draft unaudited annual report - amahlathi reports/2… · amahlathi local municipality – draft...

2016/17

DRAFT UNAUDITED ANNUAL REPORT

Amahlathi Local Municipality – Draft Unaudited Annual Report 2016/17

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1. VISION

Amahlathi Local Municipality as an integrated unit shall become the model for community

empowerment, decentralised, participative management, and a transformed and proactive

municipality.

2. MISSION

Amahlathi Municipality in partnership with its community shall:

Create sustainable and better services for all

Improve communications with stakeholders and community.

Emphasise better usage of resources

Provide infrastructure and

Build investor confidence through local economic strategy

3. VALUES

In implementing the above, the Amahlathi Municipality subscribes to the following values

Team work

Trust

Honesty

Responsibility

Dedication

Value and acknowledgement of the individual.

Integrity

Work Ethics

Transparent and Clean Government.

Tolerance

Understanding

Good Leadership

Accountability

Value for Money

Efficiency and Affordability; and

Developmental Local Government striving for effectiveness and Performance.


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Table of Contents ACRONYMS……………………………………………………………………………………………………………….……5

CHAPTER 1: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY …………………………………...8

A:MAYOR’S FOREWORD …………………………………………………………………………………….……….8

B:STATEMENT OF THE MUNICIPAL MANAGER ……………………………………………………….………..10

C: EXECUTIVE SUMMARY ………………………………………………………………………………………….12

1.1 Municipal Manager’s overview ……………………………………………………………………………12

1.2 Population & Household dynamics ………………………………………………………………………13

1.3 Household Income distribution ……………………………………………………………………………14

1.4 Access to basic services …………………………………………………………………………………..14

1.5 Financial Overview …………………………………………………………………………………………17

1.6 Auditor General Report 2015/16 Financial Year ………………………………………………………..17

1.7 Statutory Annual Report Process …………………………………………………………………………18

CHAPTER 2: GOVERNANCE …………………………………………………………………………….19

A. POLITICAL AND ADMINISTRATIVE GOVERNANCE …………………………………………………………19

2.1. Political Structure of Amahlathi Local Municipality……..…………………………………………...19

i. Mayoral / Executive Committee …………..…………………………………………………………………20

ii. Standing Committees…………………………………………………………………………………………21

iii. Section 79 Committees ………………………..…………………………………………………………...23

a) Municipal Public Accounts Committee (MPAC) ………………………………………………….…..23 b) Audit and Performance Committee ……………………………………………………………………23 c) Women Caucus ………………………………………………………………………………………….24

iv. OTHER COMMITTEES …………………………………………………………………………………..…24

a) Local Labour Forum …………………………………………………………………………………….24 b) Training Committee ……………………………………………………………………………………..24

2.2 Administrative Structure of Amahlathi Municipality ………………………….…………………………..26

B. INTERGOVERNMENTAL RELATIONS …………………………………………………………………………..30

2.3 INTERGOVERNMENTAL RELATIONS COMMITTEE …………………………………..…………..30

C. PUBLIC ACCOUNTABILITY AND PARTICIPATION ……………………………………………………………30

2.4 PUBLIC ACCOUNTABILITY …………..………………………………………….……………………30

2.5 IDP PARTICIPATION AND ALIGNMENT ………..……………………….…………………………..32

D. CORPORATE GOVERNANCE ……………………………………………………………………………… …..32 2.6 RISK MANAGEMENT …………………………………………………………………………………….…...32

2.7 ANTI- CORRUPTION AND FRAUD ………………..………………….……………………….…….33

2.8 SUPPLY CHAIN MANAGEMENT ……………………..………………………………………………33

2.9 WEBSITE ……………………………………………………………………………………….………..34

2.10 BY-LAWS …………………………………………………………………………………………………….....35 2.11 PUBLIC SATISFACTION ……………………………………………………………………………………..35

CHAPTER 3: SERVICE DELIVERY PERFORMANCE …………………………………………………….36

3.1 INTRODUCTION …………………………………………………………………………………………………..36

3.2 INSTITUTIONAL PERFORMANCE MANAGEMENT PROCESS OVERVIEW ………………………….….37

3.3 CHALLENGES FACED BY THE MUNICIPALITY ……………………………………………………………...39


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3.4 CHANGES TO PLANNED TARGETS ………………………………………………………………………...…40

3.5 PROGRESS REPORT ON AUDITOR GENERAL' FINDINGS…………………………………………….…..42

3.6 FINANCIAL PERFORMANCE INFORMATION - CAPITAL EXPENDITURE 2014/15 ….………………....43

3.7 SERVICE PROVIDER PERFORMANCE ………………………………………………….…………………....44

3.8 DETAILED 2016/17 PERFORMANCE PER KPA……………………………………….……………………....48

GOOD GOVERNANCE AND PUBLIC PARTICIPATION.. ……………………….…………………………48

LOCAL ECONOMIC DEVELOPMENT)….…………………………………….……………………………. .58

MUNICIPAL FINANCE VIABILITY………………………………… ………………………………………….63

SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT ………………………………….……70

MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT…………….….……………91

CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE ………………………………...101

4.1 INTRODUCTION ………………………………………………………………………………………….………101

4.2. MUNICIPAL WORKFORCE & LEVELS OF REPORTING ………………………………………….………101

4.3 MANAGING THE MUNICIPAL WORKFORCE ………………………………………………………..………103

4.4 CAPACITATING THE MUNIPAL WORKFORCE …………………………………………………….……….111

4.5 MANAGING THE WORKFORCE EXPENDITURE ……………………………………………………….…..115

CHAPTER 5: FINANCIAL PERFORMANCE ……………………………………………………….……...117

5.1 INTRODUCTION ………………………………………………………………………………………………….117

COMPONENT A: STATEMENT OF FINANCIAL PERFORMANCE……………………………………………..118

5.2. ASSET MANAGEMENT ……………………………………………………………………………….………..125

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET …………………………………………………..128

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS …………………………………….…131

5.3 SUPPLY CHAIN MANAGEMENT ………………………………………………………………………………134

5.4 GRAP COMPLIANCE ……………………………………………………………………………………………134

CHAPTER 6: AUDITOR GENERAL FINDINGS …………………………………………………………..134

6.1 INTRODUCTION …………………………………………………………………………………………………135

6.2 AUDITOR GENERAL OPINION 2015/16 ………………………………………………………………….….135

2015/16 AUDIT ACTION PLAN …………………………………………………………………………………….135

6.3 AUDIT REPORT OF THE AUDITOR GENERAL 2016/17 FINANCIAL YEAR …………………180

6.4 AUDIT COMMITTEE REPORT…………………………………………………………………………………185

CHAPTER 7 APPENDICES …………………………………………………………………………………186

APPENDIX A: Councillors, Committees Allocated and Council Attendance……………………..190

APPENDIX B: Committees (other than Mayoral / Executive Committee) ………………………....192

APPENDIX C: FUNCTIONS OF MUNICIPALITY……….. .…………………………………………….195

APPENDIX D: WARD REPORTING …………………………………………………………………….....196

APPENDIX E: MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS ……………………….…..200

APPENDIX F: Disclosures of Financial Interests …………………………………………………......205

APPENDIX G: Revenue Collection Performance by Vote ……………………………………………206

APPENDIX H: LONG TERM CONTRACTS ………………………………………………………….…..207

APPENDIX I Municipal Entity………………..………………..……………………………………………208

APPENDIX J: Revenue Collection Performance by Source ………………………………….……..209


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APPENDIX K: Conditional Grants excluding MIG ……………………………………………….…...210

APPENDIX L: Capital Expenditure - New Assets Programme ……………………………….…….212

APPENDIX M: CAPITAL PROGRAMME ………………………………………………………….……..220

APPENDIX N: Declaration of Loans and Grants made by the municipality ……………………..222

APPENDIX 0: COGTA KEY PERFORMANCE INDICATORS ……………………….…………….…...223

VOLUME II: AUDITED ANNUAL FINANCIAL STATEMENTS ………………………………………...232


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ACRONYMS

IDP- Integrated Development Plan

PGDP- Provincial Development Growth Plan

SCM- Supply Chain Management

MIG- Municipal Infrastructure Grant

SDBIP- Service Delivery & Budget Implementation Plan

MRM- Moral Regeneration Movement

MPAC -Municipal Public Accounts Committee

FMG- Finance Municipal Grant

MSIG- Municipal Systems Improvement Grant

LLF- Local Labour Forum

MM- Municipal Manager

CFO- Chief Finance Officer

MTREF- Medium Term Revenue Expenditure Framework

GRAP- General Recognised Accounting Practise

SANRAL- South African National Road Agency Limited

SALGA- South African Local Government Association

ADM- Amathole District Municipality

NER- National Electricity Regulations

SMMEs- Small Medium and Micro Enterprises

HR- Human Resource

OHS- Occupational Health and Safety

MFMA- Municipal Finance Management Act

CLLR- Councillor

PR CLLR- Proportional Representative Councillor

PMS- Performance Management System

IGR- Intergovernmental Relations

DCF- District Communicators Forum (DCF)

DEDEAT- Department of Economic Development Environmental Affairs and Tourism

DRDAR- Department of Rural Development and Agrarian Reform

NGO- Non- Governmental Organisations


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AFS- Annual Financial Statements

CIPC- Companies & Intellectual Property Commission

KPI- Key Performance Indicator

KPA- Key Performance Area

TCS- Traffic Contravention System

DPSA- Department of Public Services and Administration

VAT- Value Added Tax

AOPO- Audit of Predetermined Objectives

MTEF- Medium Term Expenditure Framework

SMART – Specific, Measurable, Achievable, Realistic and Timely

HODs- Head of Departments (HODs)

ICT- Information Communication Technology

PPE- Property Plant & Equipment

FAR- Fixed Asset Register

AC- Audit Committee

MPRA- Municipal Property Rates Acts

AG- Auditor General

FY- Financial Year

COGTA- Cooperative Governance and Tradition Affairs

KKH- Keiskammahoek

SLA- Service Level Agreement

DR- Disaster Recovery

IT- Information Technology

MEC- Member of Executive Council

Q1- Quarter 1

Q2- Quarter 2

Q3- Quarter 3

Q4- Quarter 4

AO- Accounting Officer

IA- Internal Audit

PPP- Private Public Partnership


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N/A- Not Applicable

ALM- Amahlathi Local Municipality

EPWP- Extended Public Work Programme

GSFPA- Greater Stutterheim Fire Protection Association

UIF- Unemployment Insurance Fund

CA- Chartered Accountant

SA- South Africa

SPU- Special Programs Unit

LTO- Local Tourism Organisation

CTO- Community Tourism Organisation

LED- Local Economic Development

SALGBC- South African local Government Bargaining Council

CWP- Community Works Programme

MCCP- Mlungisi Community Commercial Park

DSRAC- Department of Sport Recreation Arts and Culture

EAP- Employment Awareness Programme

HRD- Human Resource Development

YTD- Year to Date

EEP- Employment Equity Plan

WSP- Workplace Skills Plan

LGSETA- Local Government Sector Education Training Authority

NERSA- National Energy Regulation South Africa

BTO- Budget and Treasury Office

MVR- Motor Vehicle Registration

SDI- Service Delivery and Infrastructure Development

MFV- Municipal Financial Viability

MTI- Municipal Transformation and Institutional Development

GGP- Good Governance and Public Participation


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CHAPTER 1: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

MAYOR’S FOREWORD

It was sixteen years ago when the municipality was established through Amalgamation

in 2000 with a distinct set of fragmented very small rural towns making it unique in its

own right like other municipalities of Amathole District. The Amatola mountain range,

the Keiskammahoek water catchment, the Dohne sourveld, the annual rainfall of

600mm or more, the timber and its high agricultural potential makes Amahlathi unique.

It is this potential and its unique features that makes Amahlathi a rapid catch up with our

sister municipalities in the Amathole and eventual leadership in key areas such as small

towns regeneration, timber industry and agriculture.

The constitution of the republic establishes local government as the sphere of government

that should provide a democratic and accountable government for local communities. As

the sphere of government accountable to its people, Amahlathi Local Municipality will always be evaluated on its

ability to meet the growing needs of its people through rendering quality services, promoting economic

development, fiscal discipline, ensuring that it governs effectively and facilitating the growth of the municipality.

The Local Government: Municipal Finance Management Act, 56 of 2003 (MFMA) commands Amahlathi

Municipality to prepare an annual report for each financial year. Section 127(2) of the Act, requires that the Mayor,

within seven months after the end of a financial year, to table in the municipal council the annual report of the

municipality. It is against this legislative requirement that the Amahlathi Local Municipality has prepared this

document.

The Annual Report is an account of how the municipality has taken up the challenge to grow the Amahlathi area,

to effectively engage our community and develop partnerships with our business sector. Section 46(1) of the

Municipal Systems Act (MSA) requires municipalities to prepare a performance report for each financial year,

setting out the performance of the municipality and its external service providers. The report should measure

current performance against targets and performance in the previous financial year and outline measures to

improve performance in the year ahead. The annual performance report must form part of the annual financial

report.

It is therefore my pleasure to present this Annual Report of Amahlathi Local Municipality for the period of 2016/17

to Council, the Amahlathi community, the National and Provincial Treasury, the Local Government, Auditor General

and other stakeholders.

Whilst the role of the Office of the Mayor is established to provide political guidance and ensuring that governance

structures exist and are functional, it is also the legislative requirement enshrined in the Municipal Finance

Management Act that I present this report to all Amahlathi Local Municipality’s stakeholders.

The municipality has managed to render basic services to improve the lives of its communities even though

everything done was against the backdrop of limited financial resources to fund various projects. The municipality

appreciates the strides it has made to address the needs and aspirations of Amahlathi communities and recognises

that there is even more that still remains to be done.

Our role and responsibility as Amahlathi Local Council is to implement projects that have been budgeted for and

translated into a Service Delivery Implementation Plan. It is in this regard that the Office of the Mayor applauds the

dedication displayed to accomplish this good work.

Amahlathi Local Municipality is determined to achieve its strategic objectives through partnership with communities

in addressing the basic services as outlined in its Integrated Development Plan (IDP). It is also important to mention


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that the municipality has aligned its planning to the Provincial Growth and Development Plan (PGDP), through the

development of targets that focuses on addressing issues identified in the PGDP. This is done in order to improve

the quality of lives of its community.

The tabling of the annual report therefore is highly significant for a participatory democracy like South Africa in that

it is characterised by an open and transparent relationship between the government and the communities.

I would like to thank the community of Amahlathi for continuously believing in the municipality, participating in the

programmes, their willingness to be part of the collective and for taking care of their assets and investments. I

would also like to extent my gratitude to my fellow Councillors, the Audit Committee, Senior Management and staff

for their undivided commitment to collectively participate in Municipality’s developmental Agenda.

_____________________

Cllr. P. Qaba Her Worship, the Mayor Amahlathi Local Municipality


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B: STATEMENT OF THE MUNICIPAL MANAGER

In terms of Section 121 of the Local Government: Municipal Finance Management Act, 56 of 2003 and Section 46

of the Local Government: Municipal Systems Act No 32 of 2000, every municipality and municipal entity must

prepare an annual report for each financial year, also complied with the National Treasury Circular No. 63 that

outlines Annual Report Guidelines. Amahlathi has compiled this report in fulfilment of this legal obligation and it

entails Amahlathi Local Municipality’s strategic focus, provides an overview on its performance and sets out

Council’s financial position for the 2016/2017 financial year. The report also outlines the details of the various

programmes managed by the Directorates of Amahlathi Local Municipality and how the municipality has performed

towards meeting the set targets. The municipality firmly believes that it is on track towards meeting the growth and

set developmental targets although this year’s challenges impacted negatively on the overall performance of the

Municipality.

The overall performance has dropped by 9.07% from an 87% in 2015/16 to 77.93% now in 2016/17. One should

bear in mind that the year 2016/17 also marks the beginning of a new term of office for the council. This

performance is 14% better than 2011/2012 financial year which marks the beginning of the previous council’s term

of office. It is a trend that performance drops during such years.

During 2016/17 financial year, Amahlathi Local Municipality received an “unqualified audit opinion”, the basis for

the opinion is that the municipality had an unauthorised expenditure of R23m on overspending, irregular

expenditure of R36m due to flouting of SCM processes and regulations, material losses on distribution of electricity

amounting to R2, 8m and restatement of corresponding figures. The municipality has put measures in place in

order to improve through the development of an action plan to address the issues raised by Auditor General.

The municipality budgeted to collect R272m, this included an amount of R40m to be financed from accumulated surplus. The actual collected at year end is R213m. This is less than what was anticipated due to among other reasons; under collection in rates and service charges, late appointment of debt collector, slow registration of indigents and the processing of corresponding journals. Capital budgeted was R37m which included R21m for MIG Projects as well as R16m funded from internally.

The key priority areas of the institution during the year under review find their expression in the Integrated

Development Plan, Budget and Service Delivery and Budget Implementation Plan and include the following:

a) Performance management

b) Community Works Programme

c) Expanded Public Works Programme

d) Implementation of basic services to communities

e) Meeting of statutory timelines and reporting frameworks.

f) Development, review and approval of municipal policies.

g) Enhance public participation programme

h) Deal with administrative matters that will ensure the smooth induction of Council


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In the 2016/17 financial year, the following areas received priority

a) Institutionalisation of outcomes approach

b) Accelerating and improving access to basic services

c) Internal implementation of infrastructure projects using internal plants

d) Continuing to review and improving financial systems and procedures.

e) Address issues emanating from the Auditor-General’s report for 2015/16 financial year.

f) Improving reporting, monitoring and evaluation

g) Capacitation of councillors and municipal employees

As I present the annual report for the 2016/17 financial year, I confirm that the report is a true reflection of what

happened at Amahlathi during the year under review.

___________________________ ACTING MUNICIPAL MANAGER N.E MBENDE


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C: EXECUTIVE SUMMARY

1.1 Municipal Manager’s overview

Amahlathi Local Municipality is situated in the Northern part of the Amathole District Municipality and it is

4266.21km2 in extent, the municipality’s jurisdiction comprises of Stutterheim, Cathcart, Keiskammahoek and

Kei Road. Strategically placed both Stutterheim and Cathcart are located along the N6 road with access to the

rail and road network. Keiskammahoek is the agricultural hubs with a majority of the population active within the

agricultural sector. The main municipal offices are situated in Stutterheim, there are satellite offices in Cathcart,

Kei road and Keiskammahoek.

The Amahlathi Local Municipal area is comprised of 15 Wards and is characterised by a range of settlement

patterns and associated land uses, including formal urban areas, formal and informal rural settlement areas and

extensive, privately owned farmland. The Intsika Yethu Municipality lies to the north-west, the Lukhanji

Municipality lies to the north, the Mnquma and Great Kei Municipalities lie to the east, the Buffalo City Municipality

lies to the south, and the Nkonkobe Municipality lies to the west.

Amahlathi Local Municipality- Draft Unaudited Annual Report 2016/17

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1.2 Population & Household dynamics

The population of Amahlathi has decreased from 122 778 to 101 826 based on the new boundaries as per the

2016 Community survey done by Statistics SA, this came as a result of the number of wards that have been

reduced from 20 to 15 by the Demarcation board. About 13 villages have been moved to Buffalo City Metro

Municipality and 10 villages to Intsika Yethu Municipality. The 2016 Community Survey also shows a decrease

in the households from 34 159 to 29 994 households. The population is unevenly distributed among the 15

wards.

Age and Gender Distribution

i. The gender distribution analysis of Amahlathi population reflects a similar pattern to that of the country with

females accounting for 51.75% and males only 48.25%. Since females form the greater portion of the

economically active population age groups 15 to 64 years, it will be strategic for the municipality to increase

their participation in local governance issues.

ii. The population pyramids below provide a breakdown of the population estimates in the municipality by age,

group and gender for 2011 and makes a comparison with 2016 population estimates. The population of the

municipality shows a typical age structure of a very young population distribution. The economically active

population (15-64) who are willing and able to work account for 60%. Those in the age group 15-34 account

31% however by 2016, the structure changed and the population in those age cohorts grew to 60.6% and

those in the 15-34 age cohort declined to 29.1%. The decline in the youth category could indicate the out-

migration impact where the youth would typically seek better working and living conditions elsewhere in the

region.


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Population pyramid 2011 Population pyramid 2016

1.3 Household Income distribution

The ability to meet basic needs, such as for adequate food, clothing, shelter and basic amenities, is largely

determined by the level of income earned by the households.

61.4% of households in Amahlathi earn between R30,000 to R72,000 per annum. The households with the highest

income brackets falls between R30,000 – R42,000 and R18,000 – R30,000 accounting for about 18.9% and 17.0%

of households respectively. In 2016, there was a significant shift in the income breakdown where certain income

brackets grew while others declined. Households in the income categories of R0 to R4,200 experienced a

cumulative decline of about 18% while significant increases in the categories of R42,000 upwards were

experienced with those between R72,000 to R132,000.

1.4 Access to basic services

According to data below as presented by Statistics South Africa in their 2016 Community Survey, over 80% of

households in the past 15 years have access to water and electricity. However during the two periods, access to

water declined slightly although at high levels while significant increase in the provision of electricity was observed

as more than 90% of households in the municipality. Access to electricity is reliant on infrastructure above ground

with cables that are able to cover significant land area compared to services that are provided by infrastructure

underground.

Toilet facilities remain at low levels. Challenges in providing sanitation services in most municipalities include in-

ground factors and the soil type. The service is influenced also by the type of infrastructure the municipality should

provide taking into consideration the topography of the municipality in terms of identifying of landmark features and

vegetative land cover.

With regards to access to refuse removal much focus is required as levels are low and declining which is indication

of high backlog levels. This could likely be a result of the sparsely distributed households including the access to


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the various wards in the municipality for the collection of the refuse. The high levels of refuse removal to a

communal service indicates refuse being disposed in a central place by households as opposed to removal by the

municipality or a service provider.

Table: Access to service delivery

Source: Stats SA Community Survey 2016, own calculations

According to Community Survey 2016 about 89.7% of the households in Amahlathi area access water from

regional/ local water scheme operated by the municipality or other water service provider and only 10.3% that does

not have access to piped water.

Electricity – 2016 Community Survey as per the table above indicates that 92.7% of households at Amahlathi

uses electricity for lighting compared to 87.4% calculated in the Census 2011 meaning there is a great improvement

of about 5.3%.

Access to Basic Infrastructure

2011 2016

Households % of households with access

Households % of households with access

Main source of drinking water

Access to piped water 26 269 92.0% 22 041 89.7%

No access to piped water

2 278 8% 2 535 10.3%

Access to Sanitation

Flush toilets 7 640 27.5% 6 040 24.6%

Chemicals 415 1.5% 1512 6.2%

Pit Toilets 18 263 65.7% 15 235 62.0%

Buckets 67 0.2% 48 0.2%

None 1403 5.0% 1 460 5.9%

Energy for lightning

Electricity 24 919 87.4% 22 610 92.7%

Other 3 590 12.6% 1 781 7.3%

Energy for Cooking

Electricity 20 577 72.3% 20 840 85.9%

Other 7 880 27.7% 3 429 14.1%

Access to refuse removal

Removed by local authority at least once a week

7 113 24.9% 3 438 14.0%

Removed by local authority less often

96 0.3% 256 1.0%

Communal refuse dump 316 1.1% 2 637 10.7%

Own refuse damp 19 789 69.3% 17 323 70.5%

No rubbish disposal 1 150 4.0% 231 0.9%


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Refuse removal - The statistics above indicate that about 70.5% of Amahlathi households uses their own refuse

dump as compared to 69.32% in 2011 and only 14.0% that have access to refuse removal at least weekly. This

shows that there is still huge backlog on refuse removal.


Source: Community Survey 2016

Sanitation - Community Survey 2016 indicates that 62 % of Amahlathi households still use pit toilets ventilation,

24.6 % use flush toilets with sewerage system, 5.9 % do not have any toilets, 6.2% uses chemical toilets and only

0.2% uses bucket system. The statistics merely indicates there’s a great need for flush toilets with sewerage

system in Amahlathi.

24.60%

6.20%

62%

0.20%5.90%


Flush Toilets Chemicals Pit Toilets Buckets None


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1.5 Financial Overview

Financial Overview: Year 2016/17

R' 000

Details Original budget Adjustment Budget Actual

Income:

Grants (excluding MIG) 125 374 126 362 123 692

Taxes, Levies and tariffs 62 008 64 937 56 005

Other 57 272 59 892 56 690

Sub Total 244 654 251 191 236 386

Less: Expenditure 232 164 235 037 251 636

Net Total* 12 490 16 154 (15 249)

* Note: surplus/(deficit) T 1.4.2

1.6 AUDITOR GENERAL REPORT 2015/16 FINANCIAL YEAR

The municipality has received an unqualified audit opinion in 2015/16 financial year. The matters of emphasis was

that the municipality had an irregular expenditure of R36.5m, Unauthorised expenditure of R23.5m due to flouting

of SCM processes and regulations, material losses on distribution of electricity amounting R2,8 m and restatement

of corresponding figures.

An audit action plan was developed as a measure to monitor and address the findings raised by AG, there was a

regular monitoring of this plan by the Management, Executive Committee, Internal Audit and the Audit committee.

Operating Ratios

Detail %

Employee Cost 44%

Repairs & Maintenance 3%

Finance Charges & Impairment 2%

T 1.4.3

Total Capital Expenditure: Year -2014/15 to Year 2016/17 R'000

Detail Year 2014/15 Year 2015/16 Year 2016/17

Original Budget 43 995 264.00 60 221 664.00 41 129 650.00

Adjustment Budget 65 717 902.00 60 686 595.00 37 794 019.00

Actual 35 594 133.00 53 818 986.06 35 515 519.39

T 1.4.4


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1.7 Statutory Annual Report Process

Comment on The Annual Report Process:

Amahlathi followed the new format as prescribed in the MFMA Circular No.63 published in September 2012 in developing its 2016/17 Annual report .

By nature, Annual Reports are aligned with the planning documents and municipal budget for the year reported on. This means that the IDP, budget ,SDBIP, In year reports, annual performance report and Annual Report should have a similar and consistent information to facilitate understanding and to enable the linkage between plans and actual performance.

No. Activity Timeframe

1 Consideration of next financial year’s Budget and IDP process plan. Except for the

legislative content, the process plan should confirm in-year reporting formats to ensure

that reporting and monitoring feeds seamlessly into the Annual Report process at the end

of the Budget/IDP implementation period

July

2 Implementation and monitoring of approved Budget and IDP commences (In-year financial

reporting).

3 Finalise the 4th quarter Report for previous financial year

4 Submit draft year Annual Report to Internal Audit and Auditor-General

5 Municipal entities submit draft annual reports to MM

6 Audit/Performance committee considers draft Annual Report of municipality and entities

(where relevant)

August

8 Mayor tables the unaudited Annual Report

9 Municipality submits draft Annual Report including consolidated annual financial

statements and performance report to Auditor General

10 Annual Performance Report as submitted to Auditor General to be provided as input to

the IDP Analysis Phase

11 Auditor General audits Annual Report including consolidated Annual Financial Statements

and Performance data

September

October

-

12 Municipalities receive and start to address the Auditor General’s comments November

13 Mayor tables Annual Report and audited Financial Statements to Council complete with

the Auditor- General’s Report

14 Audited Annual Report is made public and representation is invited

15 Oversight Committee assesses Annual Report

16 Council adopts Oversight report December

17 Oversight report is made public

18 Oversight report is submitted to relevant provincial councils

19 Commencement of draft Budget/ IDP finalization for next financial year. Annual Report

and Oversight Reports to be used as input

January


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CHAPTER 2: GOVERNANCE

Introduction

One of the key principles of good governance is the establishment of ethical leadership within the institution.

In a municipal sphere this translate into:

The need to clearly define the roles and responsibilities of the leadership and individual leaders in a

municipality;

The entrenchment of the principle of holding leaders accountable for their actions.

COMPONENT A. POLITICAL AND ADMINISTRATIVE GOVERNANCE

Institutional Structure of Amahlathi Local Municipality

The institutional Structure of Amahlathi Local Municipality is divided into two levels, the Political and Administrative

Structures. The Administrative Structure is accountable to the Political Structure.

2.1. Political Structure of Amahlathi Local Municipality

The Principalship of Amahlathi Local Municipality lies with the Council under the chairperson of The Speaker and

it operates a number of controls that assist in the realisation of the council’s mandates.

Honourable Mayor Cllr P Qaba

Cllr N Mlahleki (Madam Speaker) Cllr X Mngxaso (Chief Whip)


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MAYORAL EXECUTIVE COMMITTEE

Cllr N. Busika: Cllr T Balindlela

Portfolio Head Cooperate Services and Community Portfolio Head Community Services

Strategic Services

Cllr X Mngxaso Cllr N Monti

Portfolio Head Development and Planning Portfolio Head Engineering Services

Cllr N Nongqayi

Portfolio Head Finance


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LISTED BELOW ARE THE COMMITTEES THAT ASSIST COUNCIL IN CARRYING OUT ITS

RESPONSIBILITIES;-

i. Mayoral / Executive Committee

The Mayor of Amahlathi Local Municipality, Honourable Cllr. P. Qaba, assisted by the Executive Committee,

heads the executive arm of the Municipality. The Mayor is at the centre of the system of governance, since powers

are vested in her to manage the day-to-day affairs. This means that she has an overarching strategic and political

responsibility.

