CAPRICORN DISTRICT MUNICIPALITY

DRAFT ANNUAL REPORT 2009/10

1 TABLE OF CONTENTS

CAPRICORN ...... 1

DISTRICT MUNICIPALITY ...... 1

TABLE OF CONTENTS ...... 2

CHAPTER 1: INTRODUCTION AND OVERVIEW ...... 6

ForewordbytheExecutiveMayor...... 6

ExecutiveReviewbytheMunicipalManager...... 8

OverviewoftheMunicipality ...... 10

GeographicallocationofCapricornDistrictMunicipality...... 10

SocioeconomicdevelopmentofCapricornDistrictMunicipality...... 10

PeopleandplacesofCapricornDistrict...... 11

CHAPTER 2: PERFOMANCE OVERVIEW ...... 14

KPA1:infrustructuredevelopmentandBasicServiceDelivery...... 14

KPA2:Institutionaltransformation...... 14

KPA3:LocalEconomicDevelopment:...... 15

KPA4:MunicipalFinancialViabilityandManagement:...... 15

KPA5:GoodGovernanceandPublicParticipation:...... 15

KPA6:CrossCutting:SectorSupportandoutreachprogrammes:...... 16

CHAPTER 3: HUMAN RESOURCES AND ORGANIZATIONAL MANAGEMENT .. 17

TrainingandOrganisationalDevelopment...... 17

EmployeeBursaryProgramme...... 17

ImplementWorkplaceskillsPlan...... 18

DevelopandImplementHRDStrategicPlan...... 18

ImplementationoftheTrainingPlan...... 18

OrganisationDevelopments&InstitutionalDevelopmentPlan...... 19

ImplementEmployeeWellness...... 19

PERSONNEL PROVISIONING ...... 19

CompetentHumanCapitalRecruited...... 19

CompetentHumanCapitalRecruitedandMaintained...... 25

2 LabourRelations...... 27

CHAPTER 4: FINANCIAL YEAR 2009/2010 AND RELATED FINANCIAL INFORMATION ...... 28

AUDITOR’S REPORT OF THE AUDITOR-GENERAL TO THE PROVINCIAL LEGISLATURE AND THE COUNCIL ON CAPRICORN DISTRICT MUNICIPALITY ...... 97

REPORT ON THE FINANCIAL STATEMENTS ...... 97

Introduction ...... 97

Accounting Officer’s responsibility for the financial statements ...... 97

Auditor-General’s responsibility ...... 97

Emphasis of matter ...... 99

Additional matters ...... 99

Unaudited supplementary schedules ...... 99

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS ...... 100

Report on predetermined objectives not received on time ...... 100

Action to mitigate risks ...... 101

CHAPTER 5: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVER ... 103

WaterManagement...... 103

Achievements...... 104

Challenges...... 104

RemedialAction...... 109

Taxi Ranks ...... 109

Roads ...... 110

Electricity ...... 111

EnergyServices...... 111

6. Quantity Survey ...... 111

CHAPTER 6. COMMUNITY SERVICES ...... 112

EmergencyandDisasterManagement...... 115

Sports,ArtsandCulture...... 115

3 ChAPTER 7. CORPORATE SERVICES ...... 116

AdministrationDivision...... 116

Information Technology ...... 116

Legal Services ...... 118

ChAPTER 8. STRATEGY, PLANNING AND LED ...... 120

ACredibleIntegratedDevelopmentPlan...... 120

RegionalSpatialPlanningUnit...... 120

LanduseSurvey/LandAuditProjects...... 121

PanningManagementTools...... 121

Local Economic Development ...... 122

HostingInvestorConference...... 122

EstablishmentofCapricornEconomicDevelopmentAgency...... 122

InvestmentandMarketingStrategy...... 123

DatabaseofUnemployedGraduates...... 123

CapacityBuildingForSmallTraders...... 123

WorkshoponSpatialBasedPlanning...... 124

DevelopmentofCompositeTouristGuide...... 124

CapacityBuildingofTouristAmbassodors...... 124

ExhibitionofTourismProducts...... 124

SuportofCalendarMonths...... 124

PlacementofUnemployedTourismGraduates...... 124

CapacityBuildingforTourismProjectBeneficiaries...... 125

OperationalisationofMafefeTraditionalTourismCamp...... 125

OperaionalisationofMotumoTradingPost...... 125

CHAPTER 9. EXECUTIVE AND COUNCIL ...... 125

ExecutiveMayorsOffice ...... 125

HIV/AIDSUnit...... 127

Committees...... 130

InterGovernmentalRelations...... 130

SPECIAL FOCUS ...... 131

4 DisabilityDevelopmentProgrammes...... 132

OlderPersonsDevelopmentProgrammes...... 133

YouthDevelopmentProgrammes...... 134

IinternalAuditServices...... 134

RiskManagemetServices...... 136

CommunicationServices...... 136

2010Developments...... 137

ReportoftheAuditCommittee...... 1378

5 CHAPTER 1: INTRODUCTION AND OVERVIEW

FOREWORDBYTHEEXECUTIVEMAYOR

It is now over a decade since the advent of our democratic local government system, as CDM,wehavealwaysbeenrenownedforourpursuitforexcellenceinservicetoourpeople and delivery of services. Progress, growth and development are key elements in our mandate that have characterized our existence in the history of local government. The resounding victory in the implementation of our projects epitomized our commitment in involving stakeholders and community in matters of government. We are confident to announce that such progress in the last financial year gave us leverage to continue deliveringonthe10/11financialyear.

Accordingly,this2009/2010annualreportcategoricallyprovidesadetailed,true,honestand accurate account of all legislated aspects of performance deriving from the set strategic goals ofthe Council through ourIDPforthe lastfinancial year. It is in this report that we present all the achievements in our governance as well as in service delivery and the underlyingchallenges.

InhisinauguralStateoftheNationAddressinJune2009,PresidentJacobZumaStated:“It ismypleasureandhonourtohighlightthekeyelementsofourprogrammeofaction.The creationofdecentworkwillbeatthecentreofoureconomicpoliciesandwillinfluenceour investmentattractionandjobcreationinitiatives.Inlinewithourundertakings,wehaveto forgeaheadtopromoteamoreinclusiveeconomy.”TheNewGrowthPath:TheFramework must provide bold, imaginative and effective strategies to create the millions of new jobs SouthAfricaneeds.ThejobdriversidentifiedintheNewGrowthPathare:

• Substantialpublicinvestmentininfrastructurebothtocreateemploymentdirectlyin construction, operation and maintenance as well as the production of inputs, and indirectlybyimprovingefficiencyacrosstheeconomy.

• Targeting more labourabsorbing activities across the main economic sectors agriculturalandminingvaluechains,manufacturingandservices.

• Takingadvantagesofnewopportunitiesintheknowledgeandgreeneconomies.

• Leveragingsocialcapitalinthesocialeconomyandpublicservice.

• Fosteringruraldevelopmentandregionalintegration.

The annual report further comes at the time that the ruling party, the African National Congress,throughitsmanifesto,declaredwaroncrime,poverty,empoverishment,lackof education,unemployment,diseasesaswellasscourgeofHIVandaidstothepopulaseand homelessness.ThiswasreiteratedbyPresidentZumaduringtheJanuary8statementin ourbelovedcity,in2011.ThePresidentexplicitlystatedtheneedtofightthese socialillnessesthroughaccellerationofeffortstowardsjobcreation.Thiswillbedoneinthe comingfinancialyearswithintheambitofLimpopoEmploymentGrowthandDevelopment Strategy. The ruling party further recently adopted new economic growth path in its endeavourtoachieve7%ofeconomicgrowth.Aswemoveforwardinthecomingfinancial years, the abovementioned policy documents will serve as our guidelines. The remains significanttoourquesttoimprovelivesofourpeopleinthedistrict.

6 Thepreparationofthisreportcompliantlyhonoursprovisionsprescribedbychapter12ofthe MFMAAct56of2003,Sections45,46ofMSAAct32of2000andtheDivisionofRevenue Act(DORA).Thesepiecesoflegislationrecognizethisreportasamechanismthroughwhich weaccountonperformancetargetsandbudgetsoutlinedinourstrategicplans–specifically lookingatprogressandachievementsmade,coupledwithattainmentofthenationalservice deliverytargetsinthefinancialyear2009/2010.Inthecontextofensuringgoodgovernance andpublicparticipation,weendedourfinancialyearonahighnotebysuccessfullyhosting 2nd DistrictPeoplesAssemblywhereinwebroughttogetherallwardcommittees.

InthisreportournoblegoalsofcontributingtotheachievementsofMilleniumDevelopment Goals(MDGs)aretakenstockof.Thisincludefrankreflectionsoftheprogressachievedin the provisions of basic services such as water, sanitation, electricity and solid waste; challenges experienced over the period and remedial actions taken to address these challenges.

Without regard to the many challenges faced by governments around the globe resulting from the global financial crisis, we as Capricorn District remain not just optimistic but committed to meeting service delivery target of universal access to water by 2010 as espoused in the national targets and MDGs. To this extent, we managed to ensure increased access to water by over 87% of the district population while those who are classified as indigent continued to receive free basic water. Meanwhile, the electrification programmanagedtobenefit77%ofthehouseholdsinCapricorn.Oureffortstomeetthe national target on energy to all by 2012 are on an irreversible path. We still call on our people,thisinlinewithourDistrictEnergyPlantosavepowertoboosttheenergyreserveof theelectricitysupplier.

There is no doubt that the huge quantum of resources invested in infrastructural development,particularlyroadinfrastructurewillreleaseeconomicpotentialoftheDistrictfor thebenefitofourpeoplemostofwhomresidesinourruralareas.Tothisendthehostingof the major event like the FIFA soccer world cup displayed our ability to host major internationalevents.Forthisthedistrictandlocalmunicipality,Polokwaneaswellasthe provincialgovernment,LimpopoProvinceneedtobeapplauded.

As I drive to a close, let me extend my thanks and appreciations to the entire district community for their unequalled support to this Municipality. The staff, Mayoral Committee andhonorablemembersofCouncilalsodeserveaccoladesforchannelingtheirenergyin ensuringproper,quality,sustainableandpeoplecenteredservicedeliveryanddevelopment. Success reflected in this reports shows your utmost level of commitment to the people. Everybody’sdedicationtothesuccessofCDMalsobreathelifetoourmotto“ReSomaLe Setšhaba’

CLLR ML MAPOULO EXECUTIVE MAYOR

7 EXECUTIVEREVIEWBYTHEACTINGMUNICIPALMANAGER

This annual report serves to highlight the progress made by the Capricorn District MunicipalitybetweenJuly2009andJune2010.IthighlightstheachievementsoftheDistrict, theservicesrenderedandprovidedbythemunicipality,andotherdevelopmentsinwhichthe Districthasengagedon.Itfurtherprovidesauditedfinancialstatementsfor2009/2010.The main objective of presenting this report is to report back to communities on performance, progressandotherrelatedmattersduringaforementionedperiod.

2009/2010startedwithminorchallengesinthemunicipality.Despitethesechallenges,the municipalityispleasedtoreportthatCDMcontinuedtosethighstandardsandpursuedhigh levelsofservicedelivery.The80%overallachievementinthescorecardbyourinstitution bears testimony to this. The staff have continued to demonstrate their commitment, enthusiasmandinnovationinfulfillingCDMmandate.

Key focus of our activities in addition to overall daytoday administration and delivery of basicserviceshasbeenthepurchasingofthecommunityservicefirefightingtrucks,honey suckers,completionofmultymillionwaterprojectsandalsocommunityoutreachmeetings withthepeopleoftheDistrict.Thelatterwasaimedatensuringcommunityparticipationin governmentprogrammes.

As we continue to extensively focus onthe service excellence, ourapproach is always to workcloselywithcommunitiestobuildappropriatemunicipalcommunitypartnerships.The local knowledge of the people is combined with the local government developmental mandatetoensuresustainable,peoplecentreddevelopment. This approach maximizes local economic development opportunities and builds skills and capacityinmostofourruralareas.Thoughwestillfacechallengeswhichwethinkwewill overcome,westill needto: • fasttrack infrastructural development initiatives and service delivery, focusing on the provisionoffreebasicservices,water,sanitation,electricity,roadsandstormwateras wellaspassengertransport; • deepen the alignment of our IDP with the Limpopo Employment Growth and Development Strategy (LEGDS) and the National Spatial Development Perspective (NSDP) as an inclusive instrument around which planning should take place towards addressingthesocioeconomicchallengesconfrontingourregion; • interveneinourLocalEconomicDevelopmenttoadequatelyaddressissuesofeconomic development,skillsdevelopment,jobcreationandpovertyalleviation; • enhance the performance of the District by inculcating the culture of performance managementinallourprocesses; • ImproveourIDPtocoveraperiodofnotlessthanfiveyearsaspartofourlongterm strategicgoalsinlinewithnationalprescripts • continue to deepen public participation, intergovernmental relations, stakeholder participationandcustomercareinallourprocessesgearedtowardsbetteringthelivesof ourcommunities; • The need to continuously monitor the implementation and attainment of the developmentalobjectivesencapsulatedintheDistrictIDP. • Attainmentof2014nationaltargesasasespousedinMunicipalTurnAroundStrategy. Itisthereforeevidentthatasacollective,theCapricornDistrictMunicipalityhaveagigantic tasks to fulfil in order to make this plan happen. We have already started working on it,

8 allocating financial resources to variety of functions under our responsibility, creating structurestocarryouttheentiretaskasindentified. The constitution and the local Government statutes enjoin District municipality with the obligationofpositivelyinfluencingregionaleconomiesaswellasimprovingthegeneralwell being of its comunities. It is in recognition and pursuit of these obligation thefore that the CDM has resolved to embrace the national and provincial strategies. CDM has promoted infrastructure development and upgrading as paramount in fulfilling its regional economic developmentobjective. IndefiningCDM’sdevelopmentaltrajectory,requiredarebothfocusanddecisivenessonour part; the will to weigh tradeoffs and make choices, as well as strategies to inspire all stakeholderstoproceedalonganewtrail.Ifdecisiveactionistakenonanumberoffocused areas,theconfluenceofpossibilitiesissuchthattheDistrictwouldenteraroadoffaster economic growth and jobcreation, faster and more efficient provision of quality services, increased social cohesion and reduction of the paradigm of exclusion prevalent among sectionsofsociety.

TM PHOGOLE ACTING MUNICIPAL MANAGER

9 OVERVIEWOFTHEMUNICIPALITY

GEOGRAPHICALLOCATIONOFCAPRICORNDISTRICTMUNICIPALITY

TheDistrictMunicipalityissituatedinthecentreoftheLimpopoProvincesharingitsborders with 4 district municipalities namely: Mopani (east), Sekhukhune (south), Vhembe (north) andWaterberg(west).TheDistrictissituatedatthecoreofeconomicdevelopmentinthe LimpopoProvinceandincludesthecapitaloftheProvince,i.e.theCityofPolokwane.One nationalandvariousmajorprovincialroadspassthroughthedistrictmunicipalarea,i.e.the N1–NationalRoadfromGautengtoZimbabweandtherestofAfrica,theP33/1(R37)from Polokwane to Burgersfort / Lydenburg, the P94/1 (R521) from Polokwane to Alldays and BotswanaandtheP17/1(R71)fromPolokwanetoTzaneenandPhalaborwa.

Capricorn District Municipality covers an area of 18,570.30km 2 and has five local municipalitiesunderitsjurisdiction.TableA1indicatesthelocalmunicipalitiesintheCDM areaandtheareatheselocalmunicipalitiescover.

TableA1:LocalMunicipalitiesintheCDMArea LocalMunicipality Area(km 2) No.ofwards %ofCDM

AganangLM 1,852.22km 2 18 9.9% BloubergLM 5,054.84km 2 18 24.4% LepelleNkumpiLM 3,454.78km 2 27 27.2%

MolemoleLM 3,347.25km 2 13 18.2% PolokwaneLM 3,775.21km 2 37 20.3% Capricorn DM 18,5 70.30km 2 113 wards 100.0% Source: CDM SDF, 2005

SOCIOECONOMICDEVELOPMENTOFCAPRICORNDISTRICTMUNICIPALITY

According to the Statistics South Africa (Census 2001), the total population of Capricorn District Municipality is estimated at 1243 167. A total of 285565 households live in the districtmunicipalareaandtheaveragehouseholdsizeis6.1.ThePolokwanemunicipalarea isthemostdenselypopulatedwithestimated561772peoplelivingin,whiletheMolemole municipalareaistheleastdenselypopulated(5.52people/ha).

10 Table: Population Figures for Local Municipalities in the Capricorn District Municipality Area

Average Local Estimated No. of % of District Household Municipality Population Households Population Size

Polokwane 561772 130361 6.67 44.02 %

LepelleNkumpi 241414 58483 6.35 19.74 %

Molemole 100408 27296 5.52 9.48 %

Blouberg 194119 35598 5.72 13.97 %

Aganang 145454 33826 6.39 12.79 %

TOTALS 1 243 167 285 565 6.1 100%

Source: Community Survey 2007

PEOPLEANDPLACESOFCAPRICORNDISTRICT

ThetotalpopulationofCDMisestimatedat285565or1243167households(Community Survey 2007), close to 44% of which live in Polokwane, one of the fastest growing local municipalities in the country. The growth of Polokwane is underpinned by the natural increaseofitspopulationas wellastherapidruralurbanmigrationtakingplace.Closeto 40%ofthepopulationareagedbetween0to14yearsand6%areovertheageof60.A significantnumberofeconomicallyactivemalesareworkinginotherdistrictsandprovinces such as Gauteng to earn an income and return home to their families over weekends or monthends.Thismeansthatasignificantproportionofthepopulationisdependentonthe incomegeneratedbyothers.Over25%ofthepopulationhasnoformaleducationatalland over40%hasonlyalimitededucation(belowGrade12).Amongthesegroups,incomeand upwardmobilityopportunitiesareextremelylimitedinspiteofhighoveralleconomicgrowth; theyareunlikelytofindemploymentintheshorttomediumterm.Morethanseventypercent (70%)ofhouseholdsinAganang,BloubergandMolemolelivebelowthebreadline. It is estimatedthat over 55% of the “economically active population” (people between the agesof15and64years)isunemployed.Thissituationisrapidlyworsening,astheaverage unemployment rate for the district was 46.5% in 1996. Unemployment is the lowest in Polokwane Local Municipality compared to other municipalities. Migrancy remittances earnedoutsideCDMhavelongbeenthemostimportantsourceofincomeinthearea.This isthemainformofincomeformanyhouseholdsandthemajorsourceofmoneyflowinginto CDM.TheServicesectorisverydominantinthelocaleconomy.Theonlytwoothersectors with notable contributions are manufacturing and trade. It is interesting to note that the locationquotientsuggestthatthedistrictenjoyscomparativeadvantagesintrade,finance, transport and services. This can largely be attributed to the location of Polokwane in the district,whichhasalwaysbeentheadministrativeheartoftheprovince.

11 The Capricorn District contributes about 32% (1994) towards provincial manufacturing, which, after the Mopani District, represents the second highest contribution of all the districts.Thedistrictalsogeneratesabout26%(1994)towardsprovincialtrade,which,after the Vhembe District, is the second highest contribution of all the districts. These figures therefore suggest that the Capricorn District represents an important location for both manufacturingandtradeactivitiesintheprovince.Themostimportantlocationforthesetwo activities is the Polokwane/ cluster. In terms of the new set of incentives, Polokwane qualifies for the Tax Holiday Scheme (THS), as well as an Industrial DevelopmentZone(IDZ).Inaddition,thenodehasaninternationalairport,whichhasthe potentialtoimprovetheexportationofprovincialproductionsuchassubtropicalfruit.Itcan be assumed that the dominance of the Polokwane/Seshego node is likely to increase in future.Theeconomywillinfuturemostprobablytendtowardsthetertiaryactivity,particularly activities such as services, finance, trade and transport. It has been proposed that a biosphereberegisteredatBlouberg.Mineralproductionincludestheproposedexplorationof flakegraniteatAlldays(Steamboat). The entire district is water poor, as it does not have many primary sources of water. Currentlywaterthatisusedinthecapitalcityhastobeimported.Thecontinueduseofwater andtheneedinfutureforirrigationwatermaynotbesustainedoveralongperiod.Thiswill seriouslyaffectanumberoftheirrigationregionssuchastheSandIrrigationRegion. Approximately30.53%ofallthesettlements(i.e.townsandvillages)intheCDMareaare located within Polokwane Local Municipality. Approximately 20% of all the larger settlementswith5000peopleandmorearealsolocatedwithinthislocalmunicipalarea.All 5localmunicipalareashavealargenumberofsmallvillages,thatis,villageswithlessthan 1 000 people. These low population densities have severe implications for improving the levels of service provision to communities, as the cost associated with respect to the provisionofserviceinfrastructure,forthisspatialsettlementpatternisveryhigh.Therearea number of government owned reserves in the district such as Blouberg, Moletjie, Bakone andMachaka.Inaddition,therearetworegisteredNaturalHeritageSitesnamelyBrackenhill andGoedehoop.Ahousingbacklogof325503unitsexistsintheCDMarea,i.e.112503 unitsinurbanareasand213000unitsintheruralareas. Aganang haspotentialforagriculturalandtourismdevelopmentbutdoesnothaveaviable revenuebaseandisexperiencingenvironmentalproblems.Themunicipalitydoesnothave planning systems and tools to guide development such as bylaws and a townplanning scheme. Blouberg comprisessixgrowthpoints,i.e.,Alldays,Eldorado,Buffelshoek, HarriswichandMyDarling.Thecentrallocalityofthemunicipalareainrelationtotherestof thecountryensuresthatanumberofimportantregionalroutestransversethearea. Lepelle-Nkumpi municipalareaisthesecondlargestmunicipalityandcomprisestwourban nodes(DistrictGrowthPointandtheMagatleMunicipalityGrowthPoint).The occurrence of unsettled land claims in the area is hindering spatial development in the municipalarea. Molemole comprises farms, plantations, smallscale mining, housing (low cost, informal, middleincome),transportationnetworks(roadandrail),agriculturalareas(commercialand subsistence), and recreational and community facilities. It has a potential for tourism development,whichneedstobeimprovedandmarketedtoattractandcreateaneconomic base.

12 Polokwane isthecapitalofLimpopoandislocatedontheN1.Thespatialpatternofthe municipalareareflectsthehistoric“apartheidcity”model,withPolokwaneasthemaincentre andothernodessuchasSeshegoandlocated10kmtothenorthnorthwestand 25kmtotheeastofthecitycentrerespectively.Extremelyimpoverishedruralsettlements arescatteredintheperipheralareasofthemunicipalarea.Theeconomicspaceistotally dominatedbythePolokwane/Seshegonodalpoint.By1996,thetownwasconsideredone ofthefastestgrowingcitiesinSouthAfrica.ThenodeliesontheN1axis,whichisthemain gatewaytotherestofAfrica.Thecapacityofthisaxisisconstantlyimprovedanditcanbe expectedthattheaxiswillbecomeevenmoreimportantforthetransportofgoodsbyroadto and from Africa. This status is further supported with the Polokwane International Airport located just outside of Polokwane. The Department of Trade and Industry (DTI) also identifiedthenodeasasocalledIndustrialDevelopmentZone(IDZ).Thissupportsearlier suggestions that the node be developed as an Export Processing Zone (EPZ). To the northwestofthePolokwane/SeshegonodelieSenwabarwanaandThabamoopowhichare districtsoftheformer. The Polokwane municipal area has the largest number of informal dwellings or shacks in backyards elsewhere and represents approximately 14.32% of all housing units. In total approximately701,000ha(representing41,31%ofthetotalareaoftheCapricornDistrict)is subjecttolandclaims.Landclaimshaveasevereimpactonthedevelopmentoftheentire District. In 2003, 700 land claims had been lodged with the Regional Land Claims CommissionerintheCDM.Landdevelopmentandlandusemanagementishinderedbythe applicabilityofdifferenttypesoflegislationtodifferentareasandtowns/settlements/villages in the CDM area. The plethora of planning legislation creates uncertainty and sometimes conflictbetweenvariousroleplayers. The City, Polokwane like other cities throughout the world experience influx of foreign nationals. This obviously has long term effect on the services provided to citizens of the area.ItalsohasimpactonthelimitedresourcestobeallocatedtopeopleintheCityand aroundthemunicipalarea.

