Annual Report 2010/11 Table of Content Page
1. INTRODUCTION 6
1.1 Executive Mayor’s Forword 6 1.2 Municipal Manager’s Forward 7 1.3 Vision & Mission 8 1.4 Integrated Development Plan 9 1.5 Public Participation 11 1.6 Socio-economic profile 13 1.7 Summary of Financial Position 28
2. DELIVERING TO OUR PEOPLE 20
2.1 Engineering & Infrastructure Services
2.1.1 Housing 31 2.1.2 Water and Sanitation Projects 32 2.1.3 Proclaimed Roads 34 2.1.4 Public Transport 36
2.2 Community & Developmental Services 37
2.2.1 Fire Services 38 2.2.2 Disaster Management 41 2.2.3 Municipal Health Services 44
2.3 Regional Development & Planning Services 50
2.3.1 Overview 51 2.3.2 Marketing 51 2.3.3 Product Development 54 2.3.4 Environmental Planning 55 2.3.5 Regional Economic Development 58 2.3.6 Cape Winelands Growth and Development Strategy (CW-GDS) 58 2.3.7 Cape Winelands Economic Development Council (CW-EDC) 58 2.3.8 Cape Winelands Local Economic Strategy: Review & re-development programmes 59 2.3.9 LED Programmes and Projects 60 2.3.10 LED Projects 61 2.3.11 Regional Economic Development 63 2.3.12 Cape Winelands LED Strategy: Review & Redevelopment 64
2.4 Rural and Social Developmental Services 65
2.4.1 Rural and Social Developmental Services Annual Report 66 2.4.2 Projects 66
2 Growing, Sharing, Delivering & Innovating Together Table of Content Page
3. CORPORATE SERVICES 74
3.1. Your Municipality at work 74 3.1.1 Employment 75 3.1.2 Employment Equity 76 3.1.3 Education, Training and Development 77 3.1.4 Enterprise Risk Management 78 3.1.5 ICT 82 3.1.6 Internal Audit (IA) 82 3.2 Governance 84 3.2.1 Executive Management 85 3.2.2 Committee Meetings 87 3.2.3 Local government Turn Around Strategy 88 3.3 Medical Aid Schemes 91 3.4 Pensions 93
4. FINANCIAL 98
4.2 Accounting Officer’s Responsibilities and approval 99 4.3 Statement of Financial Position 100 4.4 Statement of Financial Performance 101 4.5 Statement of Changes in Net Assets 101 4.6 Cash Flow Statement 102 4.7 Accounting Policies 103 - 111 Notes to the Annual Financial Statements 112 - 146
5. ANNUAL PERFORMANCE REPORT 164
5.1 Introduction 165 5.2 Key Performance Indicators 2010/11 169 5.3 Project Implementation 208 5.4 KPA’s of National Government 226 5.5 Project Performance Results 230 5.6 Performance improvement measures 231 5.7 PMS audit focus for 2011/2012 231
6. ANNUAL REPORTS 233
6.1 Report: Auditor General 6.2 Report: Audit Committee 6.3 Report: Oversight Committee
Growing, Sharing, Delivering & Innovating Together 3 ABBREVIATIONS
ABET Adult Basic Education and Training Aids Acquired Immunodeficiency Syndrome BBBEE Broad-Based Black Economic Empowerment BD Backyard Dwellers COID Compensation for Occupational Injuries and Diseases CPTR Current Public Transport Record CRR Capital Replacement Reserve CT-SBW Cape Town Small Business Week CWDM Cape Winelands District Municipality DBSA Development Bank of South Africa DCF District Co-ordinating Forum DEDT Department of Economic Development and Tourism DITP District Integrated Transport Plan DMA District Management Area DORA Division of Revenue Act DPLGH Department of Local Government and Housing DSTTT District Sectoral Technical Task Teams DWAF Department of Water Affairs and Forestry ECD Early Childhood Development EE Employment Equity EPWP Expanded Public Works Programmes ESTA Extension of Security of Tenure Act FAS Foetal Alcohol Syndrome FYLGA Five Year Local Government Strategic Agenda GAAP Generally Accepted Accounting Practice GAMAP Generally Accepted Municipal Accounting Practice GDP Gross Domestic Product GDS Growth and Development Strategy GGP Gross Geographical Product GRAP Generally Recognised Accounting Practice HDI Historically Disadvantaged Individuals HDF Housing Development Fund HIV Human Immunodeficiency Virus HRM Human Resource Management IAS International Accounting Standards IDP Integrated Development Plan
4 Growing, Sharing, Delivering & Innovating Together IMFO Institute of Municipal Finance Officers IPSAS International Public Sector Accounting Standards KPA Key Performance Areas KPI Key Performance Indicators LED Local Economic Development LG Local Government LLF Local Labour Forum MBFP Mayoral Bursary Fund Policy MEs Municipal Entities MEC Member of Executive Council MFMA Municipal Finance Management Act MIG Municipal Infrastructure Grant (Preciously CMIP) MRF Materials Recovery Facilities MSA Municipal Systems Act NCBF National Capacity Building Framework OHS Occupational Health and Safety OLS Operating Licensing Strategy PAWC Provincial Administration of the Western Cape PMS Performance Management System PMSFP Performance Management System Framework Policy R&D Research and Development RSC Regional Services Council SA GAAP South African Statements of Generally Accepted Accounting Practice SAP Student Assistance Policy SARS South African Revenue Services SDBIP Service Delivery Budget Implementation Plan SDF Spatial Development Framework SIP Strategic Infrastructure Plan SMME Small Medium Manufacturing Enterprise TB Tuberculosis THD Tourism Helpdesk VCT Voluntary Counselling and Testing WMP Waste Management Plan WSP Workplace Skills Plan
Growing, Sharing, Delivering & Innovating Together 5 1. INTRODUCTION 1.1 EXECUTIVE MAYOR'S FOREWORD
As the incoming executive mayor of the Cape Winelands District Municipality (CWDM), it gives me much pleasure to present the 2010/11 annual report. This report outlines our municipality's achievements of the past financial year, reflecting our vision and plans for communities in the Cape Winelands.
It will be noted that our municipality has continued to invest in the infrastructure needed to ensure that our council continues to provide appropriate services, facilities, business and employment opportunities to meet the growing needs of the residents of our region. Other CWDM programmes aimed at ensuring that services are delivered in line with our Economic Development Strategy were managed efficiently; we will continue to work hard to raise the bar even higher.
Looking into the year that has just begun, our new Mayoral Committee is very aware of the work that awaits us and the expectations of our people out there. I get very excited when I see the high levels of excitement amongst my colleagues to see things done.
There is also no doubt in my mind that the partner-ships that have been established over the last few years with all of our partners in business, academia and the civil society will continue to be strengthened and used as essential platforms for engaging with these stake- holders as we go along.
Recent media and tourism industry reports indicate a drop in tourism arrivals and several closures of some top accommodation establishments in parts of our EXECUTIVE MAYOR: Alderman CA DE BRUYN province. We're following these developments with keen interest and we intend to continue working hard to support our tourism industry through clever marketing activities in our key source markets, ensuring that we play our part in winning this battle together. Therefore, apart from the present, somewhat weakened, world-wide economic outlook, we will be creative in our thinking and make sure that we adapt our systems and strategies to cope with this new economic scenario.
The CWDM has an excellent team of experienced directors and staff who are committed to efficient service delivery. I trust that this municipality will once again exceed expectations, as it has done in the past.
6 Growing, Sharing, Delivering & Innovating Together 1. INTRODUCTION 1.2 MUNICIPAL MANAGER'S FOREWORD
The 2010/11 annual report has been compiled in accordance with the Local Government Municipal Systems Act 32 of 2000, the Local Government Municipal Finance Management Act 56 of 2003, as well as the National Treasury Circular No 11. The report addresses the CWDM's performance for the year ended 30 June 2011, and conforms to the relevant statutory requirements. This report records the progress made by the municipality in fulfilling its objectives as reflected in the Integrated Development Plan (IDP), the budget and the Service Delivery and Budget Implementation Plan.
In his foreword, Executive Mayor Alderman Cornelius De Bruyn refers to the current uncertain global market instability and the reported drop in tourism arrivals, as well as the resulting closure of a number of accommodation establishments elsewhere in our province. While it is not yet clear that the drop in tourism arrivals is due to the developments in world-markets, it is important that we observe these 'seemingly very far away' developments and their possible impact on our local economic situation here at home.
Our strategies and programmes have to be implemented from a well-informed perspective, with a clear idea of what is realistic and possible on one hand and, on the other hand, and what activities need to be modified or even shelved until the economic outlook clears up. We also have to keep at least one eye on the global events, to make sure that we do not wake up one day having been left behind by developments.
Our new CWDM Council is determined to ensure that MUNICIPAL MANAGER: MR M MGAJO whatever impact global economic developments have on our region at a local level, we continue to improve service delivery and, by extension, the lives of residents of the Cape Winelands. This is, after all, what we're here for.
However, despite the developments referred to above, the vast majority of our tourism businesses are still doing well, and so do other sectors of our economy. Our municipality continues to manage programmes aimed at fast- tracking rural development, increasing training for jobs and business opportunities in the 'green economy', constructing affordable houses and other facilities for residents of the Cape Winelands.
As it has been the case over the last few years, this annual report demonstrates the extensiveness and quality of our work and shows the team's dedication in delivering better service for all. We intend to continue focusing on doing all to realise our vision of growing, sharing, delivering and innovating together!
With the backing of Council, I look forward to leading our team over the next year.
Growing, Sharing, Delivering & Innovating Together 7 1.3 VISIONAND MISSION
The CWDM's vision is: Growing, sharing, delivering and innovating together. The purpose of the organisation is to ensure that its structures co-operate towards the efficient, effective and sustainable use of all its resources to reduce poverty and stimulate regional economic growth in the district.
The following strategic objectives have been developed towards fulfilling the CWDM's vision and mission: ? To facilitate the development of sustainable regional land use, economic, spatial and environmental planning frameworks that will support and guide the development of a diversified, resilient and sustainable district economy. ? To ensure the health and safety of communities in the Cape Winelands through the proactive prevention, mitigation, identification and management of environmental health, fire and disaster risks ? To support and ensure the development and implementation of infrastructural services such as bulk- and internal services, functional road network and public transport services that contribute to Integrated Human Settlements in the Cape Winelands. ? To provide an effective and efficient support service to the Cape Winelands District Municipality's executive directorates so that the organisational objectives can be achieved through the provision of Human Resource Management.; Administrative Support Services; Communication Services; Information and Communication Technologyprovision; and Sound International and Inter-governmental Relations ? To facilitate and ensure the development and empowerment of the poor and most vulnerable people, particularly women, children, youth, the disabled, elderly persons and rural dwellers throughout the Cape Winelands. ? To ensure the financial sustainability of the Cape Winelands District Municipality and to fulfil the statutory requirements.
QUICK FACTS ABOUT THE CAPE WINELANDS
? Population: 650 975
? Size: 21 452 km2
? Municipal authorities: Stellenbosch Municipality, Drakenstein Municipality, Witzenberg Municipality, Breede Valley Municipality, Langeberg Municipality
? Major towns: Stellenbosch, Paarl, Franschhoek, Wellington, Ceres, Tulbagh, Worcester, Robertson, Ashton, Montagu
? Founded in 1679, Stellenbosch is the second oldest town in South Africa
8 Growing, Sharing, Delivering & Innovating Together 1.4 INTEGRATED DEVELOPMENT PLANNING
The CWDM has a legal obligation to prepare an Integrated Development Plan (IDP) every five years. This plan, together with all sector plans, is reviewed annually.
The IDP Framework for the district is informed by certain responsibilities entrusted to district and local municipalities in terms of legislation. The Framework was prepared jointly by all the municipalities within the district, with the district municipality playing a leading role. The following is a summary of how the municipality executed the IDP Framework and Process Plan:
TIME SCHEDULE
The Cape Winelands District IDP Strategic Management Framework was adopted by the Council of the CWDM and approved by the District Coordinating Forum. The most important implication of the latter approval was the subjection of all municipalities in the district, including the CWDM, to the time-schedule for the adoption of their IDP's and Budgets, allowing sufficient time for credible alignment processes.
ANALYSIS Community Input - A total of ten (10) meetings were held with a wide range of sectoral representatives, including Labour, the Environment, Social Development, Civil Society, Public Safety, Economic Growth and Development, Agriculture, Youth, Women, etc. A total of 157 issues were articulated during these meetings and a further 17 written submissions were received. Performance Analysis – This phase involved the assessment of the performance of the municipality and the determination of areas of change for the next three years. Financial Analysis – In analysing the financial capacity and position of the municipality, the institution had to, inter alia, determine the funding/revenue potentially available for the next three years and based on the holistic financial profile of the municipality decide on appropriate fiscal strategies, the funding policies (including tariff structures) and financial plans. Situational Analysis – A thorough revision of the current realities and an examination of the changing conditions and new information that may have a major impact on the ability of the municipality to deliver on its legislative mandate had been conducted during this period. Intergovernmental Alignment – The Provincial IDP Indaba held on 26-27 October 2010 was a good starting point for improving intergovernmental planning and alignment and will need the cooperation of all stakeholders to sustain the positive spin-offs of this process.
STRATEGY The Cape Winelands Spatial Development Framework and Integrated Transport Plan were modified during this revision cycle. In addition the Integrated Waste Management Plan was further refined and a Draft Air Quality Management Plan saw the light.
PROGRAMMES, PROJECTSAND PRELIMINARY BUDGETS Current programmes and projects were reviewed and provision had been made for priorities and outputs desired for next 3 years with updated cost estimates. Operating Budget – The Chief Financial Officer compiled the draft operating budget for 2011/12 and revised operating budget for 2010/11 within the prescribed time frames. Approval of Draft IDP, PMS and Annual Budget – The Draft IDP and Budget was approved by Council for consultation with the Public on 10 March 2011 and a period of 21 days of public consultation ensued. The 2009/10 Annual Report was approved on 31 March 2011. As recommended by National Treasury in MFMACircular No. 54: Municipal Budget Circular for the 2011/12 MTREF and Provincial Treasury in Municipal Circular No. 45/2010 respectively, the CWDM Council amended its IDP Strategic Management Framework to ensure that the IDP and Budget are adopted by the outgoing Council before the 2011 Municipal Elections. At this Council meeting held on 27 January 2011, it was further resolved that the Process Plan be amended and that a final revision of the 2007/11 Integrated Development Plan of the Cape Winelands District Municipality be conducted for the period starting 1 July 2011 and ending 30 June 2012 (2011/12) and that the newly elected Council will commence with the drafting of the 2011/12 – 2015/16 five-year IDP on 1 July 2011
Growing, Sharing, Delivering & Innovating Together 9 INTEGRATION
The Draft IDP and Budget were made public for comment and an IDP/Budget Hearing was held with sector stakeholders on 17 March 2011 with the view of soliciting comment on the presented draft IDP/Budget from the representatives. Engagements aimed at multi-pronged alignment with Provincial, National and Local Spheres of Government in the form of LG-MTEC Engagements and intergovernmental alignment meetings with local municipalities in the district were held.
FINALAPPROVAL
Council adopted the Final 2011/12 Integrated Development Plan and Medium Term Revenue and Expenditure Framework for 2011/12, 2012/2013 and 2013/14 on14April 2011. All further action was taken in accordance with the legislative and regulatory requirements applicable to the approval of the SDBIP, submission to the appropriate authorities, all actions related to the submission of performance agreements, making public the Final Documents and the preparation of the Bi-Annual Audit Report for submission to Council.
Full CWDM Council
10 Growing, Sharing, Delivering & Innovating Together 1.5 PUBLIC PARTICIPATION
The Cape Winelands District Municipality aims to ensure that the quality and magnitude of public participation, particularly in IDP and budgeting processes, continue to grow each year. We understand that communities are complex, that the needs of groups vary and that these disparities should be taken into account when employing community activation strategies. Therefore, CWDM employs different processes and mechanisms in mobilising stakeholders to participate in decision making processes that affect the development of their communities.
(a)IDP Capacity Building Project : When we introduced the IDP Capacity Building Project in 2009, the primary objective was to ensure that stakeholders are capacitated to the extent that their bargaining power during IDP and Budgeting processes are significantly broadened and strengthened. The delicate interface between the different spheres of government, let alone the complexities of local government, can be daunting for even the most educated citizen. Great emphasis was therefore placed on creating a comfortable learning environment where the most user friendly methodologies can inspire participants to fully interact with the facilitator and learning material. Since its inception more than 600 participants benefited from this programme and the feedback has urged the CWDM to include these capacity building workshops as an important part of the IDP Process Plan of the Municipality each year.
(b)Special Needs Groups : The Cape Winelands District Municipality is host to two of the biggest institutions for the disabled in the country. These are the Institute of the Deaf and the Institute for the Blind, both located in the Breede Valley Municipality in Worcester. To ensure that all our IDP public consultation meetings are accessible to most people we ensure the following: ? all venues where meetings are held are accessible to the physically challenged; ? we request organisations to indicate if they need sign language interpretation at meetings (we have yet to make arrangements for that, because representatives from organisations have always preferred bringing their own sign language interpreters to the meetings; ? we arrange for professional interpretation services in all three official languages of the Western Cape; separate meetings are held for economic development stakeholders (including Labour and the Environment) and civil society stakeholders (normally Ward Committee members and other sectors) because of their diverse needs;
(c)StakeholderActivation : The following efforts are made to activate participants: ? all departments are involved in activating their stakeholders who participate in sector plan development to attend meetings; ? the Department: Rural and Social Development's officials are key in mobilising farm dwellers through our civil society partner, the Health and Development Committees and other grouping' ? the District Youth Council helps the district municipality in mobilising young people; ? transport is arranged for those stakeholders who have indicated a need; the Cape Winelands District Municipality has an IDP Communication Plan that is executed with the assistance of our Sub-directorate: Communication Services which includes the following avenues for dissemination of information and channels, mechanisms and platforms for dialogue and engagement: Official Newsletter, Press Releases, Articles for selected print publications, IDP Brochures/Executive Summary, Radio discussions, Participatory Democracy and IDP Workshops for stakeholders, Statutory IDP Public Participation Engagements, Official Website Updates, Targeted e-mailing of IDP Presentation, Events: Project initiations, funding announcements, etc.
(c)IDP/Budget Public Participation Road Map: In the 2011/12 IDP review process, the Cape Winelands District Municipality ensured optimum public participation through an IDP/Budget Public Participation Road Map which included the 12 Participatory Democracy and IDP Workshops and 11 statutory IDP meetings with sector representatives in the district.
The district municipality could not have done the above, and many more similar actions, had it not bee for our steadfast focus on nurturing social cohesion amongst communities in the Cape Winelands.
(d)CWDM Turn Around Strategy: Our 2010/11 Local Government Turn Around Strategy has identified Public
Growing, Sharing, Delivering & Innovating Together 11 Participation and Communications as a key lever for development in our district. During the course of the 2010/11 financial year, the Cape Winelands District Municipality and local municipalities have made tremendous strides in strengthening the collective impact that properly synergised and coordinated public participation and communications interventions can make in local government. Both national and provincial government consistently assisted the Cape Winelands family of municipalities in improving their institutional capabilities through Government Communication and Information System (GCIS) and the Provincial Department of Local Government.
(e)The Cape Winelands Household Perception Survey is being concluded and we look forward to use the results of this study to inform future planning.
(f)Stakeholder Input : The Cape Winelands District Municipality, during its IDPAnalysis Phase, received a total of 157 verbal inputs during public participation meetings and a further 17 written submissions. These issues were circulated internally to our Executive Directors for input and were presented to the Mayoral Committee and Council for consideration. The SDBIP (Service Delivery and Budget Implementation Plan will later provide clear indications which of the issues were incorporated in specific interventions of the municipality.
12 Growing, Sharing, Delivering & Innovating Together 1.6 SOCIO-ECONOMIC PROFILE
Demographic Profile
Population % SA population
Cape Winelands 679 210 1,39
Western Cape 5 106 548 10,46
? Cape Winelands population makes up 13,30% of the Western Cape population
? The Western Cape population makes up 10,46% of South Africa's population
? The Cape Winelands makes up ? The population is equally distributed with 50,53% females and 1,39% of SouthAfrica's population 49,46% males
? 69,64% falls in the economically active population
The Population growth rate has been declining since 1997. The current population growth rate is just above 0.8%.
Growing, Sharing, Delivering & Innovating Together 13 DEVELOPMENT PROFILE
Human Development Index Human Development Index 2010
Populatio Cape Wester Nationa Cape Winelands n Group Wineland nCape l 0.63 s DMA 0.55
Black 0.50 0.56 0.48
Coloured 0.56 0.62 0.62 Langeberg 0.58 Witzenberg 0.58 White 0.85 0.86 0.86
Asian 0.70 0.75 0.74 Breede 0.62 Total 0.62 0.68 0.56 Drakenstein 0.66 Stellenbosch 0.68
Human Development Index Gini coefficient The HDI measures the average The Gini coefficient is a summary statistic of achievements in three basic dimensions of income inequality, which varies from 0 (in the Human development: case of perfect equality where all households · A long and healthy life (life expectancy) earn equal income) to 1 (in the case where · Knowledge (adult literacy rate) one household earns all the income and · A decent standard of living other earns nothing).
Gini coefficient Cape W inelands District Municipality
0.62
0.61
0.60
0.59
0.58
0.57
0.56
0.55 14 Growing, Sharing, Delivering & Innovating Together 0.54 Growing, Sharing, Delivering & Innovating Together 15 Human Development Index Literacy Ø All 5 municipalities within the District have a Ø In the District 100571 (22,9%) persons are medium-rated (between ± 0.55 and 0.70) HDI illiterate score Poverty Gini Co-efficient Ø 25,7% of people in the District lives in poverty Ø All 5 B-municipalities have a Gini coefficient of Ø 3.6 % of people in the District lives on less than above 0.50 meaning that all the local $2 a day municipalities have a more unequal income distribution amongst households Development Diamond Ø In all four development indicators (HDI, Gini coefficient, Illiteracy and % poverty), the CWDM is performing better than the national average
16 Growing, Sharing, Delivering & Innovating Together HOUSEHOLD INFRASTRUCTURE PROFILE
Households by water infrastructure Households by electrical connections Cape Winelands District Municipality Cape Winelands District Municipality
100% 100%
80% 80%
60% 60%
40% None 40% >200mfromdwelling No Electricity <200mfromdwelling Lighting and other In Yard Lighting Only 20% Inside dwelling 20%
0% 0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sour ce: I HSGlobal I nsight Regi o Sour ce: I HSGlobal I nsight Regi onal eX
Measuring household infrastructure involves the measurement of the four indicators: Cape 1996 2002 2009 Access to Winelands Ø Running water, Ø Proper sanitation, Ø Refuse removal, and Water 95,9% 93,6% 96,5% Ø Electricity. A house is considered serviced if it has Sanitation 83,1% 87,9% 95,4% access to all four of these basic services. If not, the household is commonly known as Electricity 85,3% 89,0% 91,5% forming part of the ‘backlog’. Refuse 72,5% 66,6% 77,7%
Growing, Sharing, Delivering & Innovating Together 17 Households by toilet facilities Househol ds by t ype of refuse removal Cape Winelands District Municipality Cape Winelands District Municipality
100% 100%
80% 80%
60% 60%
40% Notoilet 40% Noremoval Personal removal Bucket system Removed by community Pit toilet Removed occasionall y 20% 20% Removed weekly VentilationImproved Pit (VIP) Fl ush toil et
0% 0%
5 6 7 8 9 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1996 1997 1998 1999 2000 2001 2002 2003 2004 200 200 200 200 200
Sour ce: I HSGlobal I nsight Regional e Sour ce: I HSGl obal I nsight Regional eX
18 Growing, Sharing, Delivering & Innovating Together Infrastructure Diamond Ø Sanitation and Water (above 80%) is well above Ø In all 4 infrastructure indicators (Refuse, the national infrastructure performance (60%). Electricity, Sanitation and Water), the CWDM is performing better than the national infrastructure performance.
Growing, Sharing, Delivering & Innovating Together 19 20 Growing, Sharing, Delivering & Innovating Together LABOUR PROFILE
Unemployment rate, official definition (%) Cape Winelands District Municipality, Total
Cape Winelands Total 70,000 25.0%
60,000 20.0%
Total Employment 230 196 50,000 (Formal & Informal) 15.0% 40,000
30,000 10.0%
Unemployment 60 126 Unemployment rate 20,000
(Official Definition) Number of unempl oyed peopl e 5.0% 10,000
0 0.0% Economic Active Population 290 113 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (Official Definition) Number of unemployed people Unemployment rate
Source: IHS Global Insight Regional eXplorer version 549
Labour Labour Remuneration (Current prices, R1000) Cape Winelands District Municipality Ø Agriculture and Community Services are the
biggest employment sectors in the District 1,323,409 Ø The official unemployment rate is approximately at 20% 4,015,897 Ø Primary sector The labour force participation rate is just above 15,389,941 60% Secondary sector Tertiary sector Total
10,050,636
Total Employment Composition Cape Winelands District Municipality, 2010 Labour Overview, Total 2Mining Cape Winelands District Municipality 0% Households 70.0% 4% 1Agriculture 9Communi ty 24% services 60.0% 23%
3Manufacturing 50.0% 8Finance 13% 9% 6Trade 5Construction 40.0% 18% 6% 30.0%
20.0%
10.0%
0.0% 7 Transport 4 Electricity 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3% 0% Labour Force Participation Rate Unemployment rate (Official)
Sour ce: I HS Gl o Source: IHS Global Insight Regional eXplorer version 549
Growing, Sharing, Delivering & Innovating Together 21 INCOME AND EXPENDITURE PROFILE
Income Expenditure on Retail Goods Ø 25% of the CWDM population earns either a low Ø Retail trade expenditure on perishable and income salary or no salary (i.e. R0 – R42 000 processed goods have the highest annual sales per year), and thus falls into the poverty by households in the Cape Winelands District category, experiencing difficulty in meeting their followed by pharmaceuticals, clothing and basic needs. inedible goods.
Ø 39% earns between (R42000 – R132000) Ø Television sets, Audio appliances and other Ø 31% earns between (R132000-R600000) domestic furnishings were the products with the Ø 5% earns (over R600000) least amount of retail trade sales
22 Growing, Sharing, Delivering & Innovating Together ECONOMIC PROFILE
Economic Growth Rate Economic Sector Contribution Ø Negative growth (-2.3%) was experienced in Ø The Cape Winelands District economic profile 2009 at the height of the global financial crisis. shows a diversity in economic activity with Financial and Business Services, Manufacturing, Ø In 2010 there was a positive growth rate again Agriculture and Trade forming some of the largest indicating economic recovery. contributors to the area’s GGP.
Growing, Sharing, Delivering & Innovating Together 23 TRADE PROFILE
Western CWDM Cape Exports (R 1000) 12,321,552 58,794,007 Imports (R 1000) 21,070,302 118,254,414 Total Trade (R 1000) 33,391,854 177,048,421 Trade Balance (R 1000) -8,748,750 -59,460,407 Exports as % of GDP 34.7% 17.0% Total trade as % of GDP 94.1% 51.3% Regional share – Exports 2.2% 10.6% Regional share – Imports 3.8% 21.3% Regional share - Total 15.9% Trade 3.0%
International Trade Ø The CWDM has the highest percentage regional Ø The District’s major trading countries are trade share, when compared to the other District Germany, Netherlands and the United Kingdom municipalities in the Western Cape which follows the trend of the Province
Ø Agricultural products and food, beverages and tobacco products remains the highest exporting products
24 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 25 26 Growing, Sharing, Delivering & Innovating Together CWDM per country > R50 Million < R400 Million CWDM per country > R400 Million < R1 Billion CWDM per country > R1 Billion
Western Western Country Cape CWDM Country Cape CWDM Angola 1,774,605,802 241,024,288 Norway 315,789,104 79,626,824 Australia 856,886,104 219,400,136 Russia 780,598,657 200,378,931 Belgium 2,141,612,662 479,865,823 Singapore 981,625,813 136,243,699 Brazil 267,647,462 53,392,276 Spain 1,278,360,491 103,311,235 Canada 795,901,300 498,038,676 Sweden 839,316,798 696,174,456 China 750,358,778 83,369,444 Switzerland 319,462,946 117,011,185 Finland 156,187,464 120,658,064 Tanzania 335,150,725 55,177,189 United France 1,426,258,778 147,385,810 Kingdom 5,777,460,252 2,114,857,878 Germany 3,606,015,215 1,028,407,145 US of America 3,069,365,928 496,028,483 Hong Kong (China) 970,763,196 195,605,982 Zambia 1,326,027,274 95,492,504 Indonesia 355,941,307 72,197,378 Zimbabwe 1,145,198,540 124,484,347 TRADE WC CWDM Ireland 234,660,009 92,826,255 BLOCK Italy 1,261,796,144 87,442,388 APEC 11,717,127,159 2,703,573,510 Japan 1,021,850,505 425,911,665 EFTA 647,122,875 205,812,927 Kenya 813,742,307 317,540,541 EU 23,137,528,950 6,867,947,387 Denmark 419,404,810 311,053,380 MERCOSUR 1,874,249,690 76,960,165 Luxembourg 103,477,248 102,085,686 NAFTA 3,920,336,666 997,172,797 Malaysia 783,223,345 138,768,463 SADC 7,327,312,766 707,103,419 Mauritius 489,704,922 89,624,230 APEC: AsiaPacificEconomicCooperation Mozambique 1,729,559,198 55,023,019 EFTA: European Free Trade Association Netherlands 4,516,534,829 1,424,546,977 EU: European Union New Zealand 138,262,062 67,575,032 MERCOSUR: Southern Common Market (Argentina, Brazil, Paraguay, Uruguay) NAFTA: North American Free Trade Agreement Nigeria 623,609,172 93,050,551 SADC: Southern African Development Community
Growing, Sharing, Delivering & Innovating Together 21 1.6 SUMMARY OF FINANCIAL POSITION
During the 2010/11 financial year, the CWDM maintained a sound financial position.
However, the global economic downturn has impacted negatively on the percentage of growth in the RSC levy replacement grant the municipality received from the National Treasury. Although this had a negative impact on the municipality's financial resources, we have been able to confront this challenge through prudent financial management.
1.6.1 Revenue
Revenue 2007/8 2008/9 2009/10 2010/11 2010/11 Actuals Actuals Actuals Budget Actuals Government grants and 165 439 189 465 202 938 210 645 203 123 subsidies Agency Income 61 343 66 379 60 982 101 580 82 043 Own revenue: 50 824 71 720 41 943 71 492 36 524 · Sundry 50 484 71 437 41 910 71 483 36 522 · RSC levy income -278- - - · Interest on outstanding 340 5 33 9 2 debtors
Total revenue 277 606 327 564 305 863 383 717 321 690
Table 1.2 Budgeted revenue and actual revenue collected (R'000)
1.6.2 EXPENDITURE
Figure 1.13 Budgeted expenditure in 2010/2011 per strategic objective
28 Growing, Sharing, Delivering & Innovating Together 1.6.3 Grants and subsidies for operational expenditure
Iin accordance with the Division of Revenue Act and inclusive of other sources of revenue, R285 165 656 was issued for grants and subsidies with regards to operational expenditure (refer to note 23 of the 2010/11 Annual Financial Statements for more details):: Strategic objective Budget Actual Exp. (Over)/Under spending 2010/11 2010/2011 35 676 720 30 980 084 4 696 636 Regional Development and Planning 56 911 984 41 678 572 15 233 412 Engineering and Infrastructure 84 009 073 77 672 622 6 336 451 Community and Developmental Services 22 656 171 18 941 543 3 714 628 Rural and Social Development 12 183 331 9 167 405 3 015 926 Office of the Municipal Manager 89 492 468 84 123 149 5 369 319 Agency: Roads 19 201 190 19 104 562 96 628 Financial Management Services 63 585 714 56 279 247 7 306 467 Corporate Services TOTAL 383 716 651 337 947 184 45 769 467
Table 1.2 Funds allocated to strategic objectives and actual expenditure (R'000)
1.6.4 Capital expenditure The total capital expenditure amounts to R12 226 594 and is funded by both the capital replacement reserve and government grants.
1.6.5 External loans The municipality is in a sound financial position, which did not necessitate the need for external loans.
1.6.6 Cash flow overview The municipality's cash flow has remained sufficient and reflects that it was able to extend and maintain operations.
1.6.7 Funds, reserves and provisions The closing balance at the end of the 2010/11 financial year was R314 079 831 Closing balance Total in Rand
Capital replacement reserve R 70 524 776 Government grant service R 1 945 760 Revaluation reserve R 115 833 341 Future medical aid and pension liabilities R 125 775 954
GRAND TOTAL R 314 079 831 Table 1.3 Funds, reserves and provisions 1.6.8 Future liabilities
In terms ofAct 116 of the statements of GenerallyAcceptedAccounting Practice (GAAP), the council must provide for future liabilities determined by an annual actuarial valuation. Future liabilities to the amount of R125 775 954 will be fully funded.
1.6.9 Investments
Surplus cash is invested at all A1 banks in terms of the council's cash management and investment policy. During the 2010/11 financial year, the average rate of return on investments was 6.30%.
Growing, Sharing, Delivering & Innovating Together 29 2. DELIVERING TO OUR PEOPLE 2.1 ENGINEERING AND INFRASTRUCTURE
30 Growing, Sharing, Delivering & Innovating Together 2.1 INTRODUCTION
2.1.1 HOUSING
The purpose of the housing section of this council is to facilitate access to housing opportunities to farm worker families and rural dwellers. This is only done in areas identified by the district municipality before the demarcation of wall-to-wall local government and by mutual agreement with the affected local municipalities. Three housing projects situated at Hermon, Groot Drakenstein (Meerlust) and Nieuwedrift are in various phases ranging from planning to implementation.
Achievements of the previous year and the funds that have been provided for in the 2011/2012 budget for the different projects are as follows:
Hermon
Achievements during the year included the handing over of 85 title deeds to beneficiaries at Hermon. The restoration and upgrade of the heritage houses also commenced at Hermon and is set for completion in the 2011/2012 financial year. R1.77 million has been allowed for the completion of these heritage houses.
The restoration of existing houses as part of the Hermon Housing Project
Growing, Sharing, Delivering & Innovating Together 31 NieuwedirftAgri Village
At Nieuwedrift in Northern Paarl, the environmental impact assessment as well as heritage impact assessments have been completed and are currently awaiting a record of decision from the relevant approval's authorities. R800 000 has been allowed for the completion of planning and the design of the development with implementation set for 2012-2013, pending obtaining all the necessary statutory approvals.
Groot DrakensteinAgri Village (Meerlust)
At Meerlust, the South African Heritage Resources Agency issued a positive record of decision for the first phase heritage impact assessment with more detail design and planning for the second phase of the study set for the new financial year. R1 million has been set aside to complete the planning for the development with implementation set for 2012-2013.
2.1.2 WATERAND SANITATION PROJECTS
Water and Sanitation provision to schools:
The aim of this project is to ensure that all rural schools within the CWDM have adequate water supply and sanitation facilities and/or systems. In conjunction with health awareness training done by the EHP's, these projects ensures a safer and healthier environment for both learners and teachers. During the 2010/2011 financial year two schools were provided with upgraded sanitation facilities while the water supply/quality of 15 schools have been improved. The following schools have been assisted: ? Sandhills Primary School ? Boy Muller School ? Joostenberg Primary School ? Middelrivier Primary School ? Waboomsheuwel Primary School ? Kapteintjies Day Care ? Weltevrede Primary School ? Goudmyn Primary School ? Uitnood Primary School ? Hugenoot Primary School ? Le Chasseur Primary School ? Stockwell Primary School ? Retreat Primary School ? Riverside Primary School ? Hoopsrivier Primary School ? Vinkrivier Primary School ? Wansbek Primary School ? Willem Buchholz Primary School ? AF Kriel Primary School ? Rietvlei No 1 Primary School
Due to the closing of certain, and the amalgamation of other schools, there is a constant need for adequate facilities and this will be attended to during the next budget cycle with an allocation of R 600,000.
SERVICE DELIVERY IN THE RURALAREAS Council embarked on this very successful project during 2004 and continued with it as the need for the project became evident in the applications received each year. The purpose of the project is to supply basic solar lighting and solar geysers to farm dwellers in collaboration with farm owners. Basic solar systems are subsidised and provided to farm owners for installation in places where the Eskom supply grid is not a viable option while warm water systems, when approved, are installed in all areas. During the 2010/2011 financial year 371 households benefitted from the subsidy scheme with regards to solar geysers and 62 households benefitted from basic solar lighting in their homes. Where the Eskom supply grid is available,
32 Growing, Sharing, Delivering & Innovating Together the electrification of dwellings are subsidised by the same amount as for basic solar lighting and in this year 12 applications were approved. By improving the conditions of living of farm dwellers using renewable energy sources, this Council contributes in different ways to the wellbeing of its citizens. During the next budget cycle an amount of R 1, 850,000 will address the needs for more basic solar lighting and solar geysers.
PROVISION OF BATHROOMS IN LANGEBERGAND WITZENBERG MUNICIPALITIES This project entails the addition of bathrooms to existing houses in Ceres, Ashton and Tulbagh where the existing toilets are not attached to the houses. The beneficiaries, mostly elderly and disabled persons, have been identified by the local municipalities. The project in Ceres, consisting of the construction of 161 bathrooms, was concluded while 30 bathrooms have been handed over to the beneficiaries in Ashton. Problems were experienced with contractors on the Ashton project but it is envisaged that the project, consisting of 92 bathrooms in total, will be concluded during September 2011. The project in Tulbagh, consisting of 298 bathrooms, is executed in an innovative manner by making use of 28 local, small contractors who receive constant training and are assisted by a contractor incubation program embarked upon by council. The main focus of this program is to develop these small contractors into efficient contracting entities during and after the completion of the project. Where possible, all contractors make use of 100 % local labour and approximately 180 jobs will be created during the construction phase. An amount of R15,000,000 has been budgeted for the completion of these projects.
