stlm.gov.zastlm.gov.za/documents/annual reports/2016/final/final annual repo… · ii contents...

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CONTENTS

CONTENTS ...................................................................................................................................................... ii

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

COMPONENT A: EXECUTIVE MAYOR’S FOREWORD ......................................................................... 1

1.1. EXECUTIVE MAYOR’S FOREWORD ............................................................................................. 1

COMPONENT B: EXECUTIVE SUMMARY .............................................................................................. 3

1.2. MUNICIPAL MANAGER’S FOREWORD ........................................................................................ 3

1.3. MUNICIPAL FUNCTIONS, POPULATION, AND ENVIRONMENTAL OVERVIEW ........................ 5

1.4. SERVICE DELIVERY OVERVIEW ................................................................................................ 11

1.5. FINANCIAL HEALTH OVERVIEW................................................................................................. 13

1.6. ORGANISATIONAL DEVELOPMENT OVERVIEW ...................................................................... 15

1.7. AUDITOR-GENERAL’S REPORT ................................................................................................. 16

1.8. STATUTORY ANNUAL REPORT PROCESS ............................................................................... 17

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

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

2.1. POLITICAL GOVERNANCE .......................................................................................................... 20

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

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

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

COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ............................................... 26

2.4. PUBLIC MEETINGS ...................................................................................................................... 26

2.5. IDP PARTICIPATION AND ALIGNMENT ...................................................................................... 28

COMPONENT D: CORPORATE GOVERNANCE .................................................................................. 28

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

2.7. ANTI-CORRUPTION AND FRAUD ............................................................................................... 30

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

2.9. BY-LAWS ....................................................................................................................................... 33

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

2.11. PUBLIC SATISFACTION ON MUNICIPAL SERVICES ................................................................ 34

CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) .................. 36

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COMPONENT A: BASIC SERVICES ...................................................................................................... 38

3.1. WATER PROVISION ..................................................................................................................... 38

3.2. WASTE WATER (SANITATION) PROVISION .............................................................................. 46

3.3. ELECTRICITY ................................................................................................................................ 53

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

DISPOSAL, STREET CLEANING, AND RECYCLING) ................................................................ 60

3.5. HOUSING ...................................................................................................................................... 69

3.6. FREE BASIC SERVICES AND INDIGENT SUPPORT ................................................................. 73

COMPONENT B: ROAD TRANSPORT AND Storm water drainage ................................................... 76

3.7. ROADS .......................................................................................................................................... 76

3.8. TRANSPORT (LICENSING) SERVICES ....................................................................................... 81

3.9. WASTE WATER (STORM WATER DRAINAGE) .......................................................................... 82

COMPONENT C: PLANNING AND DEVELOPMENT ............................................................................ 85

3.10. PLANNING INTRODUCTION TO PHYSICAL PLANNING ........................................................... 85

3.11. LOCAL ECONOMIC DEVELOPMENT .......................................................................................... 90

COMPONENT D: COMMUNITY AND SOCIAL SERVICES ................................................................... 95

3.12(A). LIBRARIES ..................................................................................................................... 96

3.12(B). MUNICIPAL BUILDINGS .............................................................................................. 101

3.13. CEMETERIES AND CREMATORIUMS ...................................................................................... 106

3.14. CHILDCARE, AGED CARE, AND SOCIAL SPECIAL PROGRAMMES ..................................... 110

3.15. YOUTH DEVELOPMENT ............................................................................................................ 114

COMPONENT E: ENVIRONMENTAL PROTECTION .......................................................................... 117

3.16. POLLUTION CONTROL .............................................................................................................. 117

COMPONENT F: HEALTH .................................................................................................................... 119

3.17. HEALTH INSPECTIONS ............................................................................................................. 119

COMPONENT G: TRAFFIC, SECURITY, AND SAFETY ..................................................................... 121

3.18. TRAFFIC AND SECURITY .......................................................................................................... 121

3.19. FIRE SERVICES AND DISASTER MANAGEMENT ................................................................... 125

COMPONENT H: SPORT AND RECREATION .................................................................................... 129

3.20. PARKS, SPORT, AND RECREATION ........................................................................................ 129

COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES .................................... 133

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3.21. EXECUTIVE AND COUNCIL ....................................................................................................... 133

3.22. FINANCIAL SERVICES ............................................................................................................... 136

3.23. HUMAN RESOURCE SERVICES ............................................................................................... 141

3.24. INFORMATION AND COMMUNICATION TECHNOLOGY SERVICES ..................................... 145

3.25. INTEGRATED DEVELOPMENT PLAN SERVICES .................................................................... 150

3.26. PROPERTY, LEGAL, RISK MANAGEMENT, AND PROCUREMENT SERVICES .................... 153

COMPONENT J: ORGANISATIONAL PERFORMANCE SCORECARD ............................................ 158

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE REPORT PART II) ................................................................................................................................................................. 159

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL ........................................... 160

4.1. EMPLOYEE TOTALS, TURNOVER, AND VACANCIES ............................................................ 160

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE ....................................................... 165

4.2. POLICIES ..................................................................................................................................... 166

4.3. INJURIES, SICKNESS, AND SUSPENSIONS ............................................................................ 168

4.4. PERFORMANCE REWARDS ...................................................................................................... 170

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ................................................ 170

4.5. SKILLS DEVELOPMENT AND TRAINING .................................................................................. 171

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE .................................................. 174

4.6. EMPLOYEE EXPENDITURE ....................................................................................................... 174

CHAPTER 5 – FINANCIAL PERFORMANCE ............................................................................................ 177

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE .................................................. 178

5.1. STATEMENTS OF FINANCIAL PERFORMANCE ...................................................................... 179

5.2. GRANTS ...................................................................................................................................... 183

5.3. ASSET MANAGEMENT .............................................................................................................. 185

5.4. FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS ................................... 189

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET ............................................................. 195

5.5. CAPITAL EXPENDITURE ........................................................................................................... 195

5.6. SOURCES OF FINANCE ............................................................................................................ 196

5.7. CAPITAL SPENDING ON FIVE LARGEST PROJECTS ............................................................ 199

5.8. BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW .................................. 201

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS ............................................. 203

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5.9. CASH FLOW ................................................................................................................................ 204

5.10. BORROWING AND INVESTMENTS ........................................................................................... 206

COMPONENT D: OTHER FINANCIAL MATTERS .............................................................................. 208

5.11. SUPPLY CHAIN MANAGEMENT ................................................................................................ 208

5.12. GRAP COMPLIANCE .................................................................................................................. 208

CHAPTER 6 – AUDITOR-GENERAL AUDIT FINDINGS ..................................................................... 209

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS .......................... 210

6.1. AUDITOR-GENERAL REPORTS PREVIOUS YEAR ................................................................. 210

COMPONENT B: AUDITOR-GENERAL OPINION CURRENT YEAR ................................................. 210

6.2. AUDITOR-GENERAL REPORT – CURRENT YEAR .................................................................. 210

GLOSSARY ................................................................................................................................................. 213

APPENDICES ...................................................................................................................................... 215

APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE ...... 215

APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES ........................................................ 218

APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE ........................................................... 220

APPENDIX D – FUNCTIONS OF MUNICIPALIty ................................................................................. 222

APPENDIX E –WARD REPORTING ..................................................................................................... 173

APPENDIX F –WARD INFORMATION ................................................................................................. 175

APPENDIX G: RECOMMENDATIONS OF THE AUDIT COMMITTEE ................................................ 179

APPENDIX H: LONG-TERM CONTRACTS AND PUBLIC-PRIVATE PARTNERSHIP ...................... 185

APPENDIX I – MUNICIPAL ENTITY/SERVICE PROVIDER PERFORMANCE SCHEDULE .............. 185

APPENDIX J – DISCLOSURE OF FINANCIAL INTEREST ................................................................. 178

APPENDIX K(I) – REVENUE COLLECTION PERFORMANCE BY VOTE .......................................... 181

APPENDIX K(II) – REVENUE COLLECTION PERFORMANCE BY SOURCE ................................... 182

APPENDIX L – CONDITIONAL GRANTS RECEIVED (EXCLUDING MIG ......................................... 183

APPENDIX M (i, II) – CAPITAL EXPENDITURE -NEW ASSETS PROGRAMME AND Upgrade/Renewal Programme .................................................................................. 185

APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 2015 ................................................ 191

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APPENDIX O – CAPITAL PROGRAME BY PROJECTS BY WARD CURRENT YEAR .................... 203

APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOL AND CLINICS ........................ 207

APPENDIX Q – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION ........ 209

APPENDIX R – DECLARATION OF GRANTS MADE BY THE MUNICIPALITY ................................ 209

APPENDIX S – DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71 ...... 210

APPENDIX T – NATIONAL AND PROVINCIAL OUTCOME FOR LOCAL GOVERNMENT .............. 210

APPENDIX U – ANNUAL PERFORMANCE REPORT ......................................................................... 261

APPENDIX V: AUDITOR-GENERAL’S REPORT 2015/2016 .............................................................. 300

APPENDIX W: SENIOR OFFICIALS COMMENTS on the AUDITOR-GENERAL’S REPORT 2015/2016 ..................................................................................................................... 300

VOLUME II: ANNUAL FINANCIAL STATEMENTS 2015/2016 ........................................................... 300

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ABBREVIATIONS AND ACRONYMS ABET Adult Basic Education and Training B-BBEE Broad-Based Black Economic Empowerment CBD Central Business District CBO Community-Based Organisation CCIFSA Creative Culture Industries Federation of South Africa CDW Community Development Worker CETA Construction Education and Training Agency CFO Chief Financial Officer CHBC Community Home-Based Care COGTA Department of Cooperative Governance and Traditional Affairs COP 17 17th Conference of the Parties CRR Capital Replacement Reserve CWP Community Works Programme DoRA Division of Revenue Act EEA Employment Equity Act EPWP Expanded Public Works Programme ESKOM Electricity Supply Commission FBS Free Basic Services FMG Financial Management Grant GAMAP Generally Accepted Municipal Accounting Practice GDP Gross Domestic Product GIS Geographic Information System GRAP Generally Recognised Accounting Practice HH Household HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome HOD Head of Department HR Human Resource HRD Human Resource Development ICT Information and Communication Technology IDP Integrated Development Plan IEM Integrated Environmental Management IGR Intergovernmental Relations INEP Integrated National Electrification Programme ISDF Integrated Spatial Development Framework ISRDP Integrated Sustainable Rural Development Programme ITP Integrated Transport Plan IWMP Integrated Waste Management Plan KPA Key Performance Area KPI Key Performance Indicator KPR Key Performance Results LED Local Economic Development LGDS Local Government Development Services LGSETA Local Government Sector Education Training Authority LM Local Municipality LRAD Land Reform for Agricultural Development LRC Local Reference Committee M&E Monitoring and Evaluation MDG Millennium Development Goals MDOE Mpumalanga Department of Education MEC Member of Executive Council MFMA Municipal Finance Management Act MIG Municipal Infrastructure Grant

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MM Municipal Manager MMC Member of the Mayoral Committee MP313 Steve Tshwete Municipality (Middelburg Municipality 313) MPAC Municipal Public Accounts Committee MPCC Multi-Purpose Community Centre MSA Local Government Municipal Systems Act MSA Local Government Structures Act MSIG Municipal Systems & Implementation Grant MSP Master System Plan MVA Mega Volt Amp NAFCOC National African Federated Chamber of Commerce and Industry NDM Nkangala District Municipality NDOT National Department of Transport NDP National Development Plan NEMA National Environmental Management Act NEPAD New Partnership for Africa’s Development NER National Electricity Regulator NGO Non-Governmental Organisation NSDP National Spatial Development Perspective NWMS National Waste Management Strategy OB Operational Budget OHS Occupational Health and Safety ORHVS Operating Regulations for High Voltage Systems OVS Operation Vuka Sisebente PGDS Provincial Growth and Development Strategy PHC1 Primary Health Care PHD2 Provincial Health Department PMS Performance Management System PPP Public-Private Partnership RDP Reconstruction Development Programme REDS Regional Electricity Distribution System ROD Record of Decision RSC Regional Service Council SABS South African Bureau of Standards SACOB South African Chamber of Business SALGA South African Local Government Association SANAC South African National AIDS Council SANS South African National Standards SAPS South African Police Service SCADA Supervisory Control and Data Acquisition SCM Supply Chain Management SDBIP Service Delivery Budget Implementation Plan SDF Spatial Development Framework SDP Skills Development Plan SETA Sector Education Training Authority SG Surveyor-General SLA Service Level Agreement SMME Small, Medium and Micro Enterprises STLM Steve Tshwete Local Municipality VAT Value-Added Tax WPSP White Paper on Strategic Planning WSA Water Services Authority WWTW Waste Water Treatment Works FTE Full Time Equivalent

Chapter 1 – Mayor’s Foreword and Executive Summary ANNUAL REPORT – 2015/2016

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CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

COMPONENT A: EXECUTIVE MAYOR’S FOREWORD

1.1. EXECUTIVE MAYOR’S FOREWORD EXECUTIVE MAYOR’S FOREWORD

During the year under review, all the activities undertaken by this municipality were aimed at achieving our vision, which is:

“To be the leading community-driven municipality in the provision of sustainable services and developmental programmes”

This 2015/2016 Annual Report presented here by the Steve Tshwete Local Municipality seeks to first meet the legal requirement as set out by various pieces of legislation such as Section 46 of the Local Government: Municipal Systems Act No. 32 of 2000 and Sections 121 and 127(2) of the Local Government: Municipal Finance Management Act No. 56 of 2003.

Everyone directly linked to this municipal council, all councillors, and staff members worked diligently during the past financial year to achieve the above-mentioned vision of our municipality. They also contributed towards us achieving our 6th consecutive unqualified audit. The commitment from all councillors and members of the Mayoral Committee and employees cannot be disputed if one looks at all the achievements, and I want to thank each and every one of them. To maintain the high standard of service that the institution is accustomed to took much effort and hard work from everybody.

We have succeeded in taking Council closer to the community, by holding our council sittings to areas where people live. This gave an opportunity for the entire community to understand how the municipal council operates. We also increased the Mayoral Outreaches in an effort to have a closer relationship with the citizens and to remain in touch with them. All ward councillors were assigned to have at least a six (6) ward committee and community meetings per annum within 14 days after each ordinary council sitting and submit their reports to Council for consideration. The Premier of the province launched the Operation Vuka Sisebente (OVS) programme whereby all municipalities are expected to roll out in their respective wards. On


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11th September 2015, all members of council of stakeholders were trained within the Steve Tshwete municipality on the OVS programme. To date, a majority of the OVS sites are operational.

Council had strengthened the oversight role by making sure that all Section 79 committee and 80 are functioning well and reporting to Council as per their terms of reference. These committees of council had enabled the municipality to stay put to the strategic objectives as stipulated in the Integrated Development Plan (IDP) by monitoring departments’ performance on a quarterly basis. Issues raised by ward committees through various outreach meetings and structures were reported back to Council as to how these matters were resolved.

The development of our plans was guided by the National Development Plan (NDP), Provincial Growth and Development Strategy (PGDS), Mpumalanga Vision 2030, Mpumalanga Economic Growth and Development Strategy, and District IDP Framework’s imperatives. In terms of Intergovernmental Relations (IGR), the municipality is taking part in all IGR structures from provincial and district, e.g. Premiers’ Coordinating Forum and District Mayor’s Forum, chief financial officers (CFOs), and the South African Local Government Association (SALGA), where issues of mutual interest are discussed.

As part of stimulating economic activities and fighting unemployment, Council had approved the Local Economic Development (LED) strategy for the next five years (2016/2021). The strategy already identifies key areas of local economic development such as steel manufacturing and stainless steel initiatives as a steel hub of the province. The green economy and township economy are some of the key elements through which the LED strategy seeks to benefit the community of this municipality.

As a municipality, we lost a great number of employees as a result of death and resignations. We say to those that have passed on, may their souls rest in peace. Those who have retired, we would like them to enjoy their resting period after serving this institution with distinction.

We shall at all times appreciate the prayers from ordinary members of the community and our spiritual leaders who had made it their responsibility to pray for the country, the province, and indeed, for our community. We further appreciate the tremendous support from different stakeholders like the Pastor’s Forum, business, political structures, the youth, non-governmental organizations (NGOs), community-based organizations (CBOs), and other structures from national, provincial, and local levels. I am convinced that our successes are because of the support we get from our community and residents, who continue to pay for their services diligently. In this term of office, we urge all – individually and collectively – to be involved in service delivery activism by utilizing all avenues of communication and interaction.

The successes of this municipality and the high standard of service delivery would not have been possible if it were not for the total support of many self-sacrificing individuals. These include every councillor, every employee, and each and every resident of the Steve Tshwete Local Municipality.

Thank you very much to everyone for their positive contributions towards another successful year for this municipality, and we sincerely hope you will continue doing the same for many years to come.

Cllr M.A. Masina Executive Mayor


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COMPONENT B: EXECUTIVE SUMMARY

1.2. MUNICIPAL MANAGER’S FOREWORD MUNICIPAL MANAGER’S OVERVIEW

This 2015/2016 Annual Report of the Steve Tshwete Local Municipality reflects on the tremendous achievements of its priorities which are aligned to the Back to Basics principles. The municipality performed well in the following areas:

Provision, upgrading, and maintenance of services in a sustainable manner

Remarkable strides were made in the provision of basic services wherein a new water system connecting to a total of 273 domestic stands and 26 businesses in urban areas – through water tankers and boreholes – was used in farm areas. There was a replacement of 6.8 km of old water pipes with asbestos-cement pipes. Also, 235 new connections with sewer for domestic use and 26 for new businesses were made.

More than 7.5 km of roads were tarred, with a further 5.8 km of the roads resealed. Additionally, 186 km roads, especially in rural areas, were gravelled and graded. A total of 3.5 km of storm water and drainage system was constructed.

Some 628 new houses were connected with electricity. Moreover, 55 for both business and institutional electric connections were completed, while 13 high masts were commissioned.

Financial viability as a result of sound financial management and discipline

The municipality prudently focused on maintaining fiscal discipline under the period of harsh economic challenges which confronted mining and manufacturing sectors. We have maintained a good payment rate for all our debtors. Despite this, there is concern regarding the increase of debtors in the debtors’ book. There was a fully funded budget to deal with both capital and operations of municipal activities. There were no new borrowings, and the ability to serve existing loans and to maintain diverse investments has improved. Focus was also placed on internal audit, risk management, and audit action plan to preserve a good financial audit opinion.

In the 2015/2016 financial year, budget expectations were realised. The following budget figures were recorded after the budget adjustment: A budgeted income amount of R1 400 333 997 was


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recognised and an amount of R1 438 768 829 as expenditure. There was a budget surplus of R69 379 796.

Good governance, separation of powers, and observing service standards

During the 2015/2016 financial year, the municipality continued to comply with the King III principles, wherein council committees were established with proper terms of reference, annual schedule of meetings and activities, and separation of powers. These committees frequently monitored the implementation of council resolutions and activities.

Economic development

After a successful International Investment Symposium in the previous year, positive results were realised through the selling of both industrial and business stands. New industries, shopping complexes, and businesses have been developed, which contributed positively to economic growth and reduction of unemployment and poverty, at the same time increasing Council’s revenue (tax base). A good relationship with the business community was recognised with joint activities and a successful Township Economic Revitalisation Summit.

Community involvement in Council business

Council continued to improve the community and stakeholders with regard to decision-making, implementation, and monitoring. This was done through a ward participatory system, Mayoral Outreaches, various stakeholders’ forums, and the introduction of OVS.

During the year under review, the municipality operated without a full staff complement of senior management, namely, the Municipal Manager (serving as a Section 56 manager – for both Executive Director’s Corporate Services and Executive Director’s Infrastructure Services) whose last working day was 30 December 2015. This left challenges and risk on institutional memory and pressure on the existing senior management.

In 2015/2016, the municipality prides itself for the following achieved deliverables:

Extension of garden refuse services to an additional 6 000 households (HHs) and the creation of one additional transfer station

South 32 Mine constructed 50 low-cost houses on behalf of the municipality, and the process of servicing 740 stands to accommodate the gap market was commenced

Together with partnership with the private sector, developed an Early Childhood Centre and training of 137 educators dealing with preschools and a variety of activities

Development of parks and provision of sport and recreation facilities One new cemetery developed and another upgraded Being part of the international community of COP 17 in dealing with global environmental

issues and implementation of policies and programmes

For political wisdom and leadership, guidance was provided to the administration. Sacrifices made and the dedication of management and employees, as well as the excellent cooperation with the district municipality, provincial departments, and all stakeholders are much appreciated.

S.M. Mnguni Acting Municipal Manager


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1.3. MUNICIPAL FUNCTIONS, POPULATION, AND ENVIRONMENTAL OVERVIEW Introduction

According to Statistic South Africa, in 2011 this municipality had a population of 229 831 with a 4.7% annual population growth rate, which put it to approximately 276 181 in 2015. The unemployment rate is around 19.7%. The municipality has over 73 000 formal households with access to basic municipal services. The main economic activities are coal mining, manufacturing, trade, community services, and agriculture, with an average of 1% economic growth.

The municipality has been determined as Category B in terms of Section 9 of the Local Government: Municipal Structures Act, No. 117 of 1998 with both executive and legislative authority vested in the municipal council. The Council comprises 58 elected councillors (29 ward representatives and 29 proportional representation).

The political head of the municipality is the Executive Mayor who is assisted by six (6) members of the Mayoral Committee (MMCs) elected in terms of Section 60 of the Act. Council further created six (6) Section 80 committees to also assist the Executive Mayor. Furthermore, Council established eight (8) Section 79 committees to play a political oversight role on the functions of Council. These committees included the Municipal Public Accounts Committee (MPAC) and the Rules and Ethics Committee.

The Speaker of the Council played a role of being the Chairperson of the Council and leading the process of public participation in consultation with the Executive Mayor. The Council Whip assisted the Speaker in the affairs of councillors and ensuring that all pieces of legislation, policies, and procedures are observed. Council further established other independent committees, namely, the Audit Committee shared with Nkangala District Municipality (NDM) and the Risk Committee that plays a more technical role in assisting Council in executing its functions.

The administration of the municipality is headed by the Municipal Manager (acting) as the Accounting Officer. He is supported by four (4) executive directors (Section 56 employees) and a staff complement of over 1 400 with a proper organisational structure and job descriptions. The delegation of authority document was approved by Council and is being implemented.

The community is involved in the functions of the Council through established ward committees chaired by ward councillors and administratively supported by municipal officials and community development workers (CDWs). There is a system developed for all items to and from ward committees in order to find a structured way to Council.


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INTRODUCTION TO BACKGROUND DATA

The Steve Tshwete Municipality is a Category B municipality situated in the Nkangala District of Mpumalanga Province. It is positioned some 150 km east of Pretoria on the way to Mbombela, and it covers a geographic area of 3 997 km². The municipality is well located in that it is traversed by the Maputo Development Corridor, the Middelburg/Steelpoort mining resource link, as well as the Middelburg/Bethal/Ermelo/Richards Bay Corridor. Furthermore, a number of national and provincial roads also run through the area.

Steve Tshwete derives its mandate from Section 152 of the Constitution. It provides most of the services as stated in the powers and functions of local municipalities as stated in the Constitution, schedule 4, part B (see Appendix D).

The municipality is comprised of two primary nodal points. These are Middelburg/Mhluzi, which is the main commercial and administrative centre, and the much smaller Hendrina/Kwazamokuhle near the south/east boundary. Other than Middelburg and Hendrina, the remainder of the municipal area consists of three settlement categories described below for planning purposes.

The first category consists of small agricultural service villages, such as Somaphepha (Kwa-Makalane), Sikhululiwe (Mafube), and Doornkop that provide a “corner shop” function to a small and localised farming and rural community. Amenities are very limited and focus on only the most basic business and social needs.

The second category of settlement includes the holiday towns of Presidentsrus and Kranspoort. Development in these towns is strictly regulated to maintain a specific character.

The third category of settlement is the towns associated with the mines and power stations in the Steve Tshwete area of jurisdiction. These towns have been developed by Eskom and include Rietkuil, Pullenshope, and Komati. Mining villages, namely, Blinkpan/Koornfontein, Naledi, and Lesedi were developed to accommodate mine employees. Kanhym, a farming company, developed Thokoza and Eikeboom villages. Social services and amenities are usually better developed in the above-mentioned settlements.

In between the villages and settlements referred to above, the area consists of private agricultural properties where mainly maize is cultivated.


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Figure 1: Steve Tshwete Locality Map


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Population Distribution by Age 2011 Census

Age 2001 2011

Male Female Total Male Female Total

Age: 0-4 6 866 6 895 13 761 11 127 11 117 22 245

Age: 5-9 6 900 7 005 13 905 9 048 9 059 18 107

Age: 10-19 14 423 14 935 29 358 18 147 17 979 36 127

Age: 20-29 13 217 13 993 27 210 27 298 22 452 49 750

Age: 30-39 11 978 12 378 24 356 20 730 17 388 38 118

Age: 40-49 9 309 8 370 17 679 15 061 14 239 29 300

Age: 50-59 4 777 4 328 9 105 10 785 9 610 20 395

Age: 60-69 1 945 2 375 4 320 4 836 4 979 9 816

Age: 70+ 1 178 1 899 3 078 2 377 3 597 5 974

Total 70 593 72 178 142 772 119 411 110 421 229 831

HOUSEHOLDS

The population size in terms of the 2011 census was 229 831, and the number of households was 64 971. This yields an average household size of 3.4 persons per household. The census indicated that the municipal population grows by 4.7% per annum.

Socio-economic Status

Year Unemployment Rate Proportion of

Households with No Income

HIV/AIDS Prevalence

2001 35.4% 23.6% 9.7%

2011 19.7% 13% 52.3%


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Overview of Neighborhoods within ‘Name of Municipality’

Settlement Type Households Population

Towns

Middelburg 23 563

Hendrina 682

Subtotal 24 245 0

Townships

Mhluzi 22 401

Kwazamokuhle 5 874

Subtotal 28 275 0

Rural settlements & Villages

Piet Tlou 1 352/300

Rietkuil 1 107

Blinkpan 445

Hope 144

Pullenshope 1120

Sizanane Former Mapimpane/Piet Tlou 818

Komati 642/300

Kranspoort 197/326

Somaphepa 325

Sikhululiwe 415

Subtotal 5 681 0

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Unemployment Rate Proportion ofHouseholds with no

Income

HIV/AIDSPrevalence

%

Socio-economic Status

2001

2011


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Overview of Neighborhoods within ‘Name of Municipality’

Settlement Type Households Population

Informal settlements

Doornkop CPA 4 500/5 577

Newtown 4 000/8 364

Kwazamokuhle informal area 850/778

Others Presidentsrus/Rural farms/Informal settlements 4 900/16 503

Subtotal 14 250 0

Total 724 511/73 670 0 T 1.2.6

Natural Resources

Major Natural Resource Relevance to Community

Coal Power, Empowerment, Work Opportunities

Water (Dams) Consumption, Industrial Use and Agriculture, Recreation

Land Human Settlement, Agriculture and Industries, Business

USE OF NATURAL RESOURCES AND LOCAL ECONOMIC DEVELOPMENT

The Steve Tshwete economy is the second-most dominant in the Nkangala region. Economic activities vary from mining, power generation, metallurgic industries, dry land and subsistence agriculture to eco-tourism. The strong manufacturing industry is dependent on the relatively cheap supply of coal. Coal mining is mainly carried out by opencast techniques, high extraction underground operations, and conventional board and underground pillar operations. The coal mines also provide essential fuel to the local power stations of Hendrina, Komati, and Arnot. Major industries in the Middelburg area include Columbus Steel, Middelburg Ferrochrome, Kanhym Feedlot, and Twizza.

The agriculture, mining, and manufacturing sectors are the main contributors to economic growth and employment creation in the municipality. There is competition for land between the agricultural sector and the mining sector.

Industrial investment within the municipality is increasing at a high rate, which, with other economic spin-offs contribute to the Municipal Local Economic Development.

COMMENT ON BACKGROUND DATA

The municipality uses the census data as the basis for planning together with administrative data. The agriculture, mining, and manufacturing sectors are the main contributors to economic growth and employment creation in the municipality. There is competition for land between the agricultural sector and the mining sector. T 1.2.8


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1.4. SERVICE DELIVERY OVERVIEW

SERVICE DELIVERY INTRODUCTION

As a Water Services Authority (WSA), the municipality is mandated to provide water and sanitation services to all communities within its area of jurisdiction. The municipality is both a Water Services Authority and Water Service Provider. The municipality did not perform Section 78 of the Municipal Systems Act.

Currently, the provision of water services in Middelburg Town and Mhluzi are achieved through bulk water abstraction from Middelburg Dam, purification, storage, and distribution. Sanitation services rendered include sewerage collection, treatment, and disposal. Hendrina Town and Kwazamukuhle Township are served with portable water supplied by Optimum Coal Mine. In rural areas where bulk water services are not available yet, water supplies are provided through boreholes supplemented by water tankering, whereas basic sanitation services are in the form of biological toilets.

The municipality strives to achieve and sustain water services in the manner that satisfies the Blue and Green Drop Certification Programme of the Department of Water and Sanitation. Rapid developments and population increase in Middelburg and surroundings have necessitated the expansion of the main water and wastewater treatment works, namely, Vaalbank WTW and Boskrans Waste Water Treatment Works (WWTW). Amid historical challenges that led to the eventual termination of the contractors in both projects, the first-phase upgrading at Boskrans WWTW was completed in March 2016. The upgrading will improve the effluent quality to some extent to improve the Green Drop Certification Programme score of the municipality. The project for upgrading the Vaalbank WTW is planned to be completed by the middle of September 2016.

Furthermore, those who are indigent continue to benefit from the 10 kL free basic water and basic sanitation services. To create an enabling environment for economic growth, the municipality continues to provide and maintain new municipal road networks. These include streets in both urban and rural areas – surfaced and gravelled. Minor district roads that serve small communities are also maintained due to irregular maintenance by the relevant authorities. The majority of municipal roads are tarred and paved, with gravel roads comprising only 16% of all municipal roads. The condition of most roads is fair to good.

As a NERSA licence holder, the municipality supplies, upgrades, and maintains electricity to all formal townships in accordance with the license conditions. The total energy loss for the 2015/2016 financial year was 8.59%, which is in line if not better than the national average. The municipality will ensure that all energy meters are regularly monitored to detect and correct any losses. Monthly free basic energy (50 kWh) is provided to indigents. The local economy is the second-most dominant in the Nkangala region. Mining, manufacturing, and agriculture are the main contributors to our economic growth and job creation although the retail sector and service industries are also starting to show considerable growth.


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The opening of the Mhluzi Mall and the development of several service industries have contributed largely to the continuous economic expansion. During the year under review, the municipality acquired the remaining +/-160 industrial stands in Middelburg Ext 33, which will enable the municipality to attract industrial investment through the provision of appropriate incentives.

Proportion of Households with Minimum Level of Basic services

Municipality

Services Total Number of HHs

Number of HHs with Access

%

Number of HHs without Access

%

2011 Statistics

Steve Tshwete LM

Water 64 971 63 780 98 1 191 2

Steve Tshwete LM

Sanitation 64 971 63 590 98 1 381 2

Steve Tshwete LM

Electricity 64 971 63 590 91 5 847 9

2015 Municipal Baseline (New additional households that emanated after 2011 statistics and from General Households Survey)

Steve Tshwete LM

Water 73 395/74 186 72 689/73

395 99 706 1

Steve Tshwete LM

Sanitation 73 395/74 186 64 835/64

835 88 8 560 12

Steve Tshwete LM

Electricity 73 395 64 797 88 8 598 12

Additional households are 8 424/9 215

COMMENT ON ACCESS TO BASIC SERVICES

Although the above graph indicates that the provision of basic services is steadily increasing, the number of informal households is simultaneously increasing at a substantial rate, especially in areas such as Doornkop, Newtown, and Kwazamokuhle. This influx is steadily increasing the pressure on Council’s resources for the provision of basic services. T 1.3.3


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1.5. FINANCIAL HEALTH OVERVIEW

The municipality is one of the fastest-growing municipalities in the country within the average of 4.9% population growth; this is also placing additional pressure on our resources. During the year under review, our budget expectations were fully realized. We budgeted for income amounting to R1 400 333 997 and expenditure of R1 438 768 829. By the close of our books at the end of the year, we had obtained an income of R1 301 127 097 (excluding capital grants received and public contributions), and we spent R1 259 580 345, resulting in a surplus of R160 566 004. Capital grants & public contributions was R119 019 252.

For the 2015/2016 financial year, the municipality obtained a clean audit from the Auditor-General. It should be mentioned that the Auditor-General this year not only concentrated on financial matters but also focused on performance management, thereby ensuring that almost all service delivery objectives are fully implemented. The municipality’s capital expenditure remained at 79% (2015: 79%) by the end of 2016. Serious attempts have to be made to ensure that the entire capital budget is fully spent each year.

Financial Overview: 2015/2016

Details Original budget Adjustment Budget Actual

Income:

Grants R238 307 633 R234 209 928 R244 404 918Taxes, Levies and tariffs R1 068 094 474 R1 078 484 262 R1 037 361 554

Other R168 541 033 R195 454 435 R138 379 878Subtotal R1 474 943 140 R1 508 148 625 R1 420 146 349

Less: Expenditure R1 402 830 102 R1 438 768 829 R1 259 575 947

Net total* R72 113 038 R69 379 796 R160 565 995* Note: surplus/(deficit) T 1.4.2

Operating Ratios

Detail %

Employee Cost 29%

Repairs & Maintenance 5%

Finance Charges & Impairment 2% T 1.4.3


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COMMENT ON OPERATING RATIOS

Employee Costs constituted 29% of the total operating budget. Repairs and Maintenance amounted to 5%, but the figure only includes materials. Overall, the municipal assets are in a good state of health. Finance Charges and Redemption contributes 2% to total operating costs. This low percentage enables the municipality to take up additional external funding whenever the need arises. The national norm in this regard is 10% of the operational budget.

T 1.4.3

Total Capital Expenditure: 2013/2014 to 2015/2016

Detail 2013/2014 2014/2015 2015/2016

Original Budget R269 475 860 R217 042 522 R236 368 760

Adjustment Budget R348 087 182 R300 092 819 R323 877 956

Actual R307 235 212 R266 164 932 R274 433 242

T 1.4.4

-

50000 000

100000 000

150000 000

200000 000

250000 000

300000 000

350000 000

400000 000

2013/2014 2014/2015 2015/2016

Total Capital Expenditure

Original Budget Adjustment Budget Actual


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COMMENT ON CAPITAL EXPENDITURE

During the financial year under review, the original budget of R236 368 760 was adjusted to R323 877 956. This includes projects envisaged by the district municipality to the amount of R38 975 026. Although the table indicates that 84% of the capital budget was implemented, it includes public contributions to the amount of R21 998 000. If this is excluded, it means 79% of the municipal capital budget was implemented. From the 284 projects, 242 projects were completed, and 42 projects to the value of R57.4 million were rolled over to the 2016/2017 financial year. This means that 85% of projects planned were successfully implemented. T 1.4.5.1

1.6. ORGANISATIONAL DEVELOPMENT OVERVIEW

ORGANISATIONAL DEVELOPMENT PERFORMANCE

The municipal organisation structure provides for 1 477 permanent positions. By financial year end, 1 373 positions were filled, with a staff turnover of 7.8%. New appointments are made taking into consideration the implementation of the Employment Equity Act 55, 1998. According to the demographic profile of the municipality, black employees constitute 92%, coloured 2.1%, Asian 1.4.%, and white 4.5%. Male and female employees constitute 64% and 35.4% respectively.

The Acting Municipal Manager is the head of the organisation. He is supported by four (4) executive directors (finance, community services, infrastructure services, and corporate services).

The Office of the Executive Mayor is supported by: Deputy Director, Assistant Director: Administration Support, Assistant Director: Special Programmes, and Assistant Director: Youth Development.


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1.7. AUDITOR-GENERAL’S REPORT

AUDITOR-GENERAL’S REPORT: 30 JUNE 2016

The municipality received a clean audit for the year ending 30 June 2016.

The financial statements fairly represent in all material respects the financial position and performance of the municipality.

During the year under review, the municipality maintained and improved the following key steps towards a clean audit:

a) Governance

• Functional Internal Audit and Council • Quarterly performance reviews • Functional Audit Committee • Legislation compliance

b) Financial Management

• Record-keeping and document management • Adherence to reporting requirements • Generally Recognized Accounting Practice (GRAP) compliance to accounting

standards • Monthly balancing of registers and control accounts • Supply Chain Management and compliance • Good relationship with Auditor-General

Based on the audit report and management letter, corrective measures will be implemented through a credible audit action plan with deadlines on matters raised to address identified inefficiencies before the next audit. The municipality remains committed to achieving clean audits. T 1.6.1


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1.8. STATUTORY ANNUAL REPORT PROCESS

No. Activity Time frame

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 Performance Report for the previous financial year

4 Submit draft Annual Report including Annual Financial Statements and Performance Report to Auditor-General

August 5

Annual Performance Report as submitted to Auditor-General to be provided as input to the IDP Analysis Phase

6 Auditor-General audits Annual Report including Annual Financial Statements and Performance data

September- October 7 Municipalities receive and start to address the Auditor-General’s findings

8 Commencement of draft Budget/IDP finalisation for next financial year. Annual Report and Oversight Reports to be used as input

9 Receive management letter and provide final comments on findings November

10 Auditor-General submits audit opinion

11 Mayor tables Annual Report and audited Financial Statements to Council complete with the Auditor-General’s Report

January

12 Audited Annual Report is made public and representation is invited February

13 Oversight Committee assesses Annual Report

14 Council adopts Oversight Report March

15 Council tables next financial year Budget/IDP and invites public representation

16 Oversight Report is made public April

17 Oversight Report is submitted to relevant national and provincial stakeholders and legislature

18 Council approves next financial year Budget/IDP May

19 Make public approved Budget and IDP June

20 Finalize Service Delivery Budget Implementation Plan (SDBIP) and Performance Agreements for next financial year

21 Make public SDBIP and Performance Agreements July


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COMMENT ON THE ANNUAL REPORT PROCESS

The municipality compiles its annual report with the guidance of the Municipal Finance Management Act (MFMA) and Circular 63 and adopts it on time, having obtained information for the planning and budgeting processes for the subsequent year. This ensures proper planning. The alignment between IDP, Budget, and Performance Management Systems continues to be one of management’s priorities.

T 1.7.1.1

Chapter 2 – Governance ANNUAL REPORT – 2015/2016

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CHAPTER 2 – GOVERNANCE

INTRODUCTION TO GOVERNANCE

The highest decision-making body in the municipality is Council. It is constituted by elected public representatives during municipal elections as per Electoral Act and the Constitution of the Republic of South Africa.

Once Council is constituted by all elected public representatives, they elect the Speaker, the Chief Whip, and the Executive Mayor. The Executive Mayor then appoints MMCs from amongst the elected councillors.

At Steve Tshwete Local Municipality, the Executive Mayor chooses to have six (6) MMCs to assist the Executive Mayor to carry out his duties. The Council then has Section 79 committees, which assist Council in executing its responsibilities. These committees include portfolio committees, Municipal Public Accounts Committee, ward committees, and other subcommittees.

Furthermore, there are administrative committees which assist Council on governance issues that are led by the Municipal Manager (MM), who is the Accounting Officer. There is the Audit Committee, Risk Committee, Information and Communication Technology (ICT) Steering Committee, Executive Management Committee, Management Committee, directorates meetings, departmental meetings, and other team meetings to assist bigger directorates to execute their respective duties.

T 2.0.1

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE

INTRODUCTION TO POLITICAL AND ADMINISTRATIVE GOVERNANCE

Section 151 (3) of the Constitution states that the Council of a municipality has the right to govern its own initiative and the local government affairs of the local community.

The Steve Tshwete Municipality is a Category B municipality situated in the Nkangala District of Mpumalanga Province. The political structure of the Steve Tshwete Local Municipality is comprised of a municipal council consisting of 58 councillors chaired by the Speaker. The municipality has a mayoral executive system.

The Acting Municipal Manager is the administrative head and acts as a link between politicians and the administration. The Municipal Manager is supported by four executive directors.


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2.1. POLITICAL GOVERNANCE

INTRODUCTION TO POLITICAL GOVERNANCE

The position of Speaker is a full-time post, and the incumbent takes responsibility for the running of council meetings in accordance with the approved rules of order. The Speaker is the Chairperson of the Council. The Office of the Council Whip is established to create synergy and to maintain discipline amongst councillors from various political parties. The Council Whip deals with the well-being and attendance meetings by all councillors.

The municipal council consists of 58 councillors, i.e. 29 ward councillors and 29 proportional councillors. Council has an executive mayoral system with Sections 79 and 80 committees.

Section 79 committees of the Council have been established in accordance with the terms of reference of such committees determined by Council. These committees provide general oversight and monitor the activities in the municipality over both the administrative and executive arms of the municipality. The Section 79 committees are chaired by non-executive councillors who are not MMCs.

Section 80 committees assist and report to the Executive Mayor. The Executive Mayor has appointed Mayoral Committee members as chairpersons for each of the committees.

The municipality uses a shared Audit Committee established by the Nkangala District Municipality for itself and some municipalities within the district. The Audit Committee meets at least four times per year and is an independent advisory body that advises Council, political office-bearers, the accounting officer, and the management of the municipality on matters related to internal control, internal audit, risk management, accounting policies, reliability and accuracy of financial reporting and information, performance management, effective governance, compliance with the MFMA, and the Division of Revenue Act. It also provides comments to the MPAC and Council on the annual report.

MPAC is a Section 79 oversight committee which comprises non-executive councillors, with the specific purpose of providing oversight over the executive functionaries of Council to ensure good financial governance in the municipality. MPAC also makes comments and recommendations separately on the annual report to Council via the Mayoral Committee.


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POLITICAL STRUCTURE:

EXECUTIVE MAYOR Cllr M.A. Masina SPEAKER Cllr R.M. Xaba

Responsible for performing Council’s executive functions Chairperson of Council

CHIEF WHIP Cllr B.P. Ndala

Manage councillors and maintain discipline in Council

MEMBERS OF THE MAYORAL EXECUTIVE COMMITTEE:

Cllr D.J. Motsepe

MMC: Environmental Health, Public Facilities, and Cultural Services

Cllr S.D. Nkadimeng

MMC: Spatial Development, Human Settlement, and Housing Administration

Cllr N.J. Mahlangu

MMC: Infrastructure Development & Service Delivery

Cllr E.P. Nkosi

MMC: Community Protection Services

Ald H Philodia

MMC: Corporate Services

Cllr E.F. Mathebula

MMC: Financial Services


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COUNCILLORS

Steve Tshwete Local Municipality (STLM) is comprised of 58 councillors in which 29 councillors are ward representatives and 29 proportional representation. There are nine (9) full-time councilors, namely, the Executive Mayor, Council’s Speaker, Council Whip, and six MMCs. Refer to Appendix A where a full list of councillors can be found (including committee allocations and attendance at council meetings).

Also refer to Appendix B, which sets out committees and committee purposes.

T 2.1.2

POLITICAL DECISION-TAKING

Council is chaired by the Speaker. Policy decisions and resolutions are taken by the Council per recommendation from the Executive Mayor.

The Executive Mayor and six (6) Mayoral Committee Members are required to execute council resolutions. The MMCs are also required to resolve matters delegated to the Executive Mayor by Council.

An administration headed by the Acting Municipal Manager and four (4) executive directors is responsible for the implementation of Council and Mayoral Committee resolutions. Reports regarding policy matters and non-delegated administrative matters are prepared by the administration and submitted to the Mayoral Committee together with recommendations from the Municipal Manager. At the Mayoral Committee, such reports are considered and recommendations or resolutions formulated by the Executive Mayor from subsequent submissions to the Council.

T 2.1.3

2.2. ADMINISTRATIVE GOVERNANCE

INTRODUCTION TO ADMINISTRATIVE GOVERNANCE

The administration is led by the Acting Municipal Manager, who is appointed in terms of Section 54 of the Municipal Systems Act. The Municipal Manager is employed on a contract basis, which includes an annual performance agreement with performance objectives, targets, and procedures for evaluating performance. The Municipal Manager is the Accounting Officer of the municipality.


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The Acting Municipal Manager and other executive directors implement council resolutions, advise Council and its committees, and lead the IDP and Budget planning and implementation processes. There are functions that are delegated by Council to the Municipal Manager, who, in turn, sub-delegated certain functions to the Deputy Municipal Manager and executive directors. Under their leadership, municipal officials attend community consultative meetings and report in management meetings on plans and progress in addressing community issues.

T 2.2.1

TOP ADMINISTRATIVE STRUCTURE

FUNCTION

Acting MUNICIPAL MANAGER Mr S.M. Mnguni

Head of administrative support to Municipal Manager’s office – second in charge to the MM

Acting EXECUTIVE DIRECTOR: CORPORATE

SERVICES

Mr M.E. Mothiba

Provides corporate services to ensure efficient support of organisational processes

EXECUTIVE DIRECTOR: INFRASTRUCTURE

SERVICES

Mr N.B. Thobela

Resigned: 31/12/2015

Provisions infrastructure development, maintenance, and service delivery to ensure sustainable services to all communities

EXECUTIVE DIRECTOR: COMMUNITY SERVICES

Ms C Hlatshwayo

Renders integrated community services to all of the municipality’s communities

EXECUTIVE DIRECTOR: FINANCE SERVICES

Ms E Wassermann

Provides and manages financial services to ensure financial viability, compliance, and reporting


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COMPONENT B: INTERGOVERNMENTAL RELATIONS

INTRODUCTION TO COOPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS

The purpose of intergovernmental relations is to achieve the constitutional mandate for local government by mobilizing resources and strategic partnerships which will ensure cooperation and co-ordination by all stakeholders (national, provincial, and local).

2.3. INTERGOVERNMENTAL RELATIONS

NATIONAL INTERGOVERNMENTAL STRUCTURES

NATIONAL TREASURY – It coordinates the development of the Local Government fiscal framework applicable to municipalities within the context of the Division of Revenue Act. It manages the development of the Local Government Equitable Share formula and ensures compliance with the MFMA to modernise local government budgeting and financial management processes and practices. It provides assistance to improve financial governance and to maximize municipal capacity to deliver services through efficiency, effectiveness and sustainability, and by dealing with corruption. It sets up the accountability cycle by ensuring proper linkages between IDPs, Budgets, SDBIPs, In-Year Reports, Annual Financial Statements, Annual Reports, Oversight Reports, and Audit Reports

The Department of Cooperative Governance and Traditional Affairs (COGTA) – It develops

various policies and guidelines to enable sustainable development to eradicate poverty and develops a service-orientated culture that requires the active participation of the wider community. Community inputs are essential to improve integrated development planning and service delivery. Linked to this is the establishment of performance management, which is a crucial mechanism to improve living conditions for all citizens.

SALGA – It is the national representative body of local government and has a

constitutionally defined mandate. It responds to challenges facing organised local government and addresses past weaknesses.

PROVINCIAL INTERGOVERNMENTAL STRUCTURE OFFICE OF THE PREMIER – It focuses on cooperative and good governance through the

provision of advice and information, coordination, monitoring, and support to local government.


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PROVINCIAL TREASURY – The functions of provincial treasuries are to promote cooperative government amongst role players and assist National Treasury in implementing the MFMA, monitor municipal budgets and outcomes, analyse in-year reports, and take intervention measures to assist municipalities that breach the MFMA. Provincial Treasury has established various units to assist and monitor the municipality. These units specialise in revenue enhancement, assets, accounting standards, and in-year reporting. Through the Munimec meeting and Technical Munimec meetings, various municipal issues in the province are discussed to formulate solutions and plans to improve governance and service delivery. These meetings were conducted quarterly during the financial year.

COGTA MPUMALANGA – To assist and guide in building a clean, effective, efficient,

responsive, and accountable local government. Strengthen partnerships between local government and communities and ensure municipalities meet their mandate of providing basic services.

SALGA – It is the official representative of local government, an employer’s organization

for all municipalities, and sits as the employer in the South African Local Government Bargaining Council.

RELATIONSHIPS WITH MUNICIPAL ENTITITIES

The municipality does not have any municipal entities.

T 2.3.3

DISTRICT INTERGOVERNMENTAL STRUCTURES

The Nkangala District Municipality has a supporting role to play in the planning and coordinating of activities within its boundaries to ensure the provision of services in the district. It is therefore imperative that the capital allocations from the district be based on community needs. These projects are implemented by the district municipality and transferred to the municipality on completion. For the financial year under review, projects to the value of R25.9 million were transferred to the municipality.

The district municipality also assists the municipality with the establishment of the District Shared Audit Committee. This Audit Committee performs both the function of financial and performance auditing. Through this initiative, the municipalities in the district save substantially on the cost of the Audit Committee member’s fees, reimbursement costs, and indirect costs such as printing of agendas, delivery, and taking of minutes.


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COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION

OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION

The following is done by the municipality to ensure widespread and conducive stakeholder participation and accountability:

Media such as local newspapers, ward community meetings, local radio stations, municipal bills, and local communicators forum are utilised to inform communities and stakeholders of Council’s activities.

All messages/information is conveyed in a language/s understood by the general community.

The venues and times for public meetings are well communicated. Furthermore, the municipality ensures that meetings are held at such times convenient for all stakeholders.

Adequate time is allowed for the community, representatives of organisations, and business to report back to their relevant forums and make inputs.

Council meetings are open to the public, and residents are invited to attend. Important documents such as IDP, Budget, and Valuation roll are available at all public libraries within the municipal area.

Ward committee and ward community bi-monthly meetings are convened and serve as a platform for interaction, engagement, and sharing of information.

Various forum’s exists on local, district and provincial level

At least six Mayoral Outreaches were held during the year throughout the municipal area.

CDWs act as a link between government and the community.

2.4. PUBLIC MEETINGS

COMMUNICATION, PARTICIPATION, AND FORUMS

On a regular basis, the municipality engages the community at consultation meetings in an effort to provide feedback on progress in relation to the level of development. It also does this to gather inputs from communities in relation to service delivery needs and to disseminate information on the roles and responsibilities of the municipality.

The Mayoral Outreach Programme is regarded as another form of community consultation. Four Mayoral Outreach meetings were scheduled for the financial year, but eventually as many as 11 were held. The main purpose of this consultation is to ensure that the political


27

principals get closer to the communities and afford members of the community a chance to voice their needs.

The ward committee structures are used to narrow the gap between the municipality and communities, since ward committees have the knowledge and understanding of the residents and communities they represent. Community development workers act as a link between accessing communities in relation to community development initiatives/programmes.

The IDP forum is constituted by councillor representatives from business organisations, mining companies, NGOs/CBOs, government departments, agricultural organisations, parastatal organisations, and stakeholder representatives of unorganised groups. The representatives are given an opportunity to represent community interests and contribute knowledge and ideas, building consensus and support for the planning process itself and ensuring a broader ownership of the outcomes.

Weekly media briefings are held to update the media about the latest information of the municipality. A bulk SMS system is used to disseminate prompt information to the community. Quarterly integrated community izimbizo were held to market and educate the community about government programmes and services. Weekly radio slots were utilised to inform and educate the community about municipal programmes and projects. Quarterly community newsletters were produced and distributed throughout the municipality.

Both the IDP and Multi-year Budget process for the period 2015/2016 was open to the public for comment. The documents were available for inspection at all municipal libraries and on the municipal website: www.stevetshwetelm.gov.za.

WARD COMMITTEES

The purpose of the ward committee system is to provide a channel for public participation and general interaction between the community and Council.

The municipality has an intensive community consultation process that is done at ward level in line with the community-based planning approach. This process stimulates participatory governance by affording community members a fair opportunity to deliberate on issues affecting them in their respective wards. Moreover, this approach was implemented to inevitably include the local community in decision-making, planning, and generally allowing them to play an active part in their own development. To facilitate this community consultation process, 29 ward committees were established, chaired by the ward councillor, and supported by 10 ward committee members. The ward councillor ensures that the interests of all people in the ward are presented in Council. Ward committees meet monthly to discuss, amongst other things, resolutions taken by Council. Appendix E provides details on the effectiveness of the ward committees.


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Public Meetings

Nature and

Purpose of

Meeting

Date 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

Mayoral Outreach (Adelaide Tambo Hall)

08/07/2015 21 3 150 Yes Bi-monthly

Mayoral Outreach (Komati Village Parks) – Wards 03, 04 and 06

16/08/2015 5 2 170 Yes Bi-monthly

Mayoral Outreach (Nazareth) – Ward 10

06/06/2016 3 4 75 Yes Bi-monthly

Mayoral Outreach (Piet Tlou) – Ward 29

26/06/2016 4 6 436 Yes Bi-monthly

T 2.4.3

2.5. IDP PARTICIPATION AND ALIGNMENT

IDP Participation and Alignment Criteria* Yes/No

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

Does the IDP have priorities, objectives, key performance indicators (KPIs), and development strategies?