The executive committee consists of the Council members (chairperson of each standing committee) listed below

and the heads of departments. Meetings are convened monthly but special meetings are convened when the need

arises.

AFTER 2016 LOCAL GOVERNMENT ELECTIONS

1. Hon. Cllr P. Qaba the Mayor – Chairperson

2. Cllr N. Busika

3. Cllr X. Mngxaso

4. Cllr N. Monti

5. Cllr N.C. Nongqayi

6. Cllr T. Balindlela

ii. Standing Committees

The Council has established a Committee system in line with the provisions of Section 80 (1) of the Municipal

Structures Act 117 of 1998 as amended. There are various Standing Committees that have been established and

have been aligned to the functions of the departments that exist within the municipality.

The portfolio committee members together with their Chairpersons are listed below:

a. Infrastructure Service delivery Committee


1. Cllr N. Monti - Chairperson

2. Cllr S.G. Venkile

3. Cllr G.D. Mxosa

4. Cllr N. Pose

5. Cllr M. Ngcofe

6. Traditional Leader Mr. A. T Daka

b. Corporate Services Committee


1. Cllr N. Busika - Chairperson

2. Cllr X. Tokwe

3. Cllr X. Nqata

4. Cllr N. Mtati

5. Cllr T.C. Ngxingolo

6. Traditional Leader Ms. N. Sandile


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c. Community Services Committee


1. Cllr T. Balindlela - Chairperson

2. Cllr G.P. Noxeke

3. Cllr M. Mjikelo

4. Cllr V.W. Tshaka

5. Cllr A. Hobo

6. Traditional Leader Mr S.N. Mdledle

d. Planning and Development Committee


1. Cllr X. Mngxaso - Chairperson

2. Cllr M. Nqini

3. Cllr E.N. Brukwe

4. Cllr D. Mzili

5. Traditional Leader Mr z. Ngudle

e. Budget and Treasury Committee

f. Strategic Services Committee

These committees are constituted by the Portfolio Councillor who is full time and Part-time Councillors, chaired by the Portfolio Councillor and attended by the Heads of Departments. These committees have been given powers to consider and make recommendations to the Executive Committee on all issues falling within the ambit of their functional areas. Committees meet monthly in line with the Institutional calendar developed and adopted by the Council.


1. Cllr N.C. Nongqayi - Chairperson

2. Cllr R.T. Desi

3. Cllr N.A. Manyika

4. Cllr R. Pickering

5. Traditional Leader K Sandile


1. Cllr N. Busika - Chairperson

2. Cllr X. Tokwe

3. Cllr X. Nqata

4. Cllr N. Mtati

5. Cllr T.C. Ngxingolo

6. Traditional Leader Ms. N. Sandile


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iii. Section 79 Committees Section 79 (2) of the Municipal Structures Act of 1998 states that, the Municipal Council must determine the

functions of the Committees. During the year under review Amahlathi Council had the following Section 79

Committees.

a. The Municipal Public Accounts Committee (MPAC)

The Municipal Public Accounts Committee is established to assist Council to fulfil its mandate of overseeing the

Executive and the Administration. It is a multi-disciplinary Committee representative of all the parties in the Council.

The committee sits quarterly but special meetings are convened when the need arises. The main purpose of the

MPAC is to exercise oversight over the executive functionaries of council and to ensure good governance in the

municipality.

Below is the list of the members of the committee;


1. Cllr S. Malawu – Chairperson

2. Cllr D.S. Gxekwa

3. Cllr N. Jikazayo

4. Cllr P. Ntwanambi

5. Traditional Leader Mekuto

b. Audit and Performance Committee

The function of the Audit and Performance Committee (hereinafter referred to as the Committee) is primarily to

assist the Amahlathi Municipality (hereinafter referred to as the Council) in discharging its duties relating to the

safeguarding of assets, the operation of adequate systems, control processes and the preparation of financial

reports and statements. The Audit and Performance Committee had 3 members listed hereunder and should meet

4 times per annum as per its approved terms of reference.

The Audit Committee had the following meetings during the year:

NUMBER SURNAME AND INITIAL

1. T Mnqeta- Chairperson

2. T Maqwati

3. M. Deliwe

Ordinary Meetings Special Meetings

11 July 2016 25 August 2016

07 November 2016 28 August 2016


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c. Women Caucus The Council established the Women Caucus under Section 79 of the Municipal Structures Act as a mechanism to ensure that the Council is gender sensitive in its policy development and implementation. This committee is made up of all the Women Councilors in Council. iv. OTHER COMMITTEES

a. Local Labour Forum Committee

The Local Labour Forum is a consultative structure that only takes decision within its powers and functions. The

main collective agreement confer to the L.L.F powers and functions of negotiating and or consulting amongst

other things;

On matters of mutual concern pertaining to the employer which do not form the subject matter of

negotiations at the Council or Division

On such matters as may from time to time be referred to such forum by the Council or its division.

Concluding of minimum service level agreement

The Local Labour Forum is established with equal representation from trade unions and the employer with the

trade union’s representation divided in proportion to their respective membership in that individual local. In the

case of Amahlathi, we do have an established Local Labour Forum and it sits on bi monthly basis and when

there is a need. Four meetings were convened on a quarterly basis during the year under review. The committee

representatives are as follows;

01 March 2017 20th January 2017

01 June 2017


1. Cllr N. Busika

2. Cllr N Nongqayi

3. Cllr T. Desi

4. Cllr M. Mjikelo

5. Cllr G.D. Mxosa

6. Ms. N.E. Tom

7. Mr. V. Msindwana

8. Mr. T. Komna

9. Mr. Nkongo L – Samwu Rep

10. Mr R Mbi- SAMWU Rep

11. Ms T Magwangqana- SAMWU

12. Mr L. Mostert- Imatu Rep

13. Ms N. Damesi- SAMWU


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b. Training Committee

In terms of the regulations to the Skills Development Act, every organisation with more than 50 employees must

establish an institutional forum (Training Committee) for purposes of consultation with regards to skills

development. The Training Committee consists of the following people and it sits by monthly. Four meetings were

convened during the year under review.

• Skills Development Facilitator

• Municipal Manager

• Human Resources Manager

• Chief Financial Officer

• Chairperson Standing Committee- Corporate Services

• Chairperson Standing Committee – Finance

• Representatives of 2 Trade Unions represented in the Municipality

• Corporate Services Portfolio Councillor

• Occupational levels rep for – Professionally qualified (Officers)

• Skills Technical (Technicians)

• Semi Skilled (Clerks)

• Unskilled (General workers)

• Imatu Representative

• Samwu Representative

• Non Union member representative

14. Mr Dyosi- SAMWU

15. Ms A Matiwane- SAMWU

16. Mr. L. Bacu- SAMWU


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2.2 Administrative Structure of Amahlathi Municipality

The principalship of the Administrative structures lies with the Municipal Manager with a number of Departments

reporting directly to the Municipal Manager who is accountable to the Mayor. The Municipal Manager is charged

with specific responsibilities and is subject to the policy directions of the Municipal Council.

Chief Financial Officer left the Municipality in April 2017.

BALISA KING SOCIKWA MUNICIPAL MANAGER

NTABETHEMBA NOKWE TEMBELA BACELA SANDILE VARA ACTING CHIEF FINANCIAL OFFICER DIRECTOR STRATEGIC SERVICES DIRECTOR COMMUNITY SERVICES

BUNTU ONDALA MTHETHO QUMA

DIRECTOR DEVELOPMENT AND PLANNING SERVICES DIRECTOR CORPORATE SERVICES


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ROLES AND RESPONSIBILITIES OF DIRECTORATES

Role of the Chief Financial Officer:

• To continuously ensure an equitable, economical, transparent, fair and value – add supply chain

management system/function.

• To maintain an accurate and complete fixed asset register that is compliant with GRAP.

• To ensure spending of capital and operating budget by the end of the financial year.

• To ensure collection of all revenue due to the Municipality.

• To ensure unqualified audit opinion and credible financial reporting.

• To prepare a realistic budget in line with the objectives and strategies enshrined in the IDP based on

a three-year Medium Term Revenue and Expenditure Framework (MTREF).

• To ensure effective implementation of the Finance internship programme in line with government job

creation initiatives and career development.

• To continuously ensure accurate and complete recording and banking of cash received and

investments made.

• To ensure that Amahlathi Municipality has and maintains an adequate and effective process of risk

management.

Role of the Director Engineering Services

• We have a mechanical workshop in Stutterheim. All heavy duty road construction and maintenance

machinery fall under this Department. The goal of this unit is to see that Plant and Equipment are kept

in a good state of repair and responsible for the maintenance of all Municipal roads and storm water

with the limited funding and machinery that is available.

• This does not include roads that fall under the Department of Roads and Public Works and South

African National Road Agency Limited (SANRAL).

• The goal of the Building Control unit is to enable the Amahlathi Municipality to fulfil its role as a

controller of all Building activities & maintenance of all buildings, Engineering Planning aspects of

services provision of new settlement areas and ensure that municipal buildings are continuously and

adequately maintained.

• The goal of this unit is to see to the proper implementation and control of all projects in Amahlathi

Municipality funded by Municipal Infrastructure Grant. MIG programme is aimed at providing all South

Africans with at least a basic level of service.

• Electricity provided in Stutterheim, Cathcart & Amabele Station under Licenced NER/D/124EC Eskom

responsible to provides electricity supply and connections to villages not covered in terms of

NER/D/124EC terms and conditions.

• Reticulation & Distribution The goal is to maintain the systems in order to provide a safe, reliable and

efficient electricity supply.


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Role of the Director Development Planning

• Development of Local Economic Development

• Co-ordination of agricultural programmes

• Development of SMME’s and Co-operative’s

• Co-ordination of tourism within Amahlathi Local Municipality

• Promotion of Culture and Heritage within Amahlathi

• Promotion of Forestry sector within Amahlathi area

• Development of Local Economic Development Policies

• Promotion of businesses within service centres

• Co-ordination of Human Settlement programme within Amahlathi

• Implementation of town planning within Amahlathi Local Municipality

• Ensure effective use and management of Municipal land

• Promotion and maximise the use of Mlungisi Commercial Park

Role of the Director Corporate Services

• Plans, coordinates and manages activities of the Human Resources department to ensure the delivery

of HR services such as HR Planning, Personnel Provisioning, Administration of conditions of service,

Personnel utilisation, Industrial relations and skills development.

• To develop a departmental vision and strategy and ensure implementation to provide effective service

delivery.

• Manages performance of employees in the Department to ensure optimal work performance. Plans

and manages utilisation of resources in order to perform activities. Develops and monitor systems,

policies, procedures and processes to ensure correct working operations and practices.

• Manage the Human Resources department of the Amahlathi Council to ensure compliance with the

corporate services directorate strategic plan.

• Develop, Manage and administer the recruitment and selection policy to ensure compliance with

Recruitment and selection policy of the Municipality.

• Promote good and sound industrial relations environment to ensure labour stability in the municipality.

• Administer the implementation of the Employment Equity to ensure compliance with the Employment

Equity Plan.

• Manage the Training and Development Function to ensure effective training system in the

Municipality.

• Overall management of the Occupational Health and safety to ensure compliance with the OHS Act.

• Manage the use of Council resources to ensure economic, effective and efficient service delivery.

• Management of an administration system that is efficient and facilities decision making and service

delivery throughout the Amahlathi Municipality

• Manage the Municipality’s administration in accordance with the constitution, local government

municipal structures act and other applicable legislation.


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• The effective management of Human Resources in order to ensure that transaction and

implementation of skills development, employment equity, performance management and fleet

management.

Role of the Director Community Services

• To contribute towards a safe and secure environment

• To promote a clean and healthy environment

• To promote a culture of reading and learning

• To ensure that public amenities are improved and well managed

• To reduce number of road carnages on our Public Roads

• To increase Traffic visibility in our Municipal Roads

Role of the Director Strategic Services

To assist and co-ordinate the operations for the offices of the Speaker, Executive Mayor, the Chief Whip of

Council and the Chairperson of the Municipal Public Accounts Committee (MPAC) and coordinating the

programs, projects, activities and support for the following Units:

Planning and Public Participation.

• Monitoring and evaluation of municipal performance within Amahlathi Local Municipality.

• Information Communication Technology and support to the departments.

• Risk management as prescribed in the MFMA as a compliance issue.

• Communications.

• Special Programs (Youth, Women, Elderly, Children and the Disabled).

• To promote and implement the Integrated Development Planning with other spheres of Government

including intergovernmental Relations.

• To gather information and research on specific policies, strategies and programs relevant to Local

Government.

• To ensure explicit alignment between IDP and Budget during planning.

• To coordinate the implementation of the Performance Management System.

• To ensure public participation in decision making processes of the Municipality.

• Identify the Council’s Development priorities and Objectives and internal transformation needs


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B. INTERGOVERNMENTAL RELATIONS

2.3 INTERGOVERNMENTAL RELATIONS COMMITTEE

Chapter 3 of the Constitution Act 108 of 1996 provides for the principles that underlie the relations between the spheres

of government. IGR meetings will sit on a quarterly basis and are an information-sharing vehicle where government

departments and the municipality give light of their experiences and challenges with regards to service delivery. IGR

forum is regarded as a strategic planning body with emphasis and updates on current financial year programs and

projects. It therefore serves as a feeder to both the IDP & District Communicator's Forum (DCF).

Only heads of government departments sit on these meetings, failing which representatives sent by these heads, the

Municipal Manager, Strategic Planning Manager, ADM Communication/ Public Participation representative.

Amahlathi Local Municipality has developed and adopted an IGR Policy Framework in 2016/17.

C. PUBLIC ACCOUNTABILITY AND PARTICIPATION

2.4 PUBLIC ACCOUNTABILITY

The Municipality has developed a Public Participation Policy that was adopted by Council on 1 September 2015.

In accordance with Municipal systems Act 2000, the municipality should hold regular IDP/PMS/ Budget

Representative Forum meeting in drafting IDP and Budget. Forum meetings are convened 4 times per year or

quarterly in preparation of each phase. The following forms are used in calling the interested parties

Website to publish our notices

Community Radio Stations to reach those parts of our community that do not read newspaper

Daily Dispatch

Posters, pamphlets, ward councillors and announcements through community gatherings and community

based organizations.

Loud hailing

Other structures used to enhance public participation is through Ward Committee Meetings, LED Forums, SPU

Forums and a Communication strategy.

2.4.1 IDP/PMS & Budget Rep Forum

This forum is established in terms of Chapter of the Municipal Systems Act 32 of 2000 to participate in the matters

of the Municipality. The purposes of this structure is to ensure maximized participation of different interest groups

and sectors on IDP/PMS and Budget matters. The rationale behind the establishment of this committee is to

ensure that communication channels are kept smooth and efficiently. The meetings are convened quarterly and

this was done as per legislative requirements on all IDP/PMS and Budget phases. The ward committees and

stakeholders (interest group) in each ward are transported to attend the IDP/PMS and Budget Rep forum meetings

that are held at Stutterheim.


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2.4.2 Ward Committees

In line with Chapter 4 of the Municipal Structures Act 1998, the Amahlathi Local Municipality is committed to

enhance democratic, open, transparent and participatory system of local governance within its area of jurisdiction.

Amahlathi Local Municipality is bound by the Municipal Structures Act to elect Ward Committees within 90 days

after the local government elections.

The dates of the establishment of ward committees was advertised at a local community radio station the Forte

FM. On 30 September 2016 the Speaker had an interview tabling the plan followed by daily notices on the station.

Ward Committee induction was held at Mlungisi Commercial Park on the 28 November 2016 and on the 22 March

2017. During the induction the following areas were dealt with, the municipality structure, legislative framework

conducted by COGTA as well as the definition of Public Participation, Ward Operational Plan, Back to Basic Pillars

and Operation Masiphathisane (War Rooms). The department of Corporate Governance and Traditional Affairs

(COGTA) supported the municipality by training the ward committees in roles and responsibility of ward

committees.

In terms of White Paper on Local Government 1998, ward committees should be given stipend and that has been

implemented since November 2011.

The functionality of ward committees is indicated on Appendix E of this report.

2.4.3 Annual Report Public Hearings

The roadshows/public hearings are conducted in line with the prescripts of Chapter 4 of the Municipal Systems

Act which encourages the municipality to account to the public on all matters relating to finances and service

delivery performance. Annual Report Public hearings provide an opportunity for communities to comment on the

service delivery performance of the municipality. The Public hearings are done in collaboration between the Office

of the Mayor Strategic Services Department and the MPAC Office.

2.4.4 Civic Education

The municipality has developed and implemented civic education program as a mechanism to capacitate

communities for effective participation in Municipal Planning. During the year under review Amahlathi has

conducted the program in Stutterheim and Cathcart cluster on the 28 November 2016, at Keiskammahoek on the

28 March 2017 and at King Kei on the 29 May 2017. Civic education sessions are designed to empower

communities to better understand how government works especially on the powers and functions of the different

spheres of government. Gaps and challenges in service delivery are identified and channelled to the relevant

departments.


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2.5 IDP PARTICIPATION AND ALIGNMENT

D. CORPORATE GOVERNANCE

The implementation of the principles of good governance as promoted in the third and fourth King Report on

Governance for South Africa, 2009, and enshrined in the Code of Governance Principles for South Africa

(hereinafter referred to collectively as “King III and IV") have been accepted as a crucial element towards the

success of Government, including local government in meeting the needs of the people of South Africa.

The first step to achieving ethical leadership is for the leadership within a municipality, whether office bearers,

managers, political committees or any other structure promoting leadership within the municipality, to clearly

understand their roles and responsibilities, including the separation of duties as provisioned in the legislation.

A clear understanding of such roles and responsibilities will then allow for an ethical culture and the principle

of accountability can take root within the municipality.

2.6 Risk Management

The council recognises the wide range of risks to which Amahlathi Local Municipality is exposed.

Amahlathi Local Municipality is committed to the effective management of risk in order to achieve our goals

and objectives, as well as converting risk into opportunities that create value for our stakeholders.

It is therefore a strategic objective to adopt a process of integrated risk management that will assist

Amahlathi Local Municipality in meeting its key goals.

To achieve this risk policy statement, an integrated risk management programme must be implemented

and is continuously reviewed in order to improve its adequacy and efficiency.

The Council and Municipal Manager, being responsible for the total process of risk management,

produces a formal risk exposure analysis on an annual basis. This process is co-ordinated through the

activities of the Risk Management Committee and Internal Audit Unit.

IDP Participation and Alignment Criteria* Yes/No

Does the municipality have impact, outcome, input, output indicators? Yes

Does the IDP have priorities, objectives, KPIs, development strategies? Yes

Does the IDP have multi-year targets? Yes

Are the above aligned and can they calculate into a score? Yes

Does the budget align directly to the KPIs in the strategic plan? Yes

Do the IDP KPIs align to the Section 57 Managers Yes

Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes

Do the IDP KPIs align with the provincial KPIs on the 12 Outcomes Yes

Were the indicators communicated to the public? Yes

Were the four quarter aligned reports submitted within stipulated time frames? Yes

* Section 26 Municipal Systems Act 2000 T 2.5.1


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The Risk Management Committee is responsible for the analysis of the exposures to ensure that risk

control and management efforts are not duplicated, risk identification “gaps” are avoided and that

interdependencies at risk are identified and managed in a timely manner.

Top risks to the municipality

The municipality identified 40 risks for 2016/2017 financial year and all risks were prioritized. Action

plans were developed for all the risks and the risk action plans were discussed in the Risk Committee

Meetings.

Existence of the committee and functionality.

The municipality does have a Risk Committee which consists of all the section 57 managers and departmental risk

champions. The risk committee meetings were held on the following dates and the chairperson of the Audit

Committee attends as per invitation.

1. 14 October 2016

2. 16 January 2016

3. 28 March 2017

4. 15 June 2017

2.7 ANTI- CORRUPTION AND FRAUD

The municipality have Fraud Prevention Plan and Anti-Corruption Policy in place that were adopted by Council in

May 2015.

Strategies in place for prevention i.e. campaigns etc.

The municipality had the following fraud awareness campaigns during the financial year under review:

1. 08 September 2016

2. 20 December 2016

3. 30 March 2017

4. 28 June 2017

2.8 SUPPLY CHAIN MANAGEMENT

Section 3(1) (b) and (c) of the SCM regulations states that the accounting officer of a municipality must at least

annually review the implementation of SCM policy and when necessary submit proposal for the amendments of

the policy to council. The SCM policy was initially developed in 2005 and implemented to give effect to the SCM

regulations and it was last reviewed in May 2017. Amahlathi has established an SCM unit which comprises of

four officials. The code of conduct, oath of secrecy and declaration forms are signed by all officials involved in

supply chain management. The SCM manager has reached prescribed levels as required by the Minimum

Competency Regulations Guidelines and the other three officials are still in process. In line with Municipal Finance


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Management Act (MFMA), the accounting officer has also established various bid committees that are consistent

with the SCM regulations and any applicable legislation for competitive bidding i.e.

• Bid Specification Committee

• Bid Evaluation Committee

• Bid Adjudication Committee

Range of procurement processes

2.9 WEBSITES

STRUCTURE OF APPROVAL

GOODS/SERVICE VALUE PROCUREMENT METHOD MINIMUM APPROVAL AUTHORITY

R0 – R2 000 Petty Cash Head of Department or Delegated Authority

R2 001 – R5 000 Three Quotes Head of Department or Delegated Authority

R5 001 – R30 000 Three Quotations Head of Department or Delegated Official

R30 001-R200 000.00 1 Week Bulletin Notice and Advertisement via

Website: Three Quotations

Chief Financial Officer

R200 001 – R2 Million Competitive Bidding Process Bid Adjudication Committee

R2 Million – R10 Million Competitive Bidding Process Bid Adjudication Committee

Above R10 Million Competitive Bidding Process Accounting Officer

Documents published on the Municipality's / Entity's Website Yes / No

Current annual and adjustments budgets and all budget-related documents Yes

All current budget-related policies Yes

The previous annual report (Year -2015/16) Yes

The annual report (Year 2017/16) published/to be published Yes

All current performance agreements required in terms of section 57(1)(b) of the

Municipal Systems Act (Year 2015/16) and resulting scorecards

Yes

All service delivery agreements (Year 2016/17) Yes

All long-term borrowing contracts (Year 2016/17) Not Applicable

All supply chain management contracts above a prescribed value (give value)

for Year 2016/17

Yes

An information statement containing a list of assets over a prescribed value that

have been disposed of in terms of section 14 (2) or (4) during Year 2016/17

No


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2.10 BYLAWS

The institution has 19 bylaws, 17 are promulgated and the two are still in the process of being promulgated.

2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES

Comments from the public are received through the use of Complaints book, and suggestion boxes

which are placed in the main building and all satellite offices. The municipality also procured Customer

Care system that is used to logged complaints relating to faulty meters, Unavailability and poor

conditions of installed highmast lights etc. The logged called are assigned and forwarded to the

relevant department and closed on the system when resolved. Reports are submitted on a quarterly

basis by user departments.

Contracts agreed in Year 2016/17 to which subsection (1) of section

33 apply, subject to subsection (3) of that section

No

Public-private partnership agreements referred to in section 120 made

in Year 2016/17

Not Applicable

All quarterly reports tabled in the council in terms of section 52 (d)

during Year 2016/17

No

Note: MFMA s75 sets out the information that a municipality must include in its website as detailed above.

Municipalities are, of course encouraged to use their websites more extensively than this to keep their community

and stakeholders abreast of service delivery arrangements and municipal developments.


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CHAPTER 3: SERVICE DELIVERY PERFORMANCE

3.1 INTRODUCTION In 2016/17 financial year the performance of Amahlathi Local Municipality reflects a performance rate of 80.46% which is 6.54% decrease when compared to 87% achieved in 2015/16. The municipality still needs to focus on timeous submission of quarterly reports and collation of portfolio of evidence as well as filling of critical senior managerial positions. The table below reflects the performance of the municipality based on Key Performance Areas that the institution is reporting on.

COMPARISONS OF PERFORMANCE OVER 5 FINANCIAL YEARS

Graphical Presentation

KEY PERFOMANCE AREA 2012/13 2013/14 2014/15 2015/16 2016/17

OVERALL PERFOMANCE 58% 59% 84% 87% 80.46%

GOOD GOVERNANCE AND

PUBLIC PARTICIPATION

66% 60% 68% 82% 89.47%

LOCAL ECONOMIC

DEVELOPMENT

86% 67% 100% 100% 100%

MUNICIPAL FINANCIAL

VIABILITY

76% 83% 100% 95% 85.71%

SERVICE DELIVERY AND

INSTITUTIONAL DEVELOPMENT

58% 38% 73% 83% 78.13%

MUNICIPAL

TRANSFORMATION AND

INSTITUTIONAL DEVELOPMENT

29% 65% 81% 81% 50%

0

20

40

60

80

100

120

OVERALLPERFORMANCE

GGP LED MFV SDI MTI

COMPARISON OF PERFORMANCE OVER 5 YEARS

2012/13 2013/14 2014/15 2015/16 2016/17


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DEPARTMENTAL PERFORMANCE

The percentages depicted on the table below are only calculated according to the targets met and does not quantify any

allocation of performance bonuses. The Core Competency Requirements (CCR’s) are not included as the municipality is

reflecting departmental performance based on service delivery only.

Graphical Presentation

3.2 INSTITUTIONAL PERFORMANCE MANAGEMENT PROCESS OVERVIEW

In the 2016/2017 financial year, attempts were made to ensure that the municipality complies with legislation concerning the development, operation and maintenance of a performance management system that is commensurate to the institutional service delivery objectives enshrined in the IDP. The municipality has continued to maintain the effective operation of the following mechanisms:

The 2012-2017 IDP included strategic objectives, strategies and key performance indicators (KPIs) as

required by the Municipal Systems Act, 32 of 2000;

DEPARTMENT TOTAL TARGETS

TARGETS MET NOT MET TARGETS %ANNUAL PERFORMANCE 2016/17

Strategic Management Services 22 22 0 100%

Corporate Services 13 3 10 23.08%

Budget and Treasury Office 14 14 0 100%

Development and Planning 9 8 1 88.89%

Engineering Services 16 12 4 87.5%

Community Services 21 15 6 71.43%

100

23.08

10088.89

87.571.43

0

20

40

60

80

100

120

STRATEGICMANAGEMENT

CORPORTESERVICES

BUDGET ANDTREASURY

DEVELOPMENTAND PLANNING

ENGINEERINGSERVICES

COMMUNITYSERVICES

2016/17 ANNUAL PERFORMANCE

ANNUAL PERFORMANCE


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The 2016/2017 budget for implementation of the IDP was approved within the prescribed timelines prescribed

in the Municipal Finance Management Act, 56 of 2003;

After approval of the budget, the SDBIP was developed to integrate the IDP and the budget and to ensure

effective implementation of the institutional strategies. The development of the SDBIP was informed by below

planning and reporting cycle in the quest to create a balance between integrated planning, reporting and

accountability.

Figure 2: Planning & Reporting Cycle

Adoption of the 2016/2017 Organisational Performance Management System and score card for monitoring

and review of performance;

Performance agreements with performance plans were developed, signed and approved by the Honorable

Mayor as required by the Municipal Performance Regulations, 2006;

Quarterly performance reports with supporting evidence were prepared by managers directly reporting to the

Municipal Manager (MM); and

Quarterly performance reports were objectively and independently audited by the Internal Audit unit to verify and to

confirm performance information as reflected in the reports.

5 years plans aligned to the MTEF Budget and Election Cycle

periods. Updated annually. Covers critical areas of corporate

support ,business operations and service delivery.

Detailed focus on first year of strategic

plan. Includes output and service

delivery information, capital investment

plans, budget information.

3 year forward estimates (MTEF Budget).

3 year capital investment plan.

Annual Procurement Plan (G & S Budget).

Individual performance agreements & personal

development plans.

Linked to programme key objectives and outputs.

Highlights programme performance (financial &

non-financial) against set targets:

- In-Year Monitoring Reports

- Infrastructure Performance Reports

- SCM Performance Reports

Environmental

changes.

Strategic direction

changes.

Reprioritisation of

MTEF Budget.

Performance against

budget and Annual

Performance Plan.

Published Report.

Planning and Reporting Cycle – Public Sector Departments

Integrated

Development

Plan

Service Delivery

Budget

Implementation

Plan

Individual

Performance

Plans

Operational

Plan

Monthly /

Quarterly

Reports

Annual

Reports

Annual

Review

MAY

JULY

JUNE

JANUARY

AUGUST


39 | P a g e

3.3 CHALLENGES FACED BY THE MUNICIPALITY

The following challenges were encountered in the period under review:

The departments are working in silos and monopolising their functions which result in middle management

not being clued up with the entire functions of the department and this pose a challenge when one is

appointed to act in senior positions as there is no synergy and proper coordination.

Departments that were headed by acting managers for more than 3months

Understanding Collation of evidence by departments;

Inconsistence in the format and content reports

Delays in submitting the reports and evidence files by departments

Lack of Human resources in the IDP/PMS unit

STRATEGY TO OVERCOME THE CHALLENGES AND AREAS OF UNDERPERFORMANCE

Quarterly meetings with the elected PMS champions to iron out issues relating to collation of evidence

To conduct workshop with departments in order to address gaps identified in the Portfolio of evidence files.

Continuous provision of reporting templates to all departments

Speed up the Appointment of HODs

To beef up the IDP and PMS unit.