New bathrooms added to existing houses in Tulbagh
Growing, Sharing, Delivering & Innovating Together 33 2.1.3 PROCLAIMED ROADS
The District Municipality does not own any public road in its area of jurisdiction. The national roads are manage by SANRAL and the provincial roads by the Western Cape Provincial Government, Department of Transport and Public Works) .
2.1.3.1 General road maintenance
Our budget for general maintenance activities for the provincial financial year was R48,300,00 and this included plant replacement but excludes all reseal and regravel capital projects. The CWDM is one of the five district municipalities that performs general road maintenance and other technical functions on an agency basis for the provincial road authority. South Africa has a critical shortage of qualified engineers, technicians and tradesmen, which has a negative impact on service delivery and infrastructure. Although there is a lack of financial and human resources, as well as skilled and experienced technical people, the existing (and past) good relationship between all technical officials at the CWDM and the Western Cape Provincial Roads Department, ensures service continuous service delivery.
The manner in which the available technical resources have been shared is admirable serves as an example to the rest of the country. Both our senior Roads personnel officials and Overberg District Musicality's senior roads personnel are guided under the general management of the Paarl Provincial Regional Manager 's office in Paarl to try and ensure optical usage of all available resources (funding, general maintenance personnel and technical officials).
The rehabilitation , reconstruction, reseal and labour intensive maintenance activities are addressed by provincial tenders by the Department of Transport and Public Works Cape Town office and on a limited scale by the Paarl Provincial Regional Manager's office.
The above is complemented by the critical day to day general road maintenance activities performed by our own and the Provincial own maintenance teams to try and ensure that a continuous programme of preventative maintenance with the objection of protecting the infrastructure that we have (and the prevention of what is happening in some parts of our country regarding the collapse and appearance of pothole s on major provincial road networks) .
We do not have a permanent reseal unit. Our general road maintenance units must also assist the Paarl Provincial Regional Manager 's office with reseal projects where short sections of the road network is involved (where annual tenders appeared to be problematic because of the high costs involved in site establishment of the various short sections). Reseal work for the allocated budget of R14,799,000 was completed by our personnel with quality control by the Provincial Cape TownLaboratory.
Totallength 66,94 km resealed.:
AP 1394 Aan-de-doorns AP 1487 Grootrivier HP 166 Winery HP 291 Harry Hill HP 303 Broekrivier AP 1434 Waboomskelder HP 295 Koo OG 5705 Karootuin AP 1422 Brandwacht-Noord AP 1339 Boesmansrivier HP 201 Bainskloof
34 Growing, Sharing, Delivering & Innovating Together Regravelling of the many kilometres of gravel roads in our area will unfortunately remain a problem because of the huge backlogs that accumulated over the many years when a shortage of funds was experienced. Allocation of additional funding from Province resulted in the establishment of one permanent regravel team in Worcester. This unit is complemented by other maintenance teams when regravel work is done in areas that is too far for the unit. The original regravel budget of R6,500,00 was increased in March 2011 to allow gravel material purchase of R11,200,000 to assist the rural area of Paarl and Stellenbosch where the only material available is from commercial resources. Many of the roads here(Paarl and Stellenbosch) was regravelled more than 15 years ago! .
Totallength 29.88 km regravelled.
The following roads were regravelled:
Growing, Sharing, Delivering & Innovating Together 35 2.1.3.2 Flood repair damage
During the flood damage that occurred in our area in, the Provincial Roads Department asked us to assist them in reinstating access to affected properties.. We are very proud of our engineering and infrastructure section and the workers involved, who had to put in many extra hours and had to work in difficult circumstances to ensure that access is reinstated as soon as possible.. The reconstruction of some of the damaged bridge infrastructure has started and is managed by the Provincial Cape Townoffice by menas of tenders.
2.1.4 PUBLIC TRANSPORT
In terms of the Municipal Structures Act, 117/1998, the regulation of passenger transport services is a district municipality function. The National Land Transport Act (NLTA), Act 5/2009, has clearly defined the roles of the three spheres of government with respect to the Transport function. The CWDM has completed its statutory responsibility in respect of Transport Planning by completing its District Integrated Transport Plan as well as the Local Integrated Transport Plans for Breede Valley-, Drakenstein-, Langeberg- and Witzenberg municipalities. Stellenbosch Municipality has been assigned the responsibility for preparing a Comprehensive Integrated Transport Plan which forms part of the district ITP.
Non-motorised transport
Improvements to existing road infrastructure to enhance the safety of rural learners are guided by the Safer Journeys to Schools strategy, with by the following intervention areas: ? Engineering and environment: o Berg-en-Dal Primary School road infrastructure upgrade consisting of elements such as a sidewalk, bus embayment, shelter and upgraded vehicular and pedestrian entrance off the rural proclaimed road. ? Education, communication and awareness: o Developed and distributed posters and pamphlets to rural schools o Developed and distributed cycling backpacks to beneficiaries of the Shova Kalula bicycle programme in the Cape Winelands o Developed and distributed colouring books based on pedestrian good practices to rural schools ? Two Transport Month events were held in October 2010: o Fun ride in Paarl for Shova Kalula bicycle beneficiaries o Worcester Free Ride for Breede Valley mini-bus taxi industry as an introduction to a pre-paid ticketing system
Public transport planning and regulation endeavours aimed to fulfil the concept of the Expanded Public Works Programme (EPWP) and the implementation of all its infrastructure projects. All infrastructure projects implemented during the 2010/11 financial year were based on labour-intensive principles as prescribed in the EPWP.
36 Growing, Sharing, Delivering & Innovating Together 2.2 COMMUNITY AND DEVELOPMENTAL SERVICES
Growing, Sharing, Delivering & Innovating Together 37 2.2.1 FIRE SERVICES
The CWDM fire-fighting services experienced a very busy fire season and attended to 7 major fires. The most devastating fires were in the Rawsonville, Montagu, Du Toitskloofand Ceres areas.
Possible disasters were prevented by the rapid response and effective fire suppression operations of all agencies involved. More than 80 248 hectares burnt down, including fynbos, protea and timber plantations and agricultural land. Assistance was provided to the B-municipalities on 252 occasions and the CWDM received assistance on 146 occasions. Forest/ Veld Fires Chemical Incidents Structural fires MVA Vehicle fires Special Service Miscellaneous False Stellenbosch 565 4 10 0 3 0 2 26 Drakenstein 227 1 5 0 0 0 1 10 Witzenberg 170 0 38 2 3 0 1 15 Breede 234 3 10 0 2 0 3 23 Valley Langeberg 64 0 36 2 2 0 4 9
38 Growing, Sharing, Delivering & Innovating Together IN TOTAL: ? R560 000 was spent on making preventative fire breaks in five areas ? 3 423 personnel hours were spent on operational and fire-fighting duties ? 1 475 calls were logged ? 250 629 kilometres were covered by fire-fighting vehicles ? 9 893 kilolitres of water were used, to which 2 214 litres of foam were added ? more than R5 000 000 was spent on aerial fire-fighting ? 50 reservist fire-fighters assisted voluntarily and accounted for 50% of the operational fire-fighting capacity
In terms of the Municipal Structures Act, the District is also responsible for regulation, co-ordination and training of fire fire officers, therefor the following course were presented during 2010/2011 ? Fire Fighter 1 – (25 persons) ? Fire Fighter 2 – (25 persons) ? HazmatAwareness – (25 persons) ? Hazmat Operations – (5 persons)
Growing, Sharing, Delivering & Innovating Together 39 Community Fire Safety Programmes
This department also participated in the project “RED OCTOBER” where we rolled out the initiative “LEARN NOT TO BURN” as part of our fire and life safety education program in local primary schools throughout the district. Pamphlets, posters, interactive programmes such as colouring-in andSDtop; rop and R oll exercises were conducted to drill home the concept of “LEARN NOT TO BURN”
Furthermore, fire safety programmes, targeting the adults in informal settlements, were conducted in Klapmuts, Nduli and Kylemore.
Growing, Sharing, Delivering & Innovating Together 2.2.2 DISASTER MANAGEMENT
2.2.2.1 Legislative Functions
In line with the legislative mandate to promote disaster management capacity-building, training and education in schools, the Disaster Management section has partnered, as in the past, with the Environmental Management Youth Camp Program of the Regional Development and Planning Services Department. The section developed a dialogue on climate change which was presented at these camps together with an informative presentation and interactive session with the learners. About 400 learners from grade 5-7 were reached in this way. Learners were also issued with disaster management awareness items such as torch key rings.
Environmental Management Youth Camp Training
Growing, Sharing, Delivering & Innovating Together 41 The department also conducted disaster management training on the development of disaster management plans for non-governmental organisations, faith-based organisations as well as community-based organisations.
The need to train these organisations in disaster management was identified as a result of their ongoing assistance to the municipalities in cases of disasters and / or emergencies. A breakdown of attendees to the training sessions is provided as follows:
Municipality Total number of Organisations Total number of Attendees Breedevalley 17 33 Drakenstein 19 31 Langeberg 12 28 Stellenbosch 12 28 Witzenberg 10 27 TOTAL 70 147
These training sessions were accepted with much enthusiasm and participation. The disaster management plans which were developed for each of these organisations will be incorporated within the plans of each of the local authorities within the district.
NGO, FBO training sessions
42 Growing, Sharing, Delivering & Innovating Together 2.2.2.2 Projects
2.2.2.2.1 Simulation Exercise Some projects implemented in 2010/ 2011 include a Comprehensive Simulation Exercise. The Cape Winelands District Municipality has taken a step to invest in a multi-year comprehensive exercise programme which will run until 2013/2014 financial year, in improving disaster preparedness and response through elaborate exercise regime development and implementation.
The National Disaster Management Framework of 2005 requires that simulations of risks related to different scenarios must be provided for in order to ensure continuous situational awareness and the effective allocation of resources. In order to meet this requirement, the Cape Winelands District Municipality appointed Aurecon's Risk Management Teamto develop a Comprehensive Simulation Exercise Programme (CSEP) in early 2011.
The first phase of this project involved research into previous risk assessments within the Cape Winelands District Municipality, as well as existing Disaster Management Plans of local municipalities within the district. Participation by role players from each of the local municipalities was vital in ensuring that the exercise scripts were tailored to the municipalities' specific needs. The overall simulation theme for the Cape Winelands District Municipality is an earthquake due to the probability of a seismic event occurring in the area.
Secondary impact themes were identified for each local municipality within the district ranging from train derailment with resulting hazmat incident, dam failure and structural collapse. The aforementioned information has been incorporated within 49 scripted exercises including table-top, walk-through and simulation variations that can be conducted by the client and other role-players over a period of approximately 36 months.
Growing, Sharing, Delivering & Innovating Together 43 2.2.2.2.2 Population Migration and Coordination Stemming from the challenges the CWDM encountered during the social conflict attacks which resulted into displacements of foreign nationals in the district in 2008 and 2009, the department initiated a project to assist relevant governmental roleplayers responsible for the coordination of disaster management services within the district.
Through a service provider, Phuhlisani, 5 (five) participatory workshops were held within the five municipal areas of CWDM with the roleplayers from municipalities, organs of state and sector departments operating within the district, with the objective of developing a strategy, which will culminate in the Memorandum of Agreement (MOA) depicting and formalizing the roles and responsibilities of institutional role-players during social conflict events being entered into and committed by all the functionaries during the 2011/ 2012 financial year. The draft MOA is currently distributed for scrutiny and inputs by relevant departments.
2.2.2.2.3 Community Safety This project has been implemented by CWDM over several financial years. For the 2010/ 2011 financial year, financial aid to the amount of R 304 505.00 was granted to 19 (nineteen) Community Policing Forums in the district in order to equip Neighbourhood Watch activities with necessary items to enhance community safety programmes.
2.2.3 MUNICIPAL HEALTH SERVICES
2.2.3.1 Legislative Functions In terms of Section 1 of the National HealthAct, 2003, (Act 61 of 2003), Municipal Health Services were declared to be: Water Quality Monitoring; Food Control; Solid Waste Management; Health Surveillance of Premises; Surveillance and Prevention of Contagious Diseases, excluding Immunisation; Vector Control; Environmental Pollution Control; Disposal of the Dead; and Safe Handling of Chemical Substances but excludes Port Health, Malaria Control and control of Hazardous Substances. Over and above the aforementioned legislative functions, the Municipal Health Services team was also responsible for building control in the District ManagementArea (DMA).
In order for the department to effectively deliver its legislative functions, all the Environmental Health Practitioners (EHPs) received training as Peace Officers and were subsequently appointed as such in terms of the Criminal Procedures Act, 1977 (Act 51 of 1977). Other relevant training which was undertaken by the EHPs during the 2010/ 2011 financial year was on Water Quality. Furthermore, as the function for Air Quality Monitoring which was assigned to district municipalities with effect from 1 April 2011, 7 EHPs received practical training in this regard. The delivery of Municipal Health Services has been further strengthened with the approval of the proposed fines in terms of the Municipal Health By-Laws: Cape Winelands District Municipality by the Chief Magistrate.
The following charts pertain to some of the key functions of Municipal Health Services. For the 2010/ 2011 financial year, monitoring and surveillance of water quality and availability that is intended for human consumption, recreational and industrial use was as follows:
44 Growing, Sharing, Delivering & Innovating Together The sampling of food products, the breakdown per food category and the related administrative tasks undertaken were as follows:
Growing, Sharing, Delivering & Innovating Together 45 46 Growing, Sharing, Delivering & Innovating Together 2.2.3.2 Projects
2.2.3.2.1 Environmental Health and Education Programme During the 2010/ 2011 financial year, in addition to direct service delivery as per the legislative functions, Municipal Health Services team undertook key projects that are related to its functions. Some of the projects' highlights include the Environmental Health Education Programme. This project aims to create environmental awareness amongst the communities of the CWDM in order to change negative behavioral patterns. This was done through live theatre performances in 202 schools and approximately 25 000 learners were reached. Furthermore, the programme entails the development of educational material; Health and Hygiene Education on farms; and formal health education at industries/businesses and organizations.
Health and Hygiene Education Material
2.2.3.2.2 Greening Cape Winelands The objectives of this project are to promote a greener environment by getting communities involved in environmental actions through the planting of trees; establish environmental awareness amongst communities through environmental education; improve the quality of life of all inhabitants of the Cape Winelands by creating income opportunities. The project received a budget of R 220 000 with which a total of 1684 trees were planted throughout the district.
Growing, Sharing, Delivering & Innovating Together 47 2.2.3.2.3 Biological Rodent Control Programme This project aims to control rodents biological by increasing the owl population. This project is also complimented with education and awareness programmes amongst communities, with special emphasis on farms and schools where nests are provided and installed. A budget of R 160 000 was allocated for this this project and 51 owls nests were erected. This project has been well received by communities and received positive media coverage.
Exhibition Stand for Owls Project
2.2.3.2.4 Pesticide Safety As part of a pilot, a pesticide safety project was initiated during 2010/ 2011 with the aim of create awareness on pesticide safety use and handling amongst farm workers in the Langeberg and Witzenberg municipal areas. Farm workers in these areas received relevant training and were issued with safety clothing and kits, with a total cost amounting to R 83 610.
2.2.3.2.5 Health and Hygiene Improvement in Informal Meat Slaughtering and Sale Industry The project was initiated with the objective to improve the health and safety of meat that is sold to consumers through the empowerment and upliftment of meat handlers in the informal sector, through education and investigations into the provision of infrastructure. 2010/ 2011 marked the third year this project was initiated in Mbekweni, Paarl. 22 (twenty two) mobile working units were distributed to traders in Mbekweni and Zwelethemba, in Worcester. Furthermore, training was provided to 76 informal meat traders, including previous years' recipients as part of ongoing health and hygiene education training in this trade. R 615 000 was made available for this project.
48 Growing, Sharing, Delivering & Innovating Together Of special note, is that this project won the National Alfred Nzo Environmental Health Award, which is awarded to environmental health practitioners who have contributed to the improvement of environmental health conditions in the local communities that they service. The award is named after a former political stalwart, Mr. Alfred Nzo who began his career as a Health Inspector in the townships of Germiston andAlexandra in the early 50's.
2.2.3.2.6 Waste Recycling With an amount of R 1 500 000.00 CWDM funded Langeberg, Witzenberg and Drakenstein Municipalities within its jurisdiction to support their waste reduction and recycling initiatives. Amongst the achievements, were the upgrading of the Ashton Landfill site and support of community projects in Drakenstein and Witzenberg Municipalities.
2.2.3.2.7 Waste Minimisation at Schools This project saw the design and acquisition of 5 can compactors that are used as a tool to educate scholars on waste minimization and recycling. These compactors were rotated between schools throughout the district. The total cost of this project was R 56 350.
Growing, Sharing, Delivering & Innovating Together 49 2.3 REGIONAL DEVELOPMENT & PLANNING SERVICES
50 Growing, Sharing, Delivering & Innovating Together 2.3.1 OVERVIEW
The white paper on the development and promotion of tourism sets out a range of roles and responsibilities of local government in fulfilling the function of “local tourism”. The white paper and the previous Department of Environmental Affairs and Tourism guidelines identified the following categories of functions to be delivered at a local level by local government:
? Destination planning and policy-making ? Destination development and management ? Tourismproduct development ? Tourismtraining and capacity-building ? Co-ordination in respect of tourism matters ? Tourismresearch ? Provision of tourist infrastructure and services ? Tourismmarketing strategy, planning, facilitation and implementation ? Provision of tourism information ? Regulation and monitoring
Tourism is about providing better holiday experiences for tourists, as well as creating and promoting opportunities for local tourism enterprises. The Cape Winelands promotes coordination in tourism development through economic empowerment, co-operation and partnerships.
Therefore the stated objectives of the CWDM's overall tourism strategy are as follows:
? Increase the share of the Cape Winelands in the provincial tourism market ? Increase visitor numbers and the length of time visitors stay in the area ? Improve the geographical spread of visitors and visitor spending ? Encourage growing representivity in terms of participation and product ownership ? Improve the quality of the existing product offering through training and mentoring programmes ? Promotes SMME development and BBBEE
In addressing these objectives the Cape Winelands is promoting its diverse offerings and “hidden gems” by showcasing the incredible people, places and activities of the region to include the diverse and unique nature and outdoor, food and wine, health and wellness, arts, heritage and culture, sports and adventure, business experiences and romantic travel on offer.
2.3.2 MARKETING
Educationals Educationals were introduced to inform tourists as well as staff of the many attractions and experiences that are on offer in the Cape Winelands. There are three types of educationals, namely Tour Operators-, Media- and Staff educationals. Through their involvement in these educationals, a cost-effective public relations strategy is implemented, which results in the placement of articles in various magazines, newspapers and electronic media. All media educationals are organized in conjunction with the public relations agency (PRA) whose primary function is to invite representatives of selected media to these educationals. The PRA company contracted by the CWDM works closely with the local tourism associations in identifying “hidden gems” and other attractions in the respective municipal areas. During the 2010/2011 financial year, a total of 11 educationals took place. The breakdown was as follows:
Media: The aim of Media educationals is to promote the “hidden gems” of the Cape Winelands through the use of scheduled media trips to the five B-municipal areas. During the 2010/ 2011 financial year 4 Media educationals took place as follows:
Growing, Sharing, Delivering & Innovating Together 51 AREA DATES 1. Drakenstein 25 to 26 November 2010 2. Witzenberg 24 - 25 February 2011 3. Langeberg 17 -18 March 2011 4. Greater Stellenbosch 26 - 27 May 2011
Atotal of 14 Journalists attended these educationals from 14 different publications namely:
1. Surene Bruwer: Route 62 2. Juli Huisamen: Wine Country Magazine 3. Cherice Smith: Mango Juice in-flight Magazine 4. Carolyn Frost: Bolander 5. Michael Nkalane: Sowetan 6. Georgie Burrow & Kirsten Smart: Getaway Magazine 7. Zina Mae Titus &Ashley Davids: Whats-on-in-Cape Town 8. Shalini Tewari: Ramsay Media 9. Cameron Dalton: AA-Travel 10. Gavin Ford: Gavin Ford Publishing 11. Nadia Krige: Gotravel24 12. Robyn Kadis: Franschhoek Style Magazine 13. Robin Brown: WeekendArgus (Freelance Journalist) 14. Heleen vanAs Koringland, Veeplaas & Horseman (Freelance Jounalist)
Tour Operators: The aim of Tour Operators educationals is to promote the “hidden gems” of the Cape Winelands through the use of scheduled media trips to the five B-municipal areas. During the 2010/ 2011 financial year 2 Tour Operators eduationals took place as follows:
AREA DATES Drakenstein & Breede Valley 24 – 25 March 2011 Drakenstein 23 – 24 June 2011
52 Growing, Sharing, Delivering & Innovating Together A total of 7 Tour Operators participated in the 1st educational as follows:
CAPE WINELANDS DISTRICT MUNICIPALITY TOUR OPERATORS EDUCATIONAL 24 – 25 March 2011 – Drakenstein & Breede Valley
Company Name Representative Contact Details
Amantande Tours Jeffery Rameti E-mail: [email protected] Website: www.amantande.co.za
Cathys Tours Cathy Oosterwyk Tel: 021 393 4896 Cell: 072 483 7716 E-mail: [email protected] Website: www.cathystours.com Centurion Tours Ikraam Bulbulia Tel: 021 934 1779 Cell: 082 554 5702 E-mail: [email protected] Website: www.centuriontours.co.za Charlo’s Tours Charles Adams Tel: 021 715 6607 Cell: 082 502 1292 E-mail: [email protected] Website: www.charlostours.co.za Escape to the Cape Shaheed Ebrahim Tel: 021 674 0155 Cell: 083 555 3777 E-mail: [email protected] Website: www.escapetothecape.co.za
Iliso Tours and Events Shai Mkhulungu Tel: 021 699 0134 Cell: 082 672 8174 E-mail: [email protected] Website:
Kingdom Travel & Tours Marlyn Arendse Tel: 021 705 6177 Cell: 083 306 0550 E-mail: [email protected] Website: www.kingdomtt.co.za
Growing, Sharing, Delivering & Innovating Together 53 A total of 4 Tour Operators and 1 Tour Guide participate in the 2nd educational as follows:
Tour Operators Educational 23 – 24 June 2011 (Drakenstein Municipality)
Company Name Representative Contact Details
Esau’s Travel Alfredo Esau E-mail: [email protected] Tel: 071 444 5901 Bespoke Safari’s Johan E-mail: [email protected] Tel: 082 803 1727 Stubbs Tours Ronel Solomons E-mail: stubbstours@mweb.co.za Tel: 076 171 4404 La Rochelle Tours Aylmer Manko E-mail: [email protected] Tel: 082 256 1606 / 082 544 4847 Tour Guide Florence Philips Tel: 073 391 2943 Bus Driver Jefta’s taxis Tel: 082 256 6784
Staff: The aim of Staff educationals are staff of the many attractions and experiences that are on offer in the Cape Winelands. Atotal of 5 Staff educationals took place in the 2010/ 2011 financial year as follows:
AREA DATES Breedekloof & Langeberg 22 – 23 July 2010 Drakenstein 30 September 2010 Witzenberg & Franschhoek 2 December 2010 Langeberg 31 March – 01 April 2011 Breede Valley 02 – 03 June 2011
Freedom Run The Cape Winelands District Municipality (CWD) in partnership with Drakenstein Correctional Services Centre, Drakenstein Municipality and Cape TownRoutes Unlimited (CTRU) initiated the 2nd 27 for Freedom Run which took place on 12 February 2011. This initiative celebrates and honors the 27 years that the first democratically elected President of the Republic of South Africa, the Honorable, Dr. Nelson Rolihilalala Mandela, spent in prison for pursuing democracy and demolishing the apartheid system of our country. The event consists of 3 main races, i.e. 27km, 10km, 10km wheelchair race and 2 fun races, i.e. 5km fun walk/ run and a 50m toddler waggle. The main race, i.e. 27 km represents the 27 years that Madiba spent in prison.
2.3.3 PRODUCT DEVELOPMENT
Schools TourismAwareness Project The Schools Tourism Awareness Project is aimed at increasing tourism awareness in schools by creating an understanding of the industry through Grade 4 excursions, Grade 9 career road shows and planned further education and training (FET) tours. This project is implemented in 40 primary schools and 80 high schools. A
54 Growing, Sharing, Delivering & Innovating Together schools art competition is run annually among the primary schools forming part of the project which resulted in the production of a tourism art calendar. The winning artworks depicting tourism activities focus on our environment in the district. The schools project has recently partnered with environmental institutions such as Cape Nature and DEAT to address the environmental awareness aspect in schools. Through this agreement CWDM and DEAT are running Land care camps for schools in the region educating learners on the environment and the protection thereof.
Tourism Helpdesk (THD) and Community Training Through this Programme CWDM aims to support emerging tourism entrepreneurs in the Cape Winelands by building their capacity in effectively and profitably managing theirbusinesses in direct or indirect tourism. THD's have been trained and appointed by the Department of Economic Development and Tourism (DEDT) for the Cape Winelands to facilitate and run this training programme. The CWDM also appointed these THD's to do additional work by means of tourism outreach programmes, awareness sessions, etc. in the region. Through the THD Programme CWDM managed to reach a number of entrepreneurs wanting to start their own tourism businesses. The TourismHelpdeskAgents also provide on site mentorship and coaching for entrepreneurs needing assistance in registering, business planning and marketing.
Tourism Training The Cape Winelands District Municipality embarked on a process to improve the skills of entrepreneurs in the hospitality industry to provide services of the highest quality and excellence, therefore Culinary Training was initiated. This process involves improving the services rendered by SMME in the hospitality industry, such as, caterers, restaurants and accommodation facilities within the District that host stakeholders, i.e. tourism delegations including private- and government. Through thisculinary training , SMME's in the Cape Winelands District will be better equipped to capitalize on the prospect of increasing tourism activity and service excellence. Other courses such as Wine Courses, Event Management and Computer Literacy training were conducted under TourismTraning.
2.3.4 DIRECTORATE ENVIRONMENTAL PLANNING
The directorate, as a component of the Department Regional Development and Planning Services, focuses on aspects relating to the sustainable management of natural resources across the wide spectrum of environmental planning and environmental management.
Key processes continued with the involvement of the directorate which included work within an international context related to the Cape Winelands Biosphere Reserve as well as the ICLEI-Local Action for Biodiversity Programme.
Numerous land-use and development proposals have also been submitted to Council as commenting body; which included applications under the National Environmental Management Act (Act 108/1998) Environmental Impact Regulations. Applications included issues of solar energy, wind energy, tourism establishments, residential development, roads and other bulk infrastructure development and many others.
Key highlights are listed below in terms of the level of involvement and participation based on the scope of work within the directorate. These include amongst other: ? The directorate formed part of the South African delegation on the AfriMaB (African Cluster of Man and Biosphere Programme) with presentations delivered during the regional session together with 26 member countries and 22 African Biospheres; held in Nairobi, Kenya during September 2010. Progresses on the Madrid Action Plan (MAP) applicable to the global network of biospheres were made, featuring the Cape Winelands Biosphere Reserve as SouthAfrican case study. ? Presentations were delivered at the 2011 C.A.P.E. Partners Conference on the case of collaboration for natural resource management in the Upper Breede Region, hosted by South African National Biodiversity Institute (through the CAPE Coordination Unit) ElsenburgAgricultural Centre. ? The directorate participated in discussions on the value of Local Government contributing towards the
Growing, Sharing, Delivering & Innovating Together 55 management of natural resource programmes (InvasiveAlien Clearing) at 2011 Fynbos Forum.
The directorate continued as a key partner within the district to engage, plan and collaborate with partners along the following environmental forums and working groups. These include: ? Greater Cederberg Biodiversity Corridor Steering Committee and Working Group ? Stellenbosch NaturalAction Group, hosted by Stellenbosch Municipality ? Drakenstein Environment Reference Group, hosted by Drakenstein Municipality ? Upper Breede Collaboration Extension Group, hosted jointly by Cape Nature andAgriculture- Land Care ? Western Cape Wetlands Forum, hosted by WESSA ? Western Cape Biodiversity Planning and Implementation Committee, hosted by the Provincial Department EnvironmentalAffairs and SANBI ? Cape Winelands Biosphere Reserve – Section 21 Company ? Waverley Hills Eco-Centre and Green Fingers Initiative ? Working for Water Programme (CWDM as implementing agent)
The following projects related to CWDM Service Delivery Business Implementation Plans (SDBIP) have been implemented by the Directorate Environmental Planning.
2.3.4 ENVIRONMENTAL EDUCATIONAND AWARENESS PROGRAMME The Directorate continued efforts in the implementation of the programme dedicated to the environment and conservation sector within the Cape Winelands in order to enhance the level of environmental education and community awareness around natural resource management.
The programme, in its 3rd year of implementation, once again targeted schools across the district. Core environmental themes adopted and implemented included the following: ? Biodiversity & Conservation, ? River Health and Freshwater Ecosystems ? Awareness around the Cape Winelands Biosphere Reserve as UNESCO world heritage ? Organic Food Gardening ? Climate Change Secondary themes including careers in conservation, disasters i.e. floods and fires, cultural diversity and environmental leadership have also been introduced to learners and educators alike.
Learners participated, in amongst others, youth environmental camps, field trips and numerous environmental outreach activities; which essentially aimed at supporting the schools' curriculum as the CWDM 'Outdoor Classroom' approach. Over the year a total of 20 camps were hosted which afforded the opportunity for 1200 learners and educators from schools across the district to attend.
During the year 30 additional schools from the Cape Winelands district were also afforded the opportunity to attend the annual Biodiversity Expo held at Kirstenbosch Botanical Gardens. This event hosted by the South African National Biodiversity Institute (SANBI) aims to highlight the role of Conservation Education as a key strategy under the CapeAction for People and the Environment (C.A.P.E.).
Certain environmental calendar days were also celebrated across the Cape Winelands in order to highlight the participation by communities and schools. These included events and activities related to World Wetlands Day, Water Week, International Day for Biodiversity, World Environment Day and other national and international days dedicated to raising awareness on natural resources.
The year ended off with the hosting of the 2nd Annual Cape Winelands Environmental Expo and Youth Conference over a 2-day period in association with environmental institutions and conservation sector partners. The Expo was attended by 37 schools, 23 exhibitors and more than 700 guests representing sector partners, educators and other interested institutions. The exhibitions included displays and interactive sessions by Cape Nature, Land Services Movement, Agriculture (Land Care), Universities of Stellenbosch and Cape Town,AbbyAquacultureAdventures, Save the Sharks Foundation as well as Local Municipalities. Furthermore, learners were treated to presentations and live demonstrations by the Waverley Hills Eco-Centre, Cape Leopard Trust, Cheetah Outreach, Eagle Encounters as well as the
56 Growing, Sharing, Delivering & Innovating Together Dwars River Wildlife Education Trust. The 2-day youth conference also accommodated learners in practical sessions of waste recycling, environmental arts as well as break-away educational sessions for educators.
2.3.4. INVASIVEALIEN VEGETATION MANAGEMENT PROGRAMME This programme has been implemented over the past few years in order to address the key challenges related to the threat of invasive alien plants; in particular the degradation of riparian ecosystems, increased risks of veld fires, destruction of wetlands and the impacts on land-use especially where floods are concerned.
Simultaneously, the programme provides the mechanism to create jobs and address unemployment within the Green Economy; as it actively participates within the Environmental Sector of the Expanded Public Works Programme (EPWP). Various projects at a district level were awarded to community-based contractors for implementation; whereby work opportunities have been afforded to women (55%), youth (60%) and disabled persons (2%).
Project sites included work in the Klein Berg River, Breede River and Nekkies Wetlands, Paarl Mountain Nature Reserve, Agter Groenberg and Simonsberg Nature Conservancies, Witte River, Houtbaais River (McGregor), Limietberg Nature Reserve and other areas prioritized in terms of biodiversity value, water yield, catchment approaches, vegetation status, land-use impact and other scientific criteria. A total of 17 project areas across the district were planned and implemented, covering 2,325 hectares and providing an additional 407 work opportunities to CWDM's commitment to actively address poverty, unemployment and skills shortages within the Green Economy. Project Implementation was also prioritized along priorities of initial and follow-up clearing; as well as awarding contracts for chipping of biomass (which added treatment of an additional 154 hectares through community-based contracts).
Skills development remained a key component of the programme. Various accredited training courses were held where all contracting teams participated; training courses including the following: ? Chainsaw Operator ? HerbicideApplication ? Health and Safety ? FirstAid ? Field Safety and EnvironmentalAwareness ? Plant Identification ? Contingency Planning ? Worksite Management
Following the skills training component, project beneficiaries were officially handed the relevant accredited training certificates at events hosted by the directorate.
The programme has achieved the sound working relationship with other implementing agents and institutions including the Working for Water Programme, Land Care, Biodiversity and Wine Initiative, Cape Nature Stewardship as well as landscape initiatives such as the Cape Winelands Biosphere Reserve and Greater Cederberg Biodiversity Corridor.
In particular, a project area on the Witte River, resulted in a working relationship together w i t h Wo r l d Wildlife Fund for Nature (WWF-SA) and Cape Nature under the auspices of the WWF Water Neutral Scheme. This initiative draws on the involvement of the corporate sector in, amongst other, invasive alien clearing programmes to offset operational water usage, simultaneously increasing water yield, restoring ecosystems and protecting biodiversity in critically endangered habitats.
2.3.4. ENVIRONMENTAL MANAGEMENT FRAMEWORK (EMF) The directorate, in association with SRK Consulting, has produced the Status Quo Report, including draft set of GIS layered environmental information on the EMF for the study area which includes the Breede Valley, Witzenberg and Langeberg Local Municipalities. The report specifically concentrated on the current status of environmental attributes, accompanied by socio-economic activity within the landscape; with due regard for vegetation status, biodiversity, hydrology, seismic activity, veld fire risks, flood plain
Growing, Sharing, Delivering & Innovating Together 57 modeling, cultural heritage, solid waste management, agricultural activity and other land-uses.
The EMF highlights the critical importance of sound land-use decision making through the informed consideration of socio-economic development which is underpinned by environmental integrity. The purpose of the EMF is also to strengthen the environment component related to the Spatial Development Framework (SDF); in order to ensure that the district grows sustainably into the future and land-uses management is informed though credible frameworks.
The EMF process thus far included Project Steering Committee (PSC) workshops, stakeholder meetings and various discussions; attracting representatives from Agri-Western Cape, Sector Departments of Agriculture, Environmental and WaterAffairs, Local TourismAssociations and Heritage Committees, Local Municipalities, Cape Nature, Breede Overberg Catchment Management Agency and other key role players.
The process will continue with the identification of Environmental Impact Control Zones where specific land-use management objectives and guidelines will be established to guide future development in the landscape. The process of developing the EMF for the study area includes the compilation of Geographical Information Systems (GIS) layers on the various environmental attributes which aims to support land-use decision making and guidance as an inter-active tool.
2.3.5 REGIONAL ECONOMIC DEVELOPMENT
Local government in South Africa is still in the process of being defined and refined. District municipalities' role in monitoring and facilitating service delivery at local level has been further bolstered not only by the national government's call for accelerated and shared economic development, but also by the promulgation of district-wide Growth and Development Strategies. The Cape Winelands finds itself as a strategic space for promoting economic development, governance as well as sustainable development. In short, the district municipality is expected to lead local municipalities into the age of socio-economic hope and prosperity. To assume this leadership role, the district municipality is compelled to formulate strategic policies and developmental initiatives that would necessitate and thus, stimulate economic development at local level.
2.3.6 CAPE WINELANDS GROWTHAND DEVELOPMENT STRATEGY (CW-GDS)
In the 2009/2010 financial year the CWDM reviewed the CW-GDS that was adopted in 2006. GDS Review Summit was held on 29 April 2010. During the review and re-development of the CW-GDS a host of new stakeholders became part of the review and re-development process of the CW-GDS. This meant that these new stakeholders had to made aware of the CW-GDS.
Therefore, in the 2010/2011 financial year the CWDM embarked on CW-GDS awareness workshops with special focus on organised SMME forums in the District. The focus of the awareness workshops was on presenting the progress made in terms of implementation of the CW-GDS. In this financial year, two workshops were held in Langeberg MunicipalArea and Stellenbosch MunicipalArea.
2.3.7 CAPE WINELANDS ECONOMIC DEVELOPMENT COUNCIL (CW-EDC)
A key outcome from the Cape Winelands Growth and Development Strategy (CW-GDS) was the proposal that a CWEDC be constituted, comprising representatives from Government, Business, Labour and Civil Society, in order to facilitate ongoing consensus on addressing social and economic issues affecting the Cape Winelands District.
The role of the Economic Council is: Toprovide considered economic advice and guidance to the CWDM; To ensure implementation, modification and improvement of the Cape Winelands Growth and Development Strategy (CW-GDS); To establish a process for the development and approval of policies, initiatives, activities and reports that will guide the activities of the Council;
58 Growing, Sharing, Delivering & Innovating Together To review activities of the District and effects of the advice it has given, and to provide feedback (however not having operational or executive authority); and To acquaint itself with principles of good governance and commit in exercising its activities and responsibilities on behalf of the CWDM.
The challenges regarding the role and responsibilities of the CWEDC were resolved in this financial year. There was a better understanding in terms of role of the CWEDC and how they should feed in into the different structures of the CWDM.
Growth and Development Strategy (GDS) Outputs
Bio-fuels/Bio-energy feasibility study The CWDM is conducting a biofuels/bio-energy feasibility study. The goal of the feasibility study is to develop the Cape Winelands as a bio-energy provider to the Western Cape metropole. Biofuel production implies the utilisation of (mainly) plant material as feedstock/energy source for processing into solid fuel for electricity generation or liquid fuel for machines. The Bio-energy feasibility study is in its final phase which investigates the financial and economic viability of processing wood fibre into liquid fuel.