Yes

Does the IDP have multi-year targets? Yes

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

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

Do the IDP KPIs align to the Section 57 managers? Yes

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

Do the IDP KPIs align with the provincial KPIs on the 12 outcomes? Yes

Were the indicators communicated to the public? Yes

Were the four-quarter aligned reports submitted within the stipulated time frames to the Auditor-General (AG)?

Yes

*Section 26 Municipal Systems Act 2000

COMPONENT D: CORPORATE GOVERNANCE


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OVERVIEW OF CORPORATE GOVERNANCE

The municipality has implemented a system of corporate governance that encourages the effective, efficient, and economic use of resources towards better service delivery and ensures accountability and responsibility for the stewardship of those resources. This governance framework supports sound financial decision-making, ensuring affordable services to the community, guiding funding and financing priorities, and facilitating performance monitoring and review.

During the year under review, the following key governance responsibilities were functional:

Internal audit function, which operates in terms of an approved internal audit plan.

Audit Committee, which operates in accordance with approved terms of reference.

A risk assessment was conducted, which includes a risk management strategy and monitoring of key risks according to a risk register.

An approved Fraud Prevention Plan exists.

A strategic plan was prepared and approved for the financial year, which forms the basis for performance monitoring against the SDBIP, the municipal mandate, predetermined objectives, outputs, indicators, and targets.

A performance management system is in place.

An approved system of delegations exists to maximise administrative and operational efficiency and to provide for adequate checks and balances as required in terms of Section 59 to 65 of the Municipal Systems Act 32 of 2000.

2.6. RISK MANAGEMENT

RISK MANAGEMENT

The effective management of risk is prioritised to ensure that business risks across the organisation are identified and managed on an ongoing basis for the achievement of the municipality’s “vision to become the leading community-driven municipality in the provision of sustainable services and developmental programmes”. The risk categories have been aligned to the strategic objectives in order to identify those risks that directly affect and/or impede the municipality’s ability to achieve those strategic and business objectives.


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During the risk assessment process, management took into account the following five (5) key performance areas (KPAs):

KPA 1: Good Governance and Public Participation

KPA 2: Municipal Transformation and Organisational Development

KPA 3: Financial Viability

KPA 4: Local Economic Development

KPA 5: Service Delivery and Infrastructure Development

Risk management in the municipality is guided and monitored by various committees at Council and administrative levels. These committees include the Senior Management Committee, Risk Management Committee, and the Audit Committee. Additionally, the municipality appointed an internal auditor and chief risk officer as part of the reasonable steps taken to maintain an effective, efficient, and transparent system of financial and general risk management.

Council has adopted the Risk Management Policy, Risk Management Strategy, and Risk registers (strategic and operational) that enable management to proactively identify and respond appropriately to all significant risks that could impact business objectives. In line with the approved Risk Management Policy and Risk Management Strategy, a top-down approach has been adopted in developing the risk profiles of the organisation. The results of the strategic and operational assessments were used to compile a risk register.

The top five risks identified in the municipality are as follows:

Diversion of municipal resources from stated IDP objectives Inadequate strategic direction Loss and theft of municipal assets Insufficient cash resources

Non-compliance with legislation, by-laws, and policies

2.7. ANTI-CORRUPTION AND FRAUD

FRAUD AND ANTI-CORRUPTION STRATEGY

The municipality implemented a Fraud Prevention Plan aligned with the National Anti-Corruption Strategy, which incorporates a Code of Conduct for municipal employees and councillors as well as a Fraud Prevention Policy.

The firm stance of the municipality is that

• fraud and corruption will not be tolerated – zero tolerance will be enforced;


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• all incidents will be investigated and followed up by the application of all remedies available within the full extent of the law;

• all incidents of fraud and corruption will be reported to the South African Police Service (SAPS) for criminal prosecution; and

• losses or damages suffered will be recovered from the responsible employee/councillor if he/she is liable according to the law.

The municipality instituted a fraud hotline as part of the anti-corruption strategy. It also receives reports of possible fraud and corruption from the national fraud hotline as well as from management. The Executive Director Corporate Services investigates every case reported and reports the results to the relevant director and Municipal Manager, who then institute disciplinary action as well as criminal action, where it is deemed necessary.

Non-compliance with policies and procedures is a risk with the potential of seriously impacting the success of the Fraud Prevention Plan. This is addressed by developing clearly communication and training strategies as well as the Fraud Prevention Plan being the standing item on the agendas of the bi-monthly ward committee and ward community meetings. Staff and councillors are workshopped on an annual basis to create awareness of all policies and procedures. Key risks areas identified are as follows:

• Employment practices

• Financial systems and control

• Procurement

• Housing allocations and subsidies

• Security

The effective implementation of the following controls by the municipality limits the risk for fraud and corruption:

• Authorisation controls

• Physical controls

• Arithmetic and accounting controls

• Supervision, which relates to day-to-day transactions

• Segregation of duties

The municipality makes use of the District Shared Audit Committee, which meets at least quarterly; Internal and External Audit; representatives from SALGA and provincial treasury; and the Director: Development and Strategic Support. The Audit Committee reports quarterly to Council.


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2.8. SUPPLY CHAIN MANAGEMENT

OVERVIEW OF SUPPLY CHAIN MANAGEMENT

The Council has developed a Supply Chain Management (SCM) Policy and practices in compliance with the guidelines set out 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, were incorporated into the policy and adopted. The SCM Policy incorporating the above-mentioned regulations, as well as all other relevant pieces of legislation, regulations, and circulars, are annually reviewed during the budget process.

The municipality has established the three (3) bid committee system. No councillors are members of any committee of the committees handling supply chain processes. During the year under review, 139 items were considered, of which 105 were successfully adjudicated.

Supply chain officials attend accredited training modules to meet the requirements of the minimum competency levels. One senior and two supply chain officials are in the process of completing the necessary competency levels. There are 848 (2015: 939) suppliers registered on the municipal supplier database. During the year, stock items to the value of R33.5 million were purchased, while R34.7 million worth of stock items was issued for operations. A total of 6 995 orders were placed to the value of R135.9 million. Two hundred and fifty-one (251) contracts above R100 000 were awarded, with the B-BBEE status level contributions below.

B-BBEE Status Level Number Amount No Certificate 66 R54 780 413Level 1 92 R82 325 839Level 2 15 R40 482 079Level 3 57 R43 182 934Level 4 17 R24 303 664Level 8 4 R1 026 163

During the year under review, the normal procurement process had to be deviated from in 517 (2015: 473) instances to the amount of R51.9 million (2015: R31 million) as per Section 42 of the Supply Chain Management Policy. These deviations constitute 7.4% of the total procurement transactions.


33

2.9. BY-LAWS

Newly Developed Revised

Public Participation Conducted Prior to

Adoption of By-laws (Yes/No)

Dates of Public Participation

By-laws Gazetted* (Yes/No)

Draft Control of Undertakings that Sell

Liquor to the Public No Yes

11/12/2015 to 15/01/2016

No

No

Amendment to the Street

Trading By-laws

Yes 08/04/2016 to

13/05/2016 No

COMMENT ON BY-LAWS

Note: MSA 2000 Section 11(3) (m) provides municipal councils with the legislative authority to pass and implement by-laws for the betterment of the community within the terms of the legislation. The by-laws were advertised as per legislation in the local media for public comments and inputs, which were then consolidated into a report to Council for consideration and approval. The enforcement thereof will be implemented by the Law Enforcement Division within the Community Services Directorate.

T 2.9.1.1

2.10. WEBSITES

Municipal Website: Content and Currency of Material Documents Published on the Municipality Website

Yes/No Publishing Date

Current annual and adjustment budgets and all budget-related documents

Yes After approval by Council

All current budget-related policies Yes Annually

The previous annual report (2014) Yes Annually

The annual report (2015) published/to be published Yes After approval by Council All current performance agreements required in terms of Section 57(1)(b) of the Municipal Systems Act (2000) and resulting scorecards

Yes Annually

All service delivery agreements Yes After approval by Council

All long-term borrowing contracts Yes After approval by Council All supply chain management contracts above R200 000



34

Municipal Website: Content and Currency of Material Documents Published on the Municipality Website

Yes/No Publishing Date

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 2014


Contracts to which subsection (1) of Section 33 apply, subject to subsection (3) of that section


All quarterly reports tabled in the Council in terms of Section 52 (d) during Year 2014


T 2.10.1

COMMENT ON MUNICIPAL WEBSITE CONTENT AND ACCESS

ICT Services as a support function within the municipality works with other directorates and departments to ensure that services reach the community through such facilities as community libraries and multi-purpose community centres (MPCCs). Furthermore, access has been increased by ensuring upwards and backwards compatibility of our systems, to ensure that anyone with a device that can process data and that has access to the Internet can open and access our website content. The municipality should monitor and report on the use of its website by the public, for example, by measuring the number of hits on the website.

T 2.10.1.1

2.11. PUBLIC SATISFACTION ON MUNICIPAL SERVICES

PUBLIC SATISFACTION LEVELS

The municipality is committed to increasing service delivery, which required a deeper insight into the level of satisfaction of its citizenry. To do this, STLM has undertaken to conduct a Community Satisfaction Survey. This survey was conducted across all 29 wards and also looked at the informal and formal business sector.

T 2.11.1


35

Satisfaction Surveys Undertaken During: 2014/2015 and 2015/2016 Subject Matter of Survey Survey Method Survey Date No. of People

Included in Survey

Survey Results

Indicating Satisfaction or

Better (%)*

Overall satisfaction

(a) Municipality Fieldwork

02-31 May 2016

1 051 72%

(b) Municipal Service Delivery Fieldwork 02-31 May

2016 1 051

72%

(c) Mayor Fieldwork 02-31 May

2016 1 051

40.06%

Satisfaction with:

(a) Waste Collection Fieldwork 02-31 May

2016 1 051

92.01%

(b) Road Maintenance Fieldwork 02-31 May

2016 1 051

83.62%

(c) Electricity Supply Fieldwork 02-31 May

2016 1 051

90.59%

(d) Water Supply Fieldwork 02-31 May

2016 1 051

87.36%

(e) Information supplied by municipality to the public

Fieldwork 02-31 May 2016

1 051 60.6%

(f) Opportunities for consultation on municipal affairs

Fieldwork 02-31 May 2016

1 051 78.93%

T 2.11.2

COMMENT ON SATISFACTION LEVELS

There are generally high satisfaction levels with core household services, community services, and safety and by-law enforcement. However, communities felt that the following areas still need improvement:

i. Potholes and speed humps ii. Storm water iii. Programmes for the sick/disabled/aged iv. Youth programmes v. Economic development projects vi. By-law enforcement vii. Action plans to improve services in the above-noted areas need to be drawn up and included in the Annual Performance Plan of the municipality; this will ensure an increase in service delivery in these areas going forward.

Departments have been made aware of the above areas that need improvement and are expected to come up with an action plan as to how they plan to improve on the above.

Chapter 3 – Service Delivery Performance (Report Part I) ANNUAL REPORT – 2015/2016

36

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

INTRODUCTION TO BASIC SERVICES

The main basic services rendered by the infrastructure services directorate of this municipality include water, sanitation, and electricity. The municipality is both a WSA and Water Service Provider; hence, it is mandated to provide water and sanitation to its community.

The funding for the provision of basic services is sourced from internal reserves, municipal infrastructure, and INEPT funding, particularly for the development of low-income areas. The municipality provides free 6 kL of water per household to all consumers in its water supply area. Indigents are receiving free basic water up the 10 kL and free basic sanitation. All consumers in urban areas are connected to the water network with yard connections. Residents in the rural villages and informal settlements are receiving water and sanitations services free of charge. Residents on farms who do not get water from the farm owner are being provided with water through water tankers – also as free basic services. The daily demand for water by the households and various sectors has resulted in the permitted water extraction from the Middelburg Dam being exceeded.

The municipality also provides new infrastructure while upgrading existing infrastructure. It also strives to achieve and sustain water services in the manner that meets the standard requirements of Blue Drop and Green Programme of the Department of Water and Sanitation. Phase I of the Boskrans Waste Water Treatment Works has been completed to address the demand owing to the rapid growth of the town.

The municipality purchases electricity from Eskom and then distributes and sells the electricity to the consumers in its licensed area. Some 50 kWh of electricity is provided to the indigents free of charge on a monthly basis. There is still a backlog of 12% of households that do not have access to electricity. The affected households are mainly farm dwellers.

New road networks are provided, while existing ones are maintained to improve linkages and enhance economic growth. In general, the condition of the municipal roads is fair to good. Road congestion is being experienced due to growth of the town. Trucks passing through the town and those hauling coal contribute to traffic congestion.

T 3.1.0

Currently, 94% of the households have access to water-borne sanitation, while rural and farm dwellers have access to biological toilets or pit latrine/pit toilet.

Phase I upgrade of the Boskrans Waste Water Treatment Works is completed and will improve the effluent quality and Green Drop Certification requirements. Phase II of the


37

upgrading which comprises new inlet works, raw sewerage pump station, and new BNR reactor has commenced and is at the design stage.

There has been increasing demand for basic services due to increasing population growth; hence, Boskrans has been declared one of the fast-growing mining towns.

Some 400 stands in Newtown and 395 stands in Kwazamokuhle Ext 8 have been serviced, while 170 stands in Rockdale and 133 stands in Aerorand West were serviced.

CONCLUSION

The following are the main challenges facing the municipality pertaining to provision of basic services:

Because of farm owners who refuse farm dwellers access to water supply, this could make it difficult to meet the target of 100% access to potable water.

About 23 335 farm dwellers are below the minimum service level of sanitation.

The municipality has exceeded the permitted water extraction quota from the dam.

Drought calls for the investigation of an alternative water source, which is a costly exercise.

Aging infrastructure resulting in frequent power interruptions and water losses due to continuous water pipe bursts was estimated at 28% in the previous financial year.

RECOMMENDATIONS

As much as the municipality is doing well in addressing the issues of provision of basic services within its limited resources, not all challenges of basic service provision have been addressed. Therefore, the following is recommended:

Operating budget for planned maintenance should be prioritised as opposed to capital budget.

Investigation in terms of Section 78 of the Municipal Systems Act should be conducted for provision of services including provision of services to some of the holiday towns such as Kranspoort.

The draft Roads Master Plan and Local Integrated Transport Plans (ITPs) should be reviewed and implemented as a matter of urgency.

A Long-term Infrastructure Plan should be compiled and adopted with the aim of addressing all service provision-related issues.


38

COMPONENT A: BASIC SERVICES

INTRODUCTION TO BASIC SERVICES

The municipality is in a position to provide free basic water (6 kL/HH) to all consumers in the water supply area. Indigents are receiving free basic water up the 10 kL and free basic sanitation. All consumers in the urban areas are connected to the water network with yard connections. Residents in the rural villages and informal settlements are receiving water and sanitation services free of charge. Residents on farms who do not get water from the farm owner are being provided with water from water tankers as a free basic service. The water demand in town currently exceeds the permitted quota; on that account, alternative sources are currently being sought, such as reclaimed mine water.

T 3.1.0

This component includes water; waste water (sanitation); electricity; waste management; and housing services; and a summary of free basic services.

3.1. WATER PROVISION

INTRODUCTION TO WATER PROVISION

Our strategy is to provide quality potable water to all households within the municipality. The aim is to encourage the operators of the Eskom Water Systems to maintain their Blue Drop status. Workshops and training of personnel are regularly provided to our personnel to keep them up to date with technology and provide assistance to other municipalities. The challenges faced in our water systems are the aging infrastructure and increased population. Reclaimed mine water from Middelburg Mines has been identified as an additional water source to augment the water supplies in Middelburg Town.

T 3.1.1

Total Use of Water by Sector (cubic meters)

Agriculture Business Industrial Domestic Unaccountable Water

Losses

Welfare &

Schools

Municipal

2014/2015 2 884 864 469 1 034 961 8 401 805 4 020 990 604 769 468 935

2015/2016 3 486 2 805 299 66 218 8 595 805 3 886 922 351 133 340 097

T 3.1.2


39

COMMENT ON WATER USE BY SECTOR

Currently, the daily water demand from all sectors exceeds the permitted volume from the Middelburg Dam. The municipality has the infrastructure to supply treated sewerage effluent to some of the industries which will be done when the upgrading of the Boskrans WWTW is completed. Raw water from Middelburg Dam is currently supplied to Columbus SS, Ferro Chrome, and Molare Piggery. The construction of infrastructure for the supply of reclaimed mine water from South 32 is currently in the plan and design. The availability of the reclaimed mine water will relieve the water demand to some extent and will benefit the whole of Middelburg. Because of the limited yield of the Klein Olifants River, the mine water is the only alternative source.

T 3.1.2.2

3 66389 351 340

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

An

nu

al W

ater

Use

, Ml

Water Use Sectors

Comparison of Annual Water Used by Sector

2014/2015 Fin Year

2015/16 Fin Year


40

Water Service Delivery Levels Households

Description 2013/2014 2014/2015 2015/2016

Actual Actual Actual

No. No. No.

Water: (above min level) 65 466 72 689 73 395Minimum Service Level and Above (percentage) 99.2% 99.5% 99.9%

Water: (below min level)

Total number of households* 65 466 72 689 73 395* - To include informal settlements ** -based on the previous census *** -growth experienced from 2011 to date T 3.1.3

Access To Water

Access to Water

Proportion of Households with Access to Water

Points*

Proportion of Households with Access to Piped

Water

Proportion of Households

Receiving 6 kL Free#

2013/2014 99.5% 99.5% 100%2014/2015 99.8% 99.8% 100%2015/2016 99.9% 99.9% 100%

T 3.1.5* Means access to 25 litres of potable water per day supplied within 200 m of a household and with a minimum flow of 10 litres per minute

# 6 000 litres of potable water supplied per formal connection per month


41

Water Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2014/2015 2015/2016 2016/17 Target Actual Target Actual Target

Service Indicators *Previous

Year *Previous

Year *Current

Year

(i) (ii) (iii) (iv) (v) (vi) (vii) To provide quality and sufficient water supply and an environment not harmful to human health or well-being

% of HHs (64 971) with access to clean and safe drinking water 100% 101.13% 101.13% 99.89% HH 100.43% 99.9%

% of water loss in all water systems

22%

29.47% 29.47%

25% 28.79% 25%

Hours taken to respond to a water pipe burst 4 4.52 4.52 5 4.26 3

Ensure contribution to climate change n/a n/a n/a

Floodline master plan

Floodline master plan was drafted

n/a

T 3.1.6.


42

Employees – Water Years 1 (2015) Year 0 (2016)

Job Level Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 3 4 3 1 254-6 5 7 7 0 07-9 12 10 10 0 010-12 18 20 18 2 1013-15 6 4 3 1 2516-18 0 1 1 0 019-20 43 48 44 4 8

Total 87 94 86 8 9

Financial Performance: Water Services 2015/2016

Details 2014/2015 2015/2016

Actual Original Budget

Adjustment Budget

Actual Variance to Budget

Total Operational Revenue R94 321 800 R118 332 358 R123 915 857 R125 152 230 5%

Expenditure: Employees R16 342 203 R19 212 954 R19 978 829 R18 042 619 -6% Repairs and Maintenance R3 925 559 R5 216 481 R6 135 269 R4 942 745 -6% Other R54 928 528 R71 241 326 R73 095 626 R50 893 522 -40%Total Operational Expenditure R75 196 290 R95 670 761 R99 209 724 R73 878 887 -29%Net Operational Expenditure R19 125 510 R22 661 597 R24 706 133 R51 273 343 56%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 3.1.8


43

Capital Expenditure Water Services

CAPITAL PROJECTS

2015/2016

Budget Adjustment

Budget Actual

Expenditure

% Variance from

Adjusted Budget

Total Project Value

Total (All) R26 108 516 R48 535 590R 56 339

241 -16.1%

REPLACE PUMP AT MIDDELBURG DAM PUMP STATION R860 000 R700 000 - 100.0% R700 000NEW SECURITY SYSTEMS R100 000 R100 000 - 100.0% R100 000WATER NETWORK KWAZA EXT 8 (400 STANDS) R1 852 316 R4 174 766 R4 132 548 1.0%

R4 174 766

INSTALL BULK FLOW METERS R65 000 R65 000 R52 242 19.6% R65 000REPLACE OLD WATER PIPES IN MIDDELBURG R1 530 000 R2 300 000 R1 253 094 45.5%

R2 300 000

UPGRADE VAALBANK WTP EQUIPMENT R510 000 R1 710 000 R1 645 148 3.8%

R1 710 000

REPLACE OLD WATER PIPES IN HENDRINA/KWAZA R125 000 R125 000 R115 269 7.8% R125 000

REPLACE OLD WATER METERS R200 000 R200 000 R198 759 0.6% R200 000

TREATMENT PLANTS IN HENDRINA/KWAZA R20 000 R20 000 R19 420 2.9% R20 000NEW WATER CONNECTIONS R850 000 R1 400 000 R1 258 246 10.1%

R1 400 000

REPLACE VALVES IN BULK SUPPLY LINES R210 000 R710 000 R318 881 55.1% R710 000

WATER SERVICES: RURAL AREA R235 000 R335 000 R297 880 11.1% R335 000

80 MM WATER PUMP R32 000 R32 000 R29 920 6.5% R32 000STIHL BRUSHCUTTERS R20 000 R15 000 R13 383 10.8% R15 000

RIGID DIE SET R50 000 R50 000 R43 805 12.4% R50 000MINE WATER PROJECT WOESTALLEEN HENDRINA PIPELINE R2 000 000 R1 270 000 R971 824 23.5%

R1 270 000


44


CAPITAL PROJECTS

2015/2016

Budget Adjustment

Budget Actual

Expenditure

% Variance from

Adjusted Budget

Total Project Value

REPLACE OLD WATER METERS R800 000 R1 200 000 R1 199 755 0.0%

R1 200 000

REPLACE OLD WATER METERS R140 000 R200 000 R187 665 6.2% R200 000

VAALBANK WATER TREATMENT PLANT R3 500 000 R12 610 000 R6 396 031 49.3%

R12 610 000

REPLACE OLD WATER PIPES VILLAGES R105 000 R230 000 R163 616 28.9% R230 000

BRUSHCUTTERS R15 000 R15 000 R13 383 10.8% R15 000UPGRADE MECHANICAL AND ELECTRICAL EQUIPMENT R80 000 R80 000 R33 486 58.1% R80 000

REPLACE PLANT & EQUIPMENT R30 000 R30 000 R29 920 0.3% R30 000

BULK WATER SUPPLY ROCKDALE - R163 859 R10 479 300 -6 295.3% R163 859

REPLACE PLANT & EQUIPMENT R62 000 R62 000 R60 060 3.1% R62 000

NEW NETWORK –INDUSTRIAL PARKS - R239 097 R29 035 87.9% R239 097WATER ROCKDALE PHASE - R61 330 R51 336 16.3% R61 330UPGRADING PUMP LINE BETWEEN VAALBANK WTW AND SKIET R1 750 000 R2 400 000 R2 370 925 1.2%

R2 400 000

REPLACE PLANT & EQUIPMENT R200 000 R200 000 R108 098 46.0% R200 000NEW WATER NETWORK FOR NEWTOWN R3 097 200 R4 805 770 R4 805 770 0.0%

R4 805 770

ELEVATED STORAGE TANK: KOORNFORNTEIN - R64 768 R29 770 54.0% R64 768REPLACE OLD WATER PIPES MHLUZI R1 550 000 R2 150 000 R2 018 475 6.1%

R2 150 000

MOVE METER TO STREET R370 000 R800 000 R714 595 10.7% R800 000


45


CAPITAL PROJECTS

2015/2016

Budget Adjustment

Budget Actual

Expenditure

% Variance from

Adjusted Budget

Total Project Value

UPGRADING OF VAALBANK WATERWORKS BUILDINGS R400 000 R400 000 R330 214 17.4% R400 000UPGRADING OF SLEEPING QUATERS PRESIDENTSRUS - R10 000 R8 747 12.5% R10 000UPGRADE BUILDINGS AT KRUGERDAM WATERWORKS R350 000 R350 000 R348 960 0.3% R350 000WATERNETWORK FROM MIDDELBURG MINE TO PIENAARDAM R5 000 000 R4 000 000 R129 432 96.8%

R4 000 000

WATER NETWORK DOORNKOP - R5 257 000 R987 039 81.2%

R5 257 000

NEW 10ML RESERVOIR RIETFONTEIN - - R15 493 210 100% -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 THE OVERALL WATER SERVICES PERFORMANCE

Our five-year target is to provide 99.9% of HHs with access to water services. Failure to meet the target could arise from farm owners who refuse to supply farm dwellers with water and continuous uncontrolled influx. Upgrading of the Vaalbank Water Treatment Works is currently in progress to improve the quality of water and satisfy increased demand. This project will be completed during the 2016/2017 financial year following the termination of the services of the contractor due to non-performance. Completion is planned for mid- September 2016.

T 3.1.10


46

3.2. WASTE WATER (SANITATION) PROVISION

INTRODUCTION TO SANITATION PROVISION

The municipality is committed to ensuring provision of new sanitation infrastructure while upgrading existing infrastructure within MP313 areas. Currently, 94% of Steve Tshwete Local Municipality households have access to water-borne sanitation, whereas rural and farm dwellers have access to biological toilets or pit latrine. Phase I upgrade of the Boskrans Waste Water Treatment Works has been completed and will improve the effluent quality and Green Drop Certification requirements. Phase II of the upgrading has commenced and is at the design stage.

T 3.2.1


47

Sanitation Service Delivery Levels

*Households

Description Ref 2013/2014 2014/2015 2015/2016 2015/2016

Outcome Outcome Outcome Original Budget

Adjusted Budget

Actual

No. No. No. No. No. No. Sanitation/sewerage: (above minimum level)

Flush toilet (connected to sewerage) 38 356 38 606

38 881 00 00

Flush toilet (with septic tank) 410 415 422 00 00

Chemical toilet Biological 10 832 10 832 10 932 1 589 368 00 1 576 478

Pit toilet (ventilated) 00 00 00 00 00 00 Other toilet provisions (above min. service level) Minimum Service Level and Above (subtotal) 49 568 49 853 50 235 Minimum Service Level and Above (percentage) 67% 68% 68%

Sanitation/sewerage: (below minimum level)

Bucket toilet (No bucket system) 00 00 00 00 00 00 Other toilet provisions (below min. service level)

No toilet provisions Below Minimum Service Level

(subtotal farm dwellers) 29 781 29 707 29 607 00 00 00 Below Minimum Service Level (percentage)

46%

46%

40%

Total households 64 310 64 560 73 670

*Total number of households (including informal settlements) T 3.2.3


48

Access to Sanitation

Proportion of Households with Access to Sanitation

2013/2014 64 3102014/2015 64 5602015/2016 73 670

Waste Water (Sanitation) Service Policy Objectives Taken From IDP Service Objectives

Outline Service Targets

2014/2015 2015/2016 2016/2017

Target Actual Target Actual Target

Service Indicators

*Previous

Year

*Previous

Year *Current

Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) Provision of toilets within standard

Additional Households (HHs) provided with minimum sanitation during the year (Number of HHs remaining without minimum sanitation at year end) Informal settlements & farm dwellers

74

16 390

100

16 464

100

16 364

100

16 264

100

16 264

100

16 164

T 3.2.6


49


50

Employees – Sanitation (Waste Water) 2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 1 1 0 04-6 0 1 0 1 1007-9 7 8 7 1 1310-12 14 17 17 0 013-15 8 11 9 2 1816-18 18 14 11 3 2119-20 61 71 64 7 10

Total 109 123 109 14 11

Financial Performance: Sanitation Services

2015/2016

Details

2014/2015 2015/2016 Actual Original

Budget Adjustment

Budget Actual Variance

to Budget

Total Operational Revenue R103 005 469 R103 873 863 R105 478 317 R95 497 956 -9%

Expenditure:

Employees R25 274 097 R29 467 602 R29 807 220 R27 841 897 -6% Repairs and Maintenance R5 314 125 R6 190 585 R7 172 210 R5 587 964 -11%

Other R37 816 623 R52 940 353 R52 597 758 R35 204 747 -50%Total Operational Expenditure R68 404 845 R88 598 540 R89 577 188 R68 634 607 -29%Net Operational Expenditure -R34 600 624 -R15 275 323 -R15 901 129 -R26 863 348 43%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 3.2.8


51

Capital Expenditure: Sanitation Services

Capital Projects

2015/2016 Budget Adjustment

Budget Actual

Expenditure%

Variance from

adjusted budget

Total Project Value

Total (All) R30 907 980 R43 673 799 R28 173 763 35%

OUTFALL SEWER LINES: MALL & GERMAN DEVELOPMENT R450 000 R450 000 - 100.0% R450 000APPLICATION FOR WATER USE LICENCES –WWTW - R148 075 - 100.0% R148 075

SANITATION KWAZA EXT 8 (400 STANDS) R2 200 560 R2 895 640 R2 895 640 0.0% R2 895 640

NEW NETWORKS – AERORAND WEST - R1 900 000 R1 474 825 22.4% R1 900 000REPLACE OLD SEWERLINE – MIDDELBURG/MHLUZI R140 000 R126 000 R119 477 5.2% R126 000REPLACE SEWER PUMPS – PUMP STATIONS R420 000 R420 000 R409 942 2.4% R420 000MAINTAINING INFRASTRUCTURE ASSETS AT KWAZA WWTW R200 000 R200 000 R144 611 27.7% R200 000REFURBISH INFRASTRUCTURE ASSETS – BLINKPAN WWTW R200 000 R300 000 R127 164 57.6% R300 000REFURBISH INFRASTRUCTURE ASSETS – KOMATI WWTW R200 000 R350 000 R208 084 40.5% R350 000

SEWERAGE CONNECTIONS R205 020 R105 020 R58 424 44.4% R105 020SANITATION SERVICES RURAL SETTLEMENTS – BIOLOGICAL R900 000 R894 000 R893 335 0.1% R894 000UPGRADING BOSKRANS WASTE TREATMENT PLANT EQUIPMENT R150 000 R150 000 R145 693 2.9% R150 000

UPGRADE BOSKRANS SEWER PLANT R20 000 000 R26 600 000 R8 093 170 69.6% R26 600 000


52

Capital Expenditure: Sanitation Services

Capital Projects


Budget Actual

Expenditure%

Variance from

adjusted budget

Total Project Value

FENCES AT THE PUMP STATIONS R400 000 R400 000 R352 383 11.9% R400 000UPGRADE KWAZA WASTE WATER TREATMENT PLANT R1 500 000 R260 000 R251 500 3.3% R260 000

REPLACE REDUNDANT EQUIPMENT R35 000 R30 000 R29 920 0.3% R30 000NEW SEWER NETWORKS FOR HENDRINA R600 000 R750 000 R48 366 93.6% R750 000

SANITATION MAFUBE VILLAGE - R695 368 R683 143 1.8% R695 368

SANITATION ROCKDALE PHASE 2 - R692 296 R577 848 16.5% R692 296

NEW SANITATION FOR NEWTOWN EXT 1A R3 307 400 R6 307 400 R6 074 525 3.7% R6 307 400

SECOND PHASE –BOSKRANS - - R5 585 713 100% -Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.2.9

COMMENT ON THE OVERALL PERFORMANCE OF SANITATION SERVICES

The aim is to ensure provision of new sanitation infrastructure while upgrading existing infrastructure. The department is currently servicing more than 400 stands in Newtown. In addition, 395 stands have been serviced in Kwazamokuhle Ext 8, 170 stands in Rockdale, and 133 stands in Aerorand West. Phase I of the upgrading of the Boskrans Waste Water Treatment Works was completed during the year, and work has started on Phase II which comprises new inlet works, raw sewerage pump station, new BNR reactor, and other refurbishments.

T 3.2.10


53

3.3. ELECTRICITY

INTRODUCTION TO ELECTRICAL ENGINEERING

The Electrical Engineering Services Department is licensed to supply the following areas with electricity: Middelburg, Hendrina, Kwazamokuhle, Doornkop, Komati, Blinkpan, and Koornfontein. The structure of the department comprises the following divisions: Small Consumers, Distribution and Planning, and Bulk Connections.

Small Consumer Division’s functions are as follows:

Tariffs determination and management

Management of not more than 80A electrical connections and meters

Premises electrical installation safety compliance

Implementation of the Free Basic Electricity Policy

Distribution Division’s functions are as follows:

Management and implementation of all types of electrical maintenance

Operating in terms of the Operating Regulations for High Voltage Systems (ORHVS)

Continuity of supply, and safety of personnel and equipment

Training, testing, and safety

Preparations of annual reports in terms of NERSA requirements

Streetlight maintenance

Power outage management

Planning and Bulk Connection Division’s functions are as follows:

Management of more than 80A electrical connections and meters

Implementation of capital projects

Approval of electrical designs

Compilation and implementation of IDP, Budget, and SDBIP

Implementation of Electrical Protection schemes and quality of supply

Project management

Management of the Supervisory Control and Data Acquisition (SCADA) system


54

The main planning strategies for the department are as follows:

Installation of bulk infrastructure to cater for services

Increasing the supply capacity of substations in response to increasing demand

Implementation of the draft short- to medium-term Infrastructure Plan

Installation and upgrade of infrastructure and equipment to render a service

Providing infrastructure and connections to all new developments when required

Implementing the Free Basic Electricity Policy

Discouraging tampering by using real-time monitoring systems

Developing a policy and encouraging the utilisation of alternative energy

Contributing towards the mitigation of climate change impacts by reducing carbon emissions

In line with the above-listed strategies, the following were achieved:

Links were installed from Nazareth Substation to Rockdale Switching Station to ensure supply of stands in the area.

Links were installed from Nazareth Substation to Rondebosch Switching Station to ensure supply of stands in the area.

Infrastructure was upgraded by replacing meter boxes, replacement of an MV and LV cable in order to ensure reliability of power supply.

Service connections were made to Rockdale Ext 1 and Electrification of Rockdale Ext 2 (partially)

Installation of high masts in Mafube, Somaphepha, Mhluzi Ext 8 and between Rockville and Mountain View.

T 3.10.1


55

Electricity Service Delivery Levels Households

Description

2011/2012

2013/2014

2014/2015

2015/2016

Actual Actual Actual Actual No. No. No. No.

Energy: (above minimum level) Electricity (at least min. service level) 3 738 3 523 2 450 3 566Electricity – prepaid (min. service level) 33 844 35 302 37 857 37 380 Minimum Service Level and Above

(subtotal) 37 852 38 825 40 307 40 946 Minimum Service Level and Above

(percentage) 76.31% 59.48% 62.04% 55.79%Energy: (below minimum level)

Electricity (<min. service level) 0 0 0 0Electricity – prepaid (<min. service level) 0 0 0 0Other energy sources 0 0 0 0

Below Minimum Service Level (subtotal) 0 0 0 0 Below Minimum Service Level

(percentage) 0 0 0 0Total number of households 50 186 64 971 64 971 73 395 T 3.3.3


56

Electricity Service Policy Objectives Taken From IDP Service Objectives

Outline Service Targets 2014/2015 2015/2016 2016/2017

Target Actual Target Actual Target Service

Indicators *Previous

Year *Previous

Year *Current

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To ensure the provision of affordable and sustainable basic services by upgrading existing infrastructure and providing new infrastructure To provide efficient and sustainable electricity supply to consumers throughout the municipal area

Number of HHs with access to electricity in the licensed area

60.8% 61.17% 60.8% 61.5% 62.25%

62.74%

% of area outages successfully restored within 4 hours (other than equipment failure)

82% 67.61% 67.61% 83% 100% 85%

% of area outages successfully restored within 12 hours (equipment failure, e.g. switchgear, mini-substations, transformers

70% 100% 100% 75% 20% 80%

Number of free basic services consumers registered for – free basic electricity

100% 100% 100% 100% 100% 100%


57

Employees – Electrical Services Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 3 4 3 1 254-6 5 6 5 1 177-9 36 37 36 1 310-12 16 18 18 0 013-15 0 1 0 1 10016-18 18 18 17 1 619-20 30 31 31 0 0

Total 108 115 110 5 4

Financial Performance: Electricity Services

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:

Employees R32 023 072 R36 409 083 R37 327 314 R36 390 782 0% Repairs and Maintenance R16 313 884 R22 306 522 R22 306 522 R18 400 106 -21%

Other R368 192 438 R439 266 276 R438 947 095 R415 080 950 -6%Total Operational Expenditure R416 529 393 R497 981 881 R498 580 931 R469 871 838 -6%Net Operational Expenditure -R105 583 918 -R74 700 201 -R77 205 591 -R64 416 621 -16%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


58

Capital Expenditure: Electricity Services

Capital Projects


Budget Actual

Expenditure

% Variance from

Adjusted

Budget

Total Project Value

Total (All) R58 576

000R65 124

614R52 421

523 24%

REPLACE 11KV SWITCHGEAR - R1 300 000 R714 739 82% R1 300 000ELECTRIFICATION ROCKDALE EXT 2 R9 876 000 R5 710 000 R4 294 018 33% R5 710 000NEW GARAGES FOR 6 VEHICLES - R394 484 R387 741 2% R394 484RDP HOUSE CONNECTIONS NEWTOWN/KWAZA/X24/X6 R160 000 R160 000 R45 211 254% R160 000

REPLACEMENT OF PPMs R150 000 R150 000 R146 345 2% R150 000REPLACE METER KIOSKS R200 000 R200 000 R190 721 5% R200 000INSTALL RING MAIN UNITS R700 000 R700 000 R700 000 0% R700 000NETWORK REINFORCEMENT (REPLACE CABLE ) R1 200 000 R1 200 000 R624 616 92% R1 200 000UPGRADE OF EXISTING HIGH MASTS R200 000 R400 000 R363 709 10% R400 000

LDV 'S REPLACEMENT R950 000 R950 000 R777 615 22% R950 000

GHOLFSIG SUPPLY AREA - R1 700 000 R1 159 552 47% R1 700 000EXTENSION 11: INDUSTRIAL ERVEN CONNECTIONS & MUNIS R1 000 000 R850 000 R849 090 0% R850 000ELECTRICAL CONNECTIONS PREPAID R2 060 000 R2 060 000 R1 674 733 23% R2 060 000

BULK CONNECTIONS R400 000 R400 000 - 100% R400 000REPLACE MINI SUBSTATIONS R800 000 R800 000 R751 444 6% R800 000

REPLACE MV CABLE R2 000 000 R1 290 000 R1 271 440 1% R1 290 000NAZARETH NEW SUBSTATION R9 000 000

R13 920 060

R13 329 053 4%

R13 920 060

ELECTRICAL CONNECTIONS BULK R850 000 R850 000 R847 389 0% R850 000

RONDEBOSCH SUB - R2 210 000 R2 200 885 0% R2 210 000


59

Capital Expenditure: Electricity Services

Capital Projects


Budget Actual

Expenditure

% Variance from

Adjusted

Budget

Total Project Value

FURNITURE & EQUIPMENT – BULK FILERS R8 000 R8 000 R4 556 76% R8 000FENCING OUTDOOR EQUIPMENT T3 R70 000 R70 000 R57 895 21% R70 000ELECTRIFICATION INDUSTRIAL PARK R1 000 000 R1 000 000 R886 079 13% R1 000 000REPLACE SEVEN 88 KV BREAKERS - R40 000 R34 289 17% R40 000

EQUIPMENT R220 000 R220 000 R208 922 5% R220 000SECURITY CAMERAS AT SUB R175 000 R175 000 R120 451 45% R175 000REPLACE STOLEN SERVICES R600 000 R600 000 R597 391 0% R600 000

ASCO LV CABLES R1 200 000 R935 000 R817 150 14% R935 000STREET LIGHTING FITTING UPGRADE R900 000 R1 300 000 R595 704 118% R1 300 000HIGH MAST LIGHTING LOW-INCOME AREAS R3 000 000 R3 000 000 R2 783 256 8% R3 000 000REPLACE CABLES IN PROBLEM AREAS R3 000 000 R3 715 000 R2 084 146 78% R3 715 000ELECTRIFICATION OF NEWTOWN 1A R2 730 000 R2 730 000 R1 262 099 116% R2 730 000

NEWTOWN PROCLAIMED R5 340 000 R4 475 500 R2 292 638 95% R4 475 500

MHLUZI UPGRADE R400 000 R400 000 R386 956 3% R400 000ROCKDALE ELECTRIFICATION

R10 060 000

R10 924 570 R9 755 664 12%

R10 924 570

HIGH MAST LIGHTS R220 000 R180 000 R176 726 2% R180 000FURNITURE & OFFICE EQUIPMENT R7 000 R7 000 R4 775 47% R7 000REPLACEMENT OF STOLEN SERVICES (STREET LIGHTS) R100 000 R100 000 R24 525 308% R100 000Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.3.8


60

COMMENT ON THE OVERALL PERFORMANCE OF ELECTRICITY SERVICES

In line with the above-listed strategies, the following were achieved:

Links were installed from Nazareth Substation to Rockdale Switching Station to ensure supply of stands in the area.

Links were installed from Nazareth Substation to Rondebosch Switching Station to ensure supply of stands in the area.

Infrastructure has been upgraded by replacing meter boxes, replacement of an MV and LV cable in order to ensure reliability of power supply.

Service connections to Rockdale Ext 1 and Electrification of Rockdale Ext 2 (partially).

Installation of high masts in Mafube, Somaphepha, Mhluzi Ext 8, and between Rockville and Mountain View.

3.4. WASTE MANAGEMENT (THIS SECTION TO INCLUDE: WASTE

COLLECTIONS, WASTE DISPOSAL, STREET CLEANING, AND RECYCLING)

INTRODUCTION TO ENVIRONMENTAL AND WASTE MANAGEMENT

Waste removal service

The total number of households with access to waste removal services is 60 218, which brings the total percentage of households with access to waste removal service to 92.68%. The municipal service extends to all municipal towns and Eskom towns but excludes the mining towns – which are self-serviced – Somaphepha, Mafube, and rural areas. Waste removal service is now provided at Kranspoort and Sikhululiwe Village using a communal waste storage facility. The Middelburg area is experiencing spatial growth, both residential and business areas. As a result, the current departmental resources are under pressure to meet the demand for waste collection.

The garden waste removal service was extended through private contractors, and a total of about 20 892 households are beneficiaries of the project with a total budget of R11 million. The service will be maintained in the following areas within the municipality during the 2016/2017 financial year: Mhluzi, Hlalamnandi, Nasaret, Middelburg Ext 24, and Rockdale.

The street cleaning and clearing of illegal dumping services is done by permanent and temporary employees for all the streets in towns, main entrances, and open spaces. Temporary employees are appointed to assist with street cleaning services. The clearing of illegal dumping is done through municipal officials and private contractors.


61

Waste storage and disposal

Currently, there are eight (8) waste transfer stations within the municipality, in Hendrina, Komati, Rietkuil, Doornkop, Dennisig, Rockdale, Middelburg Ext 49, and Bankfontein. There is one additional waste transfer station under construction in Sikhululiwe Village. There is one class B permitted landfill site in Middelburg. Because of the challenge experienced with the spatial growth and lack of air space at the landfill site, the department lodged an application for the extension of the Middelburg landfill site. A Record of Decision (ROD) was issued in February 2014, and construction of 11 000 m2 was completed in the 2015/2016 financial year.

With regard to recycling, there is one buy-back centre in Mhluzi, and reclamation activities are taking place at the landfill site in Middelburg. A total of 92 140 tons of recyclables was received at landfill site, and 3 658 tons of recyclables were processed at the landfill site; some 1 569 tons were recycled at the buy-back centre. There was a decrease in the number of waste quantities received on-site due to waste minimisation projects.

Environmental education and awareness

A total of 25 awareness campaigns were conducted during the course of the financial year. Additional environmental educators have been appointed through the Expanded Public Works Programme (EPWP) called ‘Youth Jobs in Waste’ for a duration of 12 months.

Measures taken to improve performance include the acquisition of additional equipment (three rear-end loading compactors) and appointment of additional personnel to meet the increasing demand for waste management services. They also include the introduction of the garden waste removal service in historically disadvantaged areas; five companies were appointed for a period of 12 months.

The appointment of a waste information officer also had a positive impact on the implementation of environmental awareness campaigns. Temporary employees were appointed for the clearing of illegal dumping and the construction of two waste transfer stations.

All indigent households, including those at informal settlements (Newtown), are provided with a kerbside waste collection service at least once a week. Where there is no kerbside waste collection services, bulk containers are provided at strategic points for collection by the municipality.


62

Solid Waste Service Delivery Levels Households

Description 2014/2015 2015/2016

Actual

No.

Solid Waste Removal: (Minimum level)

Removed at least once a week 60 218 62 215Minimum Service Level and Above (subtotal) 60 218 62 215

Minimum Service Level and Above (percentage) 92.68% 95.76%Solid Waste Removal: (Below minimum level)

Removed less frequently than once a week _ Using communal waste dump _ Using own waste dump 0 Other rubbish disposal _ No rubbish disposal 4 753 2 756

Below Minimum Service Level (subtotal) 4 753 2 756 Below Minimum Service Level (percentage) 7.3% 4.2%

Total number of households 64 971 64 971 T 3.4.2


63

Waste Management Service Policy Objectives Taken From IDP Service Objectives Outline

Service Targets

2014/2015 2015/2016 2016/2017 Target Actual Target Actual


Year *Previous

Year *Current

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To ensure a clean and healthy environment through the provision of regular waste removal services to existing and new developments *% of HHs with access to solid waste removal services

0.5% increase of HHs with access to

waste removal

services by June 2014,

i.e. 87%

87% of HHs with access

to solid waste

removal services

60 218 (92.68%)

HHs provided with

waste removal services.

3 235 additional

HHs

60 218 HHs provided with

waste removal services.

3 235 additional

HHs

95% (2.32% increase in

HHs serviced at Rockdale,

Middelburg). 61 727 HHs

by June 2016

95.76% (3.08% – 1 997 – of

HHs increase. 62 215 of HHs provided with waste removal

services by June 2016

95.76% (3.08% – 1 997 – of HHs

increase. 62 215 of HHs provided with waste removal

services by June 2016

% of additional commercial, institutional, and industrial centres with access to solid waste removal services

100% of additional

commercial, institutional,

and industrial centres

serviced by June 2014

100% ofadditionalcommercial,institutional,andindustrialcentresserviced

100% of businesses

serviced, i.e. 64 of 64

100% of businesses

serviced, i.e. 64 of 64

92% of commercial,

industrial, and

institutional premises

serviced by June 2016,

i.e. additional 25

(1 794)

1 811 commercial,

industrial, and institutional premises


1 811 commercial,

industrial, and institutional premises



64


Service Targets



Year *Previous

Year *Current

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Number of households provided with garden waste services

10 000 HHs provided with garden waste

services 10 000 HHs

provided with garden waste

services


garden waste

services


garden waste

services

10 000 additional HHs to be serviced at Nasaret,

Hlalamnandi, Ext 24, and Rockdale

HHs serviced at Nasaret,

Hlalamnandi, Ext 24, and Rockdale by

June 2016, i.e. additional 5

876

20 892 HHs serviced at

Mhluzi, Tokologo, Nasaret,

Hlalamnandi, Ext 24, and Rockdale

by June 2016

% compliance with permit conditions (Landfill site)

83.5% compliance with permit conditions

86% compliance with permit

conditions by June2014

70% compliance with permit conditions



conditions as at March

2016


conditions by June 2016



% compliance with permit conditions (Transfer stations)










Provision of additional landfill site space

Fencing of the extended portion of the landfill site by

June 2014

EIA authorization

Landfill fenced

Landfill fenced

Project completed

Project completed

Project completed


65


Service Targets



Year *Previous

Year *Current

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii)

% progress towards feasibility of a new landfill site

% progress towards

feasibility of a new landfill site by June

2014

80% feasibility

study

Feasibility report

obtained

Feasibility report

obtained

Project completed

Project completed

Project completed

Number of new waste transfer stations constructed

New transfer stations

provided by June 2014

1 transfer station

2 waste transfer stations

constructed

2 waste transfer stations

constructed

2 new transfer stations


2 new transfer stations


2 new transfer stations provided

by June 2016

To ensure maintenance of greenest municipality status

% compliance with the greenest municipality in 2013/2014

Certification for the

greenest municipality in Mpumalanga for 2013/2014

1st position provincially

and nationally



Provincial greenest

municipality in

Mpumalanga for

2015/2016

2nd runner-up for national greenest

municipality competition 2015/2016

2nd runner-up for national greenest

municipality competition 2015/2016

To ensure compliance with national legislation/policies by reducing the amount of waste disposed at landfill sites through the implementation of appropriate waste minimization strategies


66


Service Targets



Year *Previous

Year *Current

Year *Current Year


Number of waste minimization projects

2 waste minimization

projects established

by June 2014


projects


projects implemented


projects implemented


projects established

by June 2016


projects established by

June 2016


projects established by

June 2016

To contribute towards the growth of the green economy through implementation of waste projects Number of Full Time Equivalent (FTE) jobs created to improve the level of employment

100 FTEs by the end of June 2014

100 FTEs by end of June

2014

72 FTE jobs

created

72 FTE jobs created

80 FTE jobs created in the waste sector by the end of June 2016

36.1 FTE jobs created in the waste sector by the end of

June 2017

36.1 FTE jobs created in the

waste sector by the end of June

2016

To ensure that people are aware of the impact of waste on their health, well-being, and the environment Number of environmental awareness campaigns conducted

12 awareness campaigns to be conducted by June 2014

12 campaigns conducted

18 awareness campaigns conducted

18 awareness campaigns conducted

12 awareness campaigns

to be conducted

by June 2016


conducted by June 2016


conducted by June 2016


67

Employees – Solid Waste Management Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 1 0 1 1004-6 2 3 1 2 677-9 1 2 2 0 010-12 7 8 8 0 013-15 18 21 20 1 516-18 12 12 9 3 2519-20 138 149 147 2 1

Total 179 196 187 9 5

Financial Performance: Solid Waste Management Services

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:


Other R51 207 536 R50 164 290 R50 654 305 R51 548 751 3%Total Operational Expenditure R91 890 087 R92 872 547 R93 747 265 R92 683 483 0%Net Operational Expenditure -R786 167 -R12 971 151 -R13 895 234 -R20 998 186 38%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 3.4.7


68

Capital Expenditure: Waste Management Services

Capital Projects


Budget Actual

Expenditure %

Variance from

Adjusted

Budget

Total Project Value

Total (All) R14 940 764 R14 966 664 R13 391 927 11% PURCHASE 20.5M3 REFUSE COMPACTOR R6 600 000 R7 035 000 - 100% R7 035 000 ROLL-ON ROLL-OFF CONTAINERS R200 000 R165 000 R144 016 13% R165 000 PURCHASE OF 1.75 CUB CONTAINERS R350 000 R350 000 R346 800 1% R350 000 PURCHASE OF STREET BINS R78 000 R70 000 R66 020 6% R70 000 6M3 TIPPER TRUCK R800 000 R825 000 R819 188 1% R825 000 PURCHASE OF 6M3 SKIP CONTAINERS R200 000 R175 000 R171 933 2% R175 000 CONSTRUCTION OF TRANSFER STATION AT SIKHULULIWE R1 800 000 R723 900 R723 900 0% R723 900

30-SEATER BUS - R710 000 R707 369 0% R710 000 EXTENSION OF MIDDELBURG LANDFILL SITE R4 912 764 R4 912 764 R4 912 701 0% R4 912 764 DEVELOP NEW TRANSFER STATIONS - - R5 500 000 100% - Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.4.9

COMMENT ON THE OVERALL PERFORMANCE OF ENVIRONMENTAL AND WASTE MANAGEMENT

Waste collection: An additional 1 997 (95.76.8%) HHs were provided with the waste collection service. The department is aiming to achieve 97% for the 2016/2017 financial year. The service is also inundated with challenges posed by inadequate resources and an aging fleet. To address these challenges, a detailed investigation will be carried out to ascertain the status quo and make recommendations for improvement.


69

In addition, the municipality will be replacing the aged fleet over the next five years. In 2015/2016, we had a baseline of 15 016 HHs with an additional target of 10 000 for the garden waste service, and only 5 876 was achieved, which brings the total to 20 892. The department will maintain garden waste services to 20 892 in the 2016/2017 financial year.

Street cleaning service: Street cleaning was done by own and temporary personnel through the EPWP programme. About 100 temporary personnel were appointed for street cleaning.

Waste storage and disposal facilities: One additional waste transfer station was constructed at Ext 49. A feasibility study for the disposal facility in Hendrina was carried out, and funds were secured from the National Department of Environmental Affairs and the Municipal Infrastructure Grant (MIG) for the extension of the Middelburg landfill site with approximately 11 000 m2. The landfill site was extended with 11 000 m2 with MIG funding of R4.9 million; the work is expected to continue in the 2016/2017 financial year with an additional of 11 000 m2 by the Department of Environmental Affairs.