13 CHAPTER 2: PERFOMANCE OVERVIEW

ThefollowingchapterhighlightskeyachievementsbasedonthefollowingKPA:

KPA1:INFRUSTRUCTUREDEVELOPMENTANDBASICSERVICEDELIVERY

Approximately(202750)71%ofthepopulationlivinginthedistricthasaccesstowaterat RDP standards, and 29% (backlog) receives water from natural sources such as rivers, dams,springs,etc.whichincreasestheirsusceptibilitytodisease.However,theoperation and maintenance of existing water schemes is still a challenge, which affects the sustainabilityofwaterprovision.Sevenintenpersonshaveaccesstosanitationthatmeets minimumRDPlevels. CDMareahaveaccesstoelectricityand18,2%(51973)donothaveaccesstoelectricity.In themunicipalareasofAganangandBlouberg59,4%and61,1%respectivelyhaveaccessto electricity, whereas in Molemole 77,9%, LepelleNkumpi 94,1 have substantive access to electricitywithPolokwaneat55%.Intermsofroads,thetotaldistrictroadstobetarredis2 494kilometres,which200kilometresisalreadytarred.Thebacklogis2294km.Themajor publictransportservicesinCDMarebusandtaxioperations.MostroadsintheCDMarein apoorstateofrepair.Theruralroadsarepoorlydesignedandnotmaintainedwithspecific attentiontostormwaterdrainage.Thereisalsosignificantfreighttransportduetothemining activitiesinthedistrict Thefollowingdisasterriskshavebeenidentified:floods,droughtandotherextremeweather conditions,epidemics,veldfires,transportationemergencies.Themainobjectiveoffireand rescueservicessectionistopreventthelossoflifeanddamagetopropertyandtoprovide protection againstfire.CDM has identified many environmental problems rangingfrom air pollution,overgrazing,contaminationanduncontrolledlanddevelopment.Furthermore,four outofeveryfivehouseholdsdonothaveaccesstoamunicipalsolidwastedisposalservice. Environmentalmanagementisacriticalfunctionduetotheneedthatexiststoprotectthe social, natural and economic resources on which future development and quality of life dependsandtouseresourceswiselysoastomaximiseopportunitiesforsustainablegrowth anddevelopmentbothinthepresentaswellasinthefuture.

KPA2:INSTITUTIONALTRANSFORMATION

Thefocuswastodevelopthenecessarycapacityamongallstakeholderstoenablethemto discharge their responsibilities towards development of communities. Some of the tasks have been successfuly done. The municipality ensured that communities throughout the district access various training or capacity development interventions. This was done throughconductinginstitutionalcapacityassessment,skillsauditandperformancereviews as well as compilation of the district wide skills profile. These exercises are conducted periodically and inform specific capacity building interventions and measures. Identified measureswerecapturedandtranslatedintoaWorkSkillsPlan(WSP)whichfocusesonthe internalroleplayersandexternalcapacitydevelopmentframeworkacomprehensiveplan incorporating broad institutional training needs outside the organization including local municipalities,thatis,throughlearnershipsand,internships.CDMensuredthecoordination ofhumanresourcesdevelopmentthroughtheimplementationoflearnershipsandInternsas wellasonsitetrainingactivities.

14 KPA3:LOCALECONOMICDEVELOPMENT:

CDMrepresented25%(secondlargestintheProvince)oftheprovincialeconomyin2009. TheCommunityServicesSector,whichismostlygovernment,isbyfarthelargestsectorin thedistricteconomy,representing31%ofthetotaloutput.TheTradeandRetailSectoris thesecondlargestsectorandhasgrownby14.6%.TheAgriculturalSectorhasthefastest nominalgrowthrate(19.2%).TheMiningSectorreflectsthesecondfastestgrowthratedue totheestablishmentofthenewdiamondmineatandtheexpansionoftheSilicon Smelters.Polokwaneisbyfarthelargestofthefivelocaleconomies,followedbyLepelle NkumpiandMolemole.BloubergandAgananghaveverysmalleconomiesandareurgently inneedofeffectivelocaleconomicdevelopmentinitiatives. AlargepartofCapricorn’seconomydependsonagriculturaldevelopmentandeconomically potatoes are by far the most important crop in CDM. Capricorn is situated as a stopover betweenGautengandthenorthernareasofLimpopoandbetweenthenorthwesternareas oftheprovinceandtheKrugerNationalPark.ItisagatewaytoBotswana,Zimbabweand Mozambique.CDMiscurrentlyatourismdestinationandagatewaytootherdestinationsin theprovinceandcountry.

KPA4:MUNICIPALFINANCIALVIABILITYANDMANAGEMENT:

There are also currently budgetary and financial management reforms sweeping local governmentthroughoutthecountry.Thesereformscomesinthewakeofundercollectionof revenue, uneconomical use of resources including spending, inefficient management of municipalassetsandoverallfinancialmanagementinlocalgovernmentthatisincongruent with the generally acceptable financial management practices. The key challenge is to maximize revenue (generation and collection). The Municipal Finance Management Act requiresthemunicipalitytoformulateandimplementaSupplyChainManagementpolicyto guideitsprocurementofgoodsandservices.CDMisaswellrequiredtoembracethespirit and principles of the Broad Based Black Economic Empowerment (BBBEE), Preferential ProcurementanditsLocalEconomicDevelopmentstrategy.

KPA5:GOODGOVERNANCEANDPUBLICPARTICIPATION:

Ward participation is still an important aspect that brings people closer to the municipalities.Therearepocketsofsuccessrecordedacrossthemunicipality,especiallyin localmunicipalities.However,thechallengesgobeyondestablishmentofwardcommittees tolookingathowtheycanbesustainedtogivecommunitiesavoicethatmakesanimpactin thedirectionofprogrammesofthemunicipality.CommunityBasedPlanning(CBP)hasbeen implemented from the financial year 2009/10, in order to deepen ward participation to planning. CBP is specific to the ward, which has been designed to promote community action and make the IDP of a municipal area more people focused. The objective is to improve the quality of plans and services, improve community’s control over development and to increase community action and reduce dependency. There is a gap for capacity buildingforwardcouncillorsthatneedtobecoordinatedatadistrictlevel.Aswellthereisno measurement tool for performance of councillors across all municipalities in relation to performancetargets.

15 KPA6:CROSSCUTTING:SECTORSUPPORTANDOUTREACHPROGRAMMES: a. HealthandHIV/AIDS: CDMhas,inlinewithnationalpolicy,establishedaDistrictAidsCouncilandhasembarked onasetofprocessesandactivitiesaimingtostrengthenthemultisectoralresponsetoHIV andAIDSbothinthecommunityandintheworkplace. b. Sports,CultureandHeritage: Wehavetogetherwithotherstakeholdersdevelopedinfrastructureoverthenextthreeyears in Polokwane which will address a sustainability perspective to be relevant investment beyond 2010. Key interventions which took place included the building of the new Peter MokabaStadium,trainingvenues,suchastheSeshegoStadiumandthebuildingofstadium in Mankweng (Erf 613); the upgrading of the road network system in Polokwane; beautificationofthecityentranceandCBD; c. SpecialFocus: The Special Focus section ensured that all special focus groups the youth, elderly and disabledinthemunicipalityaremainstreamedintothedevelopmentalagenda.Inmaking sure that it responds to the needs of these groups of people, various special focus intergovernmental structures were launched and supported with sufficient consultation having been undertaken. Programmes and projects including skills development and economic empowerment were implemented to empower and mainstream special focus groups. Strategies have been developed to bring an equity element into all aspects of planning,policy,programmingandtransformationactivitiesofthemunicipality.CDMinitiated and coordinated special focus development programs in the district and ensure the participationoftheyouthintheeconomicdevelopmentofthedistrict. d. Education: Wehavecontinuedtosupport“AdoptaSchool”programmewherebyallmayoralcommittee membersadoptedneedyschoolsandexposedtheschoolsgoverningbodiestomotivational programmes“Ican”.Identifiedschoolswerevisitedinthebeginingof2010andschoolkids supportedwithculculators e. EmploymentEquityandBlackEconomicEmpowerment. CDM is committed to correcting past imbalances in terms of employment equity. We are howeverclearthataffirmativeactionisnotarecipeforthereplacementofskilledlabourbut an instrument to increase representation of the previously disadvantaged in critical job categoriesoftheorganisation.

The institution has continued to ensure that Black owned companies are provided opportunitiesbyexercisingthePreferentialProcurementActof2000.Thisisillustratedinthe amount of work that was allocated to BEE companies including women owned and controlledcompanies.

16 CHAPTER 3: HUMAN RESOURCES AND ORGANIZATIONAL MANAGEMENT

HumanResourceManagementiscentraltothestrategicthrustoftheDistrict.Itisgearedto achieveoptimaloutcomesandimpactonServiceDelivery.TheDistrict`sHumanResource Management located within the Corporate Services Department and headed by the Managert. The function is organized and discharged through the following units; HR Provisioning and Maintenance,Training and Organizational Development, Labor Relations andPayrollmanagement.

• Provisioning and Maintenance is responsible for implementation of the organizational structurethroughrecruitment,bothinternallyandexternally. • Payroll ensures that salaries are paid timeosly and in accordance to legislative requirements. • LabourRelationsmanagesandensuressoundlabourpractices.. • Training and Organizational Development coordinates training programmes in an integratedapproachforbothemployeesandcouncilors. • TheHRMisfurtherstrengthenedthroughvariousCommitteesinlinewithGoodGovernance. • TrainingCommittee • WorkPlaceForum(LocalLabourForum) • EmploymentEquityCommittee • Health&SafetyCommittee • RemunerationCommittee

TRAININGANDORGANISATIONALDEVELOPMENT

Achievements: Bursarieswereawardedto20students.Thestudentssubmittedfinalresultsand registrationsforthecurrentacademicyearwereundertaken.Thetrainingunitwasfacilitating paymentsofalloutstandingfeesforthesemesters.Thetrainingunithasreceivedsome semesterresultsfrominstitutionsofhigherlearning.Advertsforthenewintakeresumedin August.

Challenges: Fundingremainedachallenge.Studentscompletedexamsbuthadbeenblockedfrom viewingorreceivingresultsduetodelaysinpayments.Paymentswerebeingprocessed veryslowlyinFinance.

EMPLOYEEBURSARYPROGRAMME

Achievements: Themunicipalityawardedbursariesfor45employeesforthe2010academicyear.The municipalityalsoresolvedtonotcoverthetravellingandaccommodation.

17 IMPLEMENTWORKPLACESKILLSPLAN

Achievements: The WSP was submitted to the LG SETA 30 June 2009. The municipality received R 485204.00,mandatorygrantsintheformofrebatesfromtheLGSETA.Depositsforthe rebates were being tracked in collaboration with Department of Finance. The municipality was able to implement a learnership on Local Government Accounting Certificate LearnershipimplementedincollaborationtheDepartmentofHousing&LocalGovernment. ThemunicipalityhadplacedinternsforworkplacetraininginbothFinanceandIT.Wehave5 FMGIntersand5internsforIT

CDMinconjunctionwiththelocalmunicipalitiesandDBSAhaveheldfurtherinterviewsfor the recruitment of Artisans. 24 Artisans (13 Electricians and 11 Plumbers) have been appointed. Attempts were being made to ensure that all municipalities benefit from this process.

DEVELOPANDIMPLEMENTHRDSTRATEGICPLAN

Achievements: ThisinitiativewaspartoftheInstitutional/ODProjectthatwasbeingfacilitatedbyResolve GroupandtheHRDstrategyhasnotbeencompleted.TheHRUnitreviewedthescopeof the HRD strategy to include local municipalities as per guidelines provided the provincial DepartmentofLocalGovernmentandHousing.

IMPLEMENTATIONOFTHETRAININGPLAN

Achievements: Trainingunithasbeenabletoprocurethefollowingtrainingprogramme:

i. ComputerTrainingofferedbyCTU ii. Specialised local Government Programme offered by Durban University of Technology iii. TransformationalLeadershipofferedbyWITSUniversity

The training Unit also conducted skills audit process for both DWAF and environmental Healthtransferredemployees.Theskillsauditprocesswasdonefor353DWAFemployees and20EHSemployees.

Challenges: Training initiatives are currently reactive and did not include transferred employees from DWAF and Department of Health. We were not able to adequately address all individual needs considering funding allocations and demands from employees for training due to limitationforfunding.

18 ORGANISATIONDEVELOPMENTS&INSTITUTIONALDEVELOPMENTPLAN

Achievements: TheprojectwasbeingfacilitatedbyResolveGroupandwasjustabouttobeconcluded.The ServiceProviderhadcompletedthefollowingactivitiesasperapprovedTermsofReference: • Theorganizationalstructurehadbeenfinalizedandthemayoralcommitteeapprovedit. Placementofemployeeswasalsoconcluded. • RoleProfilesastheyappearedonthe2008/09organizationalstructurehavebeen developedandqualityassured.Howevertheprocessexcludedthetransferred employeesfromDepartmentsofWaterAffairsandHealth. • AJobEvaluationPolicywasdevelopedandtrainingonJobEvaluationwasofferedtothe HRTeam. • OrganizationalStructurewasreviewedandwasbeingpresentedtoalldecisionmaking structuresforconsultationandratification’Thisorganisationalstructurewasadoptedin December2009. • The1 st DraftoftheInstitutionalDevelopmentPlanwasdevelopedandpresentedtothe municipalityforcomments.

Challenges: Theprojectwasfacedwithalotprojectmanagementchallengesthatemergedduetolackof clarity relating to project scope and communication about the project both internally and externally.

IMPLEMENTEMPLOYEEWELLNESS

Achievements: Theservicewasadvertisedfortenderandtheevaluationreportwasfinalisedandtheproject wasdueforadjudication.

Challenges: Thereweredelaysinthefinalisationoftheevaluationreportandithasimpactednegatively ontherollingoutoftheproject.

PERSONNEL PROVISIONING

COMPETENTHUMANCAPITALRECRUITED

APPOINTMENTS

Positions filled from July 2009 to June 2010 are 28 and are as follows:

1. ManagerBudget 2. PersonnelOfficer 3. TechnicianRoads 4. 2AdminClerks(SupplyChainManagement) 5. ManagerHumanResources 6. Accountant:Treasury 7. DisasterManagementCoordinator 8. AirQualityOfficer 9. ManagerIncome 10. ManagerinExecutiveMayor’sOffice

19 11. 4StationOfficers 12. ChiefFinancialOfficer 13. 3ControlRoomOperators 14. MayoralSupportOfficer 15. 2PublicParticipationCoordinators 16. GeneralAssistant 17. 5FMGInterns

Declined Offers of employment from July 2009 to June 2010 was one

• ChiefFinancialOfficer

ADVERTS

The following positions were advertised during 2009 / 2010 Financial Year:

• Manager:ExecutiveMayor’sOffice • DeputyManager:Agriculture • ProcurementOfficer • StationOfficers(X4) • LeadingFireFighters(X3) • SeniorFireFighter(X4) • JuniorFireFighters(X3) • FireFighters(X5) • ControlRoomOperator(X3) • DisasterManagementOfficer • ChiefFinanceOfficer • MayoralSupportOfficer • SeniorManagerStrategicPlanningandEconomicDevelopment • ManagerPlanningandDevelopment • ISDCoordinator • PMSCoordinators(X2) • RiskOfficer • SeniorInternalAuditor:SpecialisedAudits

TERMINATION OF SERVICE:

Total Resignations was 19

Community Services: 8

• StationOfficer: • 4SeniorFireFighters: • JuniorFireFighter: • FireFighter: • ControlRoomOperator: Finance: 4

 2FMGIntern: Finance  AssistantAccountant: Finance (Dismissal)  Creditor’sClerk: Finance (Dismissal)

20 Strategic Planning and Economic Development: 3

 SeniorManagerStrategicPlanningandEconomicDevelopment  ManagerPlanningandDevelopment  DeputyManagerSocialDevelopment Executive Management: 2

• MayoralSupportOfficer • DeputyManagerPMS Corporate Services: 2

• 2SAPAdministrator

EMPLOYMENT EQUITY REPRESENTATION TheEmploymentEquityReportforthe2008/2009financialyearwassubmittedbeforethe closingdatewhichwas15January2010. Males:66% Females:34%

EMPLOYMENT EQUITY ALL EMPLOYEES

FEMALES MALES TOTAL

181 348 529

ALL EMPLOYEES

FEMALES MALES

34%

66%

21 EMPLOYMENT EQUITY PER DEPARTMENT - CDM

DEPARTMENT FEMALES MALES TOTAL

STRATEGICSUPPORT 16 20 36

FINANCE 17 7 24

CORPORATESERVICES 21 16 37

STRATEGICPLAN&ECONDEV 7 7 14

INFRASTRUCTURE 11 21 32

COMMUNITYSERVICES 40 46 86

INTERNS 5 0 5

CONTRACTORS 2 1 3

TOTAL 119 118 237

FEMALES

STRATEGIC SUPPORT FINANCE CORPORATE SERVICES 13% STRATEGIC PLAN & ECON DEV

4% 2% 14% 34% 9% 6% 18%

22 EMPLOYMENT EQUITY AS PER POSITIONS – TRANSFERRED EMPLOYEES

POSITION FEMALES MALES TOTAL

ADMINCLERK 11 6 17

ARTISANS 0 11 11

GENERALWORKERS 27 58 85

OPERATORS 5 78 83

WATERPLANT 1 8 9

CHIEFACCOUNTINGOFFICER 0 2 2

OTHER 7 52 59

CHIEFENVIRONMENTALHEALTH OFFICER 0 5 5

ENVIRONMENTALHEALTHOFFICER 10 10 20

ENVIRONMENTALHEALTH SUPERITENDENT 1 0 1

TOTAL 62 230 292

ENV HEALTH ENV FEMALES SUP HEALTH ADMIN 2% OFFICER CLERK 16% 18% CHEIF ENV ARTISANS HEALTHCHIEF OTHER 0% ACCOUNTIOFFICER 11% NG OFFICER0% WATER GENERAL 0% PLANT WORKERS 2% 43% OPERATORS 8%

23 EQUITY REPRESENTATION AS PER EMPLOYMENT CATEGORY - CDM

CATEGORY FEMALES MALES TOTAL

SeniorManagers(01) 1 5 6

Management(23) 9 25 34

Professionals(45) 18 30 48

Technicians(67) 13 24 37

Skilled/Clerical(810) 55 23 78

Unskilled(1116) 16 10 26

Interns 5 0 5

Contractors 2 1 3

TOTALS 119 118 237

FEMALES

Senior Managers (0 - 1) Management (2 - 3) Professionals (4 - 5) Technicians (6 - 7) Skilled / Clerical (8 - 10) Unskilled (11 - 16) Interns Contractors 4% 2%1% 8% 13% 15%

11%

46%

60 50 40 30 20 10 0 FEMALES MALES

24 EMPLOYMENT EQUITY AS PER AGE GROUP – ALL EMPLOYEES

AGE GROUP FEMALES MALES TOTAL

2030 43 28 71

3140 73 64 137

4150 43 161 204

51ANDOLDER 22 95 117

TOTAL 181 348 529

180 160 140 120 100 80 FEMALES 60 MALES 40 20 0 20 - 30 31 - 40 41 - 50 51 AND OLDER

COMPETENTHUMANCAPITALRECRUITEDANDMAINTAINED

LEAVE MANAGEMENT

EMPLOYEES:

• Personalleavefileswereopenedforallemployeesincludingtransferredemployees. • ApprovedleaveapplicationswerecapturedweeklyonSAPandfortransferred employeesonExcel. • InNovember2009allemployeesexcepttransferredemployeesweregivenpersonal leavereportsinordertoverifyandconfirmthenumberofleavedaysthattheyhad. Theyweregivenatimeframetosubmitanyqueriesthattheyhad.Employeeswho haddaysinexcessof48onaccumulatedwerethengivenuntil30June2010touse alltheexcessleavedaysbecausethemaximumnumberofdaysallowedon accumulatedis48. SAP SYSTEM:

• SAPConsultantsfromEpi–Usewereappointedtoaddresstheleavemanagement challengesthatweexperienced. • Thesystemconfigurationsweredoneandwearecurrentlyabletodeductleave takenfromeitherannualleavequotaoraccumulatedleavequota,whichwasnot possiblebefore.

25 • The50/50studyleavequotawerecreatedinlinewiththepolicy. • Thelongserviceleavequotawascreatedforrecognitionoflongserviceand compensation.Thesystemautomaticallycreditstheemployeewhentheyreachthe serviceperiod,wenolongerhavetousetheemployee’sannualdaysforthis compensationlikewedidpreviously. • Thesystemallowed6monthsaftertheleavecycleforanemployeetousethe remainingleavedaysandtheywillbekeptasunusedleavedaysandtheywillalso reflectonthepayslips. MEDICAL AID ADMINISTRATION:

• Employeeshad2consultationsessionswithmedicalaidserviceproviders:LA Health,SAMWUMed,HOSMED,BonitasandKeyHealth. • The5accreditedmedicalaidschemeswereinvitedtopresenttheirmedicalaid schemebenefitstothetransferredemployeesacrossthedistrictatthesatellite offices. • TheotherconsultationswasdoneduringthewindowperiodinOctober2010because memberswerenotallowedtochangemedicalaidschemesinthemiddleoftheyear. PENSION FUNDS ADMINISTRATION:

• Twoconsultationorinformativesessionwasconductedwiththepensionfundservice providers(MEPF,MGFandNFMW). CAR ALLOWANCE ADMINISTRATION:

• Aserviceproviderwasappointedtoaddressthecarallowancedisparitiesthatwere there. • Thecarallowancepolicywasreviewed. • Therewereconsultationswiththeunionsonthewayforwardtoaddressthecar allowancedisparities OVERTIME ADMINISTRATION:

• Theovertimeclaimshavebeencappedat30%ofbasicsalaryforallemployeesin linewiththepolicy.

INDUSTRIAL ACTION DEDUCTIONS:

• ThedeductionswereimplementedfortheJuly2009,March2010andApril2010 industrialactions.

26 LABOURRELATIONS

Achievements

• Only two OHS Committee meetings were held during the period of reporting. Howeverinspectionsanddaytodayincidentreportingwereundertakenonanon goingbasis.

Manage the functionality of Local Labour Forum (LLF) EightLLFmeetingswereheldduringtheperiodandminuteswereavailable.Variousissues ofmutualinterestswerediscussedtofostersoundlabourrelations.

27 CHAPTER 4: FINANCIAL YEAR 2009/2010 AND RELATED FINANCIAL INFORMATION AnnualFinancial Statements for Capricorn District Municipality fortheyear ended30June: 2010 Province: Limpopo AFSrounding: R (i.e. only cents)

Contact Information: Name of Municipal Manager: MMMolala

Name of Chief Financial Officer: T.Phogole Contacttelephone number: 152,941,000

Contactemailaddress: [email protected] Name of contact at provincial treasury: BEMabunda Contacttelephone number: 0152918536

Contactemailaddress: [email protected] Name of relevant Auditor: Mr.DanielTjale Contacttelephone number: 152,994,401

Contactemailaddress: [email protected]

Name of contact at National Treasury: ObreyNekhavhambe Contacttelephone number: 0123155867 Contactemailaddress: [email protected]

28 Capricorn District Municipality ANNUAL FINANCIAL STATEMENTS fortheyearended30June2010 General information Members of the Council MmakgaboLawrenceMapoulo(Appointed06August2010) Mayor NakediMariaLekganyane(Appointed22May2010) Speaker MalebanaChueneWilliam(Appointed21December2000) Chief Whip MatsaungMoroamokopaneJack(Appointed21December 2000) Members of the Mayoral Committee MokhondoDorcusMaishibe(Appointed21December2000) ManamelaSepekeMartin(Appointed21December2000) ChegoLinkiSuzan(Appointed22March2006) MolemaMahlodiRegina(Appointed22March2006) KgareMakwenaBetty(Appointed22March2006) KeetseNokoNelson(Appointed22March2006) ThokaPhillip(Appointed22March2006) ChoshiIsaacKatte(Appointed22March2006) TjumanaMintjie(AppointedMay2010)replacedVDankuru Councillors MokabaMapitsiPrescilla(Appointed22March2006) MashegoSolly(Appointed22March2006) VanSchalkwykJacobus(Appointed22March2006) DoloMmanapeJoyce(Apointed22March2006) MamareganeMmamora(Appointed22March2006) LetwabaFransJim(Appointed22March2006) SeemolaMamolokoC(Appointed22March2006) NtlatlaMahlodiWilliam(Appointed22March2006) ManyatsaSelaeloSarah(DeceasedJune2010) MasemolaMokgaetjiGlenda(Appointed22March2006) MampaSekubeGeoffrey(Appointed22March2006) KgomoeswanaPrince(Appointed22March2006) MatomeNkweteKaiser(Appointed22March2006) MabitselaMmatlouSalmina(Appointed22March2006) RamashalaSamuel(Appointed22March2006) ManamelaTshwanaSuzan(Appointed22March2006) MathibaMohlekesetjiMaria(Appointed22March2006) RamonethaMashapaHenry(Appointed22March2006) RamatsomaMothokaBetty(Appointed22March2006) MachakaMatsobanePhanuel(Appointed22March2006) SenyoloResimateD(Appointed22March2006) KirkpatrickA(Appointedin2008)replacedHase

29 TsoaiMalebana(Appointed22March2006) SeakamelaNakediWinnie(Appointed22March2006) RamolesaneKonki(Appointed22March2006) SedibaneModiba(Appointed22March2006) MankgeJames(Appointed22March2006) Acting Municipal Manager MMMolala Chief Financial Officer T.M.Phogole Grading of Local Authority 4 Auditors AuditorGeneral Bankers FirstNationalBank

Capricorn District Municipality ANNUAL FINANCIAL STATEMENTS fortheyearended30June2010 General information (continued) Registered Office: CapricornDistrictMunicipality Physical address: 41BiccardStreet Polokwake 700

30 Postal address: P O Box 4100 Polokwane 700 Telephone number: 0152941000 Fax number: 0152957288 E-mail address: [email protected]

Capricorn District Municipality ANNUAL FINANCIAL STATEMENTS fortheyearended30June2010 Index Page StatementofFinancialPosition 5 StatementofFinancialPerformance 6 StatementofChangesinNetAssets 7 CashFlowStatement 8 AccountingPolicies 919 20 NotestotheAnnualFinancialStatements 52 AppendixA:ScheduleofExternalLoans 53 54 AppendixB:AnalysisofProperty,PlantandEquipment 57 AppendixC:SegmentalAnalysisofProperty,PlantandEquipment 58 AppendixD:SegmentalStatementofFinancialPerformance 59

