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Annual Report 2011/12

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Annual Report 2011/12 0 JOHANNESBURG CITY PARKS NPC ASSOCIATION INCORPORATED UNDER SECTION 21 OF THE COMPANIES ACT 1973 as amended 2000/028782/08 ANNUAL REPORT 2011/12 (In terms of Section 121 of the Municipal Finance Management Act, 2003 and Section 46 of the Municipal Systems Act, 2000) 1 JOHANNESBURG CITY PARKS NPC ASSOCIATION INCORPORATED UNDER SECTION 21 OF THE COMPANIES ACT 1973 as amended 2000/028782/08 COMPANY INFORMATION: Registration number : 2000/028782/08 Registered Address : Johannesburg City Parks City Parks House 40 De Korte Street Braamfontein 2017 Postal Address : P O Box 2824 Johannesburg 2000 Telephone number : (011) 712-6600 Fax number : (011) 712-6796 Website : www.jhbcityparks.com Bankers : ABSA Bank of SA Limited Auditors : Auditor-General Vision To be a World Class African green environment and cemetery management company. Mission To develop, maintain and conserve the green environment and cemeteries for present and future generations. 2 Johannesburg CityParks’ Values Value What it means We will at all times render the quickest, responsive and best service to our customers. We Service Excellence will do so in a competent, timely, cost-effective, efficient and professional manner. We will do our work with care, empathy, respect and consideration for the well being of our staff, Caring our customers and stakeholders while maintaining a safe and healthy work environment. We will at all times take responsibility for our Accountability actions. We will act with integrity in a transparent, ethical and honest manner. We will take ownership of our work and act with Ownership enthusiasm, enjoyment, passion, pride and commitment to our work. We seek to listen and create new approaches to Innovation what we do. 3 TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION AND CORPORATE PROFILE ............................................................................... 7 Section 1: Corporate Profile and Overview of the entity ........................................................................................ 7 Section 2: Strategic Objectives .......................................................................................................................... 10 Section 3: Foreword by the Member of the Mayoral Committee for Community Development Portfolio, MMC C. Vondo12 Section 4: Chairperson’s Foreword ................................................................................................................... 14 Section 5: Managing Director’s Report ............................................................................................................... 16 Section 6: Chief Financial Officer’s Report .......................................................................................................... 22 CHAPTER TWO: PERFOMANCE HIGHLIGHTS .................................................................................................... 30 Section 1: Highlights and Achievements ............................................................................................................ 30 Section 2: Company four-year review ................................................................................................................ 30 Section 3: Capital Projects ................................................................................................................................ 32 Section 4: Performance against IDP Scorecard ................................................................................................... 33 Section 5: Assessment of Arrears on municipal taxes and service charges ............................................................ 42 Section 6: Statement on amounts owed by Government Departments and public entities ..................................... 45 Section 7: Recommendations and Plans for the next financial year. ..................................................................... 46 CHAPTER THREE: DIRECTOR’S REPORT AND GOVERNANCE ............................................................................. 48 Section 1: Corporate Governance Statement ...................................................................................................... 48 Section 2: Board of Directors ............................................................................................................................ 48 Section 3: Board Committees ............................................................................................................................ 58 Section 4: Directors’ Remuneration ................................................................................................................... 61 Section 5: Company Secretarial Function ........................................................................................................... 62 Section 6: Risk Management and Internal controls ............................................................................................. 63 Section 6: Risk Management and Internal controls ............................................................................................. 71 Section 7: Internal Audit Function ..................................................................................................................... 77 Section 8: Response to the Auditor-General Report ............................................................................................ 79 Section 9: Corporate Ethics and Organisational Integrity .................................................................................... 85 Section 10: Sustainability Report ...................................................................................................................... 85 Section 11: Corporate Social Responsibility Report ............................................................................................ 86 CHAPTER FOUR: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT .................................................. 89 Section 1: Human Resource Management .......................................................................................................... 89 Section 2: Building a Diverse Workforce (Employment Equity) .......................................................................... 91 Section 3: Skills Development and Training ....................................................................................................... 92 Section 4: Organisational Development and Performance Management ............................................................... 97 Section 5: Quality of Work life Strategy.............................................................................................................. 98 Section 5.1: HIV and AIDS in the Workplace ....................................................................................................... 98 Section 5.2: Health and Productivity Management.............................................................................................. 99 Section 5.3: Wellness management ................................................................................................................... 99 4 Section 6: Employee Benefits .......................................................................................................................... 100 Section 7: Supply Chain Management and Black Economic Empowerment ......................................................... 102 CHAPTER FIVE: AUDITED FINANCIAL STATEMENTS AND RELATED INFORMATION ......................................... 103 CHAPTER SIX: FUNCTIONAL AREA SERVICE DELIVERY REPORT ...................................................................... 106 5 6 CHAPTER ONE: INTRODUCTION AND CORPORATE PROFILE “Johannesburg City Parks mandate is to continue to address disparities by making the biggest impact, for the most number of people, within its limited budget. My brief to the Chairperson and the Acting MD of Johannesburg City Parks is to interrogate innovative and sustainable solutions to resolve environmental imbalances. ” Councillor Mpho Parks Tau, Executive Mayor of the City of Johannesburg Section 1: Corporate Profile and Overview of the entity Johannesburg City Parks (JCP) is Section 21 Company, incorporated under the seal of the Registrar of Companies on 15 November 2000 and is credited for changing the landscape of the City for the better. The greening entity acts as the custodians of the environment on behalf of the City of Joburg and oversees designated open spaces including park development and maintenance; greening; conservation and cemetery management. Accordingly Johannesburg City Parks manages the following assets: Area of Management Quantity Number of parks and arterials 2 343 Area of developed parks 4 239.5 hectares Area of undeveloped parks 2 080.6 hectares Selected sidewalks 3 593.2 hectares Nature reserves 1 202,6 hectares Street trees 1,4 – 1,7 million Number of cemeteries 36 Area of cemeteries 1 254 hectares Number of crematoria 2 Number of nurseries 4 Water surfaces 174 hectares Bird sanctuaries 366,4 hectares Trails and river trails 107km = 1 587 hectares Environmental & education centres 6 Size of fleet 312 Vehicles; 131 Trailers Total number of employees as at 30 June 2012 is 1 579 7 Scope of Annual Report This report summarises the performance and operations for the 2011/12 financial year and is detailed in the body of the following report: JCP is committed to the principles of the Joburg 2040 Vision as encapsulated in the strategy of the City of Johannesburg. The Company has aligned its Business Plan with the Integrated Development Plan
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