Committing to a promising future A world class African city that is resilient, sustainable and liveable City of Johannesburg Integrated Annual Report 2012/2013 Structure of the Report..........................5 Executive Mayor’s Foreword and Executive Summary...............................12 Executive Mayor’s Foreword.......................................................12 1 City Manager’s Executive Summary............................................15 Governance...........................................20 2 Strategy and Service Delivery Performance..........................................32 Planning for the Future: Joburg 2040 .....................................32 3 Sustainable Services Cluster .....................................................41 Economic Growth Cluster ........................................................81 Human and Social Development Cluster ..................................87 Good Governance Cluster .....................................................113 Corporate Policy Offices: Financial Services ............................116 1 Organisational Development Performance........................................167 4 Chief Financial Officer’s Report............175 5 Auditor General’s Findings.................370 6 Appendix A: .......................................376 Councillors, Committee Allocation and Council Attendance Appendix B: ........................................384 Committees and Committee Purposes Appendix C: ........................................385 List of Abreviations Acronyms...........386 2 • Appendices. Structure of the Integrated • Volume II: AFS. Annual Report This report forms part of a two-part annual integrated National Treasury’s MFMA Annual Report Circular 63 requires reporting framework. It provides a comprehensive integrated municipalities and municipal entities to adopt the following view of the City’s performance for the 2012/13 reporting format for an Annual Report: year. It has been compiled in line with the format outlined • Chapter 1: Mayor’s Foreword and Executive above and includes the consolidated Financial Statements, Summary. Annual Performance Report and the Auditor General’s Audit • Chapter 2: Governance. report. • Chapter 3: Service Delivery Performance. • Chapter 4: Organisational Development A second Integrated Annual Report (Abridged Version: Performance. Book 1) provides an abridged representation of the • Chapter 5: Financial Performance. City’s performance for the year and forms the primary • Chapter 6: Auditor General’s Findings. communication report to all City stakeholders. Figure 1: The City of Johannesburg’s reporting for 2012/13 consists of two books Book 1 Book 2 2012/13 Integrated 2012/13 Annual Report Integrated Annual (Abridged Version) Report The 2012/13 Integrated Annual Re- The 2012/13 Integrated Annual Content port (Abridged version) is the Report contains the Conslidated City’s primary report to all Financial Statement, Annual stakeholders and is an abridged Performance Report and the representation of the Auditor General’s Audit report. Consolidated Annual Report. Distribution Printed and distributed Printed and distributed Also available online in Also available online in PDF/HTML format: PDF/HTML format: wwww.joburg.org.za wwww.joburg.org.za Informed by • Municipal Finance Management Act (MFMA) • Public Finance Management Act (PFMA) • Generally Recognised Accounting Principles (GRAP) • Section 46(1) of the Municipal Systems Act (MSA) • King lll Code on Corporate Govemance (King lll) • Discussion papers issued by the South African Integrated Reporting Committee and the International Integrated Reporting Council (IIRC) • International Financial Reporting Standards (IFRS) • GRI Framework • Millennium Development Goals • Joburg 2040 Growth and Development Strategy (GDS) • 2012/16 Integrated Development Plan (IDP) 5 An integrated approach to budgeted for and achieved. The National Treasury guidelines note the inherent tension between strategic planning and reporting budgeting, which often makes it difficult to achieve the desired level of integration. Chapter 3 of this report interlinks This Report is the first in which the City purposely the City’s forward-looking strategic planning perspective attempts to comply with the principles–based approach with its reporting of both service performance and financial of integrated reporting as proposed by the International performance for the 2012/13 year, thereby providing a Integrated Reporting Council and the South African strategic long-term context for short to medium-term Integrated Reporting Committee. The integrated approach operational and budgetary information. to reporting aligns with the City’s integrated approach to strategy formulation and operational management. The