AppendixE:DeviationsfromSupply ChainProcesses 60 AppendixF:Actualversusbudget (Revenueandexpenditure)

31 Capricorn District Municipality

STATEMENT OF FINANCIAL POSITION

asat30June2010

Note 2010 2009

Restated

R R

ASSETS

Current assets

1 Cashandcashequivalents 20,831,365 52,364,587

2 Tradeandotherreceivablesfromexchangetransactions 997,796 33,966

Inventories 3 716,280 215,804

Currentportionofreceivables 4 38,602 140,323

VATreceivable 8 65,915,089 73,896,165

Non -current assets

Noncurrentreceivables 4 58,336

Property,plantandequipment 5 1,128,106,349 966,515,040

Intangibleassets 6 9,079 193,401

Total assets 1,216,614,559 1,093,417,622

32 LIABILITIES

Current liabilities

Tradeandotherpayablesfromexchangetransactions 7 154,291,043 71,638,496

Currentprovisions 9 1,846,954 1,957,548

Bankoverdraft 1 86,944,613

Currentportionofunspentconditionalgrantsandreceipts 10 40,826,776 4,104,825

Currentportionoffinanceleaseliability 11 2,537,655

Non -current liabilities

Noncurrentunspentconditionalgrantsandreceipts 10

Noncurrentfinanceleaseliability 11

Noncurrentliabilities 33 11,453,678

Total liabilities 208,418,452 167,183,138

Net assets 1,008,196,108 926,234,485

NET ASSETS

Reserves

Accumulatedsurplus/(deficit) 1,008,196,108 926,234,485

Total net assets

1,008,196,108 926,234,485

33

Capricorn District Municipality STATEMENT OF FINANCIAL PERFORMANCE fortheyearending30June2010 Note 2010 2009 Restated R R Revenue Rentaloffacilitiesandequipment 12 Interestearnedexternalinvestments 13 4,462,934 22,091,502 Interestearnedoutstandingreceivables 14 Governmentgrantsandsubsidies 15 483,334,133 438,773,137 Publiccontributionsanddonations 16 155 999,128 Otherincome 16 952,412 2,815,074 Total revenue 488,749,635 464,678,840 Expenses Employeerelatedcosts 17 126,764,806 108,475,223 Remunerationofcouncillors 18 8,855,433 8,109,252 Baddebts 9,329,364 Collectioncosts 154,537 Depreciationandamortisationexpense 19 55,708,379 36,640,350 Repairsandmaintenance 780,531 2,800,720 Financecosts 20 507,915 968,070 Bulkpurchases 21 24,900,333 19,858,291 Contractedservices 22 3,304,140 2,822,883 Grantsandsubsidiespaid 23 3,951,457 33,650,000 Generalexpenses 24 181,835,236 148,073,858 Total expenses 406,608,231 370,882,548 Gain/(loss)onsaleofassets 25 (179,783) (9,613)

Surplus / (deficit) for the period 81,961,621.04 93,786,678

34 Capricorn District Municipality STATEMENT OF CHANGES IN NET ASSETS asat30June2010 Revaluation Total: Accumulated Total: Net Reserve Other reserves Reserves Surplus/(Deficit) Assets Note R R R R R Balance at 30 June 2008 - 15,566,976 15,566,976 487,888,795 503,455,771 Changesinaccountingpolicy - - Correctionofpriorperioderror 29 - 329,260,654 329,260,654

Restated balance - 15,566,976 15,566,976 817,149,448 832,716,424 Surplus/(deficit)onrevaluationofpropertyofproperty,plantandequipment - - Other items - - Other items - - Netgainsandlossesnotrecognisedinthestatementoffinancial performance - - Transfersto/fromaccumulatedsurplus/(deficit) - (15,566,976) (15,566,976) 15,566,976 -

Surplus/(deficit)fortheperiod - 93,786,678 93,786,678

Balance at 30 June 2009 - - - 926,503,103 926,503,103 Changesinaccountingpolicy - -

Correctionofpriorperioderror 29 - (268,618) (268,618)

Restated balance - - - 926,234,484 926,234,484 Surplus/(deficit)onrevaluationofpropertyofproperty,plantandequipment - - Other items - - Other items - - Netgainsandlossesnotrecognisedinthestatementoffinancial performance - -

35 Transfersto/fromaccumulatedsurplus/(deficit) - - -

Surplus/(deficit)fortheperiod - 81,961,622 81,961,622

Balance at 30 June 2010 - - - 1,008,196,107 1,008,196,107

36

Capricorn District Municipality CASH FLOW STATEMENT asat30June2010

Note 2,010 2009 R R CASH FLOWS FROM OPERATING ACTIVITIES Receipts 524,967,479 439,749,553 Taxation Salesofgoodsand services Grants 520,056,084 417,658,051 Interestreceived 4,462,934 22,091,502 Otherreceipts 448,461 Payments 249,423,619 296,310,253 Employeecosts 135,730,833 116,584,474 Suppliers 113,184,871 178,757,709 Financecosts 507,915 968,070 Otherpayments

Net cash flows from operating activities 27 275,543,859 143,439,300 CASH FLOWS FROM INVESTING ACTIVITIES Purchaseoffixedassets (217,754,872) (384,520,588) Proceedsfromsaleoffixedassets Proceedsfromsaleofinvestments Decrease/(Increase)inLoansandreceivables 160,058 2,872,301 Purchaseofintangibleassets (4,581,727) - Net cash flows from investing activities 217,594,814 (386,230,014) CASH FLOWS FROM FINANCING ACTIVITIES Proceedsfromborrowings Repaymentofborrowings

37 Proceedsfromfinanceleaseliability (2,537,654) 2,537,655 Repaymentoffinanceleaseliability - Net cash flows from financing activities 2,537,654 2,537,655 Net increase / (decrease) in net cash and cash equivalents 55,411,391 (240,253,059) Net cash and cash equivalents at beginning of period 34,580,026 205,673,033 Net cash and cash equivalents at end of period 28 20,831,365.32 (34,580,026)

Capricorn District Municipality SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fortheyearending30June2010 1 BASIS OF ACCOUNTING 1.1 BASIS OF PRESENTATION The annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historicalcostconventionunlessspecifiedotherwise. These annual financial statements have been prepared in accordance with Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 122(3) of the Municipal Finance ManagementAct,(ActNo56of2003). ThemunicipalityhastakenadvantageofDirective4thatcoversthe municiaplityonmeasurementforthecurrentreportingperiod2009/10 financialyear. Theprincipalaccountingpoliciesadoptedinthepreparationof theseannualfinancialstatementsaresetoutbelow. Assets, liabilities, revenues and expenses have not been offset except when offsetting is required or permitted by a StandardofGRAP. The accounting policies applied are consistent with those used to present the previous year's financial statements, unless explicitly stated. The details of any changes in accountingpoliciesareexplainedintherelevantpolicy. Theprincipalaccountingpoliciesadoptedinthepreparationof theseannualfinancialstatementsaresetbelow.

38 1.2 PRESENTATION CURRENCY These annual financial statements are presented in South African Rand, which is the functional currency of the municipality. 1.3 GOING CONCERN ASSUMPTION Theseannualfinancialstatementshavebeenpreparedonthe assumptionthatthemunicipalitywillcontinuetooperateasa goingconcernforatleastthenext12months. 1.4 COMPARATIVE INFORMATION Budgetinformationhasbeenprovidedinanannexuretothese financial statements and forms part of the audited annual financialstatements. Whenthepresentationorclassificationofitemsintheannual financial statements is amended, prior period comparative amountsarerestatedandwherepossible.Whereaccounting errorshavebeenidentifiedinthecurrentyear,thecorrection ismaderetrospectivelyasfarasispracticable,andtheprior yearcomparativesarerestatedaccordingly.Wheretherehas been a change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable, and t and neccessary, is combined and the prior year comparativesarerestatedaccordingly. STANDARDS, AMENDMENTS TO STANDARDS AND 1.5 INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE ThefollowingGRAPstandardshavebeenissuedbutarenot yeteffectiveandhavenotbeenearlyadoptedbythe municipality,thefollowingstandards(GRAP21,25,26&104) havebeenusedinformulatingaccountingpolicies: GRAP18SegmentReportingissuedMarch2005 GRAP21ImpairmentofNonCashGeneratingAssets GRAP23RevenuefromNonExchangeTransactions(Taxes andTransfers)issuedFebruary2008 GRAP24PresentationofBudgetInformationinFinancial StatementsissuedNovember2007 GRAP25EmployeeBenefits GRAP26ImpairmentofCashGeneratingAssets GRAP103HeritageAssetsissuedJuly2008 GRAP104FinancialInstruments Natureofimpendingchangesinaccountingpolicy: GRAP 21 requires assessment and accounting for impaired cashgeneratingassets GRAP26requiresassessmentandaccountingforimpairment onnocashgeneratingassets GRAP24requiresanalysesofbudgetcostcentresandvotes todetermineover/underexpenditureofbudgets GRAP 104 requires the accounting and disclosure of assessmentofpayablesandreceivables

39 Impact on the municipality's financial statements once implemented: Applicationoftheabovestatementshasnotbeendetermined bytheMinisterofFinance The impact on Impairment on both GRAP 21&26 is not yet reasonably known as valuation has not been done as per directive4onmeasurement GRAP 24's impact in the financial statements will provide userswithananalysesofthespendingonacostagainstthe budget. Though the standard is not effective, budget versus actual comparrissons has been reported in the annual financialstatements. 2 PROPERTY, PLANT AND EQUIPMENT 2.1 INITIAL RECOGNITION Anitemofproperty,plantandequipmentwhichqualifiesfor recognitionasanassetshallinitiallybemeasuredatcost. Wherevaluesarenotavailable,itshallberecognisedat nominalvalue. Thecostofanitemofproperty,plantandequipment comprisesofitspurchaseprice,includingimportdutiesand nonrefundablepurchasetaxesandanydirectlyattributable costsofbringingtheassettoworkingconditionforitsintended use. Whereanitemofproperty,plantandequipmentwas donated,itisinitiallyrecognisedatitsfairvalueasatthedate ofacquisition. Thecostofanitemofproperty,plantandequipmentacquired inexchangeforanonmonetaryassetormonetaryassets,or acombinationofmonetaryandnonmonetaryassetsis measuredatitsfairvalue.Iftheacquireditemcouldnotbe measuredatitsfairvalue,itscostismeasuredatthecarrying amountoftheassetgivenup. Subsequentexpenditureiscapitalisedwhentherecognition andmeasurementcriteriaofanassetaremet.Ifexpenditure onlyrestorestheoriginallybestestimateoftheexpected usefullifeoftheasset,thenitisregardedasrepairsand maintenanceandisexpensed. Incompleteconstructionworkisstatedathistoricalcost. Depreciationonlycommenceswhentheassetsis commissionedintouse. Propertiesinthecourseofconstructionforproduction,rental oradministrativepurposes,orforpurposesnotyet determined,arecarriedatcost,lessanyrecognised impairmentloss.Costincludesprofessionalfeesand,for qualifyingassets,borrowingcostscapitalisedinaccordance withtheMunicipality'saccountingpolicy.Depreciationof theseassets,onthesamebasisasotherpropertyassets, commenceswhentheassetsarereadyfortheirintendeduse.

40 SUBEQUENT MEASUREMENT - 2.2 COST MODEL Subsequenttoinitialrecognition,itemsofproperty,plantand equipment are measured at cost less accumulated depreciationandimpairmentlosses.Landisnotdepreciated asitisdeemedtohaveanindefiniteusefullife. Landisnotdepreciatedasitisregardedashavinganinfinite life. Thegainorlossarisingonthedisposalorretirementofan itemofproperty,plantandequipmentisdeterminedasthe differencebetweenthesalesproceedsandthecarryingvalue andisrecognisedintheStatementofFinancialPerformance. Theresidualvalueofanassetisdeterminedastheestimate amountthatcouldcurrentlybeobtainedfromthedisposalof theasset.Theresidualvaluesofassetsarereviewedateach financialyearend. Theresidualvalueofanassetisdeterminedastheestimate amountthatcouldcurrentlybeobtainedfromthedisposalof theasset.Theresidualvaluesofassetsarereviewedateach financialyearend. Where the municipality replaces parts of an asset, it derecognises the part of the asset being replaced and capitalises the new component. Subsequent expenditure incurred on an asset is capitalised when it increases the capacity or future economic benefits associated with the asset. 2.3 DEPRECIATION AND IMPAIRMENT Depreciationiscalculatedontheasset'sdepreciableamount, usingthestraightlinemethodovertheusefullivesofthe asset.Thedepreciableamountisdeterminedafterdeducting theresidualvalueoftheassetfromitscost.Thedepreciation chargeisrecognisedasanexpenseunlessitisincludedin thecarryingamountofanotherassetunderconstruction. Assetswillbedepreciatedaccordingtotheirannual depreciationratesbasedonthefollowingestimatedasset lives: Infrastructure Years Other RoadsandPaving 2550 50 10 Watermainsandpurifications 120 Specialistvehicles 20 Sewerage 1560 Othervehicles 57 3 Waterresevoir 3050 Officeequipment 10 7 Furnitureandfittings 10 Landfillsites Emergency 5 Community equipment 15 Buildings 50 Computerequipment 35 Security 5

41 ThemunicipalityhasappliedASBdirective4whichexempts themunicipalitytocomplywiththesubsquestmeasurement thatisassessementofresidualvalues,usefullifesand impairements. 2.4 DERECOGNITION Items of Property, plant and equipment are derecognised when the asset is disposed of or when there are no further economicbenefitsorservicepotentialexpectedfromtheuse of the asset. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determinedasthedifferencebetweenthesalesproceedsand the carrying value and is recognised in the Statement of FinancialPerformance. 3 INTANGIBLE ASSETS 3.1 INITIAL RECOGNITION An intangible asset is an identifiable nonmonetary asset without physical substance. Examples include computer software, licences, and development costs. The municipality recognises an intangible asset in its Statement of Financial Position only when it is probable that the expected future economicbenefitsorservicepotentialthatareattributableto theassetwillflowtothemunicipalityandthecostorfairvalue oftheassetcanbemeasuredreliably. Internally generated intangible assets are subject to strict recognition criteria before they are capitlised. Research expenditure is never capitalised, while development expenditure is only capitalised to the extent that: •themunicipalityintendstocompletetheintangibleassetfor use or sale; • it is technically feasible to complete the intangible asset; • the municipality has the resources to complete the project; and • it is probable that the municipality will receive future economicbenefitsorservicepotential. Intangibleassetsareinitiallyrecognisedatcost. Whereanintangibleassetisacquiredbythemunicipalityfor noornominalconsideration(i.e.anonexchangetransaction), thecostisdeemedtobeequaltothefairvalueofthatasset onthedateacquired. Whereanintangibleassetisacquiredinexchangeforanon monetary asset or monetary assets, or a combination of monetary and nonmonetary assets, the asset acquired is initiallymeasuredatfairvalue(thecost).Iftheacquireditem's fair value was not determinable, it's deemed cost is the carryingamountoftheasset(s)givenup. SUBEQUENT MEASUREMENT - 3.2 COST MODEL

42 Intangible assets are subsequently carried at cost less accumulated amoritisation and impairments. The cost of an intangible asset is amortised over the useful life where that usefullifeisfinite.Wheretheusefullifeisindefinite,theasset is not amortised but will be subject to an annual impairment test. 3.3 AMORTISATION AND IMPAIRMENT Amortisationischargedsoastowriteoffthecostorvaluation ofintangibleassetsovertheirestimatedusefullivesusingthe straightlinemethod.Theannualamortisationratesarebased onthefollowingestimatedaverageassetlives: Computersoftware 3 The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at each reportingdateandanychangesarerecognisedasachange in acounting estimate in the Statement of Financial Performance. Themunicipalitytestsintangibleassetswithfiniteusefullives forimpairmentwherethereisanindicationthatanassetmay beimpaired.Anassessmentofwhetherthereisanindication ofpossibleimpairmentisdoneateachreportingdate.Where the carrying amount of an item of an intangible asset is greater than the estimated recoverable amount (or recoverableserviceamount),itiswrittendownimmediatelyto its recoverable amount (or recoverable service amount) and an impairment loss is charged to the Statement of Financial Performance. 3.4 DERECOGNITION Intangible assets are derecognised when the asset is disposedoforwhentherearenofurthereconomicbenefitsor servicepotentialexpectedfromtheuseoftheasset.Thegain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between the sales proceeds and the carrying value and is recognised in the StatementofFinancialPerformance. INVEN TORI 4 ES 4.1 INITIAL RECOGNITION Inventories comprise current assets held for sale, consumption or distribution during the ordinary course of business. Inventories are initially recognised at cost. Cost generally refers to the purchase price, plus taxes, transport costs and any other costs in bringing the inventories to their current location and condition. Where inventory is manufactured,constructedorproduced,thecostincludesthe cost of labour, materials and overheads used during the manufacturingprocess. Where inventory is acquired by the municipality for no or nominal consideration (i.e. a nonexchange transaction), the costisdeemedtobeequaltothefairvalueoftheitemonthe dateacquired.

43 4.2 SUBSEQUENT MEASUREMENT CONSUMABLE STORES Inventories,consistingofconsumablestoresarevaluedatthe lower of cost and net realisable value unless they are to be distributed at no or nominal charge, in which case they are measuredatthelowerofcostandcurrentreplacementcost.In generalthebasisofdeterminingcostistheweightedaverage method. Redundantandslowmovinginventoriesareidentifiedand writtendowninthesameway.Differencesarisingonthe valuationofinventoryarerecognisedintheStatementof FinancialPerformanceintheyearinwhichtheyarose.The amountofanyreversalofanywritedownofinventories arisingfromanincreaseinnetrealisablevalueorcurrent replacementcostisrecognisedasareductionintheamount ofinventoriesrecognisedasanexpenseintheperiodinwhich thereversaloccurs. WATER INVENTORY The carrying amount of inventories is recognised as an expense in the period that the inventory was distributed, written off or consumed, unless that cost qualifies for capitalisationtothecostofanotherasset. ThemunicipalityhasappiledASBdirectiveonsubsequent measurementofinventory FINANCIAL INSTRUMEN 5 TS Therearefourcategoriesoffinancialinstruments:fairvaluethrough profitorloss(whichincludestrading),loansandreceivables,heldto maturityandavailableforsale.Allfinancialassetsthatarewithinthe scopeofIAS39areclassifiedintooneofthefourcategories.

Financialinstrumentsincludecashandbankbalance,investments, tradereceivablesandborrowings.Themunicipalityclassifiesits financialassetsasloansandreceivables.

Loans and Receivables Loansandreceivablesarenonderivativefinancialassetswithfixedor determinablepayments.Theyareincludedincurrentassets,exceptfor maturitiesinexcessof12months.Theseareclassifiedasnoncurrent assets. Loansandreceivablesareclassifiedas“tradeandotherreceivables”in theStatementofFinancialPosition. Loansandreceivablesarerecognisedinitiallyatcostwhichrepresents fairvalue.Afterinitialrecognitionfinancialassetsaremeasuredat amortisedcostusingtheeffectiveinterestrate. Accounts Receivables

44 Tradeandotherreceivablesarerecognisedinitiallyatcostwhich representsfairvalueandsubsequentlymeasuredatamortisedcost usingtheeffectiveinterestmethod,lessprovisionforimpairment.

Aprovisionforimpairmentisestablishedwhenthereisobjective evidencethatthemunicipalitywillnotbeabletocollectallamountsdue accordingtotheoriginaltermsofreceivables.

Whenanunderrecoveryoccursduringtheyearanadditional contributionforimpairmentismadefromtheaccumulatedsurplusat yearend. Baddebtsarewrittenoffduringtheyearinwhichtheyareidentifiedas irrecoverable. Financial liabilities Financialliabilitiesarerecognisedinitiallyatcostwhichrepresentsfair value.Afterinitialrecognitionfinancialliabilitiesaremeasuredat amortisedcostusingtheeffectiveinterestrate.

Gains and losses Gainsandlossesarisingfromchangesinfinancialassetsorfinancial liabilitiesatamortisedcostarerecognisedinprofitandlosswhenthe financialassetorliabilityisderecognisedorimpairedthroughthe amortisationprocess. Investments held -to -maturity Subsequenttoinitialrecognition,heldtomaturityassetsaremeasured atamortisedcostcalculatedusingtheeffectiveinterestmethod. Subsequenttoinitialrecognition,heldtomaturityassetsaremeasured atamortisedcostcalculatedusingtheeffectiveinterestmethod.

Investmentswhichincludelistedgovernmentbonds,unlistedmunicipal bonds,fixeddepositsandshorttermdepositsinvestedinregistered banksarestatedatcost. Whereinvestmentshavebeenimpaired,thecarryingvalueisadjusted bytheimpairmentlossandthisisrecognisedasanexpenseinthe periodthattheimpairmentisidentified.

SurplusfundsareinvestedintermsofCouncil’sInvestmentPolicy. Investmentsareonlymadewithfinancialinstitutionsregisteredinterms oftheDepositTakingInstitutionsActof1990withanA1orsimilar ratinginstitutionforsafeinvestmentpurposes. Theinvestmentperiodshouldbesuchthatitwillnotbenecessaryto borrowfundsagainsttheinvestmentsatapenaltyinterestratetomeet commitments. 6 CASH AND CASH EQUIVALENTS

45 Cashincludescashonhand(includingpettycash)andcash with banks (including call deposits). Cash equivalents are shortterm highly liquid investments, readily convertible into knownamountsofcash,thatareheldwithregisteredbanking institutions with maturities of three months or less and are subject to an insignificant risk of change in value. For the purposes of the cash flow statement, cash and cash equivalentscomprisecashonhand,depositsheldoncallwith banks, net of bank overdrafts. The municipality categorises cash and cash equivalents as financial assets: loans and receivables. Bank overdrafts are recorded based on the facility utilised. Financechargesonbankoverdraftareexpensedasincurred. Amountsowinginrespectofbankoverdraftsarecategorised as financial liabilities: other financial liabilties carried at amortisedcost. 7 UNAUTHORISED EXPENDITURE Unauthorised expenditure is expenditure that has not been budgeted,expenditurethatisnotintermsoftheconditionsof an allocation received from another sphere of government, municipalityororganofstateandexpenditureintheformofa grant that is not permitted in terms of the Municipal Finance Management Act (Act No.56 of 2003). Unauthorised expenditureisaccountedforasanexpenseintheStatement of Financial Performance and where recovered, it is subsequently accounted for as revenue in the Statement of FinancialPerformance.

8 IRREGULAR EXPENDITURE Irregularexpenditureisexpenditurethatiscontrarytothe MunicipalFinanceManagementAct(ActNo.56of2003),the MunicipalSystemsAct(ActNo.32of2000),thePublicOffice BearersAct(ActNo.20of1998)orisincontraventionofthe Municipality’ssupplychainmanagementpolicy.Irregular expenditureexcludesunauthorisedexpenditure.Irregular expenditureisaccountedforasexpenditureintheStatement ofFinancialPerformanceandwhererecovered,itis subsequentlyaccountedforasrevenueintheStatementof FinancialPerformance. FRUITLESS AND WASTEFUL 9 EXPENDITURE

Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had reasonable care been exercised. Fruitless and wasteful expenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance. 10 PROVISION

46 S Provisions are recognised when the municipality has a presentorconstructiveobligationasaresultofpastevents,it isprobablethatanoutflowofresourcesembodyingeconomic benefitswillberequiredtosettletheobligationandareliable estimate of the provision can be made. Provisions are reviewedatreportingdateandadjustedtoreflectthecurrent best estimate. Where the effect is material, noncurrent provisions are discounted to their present value using a pre taxdiscountratethatreflectsthemarket'scurrentassessment of the time value ofmoney, adjusted for risksspecific to the liability (for example in the case of obligations for the rehabilitationofland). The municipality does not recognise a contingent liability or contingentasset.Acontingentliabilityisdisclosedunlessthe possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is disclosed where an inflowofeconomicbenefitsisprobable. Futureeventsthatmayaffecttheamountrequiredtosettlean obligation are reflected in the amount of a provision where there is sufficient objective evidence that they will occur. Gainsfromtheexpecteddisposalofassetsarenottakeninto account in measuring a provision. Provisions are not recognisedforfutureoperatinglosses.Thepresentobligation underanonerouscontractisrecognisedandmeasuredasa provision. Aprovisionforrestructuringcostsisrecognisedonlywhenthe followingcriteriaoverandabovetherecognitioncriteriaofa provisionhavebeenmet: (a)Themunicipalityhasadetailedformalplanforthe restructuringidentifyingatleast:the businessorpartofabusinessconcerned; theprincipallocationsaffected; thelocation,function,andapproximatenumberof employeeswhowillbecompensatedforterminatingtheir services; theexpendituresthatwillbeun dertaken;and whentheplanwillbeimplemented;and (b)Themunicipalityhasraisedavalidexpectationinthose affectedthatitwillcarryouttherestructuringbystartingto implementthatplanorannouncingitsmainfeaturestothose affectedbyit. 11 LEASES MUNICIPALITY AS LESSEE 11.1 Leasesthattransfersubstantiallyalltherisksandrewardsofownership areclassifiedasfinanceleases.Allotherleasesareclassifiedas operatingleases. Operating leases are those leases that do not fall within the scope of the above definition. Operating lease rentals are accruedonastraightlinebasisoverthetermoftherelevant lease.