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3.4 CHANGES TO PLANNED TARGETS

Section 72 (1)(a)(ii) of the MFMA states that an accounting officer of a municipality, must by 25 January of each year assess the municipality’s service delivery performance during the first half of the financial year, and the service delivery targets and performance indicators set in the SDBIP. In preparation for the mid-year review of performance, management prepared quarterly reports, measured and analysed performance of the first six months of 2016/17. During the review management reviewed performance for the first and second quarter and also anticipated the last six months of the 2016/17 financial year incognisance of the feasibility to implement certain programmes based on priority and budget availability. This process culminated to a mid-year performance report which highlighted achievements, non-achievements with reasons for non-achievement and corrective measures. The process also emerged with a number of KPIs that either needed to be removed or amended going into the last six months of the financial year, and these amendments were duly approved by all requisite authorities including council. The table below depicts the changes made during 2016/17 financial year as alluded above. REGISTER FOR KPIS REMOVED/AMENDED ON THE 2016/17 SCORECARD

KPI No Objective Strategy Indicator Proposed Change Justification Approved /Not Approved

Custodian

20

To continuously contribute towards job creation for the unemployed

Job creation

No. of jobs created through EPWP

250 jobs created to be changed to 120 jobs created. Q3 delivery target to be changed to 67 jobs created.

The funding is unable to reach this annual target due to the fact that the Council Policy states that EPWP workers must be employed for six months

Approved 28/02/2017

Director Community services

22 To continuously contribute towards job creation for the unemployed

Allocation of payments to historically disadvantaged individuals to the value of R12ml

No. of Reports indicating payments allocated to HDI's

Annual target be revised to “ 4 Quarterly reports indicating R8 m payments allocated to HDIs” Quarterly targets: Q3 & Q4 to be changed to R1m

Environmental changes affect the set target because the big portion of payments allocated to HDI was for a yellow plant that its payment has been stopped due to an ongoing investigation.

Approved 28/02/2017

Chief Financial Officer


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68

Provide access to Community Services and sporting facilities

Installation of High Mast Lights

8 High Mast Lights installed in clusters

No. of High Mast Lights installed in clusters

The target was written on the column of indicator hence request for removal

Approved 28/02/2017

Director Engineering Services

69 To ensure that municipal buildings are continuously and adequately maintained and kept in a usable condition

Respond to faults in municipal buildings.

% identified faults in Municipal buildings

Financial targets from Q1 to Q4 The working budget approved was R50 000. From Q1 delivery target is R0. Q2 to Q4 delivery target to be changed to R16 670.00 expenditure.

The budget reflecting on SDBIP was not approved

Approved

28/02/2017

Director

Engineering

Services

70

To ensure that municipal buildings are continuously and adequately maintained and kept in a usable condition


No. of Inspected buildings to be renovated

Budget and financial targets to be changed .Approved budget is R500 000.00, Therefore delivery targets for Q1 met.Q2 to Q4 delivery targets to be R166 670.00 per quarter on expenditure

Financial target stated on SDBIP not in line with the approved annual target

Approved

28/02/2017

Director

Engineering

Services

80 To ensure coordination of implementation, monitoring and evaluation of IDP by 2017

Coordinate development and alignment of IDP, SDBIP and budget integration

No. of Quarterly Individual Performance Assessment report

Q3= Q2 2015/16 Performance assessment report submitted to Council to be changed to Q2 2016/17. Q4= Q3 2015/16 Performance assessment report submitted to Council to be changed to Q3 2016/17

The financial year reflected is not the current year of reporting

Approved

28/02/2017

Director

Corporate

Services

90 To create a healthy working environment within the Amahlathi Council.

Implementation of Occupational Health and Safety Plan

20% reduction of occupational incidences recorded

% reduction of occupational incidences recorded

The target was written on the column of indicator hence request for removal

Approved

28/02/2017

Director

Corporate

Services


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3.5 PROGRESS REPORT AUDITOR GENERAL’S FINDINGS: PREDETERMINED

OBJECTIVES

Refer to attached AG Action Plan in Chapter 6

3.6 FINANCIAL PERFORMANCE INFORMATION - CAPITAL EXPENDITURE 2016/17

Vote number Description Budget YTD Movement %

010-102-4-01-0020 FURNITURE AND EQUIPMENT 42 432.00 42 431.42 100.00


010-104-4-01-3044 VEHICLES 868 024.00 868 023.15 100.00



025-106-4-01-3099 ELECTRICAL EQUIPMENT 100 000.00 93 123.00 93.12


025-114-4-01-0170 UPGRADE NETWORK & COMPUTERS 500 000.00 397 335.25 79.47


030-116-4-01-3040 FENCING MLUNGISI MALL 385 880.00 385 880.00 100.00

030-118-4-01-1019 FRESHWATER INTERNAL ROADS 2 000 000.00 2 000 000.00 100.00

030-118-4-01-1021 WHITE CITY INTERNAL ROADS 2 000 000.00 2 000 000.00 100.00

030-118-4-01-1024 MADUBULA INTERNAL ROADS 1 086 978.00 1 086 978.00 100.00

030-118-4-01-3018 HAWKER STALLS KKH & CATH 120 000.00 120 000.00 100.00

030-118-4-01-3025 CHRIS HANI INTERNAL ROADS 2 100 000.00 2 100 000.00 100.00

030-118-4-01-3036 AMAHLATHI HIGH MAST LIGHTS 250 000.00 250 000.00 100.00

030-118-4-01-3037 KKH PAVING 4 326 672.00 4 326 672.00 100.00

030-118-4-01-3042 LOWER KOLOGHA SURFACING 4 093 300.00 4 093 300.00 100.00

030-118-4-01-3046 JERSEYVALE INTERNAL ROADS 2 412 999.00 2 412 999.00 100.00

030-118-4-01-3047 KEISKAMMAHOEK FIRESTATION 497 646.00 497 646.00 100.00

030-118-4-01-3048 MLUNGISI SPORTSFIELD 152 055.00 152 055.00 100.00

030-118-4-01-3049 PHUMLANI INTERNAL ROADS 2 600 000.00 2 600 000.00 100.00

050-128-4-01-0075 TOOLS & EQUIPMENT 1 000.00 - -

050-130-4-01-0075 TOOLS & EQUIPMENT 1 000.00 - -

060-132-4-01-2505 COMPUTER SOFTWARE 183 852.00 17 478.95 9.51

080-136-4-01-0075 TOOLS & EQUIPMENT 5 000.00 4 557.89 91.16

101-138-4-01-0075 TOOLS & EQUIPMENT 1 000.00 - -

101-138-4-01-3041 LANDFILL COMPACTOR 5 244 000.00 4 600 000.00 87.72


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110-144-4-01-0125

VEHICLE POUND,WEIGHBRIDGE&PARKING METERS 1 731 488.00 1 376 346.09 79.49


130-148-4-01-0075 TOOLS & EQUIPMENT 150 000.00 45 006.02 30.00

130-148-4-01-0150 UPGARDE 11KV CABLE 5 000 000.00 4 692 911.23 93.86

130-148-4-01-2545 ELECTRICITY TRAILER 507 637.00 507 636.67 100.00

130-148-4-01-3043 NEW CONNECTIONS ELECTRICITY 1 350 000.00 52 501.06 3.89

140-150-4-01-0075 TOOLS & EQUIPMENT 1 000.00

306.66 30.67

37 794 023.00 34 807 031.83


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3.7 SERVICE PROVIDER PERFORMANCE

Project Managers were requested to rate the performance of the Service Providers appointed by Council on the various projects. Service Providers and Contractors are rated in terms of the following:

Below Standard - The Contractor/Service Provider did not meet the basic requirements as spelt out in the

tender or contract. This may result in the contract being cancelled and/or the retention fee being withheld from

the contractor. The Contractor may be asked to rectify the problem or the contract may be cancelled and

another Contractor/Service Provider may be appointed to complete the contract/ project.

Acceptable - The Contractor/Service Provider completed the project and met the basic requirements of the

tender/contract. The standard of work was good enough, passable or adequate in terms of the requirements

by the ALM.

Excellent - The Contractor/Service Provider completed the work above the standard required. The

requirements of the tender were achieved above the expectation of the municipality. There is a high quality of

work and outstanding results were achieved.

Below is the performance rating of the municipality’s service providers;

Amahlathi Local Municipality –Draft Unaudited Annual Report 2016/17

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PERFOMANCE OF SERVICE PROVIDERS FOR THE YEAR ENDING 30 JUNE 2017

BID NUMBER NAME OF SERVICE PROVIDER SERVICES RENDERED RATING

SCM/38/2015-16 Khuladuna Trading Supply and Delivery of Air Compresor Acceptable

SCM/04/2016-17 Enzokuhle Enterprise Provision for Landfillsite Rehabilitation Acceptable

SCM/03/2016-17 Lunika Consulting Review of 2015-16 Draft Annual Financial Statements, 2015/16 Draft Annual Perfomance Report and 2015/16 Annual Report Acceptable

SCM/55/2015-16 SMS ICT Choice Supply, Delivery and Installation of ICT Cabling Infrastructure Acceptable

SCM/58/2015-16 Masiyabu Trading & General Civils Supply and Delivery of 1 X 12m Secondhand steel container Acceptable

SCM/60/2015-16 Masiyabu Trading & General Civils Construction of Keiskammahoek Sidewalk Paving N/A

SCM/22/2015-16 Seventh Avenue Trading 612 cc Supply & Delivery of Trailer Mounted Hydraulic Access Platform Acceptable

SCM/14/2015-16 PricewaterhouseCoopers Preparation of Grap Compliant Annual Financial Statements for the 2015/2016 and 2016/2017 Financial Years Acceptable

SCM/02/2016-17 AVX Investment & Trading (Pty) Ltd Supply, Delivery and Fitment of Trailer Tyres Acceptable

SCM/54/2015-16 HTB Consulting Implemenataion of Perfomance management system Acceptable

SCM/05/2015-16 PK Containers and Projects Supply, Delivery and Installation of Palisade Fencing at Mlungisi Community Commercial Park Acceptable

SCM/48/2015-16 XL Aloe Travel Provision of Travel agency services for a period of 36 months Acceptable

SCM/13/2015-16 PricewaterhouseCoopers Preparation of Grap Compliant Asset Register for 2015/2016 and 2016/2017 Financial Years Acceptable

SCM/59/2015-16 Thandokazi Solutions Fencing of Mlungisi Community Hall Acceptable

SCM/21/2015-16 Enroute Traders Upgrading of Lower Kologha Road Surfacing Acceptable

SCM/61/2015-16 AVX Investment & Trading (Pty) Ltd Renovations to Keiskamahoek Hawker Stalls Acceptable

SCM/06/2016-17 Supply and Delivery of Protective Clothing and Safety boots Sithasethu Trading N/A

SCM/22/2015-16 Seventh Avenue Trading (Pty) Ltd Supply & Delivery of Trailer Mounted Hydraulic Access Platform Acceptable

SCM/03/2016-17 Lunika Consulting Review of 2015-16 Draft Annual Financial Statements, 2015/16 Draft Annual Perfomance Report and 2015/16 Annual Report Acceptable

SCM/02/2016-17 AVX Investments Supply, Delivery & Fitment of Trailer Tyres Acceptable

SCM/06/2016-17 Sithasethu Trading Supply and Delivery of Protective Clothing and Safety Boots Acceptable


46 | P a g e


SCM/17/2016-17 Regroup Electrical and Air-con Contractors Supply and Installation of New 3 Phase Electrical Equipment Acceptable

SCM/13/2016-17 Imivuyo Construction (Pty) Ltd Supply and Delivery of 250 Bags (25 Kg) of Yellow Maize seed Acceptable

SCM/48/2015-16 XL Aloe Travel Provision of Travelling agency Services for a Period of 36 Months Acceptable

SCM/08/2015-16 Mabija Building and Construction Construction of a Vehicle Pound Excellent

SCM/53/2015-16 Lateral Unison Insurance Brokers Provision of Short term Insurance Acceptable

SCM/17/2015-16 Bell Equipment Sales SA (Ltd) Supply and Delivery of a New Landfill Compactor Acceptable

SCM/49/2015-16 C-Track Mzansi Procurement of a Fleet Management System, Monitoring and Vehicle Recovery for a Period of 36 Months Acceptable

SCM/10/2016-17 SMS ICT Choice (Pty) Ltd Renewal of Cibecs Endpoint Data Protection Licenses Acceptable

SCM/16/2016-17 Southern Ambition 1547 Supply, Delivery & Fitment of Grader Tyres Acceptable

SCM/17/2016-17 Executive Insight Development of SPU Strategy Acceptable


SCM/08/2015-16 Mabhija Building and Construction Construction of a Vehicle Pound Acceptable

SCM/37/2016-17 HTB Consulting Facilitation of Municipal Strategic session Acceptable

SCM/53/2015-16 Lateral Unison Insurance Brokers Provision of Short term Insurance for a period of 36 Months Acceptable


SCM/16/2016-17 Southern Ambition 1547 Supply, Delivery & Fitment of Grader Tyres Below Standard

SCM/30/2015-16 SNR Electrical JV Turnkey Design, Supply and Erection of Highmast Lights Acceptable

SCM/10/2016-17 SMS ICT Choice Renewal of Cibecs Endpoint Data Protection Licenses Acceptable

SCM/05/2016-17 Sky High Consulting Engineers Provision of Proffessional services for Mlungisi Sportsfield Acceptable

SCM/21/2016-17 Telkom SA Ltd Provision of Cellphones, Tablets, Laptops & 3G Data Cards on a 24 Month Contract Acceptable

SCM/42/2016-17 Ayabona Construction & Projects Supply & Delivery of Stable Mix 60 Drums Acceptable

SCM/44/2016-17

South African Foundation for Empowerment Training & Innovation Training on Roads Works Construction for 5 Contractors Acceptable


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SCM/31/2016-17 Shido Logistix cc Manufacturing & Supply of Concrete Protection Slabs until 30 June 2017 Acceptable

SCM/32/2016-17 Fab Manufacturing Manufacturing & Supply of Concrete Fiber Reinforced Trench Cover Acceptable

SCM/27/2016-17 Tshani Consulting cc Provision of Town Planning Services Keiskammahoek Fire Station Acceptable

SCM/30/2016-17 SNR Electrical Turnkey Design, Supply and Erection of Highmast Lights Acceptable

SCM/23/2016-17 Alomna Construction and Plant Hire Provision of Machine Hire Services for a period of 12 Months Acceptable

SCM/23/2016-17 Trailways Transport Provision of Machine Hire Services for a period of 12 Months Acceptable

SCM/01/2016-17 Vodacom (Pty) Ltd Voice over Internet Protocol Telephone System for a period of 3 years Acceptable

SCM/28/2016-17 AGES Omega (Pty) Ltd Provision of Geotechnical Investigation for Keiskammahoek Firestation Acceptable

SCM/29/2016-17 MNT Geomatics Provision of Tachy Survey in Keiskammahoek Acceptable

SCM/33/2016-17 Uluto Active Blue Trading Enterprise Fencing of Cemetery in Cathcart Acceptable

SCM/31/2016-17 Shido Logistix cc Manufacturing & Supply of Concrete Protection Slabs until 30 June 2017 Acceptable

SCM/31/2016-17 Fab Manufacturing Manufacturing & Supply of Concrete Fiber Reinforced Trench Cover Acceptable

SCM/42/2016-17 Ayabona Construction & Projects Supply & Delivery of Stable Mix 60 Drums Excellent

SCM/44/2016-17 South African Foundation for Empowerment Training Innovation Training on Road works Construction for 5 contractors Acceptable

SCM/12/2016-17 T.H Paul Kruger Renovations to Strategic Offices Acceptable

SCM/43/2016-17 Ebusha General Trading (Pty) Ltd Supply and Delivery of Concrete Slabs Acceptable

SCM/20/2016-17 Uluto Active Blue Trading Enterprise Renovations to Isihoboti Community Hall Acceptable

SCM/40/2016-17 Thandokazi Solutions Supply and Delivery of Mechanical Wool Press Machines Acceptable

SCM/46/2016-17 Abangane Trading (Pty) Ltd Supply, Delivery & Installation of 2 X Hawker Stalls in Cathcart Acceptable


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3.8 ORGANISATIONAL PERFORMANCE FOR 2016/17 PRESENTED PER KEY PERFROMANCE AREA (KPA)

3.8.1 GOOD GOVERNANCE AND PUBLIC PARTICIPATION DETAILED PERFORMANCE

IDP Ref

Outcome 9: A Responsive

Strategic Objective

Strategy Key Performance Indicator

Annual Target 2016/17

Annual Actual 2015/16


Reason/Comment and Corrective Action

Custodian KPI NO

1,1 Output 5: Deepen democracy through a refined ward committee model.

To promote and improve internal and external communication and continuously ensure community participation in the Amahlathi Municipality’s programmes and activities by 2017

Review of the Communication Strategy

Reviewed Communication Action Plan submitted to Council for approval

Reviewed Communication Action Plan submitted to Council for approval

Target met. Reviewed Communication Action Plan submitted to Strategic Services Management Standing Committee 9 May 2016

Target Met Reviewed Communication Action Plan submitted to Council. Council Agenda attached Date: 30 March 2017

N/A Director; Strategic Management Services

1

1,2 Implementation of Public Participation and Petition Framework Policy

Review and implementation of Public Participation and Petition Framework Policy

No. of quarterly reports on status of Petition Management submitted to Council

4 Quarterly reports on status of petitions received and submitted to Council

Target not met. 4 Quarterly reports on status of petitions received are attached but the Petitions were not submitted to the Petitions Committee

Target Met All petitions received in all quarters were submitted to Council.


2


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IDP Ref


Strategic Objective






Custodian KPI NO

1,3 Turn-around-time to acknowledge Petitions received

2days Turn-around-time to acknowledge Petitions received

N/A Target Met Petitions are acknowledged with two working days from the day received

N/A 3

1,4 No. of awareness programmes conducted on Civic Education for local communities (clusters)

3 awareness programmes conducted on Civic Education for local communities (clusters)

Target met, 4 awareness programs conducted in local communities (clusters) on the 29/09/15, 23/11/15, 19/02/16

Target Met 3 awareness campaigns conducted as follows Mlungisi (MCCP)- 28 November 2016, Keiskammahoek- 28 March 2017 and Ndakana 29/05/2017


4

1,5 No. of public participation programmes conducted

6 public participation programmes conducted

Target not met. 3 programs implemented as per Public Participation and Petitions Framework Policy

Target Met 7 Public participation programmes conducted on the IDP roadshows in 4 clusters as 08/11/2016 09/11/2016 10/11/2016 11/11/2016, Civic education campaign at

N/A 5


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IDP Ref


Strategic Objective






Custodian KPI NO

Keiskammahoek. 28 March 2017, at Ndakana 29/05/2017 and IDP and Budget Roadshows conducted in all clusters from 13/04/2017-08/05/2017

1,6

No. of reports on functionality of Ward committees

4 reports on functionality of Ward committees

N/A Target Met 4 reports on functionality of ward committees received and Induction workshop was conducted on the 28th -11-2016 and 5th-12-2016

N/A 6

1,7 Output 6: Administrative and Financial Capacity

Ensure Integrated and Responsive ICT Function

Provide support to ALM Computer and System Users

Turn around time taken to acknowledge logged fault

2 hrs turn around time taken to acknowledge logged fault

Target met. An average of 20mins turnaround time taken to acknowledge faults logged by users by email

Target met Time taken to acknowledge logged faults is average of 30 minutes. Emails received

N/A 7


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IDP Ref


Strategic Objective






Custodian KPI NO

1,8 Turn around time taken to resolve logged fault

48hrs turn around time taken to resolve logged fault

N/A Target Met Average of 3H10 minutes is taken to resolve logged fault. Emails and logbook received

N/A 8

1,9 Provide on-going support to users on system related queries

% of resolved system related queries

90% of resolved system related queries

Target met. Four (4) quarterly reports indicating progress on queries raised resolved are prepared on monthly basis

Target met 100% system related queries resolved. Emails logging and response from users logged fault attached

N/A Chief Financial Officer

9

1,10 Implementation and monitoring of controls to ensure security of information and business continuity

Daily backups done on Venus and Pay day systems

Daily backups done on Venus and Pay day systems

Target met. . quarterly reports on backups performed and stored are prepared

Target Met 4 Quarterly reports indicating daily backups received.


10

1,11 To ensure continues collaboration and cooperation between The

Continuous collaboration between the municipality and other

No. of Amahlath IGR forum meetings conducted

4 Amahlathi & IGR forum meetings conducted

Target not met only 3 Amahlathi IDP rep & IGR forum meeting held , IGR –

Target met 4 IGR forum meetings conducted at Amahlathi on the


11


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IDP Ref


Strategic Objective






Custodian KPI NO

Municipality and other service delivery organs of state

service delivery organs of state to discuss planned and rendered service in Amahlathi through quarterly forums

18/11/15, 9/09/15 and 23/05/16 Rep Forum – 22/09/15, 29/03/16 and 24/11/15

following dates 20-09-2016 24 -11-2016 16-03-2017, 10-05-2017

1,12 To ensure that Amahlathi municipality has and maintains an adequate and effective processes of risk management and internal audit

Implementation of the risk action plans

No. of risk management report regarding implementation of the risk action plans submitted to the Risk Committee

4 quarterly risk management report regarding implementation of the risk action plans submitted to the Risk Committee

Target met. Quarterly reports on implementation of risk action plans are submitted

Target not met 3 quarterlyrisk management reports submitted to risk committee held on the following dates 14/10/2016, 16/01/2017 15/06/2016

The meeting was not convened due to unavailability of risk committee members that were committed on the proposed dates. The meeting was then held on the 14th of October 2016.

Director; Strategic Management Services

12


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IDP Ref


Strategic Objective






Custodian KPI NO

1,13 Development and implementation of the annual risk-based internal audit plan

% implementation of the 2016/2017 risk-based internal audit plan (all scheduled audits implemented)

100% implementation of the 2016/2017 risk-based internal audit plan (all scheduled audits implemented)

Target not met as only 78% implementation of internal audit assignments scheduled for this quarter has been achieved

Target met 100% of risk based internal audit plan implemented during the year. Internal Audit Plan with status and reports received.


13

1,14 Development and Implementation of Action Plan on AG findings

% implementation of 2015/16 AG Action Plan

80% implementation of 2015/16 AG Action Plan

Target met, an action plan together with the report reflecting 80.5% implementation of AG findings is submitted

Target not met 65% of AG Action Plan implemented. Report and action plan recieved

Director; Strategic Management Services

14

1,15 To ensure that Amahlathi municipality has and maintains an adequate and effective process of Fraud management and internal audit

Conducting Fraud awareness workshops for all the satellite offices and the main office.

No. of fraud awareness workshops conducted

4 fraud awareness workshops conducted

Target met. 4 Fraud Awareness Workshop conducted by 30 June 2016

Target Met 4 fraud awareness workshop conducted on the 08th September 2016, 20th December 2016, 30 March 2017, And 28/06/17 to Amahlathi offcials


15


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IDP Ref


Strategic Objective






Custodian KPI NO

1,16 To ensure mainstreaming of special programmed into Amahlathi Municipality programmes

Development, review and implementation of the Special Programs Unit Action Plan

No of special programs on designated groups conducted

9 special programs on designated groups conducted

Target met. There are 24 Programs as per the action plan to be implemented in 2015/16, all the programs were implemented, and the attendance registers together with reports signed by HOD are submitted

Target met 10 Special programs on designated groups conducted on the 1. 27-10-2016 (16 days of Activism) 2. 25-11-2016 (World Aids Day) 3. 11-11-2016 (Elderly Programme) 4. 22-11-2016 (Disabled Programme) 5. 20-10-2016 (Women Celebration 6. Children’s Health Awareness Programme held on the 30-03-2017 at Amatholaville Primary School. 7. 2017 Top 8 Rugby Union held at Keiskammahoek on the 26-02-2017. 8. Revival of Youth Council and


16


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IDP Ref


Strategic Objective






Custodian KPI NO

launch of youth month- Mlungisi- 09-06-2017 9. Football Top 8 event at Izidenge- 16-06-2017 10. Child Protection week Mlungisi Commercial Park- 30-05-2017

1,17 Provide legal support and ensure representation in all legal matters

Update compliance register

Updated Compliance register

Updated Compliance register

Target met. Development and Updating of Compliance register for 2015/16 financial year by 30 June 2016

Target met Updated compliance register received in all quarters


17


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IDP Ref


Strategic Objective






Custodian KPI NO

1,18 Provide sufficient secretariat service to all Council Structures

Implementation of the approved calendar of meetings for Council and Executive Committee for the year

No. of ordinary Council and Executive Committee meetings held

4 ordinary Council and 10 Executive Committee meetings held

Target met. 6 ordinary Council meetings held and 8 Executive Committee meetings are held

Target not met 11 Ordinary and special Council Meetings held on the following dates; 14/072016, 27/07/2016, 17/08/2016, 30/08/2016, 28/10/2016 08/12/2016. 25/01/2017, 28/02/2017, 19/04/2017, 31/05/2017, 29/06/2017 7 EXCO meetings were held on the following dates; 10/10/2016, 03/11/2016, 16/02/2017, 23/02/2017, 10/05/2017, 25/05/2017 29/06/2017

Some meetings could not sit because there was no quorum, however a workshop will be conducted on the importance of attending EXCO and Council meetings

Director: Corporate Services

18


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IDP Ref


Strategic Objective






Custodian KPI NO

1,19 Implementation of Council resolutions

50% of council resolutions implemented

50% implementable council resolutions implemented

Target not met, as there is no proof of implementation of the resolutions, submitted in the file is the copy of resolution only.

Target not met, 50% implemented in 2nd quarter, 13% in third quarter not enough information submitted on 4th quarter

Recommended that the secretary to remind the Manager so that Action Minutes are implemented accordingly


19


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3.8.2 LOCAL ECONOMIC DEVELOPMENT (LED)

IDP Ref


Strategic Objective






Custodian KPI NO

2,1 Output No 3: Implementation of Community Work Programmes

To continuously contribute towards job creation for the unemployed

Job creation No. of jobs created through EPWP

60(LED) jobs created 120 jobs (CS) 150 ES

Target met. 74 people recruited instead of 60 people.

Target met 506 jobs created in 2016/17 financial year. 92 (LED) 172 CS 242 (ES)

N/A Director; Development and Planning, Engineering Services and Community Services

20

2,2 No. of jobs created through other government initiatives

5 jobs created through other government initiatives

N/A Target met 42 Jobs were created through other government initiatives

N/A Director; Community Services

21

2,3 Allocation of payments to historically disadvantaged individuals to the value of R12ml

No. of Reports indicating payments allocated to HDI's

4 Quarterly reports indicating R 8m Payments allocated to HDI's

N/A Target met R27 820 133.80 payments allocated to HDIs. Reports attached.


22


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IDP Ref


Strategic Objective






Custodian KPI NO

2,4 To promote Tourism within Amahlathi municipal area in order to position the municipality as a tourist destination

Marketing of craft projects from Amahlathi in tourism annual events

No. of tourism events attended by Amahlathi Crafters

4 tourism events attended by Amahlathi Crafters

Target met, crafters supported during ADM tourism events during 3/07/15, 20/12/15,15-16/03/16 and 15/06/16 events

Target met 4 Events attended by Amahlathi crafters Grahamstown Arts festival from 30-11 July 2016, Craft Mania at Stutterheim on 01-04th Dec 2016, Heritage and tourism Indaba at Mpekweni 22-23rd February 2017,Craft development exhibition at Ngqushwa on the 15th June 2017. Signed Quarterly reports and pictures attached.

N/A Director; Development and Planning

23


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IDP Ref


Strategic Objective






Custodian KPI NO

2,5 Implementation of one craft mania project

No. of Craft mania Projects Implemented

1 Craft mania project implemented

Target met, 1 Craft mania project is implemented by the 27-29 November 2015

Target met Craft Mania held at Stutterheim on 01-04th Dec 2016. Report and pictures attached.


24

2,6 Preservation of culture/history and promotion of cultural diversity for nation building whilst uncovering hidden talents through crafts

Hosting of Heritage Festivals

No. of Heritage Festivals hosted

3 Heritage Festivals hosted

Target met, 6 Heritage Festivals hosted in King Kei, Cathcart, Heroes Day festivals hosted by 30 June 2016

Target Met 3 heritage festivals conducted 1. Heritage event Cathcart 30-09-2016, 2. Heroes day event Keiskammhaoek26-12-2016 and 3. Film makers event at Frankfort on the 14-06-2017. Signed Reports, attendance registers and pictures attached


25


61 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

2,7 To encourage farmers to produce and assist in massive food programme

Implementation of Massive food Agricultural Project in the Amahlathi area.

No. of farmers provided with maize seeds

200 farmers provided with maize seeds

Target met. 300 bags of maize seeds and herbicide distributed to emerging farmers by 30 June 2016.

Target met 204 farmers were provided with maize seeds. Register of beneficiaries attached


26

2,8 Capacitation of SMME's and Co-operatives for sustainable businesses

Training of Contractors (SMME's)

No. of contractors (SMME's) trained

Training of Contractors (SMME's)

Target met. 5 contractors trained on 15-18 February 2016

Target met Road Construction Training conducted for 5 contractors on the 17-05-2017 at Stutterheim, Engineering Department


27

2,9 Identifying and training of Co-operatives based on their commodities.

