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Municipality of Veles Financial reports for the year ended on December 31, 2008 and independent auditors report
December, 2009
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Table of Contents INDEPENDENT AUDITORS’ REPORT ................................................................................................ 3
STATEMENT OF COMPARAISION OF BUDGET AND ACTUAL AMMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2008 ...................................................................................................................... 5
STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS OF MUNICIPALITY FOR THE YEAR ENDED ON DECEMBER 31, 2008 ...................................................................................................................... 6
UNCONSOLIDATED STATEMENT OF CASH RECIEPTS AND PAYMENTS FOR YEAR ENDED DECEMBER 31, 2008 ........................................................................................................................................ 7
Notes ................................................................................................................................................ 9
1. Reporting entity ..................................................................................................................... 9
2. Basis of preparation ............................................................................................................. 10
3. Authorization date ............................................................................................................... 11
4. Property, plant and equipment ............................................................................................ 11
5. Account receivables ............................................................................................................. 12
6. Receivables from employees ................................................................................................ 12
7. Cash and equivalents ........................................................................................................... 13
8. Public equity ........................................................................................................................ 13
9. Accounts payable ................................................................................................................. 13
10. Property tax ..................................................................................................................... 14
11. Communal fees ................................................................................................................ 14
12. Penalties/Fines ................................................................................................................. 15
13. Administrative fees .......................................................................................................... 15
14. Rent ................................................................................................................................. 15
15. Physical planning fees ...................................................................................................... 16
16. Other cash receipts .......................................................................................................... 16
17. Personal income tax ......................................................................................................... 16
18. Revenue from Value Added Tax (VAT) .............................................................................. 17
19. Transfers from other government levels........................................................................... 17
20. Transfers from funds budget ............................................................................................ 17
21. Transfers from previous year............................................................................................ 17
22. Transfer for specific purpose ............................................................................................ 18
23. Sell of property, plant and equipment .............................................................................. 18
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24. Transfers for property, plant and equipment from fund budgets ...................................... 18
25. Concession land and intangible assets .............................................................................. 18
26. Donations ........................................................................................................................ 19
27. Wages, salaries, remunerations and employee benefits ................................................... 19
28. Supplies and consumables................................................................................................ 20
29. Communal, heating, communication and other services................................................... 21
30. Repairs & Maintenance .................................................................................................... 21
31. Legal, planning and other professional fees and services .................................................. 21
32. Other ............................................................................................................................... 22
33. Grants .............................................................................................................................. 22
34. Other transfers................................................................................................................. 23
35. Payments for specific purposes ........................................................................................ 23
36. Donations ........................................................................................................................ 25
37. Construction of plant and equipment ............................................................................... 26
38. Purchase of equipment .................................................................................................... 26
39. Reimbursement for property confiscation ........................................................................ 26
40. Forced debt payment ....................................................................................................... 26
41. Specific purpose account .................................................................................................. 27
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Effect plus audit firmЕ- :mail [email protected]. K J Pitu No. 26 l.3 , 1000 Skopje, Republic of Macedonia Phone: (+389 2) 2465-243; 2464-789
Faks: (+389 2) 2401-372
INDEPENDENT AUDITORS’ REPORT To the Honorable Major of municipality Veles
and the municipality Council
We have audited the accompanying financial statements (page 5 to 27) of Municipality of Veles (hereinafter referred to as the Municipality), which comprise the unconsolidated statement of cash receipts and payments and statement of comparison of budget and actual amount for the year ended on December 31, 2008, Balance sheet as of December 31, 2008 and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International public sector accounting standards and Macedonian law on accounting for budget and budget users. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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Opinion
In our opinion in the financial statements are presented fairly, in all material respects the cash receipts and payments for the year ended on December 31, 2008 and financial position as of December 31, 2008 in accordance with the Macedonian Law on Accounting for Budget and Budget Users and International Public Sector Accounting Standard: Financial reporting under the cash basis of accounting.