47 The Muni cipality as Lessee Assetsleasedintermsoffinanceleaseagreementsarecapitaliedat amountsequalattheinceptionoftheleasetothefairvalueofthe leasedproperty,orlower,atthepresentvalueoftheminimumlease payments.Capitalisedleasedassetsaredepreciatedinaccordance withtheaccountingpolicyapplicabletoproperty,plantandequipment, refertoproperty,plantandequipmentpolicy1.6.Thecorresponding rentalobligations,netoffinancecharges,areincludedinlongterm borrowings.Leasefinancechargesareamortisedtothestatementof financialperformance(unlesstheyaredirectlyattributabletoqualifying assets)overthedurationoftheleasessoastoachieveaconstantrate ofinterestontherremainingbalanceoftheliability. Obligationsincurredunderoperatingleasesarechargedtothe statementoffinancialperformanceinequalinstalmentsovertheperiod ofthelease,exceptwhenanalternativemethodismorerepresentative ofthetimepatternfromwhichbenefitsarederived.

Leasesinvolvingproperty,plantandequipmentwherebythelessor providesfinancetothelesseewiththeassetassecurity,andwherethe lesseeassumedthesignificantrisksandrewardsofownershipofthose leasedassets,areclassifiedasfinanceleases. Whenanoperatingleaseisterminatedbeforetheleasetermhas expired,anypaymenttothelessorthatisrequired,bywayofapenalty, isrecognisedasanexpenseintheperiodinwhichterminationtakes place. Leasesofproperty,plantandequipmenttothelessee,underwhichthe lessoreffectivelyretainsthesignificantrisksandrewardsofownership ofthoseleasedassets,areclassifiedasoperatingleases.

Operatingleasepaymentsareexpensedintheincomestatementona straightlinebasisovertheleaseterm.

12 REVENUE Revenueshallbemeasuredatthefairvalueofthe considerationreceivedorreceivable.Nosettlementdiscount isapplicable.

Rendering of service Whentheoutcomeofatransactioncanbeestimatedreliably relatingtotherenderingofaservice,revenueassociatedwith thetransactionshallberecognisedbyreferencetothestage ofcompletionofthetransactionatthereportingdate.

The outcome of the transaction can be measured reliably when all of the following conditions are satisfied:

48 —Theamountofrevenuecanbemeasuredreliably; —Itisprobablethattheeconomicbenefitsorservicepotential associatedwiththetransactionwillflowtotheentitiy; —Thestageofcompletionofthetransactionatthereporting datecanbemeasuredreliably;and —Thecostincurredforthetransactionandthecostto completethetransactioncanbemeasured This principle also applies to tariffs or charges. Whentheoutcomeofthetransactioninvolvingtherendering ofservicescannotbeestimatedreliably,revenueshallbe recognisedonlytotheextentoftheexpensesthatare recoverable. Sale of goods Revenuefromthesaleofgoodsshallberecognisedwhenall thefollowingconditionshavebeensatisfied: Themunicipalityhastransferredtothepurchaserthe significantrisksandrewardsofownershipofgoods; —Themunicipalityretainsneithercontinuingmanagerial involvementtothedegreeassociatedwithownershipnor effectivecontroloverthegoodssold; —Theamountofrevenuecanbemeasuredreliably; —Itisprobablethattheeconomicbenefitsorservicepotential associatedwiththetransactionwillflowtothemunicipality; and —Thecostincurredortobeincurredinrespectofthe transactioncanbemeasuredreliably. Government Grants GovernmentGrantscanbeintheformofgrantstoacquireor constructfixedassets(capitalgrants),grantsforthe furtheranceofnationalandprovincialgovernmentpolicy objectivesandgeneralgrantstosubsidisethecostincurredby municipalitiesrenderingservices. Capitalgrantsandgeneralgrantsforthefurtheranceof governmentpolicyobjectivesareusuallyrestrictedrevenuein thatstipulationsareimposedintheiruse.

Government grants are recognised as revenue when: —Itisprobablethattheeconomicbenefitsorservicepotential associatedwiththetransactionwillflowtothe municipality; —Theamountoftherevenuecanbemeasuredreliably;and —Totheextentthattherehasbeencompliancewithany restrictionsassociatedwiththegrant.

49

Oth er grants and donations received Othergrantsanddonationsshallberecognisedasrevenuewhen: —Itisprobablethattheeconomicbenefitsorservicepotential associatedwiththetransactionwillflowtothemunicipality; —Theamountoftherevenuecanbemeasuredreliably;and —Totheextentthattherehasbeencompliancewithanyrestrictions associatedwiththegrant. Donationsarerecognisedonacashreceiptbasisorwherethe donationisintheformofproperty,plantandequipmentarebrought intouse. Revenuefrompubliccontributionsisrecognisedwhenallconditions havebeenmetorwherethecontributiontoproperty,plantand equipmentisrecognisedwhensuchitemsofproperty,plantand equipmentarebroughtintouse.

Wherepubliccontributionshavebeenreceivedbuttheconditionswere notmet,aliabilityisrecognised.

Interest Revenuearisingfromtheuseofassetsbyothersofthemunicipal assetsyieldinginterestshallberecognisedwhen:

—Itisprobablethattheeconomicbenefitsorservicepotential associatedwiththetransactionwillflowtothemunicipality; —Theamountoftherevenuecanbemeasuredreliably;

Interestshallberecognisedonatimeproportionatebasisthattakes intoaccounttheeffectiveyieldontheasset; Revenuefromtherecoveryofunauthorised,irregular,fruitlessand wastefulexpenditureisbasedonlegislatedprocedures,includingthose setoutintheMunicipalFinanceManagementAct(ActNo.56of2003) andisrecognisedwhentherecoverythereoffromtheresponsible councillorsorofficialsisvirtuallycertain. Revenuefromtherecoveryofunauthorisedirregular,fruitlessand wastefulexpenditureisbasedonlegislatedprocedures. 13 RETIREMENT BENEFITS The municipality provides retirement benefits for its employeesandcouncillors 13.1 Short -term employee benefits Thecostofshorttermemployeebenefits,whichinclude salariesandwages,shorttermcompensatedabsencesand profitsharingandbonusplans,areexpensedintheStatement ofFinancialPerformanceinthefinancialyearduringwhichthe paymentismade.

50 Liabilitiesforshorttermemployeebenefitsthatareunpaidat yearendaremeasuredattheundiscountedamountthatthe municipalityexpectedtopayinexchangeforthatservicethat hadaccumulatedatthereportingdate. 13.2 Termination Benefits Terminationbenefitsarerecognisedwhenactionshavebeen takenthatindicatethatthemunicipalityisdemonstrably committedtoeitherterminatetheemploymentofanemployee orgroupofemployeesbeforethenormalretirementdate;or provideterminationbenefitsasaresultofanoffermadein ordertoencouragevoluntaryredundancy. 13.3 Retirement benefits Themunicipalityprovidesretirementbenefitsforits employeesandcouncillors. Contributionstodefinedcontributionretirementbenefitplans arerecognisedasanexpensewhenemployeesand councillorshaverenderedtheemploymentserviceorserved officeentitlingthemtothecontributions. Defined contribution plans Adefinedcontributionplanisapostemploymentbenefitplan underwhichthemunicipalitypaysfixedcontributionsintoa separateentityandwillhavenolegalorconstructive obligationtopayfurtheramounts.Obligationsfor contributionstodefinedcontributionpensionplansare recognisedasanemployeebenefitexpenseinthestatement offinancialperformancewhentheyaredue.Prepaid contributionsarerecognisedasanassettotheextentthata cashrefundorareductioninfuturepaymentsisavailable. Post employment medical care benefits Themunicipalityprovidespostemploymentmedicalcare benefitstoitsemployeesandtheirlegitimatespouses.The entitlementtopost–retirementmedicalbenefitsisbasedon employeesremaininginserviceuptoretirementageandthe completionofaminimumserviceperiod.Theexpectedcost, ofthesebenefitsisaccruedovertheperiodofemployment. 14 IMPAIRMENT OF ASSETS

Impairments of Non -financial assets NonFinancialassets,excludinginvestmentproperty, biologicalassetsandinventories,areassessedateach reportingdatetodeterminewhetherthereisanindicationthat thecarryingamountoftheassetmaybeimpaired.Ifsuchan

51 indicationexists,therecoverableamountoftheassetis determined.Irrespectiveofwhetheranindicationof impairmentexists,therecoverableamountofgoodwill, indefinitelifeintangibleassetsandintangibleassetsnot availableforusearedeterminedannually. Therecoverableamountofanassetisthehigherofitsfair valuelesscoststosaleanditsvalueinuse.Indetermining thevalueinuse,theestimatedfuturecashflowsoftheasset isdiscountedtotheirpresentvaluebasedonpretaxdiscount ratesthatreflectscurrentmarketassessmentsofthetime valueofmoneyandtherisksthatarespecifictotheasset.If thevalueinuseofanassetforwhichthereisanindicationof impairmentcannotbedetermined,therecoverableamountof thecashgeneratingunittowhichtheassetbelongsis determined.Anasset'scashgeneratingunitisthesmallest groupofidentifiableassetsthatincludestheassetandthat generatescashinflowsfromcontinuingusethatarelargely independentfromcashinflowsfromotherassets. Animpairmentlossisrecognisedinthestatementoffinancial performancewhenthecarryingamountofanindividualasset orofacashgeneratingunitexceedsitsrecoverableamount. Ifthelossrelatestothereversalofapreviousrevaluation surplus,itisrecognisedinequity.Impairmentlosses recognisedoncashgeneratingunitsareallocatedonapro ratabasis,totheassetsinthecashgeneratingunit. Impairment of Monetary assets

Aprovisionforimpairmentiscreatedwhenthereisobjective evidencethatthemunicipalitywillnotbeabletocollectall amountsdueaccordingtotheoriginaltermsofthe receivables.Thecarryingvalueisreducedthroughtheuseof aprovisionandisrecognisedasachargetothestatementof financialperformance.Whenareceivableisuncollectible,itis writtenoffagainsttheprovision.Anysubsequentrecoveries ofamountspreviouslywrittenoffarecrediteddirectlyinthe statementoffinancialperformance.

Anavailableforsalefinancialassetisimpairedwhenthereis asignificantorprolongeddeclineinthefairvalueoftheasset belowitscostpriceoramortisedcost.Atsuchapoint,an cumulativegainsorlossesthathavebeenaccumulatedin equityareremovedfromequityasareclassification adjustmentandarerecognisedinthestatementoffinancial performance.Anysubsequentimpairmentlossesare recogniseddirectlyinthestatementoffinancialperformance. WhereHeldtomaturityinvestmentshavebeenimpaired,the carryingvalueisadjustedbytheimpairmentlossandthisis recognisedasanexpenseintheperiodthattheimpairmentis identified.

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15 CASH AND CASH EQUIVALENTS Cashincludescashonhandandcashwithbanks. Forthepurposesofthecashflowstatement,cashandcash equivalentscomprisecashonhandandcashatbank.Short terminvestmentsareexcluded.Bankoverdraftsarerecorded onthefacilityutilised.Financechargesonbankoverdrafts areexpensedasincurred. 16 COMPARATIVE INFORMATION Budgetedamountshavebeenincludedintheannualfinancial statementsforthecurrentfinancialyearonly.Whenthe presentationorclassificationofitemsintheannualfinancial statementsisamended,priorperiodcomparativeamountsare reclassified.Thenatureandreasonforthereclassificationis disclosed.

EVENTS AFTER BALANCE SHEET DATE Recognisedamountsinthefinancialstatementsareadjusted toreflecteventsarisingafterthebalancesheetdatethat provideevidenceofconditionsthatexistedattheBalance Sheetdate.EventsaftertheBalanceSheetdatethatare indicativeofconditionsthataroseaftertheBalanceSheet datearedealtwithbywayofanotetotheFinancial Statements.

53 Capricorn District Municipality NOTES TO THE FINANANCIAL STATEMENTS for the year ended 30 June 2010

Note 2010 2009 R R 1 CASHANDCASHEQUIVALENTS

Cashandcashequivalentsconsistofthe following: Cashonhand Cashatbank 10,839,900 (86,944,613) Calldeposits 9,991,466 52,364,587 20,831,365 (34,580,026)

TheMunicipalityhasthefollowingbankaccounts:

Current Account (Primary Bank Account)

FirstNationalBankPolokwanebranch

Cashbookbalanceatbeginningofyear (86,944,613) 40,624,858

Cashbookbalanceatendofyear 10,839,900 (86,944,613)

Bankstatementbalanceatbeginningofyear 6,627,065 40,624,858

Bankstatementbalanceatendofyear

54 13,767,085 6,627,065

Investment (Other Account)

FirstnationalBankCallAccountNumber 2,088,944 1,980,426 StandardBankCallAccounts 1,935,201 1,837,714 NedbankDepositAccount 4,392,923 10,179,586 AbsaCallAccount 1,574,398 FirstnationalBankFixedDepositAccountNumber 38,366,862

Balanceatendofyear 9,991,466 52,364,587

TRADE AND OTHER RECEIVABLES FROM Gross Provision for 2 EXCHANGE TRANSACTIONS Balances Doubtful Debts Net Balance Trade receivables R R R asat30June2010 Other receivables 997,796 997,796 TotalTradeandOtherreceivablesfromexchange transactions 997,796 997,796

asat30June2009

Other receivables 33,966 33,966 TotalTradeandOtherreceivablesfromexchange transactions 33,966 33,966

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3 INVENTORIES

Closing balance of inventories: 716,280 215,804 Consumablestores 389,124 215,804 Water 327,156

4 NON-CURRENT RECEIVABLES

Carloans 38,602 198,660 Loanstootherentitiesandmunicipalities 2,768,987 38,602 2,967,646 Less:ProvisionforBadDebt (2,768,987) 38,602 198,660 Less:Currentportiontransferredtocurrent receivables (38,602) (140,323) Carloans (38,602) (140,323)

Restated balance - 58,336

56

CAR LOANS Motor Vehicle loans Senior staff were previously entitled to vehicle loanswhichattractinterestat12%perannum andisrepayableoveramaximumperiodof 5years.Theseloansarerepayableintheyear 2010.

57 Capricorn District Municipality NOTES TO THE FINANANCIAL STATEMENTS for the year ended 30 June 2010

5 PROPERTY, PLANT AND EQUIPMENT

5.1 Reconciliation of Carrying Value Land Buildings Infrastructure Community Heritage Other Assets Total R R R R R R R

as at 1 July 2009 21,938,701 19,944,348 902,924,627 - - 21,707,364 966,515,040 Cost/Revaluation 29,735,041 666,648,408 3,013,680 28,595,271 727,992,400 Correctionoferror(note29) 21,938,701 (2,897,238) 248,022,550 (2,068,569) 151,966 264,843,478 Changeinaccountingpolicy Accumulateddepreciationandimpairment losses (6,893,454) (11,746,332) (945,111) 6,735,941 (26,320,838) Acquisitions 49 204,336,276.87 327,732 13,090,968 217,755,026 CapitalunderConstruction 0.00 0 Depreciation (918,845) (45,479,453) (125,531) 9,000,219 55,524,049 - Carryingvalueofdisposals - - 67,776.88 (202,201) - (369,683) (639,662) Cost/Revaluation (67,777) (327,732) 541,000.00 (936,509) Accumulateddepreciationandimpairment losses 125,531 171,316.66 296,848

Impairmentloss/Reversalofimpairment loss Transfers

58 Othermovements*

as at 30 June 2010 21,938,701 19,025,552 1,061,713,674 - - 25,428,421.68 1,128,106,349 Cost/Revaluation 21,938,701 26,736,874 1,176,464,002 41,581,568.21 1,266,721,145 Accumulateddepreciationandimpairment losses (7,711,321) (114,750,328) 16,153,146.53 (138,614,796)

Capricorn District Municipality NOTES TO THE FINANANCIAL STATEMENTS for the year ended 30 June 2009

Land Buildings Infrastructure Community Heritage Other Assets Total 5.2 Reconciliation of Carrying Value R R R R R R R

as at 1 July 2008 21,938,701 19,944,338 540,344,009 (130,871) - 10,275,817 592,371,995 Cost/Revaluation 29,735,041 298,570,282 3,013,680 19,048,611 350,367,614 Correctionoferror(note29) 21,938,701 (2,897,238) 247,898,508 (2,270,770) 264,669,201 Changeinaccountingpolicy Accumulateddepreciationandimpairment losses (6,893,464) (6,124,781) (873,781) (8,772,794) (22,664,820)

Acquisitions 368,078,126 11,678,761 379,756,887 CapitalunderConstruction

59 (2,118,993) (2,118,993) Depreciation (940,261) (5,621,551) (71,330) (5,437,529) (12,070,671)

Carryingvalueofdisposals - - - - - (9,613) (9,613) Cost/Revaluation (13,109) (13,109) Accumulateddepreciationandimpairment losses 3,496 3,496

Impairmentloss/Reversalofimpairment loss Transfers *Othermovements

as at 30 June 2009 21,938,701 19,944,348 902,924,628 - - 21,707,364 966,515,041 Cost/Revaluation 21,938,701 26,736,825 972,195,503 29,031,600 1,049,902,628 Accumulateddepreciationandimpairment losses (6,792,476) (69,270,875) (7,324,236) (83,387,587)

60

Capricorn District Municipality NOTES TO THE FINANANCIAL STATEMENTS for the year ended 30 June 2010

Note 2010 2009 R R

Compensation received for losses on property, plant and equipment – included in operating 5.3 surplus

Asset 1 Asset 2 Asset 3

5.4 Details of assets transfered without costs

TheMunicipalityhasreceivedatransferofMotumogamereservefromthe DepartmentofEnvironmentAffairsandTourism. TheinitialrecognitionoftheassetswasatR1.Subsequentrevaluationoftheassets willbedoneduringthe2011financialyear. Thefollowingassetsclasseswereeffected Buildings 49 Asset 2 Asset 3 49

61 5.5 Details of property

Property X Termsandconditions Purchaseprice:date Additionssincepurchase Capitalisedexpenditure

Property Y Termsandconditions Purchaseprice:date Additionssincepurchase Capitalisedexpenditure

62

63 Capricorn District Municipality NOTES TO THE FINANANCIAL STATEMENTS for the year ended 30 June 2010

Note 2010 2009 R R 6 INTANGIBLE ASSETS

Computer 6.1 Reconciliation of carrying value Software Total R R

as at 1 July 2009 193,401 193,401 Cost 5,530,967 5,530,967 Correctionoferror(note29) (2,163,640) (2,163,640) Changeinaccountingpolicy Accumulatedamortisationandimpairmentlosses (3,173,926) (3,173,926) Acquisitions Amortisation (184,322) (184,322)

Carryingvalueofdisposals - - Cost Accumulatedamortisation Impairmentloss/Reversalofimpairmentloss Transfers Othermovements

as at 30 June 2010 9,079 9,079

64 Cost 5,530,967 5,530,967 Accumulatedamortisationandimpairmentlosses (5,521,888) (5,521,888)

Computer 6.1 Reconciliation of carrying value Software Total R R

as at 1 July 2008 126,322 126,322 Cost 949,140 949,140 Changeinaccountingpolicy Accumulatedamortisationandimpairmentlosses (822,818) (822,818) Acquisitions 4,581,727 4,581,727 Amortisation (2,351,008) (2,351,008)

Carryingvalueofdisposals - - Cost Accumulatedamortisation Impairmentloss/Reversalofimpairmentloss Transfers Othermovements

as at 30 June 2009 193,401 193,401 Cost

65 5,530,967 5,530,967 Correctionoferror(note29) (2,163,640) (2,163,640) Accumulatedamortisationandimpairmentlosses (3,173,926) (3,173,926)

Capricorn District Municipality NOTES TO THE FINANANCIAL STATEMENTS for the year ended 30 June 2010

Note 2010 2009 R R

TRADE AND OTHER PAYABLES FROM EXCHANGE 7 TRANSACTIONS IAS 39

Tradecreditors 103,754,327 31,369,766 Paymentsreceivedinadvance Retentions 38,923,833 32,972,757 Staffleaveaccrual 9,565,028 7,105,977 Accruedinterest Othercreditors 2,047,855 189,996

Restated Balance 154,291,043 71,638,496

8 VAT RECEIVABLE

66 VATreceivable 65,915,089 73,896,165

9 PROVISIONS GRAP 19

Performancebonus 1,846,954 1,957,548 Currentportionoflongserviceprovision Provisionforleave Otherprovisions

Total Provisions 1,846,954 1,957,548

Performancebonusesarepaidoneyearinarrearastheassessment ofeligibleemployees.

Themovementincurrentprovisionsarereconciledasfollows: Performance Bonus

as at 1 July 2009 1,846,954 Contributionstoprovision Expenditureincurred

as at 30 June 2010 1,846,954

as at 1 July 2008 Contributionstoprovision

67 1,957,548 Expenditureincurred

as at 30 June 2009 1,957,548

GRAP 23 read with GAMAP 9, via 10 UNSPENT CONDITIONAL GRANTS AND RECEIPTS GRAP 3

10.1 Unspent Conditional Grants fr om other spheres of Government MIGGrants 23,056,100 FMG 375,220 PublicWorks 3,918,950 DepartmentofWaterAffairsInfrastructureGrant 10,991,303 3,670,546

10.2 Other Unspent Conditional Grants and Receipts DistrictTransportGrant 59,059 DepartmentofHealth 2,860,423

Total Unspent Conditional Grants and Receipts 40,826,776 4,104,825

Non-current unspent conditional grants and receipts - -

Current portion of unspent conditional grants and receipts 40,826,776 4,104,825

11 FINANCE LEASE LIABILITY GRAP 13

68 Present value Minimum 2010 lease Future finance of minimum payment charges lease payments Amounts payable under finance leases R R R

Withinoneyear Withintwotofiveyears - Less:Amountdueforsettlementwithin12months(currentportion) -

Present value Minimum 2009 lease Future finance of minimum payment charges lease payments Amounts payable under finance leases R R R

Withinoneyear 3,045,570 507,915 2,537,655 Withintwotofiveyears 3,045,570 507,915 2,537,655 Less:Amountdueforsettlementwithin12months(currentportion) (2,537,655) -

69 12 RENTAL OF FACILITIES AND EQUIPMENT GRAP 13 GRAP 9

Total rentals - -

13 INTEREST EARNED - EXTERNAL INVESTMENTS GRAP 9 IFRS 7 (ED 52) Bank 4,462,934 22,091,502

Total interest 4,462,934 22,091,502

14 INTEREST EARNED - OUTSTANDING RECEIVABLES GRAP 9 IFRS 7 (ED 52)

Total interest - -

GRAP 23 read with GAMAP 9, via 15 GOVERNMENT GRANTS AND SUBSIDIES GRAP 3 MFMA S123 (1) (a) & (c-e) Equitableshare 258,676,930 212,584,415 MIGGrant 128,610,900 110,525,107 OtherGovernmentGrantsandSubsidies 96,046,303 115,663,615

70

Total Government Grant and Subsidies 483,334,133 438,773,137

15.1 Equitable Share IntermsoftheConstitution,thisgrantisanunconditionalgrat (258,676,930) (212,584,415)

15.2 MIG Grant

Balance unspent at beginning of year 0 15,560,107 Currentyearreceipts 151,667,000 94,965,000 Conditionsmettransferredtorevenue (128,610,900) (110,525,107)

Conditions still to be met - remain liabilities (see note 21 ) 23,056,100 0

The balance related to the MIG grant received for the 2010/11 financial year

15.3 Other Government Grants and Subsidies

Balance unspent at beginning of year 4,104,825 3,961,251 Currentyearreceipts 109,712,154 115,807,189 Conditionsmettransferredtorevenue (96,046,303) (115,663,615)

Conditions still to be met - remain liabilities (see note 21 ) 17,770,676 4,104,825

Provide explanations of conditions still to be met and other relevant information

16 OTHER INCOME, PUBLIC CONTRIBUTIONS AND DONATIONS

71 16.1 Other income GRAP 9 Otherincome 952,412 2,815,074 Recoveryofunauthorised,irregular,fruitlessandwasteful Notes15 GRAP 23 read with GAMAP 9, via

expenditure(Note50) 61'!A684 GRAP 3

Total Other Income 952,412 2,815,074

16.2 Public contributions and donations Donations 155 Total public contributions and donations 155 -

The donation relates to Assets Transfer from

17 EMPLOYEE RELATED COSTS IAS 19

EmployeerelatedcostsSalariesandWages 83,278,058 72,049,535 EmployeerelatedcostsContributionsforUIF,pensionsandmedical aids 20,322,535 16,699,880 Travel,motorcar,accommodation,subsistenceandotherallowances 13,744,570 10,331,475 Housingbenefitsandallowances 2,728,214 2,462,610 Overtimepayments 4,850,142 4,037,685 Performanceandotherbonuses 1,841,288 2,894,037 Longserviceawards Otheremployeerelatedcosts

Total Employee Related Costs 126,764,806 108,475,223

72 Therewerenoadvancestoemployees/Loanstoemployeesareset outinnote3. IAS 19 Remuneration of the Municipal Manager MFMA S124 (1) (c) AnnualRemuneration 1,008,643 904,612 Performanceandotherbonuses 40,708 Travel,motorcar,accommodation,subsistenceandotherallowances 120,000 130,117 ContributionstoUIF,MedicalandPensionFunds 109,387 96,735

Total 1,238,030 1,172,172 IAS 19 Remuneration of the Chief Finance Officer MFMA S124 (1) (c) AnnualRemuneration 850,000 784,800 Performanceandotherbonuses Travel,motorcar,accommodation,subsistenceandotherallowances 174,124 155,675 ContributionstoUIF,MedicalandPensionFunds 31,247 124,718

Total 1,055,371 1,065,193 IAS 19 Technical Community Remuneration of Individual Executive Directors Services Corporate Services Services MFMA S124 (1) (c) R R R

2010 AnnualRemuneration 871,817 826,438 740,000 Performanceandotherbonuses Travel,motorcar,accommodation,subsistenceandotherallowances 190,787 156,837 ContributionstoUIF,MedicalandPensionFunds 119,803

73 146,448 70,377

Total 1,209,052 1,053,652 859,803

Technical Community Services Corporate Services Services R R R 2009 AnnualRemuneration 774,948 741,200 748,285 Performanceandotherbonuses 62,767 22,236 Travel,motorcar,accommodation,subsistenceandotherallowances 214,303 169,632 140,993 ContributionstoUIF,MedicalandPensionFunds 127,395 59,141 198,069

Total 1,179,413 992,209 1,087,347

IAS 19 18 REMUNERATION OF COUNCILLORS MFMA S124 (1) (a)

ExecutiveMayor 576,275 538,575 Speaker 461,020 430,859 ExecutiveCommitteeMembers 3,436,036 3,211,248 Councillors 2,933,224 2,689,809 Councillors’pensionandmedicalaidcontributions 820,660 439,731 Councillors'allowances 628,218 799,030

Total Councillors’ Remuneration 8,855,433 8,109,252

74 In-kind Benefits MFMA S124 (1) (a)

TheExecutiveMayor,DeputyExecutiveMayor,Speake rand ExecutiveCommitteeMembersarefulltime.Eachisprovidedwith anofficeandsecretarialsupportatthecostoftheCouncil.

