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Eden, a Future Empowered Through Excellence

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Eden, a Future Empowered Through Excellence EDEN, A FUTURE EMPOWERED THROUGH EXCELLENCE 2011/12 VISION Elements of the Vision EDEN Represents the entire jurisdiction of the district, including the seven B-municipalities, which are Hessequa, Mossel Bay, George, Knysna, Bitou, Oudtshoorn and Kannaland. FUTURE Changed environment, well-being of citizens, growth & development. EMPOWERED Training & development, education, economic growth, job creation, self reliance, enabling environment, mentorship, working together, facilitate. EXCELLENCE Service delivery, customer care, innovation, political stability, integrated planning. MISSION The Eden District Municipality as a category C-local authority strives, to deliver on our mandate through: • Providing strategic leadership and coordination to B-municipalities in the district within our resources available; • Executing integrated development planning in collaboration with sector departments and service organisations; and • Upholding the principles of good governance in pursuit of excellence as a regional leader in local government. OUR STRATEGIC GOALS ARE: Healthy and socially stable communities. Build a capacitated workforce and communities. Conduct regional bulk infrastructure planning & implement projects, roads maintenance and public transport; manage and develop council fixed assets. Promote sustainable environmental management and public safety. Promote good governance. Ensure financial viability of the Eden District Municipality. Grow the district economy. CONTENTS CHAPTER 1 - EXECUTIVE MAYOR’S FOREWORD AND EXECUTIVE SUMMARY COMPONENT A: EXECUTIVE MAYOR’S FOREWORD 8 COMPONENT B: EXECUTIVE SUMMARY 11 1.1. MUNICIPAL MANAGER’S OVERVIEW 11 1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW 13 1.3. SERVICE DELIVERY OVERVIEW 16 1.4. FINANCIAL HEALTH OVERVIEW 16 1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW 18 1.6. AUDITOR GENERAL REPORT 19 CHAPTER 2 - GOVERNANCE 24 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE 24 2.1 POLITICAL GOVERNANCE 25 COMPONENT B: INTERGOVERNMENTAL RELATIONS 35 2.2 INTERGOVERNMENTAL RELATIONS 35 COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION 40 2.3 PUBLIC MEETINGS 40 2.4 IDP PARTICIPATION AND ALIGNMENT 43 2.5 COMMUNICATION 44 COMPONENT D: CORPORATE GOVERNANCE 47 2.6 RISK MANAGEMENT 47 2.7 INTERNAL AUDIT 49 2.8 ANTI-CORRUPTION AND FRAUD 51 2.9 SUPPLY CHAIN MANAGEMENT 52 2.10 WEBSITES 53 OVERVIEW OF PERFORMANCE WITHIN THE ORGANISATION 54 CHAPTER 3 - SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART 1) 57 3.1 STRATEGIC SERVICE DELIVERY BUDGET IMPLEMENTATION PLAN (TOP LAYER) 57 3.2 SERVICE PROVIDERS STRATEGIC PERFORMANCE 76 3.3 MUNICIPAL FUNCTIONS 79 3.4 PERFORMANCE HIGHLIGHTS PER DIRECTORATE / FUNCTIONAL AREA 80 3.5 CHALLENGES PER DIRECTORATE / FUNCTIONAL AREA 83 3.6 OVERVIEW OP PERFORMANCE PER DIRECTORATE 85 3.6.1 OFFICE OF THE MUNICIPAL MANAGER 87 3.6.2 FINANCIAL SERVICES 89 3.6.3 STRATEGIC SERVICES 91 3.6.4 COMMUNITY SERVICES 93 3.6.5 CORPORATE SERVICES 95 3.6.6 TECHNICAL SERVICES 97 COMPONENT A: BULK INFRASTRUCTURE PLANNING 99 3.7 BULK INFRASTRUCTURE PLANNING 99 3.8 BULK WASTE MANAGEMENT 