In addition, the report has been informed by the guiding City has adopted this approach to enhance its commitment principles of the South African Integrated Reporting to recommendations of the King III Code on Corporate Committee and the International Integrated Reporting Governance, which sets out international leading practices Council (IIRC). These include the principles-based for governance of private and public organisations, including requirements of a strategic focus and future orientation; a recommendation that these organisations undertake the connectivity of information; stakeholder responsiveness; integrated reporting. materiality and conciseness; reliability and completeness; as well as consistency and comparability. The report further complies with legislative prescripts and conforms to National Treasury guidelines on annual The table below outlines the integrated reporting principles reporting, which emphasises the integration of strategic followed, as well as instances in both this Integrated Annual plans and operational budgets to improve operational Report (Book 2) and the Integrated Annual Report (Abridged effectiveness. The main aim of interlinking plans and Version: Book 1) where these principles have been applied. budgets is to ensure that key objectives and priorities are Table 1: Principles-Based Integrated Reporting Index (Covering Book 1 and Book 2) Integrated Instances where these principles have been applied in both the Integrated Annual Report (Abridged reporting Version: Book 1) and the Integrated Annual Report (Book 2) principles Book 1: Abridged Version Book 2: Integrated Annual Report Strategic focus • Executive Mayor’s Foreword • Executive Mayor’s Foreword and future • City Manager’s Executive Summary • City Manager’s Executive Summary orientation of • City of Johannesburg at a glance: A value-based • Chapter 2: Governance - Cluster Mayoral Sub- information strategy Committees • City of Johannesburg at a glance: 10 Priorities for • Chapter 2: The interlinking of Mayoral the future Programmes, strategic imperatives and the City’s • City of Johannesburg at a glance: Programme top five risks in the ERM table delivery through four clusters • Chapter 3: Planning for the future: Joburg 2040 • Governance: Cluster Mayoral Sub-Committees • Chapter 3: A value-based strategy • The City of Johannesburg: A vision for the future • Chapter 3: Priority programmes • Joburg 2040 GDS: A roadmap for a resilient, • Chapter 3: Johannesburg’s Spatial Development sustainable and liveable city Framework (SDF) • The interlinking of Mayoral Programmes, strategic • Chapter 3: Service Cluster reviews: performance imperatives and the City’s top five risks in the ERM against SDBIP targets table in this report. • Cluster reviews: performance against SDBIP targets • Future outlook at the end of this report, aligns with the Executive Mayor’s State of the City Address (accessible at: www.joburg.org.za: > home > speeches) Connectivity of • The use of icons to reference interlinking cluster- • The use of icons to reference interlinking cluster- information related information related information • Inter-connectivity between this Integrated Annual • Chapter 3: performance commentary relative to Report (Abridged Version: Book 1) and the budgetary performance Integrated Annual Report (Book 2) • The interlinking of Mayoral Programmes, strategic • The interlinking of Mayoral Programmes, strategic imperatives and the City’s top five risks in the ERM imperatives and the City’s top five risks in the ERM table in the report. table in this report. 6 Integrated Instances where these principles have been applied in both the Integrated Annual Report (Abridged reporting Version: Book 1) and the Integrated Annual Report (Book 2) principles Book 1: Abridged Version Book 2: Integrated Annual Report Stakeholder • Stakeholder responsiveness framework • Stakeholder responsiveness framework responsiveness • Inviting reader feedback on this report • Inviting reader feedback on the report • Future outlook emphasis on stakeholder priorities. Materiality and • Table 2: Defining ‘material’ issues for integrated • Table 2: Defining ‘material’ issues for integrated conciseness reporting reporting • Stakeholder responsiveness framework • Interconnectivity of strategic and operational • Interconnectivity of strategic and operational information as referenced by cluster icons information as referenced by cluster icons Reliability and • Assurance of the Integrated Annual Report • Assurance of the Integrated Annual Report completeness (Abridged Version: Book 1) and the Integrated (Abridged Version: Book 1) and the Integrated Annual Report (Book 2) Annual Report (Book 2) • The approval of the Integrated Annual Report • The approval of the Integrated