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ANNUAL REPORT 2013/14 About this annual report This 2013/14 annual report offers stakeholders and interested parties a comprehensive overview of the operations, activities and performance of the City of Cape Town for the 2013/14 financial year. The content of this annual report is aligned with the strategic focus areas (SFAs) and underlying objectives of the City’s five-year Integrated Development Plan (2013/14 review), and is also informed by a number of other plans and documents produced by the various City directorates and business areas, including: The integrated Annual Report 2012/13 (Backward looking) The Integrated Human Settlements Five-Year Strategic Plan, July 2012 – June 2017 (2014/15 review) The five-year Integrated Development Plan (2013/14 review) The 2014/15 – 2016/17 budget Each of these publications offers comprehensive information and data covering the components of the City’s five strategic pillars that are relevant to its readers or to the stakeholders of the directorate that produced it. While this means that each publication can be read independently of the others, to gain a comprehensive understanding of the City’s planning, performance and budgeting structures, the suite of books should preferably be considered in its entirety. INTEGRATED AnnUAL REPOrt | 2013/14 1 THE CITY OF CAPE TOWN’S VISION AND MISSION The vision and mission of the City of Cape Town is threefold: • To be an opportunity city that creates an enabling environment for economic growth and job creation, and to provide help to those who need it most • To deliver quality services to all residents • To serve the citizens of Cape Town as a well-governed and corruption-free administration In striving to achieve this vision, the City’s mission is to: • contribute actively to the development of its environmental, human and social capital; • offer high-quality services to all who live in, do business in or visit Cape Town as tourists; and • be known for its efficient, effective and caring government. Spearheading this resolve is a focus on infrastructure investment and maintenance to provide a sustainable drive for economic growth and development, greater economic freedom, and increased opportunities for investment and job creation. To achieve its vision, the City of Cape Town is building on the strategic focus areas it has identified as the cornerstones of a successful and thriving city, and which form the foundation of its five-year Integrated Development Plan. These are as follows: THE OPPORTUNITY CITY Pillar 1: Ensure that Cape Town continues to grow as an opportunity city. THE SAFE CITY Pillar 2: Make Cape Town an increasingly safe city. THE CARING CITY Pillar 3: Make Cape Town even more of a caring city. THE INCLUSIVE CITY Pillar 4: Ensure that Cape Town is an inclusive city. THE WELL-RUN CITY Pillar 5: Make sure Cape Town continues to be a well-run city. These five focus areas inform all the City of Cape Town’s plans and policies. 2 INTEGRATED AnnUAL REPOrt | 2013/14 INTRODUCTION The City of Cape Town continues to work concertedly towards aligning all of its reporting with its integrated operational and strategic approach as well as the internationally accepted principles and best practices of integrated reporting. This 2013/14 annual report continues this commitment, and is the City’s third attempt at moving its annual report towards meeting integrated reporting standards and requirements. This report provides City of Cape Town stakeholders and interested parties with comprehensive information about the City’s financial, operational, social and environmental performance for the 12 months under review, and offers a view of the challenges and opportunities that the City faces in its ongoing efforts to deliver opportunities and services to all its citizens. The City’s integrated reporting approach is in keeping with its commitment to the requirements and recommendations of the King III Report, which sets out international best practices for the governance of private and public organisations. That said, the City acknowledges that there is still work to be done to achieve full alignment with these and other integrated reporting principles and, while it is confident that it is moving steadily forward in its efforts to achieve such alignment, this is likely to be a gradual journey. MATERIALITY In order to continue the journey towards full compliance with all the principles of integrated reporting, the content of this annual report aligns with various material issues as reflected in the City’s Integrated Development Plan and other sector plans. As such, these material matters are identified by the City to be addressed as part of the delivery of its service mandate and through the achievement of its long-term vision. Some of the City’s key material issues include the following: • Mitigating carbon emissions and helping to address climate change • Efficient water supply, use and management • Efficient energy supply, use and management • Effective waste management • Economic sustainability through financial prudence • Effective and transparent governance and risk management • Achievement of environmental sustainability and biodiversity objectives • Sustainable land use and development • Customer communication and satisfaction measurement • Sustainable procurement • Infrastructure maintenance and development • Transformation, diversity and talent management INTEGRATED AnnUAL REPOrt | 2013/14 3 4 INTEGRATED AnnUAL REPOrt | 2013/14 CONTENTS ABOUT THIS ANNUAL REPORT 1 THE VISION AND MISSION OF THE CITY OF CAPE TOWN 2 INTRODUctiON AND MateRiaLitY 3 HIGHLIGhtS OF THE 2013/14 FinanciaL YEAR 6 MessaGE FRom THE EXecUtive MayOR OF CapE TOWN 8 Statement BY THE CitY ManAGER 9 WORLD DESIGN CAPITAL 2014 11 OVERVIEW OF THE CITY OF CAPE TOWN About Cape Town 16 Understanding Cape Town’s key challenges 16 The Cape Town Spatial Development Framework 17 Ensuring sustainable economic growth and social development 19 GOVERNANCE, COMPLIANCE AND RISK MANAGEMENT Management and governance structures and frameworks 22 Good governance as a sustainable foundation 26 Compliance and auxiliary services 26 Public participation 28 Summary of 2013/14 community satisfaction survey results 29 2012/13 PERFORMANCE REVIEW SFA 1 – The opportunity city 34 SFA 2 – The safe city 64 SFA 3 – The caring city 68 SFA 4 – The inclusive city 82 ORGANISATIONAL DEVELOPMENT SFA 5 – The well-run city 88 FINANCIAL PERFORMANCE AND ECONOMIC SUSTAINABILITY Overview of the 2014/15 budget 100 ANNUAL FINANCIAL STATEMENTS Approval of the consolidated annual financial statements 106 Report of the Auditor-general to the Western Cape Provincial Parliament and the council on the City of Cape Town 108 Report of the Audit Committee for the year ended 30 June 2014 111 Report by the Chief Financial Officer 116 Financial statements and policy 2013/14 121 Appendices 193 APPENDICES Appendix A: Definitions for corporate scorecard performance indicators 210 Appendix B: 2013/14 Annual Performance Management Report – City of Cape Town 216 Appendix C: CTICC performance scorecard for the 2013/14 financial year 222 Appendix D: Capital Budget summary per Subcouncil and Ward — Summary per Subcouncil 224 Appendix E: List of abbreviations, tables and figures 226 DENOTES: National Development Plan Objectives delivered More online INTEGRATED ANNUAL REPORT | 2013/14 5 HIGHLIGHTS OF the 2013/14 Financial YEAR The City of Cape Town received an unqualified audit opinion, as well as a clean 70% audit status, from the Auditor of residents rated the City's General of South Africa for performance as good, the 11th and 2nd very good or excellent consecutive (up from 69% in 2012/13, 63% in years respectively. 2011/12 and 57% in 2009/10) Received high 77 investment rating World Design Capital of Aa3 from independent projects completed rating agency Record spend of 38 305 R2,9 billion Expanded Public on repairs and Works Programme job maintenance opportunities created 7,7 million passenger journeys undertaken on MyCiTi public transport 6 INTEGRATED AnnUAL REPOrt | 2013/14 2 028 water service 5 916 points (taps) provided sanitation service points (toilets) provided 4 391 subsidised electricity connections installed City call 5 718 centre scored serviced site housing 4+ out of 5 opportunities provided (on the Likert scale) 83% of emergencies responded to within 14 minutes 96,85% of workplace skills plan budget spent 40recreation hubs established INTEGRATED AnnUAL REPOrt | 2013/14 7 MESSAGE FROM THE EXecutive MayOR The City performed well in the 2013/14 financial year. Cape legislation actually intended: the complete alignment of Town is maintaining its excellent record of high-quality service democratic will with a programme of government. delivery and being responsive to the needs of its citizens. Through it all, we have managed our resources in such a way But having put in place this great plan, we need to know that it that we ensure our continuing success and proudly obtained a is working, which is the function of the annual report. We need clean audit from the Auditor-General. to see the outcomes that we are delivering to the people, for their own benefit and for our own progress reports. There are still areas where there is room for improvement – there always are for an organisation committed to exceeding Any government must be willing to address problems, not We have managed our its own performance. We will continue to address those areas resources in such a simply seeing them as requiring solutions but also presenting and others to ensure that we build the best possible city for way that we ensure our opportunities. In so doing, we commit ourselves to the principle our citizens. continuing success and of innovation and dynamic leadership – qualities that will help proudly obtained a clean take us forward into the future. audit from the Auditor- We have undertaken a particular programme of governance to General. turn the five pillars into a development programme until 2016. With the five pillars as our guide, we will help take Cape Town to Those pillars are the opportunity city, the safe city, the caring the next level of government in South Africa and make progress city, the inclusive city and the well-run city.
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