annual report for period july 2017 to june 2018 – the ...annual report for period july 2017 to...

Annual Report for period July 2017 to June 2018 – The District Council of Rivière du Rempart

The District Council of

Rivière du Rempart

Annual Report July 2017 – June 2018


TABLE OF CONTENTS

PAGE

The Chairman’s Statement 1

The Chief Executive’s Statement 2

Vision/Mission/Purpose and Values 3

The District Council of Rivière du Rempart: History & Profile 5 - 7

Membership of Council for July 2017 to June 2018 8 - 18

Membership of Committees for July 2017 to June 2018 19 - 21

Administrative Team for July 2017 to June 2018 22

Roles & Functions of Committees 23 - 25

Remuneration / Allowances of Councillors 26

Corporate Governance 27

Trends and Challenges 28

Operational & Service Delivery Plan 29 - 61

Financial Position and Performance 62-112


1

THE CHAIRMAN’S STATEMENT

Local authorities have always been key partners

of government in the development process. As

such the District Council of Rivière du Rempart

focused on the measures announced in

government budget 2017-2018 and the strategic

plan 2017-2018 to 2019/2020.

Improvement to basic existing infrastructures and

construction of new infrastructures such as roads

and drains were among Council’s priorities for

2017/2018. The construction and the upgrading

of amenities were also a priority for the Council.

The Council benefited in April 2018 from an excellent opportunity: a special grant of Rs13.6 million

for implementation of preponed projects. This grant had been most useful for

construction/upgrading works and for purchase of much needed equipment/furniture/fittings. In

fact, Council considered this grant as a special gift in the context of a most important event which

took place during 2017-2018: the 50th anniversary of the independence of Mauritius.

Regarding infrastructural projects (roads, drains, absorption drains, lighting and other amenities),

there has been an investment of around Rs56million in 2017/2018.

There was also a close monitoring of some major projects whose procedures had been initiated

as well as those nearing completion, among which a new Market Fair/Traffic Centre at Goodlands,

the Multipurpose Complex at Petit Raffray and the Day Care Centre at Roches Noires.

As for previous financial years, the execution of projects for development was therefore of prime

concern for the Council in 2017/2018. It has been possible for the Council to undertake

development projects with funds provided by government under the Local Development Project

Scheme and also projects funded by the National Development Unit.

Prembhoodas ELLAYAH


2

THE CHIEF EXECUTIVE’S STATEMENT

Local authorities are usually defined as

organisations where the elected members have

the responsibility of setting policies and the Chief

Executives have to execute their policies.

Policies for the activities of the District Council in

2017/2018 were based on the measures

announced in the government budget. The

emphasis was on upgrading and construction of

infrastructures and amenities.

The growing importance of the District of Rivière du Rempart cannot be denied in view of the rapid

development taking place in this north eastern part of Mauritius. The prime locations for the tourist

sector and real estate expansion with luxury villas/apartments have changed the landscape and

needs of the district bringing with them increasing services to be provided.

As Chief Executive, I am satisfied that my administrative staff had put in much effort for the

implementation of infrastructural projects and for the provision of necessary services.

Regarding projects, a special grant of Rs13.6 million was allocated to the Council for the

implementation of preponed projects for which claims had to be submitted before 15 June 2018.

Confirmation for the grant was obtained on 26 April 2018. In two months’ time, that is by June

2018, Council had used some 82% of this special grant after going through relevant procedures.

On the issue of projects, the collaboration of the Mauritius Telecom Foundation has to be

mentioned. A Memorandum of Understanding was signed by the Council and the Mauritius

Telecom Foundation on 21 May 2018 for the project of a Multi Use Games Area (MUGA) at

Goodlands.

Besides the execution of projects, measures were taken to improve the day to day administration.

A very important measure was the introduction of the Electronic Attendance System as from 19

February 2018 for all employees including site workers.


3

VISION/MISSION/PURPOSE & VALUES

As a local authority, the District Council of Rivière du Rempart has the responsibility to

establish and protect the purpose as well as the core values and principles which govern

its activities and which should aim at promoting the social, economic and cultural well-

being of the local community. The Council is a corporate body following the rules and

regulations pertaining to its purpose and its principles.

OUR MISSION

Efficient and effective services to meet customer expectation for continuous development

in the region under our jurisdiction and for improvement of the quality of life of its

inhabitants.

OUR VISION

We aim at:

making our organization stronger day by day through the use of all existing

resources for the improvement of services and showcasing our commitment to the

welfare of our local community;

the recognition of our region as being peaceful, sustainable, progressive and

prosperous.

developing our region where ancestral heritage and modernity blend harmoniously.


4

OUR PURPOSE & VALUES

Our purpose is to:

establish the necessary environment for high standards in the delivery of services;

encourage the culture of teamwork and community participation;

identify ways and means to increase our resources so as to achieve sustainable

development goals.

encourage partnership with various sectors for a common goal: prosperous future

for the region.

OUR VALUES

Our purpose is founded on the values of :

service to the community

integrity

transparency

fairness

courtesy

excellence


5

The District Council of Rivière du Rempart

HISTORY & PROFILE

Located in the north-east part of

Mauritius, the District of Rivière du

Rempart has an area of 147.6 km²

(57.0 sqm).

Besides a large extent of

agricultural land, the district has

some of the most attractive tourist

facilities, specially in the coastal

villages of Grand Baie, Cap

Malheureux, Pereybere and Grand Gaube.

The District of Rivière du Rempart is administered by the District Council of Rivière du

Rempart.

Since December 1951, the Districts of Rivière du Rempart and Pamplemousses were

under the jurisdiction of one corporate body: the Pamplemousses/Rivière du Rempart

District Council. The Local Government Act 2011 made provision for each district in

Mauritius to be administered by a local authority. Hence the establishment of the District

Council of Rivière du Rempart as from January 2013.


6

Rivière du Rempart District has a population of some 108,000 (population density of

730/km2) and is sub-divided into 19 Villages as listed below:

There are some assets of the national heritage of Mauritius which are found within

this district:

Monument commemorating the wreck of Le Saint Géran (located in Poudre D’Or

Village)

Old Windmill (Petit Paquet Village)

Transit of the Planet Venus Pillar ( St Antoine)

Windmill Tower of Belle Rive (Cap Malheureux)

The Surviving Stone Structures of the Sugar Factory and Chimney

of Antoinette Sugar Estate (Phooliyar)

La Cave Madame also known as Grande Cave de Roches Noires

S.N VILLAGES S.N VILLAGES

1

AMAURY

11

PETIT RAFFRAY

2

AMITIE/GOKHOOLA

12

PITON

3

BELLE VUE MAUREL

13

PLAINE DES ROCHES

4

CAP MALHEUREUX

14

POUDRE D'OR HAMLET

5

COTTAGE

15

POUDRE D'OR VILLAGE

6

ESPERANCE TREBUCHET

16

RIVIERE DU REMPART

7

GOODLANDS

17

ROCHES NOIRES

8

GRAND BAIE

18

ROCHE TERRE

9

GRAND GAUBE

19

THE VALE

10

MAPOU


7

The District Council’s Administrative Headquarters in Mapou

The building, located in the village of Mapou, formerly accomodated the offices of the

Pamplemousses/Rivière du Rempart District Council. Mapou is considered as the central

point of these two districts put together.

In the 1940s, during colonial administration, the site had accomodated the office of the

“Commissaire civil nord”. Mapou had a glorious past being given that there had been in

this village a very important railway station to serve the railway network in the northern

part of Mauritius – the Northern Line.

Furthermore, in 1929, the judiciary office in Poudre D’Or was transferred to Mapou. The

presence of this office contributed greatly in making this village a very lively place until the

closure of the office a few years back.

Mapou had also been a major place for the sugar industry with the Domaine de

Labourdonnais, presently a much visited place by locals and tourists.

Mapou draws its name from a local tree – the Vitis Mappia – which had once grown

abundantly in the village.


8

The District Council of Rivière du Rempart

List of District Councillors in office during period July 2017 to June 2018

DISTRICT COUNCILLOR REPRESENTATIVE OF VILLAGE

ELLAYAH Prembhoodas - Chairman D/C COTTAGE

KOOBARAWA Deokumar - Vice Chairman GOODLANDS

AHOTAR Geeanlall POUDRE D'OR HAMLET

APPADU Ashish Rao RIVIERE DU REMPART

ARJOON Bhooneshwarsing ROCHES NOIRES

ASYRIGADOO Ramoortee AMITIE/GOKHOOLA

BOYRAMBOLI Teeruthrajsingh RIVIERE DU REMPART

BUGLOO Nizam The VALE

CHRISTOPHE Joseph Jims CAP MALHEUREUX

CHUCKUN Goorooduth PETIT RAFFRAY

FANFAN James Jacques GRAND GAUBE

FULLEE Somdath ROCHE TERRE

GOORYE Basant GRAND BAIE

KAHNYE Sama (Mrs) GOODLANDS

MOGUN Dharmendra GRAND BAIE

MOHES Bizlall MAPOU

NEETHALIA Kaveetah AMAURY

RAGNUTH Kevin Ragoonath PITON

RAMDUTH Jasveer POUDRE D'OR VILLAGE

RAMSURN Doopen PLAINES DES ROCHES

SEETAH Niteen Bose BELLE VUE MAUREL

SOHUN Roshan Kumar ESPERANCE TREBUCHET


9

THE DISTRICT COUNCIL OF RIVIERE DU REMPART

LIST OF VILLAGE COUNCILLORS

The Village Council of Poudre D’Or

MEMBERS

1 BEERBUL Deenoo (Chairperson)

2 NUNKOO Radha (Vice Chairperson)

3 RAMDUTH Jasveer (District Councillor)

4 DOYAL Kalowtee

5 MOODOOSOODUN Jayshree

6 BOYJOONAUTH Pravinduth -

7 PEEROO Navin

8 NOBIN Khemraj

9 BHANTOOA Lutchmee Devi

The Village Council of Goodlands

MEMBERS

1 ELLAPEN Soomeshwaree (Chairperson)

2 LAFRANCE Louis Andre (Vice-Chairperson)

3 KOOBARAWA Deokumar (District Councillor)

4 DAMRI Rampersad

5 BAHADOOROodaye, MSK

6 KANHAYE Sama

7 POONITH Ramchurn

8 SALLICK Sunwantee

9 TORABALLY Sheik Bashir


10

The Village Council of Grand Baie

MEMBERS

1 Boojhawoonah Nasser (Chairperson)

2 Nujjoo Mohammad Ally (vice-Chairperson)

3 Goorye Basant (District Councillor)

4 Mogun Dharmendra (District Councillor)

5 Nujjoo Fahrad Hassam

6 Brasse Yves

7 Seburuth Ajaysingh

8 Mooruth Mokchada Ramdowar

9 Mudhoo Marie Liseby

The Village Council of Roches Noires

MEMBERS

1 Aukhajan Koosmowtee (Chairperson)

2 Santuck Prithiviraj (vice-Chairperson)

3 Bhooneshwarsing Arjoon (District Councillor)

4 Sookeera Ajay

5 Fokeera Beesamsing

6 Lall Gita

7 Sunyasi Latchanah

8 Yarroo Twaleboodeen Khan

9 Preetyveeraz SEETHANNA


11

The Village Council of Petit Raffray

MEMBERS

1 DOOKARUN Rani (Chairperson)

2 BHOLAH Moonesh (Vice-Chairperson)

3 CHUCKUN Goorooduth (District Councillor)

4 BEEHARRY Sattiajeet

5 HEERAH Sunil

6 JEEWOOTH Chandrakumar

7 SEENARAIN Gyaneswar

8 MUTTY Dipchand

9 GOBIND Sookraz

The Village Council of Plaines des Roches

MEMBERS

1 SHIBCHURN Tarkessowar (Chairperson)

2 SOOKNAH Bijay (Vice-Chairperson)

3 RAMSURN Doopen (District Councillor)

4 RAMCHURN Narendra Sharma

5 BANCHARAM Kaviraj

6 BEEBEEJAUN Muhammad Irshaad

7 BACHOO Priamvada

8 SAUHOBOO Noorannee

9 MEEAJUN Taleyboodeen


12

The Village Council of Roche Terre

MEMBERS

1 BOUDEUSE Louis John (Chairperson)

2 GREEDARY Hoomesh Kumar (Vice-Chairperson)

3 FULLEE Somdath (District Councillor)

4 BOODHOO Jaynarain

5 BOOJHAWON Kavita

6 BUCHA Sarita Devi

7 DOOKHIT Kajal

8 Daby Beedeeanand

9 VIRAPIN Goinsamy

The Village Council of Grand Gaube

MEMBERS

1 MARIE Marie Georgette Sylvaine (Chairperson)

2 DAVID Louis Pariche Even (Vice-Chairperson)

3 FANFAN James Jacques (District Councillor)

4 GUIRANDELLE Daniella

5 BOODHUN Bagmaneea

6 MARIE Curdy

7 RAMKISSOON Teerthraj

8 RATNA Michel

9 SUNNIA Lavinsingh


13

The Village Council of Cap Malheureux

MEMBERS

1 NURSIMLOO Hegambaram (Chairperson)

2 MALEPA Marie Jenna Geraldine (Vice-Chairperson)

3 CHRISTOPHE Joseph Jims (District Councillor)

4 DAVID Louis Gervais Claudio

5 BUNDHOO Premduth

6 RAMACHUNDREN Vishnu

7 MOORUT Rajput

8 GAUNGOO Sharmila Devi

9 THAGALEE Bijaylall

The Village Council of Amaury

MEMBERS

1 SUBDAR Mohammad Musin (Chairperson)

2 NEETHALIA Kaveetah (District Councillor)

3 BUNDHUN Rajeewoo Kumar

4 KANHYE Lutchmeeduth

5 Humath Krishnanand

6 PENGWAH Hazrat Osman

7 RUGHOOBUR Ajay Kumar

8 BAHADOOR Shayat


14

The Village Council of Vale

MEMBERS

1 Damree Alladeen (Chairperson)

2 MURTHEN Danonvedee (Mrs) (Vice Chairperson)

3 BUGLOO Nizam (District Councillor)

4 BHUGWON Kiran (Mrs)

5 BUKUS Amjad

6 GENGADU Satishraj

7 MODARBACCUS Bahim

8 SEETHAMAH Faizal

9 SOOBEDAR-KAUDEER Samirah (Mrs)

The Village Council of Amitié/Gokhoola

MEMBERS

1 CONHYE Uma Devi (Chairperson)

2 HYDER Ratan (Vice Chairperson)

3 ASYRIGADOO Ramoortee (District Councillor)

4 DOORGA Seenath

5 DOORGAH Sunilduth

6 JEEBUN Dharmaraj

7 POLOODOO Tyagarajah

8 SHAMLALL Kreshnaduth

9 THUMADOO Cadress


15

The Village Council of Belle Vue Maurel

MEMBERS

1 VEERANAH Prabhakar ( Chairperson)

2 MUTTY Abhinash (Vice Chairperson)

3 SEETAH Niteen Bose (District Councillor)

4 BISSESSUR Aswanvir

5 BOYGAH Devinasingh (Mrs)

6 GUNGADIN Aarti (Mrs)

7 HOSANEE Reshad

8 SEETHIAH Sommanah

9 VURDAPEN Satiaven

The Village Council of Cottage

MEMBERS

1 MUNGUR Sunil Dutt (Chairperson)

2 SABABADY Pillay Adarsh Varma (Vice Chairperson)

3 ELLAYAH Prembhoodas ( District Councillor)

4 CHENGAPPA-NAIDU Anandasamy

5 JUMEEA Rajeev

6 KOMAR Iswaraj

7 MUNGUR Swattantranand

8 RAMKISSEN Iswarlall

9 MURUGUPPA Govinden


16

The Village Council of Esperance Trebuchet

MEMBERS

1 RANJAYA Ajay (Chairperson)

2 BANCHARAM Sattiajeet (Vice Chairperson)

3 SOHUN Roshan Kumar (District Councillor)

4 AWOOTAR Baboo Roopesh Kumarsingh

5 CHUMMUN Avinash Sharma

6 GOUR Maudoo

7 MUNGROO Kavita (Mrs)

8 POONITH Sooresh

9 POONITH Vishal

The Village Council of Mapou

MEMBERS

1 PROSPER Jean Mark Laval (Chairperson)

2 VEERARAGHOVEN Kovilan (Vice Chairperson)

3 MOHES Bizlall (District Councillor)

4 BANDOO Oumesh

5 BAULAH Sooriaduth

6 CATHERINE Marie Antoinette Melinda

7 CHOOLLUM Hurrychand

8 DORO Marie Therese

9 SAKALDEEP Aanjoo


17

The Village Council of Piton

MEMBERS

1 RAMKURRUN Ravi (Chairperson)

2 SALLICK Suttiawun (Vice Chairperson)

3 RAGNUTH Kevin Ragoonath (District Councillor)

4 CHETTY Nallan

5 BHURDOOL Deepa (Mrs)

6 OTHENDEE Magalutchmee (Mrs)

7 SHAMLAUL Oodesh

8 DOWLUT Cassamjee

9 NOBAB Ajay

The Village Council of Poudre D’or Hamlet

MEMBERS

1 SOHATEE Praveen (Chairperson)

2 RUGHOO Indradeo (Vice Chairperson)

3 AHOTAR Geeanlall (District Council)

4 RAMTOHUL Gaytree

5 JHAURRY Nundraj

6 BALLIAH Rahnee

7 APPADOO Vishnoo

8 RAMPARE Sadhna

9 BEEHARRY Ravindranathsing


18

The Village Council of Rivière Du Rempart

MEMBERS

1 GONOWREE Vikash (Chairperson)

2 KHANDHAI Deoduth (Vice Chairperson)

3 APPADU Ashish Rao (District Councillor)

4 BOYRAMBOLI Teeruthrajsingh (District Councillor)

5 BHOGUN Leckraj Vinay

6 GOBIN Dhanjaysing

7 JAITOO Sati Savitree (Mrs)

8 MANGATHA Dharmanand

9 RAMNARAIN BHOGUN Vanesha (Mrs)


19

THE DISTRICT COUNCIL OF RIVIERE DU REMPART

List of Members of Committees in office during period July 2017 to June 2018

Sn Public Health Committee

1

ELLAYAH Prembhoodas (Chairman)

