CONTENTS
CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY ...... 6
COMPONENT A: MAYOR’S FOREWORD ...... 6
COMPONENT B: EXECUTIVE SUMMARY ...... 8 1.1. MUNICIPAL MANAGER’S OVERVIEW ...... 8 1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW ...... 10 1.3. SERVICE DELIVERY OVERVIEW ...... 17 1.4. FINANCIAL HEALTH OVERVIEW ...... 18 1.5. STATUTORY ANNUAL REPORT PROCESS...... 19
CHAPTER 2 – GOVERNANCE ...... 20
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ...... 20 2.1 POLITICAL GOVERNANCE...... 20 2.2 ADMINISTRATIVE GOVERNANCE ...... 29
COMPONENT B: INTERGOVERNMENTAL RELATIONS ...... 30 2.3 INTERGOVERNMENTAL RELATIONS ...... 30
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ...... 31 2.4 PUBLIC MEETINGS ...... 32 2.5 IDP PARTICIPATION AND ALIGNMENT ...... 37
COMPONENT D: CORPORATE GOVERNANCE ...... 38 2.6 RISK MANAGEMENT ...... 39 2.7 ANTI-CORRUPTION AND FRAUD ...... 39 2.8 SUPPLY CHAIN MANAGEMENT ...... 39 2.9 BY-LAWS ...... 40 2.10 WEBSITES ...... 41 2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES ...... 42
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) . 43
COMPONENT A: BASIC SERVICES ...... 44 3.1. WATER PROVISION ...... 45
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3.2 WASTE WATER (SANITATION) PROVISION ...... 51 3.3 ELECTRICITY ...... 56 3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS, WASTE DISPOSAL, STREET CLEANING AND RECYCLING) ...... 60 3.5 HOUSING ...... 64 3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT ...... 67
COMPONENT B: ROAD TRANSPORT ...... 69 3.7 ROADS ...... 69 3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION) ...... 72 3.9 WASTE WATER (STORMWATER DRAINAGE) ...... 73
COMPONENT C: PLANNING AND DEVELOPMENT ...... 74 3.10 PLANNING ...... 75 3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES) ...... 76
COMPONENT D: COMMUNITY & SOCIAL SERVICES ...... 78 3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER (THEATRES, ZOOS, ETC) ...... 79 3.13 CEMETORIES AND CREMATORIUMS...... 82
COMPONENT G: SECURITY AND SAFETY...... 84
COMPONENT H: SPORT AND RECREATION ...... 85
COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES ...... 87 3.22 EXECUTIVE AND COUNCIL ...... 87 3.23 FINANCIAL SERVICES ...... 90 3.24 HUMAN RESOURCE SERVICES ...... 92
COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD ...... 95
CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE ...... 120
(PERFORMANCE REPORT PART II) ...... 120
COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL ...... 120 4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES ...... 120
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COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE ...... 123 4.2 POLICIES ...... 124 4.3 INJURIES, SICKNESS AND SUSPENSIONS ...... 125 4.4 PERFORMANCE REWARDS ...... 126
COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ...... 126 4.5 SKILLS DEVELOPMENT AND TRAINING ...... 127
COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE ...... 129 4.6 EMPLOYEE EXPENDITURE ...... 129
CHAPTER 5 – FINANCIAL PERFORMANCE ...... 130
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE ...... 130 5.1 STATEMENTS OF FINANCIAL PERFORMANCE ...... 131 5.2 GRANTS ...... 132 5.3 ASSET MANAGEMENT ...... 133 5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS ...... 134
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET ...... 139 5.5 CAPITAL EXPENDITURE ...... 140 5.6 SOURCES OF FINANCE ...... 141 5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS ...... 143
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS ...... 144 5.9 CASH FLOW ...... 145 5.10 BORROWING AND INVESTMENTS ...... 146 5.11 PUBLIC PRIVATE PARTNERSHIPS ...... 148
COMPONENT D: OTHER FINANCIAL MATTERS ...... 148 5.12 SUPPLY CHAIN MANAGEMENT ...... 148 5.13 GRAP COMPLIANCE ...... 149
CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS ...... 150
COMPONENT B: AUDITOR-GENERAL OPINION YEAR 0 (CURRENT YEAR) ...... 151 6.2 AUDITOR GENERAL REPORT YEAR 0 ...... 151
GLOSSARY ...... 187
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APPENDICES...... 190
APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE ...... 190
APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES ...... 192
APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE ...... 193
APPENDIX E – WARD REPORTING ...... 194
APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE ...... 195
APPENDIX K (i): REVENUE COLLECTION PERFORMANCE BY VOTE ...... 195
APPENDIX K (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE ...... 198
APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG ...... 200
VOLUME II: ANNUAL FINANCIAL STATEMENTS ...... 201
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CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
COMPONENT A: MAYOR’S FOREWORD
Mayor’s Foreword
Let me be profoundly grateful to share with you the milestone of 2018/19. I am humbled by the trust that have bestowed upon our term of Council by our communities, despite been aware of the challenges our municipality face, but also alive to the fact that our people are filled with hope for a better tomorrow.
I, as the Mayor responded to a number of Wards, concerning service delivery issues relating to housing, status of our internal roads, refuse removals, electricity supply, sewer challenges, schools and others. The continuous community protests that led to the burning of the municipal properties came as a warning sign to assess our state of readiness in responding to service delivery matters. Our response time to challenges that caused sleepless night to our communities needed to be treated differently, so that we improve the lives of our people.
The municipality obtained a qualified audit opinion from the Office of the Auditor- General for the financial year ended 30 June 2019. The challenges raised in the main were, amongst others:
a) Unauthorised and fruitless and wasteful expenditure, which were not dealt with in accordance to with section 32 of MFMA; b) Electricity material losses, resulting from illegal connections, meter tempering and incorrect metering; c) The challenges with reporting on annual performance report with respect to reported performance information against predetermined objections; d) The integrated development plan did not include a financial plan as required by section 26 (h) of the MSA; e) Money owed by the municipality was not always paid within 30 days as required by section 65(2)(e) of the MFMA; and f) Non-compliance with SCM regulation 17 (e) and (c).
Our constitutional obligation to provide the democratic and accountable governance remains a fundamental pillar to our people. Governance is a key aspect of local government and among others, it includes holding of council meetings, public participation, accountability and feedback of Councillors to their communities.
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Our constitution intends to reinforce accountability in all spheres of government, particularly in local government where our people depends for basic service delivery.
In 25 years of democracy, our municipality has made a great deal of progress in terms of deepening democracy by ensuring full representation of all wards in any public consultation process. This is laudable, because, in this way, we give voices to these diverse needs and interests within a local interest. But the acid test will be the extent to which ordinary people at local level are able to take decisions on the way their governance is managed.
The mobilisation of stakeholders and community’s consultation is one of the local government strategic objectives and demands to intensify its interaction and consultation.
The Back to Basics approach therefore puts people first, promotes community engagement and ensures the delivery of basic services, good governance and sound financial management.
There are seven habits of effective municipalities and one of them quoted “Communication and public consultation as the cornerstone of effective municipalities. They highlight challenges experienced, update on progress and invite suggestions from residents”
It also aims to ensure that public representatives are constantly in touch with the people, listen and respond speedily to their concerns and needs.
I, as the Mayor and Councillors, acknowledge and commend the officials who are committed and dedicated professionals, and who perform their tasks faithfully. I further noted that there are officials whose indifference to the needs and concerns of Tswaing Local Municipality’s citizens has led to deterioration in the quality of services and assistance rendered. I, therefore, call upon all the Officials to serve our communities with commitment, diligence, humility, respect and honesty and to ensure that they are effective agents of transformation.
______
COUNCILLOR L.D MALWANE MAYOR
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COMPONENT B: EXECUTIVE SUMMARY
1.1. MUNICIPAL MANAGER’S OVERVIEW
In terms of section 121 of the Municipal Finance Management Act (MFMA) read together with section 46 of municipal system act 32 of 2000, regulates the manner in which the accounting officer should prepared both the annual report and performance report. In compliance with the above-mentioned sections of legislature, itis indeed an honour and privilege for management to join her worship the Mayor, ourpolitical head, the honourableSpeaker and the entire Council to present this annual report to all our stakeholders.
During the 2018/2019 financial year, the Tswaing Local Municipality continued to conduct it’s planning and business operations in line with the objects of local government in terms of the Constitution of the Republic of South Africa, which are as follows:
To provide democratic and accountable government for local communities
To ensure the provision of services to communities in a sustainable manner
To promote social and economic development
To promote a safe and healthy environment, and
To encourage the involvement of communities and community organisations in the matters of local government.
The municipality performed its duties as required in terms of section 152 of the Constitution of the Republic of South Africa of 1996.To this end the audit for the financial year under review was conducted from August to end November 2019 by the Office of the Auditor-General. The audit outcome, however, is the qualified opinion for the third financial year. The municipality needs to improve on issues raised in the audit report by compiling post audit action plan to address the challenges raised the Auditor-General. Some of the issues raised are:
a) Stabilising the management of the institution by filling vacant positions of two senior managers, namely, Director Technical and Director Community Services respectively b) Appointment of critical positions at Budget and Treasury Office (BTO) c) Limiting reliance of work of BTO on consultants d) Implementing stringent internal control procedures and complying of financial prescripts e) Implementing consequence management.
The municipality was placed under administration by the Executive Committee of the Province (EXCO) through the Department of Cooperative Governance and Traditional Affairs in May 2019. The Administrator was appointed and started the work in July 2019. The working together with the administrator has assisted the municipality to put in some stringent
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discipline in the workplace. The processes of implementing change management has already started in the beginning of the year 2020.
Management would like to take this opportunity to thank the council,EXCO,MPAC as well as staff members for their continued dedication and alertness to the work beforehand and all other external partners such as,Provincial Treasury, COGTA,the Auditor General of South Africa and all other sector departments who worked with us in 2018/2019 financial year.
We have started with the implementation of Post Audit Action Plan already. This shall enable us to face the year eagerly, to transform the systems that will assist us to bring about change. There’s still some work in regard to electricity and water, especially the distribution losses which are currently high. Addressing the overall revenue is an ongoing process.
In conclusion, management hereby presents the 2018/2019annual report as a reflection of all the activities that were carried out by Tswaing Local Municipality during the year 2018/19.
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M.I MORUTI MUNICIPAL MANAGER
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1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW
INTRODUCTION TO BACKGROUND
Tswaing Local Municipality is one of the five local municipalities in the area of jurisdiction of Ngaka Modiri Molema District Municipality. The municipality’s head office is located in Delareyville. The population of the municipality was estimated at 130 478 in 2010 with 30 582 households.
Tswaing Local Municipality provides all the basic services in its area of jurisdiction except for water and sanitation, which are provided by the Ngaka Modiri Molema District Municipality. The data from Global Insight Regional Explorer, 593 indicate that there has been tremendous improvement in the allocation of services to communities in TswaingLocalMunicipality, especially housing, water, electricity and sanitation. A brief synopsis of basic service delivery improvements is contained in the table below:
Service Level of Service Status in 2000 2010 status
Water Piped water inside 3452 households 6 167 households dwelling
Sanitation Flush toilets 6 939 households 10 894 households
Housing Formal Houses 17 961 23 676
Table 1: Basic Service Improvements-2000-2010. (Source: Global Insight Regional Explorer, 2011)
With regard to electricity the figures show that while 39% of households had access to electricity in 2000, the percentage rose to 77% in 2010.
Despite these positive results, the municipality still faces a challenge with regard to backlogs in the provision of basic services of water, electricity, sanitation, roads and street lighting. The main reason for the increase in service delivery is that the municipality has experienced an increase in the population during the last ten years, partly due to evictions in the surrounding farms and partly because of the natural growth of the population.
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The adopted vision and mission of council are:
VISION
“To be a leading municipality in the North-West Province in sustainable service delivery by 2030”
MISSION
To deliver sustainable municipal services by maximally utilizing our human,
Financial and technical resources through participatory democracy
In developing this document, the municipality undertook consultative meetings at all the 15 wards of the municipality to solicit the views of the community on matters that should be prioritized during the term of this council. After listening to communities and analysing their submissions, the following were selected as the priorities of the municipality: Job Creation, Water, sanitation, Housing, Electricity, Roads and Street lighting.
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The pyramid above indicates that population number of those aged between 00-29 years were almost the same with males being slightly more, for those aged 30-34, the number of females were slightly more compared to those aged 25-29 whilst the number of males was almost the same as those aged 25-44years males were slightly less than females. Those aged 45 – 49, the number of males grew slightly compared to those aged 40-44 whilst females were almost the same number as those aged 40 – 44.
The number of both males and females was almost 2500 for those aged 50 – 59 the number of males and females were the same but slightly less compared to those aged 50 – 54. For those aged 60 -64 and 65 - 69, the number of both males and females were slightly less than those aged 55 – 59 and 60 – 64 respectively with females being more than males. Compared to those aged 65 – 69, in the population aged 70 – 74, females were more than male and for those aged 75 and above, females were more than males.
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T1.2.3 According to the graph above there was an increase in the number of formal and very formal Dwellings by 8555 and general decrease in the number of informal, traditional and other dwellings between the year 2000 and 2010. The graph indicates that informal settlements were significantly reduced or eliminated in the municipal area.
Between 1996 and 2010 the number of people living in poverty has steadily increased with about 35%. The number of people living in poverty grew from just under 60 000 in 1996 to slightly above 90 000 in 2010.
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The information in the graph above indicates that, Tswaing Municipality experienced increase of 346 between 2000 and 2010 in the number of unemployed people with unemployed males being 320 more than unemployed females in 2010.
According to figure 9, there has been a steady increase in the number of people infected with HIV in Tswaing Local Municipality for the period 2000 to 2010. There were 7 841 estimated cases of HIV in 2000, while in 2010 this figure increased to 13 630, which is an increase of 5789.
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According to the figure 4 above, the municipality experienced an increase in the level of education among its population from 2000 to 2010. There were about 15 000 people with grade 7 to 9 in 2000 and in 2010 this number increased to about 20 000. The number of people with matric and post matric qualifications also increased from the 2000 to 2010, for an example there was an increase of about 5 000 in the number of people with matric only during the period under review and an increase of about 1000 in people with matric and certificates.
The information provided here indicates that there was positive development in TswaingLocal Municipality in the level of education of the population, meaning that more and morepeople are getting education
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Overview of Neighbourhoods within Tswaing Local Municipality Settlement Type Households Population Towns Delareyville 4000 10630 Sannieshof 3000 2016 Ottosdal 4200 8084
Sub-Total 11200 20730 Townships Atamelang 5189 12189 Agisanang 2800 9000 Letsopa 10000 17488
Sub-Total 17989 38677 Rural settlements Villages 39820 54323
Sub-Total 39820 54323 Informal settlements Delareyville Ext 8 2386 Iraq Letsopa 705
Sub-Total 3091 0 Total 69009 113730 T 1.2.6
Natural Resources Major Natural Resource Relevance to Community The municipality is reletively poor in terms of Natural resources
T 1.2.7
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1.3. SERVICE DELIVERY OVERVIEW
Proportion of households with access to basic services 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% Year -3 Year -2 Year -1 Year 0
Electricity service connections Water - available within 200 m from dwelling Sanitation - Households with at leats VIP service Waste collection - kerbside collection once a week
T1.3.2
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1.4. FINANCIAL HEALTH OVERVIEW
Financial Overview: Year 2018/19
Details Original budget Adjustment Budget Actual Income: Grants 158810000 157516000 138527300 Taxes, Levies and tariffs 95346000 91519000 83154779 Other 4841000 5019000 6117898 Sub Total 258997000 254054000 227799977 Less: Expenditure 200323000 194179000 267124712 Net Total* 58674000 59875000 -39324735 * Note: surplus/(defecit) T 1.4.2
Operating Ratios Detail % Employee Cost 48% Repairs & Maintenance 0,65% Finance Charges & Impairment 5,95% T 1.4.3
Total Capital Expenditure: Year -2 to Year 0
Detail Year -16/17 Year 17/18 Year 18/19 Original Budget 21155475 39730000 26700000 Adjustment Budget 27939000 39730000 26700000 Actual 19655474 31446474 26700000 T 1.4.4
T1.4.5 1.5. STATUTORY ANNUAL REPORT PROCESS
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No Activity Timeframe . Consideration of next financial year’s Budget and IDP process plan. Except for the legislative content, the process plan should confirm in- 1 year reporting formats to ensure that reporting and monitoring feeds seamlessly into the Annual Report process at the end of the Budget/IDP implementation period July Implementation and monitoring of approved Budget and IDP 2 commences (In-year financial reporting). 3 Finalisedthe 4th quarter Report for previous financial year 4 Submit draft year 0 Annual Report to Internal Audit and Auditor-General 5 Municipal entities submit draft annual reports to MM Audit/Performance committee considers Draft Annual Report of 6 municipality and entities (where relevant) 8 Mayor tables the unaudited Annual Report Municipality submits draft Annual Report including consolidated annual August 9 financial statements and performance report to Auditor General Annual Performance Report as submitted to Auditor General to be 10 provided as input to the IDP Analysis Phase Auditor General audits Annual Report including consolidated Annual September 11 Financial Statements and Performance data – October Municipalities receive and start to address the Auditor General’s 12 comments Mayor tables Annual Report and audited Financial Statements to 13 November Council complete with the Auditor- General’s Report 14 Audited Annual Report is made public and representation is invited 15 Oversight Committee assesses Annual Report 16 Council adopts Oversight report 17 Oversight report is made public December 18 Oversight report is submitted to relevant provincial councils Commencement of draft Budget/ IDP finalization for next financial year. 19 January Annual Report and Oversight Reports to be used as input T1.7.1
CHAPTER 2 – GOVERNANCE
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INTRODUCTION TO GOVERNANCE
INTRODUCTION The Tswaing Municipality is committed to transparent and accountable governance. The broad range of public participation programmes and processes, especially related to its IDP and Budget, bears testimony to the institution’s commitment to involve its communities in its planning and decision-making processes.
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE The Council of the Tswaing Municipality is the highest decision-making authority in the institution. It guides and instructs the administrative component, which implements the decisions taken by the political component.
2.1 POLITICAL GOVERNANCE 2.1.1 Council The Council has 29 seats (14 Proportional Representative (PR) Councillors and 15 Ward Councillors).
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POLITICAL STRUCTURE
MAYOR Cllr. Lydia DimakatsoMalwane Presides at meetings of the duties, including any ceremonial functions and exercises the powers delegated to the Mayor by the municipal Council or the executive committee (EXCO).
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SPEAKER Cllr. Phemelo Eunice Lobelo Presides over Council meetings. Ensures that the Council meetings are conducted in accordance with the rules and order and ensures compliance in the Council and Council committees.
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MAYORAL COMMITTEE/ EXECUTIVE COMMITTEE They report from the other committees of the Council and which receives reports from the other committees of the Council, and which must forward these reports together with its recommendations to the Executive Committee of Council (EXCO) when it cannot dispose of the matter and identify the needs of the municipality. Review and evaluate (1).The needs in order of priority. (2). Evaluate progress against key performance. (3). Monitor and oversee all the functions that is delegated to management.
Cllr. Tickey Elizabeth Chabanku – Chairperson of Technical Services Portfolio Committee
Cllr. Mbuyiselo Eric Booi – Chairperson of Corporate Administration and
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Finance Portfolio
Cllr. Thabo Albert Morei – Chairperson of Community Services Portfolio
Cllr. Kagiso Mangwejane– Chairperson of Town Planning Portfolio
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WARD COUNCILLORS
NAME AND SURNAME CONTACT WARD AND AREAS NUMBERS
Ward 01 Cllr.Lebogang Bome 072 249 7065 Deelpan Witpan 1 and 2 Doornbult farms Ward 02 Cllr.SehularoVincent Moremedi 0789201122 Ga – Khunwana
Ward 03 Cllr.MatshidisoMoreo 0633165805 Sione Mofufutso 1 & 2 Majeng Shaleng Morena Ward 04 Cllr.KeatlaretseBlou 083 3650794 Kopela Doornlaagte Diretsane Thawane Geluk Cllr.SolomonLerumo 078 390 9437 Ward 05 Ganalaagte Rakgwedi Rooidak Line Cllr. Abram Modise 0720564299 Ward 06 Vrischgewagcht Manamolela Konopo Cllr.Borman Phutiagae 076 5748738 Ward 07 Atamelang Middleton A,B,C Bochraand farm Cllr.NkagisangMolehabangwe 0792232754 Ward 08 Sannieshof Cllr.TickeyElisabeth Chabanku 083 3585608 Ward 09 Geysdorp Delareyville Ext 7 & 8 Cllr. SilasTsholo 083 793 1494 Ward 10 Sannieshof Cllr.MbuyiseloBooi 083 793 1517 Ward 11 Ottosdal Cllr. SamLetlakane 072 965 8969 Ward 12 Ottosdal
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Cllr. ThembinkosiMabovu 082 669 2706 Ward 13 Ottosdal Cllr.PuseletsoMokoto 083 411 7804 Ward 14 Delareyville Jachkraal farm Leeuspruit Cllr. David Mthimkulu 083 793 1531 Ward 15 Ottosdal
PR COUNCILLORS
NAME AND SURNAME POLITICAL PARTY CONTACT NUMBERS
Cllr. Joseph Makalela African National Congress 0829549467
Cllr. DimakatsoMalwane African National Congress 0834622630
Cllr. PhemeloLobelo African National Congress 082 967 0439
Cllr. Mothusi Thobegane Democratic Alliance 0719206762
Cllr. Piet Miga Democratic Alliance 0839529886
Cllr. Kagiso Mangwejane Democratic Alliance 0734437576
Cllr. Elsie Kgasu Economic Freedom Fighters 0782434407
Cllr. Linda Taljaard Democratic Alliance 082 559 8931
Cllr. ClerenceSeduku Economic Freedom Fighters 083 775 7511
Cllr. Hendrik Botha Freedom Front+ 0844045746
Cllr. Baby Madede Economic Freedom Fighters 0781392514
Cllr.Elisa Sedumoeng African National Congress 0764226511
Cllr. Thabo Morei African National Congress 0780278210
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Cllr.Soret Viljoen Democratic Alliance 0836730907
TRIBAL AUTHORITY
KGOSI MOSHOETTE OF BAROLONG BOO RATLOU BA GA SEITSHIRO
KGOSI JEFF MOLETE OF BAKOLOBENG
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MUNICIPAL PUBLIC ACCOUNTS COMMITTEE
TSWAING MUNICIPALITY MPAC STATUS AS AT JUNE 2019
BACKGROUND
The Municipal Public Accounts Committee (MPAC) was established by Council in September 2011 in terms of: Section 79, Municipal Structures Act. MFMA, Act No. 56 of 2003 – Circular No. 32 and other related legislation. These pieces of legislation provide for this Committee to render oversight function and advise Council on issues of legislative compliance and the efficiency and effectiveness of the delivery of municipal programs.