Awareness and waste minimization programmes: Twenty-five (25) awareness campaigns were made in the 2015/2016 financial year. One waste minimization project was done with the collaboration of the Department of Education, Mhluzi Buy-back Centre, and Coca-Cola Shanduka Beverages.

3.5. HOUSING

INTRODUCTION TO HOUSING

Steve Tshwete Local Municipality subscribes to the notion of integrated and sustainable human settlements. Therefore, the identification and acquisition of well-located land, adequate access to municipal services, and social and economic annuities including transport services, continued to be the key determinant to achieving high levels of integration and sustainable human settlements. The municipality was granted level 2 accreditation status, implying that the municipality is expected to perform level 1 accreditation functions, which entail beneficiary management, subsidy budget planning, and allocation. It is also expected to carry out level 2 accreditation functions, which entail full programme and project management, in addition to the level 1 accreditation functions. In the 2015/2016 financial year, no housing opportunities were allocated to qualifying beneficiaries. Further to the above, the intergovernmental framework that advocates cooperation and collaboration amongst the different spheres of government to deliver services due to the citizenry has been very critical to promoting efficient and effective housing delivery. As a result, the municipality has not experienced community upheavals related to housing notwithstanding the bothersome fact of the mismatch between housing delivery and housing demands.

T 3.5.2


70

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

2012/2013 64 971 53 929 83%2013/2014 65 849 54 809 83.2%2014/2015 66 799 55 759 83.4%2015/2016 86 714 71 022 81.9%

T 3.5.2


71

Housing Service Policy Objectives Taken From IDP Service Objectives


2014/2015 2015/2016 2016/2017

Target

Actual

Target Actual Target

Service Indicators

*Previous Year

*Previous

Year *Current

Year

*Current Yea

r (i) (ii) (iii) (iv) (v) (vi) (vii) (viii)

To provide safety and security to human life To ensure effective coordination and implementation of housing provision

Number of consumers educated

2 000 545 2 000 3 000 1 196 4 000

To prevent illegal occupation of land

Number of notices issued

200 139

200 300 139 400

Number of illegal structures demolished

20 27 20 30 28 40

T 3.5.3


72

Employees – Housing Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 1 1 0 04-6 1 2 1 1 507-9 5 5 5 0 010-12 20 22 21 1 513-15 0 0 0 0 016-18 0 0 0 0 019-20 0 0 0 0 0

Total 27 30 28 2 7

Financial Performance: Housing Services

2015/2016

Details


Budget Adjustment


to Budget

Total Operational Revenue R8 095 221 R1 107 434 R1 107 434 R452 630 -145%

Expenditure:

Employees R8 927 309 R10 241 410 R10 197 543 R9 035 635 -13% Repairs and Maintenance R663 986 R844 080 R919 080 R730 963 -15%

Other R8 494 635 R3 434 900 R3 239 561 R1 682 456 -104%Total Operational Expenditure R18 085 931 R14 520 390 R14 356 184 R11 449 054 -27%Net Operational Expenditure R9 990 710 R13 412 956 R13 248 750 R10 996 423 -22%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 3.5.5

Capital Expenditure: Housing Services

Capital Projects


Budget Actual

Expenditure %

Variance from

Adjusted Budget

Total Project Value

Total (All) R500 000 R520 000 R518 546 0%

REPLACE LDV R350 000 R370 000 R368 676 0% R370 000 PURCHASE MOTORBIKES X 6 R150 000 R150 000 R149 870 0% R150 000 Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate).

T 3.5.6


73

COMMENT ON THE OVERALL PERFORMANCE OF HOUSING SERVICES

The Department of Housing Services managed its operating and capital budget in accordance with the provision made for the 2015/2016 financial year. It is envisaged that greater improvement will be noticed in view of the fact that a head of department (HOD) has been appointed.

T 3.5.7

3.6. FREE BASIC SERVICES AND INDIGENT SUPPORT

INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT

The purpose of the indigent policy is to implement the national initiative to improve the lives of indigents and to improve access to free basic services. The policy is aimed at providing a social safety net to relieve poverty within communities.

The indigent policy has three (3) parts, namely:

physical access to the municipal services;

functional and maintenance of services provided; and

access to services must be properly targeted.

The Council does not have a social welfare division to keep a register of and to evaluate all applications for indigent support. A control system linked to the demand for electricity current (circuit breaker size) must be operated and maintained. This means that all residential consumers for whom it is possible to receive electricity current limited to and controlled by a 20-amp circuit breaker qualify for the free services.

The following free basic services are provided to qualifying indigents:

50 kWh (units) of free basic electricity per month

10 kL of free water per month

100% rebate on assessment rates

the waste removal rate in respect of indigents, which will be fully discounted

the sewerage rate in respect of indigents, which will be fully discounted

T 3.6.1


74

Free Basic Services To Low-income Households

Number of Households

Total Households Earning Less than R1 100 per Month

Free Basic

Water Free Basic Sanitation

Free Basic Electricity

Free Basic Refuse

Total Access % Access % Access

% Access

%

2013/2014

60 474

17 384 13 500 22% 17 384

29% 14 252

24% 16 977 28%

2014/2015

73 395

17 730 13 783 19% 17 730

24% 16 237

22% 17 286 24%

2015/2016

79 593

18 107 14 326 18% 18 107

23% 16 801

21% 17 642 22%

T 3.6.3

Financial Performance: Cost to Municipality of Free Basic Services Delivered

2015/2016

Services Delivered 2014/2015 2015/2016 Actual Budget Adjustment

Budget Actual Variance to

Budget

Water R5 421 419 R5 472 503 R6 609 300 R6 127 166 11%

Waste Water (Sanitation) R15 494 528 R16 475 820 R16 765 800 R15 367 781 -7%

Electricity R6 956 614 R7 605 000 R7 405 000 R6 820 578 -12%Waste Management (Solid Waste) R18 622 751 R18 932 949 R21 425 750 R19 638 234 4%

Total R46 495 312 R48 486 272 R52 205 850 R47 953 759 -1%

T 3.6.4


75

Free Basic Service Policy Objectives Taken From IDP Service Objectives


2014/2015 2015/2016 2016/2017


Service Indicators

*Previous Year

*Previous

Year *Current

Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) Provision of alternative support to low-income households that receive all free basic services

Number of indigent households

17 730 17 730 18 107 18 107 18 107 18 133

T 3.6.5

COMMENT ON FREE BASIC SERVICES AND INDIGENT SUPPORT

The municipality has a self-managing indigent support system where indigent residents decide for themselves whether they will be able to manage with only a 20-amp electricity supply. The number of indigents grew during the year by 377 to 18 107 mainly due to the new Reconstruction Development Programme (RDP) develop areas. Indigent relief is annually provided from an equitable share to the amount of R46.5 million.

T 3.6.6


76

COMPONENT B: ROAD TRANSPORT AND STORM WATER DRAINAGE

This component includes roads and waste water (storm water drainage).

3.7. ROADS

INTRODUCTION TO ROADS

The strategy is to ensure the provision of road infrastructure and storm water infrastructure while upgrading existing infrastructure in all new developments and existing areas as well as maintaining existing roads. The current baseline is at 69.94 km of new roads constructed through capital budget funding. Municipal funds are utilized for the construction of roads in middle- and high-income areas, while the MIG is utilised for construction of new roads in low-income areas. T 3.7.1

Gravel Road Infrastructure Kilometres

Total gravel

roads New gravel roads

constructed Gravel roads

upgraded to tar Gravel roads

graded/maintained

2013/2014 188.45 4 8.55 1602014/2015 182.201 22.662 10.25 158.82015/2016 174.64 0 7.56 186.77 T 3.7.2

Tarred Road Infrastructure

Kilometres

Total tarred roads

New tar roads

Existing tar roads re-tarred *(rebuild roads)

Existing tar roads re-sheeted

*(resealed roads)

Tar roads maintained

2013/2014 637.706 8.547 0.920 6.0 25

2014/2015 646.253 10.249 0.7 7.146

2015/2016 653.816 7.563 00 9.330 T 3.7.3

Cost of Construction/Maintenance

Gravel Tar

New Gravel – Tar Maintained New Reworked Maintained

2013/2014 R274 375 R43 970 857 R599 535 R43 970 857 R2 232 766 R6 500 000

2014/2015 R199 470 R55 816 680 R220 000 R55 816 680 R13 889

352 R8 500 000

2015/2016 R - R37 447 830 R812 220 R37 447 830 R - R9 400

000 T 3.7.4


77

Road Service Policy Objectives Taken From IDP Service Objectives


2014/2015 2015/2016 2016/2017

Target Actual Target Actual

Service Indicators

*Previous Year

*Previous Year

*Current Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To ensure provision of affordable and sustainable basic services by upgrading existing infrastructure and providing new infrastructure To ensure the provision of new roads and storm water infrastructure while upgrading existing infrastructure

kms of newly tarred roads constructed kms of new storm water systems constructed

12 km

4 km

11.159 km

5.903 km

12 km

4 km

13 km

5 km

7.563 km

3.963 km

15 km

5 km

kms of gravel roads graded and bladed 115 km 158.8 km 115 km 125 km 186.7 km 150 km


78

Employees – Roads and Storm water Years 1 (2015) Year 0 (2016) Job Level Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 2 1 1 504-6 3 1 1 0 07-9 2 4 2 2 5010-12 7 11 9 2 1813-15 5 5 5 0 016-18 7 7 6 1 1419-20 60 60 55 5 8Total 85 90 79 11 12

Financial Performance: Road Services

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:


Other R56 610 790 R63 565 059 R63 675 059 R57 300 954 -11%Total Operational Expenditure R72 985 960 R84 843 548 R83 916 758 R75 173 786 -13%Net Operational Expenditure R26 662 437 R58 374 236 R59 820 424 R55 846 042 -5%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 3.7.8


79

Capital Expenditure: Road Services

Capital Projects

2015/2016

Budget Adjustment Budget

Actual Expenditure

% Variance

from Adjusted Budget

Total Project Value

Total (All) R45 760 000 R52 755 830 R53 015 762 0%

BRIDGES – UPGRADING (BMS) R400 000 R400 000 R398 909 0% R400 000ROADS NEW – AERORAND WES R8 000 000 R8 000 000 R7 999 133 0% R8 000 000PAVING & KERBS – MIDDELBURG R250 000 R250 000 R240 024 4% R250 000ROADS GENERAL – TAXI LAY-BYS R300 000 R300 000 R299 999 0% R300 000ROADS GENERAL – SLIPWAYS RIGHT TURN & INTERSECTION R6 500 000 R9 313 455 R9 313 372 0% R9 313 455ROADS RESEAL – MIDDELBURG/MHLUZI R8 400 000 R8 400 000 R8 391 352 0% R8 400 000EDGE BEAMS – PRIMARY/SECONDARY ROUTES R250 000 R250 000 R249 880 0% R250 000NEW EQUIPMENT ROADS R50 000 R50 000 R39 635 21% R50 000PAVING & KERBS – HENDRINA/KWAZA R200 000 R200 000 R195 435 2% R200 000ROADS NEW – HENDRINA R1 900 000 R1 900 000 R1 796 203 5% R1 900 000REPLACE EQUIPMENT R30 000 R30 000 R27 970 7% R30 000CONCRETE MIXER R25 000 R25 000 R 21 920 12% R25 000EQUIPMENT R20 000 R25 000 R19 770 21% R25 000NEW ROADS –KRANSPOORT R1 300 000 R1 300 000 R1 287 555 1% R1 300 000PAVING & KERBS – VILLAGES & RURAL R200 000 R200 000 R198 040 1% R200 000ASPHALT CUTTER R25 000 R25 000 R21 490 14% R25 000ROADS RESEAL – RURAL AND ESKOM TOWNS R1 000 000 R1 000 000 R999 727 0% R1 000 000ROAD NEW –PRESIDENTSRUS R1 500 000 R1 500 000 R1 500 000 0% R1 500 000PAVING & KERBS LOW-INCOME AREAS – EPWP R600 000 R600 000 R599 006 0% R600 000


80

Capital Expenditure: Road Services

Capital Projects

2015/2016

Budget Adjustment Budget

Actual Expenditure

% Variance


Total Project Value

NEW ROADS & STORM WATER LOW-INCOME AREAS R14 000 000 R14 000 000 R13 037 486 7% R14 000 000REPLACEMENT OF KERB-INLETS – MIDDELBURG MHLUZI R300 000 R300 000 R282 311 6% R300 000PLANT & EQUIPMENT R10 000 R3 000 R2 504 17% R3 000SURVEY EQUIPMENT R300 000 R300 000 R231 104 23% R300 000REPLACEMENT OF KERB-INLETS – ESKOM TOWNS R200 000 R200 000 R199 960 0% R200 000ROADS, BRIDGES, AND STORM WATER – EXT 18 - R4 184 375 R5 662 977 -35% R4 184 375Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.7.9

COMMENT ON THE OVERALL PERFORMANCE OF ROADS

About 7.56 km of new roads in the MP313 area were constructed using municipal capital funds and MIG funds as per the forecast budget. The priority is to construct roads in newly developed areas such as Aerorand, Ext 18, Mhluzi Ext 2, Tokologo, Middelburg Ext 24, Rockdale, Hendrina, and Kwazamokuhle areas. Challenges arise from the influx of heavy vehicles using the internal roads for access to the main roads such as the N11 to Hendrina and Groblersdal and R555 Emalahleni to Stoffberg and R35 to Bethal and R104 to Belfast. An additional issue is the trucks passing through Hendrina to Ermelo, Carolina, and Bethal from provincial and national roads.

T 3.7.10


81

3.8. TRANSPORT (LICENSING) SERVICES

INTRODUCTION TO TRANSPORT (LICENSING) SERVICES

The department acts as an agent for the Provincial Department of Public Works, Roads, and Transport for the registering and licensing of motor vehicles, application, testing, and issuing of drivers and learner’s licences and renewal of drivers’ licences. The turnaround time for the drivers’ and learners’ licences is still maintained at seven (7) days, while the turnaround time for the renewal of drivers’ licences is still one (1) day. Because of the increased number of people that are served, a need exists to extend the department.

2015/2016 LICENSING STATISTICS

Number of vehicles registered within the municipal areas 24 087 Number of vehicles licensed within the municipal areas 11 477 Number of applications processes for drivers’ licences 10 312 Number of drivers’ licences issued and converted 21 622 Number of learner’s licence applications processed 19 515 Number of learners’ licences issues 15 255 Number of vehicles tested for roadworthiness 1 808

T 3.23

Financial Performance: Transport (Licensing) Services

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:




82

COMMENT ON THE PERFORMANCE OF TRANSPORT (LICENSING) SERVICES

The department had numerous challenges regarding the shortage of face-value documents, which led to poor service and unhappy customers. This has dented the image of the municipality, as the licensing department was considered one of the best performing departments within the municipality.

3.9. WASTE WATER (STORM WATER DRAINAGE)

INTRODUCTION TO STORM WATER DRAINAGE

Storm water drainage is installed with every new road constructed. For the 2015/2016 financial year, 3.83 km of new storm water drainage was installed. The storm water in low-income areas is funded by the MIG. Middle- and high-income areas are funded from the Council’s own capital budget. In the informal settlements, gravel V-drains are constructed as and when required.

T 3.9.1

Storm Water Infrastructure Kilometres

Total Storm water measures

New Storm water measures

Storm water measures upgraded

Storm water measures

maintained 2013/2014 26 5 0 6

2014/2015 35.55 5.8 0.6 202015/2016 39.37 3.83 0 35 T 3.9.2

Cost of Construction/Maintenance Storm Water Measures New Upgraded Maintained

2013/2014 R8 522 025 0 R220 0002014/2015 R7 951 530 0.6 R200 0002015/2016 R10 375 226 0 R300 000 T 3.9.3


83

Storm Water Policy Objectives Taken From IDP Service Objectives Outline

Service Targets



Year *Previous

Year *Current Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To ensure provision of new roads and storm water infrastructure while upgrading existing infrastructure To ensure the provision of new roads and storm water infrastructure while upgrading existing infrastructure

Kilometers of storm water drainage systems constructed

4 5.5 4 5 3.83 5


84

Capital Expenditure: Storm Water Services

Capital Projects


Budget Actual

Expenditure %

Variance from

Adjusted Budget

Total Project Value

Total (All) R6 550 000 R6 550 000 R6 494 047 0.01

SURBSURFACE DRAINS – HENDRINA KWAZA R350 000 R350 000 R347 736 1% R350 000STORM WATER – AERORAND WES R2 000 000 R2 000 000 R1 997 491 0% R2 000 000STORM WATER –MIDDELBURG R1 000 000 R1 000 000 R999 169 0% R1 000 000STORM WATER – RAILWAY LINE R1 000 000 R1 000 000 R998 265 0% R1 000 000STORM WATER –KRANSPOORT R500 000 R500 000 R474 481 5% R500 000STORM WATER –HENDRINA R900 000 R900 000 R881 943 2% R900 000SUBSURFACE DRAINAGE –VILLAGES R300 000 R300 000 R294 962 2% R300 000STORM WATER – PRESIDENTSRUS R500 000 R500 000 R500 000 0% R500 000

COMMENT ON OVERALL PERFORMANCE OF STORM WATER DRAINAGE

The municipality has targeted 15 km of new storm water drainage for the five (5) financial years from 2012/2013. The installation of storm water drainage will be funded using the municipal capital budget, funds from the district municipality, and the MIG. There is still a challenge with a high backlog on storm water in the developed areas of the municipality.

T3.9.9


85

COMPONENT C: PLANNING AND DEVELOPMENT

This component includes planning and local economic development.

INTRODUCTION TO PLANNING AND DEVELOPMENT

The economic base of this municipality is built mainly on mining, agriculture, manufacturing, and retail trade sectors respectively. These sectors are the major employers of the people living within this municipality. The municipality still owns tracts of land which can still be developed to address the demand for economic growth. The other existing opportunity is that the existing mines still have lifespans ranging between 5 and 30 years. However, the challenge is that the mining and manufacturing economies are not green development and contribute to unsustainable development. These economies contribute to carbon footprints, destruction of high-potential lands, and water and atmospheric pollution. The road networks are under serious pressure due to increasing traffic volumes owing to the continued economic development and population growth.

The concept of green buildings is not yet grasped by many public members; as such, there are only a few energy-efficient buildings. The huge initial costs of designing green buildings and retrofitting of energy-efficient equipment to the existing buildings are the main deterrents. As a result, the municipality, in partnership with ICLEI, has developed a Green Buildings Guidelines document which must still be adopted by Council. After the adoption of the document, a vigorous awareness campaign in this regard should be launched.

T 3.10

3.10. PLANNING INTRODUCTION TO PHYSICAL PLANNING

The main planning strategies for the municipality are as follows:

Regulation of land uses and building activities through enforcement of the Spatial Development Framework and the Steve Tshwete Town Planning Scheme, 2004, as well as the National Building Regulations and Building Standards Act No. 103 of 1977

Provision of residential, business, industrial, and institutional sites to address the demand by the community

Promotion of the correction of historically segregated spatial planning of settlements

Formalisation of informal settlements.


86

In line with the aforementioned strategies, the following were achieved:

A process of establishing an integrated human settlement in order to address the demand for residential, business, institutional, industrial, educational, and recreational stands and the need for security of tenure for households of Newtown informal settlement in line with the Spatial Development Framework and Breaking New Ground Strategies was embarked on. All required specialist studies as part of the environmental impact assessment process were successfully conducted. The township layout was pegged and framed into a general plan and submitted to the Surveyor-General (SG) for approval.

Some 1 390 transgression notices were issued to discourage illegal building work and illegal land uses. This was followed by the submission and approval of 121 consent use applications in compliance with the issued transgression notices.

3.10.1

Detail Formalization of Townships Rezoning Built Environment

2014/2015 2015/2016 2014/2015 2015/2016 2014/2015 2015/2016Planning application received

0 1 34 54 1233 1529

Determination made in year of receipt

0 0 6 22 1184 1373

Determination made in following year

1 0 2 32 0 0

Applications withdrawn

0 0 0 1 12 117

Applications outstanding at year end

1 1 28 32 37 39

T 3.10.2


87

Planning Policy Objectives Taken From IDP Service Objectives Outline Service

Targets 2014/2015 2015/2016 2016/2017



Year *Previous

Year *Current

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) To ensure coordinated rural and urban planning and development within MP313 area of jurisdiction in order to meet the needs of the communities in a sustainable manner

To ensure orderly spatial planning and sustainable development within the municipal area towards the integration of communities

Number of notices issued for illegal building activities

150 347

150 200 499 220

Number of notices issued for illegal land uses

150 173

150 100 292 100

Number of established townships - -

- 2 2 2


88

Employees – Town Planning Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number) Vacancies (%)

0-3 2 2 2 0 04-6 2 3 2 1 337-9 8 9 8 1 1110-12 4 4 4 0 013-15 0 0 0 0 016-18 0 0 0 0 019-20 0 0 0 0 0

Total 16 18 16 2 11

Financial Performance: Planning Services

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:

Employees R5 585

350 R6 023

795 R6 312 547 R6 113 567 1% Repairs and Maintenance R4 813 R3 000 R3 000 R570 -426%

Other R3 658 447 R7 910 016 R7 127 238 R2 869 803 -176%Total Operational Expenditure R9 248 611 R13 936 811 R13 442 785 R8 983 940 -55%Net Operational Expenditure R7 456 735 R9 863 714 R11 119 744 -R8 870 822 211%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 3.10.5


89

Capital Expenditure: Planning Services 2015/2016

Capital Projects


Budget Actual

Expenditure %Variance

from adjusted budget

Total Project Value

Total (All) R150 000 R4 137 000 R20 339 055 -392%

TOWNSHIP DEVELOPMENT FOR NEWTOWN - R62 000 - 100% R62 000TOWNSHIP DEVELOPMENT FOR DENNESIG NORTH - R8 000 R7 922 1% R8 000TOWNSHIP DEVELOPMENT KWAZAMOKUHLE EXT 9 ON VAALBANK 177 I - R201 000 R102 950 49% R201 000TOWNSHIP DEVELOPMENT AT SOMAPHEPHA R150 000 R136 000 R90 183 34% R136 000PURHASE LAND FOR DOORNKOP RE-SETTLEMENT - R3 000 000 R3 000 000 0% R3 000 000PURCHASE LAND ROCKDALE - R730 000 R640 000 12% R730 000

DONATED LAND - - R798 000 100% -DONATED LAND – PROVINCIAL - - R15 700 000 100% -Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.10.6

COMMENT ON THE OVERALL PERFORMANCE OF PHYSICAL PLANNING

The five (5) capital projects are for the establishment of townships known as Newtown, Dennesig North, Rockdale North, Kwazamokuhle Ext 9, and Rockdale North Ext 1. The priority for the latter projects is for the creation of additional residential, business, institutional, and industrial stands in order to address the demand and contribute to the economic growth of the municipality.

The five-year targets for this section are as follows:

Establishment of six (6) integrated and sustainable human settlements


90

Issuing of 700 notices for transgressing the National Building Regulations and Building Standards

Issuing 500 notices for transgressing the Steve Tshwete Town Planning Scheme, 2004

Purchasing 200 hectares of land for the establishment of integrated human settlements and creation of a conducive environment for economic growth to take place within the municipal area.

The budgetary provision for attaining the foregoing targets will be borne by the municipality. When needs are financial in nature, assistance including grants, will be sourced from the relevant government departments.

The achievements attained thus far are as follows:

Rockdale North Township and Dennesig North Township were registered.

Newtown Extension Township was pegged, and its general plan was lodged with the Office of the Surveyor-General after successful commissioning of specialist studies and an environmental impact assessment.

The Mpumalanga Department of Human Settlements agreed to purchase 557 hectares of land for the municipality. The municipality contributed R3 000 000 towards the purchasing of the land.

3.11. LOCAL ECONOMIC DEVELOPMENT

LOCAL ECONOMIC DEVELOPMENT

The municipality had an outdated LED strategy since 2006; to date, greater effort has been made to improve the situation. The final LED strategy was approved by Council in May 2016 with Council resolution number C29/05/2016. Various stakeholders have been consulted as a measure to develop a comprehensive LED strategy for 2016/2021. Before it was adopted by Council, part of the broader consultation on the draft LED strategy was that all stakeholders such as business chambers, e.g. the National African Federated Chamber of Commerce and Industry (NAFCOC), were consulted to allow business to lead the local economic development within MP313. A franchise expo was held in October 2015, an Undlwanondlebe round discussion with local business and stakeholders was also held in October 2015, and in February 2016, the Township Economic Summit was held. A number of employment opportunities had increased due to the opening of Alzu Shopping Centre with an additional 50 job opportunities created. The municipality, through partnership with mining houses (South 32), is supporting small, medium and micro enterprise (SMME) development by opening a one-shop stop at Adelaide Tambo MPCC.

T 3.11.1


91

Economic Activity by Sector

Sector 2013/2014 2014/2015 2015/2016 Agriculture, forestry, and fishing

Installation of hydroponic structures

Mining and quarrying

Manufacturing Expansion of the Volvo Babcock plant Wholesale and retail trade

Mhluzi Mall Middelburg Mall

Expansion of Middelburg Mall Expansion of the Eastdene complex

Finance & property Expansion of MidMed Hospital

Government, community, and social services

- Investment Summit - Investor Breakfast - Investor Symposium - LED Strategy Draft adoption

- Franchise Expo LED Roundtable discussion - LED Strategy approval - Township Economy and Industries - Job Skills Summit - Skills Audit and Profiling

Infrastructure services

Node D for Industrial development incorporated in spatial planning, establishment of industrial stands in Hendrina

Hydroponic structures in Mhluzi, Ext 24, and Magasyn

Expansion of the tourism centre Upgrade of facilities of the Little Elephant 160 industrial stands acquired

T 3.11.2

Economic Employment by Sector Jobs

Sector 2013/2014 2014/2015 2015/2016

No. No. No. Wholesale and retail trade 1 400 350 50Government, community, and social services 1 000 1 000 1 003Total 2 400 1 350 1053

T 3.11.3

Jobs Created during 2014/2015 by LED Initiatives (Excluding EPWP Projects) Total Jobs

Created/Top 3 Initiatives

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) 2013/2014 1 152 60 1 092 Work/payroll register 2014/2015 1 092 126 966 Work/payroll register 2015/2016 1 003 0 1 003 Work/payroll register


92

Job Creation through EPWP* Projects

Details

EPWP Projects Jobs Created through EPWP

Projects No. No.

2013/2014 226

2014/2015 2422015/2016 631*Extended Public Works Programme T 3.11.6

COMMENT ON LOCAL JOB OPPORTUNITIES

Community-based Programme:

About 1 003 CWP participants were on the programme throughout the year. This programme is meant to provide a safety net for underprivileged families. The programme focuses on the following sectors: agriculture, social and welfare, environment, and infrastructure services.

The continuous support of street trading is managed by making sure that the correct infrastructure is provided for street traders. Street traders within the municipal boundaries are supported and categorised in terms of seasonal and all-year-round street trading. There are 61 seasonal hawkers, 27 monthly rental hawkers at Van Calder, and 412 yearly rental hawkers in different areas (Komati – 8, Hendrina – 63, Middelburg – 275, Mhluzi – 62, and Ext 24 – 4).

T 3.11.4


93

Local Economic Development Policy Objectives Taken From IDP Service Objectives

Outline Service Targets 2014/2015 2015/2016 2016/2017



Year *Previous

Year *Current

Year *Current

Year (i) (ii) (iii) (iv) (v) (vi) (vii) (viii)

To contribute towards a better life for society by coordinating sustainable, social, and economic developmental programmes To create a conducive environment for business investment and growth for job creation

Number of LED related summits coordinated

2 4 2 2 4 2

Number of skills development programmes coordinated 1 5 1 1 3

1

Development of LED strategy

Number of FET jobs created to improve the level of employment 298 242 298 450 69.5

604

Number of participants recruited in Community Work Programme 1 050 966 1 050 1 100 1 003

1150

To contribute towards a better life for the community by coordinating sustainable socio-economic development programmes

Number of LED structures that are established online with the LED strategy

5 Working Committees



1 LED Stakeholders

Forum

2 Stakeholders

Forums

1 LED Technical

Committee T 3.11.7


94

Employees – LED

Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 1 1 0 04-6 0 0 0 0 07-9 0 0 0 0 010-12 0 0 0 0 013-15 0 0 0 0 016-18 0 0 0 0 019-20 0 0 0 0 0

Total 1 1 1 0 0

Financial Performance: Local Economic Development Services

2015/2016

Details


Budget Adjustment


Budget

Total Operational Revenue - R2 000 000 R533 506 R242 200 -726%

Expenditure:

Employees R157 689 R543 312 R575 304 R544 274 0% Repairs and Maintenance - - - - 0%

Other R626 811 R692 658 R1 091 962 R677 287 -2%Total Operational Expenditure R784 500 R1 235 970 R1 667 266 R1 221 561 -1%Net Operational Expenditure R784 500 -R764 030 R1 133 760 R979 361 178%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 3.11.9


95

Capital Expenditure: Economic Development

Services 2015/2016

Capital Projects


Budget Actual

Expenditure Variance

from Original Budget

Total Project Value

Total (All) R1 500 R1 500 - 100%

OFFICE FURNITURE & EQUIPMENT R1 500 R1 500 - 100% R1 500Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.11.10

COMMENT ON THE PERFORMANCE OF LOCAL ECONOMIC DEVELOPMENT

EPWP and CWP have contributed positively in maintaining a safety net for the poor communities and alleviating poverty where it matters the most. About 242 full-time equivalent jobs were created through our LED initiative while the CWP has maintained and training of all the participants. To date, about 1003 participants are still active with some minimal challenges absenteeism from time to time. The tendencies of absenteeism is crippling the programme and through the Local Reference Committee (LRC), a resolution was taken to recruit more participants who will stay on the waiting list to avert the problem of none expenditure due to absenteeism.

COMPONENT D: COMMUNITY AND SOCIAL SERVICES

This component includes libraries and archives, art museums and galleries, community halls, cemeteries and crematoriums, childcare, aged care, social programmes, and theatres.

INTRODUCTION TO COMMUNITY AND SOCIAL SERVICES

Community services is responsible for the following units: traffic, security and safety, waste and environmental management, housing, and fire and rescue services. The main role is to ensure road safety for all members of the public at all times. It is also to ensure security of all municipality facilities/assets, personnel, and the members of the public.


96

Waste and Environmental Management services provides the community with waste removal for households and businesses/industries, garden refuse collection, clearing of streets, and illegal dumping sites. Additional to the aforementioned services, the department is also responsible for waste disposal sites, which includes the main landfill site in Middelburg and the transfer stations in Somaphepha, Doornkop, Rietkuil, Komati, Hendrina, Dennesig, Rockdale, and Ext 49 in Middelburg constructed as multi-year projects to date. Currently, the Sikhululiwe Transfer Station is still under construction.

The municipality is responsible for housing services whereby we coordinate the function with the support of the province and provide the project management function. The municipality has a level 2 accreditation.

3.12(A). LIBRARIES

INTRODUCTION TO LIBRARIES FACILITIES

The library operates with the mission of providing comprehensive resources and services in support of the research, and teaching and learning needs of the community. The libraries’ top 3 priorities are the following:

Visiting schools in rural areas: Services were taken to schools that are in rural/remote areas, that were previously disadvantaged, and that did not have school libraries. Schools were assisted with the establishment of functioning libraries. The library liaised with relevant stakeholders to donate containers that can be used as libraries. This further involves communities that have no access to libraries at all. Because of the information provided to schools, the matric pass rate has increased, especially at schools that did not previously have library services

Visiting Old Age Homes and conducting home visits to render library services to senior

citizens in the municipality. Running marketing campaigns in the community to make the public aware of the

services rendered by libraries and providing information based on community needs. After every campaign, questionnaires were designed to evaluate performance, as to whether expectations were realised. Our campaigns are structured in such a manner that they are rolled out in different areas in the municipality.

Supporting the Cultural and Creative Industries Federation of South Africa (CCIFSA)

events: The CCIFSA event was officially launched during the 2015/2016 financial year. The purpose was to support the artistic community within the MP313 to be their own architects in taking their future into their own hands. This translated into active citizens who will be agents of the change they want to see.


97


98

Libraries Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2014/2015 2015/2016 2016/2017 Target Actual Target Actual


Year *Previous

Year *Current

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To visit schools within the MP313 area to render library services

Assisting as many schools as possible and improve usage of library material

80 100 80 80 84 80

To visit Old Age Homes Rendering library services to senior citizens

144 145 144 161 161 144

To run marketing campaigns

Making the community aware of the services offered and instilling a reading culture in the community

8 8 4 4 4 4

To put up displays for monthly awareness

Putting up displays for monthly awareness in current issues and themes

360 386 360 431 431 132

To support quarterly CCIFSA events

Supporting artists in being self-sufficient and well developed

New Indicator

New Indicator

New Indicator

4 4 4

To monitor the running of the Special Library at the Middelburg Centre of Excellence

Ensuring that the library is fully functional and utilised

New Indicator

New Indicator

New Indicator

12 12 12


99

Employee – Cultural Services (Library) Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 1 1 0 04-6 0 0 0 0 07-9 4 4 4 0 010-12 28 29 29 0 013-15 1 1 0 1 10016-18 0 0 0 0 019-20 2 2 2 0 0

Total 36 37 36 1 3

Financial Performance: Libraries, Archives, Museums, Galleries, Community Facilities, and

Others

2015/2016

Details


Budget Adjustment


to Budget

Total Operational Revenue R98 898 R95 645 R90 445 R128 255 25%

Expenditure:

Employees R7 473 634 R8 374 442 R8 333 240 R8 168 132 -3% Repairs and Maintenance R411 432 R386 170 R429 182 R397 519 3%



100

Capital Expenditure: Libraries, Archives, Museums, Galleries, Community Facilities, and Others 2015/2016

Capital Projects


Budget Actual



Total Project Value

Total (All) R670 000 R715 000 R630 084 11.9%

PURCHASE BOOKS R440 000 R440 000 R345 030 21.6% R440 000

FURNITURE R80 000 R80 000 R69 601 13.0% R80 000UPGRADE AND INSTALL NEW AIR CONDITIONERS R150 000 R135 000 R130 020 3.7% R135 000UBLUTION FACILITIES (TOILETS) - R60 000 R56 433 5.9% R60 000

PORTRAIT - - R29 000 100% -Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.12.6

COMMENT ON THE PERFORMANCE OF LIBRARIES

In the 2015/2016 financial year, there has been an increase in the number of people visiting the library and making use of library facilities in the MP313 area.

The library marketing campaigns that were launched had a positive impact in terms of how the community views libraries and how library services are rendered. Outreach programmes were run throughout the year, thus enhancing the effective and efficient library services that are provided to the community.

The CCIFSA was launched during the 2015/2016 financial year. Its role is to advocate and promote the cultural diversity and heritage within the municipality.

The allocated budget has been utilised to its maximum, ensuring that the vision of the municipality is accomplished.


101

3.12(B). MUNICIPAL BUILDINGS

INTRODUCTION TO MUNICIPAL BUILDINGS

This department is responsible for the planning and provision of new municipal buildings, maintenance, and cleaning of various structures. These include pay points, libraries, community halls, municipal offices, service centres, Thusong centres, dumping site offices, public ablutions and taxi ranks, flats, and other leased municipal buildings.

The strategies of this department are as follows:

Implementing programmes to upgrade existing municipal buildings and facilities

Constructing new facilities for enhanced service delivery

Constructing facilities closer to the communities

Installing and implementing security measures that minimise vandalism and theft at municipal buildings

Raising awareness of energy saving for users of municipal buildings

Ensuring continuous usage of green materials for energy-saving retrofits on new and existing buildings

The service delivery priorities are to interact smoothly with the community and other departments without disturbance to ensure accurate implementation of planning and maintenance of municipal buildings while adhering to the National Building Regulations Act.

T 3.12.1

SERVICE STATISTICS OFFICES, CLINIC BUILDINGS, LIBRARIES, SPORT BUILDINGS, PAY POINTS, LEASED BUILDINGS, AND COMMUNITY HALLS

11 Pay points 10 Libraries 7 Community halls 5 Municipal offices 2 Service centres 3 Thusong Centres 1 Dumping site office and 4 mini-site offices Approximately 230 flats and other leased municipal buildings

T 3.12.2


102

Municipal Buildings Other Policy Objectives Taken From IDP Service Objectives


2014/2015 2015/2016 2016/2017

Target Actual Target Actual Target Service Indicators

*Previous Year

*Previous Year *Current Year

*Current Year (viii)

(i) (ii) (iii) (iv) (v) (vi) (vii) To create new facilities while upgrading existing ones to be easily accessible and suitable for community needs

Number of new municipal buildings and facilities constructed

1 new accessible municipal building completed by June 2015 (Doornkop)



Phase 1 of Sikhululiwe Thusong Centre completed and planning of Somaphepha Thusong Centre by June 2016

Phase 1 of Sikhululiwe Thusong Centre completed and planning of Somaphepha Thusong Centre by June 2016

Detailed designs of the multi-modal taxi rank and Sikhululiwe Thusong Centre completed by June 2017

Number of municipal building facilities upgraded.

5 buildings and facilities upgraded






To promote the construction of green buildings that minimise wastage of scarce resources, thus ensuring a low carbon footprint

Number of green materials and products for construction of new and existing buildings

Installation of 9 energy-saving heat pumps, 78 water restrictors, and 30 shower roses for water conservation







103

Employees – Building and Fleet Management

Years 1

(2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 3 1 2 674-6 2 2 2 0 07-9 3 3 3 0 010-12 4 4 4 0 013-15 1 1 1 0 016-18 0 0 0 0 0

19-20 71 72 72 0 0

Total 82 85 83 2 2

Financial Performance: Municipal Buildings and Others 2015/2016

Details


Budget Adjustment


Budget


Expenditure:

Employees R13 299 358 R14 499 449 R14 938 535 R14 702 854 1% Repairs and Maintenance R3 101 708 R3 208 266 R3 462 392 R3 411 294 6%

Other R20 554 350 R24 724 026 R24 425 447 R15 020 675 -65%Total Operational Expenditure R36 955 416 R42 431 741 R42 826 374 R33 134 823 -28%Net Operational Expenditure R18 530 790 R21 794 965 R41 035 817 R30 632 691 29%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 3.22.5


104

Capital Expenditure Year 0: Municipal Buildings and Others

Capital Projects


Budget Actual

Expenditure % Variance


Total Project Value

Total (All) R6 896 500 R12 827 506 R9 111 720 29%

UPGRADE OLD AGE FLATS R400 000 R400 000 R383 425 4% R400 000UPGRADE BUILDINGS: AIR CONDITIONERS – CIVIC CENTRE R100 000 R100 000 R96 020 4% R100 000REPLACE FENCING AIRFIELD R1 500 000 R1 500 000 R1 410 200 6% R1 500 000PURCHASE TOOLS R100 000 R100 000 R87 639 12% R100 000UPGRADE ACCESS CONTROL – CIVIC CENTRE R250 000 R2 849 984 R1 622 993 43% R2 849 984UPGRADING OF SERVICE CENTRE R600 000 R600 000 R589 386 2% R600 000

CAMERA R6 500 R6 500 R6 426 1% R6 500UPGRADE BUILDINGS: AIRCONDITIONERS R30 000 R25 000 R24 020 4% R25 000UPGRADING OF MHLUZI OFFICES R300 000 R300 000 R277 356 8% R300 000FENCING AT MUNICIPAL SERVICES CENTER: MIDDELBURG R260 000 R260 000 R255 000 2% R260 000CONSTRUCTION OF CARPORTS AT SERVICE CENTRE R250 000 R399 984 R360 363 10% R399 984ENERGY-EFFICIENT RETROFITS R280 000 R280 000 R262 156 6% R280 000

GENERATORS R1 000 000 R780 000 R775 760 1% R780 000UPGRADING OF ELECTRICITY AT CIVIC CENTRE - R2 991 570 R208 508 93% R2 991 570CONSTRUCTION OF CARPORTS AT - R194 468 R136 204 30% R194 468


105

Capital Expenditure Year 0: Municipal Buildings and Others

Capital Projects


Budget Actual



Total Project Value

HENDRINA WORKSHOP UPGRADE THEMBA MASANGO BUILDING R200 000 R200 000 R196 830 2% R200 000CONSTRUCTION OF PUBLIC ABLUTION FACILITIES R570 000 R570 000 R53 180 91% R570 000UPGRADE ACCESS TO MUNICIPAL BUILDINGS R150 000 R150 000 R22 891 85% R150 000REPLACE ROOFING AT SERVICE CENTRE R300 000 R300 000 R289 057 4% R300 000STORM WATER MANAGEMENT ON MUNICIPAL BUILDINGS R300 000 R300 000 R295 646 1% R300 000REPLACE ROOFING MHLUZI HEDC R300 000 R300 000 R264 253 12% R300 000UPGRADE OF OFFICES AND SECURITY - R180 000 R153 110 15% R180 000REFURBISH CRAFTERS MARKET STALLS - - R1 272 292 100% -DROP SAFE LICENCING - R40 000 R69 005 -73% R40 000Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.22.6

COMMENT ON THE PERFORMANCE OF MUNICIPAL BUILDINGS

The Municipal Building Services reached the targeted performance as indicated in the SDBIP and Departmental Performance Plan of the said financial years.


106

3.13. CEMETERIES AND CREMATORIUMS

INTRODUCTION TO CEMETERIES AND CREMATORIUMS

Currently, eight (8) cemeteries are maintained in Middelburg area and three in Hendrina and Kwazamokuhle. The community in the rest of the incorporated areas in the Steve Tshwete Local Municipality area utilises the cemeteries in the nearest vicinity.

The service delivery priorities are to provide and maintain cemeteries, to continuously update and keep record of cemetery registers – now captured on electronic database, and to plan and develop future cemeteries to ensure that sufficient space is available. Another priority is to maintain and upgrade the existing equipment, vehicles, system, and procedures to ensure a quality service to the community.

The foregoing priorities were met through maintaining all cemeteries by cutting grass, removal of weeds, and planting of trees. The database is kept up to date, and the cemetery registers are updated regularly. Areas were identified where possible suitable land will be used to develop new cemeteries all over the MP313 area to bring the facilities closer to communities. The vehicles and machinery were maintained and repaired where necessary. EPWP projects were introduced to clean cemeteries, and through that, local people received an income and cemeteries were cleaned.

SERVICE STATISTICS FOR CEMETERIES AND CREMATORIUMS

Number of Burials

Phumolong 714 Fontein 195

Nasaret 135 Voortrekker 7 Hendrina/Kwaza 296 Avalon and Crossroads 5

T 3.13.2


107

Cemeteries and Crematoriums Policy Objectives Taken From IDP

Service Objectives


2014/2015 2015/2016 2016/2017



Year *Previous

Year *Current Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To provide new cemeteries while upgrading existing cemeteries according to prioritized community needs

Number of cemeteries upgraded or developed

New fence erected in 3 cemeteries

720 m of fence erected

New fence erected in 3 cemeteries

0 N/A 0

To provide new cemeteries while upgrading existing cemeteries according to prioritized community needs


New roads in 2 cemeteries

460 m = 1 840 m2 of roads done

New roads in 2 cemeteries

0 N/A 0

To provide new cemeteries while upgrading existing cemeteries according to prioritized community needs


4 cemetery upgrading projects implemented by June 2015

5 cemetery upgrading projects completed





Specialized studies (Geotech and Geohydrological) conducted on 1 parcel of land identified by June 2016

Specialized studies (Geotech and Geohydrological) conducted on 2 parcels of land identified by June 2016

1 new cemetery developed and operating by 2017 (Pullenshope)

T 3.13.3


108

Employees – Cemeteries

Years 1

(2015) Year 0 (2016) Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 0 0 0 0 04-6 0 0 0 0 07-9 0 0 0 0 010-12 1 1 1 0 013-15 1 1 1 0 016-18 2 2 2 0 019-20 15 15 14 1 7Total 19 19 18 1 5

Financial Performance: Cemeteries and Crematoriums

2015/2016

Details


Budget Adjustmen

t Budget

Actual Variance to

Budget Total Operational Revenue

R412 494

R2 921 140

R2 921 140

R2 689 617 -9%

Expenditure:

Employees R2 792

927 R3 360

034 R3 181

515 R3 153

908 -7% Repairs and Maintenance

R158 368

R174 055

R296 300 R260 009 33%

Other R2 443

095 R3 115

160 R3 053

669 R2 818

841 -11%Total Operational Expenditure

R5 394 390

R6 649 249

R6 531 484

R6 232 759 -7%

Net Operational Expenditure

R4 981 897

R3 728 109

R3 610 344

R3 543 142 -5%

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 3.13.5


109

Capital Expenditure: Cemeteries and Crematoriums 2015/2016

Capital Projects


Budget Actual



Total Project Value

Total (All) R4 830 000 R4 920 000 R4 530 931 8% EXPANSION – FONTEIN CEMETERIES R800 000 R800 000 R799 995 0% R800 000 DEVELOP CEMETERIES – RURAL/LOW-INCOME AREAS R2 500 000 R2 500 000 R2 239 050 10% R2 500 000 RENOVATION OF CEMETERY BUILDING – BHIMY DAMANE STREET R400 000 R400 000 R318 650 20% R400 000 EXPANSION – PHUMOLONG CEMETERY R450 000 R450 000 R449 933 0% R450 000 UPGRADE NAZARETH OLD CEMETERY R500 000 R500 000 R453 758 9% R500 000 UPGRADE LIGHTING AT CEMETERIES R180 000 R270 000 R269 545 0% R270 000 Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.13.6

COMMENT ON THE OVERALL PERFORMANCE OF CEMETERIES AND CREMATORIUMS

Priority was given to the development of new cemeteries and the maintenance of existing cemeteries according to the IDP and available allocated budgets. The targets set in the five-year IDP schedule will be met provided that the budget allocations are approved and suitable land is available for future development. Current variances on budgets are caused by savings or value-added tax (VAT) not claimed back from the South Africa Revenue Service.


110

3.14. CHILDCARE, AGED CARE, AND SOCIAL SPECIAL PROGRAMMES

INTRODUCTION TO SPECIAL PROGRAMMES

The Gender and Social Development Unit aims to ensure effective and efficient management of institutional mechanisms for social and economic empowerment, equalization of opportunities, and access to resources for various individuals. These include women, children, persons with disabilities, elderly persons, and those affected and infected by HIV and AIDS issues. The aim of the programmes is to work with and strengthen collaboration with relevant departments, the private sector, labour, and civil society in mainstreaming issues related to the targeted groups at Steve Tshwete Local Municipality.


111

Childcare, Aged Care, and Social Programmes Policy Objectives Taken from IDP

Service Objectives Outline Service Targets 2014/2015 2015/2016 2015/2016 2015/2016 2016/2017 Target Actual Target Actual


Year

*Previous Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) Service Objective

To contribute towards improving quality of life through integrated services for children, women, persons with disabilities, the elderly, and persons living with HIV and AIDS

Number of activities initiated to develop guidelines for the Mainstreaming of Special Programmes adopted by the Council and implemented

3 4 3 1 2 2

Number of activities initiated to develop the HIV and AIDS Strategy for 2012-2016 adopted by the Council and implemented 3 4 3 3 2 2

To initiate programmes directed at combating crimes, substance abuse, and social decay of youth

Number of social programmes initiated and implemented to address the well-being of youth 5 11 5 18 5 5

To address the needs and challenges of young men and women by accommodating their specific issues relating to youth development

Number of programmes created to assist youth in improving their livelihoods 4 8 4 4 9 4


112

Employees – Childcare, Aged care, and Social Programmes Years 1 (2015) Year 0 (2016) Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 1 1 0 04-6 1 0 0 0 07-9 0 1 1 0 010-12 0 0 0 0 013-15 0 0 0 0 016-18 0 0 0 0 019-20 0 0 0 0 0Total 2 2 2 0 0

Financial Performance: Childcare, Aged Care, and Social Programmes

2015/2016

Details


Budget Adjustment


to Budget

Total Operational Revenue - - - - 0%

Expenditure:

Employees R452 669 R846

478 R861

168 R865

648 2% Repairs and Maintenance - - - - 0%

Other R1 909

608 R2 331

011 R2 385

510 R2 200

766 -6%Total Operational Expenditure

R2 362 277

R3 177 489

R3 246 678

R3 066 414 -4%


R2 362 277

R3 177 489

R3 246 678

R3 066 414 -4%



113

COMMENT ON THE PERFORMANCE OF CHILDCARE, AGED CARE, AND SOCIAL PROGRAMMES

In as far as planning and performance for special programmes is concerned, the municipality is improving, although it is faced with various challenges developing as a result of migration for employment opportunities, which does not single out social issues. This includes issues such as poverty, unemployment and inequality, the issue of substance abuse escalating, high prevalence of HIV/AIDS, and vulnerable and orphaned children. Community Survey 2016 indicators show increasing poverty and increasing population of children between the ages of 0 to 9 as well as the youth of Steve Tshwete Local Municipality. Nevertheless, the collective responsibility of the local municipality, stakeholders, and civil society will focus on providing services for the special groups through the War Rooms entailed in the Operation Vuka Sisebente and other stakeholder forums.


114

3.15. YOUTH DEVELOPMENT

INTRODUCTION TO YOUTH DEVELOPMENT

Youth development is the ongoing growth process in which all young people are engaged in attempting to:

meet their basic personal and social needs to be safe, feel cared for, valued, useful, and spiritually grounded;

build their skills, talent, and competencies that allow them to function and contribute in their daily lives; and

provide guidance on educational, economic, cultural, and sports development.

Youth development also refers to engaging young women and men in developmental activities as participants in decision-making processes and as beneficiaries. The target youth as per the National Youth Policy is young people between the ages of 14 and 35, and these young people are in schools while the others are out of school.

In addressing youth development, the municipality is focusing on the following areas:

Education and skills development

Health and well-being

Sports and recreation

Economic development

Moral regeneration

Based on the above-mentioned focus areas, the municipality has hosted an annual career expo that attracted close to 3 000 students within the STLM area. Secondly, through private-public partnership, we are awarding bursaries on an annual basis to well-deserving students who come from previously disadvantaged communities. Thus far, we have awarded 15 students with bursaries in the 2013/2014 financial year.

In partnership with social development, the municipality has three youth development centers: one in Doornkop, in Mhulzi, and the other one in Hendrina. We also have a youth advisory centre in Mhluzi. These centres provide young people with the following assistance:

Career guidance through one-on-one sessions and also visiting schools

Online job application and bursary application

Job preparedness workshops

Entrepreneurship development workshop (expo)

Life skills


115

Youth Management Policy Objectives Taken from IDP Service Objectives


2014/2015 2015/2016 2016/2017


Service Indicators

*Previous Year *Previous Year *Current Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) Initiate programmes

directed at combating crime, substance abuse, and social decay

5 11 5 5 11 5

Address the need and challenges of youth in education and skills development

4 8 4 4 9 4

T 3.15.3


116

Employees – Youth Affairs Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees


0-3 1 1 1 0 04-6 0 0 0 0 07-9 1 1 1 0 010-12 2 2 2 0 013-15 0 0 0 0 016-18 0 0 0 0 019-20 0 0 0 0 0

Total 4 4 4 0 0

Financial Performance: Youth Management 2015/2016

Details


Budget Adjustment


Budget


Expenditure:

Employees R2 234

466R2 603

871 R2 445 881 R2 052 276 -27%

Repairs and Maintenance - - - - 0%

Other R754 450 R964 435 R744 562 R499 242 -93%Total Operational Expenditure

R2 988 917

R3 568 306 R3 190 443 R2 551 517 -40%

Net Operational Expenditure R2 988

917R3 568

306 R3 190 443 R2 551 517 -40%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 3.15.5

COMMENT ON OVERALL PERFORMANCE OF YOUTH MANAGEMENT

The overall performance of the Youth Management Unit in the 2015/2016 financial year was impressive. The unit managed to achieve the following: hosted annual career expos together with our partners; 3 000 students attended the expos; 40 young people were placed on the NYS Public Works Learnership Programme; and there were election dialogues in Mhluzi and Nkangala FET. Additionally, Business Outreaches were set up to inform and educate SMMEs on the Central Supplier Database in Hendrina, Mhluzi, and Somaphepha Village; the annual Mayors Cup was held with the sport council and federations, with the introduction of relay; and a capacity workshop was held on how to apply for funding at NYDA – with 60 young people attending the workshop. One of the challenges that remain pertinent within our municipality is the high rate of unemployment amongst young people, substance abuse, the infection of HIV/AIDS, and crime. Partnership with external stakeholders is the only way maximum participation and impact is made in youths’ lives.


