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Oudtshoorn AR Working Doc 2016/17 Oudtshoorn AR Working Doc 2016/17 Performance Report Contents COMPONENT B: INTERGOVERNMENTAL RELATIONS ............ 26 CONTENTS ....................................................................................... 2 2.3 INTERGOVERNMENTAL RELATIONS .......................................... 26 CHAPTER 1 ............................................................................. 5 COMPONENT A: MAYOR’S FOREWORD .................................. 5 COMPONENT C: PUBLIC ACCOUNTABILITY AND COMPONENT B: EXECUTIVE SUMMARY ................................. 7 PARTICIPATION ..................................................................... 28 1.1 MUNICIPAL MANAGER’S OVERVIEW ......................................... 7 2.4 PUBLIC MEETINGS .............................................................. 28 1.2 MUNICIPAL OVERVIEW ........................................................ 10 1.3 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL COMPONENT D: CORPORATE GOVERNANCE......................... 35 OVERVIEW ....................................................................... 10 2.5 AUDIT COMMITTEE ............................................................. 35 1.4 SERVICE DELIVERY OVERVIEW ............................................... 16 2.6 INTERNAL AUDITING............................................................ 36 2.7 SUPPLY CHAIN MANAGEMENT ............................................... 37 1.5 FINANCIAL HEALTH OVERVIEW .............................................. 18 2.8 COMMUNICATION .............................................................. 43 1.6 ORGANISATIONAL DEVELOPMENT OVERVIEW ............................ 20 2.9 WEBSITE .......................................................................... 44 CHAPTER 3 ............................................................................ 46 1.7 AUDITOR-GENERAL REPORT ................................................. 21 3.1 OVERVIEW OF PERFORMANCE WITHIN THE ORGANISATION ............ 46 CHAPTER 2 ........................................................................... 22 3.2 PERFORMANCE MANAGEMENT .............................................. 46 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ...................................................................... 22 2.1 NATIONAL KEY PERFORMANCE INDICATORS - GOOD GOVERNANCE AND PUBLIC PARTICIPATION ........................................................ 22 3.2 STRATEGIC SERVICE DELIVERY BUDGET IMPLEMENTATION PLAN ..... 48 2.2 GOVERNANCE STRUCTURE .................................................... 22 2 | Page Performance Report 3.11 COMPONENT I: SERVICE DELIVERY PRIORITIES FOR 2017/18 ...................................................................... 118 3.3 COMPONENT A: BASIC SERVICES ................................... 62 CHAPTER 4 .......................................................................... 124 4.1 NATIONAL KEY PERFORMANCE INDICATORS – MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT .......... 124 3.4 COMPONENT B: ROAD TRANSPORT ............................... 80 4.2 INTRODUCTION TO THE MUNICIPAL WORKFORCE ...................... 124 3.5 COMPONENT C: PLANNING AND LOCAL ECONOMIC DEVELOPMENT ............................................................. 83 4.3 MANAGING THE MUNICIPAL WORKFORCE .............................. 128 3.6 COMPONENT D: COMMUNITY AND SOCIAL SERVICES .... 88 4.4 CAPACITATING THE MUNICIPAL WORKFORCE ........................... 130 3.7 COMPONENT E: ENVIRONMENTAL PROTECTION ........... 92 3.8 COMPONENT F: SECURITY AND SAFETY ......................... 94 4.5 MANAGING THE MUNICIPAL WORKFORCE EXPENDITURE ............ 134 3.9 COMPONENT G: SPORT AND RECREATION ..................... 98 CHAPTER 5 .......................................................................... 136 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE 3.10 COMPONENT H: CORPORATE POLICY OFFICES AND OTHER ........................................................................................... 136 SERVICES..................................................................... 105 5.1 FINANCIAL SUMMARY........................................................ 136 3 | Page Performance Report 5.2 FINANCIAL PERFORMANCE PER MUNICIPAL FUNCTION ............... 141 COMPONENT A: AUDITOR-GENERAL OPINION .................... 159 6.1 AUDITOR-GENERAL REPORT 2015/16 .................................. 159 6.2 AUDITOR-GENERAL REPORT 2016/17 .................................. 160 LIST OF ABBREVIATIONS ..................................................... 161 LIST OF TABLES .................................................................... 163 LIST OF GRAPHS .................................................................. 166 5.3 GRANTS ........................................................................ 