No. of cooperatives trained

Identifying and training of Co-operatives based on their commodities.

Target met. 10 cooperatives trained on 09-11 February 2016.

Target met

Training of 10 cooperatives in computer (Basic Introduction) on the 27-31 March 2017 at Stutterheim (MCCP)

Signed Report and Attendance


28


62 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

registers submitted.


63 | P a g e

3.8.3 MUNICIPAL FINANCE VIABILITY (MFV)

IDP Ref


Strategic Objective






Custodian KPI NO

3,1 Output 6: Administrative and Financial Capacity

To continuously ensure an equitable, economical, transparent, fair and value - add supply chain management system/function

Monitoring and reporting on the performance of service providers

No. of quarterly Service Provider performance reports submitted to the Mayor

"4 Quarterly Reports on Service Provider performance compiled and submitted to Mayor

Target met, 4 quarterly reports on Service Provider performance prepared and submitted to standing committee

Target met 4 Quarterly Service Provider performance reports attached submitted to Mayor Acknowledgement letter from the office of the Mayor


29

3,2 Compile Reports on SCM to ensure compliance with the SCM Regulations

No. of quarterly reports on (tenders awarded, deviations report, contract management report ) submitted to the Mayor

"4 Quarterly reports on (Tenders awarded Report ;

Target met. 4 SCM reports compiled and awarded to standing committee on 20 October 2015, 21 January, 20 April 2016

Target met 4 Quarterly reports attached and signed Proof of submission to Mayor dated attached.


30

3,3 To maintain an accurate and complete fixed asset register that is compliant with GRAP.

Maintain a fixed asset register that comply with GRAP

Updated asset register for the 2016/2017 financial year

Update asset register for the 2016/2017 financial year

Target met, a list of additions on assets procured is attached , and an asset register provided

Target met 4 Quarterly schedule indicating changes to the fixed asset register attached and signed


31


64 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

reflects all those assets

3,4 Ensure 80% expenditure of capital budget

Monitoring and reporting on the spending of the municipal capital budget by user departments including BTO

% expenditure of capital budget

80% expenditure of capital budget

Target met, Quarterly expenditure report indicating 80% spending on capital budget prepared

Target met 88.79% capital expenditure incurred by 30 June 2017. Expenditure reports attached

N/A Director: Engineering Services, Community Services

32

3,5 No. of Quarterly reports on capital expenditure

4 Quarterly reports on capital expenditure

Target met, Quarterly expenditure report indicating 80% spending on capital budget prepared

Target met 4 Quarterly reports on capital expenditure indicating 88.79% expenditure incurred by 30 June 2017


33

3,6 Ensure 70% collection of income due from consumer debtors by 2017

Collect 60% of billed income

% of billed income collected

60% of billed income collected

Target met, 65% of YTD income is billed and collected

Target met 74.88% billed income has been collected during 2016/17 financial year.


34


65 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

3,7 To ensure unqualified audit opinion and financial reporting

Compile in-year reports and submit to the standing committee

No. of Monthly Financial reports( Sec 71 reports) Sec 52 Reports Mid-Year Report compiled and submitted to Treasury by legislated dates

8 Monthly Financial reports( Sec 71 reports) 4 Sec 52 Reports submitted Mid-Year Report compiled and submitted to Treasury by the legislated dates

Target met, 3 Monthly Financial reports (Sec 71 reports) is submitted 1Sec 52 Report is submitted to Treasury

Target met 1st quarter 2 monthly section 71 submitted on the (20/08/2016, 12/09/2016) and section 52 12/10/2016, 2nd quarter 2 monthly reports (section 71) submitted on the (14/10/2016, 13/12/2016) and section 52 11/01/2017, 3rd quarter 2 Monthly (section 71) reports submitted on the 14th February and 13th March, Section 52 report on the 10th April 2017, 4th quarter 2 monthly (section 71) reports submitted on the 14 June17 12 May 17


35


66 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

(Section 71) and 14/07/2017 section 52 Reports and proof of submission to Treasury attached

3,8 Preparation and submission of credible and GRAP compliant annual financial statements

GRAP compliant annual financial statements prepared and submitted to the Auditor-General

GRAP compliant annual financial statements prepared and submitted to the Auditor-General

Target met, credible and GRAP compliant and/A/financial statements prepared and submitted to the Auditor-General on the 31st August 15

Target met GRAP compliant annual financial statements were submitted to AG on the 31st August 2016. Proof of submission attached


36

3,9 To prepare a realistic budget in line with the objectives and strategies enshrined in the IDP based

Coordinate and develop Amahlathi municipality's budget for the 2017/2018 financial year

2017/2018 budget prepared and submitted to council for approval

2017/2018 budget prepared and submitted to council for approval

Target met, council minutes dated 31/05/16, together with reflecting the 2016/17 budget are submitted

Target met Final 2017/18 budget Submitted to Council on the 31 May 2017, evidence attached.


37


67 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

3,10 on a three-year Medium-Term Revenue and Expenditure Framework (MTREF)

Review revenue related policies

No. of Reviewed policies (Tariff policy, Rates policy, Credit control policy, indigent policy, SCM, Budget Policy, Asset Management) policies submitted to council for approval

7 of Reviewed policies (Tariff policy, Rates policy, Credit control policy, indigent policy, SCM, Budget Policy, Asset Management) policies submitted to council for approval

Target met, minutes of the council meeting where the policy was submitted are submitted

Target met 14 Reviewed Policies (Tariff policy, Rates policy, Credit control policy, indigent policy, SCM, Budget Policy, Asset Management, Virement, System Administration, Petty Cash, Irregular Expenditure, Fruitless and Wasteful Expenditure, Customer Care and Cash Management and Investment Policy) submitted to council for approval On the 31 May 2017. Evidence attached


38


68 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

3,11 Ensure effective implementation of the Finance internship programme in line with government job creation initiatives and career development

Monitoring of the implementation of the Finance internship programme

No. of reports on the 2 year internship programme Prepared

4 Quarterly Reports on the 2 year Internship Programme Prepared

Target not met, the reports on the programme are submitted, but the reports were sent on the 19 July 2016 to the standing committee which is outside the period under review not by the 30 June 2016

Target met 4 Quarterly Reports on the 2 year Internship Programme attached.


39

3,12 Continuously ensure accurate and complete recording and banking of cash received and Investments made

Monitor compliance to receipting, recording and banking of cash procedures, and proper recording of investments

Preparing monthly Bank reconciliation, and monthly Investment register updated

1 Updated Annual Bank Reconciliation an Investment Register

Target met, 12 monthly bank reconciliations prepared Investment register is updated monthly

Target met 12 monthly bank reconciliations prepared Investment register is updated monthly


40

3,13 To Generate Revenue for the Municipality through Hiring of Municipal halls

Generate Revenue through Hiring of Municipal Halls

% income generated through Hiring of Municipal Halls submitted to standing committee

100% income generated through Hiring of Municipal Halls submitted to standing committee

Target met, Evidence has been submitted and the receipts submitted do reflect and also talks to the

Target not met Reports and receipts were only in 1st and 2nd and 4th quarter, not enough information

No variance report provided

Manager: Community Services

41


69 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

report granted on application forms. The submission to the standing committee was done on the following dates: 14/10/15;11/11/15;10/02/16;14/04/16

submitted in third quarter to prove 100% income generated

3,14 To Generate revenue for the Municipality through Law Enforcement service, learners, drivers, vehicle testing and MVR.

Generate Revenue through conducting Law Enforcement service, learners, drivers, vehicle testing

No of reports indicating revenue contributions through Law Enforcement service, learners, drivers, vehicle testing

4 Quarterly reports indicating revenue contributions through Law Enforcement service, learners, drivers, vehicle testing

Target met. 4 Quarterly reports indicating revenue contributions through Law Enforcement service, learners, drivers, vehicle testing by end June 2016

Target not met 3 quarterly reports and system printouts submitted in 1st,2nd and 3rd quarter. No information submitted on fourth quarter on revenue generation

There was a technical problem with TCS system which is a mechanism used to achieve goals. The problem has been sorted and there are no other anticipated problems


42


70 | P a g e

3.8.4 SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT (SDI)

IDP Ref


Strategic Objective






Custodian KPI NO

4,1 Output 2: Improving access to Basic Services

To have a Waste By-Law that meets our requirements and conforms to the NEMA: Waste Act 59 of 2008

Review and implement the Amahlathi Municipal Waste By-Law.

No of reports on by law enforcement

4 reports on by law enforcement

Target met. 4 reports are submitted and the content in the document has been corrected to talk to the work that have been done throughout the year

Target met 4 quarterly reports on waste bylaw enforcement attached

N/A Manager: Community Services

43

4,2 Ensure that Solid Waste is Managed in an integrated, environmentally friendly and sustainable Manner

Implementation of the Integrated Waste Management Plan

No. of households and businesses with basic waste collection

6534 Number of Households and businesses with basic waste collection

N/A Target not met an average of 6518 number of households and businesses collected throughout the year.

During the year the municipality received communication from owners who no longer occupy the land and that cause d a variance of 16 household that waste could not be collected.


44


71 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

4,3

Host awareness campaigns to ensure reduction of waste going to solid Waste Sites

No. of waste management awareness Campaigns conducted

4 waste management awareness Campaigns conducted

Target met. 4 Awareness Campaigns (Stutterheim, Cathcart, King Kei, Keiskammahoek) conducted by 30 June 2016. Recycling Campaigns (Stutterheim, Cathcart, King Kei, Keiskammahoek) conducted by 30 June 2016

Target met 8 awareness campaigns conducted in 1. Keiskammahoek 09/09/2016, 2. Mlungisi Primary school (19/10/2016), 3. Sikhulule primary school (28/10/2016), 4. Cenyu Primary school (04/11/2016), 5. Nomathemba Primary school (04/11/2016), 6. Kei road combined school 23/02/2017, 7. Daliwe primary school 16/03/2017 and 8. Sophumele H/P school 21/06/2017


45


72 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

4,4 To ensure effective, efficient and economical management of cemeteries

Implementation of Cemetry Management Plan

No. of cemeteries to be fenced

2 cemeteries fenced

Target met. The report stating the progress was submitted. The schedule of payment provided for two service providers is an evidence enough in saying that the project was executed in due time. Completion certificate for Uluto Active Blue Trading provided and dated 30/03/16

Target not met Only 1 cemetery fenced ad is in Cathcart, during the financial year

The second cemetery could not be fenced due to insufficient budget and it will be prioritized in 2017/18 financial year.


46

4,5 No. of cemeteries maintained

4 cemeteries maintained

Target met. 4 Quarterly reports on Cemetery Management submitted to the standing committee by 30 June 2016

Target met 13 cemeteries maintained (3 first quarter, 4 Second quarter 3 third and 3 fourth quarter.


47


73 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

Reports attached

4,6 Promote the Culture of Reading and effective use of Library Resources

Conduct Library Activities that promote the Culture of reading and effective use of Library Resources.

No. of library awareness campaigns conducted

4 library awareness campaigns conducted

Target met, 4 Library Activities conducted held on the 23/09/15, 19/11/15, 9/03/16 and on the 14/05/16

Target met 8 library awareness campaigns on the 1. 22/09/2016 Cathcart and 2. 16/11/2016 at Zidenge, 3. Library Orientation Stutterheim Correctional Services on the 07/03/2017, 4. Library for blinds outreach at Ethembeni 20/03/2017, 5. Career exhibition MCCP 16/03/2017, 6. library (book club establishment workshop conducted on


48


74 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

the 19/05/2017 Stutterheim, 7. Library orientation and book education 15/05/2017 8. Stutterheim library for St Thomas and 24/05/2017 Stutterheim library for Jack and Jill

4,7 To ensure that all existing Community Halls are maintained in all Wards

Facilitate the maintenance of community halls and submit upgrade needs to the relevant department.

No. of community halls maintained

4 community halls maintained

Target met. Four quarterly reports indicating the submission of upgrade and maintenance needs of all Community Halls submitted to standing committee 2016.

Target not met 3 community halls maintained in Mlungisi, Cathcart and Kei road

Request for hall mantainace was submitted late and could not be attended on the same year. Request to prioritized in 2017/18 financial year


49

4,8 To upgrade and maintain the existing sports

Facilitate the maintenance and repairs of sports and

No. of sport and recreational facilities maintened

4 sport and 1 recreational facilities maintened

Target met. Four quarterly reports on the Maintenance of

Target met Report indicating 5 sport filed in


50


75 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

and recreation facilities

recreation facilities.

Sports and Recreational facilities submitted to standing committee by 30 June 2016.

Kei road, boarder post, Nonkululeko, (Ndakana) Carthcart town and Stutterheim town in first quarter, Report indicating 5 sport field in ward 13 Newtown extension 4 ,ward 6 Amatolaville, and ward 8 Ndakana primary school, Newtown extension 4 and Cathcart town and 1 recreational facility in Cathcart maintained in second quarter,


76 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

4,9 Ensure effective Management of Commonage/Environmental Management Plan

Implementation of the Commonage/Environmental Management Plan

No. of Commonages mantained

3 Commonages mantained

Target met.4 Quarterly reports on commonage have been attached and submitted to the standing committee on the following dates:14/10/15;11/11/15;10/02/16;14/04/16;

Target met 7 commonages maintained (Mantainance of Rands timber commonage, Keiskammahoek, Cathcart commonage, and bird sanctuary camp in first quarter, mantainance of Afforestation camp, Kesikammahoek pound in second quarter and Fixing of fence in Cathcart (N6 boundries) durig third quarter)


51

4,10 Facilitate sustainable co-ordination of Community Safety Activities

Facilitate the implementation of the Amahlathi Community Safety Plan

No. of community safety awareness campaign

4 community safety awareness campaign (Stutterheim,

Target met. 4 meetings to held (Stutterheim, Cath cart, Keiskammahoek

Target met 13 awareness campaign conducted at 1.Ndumangeni


52


77 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

(Stutterheim, Cathcart,Keiskammahoek, King Kei)

Cathcart,Keiskammahoek, King Kei)

, King Kei) on the implementation of the Amahlathi Community Safety Plan by 30 June 2016.

(11/08/2016), 2. Isihoboti high school 11/08/2016, 3. Lower Mnyameni Community hall 14/09/2016, 4. Goshen Primary School 27/10/2016, 5.Sonwabile 02/11/2016, 6. Goshen Community hall 23/11/2016 7.Ndumangeni 29/11/2016, 8. Toise primary school, 24/03/2017, 9.Ndakana primary school 31/01/2017, 10. Daliwe primary school 17/02/2017, 11. Matthew


78 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

Goniwe H/P School ward 7 on the 04/05/2017. 12. Tshoxa community hall (ward1) 09/05/2017 and 13. DG Cossie SPS (ward 4) 10/05/2017. Report, registers attached

4,11 To continue protecting human life, property, land and assets from deleterious consequences of fire

Enhance Fire Safety Compliance by ensuring appropriate responses to fire outbreaks

No. of reports indicating responses to fire outbreaks submitted to the standing committee

4 quarterly reports indicating responses to fire outbreaks submitted to the standing committee

Target met. 4 quarterly reports indicating responses to fire outbreaks submitted to the standing committee by 30 June 2016

Target met reports indicating fire outbreaks submitted to standing committee


53

4,12 Create Awareness and Education in Fire Prevention

No. of Fire Awareness Campaigns conducted

4 Fire Awareness Campaigns conducted

Target met 4 fire awareness campaigns conducted (Stutterheim, Cathcart, Keiskammahoek

Target met 9 fire awareness campaign conducted 1. Mgwali 09/09/2017, 2. Goshen


54


79 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

, King Kei) by 30 June 20167

community hall 23/11/2016, 3.Ndumangeni Community hall 29/11/2016, 4. Goshen primary 27/10/2016, 5. Ngxamngxa primary school 28/03/2017, 6. Border post community hall 30/03/2017, 7. Mathew Goniwe HP school 4/05/2017, 8. Tshoxa community hall 09/05/2017, 9. DG Cossies SPS 10/05/2017 Attached registers and reports


80 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

4,13 To minimize the number of crime incidents (level of crime)

Conduct Community Safety Awareness Campaigns and capacity building initiatives for ward committees and ward Councillors

No. of Community Safety Awareness Campaigns and capacity buildings initiatives conducted

4 Community Safety Awareness Campaigns and capacity buildings initiatives conducted

N/A Target met 13 awareness campaign conducted at 1.Ndumangeni (11/08/2016), 2. Isihoboti high school 11/08/2016, 3.Lower Mnyameni Community hall 14/09/2016, 4. Goshen Primary School 27/10/2016, 5.Sonwabile 02/11/2016, 6.Goshen Community hall 23/11/2016 7.Ndumangeni 29/11/2016, 8. Toise primary school, 24/03/2017, 9.Ndakana primary school


55


81 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

31/01/2017, 10.Daliwe primary school 17/02/2017, 11. Matthew Goniwe H/P School ward 7 on the 04/05/2017. 12. Tshoxa community hall (ward1) 09/05/2017 and 13. DG Cossie SPS (ward 4) 10/05/2017. Report, registers attached

4,14 To promote road safety on public roads

Attend Road Safety Awareness Campaigns and capacity building initiatives

No. of Road blocks conducted

12 Road blocks conducted

Target met, Attended Road Safety Awareness Campaigns and capacity building initiatives conducted by 30 June 2016.

Target met 22 road blocks conducted in Amahlathi clusters 09/09/2016 Cathcart, 16/09/2016 Keiskammahoek, 23/09/2016 Kei road, 30/09/2016


56


82 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

Stutterheinm 02/12/2016 Cathcart, 09/12/2016 Keiskammahoek, 16/12/2016 Kei road, 23/12/2016 Stutterheim and 30/12/2016 Stutterheim 10/02/17Stutterheim 24/02/17 Stutterheim 25/02/17 Stutterheim 18/02/17Stutterheim 21/02/17 Stutterheim 17/02/17 Stutterheim 15/02/17 Keiskammahoek 15/02/17 Stutterheim 16/02/17 Keiskammahoek


83 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

16/02/17 Stutterheim 31/03/17 Kei Road 05/05/2017 Cathcart 07/04/2017, Stutterheim Report, pictures, law enforcement plan and occurrence book attached

4,15 Extension of law enforcement to include all clusters

Extend Law Enforcement Services to include all clusters.

No. of reports indicating that law enforcement is conducted in all clusters

Four quarterly reports indicating that law enforcement is conducted in all clusters

Target met. 4 quarterly reports/ schedules indicating that law enforcement is conducted iN/All clusters by 30 June 2016.

Target not met 3 quarterly reports on law enforcement provided in quarter 1, 2 and 3. Not enough evidence in quarter 4

Shortage of staff during fourth quarter, there number will be improved in 2017/18 to adequately attend the target.


57

4,16 To contribute towards the reduction of road carnages

Provision of proper road markings and signage's

% of damaged road signs mantained

75% of damaged road signs mantained

Target met. 4 Quarterly reports indicating inspections and work done to ensure proper road markings

Target met 89.46% of damaged road signs repaired. Reports submitted


58


84 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

and signage's submitted to the standing committee by 30 June 2016

4,17 Facilitate for the development of Human Settlement Projects within Amahlathi Local Municipality

Submission of reports received on emergency housing applications to the standing committee

No. of reports on progress of housing projects implemented

4 reports on progress of housing projects implemented

Target met Minutes of the standing committee meetings held on the 18/07/15, 13/11/15,10/03/16 and 10/06/16 are submitted with reports on the housing applications

Target met 4 quarterly reports on housing projects implemented attached


59

4,18 Ensure effective and efficient land administration within Amahlathi Municipality

Review and update of the municipal land register

No. of reports on the review and update of Municipal Land Register for 2016/17 when necessary

4 quarterly submissions of the reviewed and updated Municipal Land Register of 2015/16 submitted to the standing committee

Target not met only 3 reports were submitted to the standing committee on municipal land register of 2015/16

Target not met Land register was submitted to standing committee only in first and 4th quarter.

To ensure that any site that comes along must be registered and report submitted to standing committee

Director; Development and Planning

60

4,19 Provide continuous access road maintenance on municipal road

Implementation of the Roads Blading Plan as well as

No of Kilometres of gravel roads maintained (dry blading and wet blading

200 km gravel access and internal roads bladed ( 100

Target met. Evidence that proves the number of km’s claimed to be

Target met 491 km gravel access and internal roads bladed

N/A Manager: Engineering Department

61


85 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

(gravel and tarred)

maintenance of tarred roads

blading and 100 wet blading)

achieved by the department has been attached. Q1=154,63km Q2=133,08km Q3=124,96km Q4=129,94km Total=542,61km achieved for annual performance. The attached weekly reports for quarter 4 proves the 129, 94 km reported as the achievement.

Quarterly report attached and signed Expenditure reports on capital budget attached. Pictures attached

4,20 No. of KMs of municipal roads regravelled

4KMs of municipal roads regravelled

N/A Target met 41.85 km of municipal roads regravelled Signed progress report attached Pictures attached


62


86 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

Expenditure report attached.

4,21 % of Potholes repaired as per departmental inspections

80% Potholes repaired as per departmental inspections

Target met, inspection reports prepared by supervisors are submitted

Target met 89.25% inspected potholes repaired


63

4,22 No of km of Inspected storm water drains unblocked

1km of Inspected storm water drains unblocked

Target met, complaints books attached to prove that they have unblocked the drains that were reported

Target met 24930.8 m of inspected storm water drains unblocked. Quarterly reports and inspection reports attached


64

4,23 Provide access to roads and continuous road maintenance in Amahlati Local Municipality

Regravelling of existing roads

No. of km of roads graveled

16km of roads graveled

Target met, site progress reports signed by project manager and HOD are submitted reflecting 24km’s done for the year made of Madubela= 4.5 km, Freshwater =

Target Met 26.63km of municipal roads graveled (Freshwater, Madubela, White City, Phumlani, Jerseyville and Chris Hani internal roads)


65


87 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

4.5km, Isidenge = 8km and Kubusi = 7

Reports attached and completion certifcates

4,24 No. of M of roads surfaced

600m of roads surfaced

Target met, completion certificate dated 3019/05/16 for cenyu to kalimashe, progress report and minutes for the site meetings are submitted, as well as the completion certificate for Xhologha roads

Target met 1494m of roads surfaced at Xhologha.


66

4,25 Provide access to Community Services and sporting facilities

Construction of Pedestrian Walkways and Small Town's Beatification

No. of square meterage of pedestrian walkways constructed

700m² of pedestrian walkways constructed

N/A Target met 2400 square meters of pedestrian walkways constructed at Keiskammahoek.


67


88 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

4,26 Installation of High Mast Lights

No.of High Mast Lights installed in clusters

Quarterly progress report

Target met, completion of high mast lights at Ngcamngeni is submitted, as well as for KKH.

Target met Highmast lights installed at Masincedane, Ethembeni, Cathcart and Toise,


68

4,27 To ensure that municipal buildings are continuously and adequately maintained and kept in a usable condition


% identified faults in Municipal buildings

80% of Inspected minor faults repaired

Target met. 100% identified faults in municipal buildings repaired (minor repairs) per the activity register for Jan/Arya, February and March 2016.

Target met 100% inspected minor faults repaired


69

4,28 No. of Inspected buildings to be renovated

2 Inspected building renovated

N/A Target met 2 major inspected building repaired (Strategic Services/ Development and Planning Offices and Isihobothi Centre


70


89 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

Community Hall.) Quarterly report attached with pictures

4,29 To facilitate the connection of electricity to all households within the Amahlathi municipal area

Facilitate and monitor the electricity connections done by Eskom

Electrification in North East King extensions and Mgwali /Heckle to be done by 30 June 2016

Facilitate electrification of North East King and Mgwali/heckel area by 30 June 2016

Target met. Progress report from Eskom and minutes of the meetings held with Eskom reporting on the progress made.

Target not met 2 quarterly reports submitted on third and fourth quarter on electrification status

The municipality is going to develop Service Level Agreement with Eskom to enhance smooth operations with regards to report on electrification projects by Eskom.

Manager: Engineering Department

71

4,30 Ensure on-going functioning of street lights and mast lights in the Amahlathi municipality area

Repair and maintenance of street and high-mast lights

% of reported faulty street and highmast lights repaired

90% of reported faulty street and highmast lights repaired

Target met. 100% identified faults in municipal buildings repaired (minor repairs) by 30 June 2016.

Target met 100% of reported street and high mast lights from June to July 2017 repaired and a system printout submitted to

Delays due to old equipment, new equipment has been ordered also not closing off the resolved queries on the system


72


90 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

support the percentage

caused a challenge.

4,31 Ensure on-going functioning and accurate reading of electricity consumption in the Amahlathi municipal supply area

Optimal functioning of electric meters and accurate reading

% of reported faulty meters repaired

95% of reported faulty meters repaired

Target met All Faulty meters were repaired

Target met 100% of reported faulty meters from June 2016 to July 2017 repaired and a system printout submitted to support the percentage

Challenge of closing off the resolved queries on the system and it will be emphasized during 2017/18 financial to the system users.


73

4,32 To improve continuity of efficient electricity supply within Amahlathi municipal supply area in line with NERSA

Upgrading and installation of 11KV cable

No of M (KVA) installation

2 400M installation

Target not met, the upgrade has not been finalized still work in progress

Target met 2400m of 11kv cables installed


74


91 | P a g e

3.8.5 MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT (MTI)

IDP Ref


Strategic Objective






Custodian KPI NO

5,1 Output 1: Implement and differentiate approach to Municipal Finance, Planning and support

To ensure compliance with applicable legislation, regulations, policies and procedures on an on-going basis

Compliance with Recruitment Plan.

% of new posts filled as per the approved staff establishment

100% of new posts filled as per the approved staff establishment

Target met. 12 Workshopped Municipal Policies by 30 June 2016.

Target not met 86.67% of new posts filled as per approved staff establishment plan

Post was filled during the year as it was discovered that it was unfunded. To ensure all the posts on the recruitment plan are funded


75

5,2 Turnaround time taken to fill vacant position

4 months Turnaround time taken to fill vacant position

Target met. All vacant positions filled within 4 months after the post becomes vacant

Target not met None of the vacant positions that were filled within 4 months, they are between 5 to 6 months or more.

None of the vacant positions that were filled within 4 months, they are between 5 to 6 months or more. Variance report attached stating that the 2 senior positions that were supposed to be filled


76


92 | P a g e

IDP Ref


Strategic Objective






Custodian KPI NO

undergone all the necessary process but not yet filled. To prioritise the appointment of senior managers.

5,3 To ensure coordination of implementation, monitoring and evaluation of IDP by 2017

Coordinate development and alignment of IDP, SDBIP and budget integration Implement and monitor an effective PMS system across the institution

2017/18 IDP submitted to Council for approval approved by Council

2017/18 IDP submitted to Council for approval approved by Council

Target met. 2016/17 IDP submitted to Council for approval approved by Council by 31 May 2016

Target met Final IDP submitted to Council for approval on the 31 May 17. Council Resolution attached


77

5,4 Approved 2017/18 SDBIP and Signed Performance Agreements by section 56/57 Managers submitted to The Mayor

Approved 2017/18 SDBIP and Signed Performance Agreements by section 56/57 Managers submitted to The Mayor

Target met. Approved 2015/16 SDBIP and Signed Performance Agreements by section 56/57 Managers submitted to the Mayor for approval 24 June 2016

Target met Copy of Final 2017/18 SDBIP attached 2. Proof of Approval by Mayor on the 23 of June 2017 attached


78


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IDP Ref


Strategic Objective






Custodian KPI NO

5,5 No. of Quarterly Organisational Performance Assessment report

4 Quarterly Organisational Performance Assessment reports

Target met. 4 Organisational Performance Assessment reports prepared and submitted

Target met 4 quarterly organizational Performance assessment report attached and signed 2. Council Minutes attached Date: July 2016, 28th October 2016, 25 January, 31 May 2017


79

5,6 No. of Quarterly Individual Performance Assessment report

4 Quarterly individual Performance Assessment reports

Target not met, the reports are attached in the files but they have not been submitted to the standing committee

Target not met No individual performance reviews conducted by departments even though request was sent reminding them.

The department will continue coordinating the process of individual performance reviews with HODs


80


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IDP Ref


Strategic Objective






Custodian KPI NO

5,7 Annual Report submitted to Council

2015/16 Annual report submitted to Council

Target met. 2014/15 Annual report submitted to Council on 10 December 2015

Target met 2015/16 Annual Report was submitted to Council on the 08th of December 2016


81

5,8 Reviewed 2016/17 Performance Policy submitted to Council for Approval

Reviewed 2016/17 Performance Policy submitted to Council for approval

Target met. Final PMS policy submitted to Council on the 29 April 2016

Target met Final PMS policy submitted to Council on the 31st of May 2017 PMS Policy and Proof of submission to Council attached.


