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Annual Report 2018-19 (JB Marks)

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Annual Report 2018-19 (JB Marks) 2018/2019 ANNUAL REPORT 2018/2019 ANNUAL REPORT CONTENTS CONTENTS…………………………………………………………………………………………………. 2 CHAPTER 1 …………….……………………………………………………………………………………5 COMPONENT A: MAYOR’S FOREWORD……………………………………………………………. 6 COMPONENT B: EXECUTIVE SUMMARY…………………………………………………………… 8 1.1 MUNICIPAL MANAGER’S OVERVIEW…………………………………….................................. 8 1.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW………….. 10 1.3 SERVICE DELIVERY OVERVIEW…………………………………………………………..............17 1.4 FINANCIAL HEALTH OVERVIEW………………………………………………………………. 19 1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW………………………………………............ 19 1.6 AUDITOR GENERAL REPORT……………………………………………………………………. 20 1.7 STATUTORY ANNUAL REPORT PROCESS…………………………………………………. 20 CHAPTER 2 – GOVERNANCE…………………………………………………………………………… 23 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE………………………….. 23 2.1 POLITICAL GOVERNANCE………………………………………………………………………… 23 2.2 ADMINISTRATIVE GOVERNANCE………………………………………………………………... 25 COMPONENT B: INTERGOVERNMENTAL RELATIONS…………………………………………… 28 2.3 INTERGOVERNMENTAL RELATIONS……………………………………………………………. 28 COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION………………………… 30 2.4 PUBLIC MEETINGS……………………………………………………………………………….. 30 2.5 IDP PARTICIPATION AND ALIGNMENT………………………………………………………. 31 COMPONENT D: CORPORATE GOVERNANCE………………………………………………….. 32 2.6 RISK MANAGEMENT …………………………………………………………..……………………... 32 2.7 ANTI-CORRUPTION AND FRAUD…………………………………………………………………... 32 2.8 SUPPLY CHAIN MANAGEMENT……………………………………………………………………. 33 2.9 BY-LAWS……………………………………………………………………………………………….. 33 2.10 WEBSITE……………………………………………………………………………………………… 33 2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES……………………………………………34 CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART 1)…. 36 COMPONENT A: BASIC SERVICE DELIVERY ……………....................................................... 37 3.1 WATER PROVISION…………………………............................................................................... 37 3.2 WASTE WATER (SANITATION) PROVISION……………..………………………………………. 47 2018/2019 ANNUAL REPORT 1 3.3 ELECTRICITY PROVISION…………………………………………………………………………... 50 3.4 WASTE MANAGEMENT…………………………………………...……....................................... 55 3.5 HUMAN SETTLEMENTS…………………….……………………………………………………….. 58 3.6 FREE BASIC SERVICE AND INDIGENT SUPPORT…………………………………………….…59 COMPONENT B: ROAD TRANSPORT…………………………………………………………………. 60 3.7 ROADS AND STORM-WATER DRAINAGE………………………………………………………… 60 3.8 LICENSING SERVICES……………………………………………………………………………….. 64 COMPONENT C: PLANNING AND DEVELOPMENT…………………………………………………. 65 3.9 PLANNING………………………………………………………………………………………… 65 3.10 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM)………………………………. 66 COMPONENT D: COMMUNITY AND SOCIAL SERVICES………………………………………... 79 3.11 LIBRARIES……………………….…………………………………………………………………. 79 3.12 PARKS AND CEMETERIES…………………………………………………………………………. 81 COMPONENT E: HEALTH ENVIRONMENT……………………………………………………........... 82 3.13 ENVIRONMENTAL HEALTH……………………………………………………………….............. 82 COMPONENT F: SECURITY AND SAFETY…………………………………………………………… 83 3.14 TRAFFIC, AND SECURITY…………………………………………………………………………. 83 3.15 FIRE AND DISASTER MANAGEMENT……………………………………………………………. 84 COMPONENT G: SPORTS AND RECREATION………………………………………………………. 86 3.16 SPORT AND RECREATION………………………………………………………………………… 86 COMPONENT H: CORPORATE POLICY OFFICE AND OTHERS SERVICES…..………………. 88 3.17 MUNICIPAL COUNCIL……………………………………………………………………………… 88 3.18 STRATEGIC PLANNING AND REGULATORY…………………………………………………… 89 3.19 FINANCIAL SERVICES (INCLUDING SCM)………………………………………………........... 92 3.20 HUMAN RESOURCES SERVICES………………………………………………………………… 93 3.21 INFORMATION TECHNOLOGY……………………………………………………………………. 96 3.22 LEGAL AND ADMINISTRATION SERVICES…………………………………………………....... 97 COMPONENT I: ORGANISATIONAL PERFORMANCE SCORECARD…………………………… 98 ANNUAL PERFORMANCE ASSESSMENT OF SERVICE PROVIDERS……………………………. 98 REPORT OF THE PERFORMANCE AUDIT COMMITTEE ……………………………………..........161 CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE……………………........... 166 COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL…………………………... 168 4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES…………………………………………… .168 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE…................................................ .169 4.2 POLICIES……………………………………………………………….……………………………….. .169 4.3 INJURIES, SICKNESS, AND SUSPENSION………..………………………………………………..170 2018/2019 ANNUAL REPORT 2 4.4 PERFORMANCE REWARD………………………………………………..……….………………….171 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE…………………………..……172 4.5 SKILLS DEVELOPMENT AND TRAINING……………………………………………………………173 COMPONENT D: MANAGIND THE WORKFORCE EXPENDITURE………………………………....176 4.6 EMPLOYEE EXPENDITURE…………………………………………………………………………. .176 COMPONENT E: OVERSIGHT REPORTING………………………………………………..