables demonstrate the net asset section of the statements of financial position of
both the municipality and its controlled entity as at 30 June 2014 and as at 30 June 2015.
STATEMENTS OF FINANCIAL POSITION AT 30 JUNE 2014.
ABC Municipality XYZ Pty (Ltd)
R R
NET ASSETS AND LIABILITIES
Net Assets
Authorized and issued capital: R1 100,000
ordinary shares
Revaluation reserve
250,000
Other funds and reserves
Accumulated Surplus 1 550,000 25,500
Total net assets (Net equity) 1 800,000 125,500
STATEMENTS OF FINANCIAL POSITION AT 30 JUNE 2015.

ABC Municipality XYZ Pty (Ltd)
R R
NET ASSETS AND LIABILITIES
Net Assets
Authorised and issued capital: 100,000
R1
ordinary shares
Revaluation reserve 12,000

Other funds and reserves 250,000
Accumulated Surplus 1 600,000 32,000
Total net assets (Net equity) 1 850,000 144,000
The first step in the consolidation process is to determine the net asset value of the
controlled entity to be included in the consolidated financial statements.
Group 3: US 119331 52
ANALYSIS OF SHAREHOLDERS INTEREST OF XYZ Pty (Ltd) AT
30 JUNE 2014
Total Municipality Minority
80% interest
20%
30 June 2014
Share Capital 100,000 80,000 20,000
Accumulated surplus 25,500 20,400 5,100
Revaluation reserve
Equity of controlled entity 125,500 100,400 25,100
ANALYSIS OF SHAREHOLDERS INTEREST OF XYZ Pty (Ltd)

AT 30 JUNE 2015
Total Municipality Minority
80% interest
20%
30 June 2015
Share Capital 100,000 80,000 20,000
Accumulated surplus 32,000 25,600 6,400
Revaluation reserve 12,000 -
Equity of controlled entity 144,000 105,600 26,400
Note: If a member of the economic entity uses accounting policies other than those
adopted in the consolidated financial statements in respect of like transactions and events
in similar circumstances, appropriate adjustments are made to its financial statements
when they are used in preparing the consolidated financial statements. Therefore the
revaluation reserve balance of the XYZ Pty (Ltd) R 12,000 at 30 June 2015 is ignored in the
analysis of the shareholders interest as set out above as it is not the accounting policy of
the ABC municipality to revalue land. On consolidation the PPE figure of the XYZ Pty (Ltd)
will need to be reduced by R 12,000 to take this difference in accounting policy into
account.
Step two in the equity consolidation process is to combine the net assets of ABC
municipality and XYZ Pty (Ltd).
Adjustment of financial statements in the consolidation of ABC
municipality and XZY Pty (Ltd) at 30 June 2014
Group 3: US 119331 53
ABC XYZ Pty Adjustments ABC
municipality (Ltd) Municipality
(Economic
entity)
NET ASSETS AND

LIABILITIES
Net assets
Authorised and - 100,000 -100,000 -
issued capital: R1 ordinary
shares
Revaluation reserve - - - -
Other funds and 250 000 - - 250 000
reserves
Minority interest - - 25,100 25,100
Accumulated 1 550 000 -5,100 1 570,400
25 500
Surplus
Total net assets 1 800 000 125 500 -80,000 1 845 500
Current liabilities
Creditors 20,000 10,000 - 30,000
Total current 20,000 10,000 30,000
liabilities
Total net assets 1 820,000 135,500 -80,000 1 875,500
and liabilities
ASSETS
Non current assets
Property, Plant and 1 220,000 80,000 - 1 300,000
Equipment
Investments 80,000 - -80,000 -
Total non current 1 300,000 80,000 -80,000 1 300,000

assets
Current assets
Debtors 300,000 25,000 - 314,500
Short term 220,000 30,500 - 250,000
investments
Group 3: US 119331 54
Total current 520,000 55,500 - 79,500
assets
Total Assets 1 820,000 135,500 -80,000 1 875,500
Adjustment of financial statements in the consolidation of ABC

municipality and XZY Pty (Ltd) at 30 June 2015
ABC XYZ Adjustments ABC
municipality Municipality
Pty (Ltd) (Economic entity)
NET ASSETS AND

LIABILITIES
Net assets
Authorised and - 100,000 -100,000 -
issued capital: R1
ordinary shares
Revaluation reserve - 12,000 -12,000 -
Other funds and 250,000 - - 250,000
reserves
Minority interest - - 26,400 26,400
Accumulated 1 600,000 32,000 -6 400 1 625,600
Surplus
Total net assets 1 850,000 144,000 -92,000 1 902,000
Current liabilities
Creditors 12,000 14,000 - 26,000
Total current 12,000 14,000 26,000
liabilities
Total net assets 1 862,000 158,000 -92,000 1 928,000
and liabilities
ASSETS
Non current
assets
Property, Plant and 1 205,000 105,000 -12,000 1 298,000
Equipment
Investments 80,000 - -80,000 -
Total non current 1 285,000 105,000 -92,000 1 298,000
assets
Current assets
Debtors 260,000 20,000 - 280,000
Short term 317,000 33,000 - 350,000
investments
Total current 577,000 53,000 - 630,000
assets
Total Assets 1 862,000 158,000 -92,000 1 928,000
Group 3: US 119331 55
Note –One of the requirements of the CAFS is that the inter – entity transactions have to be
eliminated. The share disclosure of XYZ Pty (Ltd) of R100,000 includes R80,000 (80,000
shares purchased at R1 each) owned by ABC municipality. The investment under non-
current assets–long-term investments in the statement of financial position of the
municipality of R80,000 will then be eliminated to compensate the elimination of the
shareholding.
The revaluation reserve balance of XYZ Pty (Ltd) of R 12,000 for 2015 is eliminated against
the consolidated PPE disclosed under non-current assets as it was re-valued contrary to the
accounting policy of the ABC municipality to revalue land.
Step three in the consolidation process is to compile the net assets section on the
consolidated statement of financial position at 30 June 2015. The outline and presentation
of the consolidated annual financial statements is as prescribed by the National Treasury in
their specimen guidelines for consolidated annual financial statements.
ABC MUNICIPALITY CONSOLIDATED STATEMENT OF FINANCIAL

