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Draft Annual Report 2018/2019 1 DDrraafftt AAnnnnuuaall RReeppoorrtt 22001188//22001199 DRAFT ANNUAL REPORT 2018/2019 1 GENERAL INFORMATION 1. MEMBERS OF THE MAYORAL COMMITTEE NO. SURNAME AND INITIALS DESIGNATION 1. Cllr. Ramaila K.S. Executive Mayor 2. Cllr. Sihlangu T.L. Member of the Mayoral Committee (MMC): Budget & Treasury 3. Cllr. Mahlangu M.F. 1st Member of the Mayoral Committee (MMC): 4. Cllr. Manganeng L.M. 2nd Member of the Mayoral Committee (MMC): 5. Cllr. Matlala M.A. Member of the Mayoral Committee (MMC): Corporate Services 6. Cllr. Nkosi M.S. Member of the Mayoral Committee (MMC): Planning & Economic Development 7. Cllr. Nchabeleng T.L. Member of the Mayoral Committee (MMC): Community Services 8. Cllr. Mnisi SP Member of the Mayoral Committee (MMC): Office of the Executive Mayor (Special Programmes) 9 Cllr. Mmakola MY Member of the Mayoral Committee (MMC): Office of the Executive Mayor (Special Programmes) 2. ADDRESS Sekhukhune District Municipality 3 West Street Groblersdal 0470 Tel: (013) 262 7300 Fax: 013 262 3688 Website: www.sekhukhunedistrict.gov.za DRAFT ANNUAL REPORT 2018/2019 2 3. CONTACTS Mr. MJ. Mofokeng Acting Municipal Manager ACRONYMS NO. ABBREVIATIONS ABBREVIATION IN FULL 1. AFS Annual Financial Statement 2. A.G. Auditor General 3. AGSA Auditor General South Africa 4. AIDS Acquired Immune Deficiency Syndrome 5. ANC African National Congress 6. AC Audit Committe 7. APR Annual Performance Report 8. AR Annual Report 9. BLSV Bolshevic 10. CAC Chid Advisory Council 11. CDW Community Development Worker 12. CFO Chief Financial Officer 13. CLLR. Councillor 14. COGHSTA Co-operative Governance, Human Settlement and Traditional Affairs 15. CPMD Certificate Programme in Management Development 16. DA Democratic Alliance 17. DOE Department of Energy 18. DSAC Department of Sport, Arts & Culture 19. EFF Economic Freedom Fighters 20. EPWP Expanded Public Works Programme 21. ESKOM Electricity Supply Commission DRAFT ANNUAL REPORT 2018/2019 3 22. FMG Financial Management Grant 23. GRAP General Recognised Accounting Practice 24. HIV Human Immune Virus 25. HH Households 16. ICT Information Communication Technology 26. IDP Integrated Development Plan 27. IGR Integovernmental Relations 28. INEP Integrated National Electricity Programme 29. Km Kilometre 30. KPA Key Performance Area 31. KPI Key Performance Indicator 32. LED Local Economic Development 33. LEDET Limpopo Economic Development Environment Tourism 34. LGSETA Local Governement Sector Education & Training Authority 35. MEC Member of Executive Council 36. MFMA Municipal Finance Management Act 37. MIG Municipal Infrastructure Grant 38. MM Municipal Manager 39. MPAC Municipal Public Accounts Committee 40. MSA Municipal Systems Act 41. MTREF Medium Term Revenue & Expenditure Framework 42. N/A Not Applicable 43. No. Number 44. PMS Performance Management System 45. PMU Project Management Unit DRAFT ANNUAL REPORT 2018/2019 4 46. PPP Public Privite Partnership 47. PR Proportional Representative 48. OHS Occupational Health & Safety 49. R Rand 50. RBIG Regional Infrastructure Grant 51. RDP Reconstruction & Development Plan 52. RRMS Rural Roads Assets Management System Grant 53. RSA Republic of South