Skopje, 10.12.2009
Audit firm, Effect plus
Stamen Stojanoski, certified auditor Miov Nikolaki, certified auditor
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STATEMENT OF COMPARAISION OF BUDGET AND ACTUAL AMMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2008
For 2008 (in thousands of denars)
Beginning budget
Final rebalanced budget
Difference between
beginning budget and final
rebalanced budget Actual (realized)
amounts
Difference between final rebalanced
budget and (actual) realized amounts
Realization percentage
CASH INFLOWS
Taxation 117.163 103.159 14.004 71.952 31.207 70%
Inflows other than taxation 49.604 49.644 (40) 37.857 11.787 76%
Proceeds from disposal of plant and equipment 10.400 25.730 (15.330) 17.152 8.578 67%
Transfers from other government levels 346.480 369.144 (22.664) 364.811 4.333 99%
Foreign donation 2.005 2.005 0 1.911 94 95% Total cash inflows 525.652 549.682 (24.030) 493.683 90% 55.999
CASH OUTFLOWS
Municipality council (8.701) (8.425) (276) (4.326) (4.099) 51% Office of the Mayor (1.697) (2.223) 526 (1.875) (348) 84%
Municipality administration (32.720) (33.576) 856 (31.042) (2.534) 92% Capital expenditures (6.000) (21.264) 15.264 (17.918) (3.346) 84%
Fire protection (12.269) (12.269) 0 (11.268) (1.001) 92% Education (294.845) (299.829) 4.984 (280.984) (18.845) 94%
Culture (23.858) (24.405) 547 (17.827) (6.578) 73% Social welfare (42.551) (43.830) 1.279 (43.308) (522) 99%
Sport and recreation (4.473) (5.273) 800 (3.370) (1.903) 64% Support of local development (13.458) (13.458) 0 (9.511) (3.947) 71%
Physical planning (22.080) (20.760) (1.320) (10.551) (10.209) 51% City cleaning service (62.510) (63.830) 1.320 (49.597) (14.233) 78%
Green care (490) (490) 0 (272) (218) 56% Local self-government
(50) 50 (50) 0 100%
Total cash outflows (525.652) (549.682) 24.030 (481.899) (67.783) 88%
Net cash flows 0 0 0 11.784 (11.784)
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STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS OF MUNICIPALITY FOR THE YEAR ENDED ON DECEMBER 31, 2008
(in thousands of denars)
notes
2008 (audited)
2007 (unaudited)
Assets
Noncurrent assets
326.613 286.574
Property, plant and equipment 4 326.613 286.574
Current assets
30.059 31.737
Accounts receivable 5 24.752 17.046
Written off receivables
(1.687) (1.687)
Employee receivables 6 254 144
Cash and cash equivalents 7 6.740 16.234
Total assets 356.672
318.311
Net assets and liabilities
Net assets
350.958 313.933
Public equity 8 206.376 207.845
Unpaid expenses
(5.714) (4.412)
Receivables and amounts transferred to next year
150.296 110.500
Current liabilities
5.714 4.378
Account payable 9 2.690 1.572
Liabilities for salaries
2.248 1.986
Advances
776 820
Total net assets and liabilities 356.672
318.311
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UNCONSOLIDATED STATEMENT OF CASH RECIEPTS AND PAYMENTS FOR YEAR ENDED DECEMBER 31, 2008
(in thousands of denars)
note 2008 2008 2007 2007
Receipts
controlled by municipality
Receipts not controlled by municipality
Receipts controlled by municipality
Receipts not controlled by municipality
Receipts
Revenue under direct control of municipality
71.131 34.656 70.663
Property tax
28.849
10 26.302
30.192
Communal fees 11 41.379
36.335
Fines/Penalties 12 110
Taxes and charges 13 1.189 34.637 1.191 28.849 Rent 14 62
792
Physical and urban planning
fees 15 202
226
Other 16 1.887 19 1.927
Revenue through central government
366.137 2.696 150.318
Personal Income Tax
1.873
17 4.022
4.468
Value-added tax 18 24.282
21.149
Current transfers 19 1.209
6.242
Transfers from funds budgets 20 13.622 2.696 9.584 1.873
Transferred from previous year
21 15.452
3.093
Transfers for specific purpose 22 307.550
105.782
Proceeds from disposal of plant and equipment
0 17.152 0 2.329
Sell of property, plant and equipment
23 16.530
739
Transfers for property, plant and equipment from fund
budgets 24 -
1.226
Concession for land and intangible assets
25 622
364
Donations
1.911
1.256 Donations 26 1.911
1.256
Total 456.331 37.352 224.566 30.722
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(in thousands of denars)
Note 2008 2008 2007 2007
Receipts
controlled by municipality
Receipts not controlled by municipality
Receipts controlled by municipality
Receipts not controlled by municipality
Payments Operations
(76.954) (30.207) (63.796)
Wages, salaries and employee benefits
(26.757)
27 (21.053)
(18.996)
Supplies and consumables 28 (4.222) (15.251) (2.932) (13.975)
Communal, heating, communication and other
services 29 (16.143) (2.607) (13.043) (2.622)
Repairs & Maintenance 30 (17.296) (1.339) (15.258) (1.672)
Legal, planning and other professional fees and
services 31 (12.733) (9.967) (8.691) (7.208)
Other 32 (5.507) (1.043) (4.876) (1.280) Transfers