19 DEPRECIATION AND AMORTISATION EXPENSE GRAP 16, 17 and 102 and IAS 41

Property,plantandequipment 55,524,057 34,289,343 Intangibleassets 184,322 2,351,008

Total Depreciation and Amortisation 55,708,379 36,640,350

20 FINANCE COSTS GRAP 1

Borrowings/Financelease 507,915 968,070 GRAP 5

Total Finance Costs 507,915 968,070

21 BULK PURCHASES GRAP 1

Electricity Water 24,900,333 19,858,291

75

Total Bulk Purchases 24,900,333 19,858,291

22 CONTRACTED SERVICES Securitycosts 2,392,047 1,832,120 Cleaningservices 238,859 99,347 Computerservices 673,234 891,416

3,304,140 2,822,883

23 GRANTS AND SUBSIDIES PAID GRAP 1 MFMA S123 (1) (b) GrantsInAid(LocalMunicipalities) 3,951,457 33,650,000

3,951,457 33,650,000

24 GENERAL EXPENSES GRAP 1

Includedingeneralexpensesarethefollowing:

Advertising 1,068,562 2,373,056 Auditfees 1,679,511 735,900 Bankcharges 158,662 125,273 Bursaries 962,572 523,031 Conferencesanddelegations 1,273,469

76 1,887,097 Consultingfees 830,533 3,630,674 Consumables 582,823 49,993,281 Insurance 280,170 1,561,740 Legalexpenses 1,025,332 834,959 Licencefeesvehicles Membershipfees 533,492 1,351,046 WaterandSanitation 60,388,017 24,449,660 Postage 10,940 111,140 Printingandstationery 556,471 1,040,453 Professionalfees 12,991,244 9,037,302 Rentalofbuildings 1,433,663 1,009,135 Rentalofofficeequipment 520,405 1,604,812 Skillsdevelopmentlevies 1,021,465 1,458,306 Stocksandmaterial 88,013 100,439 Subscribtion&publication 478,785 433,440 Telephonecost 3,979,051 2,603,174 Training 318,657 2,235,377 Stakeholderparticipation 3,185,829 2,589,515 Travelandsubsistence 3,789,126 5,876,671

77 Uniforms&overalls 862,826 44,602 Other 83,201,990 33,077,405

181,835,236 148,073,858 25 GAIN / (LOSS) ON SALE OF ASSETS GRAP 16, 17 and 102 and IAS 41

Property,plantandequipment (179,783) (9,613)

Total Gain / (Loss) on Sale of Assets (179,783) (9,613)

26 PROFIT / (LOSS) ON FAIR VALUE ADJUSTMENT IFRS 7 (ED 52)

Investmentpropertycarriedatfairvalue Biologicalassetscarriedatfairvalue Otherfinancialassets Otherfinancialliabilities Total Profit / (Loss) on Fair Value Adjustment - -

27 CASH GENERATED BY OPERATIONS GRAP 2

Surplus/(deficit)fortheyear 81,961,621 93,786,678 Adjustmentfor: Depreciationandamortisation 55,708,379 36,640,350 (Gain)/lossonsaleofassets 179,783 9,613

78 Contributiontoprovisionsnoncurrent Contributiontoprovisionscurrent 1,957,548 Othernoncashitem

Operating surplus before working capital changes: 137,849,783 132,394,190

(Increase)/decreaseininventories (500,476) 16,339 (Increase)/decreaseintradereceivables (Increase)/decreaseinotherreceivables (503,952) (9,512,753) (Increase)/decreaseinVATreceivable 7,981,076 Increase/(decrease)inconditionalgrantsandreceipts 36,721,951 (15,416,533) Increase/(decrease)intradepayables 82,652,547 17,308,524

Cash generated by/(utilised in) operations 264,200,929 124,789,768

28 CASH AND CASH EQUIVALENTS IAS 39

Cashandcashequivalentsincludedinthecashflowstatement comprisethefollowing:

Bankbalancesandcash 9,991,465.65 52,364,587 Bankoverdrafts 10,839,899.67 (86,944,613)

Net cash and cash equivalents (net of bank overdrafts) 20,831,365.32 (34,580,026)

79

29 CORRECTION OF ERROR GRAP 3

Duringtheyearended30June2008&2009,thefollowingwererecognisedincorrectly

29.1 Assets 29.1.1 Recognition of Dwaf assets DuringthepreviousyearthemunicipalitydidnotrecognisetheDwafassetswhichweretransferred.ThetotalamountofR 436313198.91wasrestatedaspriorperioderror

29.1.2 Recognition of Land

Duringthecurrentyearthemunicipalitydiscoveredthatthehavenotrecognisedthelandpreviouslytransferredtothedistrict.The totalamountofR21938701.00wasrecognisedaspriorperioderror

29.1.3 Disposal of Assets Duringthepreviousyearsthemunicipalityhadcapitislisedassetsthatwereconstructedonbehalfofotherorganofstate.Theassets weretransferredduringthecurrentyear.ThetotalamountofR142565798.87wascorrectedaspriorperioderror.

Duringthepreviousyearsthemunicipalityhadcapitilisedexpensesinthefixedassetregister.Theerrorresultedintoa overstatementofproperty,plantsandequipments.AnadjustmentofR30712875.00waseffectedinthecurrentyeartocorrectthe error

29.1.4 Correction of backlog depreciation Duringthecurrentyearitwasdiscoveredthatthedepreciationwasincorrectlycalculate.Thiswasastheresultoftheinitial capitilisation

29.1.5. Motor Vehicles

80 Duringthepreviousyearthemotorvehicleswerenotrecognised.ThemunicipalityhasrecognisedthematR1.Themunicipality utilisedASBdirective4forexemptiononsubsequentmeasurement.

As at 30th June 2008 Adjustment

Statement of chages in Net Assets AccumulatedSurplus 284,641,052.04

Statement of Financial Position Adjustment

Property,PlantandEquipment 284,641,052.03 Infrastructureassets 436,313,198.91 Land 21,938,701.00 Disposals 142,565,798.87 Projectsexpenses 30,712,875.00 MotorVehicles 5.00 Backlogonmotorvehicle 190,666.67 Backlogonroads 141,512.34

As at 30th June 2009

Duringthecurrrentyearthemunicipalitydiscoveredthatatransferofassetsfromdepartmentofhealthwasneverrecognisedinthe 29.1.6 fixedassetregister.ThetotalofR257355.23wasrecgnisedfrom2009financialyear.

81 Statement of chages in Net Assets Adjustment

Accumulatedsurplus (21,961,318)

Statement of Financial Performance Adjustment Depreciation 22,218,672.79 Infrastructureassets(Dwaf) 19,736,378.54 FurnitureandFittings 42,762.61 Backlogonmotorvehicle 176,000.00 Backlogonroads 99,890.56 BacklogonIntangibleassets 2,163,641.08

Statement of Financial Position Adjustment

Property,PlantandEquipment 19,797,573.98 Furnitureandfitting 257,355.23 Depreciation 20,054,929.21 Intangibleassets 2,163,641.08

29.2 DEBTORS

29.2.1 Vat receivable

82 DuringthecurrentyearSarsrefundedthemuniciplaityanamountofR44619601.61whichwasnotrecognisedasadebtorinthe previousyearbecauseSarshadraisedaliabilityforthemunicipalityandtherefundwasoffsetwiththeassessment.Theerrorwas correctedandrestated

DuringthepreviousfinancialyearinputvatamountingtoR68765.52wasneverrecognised

29.2.2. Current portion of recivables- Motor loans Duringthe2008/9financialyearthebalanceofrecivableswasoverstatedwithR336223.72.Theamountwasaffectedthedebtors balance

As at 30th June 2008

Statement of chages in Net Assets Adjustment AccumulatedSurplus 44,619,601.61

Statement of Financial Position Adjustment

Vatreceivable 44,619,601.61

As at 30th June 2009

Statement of chages in Net Assets Adjustment AccumulatedSurplus 267,458.20

Statement of Financial Position Adjustment

Vatreceivable 68,765.52

83 Currentportionofreceivablesmotorloans 336,223.72

29.3 LIABILITIES

29.3.1 BULK PURCHASES

DuringthecurrentyearthemunicipalitydiscoveredthatanamountofR18364423.65andR3458136.81forJune2009andJune 2008respectivelywasaccrued.

29.3.2. Trade Creditors Duringthecurrentyearthemunicipalitydiscoveredthatthewereduplicationofordersandgoodsreceiptnotewhichoverstatedour liabilityaccounts.AnamountofR1895631.73wascorrectedandthe2008balancewasrestated

Duringthecurrentyearthemunicipalitydiscoveredincorrectpostingswhichledtounderstatementoflliabilityaccounts.Anamount ofR3597296.10wascorrectedandthe2008balancewasrestated

29.3.3. Provision for staff leave

Duringthecurrentyearthemunicipalitydiscoveredthatleavewasduplicatedwiththeleavedaysoftheemployeeswhohad resignedwhichledtooverstatementofliabilityaccountsbyR1492957.24.

Provisionforbonuses

As at 30th June 2009 Adjustment

Statement of chages in Net Assets AccumulatedSurplus 1,756,472.44

Statement of Financial Position Adjustment

84 Tradeandotherpayables (1,756,472)

Statement of chages in Net Assets Adjustment AccumulatedSurplus 16,871,466.41

Statement of Financial Position Adjustment Tradecreditors(staffleave) 1,492,957.24 Bulkpurchases 18,364,423.65 71,638,496.00 29.4. EXPENSES

Duringthecurrentyearthemunicipalitydiscoveredthatexpenseswereovererstatedinthecashbook.AnamountofR285108was correctedandthe2008balancewasrestated

DuringthepreviousyearexpenseswasoverstatedwithpettycashstillonhandofR5000

DuringthefinancialyearthebonuscostswereunderstatedwithR 977458

As at 30th June 2009 Adjustment

Statement of chages in Net Assets

Accumulatedsurplus 1,257,656

85

Statement of Financial Performance Adjustment SubsistenceandTravel 91,042 Otherexpenses 194,066 Provisionofbonus 977,548 Pettycash 5,000.00

Statement of Financial Positions Tradecreditors (280,108) Provisionforbonuses (977,548)

SUMMARY OF EFFECT 2008/9 2007/8 Statement of Financial perfomance DepreciationofDwafassets 19,736,378.54 DepreciationonHealthAssetstransfered 42,762.01 Depreciationofassetsdisposedoff (18,364,424) Depreciationunderstatedinprioryear (2,439,532) ExpensesoverstatedinCashbook (194,066) S&Tunderstated (91,042) Perfomancebonusunderstated

86 (977,548) (41,845,752)

Statement of Financial Position RecognitionofDWAFWaterassetstransferredinprioryear 436,313,198.91 RecognitionofLandpreviouslynotcapitalised 21,938,701.00 Writeoffofassetsconstructedonbehalfofother institutions/municipalities 142,565,798.87 Correctionofmotorvehilcleassetspreviouslynotrecognised 5.00 Adjustmentofexpensespreviouslycapitalised 30,712,875.00 Recognitionoffurnitureandfittingsfransferedinprioryear 257,355.23 Recognitionofcreditorsthatwerenotaccruedinprioryear (1,756,472) Correctionofstaffleaveincorrectlyprovided. 1,492,957.24 Pettycashnotrecognisedinpriorfinancialyear 5,000.00 VATReceivablefromSARSthatwasnotpreviouslyrecognised 68,765.52 44,619,601.61 MotorLoansreceivableoverstatedinprioryear 336,223.72 Backlogdepreciationcorrected (332,179)

NeteffectonStatementofFinancialPosition (268,618) 329,260,654

NeteffectonAccumulatedsurplusopeningbalance (42,114,370) 329,260,653.64

CORRECTION OF ERROR (continued)

The effect on the balances are as follows:

87 Effectonaccumulatedsurpluson2007/8 (329260654) Effecton2008/9accumulatedsurplus 268,618.17 Total effect on accumulated surplus (328 992 035)

UNAUTHORISED, IRREGULAR, FRUITLESS AND WASTEFUL 30 EXPENDITURE DISALLOWED MFMA S125 (2) (d)

30.1 Unauthorised expenditure

Reconciliationofunauthorisedexpenditure

Openingbalance 12,717,126.20 Unauthorisedexpenditurecurrentyear ApprovedbyCouncilorcondoned 12,717,126.00 Transfertoreceivablesforrecovery Unauthorisedexpenditureawaitingauthorisation 0 -

ADDITIONAL DISCLOSURES IN TERMS OF MUNICIPAL 31 FINANCE MANAGEMENT ACT

31.1 Audit fees MFMA S125 (1) (c)

Openingbalance Currentyearauditfee Amountpaidcurrentyear 1,679,511 735,900 Amountpaidpreviousyears

Balance unpaid (included in payables) 1,679,511 735,900

88

32 CAPITAL COMMITMENTS GRAP 19

32.1 Commitments in respect of capital expenditure

- Approved and contracted for 66,229,566 88,267,557 Infrastructure 66,229,566 88,267,557

Total 66,229,566 88,267,557

33 NON-CURRENT FINANCIAL LIABILITIES

Long term leave provision 11,453,678

34 Irregular expenditure

Reconciliationofirregularexpenditure

Openingbalance 12,505,977 CondonedorwrittenoffbyCouncil CurrentyearnotyetcondonedbyCouncil 28,240,871

Irregularexpenditureawaitingcondonement 40,746,848 -

89 Incident Disciplinary steps/criminal proceedings

The municipality has incured an irregular expenditure as a result of diviation from the municipal supply chain policy.The irregular expenditure will be tabled to Council for condonement. The opening balance for irregular expenditure was identified in the current year as a result of the audit. The matter is still to be tabled to Council for condonment.

35 CONTINGENT LIABILITY

Claimfordamages 10,455,878

TheMunicipalityisbeingsuedbyaserviceprovidersdueto damagesarisingfrompaymentsallegedtobeoutsanding.Councilis contestingtheclaimbasedonlegaladvice.Mostcourtdatehasnot yetbeenset.ShouldCouncilbeunsuccessfulindefendingtheclaims, thereisapossibilitythattheclaimwillbesettled.

RELATED PARTIES

Waterservicesproviders Lepelle-Nkumpi Municipality Blouberg Municipality Themunicipalityhasenteredintoservicelevelagreementwiththe localmunicipalitytorenderwaterprovisiontotheconsumer.The agreementwasmadeinlinewiththeWaterServicesActand MunicipalStructuresAct Molemole Municipality Aganang Municipality

90 Related party balances

Themunicipalityhaswaiveditsrighttothedebtorsbalance reflectinginthelocalMunicipalitiesbooks.Councilhasresolvedto cede100%oftherevenuecollectedfromsaleofwaterforthree period

Thewaterrelatedbalancearenotincludedinthedistrictaccountas themunicipalitywasutilisingMunicipalsystemacts81.Thebalances arisingfromthesaleandbillingofrevenuewillremainwiththeWSP.

36 EVENTS AFTER THE REPORTING DATE

Noadjustmentsinthefinancialstatementsweremadeasaresultofeventsarisingafterthebalancesheetdate.

37 RISK MANAGEMENT

Creditrisk

Creditriskconsistsmainlyofcashequivalentsandtradedebtors.

TomanagetherisktheMunicipalityhasacreditcontrolpolicy.Aspartoftheseprocessesthefinancialviabilityofallcounterpartiesisregularlymonitoredandassessed.

Counterparties:

TheMunicipalityonlydepositscashwithmajorbankswithhighqualitycreditstandingandlimitsexposuretoanyonecounterparty.TheMunicipalityhasnosignificant concentrationofcreditriskwithanysinglecounterpartyoragroupofcounterparties.

Fairvalueoffinancialinstruments

91

Atyearendthecarryingamountsofcashandshorttermdeposits,tradeandotherreceivablesandtradeandotherpayablesapproximatedtheirfairvaluesduetothe shorttermmaturitiesoftheseassetsandliabilities.

38 Currency risk

TheMunicipalitydoesnothavecurrencyriskasintermsofsection163oftheMunicipalFinanceManagementAct,No.56of2003,nomunicipalitymayincuraliabilityor riskpayableinaforeigncurrency.

39 Liquidity risk

TheMunicipality'srisktoliquidityisaresultofthefundsavailabletocoverfuturecommitments.TheMunicipality'sfundingsourceintheformofgrantsandsubsidies ensurethatsufficientliquidfundsaremaintainedtomeetitsdailycashrequirements.

Themunicipalitymanagesliquidityriskthroughanongoingreviewoffuturecommitment.Cashflowforecastsareprepared.

Thetablebelowanalysesthemunicipality'sfinancialliabilitiesintorelevantmaturitygroupingsbasedontheremainingperiodatyearendtothecontractualmaturitydate. Theamountsdisclosedinthetablearethecontractualundiscountedcashflows.

Notlaterthanone 30Jun10 month Onetothreemonths

Tradeandotherpayables 2,047,855 51,159,632.26 Provisions Unspentconditionalgrants&receipts

92 Laterthanthree months Onetofiveyears 101,083,555.79 Tradeandotherpayables Provisions 1,846,954 StaffLeave 11,453,678 Unspentconditionalgrants&receipts 40,826,776

40 RESTATEMENT OF COMPARATIVE INFORMATION

Variouscomparativefigureshavebeenrestatedintermsofthepriorperioderrorsnote29.Theeffectoftherestatementaresummarisedinthesenotes.

Previous Statement of Financial Position: balance Adjustment Corrected balance Provisions (980,000) (977,548) (1,957,548) Tradecreditorsandotherpayables (18,908,047) (18,908,047) VatReceivable 44,688,367.13 44,688,367 Currentportionofreceivable 336,223.72 336,224 PropertyPlantandEquipments 264,843,478.05 264,843,478 Intangibleassets 2,163,641.08 2,163,641

93 Capricorn District Municipality APPENDIX C SEGMENTAL ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT asat30June2010 Cost / Revaluation Accumulated Depreciation Opening Under Closing Opening Closing Carrying Balance Additions Construction Disposals Balance Balance Additions Disposals Balance value R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000

Executive&Council Finance&Admin 54,669,251 11,229,240 (541,000) 65,357,491 (14,075,958) (9,130,720) 171,317 (23,035,361) 42,322,130 Planning& Development Health Community&Social Services 21,938,701 21,938,701 21,938,701 PublicSafety Sport&Recreation 327,732 (327,732) (125,531) 125,531 Environmental Protection 1,099,174 1,861,776 2,960,950 (40,754) (788,350) (829,104) 2,131,846 WasteManagement RoadTransport 3,818,148 59,645,076 188,488,545 251,951,769 (1,972,711) (18,530,216) (20,502,927) 231,448,842 Water 551,616,959 17,626,624 (31,984) 569,211,599 (68,492,847) (25,754,556) (94,247,403) 474,964,196 Electricity 35,793 (35,793) 1,194,681 (1,194,681) Other 416,760,395 127,028,784 (188,488,545) 355,300,634 355,300,634 Total 1,049,902,628 217,755,025 (936,509) 1,266,721,144 (83,387,589) (55,524,054) 296,848 (138,614,795 1,128,106,349

94

Capricorn District Municipality APPENDIX D SEGMENTAL STATEMENT OF FINANCIAL PERFORMANCE fortheyearended30June2010

2009 2009 2009 2010 2010 2010 Actual Surplus / Actual Surplus / Actual Income Expenditure (Deficit) Actual Income Expenditure (Deficit) R R R R R R ` 462,494 28,628,291 (28,165,797) Executive&Council 8,855,433 (8,855,433) 241,028,352 232,131,329 8,897,023 Finance&Admin 265,702,855 337,044,653 (71,341,798) 12,824,282 (12,824,282) Planning&Development Health 5,119,577 5,082,153 37,424 26,600,724 (26,600,724) Community&SocialServices PublicSafety Sport&Recreation EnvironmentalProtection WasteManagement 1,475,140 (1,475,140) RoadTransport 59,059 1,787,027 (1,727,968) 223,187,994 45,138,756 178,049,238 Water 217,868,143 54,018,748 163,849,396 484,637 (484,637) Electricity 5,244,579 (5,244,579) Other

95 464,678,840 352,527,738 112,151,102 488,749,634 406,788,014 81,961,621 Less:InterDepartment Charges

464,678,840 352,527,738 112,151,102 Total 488,749,634 406,788,014 81,961,621

96 AUDITOR’S REPORT OF THE AUDITOR-GENERAL TO THE LIMPOPO PROVINCIAL LEGISLATURE AND THE COUNCIL ON CAPRICORN DISTRICT MUNICIPALITY

REPORT ON THE FINANCIAL STATEMENTS INTRODUCTION 1. Iwasengagedtoaudittheaccompanyingfinancialstatementsofthemunicipality,which comprisethestatementoffinancialpositionasat30June2010,andthestatementof financialperformance,statementofchangesinnetassetsandcashflowstatementfor theyearthenended,andasummaryofsignificantaccountingpoliciesandother explanatoryinformation,assetoutonpagesXXXtoXXX. ACCOUNTING OFFICER’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS 2. Theaccountingofficerisresponsibleforthepreparationandfairpresentationofthe financialstatementsinaccordancewithSouthAfricanStandardsofGenerally RecognisedAccountingPractice(SAStandardsofGRAP)andinthemannerrequiredby theMunicipalFinanceManagementActofSouthAfrica No.56of2003(MFMA).This responsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevant tothepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterial misstatement,whetherduetofraudorerror;selectingandapplyingappropriate accountingpolicies;andmakingaccountingestimatesthatarereasonableinthe circumstances. AUDITOR-GENERAL’S RESPONSIBILITY 3. Asrequiredbysection188oftheConstitutionofSouthAfricaandsection4ofthePublic AuditActofSouthAfrica,2004(ActNo.25of2004)(PAA),myresponsibilityisto expressanopiniononthefinancialstatementsbasedonconductingtheauditin accordancewiththeInternationalStandardsonAuditingand General Notice 1570 of 2009issuedin Government Gazette No. 32578 of 27 November 2009 .Becauseofthe mattersdescribedintheBasisfordisclaimerofopinionparagraphs,however,Iwasnot abletoobtainsufficientappropriateauditevidencetoprovideabasisforanaudit opinion. Basis for disclaimer

Revenue 4. Thedistrictmunicipalityisawaterauthorityintermsofsection84(1)(b)and84(1)(d)of theMunicipalsStructuresAct,1998(ActNo.117of1998).Themunicipalityhas appointedlocalmunicipalitiesfallingwithinitsjurisdictionasserviceprovidersintermsof Section78oftheMunicipalsSystemsAct,2000(ActNo32of2000). 5. Thedistrictmunicipalitydidnotrecognisewaterrevenueforwaterservicesrenderedon itsbehalfastherewerenopropersystemsandcontrolsinplacetoaccountforsuch revenue.Iconsequentlycouldnotconfirmthatallrevenueinflowsthatshouldhavebeen recordedhavebeenrecordedanddisclosedinthefinancialstatements.The municipality’srecordsdidnotpermittheapplicationofalternativeproceduresregarding revenue. 6. Accordingly,Iwasnotabletodeterminewhetheranyadjustmentsmightbenecessaryto theamountsshowninthefinancialstatementsforrevenue,thesurplusfortheyearor theaccumulatedsurplus.

