Annual Report 2014-2015
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ANNUAL REPORT 2014-2015 Tel: 044 803 1300 | H/O: 54 York Street, George | www.edendm.co.za • www.fb.com/edendistrictmunicipality • #edendistrict EDEN DISTRICT MUNICIPality’s VISION, MISSION & STRATEGIC OBJECTIVES The vision of the Eden District Municipality is as follows: EDEN, A FUTURE EMPOWERED THROUGH EXCELLENCE ELEMENTS OF THE VISION: EDEN: Represents the entire jurisdiction of the district, including the seven B-municipalities, which are Hessequa, Mossel Bay, George, Knysna, Bitou, Oudtshoorn and Kannaland FUTURE: Changed environment, well-being of citizens, growth & development EMPOWERED: Training & development, education, economic growth, job creation, self reliance, enabling environment, mentorship, working together, facilitate EXCELLENCE: Service delivery, customer care, innovation, political stability, integrated planning The Mission Statement of the Eden District Municipality is as follows: • Providing strategic leadership and co-ordination to B-municipalities in the district within our resources available; • Executing integrated development planning in collaboration with sector departments and service organisations; and • Upholding the principles of good governance in pursuit of excellence as a regional leader in local government. The list of Strategic Objective Pillars to make the strategy succeed: 1. Healthy and socially stable communities 2. Build a capacitated workforce and communities 3. Conduct regional bulk infrastructure planning and implement projects, roads maintenance and public transport; manage and develop council fixed assets 4. Promote sustainable environmental management and public safety 5. Promote good governance 6. Ensure financial viability of the Eden District Municipality 7. Grow the district economy VALUES ABOUT THIS ANNUAL REPORT Eden District Municipality is determined as a Category C-municipality with a mayoral executive system and has the following functions and powers: (a) Integrated development planning for the district municipality as a whole. (b) Portable water supply systems. (c) Bulk supply of electricity, which includes for the purposes of such supply, the transmission, distribution and, where applicable, the generation of electricity. (d) Domestic waste-water and sewage disposal systems. (e) Solid waste disposal sites, in so far as it relates to - (i) the determination of a waste disposal strategy; (ii) the regulation of waste disposal; (iii) the establishment, operation and control of waste disposal sites, bulk waste transfer facilities and waste disposal facilities for more than one local municipality in the district. (f) Municipal roads which form an integral part of a road transport system for the area of the district municipality as a whole. (g) Regulation of passenger transport services. (h) Municipal airports serving the area of the district municipality as a whole. (i) Municipal health services. (j) Fire fighting services serving the area of the district municipality as a whole, which includes- (i) planning, co-ordination and regulation of fire services; (ii) specialised fire fighting services such as mountain, veld and chemical fire services; (iii) co-ordination of the standardisation of infrastructure, vehicles, equipment and procedures; (iv) training of fire officers. (k) The establishment, conduct and control of fresh produce markets and abattoirs serving the area of a major proportion of the municipalities in the district. (l) The establishment, conduct and control of cemeteries and crematoria serving the area of a major proportion of municipalities in the district. (m) Promotion of local tourism for the area of the district municipality. (n) Municipal public works relating to any of the above functions or any other functions assigned to the district municipality. (o) The receipt, allocation and, if applicable, the distribution of grants made to the district municipality. (p) The imposition and collection of taxes, levies and duties as related to the above functions or as may be assigned to the district municipality in terms of national legislation. In addition, Eden District Municipality acknowledges its enabling role as stimulator, facilitator and a co-ordinator and seeks to achieve integrated, sustainable and equitable social and economic development of its area as a whole by ensuring integrated development planning and promoting bulk infrastructural development and services for the district as a whole, building the capacity of local municipalities in its area to perform their functions and exercise their powers where such capacity is lacking and promoting equitable distribution of resources between the local municipalities in its area to ensure appropriate levels of municipal services within the area. The Eden District encompasses a total area