2

KOOBARAWA Deokumar

3

APPADU Ashish Rao

4

ARJOON Bhooneshwarsing

5

BOYRAMBOLI Teeruthrajsingh

6

FULLEE Somdath

7

KANHYE Sama (Mrs)

8

MOHES Bizlall

9

NEETHALIA Kaveetah (Mrs)

10

RAMDUTH Jasveer

11

RAMSURN Doopen

Sn Public Infrastructure Committee

1


2

KOOBARAWA Deokumar

3

AHOTAR Geeanlall

4

APPADU Ashish Rao

5


6

ASYRIGADOO Ramoortee

7

BUGLOO Nizam

8

MOGUN Dharmendra

9

RAMDUTH Jasveer

10

RAGNUTH Kevin Ragoonath

11

RAMSURN Doopen


20

Sn Welfare Committee

1


2

KOOBARAWA Deokumar

3

AHOTAR Geeanlall

4

APPADU Ashish Rao

5


6


7

BUGLOO Nizam

8


9

RAGNUTH Kevin Ragoonath

10

RAMDUTH Jasveer

11

RAMSURN Doopen

Sn Permits and Business Monitoring Committee

1


2

APPADU Ashish Rao - From July to December 2017 and as from

14 March 2017 to June 2018

3


4

BUGLOO Nizam

5

RAMDUTH Jasveer - From December 2017 to 14 March 2017

6

RAMSURN Doopen

7

Chief Executive

8

Head, Land Use and Planning Department

9

Chief Health Inspector

10

Head, Public Infrastructure Department


21

Sn Executive Committee

1


2

KOOBARAWA Deokumar

3


4

BUGLOO Nizam

5

FANFAN James Jacques

6

MOHES Bizlall - From July to December 2017

7


8

RAMSURN Doopen - From January to June 2018


22

ADMINISTRATIVE TEAM

For Period July 2017 to June 2018

Administration Department

The Chief Executive Mr Dheeraj GOPAUL

Deputy Chief Executive

Ag. Deputy Chief Executive

Deputy Chief Executive

Mr Radhamohun BEEHARRY up to 12.07.2017

Mr Shardhanand BEEHUSPOTEEA -

(13.07.2017 up to 11.02.2018)

Miss Laneetee MOHEEPUT as from 12.02.18

Assistant Chief Executive Mr Shardhanand BEEHUSPOTEEA up to 04.02.18

Mr Thigupta SOOKUN as from 04.07.2017

Mrs Ashweenta AUMEER-BABOOA as from

05.02.18

Human Resource Management Officer Mrs Anita CHUMROO

IT Officer/Systems Administrator Mr Irfaan HUSSEIN BHUGALOO

Safety & Health Officer /Senior Safety &

Health Officer

MrsVidya KARUPUDAYYAN

Human Resource Officer Miss Luxmi Devi KUREEMUN

Finance Department

Financial Controller Mr Randipsingh BULDEWO

Accountant /Senior Accountant Mrs Meenakshi BOOKAURAM

SEEBUNDHUN up to 05.04.2018

Public Infrastructure Department

Head, Public Infrastructure Department Mr Parvesh BALLOO up to 06.08.2017

Mr Sobhanand Jeetun as from 07.08.2017

Civil Engineer Mr Tarachand JUGGOO

Chief Inspector of Works Mr. Rajkumar DEENOO

Land Use & Planning Department

Head, Land Use And Planning Department Mr Yassim HOSENALLY

Planning and Development Officer Mrs Dayawantee SIBURUTH

Public Health Department

Chief Health Inspector Mr Navindranath LANGUR

Principal Health Inspector Mr Ravichand MADHUB

Welfare Department

Senior Welfare Officer Mrs Sonia Devi PADAYACHY- COOPAMAH


23

ROLES & FUNCTIONS OF COMMITTEES

The Local Government Act 2011 provides for the District of Rivière du Rempart to be administered

by an elected District Council.

For period July 2017 to June 2018, the Council had held its meeting at least every month, as

required by law. Council met on 11 occasions for ordinary meetings.

The following other statutory committees were set up as stipulated by law and meetings thereof

were held.

These committees are as follows:

- Executive Committee

- Procurement Committee

- Permits and Business Monitoring Committee

- Safety and Health Committee

Executive Committee

The Executive Committee is constituted of:

the Chairman

the Vice Chairman

5 other Council Members, appointed by the Chairman

The Executive Committee is chaired by the District Council’s Chairperson.

Following amendments brought to the Finance Act and subsequently to the Local Government Act

2011, as from September 2016, the Executive Committee had the responsibility for approval of

procurement of goods and services.

The Executive Committee met for 20 sittings from July 2017 to June 2018.

Procurement Committee

Procurement of goods and services was effected by the Council in accordance with provisions of

the Public Procurement Act.

The Procurement Committee determines all issues pertaining to the procurement of goods and

services and, as required by law, is constituted of:

- The Chief Executive or the Deputy Chief Executive as the Chairperson of the Committee

- The Financial Controller or his Deputy

- One other Head of Department


24

Where the total value of the procurement exceeds Rs 100, 000, the Procurement Committee sends

its recommendation to the Executive Committee for approval.

The Procurement Committee met for 43 meetings from July 2017 to June 2018.

Permits and Business Monitoring Committee (PBMC)

With amendments brought to the Local Government Act 2011 in September 2016, the membership

of the PBMC was constituted anew as prescribed by law:

- Chairperson of the Council (in the Chair)

- Four Council members appointed by the Chairperson of the District Council

- Chief Executive

- Head, Land Use and Planning Department

- Chief Health Inspector and

- Head, Public Infrastructure Department

The Chief Executive and the Heads of Department, in their absence, were represented by an officer

formally delegated to represent them.

The Permits and Business Monitoring Committee met for 51 sittings from July 2017 to June 2018.

Safety and Health Committee

The Safety and Health Committees are held during normal working hours at least once every 2

months in accordance with Section 21 of the Occupational Safety and Health Act, 2005.

For the year 2017/2018, the Safety and Health Committee met on 8 occasions.

Other Committees The Council is empowered by the Local Government Act 2011 to set up working committees with

a view to monitor the smooth running of matters pertaining to its different departments.

The Council had thus set up these Committees as follows:

1. Welfare Committee

2. Public Health Committee

3. Public Infrastructure Committee

As these committees do not have delegated powers, their recommendations were submitted to the

Council for approval.

From July 2017 to June 2018, the above three committees had a membership of eleven

councillors.


25

Welfare Committee

Submitted recommendations regarding the following issues:

a. Public libraries, technical courses, pre-primary schools, sewing and handicraft classes b. Maintenance of sport infrastructures, equipment, gardens and public places. c. Organization of sports, social, cultural and welfare activities as well as national

competitions. d. Any other matter pertaining to the Welfare Department.

The Welfare Committee had 12 meetings during the mentioned period.

Public Health Committee


(i) Scavenging programme for the District Council area; identification of dumping grounds;

cleaning of barelands; labour/equipment required for services to be provided by the

department.

(ii) Upkeep of cemeteries and cremation grounds

(iii) Management of markets, fairs, hawkers, public toilets and places of public

entertainment;

(iv) Any other matter pertaining to the Public Health Department.

The Public Health Committee had 11 meetings during the mentioned period.

Public Infrastructure Committee


(a) General maintenance programme - buildings, kiosks, bus-shelters, roads,

bridges, drains, street and village name plates, benches etc. (b) Programme of maintenance of plants and equipments - vehicles. (c) Provision and maintenance of street lighting.

(d) Provision and maintenance of public fountains, septic tank, absorption pits etc.

(e) Implementation of infrastructural projects.

(f) Any other matter concerning Public Infrastructure Department.

The Public Infrastructure Committee had 11 meetings during the mentioned period.


26

REMUNERATION/

ALLOWANCES OF COUNCILLORS

Remuneration/Allowance, as per the Local Government (Remuneration of Councillor)

(Amendment) Regulation 2016, were paid as follows:

SN FUNCTION MONTHLY

REMUNERATION

MONTHLY CELLULAR

ALLOWANCE

MONTHLY TRANSPORT

MILEAGE

1. Chairperson of District Council

Rs. 39,575/- Rs. 2,000

Rs. 10.30 Rate/KM

2. Vice-Chairperson of District Council

Rs. 21,475/- Rs. 1,500

3. District Councillor Rs. 11,970/- Rs. 500

4. Member of Executive Committee

Rs.14,050/- Rs. 1,000

5.

Permits and Business Monitoring Committee: Chairperson Member

Rs. 1,995/- per sitting Rs 890/- per sitting

6. Chairperson of Village Council

Rs. 11,970/-

7. Vice-Chairperson of Village Council

Rs.6,195/-

8. Village Councillor Rs. 2,695/-


27

CORPORATE GOVERNANCE

As for previous financial years, the Council had applied, for 2017-2018, the core principles

of corporate governance in all its activities, that is:

responsibility

accountability

fairness

transparency

Relevant procedures were followed, namely:

requests, works, projects referred to Council for examination and decisions.

decisions of the Council were in conformity with appropriate legislations.

funds allocated in line with provisions of the performance based budget.

internal audit control for implementation of Council’s decisions.

ex-post control for Building and Land Use permit issued by Council.

For the sake of transparency, all the meetings of the Council were held in public during the

above mentioned period. Press representatives were also invited to these meetings. The

provisions of the Local Government Act were strictly adhered to with regards to Council’s

meetings procedures. Notices of all the meetings of the Council were affixed in a

conspicuous place, at the seat of the District Council Administrative Office at least two

days before the meeting.


28

TRENDS & CHALLENGES

The trend, as from the financial period of July 2016 – June 2017, had been an overall

development for the entire country. The trend continued in July 2017 - June 2018 with the

focus on massive investment in infrastructural development.

Government budgetary measures had announced the first three year strategic plan

2017/2018 to 2019/2020 laying emphasis on building infrastructure and providing

amenities which would meet future needs.

For 2017/2018 all local authorities had beneficiated from a capital grant of Rs500 million

for undertaking projects aimed at improving infrastructure in their respective localities.

The trend for this Council was therefore to prioritise projects related to construction/

reconstruction of roads/drains, street lighting, social amenities. As for previous financial

years, there were projects undertaken by the National Development Unit and taken over

by the Council.

The challenges came from the impact of climate changes. In consideration of these

changes and its impact on the environment as well as on the inhabitants of the many

villages within the District of Rivière du Rempart, priority was also given to maintenance of

infrastructure, specially repairs and cleaning of drains/absorption drains.

Execution of necessary works and provision of services to which inhabitants are entitled

were done with Council’s existing resources. This in itself was a challenge.

Furthermore, the special grant of Rs13.6 million granted by government for preponed

projects on 26 April 2018, to be completed by 25 June 2018, was another challenge which

Council took up.


29

Operational

&

Service Delivery

Plan


30

OPERATIONAL & SERVICE DELIVERY PLAN The following departments set up by the Council were in operation to “perform and discharge the

functions and exercise the powers under the Local Government Act and any other enactment

relating to local authorities” :

the Administration Department

the Welfare Department

the Land Use and Planning Department

the Public Infrastructure Department

the Public Health Department

the Finance Department

The 19 Village Councils also had administered their respective villages and organised activities as

and when required.

For proper planning, organising, control, monitoring and communication of activities, both the

District Council and the Village Councils had to operate within the budgetary provision made for

2017/2018.


31

THE ADMINISTRATION

Central Registry

Human Resource Section

Procurement Section

Internal Audit Section

IT Section

Occupational Health and Safety Section


32

THE ADMINISTRATION DEPARTMENT

The department is the focal point in any local authority as it is the link between the elected body – the Council - and the other departments.

Providing assistance to the Council for the implementation of its policies and execution of its

projects, the Administration Department ensures that all other departments are performing their

operations as stipulated in law.

For efficient organizational development and service delivery, there are some key sectors

functioning under the department, namely Central Registry, Procurement Section, IT Section,

Internal Audit Section, Occupational Health and Safety Section

Central Registry

The process of restructuring the Central Registry started in January 2018 with the following:

Restyling the system of referencing for incoming/outgoing correspondence and also the filing system.

Creation of database for

New files

Legal cases

Meetings/workshops etc. For period July 2017 to June 2018, the Central Registry had to process an average of 9000 correspondences.

Human Resource Section This section has the responsibility of managing the work force of the Council which was constituted

of 94 staff members and 276 manual workers from July 2017 to June 2018

Appointment : 12

Promotion : 1

Recruitment : 34

Retirement : 10

Dismissal : 1


33

Procurement Section In line with relevant procedures, recommendations for procurement of goods and services and

works in 2017/2018 were made by the Procurement Committee. For goods and services

exceeding Rs100,000, the recommendations of the Procurement Committee were referred to the

Executive Committees. Purchase orders were drawn by the Procurement Section and service

orders were drawn by the departments concerned. Following receipts of goods and certification

of original invoice, the claims were audited and then despatched to the Finance Department for

payments.

Procurement of goods and services is an important exercise in the implementation of projects.

The table below is an overview of the contracts awarded for period July 2017 to June 2018:-

SN

PROJECT

CONTRACT VALUE

(Rs)

1.

Construction of New Roads

Rate Basis

2.

Supply & Fixing of Wooden Poles & Cabling Works for Street

Lighting

Rate Basis

3.

Construction of Drains

Rate Basis

4.

Construction of Absorption Drains

Rate Basis

5.

Supply of LED Lanterns

Rate Basis

6.

Lighting of Football Ground at Poudre D’or Village

2,472,500.00

7.

Construction of Enclosure Wall (including Gate) at Petit Raffray

Multipurpose Complex

2,074,025.00

8.

Construction of Enclosure Wall at Roches Noires Day Care Centre

704,375.00

9.