The municipal Council that was electedin 2011, inherited a municipality placed under administration section 139, Constitution of the Republic of South Africa, 1996. It was critical for the Council to prioritize transparent, accountable and cooperative governance. MPAC was one of the many structures legislatively required to provide the necessary checks and balances in the affairs of our municipality. After the establishment of this Committee the mandate and functions of the committee were clear. The Committee attended number of empowerment workshops to enable it to execute its responsibilities with ease and certainty. Nevertheless, our empowerment and recognition were only limited to workshops and nothing was provided in terms of institutional arrangement. This Committee can therefore be allowed to prevail only on the occasion of tabling an oversight report.
Members of the Municipal Public Accounts Committee:
(ANC 6councillors and DA 1, EFF 1councillor)
1. Cllr. Thembinkosi Abram Mabovu(Chairperson) 2. Cllr.M Thobegane 3. Cllr. S Moremedi 4. Cllr. G Kgasu 5. Cllr. S. Letlakane 6. Cllr. K Blou 7. Cllr. B Phutiyagae 8. Cllr.S Tsholo
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2.2 ADMINISTRATIVE GOVERNANCE
TOP ADMINISTRATIVE STRUCTURE
MUNICIPAL MANAGER Mr. Manoto Isaac Moruti 1.Provide and manage Corporate, Technical, Financial and Community Services 2. Render strategic support. 3. Manage development, planning and protection services.
DIRECTORS
Acting Director Technical Services Department. Mr GoitsemodimoMokgetho 1. Manage the sanitation, parks, and sewerage division in accordance with IDP. 2. Manage the mechanical & electrical division in accordance with IDP. 3. Manage the water, roads and storm water division in accordance with the IDP. 4. Render administrative support to the department.
Acting DirectorCommunity Services Department. Mr Saddam Moeti 1. Manage public safety and transportation services. 2. Manage licensing, traffic control and law enforcement. 3. Oversee land use management and housing. 4. Library services.
DirectorBudget and Treasury Office. Mr RamotsekiMogoje 1. Manage revenue & collection policies and procedure. 2. Render budget and financial statements services. 3. Manage expenditure and credit control mechanisms.
Director Corporate Administration and Human Resources. Ms VashtyNdongeni 1.To provide office auxiliary services to the municipality. 2. Provide human resource, administrative management and legal support to the municipality.
These listed above officials are on fixed term performance contracts reporting to the Municipal Manager under the Municipal Systems Act Section 57.
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COMPONENT B: INTERGOVERNMENTAL RELATIONS
INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS
There has been a slight improvement regarding governance and intergovernmental relations. The improvement is that sector departments are attending consultative meetings and submitting their planned projects and progress reports on time although in terms of delegation to meetings, they send junior officials. Furthermore, inter-governmental activities are coordinated between the municipality and different government sectors.
2.3 INTERGOVERNMENTAL RELATIONS
NATIONAL INTERGOVERNMENTAL STRUCTURES All national government departments.
PROVINCIAL INTERGOVERNMENTAL STRUCTURE All provincial departments.
RELATIONSHIPS WITH MUNICIPAL ENTITITIES The municipality does not have any entities.
DISTRICT INTERGOVERNMENTAL STRUCTURES All government departments at the district level.
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COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION
OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION
Note: MSA section 17 (2) requires a municipality to establish and organise its administration to facilitate a culture of accountability amongst its staff. Section 16 (1) states that a municipality must develop a system of municipal governance that compliments formal representative governance with a system of participatory governance. Section 18 (a) - (d) requires a municipality to supply its community with information concerning municipal governance, management and development.
T 2.4.0
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2.4 PUBLIC MEETINGS
DATE TIME WARDS VENUES OBJECTIVES RESPONSIBILITY
06\11\2018 10h00 Ward 8
Agisanang
Sannieshof Mayor, Exco Members & Agisanang hall Councillors Ward 10 Service Delivery Agisanang
Zoihuis
Verdien
Vermas
08\11\2018 10h00 Ward 11,12,13,15 Letsopa community hall Service Delivery Mayor, Exco Members & Letsopa Councillors
Gerdeu
Boschrand
Uitschot
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DATE TIME WARDS VENUES OBJECTIVES RESPONSIBILITY
08\11\2018 10h00 Holfontein Letsopa community hall Service Delivery Mayor, Exco, Members& Council Gestoptefontein
Palmietkuil
Paauwkop
Zoutpan
Boschbuilt farm
13\11\2018 10H00 Ward 1 Deelpan community hall Service Delivery Mayor, Exco Members & Deelpan Councillors Witpan 1and 2
14\11\2018 10h00 Ward 09 and 14 Delareyville community hall Service Delivery Mayor, Exco Members & Delareyville Ext 7,Ext 9,Ext 8 Councillors and Skuurlike
Jachtkraal farm
Leeuspruit
Damascus farm
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DATE TIME WARDS VENUES OBJECTIVES RESPONSIBILITY
16/11/2018 10h00 Ward 2 KhunwanaTribalhall Service delivery Mayor, Exco Members & Khunwana Councillors
20/11/2018 10h00 Ward 3 Shaleng community hall Service Delivery Mayor, Exco Members & Mofufutso 1 and 2 Councillors Shaleng , Morena ,
21/11/2018 14h00 Ward 4 Kopela Tribal Office Service Delivery Mayor, Exco Members & Kopela Councillors Direetsane
Thawane
Golok
Ntuane
22/11/2018 10h00 Ward 5 SpMolefeHall Service Delivery Mayor, Exco Members & Maloka Councillors Rakgwedi 1and2
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DATE TIME WARDS VENUES OBJECTIVES RESPONSIBILITY
Mandela park
Line and Rooidak
Skuurlike
23/11/2018 10h00 Ward6 Vrischgewagte hall Service Delivery Mayor, Exco Members & Konopo Councillors Vrischgewagte
26/11/2018 10h00 Ward 7 Middleton B hall Service Delivery Mayor, Exco Members & Middleton A and A Councillors Atamelang
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WARD COMMITTEES
FUNCTIONALITY OF WARD COMMITTEES FOR THE YEAR ENDED JUNE 2019.
1. Functionality of Ward Committees. - Not All Ward Committees are intact and operational
- 2. Reporting template. The reporting template is developed to assist Ward Committees secretaries and the individual Ward Committee members to report on their activities. - The first reporting template is to be used by Ward Committee secretary for his/her quarterly consolidation report to the Speakers office. - The second reporting template is to be used by individual Ward Committee member for their monthly report to the Ward Committee meeting. - The third reporting template is to be used specifically for items or issues that require the Speaker, the Mayor, Municipal Manager, Director or Municipal Council’s attention to resolve.
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3. Gender composition. - In all ward committees’ gender is well represented, 50% male and 50% female. 4. Administrative support. - The municipality is giving the Ward Committees only a monthly stipend. 5. Ward committee/ward meetings. - Monthly meetings are not being consistently held by ward councillors and reports are not being forwarded monthly to the Speakers office. - Not all CDW’s are invited to ward committee meetings and they are participating in all programs. - Venues/Offices remain a challenge in all ward committees. - Ward committees are being involved in all processes of public participation. - One official is appointed to coordinate ward committees. - Section 5 of Tswaing Local Municipality’s Policy on Ward Committees outlines duties and powers of the ward committees.
6. Community involvement. - No Communication Strategy/Policy was development. - The programme is on process. - Not all portfolio committees interact regularly with this sector.
2.5 IDP PARTICIPATION AND ALIGNMENT
IDP Participation and Alignment Criteria* Yes/No Does the municipality have impact, outcome, input, output indicators? Yes Does the IDP have priorities, objectives, KPIs, development strategies? Yes Does the IDP have multi-year targets? Yes Are the above aligned and can they calculate into a score? Yes Does the budget align directly to the KPIs in the strategic plan? Yes Do the IDP KPIs align to the section 57 Managers Yes Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes Were the indicators communicated to the public? Yes Were the four quarter aligned reports submitted within stipulated time frames? Yes * Section 26 of Municipal Systems Act 2000 T 2.5.1
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COMPONENT D: CORPORATE GOVERNANCE
OVERVIEW OF CORPORATE GOVERNANCE Government must harness the power of ethics which is assuming a new level of importance and power. Good corporate governance is about intellectual honesty and not just about sticking to rules and regulations. Connecting corporate governance with legislative risk management is important as guidelines to operate within the parameters of legislation.
The municipality was placed under administration by the Provincial Government in May 2019. The administration is in terms of section 139 (1)(b) of the Constitution of the Republic of South Africa. The municipality is facing financial challenges which resulted in the municipality incurring a deficit of R45 507 946 during the year ended 30 June 2019 and of that date the municipality’s current liabilities exceeded its current assets by R188 685 840.
The Local Community needs to trust their Municipality and Municipal Management will do what it is in their best interest and on the other hand Municipal management must listen to what its communities need through public participation. Good corporate governance should factor local government's levels of legislative compliance with executive - level compliance focused on establishing consistency and standards as an embedded process.
Tswaing Local Municipality gives attention to efficiency and benchmarking is conducted regularly against outputs to ensure implementation. The municipality comprehends the importance of risk and legislative risk management, along with the importance of integrated sustainability management and reporting structures. Tswaing Local Municipality strives towards conformance and performance, whilst always respecting stakeholder activism and participation. Risk assessment and management processes are key to effective governance although the municipality is unable to constantly monitors risks to ensure efficiency.
Municipality produces Annual Financial Statements which, together with the Annual Performance Report are audited by the Auditor-General. To prevent unnecessary complications the effectiveness of audits and their independence are ensured by a highly skilled and qualified team of auditors.
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2.6 RISK MANAGEMENT
RISK MANAGEMENT The Municipality did not have an effective risk management system during the financial year under review.
2.7 ANTI-CORRUPTION AND FRAUD
FRAUD AND ANTI-CORRUPTION STRATEGY The municipality has developed and adopted the fraud prevention policy. The fraud prevention strategy and framework have not been developed 2.8 SUPPLY CHAIN MANAGEMENT
OVERVIEW SUPPLY CHAIN MANAGEMENT
The Supply Chain Management (SCM) Policy was developed and approved by Council in March 2018. In terms of the SCM Regulations, the SCM Policy must be reviewed at least annually by the Accounting Officer. The current SCM Policy was reviewed and presented to Council for adoption together with the 2018/19 budget. Reporting on the implementation of the SCM Policy is not done on a quarterly basis. While the current SCM Policy caters for the provisions of Section 112 of the MFMA. The challenge is that SCM is not operating with a legally compliant structure hence compliance with the SCM implementing checklist becomes a challenge. Procurement and contract management of goods and services are done in contravention of the SCM regulation 17 (e) and (c) of the MFMA. The non-compliance of this regulation was also reported in the previous years’ audit. The bid adjudication committee was not composed in terms of SCM regulation 29 (2) of the MFMA. Attention should be given to the SCM unit of the municipality to ensure compliance with the legislation. Remedial action has to be taken to address the shortfall, i.e. the SCM Structure to be developed and approved by Council in principle, subject to the grading of the proposed posts.
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2.9 BY-LAWS
The municipality did not have reviewed by-laws in the year under review. Draft by-laws were only developed and reviewed in the second semester of the year 2019.
COMMENT ON BY-LAWS:
Note: MSA 2000 section 11(3)(m) provides municipal councils with the legislative authority to pass and implement by-laws for the betterment of the community within the terms of the legislation. T 2.9.2
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2.10 WEBSITES Municipal Website: Content and Currency of Material Documents published on the Municipality's / Entity's Website Yes / No
Current annual and adjustments budgets and all budget-related documents No All current budget-related policies No The previous annual report (Year 17/18) Yes The annual report (Year 18/19) to be published Yes All current performance agreements required in terms of section 57(1)(b) of the No Municipal Systems Act (Year 18/19) and resulting scorecards
All service delivery agreements (Year 18/19) No All long-term borrowing contracts (Year 18/19) No All supply chain management contracts above a prescribed value (give value) for No Year 18/19
An information statement containing a list of assets over a prescribed value that No have been disposed of in terms of section 14 (2) or (4) during Year 17/18
Contracts agreed in Year 0 to which subsection (1) of section 33 apply, subject to No subsection (3) of that section Public-private partnership agreements referred to in section 120 made in Year 18/19 No All quarterly reports tabled in the council in terms of section 52 (d) during Year 18/19 No Note: MFMA s75 sets out the information that a municipality must include in its website as detailed above. Municipalities are, of course encouraged to use their websites more extensively than this to keep their community and stakeholders abreast of service delivery arrangements and municipal developments.
COMMENT ON MUNICIPAL WEBSITE CONTENT AND ACCESS: The municipality has established its own website and it is operational. It is being updated in order to comply with legislation though there is a challenge as there is no communication unit in place.
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2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES
PUBLIC SATISFACTION LEVELS
The satisfaction survey was not conducted T2.11.1
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CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
INTRODUCTION The municipality managed to deliver services within the available resources encountering major challenges such as old infrastructure that have surpassed their lifespan. Operation and maintenance were negatively affected due to an unfunded Budget wherein tools and materials were not source timeously. Capital projects funded by MIG were implemented accordingly though there were challenges such as poor performance by contractors and delay in payment. Major service delivery was achieved with the support of Sector Departments as well as the district municipality.
The main service delivery challenges are in the water, sanitation, electricity roads and public transport services, however, the intervention on water and sanitation was made through Sedibeng Water board. This was as a result of the district municipality, which is the water service authority, inability to execute its functions. The funding allocated to Sedibeng Water was exhausted and not all challenges were addressed. Free basic electricity could not be implemented due to the financial challenges of Tswaing LM.
The capital projects financed through MIG of the internal roads, namely, construction of 1,5km of internal paving in Shaleng; construction of 1,5km of road and stormwater paving in Phelindaba/Agisanang Taxi Route and other three projects of the financial year 2018/19 were not completed in the financial year ended 30 June 2019. The funds were erroneously withheld by National Treasury hence the projects were not completed.
The municipality should ensure that the strategic objectives approved in the Service Delivery and Budget Implementation Plan (SDBIP) are consistent with the objectives reported in the annual performance report (APR). The audit conducted under review showed that the indicators and targets approved in the SDBIP were not consistent with the indicators and targets reported in the annual report and that changed made were not approved by Council. Sufficient audit evidence, in the form of portfolio of evidence, were not obtained as well to support what’s reported in the annual performance report. T3.0.1
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COMPONENT A: BASIC SERVICES
This component includes water; wastewater (sanitation); electricity; waste management; and housing services; and a summary of free basic services.
INTRODUCTION TO BASIC SERVICES Electricity Most of electricity is supplied by Eskom, at rural areas, on prepaid metering that has free basic services loaded monthly. Eskom has managed to cover most of the area of Tswaing LM with electricity supply in rural areas, villages andAtamelang. Tswaing LM is only supplying in Delareyville, Sannieshof and Ottosdal electricity to the consumers.
Refuse Removal Provision of refuse removal is only supplied to Delareyville, Sannieshof, Ottosdal and Atamelang. Refuse removal service is not rendered in townships and rural villages. The municipality does not have an Integrated Waste Management Plan to for proper maintenance of Landfill Sites as per legislative standards.
Roads & Storm water The Roads and Storm water section does not have employees, vehicles nor equipment to render the services. Blocked drains and a lot of potholes occur throughout Tswaing LM making roads unsafe and flooding a reality. Delareyville expanded in developed stands that produce high storm water run-off into the pan adjacent to Delareyville with no outlet. This shall have long lasting flooding potential for the lower laying area in Delareyville if a High Intensity of more than 50-year return period occurs. T 3.1.0
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3.1. WATER PROVISION
INTRODUCTION TO WATER PROVISION
The Ngaka Modiri Molema District Municipality is the Water Service Authority (WSA) which is responsible for provision of bulk water to the reservoirs. The district municipality provides bulk water to three towns and four townships. They have to ensure the water infrastructure is functioning efficiently. Bulk Water Supply shortage of infrastructure in urban areas and poor maintenance are responsible of the district municipality. When provision of water is a challenge the district municipalityassisting with provision of water-tankering services. Mostly poor maintenance of infrastructure results in water tinkering.
New extensions as well as old sections within rural villages encounter water supply shortages which is as a result ofpoor borehole maintenance, electricity cuts by Eskom for non-payment of accounts and the vast amount of illegal connections to the infrastructure that supply water to the reservoirs.
There are still in the region of 4000 households outside the RDP standard of maximum of 200m from water supply points.There is no water loss control system in place to accurately report on losses.
COMMENT ON WATER USE BY SECTOR
The water demand is rapidly growing, and no sufficient funding is available to keep track with growth over the past 20 years. All the water supply comes from boreholes that shall provide major challenges in drought years. Over-abstraction is common to keep track with the growing water needs of the Community. The recent drought affected the water levels in most areas of the municipality. T3.1.2.2
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Water Service Delivery Levels Households Year -3 Year -2 Year -1 Year 0 Description Actual Actual Actual Actual No. No. No. No. Water: (above min level) Piped water inside dwelling Piped water inside yard (but not in dwelling) Using public tap (within 200m from dwelling) 18006 18665 19325 19700 Other water supply (within 200m) Minimum Service Level and Above sub-total 18006 18665 19325 19700 Minimum Service Level and Above Percentage 74% 76% 78% 78% Water: (below min level) Using public tap (more than 200m from dwelling)
Other water supply (more than 200m from dwelling 6175 5881 5587 5585
No water supply Below Minimum Service Level sub-total 6175 5881 5587 5585 Below Minimum Service Level Percentage 26% 24% 22% 22% Total number of households* 24181 24546 24912 25285 * - To include informal settlements T 3.1.3
Households - Water Service Delivery Levels below the minimum Households Description Year -3 Year -2 Year -1 Year 0 Original Adjusted Actual Actual Actual Actual Budget Budget No. No. No. No. No. No.
Formal Settlements Total households 24181 24546 24912 25285 25285 25285 Households below minimum service level 0 0 0 0 0 0 Proportion of households below minimum service level 0% 0% 0% 0% 0% 0% Informal Settlements Total households 24181 24546 24912 25285 25285 25285 Households below minimum service level 6175 5881 5587 5585 5585 5585 Proportion of households below minimum service level 26% 24% 22% 22% 22% 22% T 3.1.4
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Access to Water 80 70 60 72 65 50 40 Year -2 30 20 Year -1 25 10 Year 0 0 Proportion of Proportion of Proportion of households with access households with access households receiving 6 to water points* to piped water kl free#
* Means access to 25 litres of potable water per day supplied within 200m of a household and with a minimum flow of 10 litres per minute # 6,000 litres of potable water supplied per formal connection per month T3.1.5
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Water Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets Year -1 Year 0 Target Actual Target Actual *Previous *Previous *Current Service Indicators Year Year Year (i) (ii) (iii) (iv) (v) (vi) (vii) Service Objective 001 Provision of water % of water network and 50% Achieved 50% 50% Achieved pumps maintained.
Provision of water Number of households 30 Not Achieved 30 household 25 household Achieved connected to water network as per application received Note: This statement should include no more than the top four priority service objectives, including milestones that relate to the blue water drop status as set out by the Water Affairs department. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
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Employees: Water Services Year -1 Year 0 Employees Posts Employees Vacancies Vacancies Job (fulltime (as a % of Level equivalents) total posts)
No. No. No. No. % 0 - 3 0 1 0 1 100% 4 - 6 4 5 5 0 0% 7 - 9 7 5 7 2 40% 10 - 12 0 0 0 0 0% 13 - 15 11 14 10 4 29% 16 - 18 0 0 0 0 0% 19 - 20 0 0 0 0 0% Total 22 25 22 7 28% Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. „senior management‟) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.1.7
Financial Performance Year 0: Water Services
Year -1 Year 0 Details Actual Original Adjustment Actual Variance to Budget Budget Budget Total Operational Revenue 6382066 6382066 5378725 -19% Expenditure: Employees 5253472 5646069 5646069 4888487 -15% Repairs and Maintenance 991011 3609134 3609134 2148564 -68% Other 8248547 447219 447219 446706 0% Total Operational Expenditure 14493030 9702422 9702422 7483757 -30% Net Operational Expenditure 14493030 3320356 3320356 2105032 -58% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.1.8
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COMMENT ON WATER SERVICES PERFORMANCE OVERALL:
Tswaing LM is under pressure from the community to receive better water service delivery. NMMDM as the WSA (Water Service Authority) does not have capacity to support the Local Municipalities regarding Integrated Planning and Implementation of Projects linked to the IDP. There is no Water Services Development Plan (WSDP), nor policies, by-laws and tariff structures governing to sustain itself. Projects are implemented in an ad-hoc basis and projects are not always timeously implemented within the financial year budgeted for.