101 COMPONENT B: ROADS AND TRANSPORT 104 3.9 ROADS 104 3.10 TRANSPORT 107 COMPONENT C: PLANNING AND DEVELOPMENT 108 3.11 REGIONAL DEVELOPMENT AND PLANNING 108 3.12 LOCAL ECONOMIC DEVELOPMENT 109 3.13 EPWP 113 3.14 TOURISM 119 3.15 MUNICIPAL RESORTS 127 COMPONENT D: COMMUNITY & SOCIAL SERVICES 133 3.16 SOCIAL DEVELOPMENT 133 COMPONENT E: ENVIRONMENTAL PROTECTION 143 3.17 AIR QUALITY CONTROL 143 3.18 ENVIRONMENTAL MANAGEMENT (BIODIVERSITY, COASTAL PROTECTION) 149 COMPONENT F: MUNICIPAL HEALTH 151 3.19 MUNICIPAL HEALTH SERVICES 151 COMPONENT G: SECURITY AND SAFETY 154 3.20 FIRE 154 3.21 OTHER (DISASTER MANAGEMENT, CONTROL OF PUBLIC NUISANCES AND OTHER) 156 COMPONENT H: CORPORATE POLICY OFFICES AND OTHER SERVICES, EXECUTIVE AND COUNCIL 158 3.22 FINANCIAL SERVICES 160 3.23 HUMAN RESOURCE SERVICES 162 3.24 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES 163 3.25 RISK MANAGEMENT AND INTERNAL AUDIT 164 3.26 LEGAL SERVICES 165 3.27 PROPERTY SERVICES 166 3.28 PROCUREMENT SERVICES 167 3.29 SHARED SERVICES 167 COMPONENT I: ORGANISATIONAL PERFOMANCE SCORECARD 169 3.30 DEVELOPMENT AND SERVICE DELIVERY PRIORITIES FOR 2012/2013 169 CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE REPORT PART II) 177 COMPONENT A: INTRODUCTION TO THE MUNICIPAL WORKFORCE 177 4.1 EMPLOYEE EQUITY 177 4.2 EMPLOYEE EQUITY VS POPULATION 178 4.3 OCCUPATIONAL CATEGORIES - RACE 178 4.4 OCCUPATIONAL LEVELS – RACE 178 4.5 DEPARTMENTS – RACE 179 4.6 VACANCY RATE 179 4.7 TURNOVER RATE 180 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE 180 4.8 INJURIES 180 4.9 SICK LEAVE 181 4.10 HR POLICIES AND PLANS 181 4.11 EMPLOYEE PERFORMANCE REWARDS 182 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE 182 4.12 SKILLS MATRIX 183 4.13 SKILLS DEVELOPMENT TRAINING PROVIDED 184 4.14 SKILLS DEVELOPMENT BUDGET ALLOCATION 186 COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE 187 4.15 PERSONNEL EXPENDITURE 187 CHAPTER 5 - HIGHLIGHTS OF THE YEAR 189 5.1 TECHNICAL SERVICES 189 5.2 COMMUNITY SERVICES 190 5.3 COPORATE SERVICES 195 5.4 STRATEGIC SERVICES 196 CHAPTER 6 – FINANCIAL PERFORMANCE 198 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE 198 6.1 STATEMENTS OF FINANCIAL PERFORMANCE 199 6.2 GRANTS 204 6.3 ASSET MANAGEMENT 206 6.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS 206 COMPONENT B: SPENDING AGAINST CAPITAL BUDGET 212 6.5 CAPITAL EXPENDITURE 212 6.6 SOURCES OF FINANCE 212 6.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS 214 6.8 BASIC SERVICES AND INFRASTRUCTURE BACKLOGS 215 COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS 221 6.9 CASH FLOW 216 6.10 BORROWING AND INVESTMENTS 218 6.11 PUBLIC PRIVATE PARTNERSHIPS 220 COMPONENT D: OTHER FINANCIAL MATTERS 221 6.12 SUPPLY CHAIN MANAGEMENT 221 6.13 GRAP COMPLIANCE 222 CHAPTER 7 – AUDITOR GENERAL REPORTS YEAR 2010/11 (PREVIOUS YEAR) 223 COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS YEAR 2010/11 223 7.1 AUDITOR GENERAL REPORTS YEAR 2010/11 (PREVIOUS YEAR) 223 COMPONENT B: AUDITOR-GENERAL OPINION 2011/12 (CURRENT YEAR) 233 7.2 AUDITOR GENERAL REPORT YEAR 2011/12 233 7.3 ACTION PLANS FOR AUDIT FINDINGS 237 GLOSSARY 266 ABBREVIATIONS 268 APPENDICES 269 APPENDIX A: COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE 269 APPENDIX B: COMMITTEES AND COMMITTEE PURPOSES 274 APPENDIX C: THIRD