0 (310.387) 0 (110.075)
Grants 33 (311)
(348)
Other transfers 34 (3.922)
(3.469)
Payments for specific purposes
35 (304.667)
(105.008)
Donations 36 (1.487)
(1.250)
Capital Expenditures
(62.145) (2.101) (34.364) Construction of plant and
equipment
(1.269)
37 (52.661)
(29.809)
Purchase of plant and equipment
38 (9.452) (2.101) (4.537) (1.269)
Fee for property confiscation
39 (32)
(18)
Legal proceedings
0 (105)
(97) Forced debt payment 40 (105)
(97)
Total payments
(449.591) (32.308) (208.332)
(28.026)
Increase/(Decrease) in Cash
6.740 5.044 16.234 2.696
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Notes
1. Reporting entity
Local self-government unit Municipality Veles (here and after Municipality) is established
and the Municipal territory is regulated under Law on the Local Self Government (Official gazette of Republic of Macedonia No 55/04).
Municipality has own coat of arm, flag, anthem, official symbol and mascot.
The territory of the municipality comprises the settlement areas, the town of Veles and the villages: Basino selo, Belestevica, Buzalkovo, Vetersko, Gorno Kalaslari, Gorno Orizari, Ivankovci, Karabuniste, Krusje, Kumarino, Lugunci, Mamutcevo, Novacani, Novo Selo, Oraovec, Otovica, Rastani, Rlevci, Rudnik, S’lp, Slivnik, Sojaklari, Sopot, Crkvino, Chaloshevo I Dzidimirci. The municipality structure is as follows: The Mayor of the Municipal Municipal Council
The following commissions has been established by the municipal Council: Commission for financing, budget and local economy development Commission for urban planning, communal activities and environmental
protection Commission for public activities Commission for statute and regulation Commission for mandatory question, elections and nomination Commission for sexuality equality Commission for youth and sport
Separate departments of the Municipal Consumer protection council Participative department for urban planning Commission for Inter-Community relation
The unconsolidated financial reports presents the financial aspect of the Municipality core
activities without activities of other legal persons - budget users ( performing culture, sport and recreation, children protection, education, health care) and enterprises owned or controlled by the Municipality. The cash receipts and payments compromising the financial report have been made through following treasury accounts:
• Budget account • Functional account • Account for transfers for specific purpose (930) • Account for transfers for specific purpose (937) • Separate accounts for donations • Deposit account • Grant account
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The financial activities of the Municipality are governed by the Law on Financing of Units of Local Self-Government (Official gazette of Republic of Macedonia No 61/04, 96/04 and 22/07).
Municipality Council
The Municipal council consist 23 represents of citizen. At this time this function is entrusted to the Mr. Sasko Chadiev.
The Mayor of the Municipality
The mayor of the municipality for the period that audit covers is the Honorable Mr. Ace Kocevski. From April, 2009 this function is entrusted to the Honorable Mr. Goran Petrov.
Address of the Municipality
Municipality head office is in Veles on Panko Brasnar Street, 1;
Phone: +389 (0)43 232-406 Fax: +389 (0)43 232-966
2. Basis of preparation
The accounting in the Municipality is based on the legal framework compromising Law on accounting, Rulebook on chart of accounts for Budget and Budget Users, Rulebook on contents of Accounts in Chart of Accounts for Budget and Budget Users and Rulebook on Implementation of International Public Sector Accounting Standard: Financial Reporting under the Cash Basis of Accounting. Cash basis means a basis of accounting that recognizes transactions, expenses and revenues, and other events only when cash is received or paid. The accounting policies have been applied consistently through the period. Accounting policies
Cash flows are inflows and outflows of cash. Cash payments are cash outflows. Cash receipts are cash inflows. Cash compromises cash on hand, demand deposits and cash equivalents. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Control of cash arises when the Municipality can use or otherwise benefit from the cash in pursuit of its objectives and can exclude or regulate the access of others to that benefit. External Assistance means all official resources which the recipient can use or otherwise benefit from in pursuit of its objectives. Fixed assets are recognized as capital expenditures and in the same time accounted in the balance sheet as assets and on account for net assets. Depreciation is calculated and accounted as lowering the present value of assets and account of net assets.