Africa 54. SCM Supply Chain Management 55. SDBIP Service Delivery & Budget Implementation Plan. 56. SDM Sekhukhune District Municipality 57. SETA Sector Education & Training Authority 58 SODA State of the District Adrress 59. STATSSA Statistics South Africa 60 STI Sexually Transmitted infection 61. TB Tuberculosis 62. TOR Terms of Reference 63. TVR Treasury Views and Recommendation 64.. WSP Work Skills Plan 65. VIP Ventilated Improved pit 67. WSIG Water Services Infrastructure Grant DRAFT ANNUAL REPORT 2018/2019 5 Table of Contents Chapters Content Page No. Chapter 1 1.1. EXECUTIVE MAYOR’S FOREWORD 12 1.2. EXECUTIVE SUMMARY: MUNICIPAL 16 MANAGER’S OVERVIEW 1.3. Structure of the annual report of 16 Sekhukhune District Municipality 1.4. Legislative framework for annual 17 reporting 1.5. Municipal powers and functions 20 1.6. Demographic overview 21 1.7. Service delivery overview 22 1.8. Financial health overview 23 1.9. Statutory Annual Report Process 25 Chapter 2 CHAPTER TWO: GOVERNANCE 27 2.1. Introduction to governance 27 COMPONENT A: Political and administrative 27 governance 2.2. Introduction to political & administrative 28 governance 2.3. Political Governance 28 2.3.1. Introduction 28 2.3.2. Political Structures 28 2.3.2.1. The Executive Mayor 28 2.3.2.2. The Speaker 29 2.3.2.3. The Chief Whip 30 DRAFT ANNUAL REPORT 2018/2019 6 2.3.2.4. The Mayoral Committee 31 2.3.2.5. Directly Elected Councillors 31 2.3.2.6. Traditional Leaders in Council 33 2.3.2.7. Political Decision Making 33 2.3.3. SECTION - 79 standing committees of 34 council 2.3.4. Special Committees of Council 35 2.3.5. Municipal Portfolio Committees 36 2.3.6 Municipal Public Account Committee 37 (Oversight committee) 2.3.7. Meetings of committees 38 2.3.8. Attendance of Council meetings & 42 MPAC meetings 2.4. Administrative Governance 48 2.4.1. Introduction 48 2.4.2. Top Administrative Structure 48 COMPONENT B: Intergovernmental Relations 49 2.5.1. District Intergovernmental Structure 51 2.5.2. Provincial Intergovernmental Structure 54 2.6. Relationships with municipal entities 54 COMPONENT C: Public Accountability and 57 participation 2.7.1. Introduction 57 2.7.2. IDP & Annual Report public participation 57 2.7.3. Ward Committees 60 COMPONENT D: Corporative Governance 60 2.8.1. Overview of corporate governance 60 DRAFT ANNUAL REPORT 2018/2019 7 2.8.2. Audit committee 61 2.8.3. Risk steering management Committee 62 2.8.3.1. Risk Governance 63 2.8.3.2. Top ten risks in the municipality 63 2.8.3.3. Fraud and anti-corruption strategy 64 2.8.4. Supply Chain Management 64 2.8.5. By-law 117 2.8.6. Website 117 2.8.7. Public satisfaction on municipal services 118 State SERVICE DELIVERY PERFORMANCE 127 Chapter 3 3.1.Introduction 127 COMPONENT A: Basic Service 127 3.2 Water Provision 127 3.3. Sanitation provision 135 3.4. Municipal Health Services 135 3.5. Emergency Management 140 3.6. Disaster Management 156 COMPONENT B: Planning & Development 163 3.7. Local Economic Development 163 3.7.1. Introduction 163 3.7.2. Review of LED strategy 163 3.7.3. State of district economy 164 3.7.4. SDM Gross Domestic 164 3.7.5. Economic Growth forecast 165 3.7.6. Growth value added by region 165 DRAFT ANNUAL REPORT 2018/2019 8 3.7.7. Historical growth 165 3.7.8. Primary