CAPE AGULHAS MUNICIPALITY DRAFT ANNUAL REPORT 2017/18 2 | P a g e CAPE AGULHAS MUNICIPALITY DRAFT ANNUAL REPORT 2017/18 CONTENTS FOREWORDS ........................................................................................................................................................ 8 MAYORS FOREWORD ................................................................................................................................................ 8 MUNICIPAL MANAGERS FOREWORD ..................................................................................................................... 10 CHAPTER 1: EXECUTIVE SUMMARY ........................................................................................................................... 12 1.1 MUNICIPAL OVERVIEW ............................................................................................................................... 12 1.2.1 VISION, MISSION AND VALUES .............................................................................................................. 12 1.2.2 GEOGRAPHIC AREA ................................................................................................................................ 13 1.2 DEMOGRAPHIC, SOCIO ECONOMIC AND ENVIRONMENTAL OVERVIEW ............................................... 16 1.2.1 DEMOGRAPHIC OVERVIEW................................................................................................................... 16 1.2.2 HOUSEHOLDS ........................................................................................................................................ 19 1.2.3 SOCIO ECONOMIC OVERVIEW .............................................................................................................. 20 1.2.4 ENVIRONMENTAL OVERVIEW ................................................................................................................ 21 1.3 BASIC SERVICE DELIVERY OVERVIEW ............................................................................................................. 24 1.3.1 BASIC SERVICE DELIVERY PERFORMANCE HIGHLIGHTS ......................................................................... 24 1.3.2 BASIC SERVICE DELIVERY CHALLENGES .................................................................................................... 25 1.3.3 HOUSEHOLD ACCESS TO BASIC SERVICES ................................................................................................ 26 1.4 FINANCIAL HEALTH OVERVIEW – TO BE INSERTED ON COMPLETION OF CHAPTER 5 .......................... 26 1.4.1 FINANCIAL VIABILITY HIGHLIGHTS ....................................................................................................... 26 14.2 FINANCIAL VIABILITY CHALLENGES ..................................................................................................... 26 1.4.3 FINANCIAL VIABILITY (RATIO’S) ............................................................................................................ 27 1.4.4 FINANCIAL OVERVIEW ........................................................................................................................... 27 1.4.5 OPERATING RATIO’S ............................................................................................................................. 28 1.4.6 TOTAL CAPITAL EXPENDITURE ............................................................................................................. 28 1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW ............................................................................................. 28 1.5.1 MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT HIGHLIGHTS .................. 28 1.5.2 MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT CHALLENGES ................ 29 1.5.3 EMPLOYMENT EQUITY .......................................................................................................................... 29 1.5.4 SKILLS DEVELOPMENT .......................................................................................................................... 29 1.6 AUDITOR GENERAL REPORT ..................................................................................................................... 30 1.6.1 AUDIT OUTCOMES ................................................................................................................................. 30 CHAPTER 2: GOVERNANCE ......................................................................................................................................... 31 2.1 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ......................................................... 31 2.1.1 GOVERNANCE STRUCTURE .......................................................................................................................... 31 2.2 COMPONENT B: INTERGOVERNMENTAL RELATIONS ............................................................................. 36 2.2.1 INTERGOVERNMENTAL STRUCTURES........................................................................................................ 36 2.2.2 JOINT PROJECTS AND FUNCTIONS WITH SECTOR DEPARTMENTS ....................................................... 37 2.3 COMPONENT C: PUBLIC ACCOUNTABILITY .............................................................................................. 39 2.3.1 WARD BASED PUBLIC MEETINGS ......................................................................................................... 39 2.3.2 WARD COMMITTEES ...............................................................................................................................41 3 | P a g e CAPE AGULHAS MUNICIPALITY DRAFT ANNUAL REPORT 2017/18 2.3.3 REPRESENTATIVE FORUMS ......................................................................................................................... 44 2.4 COMPONENT D: CORPORATE GOVERNANCE ................................................................................................ 45 2.4.1 RISK MANAGEMENT .............................................................................................................................. 45 2.4.2 ANTI-CORRUPTION AND ANTI-FRAUD ................................................................................................. 48 2.4.3 AUDIT COMMITTEE ................................................................................................................................ 49 2.4.4 PERFORMANCE AUDIT COMMITTEE .................................................................................................... 52 2.4.5 INTERNAL AUDITING .............................................................................................................................. 54 2.4.6 BY-LAWS AND POLICIES ........................................................................................................................ 55 2.4.7 COMMUNICATION ........................................................................................................................... 55 2.4.8 THE MUNICIPAL WEBSITE ..................................................................................................................... 57 2.4.9 CLIENT SERVICES .......................................................................................................................................... 58 2.4.10 SUPPLY CHAIN MANAGEMENT ......................................................................................................... 59 CHAPTER 3: SERVICE DELIVERY PERFORMANCE ................................................................................................... 74 3.1 INTRODUCTION .......................................................................................................................................... 74 3.2 LEGISLATIVE FRAMEWORK .............................................................................................................................. 74 3.3 OVERVIEW OF PERFORMA NCE MANAG EMENT WITHI N THE MUNICIPALITY ................... 75 3.3.1 ORGANISATIONAL PERFORMANCE MANAGEMENT ........................................................................... 75 3.3.2 THE PERFORMANCE MANAG EMENT SYSTEM .......................................................... 76 3.3.3 INDIVIDUAL PERFORMANCE MANAG EMENT ........................................................... 76 3.3.4 SERVICE PROVIDER STRATEG IC PERFORMANCE ........................................................ 77 3.4 STRATEGIC PERFORMANC E 2017/18 .................................................................................. 78 3.4.1 OVERVIEW ............................................................................................................. 78 3.4.2 DETAILED PERFORMANCE FOR 2017/18 PER STRATEGIC OBJECTIVE .................................................... 80 3.5 MUNICIPAL FUNCTIONS ............................................................................................... 102 3.6 OVERVIEW OF PERFORMA NCE PER WARD / TOWN ....................................................... 103 3.6.1 BASIC SERVICE DELIVERY PER TOWN ....................................................................................................... 103 3.6.2 BASIC SERVICE PRIORITIES AND DELIVERY PER WARD .......................................................................... 103 3.7 COMPONENT A: BASIC SERVICES ................................................................................................................... 107 3.7.1 WATER ..........................................................................................................................................