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Accrued, not paid expenses and liabilities are reported in balance sheet with lowering the net assets. Reporting currency
Reporting currency is denar as currency of Republic of Macedonia. Unless otherwise stated all amounts are in thousands of denars.
3. Authorization date Initial authorization of the financial statements for publication has been on February, 2009.
This audited financial statements, together with reclassifications and encouraged disclosures were authorized on ___________.
4. Property, plant and equipment
Description Patents, licence, concession and
other legal rights Equipment Buildings and
property Investment in progress Total
Historical cost Balance on January 1, 2008 324 36.457 254.441 78.729 369.951 Increase for the year 612 12.968 545 41.508 55.633 Disposal - (751) (7.210) - (7.961) Balance at 31.12.2008 936 48.674 247.776 120.237 417.623 Depreciation Balance on January 1, 2008 - 15.152 68.226 - 83.378 Depreciation. 114 4.644 6.102 - 10.860 Disposal - (581) (2.647) - -3.228 Balance at 31.12.2008 114 19.215 71.681 0 91.010
At 31.12.2008 822 29.459 176.095 120.237 326.613
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Description Patents, licence, concession and
other legal rights Equipment Buildings and
property Investment in progress Total
Historical cost Balance on January 1, 2007 0 31.515 227.630 60.823 319.968 Increasing among year 324 5.411 26.811 17.906 50.452 Disposal - (469) - - (469)
Balance at 31.12.2007 324 36.457 254.441 78.729 369.951 Depreciation Balance on January 1, 2007 - 12.578 57.315 69.893 Depreciated amount - 2.574 10.911 13.485 Disposal - 0 Balance at 31.12.2007 0 15.152 68.226 0 83.378
At 31.12.2007 324 21.305 186.215 78.729 286.573
5. Account receivables The total calculated receivables for the 2008 are:
Description 2008 2007 Property tax 7.909 3.076 Property sales tax - -
Communal agreement 107
3.115
Tax on inheritance and gift - - Communal appeal 922 922 Rents appeal 1.276 - Modification and complementation on GUP 89 89 Communal fee for posting a sign of the firm 13.966 8.823 Other receivables 238 169 Usage of public area in front of stores 233 170 Communal fee for usage of music in public areas 9 -
Communal fee for ecological permission 3
2
Total receivables 24.752 16.366
6. Receivables from employees The receivables are for Verna cards for fuel and for 2008 are amounting 254 thousand denars [2007: 144 thousand denars].
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7. Cash and equivalents Cash and equivalents are keeping on the Municipality bank accounts and their balance on 31.12.2008 is amounting:
Description 2008 2007
Budget treasury account 3.433 15.453 Specific purpose treasury account 2.883 774
Grant account 241
6
Account for donations 183 - Total cash and equivalents 6.740 16.233
8. Public equity The Public equity is consisted from the following components:
Description 2008 2007 Patents, licences, concessions and similar rights 822 324 Equipment 29.459 21.305 Property and plants 176.095 186.216 Total public equity 206.376 207.845
The amount has been adjusted for receivables and unpaid expenses for disclosure of the amount of the net assets.
9. Accounts payable The total accounts payable for 2008 are amounting 2.690 thousand denars [2007: 1.606 thousand denars].
Description 2008 2007
Electrodistribucija 1.396 1.021 JKP Derven 407 70 Trgosped 358 - Geobiro V-B DOO 125 - T-mobile 86 - Delta Prom 86 - Makedonski telekom AD 40 50 Makedonska Posta 39 43 Snupi 38 - Plus Produkcija 22 - TV Kanal 21 21 34 Flora Dizajn 15 - Cosmofon 13 10 Pan Promet 13 - Other 31 378 Total accounts payable 2.690 1.606
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10. Property tax Legal base for property tax is Law on Property Tax (Official gazette of Republic of Macedonia No 61/04 92/07 and 102/08).