117

COMPONENT E: ENVIRONMENTAL PROTECTION

3.16. POLLUTION CONTROL

INTRODUCTION TO ENVIRONMENTAL PROTECTION

The new organizational structure approved by Council incorporated the Environmental and Solid Waste department within the Community Services Directorate as stipulated in the Environmental Management Policy. Environmental health practitioners perform the majority of the environmental management functions.

Air quality monitoring and noise control

The municipality has two monitoring stations at Mhluzi and Columbus respectively. Columbus Station is not functional, as all analyzers are damaged and after assessment of the analysers, one of the analysers was rendered redundant because it cannot be fixed. One of the analysers need to be fixed during the 2016/2017 financial year. Mhluzi Station has been revamped, and four analyzers (PM10, SO2, NOX and O3) were installed. Noise pollution complaints are investigated, and offenders are served with notice.

Pollution control activities

• Thirty-one (31) environmental awareness campaigns were conducted throughout the

municipality.

• Integrated environmental management meetings: draft terms of references were

formulated. The plan to revive the forum is in place, and terms of reference will be

submitted to Council.

• Twenty-four (24) students were provided with practical training.

• Thirty (30) air pollution-related complaints were investigated and notices issued for

non-compliance.

• Sewerage water samples were collected for bacteriological (65) and chemical (94)

analysis.

SERVICE STATISTICS FOR POLLUTION CONTROL

Water readings 99 Air purity readings 75 Environmental awareness campaigns 12 Training of students 100

T 3.15.2


118

Pollution Control Policy Objectives Taken from IDP Service Objectives Outline Service

Targets 2014/2015 2015/2016 2016/2017


Service Indicators

*Previous

Year

*Previous

Year *Current

Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To create a safe and healthy environment

Number of water samples collected for water quality

2 400 2 214 2 400 2 465 3 600 4 800

COMMENT ON THE PERFORMANCE OF POLLUTION CONTROL

Vehicle emission testing was not achieved due to shortage of personnel. Integrated Environmental Management Forum was not achieved due to lack of commitment from stakeholders. For the 2015/2016 financial year, Mhluzi monitoring station will be operational, and results will be available. Streams will be monitored on a quarterly basis.


119

COMPONENT F: HEALTH

3.17. HEALTH INSPECTIONS

INTRODUCTION TO HEALTH INSPECTIONS: FOOD LICENSING AND INSPECTIONS

The priorities of the health services section are to ensure a safe and healthy environment for the community through the following:

Inspection of food premises, public facilities, and day-care centres

Investigation of complaints and addressing nuisance control T 3.19.1

SERVICE STATISTICS FOR HEALTH INSPECTIONS

• All premises licensed to sell tobacco have been inspected for compliance with

tobacco legislation.

• Two thousand hundred and fourteen (2 114) drinking water samples were collected

for quality testing in accordance with SANS 241 standards.

• Eight hundred and twenty-three (823) formal and informal food premises were

inspected to ensure that minimum health standards are complied with.

• All complaints regarding vector and rodents infestation were investigated, and all

nuisances were removed.

• With a view to improving food safety, 12 training sessions with food handlers, i.e.

street vendors and caterers, were conducted.

• Seventy-five (75) day-care centres were inspected and provided with certificates of

compliance with Health and National Building Regulations.

• All complaints received were attended to, and when necessary, notices were issued.

• All building plans received were scrutinised and approved.

• Fifteen (15) pauper burials were done.

• Thirty-four (34) cases of communicable disease was reported and investigated.

• Ninety-three (93) milk samples were collected and analysed.

• Twelve thousand (12 000) people were educated on environmental-related issues

through awareness and campaigns.

T 3.19.2


120

Health inspections Policy Objectives Taken From IDP Service Objectives Outline Service

Targets 2014/2015 2015/2016 2016/2017

Target Actual Target Actual*Current

Year Service Indicators

*Previous Year

*Previous

Year *Current

Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Service Objective xxx

Food premises inspection 600 500 638 500 600 823 600

Training of food handler 12 12 14 12 12 12 12

Day-care centre inspection 60 55 63 55 60 75 60

Complaints attended 100 100 100 100 100 100 100

Pest control and nuisance 100 100 100 100 100 100 100

Tobacco control 100 100 100 100 100 100 100

Financial Performance: Health Inspection, and

Others 2015/2016

Details 2014/2015 2015/2016


Adjustment Budget

Actual Variance to Budget


Expenditure:

Employees R1 743 591R2 342

148 R2 748 950R2 327

429 -1%

Repairs and Maintenance R339 809 R397 200 R407 200 R265 707 -49%

Other R1 405 464R1 947

089 R2 036 265R2 404

350 19%Total Operational Expenditure R3 488 864

R4 686 437 R5 192 415

R4 997 486 6%

Net Operational Expenditure R3 194 765R4 386

737 R4 892 715R4 505

925 3%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 3.19.5

COMMENT ON THE PERFORMANCE OF HEALTH INSPECTIONS

All caterers within the Steve Tshwete Local Municipality will be given training. Vacant stands that create a nuisance to the community will be attended to.


121

COMPONENT G: TRAFFIC, SECURITY, AND SAFETY

This component includes Traffic, Security and Firefighting services, and Disaster Management.

3.18. TRAFFIC AND SECURITY

INTRODUCTION TO TRAFFIC AND SECURITY

The main function of Traffic Services is to make the roads safe and ensure the free flow of traffic at all times. This is done through visible law enforcement, road safety campaigns, and awareness programmes. Selective law enforcement is done at all accident zones where different law enforcement duties are conducted. The municipality is continuously installing traffic signals in order to relieve traffic congestion, and traffic wardens are deployed at different areas to control the flow of traffic in congested intersections and to assist scholars to cross busy intersections. Amongst the measures that are implemented by the municipality to improve road safety is the construction of traffic-calming measures at different streets to reduce the speed of vehicles.

Security Services is responsible for the safeguarding of all municipal property and personnel. It is also responsible for monitoring private security companies that provide security to the municipality. Cable theft remains the main challenge for the municipality.

Traffic and Security Services Data

Details 2014/2015 2015/2016 2016/2017

Actual No. Estimated

No. Actual No. Estimated

No.

1 Number of road traffic accidents during the year 3 146 3 114 3 030 3 050

2 Number of by-law infringements attended 31 173 31 000 75 100

3 Number of traffic officers in the field on an average day 29 32 33 36

4 Number of traffic officers on duty on an average day 40 43 39 42

T 3.20.2


122

Traffic and Security Services Policy Objectives Taken from IDP Service Objectives


2014/2015 2015/2016 2016/2017


Service Indicators

*Previous

Year

*Previous

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii)

To provide safety and security to human life To improve road safety

Number of new traffic-calming measures installed

16 21

16 24 25 32

To improve the free flow of traffic

Number of new traffic signals installed

5 4 5 7 4 10

To provide effective and efficient law enforcement

Number of road traffic law enforcement campaigns conducted

700 642 700 1 050 549 1 400 T 3.20.3


123

Employees – Traffic (Law Enforcement and Security Services) Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 1 1 1 0 04-6 1 1 1 0 07-9 32 35 34 1 310-12 24 28 24 4 1413-15 13 14 13 1 716-18 16 1 1 0 0

19-20 11 11 10 1 9

Total 83 91 84 7 8

Financial Performance: Traffic and Security Services

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:

Other employees R24 643 860 R27 404 082 R26 762 811 R25 650 332 -7% Repairs and Maintenance R2 800 756 R3 297 605 R3 843 605 R3 063 874 -8%



124

Capital Expenditure: Traffic and Security Service 2015/2016

Capital Projects


Budget Actual

Expenditure%

Variance from

Adjusted Budget

Total Project Value

Total (All) R2 798 000 R2 994 000 R1 981 864 34%

INFORMATION SIGNS R60 000 - - 100% -UPGRADE TRAFFIC SIGNALS – CONTROL & SYNCRONISATION R900 000 R1 156 000 R229 288 80% R1 156 000TRAFFIC-CALMING MEASURES IN MP313 AREA R300 000 R300 000 R299 788 0% R300 000

VEHICLE REPLACEMENT R1 000 000 R1 000 000 R957 168 4% R1 000 000PORTABLE GUARD HOUSES (1) R32 000 R32 000 R29 910 7% R32 000

FURNITURE & EQUIPMENT R8 000 R8 000 R7 037 12% R8 000

FIREARMS R40 000 R36 000 R31 213 13% R36 000

NEW VEHICLE – LDV R250 000 R250 000 R246 540 1% R250 000

EQUIPMENT R140 000 R132 500 R115 959 12% R132 500

FIREARM SAFES R8 000 R8 000 R6 774 15% R8 000

POUND SHELVES R30 000 R30 000 R23 270 22% R30 000

FILING CABINETS R30 000 R30 000 R26 350 12% R30 000

ALARM SYSTEM - R11 500 R8 567 26% R11 500Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.20.6

COMMENT ON THE PERFORMANCE OF TRAFFIC AND SECURITY

Public transport remains the challenge for the municipality wherein there is lack of public transport facilities and taxi violence in certain areas. This is caused by lack of public transport enforcement.


125

3.19. FIRE SERVICES AND DISASTER MANAGEMENT

INTRODUCTION TO FIRE SERVICES AND DISASTER MANAGEMENT

The Steve Tshwete Local Municipality provides Fire, Rescue, and Disaster Management services to a community of about 252 232 inhabitants. The municipality performs firefighting in respect of permanent structures, informal settlements, as well as vehicle-related fires. It also attends to vehicle accidents, hazardous material incidents, rescue services inclusive of rope rescue, water rescue, high-angle rescue, and structural collapse, and trench rescue.

Fire prevention forms an integral part of the daily functions of the service, not only fire safety but also disaster management activities to ensure a safer community. The department also makes use of a 24-hour information centre that is fully computerized including an emergency control centre situated at the fire station. Dangers surrounding veld fires resulted in the establishment of a Fire Protection Association, and this is properly supported by the municipality in providing fire equipment (Skid Units) for making fire breaks between the municipal boundaries and private land.

Being part of the Nkangala District Municipality local authorities’ area of jurisdiction, these services are not only rendered inside the MP313 area but also rendered outside STLM’s area – but within the entire Nkangala area on a regular basis.

SERVICE STATISTICS FOR FIRE, RESCUE, AND DISASTER MANAGEMENT

Middelburg Hendrina

Motor vehicle accidents 899 190 Pedestrian accidents 89 19 Fires 418 141 Rescue 29 4 Special services 100 14

Fire Services Data

No. Details 2014/2015 2015/2016

Actual No. Estimated

No. Actual No. 1 Total fires attended during the year 803 600 5592 Total of other incidents attended during

the year 1 402 1 400 1 3443 Average turnout time – urban areas 12 minutes 12 minutes 10 minutes4 Average turnout time – rural areas 23 minutes 26 minutes 24 minutes5 Firefighters in post at year end 49 54 526 Total fire appliances at year end 15 21 197 Average number of appliances off the road

during the year 4 5 3


126

Fire Service Policy Objectives Taken from IDP Service Objectives Outline

Service Targets


Service Indicators

*Previous

Year

*Previous

Year *Current Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To provide effective and efficient emergency services To provide effective and efficient emergency services

Number of awareness sessions conducted for the community

48 18 48 72 32 96

To provide a safe and secure environment for the community

Number of fire prevention inspections conducted

600 606 600 900 439 1 200


127

Employees – Emergency Services Years 1 (2015) Year 0 (2016)

Job Level Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

Chief Fire Officer & Deputy 1 1 1 0 0Fire Officers 47 46 44 2 40-3 0 0 0 0 04-6 1 3 3 0 07-9 6 7 5 2 2910-12 24 26 26 0 013-15 0 0 0 0 016-18 0 0 0 0 019-20 3 3 3 0 0

Total 82 86 82 4 5

Financial Performance: Fire Services 2015/2016

Details


Budget Adjustment


to Budget


Expenditure:

Firefighters - - - -

Other employees R27 115 267 R29 479 295 R30 128 054 R29 895 730 1% Repairs and Maintenance R2 105 369 R2 338 545 R2 483 545 R2 223 883 -5%



128

Capital Expenditure: Fire Services 2015/2016

Capital Projects


Budget Actual

Expenditure

% Variance


Total Project Value

Total (All) R5 002

000 R4 965 000 R10 529

575 -112%

RESCUE JACKS R70 000 R49 797 R49 796 0% R49 797

SKID UNITS R62 000 R50 000 R45 656 9% R50 000

REPLACE MERCEDES FIRE ENGINE

R3 200 000 R3 200 000 R3 190 721 0% R3 200 000

REPLACE FURNITURE & EQUIPMENT R10 000 R10 000 R9 291 7% R10 000 REPLACE FIRE EQUIPMENT R70 000 R70 203

R66 272 6% R70 203

NEW FIRE EQUIPMENT R40 000 R35 000 R26

948 23% R35 000

EMERGENCY VEHICLES & EQUIPMENT - - R6 067 247 100% - REPLACE GARAGE DOORS AT FIRE STATIONS R500 000 R500 000 R495 000 1% R500 000

REPLACE EMERGENCY VEHICLES (INSURANCE)

R1 050 000 R1 050 000 R578 644 45% R1 050 000

Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.21.6

COMMENT ON THE PERFORMANCE OF FIRE SERVICES AND DISASTER MANAGEMENT

The final disaster management plan is approved by Council during the 2015/2016 financial year (SC08/06/2016). Training of councillors, administration staff, and community members is in progress to ensure a resilient community. The expansion of the vehicle fleet, equipment, and personnel is kept within the available budget.

An additional fire station is envisaged to be established; it will serve the Mhluzi area. Satellite stations are also planned for Kranspoort, the industrial area in Middelburg, and the Komati Power Station area, to comply with the South African National Standards 10090 of 2003 requirements.


129

COMPONENT H: SPORT AND RECREATION

This component includes community parks, sports fields, sports halls, stadiums, swimming pools, and campsites.

3.20. PARKS, SPORT, AND RECREATION

INTRODUCTION TO SPORT AND RECREATION

The Physical and Environmental Department provides a wide range of services to the community. This reaches from the administration of sports and recreational facilities to the maintenance of all parks and recreational facilities and resorts such as Middelburg Dam.

The service delivery priorities are to provide and maintain sports facilities, parks, municipal swimming pools, resorts, and public open spaces, as well as the seasonal maintenance of pavements and all Council-owned open areas. Where necessary, pesticides, herbicides, and arboriculture are applied to problem areas. These priorities were met through maintaining all facilities by cutting grass, removing weeds, planting trees, pruning trees, and selectively applying chemicals. Seasonal employees were appointed, and EPWP projects were introduced to ensure job creation and a safe environment.

SERVICE STATISTICS FOR SPORT AND RECREATION FACILITIES

Aerobics 01 Badminton 03 Basketball 05 Bowls 02 Cricket 01 Gymnastics 01 Hockey 01 Jukskei 36 Karate 02 Korfball 06 Marathon 03 Netball 08 Parks 93

Pigeon clubs 02 Rugby 02 Soccer (grass fields) 09 Soccer fields 30 Squash 02 Tennis 20 Volleyball 03 Wrestling 01

T 3.23.1


130

Sport and Recreation Policy Objectives Taken from IDP Service Objectives Outline

Service Targets



Year *Previous

Year *Current

Year *Current Year


To provide new parks while upgrading existing parks and open areas according to prioritized community needs

Number of parks and open spaces upgraded or developed

2 parks and open spaces developed. 2 existing upgraded

5 parks developed. 1 park upgraded

2 parks and open spaces developed. 2 existing upgraded

4 existing parks upgraded

7 upgrading projects completed

2 public open spaces upgraded. 2 public open spaces developed by June 2017

To contribute towards the mitigation of climate change impacts

Number of trees planted and propagated in the MP313 area

5 000 trees planted in the MP313 area.

8 000 propagated trees by June 2015

6 390 trees planted. 19 100 trees propagated


8 000 propagated trees by June 2015


8 000 propagated trees


8 100 propagated trees

5 000 trees planted in the MP313 area by June 2017. 8 000 trees propagated in the MP313 area by June 2017

To provide new sport and recreation facilities while upgrading existing facilities according to prioritised community needs

Number of sporting facilities developed or upgraded

1 new graded soccer field developed in previously disadvantaged area by June 2015

2 graded soccer fields constructed

1 new graded soccer field developed in previously disadvantaged area by June 2015

1 new graded soccer field developed

2 new graded soccer fields developed

2 new graded soccer fields developed in previously disadvantaged areas by June 2017

T 3.23.2


131

Employees – Sport and Recreation Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 2 2 2 0 04-6 0 0 0 0 07-9 8 10 9 1 1010-12 10 12 11 1 813-15 5 6 5 1 1716-18 39 41 40 1 219-20 87 91 90 1 1

Total 151 162 157 5 3

Financial Performance: Parks, Sport, and Recreation

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:

Employees R25 428 989 R29 826 000 R28 491 446R27 941

346 -7% Repairs and Maintenance R4 833 004 R12 464 119 R12 952 244

R10 792 885 -15%

Other R25 043 669 R22 005 599 R21 129 685R18 060

724 -22%Total Operational Expenditure R55 305 662 R64 295 718 R62 573 375

R56 794 955 -13%

Net Operational Expenditure R50 533 746 R60 393 978 R58 921 197

R53 164 908 -14%



132

Capital Expenditure: Parks, Sport, and Recreation

Capital Projects

2015/2016 Budget Adjustmen

t Budget

Actual Expenditure

% Variance


Total Project Value

Total (All) R8 573 000 R8 706 935 R8 316 826 4%

PARKS VEHICLES TRACTOR 55 KW R300 000 R300 000 R276 368 8% R300 000

REFURBISH SPORT CLUBHOUSES - R138 935 R135 763 2% R138 935

LAWNMOWER (PAVEMENTS) R105 000 R100 000 R99 020 1% R100 000

LAWNMOWER TRACTOR (PAVEMENTS) R500 000 R500 000 R412 100 18% R500 000

POOL EQUIPMENT MIDDELBURG/MHLUZI R80 000 R80 000 R74 470 7% R80 000

FENCE & GATES KEES TALJAARD R350 000 R350 000 R218 748 38% R350 000

NEW PLAYING EQUIPMENT R100 000 R100 000 R97 063 3% R100 000

LDV ONE TON R180 000 R180 000 R174 704 3% R180 000

BRUSHCUTTERS AND CHAINSAWS R118 000 R118 000 R115 905 2% R118 000

REPLACE VEHICLES R740 000 R740 000 R730 197 1% R740 000

REPLACE PLAYING EQUIPMENT R100 000 R100 000 R97 063 3% R100 000

OR TAMBO STREET LANDSCAPE & NEW DEVELOPMENT R200 000 R200 000 R183 944 8% R200 000

REPLACE WALKBEHIND MOWERS R70 000 R70 000 R69 810 0% R70 000

RECONSTRUCT KORFBALL COURTS R250 000 R250 000 R213 333 15% R250 000

BASIC SPORT FACILITIES LOW-INCOME AREAS R2 500 000 R2 500 000 R2 499 985 0% R2 500 000

DESIGN AND DEVELOP MALL GARDEN R300 000 R300 000 R299 564 0% R300 000

UPGRADE LIONS PARKS R400 000 R400 000 R399 838 0% R400 000

FIELD MARKING EQUIPMENT R35 000 R35 000 R28 916 17% R35 000

EQUIPMENT & TOOLS R40 000 R40 000 R20 696 48% R40 000

UPGRADE VAN BLERK PLEIN R700 000 R700 000 R699 329 0% R700 000

UPGRADE RECREATION FACILITIES R80 000 R80 000 R79 820 0% R80 000

UPGRADE SPORT FACILITIES R200 000 R200 000 R166 020 17% R200 000

UPGRADE FENCE RECREATION FACILITIES R425 000 R425 000 R424 325 0% R425 000

UPGRADE WALKWAYS R500 000 R500 000 R499 940 0% R500 000

ERECT FENCING AT PARKS R300 000 R300 000 R299 905 0% R300 000 Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate).

T 3.23.5


133

COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES

This component includes corporate policy offices, financial services, human resource (HR) services, ICT services, and property services.

INTRODUCTION TO CORPORATE POLICY OFFICES AND OTHERS

All policies have to serve at Council and procedure manuals serve at Management Committees for their endorsement. Other working documents are approved at directorate and department level depending on the effects and the stretch of the effects, as to how many departments are affected.

Most of the policies and guiding documents are in the following directorates and/or departments: Finance (14), Human Capital Management (33), Information Communication Technology (37), and Council has 40 by-laws.

T 3.24

3.21. EXECUTIVE AND COUNCIL

This component includes the executive office: Mayor, councillors, and Municipal Manager.

INTRODUCTION TO EXECUTIVE AND COUNCIL

The executive is composed of the Executive Mayor, who is elected by other councillors during the first council sitting. The Executive Mayor then appoints MMCs from amongst the members of Council. In addition to the Executive Mayor, the executive is also made up of MMCs. They assist the Executive Mayor to execute his duties.

The municipal Council has 29 ward councillors and 29 proportional representative councillors. For Council to take a decision, it needs a simple majority, where the meeting forms a quorum i.e. 50% of councillors plus one councillor.

T 3.24.1


134

The Executive and Council Policy Objectives Taken from IDP Service Objectives


2014/2015 2015/2016 2016/2017

Target Actual Target Actual Target Service Indicators

*Previous Year

*Previous Year

*Current Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To promote effective community participation

Procurement of mayoral vehicle

N/A N/A N/A 1 vehicle 1 vehicle N/A

Coordination and facilitation of Mayoral Outreaches

6 6 6 6 6 6

T 3.24.3


135

Financial Performance: The Executive and Council

2015/2016

Details


Budget Adjustment

Budget Actual Varianc

e to Budget

Total Operational Revenue R46 912

130 R57 503 329 R59 478 624 R55 526 689 -4%

Expenditure:

Employees R24 241

279 R36 281 638 R30 345 552 R28 007 727 -30%

Repairs and Maintenance R470 937 R762 510 R771 210 R552 223 -38%

Other R55 550

065 R58 289 194 R57 820 097 R64 867 714 10%Total Operational Expenditure

R80 262 282 R95 333 342 R88 936 859 R93 427 665 -2%


R33 350 152 R37 830 013 R29 458 235 R37 900 976 0%


Capital Expenditure: The Executive and Council Year 0

Capital Projects


Budget Actual



Total Project Value

Total (All) R996 500 R1 798 500 R864 246 52%

BULK FILING CABINETS R125 000 R125 000 R69 459 44% R125 000

FURNITURE R3 000 R35 000 R24 583 30% R35 000EXECUTIVE SUPPORT VEHICLE R850 000 R1 590 000 R729 842 54% R1 590 000FURNITURE & OFFICE EQUIPMENT R3 500 R3 500 - 100% R3 500

OFFICE FURNITURE R15 000 R15 000 R12 296 18% R15 000FURNITURE & OFFICE EQUIPMENT - R30 000 R28 066 6% R30 000Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.24.6


136

COMMENT ON THE PERFORMANCE OF THE EXECUTIVE AND COUNCIL

The department managed to successfully implement their projects as per the SDBIP. The legal services had a challenge with the procurement of the Executive Support vehicle due to under-budgeting. T 3.24.7

3.22. FINANCIAL SERVICES

INTRODUCTION TO FINANCIAL SERVICES

The directorate is responsible for the function of budgetary and accounting, expenditure and revenue management, and maintenance of the financial system. Financial management strategies are important to guide the municipality to maximise the available financial resources to ensure long-term financial viability through the following strategies:

● Manage revenue, expenditure, assets, and liabilities in a responsible manner. ● Well-thought-out budgetary and financial planning processes in line with budget and reporting regulation. ● Effective supply chain management. ● Effective cash flow management.

T 3.25.1


137

Debt Recovery

Details of the Types of Account

Raised and Recovered

2013/2014 2014/2015 2015/2016 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 (%)

Estimated Outturn for Accounts Billed in

Year

Estimated Proportion of

Accounts Billed that

Were Collected (%)

Property Rates R273 586 515

R252 475 384 (92%) R287 879 131 R287 879 131

R264 219 930 (92%) R314 696 093

R283 674 020 (90%)

Electricity – B R7 243 654

R6 372 599 (88%) R7 332 286 R7 332 286

R6 291 198 (86%) R8 180 266

R7 071 432 (87%)

Electricity – C R453 967 869

R436 988 927 (96%) R489 155 095 R489 155 095

R471 568 497 (96%) R541 847 558

R522 034 222 (96%)

Water – B R928 509

R663 695 (71%) R1 119 393 R1 119 393

R792 907 (71%) R1 290 318

R933 603 (72%)

Water – C R72 560 994

R67 580 152 (93%) R88 039 735 R88 039 735

R81 576 172 (93%) R102 524 042

R94 359 285 (92%)

Sanitation R48 421 693

R44 539 204 (92%) R52 625 498 R52 625 498

R48 087 831 (91%) R56 212 019

R50 589 256 (91%)

Refuse R47 798 925

R43 908 108 (92%) R54 809 211 R54 809 211

R50 316 282 (92%) R62 314 625

R56 968 192 (90%)

Other 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. T 3.25.2


138

Financial Service Policy Objectives Taken from IDP Service Objectives Outline Service

Targets 2014/2015 2015/2016 2016/2017



Year *Previous

Year *Current

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To manage revenue in an efficient and responsible manner

% of amounts billed collected

Above 98% 100.52% Above 98% Above 98% 100.31% Above 98%

To maintain clean and effective governance

Compliance with AG clean audit

Clean Audit Unqualified with matters

Clean Audit Clean Audit Clean Audit

Clean Audit

To identify and investigate inaccurate meter readings/consumptions

Number of meter reading based on estimation instead of actual meter reading

Reduce meter readings with estimations by 250

362 more meters to be read

2 838 less meters estimated from June 2015

2 838 less meters estimated from June 2015

Reduce by 250 meters

Reduce by 250 meters

To ensure efficient, effective cash flow management

Debt coverage ratio

Maintain above 10

30.04 Maintain above 10

Maintain above 10

58:1 Maintain above 10


Cost coverage ratio

Maintain above 2

1:5.7 Maintain above 2

Maintain above 2

6:1 Maintain above 2

To maintain a comprehensive and uniform valuation roll

% of supplementary taxes implemented

100% 100% 100% 100% 100% 100%

T 3.25.3


139

Employees – Financial Services Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 3 6 5 1 174-6 14 20 15 5 257-9 11 14 12 2 1410-12 25 28 27 1 413-15 23 25 24 1 416-18 1 1 1 0 019-20 2 2 2 0 0

Total 79 96 86 10 10

Financial Performance: Financial Services

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:




140

Capital Expenditure: Financial Services 2015/2016

Capital Projects


Budget Actual



Total Project Value

Total (All) R515 000 R522 000 R1 258 371 -141%

OFFICE EQUIPMENT & FURNITURE R70 000 R74 000 R53 890 27% R74 000FURNITURE & OFFICE EQUIPMENT R80 000 R80 000 R77 975 3% R80 000FENCING AT KOMATI PAYPOINT - R7 000 R7 000 0% R7 000INSTALLATION OF ALARM SYSTEM R50 000 R46 000 R4 821 90% R46 000REPLACE VEHICLE R275 000 R275 000 R244 033 11% R275 000SHELVES R40 000 R40 000 R39 954 0% R40 000REPLACE INSURED ASSETS - - R830 698 100% -

Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.25.6

COMMENT ON THE OVERALL PERFORMANCE OF FINANCIAL SERVICES

The projects above are for service delivery requirements to ensure all functions are performed in the Finance Department. Eighty-two per cent (82%) of the capital budget has been spent, and one project has not been completed – the installation of the alarm system.

T 3.25.7


141

3.23. HUMAN RESOURCE SERVICES

INTRODUCTION TO HUMAN RESOURCE SERVICES

The Human Capital Management Department of the Steve Tshwete Local Municipality is focused on providing the best personnel services through fair and transparent processes and procedures. It is also focused on effective recruitment procedures, training and empowering staff, and providing expert and professional advice to staff and management on human resources-related issues.

The Human Resources Department maintained its strategy during 2015/2016 to recruit qualified and competent staff to fill vacancies. Structured interviews were conducted together with work sampling-based tests to assist with the selection of the best candidates for appointment. Verification of qualifications, working record/history, possible fraudulent activities, and criminal record are being done for selected positions through an independent service provider before appointments are made. This prevented the municipality from appointing staff without the necessary skills, competencies, and qualifications.

In addition to the foregoing, a Workplace Skills Plan is being compiled, submitted to the Local Government Sector Education Training Authority (LGSETA) on an annual basis, and implemented accordingly to attend to the most critical skills development needs. It is usually complemented by the bursary scheme, which caters for longer-term qualification strategies.

The Local Labour Forum, Staff Wellness Meetings, and Human Resources Development Meetings were being planned to take place on a monthly basis.

SERVICE STATISTICS FOR HUMAN RESOURCE SERVICES

During the 2015/2016 financial year, 27 new posts were created within the Steve Tshwete Local Municipality. The staff complement for the 2015/2016 period consisted of 1 477 permanent positions, of which 1 372 posts are filled, whereas the services of 60 employees were terminated due to factors such as retirement and resignations.

T 3.26.2


142

Human Resource Services Policy Objectives Taken from IDP Service Objectives Outline Service Targets 2014/2015 2015/2016 2016/2017 Target Actual Target Actual Target


Year *Previous

Year *Current

Year *Current

Year (viii) (i) (ii) (iii) (iv) (v) (vi) (vii)

To ensure compliance with the EEA

2 employees from EEA target groups to be employed at the three highest levels

2 5 2 2 3 2

1 EE Plan to be submitted to the Department of Labour by the end of October annually

1 EE Plan submission



1 1 1

To support and promote total well-being of the staff

3 Staff Wellness activities to be implemented 3 activities

2 activities performed

3 activities 3 activities 2 Acts & 2 quarterly reports

3

To capacitate employees in order to enhance service delivery

9 senior managers attending the national Minimum Competency Programme 4 100% 4 4 4 9 0.4% of payroll budget to be spent annually by June on Workplace Skills Plan

0.4% of payroll 0.4%

0.4% of payroll 0.4% 0.42 0.4 (100%)

To maintain a healthy relationship with labour

18 activities to enhance labour relations annually 18 30 18 18 15 18

To create a safe and healthy environment for personnel

5 activities to be conducted annually for OHS Policy 5 10 5 5 20 5

To develop and maintain a personnel structure that will ensure effective and sufficient service delivery

3 levels of the reviewed organogram to be implemented Level 1 to 3 Level 1 to 3 Level 1 to 3 Level 1 to 3 8

T 3.25.3


143


144

Employees – Human Resources Services Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees


0-3 2 3 2 1 334-6 6 8 7 1 137-9 2 3 3 0 010-12 2 2 2 0 013-15 1 1 1 0 016-18 0 0 0 0 019-20 1 1 1 0 0

Total 14 18 16 2 11

Financial Performance: Human Resource Services

2015/2016

Details


Budget Adjustment


Budget

Total Operational Revenue R609 664 R672 272 R679 372 R593 394 -13%

Expenditure:



Capital Expenditure: Human Resource Services 2015/2016

Capital Projects


Budget Actual


from adjusted budget

Total Project Value

Total (All) R12 000 R12 000 R11 762 2%

OFFICE FURNITURE R12 000 R12 000 R11 762 2% R12 000Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.26.6


145

COMMENT ON THE PERFORMANCE OF HUMAN RESOURCE SERVICES OVERALL

Furniture and office equipment were HR projects. An amount of R11 762 was spent for the necessary furniture on the SDBIPs, which means that 98% of the budgeted capital expenditure of R12 000 was spent. The capital items included a water dispenser, digital safe, microwave oven, and two office chairs. Operational expenditure was 92.2%.

T 3.26.7

3.24. INFORMATION AND COMMUNICATION TECHNOLOGY SERVICES

This component includes Information and Communication Technology (ICT) services.

INTRODUCTION TO ICT SERVICES

Information Communication Technology Services Department provides a platform to support ICT systems and ICT services to end users of STLM and to the STLM community by extension.

The priority has been for ICT to be an enabler. This includes setting systems and providing services that enable various departments in the municipality to provide their products and services to the community by hosting such systems on ICT infrastructure.

We have continued to host financial, human resources, electrical, civil engineering, planning, traffic, and a call centre to enable departments to provide efficient and reliable products and services. We have improved our server infrastructure and networking through the provision of backup and retentions services, introducing new buildings to municipal network infrastructure. We have also improved our wireless network capacity, provided tools of trade to our users, introduced a mobile app to improve communication, continued the use of SMSs to communicate with the community, provision of telecommunication services and data services, and enabling a platform for our users.

T 3.27.1

SERVICE STATISTICS FOR ICT SERVICES

● Ninety-eight per cent (98%) wireless network availability ● Ninety per cent (90%) monthly full backups generated ● Four (4) ICT Services incidents reports generated quarterly ● Hundred per cent (100%) of information received published on the website and intranet.

T 3.27.2


146

ICT Services Policy Objectives Taken from IDP Service Objectives


2014/2015 2015/2016 2016/2017


Service Indicators

*Previous Year

*Previous Year

*Current Year

*Current Year

*Current Year

*Following Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Provisioning

of ICT

equipment

Provide

computers,

printers,

servers,

scanners,

projectors,

phones,

UPSes, etc

4 reports on

provisioning,

supply of IT

equipment,

and updated

asset

register

4 reports on

provisioning,

supply of IT

equipment

and updated

asset

register.

4 quarterly

reports on

provisioning

of ICT

equipment

4 quarterly

reports on

provisioning

of ICT

equipment

4 quarterly

reports on

provisioning

of ICT

equipment

100%

capital

budget

spent on

provisioning

of ICT

equipment

by June

2017

100%

capital

budget

spent on

provisioning

of ICT

equipment

by June

2017

100%

capital

budget

spent on

provisionin

g of ICT

equipment

by June

2017

ICT systems

maintenance

and end

user

support.

Provide end

user

maintenance

and support

4 reports on

100%

attended

calls, and

95%

resolved

calls to be

generated

4 reports on

100%

attended

calls, and

95%

resolved

calls to be

generated

4 quarterly

dashboard

reports on

incidents

responded

to in 10 min

and

resolved

incidents in

8 hours to

be

generated

4 quarterly

dashboard

reports on

incidents

responded

to in 10 min

and

resolved

incidents in

8 hours to

be

generated

4 quarterly

dashboard

reports on

incidents

responded

to in 10 min

and

resolved

incidents in

8 hours to

be

generated

4 500

incidents

reported and

resolved by

June 2017

4 500

incidents

reported and

resolved by

June 2017

4 500

incidents

reported

and

resolved by

June 2017


147

ICT Services Policy Objectives Taken from IDP Service Objectives


2014/2015 2015/2016 2016/2017


Service Indicators

*Previous Year

*Previous Year

*Current Year

*Current Year

*Current Year

*Following Year

Generation

of the

reports for

update of

municipal

website

Provide website

and intranet

services

4 reports to

be

generated

on the

update of

website

4 reports to

be

generated

on the

update of

website

4 quarterly

reports on

information

published

within 8

working

hours

4 quarterly

reports on

information

published

within 8

working

hours

4 quarterly

reports on

information

published

within 8

working

hours

12 reports on information published within 4 working hours



Provision

and

maintenance

of wireless,

data, and

radio

support

Provide radio

communication

services

4 reports on

95% service

availability,

maintenanc

e, and

support

4 reports on

95% service

availability,

maintenanc

e, and

support

4 quarterly

dashboard

reports on

daily service

availability,

maintenanc

e, and

support

4 quarterly

dashboard

reports on

daily service

availability,

maintenanc

e, and

support

4 quarterly

dashboard

reports on

daily service

availability,

maintenanc

e, and

support

4 reports on wireless network availability



T 3.27.3


148

Employees – ICT Services Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 2 2 2 0 04-6 2 2 2 0 07-9 2 2 2 0 010-12 1 1 1 0 013-15 0 0 0 0 016-18 0 0 0 0 019-20 0 0 0 0 0

Total 7 7 7 0 0

Financial Performance: ICT Services

2015/2016

Details


Budget Adjustment


to Budget


Expenditure:

Employees R2 799 659 R3 019 848 R3 322 630 R3 168 476 5% Repairs and Maintenance R3 964 075 R4 912 700 R4 500 000 R4 385 848 -12%

Other R8 475 725 R9 563 995 R11 517 752 R9 727 188 2%Total Operational Expenditure R15 239 460 R17 496 543 R19 340 382 R17 281 511 -1%Net Operational Expenditure R15 219 794 R16 529 643 R18 373 482 R16 311 308 -1%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 3.27.5


149

Capital Expenditure: ICT Services 2015/2016

Capital Projects


t Budget

Actual Expenditure

% Variance


Total Project Value

Total (All) R2 352 000 R2 802 000 R2 573 103 8%

UPGRADE NETWORK BACKBONE INFRASTRUCTURE & VOIP R350 000 R450 000 R353 951 21% R450 000

UPS R180 000 R180 000 R160 049 11% R180 000SERVER – NEW IT SYSTEMS R210 000 R210 000 R207 638 1% R210 000COMMUNICATION (ADD RADIO LINKS TO EXTERNAL STATIONS) R350 000 R550 000 R528 250 4% R550 000

COMPUTER SYSTEMS R565 000 R565 000 R537 494 5% R565 000

PRINTERS R50 000 R80 000 R76 755 4% R80 000

SCANNERS R60 000 R53 500 R53 223 1% R53 500PROJECTOR & SCREEN R17 000 R17 000 R13 353 21% R17 000SURVEILANCE AT CIVIC CENTRE R125 000 R125 000 R124 738 0% R125 000INSTRUMENTS AND TOOLS FOR COMMUNICATION R35 000 R29 500 R15 732 47% R29 500

LAPTOPS R180 000 R312 000 R278 786 11% R312 000TWO-WAY RADIOS FOR ALL DEPARTMENTS R230 000 R230 000 R223 134 3% R230 000Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.27.6

COMMENT ON THE OVERALL PERFORMANCE OF ICT SERVICES

Since this was the final year of the IDP, most of the projects have been attained, and other projects were removed along the way and replaced with others during the review of the IDP. Capital projects for 2015/2016 are upgrade of network backbone infrastructure and VOIP, communication radio links, computer systems, and laptops. The only variation was that the projects were not completed in the months planned for on the SDBIP; however, the projects spent 89%, 97%, 97%, and 89% of the budgeted amount respectively.


150

3.25. INTEGRATED DEVELOPMENT PLAN SERVICES

INTRODUCTION TO IDP SERVICES

The development of the IDP was guided by national and provincial imperatives. Council prides itself in public participation processes that ensure that its citizens’ inputs are taken into consideration during the planning and budget processes. The existing IDP structures ensure that the communities are in the know as far as municipal performance is concerned. Council strives to ensure that there is alignment between the IDP, Performance Management System (PMS), and budget in order to ensure that it meets its objectives.

T3.28.1


151

IDP Services Policy Objectives Taken from IDP Service Objectives Outline Service

Targets 2014/2015 2015/2016 2016/2017



Year *Previous

Year *Current

Year *Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) To guide and inform the municipal planning, budget and management, and development actions

Develop and review the IDP of the organisation 1 1 1 1 1 1

T 3.28.3


152

Development and Strategic Support (IDP and PMS) Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 3 3 3 0 04-6 0 1 0 1 1007-9 0 0 0 0 010-12 1 1 1 0 013-15 0 0 0 0 016-18 0 0 0 0 019-20 0 0 0 0 0

Total 4 5 4 1 20 Financial Performance: IDP Services 2015/2016

Details


Budget Adjustment


to Budget


Expenditure:

Employees R2 234 466 R2 603 871 R2 445 881 R2 052 276 -27%

Repairs and Maintenance - - - - 0%

Other R754 450 R964 435 R744 562 R499 242 -93%Total Operational Expenditure R2 988 917 R3 568 306 R3 190 443 R2 551 517 -40%

Net Operational Expenditure R2 988 917 R3 568 306 R3 190 443 R2 551 517 -40%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 3.28.5

Capital Expenditure: IDP Services Year 0

Capital Projects


Budget Actual



Total Project Value

Total (All) R6 000 R15 000 R12 567 52%

FURNITURE R6 000 R15 000 R12 567 52% R15 000Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.28.6


153

COMMENT ON THE OVERALL PERFORMANCE OF IDP SERVICES

Council adopted its 2015/2016 IDP as per legislative requirements. Furthermore, priorities identified in the IDP informed resource allocation (budget).

T 3.28.7

3.26. 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

Property valuation: The department is responsible for providing an updated basis for the levying of property rates. During the 2015/2016 financial year, the 4th supplementary valuation roll for the 2013-2018 general valuation roll was compiled and submitted in January 2016. The department is also responsible for the alienation of Council’s properties as per the prescripts of the relevant legislation.

Legal and administration services: This is responsible for the provision of legal advice, ensuring legal compliance, and providing support services to Council. It also has the responsibility for contract management and administration and management of tenders.

Risk management services: The unit is responsible for providing guidance on risk mitigation strategies in line with the approved risk management strategy and policy. On an annual basis, the risk workshop is held to review organisational risk and new emerging risks to develop strategic and operational risk plans.

Procurement services: This unit is responsible for the acquisition of supplies and services in support of the municipality’s business. It ensures that all procurement processes are fair, equitable, competitive and cost effective and that it complies with the regulatory framework and consistent with all applicable legislation.

T 3.28.1

SERVICE STATISTICS FOR PROPERTY, LEGAL, RISK MANAGEMENT, AND PROCUREMENT

SERVICES

Tenders : 97 Contracts : 103 Supplementary valuations : 3 206 Policies : 38 By-laws : 2

T 3.28.2


154


155

Property, Legal, Risk Management, and Procurement Services Policy Objectives Taken from IDP Service Objectives Outline Service Targets 2014/2015 2015/2016 2016/2017


Service Indicators

*Previous Year *Previous

Year *Current

Year

*Current Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii)To ensure compliance with the Fraud Prevention Plan

Number of activities implemented on Fraud Prevention Plan

4 4

4 4

4

To render effective secretariat services

Develop an annual schedule of Council, Mayoral, and other committees

1 1

1 1

1

To maintain a proper Records Management System

Review of the File Plan 1 1

1 1

1

Number of reports submitted in monitoring incoming and outgoing correspondence

6 6 6 6

6

To improve legal compliance

Number of activities to be undertaken to improve legal compliance

3

3

3 3

3

To promote cooperative governance

Number of activities undertaken to comply with King III Report

2

2

2 2

2

To maintain a comprehensive and uniform valuation roll


100% 100% 100% 100% 100% 100%

Facilitate and coordinate risk management functions and processes

Number of strategic risk registers approved by Council 1 1 1 1 1 1

To fully comply with Supply Chain Regulation and National Treasury Guide on procurement processes

Number of compliant in-year reports submitted on time

4 quarterly reports, Annual reports, 12-monthly deviation reports 17

4 quarterly reports, Annual reports, 12-monthly deviation reports

4 quarterly reports, Annual reports, 12-monthly deviation reports 17

4 quarterly reports, Annual reports, 12-monthly deviation reports

T 3.28.3


156

Employees – Property, Legal, and Risk Management Years 1 (2015) Year 0 (2016)

Job Level

Number of Employees

Number of Posts

Number of Employees

Vacancies (Number)

Vacancies (%)

0-3 5 6 6 0 04-6 10 12 10 2 177-9 12 14 13 1 710-12 11 11 11 0 013-15 2 2 2 0 016-18 0 0 0 0 019-20 6 5 5 0 0

Total 46 50 47 3 6

Financial Performance: Legal, Property, and Procurement

2015/2016

Details


Budget Adjustment


to Budget

Total Operational Revenue R2 607 622 R3 701 300 R 3 210 140 R2 988 920 -24%

Expenditure:

Employees R18 460 915 R17 991 890 R23 483 256 R22 237 875 19% Repairs and Maintenance R465 105 R843 160 R851 860 R599 138 -41%



157

Capital Expenditure:

Legal, Property, and Procurement 2015/2016

Capital Projects


t Budget

Actual Expenditure

Variance from

Original Budget

Total Project Value

Total (All) R613 000 R645 000 R543 725 16%

OFFICE FURNITURE R90 000 R90 000 R87 721 3% R90 000BULK FILING CABINETS R125 000 R125 000 R69 459 44% R125 000

FURNITURE R3 000 R35 000 R24 583 30% R35 000FURNITURE & OFFICE EQUIPMENT R80 000 R80 000 R77 975 3% R80 000

REPLACE VEHICLE R275 000 R275 000 R244 033 11% R275 000

SHELVES R40 000 R40 000 R39 954 0% R40 000Total project value represents the estimated cost of the project on approval by Council (including past and future expenditure as appropriate). T 3.25.6

COMMENT ON THE OVERALL PERFORMANCE OF PROPERTY SERVICES

All the departments managed to successfully implement their projects as per the SDBIP. Legal services had a challenge with the procurement of the executive support vehicle due to under-budgeting.

T 3.28.7


158

COMPONENT J: ORGANISATIONAL PERFORMANCE SCORECARD

This component includes a performance summary of the Annual Performance Scorecard Report for the 2015/2016 financial year.

Refer to Appendix V for a full report.

KEY PERFORMANCE AREA TARGET TARGET ACHIEVED

TARGET NOT ACHIEVED

GOOD GOVENANCE & PUBLIC PARTICIPATION

16 16 100% 0 0%

MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT

10 7 70% 3 30%

FINANCIAL VIABILITY AND SUSTAINABILITY

23 16 69.56% 7 30.44%


6 5 83.33% 1 16.67%

SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT

28 21 75% 7 25%

SPATIAL PLANNING AND COMMUNITY DEVELOPMENT

18 16 88.88% 2 11.12%

TOTALS

100 63 63% 25 37%

Chapter 4 – Organisational Development Performance (Report Part II) ANNUAL REPORT – 2015/2016

159

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE REPORT PART II)

INTRODUCTION

To ensure that the organization’s effectiveness is increased, the municipality conducts a personnel needs analysis and makes the necessary provision in the Municipal Budget on an annual basis. To ensure effectiveness and efficiency within the organisation, the municipality annually develops a Workplace Skills Plan, after conducting a training needs analysis. The necessary training is then provided depending on available financial resources. Employees are also provided with all the necessary tools including, but not limited to, ICT tools, furniture, and machinery.

Necessary policies, systems, procedures, and mechanisms are put in place to ensure organizational development. These include, but are not limited to, recruitment, selection, training, discipline, and the retention of staff. Employees are developed as far as possible to assist them to function effectively as human beings and to reach their full potential.

Changes in business process and changing environment requires the organization to review its organizational structure on a regular basis.


160

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL

4.1. EMPLOYEE TOTALS, TURNOVER, AND VACANCIES

EMPLOYEE TOTALS, TURNOVER, AND VACANCIES

Department Description

Year 2013/2014 Year 2014/2015 2015/2016

Vote Allocation

Approved Posts

Number of Employees

Approved Posts

Number of Employees

Number of Vacancies

Vacancies (%)

Approved Posts

Number of Employees

Number of Vacancies

Vacancies (%)

Water (Water General)

560, 561, 562, 563, 564, 566, 567, 571,

575 76 60 78 72 6 8 81 74 7 9

Waste water (Sanitation and Public Toilets)

546, 547, 550, 552, 553, 410 96 93 130 118 12 9 132 118 14 11

Electricity 700 92 80 114 108 6 5 115 111 4 3 Waste Management 420, 425 161 156 190 179 11 6 196 187 9 5 Housing (Housing and Security) 452, 460 26 19 31 27 4 13 30 28 2 7 Roads (Road Transport, Licensing, and Taxi Terminals buildings)

300, 540, 542, 543,

557 139 123 161 145 16 10 161 146 15 9

Transport None 0 0 0 0 0 0 0 0 0 0 Planning (Development and Strategic Support IDP, Town Planning Services) 114, 502 22 20 22 20 2 9 23 20 3 13


161



Year 2013/2014 Year 2014/2015 2015/2016

Vote Allocation

Approved Posts

Number of Employees

Approved Posts

Number of Employees

Number of Vacancies

Vacancies (%)

Approved Posts

Number of Employees

Number of Vacancies

Vacancies (%)

Local Economic Development 124 1 1 1 1 0 0 1 1 0 0 Planning (Strategic & Regulatory) [Office of the Municipal Manager, Deputy Municipal Manager, Exec Director: Public Services, Exec Director: Infrastructure Services, Exec Director: Corporate Services, Exec Director: Financial Services, Internal Audit]

108, 109, 110, 111, 112, 113, 200(1) 18 14 19 15 4 21 19 15 4 21

Community and Social services (Gender and Social Development, Library, Youth Development, Events and Facility Management,

116, 117, 140, 161, 218, 221, 222, 505 68 66 77 74 3 4 82 74 8 10


162



Year 2013/2014 Year 2014/2015 2015/2016

Vote Allocation

Approved Posts

Number of Employees

Approved Posts

Number of Employees

Number of Vacancies

Vacancies (%)

Approved Posts

Number of Employees

Number of Vacancies

Vacancies (%)

Cemetery and Age Care)

Environmental Protection (Pollution control, Biodiversity, Landscape, and Environmental Health) 0 0 0 0 0 0 0 0 0 0

Health 400, 440, 441, 442 5 4 6 5 1 17 6 5 1 17

Security and Safety (Traffic, Emergency Services, and Street Lights)

310, 311, 515, 157 156 175 166 9 5 177 166 11 6

Sport and Recreation

530, 533, 539 122 115 160 151 9 6 162 157 5 3


163



Year 2013/2014 Year 2014/2015 2015/2016

Vote Allocation

Approved Posts

Number of Employees

Approved Posts

Number of Employees

Number of Vacancies

Vacancies (%)

Approved Posts

Number of Employees

Number of Vacancies

Vacancies (%)

Corporate Policy Offices and others (Legal and Admin, HCM, IT, Property and Evaluation, Communication, Project Management Unit, Mayoral admin, Civil engineering, Stores, Financial Data Processing, Municipal Buildings)

105, 118, 120, 121, 122 123, 126 141, 200, 205, 210, 230, 500, 555, 263 231 284 254 30 11 292 270 22 8

TOTAL 1 245 1 139 1 448 1 335 113 8 1 477 1 373 105 7


164

Vacancy Rate: Year 0 (2014/2015) Vacancy Rate: Year 0 (2015/2016)

Designation

Total Approved Posts

Vacancies (Number)

Vacancies (%)

Total Approved Posts

Vacancies (Number)

Vacancies (%)

Municipal Manager 0 1 100 1 1 100Deputy Municipal Manager 1 0 0 1 0 0

CFO 1 0 0 1 0 0Other Section 57 Managers (excluding Finance) 2 1 50 3 2 67

Other Section 57 Managers (Finance) 0 0 0 0 0 0

Police Officers None None None None None None

Firefighters 46 0 0 47 3 6Senior Management – Level 13-15 (excluding Finance) {1-3} 36 7 19 46 8 17Senior Management – Level 13-15 (Finance) {1-3} 6 3 50 7 1 15Highly Skilled Supervision – Level 9-12 (excluding Finance) {4-6} 55 10 18 57 11 19Highly Skilled Supervision – Level 9-12 (Finance) {4-6} 28 8 29 28 7 25

Turnover Rate

Details

Total of Appointments as of the Beginning of the Financial Year

Terminations during the Financial Year

Turnover Rate (%)

2013/2014 153 146 95.4

2014/2015 122 89 6%

2015/2016 90 64 71%


165

COMMENT ON VACANCIES AND TURNOVER

All vacancies are advertised in the press according to policies in this regard. All senior management positions are occupied. Appointments on an acting basis were made where there were vacancies occurred. Internal staff are at liberty to can apply for promotional positions if they meet the requirements in qualifications, skills, and experience. Internal promotions were done where our internal candidates were found to be meeting the requirements for the posts. The Employment Equity Plan is always taken into account when making appointments. The turnaround time for the filling of vacant posts varies depending on the scarcity of skills in the labour market, qualifications and experience required. The target is to fill a vacancy within three months.

The reason for turnover is mainly due to resignations, retirement, death, and dismissals. Employees mainly resign as a result of career advancement. We have an active Employee Assistance Programme in place and also had staff wellness events during the year. There is also a long service recognition system in place which is implemented in terms of the conditions of service and internal policies. Retention measures such as scarcity allowances have been introduced and are implemented. However, due to other institutions offering more benefits than we can afford, it is not always possible to retain scarce and skilled employees. T 4.1.4

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT

An Employment Equity Plan has been developed and implemented and is annually reviewed. Annual reports on the implementation of the plan are sent to the Department of Labour at the end of September as required by law. A variety of policies were developed and implemented as indicated in Section 4.2 on policies.

