At the Community Services Committee Meeting yesterday, more overspends in the Capital Budget came to light. Additionally, there was more furniture spending in other departments, some budgeted for, some not. Knysna Municipality has gone on a shopping spree.
In addition to what the massive amount the politicians spent, 5 other departments spent R364 000 on office furniture. As disturbing as that is, it’s of even more concern that they overspent their allocated budgets by R97 000.
Firstly, so that you understand, there are two types of budget in local government, Operating Budget and Capital Budget. ETU.org provides good examples of both:
- “Operating expenditure is the cost of goods and services from which there will be short-term benefit – that is, the services will be used up in less than one year. For example, the payment of staff salaries results in a short-term benefit as salaried employees are paid monthly for one month’s work. Operating income is the amount received for services delivered for a short-term period. For example, ratepayers pay rates monthly or annually as payment to their municipality for receiving municipal services. Examples of operating income are property rates, service charges, investment interest, and traffic fines.”
- “The Capital Budget puts money aside, for planned expenditure on long-term purchases and big investments such as land, buildings, motor vehicles, equipment and office furniture that will be a municipal asset for more than a year – probably for many years to come. A municipality’s capital budget will list the estimated costs of all items of a capital nature such as the construction of roads, buildings and purchase of vehicles that are planned in that budget year.”
Each department has a Capital Budget and the refurbishment of the offices at the Knysna Municipality has fallen under this.
There is till no breakdown showing exactly what the Executive & Council spent on that resulted in them being almost half a million over budget but here is what was spent on furniture in other departments:
- Municipal Manager – R75 264 (R45 264 over budget)
- Corporate Services – R109 252 (R29 252 over budget)
- Planning & Development – R24 733
- Community Services – R113 250 (R29 250 over budget)
- Technical Services – R41 421 (R6579 under budget)
Included in this report from Financial Services was the R458 048 overspend on the Knysna Library, apparently an amount paid to consultants.
The infamous Nissan Jukes for Local Law Enforcement were also there at R294 827 each (an amount accepted even though it wasn’t the lowest tender). There was even an additional R177 400 for an unlisted vehicle.
Are Knysna Municipality and the politicians serving Knysna?