Additional Works (Construction of Septic Tank) at Roches Noires

Day Care Centre

110,975.00

10.

Renovation of Toilet Block at Poudre D’Or Village

29,728.00

11.

Renovation Works at Grand Gaube Village Hall

87,790.00


34

12.

Painting Works at Cottage Village Hall

42,000.00

13.

Renovation Works at Rivière Du Rempart Village Hall

55,000.00

14.

Supply & fixing of Aluminium Openings – Archive Building, DC

Head Quarters

300,000.00

15.

Renovation Works at L’Esperance Trebuchet Village Hall

48,000.00

16.

Renovation Works at Poudre D’Or Hamlet Village Hall

56,235.00

17.

Reinforcement of Burglar Proof at Cap Malheureux Village Hall

39,000.00

18.

Supply & fixing of Metal Gate at DC Headquarters, Mapou

79,000.00

IT Section

In line with the E-Governance vision of the government, the Online Application for Building

and Land Use Permit, online complaints submission as well as the ePayment for Trade

Fees have been introduced so as to offer fast, effective and efficient service delivery to the

public and business community at large.

Moreover the Ministry of Local Government and Outer Islands developed and deployed

an online platform for the electronic submission of clearances to Public Utilities, namely

Central Electricity Board, Central Water Authority and Waste Water Management

Authority. The new system caters for the collection of fees for CEB, CWA and WMA by

Local Authorities.

As for previous years, with the computerization of all activities, the IT Section had to cater

for matters pertaining to the introduction, development, deployment, maintenance and

upgrading of Information Technology Infrastructures and was also called upon to play a

vital role in advising the Council on the latest developments in the field.

IT equipment i.e. Servers, PCs, laptops, etc. were upgraded to the latest technology to

perform efficiently on a daily basis for the staff members.


35

Furthermore, the Council had implemented security policies to ensure that data is

safeguarded within its premises including access rights granted only to authorized

personnel, password expiry and complexity policy implemented and backup of digital

information.

Internal Audit Section

The Internal Audit Section at the District Council of Rivière du Rempart is under the

responsibility of the Administration Department and headed by a Principal Internal Control

Officer, assisted by an Internal Control Officer / Senior Internal Control Officer.

This section is a vital element of good governance and sound financial management of the

Council’s activities. It ensures that appropriate procedures are being followed and

practices are operating efficiently to achieve the objectives set, with a view to preventing

fraud, malpractice, extravagance and waste.

During the financial year 2017/2018, the duties pertaining to this Section were allocated to

Audit Staff in order to meet the Council’s aims, objectives and targets. Despite the limited

resources available in terms of staffing, it is worth mentioning that the overall objectives of

this Section were achieved in the most efficient and effective manner.

Audit Work completed for the Financial Year 2017/2018.

Cash and cheque collection/deposit to bank.

Examinations of all payment vouchers for both District and Village Councils.

Verification of overtime/allowances/bus fare/deductions.

Mileage allowance claimed by field officers.

Monthly Payroll Transaction Lists.

End of year bonus.

End of year inventory.

Fees for burials/cremation.

Computation of passage benefit.

Computation of pension and death gratuity.

Computation of car loan.

Computation of bank sick leave/uniform allowance

Assignment of duties.


36

New appointment/transfer/resignations.

Site visits on capital projects and physical check on a spot check on material assets

purchased.

Spot checks on employees working on site.

Carry out investigations and report to Chief Executive on discrepancies.

Occupational Health and Safety Section

1. Introduction

This report provides analysis of the standard of Safety and Health throughout the Council for the

financial year 2017-2018.

The Occupational Safety and Health Act, 2005 provides a legislative framework to promote,

stimulate and encourage high standards of health and safety at work.

2. The Strategy

The Occupational Safety and Health Act, 2005, and associated regulations address the way in

which health and safety should be tackled within all organisations. The purpose is to ensure the

health, safety of employees and anyone who may be affected by the Council’s work activities.

The Council fulfils its legal responsibility for Safety and Health by:

- Providing support and advice to all Employees;

- Offering and facilitating a range of Safety and Health training courses;

- Measuring compliance with Safety and Health policies through Safety and Health audits

conducted by Officer from the Ministry of Labour, Industrial Relations, Employment and

Training.

- Consulting, in various ways, with the workforce in relation to Safety and Health.

3. Safety and Health Management System

One objective for this financial year was the development of a Safety and Health Strategy to identify

weaknesses in the current system and provide clarity for areas of improvement and highlight

priority topics to be addressed.

The Health and Safety Team utilised the Occupational Safety and Health Committee to keep track

of progress made for different issues.

This project has remained an objective for the financial year 2018-2019.


37

3.1 Risk Assessment Review.

The completion of risk assessments is a statutory requirement under the Occupational Safety and

Health Act, 2005.

This financial year, the Safety and Health section has further embedded proactive systems

designed to raise awareness, and as far as is reasonably practicable, prevent or reduce the risk of

harm occurring. These included adding new risk assessments to the existing library of risk

assessments as follows:

Table 1.0 : List of Risk Assessments for Financial Year 2017-2018.

Sn Title Date

i Brush Cutter and Strimmer Operator. December 2017

ii Burial Ground Attendant. December 2017

iii Construction activity in the DCRR. June 2018

The overall objective of the review was to confirm that the Council has a risk management system

in place that resulted in all risks to the organisation being identified, reported, monitored and

mitigated to an acceptable level.

3.2 Policies and Procedures.

Policies and procedures that were developed or reviewed and approved by relevant Committees

during this year included the Safety and Health Policy as well as the Injury/First Aid reporting

Policy.

Objective for 2018-2019.


Work to continue on completing gap analysis with regards to

Safety and Health Legislation.

Status.

Status.

To audit and review whether the Council has an effective

risk management system in place.


38

3.3 Safety Inspections.

A review of the Council’s Safety Inspection methods and frequencies was carried out. This review

resulted in the Council to maintain the 1-monthly regime for inspections in the various work areas.

4. Communication Strategy.

4.1 Occupational Safety and Health Committee.

The primary method of communication in respect of the Safety and Health issues is the Occupational

Safety and Health Committee. The Committee underwent a further review and it was agreed that with

effect from January 2018, the Committee would be held at least once every 2 months instead of a

monthly basis.

4.2 Introduction of a grievance structure.

As part of HS policy, any employee may present a grievance related to Safety and Health practices

through grievance forms which are available. Along with the grievance, a remedial action can be

proposed as well by the grievant. Corrective Action/Preventive Action is taken as necessary and

the grievant informed of the progress of work.


- Achieve at least 75% completion of actions arising from

Safety and Health inspections;

- Implement monitoring of health and safety inspections

compliance.


Safety and Health Committee to prioritise actions to correct

hazards as soon as possible and to follow up corrective

actions until they have been completed.

Status.

Status.


39

5. Safety and Health Training/Awareness.

Manual Handling Techniques

Figure 1.0: Training by Mrs Poinen – Ministry of Labour, Industrial Relations, Training

and employment.

22 August, 2017

Fire Fighting and Safety Awareness

Figure 2.0: Theory training by Mr Bashir Oaris (MQA Trainer)

01 June, 2018.


40

Fire Fighting and Safety Awareness

Figure 3.0 : Practical training by Mr Bashir Oaris (MQA Trainer)

01 June, 2018

Training on Compactor Lorry (Scavenging)

Figure 3.0 : Training by Mr S. Bose – ABC Motors, Pailles

04 June, 2018.


41

Toolbox training sessions are regularly organised with employees on site at various levels,

including Scavenging Section, Masons, Groundsmen etc.

6. Incident Reporting.

At each Safety and Health Committee, the number of reported non-clinical incidents across the

various Departments of the Council are discussed.

This financial year saw an overall reported total of 8 non-clinical incidents (First Aid issues) with a

total of 58 man days’ loss due to reported injury.

7. Preventing Communicable Diseases.

The Council identifies workers whose tasks may expose them to direct contact with dead animals,

excreta etc. These workers are offered the Hepatitis B vaccine, administered by Nursing Officers

of the vaccination unit – SSRN Hospital.

For the FY 2017-2018, 31 employees have been administered the required recall dose.

8. First Aid arrangements.

First Aid kits are available in all departments, including Council vehicles and these are regularly

verified to ensure that they are fully stocked as per the First Aid Regulations, 1989.


Work is ongoing by the Health and Safety Section to promote

awareness on the requirements of reporting incidents within

timescales set. Compliance will be monitored via the Occupational

Safety and Health Committee.

Status.


Medical surveillance and Hepatitis B vaccine offered to new

recruits whose tasks may expose them to such communicable

diseases.

Status.


42

9. Safety and Health Objectives 2018-2019.

The following objectives have been identified for the FY 2018-2019.

Sn Objective

i Work on completing a gap analysis with regards to health and safety legislation

to continue.

ii Achieve 75% completion of actions arising from health and safety inspections

Implement monitoring of health and safety inspections compliance

iii Work with Departments to continue to promote injury reporting within

prescribed timescales.

10. Conclusion

The report highlights the work that has been undertaken during 2017-2018 to improve the

management of health and safety in the Council. Progress is determined by revised inspection and

assessment programmes and ongoing training to improve visibility and awareness. The Council’s

Safety and Health Section continues to provide advice and guidance to staff to ensure they are

able to meet the needs of the Council in its compliance with safety and health legislation, as well

as continues to engage with other specialist services to assist in the development of future

strategies.


Ensuring that First Aid care is given to an injured worker before

professional medical help in a timely manner to preserve life,

prevent any injuries from getting worse, and to help injured

workers recover.

Status.


43

WELFARE DEPARTMENT

The major activities organised by this Council for period 2017/2018 were as follows:

In the context of simulation exercises to sensitize inhabitants on climate change

impact and necessary precautionary measures to be taken, a flooding simulation

exercise was carried out at Riverside in collaboration with the National Disaster Risk

Reduction and Management Centre and Rivière du

Rempart Police Station. The Local Emergency

Operation Command was set up at Rivière du

Rempart Police Station as from 14.00 hrs. At

Résidence CHA, evacuation was carried out by the

Police, National Coast Guards and Mauritius Fire

and Rescue Services. The Ministry of Health and

Quality of Life, the Mauritius Red Cross Society and

the Tourism Authority also collaborated to the

activity.

Divali in November 2017 was celebrated at Cottage and Rivière du Rempart. As

usual big crowds gathered and the functions were graced by eminent personalities.


44

The inauguration of The Piton Village Hall took place on Wednesday 13th

December 2017. The Chief Guest was Honourable Mrs Fazila Jeewa-

Daureeawoo, the Vice Prime Minister and Minister of Local Government and Outer

Islands.

In the context of the 50th Anniversary of Independence, the District Council of

Rivière du Rempart organised the following activities;

the Preliminary and Semi Finals of the Intervillage Petanque Tournament held on

Saturday 03 March 2018 as from 13.00 at the Rivière du Rempart Pétanque Court,

Gandhi Square, Rivière du Rempart and the Final of the Pétanque Tournament held

on Saturday 10th March 2018 as from 11.00 hrs at the Grand Bay Public Beach.

The activity gathered about 800 players and some 2,000 inhabitants mobilised from

all the villages to support their teams.


45

the Preliminary and Semi Finals of the

Intervillage Geet Gawai Competition

held on Monday 05 March 2018 as from

15.00 hrs at the Rivière du Rempart Youth

Centre and the Final held on Saturday 10th

March 2018 as from 14.00 hrs at the Grand

Bay Public Beach. This activity was rich in

colour and contributed to maintaining

traditions and culture. The activity was

organised for the first time and was very

successful as senior citizens and young

people were involved. A big crowd had

gathered for the final at Grand Bay. The

Chief Guest was Honourable Mrs Fazila

Jeewa-Daureeawoo, the Vice Prime

Minister and Minister of Local Government

and Outer Islands.

An Intervillage Regatte Competition held on Saturday 10th March 2018 as follows.

The Council also celebrated Happiness Day on the 20th March 2018 as follows:


46

A lunch was offered to children with special needs from five associations in the

region. A wheel chair was also offered to each association on that occasion.

Rohit Boolaky Stadium was vested in the Council as from April 2018.


47

THE LAND USE AND PLANNING DEPARTMENT

This department, existing in all local authorities, has got a most crucial responsibility in the control

of development and in business facilitation within the Council’s administrative area.

In 2016/2017, the department had processed 2,132 applications for Building and Land Use

Permits, the highest figure among all local authorities. The technical staff to process these

applications was constituted of only 8 members.

Limited human resources in the department therefore did not allow for very regular inspections to

be carried out for proper control and monitoring of land development in the District of Rivière du

Rempart. The issue was raised at a meeting on “illegal construction/Ex Post Control” held on 10

May 2018 and chaired by Honourable Mrs Fazila Jeewa-Daureeawoo, the Vice Prime Minister and

Minister of Local Government and Outer Islands.

Following the above-mentioned meeting, the Council submitted, on 14 May 2018, a request to the

Ministry of Local Government and Outer Islands for additional posts for the department.

The situation with regards to applications for Building and Land Use Permits from July 2017 to

June 2018 was as follows:

PERMIT TYPE APPLICATIONS

RECEIVED ISSUED

RESIDENTIAL 1185 812

MORCELLEMENT 637 427

COMMERCIAL 251 113

INDUSTRIAL 24 12

OPP 24 9

SERVICES 24 14

SUI GENERIS 19 6


48

List of cases lodged for period of July 2017 – June 2018

C.N DETAILS OUTCOME

1. 4574/17 Illegal Development ON GOING










49

PUBLIC INFRASTRUCTURE DEPARTMENT

The responsibilities of the department are varied and quite complex, among which

o design and construction of infrastructure, that is roads, drains, bridges, culverts, parks

and buildings for public use.

o provision of street lighting points.

o execution of projects.

o maintenance of infrastructural assets.

Construction of new roads and resurfacing of existing roads as well as construction of drains/

absorption drains were among the top priorities for the department for 2017 – 2018.

Other priorities for the department were street lighting projects and improvement to amenities

such as football grounds and village halls, among others.

The department had also the huge task of completing some preponed projects within a short

space of time. They managed to complete in time the infrastructural works in the list of

preponed projects.

It is to be noted that the villages of Amitié, Gokoolah, Mapou, Piton and Roches Noires were

seriously affected by heavy rainfall which occurred on 21 April 2018.

An emergency team, comprised of workers from the Public Infrastructure Department and the

Public Health Department was set up to undertake urgent drain cleaning/rehabilitation works

in the above mentioned affected regions. The works were monitored by the Head, Public

Infrastructure Department and the Chief Health Inspector.

Development works in 2017 – 2018

The total investment for development projects from July 2017 to June 2018 was Rs56,

292,551. The completed projects are as follows:


50

Local Development Projects 2017/2018

Project Value (Rs)

1. Lighting of Football Ground Rs 4,858,750

2. Extension of Str. Lighting Network Rs 739,573

3. Purchase of Street Lanterns Rs 3,998,033

4. Construction of Drains/Absorption Drains Rs 3,436,316

5. Resurfacing of roads Rs 7,310,207

6. Construction of New Roads Rs 3,997,099

Subtotal Rs 24,339,978

Projects funded by the National Development Unit

Project Value (Rs)

1. Construction of new roads Rs 13,551,243

2. Lighting of Football Ground – Poudre D’Or Village Rs 2,415,000


Preponed projects – Special grant of Rs 10.5 M from government

Amount spent

1. Construction of Drains / Absorption Drains post flooding Rs 4,002,920

Preponed projects – Special grant of Rs 13.6 M from government

Amount spent (Rs)

1. Construction of Drain at Nanka Rd, R. Du Rempart Rs 886,788

2. Roche Noires Day Care Centre Rs 391,853

3. Petit Raffray Multipurpose Complex Rs 826,515

4. LED Lanterns Rs 864,225

5. Street Lighting, poles & wiring Rs 3,493,270

6. Street name plates & traffic signs Rs 483,320

7. Furniture & Equipment for Piton, Vale & Mapou VCs Rs 273,640

8. Uplifting of Village Hall Amenities Rs 1,970,353

9. Plastic Chairs for welfare Department & Village Councils Rs 998,085

10. Construction of Archive building Rs 1,795,361



51

Major Projects which were completed in 2017 – 2018:

Construction of Multipurpose Hall at Petit Raffray

Project cost: around Rs 20 million

Construction of Day Care Centre at Roches Noires

Project cost: Rs 2,925,000

Follow up continued in respect of projects already initiated

Construction of Market Fair and Traffic Centre at Goodlands

First bidding exercise: 28 May 2018

Estimated cost: Rs 276,000,000

Upgrading of Rivière du Rempart Market

Procedures for request for funding initiated


52

Multi Use games Area (MUGA) at Goodlands (in collaboration with the Mauritius

Telecom Foundation)

Multipurpose Complex at Rivière du Rempart

Project announced in government Budget Speech 2017/2018 (to be funded by Ministry

of Finance and Economic Development)


53

THE PUBLIC HEALTH DEPARTMENT

A. Scavenging Services

The Public Health Department is headed by the Chief Health Inspector with one Principal Health

Inspector, one Senior Health Inspector and nine Health Inspectors. Among others, the main

responsibilities of this Department include supervision of scavenging services, control of markets,

cemeteries, economic operators as well as abatement of nuisances as per notices from other

Ministries.