Operations and maintenance are not done accordingly. This contributes to the fact that Tswaing LM is not financially sustainable with further expenditure on bulk water services in the name of NMMDM (WSA) that does not refund Tswaing LM for expenditures incurred.
The challenge in the Directive implementation is that NMMDM is not co-operating with Tswaing Local Municipality in the provision of water and sanitation.As a result, is this put a mammoth task of work on the shoulders of Tswaing Local Municipality to provide services sustainable services with the little resources. T3.1.10
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3.2 WASTEWATER(SANITATION) PROVISION
INTRODUCTION TO SANITATION PROVISION
There are still more than 7000 households not supplied with RDP standard of sanitation in both rural villages and urban areas. Tswaing LM is under pressure from the community to receive better sanitation service delivery. NMMDM as the WSA (Water Service Authority) does not work with the TswaingLocal Municipality regarding Integrated planning and implementation of projects linked to the IDP.
No Water Services Development Plan (WSDP), nor policies, by-laws and tariff structures governing bulk Services to sustain itself. Projects are implemented in an ad-hoc basis and projects are not always timeously implemented within the financial year budgeted for.
Currently with the major shortfall of bulk water in the urban areas, the waterborne sewer network cannot operate as designed without sufficient water. This creates major sewage blockages that leave the sewer network overflowing with major health risks to the community, especially the infants and older generation.
Ottosdal and Sannieshof conservancy sewage tanks are being serviced by two vacuum tanker trucks supplied by service provider. The townships are served with wastewater treatment plants by sewage pump stations in Ottosdal, Sannieshof, Delareyville and Atamelang operated by NMMDM. T3.2.1
Sanitation Service Delivery Levels *Households
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Year -3 Year -2 Year -1 Year 0 Description Outcome Outcome Outcome Actual No. No. No. No. Sanitation/sewerage: (above minimum level) Flush toilet (connected to sewerage) – – – – Flush toilet (with septic tank) – – – – Chemical toilet – – – – Pit toilet (ventilated) – – – – Other toilet provisions (above min.service level) 8309 11456 14603 10809 Minimum Service Level and Above sub-total 8309 11456 14603 10809 Minimum Service Level and Above Percentage 34.4% 46.7% 58.6% 42.7% Sanitation/sewerage: (below minimum level) Bucket toilet – – – – Other toilet provisions (below min.service level) 15872 13090 10309 14476 No toilet provisions 0 0 0 0 Below Minimum Service Level sub-total 16 13 10 14 Below Minimum Service Level Percentage 65.6% 53.3% 41.4% 57.3% Total households 24181 24546 24912 25285 *Total number of households including informal settlements T 3.2.3
Households - Sanitation Service Delivery Levels below the minimum Households Year -3 Year -2 Year -1 Year 0 Original Adjusted Description Actual Actual Actual Actual Budget Budget No. No. No. No. No. No. Formal Settlements Total households 24181 24546 24912 25285 25285 25285 Households below minimum service level 0 0 0 0 0 0 Proportion of households below minimum service level 0% 0% 0% 0% 0% 0% Informal Settlements Total households 24181 24546 24912 25285 25285 25285 Households ts below minimum service level 15872 13090 10309 14476 14476 14476 Proportion of households ts below minimum service level 66% 53% 41% 57% 57% 57% T 3.2.4
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WasteWater (Sanitation) Service Policy Objectives Taken From IDP Service Objectives Outline Service Year -1 Year 0 Targets Target Actual Target Actual *Previous *Previous *Current Service Indicators Year Year Year (i) (ii) (iii) (iv) (v) (vi) (vii) Service Objective 002 Sanitation 30 households 30 holds Achieve 30 30 connected to sewer connected households households Achieved network as per received to sewer application network as per application Sanitation 100% of wastewater 100% of Not 100% of 100% of Achieved network and treatment wastewater achieved wastewater wastewater plants maintained network and network and network and treatment treatment treatment plant plant plant Note: This statement should include no more than the top four priority service objectives, including milestones that relate to the green drop status as set out by the Water Affairs department. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
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Employees: Sanitation Services Year -1 Year 0 Job Employees Posts Employees Vacancies Vacancies (as Level (fulltime a % of total equivalents) posts) No. No. No. No. % 0 - 3 0 0 0 0 4 - 6 1 0 1 -1 7 - 9 5 9 2 7 78% 10 - 12 2 2 2 0 0% 13 - 15 18 40 16 24 60% 16 - 18 19 - 20 Total 26 51 21 30 59% Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. „senior management‟) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.2.7
Financial Performance Year 0: Sanitation Services
Year -1 Year 0 Details Actual Original Adjustment Actual Variance Budget Budget to Budget
Total Operational Revenue 7938654 7938654 9172909 13% Expenditure: Employees 3594045 3594045 3300534 -9% Repairs and Maintenance 2498820 2498820 1713297 -46% Other 208163 208163 202496 -3% Total Operational Expenditure 6301028 6301028 5216327 -21% Net Operational Expenditure 0 -1637626 -1637626 -3956582 59% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.2.8
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COMMENT ON SANITATION SERVICES PERFORMANCE OVERALL:
In general waterborne santitation services are directly linked to bulk water services. In case there is no bulk water services available the waterbourne sanitation systems shall fail dismally. The cost to run the sanitation systems is high and the health risk keeps on growing by time. Should it not be rectified, huge cost and health problems can lead to epidemic breakout of deseases. NMMDM does not have a five year sanitation eradication plan.
There is no Operational and Maintenance Masterplan or Capital Investment Plan available in place that can bring back an accceptable level of sanitation provision. Sanitation is not getting the necesarry attention from NMMDM and thus the Directive 38100 of Water Affairs are welcomed in the name of service delivery.
No VIP sanitation were implemented except for those that Human Settlements provided when constructing the RDP housing units. T3.2.10
3.3 ELECTRICITY
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INTRODUCTION TO ELECTRICITY
Tswaing Municipality is licenced in terms of Electricity Regulation Act 4 of 2006 for electricity distribution in three towns namely: Delareyville, Ottosdal and Sannieshof. Eskom is licenced to distribute in all villages and townships in the entire municipality. Out of 35689 households in the municipal area we have 5968 households provided with electricity by Tswaing LM and 20843 provided with electricity by Eskom. Distribution networks are mainly composed of wooden pole structures which are failing due to aging. Medium voltage switching equipment are of old technology and very unsafe to operate and thus requires replacement. General maintenance is impaired by unfunded budget and this deteriorates network conditions T3.3.1
Households - Electricity Service Delivery Levels below the minimum
Description Actual No. Formal Settlements Total households 35,689
Households below minimum service level 6,878
Proportion of households below minimum service level 19% Informal Settlements Total households 1,750
Households below minimum service level 8,628
Proportion of households below minimum service level 4,9%
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Electricity Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets Year -1 Year 0 Target Actual Target Actual *Previous *Previous Service Indicators Year Year *Current Year (i) (ii) (iii) (iv) (v) (vi) (vii) Service Objective 003 Provide Electricity / New household’s 30 Not 30 25 household Achieved Street Lighting electricity connection as households Achieved households connected per received applications connected connected Provide Electricity / % of regular maintenance 100% Not 20% of 20% of Achieved Street Lighting of streetlights regular Achieved streetlight streetlight maintenance Improvement Improvement of streetlights Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
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Employees: Electricity Services Year -1 Year 0 Job Employees Posts Employees Vacancies (fulltime Vacancies (as Level equivalents) a % of total posts) No. No. No. No. % 0 - 3 1 6 1 5 80% 4 - 6 2 6 2 4 67% 7 - 9 0 0 1 -1 10 - 12 1 0 2 -2 13 - 15 4 12 2 10 83% 16 - 18 19 - 20 Total 9 23 8 15 65% Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. „senior management‟) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.3.6
Financial Performance Year 0: Electricity Services
Year -1 Year 0 Actual Original Adjustment Actual Variance Details Budget Budget to Budget
Total Operational Revenue 33190 43433268 43433268 36927253 -18% Expenditure: Employees 596062 4301648 4301648 3451932 -25% Repairs and Maintenance 88717 19281 19281 18362 -5% Other 26217983 3795352 3795352 1529575 -148% Total Operational Expenditure 26902762 36873104 38308105 38106607 3% Net Operational Expenditure 26869572 -6560164 -5125163 1179354 656% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.3.7
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COMMENT ON ELECTRICITY SERVICES PERFORMANCE OVERALL:
The service performance on electrical sypply is becoming a mojor challenge due to poor maintenance hampered by development taking place and upgrades or refurbishment does not keep track with the demand. Especially the Circuit Breakers are more and more encountering trips due to overloads in Delareyville. Most of switchgears in Delareyville are Isolators that are without tripping facility and this intergrates faulty cirtcuits with healthy ones. In all three towns majority of our underground cables are old and some need uppgrade and others replacement due to drying impregnated insulation medium.
Old switchgear, transformers and MV cables need to be replaced, to ensure sustainable elctricity supply to the busineses and consumers, to sustain the economy of Tswaing as a whole. Increase of notified maximum demand (NMD) in Delareyville is applied for, in order to compensate and accommodate new development in the area. In Ottosdal the consumption have been for ever below the NMD and this has a negative impact and thus a reduction of NMD is applied for.
Operation and maintenance on MV an LV electrical network need to be done urgently otherwise the sustainability of the electricity supply shall be threatened.The shortage of staff, material, equipment and tools, as well as funds is affecting the supply of reliable, safe and uninterupted power supply. T3.3.9
3.4WASTE MANAGEMENT (This sectionincludes Refuse Collections, Waste disposal, Street cleaning and Recycling)
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INTRODUCTION TO WASTE MANAGEMENT T3.4.1
Tswaing Local Municipality provide refuse collection services in three (3) towns (Delareyville, Ottosdal and Sannieshof). Atamelang, Agisanang and Letsopa townships also enjoy the refuse collection services.
The refuse is transported to various landfill sites which are licensed and based in Delareyville, Sannieshof, Ottosdal and Atamelang. The landfill site in Agisanang is a challenge and must receive a serious attention. The municipality appointed a service provider to look for a suitable and alternative site in Sannieshof to relocate the current landfill site, but the situation is still a challenge due to suitable site for a landfill site.
Waste Management is one of the core activities in Local Government, hence the municipality tries within its limited resources to provide this service to the communities of Tswaing Local Municipality.
The Tswaing Local Municipality has increased access to basic services considerably over the last nine (9) years. About 60% of households receive weekly refuse removal within the municipality, in particular urban areas.
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Waste Management Service Policy Objectives Taken From IDP Service Objectives Outline Service Year -1 Year 0 Targets Target Actual Target Actual *Previous Year *Previous Service Indicators Year *Current Year (i) (ii) (iii) (iv) (v) (vi) (vii) Service Objective 004 To improve the quality Number of households 3153 household Achieved 10 159 10159 Achieved and quantity of with access to refuse households households municipal waste removal management Municipal health Number of households 10159 Achieved 10 159 10 159 Achieved services in terms of with access to solid household households household waste management waste removal Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
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Financial Performance Year 0: Solid Waste Management Services
Year -1 Year 0 Details Actual Original Adjustment Actual Variance Budget Budget to Budget
Total Operational Revenue 7961 9769130 9769130 10580799 8% Expenditure: Employees 5766093 6001735 6001735 6074094 1% Repairs and Maintenance 103669 204759 204759 168045 -22% Other 78719 329833 329833 196397 -68% Total Operational Expenditure 5948481 6536327 6536327 6438536 -2% Net Operational Expenditure 5940520 -3232803 -3232803 -4142263 22% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.4.7
Financial Performance Year 0: Waste Disposal and Other Services
Year -1 Year 0 Details Actual Original Adjustment Actual Variance to Budget Budget Budget Total Operational Revenue 0 0 0 0 0% Expenditure: Employees 0 0 0 0 0% Repairs and Maintenance 0 0 0 0 0% Other 0 0 0 0 0% Total Operational Expenditure 0 0 0 0 0% Net Operational Expenditure 0 0 0 0 0% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.4.8
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COMMENT ON WASTE MANAGEMENT SERVICE PERFORMANCE OVERALL:
The municipality is trying its level best to perform this function with very limited resources and obsolete machinery. Landfill sites are fenced with concrete, but vandalism is a challenge. A new organisational structure caters for a waste management unit, which will positively impact on the performance. The unregistered informal recyclers are played a role in clearing some scrap around the municipality. The situation is not satisfactory in some townships but cleaning campaigns with community members makes the situation better. The municipality intend involving both provincial and national departments for extra support to improve the situation T3.4.10
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3.5 HOUSING
INTRODUCTION TO HOUSING During the 2018/19 Financial Year, the Department of Local Government and Human Settlement in collaboration with the municipality implemented housing projects in the following areas: Witpan Deelpan T 3.5.1
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Housing Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets Year -1 Year 0 Target Actual Target Actual *Previous *Previous Service Indicators Year Year *Current Year (i) (ii) (iii) (iv) (v) (vi) (vii) Service Objective 005 Promote spatial Number of hectares of 8 Hectares Not 2 Hectors of 6 hectares of Achieved integration municipal land released of municipal Achieved municipal municipal land for human settlements land land release release for development released for Human human settlement settlement development. development
Facilitate the Informal settlement 8 informal Achieved 8 informal 2 informal Achieved provision of formalised settlements settlement settlement housing service formalised formalised
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
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Financial Performance Year 0: Housing Services
Year -1 Year 0 Details Actual Original Adjustmen Actual Variance to Budget t Budget Budget Total Operational Revenue 1490717 1059044 1059044 1117455 5% Expenditure: Employees 2886827 3744201 3744201 2155738 -74% Repairs and Maintenance 0 0 0 0 0% Other 43851 4766609 4766609 2161681 -121% Total Operational Expenditure 2930678 8510810 8510810 4317419 -97% Net Operational Expenditure 1439961 7451766 7451766 3199964 -133% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.5.5
COMMENT ON THE PERFORMANCE OF THE HOUSING SERVICE OVERALL:
Function of theDepartment of Cooperative Governance and Human Settlement Comment [IM1]: T3.5.7
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3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT
INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT
1. AIMS AND OBJECTIVES
The objective of the indigent support is to ensure the following:
1.1 The provision of basic services to the community in a sustainable manner, within the financial and administrative capacity of the council and to provide procedures and guidelines for the subsidization of basic service(s) charges to its indigent households, using the council’s budgetary provisions received from central government in accordance with prescribed policy guidelines.
1.2 The council also recognizes that many of the residents can simply not afford the cost of full provision and for this reason the council will endeavour to ensure affordability through setting tariffs in terms of the council’s tariff policy, which will balance the economic viability of continued service delivery and determining appropriate service levels.
1.3 This policy aims to address the key issues and challenges of indigents. The strategic aim is to create an enabling environment in which the objectives of revenue generation can be realized, given that many of the residents can simply not afford the cost of full provision of services.
1.4 Provide procedures and guidelines for the subsidization of basic service(s) charges to indigent households, using the council’s budgetary provisions received from central government in accordance with prescribed policy guidelines.
1.5 Established a fair and equitable common Indigent Policy throughout the Tswaing Local Municipality.
1.6 Facilitate implementation of effective program to assure free services to those that cannot afford it, while eliminating the booking of these services as outstanding debtors.
1.7 Provide a framework to assist the municipality in identifying those who qualify for the limited basic services and assuring that the limits are placed as needed
3.6.1
Free Basic Services To Low Income Households
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Number of households Households earning less than R1,100 per month Total Free Basic Free Basic Free Basic Free Basic Refuse Water Sanitation Electricity Total Access % Access % Access % Access % Year -2 100,000 18,000 12,000 67% 10,000 56% 13,000 72% 7,000 39% Year -1 103,000 18,500 13,000 70% 11,000 59% 14,500 78% 8,000 43% Year 0 105,000 19,000 15,000 79% 12,000 63% 16,100 85% 9,000 47% T 3.6.3
Financial Performance Year 0: Cost to Municipality of Free Basic Services Delivered Services Delivered Year -1 Year 0 Actual Budget Adjustment Actual Variance to Budget Budget Water 200 244 250 248 2% Waste Water (Sanitation) 220 240 250 245 2% Electricity 100 120 130 135 11% Waste Management (Solid Waste) 105 110 120 125 12% Total 625 714 750 753 5% T 3.6.4
COMMENT ON FREE BASIC SERVICES AND INDIGENT SUPPORT
1. Qualifying Criteria 1.1. In order to qualify for the registration as an indigent, an applicant must satisfy the following criteria; (a) The usage of the property must predominantly be for private residential, (b) The applicant must be the registered owner of the property, (c) The total household income must not exceed R3 000.00 per month, (d) The applicant must not be the registered owner of more than one property, (e) Council or the delegated person may determine the criteria as mentioned in sub-items (a) and (b); and (f) Indigent applications will be audited on annual basis. 1.2. The following categories of household qualify for the special inclusion in the indigent subsidies scheme, but the application process should be followed as stated in 8.5 below; • Income of two Pensioners in the form of Social Grant, • Foster Child Grant • Child Support Grant, and • Care Dependency Grant 3.6.6
COMPONENT B:ROAD TRANSPORT
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This component includes Roads and Wastewater (stormwater drainage).
3.7 ROADS
INTRODUCTION TO ROAD TRANSPORT The roads in Tswaing have different categories that are managed by SANRAL (National Roads), Public Works and Transport (Provincial Roads, NMMDM (District Roads) and Tswaing LM (Urban Roads only). SANRAL road (N14)isstable and well maintained.
AllProvincial Roads are in a fair state. The Provincial and district roads (gravel) arerarelymaintained,and mostly in a very bad state.Conditions of these roads do have a negative impacton the economic ability of the rural consumers that are mostly poor people. Taxi’s and busses providing public transport on the gravel roads cannot be viable if taking in consideration the maintenance and replacing cost of the vehicles. There is an Integrated Transport Plan (ITP) developed by Department of Transport that need updating and project funding. T3.7
INTRODUCTION TO ROADS
The construction and maintenance of road infrastructure is a priority. Department of Public Works is responsible for implementing roads projects intended to service the rural communities (27 Villages). Tarred roads are urgently needed to service the rural communities.
The roads function was transferred to NMMDM that left only the urban roads as a function of Tswaing LM. There is a Roads Master Plan that was developed through NMMDM funding that was not very successful. Agisanang Consulting undertook to accommodate Tswaing and finalize the Master Plan. T3.7.1
Gravel Road Infrastructure Kilometres Total gravel New gravel roads Gravel roads Gravel roads roads constructed upgraded to tar graded/maintained Year 0 90 5 4 0 T 3.7.2
Tarred Road Infrastructure Kilometres
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Existing tar Total tarred Existing tar Tar roads New tar roads roads re- roads roads re-tarred maintained sheeted Year 0 60 3 0 0 5 T 3.7.3
Employees: Techni Admin, Mech workshop, Roads and Stormwater Services Year -1 Year 0 Job Employees Posts Employees Vacancies Vacancies (as a % Level (fulltime of total posts) equivalents) No. No. No. No. % 0 - 3 0 1 0 1 100% 4 - 6 5 5 2 0 0% 7 - 9 8 11 0 4 36% 10 - 12 4 6 0 2 33% 13 - 15 14 13 0 -2 -15% 16 - 18 19 - 20 Total 32 36 2 5 14% Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. „senior management‟) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.7.7 Financial Performance Year 0: Road Services
Year -1 Year 0 Details Actual Original Adjustment Actual Variance to Budget Budget Budget Total Operational Revenue 27340590 41251653 41251653 35966239 -15% Expenditure: Employees 2185 5433978 5433978 2985293 -82% Repairs and Maintenance 536 133214 133214 105300 -27% Other 1593 2555701 2555701 303791 -741% Total Operational Expenditure 4314 8122893 8122893 3394384 -139% Net Operational - Expenditure 27336276 -33128760 -33128760 -32571855 -2% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances arecalculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.7.8
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Capital Expenditure Year 0: Road Services
Year 0 Budget Adjustment Actual Variance Total Budget Expenditure from Project Capital Projects original Value budget
Total All 39294000 39294000 17109514 -130%
Letsopa roads 9000000 9000000 2527406 -256% 5779 Vrischgewagcht 9000000 9000000 6360485 -41% 6584 Agisanang 9000000 9000000 2268164 -297% 6779 Delarey internal roads 3294000 3294000 819945 -302% 0 Mofufutso internal roads 9000000 9000000 5133515 -75% Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.7.9
COMMENT ON THE PERFORMANCE OF ROADS OVERALL:
The roads in the urban areas that are the function of Tswaing LM is not serviced, operated or maintained as it should be, leaving a lot of potholes creating unsafe public roads for the road users. Tswaing does not have personnel appointed in the Roads and Storm water section responsible for maintaining road Infrastructure. Funding, material tools, equipment etc. are not available to intervene in the maintenance of roads and storm water.