82

5,9 Established and maintained credible records management system for the municipality

Implementation and monitoring of Records Management Policy

No. of quarterly reports on the implementation and monitoring of Records Management Policy

4 quarterly reports on the implementation and monitoring of Records Management Policy

Target met. 4 quarterly reports attached stating the progress

Target met 4 quarterly report on the implementation and monitoring of records management policy attached

N/A Director: Corporate Services

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IDP Ref


Strategic Objective






Custodian KPI NO

5,10 To ensure a stable institutional environment

Implementation of WSP

No. of Quarterly reports on trainings in line with WSP indicating 100% budget spent

4 Quarterly reports on trainings in line with WSP indicating 100% budget spent

Target met, system printout reflecting that the budget has been fully utilized, attendance registers of trainings attended during the year are submitted

Target not met 79.58% expenditure of total budget in third quarter, no expenditure report submitted in fourth quarter

The institution should centralize all the budget meant for trainings to the HRD Section, so that all trainings could be conducted through HRD to avoid wasteful expenditure


84

5,11 Implementation of EEP

No. of reports on the implementation of Employment Equity Plan to be submitted to the standing committee

4 quarterly reports on the implementation of Employment Equity Plan to be submitted to the standing committee

Target met. 4 quarterly reports on the implementation of Employment Equity Plan prepared and submitted to the standing committee on the

Target not met 3 quarterly report on the implementation of EEP and standing committee minutes attached

The report was not submitted to Standing committee during the first quarter, the department will ensure reporting is done quarterly to standing committees


85


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IDP Ref


Strategic Objective






Custodian KPI NO

5,12 To ensure cost efficient use of Amahlathi Council Resources

Implementation of Telephone Management Policy

% Reduction in maintenance costs

20% Reduction in maintenance costs

Target met. The reports with supporting evidence has been attached

Target not met Reports indicating reduction by 10.13% compared to Q3 and increase of 15.77% to annual budget

Vodacom has been appointed to implement the new telephone system which will assist the institution to reduce the costs.


86

5,13 Monitoring the use of municipal vehicles (Fleet Management)

% Reduction on vehicle maintenance costs

20% Reduction on vehicle maintenance costs

Target met. Quarterly reports on the monitoring of municipal vehicles were submitted to the standing committee and the minutes attached .Dates are as follows: 19/08/15;21/07/15;16/09/15;14/10/15;11/11/15;20/01/16;10/02/16;09/03/16;14/04/16;12/05/16;15/06/16

Target not met Vehicle maintenance costs increased from R965 375.68 to R1 018 239.58 which is 5.47% (R52863.90) increase in fourth quarter.

To urgently auction all old municipal vehicles and be replaced by new ones. These vehicles are costing the municipality. Centralization of Fleet budget and additional staff will assist the unit


87


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IDP Ref


Strategic Objective






Custodian KPI NO

5,14 To provide efficient and effective customer service

Rollout of the Local Government Service Charter and Batho Pele Principles to all workplaces

No. of workshops conducted

4 workshops conducted

Target met. 4 workshops conducted by 30 June 2016

Target met 4 Workshops conducted on the 1. Cathcart 29- 09-2016 2. 08/12/2016 Keiskammahoek, Springbok hall, 3. Keiskammahoek 23/03/2017, 4. 19/06/2017 (MCCP). Agenda, Report, minutes and attendance registers attached.


88

5,15 To create a healthy working environment within the Amahlathi Council.

functionality of the EAP Unit

No. of EAP programs conducted

4 EAP programs conducted

Target met, reports on the activities performed by EAP unit however there is no proof of submission to the standing committee

Target met 13 EAP programs were conducted on the following dates; 1.18/08/2016 Kei road


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IDP Ref


Strategic Objective






Custodian KPI NO

.Dates are as follows: 19/08/15;21/07/15;16/09/15;14/10/15;11/11/15;20/01/16;10/02/16;09/03/16;14/04/16;12/05/16;15/06/16

HEPB vaccination, 2. 23/08/2016 Stutterheim Library Cancer awareness, 3. 04/10/2016 Engineering department Resubstance abuse problem report, 4. 01/12/2016 Lutheran Hall World Aids day Celebration 5. 21/02/2017 STI and TB awareness (Kei road, 6. 21/02/2017 STI and TB awareness (Cathcart), 7. 23/02/2017 (Stutterheim) and 8.24/02/2017 medical and surveillance


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IDP Ref


Strategic Objective






Custodian KPI NO

vaccination 9.23/03/2017 HR sharing session and sexual health awareness (Keiskammahoek, Flu vaccination Dates 10.20/04/2017 KKH 11. 12/04/2017 Main office 12. 19/04/2017 Cathcart 18/04/2017 Kei road and 13. 30/05/2017 Candle light awareness in Cathcart


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IDP Ref


Strategic Objective






Custodian KPI NO

5,16 Implementation of Occupational Health and Safety Plan

% reduction of occupational incidences recorded

20% reduction of occupational incidences recorded

Target met. 4 Quarterly reports on the implementation of the OHS Plan prepared and submitted to the standing committee

Target not met Submitted reports only reflected incidences occurred and did not indicate the incidences before as a result we were unable to see the reduction. There were no incidences reported in third and fourth quarter as per the reports submitted

Health education will be rendered to prevent unnecessary incidents as some of them are just mere negligence by employees.


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CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE

4.1 INTRODUCTION

2016/2017 has been a challenging year with regard to the working relations between the employer and employees.

Number of industrial actions occurred as a result ± 37 employees were suspended from the workplace. The

relations between the employer and employees became unsound, however there is an ongoing process which is

well planned to change attitudes, beliefs of employees and to create and enforce appropriate behaviours. The

fundamental objective is to enable the municipality to efficiently adapt to the fast changing internal and external

environment.

To achieve some the afore-stated objectives, a number of job descriptions have been subjected to job evaluation

and re-grading.

4.2. MUNICIPAL WORKFORCE & LEVELS OF REPORTING

There are 6 section 56 managers as per the approved Organisational Structure of the municipality, 5 managers

have been employed and 1 manager has not been appointed and the post has been vacant in the year under

review. The managers have signed performance agreements together with the acting manager which all have

been submitted to the Department of Local Government and Traditional Affairs within the required time frames.

One of the directors left the municipality during the year. The positions have been advertised to fill in the vacant

position through recruitment processes.

The 6 section 56 managers lead the following departments

Engineering Services

• Community Services

• Development and Planning

• Budget and Treasury Office

• Corporate Services

• Strategic Management Services


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4.1 Full time staff complement per functional area

Employees

Description

Year -1 Year 2015/16

Employees Approved Posts previous

year Total No

No. 2015/16 2016/17 Employees

Corporate Services 24 2 26

Development and Planning 20 2 7 29

Engineering Department 131 7 2 140

Community Services 82 5

11 98

Executive Services 8 – 4 12

Strategic Management Services 15 2 1 18

BTO

33

5 1 39

Totals 313 '23 ‘25 361

Headings follow the order of services as set out in chapter 3. Service totals should equate to those included in the Chapter 3

employee schedules. Employee and Approved Posts numbers are as at 30 June, as per the approved organogram.

Vacancy Rate: Year 2016/17

Designations

*Total

Approved

Posts

*Vacancies (Total time

that vacancies exist using

fulltime equivalents)

*Vacancies

(as a proportion of total posts

in each category)

No. No. %

Municipal Manager 1 0 100.00

CFO 1 1 0

Other S57 Managers (excluding

Finance Posts)

6 1

20.00

Senior Manager Levels 13-15 21 5 24.00

Highly skilled supervision levels 9-12 59 11 13.55

Total 88 32 18.52

Note: *For posts which are established and funded in the approved budget or adjustments budget (where changes in employee

provision have been made). Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends

and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior

management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days.


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4.3 MANAGING THE MUNICIPAL WORKFORCE

Turn-over Rate

Details

Total Appointments as of beginning of

Financial Year

Terminations during the

Financial Year

Turn-over Rate*

No. No.

Year (2016 / 2017) 24 Resignations - 6

Retirement - 4

Death – 1

Ill health - 1

Total 18 Promotions - 6

* Divide the number of employees who have left the organisation within a year, by total number of

employees who occupied posts at the beginning of the year T 4.1.3

HR Policies and Plans

Name of Policy Completed Reviewed Date adopted by

council or

comment on

failure to

% . adopt

1 Upper limits for councillors 100% 20-21 Sept 2016 31 May 2017

2 Code of conduct for councillors 100 20-21 Sept 2016 31 May 2017

3 Rules of order 100 20-21 Sept

2016 31 May 2017

4 Intergovernmental Policy

framework 100 20-21 Sept 2016 31 May 2017

5 Code of conduct for ward

committees 100 20-21 Sept 2016 31 May 2017

6 Career Management policy 100 23-24 May 2017 31 May 2017

7 Experiential training policy 100 23-24 May 2017 31 may 2017

8 Scarce Skills Policy 100 23-24 May 2017 31 may 2017

9 Employee study assistance policy 100 23-24 May 2017 31 may 2017

10 Training and development policy 100 23-24 May 2017 31 May 2017

11 Acting allowance policy 100 02-04 May-2017 31 May 2017

12 Bereavement Policy 100 02-04 May 2017 31 May 2017


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13 Civic Funeral 50 02-04 May 2017 31 May 2017

14 Leave Policy 100 02-04 May 2016 31 May 2017

15 Policy on policy development 100 02-04 May 2017 31 May 2017

16 Fleet management Policy 100 02-04 May 2017 31 May 2017

17 Subsistence and Travelling Policy 100 02-04 May 2017 31 may 2017

18 Official transport to attend

Funerals (Bereavement Policy) 100 02-04 May 2017 31 May 2017

19 Job Evaluation review policy 100 02-04 May 2017 31 May 2017

20 Occupational health and safety

policy 100 02-04 May 2017 31 may 2017

21 Overtime and shift allowance

policy 100 02-04 May 2017 31 May 2017

22 Performance Management and

Development 100 02-04 May 2017 31 May 2017

23 Recruitment, Selection policy 100 02-04 May 2017 31 May 2017

24 Code of conduct for staff members 100 02-04 May 2017 31 May 2017

25 Long Service Allowance Policy 100 02-04 May 2017 31 May 2017

26 Grievance procedure SALGBC

27 Skills Development policy 100 02-04 May 2017 31 May 2017

28 Staff retention policy 100 02-04 May 2017 31 May 2017

29 Telephone usage and cellular

allowance phone 100 02-04 May 2017 31 May 2017

30 Records Management Policy 100 02-04 May 2017 31 May 2017

31 Uniforms and Protective Clothing

(Health and Safety Policy) 100 02-04 May 2017 31 May 2017

32 Remuneration scales and

allowances 100 SALGBC 11-Dec-14

Use name of local policies if different from above and at any other HR policies not listed. T 4.2.1


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4.3.2 SICK LEAVE

Number and Cost of Injuries on Duty

Type of injury

Injury Leave Taken

Employees using injury leave Proportion employees

using sick leave Average Injury Leave per

employee

Total Estimated Cost

Days No. % Days R'000

Required basic medical attention only

57 1 2% 57 0

Temporary total disablement 0 0 0% 0

Permanent disablement 0 0 0% 0 0

Fatal 0 0 0% 0

Total 57 1 2% 57 0

T 4.3.1


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Number of days and Cost of Sick Leave (excluding injuries on duty)

Salary band

Total sick

leave

Proportion of sick leave

without

medical certification

Employees using sick

leave

Total employees in post* *Average sick leave

per

Employees

Estimated cost

Days % No. No. Days R' 000

Lower skilled (Levels 2-5) 486

5.55% 67 116 4.18

Skilled (Levels 6-11) 499 8.21% 79 115 4.33

Highly skilled production

(levels 12-17)

541

11.82% 68 84 6.44

Interns 6 83.33% 2 4 1.5

Other (task grade pending) 2

100% 1 4 0.5

MM and S57 24 16.66% 4 5 4.8

Total 1558 9.17% 221 328 4.75

* - Number of employees in post at the beginning of the year T 4.3.2


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Number and Period of Suspensions

Position Nature of Alleged Misconduct Date of

Suspension

Details of Disciplinary Action taken or Status of Case and

Reasons why not Finalised

Date Finalised

P.M.U Manager Gross Insubordination and Deliration of

Duties.

23/03/2017 Pending, the Disciplinary Hearing that as scheduled for the 14th of July was

postponed due to unforeseen circumstances.

Open

Unit Manager Gross Insubordination 06/04/2017 Pending, Disciplinary Hearing was scheduled for the 25th of July 2017. Open

General Worker Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was

postponed for the 27th of July 2017.

Open

Security Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Secretary to the

Municipal Manager

Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Supervisor Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

General Worker

Development and

Planning



Open

Receptionist Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Heavy Duty Operator Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open



Open


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General Worker: Refuse

Section



Open

T.C.S Operator Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open



Open

Superintendent Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Cleaner/ Messenger Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open



Open

Secretary to the Director

Community Services



Open



Open

General Worker: Refuse

Section



Open



Open



Open


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Open

Internal Audit Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Traffic Warden Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Expenditure Accountant Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Bank Recon. Officer Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Tourism Officer Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Creditors Clerk Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Payroll Officer Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Executive Administrator

Office of the Municipal

Manager



Open

Superintendent Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was


Open

Senior T.C.S Operator Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee

Representative to schedule a date for a Disciplinary Hearing.

Open


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Supervisor: Road

Maintenance

Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee


Open

Administrator:

Community Services

Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee


Open

General Worker Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee


Open



Open



Open



Open

General Worker Continuous Absenteeism 09/06/2017 Dismissed 27 June 2017

Director Community

Services Department

Corruption On Progress Open

Director Corporate

Services Department

Gross Negligence Pending, A disciplinary hearing that was scheduled for the 29th and 30th of March

2017 but was postponed till further notice

Open


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Disciplinary Action Taken on Cases of Financial Misconduct

Position Nature of Alleged Misconduct and Rand value of any loss to the

municipality

Disciplinary action taken Date Finalised

Cashier Gross Insubordination, Gross Dereliction of Duties, Theft Dismissed 03 May 2017

Cashier Gross Insubordination, Gross Dereliction of Duties, Theft Suspended Open, Pending the results

of the Disciplinary hearing.

T 4.3.6

4.4 CAPACITATING THE MUNIPAL WORKFORCE - SKILLS DEVELOPMENT AND TRAINING

SKILLS DEVELOPMENT MATRIX

Skills Matrix

Management

Level

Gender Employees in post

as

at 30 June

Year 2017

Number of Skilled employees required and actual as at 30 June Year 2017

Learnerships Skills programmes & other short

courses

Other forms of training Total

No. Actual: End

of Year 2016

Actual: End

of Year 2017

Year

2017

Target

Actual: End

of Year 2016

Actual: End

of Year 2017

Year: 2017

Target

Actual: End

Of Year 1

Actual: End

Of Year 0

Year 0

Target

Actual: End

Of Year -2016

Actual: End

of year 2017

Year : 2017

Target

MM and s57 Female 0 0 2 0 0 2 0 0 4

Male 0 0 1 0 0 2 0 0 3

Councillors,

senior

officials and

managers

Female 0 0 1 0 0 21 0 0 22

Male 0 0 0 0 0 25 0 0 25

Female 0 0 0 0 0 1 0 0 1


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Technicians and

associate

professionals*

Male 0 0 0 0 0 1 0 0 1

Professionals Female 0 0 3 0 0 10 0 0 13

Male 0 0 1 0 0 9 0 0 10

Semi-Skilled

and Unskilled

Female 0 0 0 0 0 23 0 0 23

Male 0 0 0 0 0 19 0 0 19

Sub total Female 0 0 6 0 0 57 0 0 63

Male 0 0 2 0 0 56 0 0 58

Total 0 0 0 8 0 0 113 0 0 121

*Registered with professional Associate Body e.g CA (SA) T 4.5.1


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Financial Competency Development: Progress Report*

Description

A.

Total number of

officials employed

by municipality

(Regulation 14(4)(a)

and (c))

B.

Total number of

officials employed

by municipal

entities (Regulation

14(4)(a) and (c)

Consolidated: Total

of A and B

Consolidated:

Competency

assessments

completed for A

and B (Regulation

14(4)(b) and (d))

Consolidated: Total

number of officials

whose performance

agreements comply

with Regulation 16

(Regulation 14(4)(f))

Consolidated: Total number of

officials that meet prescribed

competency levels (Regulation

14(4)(e))

Financial Officials

Accounting officer 1 0 1 0 1 0

Chief financial officer 1 0 1 1 1 1

Senior managers 3 0 3 0 0 0

Any other financial officials 30 0 30 0 0 0

Supply Chain

Management Officials

Heads of supply chain management

units

0 0 0 0 0 0

Supply chain management senior

managers

1 0 1 1 0 0

TOTAL 36 0 36 2 2 1

* This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007) T 4.5.2


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SKILLS DEVELOPMENT MATRIX

Skills Matrix

Management

Level

Gender Employees in post

as

at 30 June

Year 2017

Number of Skilled employees required and actual as at 30 June Year 2017

Learnerships Skills programmes & other short

courses

Other forms of training Total

No. Actual: End

of Year 2016

Actual: End

of Year 2017

Year

2017

Target

Actual: End

of Year 2016

Actual: End

of Year 2017

Year: 2017

Target

Actual: End

Of Year 1

Actual: End

Of Year 0

Year 0

Target

Actual: End

Of Year -2016

Actual: End

of year 2017

Year : 2017

Target

MM and s57 Female 0 0 2 0 0 2 0 0 4

Male 0 0 1 0 0 2 0 0 3

Councillors,

senior

officials and

managers

Female 0 0 1 0 0 21 0 0 22

Male 0 0 0 0 0 25 0 0 25

Technicians and

associate

professionals*

Female 0 0 0 0 0 1 0 0 1

Male 0 0 0 0 0 1 0 0 1

Professionals Female 0 0 3 0 0 10 0 0 13

Male 0 0 1 0 0 9 0 0 10

Semi-Skilled and

Unskilled

Female 0 0 0 0 0 23 0 0 23

Male 0 0 0 0 0 19 0 0 19

Sub total Female 0 0 6 0 0 57 0 0 63

Male 0 0 2 0 0 56 0 0 58

Total 0 0 0 8 0 0 113 0 0 121

*Registered with professional Associate Body e.g CA (SA) T 4.5.1


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4.5 MANAGING THE WORKFORCE EXPENDITURE

Designation Wages and benefits

2015/16

Wages and benefits 2016/17

Municipal Manager R 1 231 013 R 1 340 628

Corporate Services Manager R 1 084 174 R 1 178 730

Planning and Development Manager R 1 084 174 R 1 178 730

Engineering Services Manager R 801 927 R 0

Community Services Manager R 1 084 174 R 1 178 730

Finance Manager (CFO) R 1 084 174 R 1 045 376

Strategic Manager R 958 313 R 1 111 542

EMPLOYEE RELATED COSTS 2015/16 2016/17

Basic R 57 172 695 R 72 033 962

Bonus R 4 904 839 R 5 133 362

Medical aid contributions R 2 830 683 R 3 674 493

UIF R 487 156 R 569 543

Travel, motor car, accommodation, subsistence and other

allowances

R 1 151 600 R 1 676 340

Overtime payments R 1 801 323 R 2 865 096

Acting allowance R 272 875 R 389 568

Travel allowance R 3 283 364 R 5 012 161

Housing benefit and allowances R 3 198 850 R 3 248 782

Industrial Council Levy R 80 181 R 31 111

Pension fund contributions by Council 9 224 588 R 12 011 405


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REMUNERATION OF COUNCILLORS 2015/16 2016/17

Mayor 782 480 671 050

Speaker 630 878 563 320

Council Salaries 7 813 276 7 976 254

Contribution to medical aid, Pension funds and UIF 3 644 927 1 367 057

Councillor allowances 977 784 873 865


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CHAPTER 5: FINANCIAL PERFORMANCE

5.1 INTRODUCTION

This chapter contains information regarding financial performance and highlights specific accomplishments. The

chapter comprises of three components:

• Component A: Statement of Financial Performance

• Component B: Spending Against Capital Budget

• Component C: Other Financial Matters


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RECONCILIATION OF TABLE A1 BUDGET SUMARY- STATEMENT OF FINANCIAL PERFORMANCE

Description Year 2016/17 Year -2015/16

R thousands

Original Budget

Budget Adjustments (i.t.o. s28 and s31 of the MFMA)

Final adjustments budget

Shifting of funds (i.t.o. s31 of the MFMA)

Virement (i.t.o. Council approved policy)

Final Budget

Actual Outcome

Unauthorised expenditure

Variance Actual Outcome as % of Final Budget

Actual Outcome as % of Original Budget

Reported unauthorised expenditure

Expenditure authorised in terms of section 32 of MFMA

Balance to be recovered

Restated Audited Outcome

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Financial Performance

Property rates 17 600 (1 718) 15 882 15 882 14 013 0 88 80 15 841

Service charges 44 408 4 647 49 055 49 055 41 991 0 86 95 42 272

Investment revenue 8 000 300 8 300 8 300 7 294 0 88 91 9 422 Transfers

recognised - operational 125 374 988 126 362 126 362 123 692 0 98 99 131 522

Other own revenue 49 272 2 321 51 592 51 592 661 -77 1 1 7 851

Total Revenue (excluding capital transfers and contributions)

244 654 6 538 251 191 – –

251 191 187 652

206 907

Employee costs 95 316 8 436 103 752 103 752 113 675 0 110 119 – 75 493

Remuneration of councillors 13 605 (1 158) 12 447 12 447 11 563 0 93 85

– 13 849

Debt impairment 5 000 – 5 000 5 000 – #DIV/0! 0 0 –

–

Depreciation & asset impairment 30 000 – 30 000 30 000 26 306 0 88 88

– 32 720

Finance charges 15 000 (10 000) 5 000 5 000 1 774 -2 35 12 – 16 370

Materials and bulk purchases 25 000 3 000 28 000 28 000 26 165 0 93 105

– 24 313

Transfers and grants – – –

– – #DIV/0! #DIV/0! #DIV/0!

–

–


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Other expenditure 48 242 2 595 50 838 50 838 68 150 0 134 141 – 76 272

Total Expenditure 232 164 2 873 235 037 – – 235 037 247 631

– 239 017

Surplus/(Deficit) 12 490 3 664 16 154 16 154 (59 980) Transfers

recognised - capital 28 640 (7 000) 21 640 21 640 21 640 - 100

76 34 611

Contributions recognised - capital & contributed assets –

–

Surplus/(Deficit) after capital transfers & contributions

41 130 (3 336) 37 794 – –

37 794 (38 340) - - 100

76

–

– –

34 611

Share of surplus/ (deficit) of associate –

–

Surplus/(Deficit) for the year

Capital expenditure & funds sources

Capital expenditure Transfers

recognised - capital 28 640 (7 000) 21 640 21 640 21 640 0 100 76 34 611 Public contributions

& donations – – – – 0 0 0

Borrowing – – – – 0 0 0

Internally generated funds 12 490 3 664 16 154 16 154 13 303 0 82 107 19 208 Total sources of capital funds 41 130 (3 336) 37 794

– 37 794 34 942 – 0 182 182

– –

– 53 819

Cash flows Net cash from

(used) operating 41 130 (3 451) 37 794 37 794

(2 866) 14 -8 -7

44 430

Net cash from (used) investing

(41 130) 3 336

(37 794)

(37 794)

(34 942) 0 92 85

(36 025)

Net cash from (used) financing – – –

– – #DIV/0! #DIV/0! #DIV/0!

(31 608)

Cash/cash equivalents at the year end 147 381 (115) 147 266

147 266

(37 809) 5 -26 -26

129 029

T 5.1.1


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Notes 3 = sum of colum 1 and 2 2 represents movements in original budget to get to final adjustmenst budget (including shifting of funds) Virements must offset each other so that virements in Total Expenditure equals zero 6 = sum of column 3, 4 and 5 8 does not necessarily equal the difference between 9 and 8 because overspending is not the only reason for unauthroised expenditure

9 = 7 - 6

10 = (7/6)*100

11 = (9/1)*100

14 = 13 - 12 15 in revenue equals Audited Outcome plus funds actually recovered 15 in expenditure equals Audited Outcome less funds actually recovered 15 in Cash Flow equals Audited Outcome plus funds recovered

This schedule must be part of the financial statements of the municipality (all other schedules, A2 - A7, should form part of the annexures to the financial statements. These schedules do not directly form part of the audit opinion)


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Financial Performance of Operational Services

R '000

Description

Year -2015/16 Year 2016/17 Year 2016/17Variance

Actual Original Budget Adjustments Budget Actual Original Budget Adjustments Budget

Operating Cost

Water – – – –

Waste Water (Sanitation) – – – –

Electricity 7 226 8 852 10 771 4 423 -100.15% -143.54%

Waste Management 475 1 503 1 944 (101) 1592.56% 2030.11%

Housing (2 638) (2 158) (2 502) (2 595) 16.86% 3.58%

Component A: sub-total 5 064 8 197 10 212 1 727

-374.77% -491.49%

Waste Water (Stormwater Drainage) – – – –

Roads (24 034) 8 695 10 450 (57) 15408.23% 18498.07%

Transport – – – –

Component B: sub-total (24 034) 8 695 10 450 (57) 15408.23% 18498.07%

Planning (7 222) (9 390) (10 193) (10 409) 9.79% 2.08%

Local Economic Development – – – –

Component B: sub-total (7 222) (9 390) (10 193) (10 409) 9.79% 2.08%

Planning (Strategic & Regulatory) – – – –

Local Economic Development – – – –

Component C: sub-total – – – –

Community & Social Services (12 125) (9 264) (11 014) (8 115) -14.16% -35.73%

Environmental Protection (621) (657) (748) (748)

12.12% -0.07%

Health – – – –

Security and Safety (1 944) (1 785) (2 605) (2 770)

Sport and Recreation (3 362) (3 402) (3 630) (3 808) 10.67% 4.67%


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Corporate Policy Offices and Other (11 564) (13 221) (14 337) (14 140) 6.50% -1.39%

Component D: sub-total (29 617) (28 329) (32 334) (29 580) 4.23% -9.31%

Total Expenditure (55 810) (20 826) (21 864) (38 319) 45.65% 42.94%

In this table operational income is offset against operational expenditure leaving a net operational expenditure total for each service as shown in the individual net service expenditure tables in chapter 3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.1.2

Grant Performance

R' 000

Description

Year -2015/16 Year 2016/17 Year 2016/17 Variance

Actual Budget Adjustments Budget

Actual Original Budget (%)

Adjustments Budget (%)

Operating Transfers and Grants

National Government: 129 236 122 974 122 974 121 667

Equitable share 124 034 113 780 113 780 113 780 0% 0%

Municipal Systems Improvement – – – – #DIV/0! #DIV/0!

Department of Water Affairs

Levy replacement

Other transfers/grants 4 146 8 132 8 132 6 825 -19% -19%

Other transfers/grants [EPWP] 1 056 1 062 1 062 1 062 0% 0%

Provincial Government: 1 105 1 200 1 200 1 200

Health subsidy

Housing

Ambulance subsidy

Sports and Recreation 1 105 1 200 1 200 1 200 0% 0%

District Municipality: – – – – – –

[insert description]


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Other grant providers: 1 181 1 200 2 188 825

Waste Grant 830 1 200 2 188 825 0% 100%

Economic Survey Grant 350 – – – 0% 100%

Capacity of Municipality – – – –

Staff Training – – – –

Recycling Centre – – – –

Vuna Awards – – – –

Total Operating Transfers and Grants 131 522 125 374 126 362 123 692

Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Full list of provincial and national grants available from published gazettes. T 5.2.1

Grants Received From Sources Other Than Division of Revenue Act (DoRA) Details of Donor Actual Grant

Year -2015/16

Actual Grant Year

2016/17

Year 2016/17 Municipal

Contribution

Date Grant terminates

Date Municipal contribution terminates

Nature and benefit from the grant received, include description of

any contributions in kind

Parastatals

A - "Project 1" - - - N/A N/A N/A


B - "Project 1" - - - N/A N/A N/A


Foreign Governments/Development Aid Agencies




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Private Sector / Organisations





Provide a comprehensive response to this schedule T 5.2.3


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5.2. ASSET MANAGEMENT The Amahlathi Local Municipality believes that an Asset Management Policy is essential to ensure effective and efficient utilization of public monies and accountability thereof

is heavily dependent on accurate recoding and accounting with the compilation of the Asset Register that is GRAP compliant. The policy is deemed necessary in order to

facilitate the effective management, control and maintenance of the assets. The prime objectives of the policy is to ensure that the assets of Amahlathi Municipality are properly

managed and accounted for by:-

Ensuring the accurate recording of asset information

The accurate recording of asset movements

Exercising strict control over all assets

Providing correct and meaningful management information

Affecting adequate insurance of all assets

Maintenance of Council’s Assets

The policy is reviewed and amended by council annually during IDP and Budget process. The last review was done in May 2017.

An asset tracking system using bar-coded discs and scanners is implemented. The system allows for regular audits of all assets to be completed in a shorter time frame and

therefore allowing for more regular updates of the register.

TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED YEAR 2015/16

Asset 1

Name Cenyu to Kalimashe Roads

Description Construction of Cenyu to Kalimashe

Asset Type Roads Infrastructure

Key Staff Involved 2

Staff Responsibilities Monitoring, Managing & Reporting on the implementation of the Project

Asset Value Year -18/19 Year -17/18

Year -16/17 Year 15/16


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5 893 800.00

Capital Implications 5 893 800.00

Future Purpose of Asset To provide the community with at least a basic level of service

Describe Key Issues

Policies in Place to Manage Asset Asset Management Policy, Roads Maintenance Policy

Asset 2

Name Isidenge Internal Roads

Description Construction of Isidenge Internal Roads



Staff Responsibilities Monitoring, Managing & Reporting on the implementation of the Project

Asset Value

Year -18/19 Year -17/18

Year -16/17 Year 15/16

4 550 000.00



Describe Key Issues


Asset 3

Name Kubusi Internal Roads

Description Construction of Kubusi Internal Roads



Staff Responsibilities Operation and maintenance of the machinery

Asset Value

Year -18/19 Year -17/18

Year -16/17 Year 15/16

4 000 000.00



Describe Key Issues


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T 5.3.2

Repair and Maintenance Expenditure: Year 2016/17

R' 000

Original Budget

Adjustment Budget

Actual Budget

variance

Repairs and Maintenance Expenditure

7 587

7 566

6 754 11%

T 5.3.4


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COMPONENT B: SPENDING AGAINST CAPITAL BUDGET

Capital Expenditure - Funding Sources: Year -2015/16 to Year 2016/17

R' 000

Details

Year -2015/16 Year 2016/17

Actual Original Budget (OB)

Adjustment Budget

Actual Adjustment to OB Variance (%)

Actual to OB Variance (%)

Source of finance

External loans

Public contributions and donations

Grants and subsidies 34 611 28 640 21 640 21 640 -24% -24%

Other 19 208 12 490 16 154 13 876 29% 11%

Total 53 819 41 130 37 794 35 516 5% -13%

Percentage of finance

External loans 0.0% 0.0% 0.0% 0.0% 0% 0%

Public contributions and donations 0.0% 0.0% 0.0% 0.0% 0% 0%

Grants and subsidies 180.2% 229.3% 134.0% 156.0% -83% -220%

Other 100.0% 100.0% 100.0% 100.0% 100% 100%

Capital expenditure

Water and sanitation

Electricity 5 228 8 500 6 350 4 800 -25% -44%

Housing – – – –

Roads and storm water 42 932 18 520 20 620 18 777 11% 1%


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Other 5 659 14 110 10 824 11 938 -23% -15%

Total 53 819 41 130 37 794 35 516 -37% -58%

Percentage of expenditure

Water and sanitation 0.0% 0.0% 0.0% 0.0% 0% 0%

Electricity 92.4% 60.2% 58.7% 40.2% 109% 283%

Housing 0.0% 0.0% 0.0% 0.0% 0% 0%

Roads and storm water 758.6% 131.3% 190.5% 157.3% -49% -9%

Other 100.0% 100.0% 100.0% 100.0% 100% 100%

T 5.6.1

Municipal Infrastructure Grant (MIG)* Expenditure Year 2016/17 on Service backlogs

R' 000

Details

Budget Adjustments Budget

Actual Variance Major conditions applied by donor (continue below if

necessary) Budget Adjust-ments

Budget

Infrastructure - Road transport 18 520 20 620 18 777 0% 0%

Roads, Pavements & Bridges 18 520 20 620 18 777 0% 0%

Storm water – –

Infrastructure - Electricity 2 000 250 2 432 0% 0%

Generation – – –

Transmission & Reticulation – – –

Street Lighting 2 000 250 2 432 0% 0%

Infrastructure - Water – – –

Dams & Reservoirs

Water purification


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Reticulation

Infrastructure - Sanitation – – –

Reticulation

Sewerage purification

Infrastructure - Other – – –

Waste Management

Transportation

Gas

Other Specify: 8 120 770 912 -77% %

Sportsfields 4 522 152 693 0% %

Fire, Safety & Emergency 3 598 498 219 0% 0%

Hawker Stalls – 120 – 0% 0%

Other – – – 0% 0%

Total 28 640 21 640 22 121 0% 0%

* MIG is a government grant program designed to fund a reduction in service backlogs, mainly: Water; Sanitation; Roads; Electricity. Expenditure on new, upgraded and renewed infrastructure is set out at Appendix M; note also the calculation of the variation. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.8.3


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COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS

Cash Flow Outcomes

R'000

#NAME?

Year -2015/16 Current: Year 2016/17

Audited Outcome

Original Budget

Adjusted Budget

Actual

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Ratepayers and other 51 413 108 481 114 029 103 100

Government - operating 131 522 125 374 126 362 123 692

Government - capital 34 611 28 640 21 640 21 640

Interest 11 597 10 799 10 800 9 595

Dividends –

–

–

–

Payments

Suppliers and employees (184 713) (217 164) (230 152) (249 967)

Finance charges – (15 000) (5 000) (1 774)

Transfers and Grants –

–

–

–

NET CASH FROM/(USED) OPERATING ACTIVITIES 44 430 41 130 37 679 6 285

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE 359

Decrease (Increase) in non-current debtors (351)

Decrease (increase) other non-current receivables

Decrease (increase) in non-current investments 205

Payments

Capital assets (36 237) (41 130) (37 794) (34 942)

NET CASH FROM/(USED) INVESTING ACTIVITIES (36 025) (41 130) (37 794) (34 942)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans

Borrowing long term/refinancing

Increase (decrease) in consumer deposits

Payments

Repayment of borrowing (31 608) –

– (5 460)

NET CASH FROM/(USED) FINANCING ACTIVITIES (31 608) –

– (5 460)

NET INCREASE/ (DECREASE) IN CASH HELD (23 203) –

(115) (34 117)

Cash/cash equivalents at the year begin: 129 028 147 381 147 381 105 825


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Cash/cash equivalents at the year end: 105 825 147 381 147 266 71 708

Source: MBRR A7 T 5.9.1

Actual Borrowings: Year -2014/15 to Year 2016/17

R' 000

Instrument Year 2014/15 Year 2015/16 Year 2016/17

Municipality

Long-Term Loans (annuity/reducing balance)

Long-Term Loans (non-annuity)

Local registered stock

Instalment Credit - - -

Financial Leases - - -

PPP liabilities

Finance Granted By Cap Equipment Supplier

Marketable Bonds

Non-Marketable Bonds

Bankers Acceptances

Financial derivatives

Other Securities

Municipality Total - - -

Municipal Entities

Long-Term Loans (annuity/reducing balance)

Long-Term Loans (non-annuity)

Local registered stock

Instalment Credit

Financial Leases

PPP liabilities

Finance Granted By Cap Equipment Supplier

Marketable Bonds

Non-Marketable Bonds

Bankers Acceptances

Financial derivatives

Other Securities

Entities Total - - -

T 5.10.2


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Municipal and Entity Investments

R' 000

Investment* type Year 2014/15 Year 2015/16 Year 2016/17

Actual Actual Actual

Municipality

Securities - National Government

Listed Corporate Bonds

Deposits - Bank 465 8 907 26 453

Deposits - Public Investment Commissioners

Deposits - Corporation for Public Deposits

Bankers Acceptance Certificates

Negotiable Certificates of Deposit - Banks

Guaranteed Endowment Policies (sinking)

Repurchase Agreements - Banks

Municipal Bonds

Other

Municipality sub-total 465 8 907 26 453

Municipal Entities

Securities - National Government

Listed Corporate Bonds

Deposits - Bank

Deposits - Public Investment Commissioners

Deposits - Corporation for Public Deposits

Bankers Acceptance Certificates

Negotiable Certificates of Deposit - Banks

Guaranteed Endowment Policies (sinking)

Repurchase Agreements - Banks

Other

Entities sub-total -

- -

Consolidated total: 465 8 907 26 453

T 5.10.4


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5.3 SUPPLY CHAIN MANAGEMENT

Section 3(1) (b) and (c) of the SCM regulations states that the accounting officer of a municipality must at least

annually review the implementation of SCM policy and when necessary submit proposal for the amendments of

the policy to council. The SCM policy was initially developed in 2005 and implemented to give effect to the SCM

regulations and it was last reviewed in May 2017. Amahlathi has established an SCM unit which comprises of

four officials. The code of conduct, oath of secrecy and declaration forms are signed by all officials involved in

supply chain management. The SCM manager has reached prescribed levels as required by the Minimum

Competency Regulations Guidelines and the other three officials are still in process. In line with Municipal Finance

Management Act (MFMA), the accounting officer has also established various bid committees that are consistent

with the SCM regulations and any applicable legislation for competitive bidding i.e.

• Bid Specification Committee

• Bid Evaluation Committee

• Bid Adjudication Committee

5.4 GRAP COMPLIANCE

The municipality is required by legislation to report on its financial affairs using GRAP Reporting Framework. The

Annual Financial Statements and Fixed Asset Register have been prepared and submitted using applicable

GRAP standards. Standards which were not effective were also complied and early adopted in an effort to

ensure continued compliance with the reporting framework. The municipality also became aware that it had to

comply with the requirements of GRAP 27 (Biological Assets) due to the identification of plantations under its

control. The Asset Register and the Annual Financial Statements have been updated through restatements.


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CHAPTER 6: AUDITOR GENERAL FINDINGS

6.1 Introduction

The accounting officer of the municipality is responsible for the preparation of the annual financial statements in

accordance with the South African Standards of Generally Recognised Accounting Practise (GRAP) and the

requirements of the Municipal Finance Management Act No. 56 of 2003 (MFMA) and for internal controls that the

management determines necessary to enable the annual financial statement to be prepared free from material

misstatement whether due to fraud or error.

The Constitution S188 (1) (b) and section 4 of the Public Audit Act of South Africa No. 25 of 2004 states that the

functions of the Auditor General includes the auditing and reporting on the accounts, financial statements and

financial management of all municipalities. MSA S45 requires that the results of performance measurement be

audited annually by the Auditor General.

6.2 AUDITOR GENERAL OPINION 2015/16

The Municipality received an unqualified audit opinion in 2015/2016 audit and the following issues were raised;

• Unauthorised expenditure of R23.5 million incurred

• Irregular expenditure R36.5 million incurred

• Material losses of R2.8 million incurred

• Restatement of corresponding figures


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2016/17 AUDIT ACTION PLAN

UNIT NAME

CATEGORY FINDING

Numbers of times

reported in

previous 3

years

SOURCE

RATINGS

MANAGEMENT

RESPONSE

AG RECOMMEN

DATION

AUDITORS CONCLUSI

ON/ RESPONSE

PROGRESS RECORDED

TO DATE

PROGRESS 2

ANNUAL PROGRES

S

RESPONSIBLE

PERSON(S)

SCM Irregular Expenditure

1. Irregular, Unauthorised and Fruitless and wasteful: Section 32 reports not submitted (Ex.16) - COAF 15 Through enquiry with the CFO it was identified that management did not submit any report relating to unauthorised, irregular or fruitless and wasteful expenditure incurred by the municipality to the mayor, the MEC for local government and the Auditor general. Internal Control Deficiency

3 MR, page 47

Annexure A

Management notes the finding; the reports are submitted to the Mayor and Council through the standing committee.

Management should inform the MEC for local government in the province and the Auditor-General, in writing, of any unauthorised, irregular or fruitless and wasteful expenditure incurred by the municipality as required by section 32 of the MFMA.

Management response noted. This will be reported in the management report as non-compliance.

All reports will be submitted to the MEC and AG by 30 June 2017

All reports have been submitted to AG on the 08 August 2017. This finding has been addressed.

Municipal Manager


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Leadership Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.

SCM Unauthorised , Fruitless and Wasteful Expenditure

2. Consequence Management: Compliance - No investigations performed on all instances of UFW (Ex 76) - COAF 19 It was noted that the municipality has not investigated all instances of unauthorized and fruitless and wasteful expenditure to determine if any person is liable for the expenditure for 2015/16 financial year. Internal Control Deficiency Leadership Exercise oversight responsibility regarding financial and performance

3 MR, page 48

Annexure A

Management has noted the recommendations of the auditor.

Management should investigate and take action to recover any Unauthorised and Fruitless & wasteful expenditure incurred.

Management have noted the finding and the matter will be reported in the audit report.

A committee has been established by the municipality and the next meeting will sit on the 29th June 2017, to look at all expenditure reports

A Committee has been established and terms of reference have been developed. The next meeting will sit by 31 August 2017 to look at all expenditure reports.

Municipal Manager


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reporting and compliance and related internal controls


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SCM Procurement and Contract Management

3. Procurement and Contract Management: False declarations made by suppliers not followed up (Ex 50) COAF 12 During an audit of CAATS data for Suppliers in which persons in service of other state institutions have an interest, we noted that there are suppliers who have either spouses/relatives/partners who are in service of the state, but failed to declare these interest and the municipality did business with these suppliers without any sort of follow-up to confirm the correctness of these declarations. Management's has agreed to adjust the financial statements therefore these will be assessed when adjustment has been made. Inspected the Adjusted Financial statements note no.37 Related parties and confirmed that the

3 MR, page 49

Annexure A

Management has noted the recommendations of the Auditor however the municipality is using Central Supplier Database as from 01 July 2016 which will be able to detect state employees as advised by Treasury.

Management should establish alternative ways of detecting false declarations by suppliers besides relying on occasional involvement of Treasury as this still gives them discrepancies, a way that will allow the municipality to do verification of declaration when suppliers apply to be on the municipality database.

Management comment is acknowledged. After assessment of additional corroborating evidence it was noted that interest identified for the following employees was not valid. The following issues will therefore be removed as finding and be marked as resolved.

A register is developed for the identified suppliers who have found not to declare their interest

This finding has been addressed.

Mr. N. Nokwe


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following have been disclosed and therefore the part relating to non-disclosure is resolved The following will be reported in the management report as non-compliance issues where awards were made to Close family members of officials and/or councillors that have an interest. No. Supplier name Employee name State institution where employed Amount 9 L. M. Velebesi Trading Velebesi Zenzile Amahlathi municipality 46 500.00 17 Zizamele Thahla general Trading Mqoqi Nokuzola Amahlathi municipality 11 500.00 18 Sabamdela Trading Dilika Faniswa Amahlathi municipality 42 300.00 100 300.00


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Internal Control Deficiency Financial and Performance Management Review and monitor compliance with applicable laws and regulations


4. Award made to a person in service of state (Ex.51) - COAF 12

3 MR, page 53

Annexure A

Management has noted the

Management should establish

Management's comment is noted and

A register is developed for the

Mr. N. Nokwe


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The audit included the identification of awards made to persons or to entities owned/ managed by officials who are in service of any other state institution. The findings were as follows: Finding Number of awards made Number of officials Number of provider Total Amount Awards to officials of other state institutions 8 8 8 1 382 760.99 Leadership: Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes, and responsibilities

recommendations of the Auditor however the municipality is using Central Supplier Database as from 01 July 2016 which will be able to detect state employees as advised by Treasury. Fort Hare Trading Solution is 100% owned by the University of Fort Hare and should not be included in the finding. Also BCX was addressed and should not be included in the audit

alternative ways of detecting false declarations by suppliers besides relying on occasional involvement of Treasury as this still gives them discrepancies, a way that will allow the municipality to do verification of declaration when suppliers apply to be on the municipality database. Management should also take action when the auditors have identified findings in prior audits.

therefore Fort Hare trading solutions (Pty), Business connexions and Total client services will be removed from the list of suppliers in service of state . The following proof have been received and inspected: 1. Resignation of the board member: Alex Boama Darko for Business connexion group limited 2. Proof that Dr Vuyo Tom and Dr Sibongile Muthwa do not receive

identified suppliers who have found not to declare their interest


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finding. See attached documentation.

remuneration from Fort Hare trading solutions (Pty) Ltd and therefore do not have interest The following awards will be reported in the management report. No Supplier name Employee name State institution where employed 1 CEMENTILE PRODUCTS SHAWN KEITH WITEFIELD Amatola Water Board 119 604.24 2


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BUBUNCWANE TRADING BAXOLISE THABILE BRIANT MHLAKOTSHANA Amatole District Municipalit 3 PERFECT TIMES TRADING SINDISWA VUTU EC: SOCIAL DEV&SPECIAL PROGRAMMS 4 BADZ TOWING AND REMOVALS BANDILE MACINGWANE Great Kei Local Municipality


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5. Interest not declared by the employees (Ex 57) COAF 12 Some employees and councillors who were found to have partners/associates/close family members who obtained awards from the municipality through procurement processes did not disclose the interest in their declaration of interest. Leadership: Provide effective leadership based on a culture of honesty, ethical business practices and good governance, protecting and enhancing the best interests of the entity.

3 MR, page 56

Annexure A

Management notes the audit finding and the AFS will be adjusted.

Management must implement prior year recommendation on interests not declared by the employees, as 2 of the employees noted above were also noted on the prior year exception.

Management's response is noted however this is non-compliance, therefore the finding still stands.

A memo/circular to Cllrs and Officials requesting them to declare interest


Mr. N. Nokwe /Ms. N. Tom


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6. Contracts not evaluated on a monthly basis (Ex 59) COAF 15 1. During testing of contract management it was noted that there is no documentation in the project files to confirm that monthly performance evaluations of the following projects were conducted during the year. No. Tender number Project description Provider 1. SCM/22/2015 Professional services to manage in-house design MBSA consultants 2. SCM/35/2014 Installation, testing and commissioning of high mast lighting in Ngcamngeni. Siyavuya power projects 3. SCM/37/2015 Heckel stormwater Mpinga Engineers 4. SCM/45/2015 Construction of Cenyu to Khalimashe access road Faku Mphumzi Civils 5. SCM/35/2015

3 MR, page 59

Annexure A

Management disagrees with the finding

Management should ensure the following: 1) All the construction projects are monitored monthly and this should be documented to ensure that follow-ups are conducted timeously if applicable. 2) The project files contain all necessary documentation relating to the progress of the project and any modifications made should be documented. 3) Proper uniform record keeping of the construction project files which must be regularly

Management response noted, however the performance reports of soe projects has not been received and will be reported. Through inspection of the performance evaluation submitted it was noted that performance evaluation for the following projects was not done monthly, therefore the finding is partially resolved and the following items will be reported.

All projects will be monitored by 30 June 2017 as per the Template that has been developed


Mr. N. Nokwe/ Mr. S. Yoko


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Implementation of performance management system. Morah Incorporated 6. SCM/44/2012 Provisioning of Cash in transit Protea Coin security 7. SCM/106/2014 Cathcart transfer station GS Civils 8. SCM/34/2014 Installation, testing and commissioning of high mast lighting in Ngcamngeni. Siyavuya power projects 9. SCM/19/2015 Internal audit services for PPE. Delloitte & Touche Leadership: Develop and monitor the implementation of action plans to address internal control deficiencies

updated with the changes happening in the project.


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7. Insufficient submission of information (Ex 75) - COAF 18 The following information was requested as detailed below and it was not submitted for audit. Furthermore after discussion and formally communicating what is outstanding with management, the information still has not been submitted and reasons for submission were not provided. Details as per Annexure No. Tender number Information not submitted 1 SCM/35/2014 Performance evaluation report 2 SCM/37/2015 Performance evaluation report 3 N/A Isidenge internal roads In-house Performance evaluation report 4 SCM/34/2014 Performance evaluation

3 MR, page 61

Annexure A

The finding is noted. The performance evaluation reports will be prepared, filed and submitted to the auditor when requested.

Management should ensure that information that is requested by the Auditor General, South Africa is made available within the agreed time frames per the request for information.

Subsequent to Communication of audit findings information related to Mpinga engineers was received and therefore Mpinga engineers will be removed. Management response acknowledged. This will be reported as non-compliance.

All projects will be monitored by 30 June 2017 as per the Template that has been developed


Mr. N. Nokwe/ Mr. S. Yoko


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report 5 SCM/22/2015 Performance evaluation report 6 SCM/45/2015 Performance evaluation report Financial and performance management: Implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting


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IDP/ Strategic

KPI 8. AOPO: The KPIs set by the municipality does not include indicators on the percentage of households with access to basic level of solid (Ex 15) – COAF 03 The municipality did not set KPIs that include a percentage of households with access to basic level of solid waste removal. The municipality does not comply with the requirements of legislation and regulations. Leadership Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.

3 MR, page 63

Annexure A

Management notes the finding the indicator on percentage households with access to waste removal will be included in the next SDBIP.

Municipality must include indicators on percentage of households with access to basic level of solid waste removal as required by section 43(2) of the MSA and the Municipal planning and performance management regulation 10(a).

Management agrees with finding as the result the finding remains.

Addressed in 2017/18


Ms T. Bacela

FINANCE

Trade Receivables

9. Trade receivables: Long outstanding debts are not handed over (Ex. 42) - COAF 11 During the audit we noted that the municipality did not

3 MR, page 64

Annexure A

Management notes find.

Management are to apply the credit policy in place to all debtors and strengthen

Management response noted and the finding stands

Addressed This finding has been addressed.

Mr. N. Nokwe


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take reasonable steps to ensure that the long outstanding debtors have not been handed over to the lawyers for debt collection and it was also noted that is no legal recourse taken for long outstanding debtors as the entity has no legal consultants available to them. This has resulted in an impairment loss and more debtors being irrecoverable as not all debtors are followed up on by implementing the policy in place. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls

internal controls over the collectability of debtors and they should ensure that the outstanding debtors are handed over for collection.


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Human Resources

Overtime 10. HR management: No prior approval for overtime worked (Ex 21) - COAF 09 During audit of overtime worked it was noted that some of the overtime worked did not have any prior authorisation as required by the overtime policy. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls

3 MR, page 66

Annexure B

Agree with the finding

Management should ensure that all overtime worked is approved prior to the day of the work being done. A copy of the agreement for overtime should be kept and attached to all the overtime claims for each employee who worked overtime.

Management agrees with the finding. The finding therefore remains and will be reported as non-compliance in the management report.

Addressed, Internal Audit will make a follow up


Ms. N. Tom

Human Resources

Overtime 11. HR management: Hours worked for overtime exceeded the limit by policy (Ex 22) - COAF 09 Some employees worked overtime that exceeds the limit of 3 hours per day and 10 hours per week, without any prior approval of these excess hours as per the policy.

3 MR, page 68

Annexure B

Management notes the finding. The attached memo to all HOD’s demonstrates Corporate Services commitment to monitor and control overtime.

Management should ensure that only limited hours of overtime are worked by the employees and that on instances where more hours need to be put in, prior approval is obtained for

Management agrees with the finding. The finding therefore remains and will be reported as non-compliance in the management report.

From the 1st July 2017 all employees will not be paid if they exceed the threshold


Ms. N. Tom


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Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls

the employees.

Human Resources

Overtime 12. Employee Costs: Differences on amounts paid for overtime worked (Ex 23) - COAF 09 During the audit of overtime worked, differences on the amounts paid for overtime and the amount recalculated based on the worksheet and employees rate were noted Financial and Performance Management: Implement controls over daily and monthly processing and reconciling of transactions

3 MR, page 70

Annexure B

Management does not agree with the finding as the formula used assumes 22 hours

Management should review transactions to ensure that the overtime worked is accurately calculated and paid for.

Management's comment is noted, however when using 22 hours more differences were noted and therefore the finding stands.

The finding was never agreed upon even though The system is present and checked on a continuous basis

Mr. N. Nokwe


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Human Resources

Leave 13. Employee cost: Non-Compliance - Employees took leave less than 16 days (Ex 30) - COAF 08 During the audit it was noted that the following employees took leave days that are less than 16 days Financial and Performance Management: Review and monitor compliance with applicable laws and regulations

3 MR, page 71

Annexure B

Management notes the finding. Letters were written to the HOD’s and affected employees informing them to take leave or forfeit leave days; copies are attached.

Management should ensure that employees at least take the minimum leave days in a leave cycle as required by the SALBC Main Collective Agreement.

Management response noted, finding stands

Letters were sent to all officials who are affected and they have since taken leave

This finding has been addressed

Ms. N. Tom

Human Resources

Recruitment 14. Employee costs: Internal control - post not advertised and no interviews took place (Ex 83) - COAF 22 During employee costs testing it was noted that the following position was not advertised and the respective employee was not interviewed for the position: Position Employee name Salary paid

1 MR, page 73

Annexure B

Management notes the finding; the employee was previously working as a casual worker and later absorbed permanently. Proper consultation with labour was followed and agreed

Management should follow proper procedures when filling a vacancy by advertising the position and appoint a suitable candidate through interviews.

Management response is noted however finding will be reported as other matters.

There are plans to rectify and addressed the Finding going forward


Ms. N. Tom


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Cleaner V.T. Sigingqi 6 117 Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls

to absorb the employee.

IT SLA 15. IT: Service level agreements not monitored and insufficient IT staff (Ex 74) - COAF 17 There was no evidence submitted to ensure that services delivered by the service providers were monitored against the services agreed in the service level agreement (SLA) to ensure optimal service delivery. The lack of monitoring of the services rendered to the entity by external service providers might result in sub-standard services being provided to the entity.

3 MR, page 74

Annexure B

The finding is noted, however the institution has established an IT Steering Committee where all IT related SLA’s will be reported and monitored.

Service performance reviews should regularly be conducted for all external service providers and timeous corrective action should be taken to remedy any deficiencies identified. Management is encouraged to implement a service level management process to ensure that

Management comment has been noted however the finding still stands

All contracts are monitored at contract management and Project steering committee meetings are sitting


Ms. T. Bacela


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There are insufficient IT staff as there are only two permanent staff. Leadership - Policies and procedures The responsibility for the monitoring of services provided was not delegated to a specific individual due to the lack of capacity and expertise to perform IT-related functions

the levels of service rendered by external service providers are continually identified, monitored and reviewed against those specified in the SLAs.

HR Policies 16. Internal control deficiencies: Policies and procedures not regularly reviewed and approved (Ex 4) - COAF 02 Per inspection of the Municipality’s policies and procedures together with the minutes to Council meetings, it was identified that: 1. The following Municipal policies had not been reviewed for the current financial year: Title

3 MR, page 75

Annexure B

No management comment.

Management must ensure that policies are reviewed and updated regularly to ensure that the municipality has and maintains and effective control system.

No management comment received however during interactions management agreed that the following policies have financial impact and should be updated regularly. These following items will still remain and


Ms. N. Tom


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Date approved Code of conduct for Staff Members/Councillors 18 December 2013 Induction Training and Staff Orientation 24 June 2004 Employment Equity 24 June 2004 Amahlathi Finance Procedure Manual July 2013 Legal Aid Policy for Councillors and Employees 24 June 2004

the following will be reported in the management report as lack of internal control.


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HR Policies Furthermore it was noted that the following policies had not yet been approved: Title 1. Succession Planning and Career Pathing 2. Performance Management System for Staff Members 3. Training and development policy 4. Staff Productivity and outstanding Performance Award System 5. Community Participation Policy 6. Amahlathi Finance Procedure Manual Leadership Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities

3 MR, page 75

Annexure B

No management comment.

Management must ensure that policies are reviewed and updated regularly to ensure that the municipality has and maintains and effective control system.

No management comment received however during interactions management agreed that the following policies have financial impact and should be updated regularly. These following items will still remain and the following will be reported in the management report as lack of internal control.


Ms. N. Tom


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Finance

Expenditure 17. Invoices not signed (Ex 69) - COAF 16 During the audit of Irregular expenditure it was noted that some invoices paid during the year were not signed by the municipal officials to acknowledge receipt of goods and services. Financial and Performance Management Implement controls over daily and monthly processing and reconciling of transactions.

3 MR, page 78

Annexure B

Management has noted the finding.

Management should validate invoices by signing them before they are paid to ensure that payments are made only for invoices which goods and services have been received by the municipality.

Management response is acknowledged and this finding will be reported accordingly.


Mr. N. Nokwe

Finance

Expenditures 18. Record reviews: Issues identified (Ex. 3) - COAF 01 1. The municipality has not reported any unauthorised irregular, fruitless and wasteful expenditure to the AGSA and COGTA. 2. The annual budget of the municipality has not been reconciled to the strategic objectives of the municipality. 3. The debtors balances

3 MR, page 79

Annexure B

1. The municipality has not reported any unauthorised irregular, fruitless and wasteful expenditure to the AGSA and COGTA. Irregular and fruitless expenditure

1. Management should ensure they fully comply with the requirements of section 32 should an irregularity be identified. 2. The budget should be reconciled to the SDBIP and

1. Auditors response: Management comment is acknowledged however management has not provided evidence to support their comment. This finding will still stand and can only

All reports will be submitted to the MEC and AG by 30 June 2017


Municipal Manager


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per the age analysis are not reconciled to the debtors control account in the general ledger on a monthly basis. Leadership: Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes, and responsibilities

relating to 2014/15 and quarter 1 for 2015/16 has been tabled to council for decision. Unauthorised expenditure is in a process of being tabled to council. The council will then resolve on the tabled expenditures. 2. The annual budget of the municipality has not been reconciled to the strategic objectives of the municipality. The finding is noted and will be

strategic objectives and indicators. 3. A debtor’s reconciliation should be prepared on a monthly basis and reviewed by the CFO.

be resolved when management has provided supporting evidence. 2. Auditors response: Management agrees and has committed into addressing the finding. This finding will be therefore still remain and will only be resolved when the necessary amendments have been made and the annual budget is aligned to the strategic objectives. 3. Auditors response:


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addressed. 3. The debtor’s balances per the age analysis are not reconciled to the debtors control account in the general ledger on a monthly basis. Management disagrees with the finding, debtor’s age analysis is reconciled to general ledger on a monthly basis Refer to comments above.

Management comment is acknowledged however management has not provided evidence to support their comment. This finding will still be open and will be looked at during execution at year end.


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Internal Audit

Audit Charter

19. Internal control deficiencies: Non compliance with Audit Committee Charter (Ex.6) - COAF 02 The following issues were identified: 1. The audit committee charter was not reviewed for the period 2015/16.Note 2. The report submitted to council by the audit committee was not signed Financial and performance management: Review and monitor compliance with applicable laws and regulations.

1 MR, page 81

Annexure B

The finding is noted

Management should ensure that the audit committee procedures are followed.

Management has noted the finding therefore agrees with the finding. This will therefore be reported in the management report.