POSITION AT 30 JUNE 2015
ABC MUNICIPALITY ECONOMIC ENTITY
2014 2015 2015 2014
R R R R
NET ASSETS AND
LIABILITIES
Net Assets
80,000 100,000 Funds and reserves 100,000 80,000
Minority interest 20,800 18,900
59,000 49,000 Accumulated Surplus 68,200 70,600
139,000 149,000 Total net assets 189,000 169,500
Current Liabilities
20,000 12,000 26,000 30,000
Creditors
20,000 12,000 Total current 26,000 30,000
liabilities
Group 3: US 119331 56
159,000 161,000 Total net assets and 215,000 199,500
liabilities
ASSETS
Non Current Assets
60,000 80,000 Plant, Property and 140,000 120,000
Equipment
64,000 64,000 Investments - -
124,000 144,000 Total non current 140,000 120,000
assets
Current Assets
19,000 10,000 Debtors 30,000 33,500
16,000 7,000 Short term 45,000 46,000
investments
35,000 17,000 Total current assets 75,000 79,500
159,000 161,000 Total assets 215,000 199,500
Group 3: US 119331 57
The Municipality has to comply with the Standard of GRAP (GRAP 6) on Consolidated
Financial Statements and Accounting for Controlled Entities.
Assessment Decision
Unit 3
3.2.6 Apply and comment on statements of generally recognised accounting practice
 Identify the concepts of the different types of capital maintenance in line with
international public sector/accounting practices
 Understand how the appropriate method of current value accounting is used in
preparation and presentation of supplementary financial statements in line with
international public sector accounting standards
3.3.1 List and define the methods of calculating the current value of assets. (6)
List Definition X/

Net Present Value Present value is the ideal basis for current valuation of
resources and obligations because it is more consistent with
management’s objective to measure future cash flows.
Except for direct-flow monetary items, however, this ideal is
difficult to achieve in a practical sense, and the remaining
two alternatives must be used. Each is discussed below.
Present value (of future cash flows) may be applied to an
individual resource or obligation or to a group of resources
National Treasury: Structuring Your POE. U/S 116363 -2015 58

and obligations. In all cases, it relates to future cash inflows
and outflows that can be attributed to or related to a
specific item or group of items. This measurement is
particularly suitable to financial instruments such as
accounts receivable, notes payable, etc., where the timing
of cash movements is quantifiable. In present value
determination, an interest rate (or discount factor) is used
to discount the future cash flows to the date of
measurement.
Current Costs Current cost means the cost of replacing the resource or
obligation at the date the measurement is conducted. One
may wish to judge current cost on the basis of the exact
physical reproduction of the facility being measured.
Net realisable Net realisable value might more appropriately be called
“exit value” in that it represents an expected selling value
after an allowance for appropriate carrying and disposal
costs including such items as income taxes and interest.
It is also the estimated selling price of the item of
inventories in the ordinary course of municipal business,
less the estimated costs of completion (if applicable) and
the estimated costs necessary to make the sale (of the item
of inventories).
Mark
3.3.2 Explain how each of the following assets should be measured according to the
relevant accounting standards. (21)
 Inventory: GRAP 12
Inventories should be measured at the lower of cost and net-realizable value
except where inventories should be measured at the lower of cost and
current replacement cost if they are held for:
 Distribution at no charge or for a nominal charge, or
 Consumption in the production process of goods to be distributed at no

charge or for a nominal charge.
 Financial instruments: GRAP 104

Initially, financial assets and liabilities should be measured at fair value
plus, in case of a financial asset or a financial liability not subsequently
measured at fair value, transaction costs that are directly attributable to
the acquisition or issue of the financial asset or financial liability.
How financial assets are subsequently measured, and where gains or
losses are recognised, depends on their classification:
Financial assets and liabilities How measured
At fair value through profit or loss Fair value
(including held-for-trading)
Financial instruments at cost Cost
Financial instrument at amortized cost Amortized cost, using the effective
interest method.
 Intangible assets: GRAP 31
An intangible asset shall be measured initially at cost. Subsequently a
municipality shall choose either the cost model or the revaluation model as
its accounting policy. In the cost model, after initial recognition, an intangible
asset shall be carried at its cost less any accumulated amortisation and any
accumulated impairment losses. With the revaluation model, after initial
recognition, an intangible asset shall be carried at a revalued amount, being
its fair value at the date of the revaluation less any subsequent accumulated
amortisation and any subsequent accumulated impairment losses. For the
purpose of revaluations under this Standard, fair value shall be determined
by reference to an active market.
 Property, plant and equipment: GRAP 17

The initial recording of an item of property, plant and equipment that qualifies for
recognition as an asset should initially be measured at its cost. Subsequent expenditure
relating to property, plant and equipment is capitalized if it is probable that future economic
benefits or potential service delivery of the asset is enhanced in excess of the originally
assessed standard of performance. GRAP 17 permits municipalities to revalue PPE if they

wish to do so. In other words, voluntary revaluation of PPE, for which there is an active
market, is permitted.
 Leases: GRAP 13
At the commencement of the lease term, lessees shall recognise finance leases as assets and
liabilities in their balance sheets at amounts equal to the fair value of the leased property
or, if lower, the present value of the minimum lease payments, each determined at the
inception of the lease. The discount rate to be used in calculating the present value of the
minimum lease payments is the interest rate implicit in the lease, if this is practicable to
determine; if not, the lessee’s incremental borrowing rate shall be used.
 Investment properties: GRAP16
Investment property is measured initially at its cost (including transaction
costs).Where an investment property is acquired at no cost (for example donated
assets), or for a nominal cost, its cost is its fair value as at the date of acquisition.
After initial recognition of the investment property the municipality may choose to
reflect the investment property at fair value or at cost less accumulated
depreciation.
 Agricultural assets: GRAP 27
A biological asset shall be measured on initial recognition and at each balance sheet
date at its fair value less estimated point-of-sale costs, except where the fair value
cannot be measured reliably measurement will be at cost less depreciation and
impairment. Agricultural produce harvested from a municipality’s biological assets
shall be measured at its fair value less estimated point-of-sale costs at the point of
harvest.
3.3.3 Explain the reasons for using current value accounting instead of historical basis of
accounting. (5)
The reasons for using current value accounting instead of historical basis of X/
accounting
Current value accounting is an accounting method that measures the value of
individual assets at the current prices they would command rather than at the