Within the MIG grants 5.7 km of roads were constructed, but quality and completion of projects remains a challenge.
T3.7.10
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3.8 TRANSPORT (Including Vehicle Licensing)
INTRODUCTION TO TRANSPORT
Public transport is receiving good attention in the urban area, but in the rural small towns very little in Public Transport is done or funded. A funding model needs to be developed to fund Public Transport.
Transport subsidies/Grants are channelled to higher populated areas. Public scheduled transport services were looked at that would include public transport but seems not to get the buy-in from the private sector. Much more attention should be given to public transport that makes a huge impact on the economic activity.
Public transport entails motorized- (vehicles, busses, rail, air) and non-motorized (bicycles, pedestrian pathways, animal drawn transport) forms and should cover all sections on development. All the public transport facilities are not developed. T3.8.1
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3.9 WASTEWATER (Storm waterdrainage)
INTRODUCTION TO STORMWATER DRAINAGE
Storm water drainage is underdeveloped in Tswaing LM. Storm water is very costly and normally only 1:5year return periods are covered in design in rural towns. Delareyville town shall have flooding problems in the southern side of town in the case of a 1:50 year return period flood condition due to the fact that the pan situated on the southern side does not have an outlet for storm water downstream.
Delareyville has grown from 450 developed stands to 5200 with an intended 750 additional stands in the near future.
Maintenance on existing structure is in backlog and need intervention. In rural areas there are no storm water drainage except for Provincial and District road drainage culverts. In Khunwana culverts were installed enabling scholars to attend school in the rainy season. Installation of culverts in Mofufutso is planned.
T3.9.1
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COMPONENT C: PLANNING AND DEVELOPMENT
This component includes planning and local economic development.
INTRODUCTION TO PLANNING AND DEVELOPMENT
Local Economic Developmentis a collective process of stakeholders which includes Communities, Businesses and Government working together to enhance economic development with the objective of creating employment, alleviating poverty and equality.
All the stakeholders must form partnership for economic growth which composes of agriculture, tourism and small-scale manufacturing.
CHALLENGES
A lack of coordinated planning by economic sectors in our municipality, defeat our objective of striving to improve our economic development.
Lack of tailored local economic development strategy which provides guidance in the attainment of local economic development is a serious challenge.
Our biggest challenge is lack of marketing our municipality with a sole intention to attract investors by showing opportunities for investment in our municipality. T3.10
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3.10 PLANNING
INTRODUCTION TO PLANNING
Tswaing Local Municipality has a Spatial Development Framework (SDF) which was adopted in 2011 including Land-use Management Scheme.
These two (2) documents are due for review.
Spatial Planning and Land-use Management (SPLUMA) is a new Act which came into effect from 2014. T3.10.1
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3.11 LOCAL ECONOMIC DEVELOPMENT (Including Tourismand MarketPlaces)
INTRODUCTION TO ECONOMIC DEVELOPMENT A lack of coordinated planning by economic actors in our municipality defeats our objective of striving to improve our economic development.
Lack of tailored local economic development strategy which provides guidance in the attainment of local economic development is a serious challenge.
Our biggest challenge is lack of marketing our municipality with a sole intention to attract investors by showing opportunities for investment in our municipality. T3.11.1
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Local Economic Development Policy Objectives Taken From IDP Service Objectives Outline Service Year -1 Year 0 Targets Target Actual Target Actual *Previous *Previous *Current Service Indicators Year Year Year (i) (ii) (iii) (iv) (v) (vi) (vii) To promote and support Number of jobs created 50 jobs Achieved 50 jobs 50 jobs Achieved Local Economic through LED and Development and Capital projects Agriculture To promote and support LED and tourism 1 strategy Not Achieved 1 Strategy 1 strategy Not Achieved Local Economic strategy adopted Development and Agriculture Number of work 100 jobs Not achieved 100 jobs 100 jobs Achieved To promote and support opportunities created Local Economic through expanded Development and public works Agriculture programme Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
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Employees: Local Economic Development Services Year -1 Year 0 Job Employees Posts Employees Vacancies Vacancies (as a % of Level (fulltime total posts) equivalents) No. No. No. No. % 0 - 3 1 1 1 0 0%
Total 1 1 1 0 0% Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. „senior management‟) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.11.8
COMPONENT D: COMMUNITY& SOCIAL SERVICES
This component includes libraries and archives; museums arts and galleries; community halls; cemeteries and crematoria; child care; aged care; social programmes, theatres.
INTRODUCTION TO COMMUNITY AND SOCIAL SERVICES
SOCIAL FACILITIES AND AMENITIES
The provision of facilities is shared between the municipality, Department of Education and Sports and the Department of Culture, Arts Traditional Affairs e.g. library, sports fields. T3.52
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3.12 Libraries;Archives; Museums; GalleriesandCommunity Facilities.
INTRODUCTION TO LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES
There are 6 libraries that are operating.
The municipality has no archives, museums and galleries.
Community facilities under our municipality are namely, community halls, tennis courts and swimming pools. T3.12.1
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Libraries; Community Facilities; Other Policy Objectives Taken From IDP Service Outline Service Year -1 Year 0 Objectives Targets Target Actual Target Actual Service *Previous *Previous *Current Indicators Year Year Year (i) (ii) (iii) (iv) (v) (vi) (vii) Service Objective 010 Number of 0 0 0 0 1 Not Achieved community halls constructed Number of 4 4 Not Achieved 4 4 Not Achieved community parks developed
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
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Financial Performance Year 0: Libraries; Archives; Museums; Galleries; Community Facilities; Other
Year -1 Year 0 Details Actual Original Adjustment Actual Variance to Budget Budget Budget
Total Operational Revenue 1619614 1200318 1200318 1427522 16% Expenditure: Employees 1122270 1707557 1707557 1709831 0% Repairs and Maintenance 0 579000 579000 499071 0% Other 2954 1826300 1826300 1422861 -28% Total Operational Expenditure 1125224 4112857 4112857 3631763 -13% Net Operational Expenditure -494390 2912539 2912539 2204241 -32% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.12.5
COMMENT ON THE PERFORMANCE OF LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES AND COMMUNITY FACILITIESOVERALL:
There are two tennis courts and swimming pools that are dilapidated. T 3.12.7
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3.13 CEMETORIES AND CREMATORIUMS
INTRODUCTION TO CEMETORIES & CREMATORIUMS
The municipality is providing and maintaining cemeteries in towns and townships. The rural community maintain their own cemeteries. There are no crematoriums services
Financial Performance Year 0: Cemeteries and Crematoriums
Year -1 Year 0 Actual Original Adjustment Actual Variance Details Budget Budget to Budget
Total Operational Revenue 197141 252039 252039 185829 -36% Expenditure: Employees 1709602 1830645 1830645 1837433 0% Repairs and Maintenance 0 23124 23124 6500 0% Other 159 5847 5847 0 0% Total Operational Expenditure 1709761 1859616 1859616 1843933 -1% Net Operational Expenditure 1512620 1607577 1607577 1658104 3% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.13.5
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3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES
INTRODUCTION TO CHILD CARE; AGED CARE; SOCIAL PROGRAMMES
The municipality does not provide services, The Department of Social Development, Department of Health and South African Social Services Agency (SASSA are the ones providing the services). municipality act as a support. T 3.14.1
Financial Performance Year 0: Child Care; Aged Care; Social Programmes
Year - 1 Year 0 Details Actual Original Adjustment Actual Variance Budget Budget to Budget
Total Operational Revenue 0 0 0 0 0% Expenditure: Employees 0 0 0 0 0% Repairs and Maintenance 0 0 0 0 0% Other 0 0 0 0 0% Total Operational Expenditure 0 0 0 0 0% Net Operational Expenditure 0 0 0 0 0% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.14.5
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COMPONENT G: SECURITY AND SAFETY
This component includes police; fire; disaster management, licensing and control of animals, and control of public nuisances, etc.
INTRODUCTION TO SECURITY & SAFETY The component includes traffic management.
Law Enforcement main functions are: -
- Regulate traffic during unrest, accidents and other events.
- Speed enforcement.
- Attend to law enforcement.
T 3.20
Financial Performance Year 0: Traffic
Year -1 Year 0 Details Actual Original Adjustment Actual Variance Budget Budget to Budget Total Operational Revenue 0 2688000 2688000 2584579 -4% Expenditure: Police Officers Other employees 9300320 8849634 8914634 11320342 22% Repairs and Maintenance 97244 65000 65000 30022 -117% Other 626413 35000 37500 883699 96% Total Operational Expenditure 10023977 8949634 9017134 12234063 27% Net Operational Expenditure 10023977 6261634 6329134 9649484 35% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.20.5
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COMPONENT H: SPORT AND RECREATION
This component includes community parks; sports fields; sports halls; stadiums; swimming pools; and camp sites.
INTRODUCTION TO SPORT AND RECREATION
Community parks are not adequately maintained. Sports fields, stadiums and swimming pools are dilapidated. There is no camp site. T 3.23
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Financial Performance Year 0: Sport and Recreation
Year -1 Year 0 Actual Original Adjustment Actual Variance Details Budget Budget to Budget
Total Operational Revenue 1425 10530 10530 0 0% Expenditure: Employees 2379050 2710915 2710915 2409769 -12% Repairs and Maintenance 11041 88069 88069 61453 -43% Other 93419 111078 111078 68315 -63% Total Operational Expenditure 2483510 2910062 2910062 2539537 -15%
Net Operational Expenditure 2482085 2899532 2899532 2539537 -14% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.23.4
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COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES
This component includes corporate policy offices, financial services, human resource services, ICT services, property services.
INTRODUCTIONTO CORPORATE POLICY OFFICES The core functions of the unit are as follows: Provide human resource management and development Provide information and communications technology support service Render organizational efficiency services. Render Customer services, records management and Council administration support. Provide legal support.
3.22 EXECUTIVE AND COUNCIL
This component includes: Executive Office (Mayor; Councillors;Municipal Manager and Corporate Admin).
INTRODUCTION TO EXECUTIVE AND COUNCIL
The core functions of the unit are as follows; - Provide democratic and accountable governance - To facilitate corporate governance and public participation - To provide political leadership and strategic direction to Council T3.24.1
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The Executive and Council Policy Objectives Taken From IDP Service Objectives Outline Service Targets Year -1 Year 0 Target Actual Target Actual *Previous *Previous Service Indicators Year Year *Current Year (i) (ii) (iii) (iv) (v) (vi) (vii) Service Objective 013 Promote community Number of resolution 1 Achieved 1 1 Achieved participation register developed Promote community Number of reports on 1 Achieved 1 1 Achieved participation implementation of council resolutions Promote community Number of imbizo, held 1 Not 1 1 Not Achieved participation Achieved Improve IDP Support and Number of annual reports 2015/16 and Not 2016/17 2017/2018 Achieved Coordination adopted 2016/17 Achieved annual performance report be adopted by June 2018 Promote community Number of anticorruption 2 Not 4 4 Not Achieved participation campaigns implemented Achieved
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Employees: The Executive and Council Year -1 Year 0 Job Employees Posts Employees Vacancies (fulltime Vacancies (as a % Level equivalents) of total posts) No. No. No. No. % 0 - 3 2 2 2 0 0% 4 - 6 1 1 1 0 0% 7 - 9 3 3 3 0 0% 10 - 12 1 1 1 0 0% 13 - 15 0 0 0 0 16 - 18 19 - 20 Total 8 7 8 0 0% Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. „senior management‟) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.24.4
3.23 FINANCIAL SERVICES
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INTRODUCTION FINANCIAL SERVICES - The core functions of the financial services: - To manage expenditure and budget planning processes - To manage and facilitate budget planning process - To administer municipal payroll system - To administer trade, sundry creditors’ payments and reconciliation services T3.25.1
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Employees: Financial Services Year -1 Year 0 Job Employees Posts Employees Vacancies (fulltime Vacancies (as a % Level equivalents) of total posts)
No. No. No. No. % 0 - 3 3 3 3 0 0% 4 - 6 8 12 8 0 0% 7 - 9 4 5 4 2 40% 10 - 12 10 12 9 8 67% 13 - 15 0 0 0 6 0% 16 - 18 0 0 0 10 0% 19 - 20 0 0 0 12 0% Total 25 32 24 38 119% Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.25.4
Financial Performance Year 0: Financial Services
Year -1 Year 0 Actual Original Adjustment Actual Variance Details Budget Budget to Budget Total Operational Revenue 19644505 31028802 31028802 22841241 -36% Expenditure: Employees 8373383 11645939 11645939 11841866 2% Repairs and Maintenance 425671 0 0 0 0% Other 8813118 340195364 340195364 97287378 -250% Total Operational Expenditure 17612172 351841303 351841303 109129244 -222% Net Operational Expenditure -2032333 320812501 320812501 86288003 -272% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.25.5
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3.24 HUMAN RESOURCE SERVICES
INTRODUCTION TO HUMAN RESOURCE SERVICES
Section: Human Resource Management: This Directorate provides human resource management support to the Department. The core functions of this Directorate are as follows: • Provide human resource planning, recruitment and selection support services • Provide a labour relations service • Provide a human capital utilisation service • Manage partnerships and service level agreements • Provide legal support.
Division: Planning, Recruitment and Selection: This sub-directorate provides human resource planning, recruitment and selection support services to the Department. The core functions of this sub-directorate are as follows: • Develop and monitor policies, guidelines and strategies • Manage recruitment and selection processes. T3.26.1
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Human Resource Services Policy Objectives Taken From IDP Service Objectives Outline Service Targets Year 0 Target Actual Service Indicators *Previous Year *Current Year (i) (ii) (v) (vi) (vii) Service Objective 015 Promote accountable, efficient and Number of workshops on council 16 policies 10 policies Achieved transparent administration policies conducted
Promote accountable, efficient and Number of policies reviewed 4 workshops 4 Workshop Achieved transparent administration
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Employees: Human Resource Services Year 0 Employees Vacancies (fulltime Vacancies (as a % of total Job Level equivalents) posts) No. No. % 0 - 3 0 1 100% 4 - 6 2 2 67% 7 - 9 2 2 25% 10 - 12 0 0 0% 13 - 15 0 0 0% 16 - 18 0 0 0% 19 - 20 0 0 0% Total 4 5 5% Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. „senior management‟) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.26.4
Financial Performance Year 0: Human Resource Services
Year -1 Year 0 Details Actual Original Adjustment Actual Variance Budget Budget to Budget Total Operational Revenue 0 0 0 0 0% Expenditure: Employees 1920556 2196219 2196219 2043505 -7% Repairs and Maintenance 0 0 0 0 0% Other 2317514 321979 321979 164996 -95% Total Operational Expenditure 4238070 675348 675348 724723 7% Net Operational Expenditure 4238070 675348 675348 724723 7% Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.26.5
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COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD The Period Ending June 2019
BASIC SERVICES: COMMUNITY SERVICES DEPARTMNET
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Objective Indicator Performance Under\Over- Measures Evidence Performance
Provideand Number of 9 Cemeteries 2 cemeteries Achieved None None Progress maintain cemeteries not maintained maintenance by report cemeteries maintained June 2019
Number of Municipal 4 Municipal 4 Municipal Achieved None None Pictures and Gardens maintained Gardens Gardens report maintained by June 2019
Promote Number of trees to No trees planted 50 Trees Planted Not Achieved Human and capital Explore usage None greening and be planted by June 2019 resources of EPWP and environmental constraints CWP sustainability Number of 1 Environmental 4 Environmental Not achieved Weak coordination Alignment of None environmental campaign campaigns of schedules campaigns conducted conducted by intergovernmental campaigns conducted June 2019 relation with the with the district District and province
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BASIC SERVICES: COMMUNITY SERVICES DEPARTMENT
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio Objective Indicator Performance Under\Over- Measures of Performance Evidence
Parks Number of community Parks not 4 Parks to be Not achieved Human and Explore usage None parks developed maintained developed by end capital resources of EPWP and June 2019 constraints CWP
Public Safety Number of Identified 10 Faded road 90 faded road Achieved None None Pictures faded road markings markings and markings and signs and report and signs painted and signs by June 2019 replaced
Road Traffic % of motor vehicle 100% 100% Compliance Achieved None None E-Natis Act licence renewed Compliance with road traffic report management cooperation (RTMC) by June 2019
Provision of Number of households 10159 10159 households Achieved None None Report and refuse removal to be provided with households with with access to schedules refuse removal access to refuse refuse removal by services removal June 2019
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BASIC SERVICES: COMMUNITY SERVICES DEPARTMNET
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Objective Indicator Performance Under\Over- Measures Evidence Performance
Number of hectares of 2 Hectares of 6Hectares of Achieved None None Pictures copy Municipal Land released municipal land municipal land of surveyor for human settlements released for released for general map development. human human
settlements settlements by Human development. June 2019. settlement Number of Informal 2 Informal 2 Informal Achieved None None Pictures copy Settlements Formalised Settlements settlement to be of surveyor Formalised finalised by June general map 2019 (Ditshoswane and Senthumule)
TOTAL NUMBER OF KPI : 10
TOTAL NUMBER OF KPI ACHIEVED : 7
TOTAL NUMBER OF KPI NOT ACHIEVED : 3
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BASIC SERVICES: TECHNICAL SERVICES
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Objective Indicator Performance Under\Over- Measures Evidence Performance
Number of KM of Gravel road 1.5 KM of internal Not achieved but 2018/19 financial Deferred to the None internal roads and Roads and storm only 1st ,2nd and year project have next financial storm water to be water upgraded from 3rd achieved been stopped and year I order to constructed in gravel to segmented reallocation process avoid blocked
Letsopa paving block in by National treasury project/backlog Letsopa by June 2019
Project Number of KM of Gravel road 1.5 KM of internal Not achieved but 2018/19 financial Deferred to the None Management internal roads and roads and storm water only 1st ,2nd and year project have next financial Unit storm water to be upgraded from gravel 3rd achieved been stopped and year I order to constructed in to segmented paving reallocation process avoid blocked Shaleng block in Shaleng by by National treasury project/backlog June 2019
Number of Dilapidated Refurbishment of Not achieved but 2018/19 financial Deferred to the None sportsgrounds built sports Agisanang/Phelindaba only 1st ,2nd and year project have next financial and upgraded ground sports ground 3rd achieved been stopped and year I order to constructed by June reallocation process avoid blocked 2019 by National treasury project/backlog
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BASIC SERVICES: TECHNICAL SERVICES
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Objective Indicator Performance Under\Over- Measures Performance Evidence
Number of KM of Gravel road 1.5 km of internal road Not achieved but Affected by stopping To be None internal roads and and storm only 1st ,2nd and and reallocation of implemented on storm water to be waterupgraded from 3rd achieved funds (National the next constructed in gravel to segmented Treasury) financial year
Khunwana paving blocks in 2019/2020 Khunwana by June 2019 Project Management Number of KM of Gravel road 1.5 km of internal road Not achieved but 2018/19 financial Deferred to the None Unit internal roads and and storm only 1st ,2nd and year project have next financial storm water to be waterupgraded from 3rd achieved been stopped and year I order to constructed in gravel to segmented reallocation process avoid blocked Agisanang paving blocks in by National treasury project/backlog /Phelindaba Phelindaba/Agisanang taxi road by June 2019
Number km of roads Potholes 10 km of roads to be Not achieved Lack of vehicle, Purchasing None to be maintained roads maintained by June equipment’s,tools tools and 2019 and labourers equipment’s an appointment of general workers
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BASIC SERVICES: TECHNICAL SERVICES
Corporate Key Performance Baseline Annual Target Annual Reasons for Corrective Portfolio Objective Indicator Actual Under\Over- Measures of Performance Performance Evidence
% of water network & 50% of water 50% of water Achieved None None Report pumps maintained infrastructure infrastructure maintained maintained by June 2019
Number of None 25 Household Achieved None None Report households connected to water Maintain sanitation connected to water network as per network network as per received application by received application June 2019
Number of None 25 households to be Not Achieved No request Encourage None Households connected to sewer received owner to apply connected to sewer network by June 2019 or request. network as per received application
% of waste water 100% 100% maintained Achieved None None Report network and maintained waste water network treatment plants waste water and treatment plants by maintained network and June 2019 treatment plant
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BASIC SERVICES: TECHNICAL SERVICES
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio Objective Indicator Performance Under\Over- Measures of Performance Evidence
Number of households with 26816 connected to the 25 connected to Achieved None None Reports electricity connections as grid grid by June per received application 2019
% of maintenance of 60% of overhead and 60% of Achieved None None Reports underground cables and underground electrical overhead and overhead lines network infrastructure underground Electricity infrastructure maintained by June 2019
Number of broken poles Due aging some 100 electrical Not achieved Financial Engage with None replaced electrical poles are poles replaced constraints finance to broken by June 2019 avail funds and pay invoices
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BASIC SERVICES: TECHNICAL SERVICES
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Objective Indicator Performance Under\Over- Measures Evidence Performance
Electricity % of regular 80% street lights 20% Achieved None None Report infrastructure maintenance of street maintained lights
Enhance maintained % of Maintained & 20% of vehicles 40% Achieved None None Report and repair repaired number of to be maintained vehicles
TOTAL NUMBER OF KPI : 15
TOTAL NUMBER OF KPI ACHIEVED : 7
TOTAL NUMBER OF KPI NOT ACHIEVED : 8
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MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio Objective Indicator Performance Under\Over- Measures of Performance Evidence