The current research deals with the viability of various lignocellulosic biomass based bio-energy systems in the CWDM from a financial, an environmental, as well as a social perspective using Multi-Period Budgeting (MPB), Life Cycle Analysis and Multi-Criteria Decision Making Analysis (MCDA). The aim is to develop a decision making tool for bio-energy systems based on the above mentioned criteria.
It entails the whole value chain from the primary production of the biomass including land preparation, maintenance, harvesting and pre-processing, the transport to a conversion site, further pre-treatment, to the final conversion of the feedstock into electricity and potential by-products. Given the complexity of such bio-energy systems a great variety of academic disciplines needs to be involved (e.g. Geography, Forest and Wood Science, Soil Science, Chemistry, Agricultural Economics, Agronomy, Logistics, as well as Chemical, Industrial and Process Engineering).
The final phase of the feasibility study could therefore not be completed due to the complexity of a great amount of data that had to be procured, understood, processed and normalised so that it fits the needs of the requirements of the respective financial, environmental and social models. This required that each step of the respective bio- energy value chains had to be thoroughly understood, discussed and implemented. The final phase of the feasibility study will thus be concluded within the new financial year.
2.3.8 CAPE WINELANDS LOCAL ECONOMIC DEVELOPMENT STRATEGY: REVIEW AND RE- DEVELOPMENT
In 2006 the Cape Winelands District Municipality adopted its Local Economic Development Strategy. The Cape Winelands District Municipality in the 2010/2011 financial year embarked on a process to review and re- development of a Cape Winelands Local Economic Development (LED) Strategy.
The Review included: ? A review of existing LED approaches and strategies within the Cape Winelands District Municipality and its B- municipalities ? It examined the progress achieved as well as the factors that have favoured and hindered the environment for implementing the CW-LEDS ? It investigated and seeked to understanding the views of the different stakeholders and interest groups regarding the implementation process of the CW-LEDS ? The defining of roles and responsibilities of the Cape Winelands District Municipality, B-municipalities, the private sector, civil society and labour unions ? Identifying stakeholders that can assist the CWDM to improve in the implementation process of the CW-LEDS
Growing, Sharing, Delivering & Innovating Together 59 The Re-development of the CW-LEDS included: ? Conducting assessments (District Economic Assessment, District Business Environment Assessment, Competitive Assessment and Strategic Choices, Assessment on Economic Inclusion, Assessment of Human Development Potential,Assessment on specific instruments for the development of the local economy). ? Developing CW-LEDS vision, mission, goals and programme strategies ? Developing the CW-LEDS Implementation Plan
Anumber of public participation workshops were held to facilitate the review and re-development of the CW-LEDS. The draft CW-LEDS has been submitted and is currently out for final inputs from stakeholders and roleplayers. As soon as all inputs have been received, the draft CW-LEDS will be submitted to Council for adoption.
2.3.9 LED PROGRAMMESAND PROJECTS a. LED Information Management Programme
Global Insight Regional Explorer Database The Regional eXplorer is a consolidated platform of integrated databases that provides accurate and up-to-date economic, socio-economic, demographic and development information on a spatial level. The modules included in the Regional eXplorer are demographic, development, labour, income and expenditure, economic, international trade, environment and weather and crime.
The CWDM has purchased user rights not only for the CWDM but also for the five local municipalities within the District.
Four quarterly reports extracting the data/ statistics from the Regional eXplorer database was submitted to the Cape Winelands District Mayoral Committee for perusal.
Cape Winelands Economic Evaluation Tool The Cape Winelands Economic Evaluation Tool was first developed in the 2009/2010 financial year. The CW Economic Evaluation tool is based on the broad objectives as set out in the CW-GDS and CW-LEDS. It is important for the CWDM to be informed of socio-economic progress (as set out in the objectives and targets of its development strategies) in order to make informed decisions regarding the effectiveness of the development strategies implemented by the CWDM.
The CW Economic Evaluation tool has been available to the local municipalities within the District and LED officials in the District has been trained on how to use the tool as well as how to update the tool for their respective municipalities.
The CWDM updates the CW Economic Evaluation Tool using data/ statistics from the Global Insight Regional eXplorer database. When the re-develop CW-LEDS is adopted the CW Economic Evaluation Tool will be adjusted to include the new objectives, targets and indicators of the CW-LEDS.
Cape Winelands Business Guide 2011 The Cape Winelands business / investor guide was initially published in the 2008/2009 financial year. In the 2010/2011 financial year the Business Information Guide was updated using the information and statistics extracted from the Global Insight Regional Explorer Database.
Cape Winelands Investment Promotion and Marketing DVD The CWDM has recently finalised its Investment Attraction and Opportunities Strategy (CW-IAOS) for the region. The objectives of the Strategy are to attract investment and identify investment opportunities within the Cape Winelands District which must contribute to job creation, skills development and diversification.
In 2010/2011 the CWDM created an Investment Promotion and Marketing DVD for the District. The Cape Winelands Investment Promotion and Marketing DVD include: ? General overview of the Cape Winelands as an investment destination;
60 Growing, Sharing, Delivering & Innovating Together ? Brief introduction to the economic sectors; ? Investment profiles for each of the B-municipalities within the District; and ? Potential investment opportunities as identified by the B-municipalities within the District.
Advertorials A number of advertorials were published in Trade InvestSA, Western Cape Business Guide, Beyond Publishing, Achiever and Opportunity magazines.
LED Capacity Building Training As part of skills development and capacity building for both LED officials and LED Portfolio Councillors in the District, CWDM identified a LED Capacity Building Training programme to be implemented in the District.
This LED course revisits the strategic elements of LED planning in Local Government and aims to instil the latest thinking and developments within the LED field. The course looks at strategic planning elements in LED, as well as an introduction to LED related development indicators. The need for any LED official and Councillor to understand and interpret the regional environment in terms of demographics, socio-economic conditions as well as trade and economic development imperatives is regarded as critical to LED planning at the local government level.
The training was to take place once the CW-LED Strategy has been finalised and new Council has been appointed. Due to time constraints the training could not be implemented.
2.3.10 LED PROJECTS Small Business Support Programme The Cape Winelands District Municipality's agreement with the Small Enterprise Development Agency(SEDA) continued for the 2010/2011 financial year. The business support programme provides training and skills to new entrepreneurs as well as business planning and development support.
Training & Skills Development Component The different training programmes offered to entrepreneurs within the District included:
BusinessAwareness: (1 Day Workshop) 1. Types of Business & Characteristics of an Entrepreneur 2. Developing a Business Idea & Basic Market Research 3. Basic Business Development 4. Costing-calculating start-up cost, product costing and pricing & raising finance Seda Start-Up 1 1. Entrepreneurship & Ideas 2. Money Matters-making sure you are going to make a profit 3. Marketing your business 4. Business Structure & managing your own business 5. Finance
Basic Business Skills 1. Module 1: Dynamics of Small Business Management in SouthAfrica 2. Module 2: Managing your Money 3. Module 3: Marketing your Business 4. Module 4: Basics of Selling
Small Enterprise Start-Up 1. Entrepreneurship, Business Ideas & Opportunities and Managing a Small Business 2. Business Tools,Basic forms and Templates 3. Costing & Pricing and Managing Money 4. Small BusinessAdministration, Basic Record Keeping and LegalAspects 5. Marketing Management 6. The Business Plan
Growing, Sharing, Delivering & Innovating Together 61 The aim of the agreement was to provide the necessary capacity to small businesses and entrepreneurs in the District and to ensure growth and sustainability. The agreement made provision for 120 training opportunities throughout the district; the actual amount of entrepreneurs who participated in the training is 434 entrepreneurs.
Mentorship Programme The agreement with SEDA also entails a mentorship programme for the beneficiaries of the Entrepreneurial Seed Fund. It is compulsory for all beneficiaries to partake in the mentorship programme. Diagnostics assessments and mentoring by SEDA on the Entrepreneurial Seed Fund SMMEs was done. SEDA also provided assistance in advertising, promotional and marketing material.
Financial Literacy Project The Cape Winelands District Municipality has entered into agreement with the University of Stellenbosch's Legal Aid Clinic with regard to the promotion of financial literacy programmes for Grade 12 learners within the Cape Winelands area.
The Project focused on presentations of money skills workshop for Grade 12 learners by 3rd Year Financial Planning students and 3rd year LLB students. The students avail themselves voluntarily. The duration of the presentation is approximately 60 minutes and provision is made for separate venues to accommodate both Afrikaans and English scholars. The workshop and the individual students are then evaluated by the project co- ordinator and group members. The learners also evaluate the workshop and receive copies of the module, Money Skills for Learners, including brochures about the Credit bureaus and The National Credit Regulator. Each learner also receives an attendance certificate.
The initial amount of scholars targeted was 200 but fortunately 1233 scholars could benefit from the project.
Entrepreneurial Seed Fund Programme The Entrepreneurial Seed Fund Programme provides direct support to SMMEs within the district that requires assistance in order to establish them and/or grow in the form of a grant-in-kind. The Entrepreneurial Seed Fund Programme supported 80 SMMEs in this financial year.
The entrepreneurs ranged from women-owned to youth-owned businesses throughout the district. Most of the entrepreneurs also completed their mentorship programme and was equipped with the necessary skills to manage their businesses. Some of these SMMEs could provide permanent and/or casual employment to people in the different areas.
One of the beneficiaries, Mr. Dwain Maralack from Miiweb CC, Paarl, was a runner-up for the Absa Wecbof Business Person of the Year competition in February 2011. His business focuses on website designing, maintenance thereof and hosting websites. Another beneficiary of the programme, Ms Juliana Erasmus, Worcester, hosted a fashion show on 7 October 2010 at Hoër Tegniese Skool Drostdy in Worcester. She also took part in the Cape Winelands Tourism& Trade Expo 2011 at Paarl Mall held from 25-26 March 2011 and won the Best Exhibition Stand Floating Trophy.
LED Trade Expos The CWDM hosted the Cape Winelands Tourism & Trade Expo from 25-26 March 2011 at Paarl Mall. Twenty SMMEs throughout the district were identified to participate in the Expo. The aim of the expo was to provide an opportunity for SMMEs to market their products and services locally. The type of SMMEs which participated included, fashion designers, health & fitness, crafters, small business consultants, marketing, security, stationary, décor & hiring. Drakenstein Business Summit & LED Expo Officials of the LED Department attended & exhibited the Drakenstein Business Summit & LED Expo on 21 October 2010 at the Nelson's Creek Wine Estate in Wellington. The objective of the Expo was to endorse the Vision 2020 for the Drakenstein Municipality.
62 Growing, Sharing, Delivering & Innovating Together 2.3.11 REGIONAL ECONOMIC DEVELOPMENT
Local government in South Africa is still in the process of being defined and refined. District municipalities' role in monitoring and facilitating service delivery at local level has been further bolstered not only by the national government's call for accelerated and shared economic development, but also by the promulgation of district-wide Growth and Development Strategies. The Cape Winelands finds itself as a strategic space for promoting economic development, governance as well as sustainable development. In short, the district municipality is expected to lead local municipalities into the age of socio-economic hope and prosperity. To assume this leadership role, the district municipality is compelled to formulate strategic policies and developmental initiatives that would necessitate and thus, stimulate economic development at local level.
CAPE WINELANDS GROWTHAND DEVELOPMENT STRATEGY (CW-GDS)
In the 2009/2010 financial year the CWDM reviewed the CW-GDS that was adopted in 2006. GDS Review Summit was held on 29 April 2010. During the review and re-development of the CW-GDS a host of new stakeholders became part of the review and re-development process of the CW-GDS. This meant that these new stakeholders had to made aware of the CW-GDS.
Therefore, in the 2010/2011 financial year the CWDM embarked on CW-GDS awareness workshops with special focus on organised SMME forums in the District. The focus of the awareness workshops was on presenting the progress made in terms of implementation of the CW-GDS. In this financial year, two workshops were held in Langeberg MunicipalArea and Stellenbosch MunicipalArea.
CAPE WINELANDS ECONOMIC DEVELOPMENT COUNCIL (CW-EDC) A key outcome from the Cape Winelands Growth and Development Strategy (CW-GDS) was the proposal that a CWEDC be constituted, comprising representatives from Government, Business, Labour and Civil Society, in order to facilitate ongoing consensus on addressing social and economic issues affecting the Cape Winelands District.
The role of the Economic Council is: ? Toprovide considered economic advice and guidance to the CWDM; ? To ensure implementation, modification and improvement of the Cape Winelands Growth and Development Strategy (CW-GDS); ? To establish a process for the development and approval of policies, initiatives, activities and reports that will guide the activities of the Council; ? To review activities of the District and effects of the advice it has given, and to provide feedback (however not having operational or executive authority); and ? To acquaint itself with principles of good governance and commit in exercising its activities and responsibilities on behalf of the CWDM.
The challenges regarding the role and responsibilities of the CWEDC were resolved in this financial year. There was a better understanding in terms of role of the CWEDC and how they should feed in into the different structures of the CWDM.
Growth and Development Strategy (GDS) Outputs
Bio-fuels/Bio-energy feasibility study The CWDM is conducting a biofuels/bio-energy feasibility study. The goal of the feasibility study is to develop the Cape Winelands as a bio-energy provider to the Western Cape metropole. Biofuel production implies the utilisation of (mainly) plant material as feedstock/energy source for processing into solid fuel for electricity generation or liquid fuel for machines. The Bio-energy feasibility study is in its final phase which investigates the financial and economic viability of processing wood fibre into liquid fuel.
The current research deals with the viability of various lignocellulosic biomass based bio-energy systems in the CWDM from a financial, an environmental, as well as a social perspective using Multi-Period Budgeting (MPB), Life Cycle Analysis and Multi-Criteria Decision Making Analysis (MCDA). The aim is to develop a decision making tool for bio-energy systems based on the above mentioned criteria.
Growing, Sharing, Delivering & Innovating Together 63 It entails the whole value chain from the primary production of the biomass including land preparation, maintenance, harvesting and pre-processing, the transport to a conversion site, further pre-treatment, to the final conversion of the feedstock into electricity and potential by-products. Given the complexity of such bio-energy systems a great variety of academic disciplines needs to be involved (e.g. Geography, Forest and Wood Science, Soil Science, Chemistry, Agricultural Economics, Agronomy, Logistics, as well as Chemical, Industrial and Process Engineering).
The final phase of the feasibility study could therefore not be completed due to the complexity of a great amount of data that had to be procured, understood, processed and normalised so that it fits the needs of the requirements of the respective financial, environmental and social models. This required that each step of the respective bio- energy value chains had to be thoroughly understood, discussed and implemented. The final phase of the feasibility study will thus be concluded within the new financial year.
2.3.12 CAPE WINELANDS LOCAL ECONOMIC DEVELOPMENT STRATEGY: REVIEW AND RE- DEVELOPMENT
In 2006 the Cape Winelands District Municipality adopted its Local Economic Development Strategy. The Cape Winelands District Municipality in the 2010/2011 financial year embarked on a process to review and re- development of a Cape Winelands Local Economic Development (LED) Strategy.
The Review included: ? A review of existing LED approaches and strategies within the Cape Winelands District Municipality and its B- municipalities ? It examined the progress achieved as well as the factors that have favoured and hindered the environment for implementing the CW-LEDS ? It investigated and seeked to understanding the views of the different stakeholders and interest groups regarding the implementation process of the CW-LEDS ? The defining of roles and responsibilities of the Cape Winelands District Municipality, B-municipalities, the private sector, civil society and labour unions ? Identifying stakeholders that can assist the CWDM to improve in the implementation process of the CW-LEDS
The Re-development of the CW-LEDS included: ? Conducting assessments (District Economic Assessment, District Business Environment Assessment, Competitive Assessment and Strategic Choices, Assessment on Economic Inclusion, Assessment of Human Development Potential,Assessment on specific instruments for the development of the local economy). ? Developing CW-LEDS vision, mission, goals and programme strategies ? Developing the CW-LEDS Implementation Plan
A number of public participation workshops were held to facilitate the review and re-development of the CW- LEDS. The draft CW-LEDS has been submitted and is currently out for final inputs from stakeholders and roleplayers. As soon as all inputs have been received, the draft CW-LEDS will be submitted to Council for adoption.
64 Growing, Sharing, Delivering & Innovating Together 2.4 RURAL & SOCIAL DEVELOPMENTAL SERVICES
65 Growing, Sharing, Delivering & Innovating Together 2.4.1 RURAL AND SOCIAL DEVELOPMENT DEPARTMENT ANNUAL REPORT
In the year under review, the Department of Rural and Social Development continued to deliver service to those who are most vulnerable and marginalised, bringing about real change in the lives of individuals and communities in the Cape Winelands District. Service delivery partnerships have been forged with government and non- government institutions, communities and residents, from which thousands of rural citizens, vulnerable families, the disabled, women, youth, the elderly and children have benefitted. During the 2010/2011 financial year the Department focussed on the empowering of vulnerable groups, building of human, investing in social capital and rural development programmes.
In theempowerment of vulnerable groups programmes the focus was on contributing to the National Youth Service programme by creating opportunities for young people to empower themselves, to make informed decisions freely, take actions based on these decisions and accept responsibility for the consequences of that actions. Skills training and capacity building of women in farming areas were implemented; livelihoods of elderly and disabled persons were improved through interventions with other key stakeholders. Positive parenting, healthy balanced family life, moral regeneration and positive behaviour in families were promoted through interventions. Projects under this programme included youth, women, disabled, elderly, families and children.
Thebuilding of human capital puts a specific focus on opening the doors of learning and culture. In this programme needy Early Childhood Development centres were supplied with Educational Toolkits in order to improve the numeracy and literacy amongst children in poor rural communities. Staff at beneficiary Educational Development Centres was capacitated through a holistic childhood development programme. Health and Development Committees from the eastern region were trained in organisational development in order to capacitate them to function as Non-profit organisations. Opportunities for unemployed youth were facilitated and created which gave youth access to learnerships, bursaries and training opportunities. Earle Childhood Development, Capacity Building of Health and Development Committees and Youth are projects which formed part of this programme.
Theinvestment in social capital programme looked at pushing back the frontiers by supporting organizations that contribute to achieving the national and district aspirations of the country by serving communities and individuals who are most in need, through the Community Support Project. People were empowered to take active part in the social and economic life of our district, our province and country. This programme aims to transform communities and towns through the building of cohesive, sustainable and caring communities with access to social amenities, including sport and recreational facilities. Resources are dedicated to strength the national plan on and fight against HIV, AIDS and STI. Lifestyles of poor communities are improved by implementing programmes that focus on substance abuse awareness and healthy lifestyles. The projects in this programme include Community Support Funding, HIV /Aids, SubstanceAbuse, Sports and Recreation.
Engaging in rural development focuses on working together with the farming community to prioritise issues that affects farm workers and farm dwellers. It intensifies and expands implementation and delivery of land and agrarian reform. Through innovative interventions, the conditions of farm workers, farm dwellers and their families are improved and the potential for rural sustainable livelihoods are building. Small Farmer Support, Tenure Security, Civil Rights Education and Food Security are projects under the Rural Development programme.
2.4.2 PROJECTS:
1. WOMEN Description: Providing life and technical skills training opportunities for unemployed women. Skills development has been identified as one of the most important focuses for economic growth and poverty alleviation in South Africa. The agriculture sector not only stimulates economic growth in the Western Cape, it also plays a major role in creating sustainable job opportunities. The Agricultural sector in the Cape Winelands region provides tourism development opportunities. In the Rural and Social development strategies of the Department, skills development was identified as one of the priority needs for sustainable development in rural communities within the Cape Winelands District. The lack of skills development opportunities contributes to the increasing unemployment rates amongst youth and women in rural areas. Although Wine tasting is a common tourist phenomena in the region, a shortage of appropriate skills in this field, exist amongst local people. 25 Women from
Growing, Sharing, Delivering & Innovating Together 69 farming areas in Robertson were trained as Wine Tasting Room Assistants. The training consisted out of various modules namely, Introduction to Robertson Wine Valley, Personal Leadership and Self Development, Technical Wine Knowledge, Serving and Food Paring of Wine, Interpersonal sales & service, Customer relations, Introduction to computers, Emotional Intelligence, Time, Stress and Conflict Management, Basic calculations and finance management in Wine Cellars, Event Coordination, Presentation skills, General Business Communications and etiquette and English Communication. This skills training opportunity enhance the employability of local farm women. They were provided the opportunity to excel from Farm Worker to a career as Wine TastingRoomAssistant.
30 Vulnerable women from Breede Valley were trained in Life Skills in order to enhance their self-esteem and ability to address their vulnerability in their communities.
2. YOUTH Description: Provide unemployed youth with job readiness and technical skills training opportunities. Equip Grade 12 learners with life skills and celebrate youth achievements across the District
Unemployed Youth 49 Unemployed youth from Langeberg and Witzenberg were trained in life skills which consisted of Personal Development, Effective Communication, Goal setting and life plans and Personal finance. This training programme equipped participants with general life skills and skills which are applicable to the world of work.
180 Unemployed youth from Breede Valley, Drakenstein and Stellenbosch were trained in Job Readiness and Entrepreneurial skills. This training programme was done in partnership with other stakeholders. The training covered topics like Discover Your Identity; Anger Management, Emotional Intelligence, CV writing, Job interviewing skills and Entrepreneurial development. The participants of Breede Valley engaged in a Job Shadowing programme by volunteering at Community based organisations. Volunteering has become an integral part of occupying unemployed youth, acquiring skills and enhancing their CVs. Through this programme the employability of the participants are enhanced.
The Department supported a Computer training programme in which 35 unemployed youth from Drakenstein were trained in Basic Computer Literacy skills. This opportunity gave unemployed youth access to training which will enhance their skills and employability.
Grade 12 Programme 500 Grade 11 learners and their parents from across the Cape Winelands District participated in “Born Free Dialogues”. During these interactive dialogues, Learners and their parents are provided opportunities to express their expectations from each other. This programme facilitates open communication between learners and their parents.
500 Grade 12 Learners which attended the Born Free dialogues were targeted for Life Skills camps. These camps are facilitated by Love Life and the content of the programme includes, Personal Values, Personal Qualities, Self- Esteem, Get Attitude, Who am I? ,Personal Vision, Personal Goals, Personal Planning, Dealing with conflict, A time to change, Basic communication, Becoming an effective communicator, Discover your career, CV writing, Interview Skills and healthy lifestyles. The objective of this programme is to enhance the ability of Grade 12 learners from disadvantaged backgrounds to cope with their challenges and to excel despite their circumstances. This programme also aims to increase the matric pass rates of learners at disadvantaged schools.
Youth Day A district Youth Day Event was held in Op-die-Berg in the Witzenberg region. The event was attended by approximately thousand youth from across the district. The programme included various motivational speeches and interactive performing arts and cultural activities.
3. DISABLED Description: Improving livelihoods of people with disabilities through access to assistive devices, wheelchairs and celebrating their rights by participation in community activities 45 Patients from the Department of Health's waiting list were identified as beneficiaries for wheelchairs. The wheelchairs will enhance their mobility and ensure that they will have access to public services and facilities.
67 Growing, Sharing, Delivering & Innovating Together Approximately 2000 persons across the district participated in a disability festival during on 3 December 2010. The festival started with a march which raised awareness on disability issues, child abuse, women abuse and HIV/Aids.
The Department supported a Disability Conference of the University of Stellenbosch which were held in Worcester. During this conference the disability sector proposed vital interventions which should be facilitated to ensure accessibility and inclusiveness of disabled persons.
4. ELDERLY Description: Strengthening partnerships with elderly service centres in order to improve service delivery, care and support to the elderly. Supporting development and empowerment interventions focussing on the elderly Implementing awareness programmes focussing on the rights of the elderly
The Golden Games is a programme of Department of Social Development through which elderly person are encouraged to participate in sports activities. The theme for 2010 Golden Games was “Encouraging Active Ageing “On the 4th of September 2010 CWDM Department of Rural and Social development in partnership with Department of Social Development and Age-in Action, hosted a Golden Games event for the Elderly of the Eastern Region at Boland Park stadium in Worcester. There were 500 elderly participants from Service Centres in the Witzenberg, Langeberg and Breede valley areas.
On the 12 September 2010 the Golden Games for the Elderly of the Western region was held Cloetesville sports ground in Stellenbosch. This event was attended by Elderly service centres from Stellenbosch and the Drakenstein area. There were 600 elderly people that participated in this event. A team of participants was selected to represent the Cape Winelands District in the Provincial Golden Games. More than 600 senior citizens of the 6 regions namely West Coast, Cape Winelands, Overberg, Central Karoo, Eden and Cape Metropolitan in the Western Cape participated in the Provincial Golden Games on 30 September 2010 at the De Jager Sports Complex in Oudtshoorn.
The provincial team participated in the National Golden Games which took was held at the Umhlathuze Sports Complex in Richards Bay on 25-28 October 2010.The National Golden Games is the culmination of the on-going nation-wide Golden Games program, run in Service centres for older persons with the aim of keeping the elderly physically active and thus helping to improve and keep up their physical well-being.
By providing the support the Department Rural and Social Development ensured that Elderly people are given an opportunity to actively participate in sports activities and to compete in the National Golden Games.
ElderlyAwareness Workshops 5 Elderly Awareness Workshops were held in the respective B-Municipal areas. Love Life facilitated these workshops which included topics such as, HIV/Aids awareness, Team building, Community Dialogue, My Personal Shield, and the Gogogetter Programme. These workshops gave elderly persons the opportunity to obtain information on their rights and how they could still actively contribute to government initiatives and public participation programmes.
Social Relief Programme Service Centre mangers in cooperation with Social Workers identified elderly persons in their Service Centres who are living in extremely impoverished conditions. These elderly persons were identified as beneficiaries for social relief in the form of food parcels. The Department has managed to provide social relief to 382 poor elderly persons.
5. FAMILIESAND CHILDREN Description: Improving the livelihoods of vulnerable families and children by implementing support interventions in partnership with stakeholders
Vulnerable families and children were supported by involving them in family building, parenting and development programmes.
Growing, Sharing, Delivering & Innovating Together 68 Family Intervention Camp for families of Harmonie Farm in Montagu was held in partnership with MontagueAdvice Office and the owners of Harmonie Farm. During this camp families were actively participating in programmes that dealt with Career and Education planning, Financial planning, Affordable Nutrition, Importance of Free time and “Me” time, Social and Communication Skills, Self-management , Relationships, How to life a balanced life, Substance Abuse, Dealing with stressors, What is a family, Function of a family and Support systems. The objective of this programme was to raise awareness amongst every member of the family regarding the identification and understanding of their roles within the family structure, in order to function as a healthy family within a community. Families are the corner stones of communities and it is important for families to strive towards reclaiming their place in communities.
In partnership with Department of Social Development Boys to Men and Mother and Daughter Workshops were held. These workshops provide mothers and men to communicate their experiences and challenges to daughters and boys in the respective workshops.
Educational Excursions for farm school learners e.g. Parliament and Robben Island The Department in partnership with GCIS and the Department of Education have been presenting Civic Education session to Secondary School learners across the District. This session emanates from the SONA of 2009. The than President Mr Thabo Mbeki indicated that youth in particular have shown no real interest in regards to how government functions and show apathy in regards to the work of government. Youth as the leaders of tomorrow definitely needs to be empowered with information that they can use to better their livelihoods. These sessions are linked to an education excursion to Parliament and in some cases Robben Island, to give the youth a real session of our South African historical background as well as meeting Members of Parliament, to share their ideas on development of our country and our district in particular. At Parliament youth have the privilege and opportunity to engage with a member of parliament and discuss the matter of development in the District. Furthermore they will attend an information session that focuses on our National emblems, our heritage and the rights and responsibilities of youth.
The tour also entails a visit to the National Assembly as well as the National Council of Provinces. At both these houses in-depth presentation is done on the function of Parliament. These visits to parliament created a definite feeling and session of belonging and youth start to articulate how their can change their communities
Visits to the Robben Island were done at four occasions after the visit to parliament. This visit to parliament and Robben Island main aim is to ensure that youth actively start to engage with our political and administrative leadership at Local Government level and start to participate in the programmes presented by the District Municipality. The participating schools were: 1. Worcester Secondary School - 55 - 24/02/2011 2. Naudees Hof farming Community - 52 - 22/10/2010 3. Orchard Primary school - 58 - 26/11/2010 4. Riverview andAvain Park - 55 - 25/02/2011 5. Siayfuneka Primary School - 105 - 29/02/2011 6. Aan de Doorns primary School - 60 - 9/08/ 2010 7. Bo Doorn Rivier - 164 - 23/09/2010 8. Stettyn primary School - 82 - 9. Riverview Youth Brigade - 59 - 17/09/2010
6. EARLYCHILDHOOD DEVELOPMENT: Description: Providing educational toolkits to Early Childhood Development Centres and ECD Training to ECD staff in the District. Building the capacity of ECD Forums across the District.
100 ECD Centres in poverty pockets received educational toolkits. 200 ECD Centre staff received 6 weeks training in holistic early childhood development and ECD facility registration requirements. The training was presented by Occupational Therapist of Department of Health, Department of Social Development and CWDM Environmental Health Practitioners. Through this project the ECD environment has improved, access to educational material was provided and ECD networks in the district were enhanced.
68 Growing, Sharing, Delivering & Innovating Together 7. CAPACITY BUILDING OF HEALTHAND DEVELOPMENT COMMITTEE Description: Capacity building of Health and Development Committees across the District with the aim of registering them as NPO's.
5 Health and Development Committees, namely, Op-die-Berg, Tulbagh, Kanetvlei, Nuy/Overhex and McGregor was capacitated to function as Rural Development Forums. The training included drafting of constitutions, Financial Management, Funding proposals and fundraising techniques; NPO registration, SWOT analysis and objectives of the organisation, Roles and responsibilities of executives and personal development of members.
FirstAids Training First Aid level 1&2 combined training courses were presented to 170 persons from Health and Development Committees and Unemployed youth across the district. The purpose of the first aid training was to equip people that are living on farms with first aid skills in order for them to assist persons that are in need of immediate medical attention whilst they wait on paramedics to arrive.
8. COMMUNITY SUPPORT PROGRAMME Description: Support civil society organizations in rendering services focusing on poverty alleviation and rural development amongst communities in the Cape Winelands Community.
By supporting civil society organizations through the Community Support Funding programme, services that focus on poverty alleviation and rural development are enhanced amongst communities in the Cape Winelands District. Vulnerable groups and rural poor have gained increased access to social and rural development services across the district. During the period February - March 2011, service level agreements was signed with 147 Community Based Organisation across the district. The following number of organisation per B-Municipal was allocated funding: Drakenstein; 33 Stellenbosch: 26 Breede Valley: 43 Langeberg: 27 Witzenberg: 18 Total:147 TotalValue: R2.100 000 . 9. HIV/AIDS PROJECTS Description: Implementation of interventions focusing on reversing the effects of the pandemic in the district by the implementation of awareness campaigns including WorldAids day and 16 Days of activism.
HIV/Aids Benchmarking The mainstreaming of HIV and AIDS is a local government mandate and a very important tool to assist municipalities in their response to HIV and AIDS. The Centre for Municipal Research and Advice has selected CWDM to be part of the HIV/Aids Benchmarking Project.M unicipalities which are participating in the benchmarking project were supported by CMRA to mainstream HIV and AIDS within their municipal IDP's. A delegation of The Centre for Municipal Research and Advice is visited the CWDM from 16-18 March 2011 to assist with mainstreaming of HIV and AIDS in the departmental service delivery plans of the Rural and Social Development Department and within the IDP.
Nutritional Food Parcels 250 Nutritional Food parcels were distributed per month for the period of 6 months to patients across the district that is onARV treatment. TheARV treatment is not effective if patients are not receiving the correct nutritional diets. The type of support was crucial in alleviating increased mortality rates in poor households.
16 Days ofActivism Catalytic events were organised in partnership with various partners for the 16 Days ofActivism Campaign against Women and Child Abuse. The launch of the 16 Days of Activism was held on 25 November 2011 at Kleinplasie in Worcester. The District World Aids Day event took place at Callie De Wet stadium in Robertson. A Community disability festival attended by 5000 on 3&4 December 2010 formed part of the 16 days of activism activities.
Growing, Sharing, Delivering & Innovating Together 70 Various awareness campaigns on HIV/Aids were held across the District. This included a Business Breakfast through which awareness was raised on the impact of HIV/Aids in the Workplace. This programme was attended by 80 persons of businesses in the district. The “It's My Life “DVD was launched as part of the awareness on Healthy Life Styles. This DVD provides information on the prevention and management of life style diseases.
10. COMBATTING SUBSTANCEABUSE Description: Implementation of interventions focusing on addressing drug and alcohol abuse in communities within CWDM
The 'As die Dop skop” dvd was launch as an audio visual method of awareness on impact of substance abuse. This DVD was distributed to various partners and has reached more than 19 000 persons across the district. Feedback on the impact that the DVD had on people were recorded because people and even children could identify with the aspects of the dvd.
Peer Counselling training 80 Grade 8 learners from various schools in the district have been trained in Peer Counselling. The training equipped learners to provide a support and referral system for their peers who are encountering social challenges and abuse.
Drug Rehabilitation Toevlug has been identified for the rehabilitation of 20 youth who are in need of institutional treatment. Referrals are done via the Department of Education and Department of Social Development.
11. SPORTAND RECREATION Description: Enhancing and maximizing access of vulnerable groups, farm dwellers and children to sports and recreation opportunities and events.
The following grass root sport interventions were supported:
Fit-2-Run: Youth athletes were supported by the provision of transport and catering during the Boland Track and Field Athletics event, the Relay Challenge, Boland Cross Country Relay and league races.
Zweletemba Sports Forum Asports day event of Zweletemba Sports Forum was supported by the provision of sports equipment and trophies. The objective of this event was to utilize sports as an activity to address xenophobic attacks in Zweletemba.
Love Life The Department in partnership with Love Life hosted the Provincial Games in Worcester through which 500 Youth participated in sports activities. Catering and transport were provided for participants from the Cape Winelands District.
Cape Cobra Pre-Season Tour The Cape Cobra Cricket Pre-Season Tour was hosted by the Department in partnership with other stakeholders. Selected Nashua Mobile Cape Cobras players participated in the activities within Cape Winelands District, specifically Robertson and Worcester between from 7- 9 September 2010 as part of their Pre-Season Tour. Their programme included a training camp, playing matches and visiting surrounding schools. On Wednesday, 8 September 2010, the Cape Cobras, South African Police Service and Cape Winelands District Municipality participated in “lucerne” cricket with farm children from the surrounding areas. These farms included De Wet (next to Glen Heatlie Primary School), Worcester and on Madeba Farm, Robertson.
Easter Rugby Tournament Villagers and Hamilton's Easter Derby is a Rugby tournament which forms part of the highlights of the Breede Valley Easter Social Calendar. 16 Rural Netball and Rugby teams participated in a competition at Rawsonville sports grounds during the Easter weekend.
71 Growing, Sharing, Delivering & Innovating Together Informal Golf Tournament The Avianview Golf Club promotes golf under the disadvantage youth from gangster orientated areas. Through this sport, youth are engaged in healthy life style activities which ensure that they are not caught up in social evils like substance abuse and gangsterism
Informal Cricket Vlakkie Cricket tournaments are played by teams of disadvantage communities. Through this sport, youth are engaged in healthy life style activities which ensure that they are not caught up in social evils like substance abuse and gangsterism
Cricket Sets 12 Mobile Cricket Sets were handed to SAPS for Cricket and Crime Prevention Programmes on Farms in the Drakenstein area. During this event coaching clinics and cricket matches were played. This event was covered by Super Sports.
Freedom Run: The Department maximised participation of vulnerable groups by mobilizing, 1000 scholars,500 Farm dwellers, 50 disabled and 250 elderly persons to participate in the freedom run.
Sports Indaba A District Sports Indaba for 200 representatives of sports associations, municipalities Government Departments and Informal sports organisations was organised. The concerns and inputs about the role and impact of sports raised at the Indaba were taken to the Provincial Sports Indaba. Inputs will also inform the IDPs of the municipalities.
12. ID CAMPAIGN An ID Campaign was implemented from 6-26 February 2011 and during the month of April 2011 in partnership with the Department of Home Affairs, GCIS, Municipalities and the Community Development Workers of the Department of Local Government and Housing. During February 2011 a period of 6 days was allocated to each B- Municipal area for the ID Campaign.
The following statistics were recorded:
Area Application First Re- Late Temporary for Birth, application Application Registration Identity Marriage& for an ID for an ID of Birth Certificate Death BI-9 BI-10 Certificates BI-54 Witzenberg 48 754 799 38 0
Breede 49 714 1175 28 0 Valley Langeberg 49 541 870 41 0 Stellenbosch 0 230 576 54 0
Drakenstein 0 521 1455 31 0
TOTAL 146 2760 4875 192 0
Growing, Sharing, Delivering & Innovating Together 72 The ID Campaign affords poor people from rural areas across the district to access services for an ID document or a birth registration. ID document enabled rural poor to access government services and enhanced the employability of unemployed persons.
13. SMALL FARMERS SUPPORT Description: Contributing to the growth and development in the small farming sector by providing financial and technical support to emerging and small farmers in the Cape Winelands.
14 Small farmers applications from across the district were approved for funding. Service Level Agreements were signed with the approved beneficiaries. The funding enabled small scale farmers to improve their farming activities and to increase their profits.
14. CIVIL RIGHTS EDUCATION FOR FARM DWELLERS Description: Implementing civil rights education programmes for farm dwellers that will improve their livelihoods
Farm Dwellers and stakeholders in the Agriculture sector were trained in the promotion of human rights, tenure rights, Labour Laws and sustainable development. A Farm Worker open day was held and attended by 300 persons. At the Farm Worker Open Day, dialogue was facilitated between farm workers, farm dwellers, farm owners and other stakeholders in the sector. Relevant information was distributed and sports, arts and cultural activities also formed part of the activities of the day.
