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Annual Report 2011/2012 Financial Year

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Annual Report 2011/2012 Financial Year EMALAHLENI LOCAL MUNICIPALITY ANNUAL REPORT 2011/2012 FINANCIAL YEAR ANNUAL REPORT FOR EMALAHLENI LOCAL MUNICIPALITY 1 Contents Page CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY……………………………………………… 6 COMPONENT A: MAYOR’S FOREWORD…………………………………………………………………… ..6 COMPONENT B: EXECUTIVE SUMMARY …………………………………………………………………... 9 1.1. MUNICIPAL MANAGER’S OVERVIEW ……………………………………………………….9 1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW ………………10 1.3. SERVICE DELIVERY OVERVIEW ……………………………………………………………………19 1.4. FINANCIAL HEALTH OVERVIEW……………………………………………………………………24 1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW………………………………………………….27 1.6. AUDITOR GENERAL REPORT…………………………………………………………………………27 1.7. STATUTORY ANNUAL REPORT PROCESS ………………………………………………………….28 CHAPTER 2 – GOVERNANCE …………………………………………………………………………………………….29 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ………………………………….29 2.1 POLITICAL GOVERNANCE ……………………………………………………………………………30 2.2 ADMINISTRATIVE GOVERNANCE ………………………………………………………………….32 COMPONENT B: INTERGOVERNMENTAL RELATIONS ……………………………………………………35 2.3 INTERGOVERNMENTAL RELATIONS ………………………………………………………………..35 COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION …………………………………….37 2.4 PUBLIC MEETINGS ……………………………………………………………………………………...38 62.5 IDP PARTICIPATION AND ALIGNMENT …………………………………………………………….45 COMPONENT D: CORPORATE GOVERNANCE ………………………………………………………………47 2.6 RISK MANAGEMENT …………………………………………………………………………………...48 2.7 ANTI-CORRUPTION AND FRAUD …………………………………………………………………….49 2.8 SUPPLY CHAIN MANAGEMENT ……………………………………………………………………...50 2.9 BY-LAWS ………………………………………………………………………………………………...50 2.10 WEBSITES ……………………………………………………………………………………………….51 2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES ……………………………………………...52 2 Contents CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)…………………………54 COMPONENT A: BASIC SERVICES……………………………………………………………………………….55 3.1. WATER PROVISION………………………………………………………………………………………..56 3.2 WASTE WATER (SANITATION) PROVISION…………………………………………………………...64 3.3 ELECTRICITY……………………………………………………………………………………………....72 3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS, WASTE DISPOSAL, STREET CLEANING AND RECYCLING)……………………………………......78 3.5 HOUSING……………………………………………………………………………………………………84 3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT…………………………………………………...92 COMPONENT B: ROAD TRANSPORT……………………………………………………………………………96 3.7 ROADS ...........................................................................................................................................................97 3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION)………………...102 3.9 WASTE WATER (STORMWATER DRAINAGE)………………………………………………………..103 COMPONENT C: PLANNING AND DEVELOPMENT………………………………………………………….108 3.10 PLANNING………………………………………………………………………………………………..108 3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES)………113 COMPONENT D: COMMUNITY & SOCIAL SERVICES……………………………………………………….119 3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER (THEATRES, ZOOS, RESORT,ETC)……..……………………………………………………………...119 3.13 CEMETORIES AND CREMATORIUMS……………………………………………………………….132 3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES……………………………………………...136 COMPONENT E: ENVIRONMENTAL PROTECTION………………………………………………………….137 3.15 POLLUTION CONTROL………………………………………………………………………………...137 3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL PROTECTION)…………………………………………………………………………………………….142 COMPONENT F: HEALTH.. 3.17 CLINICS………………………………………………………………………………………………….147 3.18 AMBULANCE SERVICES……………………………………………………………………………...152 3 Contents 3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC…………153 COMPONENT G: SECURITY AND SAFETY…………………………………………………………………….157 3.20 SECURITY AND LAW ENFORCEMENT………………………………………………………………157 3.20A TRAFFIC SERVICES……………………………………………………………………………………161 3.21 FIRE AND RESCUE SERVICES………………………………………………………………………….165 3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL OF PUBLIC NUISANCES AND OTHER)………………………………………………………………..169 COMPONENT H: SPORT AND RECREATION…………………………………………………………………..173 3.23 SPORT AND RECREATION……………………………………………………………………………...173 COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES…………………………………177 3.24 EXECUTIVE AND COUNCIL……………………………………………………………………………177 3.25 FINANCIAL SERVICES………………………………………………………………………………….182 3.26 HUMAN RESOURCE SERVICES……………………………………………………………………….187 3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES……………………..191 3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES………………….195 COMPONENT J: MISCELLANEOUS…………………………………………………………………………….199 COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD……………………………………… 200 CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE……………………………………………….230 (PERFORMANCE REPORT PART II) COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL…………………………………..231 4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES……………………………………………..231 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE…………………………………………..234 4.2 POLICIES………………………………………………………………………………………………...237 4.3 INJURIES, SICKNESS AND SUSPENSIONS………………………………………………………….238 4.4 PERFORMANCE REWARDS…………………………………………………………………………..244 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE……………………………………..245 4.5 SKILLS DEVELOPMENT AND TRAINING…………………………………………………………..246 4 Contents COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE…………………………………………250 4.6 EMPLOYEE EXPENDITURE…………………………………………………………………...