Annual Report 2015/2016 1 TABLE OF CONTENTS CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY COMPONENT A: EXECUTIVE MAYOR’S FOREWORD 6 COMPONENT B: EXECUTIVE SUMMARY – MUNICIPAL MANAGER’S OVERVIEW 7 1.1 VISION AND MISSION OF THE WEST COAST DISTRICT MUNICIPALITY 9 1.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW 10 1.3 SERVICE DELIVERY OVERVIEW 19 1.4 FINANCIAL HEALTH OVERVIEW 20 1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW 22 1.6 AUDITOR-GENERAL REPORT 26 1.7 STATUTORY ANNUAL REPORT PROCESS 27 CHAPTER 2 – GOVERNANCE COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE 28 2.1 POLITICAL GOVERNANCE 30 2.2 ADMINISTRATIVE GOVERNANCE 34 COMPONENT B: INTERGOVERNMENTAL RELATIONS 35 2.3 INTERGOVERNMENTAL RELATIONS 35 COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION 36 2.4 PUBLIC MEETINGS 37 2.5 INTEGRATED DEVELOPMENT PLAN PARTICIPATION AND ALIGNMENT 38 COMPONENT D: CORPORATE GOVERNANCE 39 2.6 RISK MANAGEMENT 39 2.7 ANTI-CORRUPTION AND ANTI-FRAUD POLICY 40 2.8 SUPPLY CHAIN MANAGEMENT 41 2.9 BYLAWS 43 2.10 WEBSITE 44 CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) COMPONENT A: BASIC SERVICES 45 3.1 WATER PROVISION 46 3.2 FREE BASIC SERVICES AND INDIGENT SUPPORT 56 Annual Report 2015/2016 2 COMPONENT B: AGENCY SERVICES 57 3.3 ROADS 57 COMPONENT C: PLANNING AND DEVELOPMENT 65 3.4 TOWN PLANNING 65 3.5 LOCAL ECONOMIC DEVELOPMENT 68 3.6 TOURISM 70 COMPONENT D: COMMUNITY AND SOCIAL SERVICES 86 3.7 CHILD CARE, AGED CARE AND SOCIAL PROGRAMMES 86 COMPONENT E: ENVIRONMENTAL PROTECTION 91 3.8 POLLUTION CONTROL 91 3.9 BIODIVERSITY, LANDSCAPE AND COASTAL PROTECTION – ENVIRONMENTAL INTEGRITY 98 COMPONENT F: HEALTH 101 3.10 HEALTH INSPECTIONS, FOOD LICENSING AND FOOD INSPECTIONS 101 COMPONENT G: SECURITY AND SAFETY 103 3.11 FIRE SERVICES 103 3.12 DISASTER MANAGEMENT 107 COMPONENT H: RECREATION 117 3.13 GANZEKRAAL HOLIDAY RESORT 117 COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES 120 3.14 EXECUTIVE AND COUNCIL 120 3.15 ADMINISTRATION 122 3.16 FINANCIAL SERVICES 125 3.17 HUMAN RESOURCE SERVICES 128 3.18 INFORMATION AND COMMUNICATION TECHNOLOGY SERVICES 130 3.19 OFFICE OF THE MUNICIPAL MANAGER 132 3.20 INTERNAL AUDIT 133 CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE REPORT PART II) COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL 135 4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES 137 4.2 HUMAN RESOURCE POLICIES 138 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE 139 4.3 INJURIES, SICKNESS AND SUSPENSIONS 139 4.4 PERFORMANCE REWARDS 140 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE 141 4.5 SKILLS DEVELOPMENT AND TRAINING 141 Annual Report 2015/2016 3 CHAPTER 5 – FINANCIAL PERFORMANCE COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE 144 5.1 STATEMENTS OF FINANCIAL PERFORMANCE 144 5.2 GRANTS 146 5.3 ASSET MANAGEMENT 147 5.4 FINANCIAL RATIOS 149 COMPONENT B: SPENDING AGAINST CAPITAL BUDGET BY STANDARD CLASSIFICATION 153 5.5 CAPITAL EXPENDITURE 153 5.6 SOURCES OF FINANCE 155 5.7 CAPITAL SPENDING ON FIVE LARGEST PROJECTS 156 5.8 CASH FLOW 158 5.9 BORROWING AND INVESTMENT 159 5.10 SUPPLY CHAIN MANAGEMENT 162 CHAPTER 6 – AUDITOR-GENERAL AUDIT FINDINGS COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS 2014/2015 163 6.1 AUDITOR-GENERAL REPORT 2014/2015 164 COMPONENT B: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS 2015/2016 167 6.2 AUDITOR-GENERAL REPORT 2015/2016 167 GLOSSARY 171 APPENDIX A – COUNCILLORS, COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE 174 APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES 178 APPENDIX C – THIRD-TIER ADMINISTRATIVE STRUCTURE 180 APPENDIX D – FUNCTIONS OF MUNICIPALITY/ENTITY 181 APPENDIX E – WARD REPORTING 183 APPENDIX F – WARD INFORMATION 184 APPENDIX G – RECOMMENDATIONS OF THE AUDIT COMMITTEE 185 APPENDIX H – LONG-TERM CONTRACTS AND PUBLIC-PRIVATE PARTNERSHIPS 186 APPENDIX I –SERVICE PROVIDER PERFORMANCE SCHEDULE 188 APPENDIX J – DISCLOSURE OF FINANCIAL INTERESTS: COUNCILLORS 195 APPENDIX J– DISCLOSURE OF FINANCIAL INTERESTS: SECTION 57 OFFICIALS 197 Annual Report 2015/2016 4 APPENDIX K – REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE 198 APPENDIX K (i): REVENUE COLLECTION PERFORMANCE BY VOTE FINANCIAL DISCLOSURE APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG 200 APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES 201 APPENDIX M (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME 201 APPENDIX M – (ii): CAPITAL EXPENDITURE – UPGRADE/RENEWAL PROGRAMME 202 APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 1 202 APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD YEAR 1 202 APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS 203 APPENDIX Q – CAPITAL EXPENDITURE: UPGRADE/RENEWAL PROGRAMME 204 APPENDIX R – CAPITAL PROGRAMME BY PROJECT: YEAR 1 204 APPENDIX S – CAPITAL PROGRAMME BY WARD: YEAR 1 204 APPENDIX T – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS 205 APPENDIX U – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE 206 ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION APPENDIX V – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY 207 APPENDIX W – DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA 208 SECTION 71 APPENDIX X – NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT 209 VOLUME I: ANNUAL PERFORMANCE REPORT 2015/2016 210 VOLUME II: ANNUAL FINANCIAL STATEMENTS 2015/2016 231 Annual Report 2015/2016 5 CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY COMPONENT A: EXECUTIVE MAYOR’S FOREWORD During the year under review, we could once again manage to keep fulfilling our vision and mission and give effect thereto. As our vision states, A Quality Destination of Choice through an Open Opportunity Society, we must at all times ensure that we provide outstanding service delivery on the West Coast to be the destination of choice. It was a year of many challenges but I can proudly report that we, politicians and officials, worked hard to deliver excellent services to people. Our five strategic objectives namely: Ensuring environmental integrity for the West Coast Ensuring good governance and financial viability Pursuing economic growth and facilitation of job opportunities Promoting social well-being of the community Providing essential bulk services in the region are the drivers of our IDP and are also in line with the Provincial Growth and Development Strategy. With the limited funds at our disposal, we could successfully manage our IDP. Public participation is of utmost importance to our District and therefore we created an open opportunity for our clients, the five B-municipalities, to engage with us through our bi-literal meetings. This platform grants us the opportunity to find out how we can assist the municipalities in our district. It is our aim to always put our people first and will therefore ensure that the best services are provided to them. The strength and success of our municipality is built on the commitment and loyalty of all our officials. During the past year we could again reap the fruit of competency, honesty and transparency. I wish to thank all our officials and management team for their hard work and dedication. They are a team who I am really proud of. Thanks to the members of the Executive Mayoral Committee and councillors for their support the past year. ALD JH CLEOPHAS EXECUTIVE MAYOR Annual Report 2015/2016 6 COMPONENT B: EXECUTIVE SUMMARY – MUNICIPAL MANAGER’S OVERVIEW The Annual Report has been prepared in accordance with Circular 63 of National Treasury. The Municipality can celebrate its achievement of a sixth consecutive Unqualified Audit opinion without matters. This achievement is the culmination of a continued and diligent effort by the Executive Mayor and Council and the administration to ensure an efficient, effective and accountable administration. We need to acknowledge the advisory and supportive role of a competent Audit Committee, Municipal Public Accounts Committee (MPAC) and the Office of the Auditor-General. Your guidance has been invaluable. The country’s changed economic circumstances have significance for us all but young and old face particularly severe challenges. Over the next few years we must answer some difficult questions about youth unemployment and how we should care for growing numbers of older residents. The West Coast District’s economy remains vulnerable to provincial, national and global economic developments. The proclamation of the Saldanha Bay Industrial Development Zone can serve as the catalyst for regional economic growth. However, we need to be mindful of our natural resources, particularly the availability of water. Due to changing weather patterns a decrease in rainfall is noticeable for the West Coast. Continued efforts by all stakeholders to secure supply is important in the interest of regional development. In facilitating Regional Economic Development, there were four Catalytic Business Ventures run during the period, under the auspices of the West Coast Business Development Programme, including Aquaculture, Waste to energy, Artisanal skills in which 1000 learners were targeted, and up to 700 were trained, and the Captains of Industry. In addition, another three community enterprises were provided with technical expertise and support via the local municipality, resulting in at least 20 jobs created and adding to a grand total of nearly 600 jobs created through the technical support programme of the district municipality. West Coast was the first region after the City of Cape Town, to strongly promote responsible tourism and hosted a Responsible Tourism Conference during September 2015 which was very successful with the attendance of 71 delegates from the community of the West Coast and surrounds. High profile speakers gave presentations on their areas of expertise. The main aim of this programme is to make the people of the West Coast aware of the fact that no business can be sustainable if it is not managed in a responsible way by taking the social, environmental and economic aspects into account. In pursuit of the objects of local government as provided for by the Constitution, the year was marked by a conference for one of our vulnerable groups namely the elderly, which enjoyed the partnership of all of the social partners in the district.