T 4.2.0


166

4.2. POLICIES

HR Policies and Plans No. Name of Policy Completed

(%) Reviewed

(%) Date Adopted by Council or Comment on Failure to

Do so 1 Affirmative Action 100% S51/06/2001 2 Attraction and Retention 100% 100% 3 Code of Conduct for

Employees 100% S01/01/2001

4 Delegation, Authorization, and Responsibility

100% C28/06/2012

5 Disciplinary Code and Procedures

100% M28/08/2010

6 Essential Services 100% LRA GN R1216 GG 18276 OF 12 SEP 1997

7 Employee Assistance/Wellness 100% M24/08/2002 8 Employment Equity Plan 100% EEA ACT 55 OF 1998

S51/06/2001 9 Exit Management (Part of

Retention Policy) 100% M08/07/2010

10 Grievance Procedures 100% MCA 01 MAY 2007 11 HIV/AIDS Policy 100% M06/03/2010 12 Human Resource and

Development 100% M44/05/2012

13 Information Technology 100% 07 AUGUST 2009 14 Job Evaluation 100% SM06/12/2012 15 Leave (According to Conditions

of Service) 100% MCA 01 MAY 2007

16 Occupational Health and Safety

100% 22 APRIL 2012

17 Official Housing 100% M17/05/2008 18 Official Journeys 100% S27/08/2000 19 Official Transport to attend

Funeral 100% M19/11/2011

20 Official Working Hours and Overtime

100% 01 MAY 2007

21 Organizational Rights 100% 01 MAY 2007 22 Payroll Deductions 100% MAIN COLLECTIVE

AGREEMENT BCEA 23 Performance Management and


24 Recruitment, Selection, and Appointment

100% 100% M07/07/2010


167

HR Policies and Plans No. Name of Policy Completed

(%) Reviewed

(%) Date Adopted by Council or Comment on Failure to

Do so 25 Remuneration, Scales, and

Allowances 100% MCA M05/08/2012

26 Resettlement 100% M07/07/2010 27 Sexual Harassment 100% M64/08/2006 28 Skills Development 100% ACT 97 OF 1998 29 Smoking Policy 100% S31/09/2001 30 Special Skills 100% M22/11/2006 31 Work Organization 100% C34/09/2012 32 Uniforms & Protective Clothing 100% 22 APRIL 2010 33 Other Policies/Procedures 33.1 Absence from Work without

Leave (Only procedures) 100% 2004/05/05

33.2 Accident and Incident Reporting Procedure

100% M04/11/2012

33.3 Acting Allowance Policy (Only draft)

100% Condition of Services C63/11/2013

33.4 Bereavement Policy 100% M19/11/2011 33.5 Bursary By-laws 100% C23/03/2011 33.6 Cellphones 100% M03/10/2004

M07/12/2010 M25/12/2012

33.7 Clocking Systems Policy 33.8 Conditions of Service 100% C63/11/2013 33.9 Education, Training, and


33.10 Fraud Prevention Policy 100% 29/08/2012 17/03/2011

33.11 Performance Appraisal 100% M08/08/2010 33.12 Private Work Policy 100% 2012/11/19 Section 4 of

Code of Conduct for Municipal Staff. Schedule 2 Municipal Systems Act

33.13 Retention & Succession 100% M08/08/2010 08/07/2010

COMMENT ON WORKFORCE POLICY DEVELOPMENT

Workplace policies are developed and reviewed as and when necessary in consultation with labour as prescribed by the relevant pieces of labour legislation and signed collective agreements.

T 4.2.1.1


168

4.3. INJURIES, SICKNESS, AND SUSPENSIONS

Number and Cost of Injury on Duty 2015/2016

Type of Injury

Injury Leave Taken (Days)

Employees Using Injury Leave (Number)

Proportion Employees Using Sick Leave (%)

Average Injury Leave per Employee (Days)

Total Estimated Cost

Required basic medical attention only 30 2 0.14% 15 R12 610Temporary total disablement 164 3 0.22% 55 R156 134

Permanent disablement - - 0 - -

Fatal - - 0 - -

Total 194 5 0.36% 70 R168 744

Number of Days and Cost of Sick Leave (Excluding Injury on Duty) 2015/2016

Salary Band

Total Sick Leave (Days)

Proportion of Sick Leave without Medical Certification (%)

Employees Using Sick Leave (Number)

Total Employees in Post (Number)

Average Sick Leave per Employee (Number)

Estimated cost

Lower Skilled (Level 14-20) 2 982 8.3% 305 696 3 Skilled (Level 11-13) 1 913 6.58% 178 244 2.7 Highly Skilled Production (Level 8-10) 1 801 11.4% 186 263 2.6 Highly Skilled Supervision (Level 4-7) 6 14 14.5% 84 122 2.3 Senior Management (Level 1-3) 1 64 18% 25 44 2.5

MM and S57 3

Total 7 310 58.78% 778 1 372 2.62


169

T 4.3.3

COMMENT ON INJURY AND SICK LEAVE

Special sick leave is taken in the case of injury on duty. An Occupational Health and Safety (OHS) Policy is in place and displayed at all workplaces. All departments are required to follow this policy. Regular OHS inspections and safety audits are carried out during the year to identify any new health and safety risks. Departments were advised in terms of handling OHS matters. Training was done on a regular basis (e.g. first aid and safety representative).

Accidents and injuries on duty were investigated in terms of relevant legislation. Sick leave was monitored by HODs, and proper record was kept of all leave and sick leave taken. Where necessary, officials may be sent to medical practitioners appointed by Council for second opinions in cases of extended sick leave.

T 4.3.4

Number and Period of Suspensions Position Nature of

Alleged Misconduct

Date of Suspension

Details of Disciplinary Action Taken or Status of Case and Reasons Why not Finalised

Date Finalised

Personal Assistant N/A N/A N/A N/A

Personal Assistant N/A N/A N/A N/A

Secretary to the Mayor Dishonesty 07/11/2013 19/02/2016 Speakers’ Secretary Insubordination 01/11/2014 Case will not continue, since the

employee’s term of contract has ended

T 4.3.6

0.150.26

0.88

0.04

1.48

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 skilledproduction (levels

6-8)

Highly skilledsupervision(levels 9-12)

Seniormanagement(Levels 13-15)

Average Sick Leave per Employee


170

4.4. PERFORMANCE REWARDS

Performance Rewards By Gender

Designations Beneficiary profile

Gender Total Number of Employees

in Group

Number of Beneficiaries

Expenditure on Rewards –

Year 1

Proportion of Beneficiaries within Group

R’ 000 %

Lower Skilled (Level 1-2) Female 20 9 45%

Male 30 12

Total 50 21

Has the statutory municipal calculator been used as part of the evaluation process? Yes/No

T 4.4.1

COMMENT ON PERFORMANCE REWARDS

Performance management system is applied to Municipal Manager and Section 57 executive directors who report to the Municipal Manager. Assessments were done and bonuses paid to all managers who were assessed.

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT

The municipality affords employees an opportunity to study by providing bursaries. Annually, a skills gap analysis is conducted, Workplace Skills Plan developed, and training provided in terms thereof. Employees are also continuously sent to workshops and seminars to improve their capacity.

T 4.5.0


171

4.5. SKILLS DEVELOPMENT AND TRAINING

Skills Matrix Management Level

Gender Employees in Post as at 30 June 2016

Number of Skills Employees Required and Actual as at 30 June 2016 Learnerships

Skills Programmes and Other

Short Courses Other Forms of Training Total

Number

Actual:End of

2014/2015

Actual:End of

2015/2016

2015/2016Target

Actual:End of

2014/2015

Actual:End of

2015/2016

2015/2016Target

Actual:End of

2014/2015

Actual:End of

2015/2016

2015/2016Target

Actual:End of

2014/2015

Actual:End of

2015/2016

2015/2016 Target

MM and S57 Female 2 0 0 0 0 0 0 0 0 0 0 0 0

Male 1 0 0 0 1 1 0 0 0 0 1 0

Councillors, senior officials, and managers

Female 39 2 0 0 3 2 2 3 8 2 3 11 4 Male 62 4 0 0 2 3 4 8 4 0 10 7

Technicians and associate professionals*

Female 11 0 0 0 0 0 0 2 1 2 0 1 2

Male 49 0 0 0 0 0 0 4 5 5 0 5 5

Professions Female 24 0 0 0 4 6 4 0 0 2 4 6 6 Male 32 0 0 0 3 1 0 0 4 3 5

Subtotal Female 66 0 0 0 7 8 6 6 9 6 7 18 12

Male 107 0 0 0 4 3 4 8 13 13 4 15 17 Total 173 6 0 0 11 11 10 13 22 19 11 33 29

*Registered with professional associate body, e.g. CA(SA)


172

Financial Competency Development: Progress Report* Description A.

Total Number of Officials Employed by Municipality (Regulation 14(4)(a) and (c))

B. Total Number of Officials Employed by Municipal Entities (Regulation 1494)(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 With Performance C Agreements Who Comply with Regulation 16 (Regulation 14(4)(f))

Consolidated:Total Number of Officials That Meet Prescribed Competency Levels (Regulation 14(4)(e))

Financial Officials

79 N/A 79

Accounting Officer

1 N/A 1 0 1 1

Chief Financial Officer

1 N/A 1 0 1 1

Senior Managers

3 N/A 3 0 0 2

Any Other Financial Officials

12 N/A 12 0 0 8

Supply Chain Management Officials

15 N/A 15

Head of Supply Chain Units

1 N/A 1 0 1

Supply Chain Management – Senior Managers

3 N/A 3 0 0 3

Total 115 115 0 2 16


173

Skills Development Expenditure

Management Level

Gender

Employees as at the

Beginning of the

Financial Year

Original Budget and Actual Expenditure on Skills Development – Year 1

Learnerships

Skills Programmesand Other Short

Courses

Other Forms of Training

Total

Number Original

Budget




Actual

MM and S57 Female 2

Male 1 Legislators, senior officials, and managers

Female 39

Male 62 R28 500

Professionals Female 24

R119 200 R 12 539

Male 32 Technicians and associate professionals

Female 11

Male 49 Clerks

Female 171 R41 395 R251 920

Male 32 R12 780 Service and sales workers Female 54 R29 240

Male 97 R95 724 Plant and machine operators and assemblers

Female 12

Male 87 Elementary occupations Female 240 R8 176 R84 744

Male 540 R24 528 R22 302

Subtotal Female

Male

Total

COMMENTS ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND THE FINANCIAL COMPETENCY REGULATIONS

Employees are trained as per the Workplace Skills Plan adopted by the employer in consultation with labour. However, financial constraints continuously prevent the full implementation of all the skills development needs. A concerted effort is made to ensure that all the relevant employees are trained to be compliant with the MFMA Competency Regulations.

T 4.5.4


174

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE

INTRODUCTION TO WORKFORCE EXPENDITURE

All the expenditure incurred should be in line with the approved budget. When the staff establishment is approved, provision is made in the budget for all the posts which can be filled and the time frames in respect thereof. No unfunded posts may be filled. The municipality ensures that it recruits employees that are capable of effectively rendering the service towards achieving its strategic goals.

T 4.6.0

4.6. EMPLOYEE EXPENDITURE

Source: MBRR SA22 T 4.6.1

COMMENT ON WORKFORCE EXPENDITURE

SDBIPs were developed and implemented for the operational as well as the capital budgets. STLM recruited and appointed qualified, experienced, and skilled employees. We also provided continuous training in terms of the Workplace Skills Plan and the bursary scheme.

T 4.6.1.1

19,000

20,000

21,000

22,000

23,000

24,000

25,000

26,000

Year -3 Year -2 Year -1 Year 0

Workforce Expenditure Trends (R' 000)


175

Number of Employees Whose Salaries Were Increased Due to Their Positions Being Upgraded

Beneficiaries Gender Total Lower Skilled (Level 1-2) Female According to the 2015/2016 budget – None

Male According to the 2015/2016 budget – None

Skilled (Level 3-5) Female According to the 2015/2016 budget – None


Highly Skilled Production (Level 6-8)

Female According to the 2015/2016 budget – None


Highly Skilled Supervision (Level 9-12)

Female According to the 2015/2016 budget – None


Senior Management (Level 13-16) Female According to the 2015/2016 budget – None


MM and S57 Female According to the 2015/2016 budget – None


Total 0 T 4.6.2

Employees Whose Salary Levels Exceed The Grade Determined By Job Evaluation

Occupation Number of Employees

Job Evaluation Level

Remuneration Level

Reason for Deviation

None None None None None





T 4.6.3

Employees Appointed to Posts Not Approved

Department Level Date of

Appointment Number

Appointed

Reason for Appointment When No Established Post Exists






T 4.6.4


176

COMMENT ON UPGRADED POSTS AND THOSE THAT ARE AT VARIANCE WITH NORMAL PRACTICE

1. In terms of the policy of Council, no occupied post can be upgraded;

therefore, no employees had their salaries increased due to the positions

being upgraded.

2. The job evaluation process has not been completed yet, and employees

are paid in terms of the Industrial Council determination. As soon as the job

evaluation process has been finalised, the results thereof will be considered

for finalisation.

3. No employees are appointed to posts not approved, and no employees are

appointed to unfunded positions.

T 4.6.5

DISCLOSURES OF FINANCIAL INTERESTS

Refer to disclosures made by officials and councillors concerning their financial interests as required by PM Regulations 805 of 2006 as set out in Appendix J. Make other comments where appropriate.

T 4.6.6

Chapter 5 – Financial Performance ANNUAL REPORT – 2015/2016

177

CHAPTER 5 – FINANCIAL PERFORMANCE

INTRODUCTION

This chapter contains information regarding financial performance and highlights specific accomplishments.

The chapter comprises three components:

Component A: Statement of Financial Performance

Component B: Spending against Capital Budget

Component C: Cash Flow Management and Investment

Component D: Other Financial Matters

The overall operating results achieved for the past financial year closed off with a surplus of R160.6 million compared to a budgeted surplus of R69.4 million. Operating revenue for the year is R1 420.1 billion (2015: R1 368.4 billion), which reflects an increase of 4%. The operating expenditure for the year is R1 259.6 million (2014: R1 262.9 million), which reveals a decrease of 0.27%.

The total capital expenditure capitalized for the year in respect of property, plant, and equipment amounted to R274.4 million. This includes R58 million from government grants, R22 million from public contributions and donations, and R155.4 million from own cash resources.

Cash and short-term investments increased by 18% to R485 million (2015: R410 million). The cash balance at financial year end was R80.5 million.


178

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE

INTRODUCTION TO FINANCIAL PERFORMANCE

Note: Statements of Revenue Collection Performance by vote and by source are included in Appendix G.

Operating revenue excluding capital grants and subsidies for the year is R1 301.1 million (2015: R1 255.8 million), which shows an increase of 3.6%. Included in the above figure are operating government grants to the amount of R125.4 million, which constitute 9.6% of total revenue.

Service charges jointly comprise 51% of total revenue and increased by R39.2 million from 2015 (R689.5 million) to R728.6 million in the reporting financial year, which is R44.4 million less than the adjusted budget (R773.2 million). Electricity remains the largest source of income and contributes 39% to municipal revenue.

Property rates constitute 24% of revenue and increased by 9% from the previous financial year.

Interest received has increased slightly from R24.3 million to R39.8 million, which can mainly be attributed to the interest rate increase during the year.

Revenue from fines decreased by R3.1 million, while the remaining revenue sources are R77.5 million less than the adjusted budget. This is mainly for the sale of land and additional main service contributions received.

The operating expenditure for the year is R1 259.6 million (2015: R1 262.9 million), which indicates a decrease of 0.27% from the previous financial year. The main expenditures are employee-related costs at R363.3 million, transfers and grants at R71.4 million, bulk purchases at R379.6 million, and depreciation at R164.7 million.

Repairs and maintenance increased by 20% to R65.2 million (2014: R54.4 million) and comprises 5.18% of total operating expenditure. Grant and subsidies paid increased by 11.9% from R63.8 million to R71.4 million as a result of additional free basic services which were provided to indigent households.

Capital expenditure for the year amount to R274.4 million. This includes capital grants of R58 million donated; property, plant, and equipment (PPE) to the amount of R22 million; and internally generated funds of R155.4 million.


179

5.1. STATEMENTS OF FINANCIAL PERFORMANCE

Reconciliation of Table A1 Budget Summary

2015/2016 2014/2015

Description

Original Budget Budget Adjustments (i.t.o. s28 and

s31 of the MFMA)

Final adjustments

budget

Final Budget Actual Outcome

Variance Actual Outcome as a % of

Final Budget

Actual Outcome as a % of Original Budget

Restated Audited Outcome

1 2 3 4 5 6 7 8 9

Financial Performance

Property rates R301 305 502 R4 000 000 R305 305 502 R305 305 502 R308 610 464 R3 304 962 101% 102% R 282 793 098 Service charges R766 788 972 R6 389 788 R773 178 760 R773 178 760 R728 751 089 -R44 427 671 94% 95% R 689 564 771 Investment revenue R21 381 260 R1 000 000 R22 381 260 R22 381 260 R39 770 333 R17 389 073 178% 186% R 24 304 500 Transfers recognised – operational R126 295 300 R100 000 R126 395 300 R126 395 300 R125 385 666 -R1 009 634 99% 99% R 115 805 992 Other own revenue R147 159 773 R25 913 402 R173 073 175 R173 073 175 R98 609 545 -R74 463 630 57% 67% R 143 365 508

Total Revenue (excluding capital transfers and contributions)

R1 362 930 807 R37 403 190 R1 400 333 997 R1 400 333 997 R1 301 127 097 -R99 206 900 93% 95% R1 255 833 868

Employee costs R385 662 127 -R5 256 400 R380 405 727 R380 405 727 R363 305 145 -R17 100 582 96% 94% R 330 847 421 Remuneration of councillors R19 698 455 -R100 000 R19 598 455 R19 598 455 R19 089 604 -R508 851 97% 97% R 17 893 744 Debt impairment R17 323 239 -R 633 185 R16 690 054 R16 690 054 R8 293 281 -R8 396 773 50% 48% R 2 060 164 Depreciation

& asset impairment R157 228 228 R9 200 000 R166 428 228 R166 428 228 R164 684 230 -R1 743 998 99% 105% R 169 615 777 Finance charges R30 890 224 -R3 366 262 R27 523 962 R27 523 962 R8 391 097 -R19 132 865 30% 27% R 9 718 817

Materials and R380 168 395 R4 837 687 R385 006 082 R385 006 082 R379 618 097 -R5 387 985 99% 100% R 326 861 936


180

2015/2016 2014/2015

Description


s31 of the MFMA)

Final adjustments

budget



Final Budget



1 2 3 4 5 6 7 8 9

bulk purchases Transfers and Grants R67 662 998 R3 669 578 R71 332 576 R71 332 576 R71 439 309 R106 733 100% 106% R63 791 396 Other expenditure R344 191 436 R27 592 309 R371 783 745 R371 783 745 R244 755 183 -R127 028 562 66% 71% R342 147 691

Total Expenditure R1 402 825 102 R35 943 727 R 1 438 768 829 R1 438 768 829 R1 259 575 947 -R179 192 882 88% 90% R1 262 936 948 Surplus/(Deficit) -R39 894 295 R1 459 463 -R38 434 832 -R38 434 832 R41 551 150 R79 985 982 -108% -104% -R7 103 080

Transfers recognised – capital R62 170 240 R5 257 070 R67 427 310 R67 427 310 R58 046 226 -R9 381 084 86% 93% R58 991 232 Contributions recognised – capital & contributed assets R49 842 093 -R9 454 775 R40 387 318 R40 387 318 R60 973 026 R20 585 708 151% 122% R53 527 529

Surplus/ (Deficit) after capital transfers & contributions

R72 118 038 -R 2 738 242 R69 379 796 R69 379 796 R160 570 402 R91 190 606 231% 223% R105 415 681

Surplus/ (Deficit) for the year R72 118 038 -R2 738 242 R69 379 796 R69 379 796 R160 570 402 R91 190 606 231% 223% R105 415 681

Capital expenditure & funds sources Capital expenditure

Transfers recognised – capital R62 170 240 R47 782 322 R109 952 562 R109 952 562 R97 021 252 -R12 931 310 88% 156% R58 690 533


181

2015/2016 2014/2015

Description


s31 of the MFMA)

Final adjustments

budget



Final Budget



1 2 3 4 5 6 7 8 9

Public contributions

& donations - - - - R21 998 000 R21 998 000 R53 337 029

Borrowing R97 976 000 R26 731 786 R124 707 786 R124 707 786 -R124 707 786 0% 0% R85 236 752 internally generated funds R76 222 520 R12 995 088 R89 217 608 R89 217 608 R155 413 990 R66 196 382 174% 204% R68 900 618

Total sources of capital funds R236 368 760 R87 509 196 R323 877 956 R323 877 956 R274 433 242 -R49 444 714 85% 116% R266 164 932

Cash flows Net cash from (used) operating R317 619 010 -R 147 735 133 R169 883 877 R169 883 877 R362 131 181 R192 247 304 213% 114% R297 941 945 Net cash from (used) Investing -R391 249 180 R97 814 703 -R293 434 477 -R293 434 477 -R325 851 843 -R32 417 366 111% 83% -R261 521 927 Net cash from (used) financing R68 532 409 R46 039 771 R114 572 180 R114 572 180 -R11 064 328 -R125 636 508 -10% -16% -R11 460 936

Cash/cash equivalents at the year end R42 761 647 R16 586 157 R59 347 804 R59 347 804 R107 569 776 R48 221 971 181% 252% R82 354 766

T 5.1.1


182

Financial Performance of Operational Services

Description

2014/2015 2015/2016 2015/201

6 Variance

Actual (R)

Original Budget

(R)

Adjustments Budget

(R)

Actual (R)

Original Budget

(R)

Adjustments Budget (R)

Operating Cost

Water 75 196 290 95 670 761 99 209 724 73 878 887 22.78% 25.53%

Waste Water (Sanitation) 68 404 845 88 598 540 89 577 188 68 634 607

22.53% 23.38%

Electricity 406 688 427 485 407 517 487 054 767 464 500 011 4.31% 4.63%

Waste Management 91 890 087 92 872 547 93 747 265 92 683 483 0.20% 1.13%

Housing 41 579 648 13 028 278 12 891 172 10 339 629 20.64% 19.79%

Component A: subtotal 683 759 297 775 577 643 782 480 116 710 036 617 8.45% 9.26%

Waste Water (Storm Water Drainage) - - - -

0 0

Roads 88 607 543 103 723 521 100 693 416 89 650 881 13.57% 10.97%

Transport 2 066 605 2 424 964 2 353 625 2 100 829 13.37% 10.74%

Component B: subtotal 90 674 148 106 148 485 103 047 041 91 751 710

13.56% 10.96%

Planning 9 248 611 13 936 811 13 442 785 8 983 940 35.54% 33.17%

Local Economic Development 3 773 417 4 804 276 4 857 709 3 773 078

21.46% 22.33%

Component B: subtotal 13 022 028 18 741 087 18 300 494 12 757 018

31.93% 30.29%

Planning (Strategic & Regulatory) - - - -

0 0

Local Economic Development - - - -

0 0

Component C: subtotal - - - -

0 0

Community & Social Services 161 444 455 134 278 192 182 471 075 114 740 695

14.55% 37.12%

Environmental Protection - - - -

0 0

Health 5 815 338 4 686 437 5 192 415 4 997 486 -6.64% 3.75%

Security and Safety 84 758 370 99 117 927 95 397 899 81 070 712 18.21% 15.02%

Sport and Recreation 55 305 661 64 295 718 62 573 375 56 794 955 11.67% 9.23%

Corporate Policy Offices and Other 168 157 650 199 984 613 189 306 414 187 426 753

6.28% 0.99%

Component D: subtotal 475 481 475 502 362 887 534 941 178 445 030 601

11.41% 16.81%

Total Expenditure 1 262 936 948 1 402 830 102 1 438 768 829 1 259 575 947 10.21% 12.45%

In this table operational expenditure total for each service as shown in the individual net service expenditure tables in chapter 3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual.

T 5.1.2


183

COMMENT ON FINANCIAL PERFORMANCE

Total expenditure incurred was 10% less than the budgeted expenditure.

T5.1.3

5.2. GRANTS

Grant Performance

Description

2014/2015 2015/2016 2015/2016 Variance Actual Budget Adjustments

Budget Actual Original

Budget (%)

Adjustments Budget

(%)

Operating Transfers and Grants

National Government: R107 909 615 R124 441

760 R124 541 760 R124 193

032 0.20% 0.28%

Equitable share R103 556 000 R119 935

000 R120 035 000 R119 935

000 0% 0.08%

Municipal Systems Improvement R88 534 - - -

0 0

Department of Water

Affairs - - - -

Levy replacement - - - -

Other transfers/grants [insert description]

MIG R1 858 931 R1 923 760 R1 923 760 R1 777 490 7.60% 7.60%

EPWP R806 150 R983 000 R983 000 R955 803 2.77% 2.77%

FMG R1 600 000 R1 600 000 R1 600 000 R1 524 739 4.70% 4.70%

Provincial Government: R7 896 377 R913 540 R913 540 R252 634 72.35% 72.35%

Health subsidy - - - - 0 0

Housing R7 896 377 R913 540 R913 540 R252 634 72.35% 72.35%

Ambulance subsidy

Sports and Recreation

Other transfers/grants

Total Operating Transfers and Grants

R115 805 992 R125 355

300 R125 455 300

R124 445 666 0.73% 0.80%

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


184

COMMENT ON OPERATING TRANSFERS AND GRANTS

The equitable share is an unconditional grant, and the full gazetted amount of R119.9 million was received.

An amount R940 000 of the Municipal System Information Grant was appropriated on the budget for operating activities and was spent on an ICT Master Systems Plan.

The Finance Management Grant was utilised for the intern programme and for consultants to assist with the implementation of the new GRAP standards and compilation of an asset register. An amount of R1 524 743 was spent for the period.

The EPWP incentive grant is utilised for job creation projects. During the year, R955 803 was spent to employ temporary workers for street cleaning and cleaning of overgrown main streets. Moreover, R599 006 was spent for paving and kerbs in low-income areas.

The INEP grant is utilised to construct basic municipal infrastructure to provide basic services for the benefit of poor households.

An amount of R15.4 million was received, and R12 million was spent by 30 June 2016; the remainder was rolled over to the following financial year.

Grants Received From Sources Other Than Division of Revenue Act (DoRA) Details of Donor

Actual Grant

Actual Grant

2015/2016 Date Grant Terminates

Date Municipal

Contribution Terminates

Nature and Benefit from

the Grant Received Includes

Description of Any

Contributions in Kind

2014/2015 2015/2016 Municipal Contribution

Parastatals Foreign Governments/Development Aid Agencies Private Sector/Organisations Donations – Human Settlement R5 500 000

Transfer Station at Dennesig and Ext 49

Developers’ Donations R798 000

Land donated by developers

Donations

R15 700 000

Land donated by Department of Human Settlements

Provide a comprehensive response to this schedule T 5.2.3


185

COMMENT ON GRANT PERFORMANCE

Ninety-six per cent (96%) of the 2015/2016 MIG allocation was spent by 30 June 2016. There were no roll-over funds for the 2015/2016 financial year.

5.3. ASSET MANAGEMENT

INTRODUCTION TO ASSET MANAGEMENT

Overview of Asset Management

The Asset Management Policy is developed to comply with all relevant legislative requirements and complies with the standards specified by the Accounting Standards Board. Asset management within the municipality is overseen by the Executive Director: Financial Services.

Financial Asset Register

The CFO established and maintained an asset register containing key financial data on each item of property, plant, or equipment that satisfies the criterion for recognition.

Organizing Asset Management, Staff Involved, and Delegations

The CFO is responsible to the Municipal Manager and needs to ensure that the financial investment in the municipality’s assets is safeguarded and maintained.

The Asset Manager must ensure that appropriate physical management and control systems are established and maintained for all assets in their area of responsibility and that the municipal resources assigned to them are utilized effectively, efficiently, economically, and transparently.

The Asset Champion must assist the Asset Manager in performing his/her functions and duties in terms of asset management.


186

TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED 2015/2016

Asset 1

Name Boskrans Waste Treatment Plant

Description Upgrade Boskrans Waste Treatment Plant

Asset Type Infrastructure Sewerage Purification

Key Staff Involved Municipal Manager, Executive Director Infrastructure Services, Civil Engineer

Staff Responsibilities Oversee implementation of project and account for transaction

Asset Value

2012/2013 2013/2014 2014/2015 2015/2016

R19 234 711 R10 785 164 R11 353 456 R13 553 312

Capital Implications The asset was financed from own internal funds

Future Purpose of Asset Purification of sewerage

Describe Key Issues Construction work and management of tender Policies in Place to Manage Asset Yes

Asset 2

Name Road and Storm water

Description Construction of roads and storm water in low-income areas

Asset Type Roads Infrastructure

Key Staff Involved Executive Director: Infrastructure Services, PMU, Assistant Director: Roads & Storm Water

Staff Responsibilities Prepare and evaluate tender document, and monitor implementation of project

Asset Value

2012/2013 2013/2014 2014/2015 2015/2016

R23 031 982 R10 654 756 R31 288 918 R13 037 486

Capital Implications Project was funded from the Municipal Infrastructure Grant

Future Purpose of Asset Roads infrastructure in Kwazamokhule, Mhluzi, Tokologo, and Rural areas

Describe Key Issues Finalisation of tender process and weather conditions Policies in Place to Manage Asset Yes


187

TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED 2015/2016 Asset 3

Name Nasaret

Description New substation

Asset Type Electricity Infrastructure

Key Staff Involved Executive Director: Infrastructure Services, PMU, Director: Electrical, Acting Assistant Director: Planning & Bulk Connection

Staff Responsibilities Prepare and evaluate tender document, and monitor implementation of project

Asset Value

2012/2013 2013/2014 2014/2015 2015/2016

R13 329 053

Capital Implications Funded from MIG

Future Purpose of Asset To provide services to residents in Newtown

Describe Key Issues Implementation of project by Rand Water and time constraints to complete services Policies in Place to Manage Asset Yes

T 5.3.2


188

COMMENT ON ASSET MANAGEMENT

With reference to the three projects approved in the year, these projects were evaluated from a cost and revenue perspective, including municipal tax and tariff implications in accordance with Section 19(2)(a) and (b) and MSA Section 74(2)(d), (e) and (i).

The responsible implementing departments ensure that project files are maintained, and these files are readily accessible for audit inspection. Financial data regarding asset management may be sourced from MBRR Table A9.

T 5.3.3

Repairs and Maintenance Expenditure: 2015/2016

Original Budget

Adjustment Budget

Actual Budget

variance

Repairs and Maintenance Expenditure R74 127 890 R77 498

003 R65 224 669 12%

T 5.3.4

COMMENT ON REPAIRS AND MAINTENANCE EXPENDITURE

The aging infrastructure of the municipality in actual fact requires that larger amounts be made available for the maintenance and replacement of especially water pipes in the Mhluzi area. 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 intention is to substantially increase maintenance expenditure in future budgets. The amount spent on repairs and maintenance is for materials only and decline proportionate to the budget considering the increases in other expenditures.

T 5.3.4.1


189

5.4. FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS

1.9

1.8 1.8

2.1

1.5

1.6

1.7

1.8

1.9

2.0

2.1

2.2

2012/13 2013/14 2014/15 Current Year 2015/16

Liquidity Ratio

Liquidity Ratio – This ratio measures the extent to which the municipality has cash and short-term investments available to settle short-term liabilities. If the cash and short-term investmentsdo not exceed current liabilities, it means liquidity problems, i.e. insufficient cash to meet financialobligations. The higher the ratio, the better.

0.9

1.2

1.3

0.7

–

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2012/13 2013/14 2014/15 Current Year 2015/16

Cost Coverage

Cost Coverage – It explains how many months expenditure can be covered by the cash andother liquid assets available to the municipality, excluding utilisation of grants. The norm isbetween 1 to 3 months. (Data used from MBRR SA8)


190

8.4% 8.2%

9.9%

6.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2012/13 2013/14 2014/15 Current Year 2015/16

Total Outstanding Service Debtors To Revenue

Total Outstanding Service Debtors To Revenue – It is calculated by dividing the total outstandingdebtors by the total annual revenue. A lower score is better. The ratio focuses on the proportionof amounts that are deemed to be recoverable as a percentage of annual billed revenue. Ittherefore only takes into account the major revenue sources that give rise to consumer debtors,excluding bad debts provisions and also indicates the effectiveness of credit control proceduresand enables assessment of the sufficiency of the provision for bad debts. The norm is 8.3%,which equates to the same as 30 days’ worth of outstanding debtors.


191

25.5

30.8 28.4 28.9

–

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2012/13 2013/14 2014/15 Current Year 2015/16

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 bythe municipality. (Data used from MBRR SA8)


192

2.4%

2.0%1.8%

3.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2012/13 2013/14 2014/15 Current Year 2015/16

Capital Charges to Operating Expenditure

Capital Charges to Operating Expenditure Ratio – This is calculated by dividing the sum of capitalinterest and principle paid by the total operating expenditure. The ratio indicates the cost requiredto service external interest on borrowings and redemption. It assesses the affordability of debtexpressed as a percentage of operating expenditure. The lower the ratio, the more the capacity ofthe municipality in taking up additional funding to invest in infrastructure projects. The norm is 6%.


193

28.8%

25.7%

26.3%

27.2%

24.0%

24.5%

25.0%

25.5%

26.0%

26.5%

27.0%

27.5%

28.0%

28.5%

29.0%

2012/13 2013/14 2014/15 Current Year 2015/16

Employee Costs

Employee Costs – This measures what portion of the revenue was spent on paying employeecosts. It is calculated by dividing the total employee cost by the difference between total revenueand capital revenue.


194

COMMENT ON FINANCIAL RATIOS

The liquidity ratio measures the extent to which the municipality has cash and short term investments available to settle short-term liabilities. The ratio has increased, meaning the municipality is able to settle its short-term liabilities with cash and short-term investments.

The cost coverage ratio indicates the time taken to pay for expenditure incurred; this has decreased. It thus indicates that we can pay creditors faster.

Total outstanding service debtors to revenue has decreased. This reveals that more accounts are recoverable in proportion to billed revenue.

Debt coverage ratio indicates the ease with which debt payments can be honoured. The municipality has a healthy debt coverage ratio.

Repairs and maintenance has increased. This highlights that more spending is being incurred on repairs and maintenance.

These ratios are derived from table SA8 of the MBRR.

T 5.4.9

5.1%

4.1% 4.3%

5.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2012/13 2013/14 2014/15 Current Year 2015/16

Repairs & Maintenance

Repairs and Maintenance – This represents the propotion of operating expenditure spent and iscalculated by dividing the total repairs and maintenace. (Data used from MBRR SA8)


195

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET

COMMENTS ON SPENDING AGAINST CAPITAL BUDGET AND SOURCES OF FUNDING

Capital expenditure relates mainly to the construction of assets that will have value, lasting over many years. Capital expenditure is funded from grants, borrowings, and operating expenditures and surpluses.

During the financial year under review, capital expenditure amount to R274.4 million. The capital expenditure for the year has increased by 3% when compared to the previous year expenditure. From the 284 projects, 242 projects were completed, and 42 projects to the value of R57.4 million have been rolled over to the 2016/2017 financial year.

The capital expenditure realised on roads and storm water amounts of R59.5 million, water and sanitation amount to R84.5 million, electricity amounts to R52.4 million, and other capital expenditure amounts to R77.9 million. Capital on core infrastructure services constitutes 72% of total capital expenditure.

The capital budget was funded by internal cash reserves to the amount of R155.4 million. National and provincial government grants amount to R58 million, and public contributions amount to R28 million.

5.5. CAPITAL EXPENDITURE

18.37%

81.63%

-

200 000 000

400 000 000

600 000 000

800 000 000

1 000 000 000

1 200 000 000

1 400 000 000

1 600 000 000

R m

illio

n

Total Expenditure: 2015/2016

Capital Expenditure

Operating Expenditure


196

5.6. SOURCES OF FINANCE

Capital Expenditure – Funding Sources

Details


Budget (OB) Adjustment

Budget Actual Adjustment

to OB Variance

(%)

Actual to OB

Variance (%)

Source of Finance

External loans R85 236 752 R97 976 000 R124 707

786 R86 449 612 27.28% -11.76% Public contributions and donations R53 337 029 - - R21 998 000 0.00% 0.00% Grants and subsidies R58 690 533 R62 170 240 R67 427 310 R58 046 226 8.46% -6.63%

District Municipality - - R42 525 252 R38 975 026 0.00% 0.00% Internal Funds (Own Revenue) R68 900 618

R 76 222 520 R89 217 608 R68 964 378 17.05% -9.52%

Total R266 164

932 R236 368

760 R323 877

956 R274 433

242 52.79% -27.92% Percentage of finance

External loans 32.0% 41.5% 38.5% 31.5% -7.1% -24.0% Public contributions and donations 20.0% 0.0% 0.0% 8.0% 0.0% 0.0% Grants and subsidies 22.1% 26.3% 20.8% 21.2% -20.8% -19.6%

District Municipality 0.0% 0.0% 13.1% 14.2% 0.0% 0.0% Internal Funds (Own Revenue) 25.9% 32.2% 27.5% 25.1% -14.6% -22.1% Capital expenditure Water and sanitation R69 072 975 R65 454 496

R120 445 848 R84 566 184 84.01% 29.20%

Electricity R48 477 623 R56 936 000 R62 924 614 R48 477 603 10.52% -14.86%

Housing R518 546 R500 000 R520 000 R518 546 4.00% 3.71% Roads and storm water R54 809 322 R52 310 000 R64 579 389 R59 509 809 23.46% 13.76%

Other R93 286 466 R61 168 264 R75 408 105 R81 361 100 23.28% 33.01%

Total R266 164

932 R236 368

760 R323 877

956 R274 433

242 145.27% 64.83% Percentage of expenditure Water and sanitation 26.0% 27.7% 37.2% 30.8% 34.3% 11.3%

Electricity 18.2% 24.1% 19.4% 17.7% -19.3% -26.7%

Housing 0.2% 0.2% 0.2% 0.2% -24.1% -10.7% Roads and storm water 20.6% 22.1% 19.9% 21.7% -9.9% -2.0%

Other 35.0% 25.9% 23.3% 29.6% -10.0% 14.6%

T 5.6.1


197

External loans32%

Public contributions and

donations8%

Grants and subsidies

21%

District Municpality

14%

Internal Funds (Own Revenue)

25%

Percentage of Finance

Water and sanitation

31%

Electricity18%

Housing0%

Roads and storm water22%

Other29%

Percentage of Capital Expenditure


198

COMMENT ON SOURCES OF FUNDING

The actual funding on external loans was less than the budget funding due to delays in some projects.

T 5.6.1.1

R -

R 20 000 000

R 40 000 000

R 60 000 000

R 80 000 000

R 100 000 000

R 120 000 000

R 140 000 000

Actual Original Budget(OB)

AdjustmentBudget

Actual

2014/2015 2015/2016

Source of Finance and Capital Expenditure

External loans Public contributions and donations


199

5.7. CAPITAL SPENDING ON FIVE LARGEST PROJECTS

Capital Expenditure of Five Largest Projects*

Name of Project Current: 2015/2016

Variance: Current

2015/2016

Original Budget

Adjustment Budget

Actual Expenditure

Original Variance (%)

Adjustment variance (%)

ROADS GENERAL – SLIPWAYS RIGHT TURN & INTERSECTION R6 500 000 R9 313 455 R9 313 372 -43% 0%

NAZARETH NEW SUBSTATION R9 000 000 R13 920 060 R13 329 053 -48% 4%NEW ROADS & STORM WATER LOW-INCOME AREAS R14 000 000 R14 000 000 R13 037 486 7% 7%ROADS RESEAL – MIDDELBURG/MHLUZI R8 400 000 R8 400 000 R8 391 352 0% 0%

ROCKDALE ELECTRIFICATION R10 060 000 R10 924 570 R9 755 664 3% 12%* Projects with the highest capital expenditure in 2015/2016

Name of Project A Roads General – Slipways Right Turn & Intersection Objective of Project To improve intersection due to increased traffic volumes and to minimise traffic congestion Delays Delays were encountered due to existing service within the working area

Future challenges Roads connecting to the intersection will require expansion or provision of additional lanes (R38, Dr Mandela Drive from Dr Beyers Naude to R555)

Anticipated citizen benefits Safe roads to citizens

Name of Project B Nasaret New Substation Objective of Project Access to electricity to Rockdale residents Delays The hard rock was the challenge during the excavation and trenching Future challenges The unavailability of bulk supply from Eskom Anticipated citizen benefits Rockdale residents Name of Project C New Roads & Storm water Low-income Areas

Objective of Project Construction of roads and storm water (Mhluzi x6, Tokologo, Kwazamokuhle x2, and Kwazamokuhle x6)

Delays None


200

Capital Expenditure of Five Largest Projects*

Name of Project Current: 2015/2016

Variance: Current

2015/2016

Original Budget

Adjustment Budget

Actual Expenditure

Original Variance (%)

Adjustment variance (%)

Future challenges In some sections road servitude is too narrow or pedestrian pavements due encroachment Anticipated citizen benefits Mhluzi x6, Tokologo, Kwazamokuhle x2, and Kwazamokuhle x6 Name of Project D Roads Reseal – Middelburg/Mhluzi

Objective of Project To maintain maximum useful life of the road Delays No delays

Future challenges Inadequate storm water drainage should be addressed to prevent water from damaging the road; increased number of heavy vehicles passing through the CBD

Anticipated citizen benefits Preventative maintenance of these roads, resulting in roads that last longer and a smooth-riding surface

Name of Project E Rockdale Electrification

Objective of Project Access to electricity to Rockdale residents

Delays 1. The hard rock was the challenge during the excavation and trenching 2. The unavailability of top structures (houses)

Future challenges The unavailability of top structures (houses) Anticipated citizen benefits Rockdale residents

T 5.7.1

COMMENT ON CAPITAL PROJECTS

Variance is on the Rockdale electrification. The challenge with this project is the unavailability of houses to carry out the project.

T 5.7.1.1


201

5.8. BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW

INTRODUCTION TO BASIC SERVICE AND INFRASTRUCTURE BACKLOGS

The need and cost of backlogs are the result of migration into the area, as well as the trend of families disaggregating into more than one household. The municipality addresses this challenge by spending as well as on new capital projects on providing new bulk infrastructure.

T 5.8.1

Service Backlogs as at 30 June 2015/2016

Households (HHs)

*Service Level above Minimum Standard **Service Level below Minimum

Standard No. HHs % HHs No. HHs % HHs

Water 73 670 99% 706 1%Sanitation 65 070 88% 8 325 12%Electricity 40 946 55.79% - -%Waste management 60 315 92.8% 4 656 7.7%Housing 71 022 15 692% 81.9% 8.1% T 5.8.2


202

Municipal Infrastructure Grant (MIG)* Expenditure

Details

Budget

Adjustments

Budget

Actual

Variance Major Conditions Applied by Donor (continue below if

necessary)

Budget Adjustments

Budget

Infrastruc-ture – Road transport R14 000 000 R14 000 000 R13 037 486 -7.38% -7.38% Roads, Pavements & Bridges R14 000 000 R14 000 000 R13 037 486 -7.38% -7.38% Infrastruc-ture – Electricity R3 000 000 R3 000 000 R2 783 256 -7.79% -7.79% Street Lighting R3 000 000 R3 000 000 R2 783 256 -7.79% -7.79% Infrastruc-ture - Water R11 449 516 R8 980 536 R8 938 318 -28.09% -0.47%

Reticulation R11 449 516 R8 980 536 R8 938 318 -28.09% -0.47% Infrastruc-ture – Sanitation R5 507 960 R9 203 040 R8 970 165 38.60% -2.60%

Reticulation R5 507 960 R 9 203 040 R8 970 165 38.60% -2.60% Infrastruc-ture – Other R6 712 764 R5 636 664 R5 636 601 -19.09% 0.00% Waste Management R6 712 764 R5 636 664 R5 636 601 -19.09% 0.00% Other Specify: R7 423 760 R7 273 760 R6 823 543 -8.80% -6.60% Sports field & Stadia R2 500 000 R2 500 000 R2 499 985 0.00% 0.00% Community halls R500 000 R350 000 R307 018 -62.86% -14.00%

Cemeteries R2 500 000 R2 500 000 R2 239 050 -11.65% -11.65%

PMU Cost R1 923 760 R1 923 760 R1 777 490 -8.23% -8.23%

Total R48 094 000 R48 094 000 R46 189 369 -4.12% -4.12% *MIG is a government grant programme designed to fund a reduction in service backlogs, mainly, Water; Sanitation; Roads; and Electricity. Expenditure on new, upgraded, and renewed infrastructure is set out in Appendix M; also note the calculation of the variation. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.8.3

COMMENT ON BACKLOGS

The MIG funds have been used to construct new water networks and to provide sanitation for stands, as well as new roads and storm water for low-income areas. T 5.8.4


203

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS

INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS

Proper cash flow management is a critical element to ensure the municipality meets its obligations. A stable positive cash flow balance relative to the growth of the municipality is a good indication of the municipality financial position and health. Cash flow projections are done on a monthly basis, and cash not immediately required are invested for a better return on the short term.


204

5.9. CASH FLOW

Cash Flow Outcomes

Description 2014/2015 2015/2016

Audited Outcome Original Budget Adjusted Budget Actual

CASH FLOW FROM OPERATING ACTIVITIES Receipts

Ratepayers and other R1 038 165 312 R1 091 392 475 R1 079 441 653 R1 236 713 034Government – operating R120 056 667 R189 619 569 R111 668 219 R125 385 666Government – capital R60 188 104 R45 770 680 R52 461 595 R58 046 226Interest R24 526 196 R22 191 409 R23 356 306 R22 193 358

Payments - - - -Suppliers and employees -R876 538 785 -R940 770 745 -R1 004 569 682 -R1 006 696 890Finance charges -R10 938 261 -R28 080 922 -R28 080 922 -R9 718 816Transfers and Grants -R57 517 288 -R62 503 456 -R64 393 292 -R63 791 397

NET CASH FROM/(USED) OPERATING ACTIVITIES R297 941 945 R317 619 010 R169 883 877 R362 131 181

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE R221 765 R150 000 R800 000 R128 571Decrease (increase) in non-current investments -R2 000 000 -R205 000 000 -R30 000 000 -R60 000 000

Payments

Capital assets -R259 743 692 -R186 399 180 -R264 234 477 -R265 980 414NET CASH FROM/(USED) INVESTING ACTIVITIES -R261 521 927 R -391 249 180 R -293 434 477 R -325 851 843

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short-term loans R238 180 - - -Borrowing long term/refinancing - R80 000 000 R126 039 771 -


205

Cash Flow Outcomes

Description 2014/2015 2015/2016

Audited Outcome Original Budget Adjusted Budget Actual

Increase (decrease) in consumer deposits - R5 241 810 R5 241 810 R1 890 403

Payments

Repayment of borrowing -R11 699 116 -R16 709 401 -R16 709 401 -R12 954 731NET CASH FROM/(USED) FINANCING ACTIVITIES -R11 460 936 R68 532 409 R114 572 180 -R11 064 328

NET INCREASE/(DECREASE) IN CASH HELD R24 959 083 -R5 097 761 -R8 978 420 R25 215 010Cash/cash equivalents at the year begin: R57 395 683 R47 859 408 R68 326 224 R82 354 766Cash/cash equivalents at the year-end: R82 354 766 R42 761 647 R59 347 804 R107 569 776

Source: MBRR A7 T 5.9.1

COMMENT ON CASH FLOW

The cash flow from operating activities indicates a positive cash flow of R362.1 million. Further, R325.8 million was utilized on investment activities mainly to purchase property, plant, and equipment to the value of R265.9 million. Investments increased by R75 million from R410 million to R485 million. The cash flow from financing activities indicates an outflow of R11 million, which is mainly attributable to the repayments on borrowings.

Considering the above movements, the net cash position at financial year end is R107.6 million, which indicates an increase of 31%. The net cash position of the municipality has remained stable over the past three years. This is a good indication that the municipality has and will meet its obligations in the future.


206

5.10. BORROWING AND INVESTMENTS

INTRODUCTION TO AND COMMENTS ABOUT BORROWING AND INVESTMENTS

External borrowings are obtained to supplement the municipal capital programme. During the financial year under review, no new external loans were taken up, resulting in borrowings decreasing by R11.7 million.

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. Despite a huge capital outflow funded from internal reserves over the past three years, the municipal investments have remained stable and have steadily increased from R410 million to R485 million. The cash inflow from the sale of serviced land is one of the contributing factors making the net cash position strong.

Actual Borrowings: 2013/2014 to 2015/2016

Instrument 2013/2014 2014/2015 2015/2016 Municipality

Long-Term Loans (annuity/reducing balance) R101 792

261 R88 837

530 R77 100

161

Municipality Total R101 792

261R88 837

530 R77 100

161 T 5.10.2

-

50

100

150

2013/2014 2014/2015 2015/2016

R m

illio

n

Actual Borrowings

Long-Term…


207

Municipal and Entity Investments

Investment* type 2013/2014 2014/2015 2015/2016

Actual Actual Actual

Municipality Securities – National

Government Listed Corporate Bonds

Deposits – Bank R350 000

000 R410 000

000 R485 000

000

Municipality subtotal R350 000

000 R410 000

000 R485 000

000

Consolidated total: R350 000

000 R410 000

000 R485 000

000 T 5.10.4

COMMENT ON BORROWING AND INVESTMENTS

All grants (in cash or in kind) made to any form of organisation has been set out in full in Appendix R.


208

COMPONENT D: OTHER FINANCIAL MATTERS

5.11. SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

The Council has developed an SCM Policy and practices in compliance with the guidelines set out 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 incorporating the above-mentioned regulations, as well as all other relevant pieces of legislation, regulations, and circulars are annually reviewed during the budget process.

The municipality has established the three (3) bid committee system. No councillors are members of any committee of the committees handling supply chain processes.

The supply chain officials are currently attending accredited training modules to meet the requirements of the minimum competency levels. One senior and two supply chain officials are yet to complete the necessary competency levels.

T 5.12.1

5.12. GRAP COMPLIANCE

GRAP COMPLIANCE

GRAP is the acronym for Generally Recognized Accounting Practice. 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 to 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 municipality fully complies with all the required GRAP standards as has been confirmed by the findings of the Auditor-General.

T 5.13.1

Chapter 6 – Auditor-General Audit Findings ANNUAL REPORT – 2015/2016

209

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. Section 45 of the MSA further states that the results of performance measurement must also be audited annually by the Auditor-General. Section 121(3) of the MFMA required that the audit report be included in the annual report to be tabled.

Every municipality must for each financial year prepare annual financial statements which

fairly present 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 measure and review 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.


210

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS

6.1. AUDITOR-GENERAL REPORTS PREVIOUS YEAR

Auditor-General Report on Financial 2014/2015 Audit Report Status*: Unqualified with other matters Non-compliance Issues Remedial Action Taken Expenditure management – Reasonable steps were not taken to prevent unauthorised expenditure as required by Section 62(1)(d) of the MFMA

Engage with Provincial and National Treasury on the issue of saleable land and budget for it in future

T 6.1.1

COMPONENT B: AUDITOR-GENERAL OPINION CURRENT YEAR

6.2. AUDITOR-GENERAL REPORT – CURRENT YEAR

Auditor-General Report on Financial Performance 2015/2016

Status of Audit Report: Clean audit report Non-compliance Issues Remedial Action Taken None Note:* The report’s status is supplied by the Auditor-General and ranges from unqualified (at best) to unqualified with other matters specified; qualified; adverse; and disclaimer (at worst). This table will be completed prior to the publication of the annual report but following the receipt of the Auditor-General Report on Financial Performance Year 0. T 6.2.1

AUDITOR-GENERAL REPORT ON THE FINANCIAL STATEMENTS: YEAR 2015 See Appendix W. T 6.2.3

COMMENTS ON AUDITOR-GENERAL’S OPINION FOR YEAR 2016 See Appendix X.

T 6.2.4


211

COMMENTS ON MFMA SECTION 71 RESPONSIBILITIES

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.