Completed Adopted Completed Not achieved CoGTA is developing Reviewing None Organisational structure 2017 Organisational prototype structures the current Structure structure by June for uniformity structure in 2019 line with
national Promote Department accountable, Job descriptions None Job description Not achieved SALGA to provide Generic Job None efficient and completed completed by generic job Descriptions transparent December 2019 description to be signed administration
Number of 1 workshop 4 Workshops on Achieved None None Attendance workshops on council policies by register and council policies June 2019 report
Number of policies 32 Policies 10 council policies achieved None None Council Reviewed Reviewed reviewed by June resolution 2019
MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT
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Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Indicator Performance Under\Over- Measures Evidence Performance
Number of workplace 1 submitted to 1 adopted WSP Achieved None None WSP report skills development LGSETA by June 2018 plan developed
Promote accountable efficient and Number of 1 Employment Review Not achieved, No dedicated Finalization None Transparent employment equity equity Plan Employment only 1st ,2nd and personnel of structure Administration Plan developed equity plan 3rd achieved and submitted by June appointment 2019 of personnel
Number of Learner None 1learnership Achieved None None Report ship implemented implemented by June 2019
MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT
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Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio Indicator Performance Under\Over- Measures of Performance Evidence
Number of community Work skills 1 Work Skills Plan Achieved None None WSP Skills Development plan by June 2019 2018/2019 Initiated developed (WSP)
Number of Developed No ICT policy 1 municipal Not Achieved Financial The steering None Municipal Corporate in Place Corporate constrains committee to Promote accountable Governance of ICT Governance of be appointed efficient and Policy Framework ICT Policy and training Transparent Framework by to be Administration June 2019 conducted
Upgrade the network Erratic network Integrated IT Not Achieved Financial Seek None infrastructure of All infrastructure network constrains confirmation office and integrate that is not infrastructure from COGTA them to the main office conductive for implemented by should they effective June 2019 decline our service request then delivery make provision for the upgrade during adjusted budget
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MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT
Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio Indicator Performance Under\Over- Measures of Performance Evidence
Implement internal No backup Preserve Not Achieved Financial Provision for None mechanism to ensure server municipal data by constraints procurement be that municipal data is June 2019 impeded the made next preserved procurement of trench of the
server. equitable shares
Number of Automated There is no 1 automated Not Achieved Installation of Provision for None Promote accountable installations of human automated human resource HR modules procurement efficient and Transparent resource modules human system by June was backup server Administration resource 2019 dependent on be made system in the place. procurement of backup server
1 software updated Software 1 software Achieved None None Invoices updated is not updated policy and report consistent due needs to be to financial adopted by constraints council by June 2019
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MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT
Corporate Key Baseline Annual Target Annual Actual Reasons for Corrective Portfolio Objective Performance Performance Under\Over- Measures of Indicator Performance Evidence
Number of Municipal website Municipal website Achieved None None Report Municipal website is operating but not that is regularly website regularly updated complying with updated by June legislative 2019
requirements
Promote Number of There is a 4 Municipal Not achieved Lack of dedicated An official be None accountable Newsletters newsletter, but It is newsletters communication delegated for efficient and published not published published by June officer impedes the communication Transparent quarterly quarterly as per 2019 gathering content duties Administration requisite due to for publication of personnel newsletter challenges
TOTAL NUMBER OF KPI : 15
TOTAL NUMBER OF KPI ACHIVED : 6
TOTAL NUMBER OF KPI NOT ACHIEVED : 9
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FINANCIAL VIABILITY
Corporate Objective Key Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Performance Performance Under\Over- Measures Evidence Indicator Performance
% of assets Updated assets 100% of Achieved None None Undated register updated register assets register assets updated by register June 2019
% of electronic No electronic 75% of Not achieved No capacity as the The MSCOA None assets assets electronic system is not fully system be Improve Assets Management management management assets functional budgeted for system installed system management system installed by June 2019
Number of reports No status of 4 Reports of Not achieved No capacity in Position of None on status assets assets the status of assets division, assets assets by June function performed accountant 2019 by consultants at to be filled the year end. after Committee not finalisation fully functional of structure
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FINANCIAL VIABILITY
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio Objective Indicator Performance Under\Over- Measures of Performance Evidence
% of assets No assets 100% asset Not achieved No capacity in assets Position of None committee committee committee division, function assets established established established by performed by accountant to be June 2019 consultants at the filled after
yearend. Committee finalisation of not fully functional structure
Number of No meetings 4 meetings of Not achieved Committee not yet Assets None meetings of assets assets committee established accountant to be committee by June 2019 filled after finalisation of Achieve clean audit structure
% audit action plan Audit Action 100% audit action Achieved None None Progress to address Auditors Plan plan to address report general queries Auditors general developed queries developed by June 2019
% of auditor’s 60% 100% of auditor’s Not achieved Slow PAAP Each depart None general implemented general implantation need to recommendations on PAAP recommendations currently at 30% implement their implemented implemented by queries June 2019
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FINANCIAL VIABILITY
Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Objective Indicator Performance Under\Over- Measures Evidence Performance
Number of budget 12 budgets 12 budget Achieved None None Acknowledgement statements statement statement letter from treasury submitted to the submitted by June treasury 2019
Number of Quarterly 4 quarterly reports Achieved None None Acknowledgement quarterly reports report section submitted by June letter
submitted 71 2019 Promote Financial Accountability Number of supply No reports 4 supply chain Not Achieved Report is To be table at the None chain submitted to management ready. next council management council reports submitted meeting reports submitted to council by June to council 2019
Number of supply 12 reports 12 supply chain Achieved None None Acknowledgement chain management letter management reports submitted reports submitted to provincial by to provincial June 2019 treasury
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FINANCIAL VIABILITY
Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Indicator Performance Under\Over- Measures Evidence Performance
Number of supply No supply chain 1 supply chain Achieved None None Acknowled chain management management management gement reports submitted to reports reports submitted letter auditor general to auditor general
by June 2019 Promote Financial Accountability Number of budget Budget process 1 budget process Achieved None None Process process plan adopted plan adopted plan adopted by plan June 2019
Number of Budget None 1 Budget Achieved none none Adopted approved approved by budget June 2019 plan
Enhance Revenue Number of credit None 1 credit control Achieved none none Council Enhancement control policy reviewed policy reviewed resolution by June 2019
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FINANCIAL VIABILITY
Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Indicator Performance Under\Over- Measures Evidence Performance
Number of indigent Indigent policy 1 indigent Achieved None None Council policies reviewed reviewed policy resolution reviewed by June 2019
Enhance Revenue Number of financial None 1 financial Achieved None None Council Enhancement investment and policy investment resolution reviewed and policy plan reviewed by June 2019
% of data cleansing Data cleaning sing 100% data Not achieved Not budgeted for Provide None conducted conducted cleansing in 2018/19 budget for conducted by data June 2019 cleansing
% of reduction of bad Reduction of bad 100% Achieved None None Reports debt written off debt written off reduction of bad debt written off by June 2019
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FINANCIAL VIABILITY
Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Indicator Performance Under\Over- Measures Performance Evidence
Enhance Revenue % of billing system No billing system 100% billing Not achieved Current Budget to be None Collection automated automated system accounting allocated automated by system not fully (5million) 2019 MSCOA complaint
% Increase in 28% billing 100% increase Not achieved Enforcement of None payment rate system rate in payment rate debt collection by June 2019 and credit control policies
%of all rateable Valuation roll 100% of all Not achieved Last valuation New valuation None properties updated rateable roll was years roll to be registered properties ago. New valuer updated to registered by appointed assist in June 2019 registration of rateable properties
TOTAL NUMBER OF KPI : 22
TOTAL NUMBER OF KPI ACHIEVED :12
TOTAL NUMBER OF KPI NOT ACHIEVED :10
GOOD GOVERNANCE AND PUBLIC PARTICIPATION
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Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Objective Indicator Performance Under\Over- Measures Evidence Performance
Number of IDP 2 IDP Meeting 4 Internal Not achieved only Coordination of Rescheduled Attendance Review Meetings Held Meetings to be 3 achieved meeting could not the meeting register and held by June be materials reports 2019 because of strikes
within municipality
Number of IDP rep No IDP rep 4 IDP rep forum Not achieved only Coordination of Rescheduled Attendance Promote Forum meetings forum held held by June 3 achieved meeting could not the meeting register and community 2019 be materials reports participation because of strikes within municipality
Number of Mid Term Mid Term 1 mid-term Achieved None None Council Performance performance performance resolution assessment report assessment assessment and adopted report adopted report be adopted adopted by end of January midterm 2019
Number of Annual 2016/2017 Annual Achieved None None Council Report adopted performance resolution report be adopted and Annual by end June 2019 Report (2017/2018)
GOOD GOVERNANCE AND PUBLIC PARTICIPATION
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Corporate Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Objective Indicator Performance Under\Over- Measures Evidence Performance
Number of joint budget No joint budget and 4 Joint Budget Not Achieved Not achieved Coordination of None and IDP steering IDP steering and IDP steering only 3 achieved meeting could committee committee meeting Committee be not be materials held held by end June because of 2019 strikes within municipality
Number of Report Ward committee 1 ward committee Achieved None None Report format for ward reporting format format revised by committees June 2019
% of Resources secured No Resources for 100% allocation of Achieved None None Receipt for Ward Committees ward committees ward committee and (Stationary Offices, resources by June attendance Stipend) 2019 register
Number of None 1 communication Not Achieved No dedicated Communication None communication strategy strategy personnel officer be developed developed by appointed June 2019
GOOD GOVERNANCE AND PUBLIC PARTICIPATION
Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Under\Over-
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Indicator Performance Performance Measures Evidence
Number of capacity 1 induction for 2 workshops for Not achieved Budget building programmes ward ward constraints for ward committees committees committees by June 2019
Good governance and Number of support 1 support for 4 ordinary Achieved None None Council public participation initiatives for traditional council sitting by Resolution traditional leaders leaders June 2019 implemented implemented
Number of resolution Council 1 council Achieved None None Resolution register developed resolution resolution register register developed by developed June 2019
Number of reports on Number of 1 resolution Achieved none none Council implementation of resolution committee resolution council resolutions committee established by established June 2019
GOOD GOVERNANCE AND PUBLIC PARTICIPATION
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Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio Indicator Performance Under\Over- Measures of Performance Evidence
Promote Public Number of Imbizo’s None 2 Imbizo’s Held by Not Achieved Meetings Rescheduling None Participation Held June 2019 could not be of meetings materialised cause of community strikes
Number of annual 1 annual report Annual report for Achieved None None Council reports adopted submitted 2017/18 be submitted resolution by June 2019
Number of anti- None 2 Anti-Corruption Not Achieved Lack of Appointment None corruption Campaigns adequate of designated campaigns implemented by June personnel personnel implemented 2019
TOTAL NUMBER OF KPI : 15
TOTAL NUMBER OF KPI ACHIEVED : 8
TOTAL NUMBER OF KPI NOT ACHIEVED : 7
LOCAL ECONOMIC DEVELOPMENT
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Corporate Objective Key Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Performance Performance Under\Over- Measures Evidence Indicator Performance
Number of jobs None 50 Jobs created Achieved None None Report and created through through LED and attendance LED and Capital capital projects by 103 created register Projects June 2019
Number of LED 2007 1 LED strategy Not achieved Budget Appoint more None and Tourism strategy reviewed by June constrain and personnel Promote and support Strategy not 2019 staff local economic Developed reviewed development and agriculture % Of Municipal None 100% Not achieved Budget Appoint more None tourism Profile development of constrain and personnel developed tourism profile by staff June 2019
LOCAL ECONOMIC DEVELOPMENT
Corporate Objective Key Performance Baseline Annual Target Annual Actual Reasons for Corrective Portfolio of Under\Over-
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Indicator Performance Performance Measures Evidence
Number of support 25 SMMEs 60 SMMEs and Not achieved Budget Increase None initiative for SMMEs Trained cooperatives be constrain budget for Promote and support and Cooperatives trained by June training local economic 2019 development and agriculture Number of Expanded None 100 work Achieved None None Appointment Public Works opportunities contracts/lett Programme created by created by June ers the organisation 2019
TOTAL NUMBER OF KPI : 5
TOTAL NUMBER OF KPI ACHIVED : 2
TOTAL NUMBER OF KPI NOT ACHIEVED : 3
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CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE REPORT PART II)
INTRODUCTION The main core functions of the organizational development performance: - To coordinate the implementation of strategic management services - To monitor and evaluate services delivery programmes and internally management systems - To facilitate planning and implementation of integrate development plan
T4.0.1
COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL
4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES Employees Year -1 Year 0 Description Approved Employees Employees Vacancies Vacancies Posts No. No. No. No. % Water 19 25 22 3 12.00% Waste Water (Sanitation) 21 51 40 11 11.76% Electricity 10 19 09 10 47.37% Waste Management 26 34 29 5 0.00% Housing 9 22 9 13 59.09% Roads 26 38 34 4 5.26% Transport 28 46 24 22 28.26% Community & Social Services 22 36 22 14 38.89% Sport and Recreation 16 66 16 50 75.76% Corporate Policy Offices and Other 79 80 71 8 1.25% Totals 256 417 267 140 26.62% Headings follow the order of services as set out in chapter 3. Service totals should equate to those included in the Chapter 3 employee schedules. Employee and Approved Posts numbers are as at 30 June, as per the approved organogram.
T 4.1.1
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Financial Competency Development: Progress Report*
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Description A. B. Consolidated: Consolidated: Consolidated: Consolidated: Total number of Total number Total of A Competency Total number of Total number officials of officials and B assessments officials whose of officials employed by employed by completed for A performance that meet municipality municipal and B agreements prescribed (Regulation entities (Regulation comply with competency 14(4)(a) and (c)) (Regulation 14(4)(b) and Regulation 16 levels 14(4)(a) and (d)) (Regulation (Regulation (c) 14(4)(f)) 14(4)(e)) Financial Officials Accounting officer 1 0 1 0 1 1 Chief financial officer 1 0 1 0 1 1 Senior managers 3 0 3 0 3 0 Any other financial 0 0 0 0 0 0 officials Supply Chain
Management Officials Heads of supply chain 0 0 0 0 0 0 management units Supply chain management senior 1 0 1 1 1 1 managers TOTAL 6 0 6 1 6 3 * This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007) T 4.5.2
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Vacancy Rate: Year 0 Designations *Total Approved *Vacancies (Total *Vacancies Posts time that (as a proportion vacancies exist of total posts in using fulltime each category) equivalents) No. No. % Municipal Manager 1 0 100.00 CFO 1 0 100.00 Other S57 Managers (excluding Finance Posts) 3 2 33.33 Other S57 Managers (Finance posts) 0 0 Middle management: Levels 1-3 (excluding Finance Posts) 22 6 27.27 Middle management: Levels 1-3 (Finance posts) 4 0 0.00 Highly skilled supervision: levels 4-6 (excluding Finance posts) 18 11 61.11 Highly skilled supervision: levels 4-6 (Finance posts) 7 7 100.00 Total 56 26 48.21
Turn-over Rate Total Appointments as Terminations during the of beginning of Financial Financial Year Details Turn-over Rate* Year No. No. Year 0 10 18 100% * Divide the number of employees who have left the organisation within a year, by total number of employees who occupied posts at the beginning of the year T 4.1.3
COMMENT ON VACANCIES AND TURNOVER
Community and Technical directors post were advertised. And wait for interviews and appointment. Appointment of Director Technical Services should be concluded by end January 2020. T4.1.4
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COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE
INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT
The municipality has developed and adopted relevant policies that ensure fair, efficient, effective and transparent personnel administration namely:
1. Acting allowance policy 2. Ethics policy 3. Induction policy 4. Recruitment and selection policy 5. Occupational health and safety policy 6. Conflict of interest policy 7. Records management policy 8. Standby allowance policy 9. Overtime policy 10. Cell phone allowance policy 11. Travelling and subsistence allowance policy T4.2.0
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4.2 POLICIES HR Policies and Plans Name of Policy Completed Reviewed Date adopted by council or
comment on failure % % to adopt Acting Allowance 1-June-16
Ethics 1-Nov-16 Induction 1-Nov-16 Recruitment, Selection and 1-Nov-16 Appointments Occupational Health and 1-Nov-16 Safety Conflict of Interest 1-Nov-16 Records Management 1-Nov-16 Standby 1-Nov-16 Overtime 1-Nov-16 Succession 1-May-16 Training and Development 2-May-16 Employee Wellness 3-May-16 Code of Conduct 4-May-16 Performance Management 5-May-16 Cell phone 1-June-16 Job Evaluation 7-May-16 Use name of local policies if different from above and at any other HR policies not listed. T 4.2.1
COMMENT ON WORKFORCE POLICY DEVELOPMENT: Arrange workshops for employees and review by the end February 2020. T4.2.1.1
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4.3 INJURIES, SICKNESS AND SUSPENSIONS
Number and Cost of Injuries on Duty Type of injury Injury Employees Proportion Average Total Leave using employees Injury Estimated Taken injury leave using sick Leave per Cost leave employee Days No. % Days R'000 Required basic medical attention 60 5 8% 12 60 only Temporary total disablement Permanent disablement Fatal Total 60 5 8% 12 60 T 4.3.1
Number of days and Cost of Sick Leave (excluding injuries on duty) Total Proportion Employees Total *Average Estimated sick of sick using sick employees sick leave cost leave leave leave in post* per Salary band without Employees medical certification Days % No. No. Days R' 000 Lower skilled (Levels 1- 302 30% 101 200 1.21 2) Skilled (Levels 3-5) 29 5% 28 60 0.13 Highly skilled production 26 1% 4 16 0.08 (levels 6-8) Highly skilled 39 0% 2 25 0.14 supervision (levels 9-12) Senior management 18 0% 4 4 0.06 (Levels 13-15) Municipal Manager 6 0% 1 1 0.03 Total 420 6% 140 267 1.65 0 * - Number of employees in post at the beginning of the year *Average is calculated by taking sick leave in column 2 divided by total employees in column 5 T 4.3.2
COMMENT ON INJURY AND SICK LEAVE: The majority of employees using the mostly sick leaves are general workers due to the nature of their duties. T4.3.4
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4.4 PERFORMANCE REWARDS
COMMENT ON PERFORMANCE REWARDS:
There were no performance assessments done for Section 57\56 employees as they are the only ones that have performance contracts. T4.4.1.1
COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE
INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT
Note: MSA 2000 S68 (1) requires municipalities to develop their human resource capacity to a level that enables them to perform their functions and exercise their powers in an economical, effective, efficient and accountable way.
The municipality has developed a Workplace Skills Plan (WSP), which is aligned to job descriptions and the Personnel Development Plan (PDP). T4.5.0
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4.5 SKILLS DEVELOPMENT AND TRAINING
Skills Matrix Management Gender Employees Number of skilled employees required and actual as at 30 June Year 0 level in post as Learner ships Skills programmes & Other forms of training Total at 30 June other short courses Year 0
Actual: Actual: Year 0 Actual: Actual: Year 0 Actual: Actual: Year 0 Actual: Actual: Year 0 End of End of Target End of End of Target End of End of Target End of End of Target No. Year -1 Year 0 Year -1 Year 0 Year -1 Year 0 Year -1 Year 0
MM and s57 Female 1 1 Male 2 2 Councillors, Female 6 6 senior officials and managers Male 2 2 2 5 2 Technicians Female and associate professionals* Male Professionals Female Male Sub total Female 8 8 Male 7 7 Total 2 0 0 0 0 0 0 2 2 15 15 *Registered with professional Associate Body e.g. CA (SA) T 4.5.1
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Financial Competency Development: Progress Report* Description A. B. Consolidated: Consolidated: Consolidated: Consolidated: Total number of Total number of Total of A Competency Total number of Total number of officials officials employed and B assessments officials whose officials that meet employed by by municipal completed for A performance prescribed municipality entities (Regulation and B (Regulation agreements competency levels (Regulation 14(4)(a) and (c) 14(4)(b) and (d)) comply with (Regulation 14(4)(a) and Regulation 16 14(4)(e)) (c)) (Regulation 14(4)(f)) Financial Officials Accounting officer 1 0 1 0 1 1 Chief financial officer 1 0 1 0 1 1 Senior managers 3 0 3 0 3 0 Any other financial officials 0 0 0 0 0 0 Supply Chain Management
Officials Heads of supply chain 0 0 0 0 0 0 management units Supply chain management 1 0 1 1 1 1 senior managers TOTAL 6 0 6 1 6 3 * This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007) T 4.5.2
COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL COMPETENCY REGULATIONS:
The municipality paid an amount of R154400.00 for two councillors and two senior managers to attend Wits Business School’s CPMD during 2018/2019 T 4.5.4
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COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE
INTRODUCTION TO WORKFORCE EXPENDITURE
The municipality introduced the clock book which every official register every morning.
This will indicate which official reported on time, and who didn't. For those who did not report for duty for a certain day, the no work no pay rule will apply.