Cash receipts for property tax in 2008 were as follows:
Description 2008 2007
Property sales tax 15.423 24.723 Property tax 9.725 4.857 Tax on inheritance and gift 1.154 612 Total property tax 26.302 30.192
11. Communal fees
Legal base for communal fees is Law on Communal fees (Official gazette of Republic of Macedonia No 61/04 64/05 and 92/07) together with tariff on communal fees adopted by Municipality.
Legal base for communal fee for physical planning is Program on Spatial and Urban Planning together with an established fee for this purpose.
Legal base for sojourn tax is Law on sojourn tax (Official gazette of Republic of Macedonia No. 19/96, 26/02, 51/03 and 88/08) and according to article 8 from this Law to the Municipality is delivered 80% from the receivables materialized on the Municipality territory.
Description 2008 2007 Communal fee for maintenance of city lights 22.686 13.520 Communal fee for construction land development 8.508 11.082 Communal fee for posting a sign of the firm 5.950 6.396 Communal fee for street usage for trucks 1.861 2.098 Communal fee for posting a commercial, announce and advertisement on public areas
893 1.466
Communal fee for usage of square and other public areas
782 861
Other communal fees 459 561 Communal fee for weddings and protocol 149 333
Sojourn tax 64
8 Communal fee for usage of music in public areas 27 10 Total communal fees 41.379 36.335
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12. Penalties/Fines
Penalties have been collected as result of wast management and for 2008 are amounting 110 thousand denars.
13. Administrative fees Legal base for communal fees is Law on Administrative fees (Official gazette of Republic of
Macedonia No 17/93, 20/96, 7/98, 13/2001, 24/2003, 19/2004, 61/2004, 95/2005, 70/2006, 92/2007). Administrative fees are to be paid for the acts and actions in the administrative operations as well as other submissions and actions of the Municipality administration as stipulated in Article 37 of the above mentioned Law.
In Administrative fees for acts of Municipality are included fees for building permits for construction, urban plan copy, appeals, property list, communal fees and other administrative fees.
In administrative fees for license for catering services are included receipts for carrier licenses and one license for cabaret.
In accordance with article 21 (Official gazette of Republic of Macedonia No.62/06) for getting license the caterer has to pay fee for offering services. The cash receipts for license are divided 50% for the central government Budget and 50% for the Municipality Budget.
Description 2008 2007
Administrative fees for acts of Municipality 1.050 765 Administrative fees for license for catering services 139 426 Total administrative fees 1.189 1.191
14. Rent
Municipality is renting part of the premises and equipment. The result in cash receipts in 2008 is following:
Description 2008 2007
Rent of the premises 56 791
Rent of the equipment 6
1 Total rent 62 792
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15. Physical planning fees
Physical planning is one of the shared jurisdictions with Central Government. Legal base for physical planning fees is Law on The Law on Spatial and Urban Planning (Official gazette of Republic of Macedonia No 51/05) and is part of the procedure for obtaining building permit. The amount of 0,3% of average salary in Republic of Macedonia is divided 30% for the central government and 70% for the Municipality.
Cash receipts from physical planning fees for 2008 are amounting 202 thousand denars [2007: 226 thousand denars].
16. Other cash receipts
In other cash receipts are included: 2% from motor vehicles insurance from insurance companies for insurance from fire accidents and motor vehicle insurance; other cash receipts directly paid on the Budget account (fees for excavation, legal fees, donations from companies, taxi stickers and other unmentioned fees) and receipts from written off receivables.
Description 2008 2007 2% from motor vehicles insurance 847 1.385 Other cash receipts 848 482 Written off receivables 192 60 Other cash receipts 1.887 1.927
17. Personal income tax
In accordance with Law on personal income tax (Official gazette of Republic of Macedonia No 80/93, 70/94, 71/96, 28/97, 8/2001, 50/2001, 2/2002, 44/2002, 96/2004, 120/2005, 52/2006 и 139/2006) and Law on Financing of the local self-governments (Official gazette of Republic of Macedonia No 61/04,96/,04 and 67/07) 3% of personal income tax and 100% of physical persons engaged in handicraft activities paid on the territory of the Municipality where they are permanent residents is revenue of the Municipality. The collection and payment is made through Public Revenue Office.