actual rand cost at which they were purchased in earlier times.
The many goals of accounting converge into an attempt to measure, record, and
communicate the economic realities of a municipality’s activity. Traditionally, this
has involved the compilation and preparation of a regular series of financial
statements or annual reports based on the concept of “historical costs.” More
specifically, the recording function has been linked to the cost documentation of
assets employed, resources purchased, and/or services secured as were
historically incurred.
This concept of historical cost proved quite adequate insofar as there was relative
stability in our economy and small adjustments in resource price levels between
fiscal periods. However, with price increases, high interest rates, inflation and
general increase in interest rates it was not possible to accurately determine the
true economic value of a municipality. The effects of inflation, even at its currently
more modest level, have clearly shown the inadequacies of historical-cost-basis
accounting. Current value accounting (CVA) is now being proposed by many
accounting firms as the most desired solution.
Mark
3.3.4 Distinguish between physical and financial capital maintenance and illustrate your
answer with examples. (10)
Financial Capital Maintenance Physical Capital Maintenance X/
Financial capital refers to the sum of the Physical capital refers to the physical
values of the net assets at a point in quantity of assets and liabilities at a
time. The term “values” refers to point in time that is the potential
measurements of defined attributes of operating capacity of the entity.
the assets i.e acquisition costs, Operating capacity may be interpreted
replacement costs, net realizable values as physical assets, the volume of goods
or a diverse choice of these measures. and services being produced by the
Financial capital maintenance means the entity, or the value of such goods and
entity has the same amount of assets services. The Companies Act adopted
measured in nominal currency or the Capital Maintenance rule to protect
constant currency. Profit is measured as the interest of creditors. The rule

the difference between capital at the required that the original capital base
beginning and end of a period where of a company, owner’s equity, be
capital is the amount of net assets. maintained. The Act therefore
Increases and decreases in asset values prohibited companies, except with
are part of income. permission of the court, from
Under this concept, a profit is earned if purchasing its own shares, however
the financial amount of the net assets at amendments to the Companies Act
the end of the period exceeds those at allows companies to buy back and
the beginning of the period. This cancel their own shares. The selection
excludes any distributions to and of an appropriate concept of capital by
contributions from, owners during the an entity should be based on the needs
period. Financial capital maintenance of its financial statements. Most
can be measured in either nominal entities adopt a financial concept of
monetary units, or units of constant capital where the main concern of
purchasing power. users is with the operating capability of
the entity then a physical concept of
capital should be used. The concept
chosen indicates the goal to be attained
in determining profit even though there
may be some measurement difficulties
in making the concept operational.
Under this concept, a profit is earned
only if the physical productive capacity
(or operating capability) of the
undertaking at the end of the period
exceeds the capacity at the beginning
of the period, (after excluding any
distributions to, and contribution from,
owners during the period.
Only inflows of assets, in excess of
amounts needed to maintain capital,
may be regarded as profit and as a

return on capital.
Examples Examples X/
Appreciation in value of land physical assets
Appreciation in value of buildings the volume of goods and services being
produced by the entity,
Revenue resulting in a surplus e.g. the value of such goods and services
Energy sold when generated from
WWTW
Mark
Unit 4:
Analyze and interpret financial statements for stakeholders
3.4.1 Define and discuss the concept of ratio analysis in a municipal context. X/

Ratio analysis is a tool to uncover trends in a municipality as well as allow the
comparison among municipalities. In order to judge whether the financial
performance is satisfactory the result of the ratio calculation must be compared
with a standard. There are basically four types of criteria which may be used for such
comparisons namely:
1. An objective, predetermined standard or budget
2. Historical data peculiar to the municipality
3. Comparable figures of preceding periods, such as the surplus or deficit of the
present year compared to the previous year.
4. Data from outside the Municipality - Comparative data of similar
municipalities
Empirically accepted standards, including the experience and
background of the analyst himself.
The ratios that are going to be concentrated on for the purpose of this learning unit
will be grouped into the following categories:
1. FINANCIAL POSITION
1.1 Liquidity Management
1.1.1 Current Ratio

1.1.2 Cash/Cost Coverage Ratio Excluding Unspent Conditional Grants)
1.2 Debtors Management

1.2.1 Collection Rate
1.2.2 Bad Debts Written-off as % of the Bad Debt Provision
1.2.3 Net Debtors Days
1.3 Asset Management

1.3.1 Capital Expenditure to Total Expenditure
1.3.2 Impairment of Property, Plant and Equipment and Investment
1.3.3 Property and Intangible Assets (Carrying Value)
1.3.4 Repairs and Maintenance as a % of Property, Plants and Equipment and
Investment Property (Carrying Value)
1.3.5 Liability Management
1.3.6 Capital Cost (Interest Paid and Redemption) as a % of Total Operating
Expenditure
1.3.7 Debt (Total Borrowings)/ Total Operating Revenue Purpose
2. FINANCIAL PERFORMANCE
2.1 Efficiency
2.1.1 Net Operating Surplus Margin
2.1.2 Net Surplus / Deficit Wate
2.1.3 Net Surplus /Deficit Electricity
2.1.4 Net Surplus /Deficit Refuse
2.1.5 Net Surplus / Deficit Sanitation and Wastewater
2.1.6 Electricity Distribution Losses (Percentage)
2.2 Distribution Losses: water and electricity
2.2.1 Revenue Management
2.2.2 Growth in Number of Active Consumer Accounts

2.2.3 Growth in Number of Active Consumer Accounts
2.2.4 Revenue Growth (%)
2.4 Expenditure Management
2.4.1 Creditors Payment Period (Trade Creditors)
Assessment Decision
3.4.2 Discuss and justify the analysis and interpretation of financial X/

statements. 
The purpose for analyzing and interpreting financial statements include the following:
 To determine whether a municipality has attained its objectives;
 To determine whether it can meet its long term commitments;