Out of nineteen (19) villages, four (4) of them have outsourced services namely at Goodlands and

Rivière du Rempart by Council whereas for Grand Baie and Cap Malheureux by the Ministry of

Local Government and Outer Islands.

In order to optimize use of inhouse resources for refuse collection, the Council area is divided into

15 sites covering 15 villages – Petit Raffray having two teams, Poudre D’or Hamlet and Esperance

Trebuchet have been merged as well as Amitié/Gokhoola/Mapou and part of Bois Rouge. Each

site comprised of a team of one driver, one Field Supervisor, and 5 – 6 Refuse Collectors. Each

team services about 1100 households/commercial premises per week. 9 tipper lorries and 7

compactors were in use with 133 Refuse Collectors, 10 Field Supervisors, 11 Drivers and 4

Handymen.

However, an average of four hours of work were performed per site for collection and one hour for

sweeping of roads/green spaces and cleaning of barelands and cremation grounds. Twice weekly

services were introduced in villages like; Cottage, Piton, Poudre D’or Village and Plaine des

Roches. Other such services will eventually cover the rest of the villages. Scavenging services

were provided as per established programme of work.


54

Waste collection data 2017/2018 (In-house)

All records of data were recorded in a sheet of specific format jointly prepared by the Ministry of

Local Government and Outer Islands.

Number of trips of wastes collected and conveyed to Transfer Station of Poudre D’Or were around

2213. The amount of waste collected is shown below:

PERFORMANCE FOR IN- HOUSE SCAVENGING SERVICES-2017/2018

MONTHS JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN

WEIGHT/T 1500 1400 1350 1380 1400 1600 1583 1294 1119 1282 1197.5 1204.6

TOTAL WEIGHT/T 16310.1

Herbicide spraying

0

200

400

600

800

1000

1200

1400

1600

1800

JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN

2017 2018

we

igh

t/t

PERFORMANCE FOR IN- HOUSE SCAVENGING SERVICES-2017/2018


55

Herbicide spraying was effected by 3 sprayermen as per established programme in all 15 villages

served by in-house labour.

Lopping of branches/Cleaning of barelands

A team of 5 – 6 Refuse Collectors/Handy workers headed by 1 Field Supervisor performed such

works along internal roads. Survey revealed that there were about 1,925 plots of barelands within

the residential areas. Ownership for most of them could not be retraced.


56

Notices were served as per Section 60(7) of Local Government Act 2011 at regular intervals upon

known owners of private properties requiring them to clean and maintain their respective plots of

land keeping them free from waste, undergrowth or noisome vegetation at all times. Press notices

were also issued. Number of plots cleaned were 67.

Clean-up Campaigns

They were performed upon availability of special funds from the Ministry of Local Government and

Outer Islands.

Bulky Waste Campaign – It was carried out in October 2017 and June 2018.

Rodent Control: funds were provided by the Ministry of Local Government and Outer Islands.

All nineteen villages were covered.


57

Embellishment Campaigns: These campaigns were effected upon availability of plants from

the Ministry of Environment and private nurseries. Sites covered were Mapou, Cottage, Petit

Raffray, Roches Noires and Cap Malheureux.

B. Management of Market/Fairs

The two (2) markets found at Goodlands and Rivière du Rempart were managed including their

maintenance, control of illegal hawkers in the vicinity and verification of arrears due by stall holders.

Furthermore, Expression of Interest was launched for Rivière du Rempart Market so as to allocate

vacant stalls. As regards to Goodlands market necessary bids have been launched for

construction of a modern one with around 600 stalls at Belmont. Issues regarding the plot of land

had been cleared with the St Antoine Sugar Estate. Bids were in preparation for launching. It is

expected that construction works will start by mid 2019.


58

C. Cemetery/Cremation Grounds

All six (6) cemeteries and seventeen (17) cremation grounds were cleaned to the satisfaction of

the Council. Cemeteries were maintained by eleven (11) Burial Ground Attendants. The three

gas incinerators were in operation. The use of incinerators is in line with sustainable environment

as less pollution is caused compared to traditional pyres.

Total number of incinerations: 323

1. Daruty – 58

2. Piton – 155

3. Belmont – 110

Total number of burial permits issued by the Rivière du Rempart Health Office was 618. 295

cremations were effected on traditional pyres.

D. Cleaning of Drains/Rivers

(a) Open Drain

Upon availability of funds these drains were cleaned by in-house labour at Goodlands by-pass,

Belle Vue Maurel, Amaury, Amitié, Mapou/Bois Rouge, Poudre D’or, Petit Raffray and

Panchavati. The extent was around 17,560 meters. Cost of cleaning works amounted to Rs

1.8 M

(b) Covered Drains Funds were provided by the Ministry of Local Government and Outer

Islands.

The works were contracted out and cleaning were performed under the supervision of the

Public Health Department and the Public Infrastructure Department. Cost of cleaning works

amounted to Rs 765,282

The extent covered was around 3525 meters.


59

(c) Cleaning of rivers was contracted out and was performed under the supervision of the Public

Health Department. Cost of cleaning amounted to Rs 162,500.

E. Trade Fees

Number of New Trade fee issued: 1361

Number of Trade fee ceased: 691

Regarding Occasional licences around fifteen (15) were issued


60

VILLAGE COUNCILS

The District Council of Rivière du Rempart is made up of 19 Village Councils. Each Village Council

has its own budget and its revenue is the annual grant from the District Council.

Activities

There is a close relationship between members of the Village Councils and the inhabitants of their

respective villages. This relationship helps to identify the requirements of the villagers and design

and implement projects that will be appreciated by the villagers.

In order to promote the well-being of inhabitants the Village Councils organize several activities

such as sports activities, cultural shows, medical check-up and outing and for senior citizens.

Major Activities held during the Year 2017/2018

The major activities held are as follows:

Divali Celebrations

Christmas Celebrations

Organisation of sports activities

Senior Citizen outing/lunch

Same were organised to celebrate the various festivals especially Divali and Christmas. Moreover,

sports activities were also organised for the welfare of inhabitants. Outings for senior citizens were

also organised by certain villages.

Pacific March against Drug Abuse organized by the Village Council of Goodlands

A Pacific March against drug abuse was organized by the Village Council of Goodlands in

collaboration with the District Council and Compagnie Mont Choist Ltee on Saturday 25th

November 2017. The Chairperson and Vice-Chairperson of the District Council, Honourable Ashit

Kumar GUNGAH Minister of Industry, Commerce and Consumer Protection, other Members of

Parliament for Constituency No 6, Village Councillors, as well other stakeholders participated in

the event which ended with a Cultural Show held at Domaine du Moulin.


61

Family Fun Day at Domaine du Moulin

A Family Fun day followed by a cultural show was organized by the Village Council of Goodlands

on Sunday 13th May 2018 at Domaine du Moulin where more than 1000 inhabitants were present.

Various Children’s Play Equipment as well as two Cinemas Space Zoom 9D were hired on that

day for entertainment of the inhabitants and children’s. Provision for food and drinks were also

made for all those present.

Other National Festival organized by Village Councils include Cultural Show in the

context of Divali, Eid-Gathering, as well as Flag Raising Ceremony.


62

THE FINANCE DEPARTMENT

Reporting Period

The financial report has been prepared for the financial year starting the 01st July 2017 and ending

the 30th June 2018.

Basis of Reporting

The financial statements have been prepared in accordance with Section 133 of the Local

Government Act 2011(LGA), the International Public Sector Accounting Standards (IPSAS) and

the Statutory Body ( Audit and Account ) Act.

As from the year 2016-17 the IPSASs are being applied in the preparation of financial statements

of Council and consequently all grant received from government is treated as revenue in the

financial report irrespective of the nature of grant. As a result, the accumulated deficit brought

forward was reduced by the amount of capital grant received and receivable.

Financial Management

Revenue

The District Council is financed its operation from grant received from the central government which

is released on a monthly basis and from internally generated revenue. The annual recurrent budget

is prepared by the Council and approved by the Minister in line with section 85 of the LGA 2011.

Capital projects are financed under especial grant from the Local Development Projects, National

Development Unit, National Environment Fund and Special Grant from the Ministry of Finance and

Economic Development. During the under report a total of Rs 206 M was received for recurrent

expenditure and Rs 128.7 M was received for the construction of community assets and

procurement of property, plant and equipment. Moreover, two community assets for the value of

Rs 4.9 M were constructed by the national Development Unit and same were handed over to

Council for maintenance purpose.

The internally generated income is mainly from trade fee, rent, advertising fee, bus toll fee and

building and land use permit fee. During the year 2017-18 an amount of Rs 41,8 M was collected

and the fund was used to finance the budget estimates 2017-19.

Expenditure

Expenditure is relatively greater compared to the revenue received thus creating a deficit for

Financial Year 2017/18. The major share of expenses comprised of compensation to employees,

utilities, employee retirement benefit, cleaning services and finance cost. The actual deficit for the

year was Rs 354.2 M compared to last year surplus of Rs 3.7 M. The difference was due to the

provision made for the payment of interest in the arbitration case which amount to Rs 439.3 M.


63

- 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00

TRADE FEES

GOVERNMENT GRANT

FINES, PENALTIES AND LEVIES

OTHER REVENUE

BUILDING & LAND USE PERMIT FEE

RENT INCOME

INTEREST INCOME

OTHER REVENUE

RS MILLIONS

Chart Title

FIN YR 16/17

FIN YR 17/18

- 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00

Compensation of Employees

Utilities

Repair and Maintenance

Motor Vehicle Expenses

Employee Retirement Benefit Obligation

Employee Benefits

Audit and Professional fees

Grants and Subsidies

Other Goods and Services

Finance Cost

Depreciation and Amortisation charges

Chart TitleFIN YR 2017 FIN YR 2018


64

Recurrent v/s Capital Expenditure

Community assets include public infrastructure, new roads, resurfacing of roads, construction of

drains, fixing of handrails, provision of modern sports facilities with lighting system amongst others.

Buildings include multipurpose complex, day care centre, village halls and administrative building.

Capital Expenditure was spent mainly for the construction of community assets such as roads,

drains, street lighting and sport facilities among others. On the hand, recurrent grant from the Grant

in Aid was spent mainly in providing services to local citizens.

Reccurent Expenses


Utilities




Cleaning Services



Finance Cost



65

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

FIN YR 16/17 FIN YR 17/18

CAPITAL EXPENDITURE

BUILDING PUBLIC INFRASTRUCTURE

COMPUTER & EQUIPMENT FURNITURE,FIXTURES &FITTINGS

MOTOR VEHICLES


66

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018

NOTES 30 June 2018 30 June 2017

ASSETS RS RS

NON-CURRENT ASSETS

Public Infrastructure, Plant and Equipment

4 120,745,541

99,785,397

Land 5 71,412,154

48,242,289

Intangible Assets 6 61,619

162,352

Investment property 7 732,252

732,252

Receivables from non-exchange transactions

9 2,795,901

2,351,873

195,747,467

151,274,163

CURRENT ASSETS

Cash and Cash Equivalent 8 25,315,322

46,941,440

Receivables from non-exchange transactions

9 22,334,112

20,698,541

Receivables from exchange transactions

9 8,857,113

5,994,713

Work-in-Progress 16 2,564,721

14,827,042

Inventories 10 7,936,445

3,654,886

67,007,713

92,116,622

CURRENT LIABILITIES

Trade payables from exchange transactions

11 39,985,569

119,527,103

Borrowings 12 924,000

924,000

Employee Benefit obligation 15 3,363,764

12,064,222

Provisions 13 438,634,098

5,801,987

Non-exchange deferred Income 14 14,528,942

2,121,716

Prepayments 303,000

1,225,023

497,739,374

141,664,051

NET CURRENT LIABILITIES

( 430,731,661 )

( 49,547,429 )


67

LESS: NON-CURRENT LIABILITIES

Borrowings 12 11,550,000

12,474,000


15 298,089,985

301,762,807

309,639,985

314,236,807

NET ASSETS ( 544,624,178 )

( 212,510,073 )

RESERVES

Accumulated Deficit ( 590,734,418 ) ( 222,315,326 )

Reserves 17 46,110,240 9,805,253

TOTAL NET ASSETS / EQUITY ( 544,624,178 )

( 212,510,073 )

Approved by Council at its meeting of 22 February 2019

0

- 0

0

- 0

Prembhoodas Ellayah CHAIRMAN The notes 1 to 41 are an integral part of the financial statements.


68

STATEMENT OF FINANCIAL PERFORMANCE FOR YEAR ENDED 30 JUNE 2018

Notes 2018 2017

RS RS

Revenue from Non-Exchange Transactions

Trade Fees 18

20,669,350

27,807,350

Government Grant 21

340,965,113

237,468,263

Fines, Penalties and Levies 19

773,100

925,950

Other revenue 22

1,877,060

1,940,425

364,284,623

268,141,988

Revenue from Exchange Transactions

Building & Land Use Permit Fee 12,078,511

7,879,584

Rent Income 23

5,561,020

5,445,510

Interest Income 24

639,591

683,825

Other Revenue 25

2,130,259

3,139,186

20,409,381

17,148,105

Total Revenue 384,694,004

285,290,093

Expenses:

Compensation of Employees 26

136,954,030

119,535,282

Utilities 27

26,671,995

24,538,992

Motor Vehicle Expenses 28

3,843,373

3,199,283

Repair and Maintenance 29

6,723,492

6,167,938

Cleaning Services 30

50,184,353

23,927,220

Employee Retirement Benefit Obligation 15

14,190,982

31,420,706

Grants and Subsidies 31

11,334,357

13,543,775

Professional and legal fees 32

4,082,656

11,437,025

Finance Cost 33

439,315,548

808,900


69

Other Goods and Services 34

7,962,362

9,618,571

Depreciation and Amortisation charges 4 & 5 38,714,828

37,378,164

Total Expenses 739,977,975

281,575,856

( 355,283,970 ) 3,714,237

Other Gains / ( Losses ):

Items that will not be reclassified subsequently to Surplus or Deficit

Revaluation surplus on property 23,169,865

-

Surplus / ( Deficit ) for the year ( 332,114,105 ) 3,714,237

3,714,237

The notes 1 to 41 are an integral part of the financial statements.