Description 2008 2007
Personal income tax from the salaries from juridical persons with private equity
2.772 3.168
Personal income tax from the salaries from juridical persons with public equity
1.136 1.186
Personal income tax from physical entities in handicrafts
100 114
Personal income tax from handicrafts - lump sum 14 -
Total personal incom tax 4.022 4.468
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18. Revenue from Value Added Tax (VAT)
3% of the VAT collected in previous year is transferred to Municipalities based on criteria stipulated in Methodology for allocation of revenue from VAT by municipalities for year 2008 (Official gazette of Republic of Macedonia No 82/07). The amount of 24.282 thousand denars [2007: 21.149 thousand denars ] has been received in 12 monthly installments .
19. Transfers from other government levels
Current transfers from other government levels represent cash receipts for organizing Bosniaks meeting, organizing festival for Antique drama and Racin meetings
Description 2008 2007
Ministry of environment and physical planning 254 - Ministry of culture 800 600 Other 155 5.642 Total transfers from other government levels 1.209 6.242
20. Transfers from funds budget
According to the Decision No.09-1053/1 from 21/04/2006 for division on assets for financing under Annual program for construction, reconstruction, maintenance and protection on regional roads from State road Agency, the Municipality received cash in amount 13.622 thousand denars[2007: 9.584 thousand denars].
21. Transfers from previous year
Transfers from previous year are amounting 15.452 thousand denars [2007: 3.093 thousand denars].
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22. Transfer for specific purpose
In accordance with article 10 on Law on Financing of the local self-governments (Official gazette of Republic of Macedonia No 61/04, 96/04 and 67/07) transfers for specific purpose has been made by the Ministry of Finance based on proposal by the Line Ministries for funding the specific activity of Municipality.
In 2008 following transfers for specific purpose has been received:
Description 2008 2007
К1 Library 3.691 1.036 К3 Museum and cinema activities 5.923 1.966 М1 Social welfare - day-care of pre-school children 31.351 11.807 N1 Elementary school 166.393 55.184 N2 High schools 89.714 25.479 W0 Fire protection 9.705 9.039 Transfers from previous year 773 1.271 Total 307.550 105.782
23. Sell of property, plant and equipment Sales of property, plant and equipment are related to sale on library and are amounting 16.530 thousand denars [2007:739 thousand denars].
24. Transfers for property, plant and equipment from fund budgets
In 2007 the Municipality has received transfers from Agency for youth and sport amounting 1.226 thousand denars.
25. Concession land and intangible assets
According to the Law on mineral raw materials (Official gazette of Republic of Macedonia No 24/07) and the Tariff Structure determining the level of fees with respect to performing detailed geological researches and concessions for mining of mineral raw materials (No. 19-3364/1 from 03 June 2007) cash receipts are divided as follows: - 60% are revenue to the Budget of the Republic of Macedonia, and - 40% are revenue to the Budget of municipality in the territory of which the concession activity is performed.
19
Description 2008 2007
Concession for mining of mineral raw material (by space)
351 229
Concession for mining of mineral raw material (by mined mineral raw material)
271 129
Concession for detailed geological researches -
6
Total concession land and intangible assets 622 364
26. Donations
Description
2008 2007 The Netherlands embassy 1.449 606 Foundation open Society 456 456 MESA - 193 Transfer from previous years 6 - Total Donations 1.911 1.255
27. Wages, salaries, remunerations and employee benefits
Municipality beside the net salaries, remuneration and reimbursements is paying personal tax on salaries and other taxable income in the name of the payee, and contributes to its employee’s post retirement plans, health, professional disease and unemployment insurance as prescribed by the national legislation. In addition contribution for water resources management has been paid as part of the gross salaries in accordance with the law.