97 Trade and other receivables 7. Thedistrictmunicipalitydidnotrecogniseaccountsreceivableforwaterservices renderedonitsbehalfastherewerenopropersystemsandcontrolsinplacetoaccount forsuchreceivable.Iconsequentlycouldnotconfirmthatallreceivablesthatshould havebeenrecordedhavebeenrecordedanddisclosedinthefinancialstatements.The municipality’srecordsdidnotpermittheapplicationofalternativeproceduresregarding debtors. 8. Accordingly, I was not able to determine whether any adjustments might be necessary to the amounts shown in the financial statements for impairments of accounts receivable, bad debts written off, the surplus for the year or the accumulated surplus. Value added tax (VAT)

9. The district municipality did not recognise VAT on the water service revenue that should have been recorded, as there were no proper systems and controls in place to account for such balance. I consequently could not confirm whether the VAT that should have been recorded has been recorded and disclosed in the financial statements. The municipality’s records did not permit the application of alternative procedures regarding VAT. Employee Cost

10.During the preceding financial year ended 30 June 2009, adequate documentation was not provided for car allowances amounting to R9 717 503. My opinion on the financial statements for the period ended 30 June 2009 relating to the car allowance amount was modified accordingly. My opinion on the current period financial statements is also modified as adequate documentation could not be provided for the car allowance amounting to R12 251 044. Leave provision

11.The long term leave provision to the amount of R11 453 678 as disclosed in the statement of financial position was not measured in terms of the International Accounting Standard (IAS) 19 Employee benefits . The standard requires measurement to be based on an actuarial valuation or the projected unit method. The district municipality had measured the balance based on actual leave days and basic salaries only. I consequently could not confirm whether the said balance has been correctly valued. The municipality’s records did not permit the application of alternative procedures regarding non-current liabilities.

Cash flow statement

12.Presentation of a cash flow statement, summarising the entity’s operating, investing and financing activities is required by Standard of Generally Recognised Accounting Practice, GRAP 2, Cash flow statement. An error was noted in the corresponding figures for the net cash flows from financing activities. The error arose as a result of the payment for the financial lease liability what was recorded as a cash inflow instead of a cash outflow. As a result, the net cash flows from financing activities and the cash and cash equivalents for the period ended 30 June 2009 in the cash flow statement are overstated by R5 075 309. Expenditure

13.Contrary to the preceding financial year’s service level agreements and current year council resolution, the district municipality has not recorded the commission payable to the local municipalities who have rendered water services on the district municipality’s behalf.

98 14.I consequently could not confirm that all expenditure relating to the commission payable that should have been recorded have been recorded and disclosed in the financial statements. The municipality’s records did not permit the application of alternative procedures regarding the expenditure.

15.Accordingly, I was not able to determine whether any adjustments might be necessary to the amounts shown in the financial statements for expenditure, the surplus for the year or the accumulated surplus.

Property, Plant and Equipment

16.Standards of Generally Recognised Accounting Practice, GRAP 17, Property, plant and equipment requires that assets acquired at a nil or nominal value should be recognised at fair value on initial recognition. As indicated in note 5.4 to the financial statements, a transfer of 49 assets was made from the Department of Environmental Affairs and Tourism to the district municipality in the current financial year. The assets were recorded at nominal values of R1 each which is in contravention of GRAP 17. The effect on property, plant and equipment and other classes of transactions contained in the financial statements could not be determined.

Disclaimer of opinion

Because of the significance of the matters described in the Basis for disclaimer of opinion paragraphs, I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, I do not express an opinion on the financial statements.

EMPHASIS OF MATTER Idrawattentiontothemattersbelow.Myopinionisnotmodifiedinrespectofthesematters: Irregular Expenditure 17.As disclosed in the note 34 to the financial statements, irregular expenditure to an amount of R40 746 848 was incurred due non-compliance to the supply chain management regulations. Restatement of corresponding figures

18.As disclosed in note 29 to the financial statements, corresponding figures for 30 June 2009 have been restated as a result of errors discovered during 2010 in the annual financial statements of the Capricorn District Municipality at, and for the year ended 30 June 2009

ADDITIONAL MATTERS Idrawattentiontothemattersbelow.Myopinionisnotmodifiedinrespectofthesematters: UNAUDITED SUPPLEMENTARY SCHEDULES 19.The supplementary information set out on pages XXX to XXX does not form part of the financial statements and is presented as additional information. I have not audited these schedules and accordingly I do not express an opinion thereon.

99

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 20.In terms of the PAA of and General notice 1570 of 2009, issued in Government Gazette No. 32758 of 27 November 2009, I include below my findings on the report on predetermined objectives, compliance with the following key laws and regulations and financial management (internal control). Findings Predetermined objectives 21.Material findings on the report on predetermined objectives, as set out on pages XXX to XXX, are reported below: Non-compliance with regulatory and reporting requirements

REPORT ON PREDETERMINED OBJECTIVES NOT RECEIVED ON TIME 22.The reliability of the targets as set out on pages XX to XX of the annual report, could not be verified, since the information was not received in time for audit purposes.

Compliance with laws and regulations MFMA

Expenditure was incurred in contravention of or not in accordance with applicable legislation resulting in irregular expenditure

23. Expenditure was not incurred in accordance with the requirements of the supply chain management policy of the municipality giving effect to such policy as set out in section 1 the definition of “irregular expenditure” paragraph (d) of the MFMA. Municipal Systems Act of South Africa, No 32 of 2000 (MSA) Annual declarations not made by those charged with governance

24.Contrarytosection7(a)ofschedule1oftheMSA,evidenceofannualdeclarationsof interesttobemadebythecouncillorswasnotsubmittedtotheaudit. Municipal Structures Act of South Africa, No 117 of 1998

Functions and responsibilities of the district municipality

25.Contrarytosection84(1)oftheaboveact,thelocalmunicipalitiesperformedthewater functionandnotthedistrictmunicipality.Noministerialapprovalwasobtainedtodeviate fromtheprovisionsoftheaboveact. INTERNAL CONTROL 26.Iconsideredinternalcontrolrelevanttomyauditofthefinancialstatementsandthe reportonpredeterminedobjectivesaswellascompliancewiththeMFMA,MSAand MunicipalStructuresAct,butnotforthepurposeofexpressinganopiniononthe effectivenessofinternalcontrol. 27.Themattersreportedbelowarelimitedtothesignificantdeficienciesregardingthebasis

100 fordisclaimerofopinionparagraph,thefindingsonthereportonpredetermined objectivesandthefindingsoncompliancewithlawsandregulations. Leadership

Oversight responsibility

28.The accounting officer does not exercise oversight responsibility over reporting and compliance with laws and regulations and internal control.

29.Actions have not been taken to address all material misstatements reported in the prior year’s audit of financial statements. 30.The accounting officer does not evaluate whether management has implemented effective internal controls by gaining an understanding of how senior management has met its responsibilities. ACTION TO MITIGATE RISKS

31.Actions are not taken to address all risks relating to the achievement of complete and accurate financial and performance reporting. 32.Certain external audit findings are not addressed.

Financial and performance management

Quality, reliable annual financial statements

33.The financial statements were subject to material amendments resulting from the audit. 34.The annual performance report was not submitted for auditing as per the legislated deadlines. Adequate systems

35.General information technology controls are not designed to maintain the integrity of the information systems and the security of the data.

Governance

Internal audit

36.Adequate and effective procedures were not designed on matters related to financial and performance reporting.

101 OTHER REPORTS Investigations

Investigation in progress

37.An investigation is being conducted by a contracted firm to probe the manner in which the supply chain management process was applied by the district municipality. The investigation aims to establish whether any irregularities had taken place in the procurement of goods and services. The investigation was still ongoing at the reporting date.

Polokwane

30 November 2010

102 CHAPTER 5: INFRASTRUCTURE DEVELOPMENT & SERVICE DELIVERY

WATERMANAGEMENT

1. WATER SERVICES Progress The Department identified 48 projects for the financial year 2009/10. Due to financial constraints 36 converted to multi year during budget adjustment in January 20910.Twelve projects were targeted for completion by end of June 2010andtheremainingthirtysixbyJune2011. Achievements Twentyoneprojectswerecompletedandcommissioned. Seven projects rolled overfromthe2008.9financialyearwerealsocompletedandcommissioned.The 21completedprojectscontributedtowardsreducingthebacklogby2%. 1.1. Challenges Despite early applications for ESKOM connections, some delays were experiencedalthoughtherewasamarkedimprovementcomparedtothe2008.9 financial year. There were also a few projects that struggled in getting undergroundwatersuppliesparticularlyinAganang.Thischallengewasdifficult todealwithascommunitiesexpectationshadbeenraisedandthereforemaking it difficult to delay projects to allow for adequate planning. The tempering with completed infrastructure is rampant with some community members watering vegetableandfruitgardenswithscarcewaterresourcesattheexpenseofothers. 1.2. Suggested Solutions Amendmenttotheconsultantmanualwillbeeffectedtoallowconsultanttopay forelectricityandsteeltanksimmediatelyafterscopeagreementsigning.

103 This will allow enough lead time as opposed to waiting for contractors to be appointed. Bylaws enforcement will be pursued in the next financial a year subjecttoapprovalofatariffstructurebyCouncil. 2 WATER OPERATIONS & MAINTENANCE

2.1 Free basic water implementation (First order strategy)

ACHIEVEMENTS A total of 427,652 district people benefitted though 1 st order provision. The first order strategyrelatestoprovisionoffreebasicwatertodistrictcommunitieswherebywepayfor theenergycostofoperatingwatersources.CDMpaysfortheelectricitybillstoEskomas wellasdiesel.

CHALLENGES Delaysbylocalmunicipalitiesinsubmittingmonthlyreturnscausedchallengesaround processingofinvoices.Althoughpowerdisconnectionswerereduced,someincidentsdid occur.Furtherthestealingofcablescontinuedalthoughamarkedimprovementwasseenin respectofstealingofdieselengines. Suggested Solutions Identifiedboreholesparticularlythoseinremoteareaswillcontinuetobeprotected throughaconcretepumphouseconstructionprogramme.Furtherdieselenginewill continue to be mounted on trolleys wherever feasible. Monitoring of diesel consumptioninformedbyenginesizewillalsocontinuetocurtailpossibleabuse.

104 2.2 Free basic water implementation (Second order strategy)

ACHIEVEMENTS SecondorderimplementationoffreebasicwaterusingtheLMcompiledindigentregisters continued.HoweverCDMfinalizeditsindigentregisterwhichwasforwardedtoLMsforuse. Currentlycostrecoveryisimplementedinthethreelocalmunicipalitieswiththeexceptionof AganangMunicipality. THEFOLLOWINGSUBSCHEMESAREOPERATINGONCOSTRECOVERY BASIS: BloubergLocalMunicipality(9subschemes=100%); MolemoleLocalMunicipality(1subscheme=25%); LepelleNkumpiLocalMunicipality(1subscheme=100%); AganangLocalMunicipality(0subscheme=0%);

CHALLENGES Themanagement offree basic water provision by local municipalities requires continuous support from CDM in terms of further improving implementation of cost recovery in other areas.WhilstthelevelofindigenceintheDistrictisacknowledged,costrecoverybasedon thecompiledindigentregisterstilllagsbehindwithverylittlecostrecoverytakingplaceeven inareaswerethisshouldbehappening. Suggested solutions Costsrecoverysupportisrequiredandthewaterdemandmanagementstrategywillassistin thatregard.ThewaterdemandmanagementstrategyisexpectedtobecompletedbyJune 2011.

105 2.3 Operations and Maintenance of water schemes

ACHIEVEMENTS Sincethetransferofthedailyoperationsandmaintenanceofschemeswastransferredto localmunicipalities,thecoreresponsibilityofthedivisionistosupportallthelocal municipalitiesandensuresustainabilityintheoperationsandmaintenanceofdistrictwater schemes. Achievements Twohoneysuckerswerepurchasedanddistributedtotwolocalmunicipalitiesnamely LepelleNkumpiandMolemoleLMstoprovidesanitationservicesinareaswithoutsewer reticulation.Aserviceproviderwasprocuredtosupply17operationsandmaintenance vehicles.FundsforthedaytodayoperationsandmaintenanceweretransferredtoallLMs withtheexceptionofLepelleNkumpisincetheydidnotsigntheWSPagreement.Atotalof 20boreholeswereidentifiedforelectrificationandelectrified.19bulkmeterswereinstalledin LepelleNkumpiwiththeaimofmonthlyauditingbillreceivedfromLepelleNorthernWater Challenges

EventhoughthefunctionwaseffectivelytransferredtoLMs,CDMcontinuedtobeinundated withreportsrequiringurgentattention.Thiscreatedcomplicationsasthefundsforrepairs now reside with the LMs. The long outstanding transfer of Aganang Satellite staff to Aganang remains a challenge due to labour related demands. Full integration of DWA transferredisoutstandingposingachallengearoundstaffmotivation. Solutions Acustomercarecentrewillbeestablishedduringthe2010.11financialyear.Thiswillassist in logging of complaints by residents and assists with the follow up thereof. Further assistancewillbesoughtfromDWAinrelationtofundsforfullintegrationofstaff.

106 2.4 Purchasing Land For The Water Quality Laboratory

ACHIEVEMENTS Verylittleachievementwasattainedduringthelastfinancialinrelationtothelandforthe waterqualitylaboratory.AfterunsuccessfulnegotiationswithPolokwaneLM,new negotiationswerestartedwithUniversityofLimpopo.Thesenegotiationswerenot concludedduring2010.11financialyear. Challenges ComplicationsarosefromthenegotiationswithPolokwaneLMontheproposedlandofferas therewasnowrittencommitmenttothateffect. Proposed Solution NegotiationswiththeUniversityofLimpopowillbepursuedtoensurethatanagreementis reachedonthematterfailureofwhichalastbidforinvitationofpublictenderswillbedone. 2.5 By-Laws Campaign & Enforcement

ACHIEVEMENTS CDMcommencedwithaprogrammeofbylawscampaignandenforcementinallthefour LMs.Twoserviceproviderswereappointed,oneforbylawscampaignandtheotherforby lawsenforcement. Challenges

SincetheprogrammerequiresbuyinfromthevariousstakeholdersincludingLMs.Arranged meetingswithLMscouldnottakeplaceduetotheirnonavailability.Theprogrammewillbe restartedinAugust2010whichwillallowtheenforcementofthesamebylaws.Enforcement ofbylawswillrequireaCouncilapprovedtariffstructure.

107 Suggested Solutions The programme will be restarted in August 2010 which will allow the enforcement of the samebylaws. 2.6 Concrete Borehole Pumphouses

ACHIEVEMENTS CDMcommencedwithaprogrammeofconstructing40concreteboreholepumphouses.A serviceproviderwasappointedandtheprojectisbeingimplementedonamultiyearbasis. Therewerenospecificchallenges. 2.7 Water Quality

ACHIEVEMENTS CDMconductedwaterqualitysamplingacrosstheDistrictfortheentiredurationofthe financialyear.Onaverage160samplesweretakenmonthlyinformedbythesamplingplan andsendfortestingtoanaccreditedappointedserviceprovider.Therewerenospecific challenges. 2.8 Bulk Water Meters

ACHIEVEMENTS CDMinstalled19bulkmeterstoassistwithwateraccounting.Thesemeterswereinstalled immediatelyafterbulkreservoirs.Theprojectiscompleteandtherewerenospecific challenges.

108 2. SANITATION

ACHIEVEMENTS TheDepartmentembarkedonaprogrammetoconstruct3,866drysanitationfacilities.The implementationplanwaschangedinJanuary2010duetobudgetchallengesandspread overtwoovertwofinancialyearswiththefirstyeartargetof30%andsecondyeartargetof 70%.ByendofJune1,240unitswereconstructedgivinganoverallprogressof103%forthe 2009.10target.The1,240completedunitsreducedthebacklogby1%. Challenges

OneofthefourappointedserviceprovidersforBloubergLMwaschasedawayfromsitefor thefirstfivemonthsofprojectduetocommunityproblems.Manyattemptstoresolvethe issueweremaderesultinginmanystopsandstarts.Theissueremains.InAganangalotof timewasalsolostduetotheneedtopaycommunitybasedorganizationswhowerenotpaid bythepreviouscontractorwhowasterminated.Furtherthe866interventionsforAganang willnotbeadequatecovertheshortfallarisingfromtheincomplete2008.9projectfor Aganang.TheoverallprogressasattheendofJune2010was31%.

Suggested Solutions TheadoptedmodelasapprovedbyCouncilgoingforwardminimisestheriskofmanaging contractors but requires further fine tuning to ensure speedy implementation of future projects. 3.TAXIRANKS Progress Five taxi ranks and thirty bus shelters were targeted for implementation through the benefittingLMs.ThemoneywastransferredtothesebenefittingLMs.

109 Challenges LocalMunicipalitiesdelayedwiththestartoftheimplementationoftheprojectsandhenceall LMswerenotabletocompleteanyofthetaxiranksbytheendofJune2010. Suggested Solutions Transfers to LMs by CDM will be done in the first month of the financial year to allow adequate time for them to plan and implement the projects. Further transfers will be conditionalsubjecttocompletionofpreviousprojects. 4.ROADS Progress Eight priority roads approved for implementation on a three yearrollingplan. All the eight projectswereawardedandcompletedwith2009.10beingthefinalyearofimplementation. OneprojecttargetedforimplementationbyLepelleNkumpiLMremainsincomplete.Atotal of67.8kmofgravelroadwassurfacedthroughtheseprojectstherebyreducingthebacklog by3%.RoadAgencyLimpopoalsoimplementedprojectsthatcontributedtowardsreducing thebacklogby1%. Challenges TheonlytwochallengesexperiencedwereinrespectofqualitychallengesonMamaoloto SeletengRoadandtheSeboratoMohlonongroad.Thesechallengeswerefullyaddressed andontheSeboratoMohlonongRoadadisputewasdeclaredbetweenthecontractandthe consultant. An amount of R2,000,000 remains unpaid to the contractor for Sebora to Mohlonongroad. Suggested Solutions

ThedisputeontheSeboratoMohlonongRoadwasreferredforarbitration.Thecontractor and the consultant still have to agree on the appointed arbitrator in terms of the General ConditionsofContractdisputesettlementprocedure.

110 5.ELECTRICITY

ENERGYSERVICES Atotaloffourteenprojectswereidentifiedforimplementation.Elevenprojectswere implemented, completed and energised. One project is awaiting ESKOM power outagetoenableenergisationandtwoprojectsarebeingimplementedonamulti yearbasisandwillbecompletedduringthe2010.11financialyear.Thetotalnumber of3,087unitscompletedreducedthebacklogby2%. Challenges TheappointedserviceproviderforGaSechabawasterminatedduetononpaymentofhis appointed subcontractor. A new service provider was appointed to complete the project. TheprojectwaseventuallycompletedandenergizedbyJune2010. Suggested Solutions Paymentstoappointedsubcontractorsforenergyprojectswillfromthenextfinancialyear bedonedirecttothem.Theappointedconsultantwillonlybepaidforhis/herprofessional fees. 6.QUANTITYSURVEY Progress TheunitisresponsibleforcommittingandreportingMIGexpendituretotheDepartmentof LocalGovernmentandHousing.Theunitmanagedtocommitby100%the2010.11budget andspend100%ofthe2009.10allocation.

111

Challenges There were delays experienced form DWAE in approving technical reports to allow full committimentsofthe2011.12financialyearallocation. Suggested Solutions

AnappealwaslodgedwiththeProvincialOfficeofDWAEwhichappealisnowreceivingthe necessaryattention.

CHAPTER 6. COMMUNITY SERVICES

Achievements

EstablishmentOfAWasteDisposalFacilityAtMolemoleLocalMunicipality

• Theprojectwasontenderduringtheperiodtenderstage. PlanningTheEstablishmentOfAWasteDisposalFacilityAtAganangLocal Municipality • Allplanningandenvironmentalstudieswerecompleted.Duetobudgetrestrictions constructioncouldonlytakeplaceduring2010/11onlyifbudgetallows. EstablishmentOfAWasteDisposalFacilityAtBloubergLocalMunicipality • Projectdidn’tresumeafteritwasstoppedduringOctober2008toinvestigatepossible irregularities.Projectwastoresumeafterinvestigationswerecompleted.

EstablishmentOfAWasteDisposalFacilityAtLepelleNkumpiLocalMunicipality

• Thecontractorwasonsiteduringtheperiodtofinalisetheproject.Thecompletiondate wasanticipatedtobeDecember2010.

OutsourcingDailyOperationsAndMaintenanceOfEstablishedWasteDisposal Sites/Landfills

• Outsourcingwasentirelydependentonthecompletionoftheofthelandfillsites. Projectwasputonholdandmoneytransferredtootherprojectsforthecurrent financialyear.

112 ImplementationOfAnAirQualityMonitoringProgrammeInTheDistrict • Tenderdocumentsforthepurchaseofairmonitoringequipmentwerepreparedfor advertisementduringJanuary2010inlinewithnewSDBIP. DevelopmentofanEmissionsInventory • AdraftemissionsinventoryisavailableandwassubmittedforinformationduringMarch 2010.Updatingtheinventoryonongoingandnewemittersarebeingidentifiedand addedtotheinventory. DevelopmentOfAnAirQualityBrochure/Booklet • A draft information booklet was developed and has been distributed for information duringMarch2010.Oncefinalised,thebookletwillbepublishedandalsoplacedonthe CDMwebsite.TheCommunicationsUnitwithinCDMwillassistwithdesign,layoutand editing. AirQualityCompliance • Site visits were conducted at all emitters during the quarter. Much time was spent on seekingindustrieswithlistedactivitiesandtheyareincludedontheemissionsinventory. At the same time, they were assessed to determine compliance and the AQ Officers reportsprovidemoreinformation. • Thefollowingemitterswerevisited;HabakukFurnitureinLebowakgomo,COROBRIK; MuchAsphalt;SiliconSmelters;HillaryConstruction;ShellSADepotandTotalSADepot inPolokwaneaswellastheSiliconSmelters(Charcoalplant)inMorebeng. CleanFires(BasaNjengoMagogo)Campaign

• Wehavecontinuedoursearchforanidealvillageortargetgroupthatusescoalasa primaryfuelsource. • MamaboloVillagewastargetedbutdoesnotcomplywithcriteria.Interactionswithcoal suppliershavetakenplaceandtheywillreleaseclientlistswhichwe’llusetosearchfor atargetgroupforimplementationoftheCleanFiresCampaign. • Statusunchanged.Thesearchforatargetgroupthatusescoalasaprimaryfuelsource iscontinuing.DMEalsoinvolvedaspartoftheirEnergyReductionStrategies. DevelopmentOfAnEnvironmentalManagementPlan(Emp)ForAganangLocal Municipality

• FinalEMPwassubmittedandtheprojectwasclosed.TheEMPhasbeenplacedonthe CDMWebsite. DevelopmentOfAnEnvironmentalManagementPlan(Emp)ForBloubergLocal Municipality

• ProjectclosedinNovember2009.FinalEMPdocumentavailableandplacedonCDM website

113 DevelopmentOfAnEnvironmentalManagementPlan(Emp)ForLepelleNkumpi LocalMunicipality • FinalEMPwassubmittedandtheprojecthasclosed.FinalEMPhasbeensubmitted, andplacedontheCDMWebsite. PurchaseOfWasteEquipmentForMolemoleLm • MolemoleLMwasinformedtoproceedwithSCMprocessestopurchaserefuse compactortruck.MolemoleLMissuedatenderforarefusecompactiontrucktobeused forwastecollectionwhichclosedduringlateOctober.Tenderadjudication&appointment processesundertaken. • AMoUhasbeenconcludedbetweenCDMandMolemoleLMandallTender adjudicationprocesseshavebeencompletedbyendJune2010. • IntermsoftheMoUanamountofR1,351,456.97wastransferredtothelocal municipalityfortheprocurementofatruckfromtheappointedserviceprovider CranetechJVMapininiaspersubmittedinvoice.

PurchaseOfWasteEquipmentForAganangLocalMunicipality • TheplanwastoacquireaSkipLoadertruckandSkips.AMoUregulatingfundingand deliverableswassubmittedtotheMunicipalityduringJanuary2010butwasnotsigned. Nofeedbackwasforthcomingfrommunicipalityontheseissuesandtheyhavebeen informedthatthefundsarenolongeravailable.

EnvironmentalManagement&SustainableDevelopmentTrainingForCouncillors • ProjectcompletedsuccessfullyinbothPolokwaneandBloubergmunicipalities.

EnvironmentalManagementTrainingForMunicipalOfficials • MessrsRavele(CDM)andManngo(Aganang)completedtheEnvironmental ManagementInspectoratetrainingatUniversityofPretoria.MrvanRooyencommenced EMItrainingthroughUNISAduringJanuary2010. • TheAQofficer,MsRangwatoattendedanAirQualityManagementcoursefrom1223 AprilatUniversityofJohannesburg. • ApprovalwasprovidedfortheCDMAirQualityOfficerandtwolegalofficersaswellas officialsfromPolokwaneLMtobeenrolledontheEMIcoursecommencingJuly2010 throughUniversityofPretoria.Theyare;MesdamesRangwatoandShilubanefromCDM andMessrs.MaxwellLedwabaandPhineasTjikanafromPolokwaneLM.

DevelopmentOfGreenBuildingGuidelines • AttendedtheGreenBuildingConferenceduringJuly2009.Variousstakeholdersin TshwaneandJohannesburgCityMetrosweremet&informationisavailableand documentwascompiledDraftGreenBuildingGuidelinesareavailable EnvironmentalManagementPromotion/AwarenessProgrammes • FacilitatedaWorkingforWetlandsworkshopatGaMampaVillageon5August2009 withstakeholdersLEDET,SANBI&IWMI • LimpopoSchoolsStateoftheEnvironmentCompetitionsuccessfullyconcludedon12 August2009.