15. SOCIAL RELIEFAND FOOD SECURITY FOR FARM DWELLERS Description: Providing food security and social relief to vulnerable farm dwellers confronted with evictions
385 Food parcels were distributed to families who have been evicted from farms in the district. These food parcels served as immediate relief for farm dwellers.
16. IMPROVE TENURE F'DWELLERS Description: Implementing Tenuresecurity programmes for farm dwellers to improve their livelihoods
The Department facilitated the public hearings of the new Tenure Bill in order to provide maximum inputs from farm dwellers in the District.
156 Farm Dwellers confronted, threatened with evictions or spoliation was supported with legal assistance. The following breakdown per B-Municipal area indicates the evictions trends:
Drakenstein 61 Stellenbosch 15 Breede valley 0 Witzenberg 52 Langeberg 28 Total 156
40 ESTA applications for evictions were opposed in court. Four workshops were held for different target groups which included, Similarities between ESTA and the Draft Tenure Security Bill ;Evictions and Housing; Education on TenureSecurity and The Role of SAPS in theApplication for Evictions.
73 Growing, Sharing, Delivering & Innovating Together 3. CORPORATE SERVICES 3.1 YOUR MUNICIPALITY AT WORK 3.1.1 HUMAN RESOURCE: EMPLOYMENT
Growing, Sharing, Delivering & Innovating Together 74 3.1.1 Employment
During the 2010/11 financial year, 58 appointments were made, majority of whom were internal or promotional, 43% of which were female appointments. In striving to develop the youth in the district, 34 young persons, in the main from various institutions of higher learning were given the opportunity to gain practical experience. In addition to obtaining valuable job skills, these students made a significant contribution in enhancing CWDM capacity, thereby enabling CWDM to better achieve its objectives. Note: A=Africans, C=Coloureds, I=Indians, W=Whites
White Foreign Occupational Male Female categories for male nationals Total 2009/10 A C I A C I W W Male Female Top 210 11002 0 0 7 management Senior 0 5 0 2 3 0 0 6 0 0 15 management Professionally qualified and experienced 3 17 0 0 4 0 2 16 0 0 42 specialists and mid- management Skilled technical and academically qualified workers, junior 9 58 0 18 31 0 10 52 0 0 178 management, supervisors, foremen and superintendents Semi-skilled and discretionary 32 76 0 12 34 0 13 5 0 0 172 decision-making Unskilled and defined decision- 54 52 0 25 32 0 1 4 0 0 168 making TOTAL 100 209 0 56 105 0 27 85 0 0 582
Table 3.1 Workforce profile
75 Growing, Sharing, Delivering & Innovating Together White Foreign Occupational Male Female categories for male nationals Total 2009/10 A C I A C I W W Male Female Legislators, senior officials and 4 3 011016 0 0 16 managers
Table 3.2 Councillors
3.1.2 Employment equity
On the 25th November 2010, CWDM adopted a Revised Employment Equity Plan (2009-2014), the principal goal of the CWDM's Employment Equity (EE) Plan is to speed up the creation of a representative and equitable district municipality, and to build an environment that supports and enables historically disadvantaged people to achieve their full potential. This will in turn allow the CWDM to derive maximum benefit from individuals' diverse skills and talents, thereby improve service delivery.
On the first working day of October, the CWDM submits annual EE reports to the Department of Labour as per requirement of the Employment Equity Act, 1998 (Act No. 55 of 1998). The 2010/11 financial year's report was submitted on 1 October 2010. Although there is still much room for improvement, the report showed progress regarding representation on occupational levels. Consultation with all relevant parties is held through the Local Labour Forum on a monthly basis, where parties are offered an opportunity to assess and monitor the progress (table 3.3).
Note:A=Africans, C=Coloureds, I=Indians, W=Whites
Growing, Sharing, Delivering & Innovating Together 76 White Foreign Occupational Male Female levels for male nationals Total 2009/10 A C I A C I W W Male Female Targets 2004- 2009 16% 27% 1% 14% 24% 0.20% 8% 10% 0% 0% 100.00% Top management 28.5% 14.2% 0.0% 14.2% 14.2% 0.0% 0.0% 28.5% 0.0% 0.0% 100.0% Senior management 0.0% 33.3% 0.0% 0.0% 20.0% 0.0% 6.6% 40.0% 0.0% 0.0% 100.0% Professionally qualified and experienced specialists and middle management 7.1% 40.4% 0.0% 0.0% 9.5% 0.0% 4.7% 38.0% 0.0% 0.0% 100.0%
Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents 5.0% 32.5% 0.0% 10.1% 17.4% 0.0% 5.6% 29.2% 0.0% 0.0% 100.0% Semi-skilled and discretionary decision-making 18.6% 44.1% 0.0% 6.9% 19.7% 0.0% 7.5% 2.9% 0.0% 0.0% 100.0% Unskilled and defined decision-making 32.3% 31.1% 0.0% 14.3% 19.1% 0.0% 0.5% 2.3% 0.0% 0.0% 100.0% TOTAL 17.1% 35.9% 0.0% 9.6% 18.0% 0.0% 4.6% 14.6% 0.0% 0.0% 100.0%
Table 3.3 Occupational levels
3.1.3 Education, training and development The CWDM submits the Workplace Skills Plan (WSP) annually, implementation reports bi-annually and reports to the Local Government SETA (LGSETA) quarterly. A total amount of R39 519, 94 was received from the LGSETA. The 2011/12 WSP was submitted to the LGSETAon 30 June 2011.In 2010/11, 231 employees and councillors participated in various training and skills development programmes, including but not limited to ABET (adult basic training and education),Advance GIS, Computer,Air Quality, Minimum Competency Levels, Conflict Management, Firer Fighting, FirstAid, IsiXhosa, Supervision of Construction Process, Occupational Health and Safety, Project Management, Risk Management, Supervision, Local Economic Development etc., at the cost of R916 591,13.
77 Growing, Sharing, Delivering & Innovating Together 3.1.4 Enterprise risk management (ERM) In recognising the need for a more coherent and consistent approach to risk management, the CWDM started developing a formal enterprise risk management (ERM) framework in 2009/10 that aims to ensure that risks that could impede the achievement of objectives are managed better and mitigated earlier, thereby improving the district municipality's ability to carry out its mission and achieve its goals.
Growing, Sharing, Delivering & Innovating Together 78 The ERM committee consists of the municipal manager (as the CWDM's risk champion), members of senior management and senior representatives from each department. The committee's role is to guide the development and implementation of ERM and to review and monitor ERM processes and outputs regularly. The committee brings serious risks to the senior manager's attention, which contributes to a more informed decision-making process. The committee met three times during the 2009/10 financial year. It has a rolling work plan detailing activities to be carried out during the year.
The year under review saw the development of the ERM policy, ERM strategy, establishment of the ERM committee and heightened awareness-raising and knowledge sharing on risk management issues in the organisation.
The CWDM Risk Management Unit is pleased to provide its risk management annual report for the Financial Year (FY) July 1, 2010 through June 30, 2011. The report contains summaries of the fiscal years activities performed according to our risk management implementation plan within our focus areas. The risk management unit was established at the direction of the CWDM Council in 2009. Up until the 2009/10 financial year, the Municipality prepared an annual risk management plan with a yearly review and update as necessary. The change of structure and the size of the Municipality have warranted change in its approach to risk management. The Municipality engaged a Manager: Risk Management in 2009/10 who introduced a risk management framework that identifies and assesses risks covering all areas of the municipal activities. Since its inception, the risk management unit has strived to use effective risk management techniques while improving the delivery of our services in the support of the municipality's mission. To accomplish these objectives we engage in planning, leading, organizing, coordinating, and controlling activities both before and after a risk occurs to minimize adverse effects and optimise opportunities, at a reasonable cost. In addition, our unit has the responsibility of carrying out the policies of the CWDM in matters relating to risk management. The objective of corporate governance is to encourage municipalities to adhere to the principles espoused in the King III Report on Corporate Governance (King III) given its promotion of an advanced level of institutional conduct. Similarly, the basic principles of service delivery (Batho Pele, 1997) clearly articulate the need for prudent risk management and internal audit to underpin the achievement of municipal objectives. Our mission as the Risk Management Unit stands to be a committed strategic partner in providing leading-edge services to all, by underpinning and bolstering municipal performance through: more efficient, reliable and cost effective delivery of services more reliable decisions; innovation; minimised waste and fraud; better value for money through more efficient use of resources; and improved project and programme management, which provide better outputs, outcomes and impact.” As the Municipality pursued its mandate during the financial years, it was faced with an environment characterised by both risks and opportunities. This entailed us to identify and manage internal and external risks, and to realise new opportunities. Our unit is committed in adding value to our municipality by continue to participate in efforts to minimize the uncertainty of events or variability of outcomes which have the potential to undermine the achievement of IDP objectives in the most effective, efficient and economical manner. The below-mentioned information is a summary of all the highlights of activities that were undertaken during the financial year. Activities completed by the ERM unit in 2010/11 include:
1. RISK MANAGEMENT POLICYAND STRTEGY The risk management policy and strategy was first workshop by council, top management and trade-unions prior its approval by the approval. Risk Management is embedded within the performance management system of the municipality by having special risk key performance indicators incorporated within the SDBIP and performance agreements of the municipal manager and executive directors.
2. QUARTERLYRISK REGISTERS & RISK PROFILE The Municipality seeks to constantly improve its delivery of services, and part of this process requires the identification and mitigation of risk. While there are significant risks in the delivery of our services, the Municipality
79 Growing, Sharing, Delivering & Innovating Together has a substantive risk policy and strategy. We have put in place mechanisms to identify and assess risks and developed specific mitigating strategies, plans or actions should the need arise; and we also record, monitor and review risks continuously. Quarterly risk assessment workshops were held with top management to develop the strategic management risk register and with middle management to develop the departmental risk register of which all the participants have participated in the identifying and assessing the threats and opportunities for achieving the municipal objectives. These quarterly workshops also included an assessment of the current controls put in place by management to mitigate the risk, formulation of appropriate additional action plans and responsible person for implementation as well as risk monitoring. Our unit incorporated the principles of King III pertaining to Governance of Risk and has also developed a Top 10 Strategic Risk Register and Top 10 Unpredictable Strategic Risk Register that were presented to management and council and monitored by the municipal manager and executive directors.
3. RM MATURITY LEVEL The Capability Maturity Model is a model that assesses the maturity level of the municipality at a certain period. National Treasury had a target that all spheres of government should be at a level 3 by the end of the 2011 financial year. The risk management maturity level is until a rating 6 and based on the assessment done by National Treasury for the financial year end of the 2010/2011 on our municipality, we were at a level of 3.6
4. TRAINING & DEVELOPMENT We live and operate in a vast changing and volatile environment whereas this can create threats or opportunities to role players depending how they perceived it. Taken the limited budget constraints faced by our unit especially on training, our unit pro-actively zoom into the opportunities that the challenging and changing environment presented by doing more with less. We have established several sharing networks that can continuous challenge us and an environment that role players can relate to. These activities have included presentations on ERM to councillors, audit committee, senior management, trade unions, which explained the sequencing of risk identification, assessment, responses to mitigate the risks, monitoring and reporting and risk induction to our newly-appointed employees. An introduction to Project Risk Management was presented to the Rural & Social Development department during their strategic planning session. Our unit were invited to do presentation on special platforms such as the CWDM strategic planning sessions, local municipalities, Municipal Manager's District Forum, West Coast CAE Forum, Western Cape Municipal RM Forum and Zambian Government delegation. We were able to position ourselves as a unit in order to realise these opportunities and it added value to the career and professional development of the staff within the unit and put the unit and municipality on another level. We have started the initiative of working closely with the Disaster Management and Occupational, Health & Safety unit as they are also required by law to perform risk assessment within their respective fields. Their risks pertaining to the municipality have been incorporated to the CWDM Risk Registers.
5. RISK MANAGEMENT COMMITTEE The Cape Winelands District Municipality (CWDM) has established a Risk Management Committee (RMC) that is guided by a charter which is in conjunction with the Municipal Finance Management Act. The Committee comprised of an external member from the audit committee and members of its top management and is responsible for the management of risks and mitigation thereof. The Audit Committee is responsible for overseeing the activities of the internal audit function and plays an oversight role on risk management issues.
6. MUNICIPAL SUPPORT Sustainable partnerships are central to the developmental approach that our unit has adopted. Key partnerships that took the unit forward were with councillors; top -and middle management; local government; provincial and national treasury. Our municipality is an institution that aims to make a difference to the lives of our stakeholders and this depended essentially on effective partnerships. Our unit has expanded the focus of risk management significantly into compare with our equivalents and has committed itself to undertake the role of municipal support in the form of risk assessment workshop to those municipalities where no such unit existed. Our goal is to increase and promote risk management awareness amongst our stakeholders; we have performed risk assessment workshops to Breede Valley Municipality, Langeberg Municipality, Eden District Municipality and Bitou Municipality. We are continuously in the process to build good relationships with similar local authorities but we don't want these partnerships to be lust relationships on paper but it must result in significant assignments that will be perform.
7. RISKAPPETITE STATEMENT
Growing, Sharing, Delivering & Innovating Together 80 The success of the Municipality is a result of effectively managing key drivers of value, which in turn support the key strategic initiatives outlined in the 2007-2011 Integrated Development Plan. The Municipality accepts an element of risk in almost every activity it undertakes. The critical question in establishing the Municipality's risk appetite is “How willing is the Municipality to accept risk related to each key value driver?” Risk appetite is defined as the Municipality's willingness to accept risk in pursuit of its IDP objectives. Risk appetite is assessed against the Municipality's key drivers of success, KPI's, which form the basis for the Municipality's risk appetite. The establishment of the Municipality's statement on risk appetite is intended to guide employees in their actions and ability to accept and manage risks. Through the risk management framework and its risk appetite statement, the Municipality will formally establish and communicate its risk appetite. The CWDM have develop a risk appetite statement for the municipality and for each department, this have given role players a clear indication of risk that they are able to take compare with the actual residual risk that will impose further action plans in order to be within their acceptable appetite level.
8. PROJECT MANAGEMENT PILOT The effective management of project risks is an integral part of best practice project management. All projects are essential and every project has its own risk elements. Commencing from initiation to post completion of the project, the degree of risk grows within, as does the haze of uncertainty, thus proper project risk management can make a difference. During the financial year, we anticipated on a pilot roll out of the project risk management by Rural & Social Development Services. Our intention is to expand the programme to other divisions of the municipality.
81 Growing, Sharing, Delivering & Innovating Together 3.1.5 ICT
The ICT infrastructure, both software and hardware continued to evolve and develop, during the financial year. This is in response to the change in ICT user needs, software upgrades and improvements, as items become redundant and new threats to our information and data integrity have developed.
To deal with the ICT goals and challenges a close relationship between ICT and the other departments and directorates is required. To aid this endeavor extent ICT Technical Committee was established, where the users (shareholders) interact to address issues related to ICT.This committee works as the ICT user group and provides valuable user feedback and user requirements.
CWDM has begun developing redundant communication mechanisms between its main offices. This has been in the form of wireless connections in addition to the cable connections. We have also made our tower sites available to B municipalities where synergy can be achieved. In return the B municipality offers assistance to smaller CWDM offices. This increased co-operation has reduced costs and increase services.
Over the last twelve months, the amount of data generated has increased from one hundred and fifty gigabytes a year to five hundred gigabytes a year. In response we have moved to a manage storage solution. The previous paradigm of continuous hardware procurement is no longer effective. Files are now archived along with the regular backups.
In response to the growing need for access to the increasing amount of CWDM information, we've implemented a distributed file system between the main offices. As a result, all information appears locally stored to the Users. Because of this, they experience an increase in the speed of access to data across the network.
To deal with the need for ICT training and the high cost thereof, ICT training is moving in house. This will be achieved by partnering with the Stellenbosch Municipality which has already developed an accredited training institute and has agreed to an arrangement, this off course is part of intensification of our shared services as encouraged by the intergovernmental relations regime.
An update to the Master Systems Plan has begun and is scheduled for completion in December 2011. This update will assist the ICT department to align its goals and efforts with the direction of the Municipality and its directorates. As a result of this update, new projects will be launched.
Securing the CWDM network and its applications and data requires continued vigilance and improvements. As such, ICT staffs have been trained in the advanced use of or virus protection software and we have implemented enterprise strength firewalls.
With the network stabilized, the focus of ICT is the increased use of ICT resources. Step one is to offer departments the option of 'computerizing' processes that are still done on paper. This requires a lot of change management and negotiations, but is progressing. We are running a series of pilot projects with volunteer departments and are determined to grow the return on the ICT investments made over the last year.
3.1.6 InternalAudit (IA)
Internal audit is fundamentally concerned with evaluating CWDM management of risk.
All organisations face risks. The key to an organisation's success is to manage those risks effectively – more effectively than competitors and as effectively as stakeholders demand.
Roles and responsibilities The Institute of InternalAuditors defines internal auditing as follows: “… an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.”
Growing, Sharing, Delivering & Innovating Together 82 The internal audit activity therefore evaluates and contributes to the improvement of risk management, control and governance systems. It provides assurance to management that all key risks are being managed effectively. Todo this, we will evaluate the quality of risk management processes, systems of internal control and corporate governance processes, across all parts of CWDM and report this directly and independently to the Audit Committee.
Audits approach and methodology ? Twenty planned audits for the year 2010/2011 have been completed. The InternalAudit Unit uses a risk based audit methodology. ? The Audit Committee reviews and evaluates the performance of the Internal Audit Unit and ensures that audits are inline with the audit plan. ? Quarterly reports are issued by InternalAudit to theAudit Committee. ? Internal Audit also submits quarterly reports on the audit of performance information to the Audit Committee. ? Audits are conducted in accordance with the International Standards for the Professional Practice of InternalAuditing. ? The InternalAudit Unit is working on a -3 year risk-based InternalAudit plan.
83 Growing, Sharing, Delivering & Innovating Together 3.2 GOVERNANCE
Growing, Sharing, Delivering & Innovating Together 84 3.2.1 Executive management
The administration is led by an executive management team comprising of:
MUNICIPAL MANAGER
Mr Michael Mgajo Municipal Manager
EXECUTIVE DIRECTORS:
Mr Gawie Marais: Ms Kelcy le Keur Financial Services Regional Development & Planning Services
85 Growing, Sharing, Delivering & Innovating Together EXECUTIVE DIRECTORS:
Dr Zandile Mahlangu Mr Dries van Taak Community & Developmental Services Engineering & Infrastructure Services
Mr Claude Schroeder Mr Christopher Mvalo Rural & Social Developmental Services Corporate Services
Growing, Sharing, Delivering & Innovating Together 86 3.2.2 Committee meetings
1. Council meetings = 9 2. Mayoral Committee Meetings = 13 3. Training = 07 4. Local Labour Forum = 07 5. Rules Committee = 00 6. Corporate Services Committee = 00
Figure 3.1 Meetings held by the council, committees of council and other statutory committees
87 Growing, Sharing, Delivering & Innovating Together 3.2.3 The Cape Winelands TurnAround Strategy
The LG-TAS as approved by Cabinet on 2 December 2009, acknowledges that to address the challenges of municipalities, an approach that considers the uniqueness of each municipality's social and economic conditions, different performance levels and support needs is an important consideration.
The Internal Turnaround Strategy (TAS) TaskTeamof the municipality produced a clear plan with key priorities and targets. The plan had a particular focus on enhancing our performance on basic service delivery, governance, public participation, financial management and local economic development. The LG-TAS was underpinned by rigorous self-assessment by the management and Mayoral Committee of the municipality and was consulted extensively with stakeholders, including the local municipalities in our area.
The Management and Leadership went to great lengths to ensure that the strategy is underpinned by honest assessments, full participation and practical integration with our 2010-11 Integrated Development Plan and Medium TermRevenue and Expenditure Framework for 2011/13.
During this IDP Revision period the review of the CW-GDS took place in the context of the Local Government Turn Around Strategy which emphasizes the notion that a “one-size fits all” approach to local government is no longer appropriate due to the differentiations between municipalities. The revisiting of our current state of development and the re-routing of priorities form a vital characteristic of development planning, particularly so in the dynamic economic sphere which is governed by external forces beyond the control of local government.
Our Cape Winelands Turn Around Strategy afforded the municipality the opportunity to strive towards excellence in our efforts to remove all obstacles that prevent the municipality from elevating its service delivery to communities to unprecedented levels.
The contextual overview was underpinned by a number of assessment reports done by Provincial and National Government and the input of the municipality's political principals and senior management. The municipality has also done own analysis of key areas and as far as possible these considerations are included in the overview.
Our strategic priorities as a district municipality are guided by the social and economic conditions of our community that finds resonance in our Integrated Development Plan through analysis done by the CWDM, other reputable sources and the needs as expressed by our stakeholders at moments planned and those that are unforeseen but equally as important. Suffice it to say that our communities are plagued by many, if not all, of the inequities experienced in other parts of the country.
There are still parts of our communities without access to basic services like water and sanitation, who experience extreme poverty, unemployment, the scourge of crime. Income inequality is rife and is made worse by an agricultural economy that leaves our people without income for long periods of time. We are challenged by low skills levels and inadequate resources to reach many of our rural dwellers who have to suffer immensely to access government services due to issues like inefficient and expensive public transportation and a myriad of obstacles.
TheState of Local Government in South Africa Report 2009 cited the Cape Winelands District Municipality as excelling in the areas of planning facilitation (p8, SoLG SAReport 2009). Our analysis concludes that this is due to insufficient revenue streams experienced by the municipality since the termination of RSC Levies.
In theCape Winelands District Municipality Assessment Report 2009 the issue of water quality within the district is mentioned as serious long term concern as it affects the economy and related agricultural exports as well as access to quality water by all residents.
During a TAS Work Session held on 24 March 2010, senior managers were afforded an opportunity to raise, from a technical point of view, those impediments (both internal and external) that cause delays in achieving desired outcomes. After a combined Work Session with the Mayoral Committee and Whips of Political Parties of CWDM held on 5 March 2010, a number of issues were identified that needed to be addressed through our TAS.
Growing, Sharing, Delivering & Innovating Together 88 outcomes. After a combined Work Session with the Mayoral Committee and Whips of Political Parties of CWDM held on 5 March 2010, a number of issues were identified that needed to be addressed through our TAS. Key levers for change
The following key levers have been identified 1. Basic Service Delivery 1.1 Access to water and Sanitation 1.2 Access to electricity, management and maintenance 1.3 Access and maintenance of municipal roads 1.4 River water quality improvement
2. Public Participation 2.1 Functionality of Ward Committees 2.1 Broader public participation policies and plans 2.3 Public Communications Systems
3. Governance 3.1 Political Management and Oversight 3.2 Information and Communication Technology 3.3 Municipal Management Capacity 3.4 Filling of vacancies in top 4
4. Financial Management 4.1 Debtors Management 4.2 Credibility and transparency of Supply Chain Management
5. Local Economic Development 5.1 LED Strategy adopted by Council
89 Growing, Sharing, Delivering & Innovating Together Developing our TAS
The table underneath illustrates the process that was followed in developing the Cape Winelands Turnaround Strategy:
Action Description Date 1 Identification of At a management meeting the MM announced 19 January 2010 Champion that Mr. C.V. Schroeder will champion the CWDM TAS. 2 District IDP Managers Inputs to possible support needed by 3 February 2010 Forum municipalities to roll out LGTAS in preparation for DCF-Tech. 3 Presentation on LG- 4 February 2010 TAS to Mayco 4 DCF-Tech with Meeting regarding roll-out of LGTAS led to 5 February 2010 COGTA, DoLGH resolution that Witzenberg Municipality will receive hands-on support from COGTA. 5 Assemble TAS Team As part of his brief, Mr. Schroeder assembled 12 February 2010 aTASTeam 6 TAS Team meeting Implementation Plan, planning workshop for 16 February 2010 Mayco and Mgmt 7 Workshop with Mgmt, LG-TAS workshop to determine critical 24 February 2010 Mayco and Whips elements of the LGTAS 8 Submission of Draft Submitted together with IDP and Budget and 25 March 2010 TAS to Council approved for public consultation 9 Communications – Refining communications input 26 March 2010 Strategic Planning 10 Social Development Consulting LG-TAS/IDP/Budget with 30 March 2010 Summit stakeholders 11 Growth and Consulting LG-TAS/IDP/Budget with 9 April 2010 Development Strategy stakeholders Plenary 12 IDP Hearing Consulting LG-TAS/IDP/Budget with 14 April 2010 stakeholders 13 District IDP Managers Preparatory session for IDP/LG-TAS 23 April 2010 Forum Integration workshops with local municipalities 14 IDP/LG-TAS Workshop with local municipalities to align LG- 28 April 2010 Integration Workshop TAS priorities – key issues for cooperation identified 15 District Public Preparing input to the District Coordinating 28 April 2010 Participation Task Forum regarding integrated public participation Team 16 District Coordinating Presentation to DCF on IDP/LG-TAS 30 April 2010 Forum Integration Workshop 17 Mayoral Committee Mayoral Committee approves the submission 5 May 2010 of Cape Winelands TAS to Council for consideration to adopt 18 Council meeting Adoption of TAS, IDP and Budget by Council 14 May 2010
Growing, Sharing, Delivering & Innovating Together 90 3.3 MEDICAL AID SCHEMES
91 Growing, Sharing, Delivering & Innovating Together Medical scheme Members employed Continued members
Keyhealth 50 31
Bonitas 83 4
LA Health 112 91
Prosano 0 7
Hosmed 107 15 Samwumed 32 0 Fedhealth 10 Discovery Health 0 0
Table 3.4 Medical aid schemes (Section 57 employees included)
Growing, Sharing, Delivering & Innovating Together 92 3.4 PENSION
93 Growing, Sharing, Delivering & Innovating Together Pensionfund Membership number Cape Joint Pension Fund 28 Cape Joint Retirement Fund 599 SAMWU NationalProvident Fund 36
Table 3.5 Pension/retirement funds (Section 57 employees included)
Growing, Sharing, Delivering & Innovating Together 94 4. FINANCIAL
95 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 4.1 General Information
Mayoral committee Executive Mayor Cllr. B.J. CHAABAN (Executive Mayor untill 15 June 2011) Ald. C.A. DE BRUYN (Executive Mayor from 15 June 2011) Cllr. C.C.BRINK (Untill 15 June 2011) Cllr. C.G. DU PLESSIS (Untill 15 June 2011) Cllr. Z.J. MTHINI (Untill 15 June 2011) Cllr. P.X. SWANGAZA (Untill 15 June 2011) Cllr. N.D. HANI ( Speaker until 15 June 2011) Cllr. E.N. BUSHWANA (Untill 15 June 2011) Cllr. M.M. SMITH (Untill 15 June 2011) Cllr. R.B. ARNOLDS (From June 2011) Cllr. G.J. GARINUSc (From 15 June 2011) Cllr. C.W. JOHNSON (Untill 15 June 2011) Cllr. H.M. JANSEN (From 15 June 2011) Ald. (Dr.) N.E. KAHLBERG (From15 June 2011) Cllr. L.X. MDEMKA (From 15 June 2011) Cllr. C. MEYER (From 15 June 2011) Cllr. G. STALMEESTER (From 15 June 2011) Cllr. J.R.F. TORR (From 15 June 2011) Cllr. E.J. VAN ZYL (From 15 June 2011) Cllr. J.D.F. VAN ZYL (From 15 June 2011) Cllr. J.J. DU PLESIS (From 15 June 2011) Councillors Ald. (Dr.) N.E. KAHLBERG (Untill 15 June 2011) Ald. D.J. OOSTHUIZEN (Untill 15 June 2011) Cllr. A.M. DU TOIT (Untill 15 June 2011) Cllr. A.N. MHLAMBENI (Untill 15 June 2011) Cllr. C. DU PLESSIS (Untill 15 June 2011) Cllr. C. PHILANDER (Untill 15 June 2011) Ald. C.A. DE BRUYN (Untill 15 June 2011) Cllr. E.J. VAN ZYL (Untill 15 June 2011) Cllr. H.J. SMIT (Untill 15 June 2011) Cllr. H.M. JANSEN (Untill 15 June 2011) Cllr. J. THOMAS (Untill 17 March 2011) Cllr. J.I.K. GAGIANO (Untill 15 June 2011) Cllr. J.J. ABRAHAMS Cllr. L. RICHARDS (Untill 15 June 2011) Cllr. L. SIWAKAMISA Cllr. L.N. MBESHU (Untill 25 November 2010) Cllr. G.J. CARINUS (Untill 15 June 2011) Cllr. P.B.B. DU TOIT (Untill 15 June 2011) Cllr. P.W. BISCOMBE (Untill 25 Novermber 2011) Cllr. C. DAMENS (Untill 15 June 2011) Cllr. R. BRAND (Untill 15 June 2011) Cllr. S. GELDENHUYS (Untill 15 June 2011) Cllr. S. ROSS (Untill 15 June 2011) Cllr. S.W. VAN EEDEN (Untill 15 June 2011) Cllr. J.R.F. TORR (Untill 15 June 2011) Cllr. A. TITUS (Untill 15 June 2011) Cllr. B.E. VOS (Untill 15 June 2011) Cllr. M. APOLLIS (From 15 June 2011)
Growing, Sharing, Delivering & Innovating Together 96 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 General Information
Cllr. D.C. BOTHA (From 15 June 2011) Cllr. C.C. BRINK (From 15 June 2011) Cllr. B.J. CHAABAN (From 15 June 2011) Cllr. J.B. CRONJE (From 15 June 2011) Cllr. S.W. DAVIDS (From 15 June 2011) Cllr. D.B. JANSE (From 15 June 2011) Cllr. Z. GWADA (From 15 June 2011) Cllr. N.D. HANI (From 15 June 2011) Cllr. A.C. FORTUIN ( From 15 June 2011) Cllr. D.A. HENDRICKSE (From 25 November 2010 untill 15 June 2011) Cllr. P. HERADIEN (From 15 June 2011) Cllr. J.J. JANUARIE (From 15 June 2011) Cllr. X. KALIPA (From 15 June 2011) Cllr. B.J. KRIEGLER (From 15 June 2011) Cllr. P. MARRAN (From 15 June 2011) Cllr. C. MCAKO (From 15 June 2011) Cllr. S.J. MEI (From 15 June 2011) Cllr. J.S. MOUTON (From 15 June 2011) Cllr. L.W. NIEHAUS (From 15 June 2011) Cllr. W.J. PRETORIUS (From 15 June 2011) Cllr. A.C. STOWMAN (From 15 June 2011) Cllr. M.S. TAYITAYI (From 15 June 2011) Cllr. R.H. VAN NIEUWENHUYSEN (From 15 June 2011) Cllr. E.J. VOLLENHOVEN (From 15 June 2011) Cllr. M.H. YABO (From 15 June 2011)
Grading of local authority GRADE 9
Accounting Officer M MGAJO
Chief Finance Officer (CFO) J. G. MARAIS
Registered office 46 ALEXANDER STREET STELLENBOSCH 7600
Business address 46 ALEXANDER STREET STELLENBOSCH 7600
Postal address P.O. BOX 100 STELLENBOSCH 7599
Bankers ABSA
Auditors AUDITOR GENERAL
97 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Index
Index Page
Accounting Officer's Responsibilities and Approval 99
Statement of Financial Position 100
Statement of Financial Performance 101
Statement of Changes in Net Assets 101
Cash Flow Statement 102
Accounting Policies 103 - 111
Notes to the Annual Financial Statements 112 - 146
Appendixes:
Appendix A: Schedule of External loans 147
Appendix B: Analysis of Property, Plant and Equipment 148
Appendix C: Segmental analysis of Property, Plant and Equipment 149 - 152
Appendix D: Segmental Statement of Financial Performance 153
Appendix E(1): Actual versus Budget (Revenue and Expenditure) 154 - 155
Appendix E(2): Actual versus Budget (Acquisition of Property, Plant and Equipment) 156
Appendix F: Disclosure of Grants and Subsidies in terms of the Municipal Finance 157 Management Act
Appendix G: Deviations from Supply Chain Management Regulation 158 - 159
Appendix H: Financial Commitments 160
Appendix I: Bursaries to Related Parties 161 - 162
Appendix J: Grants made to municipalities 163
Abbreviations COID Compensation for Occupational Injuries and Diseases CRR Capital Replacement Reserve DBSA Development Bank of South Africa SA GAAP South African Statements of Generally Accepted Accounting Practice GRAP Generally Recognised Accounting Practice GAMAP Generally Accepted Municipal Accounting Practice HDF Housing Development Fund IAS International Accounting Standards IMFO Institute of Municipal Finance Officers IPSAS International Public Sector Accounting Standards ME's Municipal Entities MEC Member of the Executive Council MFMA Municipal Finance Management Act MIG Municipal Infrastructure Grant (Previously CMIP)
Growing, Sharing, Delivering & Innovating Together 98 99 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Statement of Financial Position Figures in Rand Note(s) 2011 2010
Assets Current Assets Inventories 7 1,999,599 1,662,218 Other Receivables 8 10,873,597 17,770,815 VAT receivable 2,842,261 5,007,052 Consumer debtors 9 153,134 1,564,617 Cash and cash equivalents 10 373,619,166 349,251,371 389,487,757 375,256,073
Non-Current Assets Property, plant and equipment 4 183,161,173 175,764,820 Non-Current Assets 183,161,173 175,764,820 Current Assets 389,487,757 375,256,073 Non-current assets held for sale (and) (assets of disposal groups) - - Total Assets 572,648,930 551,020,893
Liabilities Current Liabilities Finance lease obligation 14 136,829 156,267 Trade and other payables from exchange transaction 17 38,543,172 28,136,607 Liabilities relating to conditional grants 15 7,364,983 6,671,473 Employee Benefits 16 13,872,000 12,209,000 59,916,984 47,173,347
Non-Current Liabilities Finance lease obligation 14 122,746 127,317 Employee Benefits 16 111,903,954 96,033,844 112,026,700 96,161,161 Non-Current Liabilities 112,026,700 96,161,161 Current Liabilities 59,916,984 47,173,347 Liabilities of disposal groups -- Total Liabilities 171,943,684 143,334,508 Assets 572,648,930 551,020,893 Liabilities (171,943,684) (143,334,508) Net Assets 400,705,246 407,686,385
Net Assets Reserves Foreign currency translation reserve 11 - 166,272 Revaluation reserve 12 115,833,341 118,253,185 Accumulated surplus 284,871,907 289,266,928 Total Net Assets 400,705,248 407,686,385
Growing, Sharing, Delivering & Innovating Together 100 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2010
Statement of Financial Performance
2010 2011 2011 2010 Budget Budget Actuals Actuals
Revenue
‐ 435 000 Property rates 21 442 637 395 666 239 260 161 000 Service charges 22 1 446 110 823 955 ‐‐Property rates ‐ penalties imposed and collection 50 171 19 774 139 700 148 100 Rental of facilities and equipment 117 458 105 071 3 000 9 000 Interest received (trading) 2 313 32 751 5 027 500 5 500 000 Income from agency services 6 589 219 4 882 757 265 897 759 309 496 323 Government grants & subsidies 23 285 165 655 263 920 236 38 876 000 34 478 789 Contribution from Surplus ‐ ‐ 8 431 200 9 988 200 Other income 24825 2 541 5 125 776 30 000 000 25 200 000 Interest received ‐Investment 28 25 334 704 30 556 855
348 614 419 385 416 412 321 690 092 305 862 841
Expenses
‐98 809 729 ‐103 722 886 Personnel 26 ‐103 917 033 ‐96 327 159 ‐7 103 200 ‐7 071 800 Remuneration of councillors 27 ‐7 310 196 ‐7 062 975 ‐9 812 226 ‐10 977 800 Depreciation 29 ‐8 113 171 ‐10 808 117 ‐4 123 900 ‐7 890 730 Finance costs 30 ‐10 193 884 ‐8 679 122 ‐371 300 ‐443 100 Debt impairment ‐1 005 180 ‐278 905 ‐ ‐300 000 Collection costs ‐220 918 ‐ ‐56 873 650 ‐94 696 768 Repairs and maintenance ‐ General ‐60 767 616 ‐40 392 038 ‐171 896 414 ‐158 610 367 General Expenses 25 ‐137 628 050 ‐150 882 841 ‐ ‐3 200 Loss on sale of assets ‐451 372 ‐18 715 Actuarial gain ‐4 575 322 ‐4 355 530 ‐348 990 419 ‐383 716 651 ‐334 182 742 ‐318 805 402
‐ ‐ Shortfall on pension fund ‐2 643 030 ‐ ‐ 9 740 Gain or loss on disposal of assets and liabilities 259 644 35 599 348 614 419 385 416 412 Revenue 321 690 092 305 862 841 ‐348 990 419 ‐383 716 651 Expenditure ‐334 182 742 ‐318 805 402 ‐ 9 740 Other ‐2 383 386 35 599 ‐376 000 1 709 501 (Deficit)/ surplus for the year ‐14 876 036 ‐12 906 962
6 101 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Statement of Changes in Net Assets Foreign Revaluation Total reserves Accumulated Total net currency reserve surplus assets transaction Figures in Rand reserve
Balance at 01 July 2009 (Restated) - 120,815,895 120,815,895 300,204,310 421,020,205 Changes in net assets Surplus - - - (12,906,962) (12,906,962) Transfer to Income Statement - (2,547,605) (2,547,605) (579,371) (3,126,976) Receipts/ Additions 170,163 - 170,163 - 170,163 Interest Received (3,891) - (3,891) - (3,891) Offsetting Depreciation - - - 3,126,976 3,126,976 Prior Year Ad justments - - - (143,976) (143,976) Task back pay - - - (434,049) (434,049) Actuarial Gain - (15,105) (15,105) - (15,105) Total changes 166,272 (2,562,710) (2,396,438) (10,937,382) (13,333,820) Balance at 01 July 2010 166,272 118,253,185 118,419,457 289,266,931 407,686,388 Changes in net assets Surplus for the year - - - (14,876,036) (14,876,036) Transfer to Income Statement - (2,419,844) (2,419,844) - (2,419,844) Offsetting of Depreciaiton - - - 2,419,843 2,419,843 Capital Grants to purchase PPE - - - 3,766,128 3,766,128 Prior Period Error - - - 4,295,041 4,295,041 Expenditure during the year (166,272) - (166,272) - (166,272) Total changes (166,272) (2,419,844) (2,586,116) (4,395,024) (6,981,140) Balance at 30 June 2011 - 115,833,341 115,833,341 284,871,907 400,705,248 Note(s) 11 12
Growing, Sharing, Delivering & Innovating Together 102 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Cash Flow Statement Figures in Rand Note(s) 2011 2010
Cash flows from operating activities
Receipts Grants 315,075,916 268,585,653 Interest income 23,780,435 30,556,854 Interest received (trading) 2,313 32,752 Other receipts 16,663,400 10,579,092 355,522,064 309,754,351
Payments Employee costs (137,777,208) (96,510,211) Suppliers (168,465,038) (200,793,777) Finance costs (10,170,947) (8,647,931) Other payments (4,916,389) (7,054,394) Other cash item 172,788 - (321,156,794) (313,006,313) Total receipts 355,522,064 309,754,351 Total payments (321,156,794) (313,006,313) Net cash flows from operating activities 32 34,365,270 (3,251,962)
Cash flows from investing activities
Purchase of property, plant and equipment 4 (12,226,592) (14,151,758) Proceeds from sale of property, plant and equipment 4 746,222 409,992 Proceeds from sale of financial assets - 23,377 Net cash flows from investing activities (11,480,370) (13,718,389)
Cash flows from financing activities
Non Cash Transfers - 3,288,179 Movement in pension obligation - 12,104,708 Prior year movements 1,529,843 (523,997) Finance lease payments (46,946) (35,035) Net cash flows from financing activities 1,482,897 14,833,855
Net increase/(decrease) in cash and cash equivalents 24,367,797 (2,136,496) Cash and cash equivalents at the beginning of the year 349,251,371 351,387,867 Cash and cash equivalents at the end of the year 10 373,619,168 349,251,371
103 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1. Presentation of Annual Financial Statements
The annual financial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board. l GRAP 1 Presentation of fFnancial Statements l GRAP 2 Cash Flow Statements l GRAP 3 Accounting Policies, Changes in Accounting Estimates and Errors l GRAP 4 The Effects of Changes in Foreign Exchange Rates l GRAP 5 Borrowing Costs l GRAP 6 Consolidated and Separate Financial Statements l GRAP 7 Investments in Associates l GRAP 8 Interest in Joint Ventures l GRAP 9 Revenue from Exchange Transactions l GRAP 10 Financial Reporting in Hyperinflationary Economies l GRAP 11 Construction Contracts l GRAP 12 Inventories l GRAP 13 Leases l GRAP 14 Events After the Reporting Date l GRAP 16 Investment Property l GRAP 17 Property, Plant and Equipment l GRAP 19 Provisions, Contingent Liabilities and Contingent Assets l GRAP 100 Non- current Assets Held for Sale and Discontinued Operations l GRAP 101 Agriculture l GRAP 102 Intangible Assets l IFRS 3 (AC140) Business Combinations l IFRS 4 (AC141) Insurance Contracts l IFRS 6 (AC143) Exploration for and Evaluation of Mineral resources l IFRS 7 (AC 144) Financial Instruments: Disclosures l IAS 12 (AC 102) Income Taxes l IAS 19 (AC116) Employee Benefits l IAS 32 (AC116) Financial Instruments: Presentation l IAS 39 (AC 133) Financial Instruments: Recognition and Measurement l SIC – 21 (AC421) Income Taxes – Recovery of Revalued Non- Depreciable Assets l SIC – 25 (AC 425) Income Taxes – Changes in the Tax Status of an Entity or its Shareholders l SIC – 29 (AC 429) Service Concession Arrangements - Disclosurestex l IFRIC 2 (AC 435) Members’’ Shares in Co-operative Entities and Similar Instruments l IFRIC 4 (AC 437) Determining whether an Arrangement contains a Lease l IFRIC 9 (AC 442) Reassessment of Embedded Derivatives l IFRIC 12 (AC 445) Service Concession Arrangements l IFRIC 13 (AC 446) Customer Loyalty Programmes l IFRIC 14 (AC 447) IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction l IFRIC 15 (AC 448) Agreements for the Construction of Real Estate l IFRIC 16 (AC 449) Hedges in a Net Investment in a Foreign Operation l Directive 1 Repeal of Existing Transitional Provisions in, and Consequential Amendments to, Standards of GRAP l Directive 2 Transitional Provisions for the Adoption of Standards of GRAP by Public Entities, Municipal Entities and Constitutional Institutions l Directive 3 Transitional Provisions for the Adoption of Standards of GRAP by High Capacity Municipalities l Directive 4 Transitional Provisions for the Adoption of Standards of GRAP by Medium and Low Capacity Municipalities l Directive 5 Determining the GRAP Reporting Framework l IGRAP 1 Applying the Probability Test on Initial Recognition of Exchange Revenue l Guide 1 Guideline on Accounting for Public Privatel Partnerships l IPSAS 20 Related Party Disclosures
These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention unless specified otherwise. They are presented in South African Rand
Growing, Sharing, Delivering & Innovating Together 104 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.1 Going Concern Assumption
These annual financial statements are prepared on the going concern basis.