…………251 CHAPTER 5 – FINANCIAL PERFORMANCE……………………………………………………………………………...255 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE………………………………………….255 5.1 STATEMENTS OF FINANCIAL PERFORMANCE………………………………………………………256 5.2 GRANTS…………………………………………………………………………………………………….259 5.3 ASSET MANAGEMENT…………………………………………………………………………………..261 5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS…………………………….264 COMPONENT B: SPENDING AGAINST CAPITAL BUDGET…………………………………………………272 5.5 CAPITAL EXPENDITURE………………………………………………………………………………..272 5.6 SOURCES OF FINANCE………………………………………………………………………………….273 5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS…………………………………………………….275 5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW……………………………276 COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS…………………………………….278 5.9 CASH FLOW………………………………………………………………………………………………279 5.10 BORROWING AND INVESTMENTS………………………………………………………………….280 5.11 PUBLIC PRIVATE PARTNERSHIPS…………………………………………………………………..284 COMPONENT D: OTHER FINANCIAL MATTERS…………………………………………………................284 5.12 SUPPLY CHAIN MANAGEMENT……………………………………………………………………..284 5.13 GRAP COMPLIANCE…………………………………………………………………………………...285 CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS………………………………………………………………..286 COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS Year -1 ……………..286 6.1 AUDITOR GENERAL REPORTS Year -1 (Previous year)……………………………………………...286 COMPONENT B: AUDITOR-GENERAL OPINION YEAR 0 (CURRENT YEAR)…………………………..288 6.2 AUDITOR GENERAL REPORT YEAR 0………………………………………………………………288 5 Contents GLOSSARY…………………………………………………………………………………………………………………...291 APPENDICES …………………………………………………………………………………………………………………293 APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE …………293 APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES………………………………………………298 APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE……………………………………………….299 APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY………………………………………………….300 APPENDIX E – WARD REPORTING……………………………………………………………………………..308 APPENDIX F – WARD INFORMATION…………………………………………………………………………309 APPENDIX G – RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE YEAR 0----------------311 APPENDIX H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS……………………312 APPENDIX I – DISCLOSURES OF FINANCIAL INTERESTS………………………………………………….314 APPENDIX J: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE…………………..318 APPENDIX K (i): REVENUE COLLECTION PERFORMANCE BY VOTE…………………………………….318 APPENDIX K (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE………………………………...319 APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG……………………………………320 APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES……………..321 APPENDIX M (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME………………………………..322 APPENDIX M (ii): CAPITAL EXPENDITURE – UPGRADE/RENEWAL PROGRAMME…………………….325 APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 0 ……………………………………………..328 APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD YEAR 0………………………………...335 APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS………………………337 APPENDIX Q–SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION………………………….338 APPENDIX R – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY……………339 APPENDIX S – NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT………………340 VOLUME II: ANNUAL FINANCIAL STATEMENTS 6 Chapter 1 CHAPTER 1- MAYOR’S FOREWORD AND EXECUTIVE SUMMARY COMPONENT A: MAYOR’S FOREWORD MAYOR’S FOREWORD a. Vision: “Striving together to be an excellent centre for service delivery and development” The vision clearly highlights the importance of creating partnerships with our social partners, with an aim of establishing a highly effective and efficient public service institution that excels in providing basic services to its communities and creating a centre for future growth and knowledge management. Council has an understanding of our existing challenges, economic & cultural diversity and yet is determined to become the hub of efficient and effective service delivery. With an understanding of the challenges, potentials and capabilities
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