I, E Wassermann, Chief Financial Officer, herewith confirms that the following data sets have been submitted to National Treasury according to the reporting requirements:

File Name Number

of Reports

Description

AC_M01-M12 12 Age Analysis of Creditors – Monthly

AD_M01-M12 12 Age Analysis of Debtors – Monthly

AM_Y 1 Capital Asset Management Information (Budget) – Annually

BEC_Y 1 Budget Evaluation Checklist (Budget) – Annually

BM_Q1-Q4 4

External debt created, repaid or redeemed and expected borrowing – Quarterly

BSAC_M01-M12 12 Statement of Financial Position Actuals – Monthly

BSAP_Y 1 Statement of Financial Position Audited Actuals – Annually

BS_Y 1 Statement of Financial Position (Budget) – Annually

CAA_M01-M12 12 Capital Actual Acquisition and Sources of Funding – Monthly

CA_Y 1 Capital Actual Acquisition and Sources of Funding (Budget) – Annually

CAAA_Y 1 Capital Acquisition and Sources of Funding Audited Actual – Annually

CFA_M01-M12 12 Cash Flow Statement Actuals/forecasts – Monthly

CFAA_Y 1 Cash Flow Statement Audited Actuals – Annually

CFB_Y 1 Cash Flow Statement Budget – Annually

FMG_M01-M12 12 Finance Management Grant – Monthly

GSG_Y 1 Grants and Subsidies Given(Budget) – Annually

GSR_Y 1 Grants and Subsidies Received (Budget) - Annually

INEG_M01-M12 12 Integrated National Electricity Grant – Monthly

LTC_Q1-Q4 4 Long-term Contracts – Quarterly

ME_Q1-Q4 4 Municipal Entities – Quarterly


212

File Name Number

of Reports

Description

MFM1_Q1-Q4 4 MFMA Implementation and Monitoring Template – Quarterly

MIG_M01-M12 12 Municipal Infrastructure Grant – Monthly

MSIG_M01-M12 12 Municipal Systems Improvement Grant

NDPG_M1-M12 12 Neighbourhood Development Partnership Grant

OSA_M01-M12 12 Statement of Financial Performance Actuals – Monthly

OSAA_Y 1 Statement of Financial Performance Audited Actuals – Annually

OSB_Y 1 Statement of Financial Performance Budget – Annually

PWPG_M01-M12 12 Expanded Public Works Programme Integrated Grant – Monthly

RME_M01-M12 12 Repairs and Maintenance by Expenditure Types – Monthly

ROGS_M01-M12 12 Approved Rolled Over Grant Spending – Monthly

SP_Y 1 Strategic Plan/IDP Budget – Annually

REPORT OF AUDIT COMMITTEE FOR THE YEAR END 30 JUNE 2016 See Appendix G. T 6.2.3

213

GLOSSARY

Accessibility indicators

Explore whether the intended beneficiaries can 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 reports, 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 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 Members of Executive Council (MECs) for local government, the Minister may prescribe general key performance indicators that are appropriate and applicable to local government generally.

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.

214

National Key Performance Areas

• Service delivery and 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, or 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.

Performance Targets

The level of performance that municipalities and their 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

A 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 into 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.

STEVE TSHWETE MUNICIPALITY | APPENDICES 215

APPENDICES

APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE

FS Financial Services EHP Environmental Health & Public Facility Services RE Rules & Ethics CS Corporate Services SDH Spatial Development & Human Settlement MPAC Municipal Public Accounts Committee CPS Community Protection Services IS Infrastructure Development & Service Delivery PR Proportional Councillor

COUNCILLORS, COMMITTEES ALLOCATED AND COUNCIL ATTENDANCE

COUNCIL MEMBERS FULL TIME/PART TIME

COMMITTEE ALLOCATED WARD/PR

PARTY

Percentage Council Meetings

Attendance

Percentage Apologies for

non-attenance

SURNAME NAME SECTION 80

SECTION 79 15 meetings were

arranged %

%

1 Masina Michael Amos Full Time PR ANC (14) 93% (1/1) 100% 2 Mahlangu Ntombikayise Jeanette Full Time IS 21 ANC (10) 67% (4/5) 80% 3 Mathebula Elphus Fani Full Time FS 3 ANC (9) 60% (5/6) 83% 4 Motsepe Diphale Joseph Full Time EHP PR ANC (12) 80% (2/3) 67% 5 Nkadimeng Semakaleng Dorah Full Time SDH PR ANC (9) 60% (5/6) 83% 6 Nkosi Ernest Philile Full Time CPS 19 ANC (10) 67% (5/5) 100% 7 Pilodia Helena Full Time CS PR ANC (12) 80% (2/3) 67% 8 Xaba Robert Mphikeleli Full Time PR ANC (8) 53% (7/7) 100% 9 Ndala Busisiwe Paulina Full Time PR ANC (12) 80% (3/3) 100% 10 Hadebe Philemon Madoda Part Time EHP IS 26 ANC (14) 93% (1/1) 100% 11 Jele Eskie Agnes Part Time EHP CS ANC (12) 80% (2/3) 67% 12 Lukhele Sipho Azariah Part Time SDH CS 20 ANC (14) 93% (1/1) 100% 13 Mahlangu Thobile Blessed Part Time FS RE; IS PR ANC (10) 67% (4/5) 80% 14 Malinga Obedient Part Time CPS 5 ANC (14) 93% (1/1) 100% 15 Manzini Lemeko Isaac Part Time CS RE; CPS 27 ANC (14) 93% (1/1) 100% 16 Masilela Peter Jika Part Time IS MPAC; CS PR ANC (9) 60% (4/6) 67% 17 Matshiane Johan Part Time EHP MPAC; FS 7 ANC (13) 87% (2/2) 100% 18 Mbatiwe Michael Part Time CS SDH 25 ANC (10) 67% (4/5) 80%





PARTY


Attendance


non-attenance



arranged %

%

19 Mkhuma Lali Elijah Part Time CPS IS 6 ANC (12) 80% (3/3) 100% 20 Mnguni Mmamotsana Refilwe Part Time IS FS PR ANC (13) 87% (2/2) 100% 21 Mnguni Muka Thandi Elizabeth Part Time CS SDH PR ANC (8) 53% (4/7) 57% 22 Mnguni Sonto Martha Part Time CPS MPAC; SDH PR ANC (13) 87% (1/2) 50% 23 Monareng Kweba Nellah Part Time SDH RE; CS PR ANC (12) 80% (2/3) 67% 24 Motebu Matthews Sipho Part Time IS MPAC; FS 22 ANC (12) 80% (3/3) 100% 25 Morufane Thabang Nathaniel Part Time CS SDH; EHP 28 ANC (12) 80% (0/3) 0% Mtshweni Zabakona David Part Time IS CS PR ANC (14) 93% (1/1) 100% 26 Khanyile Doctor Stephans Part Time RE 2 ANC (8/13) 62% (2/5) 40% 27 Mathibela Maria Part Time SDH EHP 29 ANC (14) 93% (1/1) 100% 28 Nyambi Mgevu Edward Part Time CPS IS 4 ANC (11) 73% (4/4) 100% Sekgwele Marumo Jim Part Time IS EHP 17 ANC (11) 73% (3/4) 75% 29 Selala Mpoetse Josiah Part Time FS MPAC; IS; RE 23 ANC (11) 73% (3/4) 75% 30 Selala Martha Thandi Part Time EHP; SDH EHP PR ANC (9) 60% (3/6) 50% 31 Shongwe Petrus Mduduzi Part Time FS CPS PR ANC (10) 67% (4/5) 80% 32 Skhosana Doctor Joseph Part Time CPS FS; RE 1 ANC (10) 67% (4/5) 80% 33 Skosana Badanile Christinah Part Time CS EHP 8 ANC (10) 67% (4/5) 80% 34 Skosana Johannes Part Time FS SDH 9 ANC (15) 100% 35 Tau Precious Poppy Part Time CPS MPAC; EHP 24 ANC (10) 67% (3/5) 60% 36 Thwala Phumaphi Irene Part Time FS MPAC; FS 18 ANC (11) 73% (4/4) 100% 37 Zitha Sonto Sarah Part Time EHP MPAC; CPS PR ANC (14) 93% (0/1) 0% 38 Mokoena Ben Hamelton

(Resigned) Part Time PR COPE (9/13) 69% (3/4) 75%

39 Du Toit Elizabeth Part Time CS RE PR DA (13) 87% (2/2) 100& 40 Dyason Johann Part Time IS IS 16 DA (15) 100% 41 Grobler Anna Sophia Part Time SDH SDH PR DA (14) 93% (1/1) 100% 42 Longman Deborah Maleoto Part Time EHP EHP 10 DA (12) 80% (2/3) 67% 43 Mobango Palesa Part Time EHP; CPS CPS PR DA (12) 80% (3/3) 100% 44 Mogola Sophia Mamy Part Time EHP EHP; RE PR DA (14) 93% (1/1) 100% 45 Ndlangamandla Thokozane Goodwill

(Resigned) Part Time SDH SDH PR DA (2/2) 100%

46 Msimango Gloria Zanele Part Time SDH SDH PR DA (9/11) 82% (1/2) 50% 47 Niemann Hendrik Frederick Part Time IS MPAC 12 DA (14) 93% (1/1) 100%





PARTY


Attendance


non-attenance



arranged %

%

48 Mlambo Ngcede Joseph Part Time SDH PR DA (11) 73% (3/4) 75% 49 Sithole Paulina Nicolene Part Time CS PR DA (13) 87% (1/2) 50% 50 Pretorius Jozua Petrus Part Time FS; IS FS; IS 14 DA (15) 100% 51 Van Zyl Thomas Nicolas Part Time CPS CS PR DA (12) 80% (1/3) 33% 52 Romijn Gysbertus Hendrik

Ernest Part Time CS CS PR DA (14) 93% (1/1) 100%

53 Roos Stephanus Johannes Part Time FS MPAC; FS PR DA (12) 80% (2/3) 67% 54 Struwig Ammelia Part Time CPS MPAC 11 DA (14) 93% (1/1) 100% 55 Langeveld Trevor Robert Part Time RE 15 DA (7) 47% (5/8) 63% 56 Wait Susan-Mari Part Time FS CPS 13 DA (12) 80% (3/3) 100% 57 Uys Karel Philippus Jacob Part Time FS PR FF+ (10) 67% (5/5) 100% 58 Langeveld Trevor Robert Part Time RE 15 DA (12) 80% (3/3) 100%

STEVE TSHWETE MUNICIPALITY | APPENDICES

218

APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES

Committees (other than Mayoral/Executive Committee) and Purposes of Committees Purpose of Committee

Section 79 committees Purpose of Committee

Corporate Services

To monitor and the activities of the MMC and the relevant administrative department in respect of administration, Human Resource and Education activities. To advise council through the Mayoral Committee on improvements that could be effected.

Financial Services

To monitor and the activities of the MMC and the relevant administrative department in respect of finance and auditing activities. To advise council through the Mayoral Committee on improvements that could be effected.

Infrastructure Development and Service Delivery

To monitor and the activities of the MMC and the relevant administrative department in respect of Infrastructure Development and Service Delivery activities.

To advise council through the Mayoral Committee on improvements that could be effected.

Spatial Development, Human Settlement and Housing Administration

To monitor and the activities of the MMC and the relevant administrative department in respect of Human Settlement and Agriculture activities. To advise council through the Mayoral Committee on improvements that could be effected.

Community Protection Services

To monitor and the activities of the MMC and the relevant administrative department in respect of Traffic Emergency, Transport, Safety & Security activities.

To advise council through the Mayoral Committee on improvements that could be effected.

Environmental health, public facilities and cultural services

To monitor and the activities of the MMC and the relevant administrative department in respect of Environmental health, public facilities and cultural services activities. To advise council through the Mayoral Committee on improvements that could be effected.

Municipal public account committee

To ensure that municipal finances are properly managed and to advice council through the Mayoral Committee on improvements on ways and means whereby utilising and monitoring of municipal expenditure and income management can be improved.

Rules and ethics committee To consider and recommend to Council on matters relating to conduct of councillors.


Section 80: Portfolio Committee Purpose of Committee

Corporate Services

To advise and assist the Executive Mayor in respect of operational issues regarding Administration, Human Resource & Education.

Financial Services To advise and assist the Executive Mayor in respect of operational issues regarding Financial services matters

Infrastructure Development and Service Delivery

To advise and assist the Executive Mayor in respect of operational issues regarding Infrastructure Development and Service Delivery

Spatial Development, Human Settlement and Housing Administration

To advise and assist the Executive Mayor in respect of operational issues regarding Town Planning, Human Settlement and Housing Administration.

Community Protection Services

To advise and assist the Executive Mayor in respect of operational issues regarding Traffic Emergency, Transport, Safety & Security

Environmental health, public facilities and cultural services

To advise and assist the Executive Mayor in respect of operational issues regarding Environmental health, public facilities and cultural services


APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE

Third tier structure

Directorate Director (State title) Manager (State name)

Office of the Executive Mayor

Personal Assistant to the Mayor Mr S Mnguni

Deputy Director in the Office of the Mayor Ms D Mngomezulu

Manager: Youth Development Mr M Masemola

Manager: Gender & Social Development Ms L Legabi

Office of Municipal Manager

Deputy Municipal Manager Mr SM Mnguni (Acting) MM

Director Development & Strategic Support Ms SS Madlopha

Assistant Director IDP Ms NP Mabuza

Assistant Director LED Mr M Nkosi

Assistant Director Internal Audit Mr J Ramphisa

Assistant Director Risk Management Mr F Selolo

Assistant Director PMS Mr J Silas

Corporate services

Director Human Capital Management Mr M Khumalo

Director Legal & Administration Mr M Masilela

Director Property Valuation Services Mr J Victor

Director Information Communication Technology Mr S Mothiba

Assistant Director Administration R L Bronkhorst

Assistant Director Legal Services Mr T Mokoena

Assistant Director: Stakeholder Liason Mr Mthethwa

Assistant Director Communication & Stakeholder Liaison

Ms P Magutle

Community services

Deputy Director Emergency Services Mr A Mashiloane

Deputy Director Traffic, Law Enforcement and Security Services

Ms P Mkosi

Director Public Safety Vacant since 01/01/15

Assistant Director Cultural Services Mr S Xulu

Director Environmental & Solid Waste Management Ms R Makondzo

Infrastructure services

Director Town Planning &Human Settlement Mr M Mahamba

Director Civil Engineering Services Vacant

Deputy Director: Civil Engineering Services Mr PR Bouwer

Assistant Director: Rural Areas Mr S Mbatha

Assistant Director: Water Services Mr L Badiroang

Assistant Director: Roads & Storm water Ms LG Silolo

Assistant Director: Water Quality Mr CM Makgatha

Assistant Director Buildings & Fleet Management Ms S Msebe


Director Electrical Engineering Vacant

Director Physical Environmental Development Ms D Lambrechts

Deputy Director Project & Programme Management Ms T Janse Van Ransburg

Financial services Deputy Director Financial Services Ms Maryam Tayob

Assistant Director budget Office Mr B J Booyens Assistant Director SCM Unit Mr PL van der Merwe Assistant Director financial statements and assets Ms F E Khoza Assistant Director Treasury Office Ms P Melato

Spill-over schedule of 3 tiers not included in in chapter 2


APPENDIX D – FUNCTIONS OF MUNICIPALITY

Municipal Functions

Constitution Schedule 4, Part B functions: Function Applicable to Municipality (Yes/No)*

Air pollution Yes Building regulations Yes Childcare facilities Yes Electricity and gas reticulation Yes Firefighting services Yes Local tourism Yes Municipal airports Yes Municipal planning Yes Municipal health services Yes Municipal public transport Yes Storm water management systems in built-up areas Yes Trading regulations Yes Water and sanitation services limited to potable water supply systems and domestic waste-water and sewage disposal systems

Yes

Beaches and amusement facilities No

Billboards and the display of advertisements in public places Yes Cemeteries, funeral parlours and crematoria Yes Cleansing Yes Control of public nuisances Yes Control of undertakings that sell liquor to the public Yes Facilities for the accommodation, care and burial of animals Yes Fencing and fences Yes Licensing of dogs Yes Licensing and control of undertakings that sell food to the public Yes Local amenities Yes Local sport facilities Yes Markets Yes Municipal abattoirs Yes Municipal parks and recreation Yes Municipal roads Yes Noise pollution Yes Pounds Yes Public places Yes Waste removal, waste dumps and solid waste disposal Yes Street trading Yes Street lighting Yes Traffic and parking Yes


173

APPENDIX E –WARD REPORTING

WCM - Ward Committee Meetings - 152

WGM –Ward General Meetings – 122

Ward Councillor Meetings

July

14

Aug 15

Sep

t 14

Oct 15

No

v 14

Dec 15

Jan

15

Feb 16

Mar

15

Apr 16

May

15

June 16 Total

1

Cllr DJ Skhosana

WCM 06/08/2015 17/10/2015 04/12/2015 02/02/2016 05/04/2016 21/06/2016 06

WGM - 06/10/2015 07/12/2015 12/02/2016 07/04/2016 21/062016 05

2 Cllr DS Khanyile

WCM 08/08/2015 15/10/2015 - - - - 01

WGM 09/08/2015 - - - - 01

3

Cllr EF Mathebula

WCM 03/08/2015 10/10/2015 - 17/02/2016 - - 06

WGM 03/08/2015 25/10/2015 - 21/02/2016 - - 05

4

Cllr EF Mathebula

WCM 04/08/2015 07/10/2015 02/12/2015 02/02/2016 08/06/2016 06

WGM 05/08/2015 08/10/2015 02/12/2015 09/02/2016 04/04/2016 08/06/2016 06

5

Cllr ME Nyambi

WCM 06/08/2015 07/10/2015 22/11/2015 27/01/2016 05/04/2016 - 05

WGM 13/08/2015 - 12/12/2015 27/01/2016 09 - 03

6 Cllr LE Mkhuma

WCM 06/08/2015 08/10/2015 03/12/2015 29/01/2016 - - 06

WGM 18/08/2015 21/10/2015 06/12/2015 05/02/2016 08/04/2016 - 04

7

Cllr O Malinga

WCM 26/08/2015 18/10/2015 13/12/2015 07/02/2016 - 21/062016 06

WGM 26/08/2015 18/10/2015 13/12/2015 07/02/2016 24/04/2016 - 05

8 Cllr LE Mkhuma

WCM 02/08/2015 07/10/2015 05/12/2015 11/02/2016 24/04/2016 - 06

WGM 02/08/2015 18/10/2015 05/12/2015 - 14/04/2016 - 06

9

Cllr J Skosana

WCM 09/08/2015 11/10/2015 29/11/2015 06/02/2016 21/04/2016 - 06

WGM 16/08/2015 09/10/2015 06/02/2016 02/04/2016 - 06

10 Cllr J Matshiane

WCM 06/08/2015 13/10/2015 01/12/2015 03/02/2016 02/04/2016 - 06 WGM 16/08/2015 13/10/2015 - 14/02/2016 03/04/2016 - 04

11

Cllr BC Skosana

WCM 03/08/2015 05/11/2015 01/12/2015 04/02/2016 28/04/2016 - 06

WGM 03/08/2015 05/11/2015 01/12/2015 04/02/2016 - - 05

12 Cllr HF Niemann WCM 06/08/2015 07/10/2015 09/12/2015 03/02/2016 - - 06

WGM 06/08/2015 07/10/2015 09/12/2015 03/02/2016 06/04/2016 - 05

13 Cllr J Skosana

WCM 06/08/2015 13/10/2015 03/12/2015 05/02/2016 06/04/2016 - 05

WGM 06/08/2015 13/10/2015 03/12/2015 05/02/2016 07/04/2016 - 03


Ward Councillor Meetings

July

14

Aug 15

Se

pt

14 Oct 15

No

v 14

Dec 15

Jan

15

Feb 16

Mar

15

Apr 16

May

15

June 16 Total

14

Cllr DM Longman

WCM 06/08/2015 01/10/2015 03/12/2015 04/02/2016 07/04/2016 02/06/2016 06 WGM 06/08/2015 01/10/2015 03/12/2015 04/02/2016 07/04/2016 02/06/2016 04

15

Cllr A Struwig

WCM 12/08/2015 13/10/2015 08/12/2015 03/02/2016 07/04/2016 - 05 WGM 12/08/2015 13/10/2015 08/12/2015 03/02/2016 07/04/2016 - 05

16

Cllr J Dyason WCM 11/08/2015 08/10/2015 03/12/2015 04/02/2016 - 07/06/201 06 WGM 11/08/2015 - 03/12/2015 04/02/2016 06/04/2016 07/06/2016 05

17

Cllr HF Niemann

WCM 04/08/2015 08/10/2015 09/12/2015 - - - 06

WGM 12/08/2015 09/10/2015 11/12/2015 - 12/04/2016 - 05

18 Cllr SM Wait

WCM 10/08/2015 14/10/2015 - 03/02/2016 12/04/2016 - 06

WGM 20/08/2015 22/10/2015 - 09/02/2016 - - 03

19

Cllr JP Pretorius

WCM 18/08/2015 14/10/2015 - 03/02/2016 - 15/06/2016 02 WGM 20/08/2015 15/10/2016 - - - - -

20

Cllr T Langeveld

WCM 06/08/2015 13/10/2015 03/12/2015 04/02/2016 - 05 WGM 13/08/2015 13/10/2015 03/12/2015 11/02/2016 14/04/2016 05

21

Cllr J Dyason

WCM 12/08/2015 14/10/2015 07/12/2015 05/02/2016 14/04/2016 - 06 WGM 19/08/2015 17/10/2015 15/12/2015 09/02/2016 13/04/2016 - 06

22

Cllr MJ Sekgwele

WCM 06/08/2015 05/10/2015 - 03/02/2016 27/04/2016 - 06 WGM 27/07/2015 15/10/2015 - 03/03/2016 05/04/2016 - 03

23

Cllr PI Thwala

WCM 18/08/2015 08/10/2015 - 08/02/2016 - 09/06/2016 05

WGM - 08/10/2015 - 10/02/2016 - 09/06/2016 04

24 Cllr EP Nkosi

WCM 10/08/2015 08/10/2015 - 21/02/2016 - - 04

WGM 10/08/2015 11/10/2016 - 21/02/2016 20/04/2016 - 04

25 Cllr MM Mbatiwe WCM 05/08/2015 10/10/2015 - - 21/04/2016 - 06

WGM 09/08/2015 11/11/2015 - - - - 03

26 Cllr SA Lukhele

WCM 05/08/2015 07/10/2015 09/12/2015 03/02/2016 - 09/06/2016 06 WGM 05/08/2015 07/10/2015 09/12/2015 03/02/2016 13/04/2016 09/06/2016 06

27

Cllr NJ Mahlangu

WCM 06/08/2015 05/10/2015 30/11/2015 02/02/2016 13/04/2016 - 06 WGM 13/08/2015 19/11/2015 08/12/2015 04/02/2016 - - 05

28

Cllr MS Motebu

WCM 01/08/2015 06/10/2015 06/12/2015 - - - 03 WGM 03/08/2015 07/10/2015 06/12/2015 - 03/04/2016 - 03

29

Cllr MJ Selala

WCM 09/08/2015 07/10/2015 06/12/205 06/02/2016 03/04/2016 - 03

WGM 14/08/2015 11/10/2015 08/12/2015 07/02/2016 05/04/2016 - 03


APPENDIX F –WARD INFORMATION

Wards 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Water

Households with minimum service delivery

1159

3025

1864

1203

1246

1829

1257

2874

763

3369

3247

3682

2012

181

166 2

1838

737

1287

173

1122

1610

86

3384

439

387

62

135

6629

409

Households without minimum service delivery

19

617

173

763

107

279

238

716

559 89 22 63 2 1 5 1

189

1635 2 14 7 4 6 55 2 46 7

2117 76

1400

Total Households* 1178

3642

2037

1966

1353

2108

1494

3633

1323

3458

3267

3745

2034

1826

1672

2028

2372

1290

1745

1129

1615

867

3439

44

3916

627

2252

6705

1809

Sanitation


1150

3024

1750

1072

114

1672

1195

2794

250

3364

3232

3674

1986

1789

165

1259

710

1278

1726

1117

1594

866

3394

434

3730

582 52

6496

202


28

618

287

895

212

436

299

840

1073 93 36 70 48 38 2

769

1663 12 19 12 2 45 5

186 45

2200

209

1607


3642

2037

1966

1353

2108

1494

3633

1323

3458

3267

3745

2034

1826

1672

2028

2372

1290

1745

1129

1615

867

3439

44

3916

627

2252

6705

1809

Electricity


116

2

305

6

184

5

111

127

7

190

3

136

6

280 63

8

339

2

321

7

370

2

200

5

180

2

165

4

171

8

225

5

128

0

162

111

2

159

4

860

339

0

438

385

6

623

208

5

655

7

707


18 586

19 855 76 205

128

833

687 66 5 44 29 24 18 31 117 10 125 18 2 7 49 3 60 4

167

148

110

Total Households*

1178

3642

2037

1966

1353

2108

1494

3633

1323

3458

3267

3745

2034

1826

1672

2028

2372

1290

1745

1129

1615

867

3439

44

3916

627

2252

6705

1809

Waste


1159

2999

1702

1066

1117

1486

1119

2770 36

3286

3223

3643

1927

1756

1648

1077

1840

110

1689

1126

1590

867

3365

434

3869

477

1829

6390

430


19

643

335

900

237

622

375

862

1286

172 45

10

107 70 23

95

532

189 55 3 25 0 75 7 48

15

423

315

1378


3642

2037

1966

1353

2108

1494

3633

1323

3458

3267

3745

2034

1826

1672

2028

2372

1290

1745

1129

1615

867

3439

44

3916

627

2252

6705

1809


Top Four Service Delivery Priorities

1.U

pgra

ding

of i

nfor

mal

set

tlem

ent-

add

ition

al c

omm

unal

sta

nds,

toile

ts w

ithin

the

stan

ds a

nd e

lect

ricity

1.S

erv

iced

land

sta

nds

1.W

aste

con

tain

ers

and

dum

ping

site

s in

Ext

2

1. C

omm

unity

ha

ll

1. jo

b cr

eatio

n

1. J

ojo

tank

s fo

r B

linkp

an s

tatio

n

1.C

emet

ery

at S

ikhu

luliw

e V

illag

e

1.C

omm

unity

hal

l

2.M

PC

C in

Som

aphe

pha

1.al

loca

tion

of r

esid

entia

l sta

nds

in N

asar

et

1.S

choo

l at M

idde

lbur

g E

xt 1

8

1. T

arrin

g of

str

eet

s in

Aer

ora

nd w

est

1. U

pgra

ding

of t

he s

tree

ts, a

lot o

f the

str

eets

hav

e p

otho

les.

1 T

he r

oad

surf

ace

of H

ospi

tal s

tree

t is

very

une

ven

and

need

s at

tent

ion

(re

- se

alin

g).

1.F

enci

ng b

etw

een

spr

ingb

ok a

nd S

tosf

berg

roa

d

1.S

peed

hum

ps a

t Jap

ie G

reyl

ing,

Nja

la S

wa

rt a

nd D

F M

alan

str

eet

(aro

und

Den

nisi

g La

ersk

ool

1.T

owns

hip

esta

blis

hmen

t – p

rocl

aim

& d

evel

op

1.S

torm

wat

er

Bey

ers

Nau

de

1.S

kills

Dev

elop

men

t Cen

tre

at O

ld T

hush

anan

g S

choo

l

1. S

peed

hum

ps K

gam

e M

abol

oka

and

Sam

Fis

her

( cn

r F

ishe

r an

d 8

th s

tree

t)

1.S

torm

wat

er

drai

nage

for

Nka

bind

e st

reet

from

Thu

sana

ng

1.R

epla

cem

ent o

f sew

er p

ipes

at

Mat

sim

ela

and

Mot

sepe

Str

eet

1. O

pen

area

bet

wee

n C

hro

mev

ille

& A

valo

n to

be

mad

e av

aila

ble

for

stan

ds.

1.R

eloc

atio

n of

peo

ple

from

Val

bank

and

Uitk

yk

1.11

091

and

110

43 a

t ext

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ewer

age

pipe

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ede

d

1.U

pgra

ding

of t

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sew

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om s

tand

817

9-8

198

1.P

rimar

y sc

hool

bet

wee

n an

d N

ew

tow

n an

d E

xt 2

1. P

rimar

y sc

hool

.

1.W

ate

r –h

ouse

con

nect

ion


2.T

arrin

g of

the

Mar

opa,

Ma

hlas

e, M

phut

hi, T

lou

and

Mas

hego

str

eets

2. R

DP

hou

se

2. C

hurc

h si

tes

in H

endr

ina

2. C

linic

Kom

ati

2. R

DP

Hou

ses

Alz

u an

d S

IS

2. P

aypo

int/

Ven

din

g m

achi

ne.

2.M

pcc

at S

ikhu

luliw

e V

illag

e

2.C

linic

in R

ockd

ale

3.E

xpan

sion

of t

he r

eser

voir

2.Y

outh

dev

elop

men

t cen

tre

2.ta

rrin

g of

roa

ds a

t Mid

delb

urg

Ext

18

2. W

iden

ing

of a

cces

s ro

ads

arou

nd th

e M

idde

lbur

g M

all (

Bet

hal

Ro

ad a

s w

ell a

s D

r. M

ande

la D

rive)

.

2. A

reas

to b

e bu

ilt a

t cer

tain

poi

nts

for

haw

kers

an

d jo

b se

eker

s.

2M

inid

umpi

ngsi

tes

for

gard

enre

fuse

inG

holfs

ig

2.A

dditi

onal

abl

utio

n se

rvic

es a

t the

Olif

ant R

iver

2.H

igh

mas

t lig

ht a

t the

str

eam

be

twee

n K

anon

kop

and

Den

nesi

g a

nd a

lso

in th

e pa

rk b

etw

een

Den

nes

igLa

ersk

ool a

nd S

aver

ite S

hopp

ing

cen

tre

2. C

onst

ruct

ion

of a

ram

p in

136

8 D

ipha

lane

str

eets

and

107

2 M

ande

la D

rive

2.U

pgra

ding

Blo

ck 6

Rea

bota

to fa

mily

uni

t 2.

Sto

rm w

ate

r dr

aina

ge a

t Gog

o n

ambu

yisa

and

Mat

lapa

, mai

n an

d B

aloi

2. Im

prov

e st

orm

wat

er d

rain

age

at N

gcob

o st

r

2.S

pend

hum

ps

2.S

torm

wat

er

pipe

s at

Bas

hele

and

Mat

sim

ela

and

Mag

agul

a st

reet

2. S

peed

hum

ps a

t Cho

cola

te S

tree

t, Ith

emba

and

Phi

ndan

i str

eets

.

2. N

eed

for

resi

den

tial s

tand

s.

2.11

032

ext 8

mud

dy h

ouse

s ar

e flo

oded

2. R

DP

hou

ses

on

all v

acan

t sta

nds

2.S

occe

r fie

ld b

etw

een

Ne

wto

wn

and

Ext

2

2.S

tan

dby

clin

ic

2.W

ate

rbor

ne to

ilets

insi

de h

ouse

s


3.U

pgra

ding

of t

he

stad

ium

at K

wa

zam

okuh

le

3.R

DP

hou

se

3.S

tree

ts li

ghts

in H

endr

ina

3.E

lect

ricity

in th

e fa

rms

3. R

ecre

atio

n fa

cilit

y in

Pul

lens

hope

3. N

eed

job

opp

ort

uniti

es.

3.C

linic

at

Rie

tkui

l

3.P

layi

ng g

rou

nd

4 E

xpan

sion

of t

he r

eser

voir

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betw

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3.S

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lite

Pol

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and

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land

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ark

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as

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igh

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Som

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with

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ina

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tall

for

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rep

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in N

elso

n M

ande

la D

rive.

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peed

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t M

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and

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of s

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to

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any

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need

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and

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xt 6

an

d 8

4. J

ob c

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ses

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ands

Housing: to date about 10 000 RDPs have been built around Steve Tshwete and currently there are about 28 496 people in the municipal waiting list.


179

APPENDIX G: RECOMMENDATIONS OF THE AUDIT COMMITTEE

Steve Tshwete Local Municipality

2015/2016

Annual Audit committee report


REPORT OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016

1. INTRODUCTION

Nkangala District Municipality and its local municipality have opted for a Shared Audit Committee Service. The Audit Committee was established in terms of Section 166 paragraph 6(a) of the Municipal Finance Management Act (MFMA), Act No.56 of 2003. The Committee reports that it has adopted appropriate formal terms of reference as contained in its charter, and carried out its functions in compliance with the terms of reference as approved by Council during the current financial year.

Statutory Requirements

Section 166 of the MFMA clearly states that each municipality must have an Audit Committee. The Audit Committee is an independent advisory body that advises council, political office-bearers, accounting officer, and staff of the municipality on the following:

Internal financial control and internal audits;

Risk management;

Accounting policies; The adequacy, reliability, and accuracy of financial reporting and information; Performance management Effective governance; Compliance with the MFMA, the annual Division of Revenue Act (DoRA) and any

other applicable legislation; Performance evaluation; Any other issues referred to by the municipality; Review annual financial statements so as to provide authoritative and credible view

of the financial position, on overall compliance with MFMA, DORA, etc. Respond to Council on any matter raised by the Auditor-General (AGSA); and Carry out such investigations into financial affairs of the municipality as may be

prescribed from time to time.

The principles of King III Report customized to municipal environment advice that the Audit Committee should:

Ensure that combined assurance model is applied to provide a coordinated approach to all assurance activities;

Satisfy itself of the expertise, resources and experience of the municipality Finance Function;

Be responsible for overseeing of Internal Audit ; and Be integral component of the risk management process.

2. COMMITTEE MEMBERSHIP AND ATTENDANCE OF MEETINGS


The members of the Committee are all independent and have the required qualifications, skills and knowledge; which includes legal, business management, risk management, accounting and financial management. The Committee should have a minimum of four (4) meetings during a financial year as per its approved terms of reference. There were seven (7) meetings held during the financial year ended 30 June 2016, which included special meetings. The Audit Committee met in terms of the approved municipal calendar of Steve Tshwete Local Municipality. The following deals with the attendance of the Audit Committee by members:

Name of Member Ordinary Meetings

Special meetings

Total

Mr MA Mmapheto (Chairperson) 3 2 5 Mr V Chuene 4 3 7

Mr L Lankalebalele 4 3 7 Mr L Thubakgale 3 1 4 Mr MG Mathabathe 2 3 5

The following although not members of the Audit Committee, have standing invitation to Audit Committee meetings:

(i) The Accounting Officer (ii) The Chief Financial Officer (iii) The Section 56 Managers/Departmental Heads (iv) The Auditor-General (v) The National Treasury (vi) Mpumalanga Provincial Treasury (vii) Mpumalanga Department of Cooperative Governance (viii) South African Local Government (ix) Internal Audit (Secretariat function)

3. AUDIT COMMITTEE RESPONSIBILITIES

3.1. INTERNAL AUDIT

The Internal Audit Unit of Steve Tshwete Local Municipality (STLM) is co-sourced to PricewaterhouseCoopers (PWC) for the financial year reported, the contract of the service provider ended in June 2016. The Audit Committee is of the opinion that Internal Audit Unit is operating effectively to meet its mandate and has considered the risk pertinent to the municipality in their audit plan. The municipality’s Internal Audit Unit provides the Audit Committee and management with reasonable assurance that the internal controls are appropriate and effective, in line with the provisions of the MFMA, and the requirements per South Africa’s Code on Corporate Governance. This is achieved by means of continuous risk assessments, as well as the identification of corrective actions and suggested enhancements


to the controls and processes in respect of key risk areas identified. During the year under review several instances of non-compliance with regulations, policies and procedures were reported by the Internal Audit Unit which could result in weaknesses in the functioning of controls. Management should continue to address the findings raised by Internal Audit before be escalated to external Audit reports. Management needs to deal with matters raised by the Auditor-General and followed up by Internal Audit to reclaim the clean audit opinion.

Vacant critical positions in the municipality which are: Executive Director: Corporate Services; Executive Director: Infrastructure Services; Deputy Director: Licensing; Municipal Manager; Director: Electrical Services; and Director: Civil Engineering should be escalated to the political leadership of the municipality as it is viewed as a serious light by committee and has a strong implication on service delivery. Management should put controls in place to ensure that Disciplinary Board is functioning as required by the municipal regulations. The STLM ICT Department should benchmark with the Nkangala District on ICT Audit Action Plan. There should be Social Network policy. The municipality needs to put an action plan in place to address the shortcomings on the audit opinion. Investment committee should be established to manage the all investments of the municipality.

3.2. EFFECTIVENESS OF INTERNAL CONTROLS

The system of internal control was not entirely effective during the year under review as compliance with prescribed policies and procedures were lacking in certain instances. During the year under review, several instances of non-compliance were reported by both internal and external auditors that resulted from a breakdown in functioning of internal controls. The Audit Committee also noted a slow progress in responding to Internal Audit queries which might lead to matters of emphasis in the reports of the Auditor-General.

To ensure that the clearing of internal audit findings receive attention at the highest level, the Audit Committee has requested internal audit reports to be a standing item on the agenda of management meetings. The Audit Committee has also urged management to draw up action plan to address issues raised by the Auditor-General in the management letters and audit report. This plan is a standing item in the AC meetings. The following issues relating to performance Management have also been raised by the Audit Committee:

Performance agreements and assessments should be concluded for all management. Training on SMART indicators and targets should be conducted. The PMS Policy should be submitted to the Council for approval. The annual report should be developed in line with Circular 63 of the National Treasury The remedial actions on performance reports should be put in place on the non-

achieved targets


3.3. RISK MANAGEMENT

The STLM has the Chief Risk Officer in the Office of the Municipal Manager to coordinate Risk Management activities in the municipality.

In workshop held on July 2016, the STLM embarked on a wide enterprise risk assessment for strategic and operational risks that might have impact on achieving the desired organizational objectives. The Audit Committee recommended the following:

The accounting officer should capacitate Risk Management Unit and solicit support from the District to ensure the functional Risk Management

3.4. QUARTERLY FINANCIAL REPORTS

The Audit Committee reviewed the Quarterly Performance Information Reports and Quarterly Financial Reports required in terms of relevant prescripts. The quality of the quarterly reports submitted by management during the year in terms of Section 71 of the MFMA was acceptable.

3.5. EVALUATION OF ANNUAL FINANCIAL STATEMENTS

On the meeting held on the 29 August, the Audit Committee has reviewed and discussed with the management the draft Annual Financial Statements (AFS) to be submitted to the Auditor-General.

The Audit Committee has:

Assessed the fair presentation and disclosure, consistent application of accounting policies and compliance with National Treasury guidelines, MFMA and Generally Recognised Accounting Principles (GRAP).

provided comments and recommended corrections to management prior to the submission of Financial Statements to the Auditor-General

Held discussions with the Auditor-General and the Accounting Officer on the AFS. Reviewed the Auditor-General’s audit report, management letter and management’s

response. Reviewed the external auditors’ report and management’s response; Reviewed any significant adjustments resulting from external audit queries and

accepted unadjusted audit differences.

The Audit Committee concurs and accepts the conclusions of the Auditor-General on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the Auditor-General.


4. CONCLUSION

The Audit Committee acknowledges the cooperation and assistance by the district municipality and Internal Audit unit of Steve Tshwete Local Municipality for coordinating the activities of the Committee. We also wish to acknowledge the commitment shown by the Acting Municipal Manager and management of Steve Tshwete Local Municipality in strengthening corporate governance and hoping to reclaim the clean audit outcomes.

Municipal Audit Committee Recommendations Date of Committee Committee recommendations during Recommendations adopted (enter

Yes) If not adopted (provide explanation)

2014/2015

November 2015

The Chairperson/Member of the Audit Committee should form part of the short listing and Interviews process during the appointment of the Senior Internal Auditors to enable the Internal Audit unit to implement the plan. Yes

March 2016 The Steve Tshwete ICT Department should benchmark with the Nkangala District on ICT Audit Action Plan. Yes

January 2016

The remedial actions on Performance Reports should be put in place on the non-achieved targets. The annual report should be developed in line with Circular 63 of the National Treasury. Yes

March 2016 The PMS Policy should be submitted to the Council for approval. Yes

July 2015 The accounting officer should capacitate Risk Management Unit and solicit support from the District to ensure the functional Risk Management. Yes

July 2015 Performance agreements and assessments should be concluded for all management. Training on SMART indicators and targets should be conducted. Yes

July 2015 Related ICT policies should be clustered with the others. There should be Social Network policy.

May 2016 Steve Tshwete Local Municipality need to have investment committee

May 2016 The Audit committee requested the CFO to submit the investment policy to Audit Committee meeting for noting.

May 2016 The MSP (Master System Plan) should be submitted to the Audit Committee meeting. Yes

March 2016 Management should put controls in place to ensure that Disciplinary Board is functioning as required by the municipal regulations.

March 2016

The security guards should be provided in strategic places to avoid burglary around the municipality. The municipality needs to put an action plan in place to address the shortcomings on the audit opinion. yes

March 2016

The matter of vacant critical positions in the municipality which are: - Executive Director: Corporate Services. - Executive Director: Infrastructure Services. - Deputy Director: Licensing - Municipal Manager - Director : Electrical services - Director: civil Engineering Should be escalated to the political leadership of the municipality as it is viewed in the serious light by the Committee and has strong implications on service delivery.

Mr MA Mmapheto Chairperson of the Audit Committee March 2017


APPENDIX H: LONG-TERM CONTRACTS AND PUBLIC-PRIVATE PARTNERSHIP

Long Term Contracts (20 Largest Contracts Entered into during 2015/2016 )

Name of Service Provider (Entity or Municipal

Department)

Description of Services Rendered by the Service

Provider

Start Date of Contra

ct

Expiry date of

Contract

Project manager

Contract Value

Utilities World Pre-paid vending service provider

T H.1

APPENDIX I – MUNICIPAL ENTITY/SERVICE PROVIDER PERFORMANCE SCHEDULE

The municipality does not have any entities and no service providers


178

APPENDIX J – DISCLOSURE OF FINANCIAL INTEREST Abbreviations FS: Financial Services CPS: Community Protection Services IS: Infrastructure Development & Service Delivery CS: Corporate Services EHP: Environmental Health, Public Facilities & Cultural Services SDH: Spatial Development, Human Settlement & Housing Administration MMC: Member of Mayoral Committee PR: Proportional Councillor

DISCLOSURE OF FINANCIAL INTERESTS

PERIOD: 1 JULY 2015 – 30 JUNE 2016

POSITION SURNAME NAME

Description of Financial Interest (Nil/or details)

1 Executive Mayor (PR)

Masina Michael Amos Nil

2 MMC: IS (Ward 21)

Mahlangu Ntombikayise Jeanette Nil

3 MMC: FS (Ward 3)

Mathebula Elphus Fani Nil

4 MMC: EHP (PR)

Motsepe Diphale Joseph Owner – vacant land – JS287 Middelburg Pension – Old Mutual

5 MMC: SDH (PR)

Nkadimeng Semakaleng Dorah Nil

6 MMC: CPS (Ward 19)

Nkosi Ernest Philile Nil

7 MMC: CS (PR)

Pilodia Helena Thos Begbie Employees Trust (Non Profitable Trustee) Owner of residential property in Aerorand

8 Speaker (PR)

Xaba Robert Mphikeleli Landlord – Residential Erf 4876 Ext 2

9 Chief Whip (PR)

Ndala Busisiwe Paulina Nil

10 Ward 1 Skhosana Doctor Joseph Nil 11 Ward 2 Khanyile Doctor Stephans Nil 12 Ward 4 Nyambi Mgevu Edward Nil 13 Ward 5 Malinga Obedient Nil 14 Ward 6 Mkhuma Lali Elijah Nil 15 Ward 7 Matshiane Johan Nil 16 Ward 8 Skosana Badanile Christinah Construction Company: Mkhokhotshelwa (Pty) Ltd 17 Ward 9 Skosana Johannes Employee: Shanduka

Close Corporation : 1Blackman Services & Supplies 18 Ward 10 Longman Deborah Maleoto Pension - GEPF 19 Ward 11 Struwig Ammelia Nil 20 Ward 12 Niemann Hendrik Frederick Owner - Residential stand in Aerorand

Employee: Pro-Eng Consulting Engineers 21 Ward 13 Wait Susan-Mari Close Corporation – Steptique Retail






Sanmaris Clothing – Sole Member Member of Wait Family Trust Owner – 2 Residential properties in Groenkol

22 Ward 14 Pretorius Jozua Petrus Owner/Landlord Residential property – Golfsig 23 Ward 15 Langeveld Trevor Robert Future Achievers Academy Trust – Black community school 24 Ward 16 Dyason Johann Owner residential property – Kanonkop 25 Ward 17 Sekgwele Marumo Jim Financial interest in business undertaking - Streettrading 26 Ward 18 Thwala Phumaphi Irene Close Corporation – YWBN

Mnyamande Trust 27 Ward 20 Lukhele Sipho Azariah Pension – Provident Fund 28 Ward 22 Motebu Matthews Sipho Close Corporation – Diratilwe Trading and Projects 29 Ward 23 Selala Mpoetse Josiah Special Pension 30 Ward 24 Tau Precious Poppy Nil 31 Ward 25 Mbatiwe Michael Owner – Industrial Stand in Mhluzi Ext 2 32 Ward 26 Hadebe Philemon Madoda Nil 33 Ward 27 Manzini Lemeko Isaac Trust Shareholder – Pawa Assets 34 Ward 28 Morufane Thabang Nathaniel Nil Ward 29 Mathibela Maria Nomgqibelo Nil 35 PR Mahlangu Thobile Blessed Nil PR Jele Eskie Agnes Luvuno Trust Investment 36

PR Masilela

Peter Jika

Employee: Eskom Arnot Close Corporation : Aptali Funeral Services

37 PR Mnguni Mmamotsana Refilwe Nil 38 PR Mnguni Muka Thandi Elizabeth Representative at NDM 39 PR Mnguni (Malipeng) Sonto Martha Nil 40 PR Monareng Kweba Nellah Nil 41 PR Mtshweni Zabakona David Nil 42 PR Selala Martha Thandi Nil 43 PR Shongwe Petrus Mduduzi Nil 44 PR Zitha Sonto Sarah Nil 45 PR Mokoena Ben Hamelton (resigned on 27 May 2016) Sole member - Breakeven Guesthouse

Trustee Mokoena Family Trust Director - HEDC 2 Residential: Arafat Special Pension

46 PR Du Toit Elizabeth Owner of Residential property – Cape Agulhas Owner of Vacant land – Cape Agulhas

47 PR Grobler Anna Sophia Trustee – Grobler Family Trust Dietetic Practitioner – Grobler & Ass Owner – Residential property in Clubville






48 PR Mobango Palesa Nil 49 PR Mogola Sophia Mamy Nil 50 PR Ndlangamandla Thokozane Goodwill (resigned on

2 September 2015) Nil

51 PR Msimango Gloria Zanele (replaced Cllr Ndlangamandla) Nil 52 PR Mlambo Ngcede Joseph Close Corporation - Fastice Building Contractor Trucking Scrap Metal 53 PR Sithole Paulina Nicolene Nil 54 PR Van Zyl Thomas Nicolaas Nil 55 PR Romijn Gysbertus Hendrik Ernest Trustee – English Medium High School Trust Fund

Owner of residential property: Golfsig State Pension

56 PR Roos Stephanus Johannes 100% shares in R en W Drankwinkel (Pty) Ltd Owner of residential property in Golfsig

57 PR Uys Karel Philippus Jacob Nil 58 PR Uys Karel Philippus Jacob Nil


181

APPENDIX K(I) – REVENUE COLLECTION PERFORMANCE BY VOTE

Revenue Collection Performance by Vote

Vote Description

2014/2015 Current: 2015/2016 2015/2

016Variance


Adjusted Budget

Actual Original

Budget

Adjustments Budge

t Vote 1 - Executive &

Council R 46 912 130 R 57 503 329 R 59 478 624 R 55 526 689 -3% -7%

Vote 2 - Budget & Treasury R 324 972 502R 339 903

781R 344 710

481R 364 628

070 7% 6%

Vote 3 - Corporate Services R 80 786 326 R 90 611 521

R 113 615 354 R 35 405 458

-61% -69%

Vote 4 - Planning Development R 1 791 876 R 6 073 097 R 2 856 547 R 18 096 962

198% 534%

Vote 5 - Health Services R 294 099 R 299 700 R 299 700 R 491 561 64% 64%

Vote 6 - Community & Social Services R 3 264 182 R 4 493 558 R 4 338 358 R 4 186 425

-7% -4%

Vote 7 - Human Settlements R 8 095 221 R 1 107 434 R 1 107 434 R 452 630

-59% -59%

Vote 8 - Public Safety R 14 586 398 R 22 665 597 R 19 657 470 R 25 953 430 15% 32%

Vote 9 - Sport & Recreation R 4 771 916 R 3 901 740 R 3 652 178 R 3 630 047

-7% -1%

Vote 10 - Waste Management R 92 676 254

R 105 843 698

R 107 642 499

R 113 681 670

7% 6%

Vote 11 - Waste Water Management R 103 005 469

R 103 873 863

R 105 478 317 R 95 497 956

-8% -9%

Vote 12 - Road Transport R 71 475 379 R 50 651 382 R 48 609 284 R 45 938 019 -9% -5%

Vote 13 - Water R 94 321 800R 118 332

358R 123 915

857R 125 152

230 6% 1%

Vote 14 - Electricity R 521 399 079R 569 682

082R 572 786

522R 531 505

203 -7% -7%

Total Revenue by Vote R1 368 352 629R1 474 943

140R1 508 148

625R1 420 146

349 -4% -6%

Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A3 T K.1


APPENDIX K(II) – REVENUE COLLECTION PERFORMANCE BY SOURCE

Revenue Collection Performance by Source

Description

2014/2015 2015/2016 2015/201

6Variance


Adjustments Budget


Adjustments Budge

t

Property rates R 282 793

098R 301 305

502R 305 305

502 R 308 610 464 2% 1%

Service Charges - electricity revenue

R 485 127 055

R 538 663 982

R 542 468 352 R 501 660 536

-7% -8%

Service Charges - water revenue R 69 267 051 R 81 422 403 R 82 923 704 R 79 250 474

-3% -4%

Service Charges - sanitation revenue R 65 266 509 R 68 300 892 R 68 785 009 R 68 678 824

1% 0%

Service Charges - refuse revenue R 69 904 155 R 78 401 695 R 79 001 695 R 79 161 256

1% 0%

Rentals of facilities and equipment R 32 125 451 R 35 867 521 R 16 756 840 R 17 361 356

-52% 4%

Interest earned - external investments R 24 304 500 R 21 381 260 R 22 381 260 R 39 770 333

86% 78%

Interest earned - outstanding debtors R 2 111 143 R 1 967 516 R 1 967 516 R 2 860 040

45% 45%

Fines R 13 868 678 R 16 949 165 R 13 996 165 R 17 015 677 0% 22%

Licences and permits R 9 225 372 R 8 909 130 R 8 919 630 R 8 852 341 -1% -1%

Agency services R 15 909 082 R 15 295 120 R 15 595 120 R 17 659 784 15% 13%

Transfers recognised - operational

R 115 805 992

R 126 295 300

R 126 395 300 R 125 385 666

-1% -1%

Other revenue R 67 537 005 R 68 021 321R 115 687

904 R 33 371 773 -51% -71%

Gains on disposal of PPE R 2 588 777 R 150 000 R 150 000 R 1 488 576

892% 892%

Environmental Protection Total Revenue (excluding capital transfers and contributions)

R1 255 833 868

R 1 362 930 807

R 1 400 333 997

R 1 301 127 097

-5% -7%

Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A4. T K.2


APPENDIX L – CONDITIONAL GRANTS RECEIVED (EXCLUDING MIG

Conditional Grants: excluding MIG

Details

Budget Adjustments Budget

Actual Variance Purpose of Grant

Budget Adjustments

Budget

Equitable Share 119 935 000 119 935 000 119 935 000 0% 0%

The purpose of the grant is to provide free basic services to indigent households.

Finance Management grant

1 600 000 1 600 000 1 524 743 -5% -5%

This grant is used to promote and support reforms to municipal financial management and to fund the internship programme.

Municipal Systems Improvement

940 000 940 000 940 000 0% 0%

This grant is used to build in-house capacity and to stabilise institutional and government systems as well as to implement and support ward committee system.

EPWP 1 583 000 1 583 000 1 554 809 -2% -2%

This grant is used for a special performance-based incentive to create job opportunities to previously unemployed people.

Municipal Infrastructure Grant

48 094 000 48 094 000 46 189 369 -4% -4%

This grant is used for basic municipal infrastructure to provide basic services for the benefit of poor households

INEP 15 400 000 15 400 000 12 048 302 -22% -22%

This grant is used to address the electrification backlog of occupied residential dwellings and the installation of bulk infrastructure.

