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LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CONTENTS 2

CONTENTS

CONTENTS .......................................................................................................................................................... 2

THE ANNUAL REPORT ..................................................................................................................................... 6

CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY .................................................... 7

COMPONENT A: MAYOR’S FOREWORD ................................................................................................. 7

COMPONENT B: EXECUTIVE SUMMARY ................................................................................................ 8

1.1. MUNICIPAL MANAGER’S OVERVIEW .......................................................................................... 8

1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW .................. 9

1.3. SERVICE DELIVERY OVERVIEW ................................................................................................ 12

1.4. FINANCIAL HEALTH OVERVIEW ................................................................................................. 13

1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW .................................................................... 16

1.6. AUDITOR GENERAL REPORT ..................................................................................................... 16

1.7. STATUTORY ANNUAL REPORT PROCESS ............................................................................. 17

CHAPTER 2 – GOVERNANCE ....................................................................................................................... 19

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ........................................... 19

2.1 POLITICAL GOVERNANCE ........................................................................................................... 19

2.2 ADMINISTRATIVE GOVERNANCE .............................................................................................. 22

COMPONENT B: INTERGOVERNMENTAL RELATIONS ..................................................................... 24

2.3 INTERGOVERNMENTAL RELATIONS ........................................................................................ 24

COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ............................................... 27

2.4 PUBLIC MEETINGS ......................................................................................................................... 27

2.5 IDP PARTICIPATION AND ALIGNMENT ..................................................................................... 29

COMPONENT D: CORPORATE GOVERNANCE ................................................................................... 29

2.6 RISK MANAGEMENT ...................................................................................................................... 29

2.7 ANTI-CORRUPTION AND FRAUD ................................................................................................ 31

2.8 SUPPLY CHAIN MANAGEMENT .................................................................................................. 32

2.9 BY-LAWS ........................................................................................................................................... 32

2.10 WEBSITES ........................................................................................................................................ 33


2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES .............................................................. 33

CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) ........... 35

COMPONENT A: BASIC SERVICES ......................................................................................................... 35

3.1. WATER PROVISION ....................................................................................................................... 36

3.2 WASTE WATER (SANITATION) PROVISION ............................................................................. 41

3.3 ELECTRICITY ................................................................................................................................... 47

3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS,

WASTE DISPOSAL, STREET CLEANING AND RECYCLING) ........................................................ 52

3.5 HOUSING .......................................................................................................................................... 57

3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT .............................................................. 62

COMPONENT B: ROAD TRANSPORT ..................................................................................................... 64

3.7 ROADS ............................................................................................................................................... 64

3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION) ............. 68

3.9 WASTE WATER (STORMWATER DRAINAGE) ......................................................................... 71

COMPONENT C: PLANNING AND DEVELOPMENT ............................................................................. 73

3.10 PLANNING ......................................................................................................................................... 74

3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES) . 77

COMPONENT D: COMMUNITY & SOCIAL SERVICES ......................................................................... 81

3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER

(THEATRES, ZOOS, ETC) ...................................................................................................................... 81

3.13 CEMETORIES AND CREMATORIUMS ....................................................................................... 84

3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES ............................................................ 86

COMPONENT E: ENVIRONMENTAL PROTECTION ............................................................................. 86

3.15 POLLUTION CONTROL .................................................................................................................. 86

3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL

PROTECTION) .......................................................................................................................................... 87

COMPONENT F: HEALTH ........................................................................................................................... 88

3.17 CLINICS ............................................................................................................................................. 88

3.18 AMBULANCE SERVICES ............................................................................................................... 89

3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC ... 89

COMPONENT G: SECURITY AND SAFETY............................................................................................ 90


3.20 TRAFFIC LAW ENFORCEMENT ................................................................................................... 90

3.21 FIRE .................................................................................................................................................... 95

3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL

OF PUBLIC NUISANCES AND OTHER) ............................................................................................... 98

COMPONENT H: SPORT AND RECREATION...................................................................................... 100

3.23 SPORT AND RECREATION ......................................................................................................... 101

COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES ................................. 103

3.24 EXECUTIVE AND COUNCIL ........................................................................................................ 103

3.25 FINANCIAL SERVICES ................................................................................................................. 106

3.26 HUMAN RESOURCE SERVICES................................................................................................ 109

3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES ...................... 113

3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES .............. 115

COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD ............................................. 117

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE ............................................... 124

(PERFORMANCE REPORT PART II) .......................................................................................................... 124

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL .......................................... 124

4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES........................................................... 124

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE ....................................................... 127

4.2 POLICIES ......................................................................................................................................... 128

4.3 INJURIES, SICKNESS AND SUSPENSIONS ........................................................................... 129

4.4 PERFORMANCE REWARDS ....................................................................................................... 132

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ............................................... 133

4.5 SKILLS DEVELOPMENT AND TRAINING ................................................................................. 134

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE................................................. 136

4.6 EMPLOYEE EXPENDITURE ........................................................................................................ 136

CHAPTER 5 – FINANCIAL PERFORMANCE ............................................................................................ 138

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE ................................................. 138

5.1 STATEMENTS OF FINANCIAL PERFORMANCE .................................................................... 140

5.2 GRANTS .......................................................................................................................................... 143

5.3 ASSET MANAGEMENT ................................................................................................................ 145


5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS .............................. 148

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET.............................................................. 152

5.5 CAPITAL EXPENDITURE ............................................................................................................. 153

5.6 SOURCES OF FINANCE .............................................................................................................. 153

5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS ................................................................ 154

5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW ............................. 155

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS ............................................ 156

5.9 CASH FLOW ................................................................................................................................... 157

5.10 BORROWING AND INVESTMENTS ........................................................................................... 158

5.11 PUBLIC PRIVATE PARTNERSHIPS .......................................................................................... 162

COMPONENT D: OTHER FINANCIAL MATTERS ................................................................................ 163

5.12 SUPPLY CHAIN MANAGEMENT ................................................................................................ 163

5.13 GRAP COMPLIANCE .................................................................................................................... 164

CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS .......................................................................... 165

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS Year -1 .......... 166

6.1 AUDITOR GENERAL REPORT: 2012/2013 FINANCIAL year .................................................. 166

COMPONENT B: AUDITOR-GENERAL OPINION YEAR 2013/2014 ............................................... 167

6.2 AUDITOR GENERAL REPORT: 2013/2014 FINANCIAL YEAR ............................................... 167

GLOSSARY ...................................................................................................................................................... 169

APPENDICES .................................................................................................................................................. 172

APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE .. 172

APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES........................................................ 175

APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE .......................................................... 178

APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY ............................................................... 179

APPENDIX E – WARD REPORTING ....................................................................................................... 180

APPENDIX F – WARD INFORMATION ................................................................................................... 181

VOLUME II: ANNUAL FINANCIAL STATEMENTS ................................................................................ 183

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | THE ANNUAL REPORT 6

THE ANNUAL REPORT

The purpose of this Annual Report is to provide for improved content and quality of Municipal Annual

Reports, which gives effect to the legal framework requirement, concepts and principals espoused in

the White Paper on Local Government towards improving local government performance. It reflects

the ethos of public accountability. The content gives effect to information required for better monitoring

and evaluation of government programmes in support of policy decision making. This document

provides an overview of municipal affairs by combining the annual performance report data required in

terms of section 46 of the Municipal Systems Act Section 46 with annual report data referred to in both

the Municipal Systems Act (MSA) and in the Municipal Finance Management Act (MFMA).

This Annual Report makes its contribution by attempting to forge linkages between the Integrated

Development Plan (IDP), Service Delivery and Budget Implementation Plan (SDBIP), Budget Reform

Regulations, In-year Reports, Annual Financial Statements and Performance Management information

of a municipality. This coverage and coherence is achieved by the use of interlocking processes and

formats.

The revised template relates to the Medium Term Strategic Framework particularly through the IDP

strategic objectives; the cross cutting nature of services offered by different spheres of government,

municipal service outcome indicators; and the contextual material as set out in Chapters 3, 4 & 5. It

also provides information on good management practices in Chapter 4; risk management in Chapter 2;

and Supply Chain Management in Chapter 5. It also addresses the Auditor-General’s Report, dealing

with Financial and Performance Management arrangements in Chapter 6. This opens up greater

possibilities for financial and non-financial comparisons between municipalities and improved value for

money.

This document must provide information on probity, including: anti-corruption strategies; disclosure of

financial interests by officials and councillors; disclosure of grants by external parties, disclosure of

loans and grants by municipalities. The appendices provide more detail including disaggregated

information on municipal wards, and capital projects per ward among others.

The financial years contained in this template are explained as follows:

Year -1: The previous financial year: 2012/2013

Year 0: The financial year of reporting: 2013/2014

Year 1: The following year, mostly requires future targets: 2014/2015

CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

COMPONENT A: MAYOR’S FOREWORD

MAYOR’S FOREWORD

a. Vision:

A succinct narrative on the direction of travel, key strategic objectives and the major changes that are

being addressed. This is the most important single statement in the Annual Report.

b. Key Policy Developments:

This is based on Strategic alignment to the Provincial Growth and Development Strategy, and the IDP

strategies included in the IDP especially with focus on impact and outcome achieved – bearing in mind

that foreword provides details that should be included in the chapters to follow.

c. Key Service Delivery Improvements:

Comment on the major successes of the year included and provide an indication of challenges

overcome.

d. Public Participation:

Methods and/or processes used to increase public awareness on service availability engage public in

decision making and improve accountability to communities.

e. Future Actions:

Initiatives committed whereby service delivery will be improved over the next few years.

f. Agreements / Partnerships: Announcements on special partnerships initiated.

g. Conclusion: Final thoughts on the year.

(Signed by :) __________________________

Mayor/Executive Mayor

Delete Directive note once comment is completed – The Mayor may wish to make brief mention of

initiatives attempted that were not entirely successful in the interests of accountability and forming a

closer, trusting relationship with the community.

T 1.0.1

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

8

COMPONENT B: EXECUTIVE SUMMARY

1.1. MUNICIPAL MANAGER’S OVERVIEW

MUNICIPAL MANAGER’S OVERVIEW

Another financial year has come to an end and it is once again time to take stock of the year that was

and reflect on our achievements, shortcomings and challenges. The year under review was indeed a

very challenging year, especially in the areas of the continuous provision of basic services such as

water, sanitation and electricity. We are faced with the harsh reality that the existing infrastructure for

water, sanitation and electricity has aged beyond its reasonable lifespan and in the absence of

continuous maintenance, upgrades and refurbishment over the past few years, these services has

now reached a critical mass stage that has led to the provision of services in some areas having been

rather erratic at times.

This Annual Report confirms that the Municipality has made progress in basic service delivery, rolling

out and expanding the provision of water, sanitation, electricity and housing to local communities but

much more still needs to be done.

In respect of the Municipality’s IDP indicators and Council priorities, the reality is that we must

continue to strive towards constantly improving. It is to this end that the annual review of our IDP

must speak more to the Council priorities based on the mandate given by the electorate in order to

find better alignment of services to IDP indicators with Council priorities. Efforts to ensure that the

Municipality’s IDP and Budget speak to one another is ongoing, however must be acknowledged that

this area needs further focus and refinement which will be addressed as an ongoing matter of priority

to constantly improve on this as well as to also further improve alignment with the SDBIP.

Service delivery performance must constantly be improved upon and with the gradual implementation

and strengthening of performance management within the Municipality, it will always be important to

that performance is regularly reported on to further improve the quality of service delivery.

The long term financial sustainability of the Municipality, as represented by the financial health ratios

is a clear indication that much work is required to turn the current financial situation around.

Eskom, in partnership with the Municipality has stepped up efforts to ensure there is more awareness

around conserving especially electricity to compliment the conservation measures residents are being

requested to adopt in their own housekeeping. This was done through both media and community

radio station campaigns.

The Municipality uses service providers to provide certain contracted services but currently does not

have any public-private partnerships currently running.

Finally, I would like to record my sincere appreciation for the polictical support given to the


9

administration as well as the efforts and hard work of the staff of the Lekwa Local Municipality, without

which the service delivery progress reported in this Annual Report would not have been possible.

Their commitment and dedication, in the face of constraints and challenges, to serving the

communities Lekwa is commendable.

L B TSHABALALA

MUNICIPAL MANAGER

T 1.1.1

1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

INTRODUCTION TO BACKGROUND DATA

The data contained in this section was taken from the 2011 Census figures of StatsSA figures. This

has become crucial baseline information to assist the future planning by the Municipality. In addition

Lekwa data, obtained from the Mpumalanga Department of Finance also provides a profile on some

the very key socio-economic factors for the Municipality which highlights a number of key

characteristics and implications for the Municipality.

Wherever possible, comparative data has been provided in respect of contributions made by the

Municipality towards satisfying the basic requirements for water, sanitation, electricity, solid waste

removal, housing, local economic development, roads and storm water and town planning.

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10

Population Details

Population '000

Age 1996 2001 2011

Male Female Total Male Female Total Male Female Total

Age: 0 - 4 4,291 4,484 8,775 5,267 5,396 10,663 6,003 5,985 11,988

Age: 5 - 9 4,919 4,783 9,702 5,361 5,451 10,812 5,275 5,270 10,545

Age: 10 - 14 5,061 5,091 10,152 5,961 5,700 11,661 5,329 5,169 10,498

Age: 15 - 19 4,743 4,738 9,481 5,775 5,921 11,696 5,549 5,524 11,073

Age: 20 - 24 4,389 4,499 8,888 4,489 4,652 9,141 6,227 5,374 11,601

Age: 25 - 29 4,006 4,001 8,007 4,495 4,562 9,057 5,531 5,296 10,827

Age:30 - 34 3,652 3,666 7,318 3,856 3,960 7,816 4,436 4,184 8,620

Age: 35 - 39 3,271 3,074 6,345 3,453 3,714 7,167 3,879 3,902 7,781

Age: 40 - 44 2,466 2,498 4,964 3,213 3,187 6,400 3,343 3,432 6,775

Age: 45 - 49 2,015 1,901 3,916 2,464 2,505 4,969 2,961 3,439 6,400

Age: 50 - 54 1,545 1,543 3,088 2,018 1,977 3,995 2,669 2,915 5,584

Age: 55 - 59 1,184 1,289 2,473 1,417 1,548 2,965 2,315 2,233 4,548

Age: 60 - 64 798 1,057 1,855 1,118 1,384 2,502 1,497 1,743 3,240

Age: 65 - 69 688 868 1,556 627 959 1,586 988 1,246 2,234

Age: 70 - 74 422 510 932 526 764 1,290 627 977 1,604

Age: 75 - 79 327 406 733 278 412 690 335 605 940

Age: 80 - 84 134 232 366 189 325 514 229 373 602

Age: 85+ 91 172 263 119 220 339 156 252 408

TOTAL 44,002 44,812 88,814 50,626 52,637 103,263 57,349 57,919 115,268

Source: Statistics SA T 1.2.2

Demographic Data

Group 2011

Male %

Male Female

%

Female Total %

Black 48,375 50 48,988 50 97,363 85

Coloured 1,592 48 1,712 52 3,304 3

White 6,649 50 6,564 50 13,212 11

Indian/Asian 736 53 660 47 1,395 1

TOTALS

57,352

57,924

115,274

100


11

Year Total

Population

Total Households Average

Household

Income

Unemployment

Rate

No formal

schooling

2012 117833 26685 42000 13828 8195

2013 (Stats SA) 115268 31071 88440 11895 7835

Socio Economic Status

T 1.2.4

A notable change in HIV prevalence rate within Lekwa has been noted, with a decrease in reported

prevalence from 50% in 2010 to 32.5% in 2011. (Gert Sibande 2012/2013 Annual Report)

T 1.2.5

Natural Resources

Major Natural Resource Relevance to Community

Grootdraai Dam 10th largest dam in South Africa. Can contribute significantly to tourism development which can create job opportunities

Municipal and state-owned land Land availability for economic development

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1.3. SERVICE DELIVERY OVERVIEW

SERVICE DELIVERY INTRODUCTION

Basic service delivery within the Municipal area of jurisdiction may seem to have declined, but this is

attributable to the increase in informal settlements through the illegal invasion of land, especially in

areas where informal settlements were previously relocated. This has created a challenge in that such

areas are not adequately serviced. Some of these areas are also not suitable for permanent human

settlement. Areas that are suitable will be upgraded using National Upgrade Support Programme,

which is further elaborated on in Chapter 3. The Municipality has been able to service all formally

established and proclaimed areas with the basic minimum services.

It must be noted that the more recent figures has been obtained from the Mpumalanga Department of

Finance.

T 1.3.1

T 1.3.2


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COMMENT ON ACCESS TO BASIC SERVICES:

The 2013/2014 financial year has seen the Municipality facing a number of service delivery challenges,

especially as it relates to the uninterrupted provision of water and electricity in some areas. This

challenge was mainly caused due to aging infrastructure and insufficient spending on repairs and

maintenance of such bulk infrastructure.

T 1.3.3

1.4. FINANCIAL HEALTH OVERVIEW

FINANCIAL OVERVIEW

The total actual revenue for the 2013/14 financial year amounted to R485, 465 million. This represents

a growth of 11.05% when compared to the 2012/13 actual revenue of R437, 164 million. The actual

expenditure amounted to R614.201 million which saw a decline in expenditure incurred of 4.18% when

compared to the actual expenditure for 2012/13 of R 641, 004 million.

Actual revenue excluding capital transfers for the 2013/14 financial year amounted to R422, 798

million that, compared to the 2012/13 period of R403, 459 million, represents a growth of 4.79%.

The operating deficit has decreased by 36.84% from R 203, 841 million in the 2012/13 financial year to

R 128, 736million in the 2013/14 financial year period.

The Municipality, to a large extent finances its operations from service charges and taxations levied on

properties. Service charges and property rates contributes 58.35% of the total revenue mix while

grants and subsidies contributes 34.89% and other revenues make up the balance of 6.76%.

The main sources of revenue for the 2013/14 were as follows:

Electricity R180, 418 million

Assessment Rates R 37, 546 million

Water R 32, 363 million

Sanitation R 23, 004 million

Refuse R 9,932 million

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Financial Overview: 2013/2014 R'

Details Original budget Adjustment Budget Actual

Income:

Grants 86 670 000 86 425 000 84 167 016

Taxes, Levies and tariffs 329 584 000 312 343 000 283 262 163

Other 40 837 000 11 388 000 37 622 207

Sub Total 457 091 000 436 065 000 431 171 953

Less: Expenditure 614 440 000 634 252 000 614 201 385

Net Total Deficit (157 348 000) (198 187 000) (197 092 512)

* Note: surplus/(deficit) T 1.4.2

Operating Ratios 2013/2014

Detail %

Employee Cost 19.86%

Repairs & Maintenance 2.94%

Finance Charges & Impairment 11.32%

T 1.4.3

COMMENT ON FINANCIAL RATIOS

Employee cost to total operating expenditure measures the total employment cost to total

operating expenditure and the norm is between 25% - 40%. Lekwa Local Municipality measures at

19.86% and although within the acceptable norm, it is on the increase and if not monitored, it will

approach the upper end of the norm.

Repairs and Maintenance as a % of Property, Plant and Equipment and Investment Property

(Carrying Value). The ratio measures the level of repairs and maintenance to ensure adequate

maintenance to prevent breakdowns and interruptions to service delivery. Repairs and maintenance of

municipal assets is required to ensure the continued provision of services. The ratio for Lekwa Local

Municipality is 2.94% compared to the norm of 8%. This ratio is below the norm of 8% and is a

reflection that insufficient funds are being spent on repairs and maintenance to the extent that it could

increase impairment of useful assets.

Finance Charges & Impairment. The ratio for Lekwa Local Municipality is 11.32% and is indicative of

the rate at which assets are utilized in service delivery. Given the cash flow problems experienced by

the Municipality no additional cost would be financially viable.

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15

Total Capital Expenditure: Year -2 to Year 0

R'000

Detail 2011/12 2012/13 2013/14

Original Budget 40 639 47 523 43 308

Adjustment Budget 47 774 58 139 67 519

Actual 37 158 35 448 62 667

% of Budget Spent 77.78 % 60.97% 92.81%

T 1.4.4

TOTAL CAPITAL EXPENDITURE

0

10000

20000

30000

40000

50000

60000

70000

2011-2012 2012-2013 2013-2014

Original Budget

Adjustment Budget

Actual

T 1.4.5

COMMENT ON CAPITAL EXPENDITURE:

The Capital Budget increased over the past three years from R 40, 639 million in the 2011/2012

financial year to R 43, 308 million in the 2013/14 financial year.

On the conditional grants, requests for rollovers during the three financial years were submitted and

granted as indicated on the Capital Budget Adjustment.

The overall expenditure on Capex increased from R 37, 158 million in the 2012/2013 financial year to

R 62, 667 million in the 2013/2014 financial year. This represented a growth of 68.65% which is mainly

due to rollover projects that were completed in the 2013/14 financial year period.

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1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW

ORGANISATIONAL DEVELOPMENT PERFORMANCE

Delete Directive note once comment is completed – Provide an overview of key Organisational

Development issues based on information contained in Chapter 4.

T 1.5.1

1.6. AUDITOR GENERAL REPORT

AUDITOR GENERAL REPORT: 2013/2014 (CURRENT YEAR)

For the 2011/2012 financial year, a disclaimer of opinion was received and for the 2012/2013 financial

year an improved audit opinion of a qualified audit opinion was received. For the 2013/2014 year an

unqualified audit opinion was received, which shows gradual improvement in the systems of

accountability and records documentation and management.

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1.7. STATUTORY ANNUAL REPORT PROCESS

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 0 Annual Report to Internal Audit and Auditor-General

5 Municipal entities submit draft annual reports to MM

6 Audit/Performance committee considers draft Annual Performance Report of

municipality and entities (where relevant)

August

8 Mayor tables the unaudited Annual Performance Report

9 Municipality submits draft Annual Performance 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 Performance Report including consolidated

Annual Financial Statements and Performance data September –

November

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

develop action plan

January 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

February 17 Oversight report is made public

18 Oversight report is submitted to relevant provincial councils

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

Report and Oversight Reports to be used as input March

T 1.7.1


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COMMENT ON THE ANNUAL REPORT PROCESS:

The above deadlines to prepare the Annual Report nearer the end of the financial year in order to

provide the next budget process with a wide range of data from the outset must be improved upon to

ensure that the complete 1st Draft of the Annual Report is submitted with the unaudited financial

statements to the Auditor-General before the end of August. The alignment between the IDP, Budget

and Performance Management System must be further strengthened and improved upon in order to

ensure that through the cyclical nature of these activities it may better inform forward planning.

T 1.7.1.1

Municipality | CHAPTER 2 – GOVERNANCE 19

CHAPTER 2 – GOVERNANCE

INTRODUCTION TO GOVERNANCE

This Chapter is composed of the following four components:

Component A: Political and Administrative Governance

Component B: Intergovernmental Relations

Component C: Public Accountability and Participation

Component D: Corporate Governance

T 2.0.1

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE

INTRODUCTION TO POLITICAL AND ADMINISTRATIVE GOVERNANCE

The Constitution section 151 (3) states that the council of a municipality has the right to govern on its own

initiative, the local government affairs of the local community.