27а) Basic salaries and remuneration
Description 2008 2007 Basic salaries - elected officials and civil servants 9.140 7.921 Basic salaries - other employees 882 796 Remuneration for sick and annual leave 2.328 2.467
Total basic salaries and remuneration 12.350 11.184
27b) Personal tax Description 2008 2007
Personal tax on basic salaries 898 955 Personal tax on remunerations 845 940 Total personal tax paid 1.743 1.895
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27c) Benefits Description 2008 2007
Compulsory pension insurance 3.468 3.068 Compulsory health insurance 1.480 1.309 Compulsory unemployment insurance 257 228 Professional disease insurance 80 71 Additional payment for water resources management 32
5
Total benefits 5.317 4.681 27d) Reimbursement
Description 2008 2007
Reimbursement of meals during work hours expenses 1.574 1.167 Reimbursement of travel to work expenses 69 69 Total reimbursement 1.643 1.236
27) Employee salaries, taxes and benefits Description 2008 2007
Total basic salaries and remuneration 12.350 11.184 Total personal tax paid 1.743 1.895 Total benefits 5.317 4.681 Total reimbursement 1.643 1.236 Total employee salaries, taxes and benefits 21.053 18.996
28. Supplies and consumables Description
2008 2007 Other materials 2.714 1.495 Office materials 764 827 Uniforms 281 209 IT tehnology 224 147 Materials for hygiene 107 125 Newspapers and other printed materials 91 115 Tools and materials for maintenance 32 14 Other materials for specific purposes 9 - Total materials 4.222 2.932
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29. Communal, heating, communication and other services
Description 2008 2007 Electricity 10.838 9.349 Phone and fax services 1.484 1.469 Liquid fuel 1.441 439
Fuel and oil ( motor vehicles)
800 732
Communal services
499 298
Postal services
356 394
Transport services
269 26
Coal and firewood
197 121
Other communal fees and services
131 85
Registration of motor vehicles
128 130
Total communal, heating, communication and other services
16.143 13.043
30. Repairs & Maintenance
Description 2008 2007
Roads and streets 7.112 2.726 Other structure maintenance 4.207 4.304 Green care 2.456 4.991 Equipment 2.252 2.561 Disinfection, disinsectization and deratization 456 162 Structure maintenance 317 254 Light motor vehicles 257 106 IT equipment 121 56 Trucks maintenance 117 98 Total repairs and maintenance 17.296 15.258
31. Legal, planning and other professional fees and services
In other professional fees and services are included contracts with physical persons for periodical hiring as follows: commission for property rating, deliverers of property tax bills, fees for periodical engaged musicians and actors, Racin meetings activities etc.
22
Description 2008 2007
Other services 7.262 5.046 Services for spatial and urban planning 3.216 3.278 Transport services in education 1.947 -
Copying, printing and publishing
197 188 Water quality analyse 38 - Other education services 33 73
Bank provision 16
6 Legal services 13 31 Insurance 11 69
Total legal, planning and other professional fees and services 12.733 8.691
32. Other Other expenses represents lodging in domestic and foreign travel, mebership fees,
hospitality and similar expenses.
Description 2008 2007
Lodging
441 390 Domestic travel - lodging 93 23 Domestic travel 65 182
Domestic travel- other 62
- Foreign travel - lodging 19 78
Foreign travel 18
4 Foreign travel - other 14 12
Membership fees
171 177 Hospitality expenses 1.292 876 Other expenses 3.332 3.134 Total other expenses 5.507 4.876
33. Grants
The transfers have been spend for scholarships for students and pupils, transfers to Sports league, foundation “Kole Nedelkovski” and other transfers from the program for culture. These transfers in 2008 are amounting 311 thousand denars [2007:348 thousand denars].
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34. Other transfers According to decision made cash payments has been made from the item other transfers. The expenditure has been made for donation for building a church, sport supports according to program for sport activities, seminars and competitions, rewards and manifestation according to program for culture. In current reserves are included financial help for health treatments and decease family members. State decorations are two financial rewards “Gemidzii 2008” and one reward for the best student “prof. d-r Gjorgji Shoptrajanov”.