Will be submitted to the Council in 30th June 2017

Municipal Manager


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SCM Procurement 20. Procurement: Compliance - Inconsistencies with SCM regulations (Ex 11) - COAF 12 The following inconsistencies were identified in the SCM policy: Paragraph 22 of the SCM policy indicates that the minimum procurement method for goods and services with a value between R2 001 to R5 000 is one quote. This is in contradiction with the requirements of the SCM regulations which requires 3 quotes for this threshold to be obtained Leadership: Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.

2 MR, page 82

Annexure B

The policy has been revised and implemented accordingly.

Management should revise the SCM policy and amend paragraph 22 of the SCM policy on the R2 001 to R5 000 as to be consistent with paragraphs 26 and 27 which comply with the SCM regulations.

Management response is noted, however the finding still stands.

Addressed Mr. N. Nokwe


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SCM Procurement 21. Procurement: points allocated to losing bidders while BEE certificate not certified or original & incorrect points allocated. (Ex 53) – COAF 12 During the testing of SCM the following was identified: Losing bidders were allocated points while their BEE certificates are not original or certified copies: 1 Alomna construction 3 16 2 KNND Constructors 3 16 Incorrect points were allocated to the following losing bidder: 1 Sizwe Ntsaluba SCM/13/20915-16 70.95 58.28 Financial and Performance Management: Implement controls over daily and monthly

2 MR, page 84

Annexure B

Management agrees with the finding and recommendations will be implemented.

Management need to ensure the following that: 1. B-BBEE status level certificates of bidders are original and if not, to ensure that the copies thereof are certified. 2. Allocate points to bidders using the formula provided in preferential procurement regulation 5 & 6.

Management's response is noted, therefore the finding still stands.



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processing and reconciling of transactions

SCM Procurement 22. Procurement (Above R200 000) Tender not registered on the CIDB website (Ex 58) - COAF 12 The tenders below relating to construction projects could not be verified that the invite to tender was advertised on the CIDB website:

3 MR, page 86

Annexure B

There was a technical problem with the CIDB website settings and bandwidth in general of which now it is resolved and tenders are being

Management should ensure that they: • escalate the challenge with the relevant authority and the management of CIDB and source a resolution to

Management's comment is noted; however the non-compliance stands and management should follow up with treasury and CIDB.



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No. SCM No. Details Amount 1. SCM/21/2015-16 Upgrading of Lower Kologha Road Surfacing 5 893 800.00 2. SCM/60/2015-16 Construction of Keiskammahoek side walk Paving 3 718 764.36 3. SCM/26/2015 Rehabilitation of Xholorha stormwater 521 262.72 10 133 827.08 Financial and performance management: Review and monitor compliance with applicable laws and regulations.

advertised. The above mentioned project was loaded in the site but it could not be authorized due to the system failure. Proof will be submitted to the auditor for scrutiny.

the problem • keep print screens of the tenders register in order to have evidence of having registered the tender.

SCM Procurement 23. Procurement: Invitation of tenders through e-Tender portal not yet started (Ex 64) - COAF 16 During SCM testing it was noted that Invitation of tenders through e-Tender portal has not yet started

0 MR, page 23

Annexure B

Management notes the finding; the consultation process to amend the policy has started.

Management should update the SCM policy to provide for invitation of competitive bids through the e-Tender portal, apply

Management response is acknowledged however this will be reported as non-compliance.


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per the MFMA requirements. Financial and performance management: Review and monitor compliance with applicable laws and regulations.

for access to the e-Tender portal and start inviting tenders using the portal.

SCM Procurement 24. Procurement (Above R200 000) Tender not registered on the CIDB website (Ex 8) - COAF 02 The tenders below could not be verified with regards to the construction projects: 1. that the invitation to tender was advertised in the CIDB website. 1. SCM/15/2015-16 Eluphondweni community hall renovation 2. SCM/21/2015-16 Upgrading of Lower Kologha Road Surfacing 3. SCM/60/2015-16 Construction of Keiskammahoek side walk Paving 5. SCM/26/2015 Rehabilitation of Xholorha

3 MR, page 24

Annexure B

There was a technical problem with the CIDB website settings and bandwidth in general of which now it is resolved and tenders are being advertised. The above mentioned project was loaded in the site but it could not be authorized due to the system failure. Proof will be submitted to

Management should escalate the challenge with the relevant authority and the management of CIDB and source a resolution to the problem. Management should keep print screens of the tenders register in order to have evidence of having registered the tender.

Management comment and submission acknowledged. After consideration of the submission however it was concluded that information submitted does not give sufficient evidence for non-registering the tender on the CIDB website. This finding

Addressed This finding has been addressed

Mr. N. Nokwe


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stormwater 2. That the project was registered in the register of construction contracts with the CIDB within 21 working days: 1. SCM/15/2015-16 Eluphondweni community hall renovation Financial and performance management: Review and monitor compliance with applicable laws and regulations.

the auditor for scrutiny

will therefore stand and will be recorded in the management report.


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FiNANCE/Engeneering

Material Losses

25. Material losses: Disagreement – Incorrect amount of material losses disclosed (Ex 46) - COAF 15 In terms MFMA circular 71 the acceptable ranges for losses of electricity should be within the financial ratios of: Electricity distribution losses 7% - 10% It was noted that the percentage of electricity distribution losses as reflected on the electricity monthly losses schedule is 17% This percentage is above the acceptable range for electricity losses. The electricity distribution losses percentage above the norm will be reported as an emphasis of matter paragraph on the audit report as material losses disclosed. Financial and performance management:

3 MR, page 91

Annexure B


Management should monitor the losses on monthly basis and follow up.

Management response noted. This will be reported as an emphasis of matter paragraph on the audit report

Still in a process of addressing electricity losses as a report reflecting areas to address has been developed

Mr. S.Yoko


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Prepare regular, accurate and complete financial and performance reports that are supported and evidenced by reliable information


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LED Economic Development

26. Value add: Support for SMME's (Ex 79) - COAF 19 As per government expectation, government institutions should link the following priority in their strategic planning "Speeding up economic growth & transforming economy to create decent work and sustainable livelihoods" During analyses of municipal support for SMME's it was noted that the municipality has linked the above priority to one of its programs in their strategic documents however it was noted that the implementation of the objective has not taken place during the period under review. The following was deficiencies were noted 1. There is no direct financial support for SMME's. 2. Management has not identified areas on which

0 MR, page 92

Annexure B


Management should ensure that there are proper controls to compile and record information for SMME's is filled.

Management has noted the finding and this will be reported in the management report.

Flag it until the SDBIP session

Mr. B. Ondala


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areas on which SMME's will be allocated to the municipality's scope of work. This could lead to inability of growth for small companies due to insufficient support by local municipality. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls.


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Roads Road Maintenance

27. Compliance - Infrastructure: Service delivery - Roads maintenance and renewal deficiencies (EX.19) - COAF 15 Per audit work performed on infrastructure road maintenance and renewal, the following deficiencies were identified: 1. The municipality does not have an approved policy in place for the planning, management and reporting of roads infrastructure. 2. The approved RMP/priority list does not provide for renewal and routine maintenance of all roads infrastructure allocated to the municipality. 3. The list of projects on which current year expenditure on re-gravelling of roads was incurred on per vote number 1101421095115 was requested from management, and could

2 MR, page 93

Annexure B

1. Management notes the finding; the road maintenance policy has been developed and is yet to be approved by council. Attached is the copy. 2. Management has noted the finding. 3. Management has noted the finding. 4. The finding is noted; however the municipality did not overspend on the overall MIG allocation. 5. Management does not

1. The municipality should send to council the draft road maintenance policy for council approval. 2. The approved priority list for renewal and routine maintenance of roads infrastructure should include all planned projects. 3. Management should have a list of all projects processed under vote number 1101421095115 so as to monitor expenditure incurred for each planned project.

Management comments noted, Finding is partially resolved and therefore still stands

Road Maintenance policies and plan have been developed and RAMS system is being utilised for our roads

Mr. S. Yoko


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not be provided as the expenditure incurred was not monitored per project. 4. The municipality overspent their 2015-16 PPE renewal budget by 14% for the projects. 5. 4 renewal projects planned for 2015-16 did not take place during 2015-16. 6. The municipality had repetitive findings since 2014-15 on items 1 - 5 listed above. No progress was made on the remedial actions identified to address the finding because the municipality deems the procedures as impractical for implementation especially for the size of the municipality. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance

agree with the finding; priorities change and adjustment budget allows municipality to adjust if priorities change. The projects were subsequently revised during the adjustment budget period to fund other urgent projects.

4. Management should monitor expenditure on all projects planned for renewal to ensure that they are completed within budget. 5. Management should ensure that all projects planned for renewal are carried out as planned.


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and related internal controls.


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Finance

Expenditure 28. General expenditure: Payment not made with 30 of receipt of the invoice (Ex 33) - COAF 06 During the audit it was noted that the following invoice did not have a stamp with a date of receipt as a result it was not possible to determine if the payment was made within 30 days as per section 62(2)(e) of the MFMA Financial and performance management: Review and monitor compliance with applicable laws and regulations

3 MR, page 96

Annexure B

Management notes the finding; this will be closely monitored going forward

Management should ensure proper monitoring of the payments of creditors, means of receiving the invoices on time (Invoices to be received via email) should be in place. All management should stamp all the invoices when received to make it easier to determine if the invoice was paid in 30 days or not.

Management response noted, finding stands



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IDP/PMS

Performance Management

29. AOPO: Indicators not well defined (Ex 18) - COAF 03 There is no definition for the indicators listed below as a result we are unable to conclude that the indicators have a clear definition and that the indicators are defined so that data will be collected consistently. Therefore, A total of 8% (<20%) of the indicators were not well defined. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls.

3 MR, page 97

Annexure B

Management notes the finding; this will be corrected going forward.

Management should follow the MPPI requirements so that: Performance indicators have clear, unambiguous definition so that data will be collected consistently, and be easy to understand and use.

Management comment is noted and management agrees with the finding. This will therefore be reported in the management report.

Addressed Ms. T. Bacela

Finance

Revenue 30. Revenue: Compliance Pre-paid electricity cash not received timeously (Ex 20) - COAF 05 The following receipts relating to prepaid electricity were not received by the municipality by the end of

3 MR, page 99

Annexure B

The finding is noted, Delays are caused by the Post Office as Conlog only makes payment on receipt of

Management should ensure that amounts due to the municipality are collected timeously to ensure that compliance with the Act.

Management comment is noted and management agrees with the finding. This will therefore be reported as non-



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the month. Item Description Billing Month Revenue Collected by Conlog Date received Receipt Number Prepaid electricity November R 569 193.40 05/01/2016 42355 Prepaid electricity December R 608 873.10 11/02/2016 7072 Prepaid electricity April R 559 035.70 09/06/2016 9345 Financial and Performance Management: Review and monitor compliance with applicable laws and regulations

original invoice. The municipality will make use of a courier to address the matter.

Furthermore revenue due to the municipality from collecting agents should be reconciled at least on a weekly basis and at most on a monthly basis. The municipality should ensure that timeous deposits of the monies due from the collecting agents are included on the terms of reference with the collecting agents.

compliance in the management report.


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PMU PMU 31. Unspent conditional grants -Performance reports not submitted to treasury (Ex 80) - COAF 20 No supporting evidence was provided to indicate that quarterly non-financial performance reports had been submitted to National Treasury at the end of each quarter for MIG Grants. Internal control deficiency Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls.

1 MR, page 101

Annexure B

Management has noted the finding and this will be addressed going forward.

Management should ensure that applicable regulations to the municipality are complied with.

Management has noted the finding and this will be reported accordingly.

Will be submitted by 30 June 2017

Mr. N. Nokwe


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6.3 AUDIT REPORT OF THE AUDITOR GENERAL 2015/16 FINANCIAL YEAR (Previous Year)

2.

4.

l i


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Additional matters


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East London


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6.4 AUDIT COMMITTEE REPORT

DRAFT REPORT OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 30 JUNE 2017

We are pleased to present our report for the financial year ended 30 June 2017.

1. Purpose

The function of the Audit Committee (hereinafter referred to as the Committee) is primarily to assist the Amahlathi

Municipality (hereinafter referred to as the Council) in discharging its duties relating to the safeguarding of assets,

the operation of adequate systems, control processes and the preparation of financial reports and statements.

2. Legal / Statutory Requirements

The Committee operates in terms of Section 166 of the Municipal Finance Management Act (MFMA), Act No. 56

of 2003 and has endeavoured to comply with its responsibilities arising from those requirements. Other pieces of

legislation that regulates function of the Committee are:-

- Municipal Structures Act

- Municipal Systems Act 32 of 2000

3. BACKGROUND

a. The Audit Committee sits on a quarterly basis to review Internal Audit reports as well as advise the Municipal

Council, the Political office-bearers, the Accounting Officer and the management staff of the municipality on

matters relating to:

internal financial control and internal audits;

risk management;

accounting policies;

the adequacy, reliability and accuracy of financial reporting and information;

performance management;

effective governance;

compliance with this Act, the annual Division of Revenue Act and any other applicable legislation;

performance evaluation; and

any other issues referred to it by the municipality that are within the ambit and scope of the AC

b. Furthermore the Audit Committee has to review the annual financial statements and respond to the Council on

any issues raised by the Auditor-General in the audit report.


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4. Role and Responsibility of the Audit Committee

The function of the Audit Committee (hereinafter referred to as the Committee) is primarily to assist the Amahlathi

Municipality (hereinafter referred to as the Council) in discharging its duties relating to the safeguarding of assets,

the operation of adequate systems, control processes and the preparation of financial reports and statements.

The Committee operates in terms of section 166 of the Municipal Finance Management Act (MFMA), Act No. 56 of

2003 and has endeavoured to comply with its responsibilities arising from those requirements.

The Committee has performed its duties according to its terms of reference in the form of an approved Audit

Committee Charter which stipulates amongst other issues the primary purpose of the Committee, which is:

To monitor the integrity of the Council’s financial statements and announcements relating to its financial

performance, reviewing significant financial reporting judgements.

To review the effectiveness of the Council’s internal controls and risk management systems.

To monitor the effectiveness of the internal audit function and review its material findings.

To oversee the relationship with the internal and external auditors, including agreeing the latter’s audit

fees and terms of engagement, monitoring their independence, objectivity and effectiveness.

All the processes preceding the audited Annual Report presented to the Council are being adhered to.

Namely:

Submission of the Section 71 reports to Treasury;

Submission of the Annual Performance Report;

Submission of the Annual Financial Statements, and

Auditing of the Annual Financial Statement and Annual Performance Report.

The Committee has no executive function and its primary objective is to review, advise and give support rather

than assume responsibility for any matters within its remit.

5. Audit Committee Members and Attendance

The audit committee consists of the members listed hereunder and should meet 4 times per annum as per its

approved terms of reference. In terms of the Audit Committee Charter, the committee should consist of a minimum

of 3 members. Ms Mnqeta was appointed as the Chairperson of the Audit Committee. The audit committee held 4

ordinary meetings and 4 special meetings during the year under review.

Name of Member No of special meeting

attended

No of ordinary meetings

attended

Ms. T. Mnqeta (Chairperson) 3 4


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Ms. T. Maqwati 4 4

Dr. M. Deliwe 4 4

6. Dates of Audit Committee Meetings

The ordinary audit committee meetings are also attended by the Municipal Manager, Section 56 Managers, internal

and external auditors and other relevant stakeholders.

7. The effectiveness of internal controls

The system of internal control was not entirely effective for the period under review, however it must be noted that

there is slight improvement that was identified. The following reports have been reviewed for the year:

Annual Financial Statements;

Annual Performance Report;

Annual Report;

Follow-up on whether recommendations have been implemented for 2016/2017 Internal Audit reports;

Follow-up on whether recommendations have been implemented for the NERSA report;

Review of In-House Projects;

1st, 2nd, 3rd and 4th quarter Performance Reports;

Review Mid-Year Report;

Revenue Management;

Follow-Up on AG report; and

Review of the SDBIP 2017/2018

Ordinary Meetings Special Meetings

11 July 2016 25 August 2016

07 November 2016 28 August 2016

01 March 2017 20th January 2017

01 June 2017 25 May 2017


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8. Challenges

Though it is indicated above that there is an improvement, but there are still challenges that can lead

Municipality not attaining clean audit as required, thereby impacting on performance of Internal Audit as

well as Audit Committee. Namely

8.1 Regression in terms of performance management in some of the departments;

8.2 Delay in appointing of Senior Managers;

8.3 Standardisation and impact it has made in terms of budget and sustainability of Municipality;

8.4 Suspension of Senior employees without Succession planning nor strategic planning of how the

department would function in the absence of the Head of Department;

8.5 37 employees that were suspended without succession planning;

8.6 Resistance by management to take Audit Committee recommendations;

8.7 Slow progress in the finalisation of the disciplinary cases; and

8.8 Role on politicians in Administration.

9. The quality of In-year management and monthly/quarterly reports

The Municipal Manager submitted reports during the year under review with regard to performance management

and it was noted that the quality of the report has improved. It must be noted that the Section 71 and section 72

reports are submitted timeously and required by the legislation.

10. Internal Audit

The Audit Committee is satisfied that the internal audit function is operating effectively and that it has addressed

the risks pertinent to the municipality in its audit. Focus by the audit committee on internal audit is to ensure that

management implement the recommendations from the internal audit reports. However it must be noted that the

recommendations of Internal Audit are not always implemented by management timeously.

11. Auditor General South Africa

There is a sound and professional relationship between the Audit Committee and the Office of the Auditor General

so as to ensure compliance.

SIGNED BY:

________________________________________

Ms. T. Mnqeta

Chairperson of the Audit Committee

30th June 2017


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CHAPTER 7 APPENDICES

APPENDIX A: COUNCILLORS, COMMITTEES ALLOCATED AND COUNCIL ATTENDANCE

Councillors, Committees Allocated and Council Attendance

Council Members Full Time /

Part Time

Committees

Allocated

*Ward and/ or Party

Represented

Percentage

Council

Meetings

Attendance

Percentage

Apologies for

nonattendance

Percentage

Absentism

1. Cllr. P. Qaba Full Time Mayor of the Council PR Councillor 100% 0% 0%

2. Cllr. N. P. Mlahleki Full Time. Speaker of the Council PR Councillor 100% 0% 0%

3. Cllr. X. Mngxaso Full Time Whippery PR Councillor 100% 0% 0%

4. Cllr. N.C. Nongqayi Full Time BTO Portfolio Head PR Councillor 90% 0% 10%

5. Cllr. X. Mngxaso Full Time Development and

Planning Portfolio

Head

PR Councillor 100% 0% 0%

6. Cllr. N. Busika Full Time Corporate Services

Portfolio Head


7. Cllr. N. Monti Full Time Service Delivery

Portfolio Head


8. Cllr. T. Balindlela Full Time Community Service

Portfolio Head


9. Cllr. S. Malawu Full Time MPAC Ward 13 70% 30% 0%

10. Cllr. E. N. Brukwe Part Time Development and

Planning

Ward 5 90% 10% 0%

11. Cllr. R.T. Desi Part Time Budget and Treasury Ward 12 100% 0% 0%

12. Cllr. D. Gxekwa Part Time MPAC Ward 2 80% 20% 0%

13. Cllr. A. Hobo Part Time Community Services PR. Councillor 70% 30% 0%

14. Cllr. N. Jikazayo Part Time MPAC Ward 7 100% 0% 0%

15. Cllr. N. A. Kato-Manyika Part Time Budget and Treasury PR Councillor 70% 20% 10%


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16. Cllr. M. Mjikelo Part Time Community Services Ward 4 100% 0% 0%

17. Cllr. N. Mtati Part Time Corporate Services/

Strategic Services

Ward 15 90 % 10% 0%

18. Cllr. G. D. Mxosa Part Time Service Delivery and

Infrastructure


19. Cllr. D. Mzili Part Time Development and

Planning

Ward 1 90% 10% 0%

20. Cllr. M. Ngcofe Part Time Service Delivery and

Infrastructure

Ward 3 80% 20% 0%

21. Cllr. N. Ngxakangxaka Part Time Development and

Planning

PR Councillor 100% 0%

0%

22. Cllr. T.C. Ngxingolo Part Time Corporate

Services/Strategic

Services


23. Cllr. G. P. Noxeke Part Time Community Services Ward 14 90% 10% 0%

24. Cllr. P. Ntwanambi Part Time MPAC PR Councillor 60% 30% 10%

25. Cllr. X. Nqata Part Time Corporate Services/

Strategic Services

Ward 8 100% 0% 0%

26. Cllr. M. Nqini Part Time Development and

Planning

Ward 9 100% 0% 0%

27. Cllr. R. Pickering Part Time Budget and Treasury PR Councillor 90% 10% 0%

28. Cllr. X. Tokwe Part Time Corporate

Services/Strategic

Services

Ward 6 100% 0% 0%

29. Cllr. V.W. Tshaka Part Time Community Services Ward 10 100% 0% 0%

30. Cllr. S.G. Venkile Part Time Service Delivery Ward 11 70% 30% 0%

31. Cllr. N. Pose Part Time Service Delivery/

MPAC


31. Traditional Leader: Mr. A.T.

Daka

Part Time Service Delivery Traditional Leader 100% 0% 0%

32. Traditional Leader: Ms. N.

Sandile

Part Time Corporate

Services/Strategic

Services

Traditional Leader 100% 0% 0%


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33. Traditional Leader: Mr. K.

Sandile

Part Time Budget and Treasury Traditional Leader 100% 0% 0%

34. Traditional Leader: Mr. Z.

Ngudle

Part Time Development and

Planning


35. Traditional Leader: Mr. Mdledle Part Time Community

Services/Strategic

Services


36. Traditional Leader: Mrs. N.G.

Mekuto

Part Time MPAC Traditional Leader 100% 0% 0%

Note: * Councillors appointed on a proportional basis do not have wards allocated to them T A

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APPENDIX B: COUNCIL COMMITTEES (Other than Mayoral/ Executive Committee) and Purposes of the Committees

Municipal Committees Purpose of Committee

Budget and Treasury The purpose of the Budget and Treasury Standing Committee as a Section 79 Committee of Council is to:-

Provide Political Leadership by being responsible for Policy outcomes, oversight and holds the Chief Financial Officer accountable for

Performance by regular and consistent reporting to Council through the Committee.

Service Delivery Report on Progress and Challenges on Capital Projects.

Report on work done as per the Maintenance programme of Roads, also alerting the committee of the repairs done on Machinery

That might have caused delays in the Programme.

Challenges in the Department in General.

Amount of Jobs created.

The response time in repairing any complaints from the Community.

Report on Budget Expenditure.

Development and Planning To create a conducive environment for business to invest at Amahlathi area.

To encourage business to create jobs in order to reduce unemployment.

To promote SMME's and co-operatives within Amahlathi.

To promote tourism as a vehicle for Job creation within Amahlathi.

To support emerging farmers that are within Amahlathi and link them with business in order to sell their products.

Strategic Services Empowerment is meant to create a conducive Environment for designated groups to be allowed equal opportunities

To ensure that everyone has free access to government benefits irrespective of any kind of disability.

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Municipal Committees Purpose of Committee

To ensure that Gender is taken care to all workplaces.

To restore Human dignity to previously disadvantage groups

To capacitate and empower the community to all matters of government

To conduct awareness campaigns for designated groups about their rights.

Community Services To provide accessible, affordable, equitable and sustainable service as well as a healthy environment to residents and business operating in the Amahlathi Local Municipality.

To contribute towards a safe and secure environment.

To promote a clean and healthy environment.

To promote a culture of reading and learning.

To ensure that Public Amenities are improved and well managed.

Corporate Services To oversee the proper, efficient and effective operations of Human Resources and Administration Department.

To ensure that Policy Formulation and recommendation from both Sections are in line with vision and mission of the municipality as well as

Compliant with National and Provincial Legislation.

To represent employer component in Provincial Institution Cluster of SALGA, Amathole District Municipality

To champion good working relations between the employer and employee component of the municipality.

To ensure that Departmental goals and Departmental Budget are aligned.

To devise programs for imparting of skills to Stakeholders within the municipal area.

To oversee that proper employment procedures are undertaken without disadvantaging anyone.


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APPENDIX C: FUNCTIONS OF MUNICIPALITY

MUNICIPAL FUNCTIONS Function Applicable to Municipality (Yes / No)*

Constitution Schedule 4, Part B functions:

Air pollution Yes

Building regulations Yes

Child care facilities Yes

Electricity and gas reticulation Yes

Firefighting services Yes

Local tourism Yes

Municipal airports No

Municipal planning Yes

Municipal health services No

Municipal public transport No

Municipal public works only in respect of the needs of municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under this Constitution or any other law

Yes

Pontoons, ferries, jetties, piers and harbours, excluding the regulation of international and national shipping and matters related thereto

No

Storm water management systems in built-up areas Yes

Trading regulations Yes

Water and sanitation services limited to potable water supply systems and domestic waste-water and sewage disposal systems

No

Beaches and amusement facilities Yes

Billboards and the display of advertisements in public places Yes

Cemeteries, funeral parlours and crematoria Yes

Cleansing Yes

Control of public nuisances Yes

Control of undertakings that sell liquor to the public Yes

Facilities for the accommodation, care and burial of animals Yes

Fencing and fences Yes

Licensing of dogs Yes

Licensing and control of undertakings that sell food to the public Yes

Local amenities Yes

Local sport facilities Yes

Markets Yes

Municipal abattoirs Yes

Municipal parks and recreation Yes

Municipal roads Yes

Noise pollution Yes

Pounds Yes

Public places Yes

Refuse removal, refuse dumps and solid waste disposal Yes

Street trading Yes

Street lighting Yes

Traffic and parking Yes

* If municipality: indicate (yes or No); * If entity: Provide name of entity


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APPENDIX D: WARD REPORTING

Ward Name (Number)

Name of Ward Councillor and elected Ward Committees

Committee established (Yes /NO)

Number of Committee meetings held during the year

Number of quarterly reports submitted to the Speaker on time

Number of quarterly public meeting held during year

WARD 1 Cllr D.Mzili 1.Lindela Manyakanya 2.Nokrisimesi Mbande 3.Nozolile Mfuleni 4.Lulama Kwankwa 5.Cynthia Vane 6.Phumla Bobo 7.Nokuthula Madlokazi 8.Thulani Mlarsheni 9.Vuyokazi Bikitsha 10.Masixole Tebe

YES 12 3 4

WARD 2 Cllr D.S.Gxekwa 1.Veliswa Mhluzi 2.Vuyelwa Nkovu 3.Siyabulela Mpayipheli 4.Siseko Cawa 5.Milia Molteno 6.Cebo Madlokazi 7.Kungeka Sixholo 8.Ndodomzi Manyakanyak 9.Mongameli Rode 10.Nomataru Mhlauli

YES 12 2 4

WARD 3 Cllr M.Ngcofe 1.Ntombikayise Mbane 2.Alfred Veto 3.Phiweka Socishe 4.T.Madlokazi 5.Zimasa Mthi 6.Akhona Tweni 7.Mfuyo Jumba 8.Nomathemba Ngoyi 9.Fundiswa Luthuli 10.Makhi Manentsa

YES 12 2 4

WARD 4 Cllr M Mjikelo 1.Nocwaka Nonyongo 2.Portia Mbesi Nancy Cofa 4.Phumelele Malamgeni

YES 12 4 4

WARD 5 Cllr Brukhwe 1.Sakhumzi Lubengu

YES 12 2 4


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2.Ntombizanele Nono 3.Nomakorinte Ngcaku 4.Thobigunya Kolobile 5.Vukaphi Mpumelelo 6.Neliswa Nyathi 7.Vivian Sajini 8.Phindiwe Blom

WARD 6 Cllr Tokhwe 1.Olwethu Booi 2.Nosango Manoni 3.Luyanda Sindi 4.Naomi Webster 5.Nontekelelelo Xiniwe 6.Siphokazi Funani 7.Gudiswa Matomela 8.Nosiphiwo Nogqala 9.Zukile Malima

YES 12 3 4

WARD 7 Cllr Jikazayo 1.Sihlalo Magibizela 2.Phatheka Nojoko 3.Nontuthuzelo Damane 4.Nozukile Felem 5.Nosithile Momeni 6.Nwabisa Mbelwana 7.Nokona Bacela 8.Norah Toyiya 9.Kholiwe Sindaphi

YES 12 0 4

WARD 8 Cllr X.Nqatha 1.Lulama Kama 2.Thembeka Noqholi 3.Lee Fletcher 4.X.Mbiko 5.Mthuthuzeli Mkefu 6.Bulelwa Pinana 7.Busisa Xongwana 8.Nombuzo Bhanethi 9.Wonke Ntlombe 10.Nosiphiwo

YES 12 1 4

WARD 9 Cllr M.Nqini 1.Vuyo Mdutywa 2.Athini Somana 3.Xoliswa Xayiya 4.Khanya Sotyantsi 5.Msa Madliwa 6.Siyabonga Ntende 7.Thandeka Ntsasa 8.Zoleka Mbekeni 9.Zameka Sotyantsi 10.Nobekaphi Wawa

YES 12 4 4

WARD 10 Cllr V.Tshaka YES 12 4 4


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1.N.Maseti 2.D.R.Nonkewuse 3.Ntombizakhe Jaza 4.Bukelwa Soyi 5.Buntu Mpondo 6.Unathi Potose 7.Ndileka Magwaxaza 8.Nomfanelo Fikilane 9.Ntombizanele Sodzeme

WARD 11 Cllr S.Venkile 1.Sizeka Mqwebedu 2.Sebenzile Barney 3.Nokwanda Sinina 4.Lusanda Habule 5.Nyameka Mankabane 6.Nomsebenzi Lantu 7.Nontyantyambo Charles 8.Mthuthuzeli Apleni 9.Sindiswa Lunge 10.Sithembile Zondani

YES 12 3 4

WARD 12 Cllr R.Desi 1.Thandeka Blom 2.Thumeka Nobavu 3.Nomvuyo Ntsudushe 4.Cebo Kotsobe 5.Phelisa Zipindile 6.Fanelwa Ngese 7.Luvuyo Mtila 8.Nosicelo Tishala 9.Lote Nosipiwo 10.Zukiswa Komani

YES 12 0 4

WARD 13 Cllr S.Malawu 1.Nomandithini Sotyantsi 2.Phumza Moloze 3.Khayalethu Selani 4.Tshona Caswell 5.Bulelani Bloro 6.Nikelwa Mancam 7.Vuyelwa Nyamakazi 8.Vuyo Jakuja

YES 12 0 4

WARD 14 Cllr D.Noxeke 1.Neliswa Mbulawa 2.Lina Busika 3.Victoria Poni 4.Zukile Jaqula 5.Yoliswa Mapukatha 6.Nozuko Mbiko

YES 12 2 4


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7.Mlingiseleli Cetywayo 8.Mziyanda Mtsewu 9.Mzayifani Nongqayi 10.Nomsa Jeremiah

WARD 15 CLLR Mtati 1.Vulindlela Mvandaba 2.Zoliswa Kweleta 3.Mlandeli Mbende 4.Themba Mdedetyana 5.Mbulelo Ndinisa 6.Vusumzi Foslara 7.Siziwe Mcoyama 8.Mzikayise Dyosi 9.Thembisa Nkabgala 10.Nombulelo Thomose

YES 12 2 4


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APPENDIX E: MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS

# ITEM RESPONSIBLE

IMPLEMENTED/ NOT

IMPLEMENTED

REASON FOR NONE

IMPLEMENTATION

1.