70

STATEMENT OF CHANGES IN NET ASSETS /EQUITY FOR YEAR ENDED 30 JUNE 2018

Passage

Fund

Retirement Benefit

Obligation Reserve

Land Revaluation

Reserve

Accumulated Deficit

Total

RS RS RS RS RS

3,002,246 ( 41,439,282 ) 48,242,289 ( 222,315,326 ) ( 212,510,073 )

Balance At 01 July 2016

2,491,255 ( 31,327,396 ) 48,242,289 ( 235,630,458 ) ( 216,224,310 )

Surplus for the period

-

-

-

3,714,237 3,714,237

Transfer to / from accumulated surplus

510,991 ( 10,111,886 ) -

9,600,895 -

Balance At 30 June 2017

3,002,246 ( 41,439,282 ) 48,242,289 ( 222,315,326 ) ( 212,510,074 )

Balance At 01 July 2017

3,002,246 ( 41,439,282 ) 48,242,289 ( 222,315,326 ) ( 212,510,074 )

Surplus / ( Deficit ) for the year

-

-

-

( 332,114,105 ) ( 332,114,105 )

Transfer to / from accumulated surplus

286,752 12,848,370

23,169,865

( 36,304,987 ) -

-

-

-

-

-

Balance At 30 June 2018

3,288,998 ( 28,590,912 ) 71,412,154 ( 590,734,418 ) ( 544,624,180 )



71

STATEMENT OF CASH FLOW FOR YEAR ENDED 30 JUNE 2018

Notes 2018 2017 RS RS

CASH FLOWS FROM OPERATING ACTIVITIES

Surplus / ( Deficit ) for the year ( 361,601,175 ) 13,826,122

Adjustments for:

Finance income ( 545,615 ) ( 510,991 )

Finance Charge 681,450

808,900

Provision for Employee Retirement Benefit Obligation

1,412,408 352,384

Depreciation of Fixed Assets and Intangible Assets

4 38,714,828 37,378,164

( 321,338,105 ) 51,854,579

Movement in Working Capital:

(Increase)/Decrease in Inventories ( 4,281,559 ) ( 135,521 )

Increase/(Decrease) in Payables ( 80,463,557 ) ( 22,627,320 )

Increase/(Decrease) in Deferred liabilities 12,407,226 -

Increase/(Decrease) in Provisions 432,832,111 ( 1,714,194 )

(Increase)/Decrease in Receivables ( 4,941,999 ) ( 2,984,990 )

(Increase)/Decrease in Work-In-Progress 12,262,321 (12,878,752)

Increase/(Decrease) in Employee Benefits ( 12,373,280 ) 4,139,027

Net Cash flows from operating activities 34,103,158 15,652,829

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of Fixed Assets 4 ( 54,669,441 ) ( 45,265,925 )

Additions in Investments - ( 732,252 )

Investment income 545,615 510,991

Net Cash Flows from investing activities ( 54,123,826 ) ( 45,487,186 )

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of Borrowings ( 924,000 ) ( 2,874,000 )

Finance Charge ( 681,450 ) ( 808,900 )

Net Cash Flows from financing activities ( 1,605,450 ) ( 3,682,900 )

Net Increase/(decrease) in Cash and Cash Equivalents

( 21,626,118 ) ( 33,517,257 )

Cash and Cash Equivalents at beginning of year 46,941,440 80,458,697

Cash and Cash Equivalents at end of year 25,315,322 46,941,440



72

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR YEAR ENDED

30 JUNE 2018

Note Original Budget

Approved Budget

Actual Performance Difference

RS RS RS RS Revenue

Trade Fees

28,000,000

28,000,000

20,669,350 ( 7,330,650 )

(i) Government Grant

216,157,000

224,857,000

340,965,113 116,108,113

Building & Land Use Permit Fee

7,500,000

7,500,000

12,078,511

4,578,511

Rent Income

5,600,000

5,600,000

5,561,020 ( 38,980 )

(ii) Interest Income

85,000

85,000

639,591 554,591

(iii) Other Revenue

4,350,000

3,750,000

2,903,359 ( 846,641 )

Total Revenue

261,692,000

269,792,000

382,816,944 113,024,944

Expenses


143,002,708

137,301,075

136,954,030

347,045

Employees Retirement Benefits

14,689,018

13,500,000

14,190,982

( 690,982 )

Utilities

25,852,500

25,527,000

26,671,995 ( 1,144,995 )


2,560,000

2,555,000

3,843,373

( 1,288,373 )


9,424,500

7,570,000

6,723,492

846,508

Cleaning Services

26,278,007

26,218,007

50,184,353 ( 23,966,346 )


16,003,040

15,120,370

11,334,357 3,786,013


6,800,000

2,900,000

4,082,656

( 1,182,656 )

(iv) Finance Cost

681,450

681,450

439,315,548 ( 438,634,098 )


10,573,000

9,350,637

7,962,362

1,388,275

Grant retained by Ministry

34,000,000

34,000,000

34,000,000

-

289,864,223

274,723,539

735,263,147

( 460,539,608 )

( 28,172,223 ) ( 4,931,539 ) ( 352,446,203 ) ( 347,514,664 )


73

Other Gain and Loss:

(v) Depreciation and Amortisation charges

-

-

( 38,714,828 ) ( 38,714,828 )

(v) Revaluation of property

-

-

23,169,865

23,169,865

Surplus / ( Deficit ) of revenue

( 28,172,223 ) ( 4,931,539 ) ( 367,991,165 ) ( 363,059,626 )

Non-recurrent budget 2017-18

Car loan to employees

2,000,000

2,000,000

923,625

1,076,375

(vi) Furniture, Equipment & IT Equipment

3,896,000

2,525,000

5,681,000

( 3,156,000 )

Building

4,500,000

3,400,000

8,169,790 ( 4,769,790 )

Loan repayment

924,000

924,000

924,000 -

Total Surplus / ( Deficit ) for the year

( 39,492,223 ) ( 13,780,539 ) ( 383,689,580 ) ( 356,210,211 )

Notes on the Performance Difference

I. Government grant received and receivable with any condition attached to it was recognized as revenue in the statement of performance in compliance with IPSAS 23 “revenue from non-exchange transaction.

Grant received for the acquisition of property, plants and equipment and grant-in-kind have been recognized as non-exchange revenue in the Statement of performance.

II. Interest received from investment of passage fund has been credited to the fund under equity in compliance with Section 81 (5) and (6) of the Local Government Act 2011.

III. No budgetary provision was made for the collection of fines and surcharge for late payment of trade fee and bus toll and the actual surcharge collected has been included in other revenue.

IV. No budgetary provision was made for an eventual payment of interest in the arbitration case.

V. Depreciation charges and revaluation surplus being a non-cash items no budgetary provision was made.

VI. The initial budget was prepared on the accrual basis but the approved budget was on the cash basis which resulted in the performance difference in most of the expenditure items. The budgeted expenditure was under provided while the budgeted revenue was over stated by the parent Ministry in the approved budget estimates 2017-18.

VII. The difference in compensation of employees was due to the fact that most vacant post was not filled during the year 2017-18.

VIII. Budgetary provision for capital expenditure was made separately and fund was made available under the Local Development Project and the National Development Unit.


74

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 30 JUNE 2018

1. GENERAL INFORMATION

The District Council of Riviere du Rempart is a corporate body established under the Local

Government Act 2011, Part II Section 3 and 7. The place of management is at Royal Road, Mapou.

The Council’s principal activities are the provision of sound public infrastructure and its

maintenance, household waste collection, licensing of business activities, issuing of development

permit and the promotion of sport, leisure and welfare activities.

2.1 Basis of Preparation and Statement of Compliance

The financial statements of the District Council of Riviere du Rempart have been prepared in

compliance with the Local Government Act 2011 and the International Public Sector Accounting

Standards (IPSAS) as determined by the Ministry of Finance and Economic Development under

section 133(a) of the Act.

The Financial statements are presented in Mauritian Rupees and all values are rounded to the

nearest rupee. The accounting policies have been consistently applied to all the years presented.

The financial statements have been prepared under the historical cost convention, unless stated

otherwise. The cash flow statement is prepared using the direct method and the financial

statements are prepared on the accruals basis.

In the current year, the Council has adopted for the first time the International Public Sector

Accounting Standards and opted the three years transitional period. All the IPSAS standards have

been applied at the date the financial statements were approval by council with the following

exceptions.

Description

Effective Date Effect on the Financial Statements

IPSAS 21 – Impairment of Non-Cash Generating Assets

01 January 2006

Direct effect on Surplus / Deficit in the Statement of financial performance and Net Asset

IPSAS 29 Financial Instruments; Recognition and Measurement

01 January 2013 Concessionary loan affect the surplus/deficit and the assets/liabilities by re-measurement

IPSAS 26 – Impairment of Cash Generating Assets

01 April 2009

Direct effect on Surplus / Deficit in the Statement of financial performance and Net Asset

IPSAS 16 – Investment Property

01 January 2008 Affect the fair presentation of the Asset

IPSAS 17 –Property, Plants & Equipment ( PPE )

01 January 2008 PPE not recognized under previous basis of accounting


75

2.2 Significant Accounting Policies

(a) Consolidation of financial statements

Controlled Entity

Controlled entity is an entity which is controlled by another entity, called the controlling entity.

Controlled entity over which the controlling entity has the power to govern the operating,

financial and non-financial policies. The controlled entity is fully consolidated from the date on

which control is transferred up to the date it ceases to be an associate. Upon loss of significant

influence over the associate the ceased to consolidate the financial statements of the controlled

entity and any remaining investment is recognized at its carrying amount.

Investments in Associates and Joint Venture

An associate is an entity in which the investor has significant influence while a joint venture

arises when the investor has joint control. An investment in an associate or a joint venture is

accounted using the equity and the proportionate consolidation method respectively, and it is

classified as a non-current asset in the consolidated financial statements of the controlling

entity.

(b) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the

District Council and the revenue can be reliably measured, regardless of when the payment is

received.

The general policy of the Council is to recognize revenue on an accrual basis with the substance

of the relevant agreement except to those specified below. Revenue is recognized as deferred

income when there is a related condition attached that would give rise to a liability to repay the

amount.

Financial reporting of revenue arising from exchange transactions when one entity receives asset

or services, or has liabilities exchanged, and directly gives approximately equal value in the form

of cash, goods, services or use of assets to another entity in exchange. Non-exchange transactions

are those transactions where there are no exchange of approximate direct benefits or value

between receiving and giving entities.

Revenue from Exchange Transactions

(i) Bus toll fee

Bus toll fee is payable by every bus owner using the traffic centers and the fee is

accounted for as income on an accrual basis. It is payable to Council one month in

advance.

(ii) Rental income

Rent income arising from operating leases on investment properties is accounted for

on a straight-line basis over the lease terms and is included in revenue in the statement

of profit or loss due to its operating nature.


76

(iii) Building Ordinance fee

Building and land use permit fee is recognized on the actual basis, that is the amount

actually received and/or collected and development permit actually issued.

(iv) Interest Income

Interest income is accrued using a time proportion basis based in accordance of the

relevant agreement and prevailing rate of interest. Interest income generated from

investment of the Passage Fund is credited to the passage fund compliance with

Section 81 (5)(b) of the Local Government Act 2011.

(v) Burial and Incineration fees

Burial and incinerator fees are recognized on the actual basis that is the amount actually

received and / or collected and service actually provided.

(vi) Other Income

School fee is recognized on the accrual basis, unless collectability is in doubt and

cannot be recognized when it is uncertain that future economic benefit will flow to the

Council, and the fair value of the asset can be measured reliably. While fee payable for

duplicate receipt for loss building and land use permit (BLP) and trade fee receipts are

accounted for as income on an actual basis

Revenue from Non-Exchange Transactions

(i) Trade fee

Trade fee is payable whenever an economic operator or any person carries out a

classified trade as stipulated by the Local Government Act 2011 Section 122 (2). It is

an offence to carry out such trade without the payment of the appropriate fees.

However, there is a high risk that a trader failed to complete the procedure for cessation

of business and thus the probability of receiving payment of trade fee is remote

Thus, revenue from non-exchange transaction, trade fee, is recognized when the

income is measure at fair value, is reliable and collectible. As the collectability of trade

fee receivable is not reasonably assured, trade fee receivable and received is

recognized on the cash basis.


77

(ii) Advertising fee

Advertising fees are accounted for as income on an accrual basis unless collectability

is in doubt and cannot be recognized when it is uncertain that future economic benefit

will flow to the Council, and the fair value of the asset can be measured reliably.

(iii) Government Capital grants

Government grant is not recognized until there is reasonable assurance that the Council

will comply with the conditions attached to them and that the grants will be received. A

liability is recognised in respect of the condition attached to a grant with the specific

purpose attached to the grant and related revenue shall recognised in the period the

condition is satisfied.

(iv) Government grant-in-aid

Grant-in- aid that are receivable as compensation for expenses or losses already

incurred or for the purpose of giving immediate financial support to the Council with no

future related costs are recognized in the statement of financial performance in the

period in which they become receivable.

(v) Transfer from other government entities

Revenue from non-exchange transactions with other government entities are measured

at fair value and recognized on obtaining control of the asset ( cash, goods, services

and property) if the transfer is free from conditions and it is probable that the economic

benefits or service potential related to the asset will flow to the Council and can be

measured reliably

(c) Taxes

Current income tax is nor charged on the revenue of the Council and therefore local authorities

are exempted from taxes on revenue.

Value added Tax

Value added tax paid on the procurement of asset, goods and services is not recoverable from

the tax authority and therefore the tax paid is recognised as part of the cost of acquisition of

the asset and expenses.

(d) Investment Property

Investment property is land or buildings held to earn rentals rather that use in the production of

services or for administrative purpose. Investment property is measured initially at its fair value

at the date of acquisition or cost including transaction cost. It is recognized as an asset when

it is likely that future economic benefits or service potential that are associated with the


78

investment will flow to the Council and the cost or fair value of the investment property can be

measured reliably.

Investment property acquired through a non-exchanged transaction is measured at its fair

value at the date of acquisition and thereafter, it is measured using the cost model and is

depreciated over a 20 years period.

Investment property is de-recognised either when it is disposed or when it is permanently

withdrawn form use and it is re-classified in the financial statement.

(e) Property, Plant and Equipment

(i) Buildings

Buildings are held for use in the production of or supply of goods and services, for rental

to others and for administrative purposes. It is recognized in the statement of financial

position at cost or transfer value, being the fair value at the date of transfer of ownership

less any subsequent accumulated depreciation and/or accumulated impairment losses.

No revaluation is carried out unless required to reflect the fair value. Buildings consist

of administrative block, store block, village halls, multipurpose complexes, office

buildings, school buildings and market buildings at various locations.

(ii) Land is maintained at cost and is not depreciated.

Land acquired by Council is valued at cost of acquisition and it is not depreciated.

Land transferred by real estate promoters is in principle transferred to the Council at

the token amount of MUR 1 per plot or nominal amount. There lands are transferred

with conditions attached to the deed of sale. The lands are subject to constraints on

disposal or its use. Land transferred is recognized in the statement of financial position

at its fair value.

Land vested to Council by the Ministry of Housing and Land and the Ministry of Local

Government for management, maintenance and administration purpose. These land

are for community use and council has no right to dispose it or use for any other

purpose. These land are transferred with conditions and they have been recognized in

the financial statements at fair value on the date of transfer.


79

Land is subject to revaluation to determine the fair value on a rolling basis once every

five years.

(iii) Construction and acquisition of infrastructure assets such as drains, absorption pit, new

roads, resurfacing of existing roads, extension of street lighting network, sport facilities,

children playground and other community assets are recognized under the public

infrastructure and depreciated during their economic useful life.

(iv) Cost of patching of roads, fixing of traffic signs and names plates are charged to the

income statement as expenses in the year they are incurred.

(v) IT equipment, office equipment, plants, machineries, furniture, fixtures, fittings, motor

vehicles, intangibles are stated at cost less accumulated depreciation and accumulated

impairment losses, and stated at its carrying value.

All property, plant and equipment are stated at cost less accumulated depreciation and

impairment losses. Cost includes expenditure that is directly attributable to the acquisition or

transfer of the asset. Any replacement of a significant part of an existing fixed asset is disclosed

as an individual assets with a specific useful lives and depreciated accordingly. The replacement

cost includes major cost of inspection and capitalized to the total cost. All other cost of repairs

and maintenance are recognized in surplus or deficit as incurred.