T4.6.0
4.6 EMPLOYEE EXPENDITURE
Workforce Expenditure Trends (R' 000) 26,000
25,000
24,000
23,000
22,000
21,000
20,000
19,000 Year -3 Year -2 Year -1 Year 0 Source: MBRR SA22 T 4.6.1
CHAPTER 5 – FINANCIAL PERFORMANCE
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INTRODUCTION The following budget principles and guidelines directly informed the compilation of the 2018/19 MTREF: The 2018/19 community needs gathered from the wards and priorities into targets, as well as the guidelines from the MFMA budget circulars. Tariff and property rates increase which are generally affordable and are generally taking into account inflation measured by the CPI, except where there are price increases in the inputs of services that are beyond the control of the municipality, Addition, tariffs need to remain cost reflective, and should take into account the need to address infrastructure backlogs, Increase of staff compliment in relation to CPIX, Eskom approved tariff increase The total revenue budget is made up of grants which forms a large percentage of the operational budget, A small percentage of the operational budget is made up of service charges, namely, water, electricity, sewerage and refuse removal.
T.5.0.1
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE
INTRODUCTION TO FINANCIAL STATEMENTS This component provides an overview of the financial performance of the municipality and focuses on the financial health of the municipality.
The municipality is unable to collect enough revenue from its own revenue sources to finance its operations. The revenue collection from the service charges, namely, electricity, water, sanitation, and refuse removal. The collection from these sources of revenue needs to be increased drastically by implementing credit control and debt management in place. As it stands current the revenue collections are extremely low.
The municipality is classified by CoGTA as in financial distress after the assessment was conducted. As a result, the municipality cannot meet its financial obligations in its entirety. The municipality incurred a deficit of R45m in the financial year under review. The municipality’s current liabilities exceed its current assets by R188m and as a result there exist a material uncertainty that may cast a significant doubt on the municipality’s ability to continue as a going concern.
5.1 STATEMENTS OF FINANCIAL PERFORMANCE
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Financial Performance of Operational Services
Year -1 Year 0 Year 0 Variance Description Original Adjustments Original Adjustments Actual Actual Budget Budget Budget Budget Operating Cost Water 1,046 10,204 10,204 7,682 -32.82% -32.82% Waste Water (Sanitation) 4,101 63,010 63,010 5,216 -1107.94% -1107.94% Electricity 36,159 48,673 48,673 23,087 -110.83% -110.83% Waste Management 5,268 6,536 6,536 6,439 -1.52% -1.52% Housing 2,725 4,767 4,767 2,162 -120.50% -120.50% Component A: sub-total 49,299 133,190 133,190 44,585 -198.73% -198.73% Waste Water -23.53% -23.53% (Stormwater Drainage) 4,448 6,807 6,807 5,510 Roads 4,315 8,123 8,123 3,289 -146.97% -146.97% Transport 261 906 906 401 -125.68% -125.68% Component B: sub-total 9,023 8,455 8,624 9,554 11.50% 9.73% Planning – 6,712 6,712 6,516 -3.01% -3.01% Budget and Treasury 129,728 351,841 351,841 24,239 -1351.56% -1351.56% Component B: sub-total 129,728 358,554 358,554 30,755 -1065.83% -1065.83% Human Resource – 2,518 2,518 11,542 78.18% 78.18% Licencing – 11,127 11,127 11,888 6.40% 6.40% Component C: sub-total – 13,646 13,646 23,430 41.76% 41.76% Community & Social 0.00% 0.00% Services 4,518 1,046 1,046 – Libraries – 4,971 6,157 4,971 0.00% -23.86% Housing – 4,767 4,767 2,162 -120.50% -120.50% Libraries – 4,113 4,113 3,632 -13.25% -13.25% Parks – 2,910 2,910 2,540 -14.59% -14.59% Cemeteries – 1,860 1,860 1,307 -42.33% -42.33% Component D: sub-total 4,518 19,665 20,852 14,610 -34.60% -42.72% Total Expenditure 192,569 533,510 534,865 122,935 -333.98% -335.08% In this table operational income is offset against operational expenditure leaving a net operational expenditure total for each service as shown in the individual net service expenditure tables in chapter 3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.1.2
5.2 GRANTS
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Grant Performance
Year -1 Year 0 Year 0 Variance Actual Budget Adjustments Actual Original Adjustments Description Budget Budget Budget (%) (%)
Operating Transfers and Grants National Government: 95,930,000 108,353,000 108,353,000 108,326,000 Equitable share 92,403,000 102,431,000 102,431,000 102,404,000 Municipal Systems Improvement 2,345,000 2,415,000 2,415,000 2,415,000 Department of Water Affairs – 1,875,000 1,875,000 1,875,000 Levy replacement – - - – EPWP 1,182,000 1,632,000 1,632,000 1,632,000 Provincial Government: 1,710,000 1,194,000 1,194,000 2,689,000 Health subsidy – – Housing – – Ambulance subsidy – – Sports and Recreation 1,710,000 1,194 ,000 1,194 ,000 2,689,000
District Municipality: – – – –
Other grant providers: – – – –
Total Operating Transfers and 97,640,00 109,547,00 109,547,000 111,014,000 Grants Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Full list of provincial and national grants available from published gazettes.
T 5.2.1
5.3 ASSET MANAGEMENT
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INTRODUCTION TO ASSET MANAGEMENT
The municipality needs to ensure that all its assets are recorded in the fixed assets register as and when they are acquired. The assets acquired mustbe depreciated accordingly.
In the year under review all the internal roads of the municipality which are gravelled were not recorded in the assets register of the municipality. The gravel roads not recorded amounted to R238m. T5.3.1
COMMENTON ASSET MANAGEMENT:
The municipality capital budget has decreased from R39 730 000.00 to R26 700 000.00 and will be funded from national grants. Given the financial status of the municipality, the municipality should consider renewal of existing assets. T5.3.3
Repair and Maintenance Expenditure: Year 0
Original Adjustment Budget Actual Budget Budget variance Repairs and Maintenance Expenditure 12320000 6767000 1354596 89% T 5.3.4
COMMENT ON REPAIR AND MAINTENANCE EXPENDITURE:
The repairs and maintenance constitute 6% of the budget whereas the norm is 8%. T5.3.4.1
5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS
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T5.4.1
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T 5.4.2
T 5.4.3
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T5.4.4
T5.4.5
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T5.4.6
T5.4.7
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COMMENT ON FINANCIAL RATIOS:
The financial viability indicators are evident that the municipality would not be able to honour its obligations. The municipality incurred a net deficit of R45 507 945 for the year under review, while current liabilities exceeded the current assets at year-end by R188 685 840. The accounts payable at year end was R126 258 433 which means the municipality will not be able to service short term creditors when they fall due. The electricity distribution losses amount to R12 790 355. The municipality also owes Eskom R82m. Creditors’ payment period for the year under review is 778 days from 644 day of 2017/18, which clearly indicates that the municipality is experiencing difficulties to pay their short-term obligations. Creditors as a percentage of cash and cash equivalents is 21 179.20% for the current year and 164 062% for the previous financial year. The municipality should generate cash by collecting outstanding debts to settle short term obligations to improve the liquidity and solvency position.The debtors’ collection period is 93days. The Municipality must attempt to control certain discretionary expenditure items such as telephone, excessive overtime claims, acting allowances on positions that are not budgeted and travelling costs in the form of accommodations and subsistence and travelling costs while making every effort to improve its revenue collection in line with the credit control policy T5.4.9
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COMPONENT B: SPENDING AGAINST CAPITAL BUDGET . INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET
As at the end of June 2019 the actual Capital Budget is reflected below as follows
TOTAL CAPITAL EXPENDITURE Land and Buildings R149 573 326.00 Machinery and Equipment R29 804.00 Furniture and Equipment R967 817.00 Motor vehicles R3 448 001.00 Office Equipment R49 744.00 Computer Equipment R1 055 847.00 Infrastructure assets R95 943 095 Infrastructure Roads R238 636 801.00 Storm Water Infrastructure R12 624614.00 Water supply Network Infrastructure R1 524 769.00 Electrical Network Infrastructure R74 379 034.00 Sanitation Network Infrastructure R388 301.00 Solid Waste infrastructure R671 210 Work in Progress R61 670 280.00 Other Assets R595 212.00 TOTAL R641 471 279.00 The capital budget actuals for the 2018/19 financial year amounts to R26 700 000.00 across the various categories namely Land and Building, Infrastructure, Community Assets and other PPE combined.100% of the revenue is funded primarily from Grants and Subsidies. T 5.5.0
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5.5 CAPITAL EXPENDITURE R million Original Adjustment Un-audited Original Adjusted Budget Budget Full Year Budget Budget Total variance Variance
Capital Expenditure 30 30 20 33.9% 33.9% 30 30 20 33.9% 33.9% Operating Expenditure 172 986 987 -472.0% -0.1% 167 167 253 -51.3% -51.3% Total expenditure 197 197 253 -28.4% -28.4% Water and sanitation 23 20 16 32.7% 23.2% Electricity 44 44 – 100.0% 100.0% Housing 3 3 3 11.5% 11.5% Roads, Pavements, Bridges and storm water 16 16 29 -80.3% -80.3% Other 80 – – 100.0% 167 167 133 20.5% 20.5% External Loans – – – Internal contributions – – – Grants and subsidies 89 89 121 -36.0% -36.0% Other – – 89 89 141 -58.2% -58.2% External Loans – – – Grants and subsidies – – – Investments Redeemed – – – Statutory Receipts (including VAT) – – – Other Receipts – – –
1,182 1,189 1,192 -0.8% -0.2% Salaries, wages and allowances 81 81 – 100.0% 100.0% Cash and creditor payments 56 56 532 -852.2% -852.2% Capital payments 30 30 141 -375.3% -375.3% Investments made – – 43 External loans repaid – – 64 Statutory Payments (including VAT) – – 92 Other payments – – 1 197 197 1,183 -501.3% -501.3%
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5.6 SOURCES OF FINANCE Capital Expenditure - Funding Sources: Year 17/18 to Year 18/19
Year 17/18 Year 18/19 Actual Original Adjustment Actual Adjustment to Actual to Details Budget Budget OB Variance OB (OB) (%) Variance (%) Source of finance External loans 0 0 0 0 0.00% 0.00% Public contributions and donations 0 0 0 0 0.00% 0.00% Grants and subsidies 26690 30739 30739 21155 0.00% -31.18% Other 0 0 0 0 0.00% 0.00% Total 26690 30739 30739 21155 0.00% -31.18% Percentage of finance External loans 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Public contributions and donations 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Grants and subsidies 100.0% 100.0% 100.0% 100.0% 0.0% 100.0% Other 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Capital expenditure Water and sanitation 0 0 0 0 0.00% 0.00% Electricity 0 1500 1500 1500 0.00% 0.00% Housing 0 0 0 0 0.00% 0.00% Roads and storm water 26058 27939 27939 19655 0.00% -29.65% Other 0 0 0 0 0.00% 0.00% Total 26058 29439 29439 21155 0.00% -29.65% Percentage of expenditure Water and sanitation 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Electricity 0.0% 5.1% 5.1% 7.1% 0.0% 0.0% Housing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Roads and storm water 100.0% 94.9% 94.9% 92.9% 0.0% 100.0% Other 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% T 5.6.1
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COMMENT ON SOURCES OF FUNDING: The primary funding sources of Tswaing Local Municipality comprises largely of the following: 1. Operating Revenue and Capital Revenue 1.1. Grant Funding 1.1.1. Equitable Shares 1.1.2. Conditional Grants (MIG, FMG and INEP) 2. Own Revenue Sources 2.1. Electricity Revenue 2.2. Water Revenue 2.3. Waste Management 2.4. Property on Investments 2.5. Licenses and Traffic Violation Fines 2.6. Rental Income T 5.6.1.
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5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS
Capital Expenditure of 5 largest projects*
Variance: Current Current: Year 0 Year 0 Name of Project Actual Original Adjustmen Original Adjustmen Expenditur Variance t variance Budget t Budget e (%) (%) A -Geysdrop internal roads 9,000,000 9,000,000 2,527,406 72% 0% B - Virischgewagte internal roads 9,000,000 9,000,000 6,360,484 29% 0% C- Agisanang taxi internal roads 9,000,000 9,000,000 2,268,163 75% 0% D - Delareyville internal roads 3,294,000 3,294,000 819,945 75% 0% E - Mofufutso Internal Roads 9,000,000 9,000,000 5,133,515 43% 0% * Projects with the highest capital expenditure in Year 0
COMMENT ON CAPITAL PROJECTS:
The municipality is reliant on consultants on the implementation of Municipal Infrastructure Grant projects. There are three Project Management Unit Officials appointed to assist to manage the projects on behalf of the municipality. The team consist of Manager Project Management Unit, Technician and Administrative Officer. The consultants, professional engineers, are appointed on a three years cycle to assist the project management unit team with technical expertise.
T 5.7.1.
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COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS
INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS
Cash and cash management is vital for both the short – term and long-term survival of the municipality. It is essential that an effective cash management process is established that will contribute to a positive current ratio, whereby the municipality’s turnaround of current assets in relation to current liabilities is at least 2:1. This ration refers to the municipality’s ability to convert current assets into cash and settle current liabilities within a 12 months period.
Tswaing Local Municipality does not have any investments except for a call account which is used to safe guard projects money.
T 5.9
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5.9 CASH FLOW Cash Flow Outcomes
Year 17/18 Current: Year 18/19 Description Audited Original Adjusted Actual Outcome Budget Budget CASH FLOW FROM OPERATING ACTIVITIES Receipts
Ratepayers and other 99,020 100,055 100,055 55,060
Government - operating 101,607 111,827 111,827 111,827
Government - capital 39,730 26,700 26,700 26,700
Interest 235 112 112 80
Dividends 20 20 20 30 Payments
Suppliers and employees (174,641) (181,848) (181,848) (156,705)
Finance charges – (336) (336) (531) Transfers and Grants
NET CASH FROM/(USED) OPERATING ACTIVITIES 65,970 56,511 56,511 36,461
CASH FLOWS FROM INVESTING ACTIVITIES Receipts Proceeds on disposal of PPE – – – – Decrease (Increase) in non-current debtors – Decrease (increase) other non-current receivables Decrease (increase) in non-current investments Payments
Capital assets (42,666) (26,700) (26,700) (35,642)
NET CASH FROM/(USED) INVESTING ACTIVITIES (42,666) (26,700) (26,700) (35,642)
CASH FLOWS FROM FINANCING ACTIVITIES Receipts Short term loans Borrowing long term/refinancing Increase (decrease) in consumer deposits – – Payments Repayment of borrowing – – NET CASH FROM/(USED) FINANCING ACTIVITIES – – – –
NET INCREASE/ (DECREASE) IN CASH HELD 23,304 29,811 29,811 820
Cash/cash equivalents at the year begin: 301 94
Cash/cash equivalents at the year end: 636 29,811 29,811 914 Source: MBRR A7 T 5.9.1
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5.10 BORROWING AND INVESTMENTS
INTRODUCTION TO BORROWING AND INVESTMENTS According to MFMA section 45(1) A municipality may incur short-term debt only in accordance with and subject to the provisions of the Act and only when necessary to bride; 1. Shortfalls within a financial year during which the debt is incurred, in expectation of specific and realistic anticipated income to be received within that financial year or 2. Capital needs within a financial year, to be repaid from specific funds to be received from enforceable allocations or long-term debt commitment
Tswaing Local Municipality did not use any external borrowings as a source for capital projects, also the municipality did not utilise any bank overdraft facility. T 5.10.1
Actual Borrowings: Year -2 to Year 0
Instrument Year -2 Year -1 Year 0 Municipality 0 0 0 Long-Term Loans (annuity/reducing balance) 0 0 0 Long-Term Loans (non-annuity) 0 0 0 Local registered stock 0 0 0 Instalment Credit 0 0 0 Financial Leases 0 0 0 PPP liabilities 0 0 0 Finance Granted by Cap Equipment Supplier 0 0 0 Marketable Bonds 0 0 0 Non-Marketable Bonds 0 0 0 Bankers Acceptances 0 0 0 Financial derivatives 0 0 0 Other Securities 0 0 0 Municipality Total 0 0 0
Municipal Entities Long-Term Loans (annuity/reducing balance) 0 0 0 Long-Term Loans (non-annuity) 0 0 0 Local registered stock 0 0 0 Instalment Credit 0 0 0 Financial Leases 0 0 0 PPP liabilities 0 0 0 Finance Granted by Cap Equipment Supplier 0 0 0 Marketable Bonds 0 0 0 Non-Marketable Bonds 0 0 0 Bankers Acceptances 0 0 0 Financial derivatives 0 0 0 Other Securities 0 0 0 Entities Total 0 0 0 T 5.10.2
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Municipal and Entity Investments
Year -2 Year -1 Year 0 Investment* type Actual Actual Actual Municipality 0 0 0 Securities - National Government 0 0 0 Listed Corporate Bonds 0 0 0 Deposits - Bank 0 0 0 Deposits - Public Investment Commissioners 0 0 0 Deposits - Corporation for Public Deposits 0 0 0 Bankers’ Acceptance Certificates 0 0 0 Negotiable Certificates of Deposit - Banks 0 0 0 Guaranteed Endowment Policies (sinking) 0 0 0 Repurchase Agreements - Banks 0 0 0 Municipal Bonds 0 0 0 Other 0 0 0 Municipality sub-total 0 0 0
Municipal Entities Securities - National Government 0 0 0 Listed Corporate Bonds 0 0 0 Deposits - Bank 0 0 0 Deposits - Public Investment Commissioners 0 0 0 Deposits - Corporation for Public Deposits 0 0 0 Bankers’ Acceptance Certificates 0 0 0 Negotiable Certificates of Deposit - Banks 0 0 0 Guaranteed Endowment Policies (sinking) 0 0 0 Repurchase Agreements - Banks 0 0 0 Other Entities sub-total 0 0 0
Consolidated total: 0 0 0 T 5.10.4
COMMENT ON BORROWING AND INVESTMENTS: The municipality did not have any investments and no external borrowings were used as a source for capital expenditure T 5.10.5
511 PUBLIC PRIVATE PARTNERSHIPS
PUBLIC PRIVATE PARTNERSHIPS The Municipality did not have any Public Private Partnership agreements in place for the under review.
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COMPONENT D: OTHER FINANCIAL MATTERS
5.12 SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT The Supply Chain Policy has been approved by Council, however the policy is not fully complaint with National Treasury Supply Chain Management Regulations. Functioning of SCM unit – The unit is operating with only four (4) employees and they are currently undergoing SCM training on Supply Chain Management processes.
Functioning of Bid Committees – The Accounting Officer has as per section 26 of the Supply Chain Management regulations appointed the following committees; 1. Bid Specification Committee 2. Bid Evaluation Committee 3. Bid Adjudication Committee The bid committees were not constituted in line with treasury regulations and approved policy. The challenge with this is that the municipality does not have enough senior managers as well as relevantly qualified officials to form part of the bid committees. Members of the committees were not trained during the year under review.
Contract Management – Section 75(1)(g) of the MFMA stipulates that the municipality must place all awarded contracts above certain value on the municipal website. Regulation 23(c)(iii) also specifies that all bid results must be submitted/advertised on the municipal website. The core functions of the contract management unit are: 1. To administer all contracts entered between council and responsive bidders 2. Facilitate the signing of the SLA with responsive bidder. 3. Monitoring of the contracts signed for the delivery of various goods and services in consultation with relevant departments. However, it must be noted that due to capacity challenges in the form of personnel the functions were not fully implemented.
Performance Management – Section 116(2)(d) stipulated that every contract that the municipality enters into, a regular report must be submitted to council detailing its management and the performance of the contractor. In order to be able to do this, the accounting Officer is thus required to compile a schedule summarizing progress against all the contracts that the municipality entered into.
The Provincial Treasury has appointed consultants to assist the municipality to compile a contract management of both creditors, contracted services and MIG projects. Implementation of procurement plan- Timeous implementation of procurement plans by user Departments continues to be a challenge. T5.12.1
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5.13 GRAP COMPLIANCE
GRAP COMPLIANCE
GRAP provides the rules by which municipalities are required to maintain their financial accounts. Successful GRAP compliance will ensure that municipal accounts are comparable and more informative for the municipality. It will also ensure that the municipality is more accountable to its citizens and other stakeholders. Information on GRAP compliance is needed to enable National Treasury to assess the pace of progress and consider the implications.
The Municipality is in the process of ensuring that its financial system is GRAP compliant. Successful GRAP compliance will ensure that the municipal accounts are comparable and more informative. It will also ensure that the municipality is more accountable to its citizen and other stakeholders. Information on GRAP compliance is needed to enable National Treasury to assess the pace of progress and consider the implications GRAP is the acronym for Generally Recognized Accounting Practice and it provides the rules by which municipalities are required to maintain their financial accounts. Successful GRAP compliance will ensure that municipal accounts are comparable and more informative for the municipality. It will also ensure that the municipality is more accountable to its citizens and other stakeholders. Information on GRAP compliance is needed to enable National Treasury to assess the pace of progress and consider the implications. T5.13.1
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CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS
INTRODUCTION
Note: The Constitution S188 (1) (b) states that the functions of the Auditor-General includes the auditing and reporting on the accounts, financial statements and financial management of all municipalities. MSA section 45 states that the results of performance measurement… must be audited annually by the Auditor-General.
