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Annual Report 2011/12

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Annual Report 2011/12 CONTENTS REVISED ANNUAL REPORT TEMPLATE……………………………………………………………………………P4 CHAPTER 1- MAYOR’S FOREWORD AND EXECUTIVE SUMMARY……………………………………..P5 COMPONENT A: MAYOR’S FOREWORD………………………………………………………………………….P5 COMPONENT B: EXECUTIVE SUMMARY ………………………………………………………………………P11 1.1 MUNICIPAL MANAGER’S OVERVIEW…………………………………………………………………………P11 1.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW……………P12 1.3 SERVICE DELIVERY OVERVIEW…………………………………………………………………………………P17 1.4 FINANCIAL HEALTH OVERVIEW………………………………………………………………………………..P18 1.5 AUDITOR GENERAL REPORT ……………………………………………………………………………………..P19 1.6 STATUTORY ANNUAL REPORT PROCESS…………………………………………………………………….P19 CHAPTER 2: GOVERNANCE………………………………………………………………………………………………..P21 COMPONENENT C: GOVERNANCE………………………………………………………………………………….P21 2.1 POLITICAL GOVERNANCE…………………………………………………………………………………………….P21 2.2 ADMINISTRATIVE GOVERNANCE…………………………………………………………………………………P29 2.3COMMUNICATION, PARTICIPATION AND FORUM………………………………………………………..P29 2.4 IDP PARTICIPATION AND ALIGNMENT…………………………………………………………………........P30 COMPONENT D: CORPORATE GOVERNANCE………………………………………………………………….P30 2.5 SUPPLY CHAIN MANAGEMENT…………………………………………………………………………………….P30 2.6 BY-LAWS……………………………………………………………………………………………………………………….P30 2.7 WEBSITE……………………………………………………………………………………………………………………….P31 2.8 PUBLIC SATISFACTION ON MUNICIPAL SERVICES………………………………………………………P32 CHAPTER 3: SERVICE DELIVERY PERFOMANCE (PERFORMANCE REPORT PART I)…………P33 COMPONENT A: BASIC SERVICES……………………………………………………………………………………P33 3.1 WATER PROVISION……………………………………………………………………………………………………….P33 3.2 WASTE WATER (SANITATION) PROVISION…………………………………………………………………..P37 3.3 ELECTRICITY ……………………………………………………………………………………………………………….P39 3.4 WASTE MANAGEMENT…………………………………………………………………………………………………P42 3.5 HOUSING………………………………………………………………………………………………………………………P46 3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT………………………………………………………...P47 3.7 ROADS AND STORMWATER…………………………………………………………………………………………..P48 3.8 CAPITAL PROJECTS FOR 2011/2012……………………………………………………………………………….P50 3.9 PLANNING…………………………………………………………………………………………………………………….P53 3.10 LOCAL ECONOMIC DEVELOPMENT…………………………………………………………………………….P56 COMPONENET B: COMMUNITY & SOCIAL SERVICES………………………………………………………P59 3.11 LIBRARIES; ACHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES………………..P59 3.12 CEMETRIES ABD CREMATORIUMS……………………………………………………………………………...P62 3.13 BIO-DIVERSITY, LAND SCAPE AND OTHER………………………………………………………………….P66 COMPONENT C: ……………………………………………………………………………………………………………….P67 3.14 TRAFFIC……………………………………………………………………………………………………………………….P67 3.15 FIRE……………………………………………………………………………………………………………………………..P72 3.16 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL OF PUBLIC NUISANCE AND OTHER…………………………………………………………………………………………P74 COMPONENT D:SPORTS AND RECREATION…………………………………………………………………….P75 3.17 SPORTS AND RECREATION…………………………………………………………………………………………..P75 3.18 EXECUTIVE AND COUNCIL…………………………………………………………………………………………P77 3.19 FINANCIAL SERVICES…………………………………………………………………………………………………P79 COMPONENT E: ORGANISATIONAL PERFOMANCE SCORECARD……………………………………P81 CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFOMANCE REPORT PART II)……………………………………………………………………………………………………………….P132 COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL ……………………………..P132 4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES………………………………………………………P132 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE …………………………………………P124 4.2 POLICIES………………………………………………………………………………………………………………………P134 4.3 INJURIES, SICKNESS AND SUSPENSIONS…………………………………………………………………….P136 4.4 PERFORMANCE REWARDS…………………………………………………………………………………………..P138 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE…………………………………….P138 COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE ……………………………………P140 4.5 EMPLOYEE EXPENDITURE…………………………………………………………………………………………..P140 CHAPTER 5: FINANCIAL PERFORMANCE………………………………………………………………………….P141 Municipality | CONTENTS 3 COMPONENT A: STATEMENTS OF FINANANCIAL PERFORMANCE………………………………..P141 5.1 STATEMENTS OF FINANCIAL PERFORMANCE……………………………………………………………..P142 5.2 GRANTS………………………………………………………………………………………………………………………..P147 COMPONENT B: SPENDING AGAINST CAPITAL BUDGET………………………………………………..P150 5.3 SOURCES OF FINANCE ………………………………………………………………………………………………..P150 COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS…………………………………P152 5.4 CASH FLOW………………………………………………………………………………………………………………….P152 5.5 BORROWING AND INVESTMENTS………………………………………………………………………………..P153 CHAPTER 6: AUDITOR GENERAL AUDIT FINDINGS…………………………………………………………..P156 GLOSSARY…………………………………………………………………………………………………………………………..P157 APPENDICES………………………………………………………………………………………………………………………P160 APPENDIX A: COUNCILLORS, COMMITTEE ALLOCATION AND COUNICL ATTANDANCE…..P160 APPENDIX B: COMMITTES AND COMMITTEE