 To determine whether it can meet its short term commitments from liquid
resources;
 To determine whether investments yielded acceptable earnings;
 To assess the performance of municipal services;
 To determine where difficulties or problems occur when performance is
below average; and
 To make recommendations to improve problem areas.
Analysis of financial statements refers to the examination of the statements for the
purpose of acquiring additional information regarding the activities of the
municipality. The user of accounting information often finds analysis desirable for
the interpretation of the municipality’s activities. The purpose of analyzing the
statement of a municipality is to determine the following:
To what extent planned objectives have been reached
What was the cost of rendering each service
If the levels of tariffs for economic and trading services are such that those services
are at least self – supporting
Whether the level of the accumulated surplus at the end of an accounting period is
too high, acceptable or too low
Whether the loan debt of the municipality, in comparison with other comparable
municipalities, is too high or acceptable
If operating capital is sufficient to meet short term commitments
If the credit control policy is achieving its objectives
Whether consumer deposits are sufficient to prevent losses as a result of non-
payment
Assessment Decision
3.4.3 Research and discuss the application of the various interpretation X/
and analysis techniques.
Calculations and commentary on ratios relevant to the determination of
 Liquidity
 PROFITABILTY
 Activity

 Long term Solvency
1. Liquidity Management
The current ratio, quick ratio and working capital are all measures of a
municipality’s liquidity. In general, the higher these ratios are the better for the
municipality and the higher degree of liquidity.
1.1 Current Ratio: The Ratio is used to assess the Municipality’s or Municipal
Entity’s ability to pay back its Short-term Liabilities (Debt and Payables) with its
Short-term Assets (Cash, Inventory, Receivables).
Formula: Current Assets / Current Liabilities
Norm
The norm range is between 1.5 to 2 :1
Interpretation of Results
The higher the current Ratio, the more capable the Municipality or Municipal
Entity will be to pay its current or short-term obligations and provide for a risk
cover to enable it to continue operations at desired levels. A financial ratio under 1
suggests that the Municipality or Municipal Entity would be unable to pay all its
current or short-term obligations if they fall due at any specific point.
If current liabilities exceed current assets, it highlights serious financial challenges

and likely liquidity problems i.e insufficient cash to meet short-term financial
obligations. Current assets must therefore be increased to appropriately cover
current liabilities otherwise there is a risk that non-current assets will need to be
liquidated to settle current liabilities.
The ratio is very low when compared against the accepted norms of liquidity 1,50
or higher. Ratios of 0,46 and 0,52 indicate that there might be liquidity problems

being faced with the municipality and they may not be able to pay off their short
term obligations. Further indications are that the situation is getting worse as there
is a decline in the liquidity from 2014 to 2015.
1.2 Cash/Cost Coverage Ratio (Excluding Unspent Conditional Grants): The

Ratio indicates the Municipality's or Municipal Entity’s ability to meet at least its
monthly fixed operating commitments from cash and short-term investment
without collecting any additional revenue, during that month.
The Ratio is adjusted for Unspent Conditional Grants as the cash is not available for
normal Municipal day-to-day operational expenditure but rather reserved for
Grant related expenditure.
Formula:
((Cash and Cash Equivalents - Unspent Conditional Grants - Overdraft) + Short

Term Investment) / Monthly Fixed Operational Expenditure excluding
(Depreciation, Amortisation, and Provision for Bad Debts, Impairment and Loss on
Disposal of Assets)).
1.3 The quick ratio is also called the "acid test" ratio. It is a measure of a
municipality’s liquidity. The quick ratio looks only at a municipality’s most liquid
assets and divides them by current liabilities. Here is the formula for the quick
ratio:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
The assets considered to be "quick" assets are cash, short term and call
investments, and accounts receivable (all of the current assets on the statement
of financial position except inventory). The quick ratio is an acid test of whether
or not a municipality can meet its obligations if adverse conditions occur.
Generally, quick ratios of 1 + are considered satisfactory as long as the collection
of receivables is not expected to slow.

1.4 Working capital should always be a positive number. It is used by lenders to
evaluate a municipality’s ability to weather hard times. Often, loan agreements
specify a level of working capital that the municipality must maintain. The
current ratio, quick ratio and working capital are all measures of a municipality’s
liquidity.
In general, the higher these ratios are the better for the municipality and the
higher degree of liquidity.
Working Capital = Total Current Assets - Total Current Liabilities
2. Profitability
Profitability is often measured in percentage terms in order to facilitate making

comparisons of the municipality’s financial performance against past year's
performance and against the performance of other municipalities.
When profitability is expressed as a percentage (or ratio), the new figures are
called profit margins. The most common profit margins are all expressed as
percentages of net sales.
Since this ratio only takes into account sales and variable costs (costs of goods
sold), this ratio is a good indicator of the municipality’s efficiency in producing and
distributing its services.
3. Activity
4. Long-term Solvency
The Debt / Worth leverage ratio is an indicator of a municipality’s solvency. It is
a measure of how dependent a municipality is on debt financing (or borrowings)
as compared to community wealth (net assets). It shows how much of a
municipality is owned and how much is owed. The Debt / Worth ratio is
computed as follows:
Debt / Worth = Total Liabilities/Community wealth
Since the statement of financial position present the health of a municipality at a
point in time, valuable information will be lost if municipal managers do not take
the opportunity to compare the progress and trend of the municipality by

regularly evaluating and comparing the statement of financial position of past
time periods and comparing the municipality against other municipalities. The
information that can be gleaned from the preparation and analysis of a
statement of financial position is one financial management tool that may mean
the difference between success and failure.
Assessment Decision

Divider 4
SECTION 4: COLLECTED EVIDENCE
We require you to submit evidence, for the following activities to demonstrate that you are
able to effectively demonstrate the outcomes of the Unit Standards as indicated by this POE.
This module is assessed by one comprehensive individual assignment.
You must make and keep a copy of your individual assignment before submitting your POE
to your provider.
Please note that there is a separate page for each evidence activity
We suggest that you put a divider between each assignment
Please ensure that you have completed all the activities as listed below

Divider 4.1
Question 1 List the minimum components of Annual Financial C / NYC

1.1 Statements as determined in GRAP 1. (5)
Answer Statement of financial position
Statement of financial performance
Statement of changes in net assets
Cash flow statement
A summary of significant accounting policies
Notes to the financial statements
Question Is the following statement true or false? C / NYC