The Municipality received a qualified audit opinion. Basis of qualification are as follows: Property, plant and equipment Receivables from exchange transactions Trade and other receivables Payables from exchange transactions Value added tax payable Service charges Irregular Expenditure Unauthorized and fruitless and wasteful expenditure Material Losses
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COMPONENT B: AUDITOR-GENERAL OPINION YEAR 0 (CURRENT YEAR)
6.2 AUDITORGENERAL REPORT YEAR 0
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POST AUDIT ACTION PLAN (PAAP): 2018/2019
PROGRESS REPORT TO DATE: JANUARY 2020
1. The Audit Outcome for 2018/2019
Tswaing Local Municipality has been able to maintain its Qualified Audit Opinion for the financial year 2018/2019, given the challenges as outlined in this presentation, some of which are the following:
Human resource capacity, both at senior management levels, and the BTO office in key critical posts such as Accountants (in Asset Management, Revenue, Expenditure, Credit Control, etc.) remains a challenge.The finalization of the organisational structure is targeted to be finalised by end March 2020.
The above factor has a bearing on the achievement of service delivery objectives, and the implementation of any action plan designed to improve the municipality’s operations, such as Financial recovery Plan (Revenue Enhancement, and collection of consumer debts), Post Audit Action Plan, Back-2-Basics Programme, etc.
The qualification obtained, is mainly on the Annual Financial Statements, and this is attributed to the use of external consultants in the preparation thereof, the payment of which is funded by Provincial Treasury.
2. 5 Years Comparative Analysis of Audit Outcomes
YEAR AUDIT OUTCOME AUDIT OUTCOMES
Year 1 Disclaimer 2015
Year 2 Adverse
2016 2017 Year 3 Qualification 2018 2019
Year 4 Unqualified (Emphasis)
Year 5 Unqualified (Clean)
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1. AUDIT REPORT PARAGRAPHS: BASIS FOR QUALIFIED AUDIT OPINION
Annual Financial Audit Findings: Issues Recommended Reporting Time Statement(AFS) Component Raised Remedial Action Frames
Material Misstatement: Management should Property, Plantand Equipment Management did not ensure to ensure that road Monthly implement proper record infrastructure fixed keeping in a timely manner to asset register is January – June 2020 ensure that complete, relevant complete and that all and accurate information is transferred assets are accessible and available to accounted for in the support financial and municipalities performance reporting. accounting records
corrected: Undeposited Management should Trade Receivables (Consumer receipts not supported and long ensure that their Monthly Debtors) from Exchange and consumer debtors not impaired, revenue collection Non-Exchange Transactions Consumer debtors‟ balance at system is consistent January – June 2020 year-end incorrectly recognised with the Municipality (adjusted), with insufficient System Act and that the audit evidence due to lack of credit control and debt proper record-keeping collection policy is enforced and complied to by the municipality debtors
Value Added Tax Payable Material Misstatement: Vat Management should Monthly reconciliation could not be ensure that irregular performed to ensure expenditure is January – June 2020 completeness and accuracy of disclosed exclusive of records VAT as the municipality is registered for VAT.
Payables (Creditors) from Material Misstatements Not Management should Monthly Exchange Transactions Corrected: Sufficient investigate the appropriate audit evidence accounts and January – June 2020 could not be provided to determine if the confirm whether any adjustment accounts are in relating to trade payables of existence. Debtors R126 258 433 included in account balances that payables was necessary have incorrect credit balance to be adjusted
Revenue: Service Charges Material Misstatement Not Management should Monthly Corrected: Management did prepare regular, not prepare regular, accurate accurate and complete January – June 2020 and complete financial and financial and performance reports that are performance reports supported and evidenced by that are supported and reliable information regarding evidenced by reliable services charges. information.
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Annual Financial Statement Audit Findings: Issues Recommended Reporting Time (AFS) Component Raised Remedial Action Frames
Disclosures: Irregular Material Misstatement Not Management must Monthly Expenditure Corrected: ensure that SCM prescripts are adhered January – June 2020 The municipality made to and irregular payments in contravention with expenditure is correctly the supply chain management accounted for, requirements which was not exclusive of vat disclosed as irregular expenditure and value added tax was also incorrectly included in the irregular expenditure disclosed.
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Comment: A 3 Years‟ Comparative Analysis of Total Number of Audit Paragraphs Affecting the Audit Outcome: 2016/2017, 2017/2018 & 2018/2019
Audit Paragraphs Financial Year Audit Opinion Total Resolved Outstanding
2018/2019 (Current) Qualified 8 0 8
2017/2018 Qualified 3 2 1
2016/2017 Qualified 4 3 1
Comment: A Three (3) Years‟ Comparative Analysis of Total Audit Findings
Financial Year Audit Opinion Total Audit Findings
2018/2019 Qualified 205
2017/2018 Qualified 92
2016/2017 Qualified 105
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3. Audit Findings: Matters of Emphasis
The following are emphasis of matter raised by the Auditor General, which must be brought to the attention of Users (Stakeholders):
Material Uncertainty Related to Going Concern Unauthorised, Irregular and Fruitless & Wasteful expenditure – Consequence Management (MFMA: sec.32) not instituted. Material Losses: Bulk electricity Purchases
Reporting Audit Finding: AFS Recommended Remedial Issues Raised Time Component Action frames
(a) Net Operating Deficit (Loss): Going Concern: Material R45.5 million Improvement of revenue Monthly uncertainty on the (b) Liquidity (Net Current Liability): generation (enhancement) municipality’s ability to R189m & debt collection. continue operating
Bulk electricity Purchases Material Losses: R12.7 million Implement month-end Monthly procedures & reconciliations
Implementation of SCM: UIF & Wasteful Internal control deficiency, Consequence Monthly Expenditure thereby leading to Non- Management: Management compliance in accordance with to ensure that adequate sections 32, and 62(1) (d) of controls are implemented to MFMA. prevent UIF&W, and recover losses incurred from responsible officials ensures compliance with applicable laws and regulations.
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2. CHALLENGES & REMEDIAL ACTIONS
Below are the other matters from the Management Report
Responsible Item No. Audit Finding Query: Root Cause Remedial Action Plan / Progress: Official The Municipality have succeeded in filling position of Municipal Manager, CFO and Director Corporate. Positions of Director Technical and Community Services remains vacant though the former is awaiting results of assessment and the latter is at shortlisting stage. Budget and Treasury Office continues to have challenges Internal control deficiency findings on the on Capacity, especially critical positions of SCM staff and Annual Performance Report and Revenue Office. Compliance with Legislation: The above scenarios have a huge negative impact on the audit findings raised on the Annual Performance Report, with regards to: (1) Effective and efficient Leadership towards clean
1 Internal Controls Municipal Manager administration. (2) The municipality’s capability to address prior years’ audit findings; (1) Leadership's philosophy and operating style that is not contributing (3) Installation of Good governance towards clean administration; (2) Lack of implementation and monitoring of action plans to address prior year audit findings; (3) Accounting authority's failure to install good governance (e.g. Risk management policy, fraud prevention, and application of external audit recommendations);
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Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official The Review processes to be undertaken by (1) Reported indicators and targets not consistent, not well defined, management through the PMS (IDP) office, with not measurable and verifiable; the assistance from the Technical PMU unit, and Provincial COGTA & HS, to ensure: (1) That management develops, approves, and implement formal processes and system of collection, collation, verification, monitoring, (2) Difference between APR and supporting evidence. reporting and storing (record-keeping) of actual performance data to enable accuracy, validity and completeness of performance reporting. (2) Monitoring of projects, and their completion (3) The spatial development plan, disaster management plan and within the timeframe Reported indicators and budget projection were not attached to the adopted Integrated targets are consistent with those as per IDP and Development Plan. SDBIP. (4) KPIs were not set in respect of each of the development priorities (3) Reported achievements are reliable and and objectives set out in the IDP. supported by POE’s. Municipal (4) compliance relating to performance Predetermined Manager / 2 management system. Objectives (4) Mid-term report not assessed by 25 January 2019 and not Acting PMS (5) compliance relating to Water Service. complete. Manager (6) Performance indicators and related targets (5) Reported strategic objectives are not consistent with planned are not measurable, verifiable and properly strategic objectives. presented and disclosed. (7) Road infrastructure - monitoring of projects, (6) Inconsistency between planned targets in the IDP and SDBIP. and their completion within the timeframe. (7) No comparison with performance of the previous year. Management should ensure that all requests for (8) Basic Service Delivery - Reported strategic objectives are not information during audit are strictly adhered to non consistent with planned strategic objectives. compliance is escalated to senior management. (9) Key performance areas not reported in the annual performance
report. (10) Request for information 61 partially submitted. (11) Reported achievement is not supported by underlying records. (12) Indicator reported in duplicate in the annual performance report. (13) Non-compliance of the performance management system with
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legislative guidance. Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official Management should prepare regular, accurate and complete financial and performance reports that are (1) Differences noted in the fair value recalculation. supported and evidenced by reliable information to ensure that biological assets are accurately valued at fair value. Management should ensure that all requests for (2) Request for information 13 partially submitted. information during audit are strictly adhered to non- compliance is escalated to senior management. (3) PPE Land and Buildings - Request for information 18 not
submitted. The plan is to be in possession of a complete Asset Register by the end of 2019-20 financial period, include all (4) Incomplete disclosure notes. immovable and movable assets that have correct values according to their lifespan. Management should ensure that land and buildings are (5) The asset register does not have sufficient details - supported with title deeds to confirm rights and obligations Biological Assets. for all immovables on the asset register. Immovable CFO/SCM 3 Management should ensure that all subsequent events Assets Manager identified after year end but before the issue of the financial (6) Incomplete disclosure notes - Heritage Assets. statements is disclosed in the notes to theAFS.subsequent events will be disclosed in the 2019-20 AFS as notes. (7) Subsequent events not disclosed in the notes to the AFS. (8) Road infrastructure asset register is incomplete. Management should ensure that property, plant and (9) Limitation for rights and obligations. equipment - land and buildings fixed asset register is complete. (10) Completeness for immovables. (11) Incorrect classification of capital expenditure on work in Classification of capital projects which are incomplete will progress. be corrected, correctly impaired and disclosed (12) Inappropriate and incomplete disclosure notes. (13) Differences on depreciation recalculation. Management should ensure that the estimation for residual (14) Incorrect application of Impairment Methodology. values for property, plant and equipment is appropriately done - GRAP 17,06
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(15) Incorrect residual values for immovable assets. Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official CFO, SCM, Dir. Management to ensure that the movement documentation Movable (1) No movement forms are completed for the movement of 4 Community is completed and handed to the manager before any assets. Assets Service movement of assets. In Partnership with Dept of Agriculture and Rural (2) No control over biological asset. Development, management to fence and develop the Henk Joubert Nature Reserve. (3) Completeness for movable assets.
(1) VAT returns are not submitted timeously in terms of the CFO Current appointed VAT recovery consultants are timeously VAT Act. submitting returns on time which is a positive response.
5 Taxes (2) VAT - Difference between SARS records and AFS. Monthly recons currently being pre-formed to ensure alignment
Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official Management should ensure that if interest is not charged 6 Receivables (1) Difference in the recalculation of impairment CFO on debtors then the debtors are discounted to account for the time value of money (2) Receivables - Discounting of Receivables (3) Impairment methodology not entity specific (4) Impairment not separately disclosed for property rates Management should ensure that the correct and complete (5) Generic and Biolerplate Accounting Policy disclosures are made in the notes to the annual financial statements (6) Incomplete disclosure notes (7) Difference between AFS and Impairment Calculation (8) Overstatement of Debt Impairment Expense Management should ensure that all GRAP disclosures are (9) Limitation for Undeposited Receipts made in the annual financial statements (10) Insufficient disclosures Management should ensure that the supporting (11) Prior period error disclosure not adequate documentation provided for the prior period correction
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journal agrees to the actual restatement
(12) Support of prior period error not agreeing to the
restatement Management should ensure that all debtors have sufficient (13) Classification issue within categories and appropriate supporting documentation Management to ensure that they adequately assess all (14) Unable to confirm the existence and rights of debtors debtors for impairment indicators (15) Impairment assessment not done on all debtors Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official Cash and (1) ISS.51: Cash and Cash Equivalents - The bank name Management should disclose the names of the banks 7 cash not indicated in note 6 CFO where the accounts are held for all of their bank accounts. equivalents (2) Management to ensure that the bank account details of the municipality are submitted to Provincial and national
treasury, and Auditor General annually, as required by MFMA.
(1) Investment reports not submitted to the mayor Core elements of Investment policies as prescribed in Municipal Investment Regulations, Government Gazette No 27431, 1 April 2005w to be included in the investment policy. Management to ensure that Section 71 report
8 Investments CFO / MM inclusive of investment is sent to the Mayor before the 10th of every month. Management to take the necessary corrective measures, in (2) Investments made in listed shares in contravention of consultation with Municipal Council, to ensure compliance Regulation 6 of the Municipal Investment Regulations. with Municipal Investment Regulations (Regulation 6).
(1) Budget vs Actual - Disagreement with reasons provided (1) Management should ensure that reconciliations are Planning & by management for the differences between the budgeted CFO 9 performed, and also review disclosure of the Statement of
Budget and actual figures. Comparison Budget and Actual performance.
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(1) Statement of Comparison of Budget and Actual amounts - Incomplete presentation and disclosure in terms of GRAP 24. (1) Management to ensure that amounts as per disclosure (2) Risk management - Incomplete disclosure in terms of notes agree with amounts as per supporting documents Financial 10 GRAP 104. CFO (registers / reconciliations), and that the Relevant
Statements (3) Annual financial statement - Material adjustment made to accounting policies are disclosed in the AFS as prescribed the submitted annual financial statement. by GRAP 1. (4) Other financial assets - Not all disclosures made in terms of GRAP and MFMA requirements.
Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official (1) Payment received in advanced - Difference between the Management should perform monthly reconciliations system and the listing. between the system and the payments received in advanced listing to ensure that all pre-payments as per listing is accurately captured onto the system (2) Accrued leave pay - Recalculation difference. Management should ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting. 11 Creditors (3) Insufficient support submitted for engine operators. CFO (4) EMP201 not submitted or paid within prescribed time Management to ensure that the EMP 201 is submitted and frame. paid, within 7 days after month end. (5) Incorrect allocation of PAYE, SDL and UIF payments to creditors. Management should ensure that complete, relevant and accurate information is accessible and available to support (6) Deposits not included in the deposits register. financial and performance reporting. (7) Inaccurate disclosure of PAYE,SDL and UIF (Note 50). (1) No monthly reconciliations were performed between the (1) Currently, there has been a monthly report of Bank eNATIS reports and the amount deposited into the bank reconciliation between eNATIS AND money deposited into Revenue account of the municipality. the bank account, to trace all the money that is going in and out of the bank. 12 CFO (2) No proof that reconciliations are performed between the (1)The municipality aims to link the cash drawer system Venus system and the Cash Drawer system. along with the Venus system to ensure that all transactions taking place under the Cash Drawer do appear on Venus and both of these systems should have
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exactly the same amounts.
(1) Municipality does not maintain register of properties (1) There will be a regular monitoring of register for subject to exemptions and rebates. properties that fall under the municipality and maintain that Register to ensure that all properties are included and billed. (4) Difference on property rates billing as per the Venus (1) Ensure that differences among property rates billing system and the recalculated property rates billing based on are minimum to have correct figures on the Valuation Roll. valuation roll. (5) Difference between the unspent conditional grants and (1) Also curb differences among unspent conditional subsidies register and the supplier invoice. grants and subsidies register. (6) Incomplete accounting policy in terms of GRAP 23 and (1) Maintain the level of GRAP Standards on Policies GRAP 9. developed by the municipality. (7) Consumers are not being charged in accordance with the (1) Correct Rates will be billed and charged to consumers approved rates as the DORA stipulates. (8) Limitation of scope - RFI 26, 25, 29 & 39 (1) The municipality has appointed Service Provider that handles Valuation Roll of the municipality and they look to include all the municipal properties at the end of 2019-20. (9) Properties being billed are not included on the valuation (1) Cigicell will have to produce all the necessary roll. information or documentation that will enable the municipality to reconcile revenue collected in behalf of the institution. (10) Insufficient supporting documentation with regards to (1) There will be a complete maintenance of a register that Cigicell. includes all the municipal properties. (11) Inability to perform an estimate in terms of GRAP (12) Municipality does not maintain register of properties subject to exemptions and rebates.
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Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official (2) No Severance and Retrenchment Policy in place. Structure currently under review, which includes staff establishment. Process aimed to be finalised end March 2020 (1) Staff establishment not reviewed for the year under A Policy review on HR policy is currently underway and will review. pass by Council once it has been completed for adoption. (2) No Severance and Retrenchment Policy in place. The Municipality has since appointed Chief Legal and Deputy Director Corporate augmenting capacity challenges to address these types of issues. (3) Proper dismissal procedures not followed and Skills Audit is underway and the reports to be updated complete employee files not kept. accordingly. (4) Non-participation on annual skills audit and prescribed It is one of the policies currently under review to address minimum competencies not reflected in the annual report. shortcomings (5) Leave Policy not updated. (1) All the Vacancies before they will go for advert, they will have to receive blessings from Council for approval, either internal or external. (6) Employee qualifications not provided. Employee (7) Vacancies not approved by Council. CFO/Director 13 Costs (8) Succession planning and transfers policies not in Corporate The anomally was corrected from March 2019. place. (9) Employees and councilors not verified. (10) Remuneration of councilors – Non-compliance with (1) Employees will provide the municipality with their complete government gazette and understatement of irregular information, stored in files under payroll or HR office, ensure expenditure. that all contracts are read and signed by all employees for agreement purposes. (11) Difference between Pay day report and General
ledger for allowances. (12) Incomplete employee files and employee contracts
not signed. (13) Salaries not in salary as per post level structure. Management should ensure that there are signed agreements in place with employees for the deduction of rentals from salaries. (15) No rental deduction letters in employee records. Management should prepare complete and accurate reconciliations between the payroll report and the general ledger.
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(16) Medical aid - Difference between the payroll report Management should ensure that salary payments made during and the GL. strikes with no agreement in place are disclosed as irregular expenditure. (17) Salaries paid during the strike not disclosed as (1) There will be internal controls on overstated overtime, irregular. employees will not be allowed to exceed the regulated number of hours worked. (18) Overtime not approved and non-compliance due to excess overtime. (19) Difference in overtime paid and overtime recalculated. Management should prepare complete and accurate reconciliations between the payroll report and the general (20) Internal control deficiencies for the appointment ledger. process. (21) Non-payment of SDL. (22) Difference between the payroll and the GL. Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official (1) Trade and other payables - No creditors reconciliations (1) Expenditure Unit will ensure creditors reconciliation is performed. reviewed by the Chief Financial Officer, signed and submitted for compliance. (2) Lease rentals on operating leases - Request for information 53 partially submitted. (3) Repairs, maintenance and operating leases (1) Discrepancies normally affects the financial state of the expenditure - Difference between invoice and general municipality therefore, the Expenditure Unit will ensure there is ledger. correlation between invoices submitted for payment and the General Ledger required by Consultants. Operating 14 (4) Transactions Recorded in the incorrect financial year. CFO Expenditure (5) Operating Expenditure - Difference between the GL (1) The Unit also aims to process invoices or rather transact and the AFS. invoices for that specific Financial Period to avoid having too many accruals on the list. (6) Overstatement for invoices not signed. (1) All paid invoices will be signed, as proof that a service has been rendered or goods have physically been received by a certain Directorate. (7) Contracted services expenditure - Invoices recorded twice in General Ledger.
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(1) Fruitless and Wasteful expenditure - Register and AFS Municipal amount for current year fruitless and wasteful does not Manager agree Management to ensure that SCM is fully centralised, internal control processes and recording of transaction and (2) Fruitless and wasteful expenditure - Difference CFO reconciliations are adhered to and done as they become due. Prohibited between invoice and register. Expenditure (3) Fruitless and wasteful expenditure - Difference (Unauthorised, between the register and the SARS statement. 15 Irregular, and Fruitless & (4) Non-compliance: Consequence management - MPAC as well as the disciplinary boards have been Wasteful Unauthorised, irregular and fruitless and wasteful SCM established to address issues of UIFW. expenditure was not reported and investigated. Expenditure) (5) Irregular expenditure - Current year balance
overstated. (6) Reasonable steps not taken to prevent irregular, unauthorised and fruitless and wasteful expenditure.
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Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official (1) Bid adjudication committee: composition is non- Management should ensure that SCM regulations are fully compliant with the requirements of section 29(2) of the adhered to on all matter procurement. SCM Regulations; (2) The municipality does not have internal audit unit in Internal audit is a district function which has been extended of place. which Tswaing is now a full participant. (3) Contract register not complete. (4) SCM policy does not cater for NT instruction 4 of 2015/16. (5) limitation of scope Fast Track security services contract. (6) Bids were not evaluated in accordance with preference point system. (7) Bids were not adjudicated by the adjudication Management should ensure that SCM and National Treasury committee. regulations are fully adhered to on all matter procurement. (8) Bidders were not evaluated for functionality in the Shaleng Internal Roads-SCM003/2018/19. Procurement & (9) The contract was awarded to the bidder that did not (1) MM / 16 Contract score the highest total number of points. CFO/ SCM Management (10) Reasons for deviation from procurement process Manager were not recorded and not approved by the CFO. (11) The reasons appear not reasonable on the basis that
it was impossible to obtain 3 written quotations. (12) The deviation was not reported to the next council (1) All Deviations will be reported to Council on a quarterly meeting. basis in the 2019-20 Financial Period. (13) The winning supplier did not submit a declaration of (1) All Bids from the Threshold of 30 000 to 200 000 to be interest. accompanied by quotations with MBD 4 Document (Declaration of Interest) in order to comply with the Regulations of SCM. (14) The changes were made to a transversal contract. (1) Changes will be applied according to the legislated Contract Management (15) VAT incorrectly accounted for. (1) The municipality has appointed VAT Recovery specialists which will ensure VAT is correctly accounted for on every registered VAT Service Provider. (16) Completeness for not obtaining the minimum required (1) SCM Unit seeks to maintain correct process of acquiring quotations. complete formal written quotations from different suppliers.