T 2.1.0

2.1 POLITICAL GOVERNANCE

INTRODUCTION TO POLITICAL GOVERNANCE

For the year under review, the Municipality had a number of key committees in place. The highest

decision-making structure, being the municipal council held meetings throughout the year toward the

facilitation of the administrative processes for the implementation of the projects and programmes as

set for the year.

The Municipality has a functional Audit Committee (AC) that provided guidance throughout the year on

recommendations on the financial processes and performance of the Municipality. The Audit

Committee, which also serves as the Performance Audit Committee (PAC) is composed of the

following members and meetings were held as follows:

DATE OF MEETING A C KEYSER (Chairperson) D W PRENZLER (Member)

2012-08-29 (AC) √ √

2013-01-23 (AC) √ √

2013-04-17 (AC) √ √

2013-02-27 (Q1 & Q2) (PAC) √ √

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 20

2013-05-15 (Q3) (AC & PAC) √ √

2013-08-13 (Q4) (AC & PAC) √ √

The recommendations and further details on the work done by the Audit Committee is more fully

contained in Appendix G.

The Municipality’s Oversight Committee, known as the Municipal Public Accounts Committee (MPAC)

has the key responsibility of amongst others interrogating and providing comments on the Annual

Report. MPAC is comprised of the following members who had meetings on the below listed dates:

The Municipality’s Oversight Committee, known as the Municipal Public Accounts Committee (MPAC)

has the key responsibility of amongst others interrogating and providing comments on the Annual

Report. MPAC is comprised of the following members who had meetings on the below listed dates:

T 2.1.1

Legend: √ = Present; A = Apology; X = Absent without apology T 2.1.1

MUNICIPAL PUBLIC ACCOUNTS COMMITTEE (MPAC)

MEMBERS S M Zacarias (Chairperson)

N Z E Sitshoni

M S Khumalo

S S Mosia

A S Ngwenya

F Sarang

P T Schnetler

J J van der

Wath

S S Gumede

POLITICAL PARTY

ANC ANC ANC ANC ANC ANC DA DA PAC

GENDER F F F M M F M M M

DATES AND ATTENDANCE OF MPAC MEETINGS

2013-08-08 √ √ A √ A √ √ √ X

2013-08-21 √ √ √ √ X √ √ √ X

2013-11-07 √ √ √ A X A √ √ A 2013-11-11 (Continuation from 2013-11-07)

2014-02-13 √ √ √ √ X √ √ √ √

2014-02-20 √ √ A √ X √ √ √ √

2014-03-13 √ √ √ √ √ A √ √ A

2014-03-18 √ √ √ √ A A √ √ X

√ √ √ √ √ √ √ √ √

√ √ √ √ √ √ √ √ √

√ √ √ √ √ √ √ √ √

√ √ √ √ √ √ √ √ √


POLITICAL STRUCTURE

EXECUTIVE MAYOR

(CAROLINE MATSHIDISO MORAJANE)

SPEAKER

(LINDOKUHLE BLESSING ROBERT DHLAMINI)

CHIEF WHIP

(GOODNESS SANDY MSIBI)

MEMBERS OF THE MAYORAL COMMITTEE

MARIA MANKOMO NTULI BUSI SEKHONDE

MMC: Technical Services and MMC: Corporate Services and Community

Development and Planning Services and Safety


COUNCILLORS

The Lekwa Municipal Council consists of 30 Councilors, made up of 15 ward councilors and 15

proportional representative councilors and of the total councillors, 14 are female and 16 male. The

African National Congress has 23 councilors, of which 14 are female and 9 male. The Democratic

Alliance has 6 male councilors and the Pan Africanist Congress has 1 male councilor.

Appendix A consists of the complete list of Councilors, which distinguishes between ward councilors

and those appointed on a proportional basis including their attendance at council meetings and the

committees to which they were allocated.

Appendix B also sets out the various committees with their respective functions, which were

established and functional for the year under review.

T 2.1.2

POLITICAL DECISION-TAKING

Delete Directive note once comment is completed –

Explain how political decisions are taken and provide the percentage of Council Resolutions

implemented against the number of decisions taken. List those not implemented and indicate why not.

T 2.1.3

2.2 ADMINISTRATIVE GOVERNANCE

INTRODUCTION TO ADMINISTRATIVE GOVERNANCE

MFMA section 60 (b) stipulates that the Municipal Manager of a municipality is the accounting officer of the

municipality for the purposes of this Act and must provide guidance on compliance with this Act to political

structures; political office bearers, and officials of the municipality and any entity under the sole or shared control

of the municipality.

Delete Directive note once comment is completed – Comment as appropriate e.g. more general

explanations than can be given in the table set out below concerning the roles of Municipal Manager,

Deputy Municipal Managers and Executive Directors. Explain how they work together corporately in

their thematic and service group roles to make the greatest impact on service delivery. Explain any

major structural changes made or structural reviews commenced during the year.

T 2.2.1


Employment term

Performance

Contract Term

TOP ADMINISTRATIVE STRUCTURE

TIER 1

MUNICIPAL MANAGER:

LINDA BERNARD TSHABALALA

1 August 2012 – 31 July 2017

1 July 2013 – 30 June 2014

*TIERS 2 AND 3

TIER 2

Employment

Contract Term

Performance

Contract Term

Employment

Contract Term

Performance

Contract Term

Employment

Contract Term

Performance

Contract Term

Employment

Contract Term

Performance

Contract Term

EXECUTIVE MANAGER: TECHNICAL SERVICES

THEMBA DANIEL GOGWANE

2 September 2013 – 31 August 2018

2 September 2013 – 30 June 2014

EXECUTIVE MANAGER: DEVELOPMENT AND PLANNING

SEBOTE THABITHA MATLADI

2 September 2013 – 31 August 2018

2 September 2013 – 30 June 2014

EXECUTIVE MANAGER: CORPORATE SERVICES

SOLOMON SIPHO NKOSI

2 January 2014 – 31 December 2019

2 January 2014 – 30 June 2014

CHIEF FINANCIAL OFFICER

EDUARD CHRISTIAAN LE ROUX

13 January 2014 – 12 January 2019

13 January 2014 – 30 June 2014

EXECUTIVE MANAGER: COMMUNITY

SERVICES AND SAFETY

Vacant

T2.2.2


COMPONENT B: INTERGOVERNMENTAL RELATIONS

INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS

Section 3 of the MSA requires that municipalities exercise their executive and legislative authority

within the constitutional system of co-operative governance as envisaged section 41 of the

Constitution. To this end, the Municipality engages and interacts at different governmental spheres.

The primary purpose of the intergovernmental relations unit is to position the Municipality to enhance

intergovernmental relations by mobilizing resources and strategic partnerships which will ensure co-

ordination of service delivery by all departments to its citizens, thus ensuring a better quality of life to

all.

The Intergovernmental Relations (IGR) unit focuses on the following priority programme areas:

- Coordinating and managing all municipal relationships with other spheres of government;

- To ensure that there is a strong link within the Municipality and with the National and Provincial

spheres of government;

- To facilitate information and knowledge sharing through inter-municipal cooperation;

- To build managerial and technical capacity through study tours, exchange programmes, seminars,

conferences, etc;

- To develop project partnerships with other government departments that can be of mutual benefit;

- To create employment through the expanded public works programmes.

- To focus on supporting the successful implementation of the strategic priorities of the Municipality by

mobilizing on-going support from other spheres of government;

- To ensure a consistently positive image of the Municipality to all other spheres of government;

- Coordinating and aligning all events that involve other spheres of government – e.g. national days,

Izimbizos, etc.

- Promoting efficient lines of communication between the Municipality and other spheres of

government;

- Ensuring efficient relations and sharing models of good practice with other municipalities;

- Mainstreaming of transversal issues and special projects within the municipal agenda.

T 2.3.0

2.3 INTERGOVERNMENTAL RELATIONS

NATIONAL INTERGOVERNMENTAL STRUCTURES

The Municipality participated in the following meetings and programmes that are national

intergovernmental structures in nature:

- 01 November 2013: BRICS - National Youth Consultation Forum – Pretoria – OR Tambo Buildings

- 26 – 29 November 2013: SALGA National Members’ Assembly – OR Tambo International Airport.

The benefit of these was the development of project partnerships with government departments and

other key stakeholders operating within the government sphere.

T 2.3.1


PROVINCIAL INTERGOVERNMENTAL STRUCTURE

The municipality participated in the following meetings and programmes that are provincial


- 03 December 2013: Provincial Energy Forum meeting – Ermelo

- 10-12 October 2013: Provincial Management Committee – Nelspruit

- 25 November 2013: Meeting with COGTA – Noble plant investment – Nelspruit

- 11 December 2013: Provincial Management Committee Presentation - Nelspruit

- 09 – 12 January 2014: Manifesto Launch and New Age Breakfast with President J Zuma – Nelspruit

- 12 – 14 February 2014: Provincial Management Committee Lekgotla – Middleburg

- 14 February 2014: SALGA & IGR Working Group and Municipal Demarcation Board - Nelspruit

- 25 February 2014: Eskom Regional Top Customer and Municipal Managers’ Forum – Middleburg

- 24 March 2014: Implementation of the capacity building strategy as well as the Human Resource and

IDP support plans project –Nkangala District Municipality

- 25 – 26 May 2014: COGTA Technical PCF - Nelspruit

- 18 – 21 June 2014: Executive Committee Lekgotla – Skukuza

The value obtained from attending these meetings and presentations was that it has assisted the

Municipality in gathering and sharing of information. Further, it has helped the Municipality in

integrating programmes within the Integrated Development Plan and to set programmes in motion in

some instances to promote investment in the area as well as to deal with other critical challenges that

the Municipality faced.

T 2.3.2

RELATIONSHIPS WITH MUNICIPAL ENTITITIES

The Municipality does not have any municipal entities. Attached as Appendix D is a complete list of

municipal functions and how these are rendered.

T 2.3.3

DISTRICT INTERGOVERNMENTAL STRUCTURES

The mechanisms used at District level is through a number of district forums that includes the

following:

- Municipal Managers’ Forum

- IDP Forum

- District Aids Council

- District Communication Forum

- District Disability Forum

- District Sports Council

- District Arts and Culture Forum


Challenges still exist with regards to the functionality of some of these forums at a district level

especially in respect of the integration and coordination of programmes and projects.

The Municipality participated in the following meetings and programmes that are district


- 29 August 2013: Inter-Municipal Learning Event on Community Development - Gert Sibande District

Municipality (Ermelo)

- 30 August 2013: Women’s Day Commemoration – Gert Sibande District Municipality (Ermelo)

- 22 January 2014: Workshop on Sport Development - Gert Sibande District Municipality (Ermelo)

- 12 March 2014: Community Development Engagement Meeting – Gert Sibande District Municipality

(Ermelo)

- 14 May 2014: Preparatory Workshop for MPAC – Strategic Planning Lekgotla – Gert Sibande District

Municipality (Ermelo)

- 27 May 2014: People with Disability Sports Day – Sasol Club (Embalenhle)

T 2.3.4

Municipality | CHAPTER 2 – GOVERNANCE 27

COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION

OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION

Note: MSA section 17 (2): requires a municipality to establish and organise its administration to facilitate a culture

of accountability amongst its staff. Section 16 (1): states that a municipality must develop a system of municipal

governance that compliments formal representative governance with a system of participatory governance.

Section 18 (a) - (d): requires a municipality to supply its community with information concerning municipal

governance, management and development.

Delete Directive note once comment is completed - Provide a brief comment on how your

municipality carries out these responsibilities, improvements made during the year and benefits

derived from these activities during the year.

T 2.4.0

2.4 PUBLIC MEETINGS

COMMUNICATION, PARTICIPATION AND FORUMS

Delete Directive note once comment is completed - Include brief examples of public

communication and participatory initiatives employed by your municipality. Ensure that the reader

understands that consultation takes place throughout the year on various issues including matters

raised by members of the community. Make specific reference to the IDP/Budget and Performance

Management Representative forums, timing of meetings, approximate numbers attending, the purpose

of the meetings and the groups usually represented at each meeting. Indicate methods used to

improve the efficiency and effectiveness of these forums. Explain the use of municipal websites and

opinion surveys as referred to later in this chapter.

During the year under review, Council at its meeting held on 24 January 2014, approved the Advertiser

and Cosmos as the local newspapers of record and City Press and New Age as the national

newspapers of record for the Municipality. However, at the same meeting, Council also resolved not to

revive the Municipal newsletter due to the financial constraints experienced.

T 2.4.1


WARD COMMITTEES

Delete Directive note once comment is completed - Set out the key purposes of ward committees,

the major issues that the ward committee system has dealt with during the year. Refer to Appendix E

which contains further details on ward committee governance and to Appendix F that contains

performance data on a ward by ward basis.

T 2.4.2

Nature and purpose of meetingDate of

events

Number of

Participating

Municipal

Councillors

Number of

Participating

Municipal

Administrators

Number of

Community

members

attending

Issue

addressed

(Yes/No)

Dates and manner of

feedback given to community

T 2.4.3

Public Meetings

COMMENT ON THE EFFECTIVENESS OF THE PUBLIC MEETINGS HELD:

Delete Directive note once comment is completed – Set out the key benefits for the municipality

and the public from the above mentioned meetings.

T 2.4.3.1


2.5 IDP PARTICIPATION AND ALIGNMENT

IDP Participation and Alignment Criteria* Yes/No

Does the municipality have impact, outcome, input, output indicators? No

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? No

Does the budget align directly to the KPIs in the strategic plan? No

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 No

Were the indicators communicated to the public? Yes

Were the four quarter aligned reports submitted within stipulated time frames? No

* Section 26 Municipal Systems Act 2000

T 2.5.1

COMPONENT D: CORPORATE GOVERNANCE

OVERVIEW OF CORPORATE GOVERNANCE

Delete Directive note once comment is completed - Please explain in brief the scope of corporate

governance.

T 2.6.0

2.6 RISK MANAGEMENT

RISK MANAGEMENT

For the 2013/2014 financial year, a review of the municipal risks and associated potential risks was

undertaken during the month of July 2013. All risks identified, their associated controls and risk

mitigation plans were reviewed in preparation for the new financial year. The objective of this review

was to ensure sustainability and continuous improvement in the management of risks and that

appropriate and timely action are taken in response to the inevitable changes in the external and

internal organizational environments. During this process the following top risks were identified:

(a) Inadequate Security measures due to unrestricted access to municipal buildings;


(b) Failure to attract sufficient investors due to a fully-fledged LED unit not being established, with

updated LED strategy and a non-functional LED Forum;

(c) Lack of Service Level Agreement with some service providers and ineffective monitoring of such

service providers;

(d) Lack of wellness programmes (HIV and AIDS, EAP) with no dedicated official to deal with such

matters due to budgetary constraints;

(e) Ineffective IT governance with the unavailability of effective IT systems, insufficient IT staff, with no

IT strategy, policy and procedure manual in place, also critically is that there are no Business

Continuity Plan and Disaster Recovery Plan in place.

The following table provides a summary of the risk magnitude as identified:

Risk Magnitude No of Risk per Risk

Magnitude

Percentage

Maximum Risk 6

30%

High Risk 7

35 %

Medium Risk 5

25%

Low Risk 1

5 %

Minimum Risk 1

5 %

Total number of

Risk Identified 20 100%


0

1

2

3

4

5

6

7

Maximum Risk

High Risk

Medium Risk

Low Risk

Minimum Risk

No. of Risks per magnitude

The graph above depicts that the strategic risks as identified were classified as 30% Maximum risks

(6), 35% as High risks (7) and 25% Medium risks (5). All these risks were prioritised as they fall within

an unacceptable risk appetite for the Municipality.

The other 5% and 5%, 1 risk each, were classified as Low and Minimum priority risk areas

respectively

The current challenge is that with the Risk Manager has not yet been appointed to facilitate risk

management, and in the absence of an established Risk Management Committee for the year under

review, much work must still be done to set the right tone at the top for the Municipality to effectively

manage its risks. It is envisaged that the position will be filled in the next financial year and in the

interim, each Department is responsible to manage identified risks.

T 2.6.1

2.7 ANTI-CORRUPTION AND FRAUD

FRAUD AND ANTI-CORRUPTION STRATEGY

As part of the programme for the implementation of the approved Fraud Prevention Plan, the Internal

Audit unit facilitated workshops on fraud prevention as follows:

- Budget and Treasury (1st group): 8 April 2014

- Budget and Treasury (2nd

group): 9 April 2014

- Technical Services: 15 May 2014.

T 2.7.1


2.8 SUPPLY CHAIN MANAGEMENT

OVERVIEW SUPPLY CHAIN MANAGEMENT

Note: MFMA section 110 - 119; SCM Regulations 2005; and relevant MFMA circulars set out required

processes and guidance manuals to help ensure that SCM arrangements provide appropriate goods

and services, offer best value for money and minimize the opportunities for fraud and corruption.

Delete Directive note once comment is completed - Provide a brief narrative on the SCM policies

and processes, and indicate improvements contributing to effective service delivery. Also indicate

challenges experienced to attain the standards set out in Section 112 of the MFMA (see SCM

Implementation checklist MFMA Circular 40). Refer to information on long term contracts which is set

out in Appendix H. Explain remedial action being taken to address these shortfalls. Refer to further

comments set out under the Financial Performance – Chapter 5, Component D.

T 2.8.1

2.9 BY-LAWS

By-laws Introduced during 2013/2014

Newly Developed Revised Public Participation Conducted Prior to

Adoption of By-Laws (Yes/No)

Dates of Public Participation

By-Laws Gazetted* (Yes/No)

Date of Publication

No new by-laws were introduced for the 2013/20140financial year under review


2.10 WEBSITES

Municipal Website: Content and Currency of Material

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

Date

2013/2014 annual and adjustments budgets and all budget-related documents Yes

2013/2014 Budget-related policies

The previous annual report: 2012/2013 Yes

2013/2014 Annual report still to be published Yes

All current performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act (Year 0) and resulting scorecards Yes

All service delivery agreements (Year 0) No

All long-term borrowing contracts (Year 0) N/A

All supply chain management contracts above a prescribed value (give value) for Year 0 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 1

Contracts agreed in Year 0 to which subsection (1) of section 33 apply, subject to subsection (3) of that section

Public-private partnership agreements referred to in section 120 made in Year 0 N/A

All quarterly reports tabled in the council in terms of section 52 (d) during Year 0 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. T 2.10.1

COMMENT MUNICIPAL WEBSITE CONTENT AND ACCESS:

As prescribed per the requirements for Municipal websites as set out in section 75 of the MFMA, most

documents as required are placed on the website that can be accessed on www.lekwalm.gov.za. A

shrtcoming still exists in that delays are experienced in ensuring that documents are posted onto the

website within specified timeframes.

T 2.10.1.1

2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES

PUBLIC SATISFCATION LEVELS

Delete Directive note once comment is completed - Provide a brief overview of public satisfaction

with municipal service delivery.

T 2.11.1

http://www.lekwalm.gov.za/


Subject matter of survey Survey method Survey

date

No. of people

included in

survey

Survey results indicating

satisfaction or better

(%)*

Overall satisfaction with:

(a) Municipality

(b) Municipal Service Delivery

(c) Mayor

Satisfaction with:

(a) Refuse Collection

(b) Road Maintenance

(c) Electricity Supply

(d) Water Supply

(e) Information supplied by

municipality to the public

(f) Opportunities for consultation

on municipal affairs

T 2.11.2

Satisfaction Surveys Undertaken during: Year -1 and Year 0

* The percentage indicates the proportion of those surveyed that believed that relevant

performance was at least satisfactory

Concerning T 2.11.2:

Delete Note once table T 2.11.2 is complete - It is not intended that municipalities should necessarily

commission new surveys to complete the above table (T 2.11.2). This material should be obtained

from existing surveys undertaken during year -1 and year 0 and by analysing complaints and other

service feedback. The services specified in the table (a. Refuse; b. Road Maintenance; c. Electricity; d.

Water) are provided for illustration only. Although they are key services and should be included if data

is available, other services should be included too where data exists. Where future questionnaires are

planned then municipalities should have regard to national priorities; demographic variations; and

poverty.

T 2.11.2.1

COMMENT ON SATISFACTION LEVELS:

Delete Directive note once comment is completed – Indicate the efforts that were made to improve

satisfaction levels and to communicate successfully with the public on key issues of service delivery. It

is not intended that municipalities should commission new surveys to complete the above table

(T2.11.2). This material should be obtained from existing survey undertaken during year -1 and year 0

and by analyzing complaints and other service feedback. The services specified in the table (a.

Refuse; b. Road Maintenance; c. Electricity; d. Water) are provided for illustration only. Although they

are key services and should be included if data is available, other services should be included too

where data exists.

T 2.11.2.2

2013-2014%20Annual%20Report%20V1.doc

Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 35

CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE

REPORT PART I)

INTRODUCTION

The 2013/2014 financial year saw some further progress being made towards meeting service delivery

objectives, with a number of projects undertaken on water, sanitation and electricity provision. There

has however also been severe pressure on existing infrastructure as most of the bulk infrastructure is

functioning at beyond its maximum capacity with the expansion of especially residfential developments

without an equivalent upgrade and regular maintenance of such infrastructure over the past few year.

To this end concerted efforts are now being made to address bulk infrastructure challenges through

the gradual upgrade and reburbishment of water, sanitation and electricity infrastructure.

The Municipality does not have any entities under its management.

The functions of the Municipality are included in Appendix D.

T 3.0.1

COMPONENT A: BASIC SERVICES

This component includes: water; waste water (sanitation); electricity; waste management; and housing

services; and a summary of free basic services.

INTRODUCTION TO BASIC SERVICES

Delete Directive note once comment is completed - Provide brief introductory comments on the

pressing need to meeting basic service provisioning standards. Make reference to the use of entities

within the municipality to provide for the specific services as discussed in greater detail throughout this

chapter.

T 3.1.0

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)

36

3.1. WATER PROVISION

INTRODUCTION TO WATER PROVISION

Note: Recent legislation includes the Water Services Act 1997 and the General Enabling Act 2005

Delete Directive note once comment is completed – Provide brief introductory comments on your

water provision strategy (the balance between supply and demand) and the progress being made to

achieve basic standards for Water Services, with particular reference to progress made by your

municipality in year 0 (including the blue drop status as defined by the department of Water Affairs, top

3 service delivery priorities and the impact you have had on them during the year). Set out measures

taken to improve performance and the major efficiencies achieved by your service during the year.

Indicate how your municipality identifies and responds to those communities that are living in poverty

and are deficient in this basic service. Give the name and extent of service provision of any municipal

entity(ies) responsible for rendering Water Services within the municipality.