114 • togetherwithGreenestMunicipalitycompetitionwhichwasconductedandawards presentedonthe22October2009atMarcoHall,Polokwane. IntegrationOfEnvironmentalIssuesIntoTheIdpOfCdm • TheIDPformathasbeenimprovedtoincorporateenvironmentalconsiderationsand duringrecentProvincialIDPassessmentCDMreceivedaratingof4outof5. OfficeOfThePremierGreeningInitiativeProject • TheMunicipalitysupportedandcoordinatedtheprojectforlocalmunicipalities.

• Therearefourlocalmunicipalities(exceptPolokwane)earmarkedasbeneficiariesofthe greeningprojectandthelaunchoftheprojectshastakenplaceinallmunicipalities.

EMERGENCYANDDISASTERMANAGEMENT

• Firecalls183firecallsrespondedt • Specialservices31specialservicesactivityundertaken • MVAcases390MVAcasesrespondedto • Firepreventionactivities576firepreventionactivitiesundertaken • Plansattendedto20planreviewed • Evacuationdrills79drillundertaken • Trainingofvolunteers153personsweretrained(CDM,PolokwaneandRedCross) • Seminar/workshop1workshop • Awarenesscampaigns123awarenesscampaignsheld • Firerelatedmeetings32meetingsheld • Disasterinterventions189housefireincidentsattendedto

SPORTS,ARTSANDCULTURE

WorkplaceSportAndRecreation EmployeesparticipationinSportandRecreationactivitiesofthemunicipality.Few CouncilorswerealsoparticipatingincompetitiveSportandrecreationaswell.Employees tookpartintheInternationalgamesinMozambiqueonthe4th11September2009.The MunicipalitywasrepresentedinFootball,Netball,VolleyballandAthletics.Dueto organizationalchallenges,Netballgameswerediscontinued.SomeoftheStaffmemeber participatedinthefunrunandreceivedmedals. AcademyofSport Aconceptdocumentontheacademyofsportwasdevelopedin2009toassistinthedrafting of the Memorandum of Agreement between CDM and BakgagabaMothapo. The project wasattenderstageduringtheperiod.

115 CHAPTER 7. CORPORATE SERVICES

ADMINISTRATIONDIVISION

ThemainobjectiveistoprovidesupportandauxiliaryservicestoallDepartmentsandthe politicalcomponentoftheMunicipality. TotalMobilityForStaffAndCouncillors. Achievements: • TheTransportPolicywasadheredto.Fleetcontrolwasdonethroughthevehiclefleet reportthatwasreceivedfromtheserviceprovidereverymonth.Maintenancewasdone asandwhenrequired.Wehaveregisteredremarkableprogressregardingthe completionoflogbooksbydrivers.

OfficeAccommodation. Achievements: • TheHumanResourceUnitwasrelocated.Theresourcecentreforparttimemembersof mayoralwasfurnishedandisinoperation. • AlltheobsoletefurniturethatwasstoredatSeshegoStoreroomwasrelocatedtothe formerDWAFstoreroomandtheleasewithLimdevwascancelled. • ThepartitioningoftheDisasterManagementCentrewascompleted. • Staffmembersarefairlyaccommodatedwithintheavailableofficespace.Anofficeto relocatetheSpeakerhasbeenidentifiedandthenecessaryalterationweredone. SecurityServices. Achievements: • Regularmeetingstookplacewiththeserviceprovidertoimplementenhancementstothe service.Seereportappended. TelecommunicationService. Achievements: • Telephoneswereprovidedandmaintained.Cellphoneswereupgradedinaccordance withthepolicy. QualitativeDocuments Achievements:

• Theprintroomisoperatingsmoothlyduetotheavailabilityofeffectiveequipmentand theonsiteinvolvementofthetechnicians/operatorsprovidedbyourserviceprovider.

INFORMATION TECHNOLOGY

• Information technology was consistently provided to officials of the municipality. Softwarelicenceeswererenewedduringtheperiod. •

116 ImplementedEffectiveDocumentManagementSystem. Information Flow • Controlmeasuresforincomingandoutgoingcorrespondenceareadheredto. HumanResourceRecords Achievements • Controlregisterforthefileopenedathumanresourcerecordsdeveloped. • Atotalof70recruitmentfileswereopenedandareproperlyfiledatmainregistry • Atotalof120leavefileswereopenedandfiledalphabetically. • TheunemployedgraduatesCVweresortedaccordinglyandkeepsafelyinthemain registry.Thetotalof19filesforunemployedgraduatewereretrievedandsentforthe interviewseachwith100CV’sforunemployedgraduates • ListfortheunsuccessfulapplicationsforthepostadvertisedsubmittedtoProvincial Archivesforthedisposalpurpose. • 417formerDWAFandHealthstaffpersonnelfilesareclosedandsafelystoredatmini registry. AssistancetoLocalMunicipalities Achievements • Districtrecordsmanagementforumestablished • Theforumwasrepresentedbytworecordsofficialsfromourfivelocalmunicipalities • ThefivelocalMunicipalitiesweretrainedonthebestpracticesinrecordsmanagement • MunicipalitiesrecordsmanagementauditreportwasalsopresentedbyLocal GovernmentandHousingDepartment • ProvincialArchivespresentedroleplaybythemtoMunicipalitiesrecordsandtheir expectations. RecordsImplementationProcess Achievements • Gapwasidentifiedonthefileplanandamendmentwasmadetocateractivitiesin SpecialFocus. • Atotalof20Archivesboxeswereopenedforclosedrecordsandrecordsareduefor disposal. • Atotalof19ArchivesBoxeswereopenedatExecutivemayorandrecordsaresafely storedatmainstoreroom. • AllclosedfilesfromInfrastructurecollectedandproperlymanagedatthemainregistry • ListofrecordsduefordisposalinExecutiveMayorweresubmittedtoProvincial Archives. • FileplanwasalsodistributedtostaffinInfrastructure. • Programwasdevelopedtoconductedrecordsmanagementatsatelliteoffice. • 55filesweresortedandalignwithapprovedfileplanatthestoredroom. • FileplanwasamendedtoincludesomeactivitiesinCommunityServicesandplanning andStrategy. DisasterRecoveryManagement Achievements • Accesscontrolinthenetwork,serverroomandsystemsareeffectivelymanaged.

117 • ActionplanonimplementingAuditrecommendationswasdone. • Accesscontrolinthenetwork,serverroomandsystemsareeffectivelymanaged • ITAuditrecommendationwereecontinuouslyimplemented • Termsofreferenceforoffsitedatarecoverywascompleted.Thiswillbeadvertisedinthe nextfinancialyear ImplementedIntegratedSystemsToSupportEMunicipality

• LevelofITsupportwassatisfactorily.Evenduringhardtimestheiravailabilitytosupport hasnotbeencompromised. • LevelofITsupportwassatisfactorily.Evenduringhardtimestheiravailabilitytosupport hasnotbeencompromised.LeaveforAdministratorshasbeenrevokeddueto challengesinsystems. • TheuseofITstudentshasalsobeinghelpfulastheywerenotonlygettingexperience butalsoattendingtocallsasandwhenrequired. • StudentswerealsointheprocessofdesigningtheINTRANETbutthiswillbemerged withcontentmanagementoncefinalisedbytheappointedserviceproviderandinliaison withCommunicationdepartment. • ITsupportwasalsoonaweeklybasisofferedtolocalmunicipalityinparticularAganang MunicipalduetotheirunavailabilityofITstaff. • FurtherrequestwasreceivedfromMolemoletoalsoassistinITsupportsincetheirIT officeresigned–theneedforsharedserviceinITisthereforerelevant • StudentsallocatedinlocalMunicipalitieswerealsomonitoredbyourITstaffandoffering ITsupporteachtimetheyarerequired.allcallswererecordedbystudentsandescalated toourITstaffforassistance IT systems TheSAPapplicationsystemisstableandworkingwell.SAPadministratorsarecontinuously supportingalldepartments).HRissuesidentifiedandEPIUSEserviceproviderisinthe processofresolvingHRissues

LEGAL SERVICES

Theobjectiveistoprovidelegalandcompliancesupporttothemunicipality. Contracts. Achievements: Fortheyearunderreview,theunitreceivedfortytwo(42)instructionstodraftoredit contractsfornoncapitalprojects.Thirty(30)ofthecontractswerefinalisedwhereasthe remainingtwelve(12)werestillpendingforvariousreasons. Theunithasfortheyearunderreview,registeredanoutstandingprogressrelatingto contractualcompliancebyserviceprovidersforcapitalprojects.Outofforty(40)service providers,thirtysix(36)werecompliant,oneprojectwasstoppedandthreeservice providerswerenoncompliant.Thiswasachievedasaresultofthecollectiveapproachand cooperationbetweentheunit,theInfrastructureServicesDepartmentandtheDepartment ofFinance. Threecontractswereterminatedduringtheperiodunderreview,thatis: • DevelopmentofSpatialDevelopmentFramework;

118 • Provisionofphotocopierandfaxservices. LitigationAndSettlements. Achievements: TheUnithandledatotaloftwentyfivecases.Thirteencaseswereofhighcourtstatus. TwelvecaseswereofMagistratescourtstatus.TherewasoneHighurgentapplicationthat wasdecidedinfavouroftheMunicipality.IntwoHighCourtactioncasestheopponents abandonedtheirapplicationsforsummaryjudgmentandhavesincenotpursuedthe matters.OtherHighCourtmattersweredealtwithbywayofcorrespondenceand negotiation.OnlyoneMagistrate’sCourtactioncasewassetdownforhearingbutwas settledbeforethetrialcouldcommence.OthermattersofMagistrates’Courtstatuswere dealtwithbywayofnegotiationandcorrespondence.Alistofcasesprovidingmoredetailis attached. LegalOpinions. Achievements: CommentswereprovidedtothefollowingmemorandabeforesubmissiontotheAccounting Officer: • CapricornDistrictSportAcademy; • Extensionofcontract:FleetServices; • TerminationofContractofEmployment.. • OralandWrittenopinionswereprovidedrelatingtothefollowing: • Proceduretoterminateacontract(Strategy,PlanningandEconomicDevelopment); • Rehabilitationofborrowpitandpossiblepaymentofcompensation. • AnnualincreaseoftheTransferredstaffintermsofPSCBCResolution3and5of2009. • ExemployeeswithCDMmedicalcontributions • SeniorManagerLED • Deviation–ExchangeServerRepairandmaintenance • Pensionsupportedhousingloanscheme • Liabilityofanemployeetorepaypaymentofanactingallowance • Annualincreaseofthetransferredsection57Managers • Interpretationofthecollectiveagreement:leaveencashment • Interpretationofthesupplychainmanagementpolicy Circulatedthefollowinglegalupdatestostaffmembers.

AdvisorySupportToCouncilAndCommittees Achievements: • ProvidedsupporttotheMayoralCommitteeandtheBidSpecificationCommittee.

119 CHAPTER 8. STRATEGY, PLANNING AND LED

INTEGRATEDDEVELOPMENTPLANNING(IDP)

ACredibleIntegratedDevelopmentPlan

Achievements:

• The2010/11IDP/BudgetwasreviewedandadoptedbyCouncilonthe21 st ofMay 2010withupdatebaselineinformation. • TheDistrictMunicipalTurnaroundStrategySessionwasheldonthe29 th April2010. The purpose of the session was to assist municipalities to develop strategies and implementationplanstodealwiththechallengesaffectingservicedelivery. • The Reviewed IDP document was compiled with Municipal Turnaround Strategies integratedandalignedtothebudgetsandprojects. • Coordinated and participated in the Departmental and Management Strategic PlanningSessionstoreviewtheobjectives,programsandstrategiesoftheIDPand thistookplacebetweenFebruaryandMarch2010.

REGIONALSPATIALPLANNINGUNIT

DEVELOPMENTOFSDF Achievements

• MisavaDevelopmentwasappointedJune2009 • Project steering committee was formed which included local municipalities and sector departments;meetingwereheldonthe28 th July,25 th Sept2009 • The 1 st milestone “Spatial Interpretation of the IDP” was discussed by the steering committeeonthe27 th October2009anditiscomplete Budget/Expenditure • Budget:R650000 • Expendituretodate:R130.000

SUPPORTTOCATEGORYBMUNICIPALITIES LAND USE MANAGEMENT SYSTEM (LUMS)

Achievements

• Provided information in the Aganang LUMS Pilot. (i.e. land use data, maps, public participationactivities,environmentalassessment,etc). • Provided the same information to the promulgation of the Land Use Management SchemesforBlouberg,MolemoleandLepelleNkumpiLocalMunicipalities. • AganangLandUseSchemeAlignmentReportapprovedbyCouncil. • FormedpartofsteeringcommitteeinSDFreviewprocessesfor(Aganang&Blouberg)

120 LANDUSESURVEY/LANDAUDITPROJECT

AGANANG,BLOUBERG,LEPELLENKUMPIANDMOLEMOLE LANDAUDIT

Achievements

• Assistedtheabovelocalmunicipalitieswithlanduseaudit.

PLANNINGMANAGMENTTOOLS

GISNEEDSASSESSMENT,PROCURESOFTWAREEXTENSIONSAND TRAINING Achievements

• TGISwasappointedinJuly2009toassistwiththisproject. • Projectinceptionmeetingwasheldonthe19 th August2009todiscussandapprovethe projectplan. • Basedatapresentationmadeandreportsubmitted

GISPLANNINGMANAGEMENTTOOLS Achievements

• Tenderpassedadjudicationphase,awaitingappointmentconfirmation. CAPACITYBUILDING:URBAN&REGIONALPLANNING&GIS Achievements

• Theprojectwasattendestage. • Memo to appoint University of Venda to undertake training has been approved June 2010

COMMUNITYBASEDPLANNING(CBP) Achievements

• CompletedwardplanningprocessinMolemole. • TheprocessofelectronicallycapturingthecompletedwardplansofMolemoleis completed. • Aganangwardplanshavebeenverifiedwithwardfacilitatorsandofficialsinpreparation fortheirimplementation. • AnactionplanhasbeendevelopedforimplementationofwardplansinAganangfor 2011/12financialyear • LinkedCBPinformationtoIDPinbothMolemoleandAganang

121 STAKEHOLDERANDPARTNERSHIPDEVELOPMENT Achievements • MemorandumofUnderstanding(MoU)hasbeensignedbytheUniversityofVendaand Limpopo. • TheMoUsfocusoncollaborationbetweenthepartiesontheareassuchasresearch, training,socialdevelopmentandtechnical.TheMoUisonbehalfoftheentire municipality. POLICYDEVELOPMENTANDREVIEW Achievements • Finalized20draftpoliciesforconsultationatdifferentportfoliocommitteesbefore approval • DraftingofPolicyframeworkinprogress • Policyreviewanddevelopmentworkshopconducted • Establishedapolicyreviewanddevelopmentsteeringcommittee RESEARCHANDDEVELOPMENT Achievements • Draftresearchframeworkisavailable • DevelopmentoftheDistrictresearchagendaisinprogress • AnalysisphaseoftheIDPwasupdated. • Theserviceprovidertoconductthesocioeconomicimpactassessmentstudyis appointed. • TheworkshoponSouthAfricanstatisticalQualityAssessmentframework(SASQAF) wasofferedbyStatsSA. MONITORINGANDEVALUATION Achievements • ThedraftMonitoringandEvaluationframeworkisavailable,andstilltobealignedwith theoutcomebasedM&EframeworkfromthePresidency • FirstdraftM&Eframeworkimplementationplaninplace • DevelopmentoftheindicatorframeworkforM&Einprogress. • DraftorganisationalSDBIPswasdeveloped.

LOCAL ECONOMIC DEVELOPMENT

INVESTMENTPROMOTIONANDSUPPORT

HOSTINGOFINVESTORCONFERENCE

Progress

• ThehostingoftheinvestorconferencehasbeendeferredtoOctober2010.

ESTABLISHMENTOFCAPRICORNECONOMICDEVELOPMENTAGENCY

Progress

• ShiftImpactAssessmentReportwasadoptedbyCouncilinNovember20009. • PublicParticipationProcesswasconductedfrom4November2009to4February2010.

122 • ServiceproviderwasbusywithincorporationofcommentsforFeasibilityReport,3Year BusinessPlanandRequirementsforInterimDriver.

INVESTMENTANDMARKETINGSTRATEGY

Progress

• Counciladoptedthedocumentonthe30 th September2009. • Feasibilitystudiescompletedontheprioritisedprojects.

CREATIONOFSKILLEDLABOURPOOL

DATABASEOFUNEMPLOYEDGRADUATES

Progress • Databasecompleted. • Implementationplandeveloped. • Databasecurrentlyusedinternally • Qualificationbookletdeveloped.

CAPACITYBUILDINGFORSMALLTRADERS

Progress

• Trainingcompleted. • 304traderscompletedtrainingonBusinessmanagement • SmallTradersGraduationCeremonywasheldonthe25November2009. • Customersatisfactionsurveyfinalised.

PROMOTIONANDSUPPORTOFMAJORSECTORSINTHEDISTRICT. (AGRICULTURE) DISTRICTAGRICULTURALPLAN Progress

• Strategydevelopment100%complete. • Hubdevelopment100%complete.

LANDREFORMPROJECT Progress

• Projectcompleted.

123 FRESH PRODUCE MARKET Progress

Background,CDMwasverballymandatedbytheofficeofthePremiertosecureland(from Transnet)andassociatedinfrastructureforthedevelopmentoftheLimpopoFreshProduce Market.Themandatewaslaterwithdrawn.

• CDMnowonlyamemberoftheprovincialsteeringcommittee

WORKSHOPSONSPATIALBASEDPLANNING

Progress

• NoneastheSpatialDevelopmentFrameworkwasnotcompleted.

TOURISMDESTINATION

DEVELOPMENTOFCOMPOSITETOURISTGUIDE

Progress

• Tourismplandeveloped • Draftbrochuredeveloped

CAPACITYBUILDINGOFTOURISMAMBASSADORS

Progress

• Trainingmanualdeveloped • 11tourismambassadorstrainedandgraduatedinMay2010.

EXHIBITIONOFTOURISMPRODUCTS

Progress

• ExhibitedattheMarulaFestivalinPhalaborwafromthe25 th 28 th February2010. • ExhibitedatPolokwaneshowonthe3 rd 7th March2010. • ExhibitedattheTourismIndabafromthe07 th to11thMay2010.

SUPPORTOFCALENDARMONTHS

Progress

• HostedtheSpringFestivalinSeptember2009.

PLACEMENTOFUNEMPLOYEDTOURISMGRADUATES

Progress

• Submittedalistof30unemployedtourismgraduatesat  RoyalLuxuryAccommodation  FusionBoutiqueHotel

124  TivekagameLodge  TheRanchHotel • TivekaGameLodgeappointedtwounemployedtourismfor2010FifaWorldCup. • RoyalLuxuryAccommodationappointedonegraduateasareceptionist.

CAPACITYBUILDINGTOURISMPROJECTBENEFICIARIES

Progress

• SupportedLEDETinthetrainingof15Motumoprojectbeneficiariesinbusiness managementskills. • Trained25tourismproductownersinBusinessSkillsmodule1,2,&3(Training providedbyTourismEnterprisePartnership)

OPERATIONALISATIONOFMAFEFETRADITIONALTOURISMCAMP

Progress

• Infrastructuredepartmentconductedaquantitysurveyofthecampandsubmitteditto LEDdepartmentthecostedreportforthepurposeofrevampingthecamp. • Revampingwillstartinthenextfinancialyear.

OPERATIONALISATIONOFMOTUMOTRADINGPOST

Progress

• HeldameetingwithMachakaTraditionalCouncilandtheExecutiveMayoronthe15 th May2010 • WrotealettertotheMachakaTraditionalCounciloutliningtheprocesstobefollowedin evictingthe“caretakerManager”

CHAPTER 9. EXECUTIVE AND COUNCIL

EXECUTIVEMAYORSOFFICE

GoodGovernanceAndPublicParticipation Achievements • A visit to various projects around ward 6 in Blouberg municipality was undertaken by Councillorsonthe21 st September2009,inpreparationfortheCouncilOutreach. • Council Outreach was successfully planned for and hosted in Berg en Dal, Ward 6, BloubergMunicipalityon30 th September2009. • ConvenedaCouncillorsworkshopon“MajorUrbanPovertyChallengesIdentification”in collaborationwiththeSouthAfricanInstituteforRaceRelations. • Development of an action planfor public participation in January 2010(All documents dueforpublicparticipationtobeforwardedtoOfficeoftheSpeaker). • Coordinatedwarddelimitationsprocesswithlocalmunicipalities.

125 o SitevisittoInfrastructureandLEDprojectsinpreparationsforCouncilOutreach inLepelleNkumpionthe26 th January2010. o SuccessfullyheldCouncilOutreachatMogotoinZebedielaon29 th January2010. o Successfully held preplanning meetings on public consultations on Bylaws in localmunicipalities. • Preparations for a public hearing on Sepedi vs. N. Sotho by the Parliamentary CommitteeonConstitutionalReview. • PublichearingonAnnualReportforthefinancialyear2008/09washeldon03March 2010. • ProvidedtechnicalandadministrativesupportduringOversightCommitteemeetingsand projectsvisittolocalmunicipalities. • Coordinated and supported IDP Review consultations with Stakeholders including Councillors,3 rd Peoples’AssemblyandIDPRepForum. • Hosted the 3 rd Peoples’ Assembly/IDP Rep Forum in Polokwane municipality, Oasis Lodge. • Variousstakeholdersweremetandsupported. • The Executive authority graced over 120 ceremonial and official functions including amongst others, as highlights, hosting welcome home ceremony for Caster Semenya, afterwinningaGoldmedal,acivicdinnerfortheSouthAfricanNationalTBAssociation (SANTA)atitsnationalAGMhostedinthedistrict,PeterMokabaCupon23 rd January 2010,andXeroxRugbyCupon30 th January2010.

GoodGovernanceAndPoliticalLeadership Achievements • MayoralCommitteewasheld(10)tentimesinthereportingperiodandduesupportwas provided. • Themunicipal council met (7) seven times (including February Special Council) in the reportingperiodandduesupportwasprovided. • The District IGR Forum met 3 times in the reporting period and due support was provided • Speaker’sforumwasheld(2)twiceinreportingperiodandduesupportwasprovided. • District ChiefWhips Forum met (5) five times in the reporting period and due support wasprovided. • The Districts’ House ofTraditional Leaders Forum met (8) eight times in the reporting periodandduesupportwasprovided.

OfficeSupport Achievements • Politicalfunctionaries(i.e.EM,SpeakerandtheChiefWhipaswellastheMayoral Committee) were generally well supported and communication maintained throughoutprogrammes/deployments. • EMtransportedwellandpersonalprotectionprovided. • Communication with media was kept through relevant municipal programmes yielding positive publicity. Relationship with key media houses was renewed for publicrelationsinsupportofCouncilactivities. • BriefingwasprovidedtotheExecutiveAuthoritybeforemediainterviews • The Executive Authority was well supported with speeches/briefing notes, where necessary. • Administrative documentation in general was timely and effectively attended to accordingly.

126 • Various stakeholder correspondences were referred to Municipal Manager’s Office andmunicipaldepartmentsforprocessingandfeedbacktotheOEMprovided. • AllHRmatterswerehandledaccordinglyintheunit.

HIV/AIDSUNIT

Achievements  Forty(40)CBOforummeetingsweresupported.  Three(3)DistrictCBOforummeetingsweresupported.  SupportwasprovidedtothelaunchingoftheHumanaPeopletoPeopleprogramme atMentzClinic  Newpartnershipswerecreatedwith18organisationsandgovernmentdepartments  TheDistrictTraditionalHealthPractitioners’(THP)Committeewasestablishedand THPs were encouraged to participate in the HIV Counselling and Testing (HCT) masscampaign.  Four Technical team meetings were held with HIV and AIDS government departmentsandotherstakeholders  Three District Health Council meetings were supported in August 2009, October 2009andMarch2010.  LepelleNkumpilauncheditsLAConthe21 st May2010.  ThreeProvincialHIV&AIDSSectormeetingsheldinJuly2009,October2009and February2010. Challenges  DistrictDepartmentofSocialDevelopmentrepresentativesnotfullysupportingour programmes  LACmembersnotfullycommittedtotheirrole  DelaysinlaunchingLACs  A number of caregivers are leaving their organisations due to non payment of stipends,especiallyatdropincentres  Mushrooming of organisations still a problem for CBOs, as is lack of funding and trainingandinadequatestructures.

Intervention  The various challenges raised by the District forum members were referred to the Information sharing meeting between CDM, Councillors and representatives from variousDepartmentsincludingHealthwhichwasheldon01June2010.  OngoingfollowupsontheLACestablishmentatPolokwaneandMolemolearebeing madebytheunitofficers.  TheLepelleNkumpiofficialwasrequestedtofollowupwithnoncommittedmembers andtheCommunityLiaisonOfficerforBloubergwastaskedwithreplacingmembers whohavequit.