In finalising the financial statements, management must in terms of GRAP 1 disclose any material uncertainties related to events or conditions, which may cast significant doubt upon the organisation's ability to continue as a going concern. The determination whether the going concern assumption is appropriate is primarily relevant for individual entities rather than for a government as a whole.
The primary source of revenue for the Cape Winelands District Municipality is transfer payments from the National Government. The following National allocations were made to Cape Winelands District Municipality in respect of RSC Levy Replacement Grant. See note 24 at *:
2007/2008 Financial Year R143 203 000 2008/2009 Financial Year R161 122 430 2009/2010 Financial Year R177 491 000 2010/2011 Financial Year R182 783 000
The abovementioned allocations are sufficient for the sustainability of the District Municipality. An alternative source of income should be explored to reduce the dependency of the District Municipality on National funds.
According The Division of Revenue Act sufficient funds will be transferred to the municipality to be a foreseeable going concern for the next financial year.
1.2 Internal Reserves
Capital replacement reserve (CRR)
In order to finance the provision of infrastructure and other items of property, plant and equipment from internal sources, amounts are transferred, for internal record keeping purposes, from the accumulated surplus/(deficit) to the CRR in terms of a Council resolution. A corresponding amount is transferred to a designated CRR bank. The cash in the designated CRR bank account can only be utilised to finance items of property, plant and equipment. The CRR is reduced and the accumulated surplus/(deficit) is credited by a corresponding amount when the amounts in the CRR are utilised. l The cash which backs up the CRR is invested until it is utilised. The cash may only be invested in accordance with the investment policy of the municipality. l Interest earned on the CRR investment is recorded as part of total interest earned in the Statement of Financial l Performance, whereafter such interest may be transferred from accumulated surplus to CRR. l The CRR may only be utilised for the purpose of purchasing items of property, plant and equipment for the municipality and may not be used for the maintenance of these items. l The CRR is reduced and the accumulated surplus/(deficit) credited with corresponding amounts when the funds are utilised. l If gains or losses are made on the sale of assets the gains or losses on the sale of assets are reflected in the l Statement of Financial Performance. l The amounts transferred to the CRR is based on the municipality’s need to finance future capital projects included in the Integrated Development Plan.
Government grant reserve
When items of property, plant and equipment are financed from government grants, a transfer is made from the accumulated surplus/deficit to the Government Grants Reserve equal to the Government Grant recorded as revenue in the Statement of Financial Performance in accordance with a directive issued by National Treasury. When such items of property, plant and equipment are depreciated, a transfer is made from the Government Grant Reserve to the Statement of Financial Performance. The purpose of this policy is to promote community equity by ensuring that the future depreciation expenses that will be incurred over the useful lives of government grant funded items of property, plant and equipment are offset by transfers from this reserve to the accumulated surplus/deficit.
When an item of property, plant and equipment financed from government grants is disposed of, the balance in the Government Grant Reserve relating to such item is transferred to the accumulated surplus or deficit.
Donations and public contributions reserve
105 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.2 Internal Reserves (continued)
When items of property, plant and equipment are financed from public contributions and donations, a transfer is made from the accumulated surplus/deficit to the Donations and Public Contributions Reserve equal to the donations and public contributions recorded as revenue in the Statement of Financial Performance in accordance with a directive issued by National Treasury. When such items of property, plant and equipm ent are depreciated, a transfer is made from the Donations and Public Contributions Reserve to the accumulated surplus/deficit. The purpose of this policy is to promote community equity and facilitate budgetary control by ensuring that sufficient funds are set aside to offset the future depreciation charges that will be incurred over the estimated useful life of the item of property, plant and equipment financed from donations and public contributions.
When an item of property, plant and equipment financed from government grants is disposed of, the balance in the Donations and Public Contributions Reserve relating to such item is transferred to the accumulated surplus/deficit.
Revaluation reserve
The surplus arising from the revaluation of property, plant and equipment is credited to a non-distributable reserve. The revaluation surplus is realised as revalued buildings are depreciated, through a transfer from the revaluation reserve to the accumulated surplus/deficit. On disposal, the net revaluation surplus is transferred to the accumulated surplus or deficit while gains or losses on disposal, based on revalued amounts, are recognised in the Statement of Financial Performance.
1.3 Property, plant and equipment
Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.
Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.
Any increase in an asset’s carrying amount, as a result of a revaluation, is credited directly to a revalutation surplus. The increase is recognised in surplus or deficit to the extent that it reverses a revaluation decrease of the same asset previously recognised in surplus or deficit.
Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in surplus or deficit in the current period. The decrease is debited directly to a revaluation surplus to the extent of any credit balance existing in the revaluation surplus in respect of that asset.
Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.
Property, plant and equipment is carried at revalued amount, being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.
Any increase in an asset’s carrying amount, as a result of a revaluation, is credited directly to a revaluation surplus. The increase is recognised in surplus or deficit to the extent that it reverses a revaluation decrease of the same asset previously recognised in surplus or deficit.
Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in surplus or deficit in the current period. The decrease is debited in revaluation surplus to the extent of any credit balance existing in the revaluation surplus in respect of that asset.
Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Where an asset is acquired at no cost or for nominal cost its cost is its fair value as the date of acquisition.
Heritage assets, which are culturally significant resources and are shown at cost, are not depreciated, owing to the uncertainty regarding their estimated useful lives. x Heritage assets : Building in 46 Alexander street, was declared as an Provincial Heritage site on 8 September 1967.
Land is not depreciated.
Where items of property, plant and equipment have been impaired, the carrying value is adjusted by the impairment loss, which is recognised as an expense in the Statement of Financial Performance in the period that the impairment is identified.
Growing, Sharing, Delivering & Innovating Together 106 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.3 Property, plant and equipment (continued)
Subsequent expenditure relating to property, plant and equipment is capitalised if it is probable that future economic benefits or potential service delivery of the assets are enhanced in excess of the originally assessed standard of performance. If expenditure only restores the originally assessed standard of performance, it is regarded as repairs and maintenance, and is recognised in surplus or deficit as incurred.
The gain or loss arising from the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying value, and is included in surplus or deficit whom such items is derecognised.
Revaluation on fixed property was done during the 2008/2009 financial year and will again done in the 2011/2012 financial year.
Depreciation and impairment losses
Depreciation is calculated using the straight line method, over the estimated useful lives of the assets. The depreciation rates are based on the following estimated useful lives for the current and comparative years:
Item Estimated useful life Buildings 30-40 Specialist plant & equipment 10-15 Furniture and Fittings 5-10 Other vehicles 5-10 Office equipment & Air Conditioners 3-5 Other Plant & Equipment 5-10 Specialised vehicles 10-15
In the case of vehicles depreciation is calculated on cost less residual values, using the straight line method, over the estimated useful lives of the assets. The Auto Dealers Guide was used to determine the following percentages for residual values: l Motor Cars 53,59% l LDV's 45,81% l Combi's 32,91% l Specialized Fire Vehicles 43,44%
Assets under construction are carried at cost. Depreciation of an asset commences when the asset is ready for its intended use. Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets, or, where shorter, the term of the relevant lease.
Impairment of property, plant and equipment:
Property, plant and equipment are reviewed at each reporting date for any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. The impairment charged to the Statement of Financial Performance is the excess of the carrying value over the recoverable amount.
An impairment is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined had no impairment been recognised. A reversal of impairment is recognised in the Statement of Financial Performance.
1.4 Investment property
Investment properties are properties held either to earn rental income, and for capital appreciation or both. Investment properties are measured at cost less accumulated depreciation. Investment properties are written down for impairment where considered necessary. Investment property excludes owner-occupied property that is used in the production or supply of goods or services, or for administrative purposes, or property held to provide a social service. When investment property is acquired at no cost or for nominal cost, its cost is its fair value as at the date of acquisition.
No revaluation was done on investment property, because council does not have any investment property.
1.5 Intangible assets
An intangible asset is as an identifiable, non-monetary asset without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes.
107 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.5 Intangible assets (continued)
The Municipality recognises computer development software costs as intangible assets if the costs are clearly associated with an identifiable and unique system controlled by the Municipality, and have a probable benefit exceeding one year. Direct costs include software development employee costs and an appropriate portion of relevant overheads.
Direct computer software development costs recognised as assets and are amortised on the straight-line basis over the useful lives of the assets estimated at three to five years.
1.6 Financial instruments
Classification
The municipality classifies financial assets and financial liabilities into the following categories: l Financial assets at fair value through surplus or deficit - held for trading l Held-to-maturity investment l Loans and receivables l Available-for-sale financial assets
The classification depends on the purpose for which the financial asset is acquired, and is as follows:
Held-to-maturity investments are financial assets with fixed or determinable payments and fixed maturity, where the Municipality has the positive intent and ability to hold the investment to maturity. They are subsequently measured at amortised cost, using the effective interest rate method. Any adjustment is recorded in the Statement of Financial Performance in the period in which it arises.
Loans and receivables are financial assets that are created by providing money, goods or services directly to a debtor. They are subsequently measured at amortised cost, using the effective interest rate method. Any adjustment is recorded in the Statement of Financial Performance in the period in which it arises
Available-for-sale financial assets are financial assets that are designated as available for sale, and are subsequently measured at fair value at Statement of Financial Position date, except for investments in equity instruments that do not have quoted market price in an active market, and whose fair value cannot be reliably measured, which shall be measured at cost. Any adjustment is recorded in the Statement of Financial Performance in the period in which it arises
Held-for-trading financial assets include derivative financial instruments used by the Municipality to manage its exposure to fluctuations in interest rates attached to certain of its external borrowings in the form of interest swap agreements. Any fair value adjustment is recorded in the Statement of Financial Performance in the period in which it arises. To the extent that a derivat ive instrument has a maturity period of longer than a year, the fair value of these instruments will be reflected as a non-current asset or liability, and is subsequently measured at fair value at Statement of Financial Position date.
An assessment is performed at each Statement of Financial Position date to determine whether objective evidence exists that a financial asset is impaired. The carrying amounts of cash in vestments are reduced to recognise any decline, other than a temporary decline, in the value of individual investments. Th is reduction in carrying value is recognised in the Statement of Financial Performance.
Initial recognition and measurement
Transaction costs on financial instruments at fair value through surplus or deficit are recognised in surplus or deficit.
Financial instruments are recognised when the Municipality becomes a party to the contractual provisions of the instrument, and are initially measured at fair value plus, in the case of a financial asset or liability not at fair value through the Statement of Financial Performance, transaction costs that are directly attributable to the acquisition or issue of the financial asset or liability. The subsequent measurement of financial instruments is dealt with as follows:
Financial assets are derecognised when the rights to receive cash flows from the assets have expired or have been transferred, and the Municipality has transferred substantially all risks and rewards of ownership, or when the enterprise loses control of contractual rights that comprise the assets. Financial liabilities are derecognised when the obligation specified in the contract is discharged or cancelled or expires.
Trade and other receivable
Growing, Sharing, Delivering & Innovating Together 108 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.6 Financial instruments (continued)
Trade and other receivables are recognised initially at fair value, and subsequently stated at amortised cost, less provision for impairment. An estimate is made for doubtful debt based on past default experience of all outstanding amounts at year- end. Bad debts are written off in the year in which they are identified as irrecoverable, subject to the approval of the necessary dedicated authority. Amounts receivable within 12 months from the date of reporting are classified as current.
A provision for impairment of trade receivables is established when there is objective evidence that the Municipality will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Interest is charged on overdue amounts.
Trade and other payables
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.
Cash and cash equivalents
Cash includes cash on hand and cash with banks. Cash equivalents are short-term highly liquid investments that are held with registered banking institutions with maturities of three months or less and are subject to an insignificant risk of change in value.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand deposits held on call with banks and investment in financial instruments, net of bank overdrafts.
Bank overdrafts are recorded based on facility utililised. Finance charges on bank overdrafts are expensed as incurred.
Bank overdraft and borrowings
Bank overdrafts and borrowings are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the municipality’s accounting policy for borrowing costs.
Financial liabilities and equity instruments
The Municipality measures all financial liabilities, including trade and other payables, at amortised cost, using the effective interest method. Financial liabilities include borrowings, ot her non-current liabilities (excluding provisions) and trade and other payables (excluding provisions). Interest-bearing external loans and bank overdrafts are recorded net of direct issue costs. Finance charges, including premiums payable, are accounted for on an accrual basis.
1.7 Inventories
Inventories consist of raw materials, work in progress, consumables and finished goods, which are measured at the lower of cost, determined on the weighted average basis, and net realisable value, except for plants and compost, which are measured at the tariffs charged. Where inventories are held for distribution or consumption at no charge or for a nominal amount, inventories are measured at the lower of cost and current replacement cost. Current replacement cost is the cost incurred to acquire the asset on the reporting date
Cost of inventories comprises all costs of purchase, cost of conversion, and other costs incurred in bringing the inventories to their present location and condition. Where inventories are acquired at no cost or for nominal consideration, the cost is deemed to be the fair value as at the date of acquisition.
Redundant and slow moving inventories are identified and written down to their estimated net realisable values. Consumables are written down according to their age, condition and utility.
1.8 Revenue Recognition
Revenue excluding value-added taxation where applicable is derived from a variety of sources which include rates levied in the District Management Area, Grants from other spheres of Government, RSC Levies and other services provided. Revenue is recognised when it is probable that future economic benefits or service potential will flow to the Municipality and these benefits can be measured reliably.
109 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.8 Revenue Recognition (continued)
Revenue from exchange transactions l The Regional Establishment Levy and Regional Services Levy are recognized at the time of receipt. Levies that must be recognised are calculated as a percentage of turnover and remuneration. RSC Levies have been abolished at June 2006, however legislation was issued to allow municipalities to recover all outstanding RSC Levies until June 2008. l Revenue from rates in the DMA is recognised when the Legal Entitlement to this revenue arises. Rates are levied on the land and improvements value of property. The DMA has been transferr ed to certain local municipalities as determined by the Demarcation Board, therefore council will not account for Revenue from Rates as from the 01 July 2009. l Income in respect of housing rental and instalment sales agreements is accrued monthly in terms of the agreement. l Government grants and public contributions are recognised as revenue when all conditions associated with the grant have been met l Interest earned on unutilised conditional grants is allocated directly to the Statement of Financial Performance. Then the interest is allocated to the creditor: Unspent Conditional Grants, if the grant conditions indicate that interest is payable to the funder l Interest on outstanding debtors is recognised on a time proportionate basis and is charged on all outstanding debtors older than 30 days. l Collection charges are recognized when such amounts are legally enforceable. l Donations are recognized on a cash receipt basis or where the donation is in the form of property, plant and equipment, when such items of property, plant and equipment are brought into use. l Revenue arising from the application of the approved tariff of charges is recognized when the relevant service is rendered by applying the relevant authorized tariff. This includes the issuing of licenses and permits. l Various services are provided on a prepayment basis, in which case no formal billing takes place, and revenue is recognised when received. l Revenue from the sale of goods is recognised when all the following conditions have been satisfied: l The Municipality has transferred to the buyer the significant risks and rewards of ownership of the goods. l The Municipality retains neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold. l The amount of revenue can be measured reliably. l The costs incurred or to be incurred in respect of the transaction can be measured reliably. l Prepaid electricity sold is only recognised as income once the related units are consumed.
Revenue from non-exchange transactions l Donations are recognised on a cash receipt basis, or at fair value, or where the donation is in the form of property, plant and equipment, when the risks or rewards of ownership have transferred to the Municipality. l Income from the recovery of unauthorised, irregular, fruitless and wasteful expenditure is based on legislated procedures, including those set out in the Municipal Finance Management Act (Act No 56 of 2003), and is recognised when the recovery thereof from the responsible councillors or officials is probable
1.9 Offsetting
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to set off the recognised amount, and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. Revenue and expenses have not been offset except when offsetting is required or permitted by a standard of GRAP.
1.10 Conditional Grants and receipts
Income received from conditional grants, donations and subsidies is recognised to the extent that the Municipality has complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met, a liability is recognised and funds invested until it is utilised.
Interest earned on the investment is treated in accordance with grant conditions. If it is payable to the funder, it is recorded as part of the creditor. If it is the Municipality’s interest, it is recognised as interest earned in the Statement of Financial Performance.
Grants and receipts of a revenue nature
Income is transferred to the Statement of Financial Performance as revenue to the extent that the criteria, conditions or obligations have been met.
Growing, Sharing, Delivering & Innovating Together 110 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.10 Conditional Grants and receipts (continued)
Grants and receipts of a capital nature
Income is transferred to the Statement of Financial Performance to the extent that the criteria, conditions or obligations have been met.
1.11 Provisions and contingencies
A provision is recognised when the municipality has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits 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 of the provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.
When the effect of discounting is material, provisions are determined by discounting the expected future cash flows that reflect current market assessments of the time value of money. The impact of the periodic unwinding of the discount is recognised in the Statement of Financial Performance as a finance cost.
Provision for Performance Bonuses
The Municipality makes provision for bonuses payable owing to officials in terms of performance agreements.
Provision for Bonuses
Provision is made for unpaid bonuses payable to officials in their next bonus cycle prorated to the end of the financial year.
1.12 Environmental Rehabilitation Provision
Estimated long-term environmental provisions, comprising rehabilitation and landfill site closure, are based on the Municipality’s policy, taking into account current technological, environmental and regulatory requirements.
The provision for rehabilitation is recognised as and when the environmental liability arises. To the extent that the obligations relate to the asset, they are capitalised as part of the cost of those assets. Any subsequent changes to an obligation that did not relate to the initial related asset are charged to the Statement of Financial Performance.
1.13 Employee Benefits
Short-and long term employee benefits
The cost of all short-term employee benefits, such as leave pay, is recognised during the period in which the employee renders the related service. The m unicipality recognises the expected cost of performance bonuses only when the Municipality has a present legal or constructive obligation to make such payment, and a reliable estimate can be made.
The Municipality provides long-term incentives to eligible employees, payable on completion of years of employment. The Municipality’s liability is based on an actuarial valuation. The projected unit credit method has been used to value the liabilities. Actuarial gains and losses on the long-term incentives are accounted for through the Statement of Financial Performance.
Post- retirement pension funds
Pension contributions in respect of employees who were not members of a pension fund are recognised as an expense when incurred. Staff provident funds are ma intained to accommodate personnel who, due to age, cannot join or be part of the various pension funds. The Municipality contributes monthly to the funds.
These contributions are charged to the operating account when employees have rendered the service entitling them to the contribution. Actuarial valuation of the liability is performed on an annual basis. The projected unit credit method has been used to value the liabilities.
The liability in respect of current pensioners is regarded as fully accrued, and is therefore not split between a past (or accrued) and future in-service element. The liability is rec ognised at the fair value of the obligation, together with adjustments for the unrecognised actuarial gains and losses, and past service costs.
111 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.13 Employee Benefits (continued)
Actuarial gains or losses are accounted for using the ‘corridor method’. Actuarial gains and losses are eligible for recognition in the Statement of Financial Performance to the extent that they exceed 10% of the present value of the gross defined benefit obligations in the scheme. Actuarial gains and losses exceeding 10% are spread over the expected average remaining working lives of the employees participating in the scheme. Actuarial valuations are performed annually.
Medical aid: continued members
The Municipality provides retirement benefits for its employees and councillors. Defined contribution plans are post- employment benefit plans under which an entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. The contributions to fund obligations for the payment of retirement benefits are charged against income in the year they become payable.
Defined benefit plans are post-employment benefit plans other than defined contribution plans. The defined benefit funds, which are administered on a provincial basis, are actuarially valued tri-annually on the projected unit credit method basis. Deficits identified are recovered through lump sum payments or increased future contributions on a proportional basis to all participating municipalities. The contributions and lump sum payments are charged against income in the year they become payable.
Post retirement medical obligations
The Municipality provides post-retirement benefits by subsidising the medical aid contributions of certain retired staff. According to the rules of the medical aid funds with which the Municipality is associated, a member (who is on the current conditions of service) on retirement, is entitled to remain a continued member of such medical aid fund, in which case the member is liable for 30% of the medical aid membership fee, and the Municipality for the remaining 70%. Under an accrued rights position agreed to by Council, the age of internally appointed staff under the Municipality’s new conditions of service determines, on a sliding-scale basis, the post-retirement subsidy for medical aid. External appointments do not qualify for a post-retirement medical aid subsidy.
These contributions are charged to the operating account when employees have rendered the service entitling them to the contribution.
The liability in respect of current pensioners is regarded as fully accrued, and is therefore not split between a past (or accrued) and future in-service element. The liability is recognised at the fair value of the obligation, together with adjustments for the unrecognised actuarial gains and losses, and past service costs.
Actuarial gains or losses are accounted for using the ‘corridor method’. Actuarial gains and losses are eligible for recognition in the Statement of Financial Performance to the extent that they exceed 10% of the present value of the gross defined benefit obligations in the scheme. Actuarial gains and losses exceeding 10% are spread over the expected average remaining working lives of the employees participating in the scheme. Actuarial valuations are performed annually.
1.14 Leases
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.
Finance leases – lessee
Leases are classified as finance leases where substantially all the risks and rewards associated with ownership of an asset are transferred to the Municipality.
Assets subject to finance lease agreements are capitalised at their cash cost equivalent, and the corresponding liabilities are raised. The cost of the assets is depreciated at appropriate rates on the straight-line basis over the estimated useful lives of the assets. Lease payments are allocated between the lease finance cost and the capital repayment, using the effective interest rate method. Lease finance costs are expensed when incurred.
Municipality as lessor
Operating lease revenue is recognised as an revenue on a straight-line basis over the lease term.
Operating leases – lessee
Growing, Sharing, Delivering & Innovating Together 112 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Accounting Policies
1.14 Leases (continued)
Operating leases are those leases that do not fall within the scope of the above definition. Payments made under operating leases are charged to the Statement of Financial Performance on a straight-line basis over the period of the lease.
1.15 Grants-In-Aid
The Municipality transfers money to individuals, organisations and other sectors of government from time to time. When making these transfers, the Municipality does not: l receive any goods or services directly in return, as would be expected in a purchase or sale transaction; l expect to be repaid in future; or l expect a financial return, as would be expected from an investment.
These transfers are recognised in the Statement of Financial Performance as expenses in the period that the events giving rise to the transfer occurred.
1.16 Tax
The Municipality accounts for value-added tax on the cash basis.
1.17 Unauthorised expenditure
Unauthorised expenditure is expenditure that has not been budgeted for, expenditure that is not in terms of the conditions of an allocation received from another sphere of government, municipality or organ of state, and expenditure in the form of a grant that is not permitted in terms of the Municipal Finance Management Act (Act No. 56 of 2003). Unauthorised expenditure is accounted for as an expense in the Statement of Financial Performance, and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.
1.18 Irregular expenditure
Irregular expenditure is expenditure that is contrary to the Municipal Finance Management Act (Act No. 56 of 2003), the Municipal Systems Act (Act No. 32 of 2000), and the Public Office Bearers Act (Act No. 20 of 1998), or is in contravention of the municipality’s supply chain management policy. Irregular expenditure ex cludes unauthorised expenditure. Irregular expenditure is accounted for as expenditure in the Statement of Financial Performance, and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.
1.19 Fruitless and wasteful expenditure
Fruitless and wasteful expenditure is expenditure that was made in vain, and would have been avoided had reasonable care been exercised. Fruitless and wasteful expenditure is a ccounted for as expenditure in the Statement of Financial Performance, and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.
1.20 Translation of foreign currencies
Foreign currency transactions
Transactions in foreign currencies are initially accounted for at the rate of exchange ruling on the date of the transaction. Trade creditors denominated in foreign currency are reported at balance sheet date by applying the exchange rate at that date. Exchange differences arising from the settlement of creditors, or on reporting of creditors at rates different from those at which they were initially recorded during the period, are recognised as income or as expenses in the period in which they arise. Council considers the necessity to take out forward cover before entering into foreign exchange transactions in order to avoid possible losses due to fluctuation in exchange rates.
1.21 Borrowing costs
Borrowing costs are capitalised against qualifying assets as part of property, plant and equipment.
Such borrowing costs are capitalised over the period during which the asset is being acquired or constructed, and borrowings have been incurred. Capitalisation ceases when construction of the asset is complete. Further borrowing costs are charged to the Statement of Financial Performance.
18
113 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
2. Changes in accounting policy
Council implemented GAMAP/ GRAP in 2004/2005. Since then no changes were made that had a material impact on the annual financial statements.
3. New standards and interpretations
IFRIC 14 (AC 447) IAS 19 - The Limitation on a Defined Benefit Asset, Minimum Funding Requirements and thei r Interaction
The interpretation addresses the limitation of a defined benefit asset in accordance with paragraph 58 of IAS 19 (AC 116) Employee Benefits. The interpretation provides guidance in the determination of the amount of economic benefits available in the form of refunds and reductions in future contributions, which will affect the maximum amount which may be measured as a defined benefit asset.
The effective date of the interpretation is for years beginning on or after 01 January 2011.
The municipality expects to adopt the interpretation for the first time in the 2012 annual financial statements.
It is unlikely that the interpretation will have a material impact on the municipality's annual financial statements.
GRAP 24: Presentation of Budget Information in the Financial Statements
Subject to the requirements of paragraph .19, an entity shall present a comparison of the budget amounts for which it is held publicly accountable and actual amounts either as a separate additional financial statement or as additional budget columns in the financial statements currently presented in accordance with Standards of GRAP. T he comparison of budget and actual amounts shall present separately for each level of legislative oversight: the approved and final budget amounts; the actual amounts on a comparable basis; and by way of note disclosure, an explanation of material differences between the budget for which the entity is held publicly accountable and actual amounts, unless such explanation is included in other public documents issued in conjunction with the financial statements, and a cross reference to those documents is made in the notes.
Where an entity prepares its budget and annual financial statements on a comparable basis, it includes the comparison as an additional column in the primary annual financial statements. Where the budget and annual financial statements are not prepared on a comparable basis, a separate statement is prepared called the ‘Statement of Comparison of Budget and Actual Amounts’. This statement compares the budget amounts with the amounts in the annual financial statements adjusted to be comparable to the budget.
A comparable basis means that the budget and annual financial statements: are prepared using the same basis of accounting i.e. either cash or accrual; include the same activities and entities; use the same classification system; and are prepared for the same period.
This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance.
The effective date of the standard is for years beginning on or after a date to be determined by the Minister of Finance in a regulation to be published in accordance with section 91(1) (b) of the Public Finance Management Act, Act No. 1 of 1999, as amended.
The municipality expects to adopt the standard for the first time in the 2011 annual financial statements.
It is unlikely that the standard will have a material impact on the municipality's annual financial statements.
3.1 Standards and interpretations not yet effective or relevant
The following standards and interpretations have been published and are mandatory for the municipality’s accounting periods beginning on or after 01 July 2011 or later periods but are not relevant to its operations:
Growing, Sharing, Delivering & Innovating Together 114 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements
3. New standards and interpretations (continued)
GRAP 18: Segment Reporting
Segments are identified by the way in which information is reported to management, both for purposes of assessing performance and making decisions about how future resources will be allocated to the various activities undertaken by the entity. The major classifications of activities identified in budget documentation will usually reflect the segments for which an entity reports information to management.
Segment information is either presented based on service or geographical segments. Service segments relate to a distinguishable component of an entity that provides specific outputs or achieves particular operating objectives that are in line with the entity’s overall mission. Geographical segments relate to specific outputs generated, or particular objectives achieved, by an entity within a particular region.
This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance.
Directive 2 - Transitional provisions for public entities, municipal entities and constitutional institutions, states that no comparative segment information need to be presented on initial adoption of this Standard.
Directive 3 - Transitional provisions for high capacity municipalities states that no comparative segment information need to be presented on initial adoption of the Standard. Where items have no been recognised as a result of transitional provisions under the Standard of GRAP on Property, Plant and Equipment, recognition requirements of this Standard would not apply to such items until the transitional provision in that Standard expires.
Directive 4 – Transitional provisions for medium and low capacity municipalities states that no comparative segment information need to be presented on initial adoption of the Standard. Where items have not been recognised as a result of transitional provisions un the Standard of GRAP on Property, Plant and Equipment and the Standard of GRAP on Agriculture, the recognition requirements of the Standard would not apply to such items until the transitional provision in that standard expires.
The effective date of the standard is for years beginning on or after a date to be determined by the Minister of Finance in a regulation to be published in accordance with section 91(1) (b) of the Public Finance Management Act, Act No. 1 of 1999, as amended.
No effective date has been determined by the minister of finance.
GRAP 23: Revenue from Non-exchange Transactions
An inflow of resources from a non-exchange transaction recognised as an asset shall be recognised as revenue, except to the extent that a liability is recognised for the same inflow. As an entity satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it will reduce the carrying amount of the liability recognised as recognise and amount equal to that reduction.
This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance.
The effective date of the standard is for years beginning on or after a date to be determined by the Minister of Finance in a regulation to be published in accordance with section 91(1) (b) of the Public Finance Management Act, Act No. 1 of 1999, as amended.
The municipality expects to adopt the standard for the first time in the 2013 annual financial statements.
Non-cash-generating assets are assets other than cash-generating assets.
When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.
An municipality assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, an entity estimates the recoverable service amount of the asset.
The present value of the remaining service potential of a non-cash-generating asset is determined using one of the following approaches: Depreciated replacement cost approach Restoration cost approach
115 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements
3. New standards and interpretations (continued) Service units approach
If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. Any impairment loss of a revalued non-cash-generating asset is treated as a revaluation decrease.
An municipality assess at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, an entity estimates the recoverable service amount of that asset.
A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued non-cash-generating asset is treated as a revaluation increase.
This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance.
The effective date of the standard is for years beginning on or after a date to be determined by the Minister of Finance in a regulation to be published in accordance with section 91(1) (b) of the Public Finance Management Act, Act No. 1 of 1999, as amended.
The municipality expects to adopt the standard for the first time in the 2013 annual financial statements.
GRAP 26: Impairment of cash-generating assets
When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.
An entity assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, a municipality estimates the recoverable amount of the asset. When estimating the value in use of an asset, a municipality estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal and applies the appropriate discount rate to those future cash flows.
If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. Any impairment loss of a revalued cash-generating asset is treated as a revaluation decrease to the extend that the impairment does not exceed the amount in the revaluation suplus for that asset.
If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, an municipality determines the recoverable amount of the cash-generating unit to which the asset belongs (the asset's cash-generating unit).
If an active market exists for the output produced by an asset or group of assets, that asset or group of assets is identified as a cash-generating unit, even if some or all of the output is used internally. If the cash inflows generated by any asset or cash- generating unit are affected by internal transfer pricing, an entity use management's best estimate of future price(s) that could be achieved in arm's length transactions in estimating: the future cash inflows used to determine the asset's or cash-generating unit's value in use; and the future cash outflows used to determine the value in use of any other assets or cash-generating units that are affected by the internal transfer pricing.
Cash-generating units are identified consistently from period to period for the same asset or types of assets, unless a change is justified.
An impairment loss is recognised for a cash-generating unit if the recoverable amount of the unit is less than the carrying amount of the unit. The impairment is allocated to reduce the carrying amount of the cash-generating assets of the unit on a pro rata basis, based on the carrying amount of each asset in the unit. These reductions in carrying amounts are treated as impairment losses on individual assets.
Where a non-cash-generating asset contributes to a cash-generating unit, a proportion of the carrying amount of that non- cash-generating asset is allocated to the carrying amount of the cash-generating unit prior to estimation of the recoverable amount of the cash-generating unit.
Growing, Sharing, Delivering & Innovating Together 116 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements
3. New standards and interpretations (continued)
A municipality assess at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, a municipality estimates the recoverable amount of that asset.
A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued cash-generating asset is treated as a revaluation increase.
This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance.
The effective date of the standard is for years beginning on or after a date to be determined by the Minister of Finance in a regulation to be published in accordance with section 91(1) (b) of the Public Finance Management Act, Act No. 1 of 1999, as amended.
The municipality expects to adopt the standard for the first time in the 2013 annual financial statements.
GRAP 25: Employee benefits
The objective of GRAP 25 is to prescribe the accounting and disclosure for employee benefits. The Standard requires a municipality to recognise: l a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and l an expense when an municipality consumes the economic benefits or service potential arising from service provided by an employee in exchange for employee benefits.
GRAP 25 must be applied by an employer in accounting for all employee benefits, except share based payment transactions.