T 3.1.1

Agriculture Forestry Industrial DomesticUnaccountable water

losses

Year -1 50 40 35 150 10

Year 0 50 44 46 9 11

Total Use of Water by Sector (cubic meters)

T 3.1.2

0

20

40

60

80

100

120

140

160

Agriculture Forestry Industrial Domestic Unaccountable water losses

Cu

bic

met

er

Water use by Sector

Year -1

Year 0

T 3.1.2.1

2013-2014%20Annual%20Report%20Template%20-%20V1%20-%20Annexure%20B.xlsm


37

COMMENT ON WATER USE BY SECTOR:

Delete Directive note once comment is completed - Comment on the above trends, and on more

specific issues concerning water supply and demand as appropriate.

T 3.1.2.2

Year -3 Year -2 Year -1

Actual Actual Actual Actual

No. No. No. No.

Water: (above min level)

Piped water inside dwelling 857 546 655 846

Piped water inside yard (but not in dwelling) 647 865 456 486

Using public tap (within 200m from dwelling ) 486 486 465 546

Other water supply (within 200m)

Minimum Service Level and Above sub-total 1,990 1,898 1,576 1,879

Minimum Service Level and Above Percentage 80% 80% 76% 79%

Water: (below min level)

Using public tap (more than 200m from dwelling)

Other water supply (more than 200m from dwelling 486 486 486 486

No water supply

Below Minimum Service Level sub-total 486 486 486 486

Below Minimum Service Level Percentage 20% 20% 24% 21%

Total number of households* 2,476 2,384 2,062 2,365

* - To include informal settlements T 3.1.3

Water Service Delivery Levels

DescriptionYear 0

Households


38

Description Year -3 Year -2 Year -1

Actual Actual ActualOriginal

Budget

Adjusted

BudgetActual

No. No. No. No. No. No.

Formal Settlements

Total households 100,000 100,000 100,000 100,000 100,000 100,000

Households below minimum service level 25,000 25,000 25,000 25,000 25,000 25,000

Proportion of households below minimum

service level 25% 25% 25% 25% 25% 25%

Informal Settlements


Households ts below minimum service level 25,000 25,000 25,000 25,000 25,000 25,000

Proportion of households ts below minimum

service level 25% 25% 25% 25% 25% 25%

Households - Water Service Delivery Levels below the minimum

Year 0

Households

T 3.1.4

25

7265

01020304050607080

Proportion of households with access

to water points*

Proportion of households with access

to piped water

Proportion of households receiving 6

kl free#

Access to Water

Year -2

Year -1

Year 0

* Means access to 25 liters of potable water per day supplied within 200m of a household and with a

minimum flow of 10 liters per minute

# 6,000 liters of potable water supplied per formal connection per month

T 3.1.5


Water Service Policy Objectives Taken From IDP Service Objectives Baseline Outline Service Targets 2013/2014

Actual

Service Indicators

(i) (ii) (vii)

Service Objective xxx % increase in households with access to clean and safe drinking water

87% (28, 146) households with access to clean and safe drinking water

4% increase in households with access to clean and safe drinking water to 91%

Households provided with safe and clean drinking water, either through connections or portable water

Note: This statement should include no more than the top four priority service objectives, including milestones that relate to the blue water drop status as set out by the Water Affairs department. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal 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 in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.


Year -1

Employees Posts Employees Vacancies (fulltime

equivalents)

Vacancies (as a % of

total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Water Services

Job Level

Year 0

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be

established and funded in the approved budget or adjustments budget. 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. T3.1.7

Year -1

Actual Original Budget Adjustment

Budget

Actual Variance to

Budget

Total Operational Revenue 120 125 100 95 -32%

Expenditure:

Employees 125 244 250 248 2%

Repairs and Maintenance 25 244 250 248 2%

Other 45 244 250 248 2%

Total Operational Expenditure 195 732 750 744 2%

Net Operational Expenditure 75 607 650 649 6%

T 3.1.8

Financial Performance Year 0: Water Services

Details

Year 0

R'000

Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual

and Original Budget by the Actual.

Capital Expenditure: 2013/2014 Water Services

R' 000

Capital Projects

Year 0

Budget Adjustment Budget

Actual Expenditure

Variance from original

budget

Total Project Value

Total All 14,20

-

14,20

-

Completion of the Rising Main Line

2,25

-

2,25

- 2,25

Replacement of AC pipes with PVC pipes in Lekwa LM

6,25

-

6,25 6,25


41

Installation of boreholes in rural(farm) areas of Lekwa LM

3,30

-

3,30

- 3,30

Installation of raw water turbine pumping units

1,90

-

1,90

- 1,90

Installation of water connections to 53 Households in Rooikoppen

0,50

-

0,50

- 0,50

-

-

- #DIV/0! 90,00

Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.1.9

COMMENT ON WATER SERVICES PERFORMANCE OVERALL:

Delete Directive note once comment is completed – Confirm your year 5 targets set out in the IDP

schedule can be attained within approved budget provision and if not then state how you intend to

rectify the matter. Explain any failure to meet performance targets for the current year. Explain the

priority of the four largest capital projects and explain variances from budget for net operating and

capital expenditure. Also explain any likely variation to the total approved project value (arising from

year 0 and/or previous year actuals, or expected future variations).

T 3.1.10

3.2 WASTE WATER (SANITATION) PROVISION

INTRODUCTION TO SANITATION PROVISION


strategy for the provision of Sanitation Services and progress being to redress any shortfall in basic

standards of service provision by 2012 and with particular reference to progress made in year 0

(include your top 3 service delivery priorities and the impact you have had on them during the year).

Set out measures taken to improve performance and the major efficiencies achieved by your service

during the year. Indicate how your municipality identifies and responds to those communities that are

living in poverty and are deficient in this basic service. Give the name and extent of service provision of

any municipal entity(ies) responsible for rendering Sanitation Services within the municipality.

Comment on trends in Sanitation provision as reflected below and on more specific issues concerning

Sanitation Service and demand as appropriate, this should include reporting against the milestones set

out to achieve the green drop status as defined by the Water Affairs department.

T 3.2.1


42

–

100

200

300

400

500

600

700

800

900

Sanitation/Sewerage: (above minimum level) - Year 1

T 3.2.2


43


Outcome Outcome Outcome Actual

No. No. No. No.

Sanitation/sewerage: (above minimum level)

Flush toilet (connected to sewerage) 942 600 720 930

Flush toilet (with septic tank) 712 952 502 535

Chemical toilet 535 535 511 601

Pit toilet (ventilated) 124 135 103 100

Other toilet provisions (above min.service level) 13 13 15 11


Minimum Service Level and Above Percentage 68.9% 59.9% 55.5% 63.1%

Sanitation/sewerage: (below minimum level)

Bucket toilet 502 952 938 720

Other toilet provisions (below min.service level) 535 535 535 535

No toilet provisions 10 11 12 15

Below Minimum Service Level sub-total 1,047 1,498 1,485 1,271

Below Minimum Service Level Percentage 31.1% 40.1% 44.5% 36.9%

Total households 3,372 3,734 3,336 3,449

T 3.2.3*Total number of households including informal settlements

Sanitation Service Delivery Levels

DescriptionYear 0

*Households



Budget

Adjusted

BudgetActual


Formal Settlements

Total households 100,000 100,000 100,000 100,000 100,000 100,000 Households below minimum service

level 25,000 25,000 25,000 25,000 25,000 25,000 Proportion of households below

minimum service level 25% 25% 25% 25% 25% 25%



Households ts below minimum service 25,000 25,000 25,000 25,000 25,000 25,000 Proportion of households ts below

minimum service level 25% 25% 25% 25% 25% 25%

Households - Sanitation Service Delivery Levels below the minimum

Year 0

Households

T 3.2.4

Description


44

69

69.5

70

70.5

71

71.5

72

72.5

Proportion of households with access to sanitation

Access to Sanitation

Year -2

Year -1

Year 0

T 3.2.5


Waste Water (Sanitation) Service Policy Objectives Taken From IDP Service Objectives Baseline Outline Service Targets 2013/2014

Actual

Service Indicators

(i) (ii) (iv) % increase in households with access to basic, decent sanitation

90% (26, 900) households with access to basic sanitation

2% increase in households with access to basic, decent sanitation

households provided with access to basic, decent sanitation.

Note: This statement should include no more than the top four priority service objectives, including milestones that relate to the green drop status as set out by the Water Affairs department. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal 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 in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Sanitation Services

Job Level

Year 0

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts

must be established and funded in the approved budget or adjustments budget. 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. T 3.2.7

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.2.8

Financial Performance Year 0: Sanitation Services R'000

Details

Year 0



Budget Adjustment

Budget

Actual

Expenditure

Variance from

original

budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.2.9

Capital Expenditure Year 0: Sanitation Services

R' 000

Capital Projects

Year 0

Total project value represents the estimated cost of the project on approval by council (including past

and future expenditure as appropriate.


47

COMMENT ON SANITATION SERVICES PERFORMANCE OVERALL:

Delete Directive note once comment is completed - Explain the priority of the four largest capital

projects and explain variances from budget for operating and capital expenditure. Confirm your year 5

targets set out in the IDP schedule can be attained within approved budget provision and if not then

state how you intend to rectify the matter. Explain the priority of the four largest capital projects and

explain variances from budget for net operating and capital expenditure. Also explain any likely

variation to the total approved project value (arising from year 0 and/or previous year actuals, or

expected future variations).

T 3.2.10

3.3 ELECTRICITY

INTRODUCTION TO ELECTRICITY

Note: Recent legislation includes the Electricity Amendment Acts 1989; 1994; 1995; and the Electricity

Regulation Act 2006.

For the 2013/14 financial year, 92 farm worker houses were electrified utilizing an INEP grant. All legal

urban households are currently electrified. All legal but vacant stands are electrified upon request of a

developer after the payment of the prescribed fees. The 230 farm worker houses in the Lekwa

municipal electricity distribution area are not yet electrified. This is planned to be electrified in the

2014/15 financial year and possibly to be completed in the 2015/2016 financial year, utilizing INEP

funds.

T 3.3.1


48

–

100

200

300

400

500

600

700

800

900

1,000

Electricity (at least min.service level) Electricity - prepaid (min.service level) Electricity (< min.service level) Electricity - prepaid (< min. service level)

Electricity

Year -2 Year -1 Year 0

T 3.3.2

Electricity Service Delivery Levels

Households

Description

2010/2011 2011/2012 2012/2013 2013/2014


No. No. No. No.

Energy: (above minimum level)

Electricity (at least min.service level) 3738 3492 3344 3094

Electricity - prepaid (min.service level) 22817 23139 23342 23645

Minimum Service Level and Above sub-total 26555 26631 26686 26739

Minimum Service Level and Above Percentage 100,0% 100,0% 100,0% 100,0%

Energy: (below minimum level)

Electricity (< min.service level) –

–

–

Electricity - prepaid (< min. service level) –

–

– 230

Other energy sources –

–

–

–

Below Minimum Service Level sub-total –

–

–

–

Below Minimum Service Level Percentage 0,0% 0,0% 0,0% 0,0%

Total number of households 26555 26631 26686 26739

T 3.3.3


49

Households - Electricity Service Delivery Levels below the minimum Households

Description

Year -3 Year -2 Year -1 Year 0

Actual Actual Actual Original Budget

Adjusted Budget

Actual


Formal Settlements

Total households 10634 10642 10644 10644 52 10696 Households below minimum service level 0 0 0 0 0 0

Proportion of households below minimum service level 0% 0% 0% 0% 0% 0%


Total households 15921 15989 16042 16042 53 16095 Households at below minimum service level 0 0 0 230 0 230

Proportion of households at below minimum service level 0% 0% 0% 1% 0% 1%

T 3.3.4


Electricity Service Policy Objectives Taken From IDP Service Objectives Baselines Outline Service Targets 2013/2014

Actual

Service Indicators

(i) (ii) (iv) % increase in households with access to electricity

88% (27, 537) households with access to electricity for lighting

4% increase in households with access to electricity 1% of the 4% achieved.

Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal 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 in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.


Financial Performance Year 0: Electricity Services

R'000

Details

Year -1 Year 0

Actual Original Budget Adjustment Budget

Actual Variance to Budget

-Total Operational Revenue 175068 209348 188662 188662 9.8%

Expenditure:

Employees 11003 8130 10939 10939 34%


Other 187476 193250 185274 185274 4.1%

Total Operational Expenditure 201512 204402 200723 200723 1.8%

Net Operational Expenditure -26444 -4946 -12061 -12061 %

Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.3.7

Employees: Electricity Services

Job Level

2012/2013 2013/2014

Employees Posts Employees Vacancies (fulltime equivalents)

Vacancies (as a % of total posts)

No. No. No. No. %

0 - 3 2 2 1 1 50%

4 - 6 2 2 2 0 0%

7 - 9 11 14 10 4 29%

10 - 12 0 0 0 0 #DIV/0!

13 - 15 0 3 1 2 67%

16 - 18 24 39 24 15 38%

19 - 20 0 0 0 0 #DIV/0!

Total 39 60 38 22 37%

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. 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. T 3.3.6


52

Capital Expenditure Year 2013/2014: Electricity Services

Capital Projects

2013/2014


Actual Expenditure

Variance from

original budget

Total Project Value

Total All 2000000 0 2000000 0%

Installation of High mast lights in Lekwa Municipality

2 000 000,00 - 2 000 000,00 0% 2 000 000,00


COMMENT ON ELECTRICITY SERVICES PERFORMANCE OVERALL:

Electrification of 68 farm worker houses, 53 urban households and a 3km supply line and

electrification of 92 farmworker house (in 2013/14 financial year) in the last 4 years took priority and is

completed. The new project identified of the upgrading of a MV cable in Sakhile, will be done utilizing

INEP funds, as a priority.

Operation and maintenance is done according to NER Reg. 047, with services to the community

complying with NER Reg. 048

230 Farm worker houses in the Lekwa municipal electricity distribution area will be attended to in the

2015/16 financial year and possibly to be completed by 2016/17.

T 3.3.9

3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS,

WASTE DISPOSAL, STREET CLEANING AND RECYCLING)

INTRODUCTION TO WASTE MANAGEMENT

Delete Directive note once comment is completed – Provide brief introductory comments on the

actions being taken to achieve the National standard for weekly Refuse Collection from every

household by 2012 and discuss the major successes achieved and challenges faced in year 0.

Discuss briefly progress made with waste disposal, street cleaning and recycling. Set out your top 3

service delivery priorities and the impact you have had on them during the year. Explain the measures

taken to improve performance and the major efficiencies achieved by your service during the year.

Indicate how your municipality identifies and responds to those communities that are living in poverty


53

and are deficient in this basic service. Give the name and extent of service provision of any municipal

entity(ies) responsible for rendering Refuse Services within the municipality.

T 3.4.1



No. No. No. No.

Solid Waste Removal: (Minimum level)

Removed at least once a week 2,895 2,685 2,846 2,235


Minimum Service Level and Above percentage 50.9% 47.1% 51.5% 44.8%

Solid Waste Removal: (Below minimum level)

Removed less frequently than once a week 655 547 565 523

Using communal refuse dump 865 846 487 865

Using own refuse dump 655 547 565 523

Other rubbish disposal 502 952 938 720

No rubbish disposal 112 123 124 124

Below Minimum Service Level sub-total 2,790 3,015 2,678 2,755

Below Minimum Service Level percentage 49.1% 52.9% 48.5% 55.2%

Total number of households 5,685 5,699 5,523 4,991

T 3.4.2

Solid Waste Service Delivery Levels

Description

Households



Budget

Adjusted

BudgetActual


Formal Settlements


Households below minimum service level 25,000 25,000 25,000 25,000 25,000 25,000

Proportion of households below minimum

service level 25% 25% 25% 25% 25% 25%



Households ts below minimum service level 25,000 25,000 25,000 25,000 25,000 25,000

Proportion of households ts below minimum

service level 25% 25% 25% 25% 25% 25%

Households - Solid Waste Service Delivery Levels below the minimum

Households

Description

Year 0

T 3.4.3


Waste Management Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014

Target Actual

Service Indicators

(i) (ii)

Service Objective xxx

Household Waste Collection Services 895,200 household points to be serviced

895,200 household points to be serviced

893808 household points serviced

Business Waste Collection Services 20,688 business points to be serviced

20,688 business points to be serviced

20479 business points serviced

Street Cleaning Services To keep the environment clean To keep the environment clean

All streets and open spaces in CDB cleaned and maintained

Landfill sites Waste Disposal To adhere to landfill site permit requirements

To adhere to landfill site permit requirements

Landfil site requirements adhered to

Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal 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 in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Solid Waste Magement Services

Job Level

Year 0





accumulated days. T3.4.5

Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Waste Disposal and Other Services

Job Level

Year 0





accumulated days. T3.4.6


56

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.4.7

Financial Performance Year 0: Solid Waste Management Services R'000

Details

Year 0



Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.4.8

Financial Performance Year 0: Waste Disposal and Other ServicesR'000

Details

Year 0



Capital Expenditure 2013/2014: Waste Management Services

Capital Projects

2013/2014


Actual Expenditure

Variance from original

budget

Total Project Value

Total All 6 500 000,00 - 6 500 000,00

-

Construction of Standerton Landfill site 6 500 000,00

- 6 500 000,00

- 6 500 000,00



57

COMMENT ON WASTE MANGEMENT SERVICE PERFORMANCE OVERALL:

Delete Directive note once comment is completed –Explain the priority of the four largest capital







T 3.4.10

3.5 HOUSING

INTRODUCTION TO HOUSING

With the five year Housing Chapter having been adopted and approved by the Council during the

2011/2012 financial year, the Housing Chapter has become the strategic document which serves as a

guide to provide strategic solutions to human settlements developments including ways of tackling the

ever present challenge of settling our people. The Municipality has over the past 20 years established

a number of townships in an attempt to avail formalised stands to people who were previously settled

on various pockets of informal settlements across the Municipality, with the last of these townships

established by 2011. With the township establishment and informal settlements upgrade programme,

it resulted in the construction of houses at Sakhile extension 1,3,4,5,6 Standerton Extension 6 as and

Azalea Extension 1 as well as Standerton Extension 8 of which currently there is a development going

on of the construction of houses and this project is an integrated human settlements which will cater

for different housing typologies. The Municipality also successfully implemented the rectification of

Pre-1994 housing stock which saw the erection of 150 housing units in the townships of Azalea and

Sakhile. The Municipality is also delighted to be amongst the 45 Municipalities identified by the

National Department of Human Settlements to participate on the National Upgrade Support

Programme. The Community Residential Units Project at the Sakhile Hostels which is at the Practical

completion which also saw the completion of 34 new double storey units. With the strides made in

addressing the housing backlog within the Municipality these developments have witness the

challenges which still need to be resolved namely:

(a)Soil conditions at Lekwa Municipality poses a great challenge if reinforced foundations are not used

to build houses.

(b)The outstanding finalisation of the level 1 accreditation application of the Municipality.

(c)Assessments still to be carried out on some of the old, dilapidated pre-1994 housing stock.

(d)Poor and shoddy workmanship by contractors appointed by the Department of Human Settlements

(e)Shortage of Municipal Building Inspectors to assist the Provincial Building Inspectors in terms of

quality assurance during the construction process as well as to give technical advice as and when

required.

(f)The illegal sale of RDP houses by the beneficiaries.

(g)The illegal sale of stands by those who benefitted during the formalisation of township extensions

(h)Illegal land invasion

(i)The eviction by farm owners of farm dwellers and employees prior consultation with the Municipality


58

(j)The inability of the Municipality to access the pockets of land owned by parastatals around

Municipality suitable for human settlements, which is not accessible.

(k)The process of deletion which has denied potential beneficiaries

(l)Some beneficiaries reluctant to allow the Municipality to demolish the old dilapidated houses after

the construction of new houses.

(m)Operating with limited resources, such as vehicles to effectively carry out the duties assigned to the

Division

T 3.5.1

Percentage of households with access to basic housing Year end Total households

(including in formal and informal settlements)

Households in formal settlements

Percentage of HHs in formal settlements

2010/2011 560000 350000 62,5%

2011/2012 654000 450000 68,8%

2012/2013 654000 500000 76,5%

2013/2014 684000 540000 78,9%

T 3.5.2


Housing Service Policy Objectives Taken From IDP Service Objectives Baseline Outline Service Targets Year 2013/2014

Target Actual

Service Indicators *Previous Year

(i) (ii) (iii) (iv)


Construction of quality and habitable housing units under the upgrading of informal settlements programme

Currently the backlog in respect of the informal dwellings in the formally proclaimed townships is estimated at 2421

279 housing units handed over to beneficiaries by the end of the 4th quarter

100% construction and completion of 279 housing units

269 housing units completed out of the 279 (10 units outstanding)

Rectification, Demolition and electrification of old housing rental units under the Rectification of Pre-1994 Housing Stock

Rectification, Demolition of 503 old housing rental stock units that were assessed by Messrs Cifu Consulting Engineers under the Rectification of Pre-1994 Housing Stock Programme

150 old housing units demolished and electricity reconnected to the new housing units completed by the end of the 2nd quarter

100% demolition of 150 old housing units as well as reconnection of electricity to the newly completed 150 housing units

0 out of 150 housing units demolished and reconnection of electricity to 150 units

Construction of quality and habitable housing units for the landless in Thuthukani under the Project-Linked Subsidy Programme

Currently the are 267 housing units completed under this project and the DoHS will appoint a contractor for the outstanding 33 housing units

33 housing units handed over to beneficiaries by the end of the 3rd quarter

100% construction and completion of 33 outstanding housing units

16 out of 33 units completed (17 outstanding)

Conversion of old public sector hostels into quality and habitable community residential units

currently there are 244 old public sector hostel dwellings to be converted into community residential units

Three double storey community residential units handed over to the municipality by the end of 3rd quarter

100% construction and completion of three double storey units

Three double storey community residential units completed (34 Community Residential units)


60

Development of Standerton Extension 8

Currently the township is in a green field and expectation is that by the end of July 2013 the project will commence with installation of Municipal engineering services

Provision of different housing typology to 4000 residents over the period of five years

Commence with the installation of municipal engineering services

water reticulation 80 % complete; sewer 80% complete, stormwater 63% complete; roads 30% complete

Provision of security of tenure

Currently there are 3242 RDP housing units constructed of which the DoHS is in the process of making title deeds for beneficiaries

Provision of title deeds to 3242 RDP housing units by the end of the 4th quarter

100% transfer of ownership and handover of title deeds for 3242 RDP units.

1805 title deeds prepared but not yet handed over to beneficiaries



Employees: Housing Services

Job Level

Year 2012/2013 Year 2013/2014



No. No. No. No. %

0 - 3 2 2 2 0 0%

4 - 6 1 1 1 0 0%

7 - 9 3 3 3 2 67%

10 - 12 2 4 2 2 50%

13 - 15 0 0 0 0 #DIV/0!

16 - 18 0 0 0 0 #DIV/0!

19 - 20 0 0 0 0 #DIV/0!

