2017/18 Annual Report
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VICTOR KHANYE LOCAL MUNICIPALITY 2017/18 ANNUAL REPORT 1 GLOSSARY Accessibility Explore whether the intended beneficiaries are able to access services or indicators outputs. Accountability Documents used by executive authorities to give “full and regular” reports documents 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 indicators The quantity of input or output relative to the need or demand. 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 financial Statements 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. Impact The results of achieving specific outcomes, such as reducing poverty and creating jobs. 2 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 input, Indicator 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 and Information activities. Can also be used interchangeably with performance measure. Performance The minimum acceptable level of performance or the level of performance Standards: 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 to Targets: 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 municipality’s Budget delivery of services; including projections of the revenue collected and Implementation Plan 3 operational and capital expenditure by vote for each 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 4 CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY MAYOR’S FOREWORD Message from the EXECUTIVE MAYOR As per the legislative requirement and the fulfilment of the principles of democracy, we present this annual report as a yardstick for all our stakeholders to hold us accountable for the financial year 2017/2018. The Batho Pele principles that are engraved in the White Paper on the Transformation of the Public Service states that there should be transparency and accountability in the Public Service, and our institution is not immune to those principles. The outcomes of our performance in the above mention financial year is as a result of dedicated and instrumental role players that contributed to the said outcomes among others being the COGTA in the province for their continuous technical support, the oversight and monitoring role played by both the National and provincial Treasury, the legislation role of Council, and the administrative role of the human capital of the municipality who works tirelessly to ensure that the municipality fulfil its constitutional objectives of delivering sustainable services to the people, providing the health and safety environment for all the residents within the vicinity of Victor Khanye Local Municipality while promoting economic growth and being accountable and democratic in nature. This reports it’s a valuation of how far we have gone in implementing the desires and aspirations of the citizens as raised in the Integrated Development Plan consultative meetings that were held throughout the wards. Due to limited financial resources not all projects and programmes have been implemented in this financial year, but priorities as per the submissions and the available financial resources were made and some of the projects will be prioritised in the coming financial years. We also appreciate the support and commitments by the businesses around our time in implementing some service delivery projects in partnership with the municipality with the view of bettering the lives of our people, indeed “together we can do more”. We have seen a lot of changes in the administration of the municipality with the departure of the then Municipal Manager and other senior managers of the municipality, but as said before, we commend the sterling work that has been done by our administrative staff in steering the sheep towards the right direction. We note the Auditor Generals reports which we shall use as a directive to improve the way we do things and hopefully we will improve the audit outcomes in this financial for the better. We would also love to indicate that this a true reflection of our efforts as a collective in trying to better the lives of our people in general, blacks in particular. We also want to register that accountability is of paramount important and we shall receive all criticism with regard to what we are reporting on with a good heart and we always strive to fulfil all the legislative and good governance principles in what we do. We also want to forward words of gratitude to all our voters for borrowing us this opportunity to govern your resources and this astute institution of government and e shall continuously be accountable to you, and from time to time give feedback on how far we have gone in implementing the mandate you have given us, and without failure we will always indicate our short comings and the challenges we are facing in implementing some of the things that you have mandated us to do. 5 EXECUTIVE SUMMARY 1.1. STATEMENT BY THE MUNICIPAL MANAGER The year 201718 in the office of the Municipal Manager of Victor Khanye Local Municipality has proved very busy and challenging, yet also highly rewarding. As this 2017/18 annual report shows, the municipality has made steady and consistent progress towards realising its vision to make Victor Khanye municipality a municipality that enables economic growth and job creation, and to be a clean run administration that delivers quality services to all its people. As expected, delivering on our vision requires the focused use of resources, ranging from the council’s own funds and ongoing investment by those who recognise Victor Kanye’s growth potential, to the hard work of our talented and dedicated municipal employees, managers and Directors. This 2017/18 annual report offers an overview of the work and investment for the past financial year, of the positive outcomes that the municipality has delivered. Council is fully committed to improved service delivery, despite the achievements of the past and challenges faced.