148 5.4 ASSET MANAGEMENT ....................................................... 151 5.5 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS .... 152 COMPONENT B: SPENDING AGAINST CAPITAL BUDGET ..... 153 5.6 SOURCES OF FINANCE ........................................................ 153 5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS ........................... 155 5.8 MUNICIPAL INFRASTRUCTURE GRANT (MIG) .......................... 156 COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS .................................................................... 156 5.9 CASH FLOW .................................................................... 156 5.10 GROSS OUTSTANDING DEBTORS PER SERVICE .......................... 157 5.11 TOTAL DEBTORS AGE ANALYSIS ........................................... 157 5.12 BORROWING AND INVESTMENTS .......................................... 158 CHAPTER 6 ......................................................................... 159 4 | Page Performance Report CHAPTER 1 COMPONENT A: MAYOR’S FOREWORD As the Executive Mayor of the Greater Oudtshoorn Municipality I am delighted and honoured to present our Annual Report for the fiscal year 2016/17. This was highlighted by several improvement and achievements accomplished, such as the improvement in our Audit Opinion, the settlement of the Eskom Debt, the financial turnaround, creating administrative and political stability We are keeping true our Vision “Prosperity for All” and our slogan “A town to grow, work, play and prosper in” by ensuring that we constantly work towards improving our service delivery and improving our financial sustainability. The implementation of Performance Management in the Municipality aims at the creation of a culture of performance excellence in order to ensure we reach our development goals as set out by our 2016/17 Integrated development Plan (IDP). Our Annual Report also illustrates the lessons learnt and the challenges faced through 2016/17 both in the Institution and the community. It further serves as an indication of Council objective to create a responsive government creating opportunities for the community through: Open, transparent and honest governance; Providing innovative, effective and efficient services; Promoting sustainability, economic and social development; and Safer communities To address our Vision Council adopted the following strategic goals for 2016/17: To create sustainable integrated human settlements and safe neighbourhoods where communities can prosper To provide basic services to all residents in an environmentally sustainable manner To achieve financial sustainability and strengthen municipal transformation and development To promote social, rural and spatial economic development An ethical and transparent local government that is responsive to the needs of the community and encourage public participation In 2016/17 saw the filling of the important management positions in the Municipality, bringing improvements in the municipality against the background of the instability of previous years. The need to ensure future good governance resulted in the implementation of the graduate bursary and the graduate internship to ensure that the municipality attract a new generation capable, qualified and competent municipal official to our town. The development of our staff remains important and through our skills development and equipping our staff we ensure that we have competent officials who attend to the needs of the community. 5 | Page Performance Report Key delivery improvements accomplished include: The successful exploration for groundwater in the Vermaaks River and Varkieskloof area, resulting in the Additional water supplies from new boreholes that augment the existing yield of the KKRWSS. Installation of a pressure reducing mechanism and break pressure by-pass system in Dysselsdorp, which reduce the average work pressure in Dysselsdorp (less pipe bursts) and simultaneously increase the water pressure in Heins View. We managed to forge good relations with other spheres of government, stakeholders, community organizations which enabled us through their assistance and partnerships to make remarkable progress Council is extremely proud of its senior management team, and staff for their hard word, dedication to improve service delivery as well as their willingness to go the extra mile. We can be proud of our accomplishments and I would like to thank my fellow councilors and the management team and officials for their concerted effort in making Oudtshoorn once again the Pride and jewel of the Klein Karoo. COLAN SYLVESTER EXECUTIVE MAYOR 6 | Page Performance Report COMPONENT B: EXECUTIVE SUMMARY 1.1 Municipal Manager’s Overview It gives me a great pleasure as Municipal Manager
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