Total 8 10 8 4 40%

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. 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. T 3.5.4

Capital Expenditure 2013/2014: Housing Services

R' 000

Capital Projects

2013/2014


Actual Expenditure Variance from original

budget

Total Project Value

Total All 102 321 647,00 - 52 728 592,22 -94% 102 321 647,00

Project A 21 113 011,67 - 14 972 930,44 -41% 21 113 011,67

Project B 20 134 158,80 - 19 085 820,16 -5% 20 134 158,80

Project C 3 151 498,05 - 2 448 713,14 -29% 3 151 498,05

Project D 1 237 128,48 1 221 128,48 -1% 1 237 128,48

Project E 56 685 850,00 - 15 000 000,00 -278% 56 685 850,00



62

COMMENT ON THE PERFORMANCE OF THE HOUSING SERVICE OVERALL:

Since the funding of housing is still a competency of the Provincial Department of Human Settlements,

the Municipality is not in a position to fast track these projects but engagements will be made to make

application for level 1 accreditation which may assist in the expeditious completion of the housing

projects. In terms of the successes achieved for the year it can be attributed to the following:

(a) being able to log on to the Housing Subsidy Portal, enabling Housing Officials to access

information regarding beneficiaries’ applications status, if approved or declined and the reasons

thereof;

(b) The speedy provision of beneficiaries when housing units are allocated to the Municipality

(c) The process of registering beneficiaries for security of tenure

(d) Appointment of a Developer by the Provincial DoHS for the construction of 500 RDP housing units

as well as servicing of sites in Standerton Extension 8 under the Integrated Human Settlements

Development.

T 3.5.7

3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT

INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT

Delete Directive note once comment is complete – Provide brief introductory comments on the

progress being made to achieve Free Basic Services and summarise your municipality’s policies

towards indigent support.

T 3.6.1


63

–

10

20

30

40

50

60

70

80

90

100


Ho

use

ho

lds

('00

0)Free Basic Household Services

Water (6 kilolitres per household per month)

Sanitation (free minimum level service)

Electricity/other energy (50kwh per household per month)

Refuse (removed at least once a week)

Data sourced from MBRR A10

T 3.6.2

Total Access % Access % Access % Access %

Year -2 100,000 18,000 12,000 67% 10,000 56% 13,000 72% 7,000 39%

Year -1 103,000 18,500 13,000 70% 11,000 59% 14,500 78% 8,000 43%

Year 0 105,000 19,000 15,000 79% 12,000 63% 16,100 85% 9,000 47%

T 3.6.3

Free Basic Refuse

Households earning less than R1,100 per month

Number of households

Free Basic Services To Low Income Households

Total Free Basic Water Free Basic Sanitation Free Basic Electricity

Year -1

Actual Budget Adjustment

Budget

Actual Variance to

Budget

Water 200 244 250 248 2%

Waste Water (Sanitation) 220 240 250 245 2%

Electricity 100 120 130 135 11%

Waste Management (Solid Waste) 105 110 120 125 12%

Total 625 714 750 753 5%

Financial Performance Year 0: Cost to Municipality of Free Basic Services Delivered

Services Delivered Year 0

T 3.6.4


COMMENT ON FREE BASIC SERVICES AND INDIGENT SUPPORT:

Delete Directive note once comment is completed – Comment on the support given to low earners

and in particular those affected by shortfalls in basic service provision. Provide detail of indigent

policy, expenditure and grants received in year 0 and explain how these have been translated into

programmes designed to improve levels of self sufficiency.

T 3.6.6

COMPONENT B: ROAD TRANSPORT

This component includes: roads; transport; and waste water (stormwater drainage).

INTRODUCTION TO ROAD TRANSPORT

Delete Directive note once comment is completed - Provide brief introductory comments on the

strategy, priorities and provision regarding road development and maintenance and transport including

public bus services.

T 3.7

3.7 ROADS

INTRODUCTION TO ROADS

Delete Directive note once comment is completed – Explain in brief your Roads strategy, the steps

taken towards the implementation of the strategy and discuss the major successes achieved and

challenges faced in year 0 (include your top 3 service delivery priorities and the impact you have had

on them during the year). Set out measures taken to improve performance and the major efficiencies

achieved by your service during the year. Refer to support given to those communities that are living in

poverty. Give the name and extent of service provision of any municipal entity(ies) responsible for

rendering Roads Services within the municipality.

T 3.7.1

Gravel Road Infrastructure Kilometers

Total gravel roads New gravel roads constructed

Gravel roads upgraded to tar

Gravel roads graded/maintained

2013/2014 185 0 0 11

T 3.7.2


65

Total tarred roads New tar roadsExisting tar roads

re-tarred

Existing tar roads

re-sheeted

Tar roads

maintained

Year -2 85 10 23 18 100

Year -1 98 14 25 15 120

Year 0 114 20 30 25 140

T 3.7.3

Tarred Road Infrastructure

Kilometers

New Gravel - Tar Maintained New Re-worked Maintained

Year -2 450000 1700000 250000 1950000 1050000 400000

Year -1 475000 1800000 260000 2020000 1220000 500000

Year 0 490000 1900000 280000 2300000 1300000 550000

T 3.7.4

Cost of Construction/Maintenance

Gravel Tar

R' 000

0

500000

1000000

1500000

2000000

2500000


Ran

d V

alu

e

Road Infrastructure costs

Gravel New

Gravel - Tar

Gravel - Maintained

Tar - New

Tar Re-worked

Tar Maintained

T 3.7.5


Road Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014

Target Actual

Service Indicators

(i) (ii)


168 km of tarred or Paved finished roads in Lekwa Municipality are for proper transportation and accessibility to local residents

Pothole patch and cleaning of streets to be well drivable without obstruction

Patching of 520m² of potholes around Lekwa Municipality

880m² of potholes patched around Lekwa Municipality

185 km of gravel roads in Lekwa Municipality are for transportation and accessibility to local residents

Regravelling and blading of gravel roads Regravelling of 8km in various Area, Blading of 15km fire breaks

Regravelling of 11,3km of roads in various Lekwa areas, Blading of 18km of fire breaks

170km of Storm water drainage in Lekwa Municipality are used to collect all surface water to avoid flooding

Construction and Cleaning of Stormwater structures Maintenance of 30km of Stormwater structures in various areas of the Municipality

31km stormwater structures cleaned and maintained

Implementation of infrastructure maintenance plan for improvement on Municipal assets

Maintenance of municipal buildings: painting and General maintenance

Renovation of 4 Municipal Halls, Maintenance of 20 Municipal Buildings

Various municipal building renovated and maintained

Registration of Municipal borrow pit in Morgenzon and Standerton

Municipal borrowpit to access gravel for maintenance of all gravel rodas and for upgrading of gravel roads

Registration of Municipal borrowpit in Morgenzon and in Standerton

Test results received from Dept. Minerals and Energy on assessment and registration process. Final registrations not yet complete.



Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Road Services

Job Level

Year 0


established and funded in the approved budget or adjustments budget. 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. T3.7.7

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.7.8

Financial Performance Year 0: Road Services

R'000

Details

Year 0



Capital Expenditure Year 2013/2014: Road Services

R' 000

Capital Projects

2013/2014


Actual Expenditure

Variance from

original budget

Total Project Value

Total All 7200 0 7200 0%

Re-construction of roads within Lekwa Municipality phase 3 (Nelson Mandela Road)

6000 0 6000 0% 280

Construction and upgrade of storm water network phase 3

1200 0 1200 0% 150


68


COMMENT ON THE PERFORMANCE OF ROADS OVERALL:







expected future variations). Where provincial roads have been delegated to your municipality ensure

that this is presented as an additional major issue in this section.

T 3.7.10

3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION)

INTRODUCTION TO TRANSPORT

INTRODUCTION TO LICENSING

The License Section function mainly ensures the registering and licensing of vehicles and drivers for

the purpose of maintaining order and legality and to promote road safety in general.

CHALLENGES FACED BY THIS SECTION

Insufficient personnel (Examiners)-The demand for driving licenses versus manpower to test.

The current ratio is 3:5, with the suspension of one of the examiners dropped it to 2:5. The workable

ratio is supposed to be 5:5

(Cashiers)- The best practice module cannot be implemented. The best

practice human resource requirements are to have an enquiries clerk and a verification clerk of which

is non-existent within the license section.

Insufficient office space – this cause the cashiers to be exposed to security hazards eg.

Robberies. No robberies took place, but the public move behind the cashiers to gain excess to the

supervisors’ office for enquiries, thus exposing ourselves to this security hazard.

Proposed that the Traffic Section be moved to the old Volskas building-this will create amble space.

The opening of the new private vehicle testing station:- The intake on applications for

roadworthiness have dropped drastically and it’s having a negative revenue impact on our section.

T 3.8.1


69

Employees: Licensing Services

Job Level

2012/2013 2013/2014



No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 4 6 4 2 25%

7 - 9 1 1 1 0 0%

10 - 12 9 10 9 1

13 - 15 0 0 0 0 0%

16 - 18 2 2 2 0 0%

19 - 20

Total 17 20 17 3 15%

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. 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. T3.8.4


Licensing Services Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014

Target Actual

Service Indicators

(i) (ii)

Service Objective xxx Regulate and control hawkers No of inspections conducted on

hawkers 24 inspections 21 inspections

For the purpose of maintaining order and legality No of vehicles registered and licensed

No of vehicles registered and licensed (24 000 Standerton; 2 000 Morgenzon)

35 563 Standerton 3818 Morgenzon Vehicles registered and licensed

Maintain order in the legality of vehicles No of vehicles tested for roadworthiness

3000 vehicles tested for roadworthiness

2867 vehicles tested for roadworthiness

Ensure learner drivers are registered for the purpose of maintaining order and legality

No of applicants tested for learners

No of applicants tested for learners (3420 Standerton; 1760 Morgenzon)

2371 Standerton 1689 Morgenzon applicants tested for learners licenses

Ensure drivers are registered for the purpose of maintaining order and legality

No of applicants tested for driving license

No of applicants tested for driving license

2866 applicants tested for drivers licenses



COMMENT ON THE PERFORMANCE OF TRANSPORT OVERALL:


projects and explain the variations from budget for net operating and capital expenditure. Confirm your

year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not

then state how you intend to rectify the matter. Explain the priority of the four largest capital projects

and explain variances from budget for net operating and capital expenditure. Also explain any likely



T 3.8.7

3.9 WASTE WATER (STORMWATER DRAINAGE)

INTRODUCTION TO STORMWATER DRAINAGE

Delete Directive note once comment is completed – Provide brief introductory comments on the

progress being made to improve stormwater drainage and discuss the major successes achieved and

challenges faced in year 0 (include your top 3 service delivery priorities and the impact you have had

on them during the year). Set out measures taken to improve performance and the major efficiencies

achieved by your service during the year. Refer to support given to informal settlement and rural

development. Refer to support given to those communities that are living in poverty. Give the name

and extent of service provision of any municipal entity(ies) responsible for rendering Stormwater

Drainage Services within the municipality.

T 3.9.1

Total Stormwater

measures

New stormwater

measures

Stormwater measures

upgraded

Stormwater measures

maintained

Year -2 145 15 10 100

Year -1 160 20 12 120

Year 0 166 25 14 140

T 3.9.2

Stormwater Infrastructure

Kilometers


72

New Upgraded Maintained

Year -2 1,700,000 600,000 280,000

Year -1 1,800,000 700,000 330,000

Year 0 1,900,000 900,000 420,000

T 3.9.3

Cost of Construction/Maintenance

Stormwater Measures

R' 000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000


Stormwater infrastructure costs

New Upgraded Maintained

T 3.9.4


Budget Adjustment

Budget

Actual

Expenditure

Variance from

original

budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.9.8

Capital Expenditure Year 0: Stormwater Services

R' 000

Capital Projects

Year 0

Total project value represents the estimated cost of the project on approval by council (including past

and future expenditure as appropriate.

COMMENT ON THE PERFORMANCE OF STORMWATER DRAINAGE OVERALL:

Delete Directive note once comment is completed – Explain the priority of the four largest capital







T3.9.9

COMPONENT C: PLANNING AND DEVELOPMENT

This component includes: planning; and local economic development.

INTRODUCTION TO PLANNING AND DEVELOPMENT

Delete Directive note once comment is completed - Provide brief overview of the opportunities and

challenges in the fields of economic development and physical planning field for your municipality.

T 3.10


74

3.10 PLANNING

INTRODUCTION TO PLANNING

Delete Directive note once comment is completed - Set out in brief the main elements of your

planning strategies (and make particular reference to achievements and challenges in year 0); Town

Planning; and building regulation and enforcement). Set out your top 3 service delivery priorities and

the impact you have had on them during the year. Set out measures taken to improve performance

and the major efficiencies achieved by your service during the year. Refer to support given to those

communities that are living in poverty.

T 3.10.1

Year -1 Year 0 Year -1 Year 0 Year -1 Year 0

Planning application received

Determination made in year of receipt

Determination made in following year

Applications withdrawn

Applications outstanding at year end

T 3.10.2

Applications for Land Use Development

Formalisation of Townships Rezoning Built EnviromentDetail


Land and Planning Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014

Target Actual

Service Indicators

(i) (ii)


Enforcement of Town Planning Scheme, SDF & National Building Regulations

Approve compliant building plans, complete inspections & Issue letters of contravention

Approve 90 building plans, Complete 360 inspections, issue 70 letters regarding contraventions

Approved143 building plans, Completed 508 inspections, issued 51 letters regarding contraventions

Correspondence attended to Reply to correspondence received - letters & Memo's

Reply to 20 letters from public & 24 replies via memo's to other Departments

Replied to 48 letters from public & replied to 33 via memo's to other Departments

Survey & pegging of formal (legal) stands in Lekwa

Eradicate encroachments onto private and Council Owned land

Correct 120 stands in lekwa Corrected 154 stands in Lekwa by re-pegging

Subdivision and consolodation of stands in Lekwa

Create a more compact town as depicted in the Development Facilitation Act.

Approve 16 applications Approved 17 applications

Land Use applications (Rezonings) Create a more compact town as depicted in the Development Facilitation Act. Compliance to Town Planning Scheme and SDF

Approve 16 applications Approved 17 applications



Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Planning Services

Job Level

Year 0




‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.10.4

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.10.5

Financial Performance Year 0: Planning Services R'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF PHYSICAL PLANNING OVERALL:








T 3.10.7


77

3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET

PLACES)

INTRODUCTION TO ECONOMIC DEVLOPMENT


economic development strategy and the contribution being made to the local economy in facilitating

job creation through by Local Economic Development Services in year 0 (include your top 3 service

delivery priorities and the impact you have had on them during the year). Set out measures taken to

improve performance and the major efficiencies achieved by your service during the year. Refer to

support given to those communities that are living in poverty. Give the name and extent of service

provision of any municipal entity(ies) responsible for rendering Housing Services within the

municipality.

T 3.11.1

Sector Year -2 Year -1 Year 0

Agric, forestry and fishing 2 1.5 1.5

Mining and quarrying 6 5 2

Manufacturing 56 58 63

Wholesale and retail trade 45 51 52

Finance, property, etc. 51 48 52

Govt, community and social services 23 25 25

Infrastructure services 34 38 41

Total 217 226.5 236.5

T 3.11.2

Economic Activity by Sector

R '000

Jobs

Year 1 Year -1 Year 0

No. No. No.

Agric, forestry and fishing 20,000 25,000 30,000

Mining and quarrying 400,000 435,000 372,000

Manufacturing 320,000 300,000 270,000

Wholesale and retail trade 190,000 200,000 210,000

Finance, property, etc. 275,000 255,000 235,000

Govt, community and social services 300,000 310,000 320,000

Infrastructure services 400,000 430,000 450,000

Total 1905000 1955000 1887000

T 3.11.3

Economic Employment by Sector

Sector

COMMENT ON LOCAL JOB OPPORTUNITIES:


78

Delete Directive note once comment is completed - Comment briefly on the short and longer term

prospects for economic growth and development referring to the above. Include in this section

references to Tourism and Market Places (including street traders)

T 3.11.4

Jobs created Jobs

lost/displaced by

other initiatives

Net total jobs

created in year

Method of validating jobs

created/lost

No. No. No.

Total (all initiatives)

Year -2

Year -1

Year 0

Initiative A (Year 0)

Initiative B (Year 0)

Initiative C (Year 0)

T 3.11.5

Jobs Created during Year 0 by LED Initiatives (Excluding EPWP projects)

Total Jobs created / Top 3

initiatives

EPWP Projects Jobs created through EPWP

projects

No. No.

Year -2 40 2,000

Year -1 50 2,900

Year 0 66 4,500

* - Extended Public Works Programme T 3.11.6

Job creation through EPWP* projects

Details


Local Economic Development Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014

Target Actual

Service Indicators

(i) (ii)

Service Objective xxx Profiling of all businesses # of reports generated from economic profiling of businesses 2 reports on the economic

profiling of businesses No reports on the economic profiling of businesses generated

To create a conducive environment for local economic growth

Revised LED Strategy for Vision 2030 Develop revised Vision 2030 LED Strategy

Not achieved

# of LED Forum meetings held Relaunch of LED Forum and 3 LED Forum meetings facilitated

LED Forum relaunched, 1 LED Forum meetings facilitated

# of reports on SMMEs and cooperatives registered on database

4 reports on SMME and cooperatives database registrations and updates annually

1 report on SMME and cooperatives database registrations and updates annually

# of reports on SMMEs and cooperatives trained 4 reports on SMMEs and cooperatives trained by end June 2014

Not achieved

% completion of LED project implemented from LED Strategy 100% completion of project implemented from LED Strategy

Not achieved



Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Local Economic Development Services

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.11.9

Financial Performance Year 0: Local Economic Development Services R'000

Details

Year 0



COMMENT ON LOCAL ECONOMIC DEVELOPMENT PERFORMANCE OVERALL:








T 3.11.11


81

COMPONENT D: COMMUNITY & SOCIAL SERVICES

This component includes: libraries and archives; museums arts and galleries; community halls;

cemeteries and crematoria; child care; aged care; social programmes, theatres.

INTRODUCTION TO COMMUNITY AND SOCIAL SERVICES

Delete Directive note once comment is completed – Provide brief introductory comments. Refer to

support given to those communities that are living in poverty.

T 3.52

3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES;

OTHER (THEATRES, ZOOS, ETC)

INTRODUCTION TO LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES

Delete Directive note once comment is completed – Provide brief introductory comments. Set out

your top 3 service delivery priorities and the impact you have had on them during the year. Explain the

measures taken to improve performance and the major efficiencies achieved by your service during

the year. Refer to support given to those communities that are living in poverty.

T3.12.1

SERVICE STATISTICS FOR LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES; COMMUNITY

FACILITIES; OTHER (THEATRES, ZOOS, ETC)

T 3.12.2


Environment, Sports and Recreation Services Service Objectives Outline Service Targets 2013/2014

Target Actual

Service Indicators

(i) (ii)

Service Objective xxx Provide and prepare burial sites # of burial sites prepared sites prepared for burials as

per applications received 810 sites prepared for burials

Clean and maintained cemeteries # cemeteries regularly cleaned and maintained 12 cemeteries cleaned and maintained

12 cemeteries cleaned and maintained

Clean and maintained parks and gardens # of parks and gardens maintained All parks and gardens cleaned and maintained

All parks and gardens cleaned and maintained

Clean and maintained sport and recreational facilities # of sport and recreation facilities cleaned and maintained

Clean and maintain 15 sport facilities and 7 recreational facilities

Clean and maintain 15 sport facilities and 7 recreational facilities



Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Libraries; Archives; Museums; Galleries; Community Facilities; Other

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.12.5

Financial Performance Year 0: Libraries; Archives; Museums; Galleries; Community Facilities; OtherR'000

Details

Year 0



Capital Expenditure Year 0: Libraries; Archives; Museums; Galleries; Community Facilities; Other

R' 000

Capital Projects

2013/2014


Actual Expenditure

Variance from

original budget

Total Project Value

Total All 11 300 000,00 - 11 300 000,00

-

Sporting Facilities (Sakhile Netball Courts, Mahala Park Netball, Basketball, Sakhiile Swimming Pool and Tennis Court. 3 300 000,00

- 3 300 000,00

- 3 300 000,00

Construction of Multi-Purpose Community Hall for Rooikoppen (Phase 1)

1 000 000,00 - 1 000 000,00

- 1 000 000,00


84

Construction of Multi-Purpose Community Hall for Rooikoppen (Phase 2) 7 000 000,00

- 7 000 000,00

- 7 000 000,00


COMMENT ON THE PERFORMANCE OF LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES;

COMMUNITY FACILITIES; OTHER (THEATRES, ZOOS, ETC) OVERALL:








T 3.12.7

3.13 CEMETORIES AND CREMATORIUMS

INTRODUCTION TO CEMETORIES & CREMATORIUMS





T 3.13.1

SERVICE STATISTICS FOR CEMETORIES & CREMATORIUMS

T 3.13.2


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Cemetories and Cremotoriums

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.13.5

Financial Performance Year 0: Cemetories and Crematoriums R'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF CEMETORIES & CREMATORIUMS OVERALL:








T 3.13.7


86

3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES

Issues related to child and aged care social programmes are part of the Intergovernmental Relations

service delivery objectives as dealt with under Chapter 2, Component B of this report.

COMPONENT E: ENVIRONMENTAL PROTECTION

This component includes: pollution control; biodiversity and landscape; and coastal protection.

INTRODUCTION TO ENVIRONMENTAL PROTECTION

Delete Directive note once comment is completed – Provide brief introductory comments.

T 3.14

3.15 POLLUTION CONTROL

INTRODUCTION TO POLLUTION CONTROL





T 3.15.1


COMMENT ON THE PERFORMANCE OF POLLUTION CONTROL OVERALL:








T 3.15.7

3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG.

COASTAL PROTECTION)

The Municipality does not have functions related to coastal protection.


COMPONENT F: HEALTH

This component includes: clinics; ambulance services; and health inspections.

3.17 CLINICS

INTRODUCTION TO CLINICS

The ambulance and primary health care is a competence of the Department of Health and such the

Municipality does not provide the said service.

Health inspections is the responsibility of the Gert Sibande District Municipality.

T 3.17.1


3.18 AMBULANCE SERVICES

INTRODUCTION TO AMBULANCE SERVICES

Ambulance services are the competence of the Department of Health.

T 3.18.1

3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION;

ETC

Health inspections is the competence of the Gert Sibande District Municipality.


COMPONENT G: SECURITY AND SAFETY

This component includes: police; fire; disaster management, licensing and control of animals, and

control of public nuisances, etc.

INTRODUCTION TO SECURITY & SAFETY


T 3.20

3.20 TRAFFIC LAW ENFORCEMENT

INTRODUCTION TO TRAFFIC LAW ENFORCEMENT





T 3.20.1

Traffic Law Enforcement Services

Details Year -1 Year 0 Year 1

Actual No. Estimate No. Actual No. Estimate No.

1 Number of road traffic accidents during the year

2 Number of by-law infringements attended

3 Number of traffic officers in the field on an average day

4 Number of traffic officers on duty on an average day

T 3.20.2

Delete Directive note once table is completed – the number of officers available is determined by

sampling the number of officers in the field and in offices and stations on the same day, sampling

different times of day and different days of the week throughout the year.