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(17) Supplier was not evaluated under PPR criteria. (1) Proper evaluation of suppliers using PPR will be applied at all times to avoid unnecessary Irregular Expenditure that has increased the 2018-19 Audit Report. (18) Contract amendment not done in accordance with the MFM Act. (19) Extension was not done in accordance with the SCM Policy, not approved by the delegated official and the total payments exceeded the contract amount. (20) Irregular expenditure is understated due to an expired contract Contract register is now in place to assist in full implementation (21) The contract does not stipulate the terms and of contract management and through prescribed regulations. conditions of the contract which include provisions for the dispute resolution mechanisms to settle disputes between the parties (22) The extension of the contract is not justifiable. (23) Extension to the contract was not done in accordance with the auditee's policies and procedures
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Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official (1) Difference in the recalculation of the material losses Management should ensure that the correct details as per the disclosed. invoices are used when compiling the material losses register. (2) The recoverability of such material losses, any criminal or disciplinary steps taken and material losses recovered or written of not disclosed. (3) Financial statements not submitted within two months Management to ensure that submission is done as legislated, after year end. two months after financial year end - 31 Aug (4) Approved annual budget not published. The approved budge to be published on the municipal website. (5) No evaluation panel was established or evaluations performed for the evaluation of the Municipal Manager, senior manager’s and employees performance. (5)The municipality does not have audit and risk Internal audit is a district function which has been extended of committee in place. which Tswaing is now a full participant. (6) Statement of change in net assets - Differences
between auditors’ recalculation and disclosure in AFS. (7) Municipal structure was not reviewed for the 2018-19 Currently the structure is under review and job descriptions financial period and job descriptions of municipality no 17 Compliance MM/Directors being evaluated. available. (8) Annual financial statement - Material adjustment
made to the submitted annual financial statement.
(9) Minimum SLA requirements are not included in BCX
SLA. (10) Payroll journal not signed.
(11) Bank reconciliations not performed on Money
Market Account. (12) Bank reconciliation not reviewed by senior
personnel. (13) Performance agreements not in place. (1) The institution has been Vetting specifically Senior Managers over the years, the function to be extended to other employees in the future. (14) Vetting not performed for all employees. Management is in the process of Structure Review and the positions of risk will be addressed once finalised.
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The Municipality should start strict implementation of credit control and debt collection. (16) Long outstanding debtors not followed up. (1) Performance management has only applied to the senior management (key management) in the past, the organizations plans to apply performance management on all the employees, this will increase the level of motivation among employees and improve their capacity. (17) No performance agreements for employees other (1) Risk management Directorate will be established, than key management. immediately after the Organizational Structure has been finalised and fully functional to mitigate municipal risks. The municipality plans to form the disciplinary and Fraud Committee in one place, Audit queries will therefore be minimised. (18) No guidance policy for risk assessment, risk (1) All Policies developed by the institution will be discussed strategy or plan and no risk assessment performed for and adopted by Council for 2019-20 Financial Period, to make the financial year. sure that going forward it eliminates some of the loopholes which may come as a bad image for the office. (19) Policies not approved or not reviewed during the (1) With the assistance of Consultants, they have ensured the 2018/2019 financial year. municipality that the Fixed asset register, that will be submitted for the 2019-20 Financial Period will have complete details, verification will be done thoroughly. (20) Fixed asset registers have incomplete details.
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Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official (1) No fraud risk assessments performed by MM / CFO / (1) Risk management Directorate, Internal Audit is part of Risk management. 18 Director: Corporate the new structure review. Management Services
(1) Internal Control Deficiency: Stock requisition forms SCM(Stores) has made Inventory one of their priority not approved before issuing inventory. segments for the 2019-20 Financial Period and aims to 19 Inventory (2) ISS.66: Inventory- Incomplete disclosure. CFO ensure that issuing of stocks goes along with issuing stock requisition on the system, correlation will be prioritized to avoid having multiple discrepancies.
(1) Fixed Asset Register does not include the minimum required information. (2) Internal Control Deficiency - Insurance contract for assets does not state if all the assets are covered. MM / Acting Management must ensure that the asset register include Investment Director: all the necessary requirement as per Section 62(1)(c)(i) of 20 (3) Investment Property - Incomplete disclosure in
Property terms of GRAP 16 . Community the MFMA and the disclosure thereof is in line with GRAP Services 16.
(4) Investment Property - Completeness.
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Item Responsible Audit Finding Query: Root Cause Remedial Action Plan / Progress: No. Official
Planning: No IT governance framework in place: (1) No ICT Committee in place.
(2) No formal process in place to grant users access to IT Systems. (3) No formal process and procedure in place with Management should ensure that the municipality has and regard to reviewing users' access and privileges on an maintains effective, efficient and transparent systems of annual basis. financial, risk management and internal control relating to (4) No formal request for access forms. its IT functions by:
(5) Formal written policy or process with regard to system updates and upgrades have not been implemented. (6) Vendors' access to financial systems are not monitored by the municipality. Director: Information Corporate 1. Developing and implementing IT Governance 21
Technology Services / IT Framework (7) The municipality does not have a formal written IT Manager backup strategy.
2. Developing and implementing IT Strategic Plan (8) Workstation does not have the recommended anti- virus software installed. 3. Performing an IT risk assessment for the financial year,
(9) No backups are performed for the Cash Drawer financial system.
4. Developing and implementing IT Security Policy.
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Item Audit Query: Root Cause Responsible Remedial Action Plan / Progress: No. Finding Official
Environmental Follow-up - No or limited improvement on 22 Other Matters environmental findings and impacts reported during the MM & Directors 2017/18 environmental focus audits (and prior).
______MR. R.E. MOGJOE MR. M.I. MORUTI CHIEF FINANCIAL OFFICER MUNICIPAL MANAGER DATE: DATE:
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GLOSSARY
Accessibility Explore whether the intended beneficiaries are able to access services indicators or outputs. Accountability Documents used by executive authorities to give “full and regular” documents reports on the matters under their control to Parliament and provincial legislatures as prescribed by the Constitution. This includes plans, budgets, in-year and Annual Reports. Activities The processes or actions that use a range of inputs to produce the desired outputs and ultimately outcomes. In essence, activities describe "what we do". Adequacy The quantity of input or output relative to the need or demand. indicators Annual Report A report to be prepared and submitted annually based on the regulations set out in Section 121 of the Municipal Finance Management Act. Such a report must include annual financial statements as submitted to and approved by the Auditor-General. Approved Budget The annual financial statements of a municipality as audited by the Auditor General and approved by council or a provincial or national executive. Baseline Current level of performance that a municipality aims to improve when setting performance targets. The baseline relates to the level of performance recorded in a year prior to the planning period. Basic municipal A municipal service that is necessary to ensure an acceptable and service reasonable quality of life to citizens within that particular area. If not provided it may endanger the public health and safety or the environment. Budget year The financial year for which an annual budget is to be approved – means a year ending on 30 June. Cost indicators The overall cost or expenditure of producing a specified quantity of outputs. Distribution The distribution of capacity to deliver services. indicators Financial Includes at least a statement of financial position, statement of Statements financial performance, cash-flow statement, notes to these statements and any other statements that may be prescribed. General Key After consultation with MECs for local government, the Minister may performance prescribe general key performance indicators that are appropriate and indicators applicable to local government generally.
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Impact The results of achieving specific outcomes, such as reducing poverty and creating jobs. Inputs All the resources that contribute to the production and delivery of outputs. Inputs are "what we use to do the work". They include finances, personnel, equipment and buildings. Integrated Set out municipal goals and development plans. Development Plan (IDP) National Key • Service delivery & infrastructure performance areas • Economic development • Municipal transformation and institutional development • Financial viability and management • Good governance and community participation Outcomes The medium-term results for specific beneficiaries that are the consequence of achieving specific outputs. Outcomes should relate clearly to an institution's strategic goals and objectives set out in its plans. Outcomes are "what we wish to achieve".
Outputs The final products, or goods and services produced for delivery. Outputs may be defined as "what we produce or deliver". An output is a concrete achievement (i.e. a product such as a passport, an action such as a presentation or immunization, or a service such as processing an application) that contributes to the achievement of a Key Result Area. Performance Indicators should be specified to measure performance in relation to Indicator input, activities, outputs, outcomes and impacts. An indicator is a type of information used to gauge the extent to which an output has been achieved (policy developed, presentation delivered, service rendered) Performance Generic term for non-financial information about municipal services Information and activities. Can also be used interchangeably with performance measure.
Performance The minimum acceptable level of performance or the level of Standards: performance that is generally accepted. Standards are informed by legislative requirements and service-level agreements. Performance standards are mutually agreed criteria to describe how well work must be done in terms of quantity and/or quality and timeliness, to clarify the outputs and related activities of a job by describing what the required result should be. In this EPMDS performance standards are divided into indicators and the time factor.
Performance The level of performance that municipalities and its employees strive
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Targets: to achieve. Performance Targets relate to current baselines and express a specific level of performance that a municipality aims to achieve within a given time period.
Service Delivery Detailed plan approved by the mayor for implementing the Budget municipality’s delivery of services; including projections of the revenue Implementation collected and operational and capital expenditure by vote for each Plan month. Service delivery targets and performance indicators must also be included.
Vote: One of the main segments into which a budget of a municipality is divided for appropriation of money for the different departments or functional areas of the municipality. The Vote specifies the total amount that is appropriated for the purpose of a specific department or functional area. Section 1 of the MFMA defines a “vote” as: a) one of the main segments into which a budget of a municipality is divided for the appropriation of money for the different departments or functional areas of the municipality; and b) which specifies the total amount that is appropriated for the purposes of the department or functional area concerned
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APPENDICES
APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCILATTENDANCE
Councillors, Committees Allocated and Council Attendance Council Members Full Time Committees Allocated *Ward and/ Percentage Percentage / Part or Party Council Apologies Time Represented Meetings for non- Attendance attendance
FT/PT % % Lebogang Bome Part Community and Town Planning Ward 1 ANC 100% 0% Time Vincent Moremedi Part MPAC and Town Planning Ward 2ANC 100% 0% Time MatshedisoMoreo Part Community and Town Planning Ward 3 ANC 100% 0% Time KeatlaretseBlou Part Infrastructure and Development, Ward 4 ANC 100% 0% Time MPAC Solomon Lerumo Part MPAC Ward 5 ANC 100% 0% Time Abram Modise Part Community and Town Planning Ward 6 ANC 100% 0% Time Boorman Phutiyagae Part MPAC, Infrastructure and Ward 7 ANC 100% 0% Time Development NkagisangMolehabangwe Part Finance and Corporate Ward 8 ANC 100% 0% Time TickeyChabangu Full Time Infrastructure and Development: Ward 9 ANC 100% 0% Chairperson Part Ward 10 80% 20% Silas Tsholo Time Infrastructure and Development ANC Finance and Corporate: Ward 11 100% 0% MbuyiseloBooi Full Time Chairperson ANC Part Ward 12 100% 0% Sam Letlakane Time Town Planning ANC Part Ward 13 100% 0% ThembinkosiMabovu Time MPAC: Chairperson ANC Part Ward 14 100% 0% PuseletsoMokoto Time Finance and Corporate ANC Part Ward 15 100% 0% Tumelo Mthimkhulu Time Town Planning ANC Part Finance and Corporate, Town 100% 0% OlaotseMakalela Time Planning ANC Part 100% 0% Elisa Sedumoeng Time Not yet appointed ANC Part 100% 0% Soret Viljoen Time Community and Town Planning DA
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Part 100% 0% Mothusi Thobegane Time MPAC DA Part 100% 0% Piet Miga Time Finance and Corporate DA 100% 0% Kagiso Mangwejane Full Time Town Planning: Chairperson DA Part 100% 0% Linda Taljaard Time Infrastructure and Development DA Part 100% 0% Elsie Kgasu Time MPAC EFF Part 100% 0% KholekileSeduko Time Town Planning EFF Part 100% 0% Baby Madede Time Community and LED EFF Part Finance and Corporate and Town 100% 0% Jurie Botha Time Planning FF PLUS 100% 0% Thabo Morei Full Time Community Services: Chairperson ANC 100% 0% PhemeloLobelo Full Time Council Speaker ANC 100% 0% Lydia Malwane Full Time Mayor ANC
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APPENDIX B – COMMITTEES ANDCOMMITTEE PURPOSES
Committees (other than Mayoral / Executive Committee) and Purposes of Committees Municipal Committees Purpose of Committee
Corporate Services To make sure that there is a sound labour relations and compliance to the institution. Community services Deals specifically with human settlement issues and public safety. Technical services Deals more with services delivery issues To take care of the municipal finances Finance and compliance Audit Oversight committee in municipality
T B
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APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE
Third Tier Structure Directorate Director/Manager (State title and name) Municipal Manager M.I. Moruti
Office of the Municipal Manager Manager Performance Management System S. Tshenepe (Acting)
Office of the Mayor Manager Office of the Mayor G. Motsekwa
Office of the Speaker Manager Office of the Speaker M. Mmelesi
Office of the Chief Financial Officer Chief Financial Officer R. Mogoje Manager Budget and Reporting S. Pelele Manager Supply Chain D. Masibi
Corporate Services Directorate Corporate Services Director V. Ndongeni Deputy Director Corporate Services M. Chacha Manager Corporate Administration O. Monaheng
Technical Services Directorate Technical Services Director (Acting) G. Mokgetho
Project Management Unit Project Management Unit Manager G. Moipolai
Community Services Directorate Community Services Director (Acting) S. Moeti Manager Parks and Recreation G. Mongale
Use as a spill-over schedule if top 3 tiers cannot be accommodated in chapter 2 (T2.2.2). T C
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APPENDIX E –WARD REPORTING
Functionality of Ward Committees
Ward Name Name of Ward Committee Number of Number of Number of (Number) Councillor and elected established monthly monthly quarterly Ward committee (Yes / No) Committee reports public ward members meetings held submitted to meetings during the Speakers held during year Office on year time
Ward 1 Lebogang Bome Yes 5 5 2
Ward 2 Vincent Moremedi Yes 6 6 2
Ward 3 MatshedisoMoreo Yes 11 11 4
Ward 4 KleatlaretseBlou Yes 10 10 4
Ward 5 LentlhotseLerumo Yes 10 10 4
Ward 6 Abram Modise Yes 7 7 2
Ward 7 Boorman Phutiyagae Yes 3 3 0
Ward 8 NkagisangMolehabangwe Yes 11 11 4
Ward 9 TickyChabangu Yes 9 9 4
Ward 10 Silas Tsholo Yes 3 3 2
Ward 11 MbuyiseloBooi Yes 7 7 3
Ward 12 Sam Letlakane Yes 2 2 2
Ward 13 ThembinkosiMabovu Yes 2 2 2
Ward 14 PuseletsoMokoto Yes 8 8 3
Ward 15 Tumelo Mthimkhulu Yes 2 2 2
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APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE
APPENDIX K (i): REVENUE COLLECTION PERFORMANCE BY VOTE
NW382 Tswaing - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote) 2018/19 Medium Term Revenue Vote Description Ref 2014/15 2015/16 2016/17 Current Year 2017/18 & Expenditure Framework
Budget Budget Budget Audited Audited Audited Original Adjusted Full Year R thousand Year Year +1 Year +2 Outcome Outcome Outcome Budget Budget Forecast 2018/19 2019/20 2020/21 Revenue by Vote 1
Vote 1 - Executive and Council 74,353 82,966 75,726 92,403 94,403 92,403 102,525 113,143 121,990
Vote 2 - Budget and Treasury 18,040 21,536 21,176 17,627 29,707 27,856 31,048 33,059 35,151
Vote 3 - Corporate Services 5,465 – – – – – 1 1 1
Vote 4 - Community Services 9,097 9,278 15,226 12,186 12,186 12,071 14,485 15,248 16,067
Vote 5 - Technical Services 91,712 75,899 88,201 87,094 87,094 – 98,356 97,926 104,757
Vote 6 - [NAME OF VOTE 6] – – – – – – – – –
Vote 7 - [NAME OF VOTE 7] – – – – – – – – –
Vote 8 - [NAME OF VOTE 8] – – – – – – – – –
Vote 9 - [NAME OF VOTE 9] – – – – – – – – –
Vote 10 - [NAME OF VOTE 10] – – – – – – – – –
Vote 11 - [NAME OF VOTE 11] – – – – – – – – –
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Vote 12 - [NAME OF VOTE 12] – – – – – – – – –
Vote 13 - [NAME OF VOTE 13] – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – –
Total Revenue by Vote 2 198,668 189,679 200,328 209,311 223,391 132,330 246,415 259,376 277,966
Expenditure by Voteto be appropriated 1
Vote 1 - Executive and Council 48,754 24,836 33,028 23,610 – – 28,663 29,847 31,489
Vote 2 - Budget and Treasury 175,351 81,681 98,060 40,280 – – 33,315 34,139 35,025
Vote 3 - Corporate Services 17,293 17,078 16,155 15,373 – – 17,083 19,143 20,196
Vote 4 - Community Services 16,047 16,629 15,285 18,032 – – 30,616 32,225 33,862
Vote 5 - Technical Services 81,947 68,561 87,019 83,517 – – 75,298 81,734 86,229
Vote 6 - [NAME OF VOTE 6] – – – – – – – – –
Vote 7 - [NAME OF VOTE 7] – – – – – – – – –
Vote 8 - [NAME OF VOTE 8] – – – – – – – – –
Vote 9 - [NAME OF VOTE 9] – – – – – – – – –
Vote 10 - [NAME OF VOTE 10] – – – – – – – – –
Vote 11 - [NAME OF VOTE 11] – – – – – – – – –
Vote 12 - [NAME OF VOTE 12] – – – – – – – – – Vote 13 - [NAME OF VOTE 13]
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– – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – –
Total Expenditure by Vote 2 339,391 208,785 249,547 180,812 – – 184,975 197,088 206,801
Surplus/(Deficit) for the year 2 (140,723) (19,106) (49,219) 28,498 223,391 132,330 61,440 62,288 71,164
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APPENDIX K (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE
2018/19 Medium Term Revenue & Description Ref Expenditure Framework Budget Budget Budget R thousand 1 Year Year +1 Year +2 2018/19 2019/20 2020/21 Revenue by Source
Property rates 2 28,462 29,999 31,649
Service charges - electricity revenue 2 43,483 45,831 48,375
Service charges - water revenue 2 6,382 6,726 7,097
Service charges - sanitation revenue 2 7,250 7,642 8,050
Service charges - refuse revenue 2 9,769 10,297 10,875 Service charges - other
Rental of facilities and equipment 396 417 440
Interest earned - external investments 112 119 125 Interest earned - outstanding debtors
Dividends received 20 21 22
Fines, penalties and forfeits 96 101 107
Licences and permits 3,263 3,438 3,628 Agency services
Transfers and subsidies 107,766 117,843 126,655
Other revenue 2 954 895 781 Gains on disposal of PPE Total Revenue (excluding capital transfers and contributions) 207,953 223,329 237,803
Expenditure by Type
Employee related costs 2 86,773 94,966 100,189
Remuneration of councillors 12,166 12,823 13,529
Debt impairment 3 5,422 5,714 6,029
Depreciation & asset impairment 2 12,618 13,300 14,031
Finance charges 336 354 374
Bulk purchases 2 41,358 43,591 45,989
Other materials 8 12,320 12,985 13,700
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Contracted services 10,106 10,652 11,237
Transfers and subsidies – – –
Other expenditure 4, 5 19,225 20,014 21,114 Loss on disposal of PPE Total Expenditure 200,323 214,399 226,191
Surplus/(Deficit) 7,630 8,930 11,612 Transfers and subsidies - capital (monetary allocations)
(National / Provincial and District) 51,044 35,674 39,059 Transfers and subsidies - capital (monetary allocations) (National / Provincial Departmental Agencies, Households, Non- profit Institutions, Private Enterprises, Public Corporations, Higher Educational Institutions) 6 – – – Transfers and subsidies - capital (in-kind - all)
Surplus/(Deficit) after capital transfers & contributions 58,674 44,604 50,671 Taxation
Surplus/(Deficit) after taxation 58,674 44,604 50,671 Attributable to minorities
Surplus/(Deficit) attributable to municipality 58,674 44,604 50,671 Share of surplus/ (deficit) of associate 7
Surplus/(Deficit) for the year 58,674 44,604 50,671
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APPENDIX L: CONDITIONAL GRANTS EXCLUDING M.I.G.
2018/19 Medium Term Revenue & Expenditure Framework MFMA Description Ref section Budget Budget Budget Year Year +1 Year +2 2018/19 2019/20 2020/21
DoRA operating Equitable Share 102,525 113,143 121,990 FMG 2,415 2,880 3,312 Library Grant 360 360 360 EPWP 1,632 106,932 116,383 125,662 DoRA capital MIG 39,294 29,274 30,739 MIG - SPORTS 10,550 – – INEP – 6,400 8,320
49,844 35,674 39,059
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VOLUME II: ANNUAL FINANCIAL STATEMENTS
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