Assets acquired in a non-exchange transaction free of charge or at nominal value are initially

recognized at its fair value thereof at the date of acquisition and depreciated accordingly. The

corresponding credit is recognized as income in the statement of financial performance otherwise

it is deferred as a liability if there are conditions attached to the use of the asset.

Depreciation is charged so as to write off the cost of fixed assets less the residual value at the

annual estimated rates over their useful lives, using the straight line method. The estimated useful

lives, residual value and depreciation method are reviewed at each year end, with the effect of

any changes in estimate accounted for on a prospective basis.

An asset’s carrying amount is written down immediately to its recoverable amount, or recoverable

service amount, if the asset’s carrying amount is greater than its estimated recoverable amount

or recoverable service amount.

Items of property, plant and equipment and/or any significant part of an asset upon disposal or

when no future economic benefits or service potential is expected from its continuing use. Any

gain or loss arising on the disposal or retirement of an item of property, plant and equipment is

determined as the difference between the sales proceeds and the carrying amount of the asset

and is recognized in the surplus or deficit in the statement of financial performance.

The annual rates are used in the calculation of depreciation:

Building 5% Public Infrastructure 20% Computer and Equipment 25% Furniture, Fixtures and Fittings 10% Motor Vehicles 20%


80

(f) Leases

Lease is classified as finance lease when all the risks and benefits incidental to ownership of

an asset is transferred to the Council. Though the title is not transferred to the lessee the asset

under finance lease is recognized as asset and liability at the lower of the present value of

minimum lease payments and the fair value of the property determined at the inception of the

lease. The discount rate used is the incremental borrowing rate or the interest rate implicit in

the lease. The land and building element of a lease is considered separately for the purpose

of lease classification.

Assets under finance lease is depreciated over its useful economic life. The asset is

depreciated over the shorter of the estimated useful life of asset and the lease term when there

is no reasonable certainty that council will obtain ownership of the asset by the end of the lease

period.

Finance lease payment is apportioned between finance charge and reduction in outstanding

lease liability so as to achieve a constant rate of interest on the remaining balance of the

liability. Finance cost is recognized as expense in the statement of financial performance.

Finance lease receivable is recognized as asset in the statement of financial position at an

amount equal to the net investment in the lease. Revenue received under a finance lease is

recognized in the statement of financial performance based on a pattern reflecting a constant

periodic rate of return on the Council’s net investment.

In an operating lease all risks and rewards incidental to ownership of the asset do not

substantially transferred to the Council. Lease payment under an operating lease the rent

payment is recognize as expenses in the surplus or deficit on a straight line basis over the

lease term. Rent received/receivable from an operating lease agreement is recognised as

income on a straight line basis over the lease term under the revenue from exchange

transaction in the statement of financial performance.

Asset held under operating lease is disclosed in Council’s statement of financial position

according to its nature. Any initial direct cost incurred in finalizing an operating lease agreement

is capitalized in the carrying amount of the leased asset and recognized them as expense over

the lease term on the same basis as the lease revenue.

(g) Intangible Assets

Intangible assets are recognized if it is probable that future benefits or services potential that

are attributable to the asset will flow to the Council, and the cost or fair value of the asset can

be measured reliably. Internally generated intangible assets are not recognized. An intangible

item that do not meet both the recognition and definition criteria is expense in statement of

financial performance when incurred.

Following the initial recognition as an intangible asset it is accounted for using the cost model

less any accumulated depreciation and impairment losses. The economic useful life of an

intangible asset is assessed as finite or infinite.


81

Application software is classified as an intangible asset while operating software is recognized

as property, plant and equipment as it cannot be separated from the latter. The cost of

intangible is amortized over its useful economic life. Impairment test is carried out whenever

there is indication that the asset may be impaired.

Application software ( Ebiz System ) 10 years ( 10% )

Operating Software ( Office ) and software licenses 4 years ( 25% )

The amortization period and the amortization method for an intangible asset with a finite life

are reviewed at the end of each reporting year. Any changes in the expected useful life or the

expected pattern of consumption of future economic benefits embodied in the asset are

considered to modify the amortization period and/or method as appropriate, and are treated as

changes in accounting estimates. Amortisation expense is recognized in surplus or deficit

under the amortization cost of intangible assets.

Gains or losses arising from de-recognition of an intangible assets are measured as the

difference between the net disposal proceeds and the carrying amount of the asset and are

recognized in the surplus or deficit when the asset is de-recognized.

(h) Impairment of Non-Financial Assets

At each reporting date, Council assesses whether there is an indication that an asset may be

impaired. If any indication exists, or when annual impairment testing for an asset is required,

Council estimates the asset’s recoverable amount for cash generating asset and recoverable

service amount for non-cash generating asset. A cash generating asset is an asset that is held

with the primary objective of generating a commercial return whereas a non-cash generating asset

is one from which Council do not intend to realize commercial return.

Impairment of Cash Generating Assets

An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s fair value less

cost to sell and its value in use, and it is determined for an individual asset, unless does not

generate cash inflows that are largely independent of those from other assets or groups of assets.

When the carrying amount of an asset or the cash generating unit exceeds its recoverable amount,

the asset is considered impaired and it is written down to its recoverable amount. Any impairment

loss or gain is recognized in the statement of financial performance under other gain or loss.

In computing the value in use, the estimated future cash flows are discounted to their present value

using discount rate that reflects current market assessments of the time value of money and the

risks specific to the asset. In determining fair value less costs to sell, recent market transactions

are taken into account, if available. If no such transactions can be identified, an appropriate

valuation model is used.

Impairment losses of continuing operations, including impairment on inventories, are recognized

in the statement of financial performance in those expense categories consistent with the nature

of the impaired asset.


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Impairment of Non-cash Generating Assets

An asset’s recoverable service amount is the higher of the non-cash generating asset’s fair value

less costs to sell and its value in use. Where the carrying amount of an asset exceeds its

recoverable service amount the asset is considered impaired and is written down to its recoverable

service amount.

The depreciated replacement cost approach has been adopted by Council, where the present

value of the remaining service potential of an asset is determined as the depreciated replacement

cost of the asset. The depreciated replacement cost is measured as the reproduction or

replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on

the basis of such cost, to reflect the already consumed or expired service potential of the asset.

The fair value less cost to sell is the market value/price less cost of disposal based on the best

available information. An individual assessment of asset is carried out at each reporting date to

identify any indication that previously impairment loss may no longer exist or may have decreased.

An estimation of the asset’s recoverable service amount is carried out. A previously recognized

impairment loss is reversed only when there has been a change in the assumptions used to

determine the asset’s service amount since the last impairment loss was recognized. The reversal

is limited so that the carrying amount does not exceed its recoverable service amount, nor exceed

the carrying amount that would have been determined, net of depreciation, had no impairment loss

been recognized for the asset in prior year. The reversal is recognized in the statement of financial

performance under other gain/loss.

(i) Financial Instruments

FINANCIAL ASSETS

Financial assets are classified as financial assets at fair value through surplus/deficit, loans

and receivables, held to maturity investments and/or available-for-sale financial assets. Council

determines the classification of its financial assets at initial recognition.

Financial assets are recognized on the date that Council is committed to purchase or sell the

asset and/or date on which the assets are transferred or delivered. Council financial assets

include: cash and cash equivalent; term deposits; trade and other receivables; loans and other

receivable; and inventories.

Subsequent to initial recognition financial assets are measured based on their respective classification. They are classified into four categories namely: financial assets measured at fair value through surplus or deficit, held-to-maturity investments, loans and receivables, and available-for-sale financial assets.

Financial Assets at Fair Value through Surplus or Deficit

Financial assets at fair value through surplus or deficit include financial assets held for trading

and that are designated upon initial recognition at fair value through surplus or deficit. Financial

assets are classified as held for trading if they are acquired for the purpose of trading in the

near future. Financial assets at fair value through surplus or deficit are carried in the statement

of financial position at fair value with changes in the fair value recognized in surplus or deficit.


83

Held-to-maturity investments

Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturities that the District Council has the positive intention and ability to hold to maturity. If the District Council were to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and reclassified as available-for-sale. They are presented as non-current assets, except for those maturing within 12 months after the balance sheet date which are presented as current assets. Held-to-maturity financial assets are measured at amortized cost using the effective interest method less impairment loss. The amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are integral part of the effective interest rate. Any loss arising from impairment of the asset is recognized in the surplus or deficit.

Financial assets or part of it is derecognized firstly when the right to receive cash flows from

the asset have expired or is waived. Secondly, when Council has transferred the right to receive

cash flows from the asset or has assumed an obligation to pay the received cash flows in full to

a third party. Thirdly, when Council has transferred substantially all the risks and rewards of the

assets and/or Council has transferred control of the asset.

Available-for-sale financial assets

Available-for-sale financial assets are assets that are designated as available for sale or not

classified as loans and receivables, held-to-maturity or financial assets at fair value through

surplus or deficit. After initial measurement available-for-sale assets are subsequently

measured at fair value with gains and losses recognized directly in net assets through the

statement of changes in the net assets until the financial asset is de-recognised, at which time

the cumulative gain or loss is recognized in surplus or deficit.

Loans to Employees

Loans to employees are provided to purchase motor car/motor cycle in line with the Pay

Research Bureau recommendations. Loans are repayable in 84 / 72/18/15 monthly installments

and an equal amount of interest is payable at the rate of 4% per annum during the loan period.

After its initial measurement such assets are subsequently measured at amortised cost using

the effective interest method less any impairment loss.

Impairment of financial assets

Financial assets are deemed to be impaired if there is objective evidence of impairment as result

of one or more events that has occurred after the initial recognition of the asset and that the event

has an impact on the estimated future cash flows of the asset or group of assets that can be

reliably estimated.

FINANCIAL LIABILITIES

Financial liabilities are classified at fair value through surplus or deficit or loans and borrowings

at its initial recognition. However, loans and borrowings are recognized at fair value plus any

direct attributable costs. The District of Riviere du Rempart financial liabilities includes

borrowings, loan, trade and other payables.

Financial liabilities at fair value through surplus or deficit

Financial liabilities at fair value through surplus or deficit include financial liabilities held for

trading, that is they are acquired for the purpose of trading in the near term and financial liabilities


84

designed upon initial recognition as at fair value through surplus or deficit. Such financial liabilities

are hedging instruments. Any gain or loss in a hedging transaction is recognized in the surplus

or deficit.

Loans and Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. After initial

recognition interest bearing loans and borrowings are subsequently measured at amortized cost

using the effective interest method. Any gain or loss is recognized in the surplus or deficit in the

statement of financial performance.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or

cancelled or expires. When an existing liability is replaced by another from the same source on

substantially different terms. Or the terms of an existing liability are substantially modified, such

an exchange or modification is treated as a de-recognition of the original liability and the

recognition of a new liability, and the difference in the respective carrying amounts is recognized

in surplus or deficit.

Offsetting of financial instruments

Financial assets and liabilities are offset only if there is an enforceable legal right to offset the

recognized amounts and there is an intention to settle on a net basis, and the net amount is

accounted in the statement of financial position.

(j) Inventories

Inventories are measured at cost upon initial recognition. Inventory received free or at nominal

cost in a non-exchange transaction is recognized at fair value at the date of acquisition.

Raw materials are accounted at purchase cost using the weighted average cost method.

Work-in-progress and finished goods are accounted at cost of direct materials plus labour

cost and a proportion of overheads based on the normal operating capacity, but excluding

borrowing cost.

After initial recognition, inventory is measured at the lower of cost and net realisable value.

However, to the extent that a class of inventory is distributed or deployed at no charge or for

nominal charge, that class of inventory is measured at the lower of cost and current replacement

cost.Net realizable value is the estimated selling price or the market price less the estimated

costs of completion of the sale, exchange or distribution.

Inventories are stated at weighted average value or weighted average price of lots of items where

balance of the lot is greater than zero. Value for the item of stock is the cost charged by supplier.

The Council practices the first in first out basis (FIFO) for the issue of stock items. Inventories are

recognized as an expenses when issued for utilization and consumption in the provision of

services and administration of the Council.

(k) Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank net of overdraft, cash in hand, short term deposits with a financial institutions and highly liquid investment with a maturity period of not exceeding three months which is readily convertible into cash and is not subject to significant risk of change in value. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value.


85

(l) Receivables from Exchange Transaction and Non-Exchange Transactions

Receivable from exchange transactions are recognized initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of receivable is established when there is objective evidence that Council will not be able to collect all amounts due according to the original terms of the receivables. Receivables from non-exchange transactions comprises: trade fees, grant-in-aid, advertising fees, any penalties associated with these activities and as well as any other benefit receivables that do not arise out of a contract. These receivables are initially recognized at the amount normally receivable that reflect the trade and advertising fees. Subsequently, the amount receivables are adjusted for surcharge and tested for impairment.

(m) Trade and Other Payables under Exchange Transaction

All known trade payables are recognized at cost value. They are classified as current liabilities if payment is due within one year. Otherwise, they are presented as non-current liabilities.

(n) Service Concession Arrangement Assets and Liabilities

Service concession assets are assets that are operated by third party against payment. Council

has adopted IPSAS 32 “Service Concession Arrangement Assets” and at the reporting date

there is no such assets in its property, plants and equipment which needs reclassification in

line with the standards.

(o) Provisions

Provisions are recognized when the District Council has a present legal or constructive obligation

as a result of past events, it is probable that an outflow of resources embodying economic benefit

or service potential will be required to settle the obligation, and a reliable estimate can be made of

the amount of the obligation. The amount recognized as a provision is the best estimate of the

consideration required to settle the present obligation at the balance sheet date, taking into account

the risks and uncertainties required to settle the present obligation. When the economic benefits

required to settle a provision are expected to be recovered from a third party, the receivable is

recognized as an asset if it is virtually certain that reimbursement will be received and the amount

of the receivable can be measured reliably.

The expense relating to any provision is presented in the statement of financial performance net

of any reimbursement, for example under an insurance contract.

(p) Contingent liabilities

The Council does not recognize a contingent liability, but discloses details of any contingencies in

the notes to the financial statements, unless the possibility of an outflow of resources is remote.


86

(q) Contingent Assets

The Council does not recognize a contingent liability, but discloses details of any possible asset

whose existence is contingent on the occurrence or non-occurrence of one or more uncertain future

events not wholly within the control of Council in the notes to the financial statements.

(r) Retirement Benefit Costs (i) State Plan

The Council contributes 6 % of the gross emoluments of part-time employees and

employees who are not on a permanent and pensionable establishment to the National

Pension Fund.

The Council also contributes 2.5% of the gross emoluments of all employees to the

National Savings Fund.

The above contributions are charged to statement of profit or loss in the year they are

due.

(ii) Defined Contribution Plan

Defined contribution plans are post-employment benefit plans under which the District

Council pays fixed contributions (12% of gross emoluments) into another entity, the

State Investment Company of Mauritius Limited (“SICOM Ltd”), for new full time

employees who joined the Local Authorities from 1 January 2013 onwards. The district

council has no further payment obligations once the contributions have been paid.

These contributions are charged to statement of profit or loss in the year they are due.

(iii) Retirement Pension To Retirees Before 1 July 2008

The Council pays retirement pension to those employees who retired before 1 July

2008.

The obligation has been calculated by independent actuaries from SICOM Ltd and the

accounting policy is as per the defined benefit plan.


87

(iv) Compassionate Allowance

In accordance with the Local Authority Employees (Allowance) Regulations 1964 (GN

159 of 1964) the Council also pays Compassionate Allowance to part time employees

who have been in service for more than 5 years on their retirement. This has been

computed based on the number of year of services up to the year end, average annual

wage for the last 5 years.

(v) Defined Benefit Plan

The Council operates a defined benefit plan, administered by and invested with SICOM

Ltd. The pension plan is funded by payment of contribution to the fund (Council: 12%

of gross emoluments and employee: 6% of gross emoluments) taking account of the

recommendations of the Pay Research Bureau (PRB) report.

Defined benefit plans are post-employment benefit pension plans other than defined

contribution plans. Defined benefit plans typically define the amount of benefit that an

employee will receive on or after retirement, dependent on factors such as years of

service and compensation.

