City of Johannesburg Annual Report 2016/17 1 Table of Contents About this Report.......................................................................................................................................................................... 6 Executive Mayor's Foreword .......................................................................................................................................................... 7 Statement by City Manager ........................................................................................................................................................... 11 Executive Summary ....................................................................................................................................................................... 13 Overview of Johannesburg’s Socio-Economic Environment ................................................................................................... 17 Strategic Response ....................................................................................................................................................................... 19 Governance, Compliance and Risk Management ...................................................................................................................... 26 The City of Johannesburg Council .............................................................................................................................................. 27 Clean, Accountable Governance.................................................................................................................................................. 39 2016/17 Performance Review ....................................................................................................................................................... 47 Performance on Planned SDBIP targets in 2016/2017 ............................................................................................................. 109 Organisational Development Performance ............................................................................................................................... 119 Group Chief Financial Officer's Report ..................................................................................................................................... 134 Annual Financial Statements ...................................................................................................................................................... 141 Auditor General's Report .........................................................................................................................................................293 Corrective Action Taken / To Be Taken To Resolve Auditor General Findings .................................................................304 Group Audit Committee Report ...............................................................................................................................................311 2 List of Tables and Figures Table 1: Chairpersons of Section 79 Committees ............................................................................................................. 30 Table 2: Municipal Entities ................................................................................................................................................ 39 Table 3: Group Audit Committee ...................................................................................................................................... 40 Table 4: Group Performance Audit Committee ................................................................................................................ 40 Table 5: Group Risk Governance Committee ................................................................................................................... 41 Table 6: Group Audit Outcomes ....................................................................................................................................... 41 Table 7: City-Wide Top-Ten Strategic Risks ...................................................................................................................... 43 Table 8: Claims Summary .................................................................................................................................................. 43 Table 9: Stakeholder Engagement Statistics ..................................................................................................................... 44 Table 10: Issues Raised by Stakeholders ........................................................................................................................... 45 Table 11: City Power Performance against IDP ................................................................................................................ 48 Table 12: Electricity Service Delivery Levels ..................................................................................................................... 49 Table 13: Summarised Financial Performance ................................................................................................................. 49 Table 14: Summarised Revenue Performance ................................................................................................................. 49 Table 15: Summarised Expenditure Performance ............................................................................................................ 50 Table 16: Summary of Capital Project Performance ........................................................................................................ 51 Table 17: Employee services ............................................................................................................................................. 52 Table 18: Expenditure by Capital Budget Category .......................................................................................................... 57 Table 19: Completed Projects ........................................................................................................................................... 57 Table 20: Major Bulk water Capital Projects .................................................................................................................... 58 Table 21: Reservoir Projects ............................................................................................................................................. 58 Table 22: Joburg Water Performance against IDP ............................................................................................................ 59 Table 23: Joburg Water Employees .................................................................................................................................. 60 Table 24: Waste Management Performance against IDP ................................................................................................. 62 Table 25: Service Delivery Levels ...................................................................................................................................... 63 Table 26: Waste Management Capital Expenditure ......................................................................................................... 64 Table 27: Waste Management Employees ....................................................................................................................... 65 Table 28: Roads Services Policy Objectives ...................................................................................................................... 67 Table 29: Storm Water Drainage Policy Objectives .......................................................................................................... 68 Table 30: Roads Services Capital Expenditure .................................................................................................................. 69 Table 31: Roads Services Employees ................................................................................................................................ 69 Table 32: Housing Services Performance against IDP Targets.......................................................................................... 71 Table 33: Housing Services Capital Expenditure ............................................................................................................... 73 Table 34; Housing Services Employee Relations............................................................................................................... 74 Table 35: Waste tons Diverted ......................................................................................................................................... 75 Table 36: Sector Based Projects Carbon Emissions Offset ............................................................................................... 75 Table 37: Environmental Services IDP Objectives ............................................................................................................ 76 Table 38: Rea Vaya Service Data ....................................................................................................................................... 77 Table 39: Transportation Services Operational Expenditure ........................................................................................... 78 Table 40: Transportation Services Capital Expenditure ...................................................................................................