PURPOSES…………………………………………………..P164 APPENDIX C: THIRD TIER ADMINIDTRATIVE STRUCTURE……………………………………………….P166 APPENDIX D: RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE………………….P167 APPENDIX E: DISCLOSURE OF FINANCIAL INTEREST……………………………………………………….P167 APPENDIX F: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE……………P168 APPENDIX F (I): REVENUE COLLECTION PERFORMANCE BY VOTE………………………………….P168 APPENDIX F (II): REVENUE COLLECTION PERFORMANCE BY SOURCE…………………………….P169 APPENDIC G: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG…………………………………P170 APPENDIX H: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES……P171 APPENDIX H (I): CAPITAL EXPENDITURE- NEW ASSETS PROGRAMME……………………………P171 APPENDIX I: DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY………P184 APPENDIX J: ANNUAL FINANCIAL STATEMENTS…………………………………………………………….P187 REVISED ANNUAL REPORT TEMPLATE The purpose of this revised Annual Report template is to address the need expressed by a number of municipalities for assistance in the preparation and development of improved content and quality of Municipal Annual Reports. This template provides an update to the MFMA Circular No. 11, issued in January 2005. This template gives effect to the legal framework requirement, concepts and principals espoused in the White Paper on Local Government and Improving Government Performance. It reflects the ethos of public accountability. The content gives effect to information required for better monitoring and evaluation of government programmes in support of policy decision making. The template provides an improved overview of municipal affairs by combining the performance report data required under Municipal Systems Act Section 46 with annual report data referred to in that Act and in the MFMA. The revised template makes its contribution by forging linkages with the Integrated Development Plan, Municipality | REVISED ANNUAL REPORT TEMPLATE 4 Service Delivery and Budget Implementation Plan, Budget Reforms, In-year Reports, Annual Financial Statements and Performance Management information in municipalities. This coverage and coherence is achieved by the use of interlocking processes and formats. The revised template relates to the Medium Term Strategic Framework particularly through the IDP strategic objectives; cross cutting nature of services offered by different spheres of government, municipal service outcome indicators; and the contextual material as set out in Chapters 3, 4 & 5. It also provides information on good management practice in Chapter 4; risk management in Chapter 2; and Supply Chain Management in Chapter 5; and addresses the Auditor-General’s Report, dealing with Financial and Performance Management arrangements in Chapter 6. This opens up greater possibilities for financial and non financial comparisons between municipalities and improved value for money. The revised template provides information on probity, including: anti-corruption strategies; disclosure of financial interests by officials and councillors; disclosure of grants by external parties, disclosure of loans and grants by municipalities. The appendices talk to greater detail including disaggregated information on municipal wards, among others. Notes are included throughout the format to assist the compiler to understand the various information requirements. The financial years contained in this template are explained as follows: Year -1: The previous financial year; Year 0: The financial year of reporting; Year 1: The following year, mostly requires future targets; and The other financial years will follow a similar sequence as explained above. We wish to express our gratitude to the members of the Annual Report Reference Group, consisting of national, provincial and municipal officials for their inputs and support throughout the development of this document. MFMA Implementation Unit, National Treasury July 2012 Municipality | REVISED ANNUAL REPORT TEMPLATE 5 CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY COMPONENT A: MAYOR’S FOREWORD MAYOR’S FOREWORD a. Vision: The vision, mission and value system of our municipality was informed by the long term goal, challenges as well as advantages we have as a municipality. Our vision: To be a community-orientated local authority committed to sustainable development and affordable service provision." Missions: “Mogalakwena Municipality is committed to provide and sustain basic services in an affordable manner to its people by/through: Ensuring that there is effective stakeholder and community participation in the IDP and budget process Ensuring the efficient and effective utilization of all available resources; and Promoting social and economic development “ Value System: Driven by the needs of our communities, Mogalakwena Municipality will respect and uphold the Constitution, uphold the Code of Conduct for Councillors and
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