GRAP 25 defines, amongst others, the following: l Employee benefits as all forms of consideration given by an municipality in exchange for service rendered by employees; l Defined contribution plans as post-employment benefit plans under which an municipality pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods; l Defined benefit plans as post-employment benefit plans other than defined contribution plans; l Multi-employer plans as defined contribution plans (other than state plans and composite social security programmes) or defined benefit plans (other than state plans) that: - pool the assets contributed by various entities that are not under common control; and - use those assets to provide benefits to employees of more than one entity, on the basis that contribution and benefit levels are determined without regard to the identity of the municipality that employs the employees concerned; l Other long-term employee benefits as employee benefits (other than post-employment benefits and termination benefits) that are not due to be settled within twelve months after the end of the period in which the employees render the related service; l Post-employment benefits as employee benefits (other than termination benefits) which are payable after the completion of employment; l Post-employment benefit plans as formal or informal arrangements under which a municipality provides post- employment benefits for one or more employees; l Short-term employee benefits as employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service; l State plans as plans other than composite social security programmes established by legislation which operate as if they are multi-employer plans for all entities in economic categories laid down in legislation; l Termination benefits as employee benefits payable as a result of either: - an entity’s decision to terminate an employee’s employment before the normal retirement date; or - an employee’s decision to accept voluntary redundancy in exchange for those benefits; l Vested employee benefits as employee benefits that are not conditional on future employment.
The standard states the recognition, measurement and disclosure requirements of: l Short-term employee benefits; - All short-term employee benefits; - Short-term compensated absences; - Bonus, incentive and performance related payments;
117 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements
3. New standards and interpretations (continued) Post-employment benefits: Defined contribution plans; Other long-term employee benefits; Termination benefits.
The standard states Post-employment benefits: distinction between defined contribution plans and defined benefit plans: Multi-employer plans; Defined benefit plans where the participating entities are under common control; State plans; Composite social security programmes; Insured benefits.
The standard states, for Post-employment benefits: Defined benefit plans, the following requirements: Recognition and measurement; Presentation; Disclosure; Accounting for the constructive obligation; Statement of financial position; Asset recognition ceiling; l Asset recognition ceiling: When a minimum funding requirement may give rise to a liability; l Statement of financial performance.
The standard prescribes recognition and measurement for: l Present value of defined benefit obligations and current service cost: - Actuarial valuation method; - Attributing benefits to periods of service; - Actuarial assumptions; - Actuarial assumptions: Discount rate; - Actuarial assumptions: Salaries, benefits and medical costs; - Actuarial gains and losses; - Past service cost. l Plan assets: - Fair value of plan assets; - Reimbursements; - Return on plan assets.
The standard also deals with entity combinations and curtailments and settlements.
This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance.
The effective date of the standard is for years beginning on or after a date to be determined by the Minister of Finance in a regulation to be published in accordance with section 91(1) (b) of the Public Finance Management Act, Act No. 1 of 1999, as amended.
No effective date has been determined by the minister of finance.
GRAP 104: Financial Instruments
The standard prescribes recognition, measurement, presentation and disclosure requirements for financial instruments. Financial instruments are defined as those contracts that results in a financial asset in one entity and a financial liability or residual interest in another entity. A key distinguishing factor between financial assets and financial liabilities and other assets and liabilities, is that they are settled in cash or by exchanging financial instruments rather than through the provision of goods or services.
One of the key considerations in initially recognising financial instruments is the distinction, by the issuers of those instruments, between financial assets, financial liabilities and residual interests. Financial assets and financial liabilities are distinguished from residual interests because they involve a contractual right or obligation to receive or pay cash or another financial instrument. Residual interests entitle a entity to a portion of another entity’s net assets in the event of liquidation and, to dividends or similar distributions paid at management’s discretion.
In determining whether a financial instrument is a financial asset, financial liability or a residual interest, a municipality considers the substance of the contract and not just the legal form.
Growing, Sharing, Delivering & Innovating Together 118 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements
3. New standards and interpretations (continued)
Where a single instrument contains both a liability and a residual interest component, the issuer allocates the instrument into its component parts. The issuer recognises the liability component at its fair value and recognises the residual interest as the difference between the carrying amount of the instrument and the fair value of the liability component. No gain or loss is recognised by separating the instrument into its component parts.
Financial assets and financial liabilities are initially recognised at fair value. Where a municipality subsequently measures financial assets and financial liabilities at amortised cost or cost, transaction costs are included in the cost of the asset or liability.
The transaction price usually equals the fair value at initial recognition, except in certain circumstances, for example, where interest free credit is granted or where credit is granted at a below market rate of interest.
Concessionary loans are loans either received by or granted to another entity on concessionary terms, e.g. at low interest rates and flexible repayment terms. On initial recognition, the fair value of a concessionary loan is the present value of the agreed contractual cash flows, discounted using a market related rate of interest for a similar transaction. The difference between the proceeds either received or paid and the present value of the contractual cash flows is accounted for as non- exchange revenue by the recipient of a concessionary loan in accordance with Standard of GRAP on Revenue from Non- exchange Revenue Transactions (Taxes and Transfers), and using the Framework for the Preparation and Presentation of Financial Statements (usually as an expense) by the grantor of the loan.
Financial assets and financial liabilities are subsequently measured either at fair value, amortised cost or cost. A municipality measures a financial instrument at fair value if it is: a derivative; a combined instrument designated at fair value, i.e. an instrument that includes a derivative and a non-derivative host contract; held-for-trading; a non-derivative instrument with fixed or determinable payments that is designated at initial recognition to be measured at fair value; an investment in a residual interest for which fair value can be measured reliably; and other instruments that do not meet the definition of financial instruments at amortised cost or cost.
Derivatives are measured at fair value. Combined instruments that include a derivative and non-derivative host contract are accounted for as follows: Where an embedded derivative is included in a host contract which is a financial instrument within the scope of this Standard, an entity can designate the entire contract to be measured at fair value or, it can account for the host contract and embedded derivative separately using GRAP 104. A municipality is however required to measure the entire instrument at fair value if the fair value of the derivative cannot be measured reliably. Where the host contract is not a financial instrument within the scope of this Standard, the host contract and embedded derivative are accounted for separately using GRAP 104 and the relevant Standard of GRAP.
Financial assets and financial liabilities that are non-derivative instruments with fixed or determinable payments, for example deposits with banks, receivables and payables, are measured at amortised cost. At initial recognition, a municipalitycan however designate such an instrument to be measured at fair value.
An municipality can only measure investments in residual interests at cost where the fair value of the interest cannot be determined reliably.
Once an municipality has classified a financial asset or a financial liability either at fair value or amortised cost or cost, it is only allowed to reclassify such instruments in limited instances.
An entity derecognises a financial asset, or the specifically identified cash flows of an asset, when: l the cash flows from the asset expire, are settled or waived; l significant risks and rewards are transferred to another party; or l despite having retained significant risks and rewards, an entity has transferred control of the asset to another entity.
A municipality derecognises a financial liability when the obligation is extinguished. Exchanges of debt instruments between a borrower and a lender are treated as the extinguishments of an existing liability and the recognition of a new financial liability. Where a municipality modifies the term of an existing financial liability, it is also treated as the extinguishments of an existing liability and the recognition of a new liability.
119 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements
3. New standards and interpretations (continued)
A municipality cannot offset financial assets and financial liabilities in the statement of financial position unless a legal right of set-off exists, and the parties intend to settle on a net basis.
GRAP 104 requires extensive disclosures on the significance of financial instruments for a municipality’s statement of financial position and statement of financial performance, as well as the nature and extent of the risks that a municipality is exposed to as a result of its annual financial statements. Some disclosures, for example the disclosure of fair values for instruments measured at amortised cost or cost and the preparation of a sensitivity analysis, are encouraged rather than required.
GRAP 104 does not prescribe principles for hedge accounting. A municipality is permitted to apply hedge accounting, as long as the principles in IAS 39 are applied.
This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance.
The effective date of the standard is for years beginning on or after a date to be determined by the Minister of Finance in a regulation to be published in accordance with section 91(1) (b) of the Public Finance Management Act, Act No. 1 of 1999, as amended.
No effective date has been determined by the minister of finance.
Growing, Sharing, Delivering & Innovating Together 120 Carrying value
- 9,738,432
t
(512,429) 1,018,632
and
(1,558,183) 2,413,620
(72,575,447) 175,764,820
(39,923,913) 36,273,761 (30,580,922) 126,320,375
impairmen
depreciation
accumulated
Accumulated
9,738,432
3,971,803
1,531,061
76,197,674
Valuation
248,340,267
156,901,297
968,046
Y
Carrying value Cost /
1
- 15,580,666
t
ALIT
2011 2010
(562,168)
and
impairmen
depreciation
accumulated
Accumulated
Cost /
5,304,608 (2,955,546) 2,349,062
1,530,214
15,580,666
78,474,227 (38,050,567) 40,423,660
Valuation
257,074,456 (73,913,283) 183,161,173
156,184,741 (32,345,002) 123,839,739
27
Annual Financial Statements for the year ended 30 June 201
CAPE WINELANDS DISTRICT MUNICIP
Annual Financial Statements
y, plant and equipment
Work in ProgressWork Heritage Infrastructure Other property, plant and equipment Notes to the Figures in Rand 4. Propert Buildings Total
121 968,046
Total
Total
15,580,666
) 175,764,820
- 2,413,620
17
(49,738)
(50,164) 1,018,632
(5,106,306) 40,423,660
(8,113,168) 183,161,173
Depreciation
Depreciation
-
- - 2,349,062
(1) (10,808,1
ges,
70,968 (2,957,124) 123,839,739
(28,409) (2,822,072) 126,320,375
760,907 (7,935,881) 36,273,761
4,225,758
(1,655,727)
Transfers
movements
Other chan
- 4,296,726
- - - 9,738,432
(10,299)
(64,558)
(15,105)
672,625
(597,768) (359,288)
(374,393)
Y
Transfers
Disposals
1
-
-
- - 923,228 --
-
ALIT
7,321,649
6,830,109
14,151,758
Additions
Disposals
-----
(1)
(2) (1,013,797)
ges in
614,338
(614,339) (1,013,797)
2,908,323 1,490,392 2,724,523
balance
Balance
36,486,374
Opening
Opening
129,185,961
172,795,573
Chan
---
9,452
388,950
5,842,234
5,985,958
12,226,594
Additions
1,018,632
balance
36,273,761
Opening
175,764,820
Annual Financial Statements for the year ended 30 June 201
1
CAPE WINELANDS DISTRICT MUNICIP
Annual Financial Statements
y, plant and equipment (continued)
Work in ProgressWork 9,738,432 Other property, plant and equipment Other property, plant and equipment Heritage 2,413,620 Infrastructure in ProgressWork Buildings Heritage Infrastructure
Buildings 126,320,375
Reconciliation of property, plant and equipment - 201 Notes to the Figures in Rand 4. Propert Reconciliation of property, plant and equipment - 2010 122 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
4. Property, plant and equipment (continued)
Assets subject to finance lease (Net carrying amount)
Buildings 965,221 - Other property, plant and equipment 333,435 311,238 1,298,656 311,238
Revaluations
The effective date of the revaluations was 30 June 2009. Revaluations were performed by independent valuer, Mr. C.S. Dockel, of Dockel Sibanda & Associates. Dockel Sibanda & Associates is not connected to the municipality.
Land and buildings are re-valued independently every 3 years.
The valuation was performed using the Capitalisation of Income Method, Comparable Sales Method and the Depreciated Replacement Cost Method.
A register containing the information required by section 63 of the Municipal Finance Management Act is available for inspection at the registered office of the municipality. Two housing schemes was transferred from the Department Public Works to council to do further upgrading and development. During the 2008/2009 financial year several even in these housing projects were disposed at no cost to the beneficiaries. Although these transactions are reflected as a loss on sale in the Income Statement there were no cash implications to the municipality in this regard.
The value of the Land and Buildings and Infrastructure at cost price on 30 June 2011 was R 41 602 015.
5. Financial assets by category
The accounting policies for financial instruments have been applied to the line items below:
2011
Loans and Total receivables Other Receivables 10,873,597 10,873,597 Cash and cash equivalents 373,619,166 373,619,166 Consumer Debtors 153,134 153,134 384,645,897 384,645,897
2010
Loans and Total receivables Other Receivables 17,770,815 17,770,815 Cash and cash equivalents 349,251,371 349,251,371 Consumer Debtors 1,564,617 1,564,617 368,586,803 368,586,803
6. Employee benefit obligations
Defined benefit plan
All Council employees belong to one of the following funds. These schemes are subject to a tri- annual, bi- annual or annual actuarial valuation as set out. The Council's contributions to these funds are reflected in surplus or deficit.
123 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
6. Employee benefit obligations (continued)
Cape Joint Pension fund, which is a defined benefit fund and is governed by the Pension finds Act of 1956. 6.81% of Council's employees are members of this fund. The fund is also a multi employer plan and the contribution rate payable is 27%, 9% by the members and 18% by Council. The recommended total contribution rate of 32.06% of pensionable salaries, as recommended in the previous statutory actuarial valuation, exceeds the total current contribution of 27% of salaries in the Defined Benefit Section. This shortfall translates to about R9.8 million a year based on Defined Benefit Section active members salaries at the valuation date.
A final interest rate of 7.0% p.a. was declared in the Defined Contribution Section for the year ending 30 June 2010. A pension increase of 2.0% on 1 January 2011 was awarded.
SAMWU National Provident Fund, which is a privately-administered fund. The fund is subject to actuarial valuation. According to the actuarial valuation the value of total assets of the SAMWU National provident Fund was R 2 007 million on 30 June 2006. 6.49 % of Council's employees are members of this fund. The funding level of the fund was 110.3% on 30 June 2006. Financial Statements for the 2009/2010 financial year are not available yet.
The Municipal Councillors Pension Fund operates as a defined contribution fund. The fund was established in 1988 and an actuarial valuation is carried out every 3 years. The fund was sound at its previous valuation in 2009.
7. Inventories
Consumable stores 1,999,599 1,662,218
8. Other Receivables
Insurance - 17,192 *Other receivable 10,873,597 17,753,623 10,873,597 17,770,815
*Other Receivables Accrued Interest 5,589,625 5,686,961 Recoverable Grouplife - 993,219 Outstanding Department of Water Affairs- claims 1,720,962 1,584,350 Deposits 255,000 255,000 TCTA year end Debtor 550,411 487,556 Suspense General 3,097 45,000 Roads Debtor - 4,474,662 VAT debtors - 409,300 Government grant suspense vote 2,709,268 3,793,542 Other debit balances 45,234 24,032 10,873,597 17,753,622
9. Consumer debtors
Gross balances Rates 707,659 706,114 Other 812,254 1,297,784 1,519,913 2,003,898
Less: Provision for bad debts Rates (707,659) - Other ( 659,120) (439,281) (1,366,779) (439,281)
Growing, Sharing, Delivering & Innovating Together 124 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
9. Consumer debtors (continued)
Net balance Rates 0 706,114 Other (153,134) 858,503 153,134 1,564,617
Rates Current (0 -30 days) -61 61 - 90 days - 143,490 121 + Days 707,654 562,563 707,654 706,114
Other Current (0 -30 days) 50,211 45,516 31 - 60 days 33,924 27,677 121+ Days 728,119 1,223,591 812,254 1,296,784
Summary of debtors by customer classification
Consumers Current (0 -30 days) 20,553 15,006 31 - 60 days 7,175 928 61 - 90 days - 143,490 121 + Days 1,435,778 1,786,154 1,463,506 1,945,578 Less: Provision for bad debts (1,366,779) (426,567) 96,727 1,519,011
National and provincial government Current (0 -30 days) 29,658 31,571 31 - 60 days 26,748 26,748 56,406 58,319 Less: Provision for bad debts - (12,714) 56,406 45,605
Total Current (0 -30 days) 50,211 46,577 31 - 60 days 33,924 27,677 61 - 90 days - 143,490 121 + Days 1,435,777 1,786,154 1,519,912 2,003,898 Less: Provision for bad debts (1,366,779) (439,281) 153,133 1,564,617
Less: Provision for debt impairment Current (0 -30 days) - (10,154) 31 - 60 days - (6,033) 61 - 90 days - (31,281) 121 + Days (1,366,779) (391,813) (1,366,779) (439,281)
The risk profile of each class of debtor were assessed to determine the provision for bad debt.
125 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
9. Consumer debtors (continued)
Reconciliation of bad debt provision Opening Balance 439,281 160,377 Contributions to provision 1,005,180 278,905 Bad debts written off against provision (77,682) - 1,366,779 439,282
10. Cash and cash equivalents
Cash and cash equivalents consist of:
Cash on hand 4,600 4,640 Bank balances 7,614,566 25,246,731 Short-term Investments (See note 35) 366,000,000 324,000,000 373,619,166 349,251,371
11. Foreign currency transaction reserve
Transaction reserve comprises exchange differences on consolidation of foreign subsidiaries
Opening balance 166,269 - Receipts/ Additions - 170,163 Interest Received - (3,891) Expenditure during the year (166,269) - - 166,272
12. Revaluation reserve
Opening balance 118,253,185 120,815,895 Transfer to NDR - (15,105) Transfer to Depreciation (2,419,844) (2,547,605) 115,833,341 118,253,185
13. Accumulated surplus
Ring-fenced internal funds and reserves within accumulated surplus - 2011
Capital Government Total replacement grant reserve reserve Opening balance 76,107,925 1,707,778 77,815,703 Cash Utilised (5,583,149) 615,442 (4,967,707) Received additions to NDR - (377,460) (377,460) 70,524,776 1,945,760 72,470,536
32
Growing, Sharing, Delivering & Innovating Together 126 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
13. Accumulated surplus (continued)
Ring-fenced internal funds and reserves within accumulated surplus - 2010
Capital Government Total replacement grant reserve reserve Opening balance 83,114,158 2,128,393 85,242,551 Transfer to depreciation - (579,371) (579,371) Cash Utilised (7,006,233) - (7,006,233) Received additions to NDR - 158,756 158,756 76,107,925 1,707,778 77,815,703
Reconciliation of Accumulated surplus Opening Balance 289,266,931 300,204,307 Cash Utilised (CRR) (5,583,149) (7,006,233) Transfer to Income Statement (GGR) (377,460) (579,371) Capital Grants used to purchase PPE (GGR) 615,442 158,756 Transfer to CRR 5,583,149 7,006,233 Capital Grants used to purchase PPE (305,265) (158,756) Transfer to Offset Depreciation 2,797,303 3,126,976 Other - (434,049) Donated/ Contributed Asset (310,177) - Prior Year Ad justments 3,766,125 (143,976) Prior Period Error 4,295,041 - Net surplus/ deficit for the year (14,876,036) (12,906,964) Rounding error -2 284,871,904 289,266,925
14. Finance lease obligation
Non-current liabilities 122,746 127,317 Current liabilities 136,829 156,267 259,575 283,584
It is the policy of the council to lease cellphones under finance leases.
The lease term is 24 months.
Interest rates are linked to prime through the lease term.
Depreciation and interest paid will be added to and disclosed together with the other depreciation and interest paid of the entity.
Opening Balance 283,585 287,429 Capalised lease liabilities 185,770 156,660 Payments during the year (209,779) (160,504) 259,576 283,585 Finance lease obligation (136,829) (156,267) Long term liabilities 122,747 127,318
The municipality's obligations under finance leases are secured by the lessor's charge over the leased assets.
Depreciation and interest paid will be added to and disclosed together with the other depreciation and interest paid of the entity.
127 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
15. Liabilities relating to conditional grants
Unspent conditional grants and receipts comprises of:
Unspent conditional grants and receipts Government Grants and Subsidies 7,364,983 6,671,473
See Appendix F for reconciliation of grants from National/ Provincial Government.
16. Liabilities
Reconciliation of liabilities - 2011
Opening Additions Reversed Change in Total Balance during the year discount factor Medical Contribution 104,755,296 3,511,000 9,274,000 4,575,322 122,115,618 Other provisions 3,487,548 172,788 - - 3,660,336 108,242,844 3,683,788 9,274,000 4,575,322 125,775,954
Reconciliation of liabilities - 2010
Opening Additions Reversed Change in Reduction due Total Balance during the year discount factor to re- measurement o r settlement without cost to entity Medical Contribution 92,434,945 3,046,000 8,207,000 4,355,530 (3,288,179) 104,755,296 Other provisions 3,703,195 (148,929) - - (66,718) 3,487,548 96,138,140 2,897,071 8,207,000 4,355,530 (3,354,897) 108,242,844
Non-current liabilities 111,903,954 96,033,844 Current liabilities 13,872,000 12,209,000 125,775,954 108,242,844
16.1 Medical aid liability
Reconciliation of net liability recognised in the Statement of Financial Position: Opening balance 90,883,296 80,225,945 Interest paid to Future Medical Aid Liability 9,274,000 8,207,000 Actuarial Gain - 4,355,530 100,157,296 92,788,475 Expected Employer Benefit Payments - (3,288,179) 100,157,296 89,500,296
Reconciliation of Assets and Liabilities recognised in the Statement of Financial Position Opening balance 90,883,296 80,225,945 Actuarial Gain/ loss 4,575,322 4,355,530 Interest paid on Future Medical Aid Liability 9,274,000 8,207,000 Expected Employer Benefit Payments - (3,288,179) 104,732,618 89,500,296 16.2 Valuation Methodology and Assumptions
16.2.1 Methodology
Growing, Sharing, Delivering & Innovating Together 128 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
16. Liabilities (continued)
Liabilities are valued using discounted cash flow techniques. Using a set of Actuarial assumptions, future cashflows are projected and discounted back to the Valuation Date, allowing for future investment returns and the probability of each cashflow occurring.
This methodology allows for the probability of and benefit payable in respect of different types of exit from active employment e.g. Withdrawal, Death, Retirement.
We assume that benefit entitlement accrues uniformly over each employee’s total service. The accrued liability is calculated as the ratio of the past service to total service for each employee.
The method of valuing the PRMA liabilities of the Municipality is consistent with the previous valuation.
We have not explicitly allowed for the impact of HIV/AIDS on projected future healthcare costs. This could be a source of significant strain over the short to medium term future, leading to higher Medical Aid Inflation than was allowed for.
It was implicitly assumed that all Members would stay on the same Medical Aid Scheme and chosen option in future. We have also not allowed for any significant shift in the demographic profiles of the various Medical Aid Schemes e.g. the impact of an ageing population.
16.2.2 Assumptions
In order to project the liability, it was necessary to make a number of assumptions concerning future experience.
Assumptions should not be assessed in isolation, but rather in relation to each other. The difference between the financial assumptions drives the results of the Valuation.
The set of assumptions used in this Valuation is largely similar to that used in the Previous Valuation. Differences have been highlighted below.
Financial Assumptions
The main financial assumptions are as follows: Medical Aid inflation rate 7.5 % Investment return 8.5 %
Accounting Standard AC, 116, Employee Benefits defines the determination of the Investment Return assumption to be used as the rate that can
“be determined by reference to Market Yields at the Statement of Financial Position Date on high quality Corporate Bonds. In countries where there is no deep market in such bonds, the market yields (at the Statement of Financial Position Date) on Government Bonds should be used. The currency and term of the Corporate Bonds or Government Bonds should be consistent with the currency and estimated term of the Post-Employment Benefit obligations.”
Our investment return assumption was based on the current yields of long-term Government bonds plus a risk premium as a proxy for the yield on high quality Corporate Bonds.
Medical Aid Inflation was based on an assumed long-term rate of consumer inflation of 6% p.a. plus a margin of 1.5% p.a.
The Real Rate of Return (Investment Return less Medical Aid Inflation) is thus 1% p.a.
Mortality Rates
Mortality for Pre-Retirement benefits has been based on the SA 56-62 mortality table rated down by three years for Females.
Mortality for Post-Retirement benefits has been based on the PA (90) ultimate mortality table.
Withdrawal rates from Employment were allowed for using the following rates:
129 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
16. Liabilities (continued)
Withdrawal Rate Males Females 20 16.00% 24.00 % 25 12.00% 18.00 % 30 10.00% 15.00 % 35 8.00% 10.00 % 40 6.00% 6.00 % 45 4.00% 4.00 % 50 2.00% 2.00 % 55+ -%% -
Ill- Health Retirement Rates Males Females 25 0.00% 0,00% 30 0,02% 0,02% 35 0,08% 0,12% 40 0,21% 0,22% 45 0,38% 0,32% 50 0,82% 0,50% 55 1,96% 1,02% 59 3,00% 1,50% 64 4,30% 2,50%
Early Retirement Rates Males Females 55 2.00% 2.00 % 56 1.00% 1.00 % 57 1.00% 1.00 % 58 1.00% 1.00 % 59 2.00% 2.00 % 60 2.00% 2.00 % 61 2.00% 2.00 % 62 3.00% 3.00 % 63 4.00% 4.00 % 64 5.00% 5.00 %
Family and General Assumptions
It was assumed that all Employees currently married will be married at the time of their exit from Employment. It was assumed that 90% of current single Male Employees and 50% of current single Female Employees would be married at the time of their exit from Employment.
We assumed that husbands are on average 4 years older than their wives.
After Retirement the actual number of qualifying children was taken into account up to a maximum of three. It was assumed that Child Dependant status ceases at age 25.
An increase in Medical Aid premiums was allowed for to reflect the Valuation Date being set midway through a Calendar Year.
16.3 Pension Obligation
Opening Balance 3,487,548 3,703,195 Movements for the year 172,788 (215,647) 3,833,124 3,487,548
Actuarial Methodology
Growing, Sharing, Delivering & Innovating Together 130 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
16. Liabilities (continued)
Liabilities are valued using discounted cash flow techniques. Using a set of Actuarial assumptions, future cashflows are projected and discounted back to the Valuation Date, allowing for future investment returns and the probability of each cashflow occurring.
Ex-Gratia Pensioners
(i) Ex-Gratia Pensions are paid to certain Employees, who fo r historic reasons were not allowed to join the Cape Joint Pension Fund prior to 31 May 1990.
(ii) Employees receive the lump sum equivalent of the following pension:Salary at Retirement/Death * Years Service prior to 31 May 1990 / 60.
(iii) This benefit is payable on Retirement or Death in Service.
(iv) As at the Valuation Date, there were 27 Male Employees who qualified for this Ex-Gratia benefit. The Municipality’s liability towards them was R2.479 million as at the Valuation Date.
(v) There were 30 Male Employees present at the Previous Valuation Date; the liability at that time was R2.499 million.
(vi) These benefits were valued as future pension benefits
Gratuity Beneficiaries
(i) Gratuity benefits are paid to certain Employees, who for historic reasons were not allowed to join a pension fund prior to 31 December 1989.
(ii) They are paid a lump-sum based on the following formu la: 10% * Annual Salary at 31 December 1989 * Full years Service prior to 31 December 1989.
(iii) We have been supplied with information for 18 employees as at 30 June 2010 who are entitled to receive this benefit. We have calculated a liability of R 0.026 million in respect of these employees.
(iv) In the 2009 Valuation Report there were 21 employees entitled to this benefit; the liability was R 0.032 million as at that date.
Spouses’ Pensions
(i) The Municipality is paying monthl y pension benefits to 14 surviving spouses of employees who passed away while in active service or pensioners who passed away after retirement. This benefit was also paid to Mr LJ Kriel who was a pensioner in his own right, he has recently passed away.
(ii) As at the Valuation Date, the Municipality had a liability of R0.090 million in respect of these benefit payments
(iii) As at the Previous Va luation Date, there were 18 of such beneficiaries with liability of R 0.097 million. The benefit was increased by only 2% in 2010 and 4 beneficiaries died during the 2010 Financial Year, leading to the reduction in liability.
(iv) These benefits were valued as pension benefits in payment.
Payments to Exited Employees
(i) The Municipality was paying monthly benefits to 5 former employees. These payments are to continue until each former employee’s normal retirement date. No reversionary pensions are payable to surviving spouses of former employees on death before normal retirement date.
(ii) As at the Valuation Date, the Municipality had a liability of R0.960 million in respect of these benefits.
(iii) As at the previous va luation date, there were 7 such beneficiaries with a liability of R1.074 million. The benefit was increased by only 2% in 2010 and a beneficiary died during the 2010 financial year (a second beneficiary reached normal retirement age), reducing the liability.
131 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
16. Liabilities (continued)
(iv) These benefits were valued assuming salary increases.
Assumptions:
The main actuarial assumptions are set out below. These are the same as the previous valuation.
Financial Assumptions:
Excess of investment return over salary escalation prior to retirement 2% Excess of investment return over pension increases after retirement 6%
Mortality:
Pre-Retirement SA 5662 ultimate. Rated down 3 years for Females. Post-Retirement PA(90) ultimate
Withdrawals
This assumption applies to the valuation of Ex-Gratia benefits only.
Age Rate Rate 20 16 16 25 12 12 30 10 10 35 88 40 66 45 44 50 22 55+ 00
Normal Retirement Age:
Ex-Gratia benefitsEarliest of age 65 or age after 55 when Employee has 35 years of service Exited Employees65 years
17. Trade and other payables from exchange transaction
Payments received in advanced 127,570 114,807 Retention 1,759,835 2,217,180 Accrued leave pay 8,473,044 5,987,525 Accrued bonus 3,270,096 5,187,558 Task Back Pay - 434,049 Accrued salary expenses 321,594 41,746 Deposits received 1,497,550 1,003,495 Other creditors *(See footnote) 23,093,483 13,150,247 38,543,172 28,136,607
Growing, Sharing, Delivering & Innovating Together 132 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
17. Trade and other payables from exchange transaction (continued)
Other creditors Suspense vote conditional grant 2,553,032 3,793,542 General Creditors 8,706,580 5,984,715 Suspense: Foreign exchange transactions - 119,000 WCA 376,042 440,215 Unclaimed funds 474,089 474,089 Performance Bonus 737,650 528,871 Lanquedoc capital 110,550 110,550 Hermon housing 76,166 94,512 Roads Agency 4,195,410 - Sundry payments 2,503,831 - Pension Fund Shortfall 2,643,030 - VAT creditor 626,079 - Other creditors 91,024 58,978 23,093,483 11,604,472
18. VAT payable
VAT is payable on the cash basis. Only once payment is received from debtors is VAT paid over to SARS.
19. Financial liabilities by category
The accounting policies for financial instruments have been applied to the line items below:
2011
Financial Total liabilities at amortised cost Other financial liabilities obligations 136,829 136,829 Trade and other payables from exchange transactions 38,543,172 38,543,172 38,680,001 38,680,001
2010
Financial Total liabilities at amortised cost Other financial liabilities obligations 156,267 156,267 Trade and other payables from exchange transactions 28,136,607 28,136,607 28,292,874 28,292,874
20. Revenue
Property rates 442,637 395,666 Property rates – Penalties imposed and collection charges 50,171 19,774 Service charges 1,446,109 823,955 Rental of facilities & equipment 117,458 105,071 Interest received – trading 2,313 32,752 Income from agency services 6,589,219 4,882,757 Government grants & subsidies 285,165,656 263,920,236 293,813,563 270,180,211
133 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
20. Revenue (continued)
The amount included in revenue arising from exchanges of goods or services are as follows: Service charges 1,446,109 823,955 Rental of facilities & equipment 117,458 105,071 Interest received – trading 2,313 32,752 Income from agency services 6,589,219 4,882,757 8,155,099 5,844,535
The amount included in revenue arising from non-exchange transactions is as follows: Taxation revenue Property rates 442,637 395,666 Property rates – Penalties imposed and collection charges 50,171 19,774 Transfer revenue Grants and Subsidies 285,165,656 263,920,236 285,658,464 264,335,676
21. Property Rates
Rates received
Residential 442,637 395,666 442,637 395,666 Property rates - penalties imposed and collection charges 50,171 19,774 492,808 415,440
Valuations on land and buildings are performed every four years. The last valuation came into effect on 1 July 2006. Supplementary valuations are processed on an annual basis to take into account changes in the individual property values due to alterations
22. Service charges
Building Plan and Scrutiny Fees 12,110 753 Fire Fighting Services 1,433,999 823,202 1,446,109 823,955
40
Growing, Sharing, Delivering & Innovating Together 134 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
23. Government grants and subsidies
Equitable share 12,717,000 8,520,000 Imvusa Trading - 627,324 RSC Replacement Grant 182,783,243 177,467,076 MIG Grant 763,000 6,681,000 Perception Survey 91,257 1,793,176 Masimbambane Project - 640,647 Municipal Systems Improvement Grant 538,565 714,960 Financial Management Grant 1,230,625 1,628,398 Bulk Infrastructure Grant 1,222,282 484,343 Working For Water 9,264,756 8,340,937 Capital Grants 615,441 - Sandhills - Toilet Hire 481,467 421,386 Training of Housing Officials - 20,400 Consumer Housing Education 21,100 33,356 Water and Sanitation Master Plan 54,264 161,000 Income Agency Roads 72,778,082 52,641,085 Fire (PAWC) 333,000 280,000 Environmental Planning Grant - 105,618 Bocma Donation 60,000 - Integrated Transport Plan 899,177 699,826 Contribution from Private Land Owners 7,490 2,492,741 Health Agency Income 184,862 166,963 Management Support Programme 21,052 - Madiba House 445,479 - Environmental Planning 615,516 - Human Rights Education 37,998 - 285,165,656 263,920,236
24. Other income
Seta Refunds 302,272 403,229 Exibition Income 37,281 51,380 Admin: Work for Water 695,733 681,501 Income: City of Cape Town - 592,800 Shop Steward Refund - 4,084 RSC Levies Recovered 55 1,781 Emergency Kit - 16,000 Bad Debt Recovered - 41,148 Health Debt Recovered - 25,041 PMS Income 62,700 62,700 Miscellaneous Roads Income 69,662 1,627,148 Miscellaneous Income 1,374,122 1,618,964 2,541,825 5,125,776
135 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
25. General expenses
Accounting fees 86,442 75,418 Advertising 762,384 788,376 Assessment rates & municipal charges 1,474 32,713 Auditors remuneration 2,349,193 2,102,017 Bank charges 90,531 83,315 Cleaning 329,715 353,660 Study Bursary Fund 865,030 1,003,127 Fire Breaks 413,389 487,200 Consulting and professional fees 4,593,858 1,224,880 Consumables 420,286 366,283 Debt collection - 5,382 Voluntary Fire Service 913,264 1,122,093 Maintenance Contracts 292,867 336,648 Entertainment 299,068 225,311 Site expenditure 108,917 63,742 Flowers 2,840 8,909 Data Storage - 20,650 Insurance 1,218,158 941,227 Seta Levy 738,342 675,031 Conferences and seminars 344,932 277,010 Public Participation 320,940 311,703 IT expenses 107,497 652,134 Equipment General Items 320,869 287,367 Rentals 1,264,866 1,474,573 Levies 26,909 24,733 Magazines, books and periodicals 6,810 7,029 Medical expenses 6,445 2,835 Motor vehicle expenses 3,234,123 3,164,104 Refreshments and Tea 259,445 275,770 Fuel and oil 7,344,079 6,792,876 Placement fees 12,136 9,533 Postage and courier 38,680 50,048 Printing and stationery 1,684,367 1,594,649 Communications 1,801,611 1,945,622 Protective clothing 73,356 88,074 Projects 75,961,040 88,685,172 Lisence Fees - Radio 54,130 23,181 Security (Guarding of municipal property) 527,925 465,279 Software expenses 849,700 264,460 Subscriptions and membership fees 978,907 1,108,623 Telephone and fax 3,516,069 3,464,481 Transport and freight 1,512,542 1,675,224 Training 3,169,532 3,841,796 Travel - local 2,175,615 3,180,299 Exhibitions and Event 862,435 1,378,235 Electricity 1,565,419 1,176,638 Sewerage and waste disposal 157,227 166,163 Water 163,210 126,634 Refuse 50,212 44,007 Uniforms 950,105 1,156,873 Tourism development 265,915 176,109 Co- operational agreements 12,939 34,656 Stock Write-Off 43,430 68,082 Workshop Cost 4,201,661 4,248,937 Audit and Risk Support Services 199,511 322,524 Fire fighting special events 4,798,082 5,428,548 Workshops and Meetings 119,996 139,949 Chemicals 203,872 227,019 Convention bureau 4,575,322 4,355,530 Other expenses (See footnote)* 3,915,133 5,618,856
Growing, Sharing, Delivering & Innovating Together 136 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
25. General expenses (continued) Property only 1,014,969 987,054 142,203,371 155,238,371
See Appendix L for detail on grants made to municipalities.