TIER ADMINISTRATIVE STRUCTURE 276 APPENDIX D: FUNCTIONS OF MUNICIPALITY / ENTITY 277 APPENDIX G: RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE YEAR 2011/12 279 APPENDIX K (i): REVENUE COLLECTION PERFORMANCE BY VOTE 280 APPENDIX K (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE 281 APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG 282 APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES 283 APPENDIX M (ii): CAPITAL EXPENDITURE – FUNDING SOURCES YEAR 2010/11 - 2011/12 285 APPENDIX O: DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY 286 APPENDIX Q: NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT 287 APPENDIX S: DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71 288 APPENDIX T: REPORT OF THE AUDIT AND PERFORMANCE AUDIT COMMITTEE 289 VOLUME II: ANNUAL FINANCIAL STATEMENTS 295 CHAPTER 1 CHAPTER 1 EXECUTIVE MAYOR’S FOREWORD AND EXECUTIVE SUMMARY Executive Mayor Cllr Wessie van der Westhuizen COMPONENT A: EXECUTIVE MAYOR’S FOREWORD As the Executive Mayor of the Eden District Municipality, I am privileged and tremendously proud to present the Eden District Municipality’s Annual Report for the 2011/2012 Financial Year. A.VISION The 2011/2012 Annual Report is unique in the sense that it marks the first full year of term of office of the newly elected district municipal council. For its five year term of office the new council aspires to deliver on its new Vision of “Eden a future empowered through excellence” During the period under review the district municipality pledged to add more value to the achievement of its 2007/2008 – 2011/2012 strategic objectives articulated in our Integrated Development Plan (IDP): These strategic goals are: 1. Good governance through Institutional transformation, Inter- Governmental co-operation and public consultation to ensure accountability; 2. Develop an appropriate regional economy that ensures shared prosperity and sustainability; 3. Create an enabling social environment, that ensures safe, healthy and vibrant communities that participate actively in Eden; 4. Develop human and social capital by investing in women and youth development; 5. Ensure effective and affordable service and infrastructure delivery in Eden to meet the needs of the people; 6. Sustain Eden environment through resource conservation, good land use practices and people centred planning. B. KEY POLICY Developments For implementation to successfully realise policy guidelines implementation strategies need to be in place. Apart from the existing plans or strategies, the Eden District Municipality followed a wide range of consultative processes to formulate the following policy directives during the 2011/12 financial year: 8 • A new five year strategic plan (IDP) for the period 2012/2013 to 2015/2016 financial year; CHAPTER 1 • A reviewed Local Economic Development (LED) Strategy; • A reviewed District Integrated Transport Plan (DITP); • A Bulk Regional Water Supply Master Plan; • A Concept Corporate Disaster Management Plan formulated; • Annual Workplace Skills Plan; • A Draft Eden Disability Strategy; • An ICT Disaster Recovery Plan; • A Risk Based Audit Plan; and • A Turn Around Strategy. C. KEY SERVICE DELIVERY IMPROVEMENTS Local Government in South
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