T 3.20.2.1


91


Police Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014

Target Actual

Service Indicators

(i) (ii)

Service Objective xxx To trace outstanding fines No. of Roadblocks 24 Roadblocks 10 Roadblocks

To maintain traffic law enforcement Tracing of warrants of arrest 40 Warrants of arrest traced

55 Warrants of arrest traced

To enforce law and safety of road users

Traffic Law enforcement 11 520 Tickets 4863 Tickets

Repair roadsigns and paint roads for safety

No. of roadsigns repaired and erected/road painted

Daily Daily

Escort funerals and school kids for safety

No. of funeral escorts/scholar patrol/abnormal loads

Per request and weekly

Per request and weekly

To keep record of cases written Capturing of sec 56 tickets Daily Daily

To keep record of infringements paid Capturing daily payments Daily Daily

To keep record of accidents captured Capturing of accidents reports/forms Daily Daily

To administer cases that must go to court

Management of court rolls As per court dates As per court dates



93


Job Level Year -1

Police Employees Posts Employees Vacancies (fulltime

equivalents)


total posts)

Administrators No. No. No. No. %

Chief Police Officer & Deputy

Other Police Officers

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Police Officers

Year 0

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June.

*Posts must be established and funded in the approved budget or adjustments budget. 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. T 3.20.4

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Police Officers

Other employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.20.5

Financial Performance Year 0: PoliceR'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF TRAFFIC LAW ENFOREMENT OVERALL:








T 3.20.7


95

3.21 FIRE

INTRODUCTION TO FIRE SERVICES





T 3.21.1

Fire and Emergency Rescue Services

Details 2013/2014

Actual No.

1 Total fires attended in the year 92

2 Lives lost as a result of fires 5

3 Veld fires attended to 285

4 Motor Vehicles Accidents attended to 111

5 Lives lost as a result of motor vehicle accidents 14

6 Total of other incidents attended in the year 236

7 Fire Prevention and Safety Inspections 52

8 Average turnout time - urban areas 08 minutes

9 Average turnout time - rural areas 15-20 minutes

10 Fire fighters in post at year end 67 positions

11 Total fire appliances at year end 12 Vehicles

12 Average number of appliance off the road during the year 12 Vehicles

T 3.21.2

Concerning T3.21.2

Delete Directive note once table is completed - Average turnout times are determined by logging

the times taken to reach an emergency incident from receipt of call and analysing the record. Average

Fire appliances off the road. The average number of busses off the road is obtained by sampling the

number off the road on different days at different times.

T 3.21.2.1


Service Objectives Year 1

Target Actual Actual

Service Indicators *Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)

Turnout time compared to National

guidelines

% turn out within guidelines (total number of

turn outs)

T0% within guidelines A0% within guidelines

or x if x is larger

T1% within guidelines

or A0% if that is larger

70% within guidelines

or A0% if that is larger

A1% within guidelines 75% within guidelines

or A1 if that is larger;

(xxxxx emergency

turn outs in year)



(xxxxx emergency

turn outs in year)



(xxxxx emergency

turn outs in year)

T 3.21.3


Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are

'universal municipal 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 in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the

reduction of performance management arrangement by municipalities in which IDPs play a key role.

Fire Service Policy Objectives Taken From IDP

Outline Service Targets Year -1 Year 0 Year 3

Target Target


Job Level Year -1

Fire Fighters Employees Posts Employees Vacancies (fulltime

equivalents)


total posts)

Administrators No. No. No. No. %

Chief Fire Officer & Deputy

Other Fire Officers

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Fire Services

Year 0

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in

the approved budget or adjustments budget. 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. T 3.21.4

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Fire fighters

Other employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.21.5

Financial Performance Year 0: Fire Services

R'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF FIRE SERVICES OVERALL:








T 3.21.7


98

3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL,

CONTROL OF PUBLIC NUISANCES AND OTHER)

INTRODUCTION TO DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL

OF PUBLIC NUISANCES, ETC





T 3.22.1

SERVICE STATISTICS FOR DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL,

CONTROL OF PUBLIC NUISANCES, ETC

T 3.22.2


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Disater Management, Animal Licencing and Control, Control of Public Nuisances, Etc

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.22.5

Financial Performance Year 0: Disater Management, Animal Licencing and Control, Control of Public Nuisances, EtcR'000

Details

Year 0




100

Budget Adjustment

Budget

Actual

Expenditure

Variance from

original budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.22.6

Capital Expenditure Year 0: Disater Management, Animal Licencing and Control, Control of Public

Nuisances, Etc

R' 000

Capital Projects

Year 0

Total project value represents the estimated cost of the project on approval by council (including past and

future expenditure as appropriate.

COMMENT ON THE PERFORMANCE OF DISASTER MANAGEMENT, ANIMAL LICENCING AND

CONTROL OF PUBLIC NUISANCES, ETC OVERALL:








T 3.22.7

COMPONENT H: SPORT AND RECREATION

This component includes: community parks; sports fields; sports halls; stadiums; swimming pools; and

camp sites.

INTRODUCTION TO SPORT AND RECREATION





T 3.23


101

3.23 SPORT AND RECREATION

SERVICE STATISTICS FOR SPORT AND RECREATION

T 3.23.1


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Sport and Recreation

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.23.4

Financial Performance Year 0: Sport and Recreation

R'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF SPORT AND RECREATION OVERALL:








T 3.23.6


103

COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES

This component includes: corporate policy offices, financial services, human resource services, ICT

services, property services.

INTRODUCTION TO CORPORATE POLICY OFFICES, Etc


T 3.24

3.24 EXECUTIVE AND COUNCIL

This component includes: Executive office (mayor; councilors; and municipal manager).

INTRODUCTION TO EXECUTIVE AND COUNCIL




the year.

T 3.24.1

SERVICE STATISTICS FOR THE EXECUTIVE AND COUNCIL

T 3.69.2






T 3.24.3


Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal 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 in the IDP must be

fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs

play a key role.

The Executive and Council Policy Objectives Taken From IDP


Target Target


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: The Executive and Council

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.24.5

Financial Performance Year 0: The Executive and CouncilR'000

Details

Year 0



Budget Adjustment

Budget

Actual

Expenditure

Variance from

original budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.24.6

Capital Expenditure Year 0: The Executive and Council

R' 000

Capital Projects

Year 0

Total project value represents the estimated cost of the project on approval by council (including past and

future expenditure as appropriate.


106

COMMENT ON THE PERFORMANCE OF THE EXECUTIVE AND COUNCIL:








T 3.24.7

3.25 FINANCIAL SERVICES

INTRODUCTION FINANCIAL SERVICES

Delete Directive note once comment is complete – Provide brief introductory comments. Set out

priorities and the impact you have had on them during the year. Explain the measures taken to

improve performance and the major efficiencies achieved by financial service during the year.

T 3.25.1

Actual for

accounts

billed in

year

Proportion

of accounts

value billed

that were

collected in

the year %

Billed in

Year

Actual for

accounts

billed in year

Proportion

of accounts

value billed

that were

collected %

Estmated

outturn for

accounts

billed in year

Estimated

Proportion

of accounts

billed that

were

collected %

Property Rates

Electricity - B

Electricity - C

Water - B

Water - C

Sanitation

Refuse

Other

T 3.25.2

B- Basic; C= Consumption. See chapter 6 for the Auditor General's rating of the quality of the financial

Accounts and the systems behind them.

Year 1

R' 000

Debt Recovery

Details of the

types of account

raised and

recovered

Year -1 Year 0


107

Concerning T 3.25.2

Delete Directive note once table is completed – The proportion of account value billed is calculated

by taking the total value of the year’s revenues collected against the bills raised in the year by the

year’s billed revenues.

T 3.25.2.1






Increase in speed of payment of tariffs, tax demands, invoices No more than x% of creditors raised (in Rand

value) during the year outstanding (o/s) at year

end

No more than T0% of

current yr creditors

o/s at yr end

No more than A0% of


o/s at yr end

No more than T1% of


o/s at yr end

No more than T1% of


o/s at yr end

No more than A1% of


o/s at yr end

No more than T2% of


o/s at yr end

No more than T5% of

current yr creditors o/s

at yr end

No more than T5% of

current yr creditors o/s

at yr end

Reducing the number of invoices raised by increasing

advance payment for services rendered (A project requiring

partipation by all departments but let by the central finance

department)

x% reduction in number of invoices raised over the

previous year's target

T0% reduction in

invoices raised; target

limit of invoices

A0% reduction in


limit of invoices

T1% reduction in


limit of invoices

T1% reduction in


limit of invoices

A1% reduction in


limit of invoices

T2% reduction in


limit of invoices

T5% reduction in


limit of invoices

T5% reduction in


limit of invoices

Improving speed of legal measures to recover revenues Commence legal proceedings for recovery of

revenues within 4 weeks of the due date

Legal proceeding

within 4 weeks of due

date

Legal proceeding


date

Legal proceeding


date

Legal proceeding


date

Legal proceeding


date

% of legal proceeding

commenced within 4

weeks of due date


commenced within 4

weeks of due date


commenced within 4

weeks of due date

T 3.25.3


Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal 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 in the IDP must be fundable

within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.

Financial Service Policy Objectives Taken From IDP

Outline Service Targets Year 0 Year 1 Year 3

Target Target


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Financial Services

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.25.5

Financial Performance Year 0: Financial ServicesR'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF FINANCIAL SERVICES OVERALL:








T 3.25.7

3.26 HUMAN RESOURCE SERVICES


110

INTRODUCTION TO HUMAN RESOURCE SERVICES

Delete Directive note once comment is complete – Provide brief introductory comments. Set out


improve performance and the major efficiencies achieved by HR service during the year.

T 3.26.1

SERVICE STATISTICS FOR HUMAN RESOURCE SERVICES

T 3.26.2






T 3.25.3


Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal

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 in the

IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by

municipalities in which IDPs play a key role.

Human Resource Services Policy Objectives Taken From IDP


Target Target


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Human Resource Services

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.26.5

Financial Performance Year 0: Human Resource ServicesR'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF HUMAN RESOURCE SERVICES OVERALL:








T 3.26.7


113

3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES

This component includes: Information and Communication Technology (ICT) services.

INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES



improve performance and the major efficiencies achieved by ICT service during the year.

T 3.27.1

SERVICE STATISTICS FOR ICT SERVICES

T 3.27.2


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: ICT Services

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.27.5

Financial Performance Year 0: ICT Services R'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF ICT SERVICES OVERALL:








T3.27.7


115

3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES

This component includes: property; legal; risk management and procurement services.

INTRODUCTION TO PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES



improve performance and the major efficiencies achieved by Property, legal, risk management and

procurement services during the year.

T3.28.1

SERVICE STATISTICS FOR PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT

SERVICES

T 3.28.2


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Property; Legal; Risk Management; and Procurement Services

Job Level

Year 0





Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.28.5

Financial Performance Year 0: Property; Legal; Risk Management and Procurement ServicesR'000

Details

Year 0



COMMENT ON THE PERFORMANCE OF PROPERTY SERVICES OVERALL:








T 3.28.7


117

COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD

The Annual Performance Report as submitted seeks to give an overview of its performance against

predetermined strategic objectives, as progress is reviewed and to be audited based on service

delivery projections and targets for the period 1 July 2013 to 30 June 2014.

Every effort has been made to ensure that the report on non-financial performance information is

reported on as accurately as possible to give a true reflection on achievements on targets that were

set for the year under review.

The audit of predetermined objectives can be regarded as an annual audit of reported actual

performance against set predetermined objectives of the Municipality to provide assurance to Council,

members of the public and other relevant stakeholders that the “actual performance reported” is useful

and reliable. Reporting on performance information is essential as it allows the public, oversight and

governance structures to focus its attention on whether public institutions such as municipalities are

delivering services as required and planned, by comparing their performance against their budgets and

strategic plans.

The objective of an audit of predetermined objectives is to enable the Auditor-General to conclude

whether the reported performance against predetermined objectives is useful and reliable in all

material respects, based on predetermined audit criteria. The annual audit of predetermined

objectives against predetermined objectives is executed as an integral part of the annual regularity

audit, to confirm compliance with applicable laws and regulations as well as the usefulness and

reliability of the reported performance information to be published as part of the annual report of the

Municipality.

Through the auditing of performance of predetermined objectives, the independent audit of measures

is to ensure the economical procurement and efficient and effective utilisation of resources and key

concepts to this are:

1. Economy: for the procurement of resources of the right quality in the right quantities at

the right time and place at the lowest possible cost;

2. Efficiency: To achieve the optimal relationship between the output of goods, services or

results and the resources used to produce them;

3. Effectiveness: To achieve policy objectives, operational goals and other intended effects.

This is all in an attempt to strengthen democracy by enabling oversight, accountability and good

governance in the public sector through the audit of predetermined objectives and to then report on the

findings.

Every municipality and municipal entity must prepare and adopt an annual report for each financial

year in accordance with the Local Government: Municipal Finance Management Act, Act 56 of

2003(MFMA) and the Local Government: Municipal Systems Act, Act 32 of 2000 (MSA) as amended.

Section 46 of the MSA provides that an annual performance report must be submitted to the municipal

council. It is against this backdrop that the 2013/2014 Annual Performance Report of Lekwa Local

Municipality was submitted in terms of section 46 (1) and (2) of the MSA, as amended as well as

National Treasury MFMA Circular 11 on annual reporting. This report covers the performance

information from 01 July 2013 to 30 June 2014 and focuses on the operationalization and


118

implementation of the Service Delivery Budget and Implementation Plan (SDBIP), in relation to the

objectives as encapsulated in the Municipality’s 2013/2014 Integrated Development and Plan (IDP).

This report seeks to report and reflect on actual performance of the Municipality as measured against

the performance indicators and targets as contained in its approved Service Delivery and Budget

Implementation Plan (SDBIP) for 2013/2014. The report outlines the Municipality’s performance in

line with the five (5) National Strategic Key Performance Areas (KPAs) for local government, which

are:

Basic Service Delivery

Municipal Organisational Transformation and Development

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation.

The report further reflects the Municipality’s Key Performance Indicators (KPIs) per KPA. Each KPA

have Municipal Key Focus Areas (KFA’s) which were developed to focus the Municipality on its

development initiatives in a more coherent and organised manner.

This Annual Performance Report has been compiled in compliance with the requirements of section 46

(1) of the Local Government: Municipal Systems Act, 2000; which stipulates the following:

“(1) A municipality must prepare for each financial year a performance report reflecting—

(a) the performance of the Municipality and each external service provider during that financial year;

(b) a comparison of the performance referred to in paragraph (a) with targets set for performance in

the previous financial year; and

(c) measures taken to improve performance.”

In addition, Regulation 7 (1) of the Local Government: Municipal Planning and Performance

Management Regulations, 2001 states that “A Municipality’s Performance Management System entails

a framework that describes and represents how the municipality’s cycle and processes of performance

planning, monitoring, measurement, review, reporting and improvement will be conducted, organised

and managed, including determining the roles of the different role players.”

Performance management is not only relevant to the organisation as a whole, but also to the

individuals employed in the organisation as well as the external service providers and municipal

entities. The Performance Management System (PMS) Framework as adopted by the Municipality

inter alia, reflects the linkage between the IDP, Budget, SDBIP and individual performance.

During the 2012/2013 year the Municipality approved a position of Manager responsible for

performance management, of which an incumbent was appointed to the position with effect from 1

November 2012. Prior to this, the Municipality had made attempts to implement performance

management with the assistance of consultants, which did not yield much positive results.

The PMS function is located in the Office of the Municipal Manager and the PMS unit still needs to be

beefed up. The key focus of the unit is to coordinate organisational performance management related

processes. Currently a manual performance management system is operational within the

Municipality.


119

The IDP was developed for 2012 - 2016 and was reviewed for the 2013/2014 financial year during

November 2012, tabled to Council in March 2013 and finally approved on 28 May 2013. The

2013/2014 SDBIP was also thereafter approved by the Executive Mayor, which formed the basis for

planning and reporting on performance.

For the 2012/2013 financial year the Municipality was faced with the situation that it only had an

appointed Municipal Manager, Mr L B Tshabalala with effect from August 2012. To strengthen the top

management structure, the following senior managers were subsequently appointed:

JOB TITLE NAME EMPLOYMENT CONTRACT TERM

Executive Manager: Development

and Planning

Mrs. T S Matladi 2 September 2013 – 31 August 2018

Executive Manager: Technical

Services

Mr. T D Gogwane 2 September 2013 – 31 August 2018

Executive Manager: Corporate

Services

Mr. S S Nkosi 2 January 2014 – 01 January 2019

Chief Financial Officer Mr. E C Le Roux 13 January 2014 – 12 January 2019

Performance agreements were also developed and signed after each appointment, by the Municipal

Manager and each of the Executive Managers, as required by the Municipal Performance Regulations,

2006.

Quarterly performance reports with supporting evidence were prepared by managers directly

accountable to the Municipal Manager. These quarterly performance reports were also objectively and

independently audited by the Internal Audit unit to verify and confirm performance information as

reflected in the reports.

As per the provisions of Regulation 14(2) (c), the Municipality utilised its audit committee as

established, as the Performance Audit Committee. The following are dates on which the committee

met:

AUDIT COMMITTEE MEMBERS ATTENDANCE

Meeting Dates A C Keyser D W Prenzler

2013-08-13 √ √

2013-08-23 √ √

2013-12-04 √ √

2014-02-21 √ √

2014-03-05 √ √

2014-04-14 √ √

With the expiry of the term of the current Audit Committee members, Council, during its Council

Meeting held on 2014-04-25, per Resolution A58, appointed the following members to serve both as

Audit and Performance Audit Committee:

(a) Mr AC Keyser (Chairperson);

(b) Mr N Balkrishen;

(c) Mr Z L Fihlani; and

(d) Ms A M M Badimo.


120

For the 2012/2013 financial year, with only the Municipal Manager appointed in terms of section 56 of

the Local Government: Municipal Systems Act and in accordance with the legislative requirements of

Regulation 27 (4) of 2001, the annual performance evaluation of the Municipal Manager took place on

15 January 2014.

The Evaluation Panel was constituted as follows:

The Executive Mayor, Councillor C M Morajane

The Chairperson of the Audit Committee: Mr A C Keyser

Member of the Mayoral Committee: Councillor B G Sekhonde

The Executive Mayor of Chief Albert Luthuli Local Municipality: Councillor B P Shiba

Ward Committee Member: Mr M A J Khubeka

The Evaluation Panel allowed the Municipal Manager to briefly outline the process for the compilation

and presentation of his 2012/2013 annual performance scorecard, with an accompanying portfolio of

evidence, and responded to issues raised by the Panel in relation to service delivery matters and

capital project roll-overs as challenges experienced in the year being assessed.

The Evaluation Panel’s scores were aggregated with a resultant score of 87% versus the Municipal

Manager’s own score of 94%. In line with section 34 (3) of the Regulations of 2006, the outcome of

the Evaluation Panel was also forwarded to the MEC responsible for local government in the province.

The annual assessments of performance of managers directly reporting to the MM as well as the MM’s

performance for the 2013/2014 financial year is still to be scheduled to be conducted by the duly

constituted performance evaluation panels as required by the Performance Regulations.

In respect of the 2012/2013 Annual Report, the Council tasked the Municipal Public Accounts

Committee (MPAC) to exercise its oversight role in this regard. The MPAC met as follows to deal with

the 2012/2013 Annual Report:

MUNICIPAL PUBLIC ACCOUNTS COMMITTEE (MPAC)

MEMBERS S M Zacarias

(Chairperson)

N Z E

Sitshoni

M S

Khumalo

S S

Mosia

A S

Ngwenya

F

Sarang

P T

Schnetler

J J van

der

Wath

S S

Gumede

POLITICAL

PARTY ANC ANC ANC ANC ANC ANC DA DA PAC

GENDER F F F M M F M M M

DATES AND ATTENDANCE OF MPAC MEETINGS

2014-02-13 √ √ √ √ X √ √ √ √

2014-02-20 √ √ A √ X √ √ √ √

2014-03-13 √ √ √ √ √ A √ √ A

2014-03-18 √ √ √ √ A A √ √ X

Legend: √=Present; A = Absent with Apology; X= Absent without Apology


121

The 2012/2013 Annual Report was tabled to Council on 24 January 2014. After the meeting referred

to above, the MPAC submitted its Oversight Report to Council on 24 March 2014. Council resolved as

follows per Council Resolution A47:

“(1) That the report of the Municipal Public Accounts Committee in respect of the Oversight Report

on the 2012/2013 Annual Report BE NOTED;

(2) That the Oversight Report on the 2012/2013 Annual Report as prepared and considered by

the Municipal Public Accounts Committee (MPAC) during its meetings held on 2014-02-13,

2014-02-20, 2014-03-13 and 2014-03-18, including the following BE NOTED:

(a) that up until the MPAC meeting on 2014-03-18 during which meeting the final revised

Annual Report was considered, it was noted that the following components were still

outstanding:

(i) Cemeteries and crematoriums;

(ii) Fire and Disaster Services;

(iii) Sports and Recreation;

(b) that for the 2011/2012 Annual Report the same divisions had to be summoned to

submit outstanding information and in spite of these previous engagements and

commitments to comply and submit on time, it is the same divisions who once again

neglected to comply;

(c) the Chief Financial Officer was engaged during the MPAC meeting on 2014-03-18 to

request verification of information contained in Note 43 of the Annual Financial

Statements relating to additional disclosures on Councillors’ arrear consumer

accounts, as the information contained therein is not correct in all respects;

(3) That Council, having fully considered the revised Annual Report of Lekwa Local Municipality

for the 2012/2013 financial year and representations thereon and the Oversight Report for the

2012/2013 Financial Year, the 2012/2013 Annual Report BE APPROVED with reservations

due to the reasons stated in (2) (a) – (c) above;

(4) That the Oversight Report BE MADE PUBLIC in accordance with Section 129 (3) of the

Municipal Finance Management Act, Act No 56 of 2003;

(5) That the Oversight Report BE SUBMITTED to the Mpumalanga Provincial Legislature in

accordance with Section 132 (2) of the Municipal Finance Management Act, Act No 56 of

2003;

(6) That the Municipal Public Accounts Committee continue to MONITOR AND EVALUATE as

part of its oversight role, every Department in respect of service delivery issues and other

internal processes cited by the Auditor-General;


122

(7) That the Accounting Officer ADVICES the Council on what remedial action taken against

departments that failed to submit the annual report.”

The 2013/2014 annual performance report has been prepared to report on the Organisational

Performance Scorecard (SDBIP) of the Municipality. This report was also submitted in line with

section 126 (1) (a) of the MFMA, within two months after the end of the financial year to which the

statements relate, to the Auditor-General for auditing together with the Draft 2013/2014 Annual

Financial Statements.

This draft annual performance report, once finalized and audited will be incorporated into the

2013/2014 Annual Report, as provided for by section 121 (3) (c) which stipulates that the annual report

inter alia must also include the audited Annual Performance Report of the Municipality as prepared in

terms of section 46 of the MSA. The annual report will also include the audited Annual Financial

Statements as well as the Auditor-General’s Report on both the Annual Financial Statements and

Performance Information for the financial year being audited.

