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Umzimvubu Local Municipality DRAFT ANNUAL REPORT FOR 2018/2019 UMZIMVUBU LOCAL FINANCIAL YEAR MUNICIPALITY – EC 442 1 TABLE OF CONTENTS Chapter 1: Mayor’s Foreword and Executive Summary………………………………….................................5 Component A: Mayor’s Foreword………………………………………………………………………………………………..…….5 Component B: Executive Summary…………………………………………………………………………………………………….5 1.1 Municipal Overview…………………………………………………………………………………………………….7 1.2 Municipal Functions and Population Overview……………………………………………………………9 1.2 Service Delivery Overview…………………………………………………………………………………………15 1.3 Financial Health Overview…………………………………………………………………………………………15 1.4 Auditor General’s Report………………………………………………………………………………………….15 Chapter 2: Governance………………………………………………………………………………………………………………17 Component A: Political and Administrative Governance…………………………………………………………………..17 2.1 Political Governance…………………………………………………………………………………………………17 2.2 Administrative Governance………………………………………………………………………………………19 2.3 Audit Committee Report…………………………………………………………………………………………..22 Component B: Intergovernmental Relations…………………………………………………………………………………….22 2.4 IGR Structures and Participation……………………………………………………………………………….22 Component C: Public Accountability and Participation……………………………………………………………………..23 2.5 Public Meetings………………………………………………………………………………………………………..23 2.6 Integrated Development Planning and Alignment…………………………………………………….39 Component D Corporate Governance……………………………………………………………………………………………..40 2.7 Risk Management……………………………………………………………………………………………………..40 2.8 Anti-Corruption and Fraud Management……………………………………………..…………………..40 2.9 Supply Chain Management……………………………………………………………………………………….42 2.10 Municipal Website……………………………………………………………………………………………………42 2.11 Municipal Public Accounts Committee………………………………………………………………………44 Chapter 3: Service Delivery Performance……………………………………………………………………………………48 2 Component A: Basic Service Delivery………………………………………………………………………………………………..48 3.1 Electricity………………………………………………………………………………………………………………….48 3.2 Waste Management and Refuse Removal…………………………………………………………………49 3.3 Housing…………………………………………………………………………………………………………………….56 3.4 Free Basic Services and Indigent Support…………………………………………………………………..59 Component B: Roads……………………………………………………………………………………………………………………….61 3.5 Roads and Storm Water Management……………………………………………………………………..61 Component C: Local Economic Development and Tourism………………………………………………………………72 3.6 Planning……………………………………………………………………………………………………………………72 3.7 Local Economic Development and Tourism……………………………………………………………...80 Component D: Community Services…………………………………………………………………………………………………97 3.8 Libraries and Community Facilities………………………………………………………………………......98 3.9 Cemeteries……………………………………………………………………………………………………………..103 3.10 Special Programmes……………………………………………………………………………………………….104 Component E: Environmental Management and Signage Control…………………………………………………..104 3.12 Pollution control, Biodiversity, Landscape and Coastal Protection…………………………..104 Component F: Safety and Security………………………………………………………………………………………………….110 3.13 Protection Services…………………………………………………………………………………………………110 3.14 Fire and Disaster Management……………………………………………………………………………….115 3.15 Driver’s License Testing Centre……………………………………………………………………………….116 Component G: Sport and Recreation………………………………………………………………………………………………119 3.16 Sport Development…………………………………………………………………………………………………120 Component H: Corporate Policy Offices and Other Services……………………………………………………………120 3.17 Executive and Council Structures…………………………………………………………………………….120 3.18 Financial Services……………………………………………………………………………………………………124 3.19 Human Resources and Skills Management………………………………………………………………128 3 3.20 Information and Communication Technology Services……………………………………………129 3.21 Administration and Registry Services………………………………………………………………………133 Component I: Annual Performance Report……………………………………………………………………………………135 Chapter 4: Organisational Development Performance……………………………………………………………..251 Component A: Introduction to Municipal Personnel……………………………………………………………………...251 4.1 Employee Totals, Turnover and Vacancies………………………………………………………………251 Component B: Managing the Municipal Workforce………………………………………………………………………..252 4.2 Suspensions……………………………………………………………………………………………………………249 4.3 Performance Rewards…………………………………………………………………………………………….250 Component C: Capacitating the Workforce…………………………………………………………………………………….253 4.4 Skills Development and Training……………………………………………………………………………..253 Chapter 5: Financial Management……………………………………………………………………………………………257 5.1 Statement of Financial Performance……………………………………………………………………….257 5.2 Grants…………………………………………………………………………………………………………………….258 5.3 Asset Management………………………………………………………………………………………………..259 5.5 Sources of Finance…………………………………………………………………………………………………260 5.6 Capital Expenditure on 5 Largest Projects………………………………………………………………260 5.7 Basic Service and Infrastructure Backlogs………………………………………………………………260 Component C: Cash Flow Management and Investment……………………………………………………………………262 5.8 Cash flow………………………………………………………………………………………………………………..262 5.9 Borrowing and Investment……………………………………………………………………………………..262 Component D: Other Financial Matters..........................................................................................