The liability recognised in the balance sheet in respect of a defined benefit pension plan

is the present value of the defined benefit obligation at the reporting date less the fair

value of plan assets, together with adjustments for unrecognised past-service costs.

The defined benefit obligation has been calculated by independent actuaries from

SICOM Ltd using the projected unit credit method. The present value of the defined

benefit obligation is determined by discounting the estimated future cash outflows using

market yields on bonds.

Actuarial gains and losses arising from changes in actuarial assumptions are charged

or credited to equity in other comprehensive income in the period when they arise.

Past service costs are recognised immediately in profit or loss.


88

(vi) Bank of Sick Leave

Employee entitlements to bank sick leave as defined in the PRB report are recognized

as and when they accrue to employees. An accrual is made for the estimated liability

for bank sick leave.

(vii) Unutilized Vacation Leave

Employee entitlements to vacation leave as defined in the PRB report are recognized

as and when they accrue to employees. An accrual is made for the estimated liability

for unutilized vacation leave.

(l) Nature and Purpose of Reserves The Council creates and maintains reserves in terms of specific requirements. Pension Fund Enacted under section 81 of the Local Government Act 2011, a pension fund has been created by Council whereby a monthly contribution, in line with the Pay Research Bureau recommendation, in paid in and retirement benefit is paid out of it to retired employees of the Council. These include payment of retirement benefits to employees transferred from another local authority, public service, statutory body or from any other institution. Every year an actuarial investigation is carried out to determine the pension liability and adjustment is made accordingly to the surplus or deficit in the statement of financial performance and statement of financial position. The pension fund is managed by the State Investment Company and therefore it does not include in the statement of change in net asset. Passage Fund Enacted under Section 81 of the Local Government Act 2011, a passage fund has been created by the Council to finance the payment of passage benefit to officers transferred from other Local Authorities, from the public service, from a statutory body or from any other institution. In line with the Section 81(5) of the act all income derived from investment of the unutilized passage benefit payable to employees of the Council is transferred to equity under the item Passage Fund. (m) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or manufacture of qualifying

fixed assets, which are assets that necessarily take substantial period of time to get ready for their

intended use are added to the cost of those fixed assets, until such time as the assets are

substantially ready for their intended use.

Investment income earned on the temporary investment of the specific borrowings pending their

expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.


89

Otherwise all other borrowing costs are recognized in the statement of financial performance in

the period in which they are incurred.

The interest rate payable on the government loan is fixed at 5% throughout the repayment period. (n) Segment Reporting

A segment is a distinguishable activities or group of activities for which it is appropriate to separately report financial performance to evaluate past performance in achieving objectives and in making decisions about future allocation of resources. Administrative Expenses and Expenses incurred in the provision of services are reported separately and in line with the budget approved by the government.

(o) Related Parties

Related parties are entities that control or have significant influence over the reporting entity

and parties that controlled or significantly influenced by the reporting entity. Members of key

management, members of executive committee, members of permit and business monitoring

committee, district councilors, members of procurement committee and the parent ministry.

The village Councils are managed and significantly influenced by its Chairperson, Vice-

Chairperson and Village Councillors given that they are separate legal entities as per local

Government Act 2011, and the District Council is responsible for overviewing the

administration. The village council funds are managed by the Chief Executive and Financial

Controller of the District Council. The Council has no significant influence over the decision

making process of the village councils. The expenditure of village councils are disclosed under

grant and subsidies in one line.

Village Councils are wholly funded by the District Councils by way of grant to village councils

while the District Council received grant-in-aid for financing its recurrent operation. Acquisition

of new community assets are funded through government capital grant.

(p) Budget Information

Budget information of local authorities are required to be made readily available for public

inspection under section 85(e) of the Local Government Act 2011.

The annual budget is prepared on the accruals basis whereby all estimated expenditure and

income and presented in a performance based budget format. After its approval by the Council,

the budget estimates is submitted to the parent ministry for its approval as per with section 85

of the Local Government Act 2011.The budget is then approved after the Local Government

Governance Unit having carried out adjustment to the original budgetary provisions.

During the financial year Council carried out monthly budget monitoring exercise to identify the

need for any additional funding and a final revised budget estimates is submitted with expected

expenditure and revenue for the ministerial approval.

Any difference between revised and actual expenditure and income is provided in the notes to

the financial statements. The explanation gives the reasons for overall growth or decline in the

budget and detail information of overspending and/or underspending on line items.


90

The budget and the financial statements are prepared using a different basis. The financial

statements are prepared on the accruals basis using a classification based on the nature of

expenses, IPSAS and disclosure using line budgeting on a cash basis. A comparison of budget

and actual amounts, prepared on comparable basis to the approved budget, is then presented

in the statement of comparison of budget and actual amounts.

The Council is not exposed to timing difference and equity difference, but exposed to basis

difference, differences due to format and classification.

3 Critical Accounting Estimates, Assumption and Judgements in Applying Accounting

Policies and Estimates

The preparation of the financial statements in conformity with IPSAS requires the District

Council to make certain accounting estimates and judgements that have an impact on the

policies and the amounts reported in the financial statements. Estimates and judgements

are continually evaluated and based on historical experiences and other factors, including

expectations of future events that are believed to be reasonable at the time such estimates

and judgements are made, although actual experience may vary from these estimates.

The estimates and assumptions that have a significant risk of causing adjustment to carrying

amounts of assets and liabilities are discussed below:

(i) Provisions

Provisions are measured at the management’s best estimation of the potential financial

obligational based on the information available at the reporting date.

(ii) Provision for Bad Debts

Provision is made when there is objective evidence that the District Council will not be

able to collect certain debts. This is made based on detailed analysis and historical

experience.

(iii) Useful Economic Life and Residual Values

The economic useful life and its residual value is assessed based on the nature of the

asset, its susceptibility and adaptability to changes in technology and process; the

environment where the asset is deployed; expert advice; financial capacity to replace

the asset; and change in the market in relation to the asset.


91

(iv) Fair Value Estimation

Financial assets and financial liabilities recognized in the statement of financial position

are derived from the active market based on the market price. In the absence of an

active market the fair value is determined using valuation techniques such as

discounted cash flow model. The inputs to the models are obtained from the market,

otherwise judgment is required in establishing fair value. Judgement includes the

consideration of inputs like liquidity risk, credit risk and volatility. Any change in

assumptions may affect the fair value of the assets and liabilities.

(v) Defined Benefit Obligations

The present value of the post-employment pension obligations depends on a number

of factors that are determined on an actuarial basis using a number of assumptions

such as discount rate, expected salary increase and mortality. Any change in these

assumptions will impact the carrying amount of pension obligations.

(vi) Change in accounting policies

Any effect of change in accounting policies is applied retrospectively. The effect of

change s in accounting policy are applied prospectively if retrospective application is

impractical.

Financial Risk Management

The District Council is exposed to financial, credit and liquidity risks. The overall risk management

of the District Council is focused on the mitigation of liquidity and credit risks, and seek to minimize

potential adverse effects on the financial performance and service delivery of the Council.

Financial Risk The only financial assets that Council may have are cash, cash equivalents and short-term bank deposit while the financial liability, other than its supplier liabilities, is its bank overdraft. Interest Risk Council does not have assets and liabilities that are not materially exposed to any change in interest rate. Credit Risk Credit risk arises from credit exposures to customers. The Council does not consider the need to have an independent rating of its customers. In fact no trade fee receipt is issued on credit while three month credit facilities are allowed to holders of market stall in principle.


92

Liquidity risk Liquidity risk is the risk of Council not being able to meet its obligations as they fall due. Council’s approach to managing liquidity risk is to ensure that sufficient liquidity is available to meet its liabilities when due, without affecting service provision to citizen. Prudent liquidity risk management implies maintaining sufficient cash on demand to meet expected operating expenses through a good monitoring of credit facilities from suppliers, the use of cash flow forecast and monthly budget monitoring.


93

NOTES TO FINANCIAL STATEMENTS AS AT 30 JUNE 2018

4 PUBLIC INFRASTRUCTURE, PLANT AND EQUIPMENT

Building

Public Infrastructure

Computer & Equipment

Furniture, Fixtures &

Fittings

Motor Vehicles

Total

RS RS RS RS RS RS

RATE 5% 20% 25% 20% 20%

COST:

As at 01 January 2016

18,140,765

57,162,270

13,641,480

1,969,774

22,982,408

113,896,698

Additions

9,352,711

30,590,167

1,021,264

725,605

3,576,180

45,265,926

As at 30 June 2017

27,493,476

87,752,437

14,662,744

2,695,379

26,558,587

159,162,623

As at 01 July 2017

27,493,476

87,752,437

14,662,744

2,695,379

26,558,587

159,162,623

Additions

22,845,671

31,047,565

2,322,907

3,358,094

-

59,574,238

As at 30 June 2018

50,339,147

118,800,002

16,985,651

6,053,473

26,558,587

218,736,861


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ACCUMULATED DEPRECIATION:

As at 01 January 2016

1,484,948

16,520,802

5,687,414

935,571

13,846,571

38,475,306

Charge for the year

1,374,674

17,550,487

3,665,686

540,036

5,311,717

28,442,600

As at 30 June 2017

2,859,622

34,071,289

9,353,100

1,475,607

19,158,288

66,917,906

As at 01 July 2017

2,859,622

34,071,289

9,353,100

1,475,607

19,158,288

66,917,906

Charge for the year

2,495,350

23,405,677

3,934,762

1,780,810

4,596,482

36,213,081

Disposal

-

-

-

-

-

-

As at 30 June 2018

5,354,972

57,476,966

13,287,862

3,256,417

23,754,770

103,130,987

Carrying Value

As at 30 June 2018

44,984,176

61,323,036

3,697,789

2,797,056

2,803,817

115,605,874

As at 30 June 2017

24,633,854

53,681,148

5,309,644

1,219,772

7,400,299

92,244,717

Note:

The net book value of the fixed assets approximate their fair values and / the carrying amount.

All the fixed assets were acquired out of non-exchange government grant without any condition. All land, property, plant and equipment were vested for maintenance purpose without any title deed.


95

4 PUBLIC INFRASTRUCTURE, PLANT AND EQUIPMENT (Continued)

FOR FIXED ASSETS ACQUIRED AFTER JULY 2008 AND BEFORE 31 DECEMBER 2012

Capital Outlay of Ex-PRDC ( Fixed Assets )

Building




Fittings

Motor Vehicles

Other

Total

RS RS RS RS RS RS RS

RATE 5% 20% 25% 20% 20% 20%

Building




Fittings

Motor Vehicles

Other

Total

Net Book Value as at 30 June 2016

9,941,694

4,038,154

-

222,075

1,592,615

580,972

16,375,509

Depreciation charged

2,401,013

4,038,154

-

222,075

1,592,615

580,972

8,834,829


7,540,681

-

-

-

-

-

7,540,680

Depreciation charged

2,401,013

2,401,013


5,139,668 0 0 0 0

5,139,667

Capital Outlay and its corresponding Capital Grant Applied of the Ex-Pamplemousses/Riviere du Rempart District Council was distributed equally.


96

LAND 2018 2017

Land transferred to Council

RS RS

As at 01 January

48,242,289

48,242,289

Transferred by land promoters and sugar estates

-

-

Vested by Government to construct sport facilities

23,169,865

-

Revaluation

-

-

As at 31 December

71,412,154

48,242,289

Land Vested to Council for maintenance and administration

Land belonging to Ministry of Housing and Lands and the Ministry of Local Government which have been handed to the Council for maintenance purpose only are as disclosed below. These land have not been capitalised. INTANGIBLE ASSETS - SOFTWARE 2018 2017

RS RS

Cost

As at 01 July

402,938

402,938

Addition

-

-

As at 30 June

402,938

402,938

Depreciation

As at 01 July

240,585

139,851

Charge for the year

100,734

100,734

As at 30 June

341,319

240,585

Carrying Value

61,619

162,353


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LAND 2018 2017

Land vested for maintenance purpose only: Area/m2 Area/m2 Land for Cremation Grounds and Cemetries

9,857

9,857

Land for Village Halls

15,233

15,233

Land for Recreational Activities

97,997

97,997

Land for Green Space

11,783

11,783

Land for Markets

12,060

12,060

Land for Traffic Centres

22,350

22,350

169,280

169,280

7 INVESTMENTS 2018

2017

RS RS

Long term investments 732,252

732,252

It relates to fixed deposits held with financial institutions presently having floating interest rate of 2.3%. The maturity date is 27 February 2020.

8 CASH AND CASH EQUIVALENT

Cash in Hand 8

5,000

Cash at Bank 25,315,314

46,936,440

25,315,322

46,941,440

9 RECEIVABLES

( i ) RECEIVABLES FROM EXCHANGE TRANSACTIONS

Market Fee 5,019,189

4,076,289

Bus Toll 1,895,575

1,912,925

Other receivables 1,942,349

5,499

8,857,113

5,994,713


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( ii ) RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS

Advertising Fee 551,875

102,150

Advance to Employees 3,507,020

2,956,155

Government Grant 21,002,118

19,723,015

Other receivables 69,000

269,094

25,130,013

23,050,414

Non-Current Receivables 2,795,901

2,351,873

Current Receivables 22,334,112

20,698,541

10 INVENTORIES

Street Lanterns with Brackets 253,080

516,045

Spart Parts, Stationery, Materials, Gas and Other Office Consumables

8,625,482

3,138,840

Provision for write-off of obsolete items ( 942,116 ) -

7,936,445

3,654,885

11 PAYABLES

( i ) Trade payables from exchange transactions

Trade payables 17,882,081

11,630,815

Retention money payable 6,462,911

7,835,920

Accrued expenses 6,804,752

6,508,661

31,149,744

25,975,396

( ii ) Prepayment

Rent, bus toll, advertising and school fees paid in advance

303,000

1,225,023 ( iii ) Deposits

Deposit refundable on demand from market stall holders and contractors

8,532,825

8,466,879

39,985,569

61,642,694


99

12 BORROWINGS 2018

2017

RS RS

Balance at Start 13,398,000

16,272,000

Reimbursement ( 924,000 ) ( 2,874,000 )

Balance at Close 12,474,000

13,398,000

Payable as follows:

Current - Before One Year 924,000

924,000

After One Year and Before Five Years 1,848,000

3,696,000

After Five Years 9,702,000

8,778,000

Non-Current 11,550,000

12,474,000

The borrowing comprising of loan and advance from the Government is unsecured. The loan is repayable in instalments by 30 June 2032 whilst the advance has been fully repaid during the financial year.

Interest is fixed at 5%.

13 PROVISIONS

Interest accrued on the capital of Rs 72.9 M award to Alphamix Ltd

438,634,098

5,801,987

438,634,098

5,801,987

14 DEFERRED INCOME

Government grant deferred 10,732,865

786,399

Public Contribution and donation deferred

3,796,077

1,335,317

14,528,942

2,121,716

A liability has been recognised in respect of the condition attached to the grant and contribution. The related revenue will be recognised in surplus or deficit in the period the condition is satisfied.


100

15 EMPLOYEE BENEFIT OBLIGATION 2018 2017

Rs Rs

Provision for Unutilised Sick Leave Pay 30,929,187

29,126,636

Provision for vacation leave pay 30,916,537

31,122,376

Passage benefit 7,996,023

9,687,099

Provision for Retirement pension and gratuity

231,612,002

243,890,918

301,453,749

313,827,029

Current Liabilities 3,363,764

12,064,222

Non-Current Liabilities 298,089,985

301,762,807

Provision for retirement benefit includes provision for unutilised vacation leave, provision for bank of sick leave and provision for compassionate allowance payable on retirement to eligible employees.