Total


COMMENT ON CONDITIONAL GRANTS EXCLUDING MIG

Purpose for grants are indicated next to each grant


APPENDIX M (I, II) – CAPITAL EXPENDITURE -NEW ASSETS PROGRAMME AND UPGRADE/RENEWAL PROGRAMME

Capital Expenditure - New Assets Programme* Description 2014/201

5 2015/2016 Planned Capital expenditure


Adjustment

Budget

Actual Expendit

ure

2016/2017

2017/2018

2018/2019

Capital expenditure by Asset Class Infrastructure - Total

R 131 668 849

R 3 150 000

R 1 295 900

R 157 761 347

R 143 721 354

R190 139 210

R 181 262 715

Infrastructure: Road transport - Total

R 44 701 746 R - R -

R 49 172 945

R 52 272 000

R 49 015 460

R 49 514 370

Roads, Pavements & Bridges

R 38 207 699 R - R -

R 42 678 898

R 43 372 000

R 37 635 460

R 40 554 370

Storm water R 6

494 047 R - R - R 6

494 047 R 8 900

000 R 11

380 000 R 8 960

000 Infrastructure: Electricity - Total

R 38 661 692 R - R -

R 38 695 961

R 13 744 354

R 34 352 500

R 15 662 625

Transmission & Reticulation

R 35 701 710 R - R -

R 35 735 979

R 8 204 354

R 29 902 500

R 11 162 625

Street Lighting

R 2 959 982 R - R -

R 2 959 982

R 5 540 000

R 4 450 000

R 4 500 000

Infrastructure: Water - Total

R 29 366 133 R - R -

R 45 031 651

R 15 725 000

R 43 885 000

R 49 782 620

Dams & Reservoirs R - R - R -

R 15 493 210 R -

R 4 250 000

R 4 750 000

Water purification

R 6 521 603 R - R -

R 6 396 031 R - R - R -

Reticulation R 22

844 530 R - R - R 23

142 410 R 15

725 000 R 39

635 000 R 45

032 620 Infrastructure: Sanitation - Total

R 12 957 606 R - R -

R 18 291 819

R 58 670 000

R 61 686 250

R 65 583 100


Reticulation R 12

706 106 R - R - R 12

706 106 R 11

670 000 R 1 686

250 R 5 583

100 Sewerage purification

R 251 500 R - R -

R 5 585 713

R 47 000 000

R 60 000 000

R 60 000 000

Infrastructure: Other - Total

R 5 981 672

R 3 150 000

R 1 295 900

R 6 568 971

R 3 310 000

R 1 200 000

R 720 000

Waste Management

R 5 780 617

R 2 000 000

R 888 900

R 6 367 916

R 2 310 000

R 200 000

R 220 000

Transportation R - R - R - R - R - R -

R 500 000

Other R 201

055 R 1 150

000 R 407

000 R 201

055 R 1 000

000 R 1 000

000 R - Community - Total

R 7 819 932

R 8 645 000

R 8 581 000

R 7 819 932

R 9 340 000

R 19 426 500

R 23 627 400

Parks & gardens

R 580 571

R 600 000

R 600 000

R 580 571

R 1 805 000

R 2 210 000

R 2 115 700

Sportsfields & stadia

R 2 499 985

R 2 500 000

R 2 500 000

R 2 499 985

R 2 000 000

R 2 000 000

R 2 000 000

Swimming pools R - R - R - R - R - R - R - Community halls

R 307 018

R 500 000

R 350 000

R 307 018

R 500 000

R 10 000 000

R 7 299 000

Libraries R - R - R - R - R - R - R - Recreational facilities R - R - R - R - R - R - R -

Fire, safety & emergency R - R - R - R - R - R - R - Security and policing

R 673 835

R 1 115 000

R 1 111 000

R 673 835

R 1 785 000

R 1 286 500

R 1 362 700

Cemeteries R 3

758 523 R 3 930

000 R 4 020

000 R 3

758 523 R 3 250

000 R 3 930

000 R 10

850 000 Table continued next page


Table continued from previous page

Capital Expenditure - New Assets Programme* Description

2014/2015

2015/2016 Planned Capital expenditure


Adjustm

ent Budget

Actual Expendit

ure

2016/201

7

2017/201

8

2018/201

9

Capital expenditure by Asset Class

Heritage assets - Total R - R - R - R - R - R - Investment properties - Total R - R - R - R - R - R -

Other assets

R 13 895 794

R 6 835 000

R 13 523 420

R 33 996 641

R 9 188 500

R 7 642 500

R 7 372 685

General vehicles

R 2 102 488

R 705 000

R 1 415 000

R 1 372 646

R 1 140 000 R -

R 520 000

Specialised vehicles

R 6 067 247 R - R -

R 6 067 247

R 1 700 000 R - R -

Plant & equipment

R 1 765 704

R 2 945 000

R 5 288 000

R 1 590 852

R 4 291 000

R 4 052 000

R 5 234 350

Computers - hardware/equipment

R 580 576

R 1 222 000

R 1 345 500

R 1 194 825

R 1 598 000

R 1 646 250

R 1 214 560

Furniture and other office equipment

R 474 139

R 543 000

R 656 000

R 643 326

R 459 500

R 479 250

R 403 775

Civic Land and Buildings

R 2 796 027

R 850 000

R 4 188 920

R 2 880 132 R - R - R -

Other Buildings

R 109 613

R 570 000

R 630 000

R 109 613 R -

R 1 465 000 R -

Other Land R - R - R - R 20

138 000 R - R - R - Agricultural assets R - R - R - R - R - R - Biological assets R - R - R - R - R - R -

Intangibles R - R - R - R - R 1 700

000 R - R -


Computers - software & programming R - R - R - R -

R 1 700 000 R - R -

Total Capital Expenditure on new assets

R 153 384 575

R 18 630 000

R 23 400 320

R 199 577 920

R 163 949 854

R217 208 210

R 212 262 800


R 6 067 247 R - R -

R 6 067 247

R 1 700 000 R - R -

Refuse R - R - R - R - R 1 700

000 R - R -

Fire R 6

067 247 R - R - R 6

067 247 R - R - R - * Note: Information for this table may be sourced from MBRR (2009: Table SA34a) T M.1

Capital Expenditure - Upgrade/Renewal Programme*

Description

2014/2015

2015/2016 Planned Capital expenditure


Adjustment

Budget

Actual Expendit

ure

2016/2017

2017/2018

2018/2019

Capital expenditure by Asset Class Infrastructure - Total

R 46 505 217

R 5 540 764

R 5 507 764

R 46 140 684

R 38 125 000

R 46 184 300

R 41 742 850

Infrastructure: Road transport -Total

R 10 272 259 R - R -

R 10 501 547

R 13 450 000

R 13 600 000

R 11 800 000

Roads, Pavements & Bridges

R 10 272 259 R - R -

R 10 501 547

R 13 450 000

R 13 600 000

R 11 800 000

Storm water R - R - R - R - R - R - R - Infrastructure: Electricity - Total

R 12 163 607 R - R -

R 12 163 607

R 16 550 000

R 20 639 300

R 12 580 000

Transmission & Reticulation

R 11 179 669 R - R -

R 11 179 669

R 15 000 000

R 19 739 300

R 11 680 000


Street Lighting

R 983 938 R - R -

R 983 938

R 1 550 000

R 900 000

R 900 000

Infrastructure: Water - Total

R 8 920 926 R - R -

R 8 623 046

R 5 890 000

R 6 260 000

R 9 147 100

Dams & Reservoirs

R 29 770 R - R -

R 29 770

R 80 000 R - R -

Water purification R - R - R - R - R - R - R -

Reticulation R 8

891 156 R - R - R 8

593 276 R 5 810

000 R 6 260

000 R 9 147

100 Infrastructure: Sanitation - Total

R 14 563 672 R - R -

R 9 355 030

R 1 550 000

R 1 175 000

R 2 670 000

Reticulation R 119

477 R - R - R 119

477 R 230

000 R 235

000 R 240

000 Sewerage purification

R 14 444 195 R - R -

R 9 235 553

R 1 320 000

R 940 000

R 2 430 000

Infrastructure: Other - Total

R 584 753

R 5 540 764

R 5 507 764

R 5 497 454

R 685 000

R 4 510 000

R 5 545 750

Waste Management

R 584 753

R 5 540 764

R 5 507 764

R 5 497 454

R 685 000

R 4 510 000

R 5 545 750

Other R - R - R - R - R - R - R -

Community R 6

065 317 R 6 585

000 R 6 730

935 R 6

065 317 R 5 515

000 R 7 335

000 R 7 180

000 Parks & gardens

R 1 696 170

R 1 700 000

R 1 700 000

R 1 696 170

R 780 000

R 1 300 000

R 2 730 000

Sportsfields & stadia

R 594 936

R 830 000

R 968 935

R 594 936

R 1 650 000

R 2 350 000

R 3 400 000

Swimming pools R - R - R - R - R - R - R - Community halls R - R - R - R - R - R - R -

Libraries R - R - R - R - R - R - R - Recreational facilities R - R - R - R - R - R - R -

Fire, safety & emergency

R 495 000

R 500 000

R 500 000

R 495 000 R - R - R -

Security and policing

R 2 960 561

R 3 155 000

R 3 162 000

R 2 960 561

R 3 085 000

R 3 685 000

R 1 050 000

Cemeteries R 318

650 R 400

000 R 400

000 R 318

650 R - R - R - Heritage assets R - R - R - R - R - R -

Buildings Other


Table continued next page Table continued from previous page

Capital Expenditure - Upgrade/Renewal Programme*

Description

2014/201

5 2015/2016 Planned Capital expenditure


Adjustm

ent Budget

Actual Expendit

ure

2016/201

7

2017/201

8

2018/201

9

Capital expenditure by Asset Class

Investment properties R - R - R - R - R - R - Housing development Other assets

R 20 318 501

R 29 006 500

R 35 098 070

R 22 649 321

R 22 851 000

R 26 661 000

R 22 979 425

General vehicles

R 5 219 769

R 6 360 000

R 7 046 070

R 5 949 611

R 4 925 000

R 5 395 000

R 5 200 000


R 3 769 365

R 11 320 000

R 11 755 000

R 3 769 365

R 5 000 000

R 10 000 000

R 8 200 000

Plant & equipment

R 6 289 596

R 7 282 000

R 8 886 930

R 6 473 015

R 9 493 000

R 7 928 000

R 5 662 425

Computers - hardware/equipment

R 1 628 923

R 740 000

R 1 072 000

R 1 014 674

R 1 390 000

R 530 000

R 890 000

Furniture and other office equipment

R 133 720

R 54 500

R 86 500

R 893 236

R 76 000

R 588 000

R 450 000

Civic Land and Buildings

R 3 277 128

R 3 250 000

R 6 251 570

R 4 549 420

R 1 967 000

R 2 220 000

R 2 177 000

Other Buildings R - R - R - R - R - R -

R 400 000

Other Land R - R - R - R - R - R - R - Agricultural assets R - R - R - R - R - R - Biological assets R - R - R - R - R - R -

Intangibles R - R - R - R - R 750

000 R - R -


Computers - software & programming R - R - R - R -

R 750 000 R - R -

Total Capital Expenditure on renewal of existing assets

R 72 889 035

R 41 132 264

R 47 336 769

R 74 855 322

R 67 241 000

R 80 180 300

R 71 902 275


R 3 769 365

R 11 320 000

R 11 755 000

R 3 769 365

R 5 000 000

R 10 000 000

R 8 200 000

Refuse R - R 6 600

000 R 7 035

000 R - R 5 000

000 R 5 500

000 R 6 000

000

Fire R 3

769 365 R 4 720

000 R 4 720

000 R 3

769 365 R - R 4 500

000 R 2 200

000 * Note: Information for this table may be sourced from MBRR (2009: Table SA34b) T M.2

226 273

610 59 762

26470 737

089274 433

242231 190

854297 388

510 284 165

075

APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 2015

Capital Programme By Project: Capital Project Responsibl

e Department

Project Number

Original Budget

Adjustment Budget

Actual Variance

Original

Budget%

Variance Adjusted Budget%

Upgrade Network Backbone Infrastructure & Voip

Ict Services 0000001

R350 000 R450 000 R353 951 1% -21%

Expansion Fontein Cemeteries

Roads & Storm water 0000012

R800 000 R800 000 R799 995 0% 0%

Upgrade Old Age Flats Municipal Buildings 0000013

R400 000 R400 000 R383 425 -4% -4%

Replace 11kv Switchgear Electricity 0000029 R - R1 300 000 R714 739 100% -45%

Develop Cemeteries Rural/Low Income Areas


R2 500 000 R2 500 000 R2 239

050 -10% -10%

Sanitation Kwaza Ext 8(400 Stands)

Civil Engineer - Sewer 0000070

R 2 200 560 R 2 895

640 R 2 895

640 32% 0%

Parks Vehicles Tractor 55kw

Parks & Recreation 0000080

R 300 000 R 300 000 R 276

368 -8% -8%


Refurbish Sport Clubhouses

Municipal Buildings 0000129

R - R 138 935 R 135

763 100% -2%

Water Network Kwaza Ext 8 (400 Stands)

Civil Engineer - Water 0000150

R 1 852 316 R 4 174

766 R 4 132

548 123% -1%

Electrification Rockdale Ext 2

Electricity 0000162

R 9 876 000 R 5 710

000 R 4 294

018 -57% -25%

Lawnmower (Pavements) Parks & Recreation 0000203

R 105 000 R 100 000 R 99

020 -6% -1%

Paving & Kerbs - Hendrina/Kwaza


R 200 000 R 200 000 R 195

435 -2% -2%

Rescue Jacks Emergency Services 0000209

R 70 000 R 49 797 R 49

796 -29% 0%

New Roads-Kranspoort Roads & Storm water 0000218

R 1 300 000 R 1 300

000 R 1 287

555 -1% -1%

New Garages For 6 Vehicles

Electricity 0000241

R - R 394 484 R 387

741 100% -2%

Upgrade Traffic Signals - Control & Synchronisation

Traffic 0007150

R 900 000 R 1 156

000 R 229

288 -75% -80%

Lawnmower Tractor (Pavements)


R 500 000 R 500 000 R 412

100 -18% -18%

New Networks Aerorand West


R - R 1 900

000 R 1 474

825 100% -22%

Surbsurface Drains Hendrina Kwaza


R 350 000 R 350 000 R 347

736 -1% -1%

RDP House Connections Newtown/Kwaza/X24/X6

Electricity 0007423

R 160 000 R 160 000 R 45

211 -72% -72%

Ups Ict Services 0007526

R 180 000 R 180 000 R 160

049 -11% -11%

Server - New It Systems Ict Services 0008003

R 210 000 R 210 000 R 207

638 -1% -1%

Upgrade Buildings: Air Conditioners Civic Centre


R 100 000 R 100 000 R 96

020 -4% -4%

Traffic-calming Measures In Mp313 Area

Traffic 0008013

R 300 000 R 300 000 R 299

788 0% 0%

Vehicle Replacement Traffic 0008015

R 1 000 000 R 1 000

000 R 957

168 -4% -4%

Purchase Motorbikes X 6 Human Settlement 0008021

R 150 000 R 150 000 R 149

870 0% 0%

Skid Units Emergency Services 0008024

R 62 000 R 50 000 R 45

656 -26% -9%

Pool Equipment Middelburg/Mhluzi


R 80 000 R 80 000 R 74

470 -7% -7%

Fence & Gates Kees Taljaard


R 350 000 R 350 000 R 218

748 -38% -38%

New Playing Equipment Parks & Recreation 0008032

R 100 000 R 100 000 R 97

063 -3% -3%

Bridges - Upgrading (Bms)


R 400 000 R 400 000 R 398

909 0% 0%

Roads New - Aerorand Wes


R 8 000 000 R 8 000

000 R 7 999

133 0% 0%

Replace Old Sewerline Middelburg/Mhluzi


R 140 000 R 126 000 R 119

477 -15% -5%


Replace Sewer Pumps - Pumpstations


R 420 000 R 420 000 R 409

942 -2% -2%

Install Bulk Flow Meters Civil Engineer - Water 0008055

R 65 000 R 65 000 R 52

242 -20% -20%

Replace Old Water Pipes Middelburg


R 1 530 000 R 2 300

000 R 1 253

094 -18% -46%

Upgrade Vaalbank Wtp Equipment


R 510 000 R 1 710

000 R 1 645

148 223% -4%

Replace Old Water Pipes Hendrina/Kwaza


R 125 000 R 125 000 R 115

269 -8% -8%

Replace Vehicles For Water And Sewer

Civil Engineer 0008066

R 780 000 R 743 035 R 743

035 -5% 0%

Replacement Of Ppm’s Electricity 0008068

R 150 000 R 150 000 R 146

345 -2% -2%

Replace Meter Kiosks Electricity 0008071

R 200 000 R 200 000 R 190

721 -5% -5%

Install Ring Main Units Electricity 0008077

R 700 000 R 700 000 R 700

000 0% 0%

Network Reinforcement (Replace Cable )

Electricity 0008079

R 1 200 000 R 1 200

000 R 624

616 -48% -48%

Maintaining Infrastructure Assets At Kwaza Wwtw


R 200 000 R 200 000 R 144

611 -28% -28%

Refurbish Infrastructure Assets Blinkpan Wwtw


R 200 000 R 300 000 R 127

164 -36% -58%

Refurbish Infrastructure Assets Komati Wwtw


R 200 000 R 350 000 R 208

084 4% -41%

Upgrade of Existing High Masts

Electricity 0008098

R 200 000 R 400 000 R 363

709 82% -9%

Ldv ‘S Replacement Electricity 0008108

R 950 000 R 950 000 R 777

615 -18% -18%

Replace Fencing Airfield Municipal Buildings 0008127

R 1 500 000 R 1 500

000 R 1 410

200 -6% -6%

Ldv One Ton Parks & Recreation 0008131

R 180 000 R 180 000 R 174

704 -3% -3%

Paving & Kerbs - Villages & Rural


R 200 000 R 200 000 R 198

040 -1% -1%

Paving & Kerbs - Middelburg


R 250 000 R 250 000 R 240

024 -4% -4%

Roads General - Taxi Lay-bys


R 300 000 R 300 000 R 299

999 0% 0%

Communication(Add Radio Links To External Stations


R 350 000 R 550 000 R 528

250 51% -4%

Replace Old Water Meters


R 200 000 R 200 000 R 198

759 -1% -1%

Treatment Plants Hendrina/Kwaza


R 20 000 R 20 000 R 19

420 -3% -3%

Outfall Sewer Lines: Mall & German Development


R 450 000 R 450 000 R - -100% -100%


Gholfsig Supply Area Electricity 0008170

R - R 1 700

000 R 1 159

552 100% -32%

Extension 11: Industrial Erven Connections & Munis

Electricity 0008176

R 1 000 000 R 850 000 R 849

090 -15% 0%

Storm water - Aerorand Wes


R 2 000 000 R 2 000

000 R 1 997

491 0% 0%

Sewerage Connections Civil Engineer - Sewer 0008184

R 205 020 R 105 020 R 58

424 -72% -44%

Polisher Stakeholder 0008187

R 185 000 R 150 000 R 145

794 -21% -3%

Electrical Connections Pre Paid

Electricity 0008189

R 2 060 000 R 2 060

000 R 1 674

733 -19% -19%

Bulk Connections Electricity 0008190 R 400 000 R 400 000 R - -100% -100%

Purchase Books Education And Libraries 0008192

R 440 000 R 440 000 R 345

030 -22% -22%

Asphalt Cutter Roads & Storm water 0008196

R 25 000 R 25 000 R 21

490 -14% -14%

Computer Systems Ict Services 0008197

R 565 000 R 565 000 R 537

494 -5% -5%

Printers Ict Services 0008198

R 50 000 R 80 000 R 76

755 54% -4%

Scanners Ict Services 0008199

R 60 000 R 53 500 R 53

223 -11% -1%

New Water Connections Civil Engineer - Water 0008201

R 850 000 R 1 400

000 R 1 258

246 48% -10%

Portable Guard Houses (1)

Security 0008202

R 32 000 R 32 000 R 29

910 -7% -7%

Replace Mini Substations Electricity 0008206

R 800 000 R 800 000 R 751

444 -6% -6%

Replace Mv Cable Electricity 0008212

R 2 000 000 R 1 290

000 R 1 271

440 -36% -1%

Roads New - Hendrina Roads & Storm water 0008219

R 1 900 000 R 1 900

000 R 1 796

203 -5% -5%

Roads General - Slipways Right Turn & Intersection

Roads & Storm water

0008221 R 6 500 000

R 9 313 455

R 9 313 372

43% 0%

Nasaret New Substation Electricity 0008224

R 9 000 000 R 13 920

060 R 13 329

053 48% -4%

Sanitation Services-Rural Settlements - Biological


R 900 000 R 894 000 R 893

335 -1% 0%

Replace Valves In Bulk Supply Lines


R 210 000 R 710 000 R 318

881 52% -55%

Water Services: Rural Area


R 235 000 R 335 000 R 297

880 27% -11%

Electrical Connections Bulk

Electricity 0008275

R 850 000 R 850 000 R 847

389 0% 0%

Executive Support Vehicle

Legal & Admin 0008296

R 850 000 R 1 590

000 R 729

842 -14% -54%

Furniture & Equipment Traffic 0008300 R 8 000 R 8 000 R 7 037 -12% -12%

Replace Pump At Middelburgdam Pumpstation


R 860 000 R 700 000 R - -100% -100%


Upgrading Boskrans Waste Treatment Plant Equipment


R 150 000 R 150 000 R 145

693 -3% -3%

Brushcutters And Chainsaws


R 118 000 R 118 000 R 115

905 -2% -2%

Replace Mercedes Fire Engine

Emergency Services 0900087

R 3 200 000 R 3 200

000 R 3 190

721 0% 0%

80 Mm Water Pump Civil Engineer - Water 0900096

R 32 000 R 32 000 R 29

920 -7% -7%

Stihl Brushcutters Civil Engineer - Water 0900105

R 20 000 R 15 000 R 13

383 -33% -11%

Office Furniture Human Resources 0900131

R 12 000 R 12 000 R 11

762 -2% -2%

Office Furniture Parks & Recreation 0900159

R 90 000 R 90 000 R 87

721 -3% -3%

Furniture Legal & Admin 0900181

R - R 70 000 R 59

820 100% -15%

Roll-On Roll-Off Containers

Solid Waste Management 0900206

R 200 000 R 165 000 R 144

016 -28% -13%

Roads Reseal - Middelburg/Mhluzi


R 8 400 000 R 8 400

000 R 8 391

352 0% 0%

Roads Reseal - Rural And Eskom Towns


R 1 000 000 R 1 000

000 R 999

727 0% 0%

Upgrade Boskrans Sewer Plant


R 20 000 000

R 26 600 000

R 8 093 170

-60% -70%

Replace Equipment Roads & Storm water 0900251

R 30 000 R 30 000 R 27

970 -7% -7%

Furnitur & Office Equipment

Finance 0900260

R 80 000 R 80 000 R 77

975 -3% -3%

Replace Vehicles Parks & Recreation 1000004

R 740 000 R 740 000 R 730

197 -1% -1%

Replace Playing Equipment


R 100 000 R 100 000 R 97

063 -3% -3%

Firearms Traffic 1000060

R 40 000 R 36 000 R 31

213 -22% -13%

Furniture Education And Libraries 1000069

R 80 000 R 80 000 R 69

601 -13% -13%

Storm water Middelburg Roads & Storm water 1000076

R 1 000 000 R 1 000

000 R 999

169 0% 0%

Purchase Of 1.75 Cub Containers


R 350 000 R 350 000 R 346

800 -1% -1%

Edge Beams - Primary/Secondary Routes

Roads & Storm water

1000097 R 250 000 R 250 000

R 249 880

0% 0%

New Equipment Roads Roads & Storm water 1000103

R 50 000 R 50 000 R 39

635 -21% -21%

Storm water Railway Line Roads & Storm water 1000106

R 1 000 000 R 1 000

000 R 998

265 0% 0%

Storm water Kranspoort Roads & Storm water 1000107

R 500 000 R 500 000 R 474

481 -5% -5%

Bulk Filing Cabinets Legal & Admin 1000118

R 125 000 R 125 000 R 69

459 -44% -44%


Rigid Die Set Civil Engineer - Water 1000127

R 50 000 R 50 000 R 43

805 -12% -12%

Mine Water Project Woestalleen Hendrina Pipeline


R 2 000 000 R 1 270

000 R 971

824 -51% -23%



R 800 000 R 1 200

000 R 1 199

755 50% 0%



R 140 000 R 200 000 R 187

665 34% -6%

Storm water Hendrina Roads & Storm water 1000150

R 900 000 R 900 000 R 881

943 -2% -2%

Furniture Legal & Admin 1000155

R 3 000 R 35 000 R 24

583 719% -30%

Rondebosch Sub Electricity 1000170

R - R 2 210

000 R 2 200

885 100% 0%

Upgrade And Install New Air Conditioners


R 150 000 R 135 000 R 130

020 -13% -4%

Projector & Screen Ict Services 1000193

R 17 000 R 17 000 R 13

353 -21% -21%

Purchase Tools Municipal Buildings 1000205

R 100 000 R 100 000 R 87

639 -12% -12%

Vaalbank Water Treatment Plant


R 3 500 000 R 12 610

000 R 6 396

031 83% -49%

New Vehicle Ldv Security 1000219

R 250 000 R 250 000 R 246

540 -1% -1%

Alarm System Security 1000255 R 108 000 R 108 000 R - -100% -100%

Furniture & Equipment - Bulk Filers

Electricity 1000277

R 8 000 R 8 000 R 4 556 -43% -43%

Fencing Outdoor Equipment T3

Electricity 1000278

R 70 000 R 70 000 R 57

895 -17% -17%

Office Equipment & Furniture

Finance 1000282

R 70 000 R 74 000 R 53

890 -23% -27%

Or Tambo Street Landscape & New Development

Parks & Recreation

1000288 R 200 000 R 200 000

R 183 944

-8% -8%

Purchase Of Street Bins Solid Waste Management 1000289

R 78 000 R 70 000 R 66

020 -15% -6%

Replace Old Water Pipes Villages


R 105 000 R 230 000 R 163

616 56% -29%

New Mpcc’s Municipal Buildings 1000303

R - R 350 000 R 307

018 100% -12%

6m3 Tipper Truck Solid Waste Management 1100046

R 800 000 R 825 000 R 819

188 2% -1%

Fences At The Pumpstations


R 400 000 R 400 000 R 352

383 -12% -12%

Flatbed Truck 1.3 Ton Civil Engineer 1100070

R 400 000 R 613 930 R 611

950 53% 0%

Upgrade Kwaza Waste Water Treatment Plant


R 1 500 000 R 260 000 R 251

500 -83% -3%

Subsurface Drainage Villages


R 300 000 R 300 000 R 294

962 -2% -2%


Road New Presidentsrus Roads & Storm water 1100098

R 1 500 000 R 1 500

000 R 1 500

000 0% 0%

Storm water Presidentsrus


R 500 000 R 500 000 R 500

000 0% 0%

Brushcutters Civil Engineer - Water 1100109

R 15 000 R 15 000 R 13

383 -11% -11%

Replace Walkbehind Mowers


R 70 000 R 70 000 R 69

810 0% 0%

Reconstruct Korfball Courts


R 250 000 R 250 000 R 213

333 -15% -15%

Concrete Mixer Roads & Storm water 1100128

R 25 000 R 25 000 R 21

920 -12% -12%

Equipment Roads & Storm water 1100129

R 20 000 R 25 000 R 19

770 -1% -21%

Upgrade Mechanical And Electrical Equipment


R 80 000 R 80 000 R 33

486 -58% -58%

Electrification Industrial Park

Electricity 1100161

R 1 000 000 R 1 000

000 R 886

079 -11% -11%

Replace Seven 88kv Breakers

Electricity 1100163

R - R 40 000 R 34

289 100% -14%

Equipment Electricity 1100174

R 220 000 R 220 000 R 208

922 -5% -5%

Replace Furniture & Equipment


R 10 000 R 10 000 R 9 291 -7% -7%

Replace Fire Equipment Emergency Services 1100199

R 70 000 R 70 203 R 66

272 -5% -6%

New Fire Equipment Emergency Services 1100200

R 40 000 R 35 000 R 26

948 -33% -23%

Replace Redundant Equipment


R 35 000 R 30 000 R 29

920 -15% 0%

Replace Plant & Equipment


R 30 000 R 30 000 R 29

920 0% 0%

Paving & Kerbs Low Income Areas Epwp


R 600 000 R 600 000 R 599

006 0% 0%

Basic Sport Facilities Low Income Areas


R 2 500 000 R 2 500

000 R 2 499

985 0% 0%

Bulk Water Supply Rockdale


R - R 163 859 R 10 479

300 100% 6295%



R 62 000 R 62 000 R 60

060 -3% -3%

New Network-Industrial Parks


R - R 239 097 R 29

035 100% -88%

Upgrade Access Control Civiv Centre

Security 1100234

R 250 000 R 2 849

984 R 1 622

993 549% -43%

Office Furniture Legal & Admin 1200003

R 15 000 R 15 000 R 12

296 -18% -18%

Furniture & Office Equipment

Mm Office 1200007

R - R 30 000 R 28

066 100% -6%

Furniture Dev & Strat Support 1200010

R 6 000 R 15 000 R 12

567 109% -16%


Instruments And Tools For Communication


R 35 000 R 29 500 R 15

732 -55% -47%

Laptops Ict Services 1200016

R 180 000 R 312 000 R 278

786 55% -11%

Two Way Radios For All Departments


R 230 000 R 230 000 R 223

134 -3% -3%

Design And Develop Mall Garden


R 300 000 R 300 000 R 299

564 0% 0%

Upgrade Lions Parks Parks & Recreation 1200045

R 400 000 R 400 000 R 399

838 0% 0%

Purchase 20.5m3 Refuse Compactor


R 6 600 000 R 7 035

000 R - -100% -100%

Purchase Of 6m3 Skip Containers


R 200 000 R 175 000 R 171

933 -14% -2%

New Sewer Networks For Hendrina


R 600 000 R 750 000 R 48

366 -92% -94%

Sanitation Mafube Village Civil Engineer - Sewer 1200064

R - R 695 368 R 683

143 100% -2%

Sanitation Rockdale Phase 2


R - R 692 296 R 577

848 100% -17%

Application For Wateruse Licences Wwtw

Civil Engineering 1200069

R - R 148 075 R - 0% -100%

Upgrading Of Service Centre


R 600 000 R 600 000 R 589

386 -2% -2%

Camera Municipal Buildings 1200075

R 6 500 R 6 500 R 6 426 -1% -1%

Water Rockdale Phase Civil Engineer - Water 1200078

R - R 61 330 R 51

336 100% -16%

Township Development For Dennesig North

Town Planning 1200079

R - R 8 000 R 7 922 100% -1%

Upgrading Pump Line Between Vaalbank Wtw And Skiet


R 1 750 000 R 2 400

000 R 2 370

925 35% -1%



R 200 000 R 200 000 R 108

098 -46% -46%

Field Marking Equipment Parks & Recreation 1200092

R 35 000 R 35 000 R 28

916 -17% -17%

Security Cameras At Sub Electricity 1200098

R 175 000 R 175 000 R 120

451 -31% -31%

Replace Stolen Services Electricity 1200100

R 600 000 R 600 000 R 597

391 0% 0%

Asco Lv Cables Electricity 1200101

R 1 200 000 R 935 000 R 817

150 -32% -13%

Streetlighting Fitting Upgrade

Electricity 1200109

R 900 000 R 1 300

000 R 595

704 -34% -54%

Street Lights Main Entrance Roads Electricity 1200110

R 750 000 R 750 000 R - -100% -100%

Highmast Lighting Low Income Areas

Electricity 1200112

R 3 000 000 R 3 000

000 R 2 783

256 -7% -7%

New Roads & Storm water Low Income Areas


R 14 000 000

R 14 000 000

R 13 037 486

-7% -7%


Replace Cables In Problem Areas

Electricity 1200120

R 3 000 000 R 3 715

000 R 2 084

146 -31% -44%

Township Development For Newtown


R - R 62 000 R - 0% -100%

Electrification Of Newtown 1a

Electricity 1300012

R 2 730 000 R 2 730

000 R 1 262

099 -54% -54%

Surveilance At Civic Centre


R 125 000 R 125 000 R 124

738 0% 0%

Equipment & Tools Parks & Recreation 1300042

R 40 000 R 40 000 R 20

696 -48% -48%

New Sanitation For Newtown Ext 1a


R 3 307 400 R 6 307

400 R 6 074

525 84% -4%

New Water Network For Newtown


R 3 097 200 R 4 805

770 R 4 805

770 55% 0%

Upgrade Buildings: Airconditioners


R 30 000 R 25 000 R 24

020 -20% -4%

Newtown Proclaimed Electricity 1300062

R 5 340 000 R 4 475

500 R 2 292

638 -57% -49%

Equipment Traffic 1300071

R 140 000 R 132 500 R 115

959 -17% -12%

Firearm Safes Traffic 1300072 R 8 000 R 8 000 R 6 774 -15% -15%

Installation Of Alarm System

Finance 1300091

R 50 000 R 46 000 R 4 821 -90% -90%

Township Development Kwaza Ext 9 On Vaalbank 177 I

Town Planning

1300093 R - R 201 000

R 102 950

100% -49%

Mhluzi Upgrade Electricity 1400024

R 400 000 R 400 000 R 386

956 -3% -3%

Rockdale Electrification Electricity 1400031

R 10 060 000

R 10 924 570

R 9 755 664

-3% -11%

Highmast Lights Electricity 1400039

R 220 000 R 180 000 R 176

726 -20% -2%

Fencing At Komati Paypoint


R - R 7 000 R 7 000 100% 0%

Upgrading Of Mhluzi Offices


R 300 000 R 300 000 R 277

356 -8% -8%

Fencing At Municipal Services Center; Middelburg

Municipal Buildings

1400062 R 260 000 R 260 000

R 255 000

-2% -2%

Construction Of Carports At Service Centre


R 250 000 R 399 984 R 360

363 44% -10%

New Mpcc Municipal Buildings 1400067

R 500 000 R - R - -100% 0%

Construction Of Transfer Station At Sikhululiwe


R 1 800 000 R 723 900 R 723

900 -60% 0%

Pound Shelves Traffic 1400090

R 30 000 R 30 000 R 23

270 -22% -22%

Filing Cabinets Traffic 1400096

R 30 000 R 30 000 R 26

350 -12% -12%

Information Signs Traffic 1400097 R 60 000 R - R - -100% 0%

New Security Systems Security 1400102 R 100 000 R 100 000 R - -100% -100%

Elevated Storage Tank: Koornforntein


R - R 64 768 R 29

770 100% -54%


Replace Vehicles For Roads


R 780 000 R 743 035 R 743

035 -5% 0%

Emergency Vehicles & Equipment


R - R - R 6 067

247 100% 100%

Replace Ride On Roller Civil Engineer 1500001

R - R 340 000 R 334

958 100% -1%

New Pedestrian Roller Civil Engineer 1500002

R 220 000 R 160 000 R 133

095 -40% -17%

Energy-efficient Retrofittings


R 280 000 R 280 000 R 262

156 -6% -6%

Upgrade Van Blerk Plein Parks & Recreation 1500020

R 700 000 R 700 000 R 699

329 0% 0%

Renovation Of Cemetery Building-Bhimy Damane Str &

Municipal Buildings

1500028 R 400 000 R 400 000

R 318 650

-20% -20%

Expansion Phumolong Cemetery


R 450 000 R 450 000 R 449

933 0% 0%

Township Development At Somaphepha


R 150 000 R 136 000 R 90

183 -40% -34%

30 Seater Bus Solid Waste Management 1500035

R - R 710 000 R 707

369 100% 0%

Generators Municipal Buildings 1500057

R 1 000 000 R 780 000 R 775

760 -22% -1%

Upgrading Of Electricity At Civic Centre


R - R 2 991

570 R 208

508 100% -93%

Ublution Facilities (Toilets)


R - R 60 000 R 56

433 100% -6%

Office Furniture & Equipment Led 1500063

R 1 500 R 1 500 R - -100% -100%

Replace Old Water Pipes Mhluzi


R 1 550 000 R 2 150

000 R 2 018

475 30% -6%

Move Meter To Street Civil Engineer - Water 1500070

R 370 000 R 800 000 R 714

595 93% -11%

Construction Of Carports At Hendrina Workshop


R - R 194 468 R 136

204 100% -30%

Replace Vehicle Finance 1500076

R 275 000 R 275 000 R 244

033 -11% -11%

Upgrading Of Vaalbank Waterworks Buildings


R 400 000 R 400 000 R 330

214 -17% -17%

Upgrading Of Sleeping Quaters Presidentsrus


R - R 10 000 R 8 747 100% -13%

Purhase Land For Doornkop Re-Settlement


R - R 3 000

000 R 3 000

000 100% 0%


Pmu 1600001

R 2 000 R 2 000 R 1 730 -14% -14%

Upgrade Themba Masango Building


R 200 000 R 200 000 R 196

830 -2% -2%

Shelves Finance 1600014

R 40 000 R 40 000 R 39

954 0% 0%

Construction Of Public Ablution Facilities


R 570 000 R 570 000 R 53

180 -91% -91%

Extension Of Middelburg Landfill Site


R 4 912 764 R 4 912

764 R 4 912

701 0% 0%


Upgrade Nasaret Old Cemetery


R 500 000 R 500 000 R 453

758 -9% -9%

Upgrade Ligting At Cemeteries

Electricity 1600021

R 180 000 R 270 000 R 269

545 50% 0%

Replace Garage Doors At Fire Stations


R 500 000 R 500 000 R 495

000 -1% -1%

Upgrade Recreation Facilities


R 80 000 R 80 000 R 79

820 0% 0%

Upgrade Sport Facilities Parks & Recreation 1600025

R 200 000 R 200 000 R 166

020 -17% -17%

Upgrade Fence Recreation Facilities


R 425 000 R 425 000 R 424

325 0% 0%

Upgrade Walkways Parks & Recreation 1600029

R 500 000 R 500 000 R 499

940 0% 0%

Erect Fencing At Parks Parks & Recreation 1600030

R 300 000 R 300 000 R 299

905 0% 0%

Replacement Of Kerb-Inlets Middelburg Mhluzi


R 300 000 R 300 000 R 282

311 -6% -6%

Plant & Equipment Roads & Storm water 1600033

R 10 000 R 3 000 R 2 504 -75% -17%

Survey Equipment Roads & Storm water 1600034

R 300 000 R 300 000 R 231

104 -23% -23%

Replacement Of Kerb-Inlets Eskom Towns


R 200 000 R 200 000 R 199

960 0% 0%

Upgrade Access To Municipal Buildings


R 150 000 R 150 000 R 22

891 -85% -85%

Replace Roofing At Service Centre.


R 300 000 R 300 000 R 289

057 -4% -4%

Storm water Management On Municipal Buildings

Roads & Storm water

1600047 R 300 000 R 300 000

R 295 646

-1% -1%

Replace Roofing Mhluzi Hedc.


R 300 000 R 300 000 R 264

253 -12% -12%

Upgrade Buildings At Krugerdam Water Works


R 350 000 R 350 000 R 348

960 0% 0%

Waternetwork From Middelburg Mine To Pienaardam


R 5 000 000 R 4 000

000 R 129

432 -97% -97%

Replace Vehicle Civil Engineer 1600060

R 760 000 R 760 000 R 750

173 -1% -1%


Electricity 1600061

R 7 000 R 7 000 R 4 775 -32% -32%

Replacement Of Stolen Services (Streetlights)

Electricity 1600063

R 100 000 R 100 000 R 24

525 -75% -75%

Replace Emergency Vehicles (Insurance)


R 1 050 000 R 1 050

000 R 578

644 -45% -45%

Replace Ldv Human Settlement 1600070

R 350 000 R 370 000 R 368

676 5% 0%

Upgrade Of Offices And Security


R - R 180 000 R 153

110 100% -15%

Purchase Land Rockdale Town Planning 1600073

R - R 730 000 R 640

000 100% -12%


Water Network Doornkop Civil Engineer - Water 1600074

R - R 5 257

000 R 987

039 100% -81%

Alarm System Traffic & Security 1600075

R - R 11 500 R 8 567 100% -26%

Refurbish Crafters Market Stalls


R - R - R 1 272

292 100% 100%

Drop Safe Licencing Emergency Services

1600072 R - R 40 000 R 69

005 100% 100%

Second Phase Boskrans Civil Engineer - Sewer

1700035 R - R - R 5 585

713 100% 100%

Portrait None 1600076 R - R - R 29

000 100% 100%

Replace Insured Assets Finance 1600079 R - R - R 830

698 100% 100%

Develop New Transfer Stations

Solid Waste Management

1600080 R - R - R 5 500

000 100% 100%

Donated Land Town Planning

1600081 R - R - R 798

000 100% 100%

Donated Land Provincial Town Planning

1600082 R - R - R 15 700

000 100% 100%

Roads;Bridges And Storm water Ext18

Roads & Storm water

1400131 R - R 4 184

375 R 5 662

977 100% 100%

New 10ml Reservoir Rietfontein

Civil Engineer - Water

1100218 R - R - R 15 493

210 100% 100%

1100218 R - R - R - 100% 100%

R 220 717

260 R 281 419

438 R 274 433

242 20% -3%


APPENDIX O – CAPITAL PROGRAME BY PROJECTS BY WARD CURRENT YEAR

Capital Programme BY Project BY Ward: 2015/2016

Capital Project Ward(S) AFFECTED

Amount Works COMPLE

TED (Yes/No)

Newtown Proclaimed 17 2 292 638.00 Partially

Purchase Land Rockdale Rockdale 640 000.00 Yes

Water Network Doornkop Doornkop 987 039.00 Partially

Replace Seven 88kv Breakers All 34 289.00 Yes

Alarm System Hendrina 8 567.00 Yes

Purchase Books 22;29;10;19;24;10;3; 345 030.00 Yes

Furniture 24;3;19;10;7 69 601.00 Yes

Upgrade And Install New Air Conditioners 24;19;12;29 130 020.00 Yes

Upgrade Buildings: Air Conditioners Civic Centre Ward 12 96 020.00 Partially

Furniture 1; 3; 10; 18; 24; 2 59 820.00 Yes

New MPCC’S 29 307 018.00 Yes

New Water Network For Newtown 17 4 805 770.00 Yes

Upgrade Buildings: Air conditioners 3 24 020.00 Yes

Extension 11: Industrial Erven Connections & Munis 19 849 090.00 Yes

Upgrade Traffic Signals - Control & Synchronization 10 & 12 229 288.00 Partially

Traffic-calming Measures In Mp313 Area 1;2;3;10;22;27;25;21 299 788.00 Yes

Vehicle Replacement All 957 168.00 Yes

Portable Guard Houses (1) 10 29 910.00 Yes

New Vehicle LDV All 246 540.00 Yes

Roll-On Roll-Off Containers 3 144 016.00 Yes

Purchase Of 1.75 Cub Containers 3;13;14;15 346 800.00 Yes

Purchase Of Street Bins 3;4;5;7;13;14 66 020.00 Yes

Mhluzi Upgrade 18 AND 19 386 956.00 Yes

HIGH MAST Lights 6 176 726.00 Yes

Purchase Motorbikes X 6 All 149 870.00 Yes

Expansion Fontein Cemeteries 11 799 995.00 Yes

Upgrading Of Mhluzi Offices 18 277 356.00 Yes

Develop Cemeteries Rural/Low Income Areas 3 2 239 050.00 Yes

Rescue Jacks All 49 796.00 Yes

Skid Units All 45 656.00 Yes

Fencing At Municipal Services Center; Middelburg 13 255 000.00 Yes

Construction Of Carports At Service Centre 13 360 363.00 Yes

Replace Mercedes Fire Engine All 3 190 721.00 Yes


Refurbish Sport Clubhouses 15 135 763.00 Yes

Fence & Gates Kees Taljaard 15 218 748.00 Yes

Reconstruct Korfball Courts 15 213 333.00 Yes

Replace Vehicles For Roads 1;2;3;4;5;6;7;9 743 035.00 Yes

New Playing Equipment 19 97 063.00 Yes

Replace Playing Equipment 10; 15 97 063.00 Yes

Elevated Storage Tank: Koornforntein 5 29 770.00 Yes

Or Tambo Street Landscape & New Development 13 183 944.00 Yes

Bridges - Upgrading (BMS) 20 398 909.00 Yes

Roads New - Aerorand Wes 12 7 999 133.00 Yes

Paving & Kerbs - Middelburg 12 240 024.00 Yes

Roads General - Taxi Lay-bys 10;12;15 299 999.00 Yes

Storm water - Aerorand Wes 12 1 997 491.00 Yes

Roads General - Slipways Right Turn & Intersection 11 9 313 372.00 Yes

Rockdale Electrification 8 9 755 664.00 Partially

Construction Of Transfer Station At Sikhululiwe 7 723 900.00 Yes

Roads Reseal - Middelburg/Mhluzi 10;11;12;14;15;16;17 8 391 352.00 Yes

Storm water Middelburg 18 999 169.00 Yes

Edge Beams - Primary/Secondary Routes 14 249 880.00 Yes

New Equipment Roads All 39 635.00 Yes

Storm water Railway Line 12 998 265.00 Yes

Storm water Kranspoort 29 474 481.00 Yes

Paving & Kerbs - Hendrina/Kwaza 2 195 435.00 Yes

Subsurface Drains Hendrina Kwaza 3 347 736.00 Yes

Roads New - Hendrina 3 1 796 203.00 Yes

Replace Equipment 1;2;3;4;5;6 27 970.00 Yes

Storm water Hendrina 3 881 943.00 Yes

New Roads-Kranspoort 29 1 287 555.00 Yes

Paving & Kerbs - Villages & Rural 4 198 040.00 Yes

Roads Reseal - Rural And Eskom Towns 4;5;6 999 727.00 Yes

Subsurface Drainage Villages 5 294 962.00 Yes

Road New Presidentsrus 28 1 500 000.00 Yes

Storm water Presidentsrus 28 500 000.00 Yes

Sanitation Kwaza Ext 8(400 Stands) 3 2 895 640.00 Yes

Refurbish Infrastructure Assets Blinkpan WWTW 5;6; 127 164.00 Yes

Refurbish Infrastructure Assets Komati WWTW 5;6; 208 084.00 Yes

Sanitation Services-Rural Settlements - Biological 4;5;6;7;8;9;29 893 335.00 Yes

Sewerage Connections All 58 424.00 Yes

Replace Sewer Pumps - Pumpstations 17 409 942.00 Yes

Upgrading Boskrans Waste Treatment Plant Equipment 17; 27 145 693.00 Yes


Maintaining Infrastructure Assets At Kwaza WWTW 1;2;3; 144 611.00 Yes

Upgrade Kwaza Waste Water Treatment Plant 1;2;3; 251 500.00 Yes

Upgrade Old Age Flats Ward 12 383 425.00 Yes

Replace Fencing Airfield Ward 16 1 410 200.00 Partially

Replace Old Water Pipes Middelburg 13;16;11 1 253 094.00 Partially

Replace Old Water Meters All 1 199 755.00 Yes

Upgrade Vaalbank WTP Equipment 11 1 645 148.00 Yes

Replace Valves In Bulk Supply Lines 15; 11;16 318 881.00 Partially

Upgrade Mechanical And Electrical Equipment 11 33 486.00 Yes

New Water Connections 8; 10; 11 - 29 1 258 246.00 Yes

Water Network Kwaza Ext 8 (400 Stands) 3 4 132 548.00 Yes

Replace Old Water Pipes Hendrina/Kwaza 1; 2; 3 & 4 115 269.00 Yes

Replace Old Water Meters 1; 2; 3 & 4 198 759.00 Yes

80 Mm Water Pump 1;2;3;4; 29 920.00 Yes

Mine Water Project Woestalleen Hendrina Pipeline 1 971 824.00 Partially

Water Services: Rural Area 4; 6; 7 & 9 297 880.00 Yes

Replace Old Water Meters 5;6;7 187 665.00 Yes

Replace Old Water Pipes Villages 5;6;7 163 616.00 Yes

Treatment Plants Hendrina/Kwaza 1;2;3 19 420.00 Yes

Replace Vehicles For Water And Sewer 8 To 28 743 035.00 Yes

Replace 11kv Switchgear 16 714 739.00 Partially

Electrification Rockdale Ext 2 8 4 294 018.00 Partially

RDP House Connections Ntown/Kwaza/X24/X6 17; 27; 21; 23; 2 45 211.00 Yes

Replace Meter Kiosks 13 190 721.00 Yes

Install Ring Main Units 13.11 700 000.00 Yes

Network Reinforcement (Replace Cable ) 16; 15 AND 3 624 616.00 Partially

Gholfsig Supply Area 14 1 159 552.00 No

Replace Mini Substations 3 AND 11 751 444.00 Yes

Replace MV Cable 15 1 271 440.00 Yes

Nasaret New Substation 10; 8 13 329 053.00 Yes

Rondebosch Sub 10 2 200 885.00 Yes

Fencing Outdoor Equipment T3 17; 11 57 895.00 Yes

Electrification Industrial Park 11 886 079.00 Yes

Upgrade Of Existing High Masts 17;27 363 709.00 Yes

Replace Furniture & Equipment All 9 291.00 Yes

Replace Fire Equipment All 66 272.00 Yes

New Fire Equipment All 26 948.00 Yes

Replace Plant & Equipment 1;2;3 29 920.00 Yes

Paving & Kerbs Low Income Areas Epwp 26;25 599 006.00 Yes

Replace Plant & Equipment 11 60 060.00 Yes


New Network-Industrial Parks 13 29 035.00 Yes

Design And Develop Mall Garden 11 299 564.00 Yes

Upgrade Lions Parks 15 399 838.00 Yes

Purchase Of 6m3 Skip Containers 12;16 171 933.00 Yes

New Sewer Networks For Hendrina 3 48 366.00 Partially

Sanitation Mafube Village 7 683 143.00 Yes

Sanitation Rockdale Phase 2 8 577 848.00 Yes

Upgrading Of Service Centre 14 589 386.00 Yes Upgrading Pump Line Between Vaalbank WTW And Skiet 11 2 370 925.00 Yes

Replace Plant & Equipment 11 108 098.00 Yes

Asco LV Cables 15 817 150.00 Yes

Street lighting Fitting Upgrade 11 595 704.00 Yes

High mast Lighting Low Income Areas 7; 9; 25; 22 2 783 256.00 Yes

New Roads & Storm water Low Income Areas 1;2;8;28; 13 999 976.00 Yes

Replace Cables In Problem Areas 12 2 084 146.00 Partially Township Development Kwaza Ext 9 On Vaalbank 177 I 3 102 950.00 No

Replace Ride On Roller All 334 958.00 Yes

New Pedestrian Roller All 133 095.00 Yes

Upgrade Van Blerk Plein 13 699 329.00 Yes

Renovation Of Cemetery Building-Bhimy Damane Str & 14 318 650.00 Partially

Expansion Phumolong Cemetery 28 449 933.00 Yes

Township Development At Somaphepha 9 90 183.00 Partially

Upgrading Of Electricity At Civic Centre 12 208 508.00 Yes

Ablution Facilities (Toilets) 6 56 433.00 Yes

Replace Old Water Pipes Mhluzi 22;19;18 2 018 475.00 Partially

Move Meter To Street 1-3; 10-16; 18-27 714 595.00 Yes

Purchase Land For Doornkop Re-Settlement 17 3 000 000.00 Yes

Upgrade Nasaret Old Cemetery 10 453 758.00 Yes

Upgrade Lighting At Cemeteries 13 269 545.00 Yes

Upgrade Recreation Facilities 15 79 820.00 Yes

Upgrade Sport Facilities 18 166 020.00 Yes

Upgrade Fence Recreation Facilities 20 424 325.00 Yes

Upgrade Walkways 24 499 940.00 Yes

Replacement Of Kerb-Inlets Middelburg Mhluzi 11;13;20;21 282 311.00 Yes

Replacement Of Kerb-Inlets Eskom Towns 4;5 199 960.00 Yes

Water network From Middelburg Mine To Pienaardam 1-3; 10-16; 18-27 129 432.00 Partially

Replacement Of Stolen Services (Streetlights) All 24 525.00 Yes

Second Phase Boskrans Boskrans 5 585 713.00 Yes

T O


APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOL AND CLINICS

Service Backlogs: Schools and Clinics 2015/2016 Establishments lacking basic services Water Sanitation Electricity Solid Waste

Collection

Schools (NAMES, LOCATIONS)

Middelburg Laerskool x x x x

Laerskool Staatpresident CR Swart x x x x

Kanonkop Laerskool x x x x

Future achievers x x x x

Dennisig Laerskool x x x x

Eastdene Primary School x x x x

Mthombeni Public School x x x x

Zikhuphule Primary School x x x x

Elusindisweni SP School x x x x

Reatlagile LP School x x x x

Mhluzi Lp School x x x x

Laerskool Rietkuil x x x x

Koorenfontein Laeskool

Maziya Primary School x x x x

Hendrina Primary School x x x x

Mvuzo Primary School x x x x

Thushanang HP School x x x x

Tshwenyane HP School x x x x

Makhathini Lp School x x x x

Manyano Lp School x x x x

Arnot Colliety Primary borehole Biological toilets x x

Mphephethe School x x x x

Tsiki Naledi School x x x x

Eikeboom Primary School x x x x

Alex Benjamin Secondary School x x x x

Middelburg Hoerskool x x x x

Tegniese Hoerskool x x x x

Nasaret Combined school x x x x

Kragveld Skool

Steelcrest High School x x x x

LD Moetanelo School x x x x

Eastdene Indian High School x x x x

Kanonkop Hoerskool x x x x


Sofunda Secondary School x x x x

Mpanama Comprehensive High School x x x x

Ekwazini High School x x x x

Hoerskool Hendrina x x x x

Kwazamokuhle Secondary School x x x x

Moses Magagula Christian School x x x x

ST Peters Christian School x x x x

Sozama School x x x x

Nkangala FET College x x x x Clinics (NAMES, LOCATIONS)

Civic Centre clinic x x x x

Mhluzi Ext 4 (Smunye) clinic x x x x

Mhluzi Ext 6 clinic x x x x

Avalon-Newtown Parkhome x x x x

Nasaret clinic x x x x

Eastdene clinic x x x x

Hendrina Clinic x x x x

Kwazamokuhle clinic x x x x

Newtown clinic x x x x

Doornkop clinic x x x x

Sr Mashiteng Clinic x x x x

Pullenshope Clinic

Midmed Hospital x x x x

Middelburg Hospital x x x x

T P


APPENDIX Q – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION

Service Backlogs Experienced by the Community where another Sphere of Government is the Service Provider (where the municipality whether or not act on agency basis) Services and

Locations Impact of backlogs

Clinics: Ward 1,4, 6,7,8,11,28 requested clinics People travelling long distances to access health care

Housing: Ward 1,2,3,5 ,24,26,29 requested RDPs Increasing waiting list

Ward 9,24,29, requested residential stands Increased demand for land

Licensing and Testing Centre: Service provided by the municipality N/A

Reservoirs Service provided by the municipality N/A Schools (Primary and High):

Requests for primary/high school schools in ward 4,6,10,12,27,28,29

Sports Fields: Service provided by the municipality N/A

APPENDIX R – DECLARATION OF GRANTS MADE BY THE MUNICIPALITY

Declaration of Loans and Grants made by the municipality: All Organisation or Person in receipt of

Loans */Grants* provided by the municipality

Nature of project Conditions attached to

funding

Value

Total Amount committed over

previous and future years

2015/2016

Business linkage

the centre provide a link to third parties in order to support, advise and assist SMMES as well as corporate companies enquires

annual and monthly expenditure report must be submitted to the accounting officer of the municipality R300 000 R 1 020 000

M/burg tourist info centrum

the chamber is incurring monthly expenses in respect of the tourist information centre that are administered for the benefit of the town

annual and monthly expenditure report must be submitted to the accounting officer of the municipality R 330 000 R1 020 000

Animal protection SPCA.

to assist the SPCA with animal care as

annual and monthly expenditure report R 650 000 R2 500 000


part of the municipality function

must be submitted to the accounting officer of the municipality

forever resort loskop marathon

50 km race that starts from Steve Tshwete municipal office in Middelburg to loskop dam

annual expenditure report must be submitted to the accounting officer of the municipality R30 000 R395 000

operational grant

Ad Hoc grant and support to municipal recreation club

annual expenditure report must be submitted to the accounting officer of the municipality R253 000 R920 000

R1 563 000 R5 855 000 * Loans/Grants - whether in cash or in kind T R

APPENDIX S – DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71

All Declaration of returns were made on time

APPENDIX T – NATIONAL AND PROVINCIAL OUTCOME FOR LOCAL GOVERNMENT

National and Provincial Outcomes for Local Government Outcome/Output Progress to date(2015/2016) Number or

Percentage Achieved

Output: Improving access to basic services:

Water 262 Households provided with new water connections in wards 3,6,7,8,10,11, 12, 13,14,15,16,17,18,22,23,26,29 262

sanitation 235 Householdsprovided with new sanitation connections in wards 3,8,10,11, 12,13,14,15,16,17,19,20,23,25 235

Electricity 683 new households were electrified in ward 8-16 and wards 18-25 683

New Roads 7,563 km of new roads were constructed in ward 2,3,12,14,16,25,28,29 7.56 km

Storm water drainages

3,789 km of storm water drainages constructed in ward 2,3,12,14,15,16,19,25 3.78 km

Waste removal 1176 new households received the service in ward 8, 10 and 21 1176

Output: Implementation of the Community Work Programme

For the 2015/2016 financial year about R10, 604,552 was budgeted for on the CWP and the following wards were identified for the implementation; 1, 2, 3, 4, 7, 9 and 29 targeting 1000 participants. The CWP is operating in the social and health, Environment, Agriculture, construction and Education

1000 jobs created

Output: Deepen democracy through a refined Ward Committee model


29 Ward committees were established 29 Ward operational plans were developed 16 Mayoral Outreaches took place 100%

Output: Administrative and financial capability Administrative capabilities

Out of the 1477 approved posts, about 1372 positions were filled yielding a vacancy rate of on 7.1%

employees were trained on various training including the CPDM, Project Management, etc 306

Financial capabilities

During the year our budget expectations were fully realised. We budgeted for income amounting to R1 474 943 140 and expenditure of R1 402 830 102. By the close of books at the end of the year we have obtained an income of R1 372 359 215 and we spent R1 277 233 022 giving us a surplus of R95 126 193

R95 126 193 Surplus

For the year we achieved an average payment rate in excess of 98% 98%

Clean audit Opinion from the Auditor-General for 2015/2016 Audit process in progress

Although we did not spend our full annual capital budget, we have been able to maintain our spending to 79% (2015: 79%). Serious attempts have to be made to ensure that the entire capital budget is fully spent each year.

