VULAMEHLO LOCAL MUNICIPALITY ANNUAL REPORT 2015/2016 _____________________________________________________________________________________ Vulamehlo Local Municipality Draft Annual Report 2015/2016 Financial Year ___________________________________________________________________________________ CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY ...................................................... 5 COMPONENT A: MAYOR’S FOREWORD ............................................................................................................... 6 1.1. FOREWORD BY THE MAYOR ........................................................................................................................ 6 COMPONENT B: EXECUTIVE SUMMARY ............................................................................................................... 7 1.1. MUNICIPAL MANAGERS OVERVIEW ............................................................................................................ 7 1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW ......................................... 81.3. SERVICE DELIVERY OVERVIEW ................................................................................................................... 18 1.4. FINANCIAL HEALTH OVERVIEW ................................................................................................................. 26 1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW ......................................................................................... 27 1.6. AUDITOR GENERAL REPORT ...................................................................................................................... 28 CHAPTER 2 – GOVERNANCE ...................................................................................................................... 29 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE..................................................................... 30 2.1. POLITICAL GOVERNANCE .......................................................................................................................... 30 2.2. ADMINISTRATIVE GOVERNANCE ............................................................................................................... 33 COMPONENT B: INTERGOVERNMENTAL RELATIONS ......................................................................................... 35 2.3. INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS .................. 35 COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ....................................................................... 36 2.4. OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION ................................................................. 36 2.5. PUBLIC MEETINGS ..................................................................................................................................... 37 2.6. IDP PARTICIPATION AND ALIGNMENT ....................................................................................................... 39 COMPONENT D: CORPORATE GOVERNANCE ..................................................................................................... 40 2.7. OVERVIEW OF CORPORATE GOVERNANCE ............................................................................................... 40 2.8. RISK MANAGEMENT .................................................................................................................................. 41 2.9. ANTI-CORRUPTION AND FRAUD ................................................................................................................ 45 2.10. SUPPLY CHAIN MANAGEMENT .................................................................................................................. 46 2.11. BY-LAWS .................................................................................................................................................... 46 2.12. WEBSITE .................................................................................................................................................... 46 2.13. PUBLIC SATISIFACTION ON MUNICIPAL SERVICES ..................................................................................... 47 CHAPTER 3 - SERVICE DELIVERY PERFORMANCE ............................................................................... 49 (PERFORMANCE REPORT PART I) ............................................................................................................. 49 3. PERFORMANCE OVERVIEW ........................................................................................................................ 50 3.1. INTRODUCTION ......................................................................................................................................... 50 3.2. OVERALL PERFORMANCE OF THE MUNICIPALITY ...................................................................................... 51 3.3. BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT ............................................................ 52 3.4. LOCAL ECONOMIC DEVELOPMENT............................................................................................................ 57 3.5. MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT ..................................................... 61 3.6. GOOD GOVERNANCE AND PUBLIC PARTICIPATION ................................................................................... 63 3.7. FINANCIAL VIABILITY AND MANAGEMENT ................................................................................................ 68 3.8 CROSS CUTTING ................................................................................................................................................ 73 CHAPTER 4 - ORGANISATIONAL DEVELOPMENT PERFORMANCE ................................................... 76 2 Vulamehlo Local Municipality Draft Annual Report 2015/2016 Financial Year ___________________________________________________________________________________ (PERFORMANCE REPORT PART II) ............................................................................................................ 76 COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL .................................................................... 77 4.1. INTRODUCTION ...................................................................................................................................... 77 4.2. EMPLOYEE TOTALS (INCL. MANAGERS), TURNOVER AND VACANCIES ................................................... 77 4.3. VACANCIES AND TURNOVER .................................................................................................................. 78 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE .............................................................................. 78 4.4. INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT ............................................................... 78 4.5. HR POLICIES AND PLANS ........................................................................................................................ 78 4.6. WORKFORCE POLICY DEVELOPMENT: .................................................................................................... 79 4.7. INJURIES, SICKNESS AND SUSPENSIONS ................................................................................................. 79 4.7.1. INJURY AND SICK LEAVE ............................................................................................................................... 80 4.7.2. SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT ....................................................................................... 80 4.8. PERFORMANCE REWARDS ..................................................................................................................... 80 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ......................................................................... 81 4.9. SKILLS DEVELOPMENT AND TRAINING ................................................................................................... 81 4.10. SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL COMPETENCY REGULATIONS ..................................................................................................................................................... 83 COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE .......................................................................... 84 4.11. EMPLOYEE EXPENDITURE ....................................................................................................................... 84 4.12. DISCLOSURES OF FINANCIAL INTERESTS ................................................................................................. 84 CHAPTER 5 - FINANCIAL PERFORMANCE ............................................................................................... 85 5.1. INTRODUCTION ...................................................................................................................................... 86 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE ........................................................................... 87 5.2. STATEMENTS OF FINANCIAL PERFORMANCE .......................................................................................... 88 5.3. FINANCIAL PERFORMANCE:.................................................................................................................... 92 5.4. GRANTS .................................................................................................................................................