* Items included in other expenses Contingencies - 5,898 Emergency Aid 203,403 479,017 Contribution Academy of Learning - 154,533 Herbicides 58,824 25,892 NGO Services 199,439 923,000 Payment in Advance - 662,367 Public Functions 250,337 206,951 Relocation Cost 225,338 213,731 Translation 338,970 286,062 Water/ food samples testing 837,601 757,606 Year end function 157,899 187,580 Video/ DVD 223,620 276,502 Women's Day Celebrations 156,611 188,076 Disciplinary Hearings - 263,107 Planning: Water and Sanitation 195,600 - * Other expenses less than R 100 000 1,058,562 988,534 3,906,204 5,618,856
26. Employee related costs
Basic 55,712,695 54,608,243 Bonus 5,012,454 4,907,032 Medical aid - company contributions 5,681,247 2,124,674 UIF 439,559 465,119 WCA 621,916 601,194 Leave pay provision charge 2,141,542 506,550 Other short term costs 2,478,236 2,097,051 Post-employment benefits - Pension - Defined contribution plan 9,288,447 8,747,467 Travel, motor car, accommodation, subsistence and other allowances 9,074,580 9,253,328 Overtime payments 2,214,850 1,578,595 Long-service awards 3,000 1,000 Medical aid current service cost 3,511,000 3,046,000 Housing benefits and allowances 1,606,067 1,987,310 Other allowances 4,338,499 3,399,431 Student employment 73,987 - Group schemes 903,599 817,859 Telephone 77,706 79,945 Performance bonus 737,649 479,874 Termination benefits - 1,626,487 103,917,033 96,327,159
137 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
26. Employee related costs (continued)
Remuneration of Municipal Manager - M. Mgajo
Annual Remuneration 811,416 756,323 Car Allowance 65,000 65,000 Performance Bonuses 134,956 98,683 Contributions to UIF, Medical and Pension Funds 194,563 179,847 Other 46,396 17,124 1,252,331 1,116,977
Remuneration of Chief Financial Officer - J.G. Marais
Annual Remuneration 696,749 606,630 Car Allowance 24,000 78,000 Performance Bonuses 97,170 75,828 Contributions to UIF, Medical and Pension Funds 184,710 161,824 Other 39,682 14,370 1,042,311 936,652
Remuneration of Executive Director (Corporate and Strategic Services) - G. Qounde
Performance Bonuses - 51,544 Contributions to UIF, Medical and Pension Funds - 125 Other - 515 - 52,184
Remuneration of Executive Director (Corporate and Strategic Services) - C. Mvalo
Annual Remuneration 541,427 - Car Allowance 80,000 - Contributions to UIF, Medical and Pension Funds 122,275 - Other 19,401 - 763,103 -
Remuneration of Executive Director (Community and Developmental Services) - W.Z.C. Mathibela
Annual Remuneration 792,227 756,052 Car Allowance 84,000 62,000 Performance Bonuses 70,809 59,808 Contributions to UIF, Medical and Pension Funds 16,497 16,497 Other 53,198 37,903 1,016,731 932,260
Remuneration of Executive Director (Rural and Social Development) - C.V. Schroeder
Annual Remuneration 588,851 540,065 Car Allowance 166,000 166,000 Performance Bonuses 95,801 29,904 Contributions to UIF, Medical and Pension Funds 137,873 128,484 Other 67,944 92,161 1,056,469 956,614
Growing, Sharing, Delivering & Innovating Together 138 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
26. Employee related costs (continued)
Remuneration of Executive Director (Regional Development and Planning) - K.S.C. Le Keur
Annual Remuneration 682,198 633,517 Car Allowance 76,000 76,000 Performance Bonuses 108,297 74,760 Contributions to UIF, Medical and Pension Funds 134,526 125,131 Other 71,900 37,716 1,072,921 947,124
Remuneration of executive director (Enginering and Infrastructure Services) - A.N. van Taak
Annual Remuneration 760,443 732,905 Car Allowance 96,000 72,000 Performance Bonuses 105,620 75,828 Contributions to UIF, Medical and Pension Funds 48,467 41,549 Other 75,540 65,049 1,086,070 987,331
27. Remuneration of councillors
Executive Major 437,732 513,967 Deputy Executive Mayor 559,674 536,280 Mayoral Committee Members 2,075,464 1,889,230 Speaker 394,462 384,452 Councillors 1,992,320 1,891,121 Councillors’ pension contribution 376,896 385,462 Travelling Expenses 1,153,597 1,115,079 Allowances: Other 320,051 347,384 7,310,196 7,062,975
In-kind benefits
The Mayor and the Deputy Mayor each have the use of separate Council owned vehicles for official duties.
The Executive Mayor, Deputy Executive Mayor, Speaker and Mayoral Committee Members are full-time councillors. Each is provided with an office and secretarial support at the cost of the Council.
As certified in the declaration by the municipal manager, salaries, allowances and benefits of Councillors as disclosed in this note are within the upper limits of the framework envisaged in Section 219 of the Constitution, read with the Remuneration of Public Officer Bearers Act and the Minister of Provincial and Local Government’s determination in accordance with this Act.
28. Investment revenue
Interest revenue Other Interest 25,334,704 30,556,854
29. Depreciation and amortisation
Property, plant and equipment 8,113,171 10,808,117
139 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
30. Finance costs
Interest paid on to Future Medical Aid Liability 9,274,000 8,207,000 Finance leases 22,937 31,191 Interest paid to funds 896,947 440,931 10,193,884 8,679,122
31. Auditors' remuneration
Fees 2,349,193 2,102,017
32. Cash generated from (used in) operations
Deficit (14,876,036) (12,906,962) Adjustments for: Depreciation and amortisation 8,113,171 10,808,117 Gain on sale of assets (259,644) (32,841) Loss on sale of Assets 457,631 - Finance costs - Finance leases (22,937) (31,191) Internal Transfers - (22,407,339) Office Accomodation 17,248,002 - Interest provision (5,485,759) - Impairment deficit - 32,756 Debt impairment 1,005,181 278,905 Movements in provisions 24,751,462 16,717,622 Transfers from creditors not on income statement (2,768,885) - Income from agency function (7,500,000) - Departmental Recoveries (7,047,791) - Transactions Reflected in Ledger: -- TCTA Advance pa yment (1,003,494) - TCTA Advance Received 1,492,550 - Retention Release 1,052,365 - Deposit (Petrol) 100,000 - Changes in working capital: Inventories (337,381) (110,792) Other Receivables 5,985,569 (3,553,457) Consumer debtors 406,303 (1,215,175) Trade and other payables from exchange transaction 10,196,662 11,702,290 VAT 2,164,791 (1,194,490) Liabilities relating to conditional grants 693,510 (1,339,405) 34,365,270 (3,251,962)
Growing, Sharing, Delivering & Innovating Together 140 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
33. Short-term Investments
Invested as at 30 June 2011 at the following A1 banks as prescribed by Council's Investment Policy.
ABSA Opening balance 70,000,000 65,000,000 Current year Movements 20,000,000 5,000,000 90,000,000 70,000,000 FNB Opening balance 55,000,000 63,000,000 Current year Movements (25,000,000) (8,000,000) 30,000,000 55,000,000 INVESTEC Opening balance 57,000,000 80,000,000 Current year Movements 23,000,000 (23,000,000) 80,000,000 57,000,000 NEDCOR Opening balance 80,000,000 50,000,000 Current year Movements 3,000,000 30,000,000 83,000,000 80,000,000 STANDARD BANK Opening Balance 62,000,000 75,000,000 Current year Movements 21,000,000 (13,000,000) 83,000,000 62,000,000
Total Short-term Investments (See note 10) 370,559,417 346,421,970 Bank/ Cash - Absa Bank balances 7,614,566 25,246,731 378,173,983 371,668,701
Future Obligations and Reserves linked to investments. Future Medical Aid 122,115,618 104,755,296 Capital replacement reserve 70,524,776 76,107,925 Government grant reserve 1,945,760 1,707,778 Unspent conditional grants and receipts 7,364,983 6,671,473 Accrued expenses 12,064,734 11,650,878 Retention 1,759,835 2,217,180 Other creditors 23,093,483 13,150,247 Working Capital 145,765,430 156,956,602 384,634,619 373,217,379
See Appendix H for detail on future commitments
141 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
34. Contingencies
Contingent Asset
Contingent liabilities
(i) Cape Joint Pension Fund - There may be a possibility that this fund is not 100% funded. The amount cannot be disclosed since it cannot be calculated from the information that is currently available from the fund.
(ii) Guarantees to Building Societies and Banks in respect of housing loans to 15,180 118,850 employees.
(iii) During December 2005 mountain fires caused extensive damage to various properties in the district. The fire started at approximately 15:24 on 25 December 2005 above “Groendal” informal settlement near Franschoek. The fire rapidly spread upslope in extreme weather conditions, (hot, dry and windy). Although the response was quick the fire was beyond reach by the time the resources arrived. The fire spread to inaccessible mountain terrain, fanned by strong, gusty winds. It spread towards Wemmershoek dam and Du Toitskloof. A number of fa rms, buildings, vineyards, orchards and plantations were threatened. Fire fighters battled under extremely difficult and dangerous conditions to save lives and property. On the 2 January 2006, it was necessary to close both the N1 toll road and the Du Toitskloof pass due to heavy smoke and fire in close proximity to the traffic. The fire was brought under control and finally extinguished on the 5 January 2006. The area destroyed by the fire was ±12 380 hectares which consists mainly of fynbos and damage to some orchards. No structural damage has been reported. It must be noted that Stellenbosch Municipality is the first defendant on this case. The plaintiff (Cape Nature) sued the first defendant (Stellenbosch Municipality) or second defendant (Cape Winelands District Municipality) for R 10 706 557. The matter is lying dormant and it appears that the plaintiff has lost interest. The attorneys of the plaintiff suggest that the matter be closed and the Municipality’s former insurance brokers, Alexander Forbes, indicated that they will play it cautious and keep the claim open until December 2011. The access amount on this claim amounts to R 5 000.00. Therefore council will be liable for only the amount of R 5 000.00 should the plaintiff be successful.
(iv) Application for an interdictory and declaratory relief against Cape Winelands District Municipality together with Stellenbosch Municipality for alleged non- compliance with statutory and constitutional obligations in respect of its duty to progressively realise the rights of access to adequate housing, particular to persons that are evicted and left without any alternative accommodation.Currently the parties are in the process of exchanging pleadings and the matter is set down for 8 November 2011
If unsuccessful in opposing the application the cost will approximately be R 250 000.00 and if successful it is unlikely that the cost will be recovered from the plaintiff
(v) Delictual claim for damages in the amount of R 451 000. Currently pleadings have been closed and the trial date has not been set yet.
If unsuccessful the cost will R 650 000.00 and if successful it is unlikely the cost will be recovered from the plaintiff.
35. Related parties
Only the known related parties were disclosed. An forensic investigation is currently being conducted, therefore the related parties might change. See Appendix G and Appendix I (Study Bursaries).
36. Restatement of corresponding figures
Certain corresponding figures as at 30 June 2010 have been restated as a result of an error discovered in the financial statements of the municipality as at 30 June 2010 as well as for 30 June 2011.
A correction was made. The amount of R 1 003 495 (Working for Water Advance) was moved from Government Grant and Subsidies to Deposits Received. This movement has no affect on the liabilities or profit of the Municipality.
Growing, Sharing, Delivering & Innovating Together 142 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
37. Risk management
Interest rate risk
The Council has no outstanding loans as at 30 June 2011. The increases in interest rates will therefore have no effect on the liquidity of Council. The average interest rate on investments was 6.30%.
Credit risk
Credit Risk primarily relates to cash investments. Council deposits cash surpluses with financial institutions of high quality and standing. A cash management and investment policy has been approved.
In terms of the MFMA Act 56 of 2003 the granting of credit ( Loans ) are prohibited.
Foreign exchange risk
Foreign currency risk is deemed to be minimal as very few international transactions are conducted.
Reliance on national government for funds ( income)
With the phasing out of the Regional Services Levies on 30 June 2006 the Cape Winelands will be dependant on the National and Provincial Governments for approximately 80% of its revenue. This created a lot of uncertainties regarding the future of District Municipalities.
Political risk
The political landscape of the Western Cape has been quite stable and there is respect for the rule of law.
Disclosure on collateral
Refer to note 33.
38. Fruitless and wasteful expenditure
During the 2009/2010 financial year the following items were identified which may be fruitless and wasteful expenditure.
During November a payment was made to Worcester Wendyhuise, Suggetstraat 82 Worcester, in the amount of R11 900 to supply a Wendy house to Sandy’s Wash & Cleaning Services. The Wendy house was never delivered. A New Wendy house was then purchased at Poplar Trading for the amount of R11 700 and delivered. This matter was brought to our attention by council’s internal auditors and has been reported to council’s insurance brokers.
39. Other Income
Seta Refunds 302,272 403,229 Exibition Income 37,281 51,380 Admin: Work for Water 695,733 681,501 Income: City of Cape Town - 592,800 Shop Steward Refund - 4,084 RSC Levies Recovered 55 1,781 Emergency Kit - 16,000 Bad Debt Recovered - 41,148 Health Debt Recovered - 25,041 PMS Income 62,700 62,700 Miscellaneous Roads Income 69,662 1,627,148 Miscellaneous Income 1,374,122 1,618,964 2,541,825 5,125,776
49
143 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
40. Fair Value
Financial instruments which includes short-term trade receivables and payables are stated at cost excluding debt premiums and discounts which is also equal to their fair value.
Although there are no specific investments linked to the Future Medical Aid Liability Fund, it is cash backed.
Councils surplus funds are not managed by external asset management service providers.
41. Pension Fund Liability
Ex- Gratia Pensions are paid to certain Employees, who for historic reasons were not allowed to join the Cape Joint Pension Fund prior to 31 May 1990
Employees receive the lump sum equivalent of the following pension: Salary at Retirement/Death* Years Service prior t 31 May 1990 / 60
This benefit is payable on Retiremnt or Death in Service.
As at the Valuation Date, there were 27 Male Employees who qualified for this Ex- Gratia benefit. The Municiplaity's liability towards them was R2.665 million as at the Valuation Date, using 5% assumed salary increase for 2011.
There were the same 27 Male Employees present at the Previous Valuation Date; the liability at that time was R2.479 million.
These benefits were valued as future Pension benefits.
Gratuity benefits are paid to certain Employees, who wa for historic reasons were not allowed to join a pension fund prior to 31 December 1989
They are paid a lump- sum based on the following formula: 10% 8 Annual Salary at 31 December 1989 * Full years Service prior to 31 December 1989
We have supplied with information for 18 Employees as at the Valuatiom Date who were entitled to receive this benefit. We have calculated a liability of R 0.026 million in respect of these Employees.
In the previos Valuation Report there were the same 18 Employees entitled to this benefit; liability was also R 0.026 million as at that date.
The Municipality is paying monthly Pension benefits to 10 surviving spouses of Employees who passed away while in active service or Pensioners who passed away after retirement.
As at the Valuation Date, the Municipality had a liability of R 0.089 million in respect of theses benefit payments. This follows for an assumed invreace of 5% in 2011.
As at the Previous Valuation Date, there were 14 of such beneficiaries with liability of R 0.090 million.
These benefits were valued as Pension benefits in payment.
The Municipality was paying monthly benefits to 5 Former Employees. These payments are to continue until each Former Employee's Normal Retirement Date. No reversionary pensions are payable to surviving spouses of Former Employees on death before Normal Retirement Date.
As at Valuation Date, the MUniciplaity had a liabiliyt of R 0.881 million in respect of theses benefits. This allows for an assumed increase of 5% in 2011.
As at the Previous Valuation Date, the same 5 beneficiaries were present with a liability of R 0.960 million.
These benefits were valued assuming Salary increases.
Ex- Gratia 2,479,000 2,665,000 Gratuity 26,000 26,000
Growing, Sharing, Delivering & Innovating Together 144 CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
Spouses Pensions 90,000 89,000 Exited Employees 960,000 881,000 3,555,000 3,661,000
Financial Assumptions
Excess of investment return over salary escalation prior to Retirement 2% Excess of investment return over pension increases after Retirement 6%
Mortality
Pre- Retirement: SA 5662 ultimate. Rated down 3 years for Females Post- Retirement: PA (90) ultimate
Withdrawls
Age Rate 20 16% 25 12% 30 10% 35 8% 40 6% 45 4% 50 2% 55+ 0%
Normal Retirement Age
Ex- Gratia benefits: Earliest of age 65 or age after 55 when Employee has 35 years of service
Exited Employes: 65 years
42. Commitments
Future commitments 9,325,084 25,854,950
See Appendix H for detail on future commitments
43. Transfer of function
In terms of Notice No.1022 of 2008 (published in Government Gazette No. 31353 on 19 August 2008) read together with Provincial Gazette Extraordinary 6852 of 25 February 2011 the District Management Area (DMA) of the Cape Winelands District Municipality has been withdrawn.
Following consultation with the Auditor General, Management decided to enter into Service Level Agreements with the affected Municipalities to arrange for transfer of the relevant services, assets and liabilities as from 1 July 2011, and in doing so streamline the transfer process. The Ceres Air Field was however transferred on the 18th of May 2011 to Witzenberg Municipality, but Management decided not to remove the asset from its asset register, because although the property was transferred to Witzenberg Municipality, it has not yet been registered by the Deeds Office as the property of Witzenberg Municipality. According to the latest municipal valuation the value of the airfield amounts to R 37 000.
The transfer of the Ceres Air Field will be fully disclosed in the 2011/2012 Financial Year as part of the Discontinued Operations, in order for the Deed transfer to be completed and the property to be registered to Witzenberg Municipality.
145 Growing, Sharing, Delivering & Innovating Together CAPE WINELANDS DISTRICT MUNICIPALITY Annual Financial Statements for the year ended 30 June 2011 Notes to the Annual Financial Statements Figures in Rand 2011 2010
44. Prior period error
Reconciliation of prior period error relating to Depreciation Opening balance of accumulated depreciation - 62,009,353 Disclosed prior period - 10,808,117 Prior year error - (4,295,042) Disposal - (242,026) - 68,280,402
The financial system that Council uses were originally set up for GAMAP. Therefore during the Capitalisation of assets GAMAP parameters were used. Council also followed the principle of only capitalising assets above R10 000. During the 2009/2010 financial year the depreciation of all the assets below R10 000 were imported to the electronic asset register. During this process depreciation was calculated incorrectly because some of the assets were reclassified, the asset type of some assets were changed and some assets were transferred to other government departments. The SAMRAS service provider assisted Council in solving the problem with the asset register during the 2010/2011 financial year.
The comparitive amount has been restated as follows Corrections of depreciation - 4,295,042 Net effect on surplus/(deficit) for the year - 4,295,042
Growing, Sharing, Delivering & Innovating Together 146 A
in
MFM
with the
accordance
Other Costs
1
ying
Equip
Plant &
Value of
Property,
Carr
2011
30 June
Balance at
g the
period
written off
durin
Redeemed
g the
period
Received
durin
------
------
Schedule of external loans as at 30 June 201
2010
Rand Rand Rand Rand Rand Rand
30 June
Balance at
Y
ALIT
Redeemable
Loan
Number
Africa
1
CAPE WINELANDS DISTRICT MUNICIP June 201 Loan Stock Structured loans Funding facility Development Bank of South Bonds Other loans Lease liability Annuity loans Government loans external loans Total Appendix A 147 -
9,451
30,460
13,079
57,154 69,453
130,790 859,192
515,741 110,834 222,601
130,734 161,635 609,878
value
1,703,528 6,226,660 2,587,093
7,442,316
Carrying
19,777,982
13,526,012
-
-
(9,712)
(6,542)
(65,421)
(11,548) (99,463) (59,066)
(592,391)
(101,778) (261,232) (261,232) 333,435 (161,670) (562,168) 978,342 (167,046) (222,236)
Closing
Balance
(9,105,016)
(1,067,329) (2,309,109) (1,279,343)
(3,366,708)
(14,276,582)
-
- - -
------(32,341,601) 52,870,007 - - - - -
1
loss
Impairment
(654)
(844)
(1,339)
(6,540)
(6,128)
(6,327)
(78,991)
(84,154) (49,739) (27,737) (12,022)
(278,817) (115,145) (148,206) (148,206) (743,215)
(482,979)
Depreciation
-
- - - (1,155,762)
------(2,953,724) - - - - -
Accumulated depreciation
Disposals
----
----
g
(8,373)
(5,888)
(58,881)
(10,704) (87,441) (52,739)
(513,400) (788,512) (101,778) (251,579)(251,579) 138,553 138,553 (155,542) (512,429) (167,046) (194,499)
(7,949,254)
(2,193,964) (1,195,189)
(2,883,729)
(13,533,367) (29,387,877)
Balance
Openin
19,621 40,172
20,999
196,211
859,192
328,681 101,778 483,833 594,667 168,916 218,824 189,800 110,834 832,114
g Balance
4,896,202 1,795,084 2,295,919 7,293,989
28,882,998
21,718,898 16,892,720
Closin
- 85,211,608
-
(153,920) (153,920)
Analysis of property, plant and equipment as at 30 June 201
Y
Disposals
--
--
--
--
--
--
--
--
--
--
--
--
ALIT
9,452 - 1,540,510
Cost/Revaluation
185,770
270,147
270,147
185,770
Additions
11,547 9,452 -
19,621 - -
40,172 - -
110,834 - -
832,114 - -
451,983
859,192
168,916
562,817
218,824
101,778
328,681
189,800
1,531,058
7,293,989
4,896,202
Rand Rand Rand Rand Rand Rand Rand Rand Rand Rand
28,882,998
84,941,461
Balance
Opening
gent Services
A
1
orkers 1,795,084
Assets
148
Office BuildingOffice Outdoor Sports Laboratories Parks 196,211 - - Public Conveniences
Clinics/ Hospitals Informal Housing Hostel W Community Centre 2,295,919 BuildingsHousing Schemes 21,448,751 Cellphones: CAPE WINELANDS DISTRICT MUNICIP June 201 Buildings Depots 16,892,720 Workshops/ Infrastructure Power Stations Leased Care Centres MeterWater Airports/ Radio Cellphones Appendix B Paving Car Parks 97
4,038 3,421
6,728
5,712
15,419
23,926
313,605 452,387 506,588 114,341 312,178
229,536 283,182 100,854 185,695
277,655
1,934,321
2,338,764 2,553,789 4,212,388
70,854,331 70,854,331
value
Carrying
-
(94)
(216)
(588)
(3,638)
(36,349)
(65,284) (11,160) (25,386)
(546,037) (335,496) (162,130) (941,630) (105,501) (625,208)
(627,407)
(329,469) (622,908)
(1,115,982) (2,955,546) 2,338,764
(2,955,546) (9,089,528) (1,059,813)
Closing
Balance
------
1
loss
Impairment
(56)
(47)
(189)
(4,584) (1,271)
(5,861) (6,278) (3,651)
(68,660)
(39,572) (67,967)
(55,603) (31,362) (17,657)
(40,944)
(176,179)
(222,332) (281,785)
(1,940,096)
Depreciation
-
------
Accumulated depreciation
29
328
8,097
1,871
36,036
37,822
18,498
Disposals
------
(47)
(160)
(399)
g
(2,367)
(4,882)
(65,929) (36,349)
(33,922)
(21,735)
(274,933) (369,858)
(157,575) (719,298) (593,277) (834,525) (607,122) (609,626) (323,608)
(2,955,546)
(2,955,546) (8,267,766) 1,118,334 (1,037,367)
Balance
Openin
313
7,059
6,300
40,387
32,114
35,086
649,101 219,842 177,549
348,466 937,386 808,603 856,943 430,323
g Balance
1,052,625
1,394,017 3,050,303 5,294,310
2,553,883 1,337,468
13,301,916 70,854,331
Closin
(32)
(8,998)
(1,008)
(2,076)
(52,221)
(44,195)
(22,670)
(135,889)
(1,227,976)
Analysis of property, plant and equipment as at 30 June 201
Disposals
--
- - 70,854,331
--
--
--
- - 5,294,310
--
-
Cost/Revaluation
70,000 -
64,511 -
62,328
60,743
139,566
150,477
147,929
309,166
164,062
2,078,382
Additions
313 - -
7,059 - -
6,300 - -
32,114 - -
35,086 - -
748,351
518,533
839,130
753,209 365,812
348,466
219,842
177,581
2,380,606
1,052,625 2,887,249 1,324,017
5,294,310
Rand Rand Rand Rand Rand Rand Rand Rand Rand Rand
70,854,331 12,451,510
70,854,331
Balance
Opening
Y
ALIT
Apparatus
1
CAPE WINELANDS DISTRICT June 201 MUNICIP Appendix B
Laboratory Equipment Equipment/ Fencing Electrical Equipment Fire Equipment Buildings 5,294,310 Drill Concrete Telecommunication Generator Heritage assets Land Other assets Bulk Containers Computer Hardware ConveyersRadio Equipment 40,387 - - Cabinets/ Cupboards Other Land Access Control Audio Equipment Agency Services Canopy Air Conditioner Chairs 1,299,395 149 Cleaner -Steam -
9,956
19,882 49,162
(14,028)
608,416
302,221 242,358
148,195 367,807 271,927 978,342 694,507 333,435
1,014,225
2,338,764
1,363,046 7,530,520
3,004,129
52,870,007 70,854,331 40,205,627
13,057,444
value
Carrying
-
-
(34,657) (12,959) (16,918)
(73,448)
(25,791)
(113,878)
(143,680) (100,573) (562,168) (261,232)
(3,112,584) (1,368,468)
(1,068,075)
(1,041,636) (2,955,546)
(1,408,601) (5,757,575)
(2,996,603) (4,813,468)
(32,341,601)
(37,792,738)
Closing
Balance
------(73,913,285) 167,580,506 - - - (37,792,738) 40,205,627 - -
- -
- -
- - -
1
loss
Impairment
(7,212) (3,312)
(4,978)
(59,220)
(14,442) (35,983) (33,524) (13,529) (49,739)
(85,974)
(366,107) (258,257)
(148,206)
(226,653) (251,601)
(151,174) (485,439)
Depreciation
-
------(2,953,724) -
---
-
---
-
Accumulated depreciation
917
5,714
3,912
30,643
Disposals
----
----
g
(5,747)
(54,658)
(67,049) (21,128)
(13,606)
(73,448)
(20,813)
(129,238)
(512,429) (959,574) (251,579) 138,553
(3,100,775) 354,298
(1,115,925) (1,062,735)
(2,955,546)
(1,181,948) (6,015,691) 509,717
(3,060,948) 215,519 (4,328,946)
(68,280,405) 2,480,288 (8,113,168) (35,172,974) 2,341,735 (4,961,499) (29,387,877)
(35,172,974) 2,341,735 (4,961,499)
Balance
Openin
83,819
36,800
73,448
35,747
(14,028)
416,099
372,500 161,154 511,487
594,667
g Balance
3,721,000 2,771,647
2,382,693 1,310,433 1,540,510 1,736,143
5,294,310
6,000,732
77,998,365 85,211,608 70,854,331 77,998,365 13,288,095
17,870,912
Closin
-
-
-
(7,641)
(4,355)
(2,750)
(34,098)
(393,109)
(153,920)
(972,121)
(431,031)
(3,494,090) 241,493,791 (3,340,170)
(3,340,170)
Analysis of property, plant and equipment as at 30 June 201
Disposals
--
--
-
--
-
--
9,452 -
Cost/Revaluation
80,762
58,066
270,147
174,634
555,748
306,942
598,057
185,770
6,384,361
5,918,992
5,918,992
Additions
35,747 - -
36,800 - -
42,350 118,804 -
73,448 - -
(14,028)
372,500
1,531,058
5,294,310
1,184,750
2,083,392
4,033,347
6,431,763
1,286,465
Rand Rand Rand Rand Rand Rand Rand Rand Rand Rand
75,419,543
75,419,543
13,511,828 748,388
Balance
238,603,520
Opening
Y
ALIT
1
CAPE WINELANDS DISTRICT June 201 MUNICIP Appendix B
Pumps 241,465 Office Machines Office Trailers 2,173,590 Water Purification Water Tools 53,392 30,427 - Emergency light Security Systems 511,487 - - General Plant Miscellaneous Desks Tables/ propertyTotal plant and in Progress Work Fire Hoses equipment Infrastructure Leased AssetsOther assets 562,817 BuildingsHeritage assets 84,941,461 Land 70,854,331
Vechicles Ambulances Compressors
Trucks and Bakkies Trucks TASK Fire Engines 17,873,662 150 15,580,667
15,580,667
value
Carrying
-
Closing
Balance
- (73,913,285) 183,161,173
1
loss
Impairment
Depreciation
Accumulated depreciation
Disposals
----
-----
g
(68,280,405) 2,480,288 (8,113,168)
Balance
Openin
g Balance
15,580,667
Closin
- 15,580,667 -
(3,494,090) 257,074,458
Analysis of property, plant and equipment as at 30 June 201
Disposals
Cost/Revaluation
5,842,234 5,842,234
12,226,595
Additions
9,738,433
Rand Rand Rand Rand Rand Rand Rand Rand Rand Rand
Balance
248,341,953
Opening
Y
ALIT
1
CAPE WINELANDS DISTRICT June 201 MUNICIP Appendix B
Work in ProgressWork Total 9,738,433 151 1
41,351
45,594
113,693 183,852 201,167 680,860
3,160,945 2,516,815
21,289,474
15,580,667
139,346,755
Carrying value
-
(7,395)
(293,152)
(182,453) (660,537) (210,428)
Closing
Balance
(1,241,912)
(1,164,906) (1,135,692)
(12,622,176) (56,394,634)
(7,395)
(18,594)
(43,405) (60,498) (23,223)
(122,015) (237,474)
(105,766)
Depreciation
Accumulated Depreciation
7,409
41,428 71,518 21,496 61,447
Disposals
---
--
(315,986) (610,040) (160,544) (194,614)
(1,131,625) 127,187
(1,165,855) (1,209,301) 179,375
(10,908,665) 154,353 (1,867,864) (52,583,775) 1,816,075 (5,626,934)
(68,280,405) 2,480,288(68,280,405) (8,113,168) (73,913,285) 2,480,288 183,161,173 (8,113,168) (73,913,285) 183,161,173
Opening Balance
52,989
334,503 861,704 296,146
4,402,857 2,727,243 1,348,758 1,816,552
15,580,667
33,911,650
195,741,389
Closing Balance
-
(5,830)
(44,435) (81,353) (23,880) (69,388)
Y
(139,412) (184,912) (130,175)
(215,238)
(2,599,466)
(3,494,089) 257,074,458 (3,494,089) 257,074,458
Disposals
ALIT
Segmental analysis of property, plant and equipment as at 30 June 201
Cost/Revaluation
1,753
21,139
11,148
13,300
25,445
206,667
371,244
2,287,710
5,842,234
3,387,136
Additions
12,226,595 12,226,595
- 58,819
377,185 929,757
294,581
Rand Rand Rand Rand Rand Rand Rand Rand Rand
4,521,130
1,406,998
Balance
2,486,174
Opening
31,808,852
248,341,952 248,341,952
194,953,719
Admin/Finance
1
Work in ProgressWork 9,738,433 Road Transport/Roads Environmental Planning and Protection/Pollution Control Development/Economic Public Safety Finance & Development/Plan Housing Other Appendix C Health 1,825,123 Comm. & Social CAPE WINELANDS DISTRICT MUNICIP June 201 Municipality Executive & Council/Mayor Total and Council 152 (Deficit)
(5,225,083) (5,873,023) (6,978,815)
(7,871,086)
(40,596,062)
(14,876,036) (28,285,498) (33,655,146) (20,269,933) (14,876,036) (31,124,670)
165,003,280
Surplus /
16
13
8,349,954
31,534,434
42,422,631
35,913,788
20,452,1
15,827,342
57,845,972
86,853,677
30,350,1
336,566,130
336,566,130
37,288 7,016,103
409,764
478,868
182,183
2,258,642
2,064,615
10,602,257
80,980,654
321,690,092
222,849,252
Actual Income Actual Expenditure
yor and Council
Admin/Finance
Transport
Development/Plan
Municipality Other charges
Executive & Council/Ma
)Road Transport/Roads
1
Y
(Deficit)
ALIT
(2,689,224)Environmental Protection/Pollution Control (2,917,71 (9,311,156)Other/Air
(35,094,104)Public Safety/Police 1,826,569
(15,780,046)Planning and Development/Economic (12,906,962) (12,906,962)Total 321,690,092 (37,326,633)Housing (39,123,895)Finance & (31,297,524)Health/Clinics (14,373,349)Comm. & Social/Libraries and archives
175,006,680
Surplus /
62,884,708
11,135,780
36,288,548
42,471,389
32,113,295
45,409,902
48,973,866
318,805,402 318,805,402
Segmental Statement of Financial Performance for the year ended
1,790 14,375,139
Prior Year to Date Year
51,380 9,362,536
10,193 15,790,239
815,771
8,446,556
1,194,444
3,347,494
59,966,997
11,647,233
305,898,440 305,898,440
220,416,582
Rand Rand Rand Rand Rand Rand
1
Actual Income Actual Expenditure
CAPE WINELANDS DISTRICT MUNICIP June 201 Appendix D
153 1
greater
.
ariances
.
. Rates was only raised
gnificant V
A detailed report can be supplied
the year ended 30 June 201
than 10% versus Budget
f. This means that less interest was
Explanation of Si
Not all the projects that was supposed to be
funded fom the surplus was finished or was even year. Budget is made according previous years year. in last three months of financial year started. province for helicopter hours in fire season. actual amount written of the budget to the Municiplaity received. raised.
for. it was not finished.
Various items. Various
Valuarion from actuaries was more than budget Valuarion
)An amount of R 988 400 was received from
Actual versus Budget(Revenue and Expenditure)
(7,637)
(50,171)Penalties not budgeted for
(134,704)
7,446,375
(1,285,110 (1,089,219)Province paid large amounts after the apporval of
24,330,668
63,726,320
- 34,478,789
117,458 30,642 Rental of roads quipment varies form year to
442,637
2011
2,541,825
1,446,110
6,589,219
Act. Bal. Variance
25,334,704
285,165,655
321,690,092
Current year
- 50,171
9,000 2,313 6,687 Debtors paid accounts on time of accounts was
148,100
2011
(443,100) (1,005,180) 562,080
budget
5,500,000
9,988,200
(7,071,800) (7,310,196)(7,890,730) 238,396 (10,193,884) 2,303,154
Adjusted
34,478,789
25,200,000
(10,977,800) (8,113,171) (2,864,629)Assets worth R5m was not capatalised, because
309,496,323
385,416,412
Current year
(103,722,886)(103,917,033) 194,147
t
0
Y
(trading)
t
ALIT
ges 161,000
y rates - penalties imposed and collection
y rates 435,000
Service char
Propert
charges
Revenue Expenses
Interest received -Investmen
Personnel
40,224 Remuneration of councillors 92,395 Debt impairmen
(34,629)Rental of facilities and equipment
556,855
584,696
(144,743)Income from agency services
(3,305,423)Other income (1,977,523)Government grants & subsidies
(38,876,000)Contribution from Surplus
(43,127,576)
t Variance
- 395,666
the year ended 30 June 2010
239,260
139,700
1 2010
8,431,200
5,027,500
Bud. Am
30,000,000
265,897,759
348,990,419
Prior # Year
) (9,812,226) (995,892)Depreciation
- 38,876,000
18
19,774 - 19,774 Propert 32,751 3,000 29,751 Interest received
105,071
823,956
395,666
(278,905) (371,300)
Rand Rand Rand Rand Rand Rand
1 2010
5,125,777
4,882,757
Act. Bal.
Actual versus Budget(Revenue and Expenditure) for
(7,062,976) (7,103,200) (8,679,124) (4,123,900) (4,555,224)Finance costs
30,556,855 154
(10,808,1 (96,327,156) (98,809,729) 2,482,573
263,920,236
305,862,843
Prior # Year
CAPE WINELANDS DISTRICT MUNICIP Appendix E(1) 1
greater
. There
. The projects
ariances
gnificant V
1 Financial year
the year ended 30 June 201
than 10% versus Budget
Explanation of Si
were savings in other items that are classified as in the 2010/201 general expenses. was rolled over to the next financial year maintence was received near the end of the collection debt from debtors. financial year and could not be spent in time.
Actual versus Budget(Revenue and Expenditure)
(79,082)Decrease in debtors led to less funds spend on
(249,904)
2011
Act. Bal. Variance
(2,383,386) 2,393,126 (2,643,030) 2,643,030
Current year
-
9,740 259,644
(3,200) (451,372) 448,172
2011
(300,000) (220,918)
budget 1,709,501 (14,876,036) 16,585,537
Adjusted
(94,696,768) (61,408,526) (33,288,242)Additional funds recieved for repairs and
Current year
(158,610,367)(141,562,462) (17,047,905)Not all the operating projects came of the ground (383,716,651)(334,182,742) (49,533,909)
s
Other revenue and costs Net surplus/ (deficit) for the year
General Expenses Repairs and maintenance - General
(18,715)Loss on sale of assets
1 (12,906,963)
t Variance
-
Y
the year ended 30 June 2010
1 2010
Bud. Am
Prior # Year
ALIT
- - - Collection costs
35,598 - 35,598 Gain or loss on disposal of assets and liabilitie
- - - Short fall on pension fund
(18,715)
1 2010
Act. Bal.
Actual versus Budget(Revenue and Expenditure) for
(40,392,038) (56,873,650) 16,481,612 (12,906,962)
35,598 - 35,598 9,740
Prior # Year
CAPE WINELANDS DISTRICT Appendix E(1) MUNICIP
(155,238,371)(171,896,413) 16,658,042 (318,805,403)(348,990,418) 30,185,015
155 1
. The Roads funds
.
%
1.
