RATES INCREASE DRIVES UP EZULWINI REVENUE BY 9%

MBABANE – The Ezulwini Municipality’s revenue for the year increased by nine per cent from E17 470 766 to E19 087 443 when compared to the 2016/17 financial year.

Chief Executive Officer Vusi Matsebula explained that major contributing factors included the rates increases which were hiked by five per cent.
Matsebula disclosed that as a result; ‘‘the municipality’s financial position improved from E89 million to E99 million which is by E10 million when compared to the previous financial year.”

It was reported that property plant and equipment also increased from E60 million to E65 million which was equivalent to eight per cent.
“The contribution factor was the upgrade of the Kunene and Lubane Road and the Mantenga Phase Two Roads,” explained Matsebula.

Project

The total project cost for Kunene and Lubane Road was E3 605 939.70 while Mantenga Phase Two Roads contract cost was E3 669 239.81.
The CEO clarified that the financial statements were prepared in line with the Urban Government Act and the Urban Government Financial Regulations as well as in the manner required by the International Financial Reporting Standards (IFRS).

The audit was carried by Kobla Quashie & Associates in accordance with International Standards on auditing. The audited financial statements were approved by the council on September 19, 2018.

Fairly

Matsebula said the auditors issued an unqualified (clean) audit opinion which means that the financial statements present fairly, in all material respects the financial position of the council as at March 31, 2018.

“A risk based approach was used to audit the financial statements,” Matsebula mentioned.
Cash and cash equivalents stood at E24.8 million and saw an increase of 19 per cent (from E19 980 800 to E24 7863 177) when compared to the 2016/17 financial year.

Further, non-current liabilities decreased by 52 per cent (from E8 550 094 to E4 510 161) since the loan of E8 million which was acquired in March 2014 from Old Mutual to be paid up in February 2019. The monthly instalment amount is E198 666.83.

Liabilities

It was stated that current liabilities increased by four per cent (from E5 555 748 to E5 781 101).
Interest from bank increased from E692 154 to E940 720 which was equivalent to 36 per cent due to the increase in cash balances.
Other income decreased by 59 per cent (from E569 121 to E357 507) while direct costs increased by 21 per cent from E3 535 635 to E4. 2 million)as a results of maintenance and improvements of roads.

“Operating expenses slightly increased by seven per cent (from E10 026 258 to E10 735 811) when compared to the 2016/17 financial year. The surplus for the year stood at E6 971 526. This was an increase of 15 per cent (from E6 045 850),” added Matsebula.

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