Amounts recognised in balance sheet at end of period/year:

Defined benefit obligation 334,115,537 328,781,243

Fair value of plan assets ( 103,501,765 ) ( 86,731,509 )

Liability recognised in statement of financial position at end of year

230,613,772 242,049,734

Amounts recognised in income statement:

Service cost:

Current service cost 8,542,422 8,418,882

Past service cost 0 0 (Employee contributions) ( 3,758,170 ) ( 3,667,237 )

Fund Expenses 225,463 224,701 Net Interest expense/(income) 16,059,967 14,752,256

Profit Loss Charge

21,069,682 19,728,602

Re-measurement:

Liability (gain)/loss ( 10,459,467 ) 11,136,751

Assets (gain)/loss ( 2,388,903 ) ( 1,024,865 )

Total Other Comprehensive Income (OCI) recognised ( 12,848,370 )

10,111,886

Total 8,221,312

29,840,488


101

15 EMPLOYEE RETIREMENT BENEFIT OBLIGATION 2018 2017

Rs Rs

Movements in liability recognised in balance sheet:

At start of period/ year 242,049,734 231,585,464

Amount recognised in P&L 21,069,682 19,728,602

(Actuarial Reserves transferred in) ( 104,094 ) 0

(Employer Contributions) ( 7,514,994 ) ( 7,333,153 )

(Direct benefits paid by Employer) ( 12,038,186 ) ( 12,043,065 )

Amount recognised in OCI ( 12,848,370 ) 10,111,886

At end of period/year 230,613,772

242,049,734

Actual return on plan assets: 5,738,673 5,738,673

The plan is a defined benefit arrangement for the employees and it is funded only for pensionable service as from 1 July 2008. The assets of the funded plan are held independently and administered by The State Insurance Company of Mauritius Ltd.

Reconciliation of the present value of defined benefit obligation

Present value of obligation at start of period/year 328,781,243

303,088,258

Current service cost 8,542,422

8,418,882

Interest cost 22,192,734

19,700,737

(Benefits paid) ( 14,941,395 )

( 13,563,385 )

Liability (gain)/loss ( 10,459,467 )

11,136,751

Present value of obligation at end of period/year 334,115,537

328,781,243

Reconciliation of fair value of plan assets

Fair value of plan assets at start of period/year 86,731,509

71,502,794

Expected return on plan assets 6,132,767

4,948,481

Employer contributions 7,514,994

7,333,153

Employee contributions 3,758,170

3,667,237

Actuarial Reserves transferred in 104,094

0

(Benefits paid, Assurance, Fees and Other Outgoings) ( 3,128,672 )

( 1,745,021 )

Asset gain/(loss) 2,388,903

1,024,865

Fair value of plan assets at end of period/year 103,501,765

86,731,509


102

15 EMPLOYEE RETIREMENT BENEFIT OBLIGATION

Components of the amount recognised in OCI

Distribution of plan assets at end of period/year

Percentage of assets at end of year 2018 2017

Fixed Interest Securities and cash 59.50%

56.60%

Loans 3.70%

4.40%

Local equities 14.60%

15.80%

Overseas bonds and equities 21.60%

22.60%

Property 0.60%

0.60%

Total 100% 100%

Additional disclosure on assets issued or used by the Council

Percentage of assets at end of period/year (%) (%)

Assets held in the entity's own financial instruments

-

-

Property occupied by the entity

-

-

Other assets used by the entity

-

-

RS RS

Asset experience gain/(loss) during the period/year 2,388,903

1,024,865

Liability experience gain/(loss) during the period/year 10,459,467

( 9,704,794 )

12,848,370

(8,679,929)

Year

2018-19

Expected employer contributions (RS)

7,914,504

Weighted average duration of the defined benefit obligation

13 years

(Calculated as a % change in PV of liabilities for a 1% change in discount rate)


103

The plan is exposed to actuarial risks such as : investment risk, interest rate risk, longevity risk and salary risk. The risk relating to death in service benefits is re-insured.

The cost of of providing the benefits is determined using the Projected Unit Method. The principal assumptions used for the purpose of the actuarial valuation were as follows:

2018

2017

Discount rate 6.75% 6.50%

Future salary increases 4.00% 4.00%

Future pension increases 3.00% 3.00%

Mortality before retirement A 6770 Ultimate Tables

Mortality in retirement

PA (90) Tables rated down by two years

Retirement age As per Second Schedule of Statutory Bodies Pension Funds Act

The discount rate is determined by reference to market yields on bonds.

Significant actuarial assumptions for determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based reasonably on possible changes of the assumptions occurring at the end of the reporting period. - If the discount rate would be 100 basis points (one percent) higher (lower), the defined benefit obligation would decrease by Rs 38.8 M (increase by Rs 47.6 M) if all other assumptions were held unchanged.

- If the expected salary growth would increase (decrease) by 100 basis points, the defined benefit obligation would increase by Rs 19.7 M (decrease by Rs 17.3 M) if all assumptions were held unchanged.

- If life expectancy would increase (decrease) by one year, the defined benefit obligation would increase by Rs 9.1 M (decrease by Rs 9.1 M) if all assumptions were held unchanged.

In reality one might expect interrelationships between the assumptions, especially between discount rate and expected salary increases, given that both depends to a certain

16 WORK-IN-PROGRESS 2018

2017

Opening balance as at 01 July

14,827,042

1,948,290

Add: Additional work-in-progress

2,413,560

14,753,396

Less: Project completed and released to property, plant and equipment

( 14,675,881 )

( 1,874,644 )

Closing work-in-progress

2,564,721

14,827,042


104

17 RESERVES

Balance at Start 9,805,253

19,406,148

Land Revaluation Reserve 23,169,865 -

Employees Retirement Reserve 12,848,370 ( 10,111,886 )

Passage Fund 286,752

510,991

Balance at Close 46,110,240

9,805,253

Reserves on the above items will not be re-classified subsequently to Surplus Or Deficit and they will be used for specific purpose.

18 Trade fees

Annual trade fee received 20,634,350

27,760,850

Occasional trade fee received 35,000

46,500

20,669,350

27,807,350

19 Fines, Penalties and Levies

Surcharge on late payment of trade fee 745,750

925,950

Surcharge on bus toll 27,350

-

773,100

925,950

20 Public Contributions and Donations

Street Lantens Network 2,460,760

666,700

Sponsorship and donations in Kind -

2,460,760

666,700

Unspent balance at beginning of year 1,335,317

1,001,967

Current year receipts 2,460,760

333,350

Conditions met - Transferred to Revenue -

-

Conditions to be met - Deferred Revenue ( Liabilities )

3,796,077

1,335,317


105

21 Government Grant

Grant-in-aid 202,374,750

177,168,260

Project Related Revenue Grant 6,131,698

950,000

Project Related Capital Grant 128,986,846

59,350,003

Grant in Kind 4,904,796

-

342,398,091

237,468,263

Conditions attached to grant not met - Defferred Liabilities

(1,432,978)

-

Grant recognised as revenue in surplus / ( deficit )

340,965,113

237,468,263

The Council has changed its accounting policy in relation to government grant. Government grant comprises of gross inflows of economic benefits received and receivable, both of recurrent and capital nature. A liability has also been recognized in respect of the condition attached to the grant and related revenue will be recognized in the period the condition is satisfied.

2018

2017

22 Other Non-Exchange Revenue RS RS

Advertising Fee 1,633,060 1,654,425

Donation to the Council - 150,000

Road obstruction fee 244,000 136,000

1,877,060 1,940,425

23 Rent Income

Market Stall Fee 4,977,600 5,038,800 Rental Income

583,420

406,710 5,561,020 5,445,510

24 Finance Income

Investment income 545,615 510,991

Interest on advance car loan to staff 93,976 172,834

639,591 683,825

25 Other Exchange Revenue

School Fee 97,200 100,800

Bus Toll 1,212,300 1,113,800 Burial & Incineration Fee 782,050 697,000 Other 38,709 1,227,586 2,130,259 3,139,186


106

26 Compensation of Employees

Basic Salary and Salary Compensation 81,386,410 74,155,386

Overtime and Allowances 6,855,795 6,501,369

Uniform and Protective Equipment 1,624,539 1,931,759

Councillor's Allowance 4,351,597 4,311,880

Retirement benefits 12,527,289 11,596,185

Provision for Passage Benefit 2,986,893 3,471,654

Travelling and Transport 12,037,826 9,716,754

Training Cost 74,479 57,522

Provision for Unutilised Sick pay 6,626,648 1,387,985

End of Year Gratuity 8,297,658 6,255,018

Staff Welfare 184,897 149,770

136,954,030 119,535,282

2018

2017

27 Utilities RS RS

Electricity 24,017,575

22,339,948

Water 648,168

579,268

Gas 1,444,214

945,266

Telephone 562,038

674,510

26,671,995

24,538,992

28 Motor Expenses

Fuel and Oil 2,505,796

1,717,151

Repairs and Maintenance 1,337,577

1,482,132

Road tax and Insurance -

-

3,843,373

3,199,283


107

29 Repairs and Maintenance

Building, Village Halls and other Structure 549,319

336,380

Furniture, Fittings and Equipment 774,122

1,020,137

Roads and Traffic Sign 2,319,662

1,439,099

Street Lighting Networks 1,020,217

1,094,776

Sport and leisure facilities 203,579

26,212

Public Infrastructure and Community Assets

1,024,227

1,052,041

Cemetries, Incinerators and Cremation Grounds

546,317

455,966

Other repair and maintenance 286,049

743,327

6,723,492

6,167,938

30 Cleaning Services

Hired Scavenging Services 47,007,600

21,361,769

Hired of Cleaning Equipment 318,900

215,218

Cleaning of Public Toilets 396,580

339,360

Cleaning of Drains, Rivers and Bareland 1,698,942

1,149,813

Other ( Rodent, E-Waste, Bulky Waste, Bins, tools, cleaning hired

equipment etc )

762,331

861,060

50,184,353

23,927,220

31 Grants and Subsidies

Grant to Village Councils 10,656,342

13,355,951

Grant to NGO's and Socio-Cultural Groups

250,000

166,324

Grant to Sport Organisations 74,800

21,500

Financial and Social Aid 99,175

65,219

Contribution to ADC and ICLEI 254,040

150,000

11,334,357

13,543,775

Annual contribution of Rs 150,000 to the Association of District Councils ( ADC ) and the annual subscription of 3,000 USD to the International Council for Local Environment Initiatives (ICLEI)


108

2018 2017

32 Professional and Legal Fees RS

RS

Audit fee 200,000

200,000

Legal fee 3,721,656

11,335,525

Professional and Consultancy fee 161,000

-

4,082,656

11,335,525

33 FINANCE COSTS

Loan Interest 681,450

808,900

Other Interest 438,634,098

-

439,315,548

808,900

Two long term loans of Rs 42 M and Rs 13 M contracted form two commercial banks were purchased back by the Central Government and Council is required to pay back the capital together with the interest computed at the rate of 5% per annum. At its meeting of 31 December 2018 the arbitrator made a final award to Alphamix Ltd for the payment of interest on the capital of Rs 72.9 Million. Interest payble as at 03 February 2019 amount to Rs 438,634,098.

34 Other Goods and Services

Printing, Postage & Stationery 1,194,646

1,230,668

Press Notice and Publications 208,803

148,711

Books and Periodicals 223,945

234,179

Committee expenses 153,074

207,742

Entertainment and Hospitalities 90,085

98,701

Bank charges and fee 57,732

65,034

Security services 1,331,700

1,326,240

General Insurance 234,190

933,359

Rent payable 120,000

119,500

Organisation of Activities Note 35

2,914,848

5,102,083

Overseas Travelling and Allowances 300,000

149,461


109

Sundry Expenses 171,061

2,893

Provision for write-off 942,116

-

Other Office Incidentals 20,161

-

7,962,362

9,618,571

An interim award of Rs 72,921,570 million plus VAT was awarded to Alphamix Ltd by the arbitrator on the 23 September 2016.

Provision of Rs 942,116 has been made to write-off obsolete and fictitious stock items.

35 Organisation of Activities

Organisation of Social and Welfare Activities

387,205

589,812

Organisation of Cultural and National Activities

1,869,515

645,793

Organisation of Sport and Leisure Activities

466,503

3,804,492

Twinning Activity 140,759

31,932

Educational Activity 50,866

30,054

2,914,848

5,102,083

36 RELATED PARTY DISCLOSURES

(a) Local Authorities ( including District Councils ) are controlled by the Ministry of Local Government.

(b) Related party disclosures have not been made for transactions with related party that are:

(i ) Within a normal supplier or client/recipient relationship,

( ii ) Transactions with the Ministry, Central Government and other government agencies are not disclosed as related party

transactions when they are on normal terms and conditions consistent with the normal operating arrangement between

government agencies.

(iii) The Central Government is excluded from the disclosure requirement given that the Council is financially and economically

dependence on the government grant.

(iv) Village Councils falling under jurisdiction of the District Council are excluded on the basis that they are financially dependent

on the latter.


110

(C ) Key Management Personnel Compensation

The key management personnel are the members of Council or Board of Councillors, who together constitute the governing

body of the District Council and any other persons having the authority and responsibility for planning, directing and controlling

the activities of the Council.

2018 2017

Rs Rs

Chairperson of District Council 586,839

539,682

Vice-Chairperson 302,615

288,567

Executive committee members 937,050

982,344

Permit and Business Monitoring Committee Members ( PBMC )

168,210

168,210

District Councillors 2,719,833

2,745,158

Remuneration of Councillors 4,714,547

1,978,803

Chief Executive 1,380,890

1,333,400

Head of Departments & Deputy Chief Executive

5,299,307

4,622,828

11,394,744

7,935,031

The Executive Committee is responsible for the approval of procurement of goods and service for values above Rs100,000 subject to the procedures and exceptions laid in section 160 of the Local Government Act 2011.

The PBMC is responsible for the determination and approval of Online Planning Permissions and Building and Land Use Permits.

37 COMMITMENTS

(i) Preferencial loan from the Central Government

Government loan of Rs 43 M was granted payable over 20 years semi-annually starting on 25 December 2012 in equal instalments, together with 5% interest per annum payable as from 26 June 2009 semi-annually until 30 June 2032. Payment is deducted at source, ie, at the Accountant-General Office.

Payment due within one year 1,605,450

1,651,650

Payment due within two to five years

7,334,250

7,565,250

Payment due later than five years 10,291,050

11,665,500

19,230,750

20,882,400


111

(ii) Council as lessor Future minimum lease income under non-cancellable operating leases

Due within one year 200,000

200,000

Due within two and three years 400,000

400,000

600,000

600,000

The land and building at Pereybere Beach was let to be used as restaurant for a period of three years and renewable under the provision in the Local Government Act 2011. The property is maintained by the tenants at no cost to Council.

37 COMMITMENTS - CONTINUED

(iii) Capital Commitments

Approved but not yet contracted:

Public Infrastructure 296,700,000 299,000,000

Approved and Contracted

Public Infrastructure 29,842,189 18,427,500

Total Capital Commitments 326,542,189 317,427,500

A special grant of Rs 276 Million was approved under the Local Development Project for the construction of a new market fair including a traffic centre at Belmont, Goodlands. International bidding exercise has been launched.

Fund was approved and contracts were awarded for the construction of roads, drains and lighting of football ground for the value of Rs 29.8 Million under the Local Development Project.

38 CONTINGENCIES

The Council is a defendant in several legal actions involving the non-issue of building and land use permit, cases on illegal construction, for the non-payment of trade fee and bus toll.

The entity has contingent liability in respect of legal claim arising out of the arbitration final award issued on 31 December 2018. The contingent liability amount to 3.5 % on the amount of Rs 72,921,570 as from the date of balance sheet up to the date of final settlement. In January 2019 Council made an application to the supreme court to quash " Recours en Annulation"the award made by the arbitrator.

39 EVENTS AFTER REPORTING DATE

As at the date of approval of the financial statements no such post balance sheet even was known which may materially affect the financial reporting and the fair and true view of the financial statements with the exception of the above contingencies.


112

40 COMPARATIVE INFORMATION

Certain comparative figure and numbers were re-classified to confirm to the current year presentation. Such re-classification has no effect on the previously reported surplus or deficit or the equity of the Council.

41 APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements were approved by the full council and authorised for its issue at its meeting of 22 February 2019.

annual report for period july 2017 to june 2018 – the ...annual report for period july 2017 to...

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