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Availability of the annual accounts – SENS

                            

Availability of annual financial statements

ETHEKWINI METROPOLITAN MUNICIPALITY
JSE alpha code: TMM
(“eThekwini” or “the Municipality”)

AVAILABILITY OF ANNUAL FINANCIAL STATEMENTS

eThekwini hereby advises that it has publicly released its audited annual financial statements for the
year ended 30 June 2021 (‘AFS’). The auditors of eThekwini, Auditor-General South Africa, have issued
an unqualified audit report relating to the AFS.

The AFS contain various restatements for the year ended 30 June 2020 (“Prior Period”) relating to:

1. Rates, electricity and water adjustments as well as interest and penalty reversals in consumer
debtors;
2. Reversal of items incorrectly accrued for, write-off of retentions no longer payable and raising
of accruals erroneously omitted in previous reporting periods;
3. Capitalisation of assets received or completed in prior periods but not accrued for, depreciation
adjustments due to changes in useful lives. Derecognition of sanitation assets;
4. Cost/amortization adjustments and work-in-progress corrections in intangible assets;
5. Adjustments for VAT apportionment, accruals previously not accounted for, adjustments to
debtors and bad debt provisions with Department of Human Settlements;
6. Adjustments to VAT receivable for portions relating to prior year adjustments;
7. Adjustments for duplicated works of art, transfers from property, plant and equipment for
Heritage assets;
8. Adjustments relating to cleanup of unmatched receipts relating to the Prior Period for goods
received vouchers;
9. Adjustments for Durban Point Development Company balance recognised after change in
accounting policy;
10. Rehabilitation cost adjustments due to changes in assumptions and designated areas of two of
the Municipality’s landfill sites;
11. Cost and depreciation adjustments for investment properties, relating to the Prior Period;
12. Recognition of revenue relating to prior periods in respect of grants received from European
Union and Municipal Emergency Housing;
13. Reclassification of eliminating entry relating to grant paid by Municipality to Durban Marine
Theme Park;
14. Inclusion of tax receivable and deferred tax by Durban International Convention Centre;
15. Change in accounting policy affected the long-term receivable amount relating to the Durban
Point Development Company; and
16. Adjustment for historical reconciliation difference between RMS and JDE ledger system for cash
and bank balance.

Full details of the restatements are disclosed in note 45 of the AFS.

In addition, the audit report contains emphasis of matters in relation to:

• Material debt impairments, losses and write offs relating to a provision for bad debts on
consumer debtors, material water losses, material electricity losses and write offs on
irrecoverable debts relating to rates, services, housing and sundry debtors; and
• Significant uncertainty in respect of legal claims lodged against the Municipality.

The AGSA audit opinion is not modified in respect of these matters.

The AGSA further identified material irregularities currently in progress and these matters will be
included in the next year’s audit report.

The AFS of eThekwini are available on the Municipality’s website at
http://www.durban.gov.za/City_Government/Administration/city_manager/performance_manage
ment_unit/reports/Annua%20Reports/Forms/AllItems.aspx and for inspection at 263 Dr Pixley Ka
Seme Street, Durban, 4001 .

31 January 2022

Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 31-01-2022 10:15:00
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