1.2 If false, explain why? (4)
“An irregular expenditure is rare expenditure, which would
not ordinarily be incurred by the municipality in its normal
course of business.”
Answer False.
Explain your Irregular expenditure is defined in section 1 of the MFMA as
Answer follows: “irregular expenditure”, in relation to a municipality
or municipal entity, means— (a) expenditure incurred by a
municipality or municipal entity in. contravention of, or that is
not in accordance with, a requirement of this.
Question List and briefly describe the principles of reporting which C / NYC
1.3 should underlie the preparation and presentation of
financial statements.
List Description
Transparency Transparency is the extent to which investors have
ready access to required financial information about
a company, such as price levels, market depth, and

audited financial reports. Investors also require
transparency with investment firms and funds
surrounding the various fees that'll be charged to
them.
Accountability Accountability requires corporate accountants to be
careful and knowledgeable, as they can be held
legally liable for negligence. An accountant is
responsible for the integrity and accuracy of the
company's financial statements, even if an error or
misstatement was made by others in the
organization.
Stewardship Financial stewardship includes spending resources
wisely. Resources include time, money, people, and
property. Financial consequences are evaluated
before existing activities are changed or eliminated
and new activities begin.
Question List five types of assets one could find on the Statement of C / NYC
1.4 Financial Position of a public sector entity (5)
1 Cash
2 Short term and call investments
3 Accounts receivable
4 Inventory
5 Prepaid expenses
Divider 4.2
Question 2 Using the trial balance of XYZ Municipality, this will be provided C/NYC
as an appendix by the facilitator, draw a statement of financial
performance for XYZ Municipality for the year ended 30 June
2015. Include the comparative figures relating to the 2014
financial year.
(25)

XYZ MUNICIPALITY
STATEMENT OF FINANCIAL PERFORMANCE
For the year ended 30 June 2015
2015
R
Revenue
Revenue from non-exchange transactions

Property Rates 293,684,994
Property Rates/ Penalties Imposed 217,391
Fines 7,614,002
Licences and Permits 9,190,730
Government Grants and Subsidies 234,601,095
Operating Project Grants 114,015,429
Government Grants - Property, Plant & Equipment 119,319,288
Donations & Public Contributions - Property, Plant & Equipment 7,910,511
Gains on Disposal of Property, Plant and Equipment 5,204,437
Revenue from exchange transactions

Service Charges 796,765,226
Rental of Facilities and Equipment 9,172,605
Interest Earned - External Investments 38,481,750
Interest Earned - Outstanding Debtors 28,336,714
Dividends Received -
Other Income 76,929,451
Total Revenue 1,741,443,623
Expenses
Employee Related Costs 513,010,130
Remuneration of Councillors 16,946,659
Bad Debts 21,544,255
Collection Costs 7,600,279
Depreciation 100,403,609
Repairs and Maintenance 84,025,171
Interest Paid 52,571,709
Bulk Purchases 320,422,318
Contracted Services 11,063,294
Grants and Subsidies Paid 3,499,079
General Expenses - Other 459,563,929
Loss on Disposal of Property, Plant and Equipment 246,943
Total Expenses 1,590,897,375
Surplus/ (deficit) for the period 150,546,248
Share of surplus of associate 1,315,706
Total Surplus/ (deficit) for the period 151,861,954

Divider 4.3
ANNEXURE 1
(To use when attempting question 1 of the summative assessment)
ANNEXURE 2
XYZ MUNICIPALITY: TRAILBALANCE AS AT 30 JUNE 2015
DR CR
Property Rates 293 684 994
Property Rates/Penalties Imposed 217 391
Service Charges 796 765 226
Rental of Facilities and Equipment 9 172 605
Interest Earned - External Investments 38 481 750
Interest Earned - Outstanding Debtors 28 336 714
Dividends Received -
Fines 7 614 002
Licences and Permits 9 190 730
Government Grants and Subsidies 234 601 095
Other Income 76 929 451
Operating Project Grants 114 015 429
Government Grants - Property, Plant & 119 319 288
Equipment
Donations & Public Contributions - Property, 7 910 511
Plant & Equipment
Gains on Disposal of Property, Plant and 5 204 437
Equipment
Employee Related Costs 513 010 130
Remuneration of Councillors 16 946 659
Bad Debts 21 544 255
Collection Costs 7 600 279

Depreciation 100 403 609
Repairs and Maintenance 84 025 171
Interest Paid 52 571 709
Bulk Purchases 320 422 318
Contracted Services 11 063 294
Grants and Subsidies Paid 3 499 079
General Expenses – Other 459 563 929
Loss on disposal of Property, Plant and 246 943
Equipment
COID Fund 7 360 372
Capital Replacement Reserve 37 956 124
Capitalisation Reserve -
Government Grant Reserve -
Donations and Public Contributions Reserve -
Self-Insurance Reserve 21 667 079
Revaluation Reserve 189 045 543
Accumulated Surplus 1 043 210 280
Long-Term Liabilities 477 100 415
Non-Current Provisions 63 417 468
Consumer Deposits 23 218 144
Current Provisions 1 489 480
Creditors 228 375 678
Unspent Conditional Grants and Receipts 242 868 365
Current Portion of Long-Term Liabilities 17 540 625
Property, Plant and Equipment 1 463 980 205
Intangible Assets 6 302 574
Agricultural Assets 974 150
Investments 11 826 012
Investment in Associate 6 488 079
Deferred Tax
Long-Term Receivables 429 442

Inventory 24 799 327
Consumer Debtors 265 783 761
Other Debtors 55 572 740
VAT 17 338 831
Current Portion of Long-Term Receivables 584 004
Call Investment Deposits 417 127 528
Cash 1 342 399
Bank 232 562 475
Share of surplus of associate 1 315 706
4 096 008 902 4 096 008 902
Divider 4.3

Question Discuss the concepts of the different types of capital C / NYC
3: maintenance in line with international public sector
accounting standards. (25)
The following international accounting standards relate to capital
maintenance within South African municipalities:
International Financial Reporting Standards (IFRS)

The IFRS framework for the preparation and presentation of financial
statements focuses on two concepts of capital:
Financial capital maintenance: Under this concept, a profit is earned if the
financial amount of the net assets at the end of the period exceeds those at
the beginning of the period. This excludes any distributions to and
contributions from, owners during the period. Financial capital maintenance
can be measured in either nominal monetary units, or units of constant
purchasing power.
Physical capital maintenance: Under this concept, a profit is earned only if
the physical productive capacity (or operating capability) of the undertaking
at the end of the period exceeds the capacity at the beginning of the period,
(after excluding any distributions to, and, contribution from, owners during
the period.
Only inflows of assets, in excess of amounts needed to maintain capital,
may be regarded as profit and as a return on capital.
International Accounting Standards (IAS)