CapacityBuilding Achievements  175CBOrepresentativesreceivedincomegeneratingprojecttraining  Training for CBO board members was coordinated by the HIV Unit and NPO Directorateofficialsfromthe1519March2010  TheOVC’sskillstransfercampwasheldatHarryOppenheimerHighSchoolfrom04 08January2010  CBO representatives were given a doortodoor campaign induction during CBO Forummeetings

127  A workshop on immunisation, governance, debriefing, finance and general project managementwasheldfor228HBCcaregivers  50caregiversweretrainedonaBasicHIV&AIDScourseattheResourceTraining CentreinPolokwanefromthe26 th –28 th August2009.  63TraditionalHealthPractitionersfromacrossthedistrictweretrainedonHIV&AIDS andTB  Atotalof30PLWAwereworkshoppedatColJohnLodgeonthe3 rd June2010.  100 nonfunded home communitybased care organisation representatives were trainedonCBOadministrativepractices

Treatment,CareAndSupport Achievements

 LinkagemadebetweenMamothabadiloDisabledCentreandBulaMahloHBC.  SupportwasprovidedtothePASPWAstakeholders’functionheldinNovember 2009.  SupportwasprovidedtoaWorldAIDSDayCelebration,OVCs’birthdayparty, youngwomen’sawarenessworkshop,libraryinductionforCBO,andDICHIV awarenesscampaign  Distributed information and condoms at the Polokwane Show and the Marula Festival.  MadibaDaywascelebratedatMponegeleKeItireleDIC.  Funding applications for the National Lottery Distribution Trust Fund, US Embassy,AustralianDirectAidProgrammeandEskomweredistributedatthe CBOForummeetings.  Makgofecommunitymembersinterestedinestablishingastepdownfacilityfor TB,HIVweresupported.  With gender coordinator and two social workers, site visits conducted at Montina Farm crèche which culminated in an awareness campaign in partnershipwithnumerousgovernmentdepartments.  Mediatedbetweenfourorganizationswhereissuesposingaschallengeswere amicablyresolved  Intervention conducted at Itekeng DIC at LepelleNkumpi on the issue of financialmismanagement.MatterforwardedtoDoSD.  IntervenedatKehlatseDICwhereitwasallegedthattheIndunatookawayfood parcelsfortheDICmembers.Thematterwasamicablyresolved.  SupportprovidedforthepreparationandfuneralofHIVsupportgroupmember andHIVAmbassadorEgladLethekgaon13March2010.  Universitygoingorphanassistedwithschoolfeesanditemsneededforschool.  HIV Unit assisting with investigations into challenges faced by children at BeulahShelterforStreetChildren.  Supportprovidedto170peoplelivingwithHIV(PLHIV)on4JuneatJackBotes HalltocommemorateHIV.

Challenges  SomeCBOsnotalwaysresponsivetoourassistance.  Organizationsusuallysubmitrequestsforsupportlate.  BeulahShelternotproperlylookingafterchildrenundertheircare.  Nonfundedorganizationsstruggletoattendmeetingsduetolackofmoneyfor transport.Transportallocationswereunabletobemadethisfinancialyear.

128 Prevention Achievements  Support provided to the launch of the La Mmangata Moringa herbal tree at Sedikong sa Lerato DIC on 31 July 2009. MMC Keetse Nelson gave the keynoteaddressatthelaunch.  Molepo Youth Development Club was given items to assist with its HIV and AIDSinformationdeskproject.  AneducationaltalkwasconductedatMontMarefarm–PolokwaneMunicipality onthe13 th May2010.  Internally,staffwereinvitedtoaWorldAIDSDay/H1N1/Genderbasedviolence presentationinNovember2009,a16DaysofActivismcampaigninDecember 2009, STI/Condom in February 2010 and HIV Candlelight Memorial sessions wereheldineachsatelliteofficeandBiccardinMayandJune2010.  CDM’sYouthUnitwassupportedduringitsYouthHCTCampaigns.  TwoplenarymeetingsprecededanHIV&AIDS,HumanTrafficking,Alcohol& Drug Abuse and Teenage Pregnancy awareness campaign at Setumong – Moshateonthe09June2010.  The unit partnered with the Special Focus unit to launch an internal Men’s Discussionforumonthe31June2010.  World Cup prevention proposal made to the 2010 Provincial Technical Team meeting held on 26 January 2010. The proposal was handed over to the DoHSDforimplementation.  DistributedHIVinformationinpartnershipwithReligiousHTAandtheDoHSDat thedistrictPVAatEldorado.

Challenges • Department of Health had a challenge with their budget, resulting in lastminute requeststotheHIVUnit • HCTnotofferedatallcampaignsduetotheDoHSDnotattendingdespiteadequate notification

Planning Achievements • TwentyoneCBOsmonitoredandevaluated • HIVandAIDSrelatedstatisticsobtainedfromvarioussources • CBOdatabaseisupdatedandhasbeendistributedtovariousorganisations. • Aganang, Blouberg, LepelleNkumpi and Molemole maps have been printed and distributed to the Elizabeth Glaser Pediatric AIDS Foundation, Humana People to People,theCBOForums,ChildlineLimpopoandLovelife.Pertinentdatagivento GISOfficertomap. • Teammeetings(staffmeetingsheldregularlyamongstunitofficersandmanager). • Exchangeprogrammeheldfrom2628May2010for22DICcoordinatorsandcarers atMakotseWomen’sClubinLepelleNkumpi. • CBOs briefed and one hundred fifty attended the 28 April 2010 CBO/NGO Public ParticipationsessionheldatCosmoLeisureLodge.

129 COMMITTEES

Achievements (a) 2009/10CorporateCalendarwasdevelopedandreviewedquarterly. (b) A total number of 148 meetings were successfully coordinated and secretariat supportwasprovided. T  MinutesandresolutionsofmeetingswereemailedtoManagementwithinfivedaysafter themeetingsforimplementationofresolutions.  Remuneration Report on the annual salary increase of Section 57 Managers was developedandtabledtoMayoralCommitteeforapproval.  WaterSummitreportwasdevelopedandreferredtorespectivedepartments.  Projectvisitreportwasdevelopedandreferredtorespectivedepartments  ReportoftheOversightCommitteeontheAnnualReportwasdevelopedandtabledto Council.

Challenges PostponementofCommitteemeetingsduetolackofquorum. ImplementationOfResolutions Achievements

Resolutionsweredevelopedwithin5daysafterthemeetingsandemailedtogetherwiththe minutestoSeniorManagersforimplementation.

 Progress on implementation is followed up with Senior Managers and feedback was tabledtocommittees.  Annual Outstanding resolutions of all decision making structures were developed and continuouslyupdatedatAuditSteeringCommitteemeetingseveryFriday.

INTERGOVERNMENTALRELATIONS

Achievements • Heldthree(3)DistrictIGRForumsmeetingsintheyearunderreview. • Seven(7)MM’sForummeetingsweresuccessfullyheld. • Two(2)Speaker’sForumswereheld. • TheDistrictChiefWhip’sForum ME tfive(5)timesinthereportingperiod. • The Districts’ House of Traditional Leaders Forum ME eight (8) times in the reporting period. • Three(3)DistrictEnergyForumswereheld. • WaterandSanitationForumsmetfour(4)times. • InternalAuditor’sForummetonce(1)duringtheperiodunderreview. • Six(6)CommunicationForummeetingswereheld. • Two(2)SupportStaffmeetingsheld. • Five(5)RoadsandTransportForummeetingswereheld. • A Comprehensive Assessment of the state of Capricorn District Municipality was produced. • Nine(9)G&AClustermeetingswereheldandattendedandreportswerecirculatedto bothlocalmunicipalitiesandCDMseniormanagers. • Three (3) meetings coordinated by SALGA were attended i.e two national and one provincial.

130 • InputsonthereportonassessmentofLocalmunicipalitieswithinCapricornDistrictwere forwardedtotheDepartmentofLocalGovernmentandHousing. • TheMidJanuarysection72reportwasconsolidatedandsubmittedtotheDepartmentof LocalGovernmentandHousingasrequired. • ADistrictwideWaterSummitwasheldonthe06November2009.

OfficeSupport Achievements: • Theofficemanagedtoensurethatalldocumentsreceivedwereattendedtowithinthree daysturnaroundtime. • Filingofdocumentsandforwardingofallmemorandumstobothinternalandexternal clientswasdoneduringthetimeunderreview. • Management of leave and other related human resource management issues were carriedout. • Ensuringthatmeetingsofthemunicipalmanagerarewellorganized. • Receivingandfollowuponallqueriesandinquiriesreceivedbytheoffice. • ImprovefillinginMunicipalManager’sOffice. • Ensuringthatthesubmissionformatwasadheredtobyalldepartments. • ReadcorrespondencereceivedandadviseMunicipalManageraccordingly. • Followuponissuesreportedtotheoffice.

SPECIAL FOCUS

CHILDREN DEVELOPMENT PROGRAMMES

Achievements

Children’s Rights Campaigns

• Partnered with Childline Limpopo on the Walk against child Abuse and the ChairpersonoftheSpecialFocusportfolio–ClrSuzanChegoaddressedthechildren andofficiallyreleasedtheballoonsrepresentingthemissingkids. • Twelve (12) schools were identified by local municipalities where child trafficking campaignswereconductedbyChildlineLimpopovolunteers.Theteammanagedto see3557learners,1834girls&1723boysgrade6–8. • ThecampaignswererolledinpartnershipwithChildlineLimpopoandtheposterson Children’s Rights and responsibilities, Childline tollfree number as well as the brochuresonchildprotectionweredistributedtothelearnersandeducators. • OntheimpactassessmentofcampaignsinpartnershipwithChildline,providesthe districtwithnumberandtypeofcasesreportedandhowtheywereresolved.Forthe monthNovember12casesfor10boysand2girlswerereportedondifferentabuses. • Theeducators(10femalesand6males)werealsoaddressedonChildTrafficking andChildProtectioninpreparationfor2010FIFAWorldCup. • Seventeen(17)caregivers(allfemales)fromPonelopeleDropinCentreweretrained by Childline Limpopoon Child Protection, Child Trafficking as well as counselling Skills. • Twenty(20)guardians,allfemalesfromNthekgengDrop–in–Centreweretrained onProtectionoftheChild,ParentalSkillsandChildTraffickingbyChildline. • Sixty (60) people (parents, SGB’s & Educators) 45 females & 15 males were addressedonChildTraffickinginpreparationof2010worldcup.

131

GenderDevelopmentProgrammes Achievements

Gender Forum • GenderForumwhereallinstitutionsdealingwithsocialissueswereinvolvedwasheldon the1 st June2010.Thepurposewastoensureservicedeliverythroughimprovementof communicationandintegrationofservices.(reportperinstitutionattached)

National Women’s Day Celebration

• Providedfivebusses,oneperlocalmunicipalitytoattendtheprovincialwomen’sdayin Marblehall.

DISABILITYDEVELOPMENTPROGRAMMES

Achievements: • DraftActionPlanisinplace. • Anawareness workshop wasarrangedforforty blind womenonequalityandchild maintenance guided by the women’s month theme, “Together empowering women towardsdevelopmentandgenderequality”. • FacilitatedthesportsclassificationoftheCapricornClubforpeoplewithdisabilitiesin order to make sure that they are able to compete in relevant sporting codes and categories. • Visited the Mamothabadilo Physically Disabled Centre on the 16 th of July 2009 in response to a request submitted to the Executive Mayor and the HIV & AIDS Coordinatorsubsequently. • VisitedReakgonaCentrefortheIntellectuallyImpairedtoassesstheenvironmentfor supportandfurtherdevelopedafundingproposalbasedonthefindings. • Project profiling is in progress, Polokwane, Aganang and Blouberg have been covered.

DisabilityAudit • InlinewithCDM’smonitoringplan,anauditwithSALGAwasmadeintheinstitution onthe20 th ofOctober.Thefocuswasonaccessibilityofthebuildingandreasonable accommodationofpeoplewithdisabilitiesintheinstitution.

HIV/AIDS Workshop: 03 December 2009

• AspartoftheDisabilitymonthprogramme,,anHIVworkshoptargeting50disabled personswasheldonthe30November2009.Theaimoftheworkshopwastoraise awarenessonHIVrelatedissuesamongstpeoplewithDisabilities.

132 Disability Open Day: 04 December 2009

• Disability Open Day to targeting deaf people because it has cometo our attention that deaf people are somehow discriminated against, so the day was to let CDM employeestosharewiththemtheexperiencesofsignlanguageanditsdifficulties. Targetnumberwas100and110attended.

BusinessEmpowermentWorkshop The workshop was a corrective from 27 th November 2009 aiming at highlighting peoplewithdisabilitieswithprocessoftenderingofpricingsincethechallengewas thatmostofthemareeitheroverorunderpricinghencetheywerefoundnottobe givenopportunitytoprovideservicesinthemunicipalitytargetwas30people&only 20attended.

• 269disabledpersonsweretransportedtoProvincialDisabilityDayCelebrationatKa Malamuleleonthe3 rd December2009. • Thedisabilitysensitisationplanfor20092010isreadyforapproval.(seeannexure1).

OLDERPERSONSDEVELOPMENTPROGRAMMES

Achievements • OnlyoneOlderPersonsForummeetingwasheldonthe8 th ofJuly2009. • SekutupuOldAgehomewasvisitedtomonitortheplaceinresponsetoarequesttabled bytheCapricornDistrictOlderPersonsForum. • VisitedGaSebatiandDihlopanengvillagesinresponsetoareportedcaseofabuseof elderpersonsbyAgeinActionandthedistrictolderperson’sforum. • Participated in the Older Person’s abuse management training on the 21 st of August 2009inOasislodgefacilitatedbythedepartmentofHealth&socialdevelopmentand officeofthePremier. • ParticipatingintheProvincialOlderPersonsDay • TheSpecialFocusUnit,OfficeoftheMayortogetherwiththeMayorhimselfhelda meetingonthe4March2010aimingtocomeupwithastrategyofcoordinatingand mainstreamingissuesofOlderPersonsintheDistrict. • OlderPersonsLuncheonClubsinPolokwaneProfiles,eighteenprojectswereprofiled accordingtonameoftheproject,physicaladdress,contacts,membership&activitiesthe projectisrendering.

Older Persons Strategy

• DraftOlderPersonStrategyisinplace.

Profile for older persons

• OlderPersonsLuncheonClubsinLepelleNkumpiProfiles,nineprojectswereprofiled accordingtonameoftheproject,physicaladdress,contacts,membership&activitiesthe projectisrendering. Older Persons Month

TheDistrictpartneredwithLoveLifeonGogogettersfocusingon:

133 • ElderlyRights&EducationofHIV/AIDSissues. • Disastermanagement • ProtectionofOlderPersons • CoordinationofLocalstoattendtheProvincialOlderPersonsDay GrandParentsday • The Coordinator & the Counsellor responsible for older persons attended Age in Action National Conference from the 06 –08 October 200 in Bloemfontein the conferencefocusedon: • OlderPersonsareHumanRights. • HealthTalkwithOlderPersons • TheimportanceofVCTforolderpersons • TheimpactofHIV/AIDSonOlderPersons. • AllOlderPersonsProjectswererequestedtosubmittheirneedsfortheDistrictto assistthemandthishowtheysubmittedandverificationvisitswasalsodonein sometheprojects.

YOUTHDEVELOPMENTPROGRAMMES

Achievements

• Coordinated125youngpeople,25perlocalmunicipalitytoattendtheProvincialYouth ParliamentfacilitatedbytheLimpopolegislature. • Participated in the drafting of the National Youth Economic Empowerment Strategy facilitated by the national department of trade and industry. Coordinated 18 young peoplefromthedistrict,3perlocalmunicipalityand3fromthedistrictasperinvitation. • Coordinatedthat30youngpeoplefromAganangandBlouberg(15each)participatein theTalentsearchinmusicprojectfacilitatedbythedepartmentofSports,Arts&Culture. • 11malesand9femalesYouthhasbeingemployedandTrainedatinfrastructureproject atMolemoleMunicipalityforRoadConstructionD1200 • 20 community members have been awarded bursaries for different fields of study, 9 females&11males’i.e.45%females&55%males.

INTERNALAUDITSERVICES

Achievements TheInternalcontrolauditscompletedandthereportsissuedtomanagement: • HIV&AIDS • EnvironmentalManagement • OccupationalHealth&Safety • SupplyChainManagement • Committees • 1st ,2 nd and3 rd PerformanceManagementAudit • BursaryAdhocAudit

TheInternalcontrolauditsonprocess: • IDPreview • Communication • LabourRelations

134 • Tourism

• Adhoc audit on internal control review for internal and external bursaries and managementreportswereissuedtomanagement. • Three year strategic audit plan completed and approved by the AC on the 11 August 2009andpresentedtomanagement. • Annualriskbasedcoverageplancompletedandapprovedbythecommitteeonthe11 August2009andpresentedtomanagement. • TheAuditCommitteemanagedtothoroughlyreviewtheAnnualfinancialstatementsfor 2008/9 financial year before they could be submitted to Auditor General on the 31 st August2009 • TheAuditSteeringCommitteewasestablishedsincethebeginningoftheexternalaudit inAugustandhadsinceheldthirteen(13)meetings. • AuditCommitteeadvertisedandinterviewsheldsuccessfully. • NewAuditCommitteewasappointedbyCouncilinDecember. • HalfyearlyPerformanceManagementAuditreportcompleted. • SpecialAuditCommitteemeetingtoconsidertheannualreportwassuccessfullyheldon the19January2010. • Successfully coordinateand held Audit Committee Inauguration and induction meeting onthe31March2010. • ContinuetoprovideefficientsecretarialandadminsupporttotheAuditCommittee. • Provided training to both old and new Audit committee on King III Cooperative GovernanceReportandtheroleoftheAuditcommitteeandInternalAuditwithinlocal government • Audit Committee agreements/contracts have been signed with new Audit Committee Members. • QualityreviewconductedandachievedcompliancestatusunderdistrictcategoryC. • Presented the remuneration structure for the Audit committee which was approved by Councilonthe31March2010. • AssistedinOrganizationalRiskAssessmentprocesses • Observed30tenderopeningsessionsfortheyearunderreview • Projections of projects and budget for next financial year 2010/11 were identified and presentedatStrategicPlanningSession. • Subsistenceandtravellingclaimswerereviewedforcompleteness,accuracyandvalidity andreportpresentedtotheAccountingOfficerforcorrectiveaction. • RegularfollowupmeetingsheldwithFinanceDepartmenttomonitortheprogressonthe implementationofAuditorGeneralrecommendations. • AssistedincoordinationoffraudawarenesscampaignprocessesatLepelleNkumpiand PolokwanelocalMunicipalities • ConductedannualPerformanceassessmentfortheyearunderreview. • Attended/participatedintheProvincialIGRatMopaniDistrict. • Drafted3yearrollingplanforinternalauditandithasbeennotedbytheauditcommittee for2010/11 • Draftedannualinternalauditplanandithasbeennotedbyauditcommitteefor2010/11. • ConductedphysicalverificationofemployeestoallCDMemployees. • Weeklyfollowupmeetingsheldwithseniormanagementtomonitortheprogress. • AuditCommitteemeetingheldonthe31May2010toconsiderinternalauditreports. • Stockcount(Consumablesandwater)conductedonthe30June2010. • Supervisecashcountconductedonthe30June2010 • Performanceagreementsfor2010/11prepared. • SDBIPfor2010/11draftedandsubmitted.

135 RISKMANAGEMENTSERVICES

Toprotectthemunicipalityfrompotentialrisks

Achievements • Organisationalriskregisterfor2010/11isupdated • Investigatedirregularitiesreportedonthefraudhotline. • Reports from Fraud hotline referred to the Municipalities for preliminary investigations. • Conducted preliminary investigations into allegations of irregularities within the municipalities. • QualityreviewconductedbyProvincialTreasuryandreportreceived. • ConductedworkshopsonOrganisationalriskassessmentduringStrategicSession. • Conductedawarenessonriskmanagementtomanagementandstaff. • RiskSteeringcommitteewassuccessfullyheldinFebruary2010. • 28callswerereceivedonthefraudhotline • Sixdraftinvestigationreportswereissued. • Attended/participatedintheProvincialIGRatMopaniDistrict. • Projectionsofprojectsandbudgetfornextfinancialyear2010/11wereidentifiedand presentedatStrategicPlanningSession. • PresentedthedraftorganisationalriskprofiletoCouncillorsonthe23March2010. • FinalriskassessmentreportwascompletedandpresentedtoAuditCommittee. • SDBIPFOR2010/11draftedandsubmitted. • AuditCommitteemeetingheldonthe31May2010toconsidertheriskmanagement reports. • Provideadvisoryroleintheweeklyauditsteeringcommitteemeetings. • ConductedinductiontoTubatseMunicipalityRiskOfficer SUPPORTTOLOCALSONAUDIT&RISKMATTERS Achievement • Conducted workshop on risk management strategy to Aganang Local Municipality Councillors. • Planning session for risk assessment workshop and fraud awareness campaign were successfullyheldforbothPolokwaneandLepelleNkumpiLocalMunicipality. • ConductedorganisationalriskassessmentatLepelleNkumpilocalmunicipality. • AssistedintheinterviewatPolokwaneLocalMunicipalityfortheSeniorInternalAuditor’s position. • Conducted workshops on fraud awareness campaign for both LepelleNkumpi and PolokwanelocalMunicipality. • AssistedLocalMunicipalitieswiththecompletionofInternalAuditstatusquotemplate. • DistrictIGRmeetingsuccessfullyheldon26October2009.

COMMUNICATIONSSERVICES

Achievements

•Noticeboardsupdatedwiththefollowinginformation: •MogarafaseandMgoboziproduced •CampaignsSupportedandadvertising •Promotionofaccesstoinformation

136 •Websiteupdated Good governance and public participation

Achievements

• AttendedthedraftCorporateIdentityManualpresentationfortheDLGHandmadeinputs • AttendedAganangMunicipalMediaBriefing • AttendedtheProvincialCoreTeamforcommunicationsandpresentationinGCIS • LookedintodesignandtranslationofIDPsinbothSepediandEnglish • AssistedindesigninganewsletterforLepelleNkumpiMunicipalities • DesignandprintedpostersforBloubergLocalMunicipalityaroundPVA

Stakeholderrelationsandcustomercare

Achievements • Converteddisasternumbertotollfreenumberwhichhasbeenapproved • ContinuedtoprovidedsupporttoCustomercareservicesandthewalkins • Popularizedthesuggestionsbox • OrganizedtransportforstafftojointheopeningofSWCinEldoradoPVA • Organizedascreenatthechamberforinternalstafftoviewsoccerwhilestillatwork • Displayedbannersattheevents • Promotionalmaterialsdistributedinallevents • Launched the BathoPele Forum which was graced by the EM and Mayor of Lepelle NkumpiandMolemolemunicipality

2010DEVELOPMENTS

• Playaparticipatoryroleinthegameswhihcwereplayedinthisprovince. • WasamemberoftheIntermenistrialcommittte • CoordinatedaPublicVieiwingAreainbloubergMunicipality • Assistinmobilisingpeopletoattendtostadiums,apendsignaturenexttobigjersy,mass mobilisationinthedistrictandmanymore

137 REPORT OF THE AUDIT COMMITTEE

We are pleased to present our report covering the financial year ended 30 June 2010.

Audit Committee Members and Attendance

The Audit Committee was appointed with effect from 23 June 2003 and the new Audit Committee was appointed with effect from 11 December 2009. The new audit committee assumed duty in January 2010 with the formal handover/induction/inauguration held on 31 March 2010.

The meetings attended during the year under review by both the outgoing members and the new members were as follows:

Audit Committee Members Total of Meetings To tal of Audit Committee held Meetings attended

Mr. DN Nkadimeng(Outgoing 5 3 member)

Mr. J Sithole (Served on both 5 5 new and old committee)

Mr. D Dombo(Outgoing 5 3 member)

Ms. KV Mashigo (Outgoing 5 3 member)

Ms. N Mabapa(Outgoing 5 3 member)

5 3 Mr.VK Chuene(Serving new Committee Member)

5 2 Mr. S Mhlarhi Serving (Serving new Committee Member)

5 2 Mr. MJR Mpai (Serving new Committee Member)

Ms. MA Mokate (Serving new 5 2 Committee Member)

Ms. MA Mphahlele( Serving new 5 3 Committee Member)

138 The Audit Committee adopted appropriate formal terms of reference as contained in the Audit Committee charter approved by the Municipal Council and has regulated its affairs in compliance with the charter and has discharged all its responsibilities as contained therein.

The Effectiveness of Internal Control Systems

The system of internal control is designed to manage risk in the municipality and to ensure that the municipality is able to achieve its objectives and goals. Scrutiny of Internal Audit and Auditor-General of South Africa’s reports indicates that there are weaknesses in the internal control systems of the municipality which require significant improvements. Management has committed to address these issues without delay.

Internal audit function

Despite human resource capacity constraints, we are satisfied that the internal audit function is operating effectively and that is has addressed the risks pertinent to the function of its audit.

The Quality of in year management and monthly/quarterly reports

The Audit Committee is satisfied with the content of the reports issued by the municipality during the year under review.

Evaluation of Financial Statements

The Audit Committee has:

• Reviewed and discussed the audited Annual Financial statements to be included in the Annual Report • Reviewed the Auditor-General of South Africa’s management report and management’s responses thereto; • Reviewed changes in the accounting policies and practices; • Reviewed compliance with legal regulatory provision, and • Reviewed significant adjustment resulting from the audit

We concur with and accept the Auditor-General of South Africa’s report on the Annual Financial Statements, and are of the opinion the audited Annual Financial Statements should be accepted and read with the report of the Auditor-General of South Africa.

On behalf of the Audit Committee

Mr. Jerry Sithole (Chairperson)

139