The organisational annual performance scorecard for the 2013/2014 year reflected on the Municipal

SDBIP per KPA as follows:

Basic Service Delivery

Municipal Transformation and Organisational Development

Local Economic Development

Municipal Financial Viability and Management

Good Governance and Public Participation

The performance information reports related to achievements for the financial year under review as

well as reflecting corrective measures to be taken to improve in areas of under achievement.

This section of the Annual Performance Report reports on the Municipality’s actual performance

against the planned targets as contained in the Municipality’s SDBIP. The five (5) National KPA’s,

based on the Municipality’s actual performance linked to these KPA’s depicts actual performance

against planned annual targets.

Total KPI Targets: 57

Basic Service Delivery – 12

Municipal Transformation and Organisational Development – 3

Local Economic Development – 6

Municipal Financial Viability and Management – 19

Good Governance and Public Participation – 17

The following is a breakdown of how targets were achieved:

KEY PERFORMANCE AREA Achieved Not achieved TOTAL

Basic Service Delivery 10 (83%) 2 (17%) 12

Municipal Transformation and Organisational

Development

3 (100%) 0 3

Local Economic Development 2 (33%) 4 (67%) 6

Municipal Financial Viability and Management 19 (100%) 0 19


123

Good Governance and Public Participation 10 (59%) 7 (41%) 17

TOTAL 44 (77%) 13 (23%) 57 (100%)

The following is a graphic representation of all targets and if achieved or not:

Draft: Table Representation of targets achieved and not achieved.

Due to various challenges of the total of 57 targets, 13 could not be met. As a Municipality, measures

are already being put in place to respond to these outstanding targets. Measures, such as the

adherence to all scheduled submissions to ensure the timely auditing and submission of reports has

been put in place.

It must be noted that credible performance information must be recognised as playing a significant role

in governance and accountability. The greater the focus there is on the quality and timeliness of

information reported, greater assurance can be given that the performance information provided can

be trusted and is reliable. The main objective is to increase accountability and to ensure the credibility

of the information being strengthened as performance reporting is increasingly becoming an integral

part of an effective accountability framework.

Performance information and reporting focuses the attention of the public and oversight bodies on

whether public institutions such as municipalities are delivering value for money, by comparing their

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE

124

performance against their budgets and service delivery plans. It is also intended to alert managers to

areas where corrective action is required. The most important reason for measuring performance is

that what gets measured gets done. If an institution knows that its performance is being monitored, it

is more likely to perform the required tasks and perform them well. This can greatly enhance the level

of confidence that communities can once again have in the Municipality.

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE

(PERFORMANCE REPORT PART II)

INTRODUCTION

Delete Directive note once comment is completed - Provide a brief introduction to your

municipality’s organisational development function.

T 4.0.1

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL

4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | (PERFORMANCE REPORT PART II) 125

Year -1

EmployeesApproved

PostsEmployees Vacancies Vacancies

No. No. No. No. %

Water 26,485 26,485 23,572 23,572 %

Waste Water (Sanitation) 8,541 8,541 8,285 8,285 %

Electricity 12,355 12,355 10,254 10,254 %

Waste Management 14,232 14,232 13,235 13,235 %

Housing 6,542 6,542 5,496 5,496 %

Waste Water (Stormwater Drainage) 5,643 5,643 5,530 5,530 %

Roads 5,643 5,643 5,530 5,530 %

Transport 5,322 5,322 4,470 4,470 %

Planning 1,254 1,254 1,003 1,003 %

Local Economic Development 2,516 2,516 2,063 2,063 %

Planning (Strategic & Regulatary) 12,546 12,546 10,413 10,413 %

Local Economic Development 2,355 2,355 2,190 2,190 %

Community & Social Services 4,565 4,565 3,698 3,698 %

Enviromental Proctection 5,649 5,649 4,971 4,971 %

Health 5,649 5,649 4,971 4,971 %

Security and Safety 5,649 5,649 4,971 4,971 %

Sport and Recreation 5,649 5,649 4,971 4,971 %

Corporate Policy Offices and Other 5,649 5,649 4,971 4,971 %

Totals 136,240 136,240 120,592 120,592 –

T 4.1.1

Employees

Description

Year 0

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.


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 0.00

CFO 1 1 100.00

Other S57 Managers (excluding Finance Posts) 10 1 10.00

Other S57 Managers (Finance posts) 3 1 33.33

Police officers 12 3 25.00

Fire fighters 20 3 15.00

Senior management: Levels 13-15 (excluding Finance Posts) 25 5 20.00

Senior management: Levels 13-15 (Finance posts) 6 2 33.33

Highly skilled supervision: levels 9-12 (excluding Finance posts) 35 8 22.86

Highly skilled supervision: levels 9-12 (Finance posts) 8 1 12.50

Total 121 25 20.66

T 4.1.2

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.

Vacancy Rate: Year 0

Total Appointments as of

beginning of Financial Year

Terminations during the

Financial Year

No. No.

Year -2 50 18 36%

Year -1 50 12 24%

Year 0 50 10 20%

T 4.1.3

Turn-over Rate

* 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

Turn-over Rate*Details

COMMENT ON VACANCIES AND TURNOVER:

Delete Directive note once comment is completed - Detail the attempts made to fill the posts of

senior management and highly skilled supervision and explain why there are no appropriate internal

staff to fill the vacancies. Explain how long, at a minimum, the section 57 vacancies (including MM

and CFO) have remained unfilled and the reasons for this. Give reasons for the turnover rate

experienced by your municipality. Explain measures taken to successfully attract and retain staff.

T 4.1.4


COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT

The Human Resource profile of the municipality is to some extent reflective of the local community and

the country. The human resource management of the municipality comprises of activities relating to

the rendering of a comprehensive human resource management function to Council by ensuring an

efficient personnel administration system, recruitment and selection, sound labour relations, human

resources development, implementation of affirmative action measures, occupational health and safety

of employees and compliance with all relevant labour legislation.

The staff of the municipality is informed and supportive of municipality vision and mission and strategic

direction.

A recent analysis of the workforce profile of the Municipality in preparation of the Employment Equity

Report and Plan for submission to the Department of Labour as required by the Employment Equity

Act, however reveals serious challenges with respect to the gender composition and people with

disabilities.

Gender composition / representation in the total workforce

Black Males account for 72.98% against Black Females of only 21.51% when the Economically Active

Population figures indicate 49.50% and 42.20% respectively. Black Males representation must be

brought down to 49.50% and Black Females representation more than doubled to 42.20% of the

workplace profile in line with the regional Economically Active Population figures. One of the priorities

must therefore be to increase Black Female representation across all occupational categories and

levels from the current 21.51% to 42.20%.

People with disabilities in the total workforce

People with disabilities account for only 0.61% of the total workforce as against the 2 % of the

government undertaking to reach as target by 2010.

People with disabilities generally still continue to hover below the 1% mark. Government initially made

an undertaking that the representation of people with disabilities should have constituted 2% of the

Public Service by the end of 2005. However, this was not reached and government moved the

achievement of the 2% target to 2010. We are now in 2012 and the representation of people with

disabilities both in government and in the private sector is still well below the 1% mark.

An Employment Equity Plan responding to the above challenges i.e. gender and people with

disabilities representation will be developed, monitored and implemented as one of the priorities of the

institution.

The area of skills development is characterised by a need based approach for both municipal

councillors and officials which culminates in the submission and implementation of the Workplace

Skills Plan to the Local Government Sector Education and Training Authority (LGSETA) in line with the

requirements of the Skills Development Act.

T 4.2.0


4.2 POLICIES

Name of Policy Completed Reviewed

% %

1 Affirmative Action

2 Attraction and Retention

3 Code of Conduct for employees

4 Delegations, Authorisation & Responsibility

5 Disciplinary Code and Procedures

6 Essential Services

7 Employee Assistance / Wellness

8 Employment Equity

9 Exit Management

10 Grievance Procedures

11 HIV/Aids

12 Human Resource and Development

13 Information Technology

14 Job Evaluation

15 Leave

16 Occupational Health and Safety

17 Official Housing

18 Official Journeys

19 Official transport to attend Funerals

20 Official Working Hours and Overtime

21 Organisational Rights

22 Payroll Deductions

23 Performance Management and Development

24 Recruitment, Selection and Appointments

25 Remuneration Scales and Allowances

26 Resettlement

27 Sexual Harassment

28 Skills Development

29 Smoking

30 Special Skills

31 Work Organisation

32 Uniforms and Protective Clothing

33 Other:

T 4.2.1

HR Policies and Plans

Date adopted by council or

comment on failure to adopt

Use name of local policies if different from above and at any other HR policies not

listed.

COMMENT ON WORKFORCE POLICY DEVELOPMENT:

Delete Directive note once comment is completed – Comment on progress made during the year

and plans for completing this work.

T 4.2.1.1


4.3 INJURIES, SICKNESS AND SUSPENSIONS

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

85 10 2% 9

Temporary total disablement 0 0 0% 0

Permanent disablement 0 0 0% 0

Fatal 0 0 0% 0

Total 85 10 2% 9

T 4.3.1

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 1-2) 24 90% 10 30 0.15 30

Skilled (Levels 3-5) 40 22 0.26

Highly skilled production (levels 6-8) 136 58 0.88

Highly skilled supervision (levels 9-12) 6 95% 2 26 0.04 31

Senior management (Levels 13-15) 230 11 1.48

MM and S57 65 8 0.42

Total 501 93% 12 155 3.23 61

Number of days and Cost of Sick Leave (excluding injuries on duty)

* - Number of employees in post at the beginning of the year

Salary band

*Average is calculated by taking sick leave in colunm 2 divided by total employees in colunm 5 T 4.3.2


0.15

0.26

0.88

0.04

1.48

0.42

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Lower skilled (Levels 1-

2)

Skilled (Levels 3-5) Highly skilled

production (levels 6-8)

Highly skilled

supervision (levels 9-12)

Senior management

(Levels 13-15)

MM and S57

Average Number of Days Sick Leave (excluding IOD)

T 4.3.3

COMMENT ON INJURY AND SICK LEAVE:

Delete Directive note once comment is completed – Comment on injury and sick leave indicated in

the above tables. Explain steps taken during the year to reduce injuries and follow-up action in relation

to injury and sick leave (e.g. are injuries examined by the municipality’s own doctor; are those taking

long or regular periods of sick leave monitored by municipality’s doctor; and are personal records

maintained of the number of instances of sick leave and amount of time taken each year?)

T 4.3.4


Position Nature of Alleged

Misconduct

Date of

Suspension

Details of Disciplinary Action

taken or Status of Case and

Reasons why not Finalised

Date Finalised

T 4.3.5

Number and Period of Suspensions

Position Nature of Alleged Misconduct and

Rand value of any loss to the

municipality

Disciplinary action taken Date

Finalised

T 4.3.6

Disciplinary Action Taken on Cases of Financial Misconduct


COMMENT ON SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT:

Delete Directive note once comment is complete – Comment on suspension of more than 4 months

and on other matters as appropriate.

T 4.3.7

4.4 PERFORMANCE REWARDS

Expenditure on

rewards Year 1

Proportion of

beneficiaries within

group

R' 000 %

Female 20 9 45%

Male 30 12

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

50 21

Yes/No

T 4.4.1

Note: MSA 2000 S51(d) requires that … ‘performance plans, on which rewards are based should be aligned with

the IDP’… (IDP objectives and targets are set out in Chapter 3) and that Service Delivery and Budget

Implementation Plans (developed under MFMA S69 and Circular 13) should be consistent with the higher level

IDP targets and must be incorporated appropriately in personal performance agreements as the basis of

performance rewards. Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as

well as in the numbers at the right hand side of the column (as illustrated above).

Highly skilled production (levels 6-8)

Performance Rewards By Gender

Lower skilled (Levels 1-2)

Skilled (Levels 3-5)

Beneficiary profile

Gender

Designations

Total number

of employees

in group

Number of

beneficiaries

Highly skilled supervision (levels 9-12)

Senior management (Levels 13-15)

MM and S57

Total

Has the statutory municipal calculator been used as part of the evaluation process ?


COMMENT ON PERFORMANCE REWARDS:

No performance rewards were paid in the 2013/2014 financial year.

T 4.4.1.1

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT

Note: MSA 2000 S68 (1) requires municipalities to develop their human resource capacity to a level

that enables them to perform their functions and exercise their powers in an economical, effective,

efficient and accountable way.

Delete Directive note once comment is completed – Discuss the way ahead and the improvements

made and the challenges faced for capacity development in your municipality.

T 4.5.0

Municipality | (PERFORMANCE REPORT PART II) 134

4.5 SKILLS DEVELOPMENT AND TRAINING

No.

Actual:

End of

Year -1

Actual:

End of

Year 0

Year 0

Target

Actual:

End of

Year -1

Actual:

End of

Year 0

Year 0

Target

Actual:

End of

Year -1

Actual:

End of

Year 0

Year 0

Target

Actual:

End of

Year -1

Actual:

End of

Year 0

Year 0

Target

Female 5 0 1 1

Male 5 1 2 1 2

Female 2 3 3 3 3

Male 3 4 4 4 4

Female 4 2 2 2 2

Male 8 8 9 8 9

Female 8 6 6 6 6

Male 6 2 2 2 2

Female 19 11 12 11 12

Male 22 15 17 15 17

Total 0 82 0 0 0 0 0 0 52 58 0 52 58

T 4.5.1*Registered with professional Associate Body e.g CA (SA)

Skills Matrix

Management level Gender Employees

in post as

at 30 June

Year 0

Number of skilled employees required and actual as at 30 June Year 0

Learnerships Skills programmes & other

short courses

Other forms of training Total

MM and s57

Councillors, senior officials

and managers

Technicians and associate

professionals*

Professionals

Sub total

Municipality | (PERFORMANCE REPORT PART II) 135

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 0 0 0 0 0 0

Chief financial officer 0 0 0 0 0 0

Senior managers 0 0 0 0 0 0

Any other financial officials 0 0 0 0 0 0

Supply Chain Management Officials

Heads of supply chain management units 0 0 0 0 0 0

Supply chain management senior managers 0 0 0 1 1 1

TOTAL 0 0 0 1 1 1

T 4.5.2

Financial Competency Development: Progress Report*

* This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007)

Skills Development Expenditure

R'000

Management level

Gender

Employees as at the beginning of the financial year

Original Budget and Actual Expenditure on skills development Year 1

Learnerships Skills programmes &

other short courses

Other forms of training

Total

No. Original Budget

Actual Original Budget



Actual

MM and S57 Female 1 0 0 0 0 0 0 0 0

Male 4 0 0 0 0 0 0 0 0

Legislators, senior officials and managers

Female 19 297730 64000 35000 15000 1150 1134 333880 80134

Male 33 517110 16000 32000 10000 1150 0 550260 26000

Professionals Female 6 16000 0 10000 10000 3200 1704 29200 11704

Male 12 25000 16000 0 0 6000 0 31000 16000

Technicians and associate professionals

Female 3 20000 0 10000 10000 21000 0 51000 10000

Male 36 60000 0 0 0 0 0 60000 0

Clerks Female 45 120000 16000 0 0 60000 4537 180000 20537

Male 26 56000 16000 0 0 72000 1704 128000 17704

Service and sales workers

Female 15 176000 0 10000 0 25546 0 211546 0

Male 41 0 0 0 15000 60000 0 60000 15000

Plant and machine

operators and assemblers

Female 0 0 0 0 0 0 0 0 0

Male 43 16000 0 10000 30600 30000 0 56000 30600

Elementary occupations

Female 37 74000 0 0 3400 73000 0 147000 3400

Male 226 230000 80000 0 20300 120000 0 350000 100300

Sub total Female 126 703730 80000 75000 38400 183896 7376 962626 125776


Male 421 904110 128000 32000 75900 289150 1704 1225260 205604

Total 547 0 0 0 0 30 45 30 45

*% and *R value of municipal salaries (original budget) allocated for workplace skills plan. %* *R

T4.5.3

COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL

COMPETENCY REGULATIONS:

Delete Directive note once comment is completed – Comment on the adequacy of training plans

and the effectiveness of implementation at your municipality. Explain variances between actual and

budgeted expenditure. Also comment on the adequacy of funding (e.g. is it intended to increase or

decrease this level of spending in future years and how is the value of the training activity assessed?)

Refer to MFMA Competency Regulations, the range of officials to which it relates and the deadline of

2013 by which it will become fully effective. Discuss the progress made on implementation at your

municipality as reflected in T4.5.4 above.

T 4.5.4

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE

INTRODUCTION TO WORKFORCE EXPENDITURE

Delete Directive note once comment is completed – Explain the importance of managing workforce

expenditure, the pressures to overspend and how spending is controlled (e.g. within approved

establishment and against budget and anticipated vacancy rates arising from turnover). Also explain

how municipality seeks to obtain value for money from work force expenditure.

T 4.6.0

4.6 EMPLOYEE EXPENDITURE


19,000

20,000

21,000

22,000

23,000

24,000

25,000

26,000


Workforce Expenditure Trends (R' 000)

Source: MBRR SA22 T 4.6.1

COMMENT ON WORKFORCE EXPENDITURE:

Delete Directive note once comment is completed – Explain the spending pattern in the context of

the actual and two previous years plus the budget year. Refer to implications for workforce ratio in

Chapter 5. Comment on factors influencing workforce expenditure during the year.

T 4.6.1.1

COMMENT ON UPGRADED POSTS AND THOSE THAT ARE AT VARIANCE WITH NORMAL

PRACTICE:

Delete Directive note once comment is completed – Comment on T4.6.2 as appropriate and give

further explanations as necessary with respect to T4.6.3 and T4.6.4.

T 4.6.5

DISCLOSURES OF FINANCIAL INTERESTS

Delete Directive note once comment is completed – Refer to disclosures made by officials and

councillors concerning their financial interests as required by PM Regulations 805 of 2006 are set out

in Appendix J. Make other comments as appropriate.

T 4.6.6

Municipality | CHAPTER 5 – FINANCIAL PERFORMANCE 138

CHAPTER 5 – FINANCIAL PERFORMANCE

INTRODUCTION

Chapter 5 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

This component will provide an overview of the financial performance of the municipality and focuses

on the financial health of the municipality. A number of key ratios were considered to establish the

financial health of the Municipality as well as to provide explanations for major deviations, all in line

with the Annual Financial Statements as audited by the Auditor-General SA.

The total actual revenue for the 2013/14 financial year amounted to R485, 465 million this represents a

growth of 11.05% when compared to the 2012-13 actual revenue of R437, 164 million. The actual

expenditure amounted to R614.201 million which was a saw a decline in expenditure incurred of

4.18% when compared to the actual expenditure 2012-13 of R 641, 004 million.

The operating deficit has decreased by 36.84% from R 203, 841 million in the 2012-13 financial year to

R 128, 736million in the 2013-14 financial period.

T 5.0.1

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE

INTRODUCTION TO FINANCIAL STATEMENTS

Actual revenue excluding capital transfers for the 2013/14 financial year amounted to R422, 798

million that, compared to the 2012-13 of R403, 459 million, represents a growth of 4.79%.

Service charges jointly comprise R245, 717 million (50%) of the total revenue.

Electricity remains the largest source of income and contributes R 180, 418 million (37%) to municipal

revenue. Property rates constitute R37, 546 (7%) of revenue and ideally property rates should be

contributing at least 25% of the total revenue of the municipality. Transfers received contribute R 169,

389 million (35%) of the total municipal revenue.

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 5 – FINANCIAL PERFORMANCE

139

Employee cost to total operating expenditure measures the total employment cost to total operating

expenditure and the norm is between 25% - 40%. Lekwa Local Municipality measures at 19.86% and

although within the acceptable norm, it is on the increase and if not monitored, it will approach the

upper end of the norm.

Repairs and Maintenance as a % of Property, Plant and Equipment and Investment Property (Carrying

Value). The ratio measures the level of repairs and maintenance to ensure adequate maintenance to

prevent breakdowns and interruptions to service delivery. Repairs and maintenance of municipal

assets is required to ensure the continued provision of services. The ratio for Lekwa Local Municipality

is 2.94% compared to the norm of 8%. This ratio below the norm of 8% is a reflection that insufficient

funds are being spent on repairs and maintenance to the extent that it could increase impairment of

useful assets.

The bulk purchases increased from R 186, 519 million in the 2012/13 financial year to R 198, 026

million in the 2013-14 financial period. Depreciation and impairment of assets was R 116, 894 million

while Debt impairment amounted to R 47, 721 million. Other expenditure was R 64, million.

The overall expenditure on Capex increased from R 37, 158 million in the 2012/2013 financial year to

R 62, 667 million in the 2013/2014 financial year. This represented a growth of 68.65% this is mainly

due to rollover projects that were completed in the 2013-14 financial period.