…...262 5.10 GRAP Compliance……………………………………………………………………………………………………262 Chapter Six: Auditor General’s Audit Findings…………………………………………………………………………….263 Component A: Auditor’s Opinion on the Finance Statement for Prior Year……………………………………….263 6.2 Current Year……………………………………………………………………………………………………………264 4 Appendices………………………………………………………………………………………………………………………………………265 A. ULM Councillors and Council Attendance……………………………………………………………………………265 B. Municipal Committees…………………………………………………………………………………………………………272 C. Third Tier Management Structure………………………………………………………………………………………..273 D. Municipal Functions…………………………………………………………………………………………………………….278 E. Ward Reporting……………………………………………………………………………………………………………………279 F. Audit Corrective Action Plan….…………………………………………………………………………………………….280 G. Audit Committee Recommendation…………………………………………………………………………………….281 H. Revenue Collection Performance By Vote…………………………………………………………….................286 I. Revenue Collection Performance By Source…………………………………………………………………………286 J. Conditional Grants……………………………………………………………………………………………………………….286 Volume 2: Annual Financial Statements……………………………………………………………………………………..286 CoGta EC Standardised Performance Indicators…………………………………………………………………………286 Oversight Report on the Annual Report………………………………………………………………………………………286 5 Chapter 1: Mayor’s Foreword and Executive Summary Component A: Introduction According to Section 127(2) the Mayor of a municipality must within seven months after the end of the financial year table in the municipal Council the annual report of the municipality. Section 129 (1) stipulates that the Council of the municipality must consider the annual report of the municipality and by no later than two months from the date on which the annual report was table in the Council in terms of section 127, adopt an oversight report containing the Council’s comments of the annual report. The Annual Performance Information Report was submitted to the Office of the Auditor General of South Africa by end August 2019 with the submission of the Annual Financial Statements for the financial year ending June 2019 audit purposes. The Office of the Auditor General is finalizing the audit and will issue a report in their opinion regarding their audit of Annual Financial Statements and Performance information. The Annual Report is consolidated and will be presented to Council by end January 2020, after-which it shall be considered by the Municipal Public Accounts Committee which is vested with the power to play oversight responsibility on behalf of Council. The Oversight Report on the annual report will be presented to Council by end March 2020 in line with Section 129 of the MFMA. The Annual Report will be made public for comments within stipulated timeframes. Local community will be invited to submit representations regarding the annual report. The report will be submitted to the Office of the Auditor General, Treasury and Department of Local Government and Traditional Affairs. The Annual Report is a tool for monitoring, evaluation and assessment of the services rendered by the municipality. It serves as a yardstick to evaluate its performance against Pre-determined Objectives. The Council is able to monitor and evaluate whether it is likely to achieve the objectives it has set its self in the IDP over a period of 5 years. The Annual Report is legislated by law governing local government and as such, Umzimvubu complies with the legislation governing local government in terms of accountability which has a positive effect on service delivery and boosting the morale of the citizens of the municipality. 6 Mayor’s Foreword ________________________ Councillor S.K. Mnukwa The Honourable Mayor Component B: Executive Summary ______________________________ Mr G.P.T. Nota Municipal Manager 7 1.2. Municipal Functions and population Overview (a) Brief Description of the Municipal Area Umzimvubu Local Municipality is a Category B municipality (Area: 2 506km²) situated within the Alfred Nzo District in the north-western part of the Eastern Cape Province. It adjoins KwaZulu-Natal to the north, the OR Tambo District Municipality to the south and east, and Matatiele to the west. It is one of four municipalities in the district. The municipality is predominantly rural and the majority
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