The IAS framework for the preparation and presentation of financial
statements determine that the concept of capital maintenance is concerned
with how an entity defines the capital that it seeks to maintain. It provides
the linkage between the concepts of capital and the concepts of profit
because it provides the point of reference by which profit is measured; it is
a prerequisite for distinguishing between an entity’s return on capital and
its return of capital; only inflows of assets in excess of amounts needed to
maintain capital may be regarded as profit and therefore as a return on

capital. Hence, profit is the residual amount that remains after expenses
(including capital maintenance adjustments, where appropriate) have been
deducted from income. If expenses exceed income the residual amount is a
loss.
Generally Recognized Accounting Practice (GRAP)

The SA GRAP framework for the preparation and presentation of financial
statements (GRAP 000) identifies the two different concepts of capital and
capital maintenance but does not say how these needs should be
established, nor does it consider the possibility that different user groups
may prefer different concepts of capital maintenance.
International Public Sector Accounting Standards (IPSAS)

Unlike the above international accounting standards the International
Public Sector Accounting Standards (IPSAS) does not have a framework for
the preparation and presentation of financial statements and used the
International accounting standards board’s (IASB’s) framework to develop
the IPSAS standards. In December 2015 the International public accountants
standards board (IPASB) published a Public Sector Conceptual Framework.
In this conceptual framework the IPASB announced their indentation to
develop a basic framework for the development of IPSAS standards.
Conceptual Frameworks have been developed and/or are being developed
and improved in many jurisdictions currently represented on the IPSASB. In
some cases those Frameworks have been developed to apply to public
sector entities. In some jurisdictions, Frameworks may also address
concepts of capital and capital maintenance.
Countries that have adopted IPSAS and have developed their own
framework based on the IAS framework and have included the concepts of
capital and capital maintenance has done so in supplementation of IPSAS
and it was not commonly adopted.
Most countries that adopted frameworks and did not include these
concepts had no direct relationship with the concepts but as in the case of

South Africa an indirect approach was followed.
Divider 4.4
Question Using the financial statements for Lepalale Municipality in C / NYC
4: Annexure 2.
Analyse the
Asset management
Debtors management
Liquidity
Revenue management,
Expenditure management
Liability management
Efficiency
Distribution losses
Grant dependency
Based on the analysis, write a report to the Chairperson of the

Finance Committee explaining the municipality’s financial
performance and suggesting solutions where possible. (25)
See Annexure 2 below.

Make sure that you read the document carefully before attempting this
question

LEPHALALE LOCAL MUNICIPALITY
STATEMENT OF FINANCIAL PERFORMANCE
for the year ended 30 June 2014
Note 2014 2013
R R
Restated
Revenue
Revenue from non-exchange transactions

Property rates 17 41,948,076 30,619,908
Government grants and subsidies 22 172,448,134 127,550,803
Public contributions and donations 23.2 1,017,017 4,700,308
Fines 787,211 998,728
Licences and permits 7,424,938 7,326,884
Revenue from exchange transactions

Service charges 18 163,782,489 153,002,935
Rental of facilities and equipment 19 227,210 133,854
Interest earned - external investments 20 5,893,009 6,596,624
Interest earned - outstanding receivables 21 5,148,848 4,647,337
Building fees 784,834 1,072,127
Other income 23.1 1,625,295 1,469,775
Total revenue 401,087,062 338,119,282
Expenses
Employee related costs 24 113,125,937 100,756,157
Remuneration of councillors 25 6,703,699 6,148,860
Bad debts 12,161,044 8,210,987
Collection costs 3,698,954 -
Depreciation and amortisation expense 26 64,513,786 62,422,105
Repairs and maintenance 13,823,407 14,331,228
Finance costs 27 14,390,522 12,252,040
Bulk purchases 28 95,199,469 88,375,456
Grants and subsidies paid 29 1,125,947 1,055,048
Contracted services 13,482,773 13,290,665
General expenses 30 45,353,649 42,965,895
Total expenses 383,579,188 349,808,442
Gain / (loss) on sale of assets 31 - 950,760
Surplus / (deficit) for the period 17,507,874 (10,738,399)

STATEMENT OF FINANCIAL POSITION
Note 2014 2013
R R
ASSETS Restated
Current assets
Cash and cash equivalents 1 79,802,249 116,554,231
Trade and other receivables from exchange transactions 2 76,758,692 77,029,185
Other receivables from non-exchange transactions 3 29,061,183 26,989,752
Inventories 5 1,595,007 1,607,337
Prepayments 6 204,348 1,457,722
Sundry Deposits 6.2 11,542,976 11,542,976
Non-current assets
Investments 7 21,304 15,870
Property, plant and equipment 8 1,094,594,907 1,073,945,958
Intangible assets 9 445,626 190,276
Heritage Assets 77,000 77,000
Total assets 1,294,103,291 1,309,410,306
LIABILITIES
Current liabilities
Trade and other payables from exchange transactions 11 45,696,978 40,354,186
Consumer deposits 12 9,984,611 8,533,521
Current portion of Long Service Awards 14 2,715,773 2,492,543
VAT Payable 13 6,235,458 8,801,949
Unspent conditional grants and receipts 15 2,769,871 39,805,453
Current portion of Long Term Loans 16 1,392,791 2,705,582
Current portion of Finance Lease 40 2,979,799 2,508,604
Non-current liabilities
Long Term Loans 16 4,136,303 5,533,783
Defined benefit plan obligations 41 35,957,255 30,968,309
Finance Lease Liability 40 90,320,262 93,300,061
Total liabilities 202,189,102 235,003,990
Net assets 1,091,914,189 1,074,406,316
NET ASSETS
Reserves - -
Accumulated surplus / (deficit) 1,091,914,189 1,074,406,316
Total net assets

1,091,914,189 1,074,406,316

STATEMENT OF CHANGES IN NET ASSETS
Accumulated
Surplus/(Deficit) Total: Net Assets
Note R R
Balance at 30 June 2012 1,082,685,631 1,082,685,631
Correction of prior period error 37 2,459,084 2,459,084