of 123 045km2 and is constituent of seven Category B-Municipali- ties within its geographic area, namely Bitou, Knysna, George, Mossel Bay, Hessequa, Oudtshoorn and Kannaland. CONTENT COMPONENT A: EXECUTIVE MAYOR’S FOREWORD 9 COMPONENT B: EXECUTIVE SUMMARY 11 1.1 MUNICIPAL MANAGER’S OVERVIEW 11 1.2. MUNICIPAL FUNCTIONS, POPULATION AND THE ENVIRONMENT 13 1.3. SERVICE DELIVERY OVERVIEW 17 1.4 FINANCIAL HEALTH OVERVIEW 19 1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW 21 1.6 AUDITOR GENERAL REPORT 22 1.7 STATUTORY ANNUAL REPORT PROCESS 22 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE 25 2.1 POLITICAL GOVERNANCE 25 2.2 ADMINISTRATIVE GOVERNANCE 36 COMPONENT B: INTERGOVERNMENTAL RELATIONS 39 2.3 INTERGOVERNMENTAL RELATIONS 39 COMPONENT C: PUBLIC ACCOUNTABILITY 42 2.4 IDP PARTICIPATION AND ALIGNMENT 43 COMPONENT D: CORPORATE GOVERNANCE 43 2.5 RISK MANAGEMENT 43 2.6 ANTI-CORRUPTION AND FRAUD 44 2.7 SUPPLY CHAIN MANAGEMENT 45 2.8 WEBSITE 47 2.9 COMMUNICATION 48 2.10 INTERNAL AUDIT 53 3. SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART 1) 59 4. ORGANISATIONAL DEVELOPMENT PERFORMANCE 127 5.1 CORPORATE/STRATEGIC SERVICES 141 5.2 FINANCIAL SERVICES 148 5.3 COMMUNITY SERVICES 149 6.1 FINANCIAL MATTERS 179 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE 179 6.2 GRANTS 181 6.3 ASSET MANAGEMENT 182 6.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS 183 COMPONENT B: SPENDING AGAINST CAPITAL BUDGET 183 6.5 CAPITAL EXPENDITURE 183 6.6 SOURCES OF FINANCE 184 6.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS 184 COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS 185 6.8 CASH FLOW 185 6.9 BORROWING AND INVESTMENTS 188 6.10 PUBLIC PRIVATE PARTNERSHIPS 189 COMPONENT D: OTHER FINANCIAL MATTERS 189 6.11 SUPPLY CHAIN MANAGEMENT 189 6.12 GRAP COMPLIANCE 190 COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS YEAR 2013/14 (PREVIOUS YEAR) 193 7.1 AG REPORT ON THE FINANCIAL STATEMENTS: YEAR 2013/14 194 COMPONENT B: AUDITOR-GENERAL OPINION 2014/15 (CURRENT YEAR) 200 7.2 AUDITOR GENERAL REPORT YEAR 2014/15 200 7.3 ACTION PLANS FOR AUDIT FINDINGS 205 APPENDIX C: THIRD TIER ADMINISTRATIVE STRUCTURE 225 APPENDIX D: FUNCTIONS OF MUNICIPALITY / ENTITY 227 APPENDIX G: RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE 228 APPENDIX H – LONG TERM CONTRACTS AND PUBLIC/PRIVATE PARTNERSHIPS 229 APPENDIX J – DISCLOSURES OF FINANCIAL INTERESTS 229 APPENDIX K(i): REVENUE COLLECTION PERFORMANCE BY VOTE 229 APPENDIX K (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE 230 APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG 230 APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/ RENEWAL PROGRAMMES 231 APPENDIX M (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME 231 APPENDIX M (ii) CAPITAL EXPENDITURE – UPGRADE/RENEWAL PROGRAMME 232 APPENDIX O: DECLARATION OF LOANS AND GRANTS MADE EDEN 232 APPENDIX Q: NATIONAL AND PROVINCIAL OUTCOMES FOR LG 232 APPENDIX R – DECLARATION OF LOANS AND GRANTS MADE BY EDEN 233 APPENDIX S - DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71 233 APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 1 234 REPORT OF THE AUDIT AND PERFORMANCE AUDIT COMMITTEE - EDEN 333 CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 1 GLOSSARY EXECUTIVE MAYOR’S FOREWORD AND EXECUTIVE SUMMARY ABBREVIATIONS APPENDICES VOLUME II AFS VOLUME 8 EDEN DISTRICT MUNICIPALITY annual report 2014/15 between the districts-, local-, national- and provincial spheres of government. This can be achieved through public participation, communication networks, as well as private business, leadership and entrepreneurship. While manifesting itself as a future directed planning process, sustainability inevitably always focuses on a backward looking circumspection of systems, operations, activities and risk calculation. B. KEY POLICY DEVELOPMENTS In order to give effect to the implementation of a municipality’s strategic objectives, workplace policies and guidelines are established to set boundaries for acceptable behaviour as well as guidelines for best prac- tices in certain work situations. The following policies were inter alia work shopped and approved by the Eden District Council during the past financial year: • Council’s Integrated Development Plan and Service Delivery and Budget Implementation Plan; Executive Mayor, Councillor Wessie van der Westhuizen • Council’s Budget and all budget related policies; • Performance Management Policy; COMPONENT A: EXECUTIVE • Various Human Resources Policies; • Human Resource Masterplan; MAYOR’S FOREWORD • Eden DM Medium Term Economic Development Strategy; A.VISION • Records Management Policy; • Eden Corporate Disaster Management Plan; During May 2012, Eden District Municipality adopted its • Eden Disaster Recovery Plan for Records; and vision “Eden, a future empowered through excellence” • Delegation System.