1/2012 financial year
gnificant variances from budget than greater 10
Explanation of si
Assets purchased cost less than budgeted for
Offices not completed within the financial year and therefore assets not Offices Assets will be purchased in 201 purchased for theses assets was received in March 201 Offices not completed within the financial year and therefore assets not Offices purchased
7 4
8
2
(8)
- -
18
32 32
32
Variance
Budget Analysis of Capital Expenditure as at 30 June 201
7,975
(26,252)
289,559
197,387
156,511
(414,453)
10 240,515
get Variance
Y
489,405
196,447
4,295,000
2,461,537
4,911,793
12,467,1
ALIT
Revised Bud
34,940 42,824 7,884
32,567 48,00026,252 15,433 -
13,879 20,350 6,471
332,894
4,005,441
2,264,150
5,326,246
Rand Rand Rand %
12,226,595
Additions
t
y
Admin/Finance
1
r
CAPE WINELANDS DISTRICT MUNICIP June 201 Municipality Appendix E(2) Executive & Council/Mayor and Planning and Development Council Health 188,472 Finance & Comm. & Social
Public Safet Environmental Protection/Pollution Wate Control Other/ Tourism 1,754 1,754 - Road Transpor 156 -
-
-
0
0
0
0
0
-0
-2 159
-81 109
-23 524 -43 914
-23 884
-30 362
-426 365
-231 475
-134 736
-293 375
-1 500 000
-1 300 523
-7 364 983
-1 442 559
-1 830 997
1
UNSPENT
30/06/201
-
-
-
-
2 516
7 490
60 000
37 998 21 100
91 257
72 248
21 053
54 264
254 812
763 000
115 904 115
383 327
538 565
899 177
333 000
232 189
6 340 806
1 230 625
1 222 282
1
2010/201
EXPENDITURE
-
-
- -
-
-
-
-
-
-
- -
-
-
-763 000
-333 000
-750 000
-258 315
-1 500 000
-7 034 315
-1 000 000
-1 430 000 -1 000 000
1
INCOME
2010/201
RECEIVED
-
-
-
-2 159
-2 516
-60 000
-61 521 -65 014
-81 109
-72 248
-23 884
-51 415
-20 040
-254 812
-115 904 -115
-232 189
-383 327
-189 000
-175 541
-515 657
APPENDIX F
-6 671 473
-1 673 184
-1 391 780
-1 300 174
01/07/2010
AND SUBSIDIES IN TERMS OF SECTION 123 OF MFMA, 56 OF 2003
FUNDS UNSPENT
GRANT
YMENTS
WORKERS
DISCLOSURES OF GRANTS
HOUSE
HOUSING
FRAMEWORK
T PLAN
GRANT
TOURISM
T PROGRAMME
DECRIPTION
AWC
AWC)
VEY
. - MADIBA
TO PRIVATE LAND (ELECTR) PRIVATE TO
ATION MANAGEMENT ATION
SUPPOR
TERS AND EMBA
DEVELOPMENT
ANCE (P
TRAINING- P
TED TRANSPOR
AL SYSTEMS IMPROVEMENT
* Working for Water Advance was moved to received deposits
PUBLIC SHEL
BOCMA DONATION TRAINING OF HOUSING OFFICIALS
CONSUMER HOUSING TOURISM DEVELOPMENT TOURISM
PAWC: ECON. DEV PAWC:
PERCEPTION SUR PLANNING COMMUNITY
PUBLIC WORKS: MEERLUST
FINANCE MANAGEMENT
TOURISM
BREERIVIER STRUKTUURPLAN WARD COMMITTEE SUMMIT WARD
LED- PROGRAM: RURAL
MANAGEMENT
MUNICIP
CONTRIBUTION
BULK INFRASTRUCTURE GRANT INTEGRA
FIRE ASSIST WATER & SANIT WATER
MULTI- PURPOSE CENTRE (LANGEBERG MUN) MULTI- al financial al financial
ficer)
—
, and include as a note to the annu , and include as a note to the annu
ficer; (Delegated to the Chief Financial Of
—
ficer;
al quotations, which must include conditions stating
1
ficial designated by the accounting of
Comments:
Comments:
of the council, or board of directors in the case of a municipal entity of the council, or board of directors in the case of a municipal entity
ficial designated by the chief financial of
ficer or another of
Y 2010 - JUNE 201
related goods or services through a competitive bidding process.
ficer or an of
n price quotations, which must include conditions stating
.—
e
ncial of
accounting of
–
Acquisitions made JUL
Procurement Method Followed:
Procurement Method Followed:
A) to assist with the acquisition of IT
ficult to compile;
—
ficial procurement processes; and
Agency (SIT
—
Technology
ficial or committee acting in terms of delegated powers or duties which are purely of a technical nature. ficial or committee acting in terms of delegated powers or duties which are purely of a technical nature.
ficer—
APPENDIX G
Cape District Municipality Winelands
ficial Order and/or following the correct procurement procedures
To report to the CFO by the 3rd working day of the next month) To
—
Act, 2000. Sec 2. Framework for implementation of preferential procurement policy
— A supply chain management policy must stipulate the conditions for the procurement of goods or services through written or verb
ficer may request the State Information
ficial procurement processes established by the policy and to procure any required goods or services
ficer may procure goods or services under a contract secured by another organ of state, but only if
ficer must record the reasons for any deviations in terms of subregulation (1) (a) and (b) and report them to the next meeting ficer must record the reasons for any deviations in terms of subregulation (1) (a) and (b) and report them to the next meeting
related goods or services -
ritten or verbal quotations.
The accounting of
contemplated in paragraphs (d) and (e) justify the award to another tenderer;
Summary Report i.t.o. Procurement Exceptions & Deviations -
through any convenient process, which may include direct negotiations, but only
organ of state;
(i) in an emergency;
(ii) if such goods or services are produced or available from a single provider only;
(iii) for the acquisition of special works of art or historical objects where specifications are dif (iv) acquisition of animals for zoos; or (v) in any other exceptional case where it is impractical or impossible to follow the of
(Delegated to the Deputy Director: Finance -
( f ) the contract must be awarded to the tenderer who scores the highest points, unless objective criteria in addition to thos (c) that if it is not possible to obtain at least three quotations, the reasons must be recorded and reported quarterly to the (c) that if it is not possible to obtain at least three quotations, the reasons must be recorded and approved by the chief fina
(a) the contract has been secured by that other organ of state by means of a competitive bidding process applicable to that (b) there is no reason to believe that such contract was not validly procured; (c) there are demonstrable discounts or benefits to do so; and (d) that other organ of state and the provider have consented to such procurement in writing. (a) to dispense with the of
(b) to ratify any minor breaches of the procurement processes by an of (b) to ratify any minor breaches of the procurement processes by an of
of expenditure excluding salaries.
The reason why the award was made:
Preferential Procurement Policy Framework SCM Reg.16. W (1) An organ of state must determine its preferential procurement policy and implement it within the following framework: SCM Reg.17. Formal written price quotations. (1) A supply chain management policy must stipulate the conditions for the procurement of goods or services through formal writte Procurement of IT SCM Reg.31(1)
Procurement of goods and services under contracts secured by other organs of state SCM Reg.32. (1) The accounting of
SCM Reg.36. Deviation from, and ratification of minor breaches of, procurement processes. (1) A supply chain management policy may allow the accounting of
statements. statements. (2) The accounting of acquired goods and/or Services without an of Officials (2) The accounting of Expenditure incurred where the prescribed legislation were not complied to in all aspects
The reason why the award was made:
-
-
-
-
-
30 000.00 47 891.00
77 029.59
276 218.00
185 788.86
607 375.84
2 415 781.46
5 939 437.67
9 579 522.42
1.00%
Amount
Amount
TIONS:
TO BETO APPROVED
Y OF EXCEPTIONS / DEVIA
Name of the Person/Organisation to whom the SUMMAR PPPFA SEC.2(1)(f) award was made: ( 9 Exceptions = 2.88% ) REG.16(c) WQ - ( 652 Exceptions = 25.22% ) REG.17(1)(c) FWPQ - ( 299 Exceptions = 62.01% )
REG.31(1)
REG.32(1)
DEV-REG.36(1)(a)(i) DEV-REG.36(1)(a)(ii) ( 8 Exceptions = 1.94% ) ( 1 Exceptions = 0.31% ) DEV-REG.36(1)(a)(iii) DEV-REG.36(1)(a)(v) ( 13 Exceptions = 0.50% ) DEV-REG.36(1)(a)(iv) ( 8 Exceptions = 6.34% ) DEV-REG.36(1)(b) EXPENDITURE ( 8 Exceptions = 0.80% ) UNAUTHORISED EXPENDITUR
Name of the Person/Organisation to whom the award was made: 158 Comments:
.
Procurement Method Followed:
s / etc.
A-Rated Banks
The official does not work in the Department: Financial Management The official
RELATION:
Argriculture. She is not in service of the Capewinelands District Municiplaity
ficial Order
ficial working at Council.
odacom / municipal services / copy machines / etc.
related goods or services.
Telkom / V Telkom
e
A assists with acquisitions of IT
The reason why the award was made:
Acquisitions less than R2,000 - no procurement process is followed for small purchases Study Bursaries / Sponsorships / Donations / etc. Transactions where procurement plays no role - contribution payments / S&T Transactions The supplier selected for the contract/tenderer did not score the highest points Transactions where no procurement process were followed (Emergencies/Sole Providers/etc.) Transactions Ratifying minor breaches of the procurement processes which are purely of a technical nature. DWAF Contracts where the CWDM did not do the procurement. DWAF PAWC Contracts where the CWDM did not do the procurement. PAWC Mainly small out of pocket refunds Acquisitions made in terms of a full quotation process up to R200,000 - minimum three quotes Investments are made in terms of council policy - Quotes are obtained from Acquisitions where it was not possible to obtain at least three quotations up to R10,000 Acquisitions where it was not possible to obtain at least three quotations between R10,000-R30,000 Where SIT Services contracted through Contracts from Other Organs of State Payments made in terms of contracts/agreements with long-term service providers Contracts with service providers - Prescriptive payments made in terms of legislation - licensing / taxes / membership fees / etc. Service provider is selected for the specific service and cannot be procured - sole providers Mainly seed funding for small farmers / SMMEs / PDIs per pre-qualification Acquisitions made in terms of a full tender process on amounts above R200,000 Officials acquired goods and/or Services without an of Officials Expenditure incurred where the prescribed legislation were not complied to in all aspects The owner of the restaurant is the spouse of an of Services and has no influence over the SCMU
The owner of the business spouse is working for the Department
-
4 800.00
33 451.32
77 029.59
45 941.00
35 420.89
823 164.70
276 218.00
5 789 751.67
2 357 604.53
2 843 500.24
8 201 635.69
1 422 252.36
8 396 953.50
30 514 794.17
18 350 339.70
21 528 482.43
153 768 631.06
TOTAL AMOUNT
Amount
Y:
TEGOR
: 060.47 8 110
: 638 000 000.00
ATE: -
NONE
NAME:
: 60 810 364.27
Total Procurement Total
AURANT
: 14 778 725.90
TO BETO APPROVED
Awards to close family members of persons in the service of the stat Awards
A-
TIONS IN TERMS OF:-
POLICY
:-
AD TUINDIENSTE
The total procurement for the period amounted to: EIKEST Name of the Person/Organisation to whom the BREAKDOWN OF PROCUREMENT PER CA Regulation 44. Prohibition on awards to persons in the service of the state KLEINPLASIE REST award was made: Regulation 45.
CAPITAL: Included in CAPITAL:
DECLARA
0 SUBSIDY 0 UNAUTHORISED EXPENDITUR 8 DEV-REG.36(1)(b) 1 PRE-PROCURED PAWC: 0 REG.31 SIT 0 REG.32 ORGANS OF ST 0 EXPENDITURE 9 DEV-PPPFA SEC.2(1)(f)
16 DEV-REG.36(1)(a) 48 QUOTES: INVEST/POLICY
No.
436 PRE-PROCURED DWAF: 119 SUBSCRIPTIONS: 279 PETTY CASH:294 REG.17(1)(c) < 3 FWPQ 9 946.20 638 REG.16(c) < 3 WQ 235 STATUTORY PAYMENTS: 253 PROVIDERS: SERVICE 393 COUNCIL
2363 PROCESS: QUOTATION 1339 SERVICE ACCOUNTS:
2099 3rd PARTY PAYMENT
13431 TENDER PROCESS: 32464 TOTAL: 957 790 476.67
10503 Trans. 21 480 20 422 92 627 80 268 334 318 125 449 400 823 653 047 286 871 127 000 400 000 948 024 1 142 545 1 720 740 1 877 471 1 094 000 9 325 084.04 AMOUNT R R R R R R R R R R R R R R R R 26 565 357 265 2014/2015 R R 24 150 464 735 2013/2014 R R 21 954 456 400 571 273 127 438 802 471 109 352 R R R R R R R 496 584 21 480 19 958 20 422 80 268 442 341 206 880 125 449 571 273 400 823 653 047 400 000 127 000 177 519 1 075 000 1 094 000 2011/2012 2012/2013 R R R R R R R R R R R R R R R R 451 440 OMMITMENTS 39 720 597 618 110 771 110 120 740 VALUE CONTRACT R R R R R 23 038 R 493 145 R 1 571 000 R 1 300 000 R 1 960 000 R 80 268 R 5 599 959 R 181 264 R 512 806 R 273 600 APPENDIX H: FUTURE C STRATEGIC OBJECTIVE STRATEGIC Corporate Services Corporate Services Rural and Social Development Corporate Services Corporate Services Corporate Services Community and Developmental Services Engineering and Infrastructure Engineering and Infrastructure Engineering and Infrastructure Engineering and Infrastructure Community and Developmental Services Engineering and Infrastructure Engineering and Infrastructure Community and Developmental Services Regional Development and Planning Aid Transport The Legal Limited and Accessibility Council fices) and CWDM fices) and CWDM Telkom SA Telkom CONTRACT olseley of ulbagh of Agreement of Lease between Witzenberg Agreement of Lease between Witzenberg Air Qualtiy Project Municipality(T Municipality(W Agreement between CWDM and Clinic University of Stellenbosch Agreement between CWDM Agreement of Lease between LSW Eiendomme CC and CWDM Agreement of Lease between Stellenbosch Municipality and CWDM (DORA) Cape Winelands District Integrated Drakenstein Mobility Corridor Hermon Housing: Restoration Of Houses Improvement of disabled Buildings ISDR Lease of Property (Satelite Fire Station) Planning: Bulk Infrastructure (DORA) Upgrading of Buildings and Services at Tourism Public Relation Service Tourism Wolwekloof TOTAL COMMITMENTS 163 APPENDIX I: BURSARIES TO RELATED PARTIES 30 JUNE 2011 Name Surname Registration Fees Relatives at CWDM 1 Heinrich Diederich Boock R 4 400 Related 2 Hendrik Gideon Keyser R 7 500 Related 3 Moses Michaels R 3 900 Related 4 Johannes,Harry Posthumus R 7 500 Related 5 Francois Van Eck R 2 200 Related 6 Christoffel, Johannes Van Schalkwyk R 7 500 Related 7 Blain Van Wyk R 7 500 Related 8 Daylynn,Janey Zimri R 4 400 Related 9 Nandi Suraya Abrahams R 7 500 Not Related 10 Catherine Abrahams R 2 263 Not Related 11 Celeste Abrahams R 2 100 Not Related 12 Ellouise Chantel Adams R 7 500 Not Related 13 Hubert Randolph Clide Adonis R 8 000 Not Related 14 Jamey Tracey Adriaanse R 2 200 Not Related 15 Bianca Anthony R 4 400 Not Related 16 Beaton Bailey R 4 400 Not Related 17 Zane Thomas Bailey R 4 400 Not Related 18 Margo Candice Baron R 4 400 Not Related 19 Shane Corbin Bergstedt R 7 500 Not Related 20 Quintillian Beukes R 7 500 Not Related 21 Thandeka Booi R 2 200 Not Related 22 Sandile Sydney Booysen R 2 200 Not Related 23 Lindelwa Aretha Booysen R 3 400 Not Related 24 Christina Jasmina Booysen R 4 400 Not Related 25 Nezikazi Botozo R 2 200 Not Related 26 Helena Elizabeth Cloete R 7 500 Not Related 27 Inge Conradie R 7 500 Not Related 28 Tian Cronje R 7 500 Not Related 29 Shinita Welandy Daniels R 2 700 Not Related 30 Renaldo Jermaine Davids R 2 263 Not Related 31 Wouter Jacobus De Wet R 5 300 Not Related 32 Kurt Lester Du Plessis R 3 177 Not Related 33 Anja Ellason Esau R 2 200 Not Related 34 Jillian Nichole Fisher R 2 200 Not Related 35 Lizle Eve-Lynn Flemmit R 5 300 Not Related 36 Clement, Hadley Frantz R 4 400 Not Related 37 Angelo,Geraldo Fredricks R 4 400 Not Related 38 Adrian, Kelvin Gabriel R 2 200 Not Related 39 Asonele George R 2 200 Not Related 40 Tesna, Sanetha Haas R 5 300 Not Related 41 Craig, Ashley Hendricks R 7 500 Not Related 42 Elpaucia,Florette Hendricks R 8 700 Not Related 43 Haley Hermanus R 3 400 Not Related 44 Derick Jacobs R 2 200 Not Related 45 Zaakiya Iaylynn Jacobs R 3 312 Not Related 46 Avukile Janda R 4 400 Not Related 47 Nadeem Jeftha R 2 200 Not Related 48 Moonisah Jeftha R 7 500 Not Related 49 Davin Gradville Jefthas R 2 200 Not Related 50 Darren Walter Johannes R 2 200 Not Related 51 Melanie Tracey Jumat R 4 000 Not Related 52 Nangamso Katom R 2 500 Not Related 53 Tandokasi Kepu R 2 000 Not Related 54 Riyaadh Khan R 3 700 Not Related 55 Edward Kiewiets R 2 263 Not Related 56 Melissa King R 2 600 Not Related Growing, Sharing, Delivering & Innovating Together APPENDIX I: BURSARIES TO RELATED PARTIES 30 JUNE 2011 Name Surname Registration Fees Relatives at CWDM 57 Danzal Clintin King R 7 000 Not Related 58 Lazelle Esmerelda Kleinsmidt R 7 896 Not Related 59 Lyle,Joe Kleintjies R 2 200 Not Related 60 Aubrey, Lyle Langeveldt R 2 200 Not Related 61 Laken Langeveldt R 5 300 Not Related 62 Mischka Langeveldt R 7 500 Not Related 63 Lehlohomolo,Clement Lebenya R 7 500 Not Related 64 Jeandré, Mellet Lobb R 5 000 Not Related 65 Chanté,Ventle Losper R 4 000 Not Related 66 Francois,James Lucas R 5 300 Not Related 67 Dane, Marshall Mackier R 4 400 Not Related 68 Zanele,Veronica Mangena R 1 875 Not Related 69 Victor Mangxaba R 2 350 Not Related 70 Andria Manuel R 2 000 Not Related 71 Melanie Marais R 2 200 Not Related 72 Anneen Marais R 4 400 Not Related 73 Faith, Eloise Marais R 4 400 Not Related 74 Francis Marais R 4 400 Not Related 75 Venette,Lucy Mc Dillon R 2 200 Not Related 76 Nerisa, Heather McNeil R 2 500 Not Related 77 Ian Cedric Minnaar R 7 500 Not Related 78 Friedel Mitas R 5 300 Not Related 79 Daniel, Vuyani Muko R 4 400 Not Related 80 Dean, James Neethling R 7 500 Not Related 81 Maxine,Allysa Newman R 5 000 Not Related 82 Brendon,Nigel Nicholls R 2 200 Not Related 83 Granville,Diëgo Petersen R 4 200 Not Related 84 Sandiswa Phubaso R 2 200 Not Related 85 Donovan,Clyde Pietersen R 4 200 Not Related 86 Devine, Christelene Reitz R 4 400 Not Related 87 Kenneth Romonichia,Monchesca R 2 700 Not Related 88 Heidre, Verushka Saal R 5 000 Not Related 89 Brent,Ralph Schuurman R 4 400 Not Related 90 Enrico Shortles R 2 200 Not Related 91 Constance Simon R 3 400 Not Related 92 Millecent Smith R 7 500 Not Related 93 Alechà, Menique Thops R 7 500 Not Related 94 Sherman, Marshall Van Heerden R 2 200 Not Related 95 Angelo,Marlyn Van Wyk R 6 000 Not Related 96 Jamie-Lee Wilson R 2 200 Not Related R 420 899 Growing, Sharing, DeliveringPage 68 & Innovating Together 162 APPENDIX J The following payments was directly made to "B" municipalities. Breede Valley Municipality 1 300 000 Witzenberg Municipality 1 300 000 Drakenstein Municipality 1 400 000 Stellenbosch Municipality 900 000 Langeberg Municipality 1 100 000 6 000 000 Growing, Sharing, Delivering & Innovating Together 5. ANNUAL PERFORMANCE REPORT Growing, Sharing, Delivering & Innovating Together 164 5.1 INTRODUCTION The CWDM has prepared a performance management report that summarises: ? the organisational key performance indicators tracked against targets and actual achievement over the relevant financial year, aligned with the predetermined objectives as set out in the IDP ? the project linkages to the IDP ? the overall achievement with regard to projects implemented in the Cape Winelands ? the municipality's contribution to the five key performance areas of national government Rural and social development is a key priority and performance area for the CWDM 5.1.1 Predetermined Objectives The reflection of key performance indicators and performance targets in the Integrated Development Plan as compelled by Section 26(i) and Section 41(1)(a) of the Local Government Municipal Systems Act (No.32 of 2000) is obstructed by the following challenges: i. Council adopts the Integrated Development Plan and Medium Term Revenue and Expenditure Framework by the end of May. ii.Council submits the Integrated Development Plan and Medium Term Revenue and Expenditure Framework to the MEC for Local Government ten days after adoption of the plan. 165 Growing, Sharing, Delivering & Innovating Together iii. The Executive Mayor approves the Service Delivery and Budget Implementation Plan (SDBIP) in June, no more than twenty eight days after the adoption of the IDP and Budget. iv.The key performance indicators and performance targets for the organisation, strategic projects and individual performance management originate during the formulation and finalization of the SDBIP process, during the months of May and June. It stands to reason that procedural misalignment between the timeline regulating the adoption of the IDP and Budget and the SDBIP timeline (as adhered to by the CWDM) seriously inhibited the district municipality from reflecting accurate key performance indicators and performance targets in the Integrated Development Plan. Corrective Action to compile the new 2011/12 – 2015/16 Integrated Development Plan and MTREF for the municipality has been taken through Council's adoption of the CWDM 2011/12 – 2015/16 IDP Strategic Management Framework. These extracts illustrate the objective of the municipality to develop and adopt the SDBIP together with the IDP and MTREF to ensure that accurate key performance indicators and performance targets are accurately captured in the IDP document. Figure 1: Final Approval of IDP, PMS and Annual Budget Special Council meeting to approve Revised IDP, 2011/04/14 Performance Management Measures and targets, the multi-year budget and the SDBIP(at least 30 days before the start of the budget year) Atechnical preparation in the form of a template to illustrate the IDP/Budget/PMS link has been developed and will be included in the 2011/15 IDP. Acopy of the template is attached as: ANNEXURE “A” Framework for Managing Performance Information: Key Concepts: When monitoring and assessing outcomes and impacts, it needs to be kept in mind that government interventions can also have unintended consequences. These also need to be identified and monitored so that risks can be managed and corrective action can be taken. In managing for results, budgets are developed in relation to inputs, activities and outputs, while the aim is to manage towards achieving the outcomes and impacts. The figure below illustrates the relationship between these core performance information concepts. Growing, Sharing, Delivering & Innovating Together 166 Auditor General (AG) interest in Performance Management System when auditing AFS (Annual Financial Statements): Auditing of predetermined objectives can be defined as: ? An annual audit of reported actual performance against predetermined objectives, indicators and targets. ? This is an integral part of the annual regularity audit, confirming the credibility of the reported performance information in the annual performance report. The figure below illustrates the relationship between; (a) the predetermined objectives, key performance indicators and targets (the IDP); (b) the actual achievements of council against these indicators and targets in the IDP (Annual Report); (c) Link to a system to measure performance (PMS) Planning, Budgeting and Reporting: The performance information reported in accountability documents enables Council and the public to track government performance, and to hold it accountable. Performance information also needs to be available to managers at each stage of the planning, budgeting and reporting cycle so that they can adopt a results-based approach to managing service delivery. This approach emphasises planning and managing a focus on desired results, and managing inputs and activities to achieve these results. 167 Growing, Sharing, Delivering & Innovating Together The next table below illustrates the accountability reports of local government: Accountability Cycle Accountability Documents Performance Information Policy development · Policy documents · Identify baseline information · Explanatory memoranda policy accompanying ordinances · Set out desired effects of policy Strategic planning · IDP · Indicate outputs to be produced · Specify performance indicators Operational planning · Municipal budget · Set performance targets · SDBIP · Indicate available resources · Performance agreements · Allocate responsibilities Implementation and in-year · Monthly budget statements · Report progress with reporting · Mid-year budget and implementation of plans and performance assessments budgets End-year reporting · Annual reports · Report on performance against plans and budgets 5.1.2 CWDM Strategic Road Map: Page 192 (A) Chapter 2.3.1 Page 22 (a) – IDP 5.1.3 Predetermined ObjectivesAligned to SDBIP IDP Chapter 6 Growing, Sharing, Delivering & Innovating Together 168 5.2 KEY PERFORMANCE INDICATORS – 2010/11 The organisational key performance indicators (KPIs) provide an overall picture of performance for the district municipality as a whole, reflecting on performance against the strategic priorities set in the IDP and budget. 169 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 170 171 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 172 173 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 174 1 Table 5.1 Community and development services Table 175 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 176 177 Growing, Sharing, Delivering & Innovating Together Work study could not be Work implemented - will be attended to in 2011/2012 financial year 2011/2012 Growing, Sharing, Delivering & Innovating Together 178 179 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 180 Table 5.2 Corporate services Table 181 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 182 183 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 184 The information was supplied to PGWC in time, but they register the projects late. 185 Growing, Sharing, Delivering & Innovating Together Table 5.3 Engineering and infrastructure services Table Growing, Sharing, Delivering & Innovating Together 186 187 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 188 189 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 190 Table 5.4 Regional and development planning Table 191 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 192 193 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 194 Table 5.5 Rural and social development Table 195 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 196 197 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 198 199 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 200 201 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 202 Table 5.6 Financial management Table 203 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 204 205 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 206 fice of the Municipal Manager Table 5.7 Of Table 207 Growing, Sharing, Delivering & Innovating Together 5.3 PROJECT IMPLEMENTATION The overall achievement, with regard to the 73 projects implemented in the Cape Winelands, was reflected as weighted percentages of: ? Quantities delivered ? Budget spent ? Employment created ? Individuals trained ? Activities accomplished This represents an overall achievement of 91% for the municipality as a whole. The table below provides a summary of this achievement for the respective executive directorates. Directorate Overall project achievement Community and Development 82% Office of the Municipal Manager 90% Engineering and Infrastructure 91% Regional Development and Planning 96% Rural and Social Development 96% Cape Winelands 91% Table 5.7 Executive directorates' achievements The following table reflects the grading of these 73 projects, with 62 projects (84.9%) achieving a performance level of 75% and higher. Number of Directorate 0% – 74% 75% – 89% 90% – 100% projects Community and Development 15 4 3 8 Office of the Municipal Manager 2 0 1 1 Engineering and Infrastructure 24 5 9 10 Regional Development and Planning 16 1 2 13 Rural and Social Development 16 1 2 13 Cape Winelands 73 11 17 45 Table 5.8 Grading of project implementation Growing, Sharing, Delivering & Innovating Together 208 The table below and on the following pages illustrates the project linkages to the IDP and key performance indicators for deliverables with targets and actual information: 209 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 210 211 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 212 213 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 214 215 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 216 217 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 218 219 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 220 221 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 222 223 Growing, Sharing, Delivering & Innovating Together Growing, Sharing, Delivering & Innovating Together 224 and key performance indicators for deliverables Table 5.9 Project linkages to the IDP Table 225 Growing, Sharing, Delivering & Innovating Together 5.4 KPAs OF NATIONAL GOVERNMENT National government has identified five key performance areas (KPAs) for local governments: ? Service delivery and infrastructure development ? Local economic development ? Municipal financial viability and management ? Municipal transformation and organisational development ? Good governance and public participation The CWDM contributed to the KPAs as follows: KPA 1 – SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT (2009/2010) Roads Unit Quantity Kilometres of road responsible for km 4716 Kilometres of roads maintained and rehabilitated km 4716 Total amount of operating budget allocated to Rand R 127 345 868 road maintenance Total amount of operating budget spent on road Rand R 101 842 676 maintenance KPA 2 – LOCAL ECONOMIC DEVELOPMENT Economic growth Unit Quantity Total rand value of contracts awarded Rand R 158 950 656 Total rand value of contracts awarded to SMMEs Rand R43289557 Total rand value of contracts awarded to BEE Rand R 60 216 398 suppliers Total rand value of contracts awarded to women Rand R32755004 KPA 3 – MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT Financial viability Unit Quantity Total operating transfers Rand R 286 665 656 (grant and subsidy income) Total operating expenditure Rand R 329 606 984 Capital budget spend in year Rand R11320162 Growing, Sharing, Delivering & Innovating Together 226 Council approved capital budget in year Rand R12467110 Total outstanding customer debt Rand R674259 as at 30 June 2009 Current assets as at 30 June 2009 Rand R386813462 Current liabilities as at 30 June 2010 Rand R54596575 Total revenue Rand R352824619 Revenue from grants Rand R286665656 Debt service payments (Finance Charges) Rand R10193884 Salaries budget (including benefits) Rand R107716229 Total operating budget Rand R383716651 Municipal systems improvement grant (MSIG) Rand R750000 Amount of this allocation utilised Rand R538565 Municipal infrastructure grant allocation Rand R763000 Amount of this allocation utilised Rand R763000 KPA 4 – MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT Organisational design and capacity Unit Quantity Number of posts in the organogram as at 30 June Number 584 227 Growing, Sharing, Delivering & Innovating Together Number of posts in the organogram that were Number 541 filled as at 30 June 2010 Total number of staff employed in the Number 563 municipality as at 30 June 2010 Total number of Section 57 staff employed in the Number 7 municipality as at 30 June 2010 Section 57 posts vacant for more than 3 months in Number 0 the financial year ending 30 June 2010 Percentage of municipality’s budget spent on Percentage 0.25% implementing its workplace skills plan. Employment equity Unit Quantity Number of Section 57 staff who were classified as Number 5 Black (African, Indian and Coloured) as at 30 June 2010 Number of Section 57 staff who were women as Number 2 at 30 June 2010 Number of staff (out of total number of staff) in Number 174 the municipality who were women as at 30 June 2010 Number of staff (out of total number of staff) in Number 6 the municipality who were classified as disabled as at 30 June 2010 KPA 5 – GOOD GOVERNANCE AND PUBLIC PARTICIPATION Council meetings Unit Quantity How many council meetings were held in the Number 9 2009/10 financial year? How many open council meetings were held in Number 9 Corporate governance Unit Quantity Number of Section 57 staff dismissed Number 0 Number of Section 57 staff suspended Number 0 Table 5.10 KPAs of national government Growing, Sharing, Delivering & Innovating Together 228 5.4.1 PERFORMANCE OF EXTERNALSERVICE PROVIDERS A total of 114 External Service Providers(Quotations) were evaluated during the 2010/11 financial year of which only 3 scored between 6 – 10 (Poor), 1 scoring between 11 – 15 (Average) and 100 scoring above 16 (Satisfactory). Maximum score – 25 points. SUPPLIER PERFORMANCE PER DEPARTMENT:DOCUMENTS ISSUEDAND RETURNED QUOTATIONS FOR THE PERIOD: JULY 2010 - JUNE 2011 Count of Department / Code Financial Dept/ OUT Grand Average PMS ENG RUR COMM REG FIN CORP GOV MM Year Code STANDING Total Score July-Dec 36 36 2010 COMM 22.4 CORP 5519.4 ENG 14 14 20.8 FIN 4421.5 GOV 5522 MM 22 24 REG 17 17 20 RUR 4 4 21 Total 14 4 36 17 4 5 5 2 87 Jan-June 44 2011 COMM 20 CORP 3315.7 ENG 6 6 18.3 FIN 1121 MM 11 20 REG 11 11 14 RUR 1 1 20 Total 6 1 4 11 1 3 1 27 Atotal of 44 External Service Providers(Tenders) were evaluated during the 2010/11 financial year of which only 0 scored between 6 – 10 (Poor), 1 scoring between 11 – 15 (Average) and 43 scoring above 16 (Satisfactory). Maximum score – 25 points. SUPPLIER PERFORMANCE PER DEPARTMENT: DOCUMENTS ISSUED AND RETURNED TENDERS FOR THE PERIOD: JULY 2010 TO JUNE 2011 Count of PMS Submitted By Department/ Code Average Financial Dept/ Grand Outstanding COMM CORP ENG FIN GOV MM REG RUR PMS Year Code Total Score July-Dec COMM 11 11 2010 23.7 CORP 8 8 23.6 ENG 13 13 20.8 FIN 1 1 20 REG 4 4 23.7 RUR 4 4 23.7 Total 11 8 13 1 4 4 41 Jan-June CORP 1 1 2011 20 ENG 1 1 19 MM 1122 Total 1 1 1 3 229 Growing, Sharing, Delivering & Innovating Together 5.5 PROJECT PERFORMANCE RESULTS The overall project performance improved from 88.4% to 91% from 2009/10 to 2010/11(table 5.11). Projects that are more than 75% complete, moved from 74% to 84.9%. Overall project achievement: Overall project achievement: Directorate 2009/2010 2010/2011 Community and Development 86% 82% Office of the Municipal Manager 88% 90% Engineering and Infrastructure 86% 91% Regional Development and Planning 96% 96% Rural and Social Development 86% 96% Cape Winelands 88.4% 91% Table 5.11 Overall project performance of 2009/10 and 2010/11 Growing, Sharing, Delivering & Innovating Together 230 5.6 PERFORMANCE IMPROVEMENT MEASURES Amulti-faceted approach was adopted to address areas of performance improvement: ? Political and administrative strategic sessions were held to review and realign the strategic direction of the municipality, based on its current performance and contexts of service delivery. ? Progress reports are standing agenda items at Executive Mayoral Committee and management meetings. ? Online performance reports are available for identified stakeholders. ? Training initiatives are aligned to the powers and functions of the district. ? Management systems/tools, e.g. vehicle tracking, were implemented to improve the effective and efficient use of municipal resources. ? A review of the project proposal, Service Delivery Budget Implementation Plan and project implementation processes was undertaken. The recommendations were incorporated in the budget adjustment process. ? Random sampling of key performance indicators and projects were done by external auditors to verify the quality of data and evidence of performance. Audit reports are submitted to management for response and action to address any identified shortcomings. These reports are also served before the audit committee for further review. ? Changes were made to make the PMS more user friendly. 5.7 PMSAUDIT FOCUS FOR 2011/2012 The focus from council's external auditors (KPMG) for the 2011/2012 financial year will be as follows: Quarter 1: Compliance Review to Legislation, Regulation and National Treasury Circulars Quarter 2: Executive Directors Scorecard Sampling – 3e's (effective, efficiency and economic) and functionality Quarter 3; Project Sampling - 3e's and functionality Quarter 4; Executive Directors Scorecard, Project (continuation of quarter 2 and 3) and Directorate KPI Sampling – 3e's and functionality. 231 Growing, Sharing, Delivering & Innovating Together REPORT OF THE AUDITOR-GENERAL TO THE WESTERN CAPE PROVINCIAL PARLIAMENT AND THE COUNCIL ON CAPE WINELANDS DISTRICT MUNICIPALITY REPORT ON THE FINANCIAL STATEMENTS Introduction 1. I have audited the accompanying financial statements of the Cape Winelands District Municipality, which comprise the statement of financial position as at 30 June 2011, and the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 5 to 52. Accounting officer's responsibility for the financial statements 2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Local Government: Municipal Finance Management Act of South Africa, 2003 (Act No. 56 of 2003) (MFMA) and the Division of Revenue Act of South Africa, 2010 (Act No.1 of 2010) (DoRA), and for such internal controls management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor-General's responsibility 3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 and section 4 of the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), my responsibility is to express an opinion on these financial statements based on my audit. 4. I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 5. 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 judgement, 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. Growing, Sharing, Delivering & Innovating Together 232 6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion 7. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Cape Winelands District Municipality as at 30 June 2011, and its financial performance and cash flows for the year then ended in accordance with SA Standards of GRAP and the requirements of the MFMA and DoRA. Emphasis of matter 8. I draw attention to the matter below. My opinion is not modified in respect of this matter. Material underspending of the operating budget 9. The municipality had a material underspending of R49 533 909 at 30 June 2011. The underspending related mainly to various operating projects amounting to R8 162 538, which were rolled over to the next financial year, R8 083 129 for other expenses and additional funds received close to year-end for repairs and maintenance amounting to R33 288 242 which could not be spent in time. Disestablishment of the district management areas (DMA) 10. As disclosed in note 43 to the financial statements, the DMAs are being disestablished and are to be incorporated in superseding municipalities with effect from 1 July 2011. Additional matters 11. I draw attention to the matters below. My opinion is not modified in respect of these matters: Material inconsistencies in other information included in the annual report 12. No material inconsistencies between the draft annual report and financial statements statements were identified. The draft annual report as well as the final printer's proof of the annual report will be reviewed and any material inconsistencies then identified will be communicated to management. Should the inconsistencies not be corrected, it may result in the matter being included in the audit report. Unaudited supplementary schedules 13. The supplementary information set out in annexures A to J on pages 53 to 69 does not form part of the financial statements and is presented as additional information. I have not audited these annexures and, accordingly, I do not express an opinion thereon. 233 Growing, Sharing, Delivering & Innovating Together REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 14.ln accordance with the PAA and in terms of General notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I include below my findings on the annual performance report as set out on pages 1 to 68 and material noncompliance with laws and regulations applicable to the municipality. Predetennined objectives 15. There are no material findings on the annual performance report. Compliance with laws and regulations Procurement and contract management 16. Awards were made to providers who are persons in service of other state institutions or whose directors/principal shareholders are persons in service of other state institutions in contravention of the requirements of the Municipal Supply Chain Management (SCM) Regulations (GNR. 868 of 30 May 2005), regulations 44. Furthermore the provider failed to declare that they were in the service of the state as required by SCM regulation 13(c). 17. Awards were made to suppliers who did not submit a declaration on their employment by the state or their relationship to a person employed by the state as per the requirements of SCM regulation 13(c). INTERNAL CONTROL 18.ln accordance with the PAA and in terms of General notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control. The matters reported below are limited to the significant deficiencies that resulted in the findings on compliance with laws and regulations included in this report. Leadership 19. The accounting officer was unable to ensure compliance with SCM regulation 44(1)(a) because of a lack of a database or similar mechanism to verify the accuracy of declarations of suppliers in relation to whether or not they are in the service of the state. Financial and performance management 20. Management did not adequately monitor the declaration of interest forms to ensure that suppliers completed their declaration of interest forms correctly and therefore led to the SCM unit being unable identify conflicts of interest timeously. Cape Town 30 November 2011 AUDITOR-GEN ERAL SOUTH AFRICA Audiling 10 build public confidence Growing, Sharing, Delivering & Innovating Together 234