FORENSIC REPORT

It was indicated that no progress has been made with regards to

the matter. The Chairperson suggested that the matters should

be discussed at the in committee meeting with the Municipal

Manager.

Municipal Manager

Implemented

n/a

2. REGISTER OF FRUITLESS AND WASTEFUL EXPENDITURE

It was agreed that actions to be taken against individuals

incurring fruitless and wasteful expenditure should be presented

on the next Audit Committee meeting.

Municipal Manager

Not Implemented

The municipality took a resolution

to form a committee that will be

responsible for investigating

fruitless, wasteful and irregular

expenditure.


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3. RISK REGISTER – ENGINEERING SERVICES

It was indicated that the Engineering HOD should sit with

Management in order to present the risk register and to include

actions on those risks identified on the register.

ES Director

Implemented

n/a

4. MUNICIPAL MANAGER’S REPORT

It was indicated that the draft Governance Framework will be

taken to Council on the 08 December 2016.

Municipal Manager

Not Implemented

The framework still needs to be

workshopped to the Council before

being adopted.

5. DASHBOARD REPORT

It was indicated that with regards to the accountability

agreements that were not signed by the PMU officials, the

Engineering Director should provide feedback on the next Audit

Committee meeting on the progress of signing the agreements.

ES Director

Implemented

n/a

6.

7.

DEVIATIONS

It was indicated that with regards to the deviations that are made

by Engineering Department that there should be one service

provider who will be dealing with the repairs.

It was indicated that Mr Gxaba – Technician is busy preparing

the specification for the bid advertisement.

ES Director

Implemented

n/a


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8.

Register of Internal Audit Findings and Follow-Up on

Internal Audit Reports

It was indicated that the Internal Audit section should sit with the

Corporate Services Department regarding the updates on the

Fleet Management report as many of the findings on the report

have been resolved.

Internal Audit

Implemented

n/a

9.

Progress on the Implementation of the MSCOA

It was indicated that due to the weaknesses identified to the

current Venus System, the municipality is considering changing

the system for the MSCOA implementation.

CFO

Implemented

n/a

10

11

REGISTER OF FRUITLESS AND WASTEFUL

EXPENDITURE

It was indicated that with regards to actions that should

be implemented by the Municipal Manager to individuals

incurring fruitless and wasteful expenditure that a

separate committee will be formed which will investigate

fruitless and wasteful expenditure.

It was indicated that the fruitless and wasteful

expenditure committee will be effective starting from 01

Municipal

Manager

Implemented

Implemented

n/a

n/a


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March 2017 and on the next Audit Committee meeting,

a report will be presented under Municipal Manager’s

report.

Municipal

Manager

12. REPAIRS AND MAINTANANCE

It was indicated that the matter with SPCA is being

resolved by the Community Services HOD. It was

indicated that on the next Audit Committee meeting a

presentation will be performed.

CMS

Director

Not Implemented

A SLA has been developed and

comments on the document are

being received from other

stakeholders.

13. RISK REGISTER – ENGINEERING SERVICES

It was suggested that the risks identified should be

packed until a resolution is taken regarding the yellow

plant.

ES

Director

Implemented

n/a

14.

15.

Progress on the Implementation of the MSCOA

It was indicated that a service provider is in the process

of being appointed for the installation of a new system

which will be MSCOA compliant.

CFO

CFO

Implemented

Implemented

n/a

n/a


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16.

It was indicated that a request for MSCOA training for

junior staff should be sent to National Treasury

timeously.

It was indicated that the Councillors need to be

familiarised with MSCOA by means of conducting a

workshop, so that they can get a clear understanding of

the purpose of MSCOA.

CFO Implemented n/a

17.

INTERNAL AUDIT PROGRESS – RBIA PLAN

It was indicated that with regards to the project of

assessment of readiness of the ICT Systems for

MSCOA, that the Internal Audit Manager should seat

with Mr Nokwe to discuss a way forward for the project

as the system is in the procurement stage.

IA

Manager

Implemented

n/a


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APPENDIX F: DISCLOSURES OF FINANCIAL INTERESTS

Disclosures of Financial Interests

Period 1 July 2016 to 30 June of Year 2017

Position Name Description of Financial interests* (Nil / Or details)

(Executive) Mayor Cllr P. Qaba Nil

Member of EXCO Cllr. Nongqayi Nil

Cllr. Busika Nil

Cllr. Mgxaso Nil

Cllr. Monti Nil

Cllr. Mlahleki Nil

Cllr. Balindlela Nil

Councillor

Municipal Manager B K Socikwa Nil

Chief Financial Officer J Ntshinga Nil

Deputy MM and (Executive) Directors S Vara Nil

B Ondala Nil

T Bacela Nil

M Quma Nil

S Yoko (Acting) Nil

Other S57 Officials

* Financial interests to be disclosed even if they incurred for only part of the year. See MBRR SA34A T J


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APPENDIX G: REVENUE COLLECTION PERFORMANCE BY VOTE

Revenue Collection Performance by Vote

R' 000

Vote Description

Year 2015/16 Current: Year 2016/17 Year 2016/17 Variance

Actual Original Budget

Adjusted Budget

Actual Original Budget Adjustments Budget

Vote 1 - Executive & Council 137 234

142 565

140 656

137 475 -4% -2%

Vote 2 - Budget & Treasury 17 696 1

876 1

958 1

818 -3% -8% Vote 3 - Corporate

Services 399

–

–

– 0% 0% Vote 4 - Planning &

Development 2 415 2

807 1

608 1

564 -79% -3%

Vote 5 - Health –

–

–

– 0% 0% Vote 6 - Community &

Social Services 1 858 2

127 1

893 1

719 -24% -10%

Vote 7 - Housing 221

464

409

245 -90% -67%

Vote 8 - Public Safety –

11

11

– #DIV/0! #DIV/0! Vote 9 - Sport &

Recreation –

1

–

– 0% 0% Vote 10 - Waste

Management 8 589 10

001 11

688 9

199 -9% -27%

Vote 11 - Road Transport 39 170 73

630 66

651 60

562 -22% -10%

Vote 12 - Electricity 33 707 39

407 44

555 36

380 -8% -22% Vote 13 - Environmental

Protection 231

405 3

403 3

140 87% -8%

Example 14 - Vote 14 – 0% 0%

Example 15 - Vote 15 - 0% 0%

Total Revenue by Vote 241 519 273 293 272 831 252 101 #DIV/0! #DIV/0!

Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A3 T K.1


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APPENDIX H: LONG TERM CONTRACTS

Long Term Contracts (20 Largest Contracts Entered into during Year 2016/17)

R' 000

Name of Service Provider (Entity or Municipal

Department)

Description of Services Rendered by the Service Provider

Start Date of Contract

Expiry date of Contract

Project manager Contract Value

None

T H.1

Public Private Partnerships Entered into during Year 2016/17

R' 000

Name and Description of Project

Name of Partner(s) Initiation Date Expiry date Project manager Value 2008/09

None

T H.2


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APPENDIX I: MUNICIPAL ENTITY

Municipal Entity/Service Provider Performance Schedule Name of Entity & Purpose

(a) Service Indicators

Year 0 Year 1 Year 2 Year 3

(b) Service Targets

Target Actual Target Actual Target

*Previous

Year

*Previous Year

*Current Year

*Current Year

*Current Year

*Following Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)

N/A

Note: This statement should include no more than the top four priority indicators. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets must be fundable within approved budget provision. In column (ii) set out the Service Indicator (In bold italics) then the Service Target underneath (not in bold - standard type face) to denote the difference. T I


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APPENDIX J: REVENUE COLLECTION PERFORMANCE BY SOURCE

Revenue Collection Performance by Source

R '000

Description

Year 2015/16 Year 2016/17 Year 2016/17 Variance


Adjustments Budget


Adjustments Budget

Property rates 15 841 17 600 15 882 14 013 -26% -13%

Property rates - penalties & collection charges

–

–

0% 0%

Service Charges - electricity revenue 33 683 34 407 39 435 32 852 -5% -20%

Service Charges - water revenue –

–

–

–

0% 0%

Service Charges - sanitation revenue –

–

–

–

0% 0%

Service Charges - refuse revenue 8 589 10 001 9 500 9 133 -10% -4%

Service Charges - other –

–

120

6

0% 0%

Rentals of facilities and equipment 1 002 1 159 951

621

-87% -53%

Interest earned - external investments 9 422 8 000 8 300 7 294 -10% -14%

Interest earned - outstanding debtors 2 175 2 799 2 500 2 301 -22% -9%

Dividends received –

–

–

–

0% 0%

Fines 239

82

51

53

-54% 5%

Licences and permits –

–

–

–

0% 0%

Agency services 3 219 3 769 3 850 2 832 -33% -36%

Transfers recognised - operational 131 522 125 374 126 362 123 692 -1% -2%

Other revenue 1 217 41 463 44 241 43 589 5% -1%

Gains on disposal of PPE –

–

–

0% 0%

Environmental Protection –

–

–

0% 0%

Total Revenue (excluding capital transfers and contributions)

206 907 244 654 251 191 236 386 -3.50% -6.26%

Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A4. T K.2

APPENDIX K: CONDITIONAL GRANTS EXCLUDING MIG

Conditional Grants: excluding MIG

R' 000

Details

Budget Adjustments Budget

Actual Variance Major conditions applied by donor (continue below if

necessary) Budget Adjustments

Budget

Neighbourhood Development Partnership Grant

Public Transport Infrastructure and Systems Grant

Other Specify:

FMG Grant 1 625 1 625 1 625 0% 0%

MSIG Grant – – – 0% 0%

EPWP Grant 1 062 1 062 1 062 0% 0%

Equitable Share 113 780 113 780 113 780 0% 0%

Other 6 507 6 507 5 200

Provincial

Library Grant 1 200 1 200 1 200 0% 0%

Waste Grant 1 200 2 188 825 0% -165%

Economic Survey – – – 0% 0%


211 | P a g e

Capacity of Municipality – – – 100% #DIV/0!

Staff Training – – – 100% #DIV/0!

Recycling Centre – – – 100% #DIV/0!

Vuna Awards - - - 100% #DIV/0!

Total 125 374 350.00 126 362 304.00 123 691 789.00

* This includes Neighbourhood Development Partnership Grant, Public Transport Infrastructure and Systems Grant and any other grant excluding Municipal Infrastructure Grant (MIG) which is dealt with in the main report, see T 5.8.3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Obtain a list of grants from national and provincial government.

T L


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APPENDIX L: CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME

Capital Expenditure - New Assets Programme*

R '000

Description Year 2016/17 Planned Capital expenditure

Original Budget Adjustment

Budget Actual

Expenditure FY + 2017/18 FY + 2018/19 FY + 2019/20

Capital expenditure by Asset Class

Infrastructure - Total 6 500 6 350 4 800 – – –

Infrastructure: Road transport - Total – – – – – –

Roads, Pavements & Bridges

Storm water

Infrastructure: Electricity - Total 6 500 6 350 4 800 – – –

Generation

Transmission & Reticulation 6 500 6 350 4 800

Street Lighting

Infrastructure: Water - Total – – – – – –

Dams & Reservoirs

Water purification

Reticulation

Infrastructure: Sanitation - Total – – – – –

Reticulation


Infrastructure: Other - Total – – – – –

Waste Management

Transportation


213 | P a g e

Gas

Other

Community - Total – – – – – –

Parks & gardens

Sportsfields & stadia

Swimming pools

Community halls

Libraries

Recreational facilities

Fire, safety & emergency

Security and policing

Buses

Clinics

Museums & Art Galleries

Cemeteries

Social rental housing

Other

Table continued next page


214 | P a g e

Table continued from previous page

Capital Expenditure - New Assets Programme*

R '000

Description Year 2016/17 Planned Capital expenditure


Budget Actual



Heritage assets - Total – – – – –

Buildings

Other

Investment properties - Total – – – – –

Housing development

Other

Other assets 5 790 9 621 8 549 – – –

General vehicles 2 500 6 112 5 468

Specialised vehicles – –

Plant & equipment

Computers - hardware/equipment

Furniture and other office equipment 335 124 139

Abattoirs

Markets

Civic Land and Buildings

Other Buildings

Other Land 2 000 1 731 1 518 Surplus Assets - (Investment or

Inventory)

Other 955 1 653 1 424


215 | P a g e

– –

Agricultural assets – – – – –

List sub-class

Biological assets – – – – –

List sub-class

Intangibles 200 184 48 – – –

Computers - software & programming 200 184 48

Other (list sub-class)

Total Capital Expenditure on new assets 12 490 16 154 13 397 – – –

Specialised vehicles 2 500 5 244 4 600 – – –

Refuse 2 500 5 244 4 600 – – –

Fire

Conservancy

Ambulances

* Note: Information for this table may be sourced from MBRR (2009: Table SA34a) T M.1


216 | P a g e

Capital Expenditure - Upgrade/Renewal Programme*

R '000

Description

Year 2016/17 Planned Capital expenditure


Budget Actual



Infrastructure - Total 28 640 21 640 22 121 32 145 31 534 39 999

Infrastructure: Road transport -Total 18 520 20 620 18 777 15 645 28 534 29 999

Roads, Pavements & Bridges 18 520 20 620 18 777 15 645 28 534 29 999

Storm water

Infrastructure: Electricity - Total 2 000 250 2 432 9 200 3 000 10 000

Generation – – – – –

Transmission & Reticulation – – 9 200 3 000 10 000

Street Lighting 2 000 250 2 432 – – –

Infrastructure: Water - Total – – – – – –

Dams & Reservoirs

Water purification

Reticulation

Infrastructure: Sanitation - Total – – – – –

Reticulation


Infrastructure: Other - Total – – – – – –

Waste Management

Transportation

Gas

Other

Community 8 120 770 912 7 300 – –


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Parks & gardens

Sportsfields & stadia – – – – – –

Swimming pools – – – – – –

Community halls – – – – – –

Libraries – – – – – –

Recreational facilities 4 522 152 693 4 800 – –

Fire, safety & emergency 3 598 498 219 2 500 – –

Security and policing – – – – – –

Buses – – – – – –

Clinics – – – – – –

Museums & Art Galleries – – – – – –

Cemeteries – – – – – –

Social rental housing – – – – – –

Other – – – – – –

– 120 –

Heritage assets – – – – – –

Buildings

Other

Table continued next page

Table continued from previous page

Capital Expenditure - Upgrade/Renewal Programme*

R '000

Description

Year 2016/17 Planned Capital expenditure


Budget Actual



Investment properties – – – – – –

Housing development

Other


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Other assets – – – – – –

General vehicles

Specialised vehicles

Plant & equipment

Computers - hardware/equipment

Furniture and other office equipment

Abattoirs

Markets

Civic Land and Buildings

Other Buildings

Other Land Surplus Assets - (Investment or

Inventory)

Other – – –

Agricultural assets – – – – – –

List sub-class

Biological assets – – – – – –

List sub-class

Intangibles – – – – – –

Computers - software & programming

Other (list sub-class)


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Total Capital Expenditure on renewal of existing assets 36 759 22 409 23 033 39 445 31 534 39 999

Specialised vehicles – – – – –

Refuse

Fire

Conservancy

Ambulances

* Note: Information for this table may be sourced from MBRR (2009: Table SA34b) T M.2

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APPENDIX M: CAPITAL PROGRAMME

Capital Programme by Project: Year 2016/17

R' 000

Capital Project Original Budget Adjustment Budget Actual Variance (Act - Adj) %

Variance (Act - OB) %

Executive & Council

Furniture & Equipment 80 62 62 0% -28%

Other Assets 1 000 868 868

"Project C"

Budget & Treasury


Other Assets 350 – – #DIV/0! #DIV/0!

Corporate Services


Other Assets 500 600 477 0% 100%

Planning & Development

Other Assets 105 393 407 3% 74%

MIG Projects 28 640 21 640 22 121 2% -29%

Community & Social Services

Other Assets 42 2 – #DIV/0! #DIV/0!

Housing

Furniture & Equipment 10 – – #DIV/0! #DIV/0!

Other Assets 200 184 48 -282% -316%

Public Safety

Furniture & Equipment – – – #DIV/0! #DIV/0!

Sports & Recreation - Parks & Gardens

Other Assets 5 5 5 -10% -10%

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Refuse

Other Assets 2 501 5 245 4 600 -0.14 46%

Road Transport

Other Assets 1 020 1 731 1 518 -14% 33%

Electricity

H/V Line Replacement – – #DIV/0! #DIV/0!

New Connections - Electricity 1 500 1 350 29 -4536% -5052%

Upgrade 11KV Cable 5 000 5 000 4 771 -5% -5%

Eskom Bulk Supply – – #DIV/0! #DIV/0!

Other Assets 6 661 556 -19% 99%

Environmental Protection

Other Assets 1 1 0 -226% -226%

41 130 37 794 35 516

V


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APPENDIX N: DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY

Declaration of Loans and Grants made by the municipality: Year 2016/17

All Organisation or Person in receipt of Loans */Grants* provided by the municipality

Nature of project

Conditions attached to funding

Value Year 0 R' 000

Total Amount committed over previous and future years

None

* Loans/Grants - whether in cash or in kind T R


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ANNEXURE O: COGTA KEY PERFORMANCE INDICATORS

RE: REQUEST FOR THE CONSIDERATION OF KEY PERFORMANCE INDICATORS

IN THE ANNUAL REPORT FOR 2015/16 FINANCIAL YEAR

SECTION 46 Report Indicators

The following is the list of indicators that were agreed upon and on how the performance information should be

populated:-

CHAPTER: ORGANISATIONAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT –KPA 1

Annual performance as per key performance indicators in municipal transformation and organizational

development

Indicator name Total

number of

people

(planned

for) during

the year

under

review

Achievement

level during

the year

under review

Achievement

percentage

during the year

Comments on

the gap

1 Vacancy rate for all

approved and budgeted

posts;

51 33 The position was

advertised and

we waited for the

go ahead from

the office of the

speaker

2 Percentage of appointment

in strategic positions

(Municipal Manager and

Section 57 Managers)

2 2

3 Percentage of Section 57

Managers including

Municipal Managers who

attended at least 1 skill

development training

course within the FY

1 1

4 Percentage of Managers in

Technical Services with a

professional qualification

1 1


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Indicator name Total

number of

people

(planned

for) during

the year

under

review

Achievement

level during

the year

under review

Achievement

percentage

during the year

Comments on

the gap

5 Level of PMS

effectiveness in the DM –

(DM to report)

THE INFORMATION SHOULD BE REFLECTED IN A NARRATIVE

FORM

6 Level of effectiveness of

PMS in the LM – (LM to

report)

7 Percentage of staff that

have undergone a skills

audit (including

competency profiles)

within the current 5 year

term

64 46

8 Percentage of councillors

who attended a skill

development training

within the current 5 year

term

22 22

9 Percentage of staff

complement with disability

1 1

10 Percentage of female

employees

109 109

11 Percentage of employees

that are

aged 35 or younger

141 141

12 Adoption and

implementation of a

District Wide/ Local

Performance Management

System


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CHAPTER: BASIC SERVICE DELIVERY PERFORMANCE HIGHLIGHTS (KPA 2)

Annual performance as per key performance indicators in Electricity services

Indicator

name

Total number of

household/customer

expected to benefit

Total House

Holds=34159

Estimated

backlogs

(actual

numbers)

Target

set for

the f.

year

under

review

(actual

numbers)

Number of

HH/customer

reached

during the

FY

Percentage

of

achievement

during the

year

1 Percentage

of

households

with access

to electricity

services

33425 2%=684 8%=3416 0 0

2 Percentage

of indigent

households

with access

to basic

electricity

services

8034 34%=11381 - 0 0

3 Percentage

of indigent

households

with access

to free

alternative

energy

sources

0 0 0 n/a n/a


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Annual performance as per key performance indicators in road maintenance services

Indicator

name

Total number of

household/customer

expected to benefit

Estimated

backlogs

(actual

numbers)

Target

set for

the f. year

under

review

(Actual

numbers)

Number of

HH/customer

reached

during the

FY

Percentage

of

achievement

during the

year

1 Percentage of

households

without access

to gravel or

graded roads

14000 1265 275 260 95

2 Percentage of

road

infrastructure

requiring

upgrade

13000 12400 650 600 92

3 Percentage of

planned new

road

infrastructure

actually

constructed

250 2540 220 200 91

4 Percentage of

capital budget

reserved for

road upgrading

and

maintenance

effectively

used.

800 450 500 400 80


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Annual performance as per key performance indicators in waste management services

Indicator

name

Total number of

household/custome

r expected to

benefit

Estimate

d

backlogs

(actual

numbers)

Targe

t set

for

the f.

year

under

revie

w

Number of

HH/custome

r reached

Percentage

of

achievemen

t during the

year

Percentag

e of

household

s with

access to

refuse

removal

services

34 000

households

27 475 House Holds 7000

House

Holds

Targeted

6525

House

Holds

93,21% in

the

Amahlathi

Municipality

Percentage

of

households

with access

to refuse

removal

services

2 Existence of

waste

managemen

t plan

Integrated Waste Management Plan has been adopted by Council and it is

operational at the Amahlathi Municipality.

Annual performance as per key performance indicators in housing and town planning services

Indicator

name

Total number of

household/customer

expected to benefit

Estimated

backlogs

(Actual

numbers)

Target

set for

the f.

year

under

review

Number of

HH/customer

reached

Percentage

of

achievement

during the

year

1 Percentage of

households

living in

informal

settlements

4,4% 1527 N/A N/A 0%

2 Percentage of

informal

settlements

that have been

provided with

basic services

N/A N/A N/A N/A N/A

3 Percentage of

households in

57% 19950 N/A N/A N/A


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formal housing

that conforms

to the minimum

building

standards for

residential

houses

4 Existence of an

effective

indigent policy

There is Indigent policy that has been adopted and it is reviewed annually.

5 Existence of an

approved SDF

There is an approved Amahlathi Municipality Spatial Development Framework

(2012) which is valid up until 2015/2016 FY. It is planned that the SDF must be

reviewed the following financial year (2017/18).

6 Existence of

Land Use

Management

System

(LUMS)

A Land Use Survey (determination of land uses within Amahlathi Local

Municipality), informed by Land Use Ordinance of 15 1985 was conducted in

August 2012 and Zoning Maps were created. However a completed Zoning

Scheme to regulate land development/ to control land use rights was not

finalised, due to the fact that the Municipality was awaiting on the

Implementation of Spatial Planning and Land Use Management Act No 13 of

2013. It is suggested that an Integrated Zoning Scheme for all towns (in line with

SPLUMA) must be developed in the year 2017/18.

CHAPTER: MUNICIPAL LOCAL ECONOMIC DEVELOPMENT FRAMEWORK- (KPA 3)

Annual performance as per key performance indicators in LED

Indicator name Target set

for the year

Achievement

level during

the year

(absolute

figure)

Achievement

percentage

during the

year

1 Existence of LED unit None

- No new

recruitments

0%

2 Percentage of LED

Budget spent on LED

related activities.

100% 100% 100%

3 Existence of LED strategy LED strategy was adopted by Council in 2012

4 Number of LED

stakeholder forum

meetings held

-4

Community

Tourism

Organisation

and Local

Tourism

Organisation

meetings

-11 Community

Tourism

Organisation

and Local

Tourism

Organisation

meetings held.

100%


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Indicator name Target set

for the year

Achievement

level during

the year

(absolute

figure)

Achievement

percentage

during the

year

-4 LED

Forum

Meeting

-4

Agricultural

Forum

Meeting

-8 LED related

Forum meetings

held.

-9 Agricultural

Forum meetings

held.

5 Plans to stimulate second

economy

n/a n/a n/a

6 Percentage of SMME that

have benefited from a

SMME support program

-Training of 5

Contractors

-Training of

10

Cooperatives

Registration of

Timber

Cooperatives

-Training of 8

Contractors

-Training of 12

Cooperatives

100%

7 Number of job

opportunities created

through EPWP

60 people to

be employed

by 30 June

2016

506 people

were employed

under EPWP

Programme

100%

8 Number of job

opportunities created

through PPP

n/a n/a n/a

CHAPTER: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT (KPA 4)

Annual performance as per key performance indicators in financial viability

Indicator name Target set for the

year R(000)

Achievement

level during

the year R(000)

Achievement

percentage during the

year

1 Percentage expenditure of

capital budget

R 37 794 023 R 34 942

606

92%

2 Target set for

the year (35%)

R(000)

Achievement

level during

the year

R(000)

Achievement


year vs the operational

budget


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3 Salary budget as a

percentage of the total

operational budget

(Including Councillor

Allowances)

R103 752 357 R 111 505

314

107%

4 Target set for

the year (20%

or less) R(000)

Achievement

level during

the year

R(000)

Achievement


year vs the actual

revenue

5 Trade creditors as a

percentage of total actual

revenue

5.1

6.6

129%

6 Target set for

the year (80%

and more)

R(000)

Achievement

level during

the year

R(000)

Achievement


year

7 Total municipal own

revenue as a percentage

of the total actual budget

R272 831 139

R213 841

323

78%

8 Target set for

the year

R(000)

Achievement

level during

the year

R(000)

Achievement


year

9 Rate of municipal

consumer debt reduction

5 000 000 7 797 839 156%

10 Percentage of MIG budget

appropriately spent

R21 639 650 R21 639 650 100%

11 Percentage of MSIG

budget appropriately spent

R 0 R 0 0%

12 AG Audit opinion

Unqualified Pending

13 Functionality of the Audit

Committee

4 meetings 4 meetings 100%

14 Submission of AFS after

the end of financial year

31 August 31 August 100%

CHAPTER: GOOD GOVERNANCE AND PUBLIC PARTICIPATION- (KPA 5)

No Indicator name

Target set for the

year

Achievement level

during the year

(absolute figure)

Achievement percentage

during the year

1 % war room 12 meetings 12 100%

3 Existence of an effective system to monitor CDWs

Currently there is no tool to motor CDWs. Only assisting them administratively (i.e. venue and communicating their meetings to relevant stakeholders)


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No Indicator name

Target set for the

year

Achievement level

during the year

(absolute figure)

Achievement percentage

during the year

5 Effective of IGR structural meetings

Amahlathi Political IGR forum meetings sit on a quarterly basis and are led by the Honourable Mayor. All the Executive Committee members of the Council also form part of the forum as required by the terms of reference of the committee. The IGR is currently coordinated in the Office of the MM and is attached to the Office Administrator.

6 Existence of an effective communication strategy

Communication Strategy adopted by council February 2015, and it is reviewed on an annually basis by reviewing the Communication Action Plan

6 Existence of an effective communication strategy

Communication Strategy adopted by council February 2015, and it is reviewed on an annually basis by reviewing the Communication Action Plan

7 Number of mayoral imbizos conducted

2 2 100%

8 Existence of a fraud prevention mechanism

The Internal Audit Unit is conducting Fraud Awareness Campaigns within the municipality on quarterly basis and those awareness programs are included on the Approved Risk Based Internal Audit Plan for 2015/16 financial year. Employees are workshopped on what constitutes Fraud and what they should do when they suspect that fraud is happening within the municipality. The Internal Audit Unit has also developed Fraud Prevention Plan and Whistle-blowing policy for protection of the Whistle blowers. Policy was submitted to the Council and was adopted in April 2015.


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VOLUME II: UNAUDITED ANNUAL FINANCIAL STATEMENT