T 5.1.0


140

5.1 STATEMENTS OF FINANCIAL PERFORMANCE

2010/11 2011/12 2012/13

Audited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Audited

outcome

Revenue By Source

Property rates 37 944 37 301 41 800 47 321 49 952 37 546

Service charges - electricity revenue 121 629 136 699 178 871 209 192 188 374 180 418

Service charges - water revenue 21 146 30 862 39 815 37 120 38 119 32 363

Service charges - sanitation revenue 18 041 21 248 21 707 22 920 23 004 23 004

Service charges - refuse revenue 9 083 9 790 12 164 13 031 12 894 9 932

Rental of facilities and equipment 784 (353) 651 792 553 1 753

Interest earned - external investments 767 726 837 606 237 1 299

Interest earned - outstanding debtors 16 048 18 450 14 110 15 585 16 931 18 273

Fines 361 2 166 271 2 705 2 704 1 755

Agency services 2 951 12 412 6 565 20 263 15 520 8 611

Transfers recognised - operational 64 309 73 251 117 391 86 670 86 425 169 389

Other revenue 1 441 563 1 222 886 1 351 1 122

Total Revenue (excluding capital transfers and

contributions)

294 505 343 115 435 405 457 091 436 065 485 465

Expenditure By Type

Employee related costs 114 990 101 586 114 990 105 433 108 808 112 614

Remuneration of councillors 8 417 7 889 8 417 8 554 9 162 9 367

Debt impairment 81 369 39 082 77 099 57 133 94 708 47 721

Depreciation & asset impairment 115 474 60 891 121 508 135 296 134 582 116 894

Finance charges 18 233 1 176 14 219 1 111 831 21 862

Bulk purchases 199 863 167 691 186 519 198 020 188 614 198 026

Other materials 3 388 4 154 2 995 2 916 3 257 4 798

Contracted services 18 551 21 854 23 250 20 322 30 933 25 090

Transfers and grants 16 743 20 898 41 647 27 950 12 944 13 090

Other expenditure 42 099 39 713 37 621 57 705 50 412 64 739

Loss on disposal of PPE

Total Expenditure 619 128 464 933 628 264 614 440 634 252 614 201

Surplus/(Deficit) (324 623) (121 818) (192 859) (157 348) (198 187) (128 736)

Description

Current Year 2013/14

Municipality | CHAPTER 5 – FINANCIAL PERFORMANCE 141

Standard Classification Description 2012/13

R thousandAudited

Outcome

Original

Budget

Adjusted

Budget

Audited

Outcome

Original

Budget

Adjustments

Budget

Revenue - Standard

Governance and administration 162 128 148 953 152 150 203 085

Executive and council 79 570 81 454 81 336 141 718 43% 43%

Budget and treasury office 82 149 66 229 69 802 60 956 -9% -15%

Corporate services 409 1 270 1 012 411 -209% -146%

Community and public safety 535 2 998 2 870 1 951

Community and social services 357 361 278 293 -23% 5%

Sport and recreation 18 53 11 9 -468% -17%

Public safety 160 2 584 2 582 1 648 -57% -57%

Economic and environmental services 19 554 22 399 18 082 31 440

Planning and development 33 2 115 2 079 20 -10659% -10478%

Road transport 19 521 20 284 16 003 31 420 35% 49%

Trading services 254 946 282 741 262 962 248 989

Electricity 182 046 209 646 188 935 181 134 -16% -4%

Water 39 007 37 127 38 120 34 920 -6% -9%

Waste water management 21 718 22 924 23 005 23 004 0% 0%

Waste management 12 176 13 044 12 902 9 932 -31% -30%

Total Revenue - Standard 437 164 457 091 436 065 485 465

Expenditure - Standard

Governance and administration 283 381 301 811 315 043 211 064

Executive and council 49 037 194 216 169 384 38 903 -399% -335%

Budget and treasury office 218 073 92 232 130 793 159 313 42% 18%

Corporate services 16 271 15 362 14 867 12 847 -20% -16%

Community and public safety 37 546 30 467 34 954 35 524

Community and social services 14 661 10 111 13 799 12 774 21% -8%

Sport and recreation 7 334 5 580 6 898 7 044 21% 2%

Public safety 15 017 12 006 13 938 15 446 22% 10%

Housing 7 2 769 31 31 -8734% 3%

Health 527 – 289 229 100% -26%

Economic and environmental services 28 015 35 579 33 799 31 609

Planning and development 179 2 709 182 1 042 -160% 83%

Road transport 27 837 32 870 33 617 30 567 -8% -10%

Trading services 292 062 246 583 250 455 336 004

Electricity 206 990 204 587 200 908 227 501 10% 12%

Water 32 003 21 847 26 165 33 726 35% 22%

Waste water management 10 029 7 481 9 469 12 522 40% 24%

Waste management 43 040 12 668 13 913 62 257 80% 78%

Total Expenditure - Standard 641 005 614 440 634 252 614 201

Surplus/(Deficit) for the year (203 841) (157 348) (198 187) (128 736)

Financial Performance of Operational Services

Current Year 2013/14 2013-2014 Variance


142

Standard Classification Description 2012/13

R thousand Audited Outcome Original BudgetAdjusted

Budget

Audited

Outcome

Original

Budget

Adjustments

BudgetRevenue - Standard

Governance and administration (121 253) (152 858) (162 893) (7 979)

Executive and council 30 533 (112 762) (88 049) 102 814 210% 186%

Budget and treasury office (135 924) (26 003) (60 990) (98 358) 74% 38%

Corporate services (15 861) (14 092) (13 854) (12 435) -13% -11%

Community and public safety (37 010) (27 469) (32 084) (33 573)

Community and social services (14 304) (9 750) (13 521) (12 481) 22% -8%

Sport and recreation (7 316) (5 527) (6 887) (7 035) 21% 2%

Public safety (14 856) (9 422) (11 357) (13 798) 32% 18%

Housing (7) (2 769) (31) (31) -8734% 3%

Health (527) – (289) (229) 100% -26%

Economic and environmental services (8 461) (13 180) (15 717) (169)

Planning and development (145) (594) 1 897 (1 022) 42% 286%

Road transport (8 316) (12 586) (17 614) 853 1575% 2164%

Environmental protection – –

Trading services (37 117) 36 159 12 507 (87 015)

Electricity (24 945) 5 059 (11 973) (46 367) 111% 74%

Water 7 004 15 280 11 955 1 194 -1180% -901%

Waste water management 11 688 15 443 13 536 10 482 -47% -29%

Waste management (30 865) 376 (1 011) (52 324) 101% 98%

Other – – – –

Surplus/(Deficit) for the year (203 841) (157 348) (198 187) (128 736)

Financial Performance of Operational Services Surplus (Deficit)Current Year 2013/14 2013-2014 Variance

COMMENT ON FINANCIAL PERFORMANCE:

Delete Directive note once comment is completed – Comment on variances above 10%.

T5.1.3


143

5.2 GRANTS

Grant Performance R' 000

Description

Year 2012/13

Year 2013/14 Year 2012/13 Variance

Actual Budget Adjustments Budget


(%)

Adjustments Budget

(%)

Operating Transfers and Grants

National Government: 83,345 83,868 87,760 83,345

Equitable share 79,067 81,428 81,320 81,320 0% 0%

Finance Management 1,598 1,550 1,550 1,550 0% 0%

Municipal Systems Improvement 830 890 890 890 0% 0%

Integrated National Electrification Programme

500 2,201 2,201 2,201 0% 0%

EPWP Incentive 1,350 1,056 1,464 1,464 0% 0%

Provincial Government: – – – –

Health subsidy

Housing

Ambulance subsidy

Sports and Recreation

EPWP Incentive

District Municipality: – – – –

[insert description]

Other grant providers: – – – –


Total Operating Transfers and Grants

83,345 83,868 87,760 83,345

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

COMMENT ON OPERATING TRANSFERS AND GRANTS:

Note: For Municipal Infrastructure Grant (MIG) see T5.8.3. For other conditional transfers including

Neighborhood Development Partnership Grant (NDPG); Public Transport Infrastructure and Systems

Grant (PITS) see Appendix L.


144

Grant Performance Conditional Grants R' 000

Description

Year 2012/13

Year 2013/14 Year 2013/14 Variance

Actual Budget Adjustments Budget


(%)

Adjustments Budget

(%)

Operating Transfers and Grants

National Government: 46,058 47,015 69,706 65,109

Municipal Infrastructure Grant 41,780 41,318 63,916 59,004 43% 8%

Neighbourhood Development Partnership

Finance Management 1,598 1,550 1,550 1,550 0% 0%

Municipal Systems Improvement 830 890 890 890 0% 0%

Integrated National Electrification Programme

500 2,201 2,201 2,201 0% 0%

EPWP Incentive 1,350 1,056 1,464 1,464 0% 0%

Provincial Government: – – – –

Health subsidy

Housing

Ambulance subsidy

Sports and Recreation

EPWP Incentive

District Municipality: – – – –


Other grant providers: – – – –


Total Operating Transfers and Grants

46,058 47,015 69,706 65,109

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

COMMENT ON CONDITIONAL TRANSFERS AND GRANTS:

Note: For Municipal Infrastructure Grant (MIG) see T5.8.3. For other conditional transfers including

Neighborhood Development Partnership Grant (NDPG); Public Transport Infrastructure and Systems

Grant (PITS) see Appendix L.

Delete Directive note once comment is completed – Comment on the variances in the above table

and other and indicate high value projects & total the remaining project.

T 5.2.2


145

5.3 ASSET MANAGEMENT

INTRODUCTION TO ASSET MANAGEMENT

Delete Directive note once comment is completed - Provide a brief overview on Asset Management

as practiced within your organisation and outline the key elements of your Asset Management Policy.

Explain how asset management is organised, the staff involved and the key delegations. Describe key

issues under development. Indicate the approach to capacity development for this activity. Refer to

the illustrations of asset management approach in relation to the new assets set out below.

T 5.3.1


146

Name

Description

Asset Type

Key Staff Involved

Staff Responsibilities


Capital Implications

Future Purpose of Asset

Describe Key Issues

Policies in Place to Manage Asset

Name

Description

Asset Type

Key Staff Involved





Describe Key Issues


Name

Description

Asset Type

Key Staff Involved





Describe Key Issues


T 5.3.2

TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED YEAR 0

Asset 1

Asset Value

Asset 2

Asset Value

Asset 3

Asset Value


147

COMMENT ON ASSET MANAGEMENT:

Delete Directive note once comment is completed – With reference to the three projects approved

in the year, set out above, describe how these projects were evaluated from a cost and revenue

perspective, including Municipal tax and tariff implications (See MFMA section 19 (2) (a) & (b) and

MSA section 74 (2) (d), (e) & (i)). Ensure that these projects are maintained on files that are readily

accessible for audit inspection. Financial data regarding asset management may be sourced from

MBRR Table A9

T 5.3.3

Repair and Maintenance Expenditure: Year 2013-2014

R' 000

Original Budget Adjustment Budget Actual

Budget variance

Repairs and Maintenance Expenditure 13,149 14, 271 18,084 -126%

T 5.3.4

COMMENT ON REPAIR AND MAINTENANCE EXPENDITURE:

Actual expenditure on repairs and maintenance in Lekwa Local Municipality amounted to R18 million

for the 2013/14 financial year. This indicate a decrease of R 6 million when compared to R 24 million

expenditure incurred in the 2012/13 financial period. This represents an over expenditure of R4 million

compared to the adjustment budget of R14 million.

The aging infrastructure of the municipality in actual fact requires that larger amount should be made

available for the maintenance and replacement of especially water reticulations, electricity reticulation,

waste water treatment works and water treatment works however the pressure placed on budget

provision for the extension of infrastructure to cater for new developments limits the availability of

funds for maintenance purposes. The infrastructure grants provided by the national government caters

mainly for upgrading and implementation of new infrastructure rather the maintenance of the current

infrastructure.

Expenditure on repairs and maintenance as a percentage of total expenditure amounted to 4% if debt

impairment and asset depreciation is not taken into account. This is however still not in line with the

National treasury guideline of 10% but the provision for repairs and maintenance will be increased

annually to meet the required standard.

T 5.3.4.1


148

5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS

0.9 0.9

1.1

0.9

0.8

0.9

0.9

1.0

1.0

1.1

1.1

Year -3 Year -2 Year -1 Current: Year 0

Liquidity Ratio

Liquidity Ratio – Measures the municipality’s ability to pay its bills and is calculated by dividing the monetary assets (due within one year ) by the municipality’s current liabilities. A higher ratio is better.

Data used from MBRR SA8

T 5.4.1

1.5

1.9

1.4

0.8

–

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0


Cost Coverage

iii. Cost coverage

Cost Coverage– It explains how many months expenditure can be coveredby the cash and other liquid assets available to the Municipality excluding utilisation of grants and is calculated



149

T 5.4.2

64.0%

62.0%

68.0%

60.5%

56.0%

58.0%

60.0%

62.0%

64.0%

66.0%

68.0%

70.0%


Total Outstanding Service Debtors

ii.O/S Service Debtors to Revenue

Total Outstanding Service Debtors – Measures how much money is still owed by the community for water, electricity, waste removal and sanitation compared to how much money has been paid for these services. It is calculated by dividing the total outstanding debtors by the total annual revenue. A lower score is better.


T 5.4.3


150

2.1

1.3

1.5

1.2

–

0.5

1.0

1.5

2.0

2.5


Debt Coverage

i. Debt coverage

Debt Coverage– The number of times debt payments can be accomodated within Operating revenue (excluding grants) . This in turn represents the ease with which debt payments can be accomodated by the municipality


T 5.4.4

96.0%

88.0%

75.0% 77.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%


Creditors System Efficiency

Creditors System Efficiency

Creditor System Efficiency – The proportion of creditors paid within terms (i.e. 30 days). This ratio is calculated by outstanding trade creditors divided bycredit purchases


T 5.4.5


151

52.0% 54.0% 56.0%

100.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%


Capital Charges to Operating Expenditure

Capital Charges to Operating Expenditure

Capital Charges to Operating Expenditure ratio is calculated by dividing the sum of capital interest and principle paid by the total operating expenditure.


T 5.4.6

64.0%

92.0% 93.0%

50.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%


Employee Costs

Employee costs

Employee cost – Measures what portion of the revenue was spent on paying employee costs. It is calculated by dividing the total employee cost by the difference between total revenue and capital revenue.


T 5.4.7


152

87.0%

54.0%

68.0%

63.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%


Repairs & Maintenance

Repairs & Maintenance

Repairs and Maintenance – This represents the propotion of operating expenditure spent and is calculated by dividing the total repairs and maintenace.


T 5.4.8

COMMENT ON FINANCIAL RATIOS:

Delete Directive note once comment is completed - Comment on the financial health of the

municipality / municipal entities revealed by the financial ratios set out above. These ratios are derived

from table SA8 of the MBRR.

T 5.4.9

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET

INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET

Delete Directive note once comment is completed – Capital expenditure relates mainly to

construction projects that will have value lasting over many years. Capital expenditure is funded from

grants, borrowings and operating expenditures and surpluses. Component B deals with capital

spending indicating where the funding comes from and whether Municipalities are able to spend the

available funding as planned. In this component it is important to indicate the different sources of

funding as well as how these funds are spend. Highlight the 5 largest projects (see T5.7.1) and

indicate what portion of the capital budget they use. In the introduction briefly refer to these key

aspects of capital expenditure (usually relating to new works and renewal projects) and to Appendices


153

M (relating to the new works and renewal programmes), N (relating to the full programme of full capital

projects, and O (relating to the alignment of projects to wards).

T 5.5.0

5.5 CAPITAL EXPENDITURE

12.03%

87.97%

–

200

400

600

800

1,000

1,200

R m

illio

n

Capital Expenditure: Year 0

Capital Expenditure

Operating Expenditure

T 5.5.1

5.6 SOURCES OF FINANCE


154

Year -1

Actual Original

Budget (OB)

Adjustment

Budget

Actual Adjustment to

OB Variance

(%)

Actual to OB

Variance (%)

Source of finance

External loans 3542 5500 5520 5511 0.36% 0.20%

Public contributions and donations 248 300 390 421 30.00% 40.33%

Grants and subsidies 3451 3700 3700 3856 0.00% 4.22%

Other 2451 4500 4600 4565 2.22% 1.44%

Total 9692 14000 14210 14353 32.59% 46.19%

Percentage of finance

External loans 36.5% 39.3% 38.8% 38.4% 1.1% 0.4%

Public contributions and donations 2.6% 2.1% 2.7% 2.9% 92.1% 87.3%

Grants and subsidies 35.6% 26.4% 26.0% 26.9% 0.0% 9.1%

Other 25.3% 32.1% 32.4% 31.8% 6.8% 3.1%

Capital expenditure

Water and sanitation 1845 4300 4250 4256 -1.16% -1.02%

Electricity 1562 2400 2480 2453 3.33% 2.21%

Housing 1243 2700 2800 2685 3.70% -0.56%

Roads and storm water 1352 1500 1400 1486 -6.67% -0.93%

Other 3690 3500 3450 3473 -1.43% -0.77%

Total 9692 14400 14380 14353 -2.22% -1.08%

Percentage of expenditure

Water and sanitation 19.0% 29.9% 29.6% 29.7% 52.4% 95.2%

Electricity 16.1% 16.7% 17.2% 17.1% -150.1% -205.4%

Housing 12.8% 18.8% 19.5% 18.7% -166.8% 51.7%

Roads and storm water 13.9% 10.4% 9.7% 10.4% 300.2% 86.8%

Other 38.1% 24.3% 24.0% 24.2% 64.3% 71.7%

T 5.6.1

Capital Expenditure - Funding Sources: Year -1 to Year 0

Year 0

Details

R' 000

COMMENT ON SOURCES OF FUNDING:

Delete Directive note once comment is completed – Explain any variations from the approved

budget of more than 10% and discuss the total capital expenditure as a viable proportion of total

expenditure.

T 5.6.1.1

5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS


155

COMMENT ON CAPITAL PROJECTS:

Delete Directive note once comment is completed - Provide information in the template above on

the 5 largest projects, ranked according to their approved budget provision year 0. Comment on the

variance between the original and adjustment budgets and on availability of future Budget provision to

operate the projects and lessons learnt in the year about capital project implementation on time to

budget.

T 5.7.1.1

5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW

INTRODUCTION TO BASIC SERVICE AND INFRASTRUCTURE BACKLOGS

Delete Directive note once comment is completed – Explain that need and cost of backlogs are the

result of migration into an area; migration out of an area; the trend towards disaggregation of families

into more than one housing unit; and the cost of renewing and upgrading core infrastructure. Explain

how this balance effects net demand in your municipality and how your municipality is responding to

the challenges created.

T 5.8.1

COMMENT ON BACKLOGS:

Delete Directive note once comment is completed - Comment on how MIG grants have been

utilised to redress the backlogs and on the variances in T 5.8.3. If appropriate, comment that

Appendix P contains details of schools and clinics that have been established that do not have ready

access to one or more basic services and Appendix Q contains details of those services provided by

other spheres of government (whether the municipality is involved on an agency basis or not) that

carry significant backlogs.

T 5.8.4


156

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS

INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS

Adequate cash flow management is critical to ensure that the municipality meets its financial

obligations and is financially viable. A stable positive cash flow balance relative to the growth of the

municipality is a good indication of the municipality’s financial position and financial sustainability.

Cash flow projections are done on a weekly basis and cash not immediately required are invested for a

better return on the short term.

The cash flow statement also provides information on the mode of generation of funds required for

repayment. The cash flow statement also helps to analyze the amount of cash that would be required

in order to meet the operating costs, It further shows the expected level of cash in-flow versus cash

out-flow that is likely to result from the implementation of the budget.

The projection is further based on the debt recovery rate as well as the previous financial period

performance.

T 5.9


157

5.9 CASH FLOW

Description 2012/13

R thousandAudited

OutcomeOriginal Budget

Adjusted

Budget

Audited

Outcome

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Ratepayers and other 317 713 284 207 237 764 254 553

Government - operating 84 979 86 670 86 425 83 230

Government - capital 43 630 42 508 42 508 67 266

Interest 14 949 11 983 17 168 19 573

Dividends

Payments

Suppliers and employees (417 791) (398 232) (400 447) (341 387)

Finance charges (18 233) (1 711) (1 711) (21 862)

Impairement of Traffic Fine (1 308)

Transfers and Grants (2 290) (2 290)

NET CASH FROM/(USED) OPERATING ACTIVITIES 25 247 23 135 (20 583) 60 064

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE 954

Decrease (Increase) in non-current debtors

Decrease (increase) other non-current receivables

Decrease (increase) in non-current investments

Payments

Capital assets (21 085) (43 308) (77 920) (44 819)

Acturial loss on Retirement benefit obligation (2 086) (2 286)

NET CASH FROM/(USED) INVESTING ACTIVITIES (22 217) (43 308) (77 920) (47 105)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans

Borrowing long term/refinancing

Increase (decrease) in consumer deposits

Payments

Repayment of borrowing (1 131) (1 000) (1 000) (1 102)

Finance Lease payment (155)

NET CASH FROM/(USED) FINANCING ACTIVITIES (1 285) (1 000) (1 000) (1 102)

NET INCREASE/ (DECREASE) IN CASH HELD 1 744 (21 173) (99 503) 11 857

Cash/cash equivalents at the year begin: 15 273 36 708 17 017 17 017

Cash/cash equivalents at the year end: 17 017 15 535 (82 486) 28 874

References

Current Year 2013/14

Cash Flows Outcome


158

COMMENT ON CASH FLOW OUTCOMES:

Cash and cash equivalents held at year-end increased from R17 017 million in 2012/13 to R 28 873

million in 2013/14. Net cash from operating activities increased from R 25 247 million to R 60 064

million, the net cash utilized in investing activities increased from R 22 216 million to R 47 105 million

while the net cash utilized in financing activities reduced from R1 285 million to R1 102 million for the

same period.

The cash received from ratepayers and other services declined by R 63 160 million from R 317 713

million in 2012/13 to R 254 553 million in 2013/14.

Payments to suppliers and employees decreased by R 76 404 million from R 417 791 in 2012/13

million to R 341 387 million 2013/14.

T 5.9.1.1

5.10 BORROWING AND INVESTMENTS

INTRODUCTION TO BORROWING AND INVESTMENTS

Outstanding borrowing reduced from R2.1 million in 2011/12 to R1.1 million in 2012/13 and was fully

redeemed in 2013/14. No new borrowing was taken up and capital assets were funded mainly from

grant funding.

T 5.10.1


159

Instrument

Year 2011 -

2012

Year 2012 -

2013

Year 2013 -

2014

Municipality

Long-Term Loans (annuity/reducing balance) 2 159 501.00 1 101 945.00 -

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 2 159 501 1 101 945 0

Actual Borrowings: Year 2011-2012 to Year 2013-2014

R' 000


160

0

50

100

150

200

250

300

350

400


R m

illio

n

Actual Borrowings

Municipality

Municipal Entities

T 5.10.3


161

Year 2011 -2012 Year 2012 -2013 Year 2013 -2014

Actual Actual Actual

Municipality

Securities - National Government

Listed Corporate Bonds

Deposits - Bank 11 381 546.00 23 742 110.00 17 611 925.00

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 Total 11381546 23742110 17611925

Municipal Investments

R' 000

Investment* type


162

COMMENT ON BORROWING AND INVESTMENTS:

Surplus cash not immediately required for operations and cash backed internal reserves are invested

on a short term basis. Funds are only invested with A1 rating banks and according to the municipal

investment policy. Investments held at year-end amounted to R17.6 million

T 5.10.5

5.11 PUBLIC PRIVATE PARTNERSHIPS

PUBLIC PRIVATE PARTNERSHIPS

Lekwa Local Municipality did not enter into any public private partnerships during 2013/14 financial

year, nor does it have any existing PPP’s

T 5.11.1


163

COMPONENT D: OTHER FINANCIAL MATTERS

5.12 SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the oversight of materials, information, and finances as they move

in a process from supplier to the Municipality. Supply chain management involves coordinating and

integrating these flows. It is said that the ultimate goal of any effective supply chain management

system is to reduce stock levels, with the assumption that products are available when needed.

The department (usually abbreviated to SCM) manages the supply and acquisition of goods and

services to the Municipality or on behalf of the Municipality. This includes construction works and

consultant services, the disposal of goods no longer needed, and the selection of contractors to assist

in the provision of municipal services.

SCM is responsible for ensuring a sound, sustainable and accountable supply chain that promotes

black economic empowerment and local economic development, and encourages small businesses

and joint venture partnerships. This procurement system is fair, equitable, transparent, competitive and

cost effective, in accordance with the Constitution of South Africa.

Composition – SCM consists of Demand, Acquisition and Logistic Management. The Unit has 7

permanent employees and 2 vacancies.

The Municipality has established 3 Committees: Specifications Committee, Evaluation Committee and

the Adjudication Committee. No councillors are members of any committee of the committees handling

supply chain processes.

The Council has developed a Supply Chain Management (SCM) Policy and practises in compliance

with the guidelines set down by the Supply Chain Management Regulations, 2005, which was

approved with effect from 1 March 2006. The new Preferential Procurement Regulations, 2011, with

effect from 7 December 2011 was incorporated in the policy and adopted. The SCM policy is reviewed

annually to incorporate any changes that were not covered in the previous policy. The SCM Policy

incorporating the abovementioned regulations, as well as all other relevant legislation, regulations and

circulars and are annually reviewed with the budget process. The Auditor General indicated significant

issues regarding the SCM Unit which included:

SCM - Contract register not maintained and retrospective analysis on SCM process being followed

Weakness in internal controls. Lack of review and monitoring of compliance with applicable laws and

regulations. Non-compliance with SCM regulations.