…………..176 4.7 STAFF ESTABLISHMENT……………………………………………………………………………. .176 4.8 APPOINTMENT OF SENIOR MANAGERS……………………………………………………....... .177 4.9 EMPLOYMENT CONTRACTS………………………………………………………………….…….. 177 4.10 PERFORMANCE AGREEMENTS…………………………………………………………………... 178 4.11 MINIMUM COMPETENCY REQUIREMENTS…………………………………………………….. 178 CHAPTER 5 – FINANCIAL PERFORMANCE………………………………………………………….. 182 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE……………………………...... 182 5.1. STATEMENT OF FINANCIAL PERFORMANCE……………..………………………………........ 182 5.2. GRANTS……………………………………………………………………...................................... 186 5.3. ASSET MANAGEMENT……………………………………........................................................... 187 5.4. FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS……………….………. 188 COMPONENT B: SPENDING AGAINST CAPITAL BUDGET……………………………………….. 191 5.5 CAPITAL EXPENDITURE….. …………………………………………………….……………..….. 191 5.6. SOURCES OF FINANCE……………………………………………………………………………..193 5.7. CAPITAL SPENDING ON 5 LARGEST PROJECTS……………………………………………… 195 5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW……………………….198 COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENT…………………………….....199 5.9 CASH FLOW………………………………………………………….………………………………….199 5.10 BORROWING AND INVESTMENT…………………………………………………………………..200 5.11 PUBLIC PRIVATE PARTNERSHIP……………………………………………………………….… 201 COMPONENT D: OTHER FINANCIAL MATTERS………………………………………………………201 5.12 SUPPLY CHAIN MANAGEMENT…………………………………………………………………...201 5.13 GRAP COMPLIANCE………………………………………………………………………………….202 CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS……………………………………………….204 COMPONENT B: AUDITOR-GENENERAL OPINION ………………………………………….………204 6.1 AUDITOR-GENERAL REPORT YEAR 0……………………………………………………………...204 6.2 2018/2019 AUDITOR GENERAL REPORT CORRECTIVE ACTIONS ……………………………214 2018/2019 ANNUAL REPORT 3 GLOSSARY……………………………………………………………………………………………………215 APPENDICES…………………………………………….…………………………………………………..218 APPENDIX A – COUNCILLORS, COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE.. 219 APPENDIX B – COMITTEES AND COMMITTEE PURPOSES…………………….………………….230 APPENDIX C – THIRD TIER ADMINISTRATIVE STRUCTURE………………………….……………233 APPENDIX D – FUNCTIONS OF MUNICIPALITY……………………………………………………….234 APPENDIX E- WARD REPORTING……………………………………………………………………….235 APPENDIX F- WARD INFORMATION…………………………………………………………………….242 APPENDIX G – RECOMMENDATINS OF THE MUNICIPAL AUDIT COMMITTEE 2018/2019…....243 APPENDIX H – LONG TERM CONTRACT AND PUBLIC PRIVATE PARTNERSHIPS……………247 APPENDIX J – DISCLOSURES OF FINANCIAL INTERESTS……………………………………….. 248 APPENDIX K – REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE..........249 APPENDIX K (I) – REVENUE COLLECTION PERFORMANCE BY VOTE……………………….….249 APPENDIX K (II) – REVENUE COLLECTION PERFORMANCE BY SOURCE…………...………...250 APPENDIX L – CONDITIONAL GRANT RECEIVED……………………. …...………………………..251 APPENDIX M – CAPITAL EXPENDITURE – NEW PROGRAMMES……………………………........252 APPENDIX N – CAPITAL PROGRAMME BY PROJECT 2018/2019…………………………………254 APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD YEAR 0….…………………...255 APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS…………….255 APPENDIX Q – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERES OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION…………..………255 APPENDIX R – DECLARATION OF LOANS AND GRANTS AND GRANTS MADE BY THE MUNICIPALITY ………………………………………………………………………………………………255 VOLUME II: ANNUAL FINANCIAL STATEMENTS…………………………………………..……….. 256 2018/2019 ANNUAL REPORT 4 2018/2019 ANNUAL REPORT 5 Chapter 1 CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY COMPONENT B: MAYOR’S FOREWORD It gives me great pleasure to present the JB Marks Local Municipality’s 2018/2019 Annual Report covering the period 1 July 2018 to 30 June 2019. This report tracks the Municipality’s operational performance in the context of the priorities reflected in its 2018/2019 Integrated Development Plan (IDP) and 2018/2019 Service Delivery and Budget Implementation Plan (SDBIP). In this Annual Report, the municipality presents its achievements, challenges faced during the financial year against the strategic objectives as set out in the IDP and SDBIP. VISION AND MISSION We remain steadfast and committed to the vision and mission of our new Municipality that are stated respectively here – below as follows: VISION A transformed and Integrated African World Class City MISSION To provide affordable and sustainable services to our community through accountable and responsive administration The 2018/2019 financial year marked the second year or just about the half way mark of the 5-year term of office for the current municipal council. The council remained focused on addressing the 6 developmental local government Key Performance Areas:- Infrastructure and Service Delivery Institutional Transformation and Development Local Economic Development and Planning Financial
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