Restated balance 1,085,144,715 1,085,144,715
Surplus / (deficit) for the period 37 (10,738,399) (10,738,399)
Balance at 30 June 2013 1,074,406,316 1,074,406,316
-
Restated balance 1,074,406,316 1,074,406,316
Surplus / (deficit) for the period 17,507,874 17,507,874
Balance at 30 June 2014 1,091,914,189 1,091,914,189

CASH FLOW STATEMENT
Note 2014 2013
R R
CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 338,956,831 336,036,837
Taxation 48,088,794 47,294,436
Sales of goods and services 148,545,460 143,426,651
Grants 135,412,552 134,018,819
Interest received 5,893,009 6,596,624
Other receipts 1,017,017 4,700,308
Payments 270,660,037 267,686,386
Employee costs 114,617,470 106,613,047
Suppliers 154,916,620 160,018,292
Interest paid - -
Other payments 1,125,947 1,055,048
Net cash flows from operating activities 34 68,296,794 68,350,451
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of fixed assets (PPE) (85,418,073) (42,326,986)
Net cash flows from investing activities (85,418,073) (42,326,986)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings -
Repayment of borrowings (2,691,042) (15,013,929)
Finance costs (14,390,522) (12,252,040)
Repayment of finance lease liability (2,508,604)
Net cash flows from financing activities (19,590,168) (27,265,969)
Net increase / (decrease) in net cash and cash equivalents (36,751,982) (1,242,504)
Net cash and cash equivalents at beginning of period 116,554,231 117,796,736
Net cash and cash equivalents at end of period 35 79,802,249 116,554,231

Do a report as format seen in pg 157
Statement of financial performance
Net assets

Do liquidity ratio etc.
And plug in your values and do interpeetation of results (see what ratios you get and then
compare to ratios in spreadsheet
Subnit AFS up to page 20. And select 5 notes so in total 25 pages
ETHEKWINI MUNICIPALITY
REPORT TO: THE CHAIRPERSON OF THE FINANCE COMMITTEE

REPORT NAME: ETHEKWINI MUNICIPALITY 2022 FINANCIAL
PERFORMANCE
REPORT BY: THERESA MOONSAMY
DATE: 3 OCTOBER 2023
_________________________________________________________________________
PURPOSE/ OBJECTIVE:
The purpose of this report is to present the financial performance of the eThekwini
Municipality based on the analysis of the 2022 Annual Financial Statement in Appendix 1.
1. ANALYSIS OF THE FINANCIAL POSITION

Purpose/ Description Formula Norm 2022 Interpretation of the
of the Ratio Ratio Result
Capital Expenditure to This Ratio is used to Total Capital Expenditure / 10%- 8.16% A ratio less than 10%
Total Expenditure assess the level of Total Expenditure (Total 20% reflects lower spending
Capital Expenditure to Operating Expenditure + by the municipality in
Total Expenditure, Capital Expenditure) × 100 infrastructure and holds
which indicates the potential risks to service
prioritization of delivery.
expenditure towards
current operations
versus future capacity
Asset management
in terms of Municipal
Services.
Impairment of Property, Asset impairment Property, Plant and 0% 0.14% A ratio above 0% reflects
Plant and Equipment, refers to the loss in Equipment + Investment a risk in service delivery
Investment Property and future economic Property + Intangible and therefore corrective
Intangible assets (Carrying benefits or service Assets Impairment/ (Total measures should be
a)
Value) potential of an asset, Property, Plant and implemented.

over and above the Equipment + Investment
systematic recognition Property + Intangible
of the loss of the Assets) x 100
asset’s future economic
benefits or service
potential through
depreciation.

Repairs and Maintenance The Ratio measures the Total Repairs and 8% 6.57% A ratio below the norm is
as a % of Property, Plant level of repairs and Maintenance Expenditure / a reflection that
and Equipment and maintenance to ensure Property, Plant and insufficient monies are
Investment Property adequate maintenance Equipment and Investment being spent on repairs
(Carrying Value) to prevent breakdowns Property (Carrying Value) x and maintenance to the
and interruptions to 100 extent that it could
service delivery. increase impairment of
Repairs and useful assets.
maintenance of
municipal assets is
required to ensure the
continued provision of
services.
Collection Rate The Ratio indicates the Gross Debtors Opening 95% 90.23% this is an indication that
collection rate; i.e. level Balance + Billed Revenue – revenue collection of the
of payments. It Gross Debtors Closing municipality requires
Debtors management
measures increases or Balance - Bad Debts urgent attention and

decreases in Debtors Written Off) / Billed corrective measures
relative to annual billed Revenue x 100 should be implemented.
revenue. In addition, in A municipality with
order to determine the outstanding debtors
real collection rate bad should aim at achieving a
debts written-off is collection rate of more
b)
taken into than 100%.

consideration.

Bad Debts Written-off as % The Ratio compares the Bad Debts Written-off 100% 0.60% Municipality should only
of Provision for Bad Debt value of Bad Debts (Period under review)/ write-off Bad Debts
Written-off on Provision for Bad Debt already provided for and,
Consumer Debtors to (Period under review x 100 if the results are less than
Bad Debts Provided for 100%, it should be ideally
Consumer Debtors to due to the recoverability
ensure that the of debtors.
Provision for Bad Debts
is sufficient.
Net Debtors Days This ratio reflects the ((Gross Debtors - Bad Debt 16 days 88 This indicates that the
collection period. Net Provision) / Billed days Municipality is exposed
Debtor Days refers to Revenue)) × 365 to significant Cash Flow
the average number of risk. This is also an
days required for a indication that the
Municipality or municipality is
Municipal Entity to experiencing challenges
receive payment from in the collection of
its Consumers for outstanding amounts due
bills/invoices issued to to it. In addition, this
them for services. indicates that a
significant amount of
potential cash is tied up
in consumer debtors and
the municipality must
improve its revenue and
cash flow management.

Cash / Cost Coverage Ratio The Ratio indicates the ((Cash and Cash 1-3 1.3 The ratio shows a good
(Excl. Unspent Conditional Municipality's or Equivalents - Unspent Months standing for the
Grants) Municipal Entity’s Conditional Grants - municipality. The
ability to meet at least Overdraft) + Short Term municipality would be
its monthly fixed Investment) / Monthly able to meet its
operating Fixed Operational obligations and the risk of
commitments from Expenditure excluding not meeting monthly
cash and short-term (Depreciation, fixed operational
investment without Amortisation, and expenditure is low
collecting any Provision for Bad Debts,
Liquidity
additional revenue, Impairment and Loss on

during that month. Disposal of Assets)).
The Ratio is adjusted
c)
for Unspent
Conditional Grants as
the cash is not
available for normal
Municipal day-to-day
operational
expenditure but rather
reserved for Grant
related expenditure.