T 5.12.1


164

5.13 GRAP COMPLIANCE

GRAP COMPLIANCE

GRAP is the acronym for Generally Recognized Accounting Practice and it provides the rules by which

municipalities are required to maintain their financial accounts. Successful GRAP compliance will

ensure that municipal accounts are comparable and more informative for the municipality. It will also

ensure that the municipality is more accountable to its citizens and other stakeholders. Information on

GRAP compliance is needed to enable National Treasury to assess the pace of progress and consider

the implications.

The 2013/14 AFS were prepared in terms of the GRAP Standards of reporting. Attention to full GRAP

compliance is ongoing.

T 5.13.1

Municipality | CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS 165

CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS

INTRODUCTION

Note: The Constitution S188 (1) (b) 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 section 45 states that the results of performance measurement… must be audited

annually by the Auditor-General.

Every municipality must for each financial year prepare annual financial statements which-

fairly presents the state of affairs of the municipality, its performance against its budget, its

management of revenue, expenditure, assets and liabilities, its business activities, its financial results,

and its financial position as at the end of the financial year; and disclose the information required in

terms of sections 123, 124 and 125 of the MFMA.

Annual financial statements must be prepared within two months after the end of the financial year to

which those statements relate and submit the statements to the Auditor-General for auditing.

The accounting officer is responsible to at least once per year measures and reviews the performance

of the municipality. The results of the performance measurement must be audited annually by the

Auditor-General.

Therefore the performance results are submitted with the annual financial statements.

The Auditor-General must audit the financial statements and performance results and submit an audit

report to the accounting officer within three months of receipt of the statements.

T 6.0.1

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS

166

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS

YEAR -1

6.1 AUDITOR GENERAL REPORT: 2012/2013 FINANCIAL YEAR

Auditor-General Report on Financial Performance: 2012/13

Audit Report Status*: Qualified

Non-Compliance Issues Remedial Action Taken

Non-compliance issues and the remedial action is outlined in the attached Audit Action Plan (ANNEXURE T6.1)

Note:*The report status is supplied by the Auditor General and ranges from unqualified (at best); to unqualified with other matters specified; qualified; adverse; and disclaimed (at worse)

T 6.1.1

Auditor-General Report on Financial and Service Delivery Performance: 2012/13

Audit Report Status*: Disclaimer


Non-compliance issues and the remedial action is outlined in the attached Audit Action Plan (ANNEXURE T6.1)


T 6.1.2


167

COMPONENT B: AUDITOR-GENERAL OPINION YEAR 2013/2014

6.2 AUDITOR GENERAL REPORT: 2013/2014 FINANCIAL YEAR

Auditor-General Report on Financial Performance: 2013/2014

Audit Report Status*: Unqualified


Non-compliance issues and the remedial action is outlined in the attached Audit Action Plan


T 6.1.1

Auditor-General Report on Financial and Service Delivery Performance: 2013/14

Audit Report Status*: Disclaimer


Non-compliance issues and the remedial action is outlined in the attached Audit Action Plan


T 6.1.1

AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS: 2013/2014

The report of the Auditor-General is attached as Appendix T6.2.3.

COMMENTS ON AUDITOR-GENERAL’S OPINION: 2013/2014

Delete Directive note once comment is completed - Provide comments from the Municipal Manager

/ CFO on the Auditor-General’s opinion. Include comments on year 0 if it provides useful context.

T 6.2.4

COMMENTS ON MFMA SECTION 71 RESPONSIBILITIES:


168

Section 71 of the MFMA requires municipalities to return a series of financial performance data to the

National Treasury at specified intervals throughout the year. The Chief Financial Officer states that

these data sets have been returned according to the reporting requirements.

Signed (Chief Financial Officer)………………………………………………………..... Dated

T 6.2.5

Municipality | GLOSSARY 169

GLOSSARY

Accessibility

indicators

Explore whether the intended beneficiaries are able to access services

or outputs.

Accountability

documents

Documents used by executive authorities to give “full and regular”

reports on the matters under their control to Parliament and provincial

legislatures as prescribed by the Constitution. This includes plans,

budgets, in-year and Annual Reports.

Activities The processes or actions that use a range of inputs to produce the

desired outputs and ultimately outcomes. In essence, activities

describe "what we do".

Adequacy

indicators

The quantity of input or output relative to the need or demand.

Annual Report A report to be prepared and submitted annually based on the

regulations set out in Section 121 of the Municipal Finance

Management Act. Such a report must include annual financial

statements as submitted to and approved by the Auditor-General.

Approved Budget The annual financial statements of a municipality as audited by the

Auditor General and approved by council or a provincial or national

executive.

Baseline Current level of performance that a municipality aims to improve when

setting performance targets. The baseline relates to the level of

performance recorded in a year prior to the planning period.

Basic municipal

service

A municipal service that is necessary to ensure an acceptable and

reasonable quality of life to citizens within that particular area. If not

provided it may endanger the public health and safety or the

environment.

Budget year The financial year for which an annual budget is to be approved –

means a year ending on 30 June.

Cost indicators The overall cost or expenditure of producing a specified quantity of

outputs.

Distribution

indicators

The distribution of capacity to deliver services.

Financial

Statements

Includes at least a statement of financial position, statement of

financial performance, cash-flow statement, notes to these statements

and any other statements that may be prescribed.

General Key

performance

indicators

After consultation with MECs for local government, the Minister may

prescribe general key performance indicators that are appropriate and

applicable to local government generally.

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | GLOSSARY 170

Impact The results of achieving specific outcomes, such as reducing poverty

and creating jobs.

Inputs All the resources that contribute to the production and delivery of

outputs. Inputs are "what we use to do the work". They include

finances, personnel, equipment and buildings.

Integrated

Development Plan

(IDP)

Set out municipal goals and development plans.

National Key

performance areas

• Service delivery & infrastructure

• Economic development

• Municipal transformation and institutional development

• Financial viability and management

• Good governance and community participation

Outcomes The medium-term results for specific beneficiaries that are the

consequence of achieving specific outputs. Outcomes should relate

clearly to an institution's strategic goals and objectives set out in its

plans. Outcomes are "what we wish to achieve".

Outputs The final products, or goods and services produced for delivery.

Outputs may be defined as "what we produce or deliver". An output is

a concrete achievement (i.e. a product such as a passport, an action

such as a presentation or immunization, or a service such as

processing an application) that contributes to the achievement of a

Key Result Area.

Performance

Indicator

Indicators should be specified to measure performance in relation to

input, activities, outputs, outcomes and impacts. An indicator is a type

of information used to gauge the extent to

which an output has been achieved (policy developed, presentation

delivered, service rendered)

Performance

Information

Generic term for non-financial information about municipal services

and activities. Can also be used interchangeably with performance

measure.

Performance

Standards:

The minimum acceptable level of performance or the level of

performance that is generally accepted. Standards are informed by

legislative requirements and service-level agreements. Performance

standards are mutually agreed criteria to describe how well work must

be done in terms of quantity and/or quality and timeliness, to clarify the

outputs and related activities of a job by describing what the required

result should be. In this EPMDS performance standards are divided

into indicators and the time factor.

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | GLOSSARY 171

Performance

Targets:

The level of performance that municipalities and its employees strive

to achieve. Performance Targets relate to current baselines and

express a specific level of performance that a municipality aims to

achieve within a given time period.

Service Delivery

Budget

Implementation

Plan

Detailed plan approved by the mayor for implementing the

municipality’s delivery of services; including projections of the revenue

collected and operational and capital expenditure by vote for each

month. Service delivery targets and performance indicators must also

be included.

Vote: One of the main segments into which a budget of a municipality is

divided for appropriation of money for the different departments or

functional areas of the municipality. The Vote specifies the total

amount that is appropriated for the purpose of a specific department or

functional area.

Section 1 of the MFMA defines a “vote” as:

a) one of the main segments into which a budget of a municipality is

divided for the appropriation of money for the different departments or

functional areas of the municipality; and

b) which specifies the total amount that is appropriated for the

purposes of the department or functional area concerned

LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 172

APPENDICES

APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL

ATTENDANCE

APPENDIX A.1 – COUNCILLORS COUNCIL ATTENDANCE

APPENDIX A.1 – COUNCILLORS COUNCIL ATTENDANCE

Full

Time /

Part

Time

FT/PT % % %

1 Caroline Matshidiso Morajane F FT Executive Mayor ANC PR 13/14 93% 7% 0%

2 Lindokuhle Blessing Robert Dhlamini M FT Speaker ANC 2 13/14 93% 7% 0%

3 Maria Mankomo Ntuli F FT MMC ANC 3 13/14 93% 7% 0%

4 Busisiwe Gladys Sekhonde F FT MMC ANC PR 12/13 85% 7% 0%

5 Goodness Sandy Msibi F FT Chief Whip ANC PR 14/14 100% 0% 0%

6 Sibongile Maria Zacarias F PT ANC PR 14/14 100% 0% 0%

7 Makhosazana Sophy Khumalo F PT ANC 1 12/14 86% 14% 0%

8 Loius Jansen van Rensburg M PT DA 4 12/14 86% 14% 0%

9 Joseph Buti Mothopeng M PT ANC 5 13/14 93% 7% 0%

10 Elijah Nicodemus Khehla Shabangu M PT ANC 6 13/14 93% 7% 0%

11 Jabulile Portia Masuku F PT ANC 7 13/14 93% 7% 0%

12 Johannes Jacob van der Wath M PT DA 8 12/14 86% 7% 7%

13 Mandlenkosi Reginald Tshabalala M PT ANC 9 13/14 93% 7% 0%

14 Pieter Thomas Schnetler M PT DA 10 10/14 71% 21% 7%

15 Andrew Sipho Ngwenya M PT ANC 11 12/14 86% 7% 7%

16 Sechaba Stephen Mosia M PT ANC 12 13/14 93% 7% 0%

17 Ntombizifikile Sitshoni F PT ANC 13 14/14 100% 0% 0%

18 Mphikkeleli George Makhanye M PT ANC 14 11/14 79% 7% 14%

19 Nkantolo Tshabalala M PT ANC 15 13/14 93% 7% 0%

20 Harriet Makhosazana Khota F PT ANC PR 10/14 71% 29% 0%

21 Maggie Yaliwe Mahlangu F PT ANC PR 13/14 93% 7% 0%

22 Mapaseka Lizzy Molaba F PT ANC PR 11/14 79% 21% 0%

23 Mahlodi Dorcas Rakitla F PT ANC PR 12/14 86% 14% 0%

24 Nurse Letty Nkosi F PT ANC PR 11/14 79% 7% 14%

25 Fawzia Sarang F PT ANC PR 11/14 79% 21% 0%

26 Buti Saul Zwane M PT ANC PR 9/14 64% 29% 7%

27 Jacob Fanyana Buthelezi M PT DA PR 10/14 72% 14% 14%

28 Jacobus Rosier de Ville M PT DA PR 10/14 72% 14% 14%

29 Phakiso Mphuthi M PT DA PR 12/14 86% 7% 7%

30 Sipho Sydwell Gumede M PT PAC PR 7/14 50% 43% 7%

T A

Percentage

No Apology

for non-

attendance

Note: * Councillors appointed on a proportional basis do not have wards allocated to them

Councillors, Committees Allocated and Council AttendanceCouncil Members Male

(M) /

Female

(F)

Portfolio Political Party

Represented

Ward (W) or

Proportional

Representative

(PR)

Council

Meetings

attended

out of 14

in total

Percentage

Council

Meetings

Attendance

Percentage

Apologies

for non-

attendance


APPENDIX A.2 - COUNCILLOR COMMITTEES ALLOCATION

Councillor Committees Allocation

Councillor Committees Allocated

Political Party

Represented

LBR Dhlamini (Chairperson)

Rules, Ethics, By-laws and Policies Committee

ANC

J B Mothopeng ANC

S G Msibi ANC

S M Zacarias ANC

J R de Ville DA

M S Khumalo (Chairperson)

Local Geographical Names Committee

ANC

S S Mosia ANC

M R Tshabalala ANC

N L Nkosi ANC

N Z E Sitshoni ANC

P Mphuthi DA

M L Molaba (Chairperson)

Corporate Services & Community Services and Safety Oversight Committee

ANC

B S Zwane ANC

M G Makhanye ANC

N Tshabalala ANC

J B Mothopeng (Chairperson)

Technical Services and Development and Planning Oversight Committee

ANC

M R Tshabalala ANC

A S Ngwenya ANC

J P Masuku ANC

S S Gumede PAC

S S Mosia (Chairperson)

Budget & Treasury Oversight Committee

ANC


E N K Shabangu ANC

H M Khota ANC

M D Rakitla ANC

J F Buthelezi DA


APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES

APPENDIX B - COMMITTEES AND THEIR PURPOSES Committees (other than Mayoral / Executive Committee) and Purposes of Committees

Municipal Committees

Purpose of Committee

1. Audit committee

The purpose of the Audit Committee is to advice the municipal Council, the political office-bearers, the accounting officer and Management staff of the municipality on matters relating to:

1. Internal financial control and internal audits;

2. Risk Management;

3. Accounting Policies;

4. The adequacy, reliability and accuracy of financial reporting and information;

5. Performance management;

6. Efffective governance;

7. Compliance with the MFMA, Division of Revenue Act (DoRA) and other applicable legislation;

8. Performance evaluation; and

9. Any other issues referred to it by the Municipality.

2. Performance Audit Committee

In terms of Regulation 14 (c) of the Municipal Planning and Performance Management Regulations, 2001, the Municipality has opted to utilise the established Audit Committee as the Performance Audit Committee and is required to inter alia do the following:

1. Review the quarterly reports submitted to it by the Internal auditors on the performance measurements of the municipality;

2. Review the municipality's performance management system and make recommendations in this regard to the municipal council;

3. At least twice during a financial year submit an audit report to the municipal council;

4. Any other issues referred to it by the Municipality

3. Municipal Public Accounts Committee (MPAC)

MPAC performs an oversight function on behalf of Council and is not a duplication of and should not be confused with the role played by the Audit Committee or that of the Finance Committee.

The primary function of the MPAC is to assist Council to hold the executive and the municipal administration to account and to ensure the effective and efficient use of municipal resources. It executes this function by reviewing the accounts and financial statements of the municipality and exercising oversight on behalf of Council and to report to council on its activities.

MPAC acts independently has the right to refer or receive matters and reports from other committees.

MPAC may inter alia consider the following:

To examine the annual financial statements;

Any audit reports issued on the Annual Financial Statements;

Any reports issued by the Auditor-General on the affairs of the municipality;

Receive reports from the Audit Committee;

Any other report referred to the Committee by Council;

As an Oversight Committee, review the Annual Report on behalf of Council and make recommendations to


Council thereafter;

MPAC may also:

Table reports with findings and recommendations on any financial statements or reports to Council;

Initiate and develop the annual oversight report based on the annual report;

Recommend and initiate any investigation in its area of competence;

Seek information from any councillor, employee or any person outside council when conducting an investigation;

Perform any other functions assigned to it by resolution of Council;

When examining financial statements and audit reports, the committee to consider improvements from previous statements and must monitor the extent to which the committee’s and the Auditor General’s recommendations are implemented.

The outcomes and the resolutions taken by the MPAC must be reported to Council and must be made public.

Council section 79 Oversight Committees

The Council per Council Resolution A96 dated 2012-06-25 established the following committees in terms of section 79 of the Municipal Structures Act, 117 of 1998 to play an oversight role in respect of service delivery and budget implementation:

a) Corporate Services & Community Services and Safety

b) Technical Services & Development and Planning

c) Budget and Treasury

5. Rules, Ethics, By-laws & Policies Committee

Foster and maintain discipline among the Councillors

Monitor the implementation of rules and ethical behaviour of Councillors

Attend to petitions and motions

Monitor the implementation of Council resolutions

Review the standing orders

Propose the establishment of a particular committee

Review the delegations register

Initiate the development, rationalisation and review of by-laws and policies

Perform any other functions assigned to it by resolution of Council

6. Local Geographical Names Committee (LGNC)

To identify or help to identify geographical features for possible name standardisation;

To receive and process submissions/applications from individuals and or organisations regarding the standardization of geographical names;

To conduct public participation programmes in which proposed name changes will be discussed by the relevant stakeholders;

To ensure that the standardization of geographical names takes place within a municipal area of jurisdiction area in line with guidelines published by the Mpumalanga Provincial Geographical Names Committee (MPGNC);

Create an atmosphere and mechanisms including sub structures, suitable for the participation of all stakeholders;

To conduct awareness raising activities about the programme of standandising geographical names and to ensure that the public is adequately informed about such processes;

Receive and strive to resolve any objections related to the process of standardizing geographical names in line with MPGNC guidelines for handling objections;

Prepare and submit reports on a regular basis to Council, the Regional Geographical Names Committee and the MPGNC;

Monitor the implementation of standardized geographical names in its jurisdictional area and report any failure to implement to Council and the MPGNC;


Ensure that all the administration related to the process of standardizing geographic names in its jurisdictional area is properly addressed;

Ensure correspondence with all parties concerned especially the applicants and identifiable objectors as per the applicable MPGNC guidelines;

Interface and interact with the Town Planning, property developers and residents on the naming of any new settlements, streets, public spaces or any related geographic features;

Implement provisions of the SAGNC Act, SAGNC Regulations, Provincial policy and related provincial regulations on the standardisation of geographic names as may be promulgated from time to time.


APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE

Directorate Director/Manager (State title and name)

Use as a spill-over schedule if top 3 tiers cannot be

accomodated in chapter 2 (T2.2.2). T C

Third Tier Structure


APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY

APPENDIX D - FUNCTIONS OF THE MUNICIPALITY Municipal / Entity Functions

MUNICIPAL FUNCTIONS Function Applicable to Municipality (Yes / No)*

Function Applicable to Entity

(Yes / No)

Constitution Schedule 4, Part B functions:

Air pollution No GSDM

Building regulations Yes

Child care facilities No N/A

Electricity and gas reticulation Yes

Firefighting services Yes

Local tourism Yes

Municipal airports No

Municipal planning Yes

Municipal health services No N/A

Municipal public transport No N/A

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

N/A

Stormwater 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

Yes

Beaches and amusement facilities No N/A

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 GSDM

Local amenities Yes

Local sport facilities Yes

Markets No N/A

Municipal abattoirs No N/A

Municipal parks and recreation Yes

Municipal roads Yes


Noise pollution No

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 T D

APPENDIX E – WARD REPORTING

Ward Name (Number) Name of Ward Councillor and

elected Ward committee

members

Committee

established

(Yes / No)

Number of monthly

Committee

meetings held

during the year

Number of monthly

reports submitted

to Speakers Office

on time

Number of

quarterly public

ward meetings

held during year

T E

Functionality of Ward Committees


APPENDIX F – WARD INFORMATION

Capital Programme by Project by Ward: 2013/2014

R' 000

Capital Project Ward(s) affected Works completed (Yes/No)

Water

Installation of water connections to 53 Households in Rooikoppen

11 Complete

Completion of the Rising Main Line 3,4,7 & 10 95% completed

Replacement of AC pipes with uPVC pipes in Lekwa LM.

4 & 10 Complete

Installation of boreholes in rural(farm) areas of Lekwa LM

9, 12 & 13 Complete

Sanitation/Sewerage

Installation of raw water turbine pumping units

10 Complete

Installation of sanitation services in rural (farm) areas

9, 12 & 13 Complete

Refurbishment of the Standerton Waste Water Treatment Works

4 Complete

Electricity

Installation of High mast lights in Lekwa Municipality

1,2,3,4,5,6,7,10,11,12,14&15

Complete

Housing

100% construction and completion of 279 housing units

15, 6, 4, 3 269 out of 279 units complete (10 outstanding)

100% demolition of 150 old housing units as well as reconnection of electricity to the newly completed 150 housing units

1, 2, 4, 6 0 out of 150 housing units demolished and reconnection of electricity to 150 units

100% construction and completion of 33 outstanding housing units

12 16 out of 33 units completed (17 outstanding)

100% construction and completion of three double storey units

6 Three double storey community residential units completed

Commence with the installation of municipal engineering services in Standerton Extension 8

9 water reticulation 80 % complete; sewer 80% complete, stormwater 63% complete; roads 30% complete

100% transfer of ownership and handover of title deeds for 3242 RDP units.

11, 15, 3, 4, 6, 2 1805 title deeds prepared but not yet handed over to beneficiaries

Refuse removal

Construction of Standerton Landfill site 8 Complete


Stormwater

Construction and upgrade of storm water network phase 3

2, 3 & 4 Complete

Sports, Arts & Culture

Construction of Multi-Purpose Community Hall for Sakhile

15 Complete

Sporting Facilities (Sakhile Netball Courts, Mahala Park Netball, Basketball, Sakhiile Swimming Pool and Tennis Court.

2 & 3 All sporting facilities complete except the Sakhile Swimming Pool which is still at 50% and has been shelved due to funding constraints.

Construction of Multi-Purpose Community Hall for Rooikoppen

11 Complete

Roads

Re-construction of roads within Lekwa Municipality phase 3 (Nelson Mandela Road) 8 & 10 Complete

Ward Title: Ward Name (Number)

Capital Projects: Seven Largest in Year 0 (Full List at Appendix O)

R' 000

No. Project Name and detail Total Value

2012/2013 Roll-Over Projects

1 Construction of Multi-Purpose Community Hall for Sakhile R8million

2 Re-construction of roads within Lekwa Municipality phase 3 (Nelson Mandela Road)

R6million

3 Installation of High mast lights in Lekwa Municipality R2 million

4 Installation of water connections to 53 Households in Rooikoppen

R0.5 million

5 Sporting Facilities (Sakhile Netball Courts, Mahala Park Netball, Basketball, Sakhiile Swimming Pool and Tennis Court.

R3.3 million

6 Construction of Multi-Purpose Community Hall for Rooikoppen R1million

7 Construction of Standerton Landfill site R6.5 million

8 Construction and upgrade of storm water network phase 3 R1.2 million

9 Installation of raw water turbine pumping units R1.9 million

2013/2014 Capital Projects

1 Completion of the Rising Main Line R2.25 million

2 Refurbishment of the Standerton Waste Water Treatment Works

R16.8 million

3 Replacement of AC pipes with uPVC pipes in Lekwa LM. R6.252

4 Installation of sanitation services in rural(farm) areas R3 million


5 Installation of boreholes in rural(farm) areas of Lekwa LM R3 million

6 Construction of Multi-Purpose Community Hall for Rooikoppen R7million

T F.1

VOLUME II: ANNUAL FINANCIAL STATEMENTS

Provide the Annual Financial Statements (AFS) to the respective financial year as submitted to the

Auditor-General. The completed AFS will be Volume II of the Annual Report.