Description 2008 2007
Other transfers 3.216 2.954
Current reserves
640 355 State decorations 66 107 Student scholarship - 53 Total other transfers 3.922 3.469
35. Payments for specific purposes The following cash payments by natural classification are based on the reports for payments by beneficiary institutions:
К1 Library
Description 2008 2007 Basic salaries and remuneration 1.875 504 Benefits and personal tax paid 1.005 215
Communal, heating, communication and other services
480 286
Supplies and consumables 25 25 Other professional fees and services 20
Purchase of vehicles, equipment and furniture 292 95 Total 3.697 1.125
К3 Museum and theatre Description 2008 2007
Basic salaries and remuneration 2.475 647 Benefits and personal tax paid 1.333 278
Communal, heating, communication and other services
496 454
Supplies and consumables 198 239 Other professional fees and services 444 627 Repairs and Maintenance 32 48 Other expenses 70 59 Purchase of vehicles, equipment and furniture 890 160 Total 5.938 2.512
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М1 Social welfare - day-care of pre-school children
Description 2008 2007 Basic salaries and remuneration 16.746 4.530 Benefits and personal tax paid 8.772 1.913
Communal, heating, communication and other services
3.855 3.600
Other professional fees and services 1.881 1.156 Other expenses - 260 Repairs and Maintenance - 300
Total 31.254 11.759
N1 Elementary school Description 2008 2007
Basic salaries and remuneration 88.871 23.585 Benefits and personal tax paid 47.327 9.972
Communal, heating, communication and other services
19.660 14.959
Supplies and consumables 825 867 Transport services 7.994 4.872 Repairs and maintenance 520 540 Other professional fees and services 325 163 Other expenses 130 104 Purchase of equipment and furniture - 19 Total 165.652 55.081
N2 High schools Description 2008 2007
Basic salaries and remuneration 48.103 13.000 Benefits and personal tax paid 26.038 5.550
Communal, heating, communication and other services
13.848 6.557
Supplies and consumables 144 134 Repairs and maintenance 207 118 Other professional fees and services 81 132 Total 88.421 25.491
W0 Fire protection
Description 2008 2007 Basic salaries and remuneration 6.017 6.074 Benefits and personal tax paid 3.688 2.966 Total 9.705 9.040
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Total cost by program classification are presented below:
Description 2008 2007 К1 Library 3.697 1.125 К3 Museum and theatre 5.938 2.512 М1 Social welfare - day-care of pre-school children 31.254 11.759 N1 Elementary school 165.652 55.081 N2 High schools 88.421 25.491 W0 Fire protection 9.705 9.040
Total 304.667 105.008
The cash payments from above mentioned account by cost classification are presented below:
Description 2008 2007 Basic employee salaries and remuneration 164.087 48.340 Benefits and personal tax paid 88.163 20.894 Utility, communication, heating and transport 38.339 25.856 Supplies and consumables 1.192 1.265 Repairs and maintenance 759 1.006 Other professional fees and services 10.745 6.950 Other operating expenses 200 423 Purchase of vehicles, equipment and furniture 1.182 274
Total 304.667 105.008
36. Donations Payments have been made from the Grant account and the Donation account. From the Grant
account, respectively, from cash receipts received from Foundation Open Society has been paid only professional fees and services amounting 220 thousand denars and 1 thousand denars for submitting annual financial report. Other presented expenses have been paid from the Donation account, respectively, from transfers from The Nederland embassy and have been spend according to the singed contract.
Description 2008 2007
Transportation services 277 119 Other materials 193 - Other services 722 586 Other operating expenses 172 12 Other transfers 123 340 Equipment - 193 Total 1.487 1.250
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37. Construction of plant and equipment Capital expenditures are expenditures creating future long term benefits. A capital expenditure is incurred when a Municipality makes payment either to construct or buy new fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the one year period. In 2008 are made the following payments:
Description 2008 2007 Reconstruction of buildings 24.541 20.372 Reconstruction of other property 18.244 5.467 Construction of roads and streets 9.876 3.970 Total construction of plant and equipment 52.661 29.809
38. Purchase of equipment
Description 2008 2007
Other equipment 6.980 1.997 IT and video equipment 1.688 1.206
Motor vehicles
614 1.334
Other furniture
170 - Total purchase of plant and equipment 9.452 4.537
39. Reimbursement for property confiscation
In 2008 fees for property confiscation are amounting 32 thousand denars [2007:18 thousand denars].
40. Forced debt payment
In 2008 forced payments are amounting 105 thousand denars [2007: 97 thousand denars].
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41. Specific purpose account Municipality has cash on other account – (specific purpose account). Those assets has not been included Annual report and in Unconsolidated report for cash receipts and payments; but annual financial statement for 2008 has been filled. These assets are received from the Ministry for transportation and communication amounting 2.600 thousand denars and are assigned for construction on canalization pipes.
UNCONSOLIDATED STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR SPECIFIC PURPOSE ACCOUNT FOR YEAR ENDED ON DECEMBER 31 , 2008
(in thousand denars)
2008
Receipts
Capital transfers
Ministry of Transport and Communications
2.600
2.600
Total receipts
Cash at the end of the year
2.600
STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS FOR SPECIFIC PURPOSE ACCOUNT FOR YEAR ENDED ON DECEMBER 31 , 2008
(in thousand denars)
2008
Assets
Cash and equivalent
2.600
2.600 Total assets
Net assets and liabilities
Amounts transferred to next year
2.600
2.600 Total net assets and liabilities