Current Ratio The Ratio is used to Current Assets / Current 1.5 – 1.11 A financial ratio under 1
assess the Liabilities 2.1 suggests that the
Municipality’s or Municipality or Municipal
Municipal Entity’s Entity would be unable to
ability to pay back its pay all its current or
Short-term Liabilities short-term obligations if
(Debt and Payables) they fall due at any
with its Short-term specific point.
Assets (Cash, Inventory,
Receivables).
d) Growth in Number of The ratio measures the (Period under Review's None -0.10% This indicates a decrease
Revenue Active Consumer Accounts actual growth in the Number of Active Debtor in the
Manage Revenue base of the Accounts - Previous
ment Municipality brought Period's Number of Active
about by an increase in Debtor Accounts) /
the Consumer base Previous Period Number of
rather than tariff Active Debtor Accounts x
increases. 100
Revenue Growth (%) = CPI 6.45%
Revenue Growth (%) - = CPI 7.00%
Excluding capital grants

Divider 5
SECTION 5: SUPPORTING EVIDENCE
1. Witness testimonies to authenticate your evidence
2. Witness status list (personal details of all witnesses)
3. Resource list (Acknowledgement of resources used (Internet sites; Textbooks)

WITNESS TESTIMONIES

I ..........................................................................................................................
(Full name and Capacity/Role)
hereby confirm that the evidence /contents of this Portfolio of evidence is the
work of..............................................................................................................
(Full name of the learner)
Signature…………………………………… Date……………………….........

NB: Provide at least 2 witness testimonies and they should be the same name as those in
witness status list
I ..........................................................................................................................
(Full name and Capacity/Role)
hereby confirm that the evidence /contents of this Portfolio of evidence is the
work of..............................................................................................................
(Full name of the learner)
Signature…………………………………… Date……………………….........

NB: Provide at least 2 witness testimonies and they should be the same name as those in
witness status list
WITNESS STATUS LIST

WITNESS STATUS LIST
Full Name Email Address Contact Number

RESOURCE LIST

ADDITIONAL EVIDENCE
Below here, attach any relevant evidence in relation to your POE.
It should be clearly labelled and referenced to a particular activity.
Elements include any relevant collected evidence from the workplace or elsewhere, i.e.
Policies, Frameworks, Circulars and relevant sections of legislation.

FINAL COMMENTS
This may appear to be a lot of work, but it is based on what you should be doing and the
knowledge you should have if you wish to manage your data and reports and understand
your organisation’s IT systems and requirements. Much of this information should be
available. Gather what information you can and then organise it in the manner listed above.
Where you find gaps - address them.
Your POE must be completed and submitted to us by __________________________
If you wish to send us sections as you work on them for comment, please feel free to do so.
We will then be able to assess your progress and give you direction.

Remember, we are here to help you.
COMPLETED KNOWLEDGE ASSIGNMENTS CAN BE:

E-mailed to:
Faxed to:
Posted to:
PORTFOLIO ASSISTANCE OR GENERAL ASSISTANCE

You are welcome to contact us at:
POE’s must be posted to the above address or delivered to:
NB: Please keep copies of all documents in case of loss.

Please indicate if you would like your assessed POE to be returned to you at your
own cost.

Porfolio of Evidence - Guide - US 116363 THERESA

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Portfolio of Evidence

Unit Standard ID: 116363

LEARNER INDUCTION FORM 5

STRUCTURING YOUR PORTFOLIO OF EVIDENCE FILE 9

THE STRUCTURE OF THE ASSESSMENT...........................................................................................9

SECTION 2: UNIT STANDARDS 12

SECTION 3: FORMATIVE ASSIGNMENTS 18

NB: PLEASE READ THE FOLLOWING ANNEXURE 2 CAREFULLY BEFORE ATTEMPTING TO

ANSWER THE QUESTION 39

WITNESS STATUS LIST 53

Learner Registration Form

Unit Standards US 116363: Prepare and analyse municipal financial reports

Learner Induction Form

Facilitator Meluleki Kunene

Programme Municipal Finance Management Programme

Name Theresa Moonsamy ID No. 8 5 0 1 1 5 0 1 3 3 0 8 9

Job Works Area Organisatio eThekwini Municipality

Phone 061 472 Fax: -

EVENT DATE RESOURCES REQUIRED EVIDENCE TO BE GENERATED

Signature of Candidate: ______________________________

Signature of Assessor: ______________________________

Candidate Signature: _______________________ Assessor Signature:

LEARNING PROGRAMME DETAILS

Learning Municipal Finance Management Programme

US Title US 116363: Prepare and analyze municipal financial reports

2. Your highest qualification

3. A Certified Copy of Your ID

4. Your Organisational Profile

6. Your Job Profile

7. Your motivation for completing this programme

Water Quality Officer (7 months) and Projects

Trainee Technician (8 Months) at Ethekwini Municipality

Trainee Metallugist at Anglo Platinum Mines Rustenburg

Available upon request

The city’s 5 main focus priorities are:

4) Fighting crime to create safe living spaces

5) A resilient social solidarity economy

This POE relates to Unit Standard 116363

Prepare and analyse municipal financial reports

All qualifications and unit standards registered on the National

PURPOSE OF THE UNIT STANDARD

People credited with this Unit Standard are able to:

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

UNIT STANDARD RANGE

Specific Outcomes and Assessment Criteria:

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

UNIT STANDARD DEVELOPMENTAL OUTCOME

UNIT STANDARD LINKAGES

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING

UNIT STANDARD CCFO WORKING

UNIT STANDARD CCFO COLLECTING

UNIT STANDARD CCFO COMMUNICATING

UNIT STANDARD CCFO SCIENCE

UNIT STANDARD CCFO DEMONSTRATING

UNIT STANDARD CCFO CONTRIBUTING

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

1. Your formative assignments in this section

2. The completed marking grid

GRAP Objectives Definition X/

General purpose financial statements are dealt with