Sector 166 3.7.9. Secondary Sector 166 3.7.10. Tertiary Sector 166 3.7.11. Sector growth forecast 167 3.7.12. Tress Index 167 3.7.13. Location Quotient 167 3.7.14. Unemployment 168 3.7.15. Gini Coefficient 168 3.7.16. Human development index 169 3.8. Trade and Industry 169 3.9. Enterprise Development 169 3.10. Agriculture Development 170 3.11. Tourism Development 172 3.12. Manufacturing 173 3.13. Jobs created through municipal 174 projects and EPWP 3.14. Spatial Rationale 175 Chapter 4 ORGANISATIONAL DEVELOPMENT 178 PERFORMANCE Organisational Development Performance 178 COMPONENT A: Introduction to Municipal 178 Personnel 4.1.1. Introduction 182 4.1.2. Total number of Employees, Staff turn- 183 over and Vacancies 4.1.3. HR Policies, Plans and Strategy 184 DRAFT ANNUAL REPORT 2018/2019 9 4.1.4. Injuries on duty 186 4.1.5. Labour Relations. 187 4.1.6. Skills development and training 188 4.1.7. Training Spend in 2018/2019 189 4.1.8. Bursaries 189 Chapter 5 FINANCIAL PERFORMANCE 190 COMPONENT A: 190 5.1. Statement of financial performance 5.2. Revenue 190 5.3. Expenditure 191 5.4. Asset Management 193 5.5. Net asset position = Assets: Liabilities 194 COMPONENT B: SPENDING AGAINST 194 CAPITAL BUDGET 5.6. Grants received 194 5.7. Grants spending of projects 194 5.8. Unspent grants 196 COMPONENT C: CASH FLOW 197 MANAGEMENT AND INVESTMENT 7.1. Cash equivalent 197 7.2. Borrowing and Investment 197 COMPONENT D: OTHER FINANCIAL 197 MATTER 8.1. Supply Chain Management 197 8.1.1. Introduction Bid Committees 198 8.1.2. Oversight role of Council 198 . 8.2. GRAP Compliance 198 DRAFT ANNUAL REPORT 2018/2019 10 Chapter 6 AUDITOR GENERAL FINDINGS AND 199 OPINION COMPONENT A: 2018/2019 AUDITOR 199 GENERAL REPORT OPINION & FINDINGS 6.1. Auditor General Report 2018/2019 199 financial year COMPONENT B: 2017/2018 AUDITOR 199 GENERAL OPINION 6.2. Auditor General Report opinion for 199 2017/2018 financial year 6.3. Auditor General Report progress on 199 findings for 2017/2018 financial year Conclusions 199 Glossary 199 Annexure A:2018/2019 Organisational Structure Annexure B:2018/2019 Annual Performance Report.(APR) Annexure C: 2018/2019 Audit Committee Report Annexure C: 2018/2019 Audited Financial Statement Annexure D:2018/2019 Auditor General’s Report Annexure E: 2018/2019 Auditor General Findings Action Plan Annexure F: 2018/2019 Oversight Report DRAFT ANNUAL REPORT 2018/2019 11 CHAPTER ONE: 1.1. MAYOR’S FOREWORD AND EXECUTIVE SUMMARY The 2018/2019 annual report is a public document compiled in terms of the legislations such as Local Government Municipal Systems Act, 2000, Section 121 (1) of Municipal Finance Management Act, 2003, read together with other constitutional precincts. This annual report will cover policy directives as unleashed in line with the 7th February 2019 presentation of the State of the Nation Address by His Excellency President Matamela Cyril Ramaphosa and the State of the Province Address by Honourable Premier Chupu Stanley Mathabatha on the 22nd February 2019. And for us as the people of Sekhukhune the report seeks to take the people of our district municipality into confidence as to how far we have fared since the August 2016 Local government elections.
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