Annual Report 2018-19
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Annual Report 2018-2019.......................................................................................Department of Co-operative Governance and Traditional Affairs Department of Co-operative Governance and Traditional Affairs .........................................................................................Annual Report 2018-2019 TABLE OF CONTENTS PART A: GENERAL INFORMATION ......................................................................................................................1 1. DEPARTMENT GENERAL INFORMATION .........................................................................................................2 2. LIST OF ABBREVIATIONS/ACRONYMS .............................................................................................................3 3. FOREWORD BY THE MEC (2018/19) .................................................................................................................4 4. REPORT OF THE ACCOUNTING OFFICER .......................................................................................................5 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ....9 6. STRATEGIC OVERVIEW ...................................................................................................................................10 7 LEGISLATIVE AND OTHER MANDATES ...........................................................................................................10 8 ORGANISATIONAL STRUCTURE ......................................................................................................................13 PART B: PERFORMANCE INFORMATION .........................................................................................................14 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ..............................................................15 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE ........................................................................................15 3. STRATEGIC OUTCOME ORIENTED GOALS ...................................................................................................16 4. PERFORMANCE INFORMATION BY PROGRAMME .......................................................................................17 5 TRANSFER PAYMENTS......................................................................................................................................40 6. CONDITIONAL GRANTS ...................................................................................................................................42 7. DONOR FUNDS ................................................................................................................................................43 8. CAPITAL INVESTMENT .....................................................................................................................................43 PART C: GOVERNANCE .....................................................................................................................................44 1. INTRODUCTION.................................................................................................................................................45 2. RISK MANAGEMENT ........................................................................................................................................45 3. FRAUD AND CORRUPTION ..............................................................................................................................45 4. MINIMISING CONFLICT OF INTEREST ...........................................................................................................45 5. CODE OF CONDUCT ........................................................................................................................................45 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ........................................................................................45 7. PORTFOLIO COMMITTEES ..............................................................................................................................45 8. SCOPA RESOLUTIONS .....................................................................................................................................46 9. PRIOR MODIFICATIONS TO AUDIT REPORTS................................................................................................48 10. INTERNAL CONTROL UNIT.............................................................................................................................48 11. INTERNAL AUDIT AND AUDIT COMMITTEES................................................................................................48 12. AUDIT COMMITTEE REPORT.........................................................................................................................50 PART D: HUMAN RESOURCE MANAGEMENT .................................................................................................52 1. INTRODUCTION ................................................................................................................................................53 2. HUMAN RESOURCES OVERSIGHT STATISTICS ...........................................................................................54 PART E: FINANCIAL INFORMATION .................................................................................................................71 1. REPORT OF THE AUDITOR GENERAL...........................................................................................................72 2. ANNUAL FINANCIAL STATEMENTS .................................................................................................................76 Annual Report 2018-2019.......................................................................................Department of Co-operative Governance and Traditional Affairs i PART A GENERAL INFORMATION 1 Department of Co-operative Governance and Traditional Affairs .........................................................................................Annual Report 2018-2019 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS HEAD OFFICE Samora Machel Riverside Government Complex MBOMBELA 1200 POSTAL ADDRESS Private Bag X11304 MBOMBELA 1200 TELEPHONE NUMBER/S 013 766 6087 FAX NUMBER 013 766 8252 EMAIL ADDRESS [email protected] WEBSITE ADDRESS http://cgta.mpg.gov.za Annual Report 2018-2019.......................................................................................Department of Co-operative Governance and Traditional Affairs 2 2. LIST OF ABBREVIATIONS/ACRONYMS AGSA Auditor General of South Africa AO Accounting Officer APP Annual Performance Plan BBBEE Broad Based Black Economic Empowerment OP Operational Plan EPWP Expanded Public Works Programme FBSA Fire Brigade Services Act HOD Head: Co-operative Governance and Traditional Affairs MP Mpumalanga MPL Member of Provincial Legislature IMSP Integrated Municipal Support Plan EDP Executive Development Programme DCOG Department of Co-operative Governance PFMA Public Finance Management Act ,1999 (Act No.1 of 1999) MPRA Municipal Property Act SDF Spatial Development Framework SPLUMA Spatial Planning Land Use management Act, 2013 (Act No 16 of 2013) TR Treasury Regulations MIG Municipal Infrastructure Grant CDW Community Development Workers PMU Programme Management Unit WTW Water Treatment Works WWTW Waste Water Treatment Works MTEF Medium Term Expenditure Framework SAIGA Southern African Institute of Government Auditors SMME Small Medium and Micro Enterprises MEC Member of the Executive Council for the Department of Co-operative Governance and Traditional Affairs SITA State Information Technology Agency SDIP Service Delivery Improvement Plan TLGFA Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2013) NDP National Development Plan DHS Department of Human Settlement LED Local Economic Development CWP Community Works Programme OVS Operation Vuka Sisebente MDB Mpumalanga Demarcations Board IDP Integrated Municipal Plan PMS Performance Management System LUMS Land Use Management Scheme LUS Land Use Scheme TSC Thusong Service Centre MPAT Management Performance Assessment Tool B2B Back to Basics DORA Division of Revenue Act, 2011 (Act No.6 of 2011) HTL House of Traditional Leaders DCSSL Department of Community Safety Security and Liaison 3 Department of Co-operative Governance and Traditional Affairs .........................................................................................Annual Report 2018-2019 3. FOREWORD BY THE MEC (2018/19) Eight (8) municipalities filled the critical vacancies of Municipal Managers to improve their capacity in pursuit of the envisaged National Development Plan (NDP) objectives of Local Govern- ment. Ten municipalities were targeted for this purpose , and only two (2) could not achieve the target due to delays in the re- cruitment process. All newly appointed Section 54 and 56 Man- agers signed their Performance contracts in line with legislative prescripts. This support was implemented as a build up towards the realization of the NDP aspirations of establishing a respon- sive, accountable, effective and efficient developmental Local Government system by 2030. The Department established three municipal valuation appeals boards in terms of the Property Rates Act. The boards are con- stituted by experts in various fields whose pre-occupation during the four year term is to resolve appeals submitted by property owners. This support for municipalities is a catalyst to resolve a stand-off between municipalities