0%


261

APPENDIX U – ANNUAL PERFORMANCE REPORT

ANNUAL PERFORMANCE REPORT

2015 –2016 FINANCIAL YEAR


KPA: GOOD GOVENANCE & PUBLIC PARTICIPATION

Strategic Objective: The Provision Of Legal, Administrative and Secretarial ServicesObjective KPI Current

Baseline Indicators

Year Target Output Indicators

Actual Performance as at 30 June 2016

Evidence (annexure)

Reason for underperform

ance

Corrective Measure

To ensure compliance with Fraud Prevention Plan

Number of activities implemented on Fraud Prevention Plan

4 Activities implemented on Fraud Prevention Plan

4 Activities to be implemented on fraud prevention annually by June 2016

Awareness training for the code of conduct training , Directors on a disciplinary code of conduct awareness on forbidden conduct in terms of the disciplinary code, continuation of the fraud hotline

4 Activities on Fraud Prevention were implemented as follows: - Fraud Plan was

a standing item on the agenda of Ward Committee/Community meetings

- Fraud workshop - Quarterly

reports on actions taken in response to the Hotline complaints submitted

- Quarterly reports on application of disciplinary procedures conducted and submitted to the AMM

- Agenda of Ward Committee/Community meetings

- Attendance registers for fraud prevention workshop

- Statistics report from the service provider

- Tax invoices from service provider

- Quarterly reports on application of disciplinary procedures

A1

N/A N/A

To render effective secretariat services

Develop an annual schedule of Council, Mayoral and other Committees

Schedule served before Council as per C10/11/2014

Annual schedule developed by 31 March 2016

Ensure that Annual Schedule is submitted

Schedule served before Council as per C14/11/2015

- Annual Schedule - Council Resolution A2

N/A N/A




Baseline Indicators



Evidence (annexure)


ance

Corrective Measure

To maintain proper Records Management System

Review of the File Plan

The file plan was approved by Council as per Resolution M04/02/2015

File Plan to be reviewed annually

Maintain proper Records Management System

File plan was reviewed and adopted by Council in September 2015. M08/09/2015

-Reviewed File Plan & Council Resolution A3

N/A N/A

Number of reports submitted in monitoring incoming & outgoing correspondence

11 Reports submitted

6 Reports annually in monitoring incoming & outgoing correspondence

Monitoring of the incoming and outgoing correspondence

9 reports on monitoring incoming & outgoing correspondence were submitted to AMM

Acknowledgement of receipt by the office of the AMM A4

N/A N/A




Baseline Indicators



Evidence (annexure)


ance

Corrective Measure

To improve legal compliance

Number of activities to be undertaken to improve legal compliance

4 Activities 3 Legal compliance activities annually

Legal compliance

14 Activities on legal compliance activities were implemented on the following issues: - 4 updates on

legal compliance register

- 4 Quarterly reports on legal compliance

- 4 Reports on new legislation submitted to Council (Resolutions SC24/07/2015 & SM06/08/2015 SC04/12/2015 & SC01/01/2016 )

- 4 Reminders on legal compliance and monthly reports thereof submitted.

- Legal compliance register

- Council Resolutions

- Letters of reminders

- Monthly and Quarterly Reports

A5

N/A

N/A




Baseline Indicators



Evidence (annexure)


ance

Corrective Measure

To promote cooperative Governance

Number of activities undertaken to comply with King III report

2 Activities conducted

2 Activities on king III compliance to be implemented annually

Promote cooperative Governance

5 Activities on King III compliance implemented as follows: - 26 Mayoral

Committee meetings were held

- 5 Audit Committee meetings were held

- 2 Risk Committee meetings were held

- Municipal Code was placed on the Municipal Intranet

- 1 ICT Steering Committee meeting was held

- Report on meetings held

- Attendance registers

- Minutes - Municipal

Code placed on the Municipal Intranet

A6

N/A N/A

To promote the involvement of stakeholders in Council affairs in order to ensure regular consultation

Number of Pro forma agendas to Ward Committees

6 Pro forma agendas per Ward Committee

6 Pro forma agendas per Ward Committee annually

Involvement of the community and /or stakeholders in Council affairs

6 Pro-forma agendas have been prepared per Ward Committee

Pro-forma agendas for Ward Committees A7

N/A N/A




Baseline Indicators



Evidence (annexure)


ance

Corrective Measure

between Council and the community

Number of reports submitted to Section 79 Political Monitoring Committees

11 Reports submitted

6 Reports per Ward Committee on matters raised annually

Involvement of the community and /or stakeholders in Council affairs

6 Reports have been submitted to Sec 79 Political Committee on matters raised

Reports served at Monitoring Committees A8

N/A N/A

To encourage and improve communication

Number of activities implemented on Communication Policy

3 Activities implemented

2 Activities on Communication Policy implemented annually by June 2016

Improved communication

3 Activities on Communication Policy implemented as follows: - 69 media

releases were issued to local, provincial and national media

- 90 radio slots were conducted

- 3 Community Newsletter were produced


- Media releases - Articles

published - Community

Newsletters A9

N/A N/A

Number of residents registered in the SMS database

12 400 registered

6000 Households/residents to be registered by June 2016.

Community database

8350 Number of households/residents registered by June 2016

Database Reports A10

N/A N/A

Number of Local Communicators Forum activities coordinated to improve Inter Governmental Relations

6 Local Communicators Forum activities coordinated

3 Local Communicators Forum activities coordinated annually

Improve Inter Governmental Relations

11 Local Communicators Forum activities held

- One Integrated Service Delivery Imbizo was held

- Attendance Registers

- Agendas & Minutes

- Report A11

N/A N/A




Baseline Indicators



Evidence (annexure)


ance

Corrective Measure

To market municipal programmes and projects

Number of activities to market the municipality

Five (5) activities to market the municipality implemented

2 Marketing activities to be implemented annually

Approved marketing strategy and improved marketing

11 Marketing activities implemented

- Copy Magazines

- Articles published

A12

N/A N/A

To promote customer care

Number of activities undertaken to improve Customer Care

3 Activities were implemented to promote Customer Care

3 Customer Care activities annually

Promote Customer Care

4 Activities were implemented to promote Customer Care

Service complaint feedback reports A13

N/A N/A

To ensure proper coordination of all municipal events

Number of annual Events Calendars developed

1 Events Calendar was developed.

1 Events Calendar developed by June 2016

Proper coordination of all municipal events

Annual Event Calendar developed by 20.06.2016

Developed annual Events Calendar A14

N/A N/A

To ensure that all properties within the municipal area are valued for rating purposes

1 Supplementary Valuation Roll was submitted by 30 June 2014

3rd Supplementary Valuation Roll was submitted to AMM on 30 January 2015

1 Activity undertaken to ensure the valuation of all properties by June 2016

Annual Supplementary Valuation Roll General Valuation Roll

4th Supplementary Valuation Roll submitted to the AMM on 29 January 2016

Supplementary Valuation Roll A15

N/A N/A

To guide and inform the municipal planning, budget, management and development actions

Develop and review the IDP of the organisation

Existence of an adopted IDP SC30/03/2015

1 Annually developed and adopted IDP by May 2016

Monitoring of the incoming and outgoing correspondence

Reviewed and adopted IDP by May 2016 (SC31/03/2016 & SCSC30/05/2016)

Council Resolution Approved IDP A16

N/A N/A


KPA: MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENTStrategic Objective: The Provision Of Effective, Efficient And Transformed Human CapitalObjective KPI Current

Baseline Indicators



Evidence (annexure)

Reason for underperfor

mance

Corrective Measure

To ensure compliance with the EEA

* Number of employees from EEP target groups employed in the three highest levels of management in compliance with the approved EEP

5 Employees from EEA target group employed

2 Employees from EEA target groups to be employed at the three highest levels by June 2016

Employment in three highest levels of management reflects the composition of the population of MP313 as expected by the EEP

4 Appointments - 2 Financial

Services - 1 Human

Capital Management

- 2 Legal Services

Appointment letters

B1

N/A

N/A

Submission of the EE Plan to the Department of Labour

EE Report submitted on 22 September 2014

EE Plan submitted to the Department of Labour by the end October annually

Employment in three highest levels of management reflects the composition of the population of MP313 as expected by the EEP

EE Report submitted to DoL on 30 September 2015

- Acknowledgement of receipt by the Department of Labour

- Council Resolution B2

N/A N/A

To support and promote the total well being of the staff

Number of activities to be Implemented as per EWP

2 Activities implemented

3 Staff Wellness activities to be implemented by June 2016

Arranged activities to improve the well-being of the employees

2 Staff Wellness activities implemented. - ICAS EAP

report - Staff wellness

day 29 April 2016

Staff wellness day function conducted. - Programme - Invitation B3

The planned AIDS day was postponed due to strike action

The activity will be conducted in the 2016/2017 year as a separate activity



Baseline Indicators



Evidence (annexure)


mance

Corrective Measure


% of budget allocation spent on skills development of Councillors

R110 868 out of R112 000 budgeted = 100% spent on Skills development for Councillors 28 Councillors underwent training

100% of allocated budget spent on Councillors annually

Productive workforce and Councillors

Not achieved - Report on Councillors trained - Budget expenditure B4

No Councillor training was approved due to Local Government Elections Preparations

Councillor Training has been planned and will be implemented in the 2016/2017 financial year


*% of a Municipality’s budget actually spent on implementing its Workplace Skills Plan

R1 687 603 out of R1 667 603 = 101% was spent on the Skills Development Plan (Number of employees trained- 297) 0.4% of the payroll budget spent to date

0,4% of payroll budget to be spent annually by June on the Workplace Skills Plan.

Productive workforce and Councillors

- 93.3% of the allocated budget has already been spent by June 2016

- 420 Employees have been trained

- Report on Training - Enrollment forms -Budget expenditure B5

The budget was adjusted with the aim of conducting team building for the Local Labour Forum members

Team building has been planned for the 2016/2017 financial year

Number of activities to enhance labour relations

30 Activities to enhance labour relations

18 Activities to enhance labour relations annually

Enhance labour relations through initiated activities

29 Activities to enhance labour relations by June 2016 conducted. - 9 LLF - 9 HRD - 10 Staff

Wellness - Local labour

training

- Minutes of Local Labour Forum and subcommittee meetings

- Agendas - Attendance

registers B6

N/A N/A


Number of activities to be coordinated in terms of the OHS Policy

10 Activities are coordinated

5 OHS activities to be conducted annually by June 2016

Activities to be coordinated in terms of the OHS Policy

12 OHS activities were conducted by June 2016 - 3 X Sec 16(2)

appointees appointed

- 4 X OHS level 2 meetings held

- Draft Emergency Evacuation Plan circulated for inputs

- 3 X OHS Management Training

- Medical examinations for Hepatitus B

- OHS Checklist - OHS Audit

Report - Cross-over

Contingency Plan (2015)

- Contractor’s Induction

- 6 Safety-talks held

- 3 OHS Inspections were conducted

- Internal Auditor’s findings on OHS issues

- Appointment letters

- Reports on OHS compliance

- Agendas - Safety-talks

registers - OHS Audit

Report - OHS Checklist - Internal Auditor’s

findings - OHS Training - Emergency

Evacuation Plan - Proof of payment B7

N/A N/A



Baseline Indicators



Evidence (annexure)


mance

Corrective Measure

To develop and maintain a personnel structure that will ensure effective and sufficient service delivery

Number of levels to which PMS will be cascaded

PMS cascaded up to level 3

PMS to be cascaded to levels 1 to 3 by June 2016

Productive workforce

Cascading of PMS implemented up to Level 3 as per Resolution M34/10/2012

Council Resolution B8

N/A N/A

KPA: MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENTStrategic Objective: The Provision Of Effective and Efficient Support Services

Objective KPI Current Baseline

Indicators



Evidence (annexure)


mance

Corrective Measure

To ensure effective and efficient Information Communication and Technology

Number of reports generated on the update of municipal website

8 Reports generated on the update of municipal website

4 Reports on website update to be generated annually

Update of municipal website

4 Quarterly reports on website update were generated

Quarterly reports B9

N/A N/A


KPA: MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENTStrategic Objective: The Provision Of Effective and Efficient Support Services


Indicators



Evidence (annexure)


mance

Corrective Measure

To provide a secure IT infrastructure which delivers appropriate level of data confidentiality, integrity and availability

Number of activities to be performed in the maintenance of information communication and technology infrastructure

6 Activities to be performed

5 Activities to be performed in the maintenance of ICT infrastructure annually

Effective and efficient Information Communication and Technology

5 Activities were performed in the maintenance of ICT infrastructure in the following areas: - ICT Risk

Register updated

- Track IT Report - Asset

movement forms & asset register

- Website publication report & register

- Monthly backup reports conducted

- Risk Register - Track IT Report - Asset

movement forms & Asset Register

- Website publication report & register

- Backup report B10

N/A N/A

KPA FINANCIAL VIABILITY Strategic Objective: To Continue With Accountable And Developmental Orientated Monetary Management To Sustain A Sound Fiduciary Position

Performance Objective

Key Performance

Indicator

Baseline Year Target Output Indicators


Evidence (annexure)


mance

Corrective Measure

To manage revenue in an efficient and responsible manner

% decrease in doubtful outstanding debts

% doubtful debts of total debtors’ book as at 30 June 2015

Uncollectible outstanding debts i.e. 150 days and older reduced by 2% by June 2016

Decrease doubtful debts

Debt older than 150 days increase with 18.1%

Debtors age analysis and summary sheet C1

Difficult economic conditions

Monitor and follow up on amounts increasing on age analysis. Investigate




Key Performance

Indicator



Evidence (annexure)


mance

Corrective Measure

sundry debtor increases

% of amounts billed collected

Average payment rate for financial year as at June 2015 i.e 100.52%

Average payment rate maintained at above 98%

Billing reports with analysis schedule

Average payment rate 100,31%

Payment rate schedule according to billing C2

N/A N/A

% of debtors to revenue ratio

7.67% debtors’ turnover ratio as at June 2015

Debtors to revenue ratio maintained at below 8%

Debtors billing reports with analysis schedule

Debtors to revenue ratio at 9.21%

Debtors to revenue schedule C3

N/A N/A

To maintain a comprehensive and uniform Valuation Roll


100% of supplementary valuations implemented as at June 2015

100% supplementary valuations implemented within 30 days from notice

Implementation of supplementary valuations

3460 Interim valuations implemented, i.e 100%

Report from Valuation department C4

N/A N/A

To ensure compliance with prescribed accounting standards and legislation

% compliance to GRAP reporting framework (Financially unqualified)

100% compliance to accounting standards, clean audit. No material misstatements no non-compliance to legislation

100% compliance to GRAP reporting framework per gazetted framework for 2014/2015 financial year

Compliance with prescribed accounting standards and legislation

Financial Statements submitted 31 August 2015

AFS and copy of statements submitted C5

N/A N/A


Compliance to AG key clean audit controls by 2014

Clean audit received 2013/2014 financial year

Maintain clean audit status for 2014/2015 financial year


Unqualified with matters

Audit report and Council item C6

One technical matter raised on unauthorized expenditure

Engage with Accountant General on matter




Key Performance

Indicator



Evidence (annexure)


mance

Corrective Measure

To ensure compliance with budget and reporting regulations

Number of compliant In-year reports submitted on time

12 Monthly reports 4 Quarterly reports 1 Mid-year Budget and Performance Assessment report

12 Monthly reports 4 Quarterly reports 1 Mid-year Budget and Performance Assessment report which are compliant and submitted on time

Sound budgetary and financial reporting processes

- 12 Monthly reports submitted, (M01/07/2015, SM17/08/2015, M01/09/2015, M01/11/2015, M01/12/2015, M03/01/2016, M01/02/2016, M01/03/2016 M01/04/2016 M01/05/2016) M01/06/2016 M01/07/2016 - 4 Quarterly report (SC32/07/2015 SC16/10/2015, C08/01/2016) SC14/04/2016 C27/07/2016 - 1 Mid-year assessment report

- Copy of Council Resolutions, Reports available on request NB: December 2015 monthly report (14 Jan 2016) and second quarter report (19 Jan 2016) to serve before Council C7

N/A

N/A

% compliance to budget & reporting regulation framework

Annual budget 100% compliant and submitted according to regulations (38/05/2015)

100% compliant and funded annual budget submitted by May 2016.

Budget submission & Council Resolution. Inputs on Budget by NT & Provincial Treasury

Budget Time Table submitted, SM21/08/2015, Draft Budget Table on 31 March 2016 Final Budget approved C36/05/2016 SDBIP M02/06/2016 C35/05/2016 Section 19 report

Budget timetable Resolution SM21/08/2015, Tabled budget Resolution and budget document, Approved budget C36/05/2016, SBIP M02/06/2016, C35/05/2016 Section 19 report C8

N/A N/A




Key Performance

Indicator



Evidence (annexure)


mance

Corrective Measure

To fully comply with Supply Chain Regulation and National Treasury Guide on procurement processes

Number of compliant In-year reports submitted on time

4 Quarterly reports Annual reports 12 Monthly deviation reports

4 Quarterly reports Annual reports 12 Monthly deviation reports

Transparent and fair procurement processes

4 Quarterly Report (C25/07/2015 M12/10/2015 M05/01/2016), M08/05/2016 12 Monthly reports (C3/07/2015, SC05/08/2015, C19/09/2015 C04/01/2016 C06/01/2016 C07/01/2016 C03/02/2016 C05/02/2016 C10/03/2016), C12/06/2016 C13/06/2016 C35/06/2016 1 Annual Report C25/07/2015

Copy of Resolution C9

N/A N/A

Reduce turnaround time on Supply Chain comments on tenders

Turnaround time for comments as at 30 June 2015 +- 15,04 working days

Reduce turnaround time on comments on tender reports to be within 10 working days from receipt by departments

Transparent and fair procurement processes

16,60 days on comments on tender reports

Tender report C10

Tender documents that are going between SCM and the Departments for clarity

This is a new process and will be rectified as time passes and Departments get used to the process and the Tender document

To comply with the municipal minimum competency level

Increase number of compliant senior personnel with minimum

4 Additional Senior personnel compliant to municipal minimum competency

3 Additional compliant senior personnel by 30 June 2016 and ad-hoc training to 12 employees (levels 4-12)

Improve skills and competency profile

12 Employees commence with CPMD, Accountant Assets, Chief accountant consumers

Copy of registration and confirmation C11

N/A N/A




Key Performance

Indicator



Evidence (annexure)


mance

Corrective Measure

competency levels

levels as at June 2015

(Hendrina), 5 interns

To maintain and upgrade the existing financial operations and procedures to provide an efficient functionality

Number of improved controls, procedures and systems instituted

15 Development and/or upgrade of management systems by 30 June 2015

8 Development of controls and procedures reviewed by June 2016

Improved controls, procedures and systems instituted

Procedure for reporting insurance claims and dates for compliance on various reporting

Copy of 2 procedures C12

Time and resources

Action plan for all directorates to complete

Number of Budget Related Policy reviews

3 New policies 5 Amended policies 9 Unchanged policies (C38/05/2015)

Review of 10 Budget Related policies

Review of budget related policies

1 New policy plus review of 10 policies and 9 unchanged policies

Extract from budget document C13

N/A N/A

To identify and investigate inaccurate meter readings/consumptions

Number of meter reading based on estimation instead of actual meter reading

362 more meters average for fourth quarter, i.e. 8,6% increase 24857 more meters for the year

Reduce meter readings with estimations by 250

Report on meters billed on actual readings

2838 less meters estimated from June 2015 i.e 6,27% reduction

Meter report C14

N/A N/A

To extend service delivery to the community

Number of payment channels available to consumers

SLA of payment facilities for internet

Internet vending and payment with 2 media campaigns

SLA agreements on new facilities

C45/07/2016 – Approval for internet vending

Council Resolution C15

N/A N/A

To alleviate poverty to

improve quality of household life

% of allocated equitable share implemented for free basic services

11,48% more allocated in 2015/2016

Additional 5% of allocated equitable share to be utilized for free basic services

Assistance to poor households

22,88% more equitable share used for free basic services compared to 2014/2015

Allocated equitable share report C16

N/A N/A




Key Performance

Indicator



Evidence (annexure)


mance

Corrective Measure


% of municipality capital budget actually spent on capital projects identified in terms of IDP for finance directorate

78,5% of actual capital expenditure spent on projects identified in IDP by June 2015

95% of actual capital expenditure on approved capital projects in the 2014/2015 IDP

Utilize financial resources towards actual implementation of IDP projects

R274 433 242 spent of R323 877 956 i.e 84.7% of Capex

Capex sheet for AFS C17

Procurement process and outstanding EIA’s delay that projects could not be completed

Implementation of procurement plans and monitoring systems

Debt coverage ratio

Debt coverage ratio (30.04) as at 30 June 2015

Debt coverage ratio maintained at above 10 at any given time

Improve cash/liquidity position

Debt Coverage 58:1

Debt coverage calculation C18

N/A N/A

Cost coverage ratio

1:5.7 Cost coverage ratio as at 30 June 2015

Cost coverage ratio increased to above 2 at any given time

Improve cash/liquidity position

Debt Coverage ratio 6.:1

Cost coverage calculation C19

N/A N/A

Secure new external loan for capital programme over next MTRF

No external loan. Tender advertised

New external loan facility compliant to reporting requirements at best rate by 30 June 2016

New external loan facility compliant to reporting requirements

External loan not secure

N/A

Sufficient cash flow resources for 2015/2016 resulted that no loan were taken up

New loan advertisements for 2016/2017

To manage, control and maintain all

assets of the municipality

% asset verification according to inventory lists

80% of assets on inventory lists verified.

95% of assets verified according to inventory lists

Asset verification according to inventory lists

Not achieved N/A All relevant processes were completed but insufficient data for credible data

Investigate and update moveable register and systems to provide credible data




Key Performance

Indicator



Evidence (annexure)


mance

Corrective Measure

% Increase of OPEX allocated to repairs and maintenance.

5.3% allocated for maintenance on the 2014/2015 budget. 1.3% increase

1% increase of OPEX budget to be allocated on repair & maintenance

Maintain economic life of assets

7,4% increase in repairs & maintenance

Budget Schedules C20

Budget Constraints and tariff limitations

N/A

% reduction in annual stock take differences

Stock differences reduce with 3.1% and number of items with differences reduce with 17,9%. C09/08/2015

5% reduction in annual stock take differences

Improve controls of safeguarding and issuance of inventory

4,2% improvement in stock take differences

Stock Report 2015/2016 C21

N/A N/A

KPA: : LOCAL ECONOMIC DEVELOPMENT

Strategic Objective: To contribute towards a better life for the society by coordinating sustainable social and economic developmental programmes.

Objective KPI Baseline

Indicators Year Target

Output Indicators


Evidence (annexure)


mance

Corrective Measure

To create a conducive environment for business investment and growth for job creation

Number of LED related Summits coordinated

4 LED related Summits -2 x Investor breakfasts/symposiums 04 Nov & 26 Nov 2014 -DTI Incentive Summit -Job Summit

2 LED related Summits coordinated by June 2016.

Job creation and poverty alleviation

4 LED related Summits held - Udliwanondlebe

– 31 July 2015 - Franchise Expo

– 22 - 23 October 2015

- Township economy and


- Advert - Programme D1

N/A N/A






Output Indicators


Evidence (annexure)


mance

Corrective Measure

Forum industries 25 February 2016

- Job Summit23 June 2016

Number of skills development programmes coordinated

5 training programmes: -Pig Management for small farmers -Fertilization of vegetables crop -Tourism Crash Training Nedbank SMME Training -NYDA Training: Start UP - PwC Women in Business Training: Faranani Training

1 Skills development programme coordinated by June 2016.

Skills in Agriculture, Business, Technical and Tourism sector

3 Skills Development Programmes coordinated - NEDBANK

SMME Training 28 September to 1 October 2015

- NEDBANK Training 5 to 9 October

- Community Works Programme trainings

Attendance registers D2

N/A N/A

Development of LED Strategy

Draft LED Strategy

LED Strategy developed by Dec 2015.

Job creation and poverty alleviation

LED Strategy approved by Council: C29/05/2016

Council Resolution LED Strategy D3

N/A N/A

Number of FET jobs created to improve the level of employment.

242 Person Year of Employment created (FTEs)

152 FTEs by end of March 2016

Job creation, skills development & Poverty alleviation

658 FTEs by 31 March 2016

FTE PMU report D4

N/A N/A






Output Indicators


Evidence (annexure)


mance

Corrective Measure

Number of participants recruited Community Work Programme

966 Participants recruited by 30 June 2015

1100 Participants (recruited – not recruited) but maintained by 30 March 2016

Job creation, skills development & Poverty alleviation

1003 Participants maintained within the CWP Programme

CWP Progress report D5

Participants securing alternative employment opportunities

Recruitment of participants in Hendrina Ward 6 identified as a new area for additional recruitment

To contribute towards a better life for the community by coordinating sustainable socio-economic development programmes

Number of LED Structures that are established in line with the LED Strategy

4 Working Groups/Committees were established

1 LED Structure established in line with the LED Strategy & its Pillars by June 2016

LED Structures established in line with the LED Strategy & its Pillars

2 LED Structures established - Local Reference

Committee on CWP

- Mining Houses Forums

- Minutes - Attendance

registers - Terms of

references D6

N/A N/A


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: to provide municipal building and facilities while upgrading existing ones Objective KPI Current

Baseline Indicators



Evidence (annexure)


mance

Corrective Measure

To promote the construction of green buildings that minimise wastage of scarce resources thus ensuring a low carbon footprint

Number of municipal building facilities upgraded

Seven (7) buildings and facilities upgraded

3 Municipal buildings and facilities to be upgraded by June 2016

Safe and secure municipal buildings

- 3 Municipal buildings and facilities upgraded:

- Upgrading at Vergeet my nie old age,

- Replacement of roof at Vaalbank waterworks

- Upgrading at Krugerdam sleeping quarters projects has been completed

- Progress reports - Close-out

reports - Certificate of

completion - Payment

certificates E1

N/A N/A


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: to provide municipal building and facilities while upgrading existing ones Objective KPI Current

Baseline Indicators



Evidence (annexure)


mance

Corrective Measure

Number of municipal building retrofitted

8 Buildings partially retrofitted by June 2015

3 Buildings partially retrofitted by June 2016

Energy-efficient buildings

8 Municipal buildings retrofitted

- Boskrans waste water plant

- Kruger Dam Hostel

- Kruger Dam caretaker house

- Vaalbank Hostel - Vaalbank Office - Hendrina Water

Purification Plant

- Hendrina Waste Water Treatment Plants are partially retrofitted with heat pumps, water saving shower roses and water restrictors on the basin taps.

- Installation of two (2) x 20 meter high masts with LED flood light fittings at Service Centre, Middelburg

- Reports - Photo’s - Progress reports E2

N/A N/A


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: to ensure provision of affordable and sustainable basic services by upgrading existing and providing new infrastructure.


Indicators



Evidence (annexure)


mance

Corrective Measure

To provide new cemeteries while upgrading existing cemeteries according to prioritised community needs


5 Cemetery upgrading projects implemented by June 2015

4 Cemetery upgrading projects implemented by June 2016

Improved quality of cemeteries throughout the MP313 area Improved access to cemeteries

5 Cemeteries were upgraded - Fontein

Cemetery - Phomolong

Cemetery - Nasaret Old

Cemetery - Bhimmy

Damane cemetery

- Totius Street cemetery

- Project completion certificate

- Invoices - Payment

certificates - Payment

certificates

E3

N/A N/A

1 New Cemetery developed and operating by 2016. (Pullenshope)

Improved quality of cemeteries throughout the MP313 area Improved access to cemeteries

EIA study conducted and completed for Pullenshope cemetery

Payment certificates E4

ROD (Record of Decision) not yet issued

Due to the lengthy time frames the final documentation will only be issued in the 2016/2017 FY


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: to ensure development of stable and sustainable communities through the provision and maintenance of accessible and reliable municipal assets and facilities.


Indicators



Evidence (annexure)


mance

Corrective Measure

To provide new parks while upgrading existing parks and open areas according to the prioritised needs

Number of parks and open spaces developed or upgraded

4 Parks and open spaces developed as at June 2015

2 Parks and open spaces developed in Mhluzi, Kwaza/Hendrina and outlying towns

Increased capacity of Parks and Open spaces Developed parks and open areas closer to the communities

2 Parks and open spaces developed - Lions park

developed - Mall gardens

developed

- Invoices - Payment

Certificate E5

N/A N/A

2 existing Parks upgraded as at June 2015

2 existing parks upgraded in Middelburg, Mhluzi, Kwaza/Hendrina and outlying towns by June 2016 (Upgrade of landscaping, planting of trees, placing/replacing of playing equipment, fencing & amenities like braai, receptacles and benches)

Increased capacity of Parks and Open spaces Developed parks and open areas closer to the communities

4 existing parks upgraded - play equipments

installed at 25th Ave Park Rietkuil.

- play equipments installed at C/O Hoog and Luttig Street Park.

- Upgrading of Van Blerk Plain fence.

- Ext 7 Park Mhluzi, Walkway

- Payment Certificate

- Invoices E6

N/A N/A


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: To ensure all development and services comply with the evolving “green evolution” in order to reduce the carbon foot print


Indicators



Evidence (annexure)


mance

Corrective Measure

To contribute towards the mitigation of climate change impacts.

Number of trees planted and propagated in the MP313

Planting of 5012 trees

5000 trees planted in the MP313 area by June 2016

Healthy and aesthetically acceptable environment

4436 Trees planted as at June 2016

Departmental Records E7

Due to the drought and extreme heat survival rate of trees would have been below economical.

The remainder of the trees will be planted in the new financial year should rainfall patterns normalize

Propagate 19100 trees as at June 2015

8000 propagated trees by June 2016.

Healthy and aesthetically acceptable environment

8100Trees Propagated as at June 2016

Departmental Records E8

N/A N/A

KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: To Promote Healthy Lifestyles Through Provision Of Sport And Recreation Facilities Accessible To All Communities


Indicators



Evidence (annexure)


mance

Corrective Measure

To provide new sport and recreation facilities while upgrading existing facilities according to prioritised community needs

Number of sporting facilities developed or upgraded

2 New Graded soccer fields developed as at June 2015

1x New Graded soccer fields and 2x Basic multipurpose facilities developed in previously disadvantaged areas by June 2016

Increased capacity of sports facilities

2 New Graded Soccer fields Ext 6 and in Tokologo 2 Multipurpose facilities developed in Tokologo and Ext 6

- Invoice - Progress reports - Payment

Certificate

E9

N/A N/A


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: To ensure provision of affordable and sustainable basic services by upgrading existing and providing new infrastructure


Indicators



Evidence (annexure)


mance

Corrective Measure

To ensure a clean and healthy environment through the provision of regular refuse removal services to existing and new developments

% of HHs with access to solid waste removal services

60218 of HHs with provided with waste removal services. Additional 3235 houses at Rockdale i.e. 92.68% by June 2015.

% (95%) of HHs (64971) serviced by June 2016

Improved cleanliness at household level Improved cleanliness in the neighbourhood

95.76% (60218+1997=62215) of HHs provided with waste removal services 62215/64971=95.76% Additional of 1997 HHs

Consumer accounts status report

E10

N/A N/A

Number of HHs provided garden waste removal services

15016 HHs provided with drums and garden waste removal services at June 2015

10 000 HHs provided with garden waste removal services by June 2016

Improved cleanliness at household level

5876 HHs provided with garden waste removal services

Waste removal report

E11

The extension of services could only allow the reported figure because the allocation of RDP houses

As the area expand the service will be expanded to meet the target

Number of commercial, institutional and Industrial centres with access to solid waste removal services

8 Additional commercial centres serviced as at June 2015

4 Additional commercial centres to be serviced by June 2016

Improved cleanliness at commercial, industrial and Institutional centres

17 Additional commercial centres were serviced

Reports on additional commercial services

E12

N/A N/A




Indicators



Evidence (annexure)


mance

Corrective Measure

% compliance with landfill site permits conditions.

75% Compliance with permit conditions as at June 2015

92% compliance with permit conditions by 2016

Well-functioning landfill complying to permit conditions


Audit Report

E13

Landfill site is under construction /upgrade

To be completed first quarter 2016/2017

Number of transfer stations constructed

5 Transfer stations constructed by June 2014

3 Transfer stations constructed in Rockdale, Sikhululiwe, Aerorand and Kanonkop

Waste Minimisation

1 waste transfer station completed at Middelburg Ext: 49

Report on transfer stations constructed

E14

Sikhululiwe Transfer Station still under construction 50% multiyear project. To be completed 2016/2017

To be completed 2016/2017

KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: To ensure all development and services comply with the evolving “green evolution” in order to reduce the carbon foot print


Indicators



Evidence (annexure)


mance

Corrective Measure

To ensure compliance with national legislation/policies by reducing the amount of waste disposed at landfill sites through the implementation of appropriate waste minimisation strategies

Number of waste minimisation projects

2 Waste minimisation projects implemented by June 2015

1 Waste minimisation projects i.e recycling at municipal offices and separation at source (Gholfsig) implemented by June 2016

Waste Minimisation

1 Waste minimisation projects implemented in conjuction with Coca-Cola Shanduka Beverages at three schools in Mhluzi

Progress report E15

N/A N/A


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERYStrategic Objective: To ensure provision of affordable and sustainable basic services by upgrading existing and providing new infrastructure.


Indicators



Evidence (annexure)


ance

Corrective Measure

To provide efficient and sustainable electricity supply to the consumers throughout the municipal area

Number of HHs with access to electricity in the licensed area.

928 Connections done (39 753 out of 64 971) 61.19%

as at 30 June 2015

Increased by 353 HHs (61.71% , 40099 out of 64971 ) of HHs electrified in the STLM by June 2016.

New electrified formal dwellings Satisfied community High revenue income

692 connected (39753+692) 40 445 connections done out of 64 971 (62.25%)

-Electricity connection report E16

N/A N/A


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERYStrategic Objective: To ensure provision of affordable and sustainable basic services by upgrading existing and providing new infrastructure.


Indicators



Evidence (annexure)


ance

Corrective Measure

% of area outages successfully restored within 4 hours.(other than equipment failure)

Total number of outage restored within 4 hours: 144 Total number of outage: 213 (144/213) x100 = 67.61%

83% of area outages to be successfully restored within 4 hours by June 2016

Shorter system downtime

Total number of outages restored within 4 hours= 265 Total number of outages= 376 265/376=70%

- Record of all lodged outage complaints. -Faults analysis report. E17

A lot of forced power interruption due to underground faults

All identified cables are repaired and commissioned as the matter of urgency.

% of area outages successfully restored within 12 hours (Equipment failure e.g. switchgear, minisubs, transformers)

Total number of outage restored within 12 hours: 2 out of 2 was successfully restored within 12 hours = 100%

75% of area outages to be restored successfully restored within 12 hours by June 2016

Shorter system downtime

Total number of outage restored within 12 hours: 1 out of 5 was successfully restored within 12 hours = 1/5=20%

-Record of all lodged outages complaints. -Faults analysis report E18

Delay due to non-availability of compatible equipment

Proper planning will be done to cater for such outages

To provide efficient and sustainable electricity supply to the consumers throughout the municipal area

Number of free basic services consumers registered for free basic electricity

100% indigent consumers registered for free basic electricity 100% of 1378 Converted consumers from 40A to 20A

300 basic services consumers registered for free basic electricity annually

Free basic electricity

857 indigent consumers registered for free basic electricity

Free basic electricity Report E19

N/A N/A


KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: To Ensure Compliance To Blue Drop Requirements In A Sustainable Way By Maintaining A High Quality Service Throughout The MP313 Area.


Indicators



Evidence (annexure)


ance

Corrective Measure

To provide quality and sufficient water supply and an environment not harmful to human health or well being.

% of HHs (64971) with accesstocleanand safe drinkingwater.

Currently 101.13% of STLM total HH’s (64971+ 1217HHs) have access to water services by June 2015

99.89% HHs (64971) provided with access to water services by June 2016.

Sustainable service provision to all consumers at affordable tariffs

Additional 278HHs i.e.100.43% (64971+278 new connections =65249) 65249/64971=100.43%

-Departmental Reports -New consumer accounts E20

N/A N/A

KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY Strategic Objective: To ensure compliance with green water requirements in a sustainable way by maintaining a high quality service throughout the MP313 area.


Indicators



Evidence (annexure)


ance

Corrective Measure

To ensure provision of new sanitation infrastructure while upgrading existing infrastructure

% of HHs with Access to basic decent sanitation

99.18%HHs (64971) provided

with sanitation by June 2016

97.5% HHs (64971) provided with sanitation by June 2016

Sustainable sanitation facilities for all citizens in the MP313 area

Additional 253HHs i.e. 98.29% 63606+253 new connections =63859 connections done out of 64971 98.29%

-Departmental Reports - Close-out report from service provider E21

N/A N/A




Indicators



Evidence (annexure)


ance

Corrective Measure

To ensure provision of new roads and storm water infrastructure while upgrading existing infrastructure

Number of Km of new tarred roads and storm water Constructed

11.159 Km new tarred roads Constructed by end of June 2015

8 Km of new tarredroads Constructed byend of June 2016

Improving roadusage andsafety for allusers

7.563 Km new tarred roads constructed by end of June 2016

Departmental Reports on new tarred roads E22

The yearly target could not be achieved with approved budget amount

Ensure that the adjusted yearly targets are submitted for approval during the adjustment budget

5.903 km new storm water drainage installed by June 2015

5 km of new storm water drainage installed by June 2016

Improving roadusage andsafety for allusers

3.963 km new storm water drainage installed by June 2016

Departmental Reports on new storm water drainage installed E23

The yearly target could not be achieved with approved budget amount.

Ensure that the adjusted yearly targets are submitted for approval during the adjustment budget

Number of Km of gravel roads graded and bladed

158.8 Km of fgravel roadsgraded in ruraand urban areasas at June 2015

125 km of gravellroads in rural andurban areas gradedby June 2016.

Improve riding quality and safety

186.77 kmof gravel roads graded in rural and urban areas as at June 2016

Departmental Reports on gravel roads graded E24

N/A N/A

KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERYStrategic Objective: To ensure management on the bulk water loss in all water systems.


Indicators


Actual Performance as at 30 June

2016

Evidence (annexure)


ance

Corrective Measure

% of water loss in all water systems

29.47% litres of water lossby June 2015

25% Water loss by June 2016

Reduced water loss

28.79% Water loss

Water loss report E25

N/A N/A


To provide quality and sufficient water supply and an environment not harmful to human health or well being.

Hours take to respond to a water pipe burst

4.52 hours to repair water pipe burst by June 2015.

5 hours to repair water pipe burst by June 2016

Improving respond to a water pipe burst

4.26 hours taken to repair water pipe burst

Monthly Pipe Burst Reports E26

N/A N/A

Ensure contribute to climate change



Protect the community in flooding

Floodline master plan was drafted.

Draft Flood line Master Plan E27

N/A N/A

KPA: SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT

Strategic Objective: To contribute towards a healthy, well informed and environmentally safe community

Objective KPI Baseline Indicators



Evidence (annexure)

-Reason for underperform

ance

Corrective Measure

To create safe and healthy environment

Number of water samples collected for water quality

2212 Water samples collected as at June 2015

1200 Water samples to be collected by June 2016

Quality water not harmful to human health and well being

2114 Water samples collected as at June 2016

Regen Waters Report E28

N/A N/A

KPA: SPATIAL PLANNING AND COMMUNITY DEVELOPMENTStrategic Objective: to ensure coordinated rural and urban planning and development within MP313 area of jurisdiction in order to meet the needs of the communities in a sustainable manner


Indicators



Evidence (annexure)

Reason for underperformance

Corrective Measure

To ensure orderly spatial planning and sustainable development within the municipal area towards the

Number of notices issued for illegal building activities

347 Notices were issued for illegal building activities issued as at 30/06/2015

200 Notices for illegal building activities served by June 2016

Orderly spatial and building planning

499 Notices issued

Copies of issued transgression notices F1

N/A N/A


KPA: SPATIAL PLANNING AND COMMUNITY DEVELOPMENTStrategic Objective: to ensure coordinated rural and urban planning and development within MP313 area of jurisdiction in order to meet the needs of the communities in a sustainable manner


Indicators



Evidence (annexure)

Reason for underperformance

Corrective Measure

integration of communities

Number of notices issued for illegal land uses.

173 Notices for illegal land uses issued as at 30/06/2015

100 Notices for illegal land uses issued by June 2016

Orderly spatial and building planning

292 Notices issued

Copies of issued transgression notices F2

N/A N/A

To ensure orderly spatial planning and sustainable development within the municipal area towards the integration of communities

Number of established townships

11 Townships planned and approved as at 30/06/2013

2 townships established by 30 June 2016

Newly created stands

-Dennesig North township was registered on 21 June 2016 -Approval of Newtown General Plan by the Surveyor-General is still awaited

Proclamation notices General Plans Registration Certificates F3

- Amendment and resubmission of the SG diagram due to encroachment to adjacent property delayed the approval - Third amendment of SG diagram due to incorrectly installed engineering services by the service provider

-Latest amended SG diagram submitted to SG office for approval in May 2016

KPA: SPATIAL PLANNING AND COMMUNITY DEVELOPMENT Strategic Objective: To provide safety and security to human lifeObjectives KPI Baseline

Indicator Year Target Output

Indicators


Evidence (annexure)


ance

Corrective Measure

To ensure effective coordination and implementation of housing provision

Number of consumers educated

545 Consumers educated by June 2015

1000 Consumers to be educated by June 2016

Approved consumers educated on housing matters

1196 Consumers educated by June 2016

Attendance register F4

N/A N/A


To prevent illegal occupation of land

Number of notices issued

139 Notices to be issued by June 2015

100 Notices to be issued by June 2016

Orderly spatial planning

139 Notices issued by June 2016

Notices issued F5

N/A N/A

Number of illegal structures demolished

27 Illegal structures demolished

10 Illegal structures to be demolished by June 2016

Orderly spatial planning

24 Illegal structures demolished by June 2016

Shack demolishing report F6

N/A N/A

KPA: SPATIAL PLANNING AND COMMUNITY DEVELOPMENTStrategic Objective: To provide safety and security to human life Objective KPI Baseline

Indicator Year Target Output

Indicators


Evidence (annexure)


ance

Corrective Measure

To provide effective and efficient emergency services

Number of awareness sessions conducted for the community

18 Awareness sessions conducted by June 2015

24 Awareness sessions conducted by June 2016

Provision of effective and efficient emergency services

24 Awareness sessions on fire and emergencies conducted by June 2016

Report on awareness sessions on fire and emergencies F7

N/A N/A

To provide a safe and secure environment to the community

Number of fire prevention inspections conducted

606 Fire prevention inspections conducted by June 2015

300 Fire prevention inspections to be conducted by June 2016

Contribution to a safe and secured environment

350 Fire prevention inspections conducted by June 2016

Report on fire prevention inspections F8

N/A N/A

KPA: SPATIAL PLANNING AND COMMUNITY DEVELOPMENTStrategic Objective: To provide safety and security to human lifeObjective KPI Current

Baseline Indicator



Evidence (annexure)


ance

Corrective Measure


To improve road safety

Number of new traffic-calming measures installed

21 New speed humps to be installed by June 2015

8 New speed humps to be installed by June 2016

To improve traffic flow

25 New speed humps were installed

Report on the installed Speed Humps Invoices F9

N/A N/A

To improve the free flow of traffic

Number of new traffic signals installed

4 New traffic signals installed as at June 2015

2 New traffic signals installed by 2016

To improve traffic flow

4 New traffic signals installed

Report on the installed traffic signals Invoices F10

N/A N/A

To provide an effective and efficient law enforcement

Number of road traffic law enforcement campaigns conducted

642 Road traffic law enforcement operations conducted as at June 2015

350 Road traffic law enforcement operations to be conducted by June 2016

Law enforcement operations

535 Road traffic law enforcement operations conducted by June 2016

Report on road traffic law enforcement operations F11

N/A N/A

KPA: SPATIAL PLANNING AND COMMUNITY DEVELOPMENT Strategic Objective: To contribute towards a healthy, well informed and environmentally safe community Objective KPI Current

Baseline Indicator



Evidence (annexure)


ance

Corrective Measure

To educate the community about the Library Services

Number of marketing campaigns for the Library Services

8 Marketing campaigns were conducted as at June 2015

4 Marketing campaigns to be conducted at the end of 4 successive by June 2016

Marketing campaigns for the Library Services

4 marketing campaigns on Library Services were conducted

-Report by HOD -Attendance register F12

N/A N/A


KPA: SPATIAL PLANNING AND COMMUNITY DEVELOPMENTStrategic Objective: To contribute towards a better life for the Communities by Coordinating Sustainable Social and Economic Developmental Programmes



Output Indicators


Evidence (annexure)


ance

Corrective Measure

To contribute towards improving quality life through integrated services for the children, women, person’s with disability and the elderly persons HIV and AIDS

Number of activities initiated to develop Guidelines for the Mainstreaming of Special Programmes, adopted by the Council and implemented

Draft guidelines

Developed Guidelines for the mainstreaming of Special Programmes

Improved quality of life for children, women, persons with disability and elderly persons

Developed Draft Gender & Social Development Framework (Guideline)

Draft Guidelines for the mainstreaming of Special Programmes F13

Not submitted to Council due to the proclamation of various functions to other Sector Departments

Had to re-visit the Guideline, thus the current draft.

4 Activities held for Women, Children and people with disabilities

2 Activities implemented by June 2016

Improved quality of life for children, women, persons with disability and elderly persons

2 Activities were implemented: - Launch of

Operation Vuka Sisebente on 20 October 2016

- Early Childhood Development Graduation Ceremony - 135 graduates

Attendance register and programme attached F14

N/A N/A

Number of Activities initiated to Develop the HIV and AIDS Strategy for 2012-2016 adopted by the Council and implemented

Draft Developed 2010-2016 STLM HIV and AIDS Strategy 4 Activities conducted to initiated the development of an HIV and AIDS Strategy

Developed Strategy on HIV and AIDS by December 2015

Clear implementation of guidelines on HIV and AIDS programmes

Resolution M05/11/2014

Copy of the resolution attached, refer to previous attachments F15

N/A N/A

2 Activities implemented there on by June 2016

Clear implementation of guidelines on HIV and AIDS programmes

3 Activities were implemented: - LAC Secretariat

Forum - Local World

Aids day - HCT Outreach

Attendance register and programme attached F16

N/A N/A





Output Indicators


Evidence (annexure)


ance

Corrective Measure

To initiate programmes directed at combating crimes substance abuse and social decay of youth

Number of social programmes initiated and implemented to address the well being of youth

11 Activities conducto address the welbeing of the Youth

5 Programmes implemented to address the well-being of youth by June 2016.

Programmes initiated and implemented to address the well-being of youth

13 Activities were implemented: - Sport Indaba - Ward 6 Sport

tournament - Regional Sport

Indaba - 1Wellness

Outreach Programme TOP 4

- Nkangala Mayors Cup

- Local Mayors Cup

- Basketball Club Development

- Indigenous games

- Election dialogue

- Youth dialogue - Youth month

launch - Moral decay

dialogue - January CHE

Masilela arts festival

Reports, Attendance Register, Programme F17

N/A N/A

To address the needs and challenges of young men and women by accommodating their specific issues relating to

Number of programmes created to assist youth in improving their livelihoods.

8 Programmes implemented to assist youth in improving their livelihood

4 Programmes implemented to assist youth in improving their livelihood by June 2016

Programmes created to assist youth in improving their livelihoods.

9 Programmes were implemented to assist youth in improving their livelihood: - Schools Debate

league - School Visit

Report, Attendance Register F18

N/A N/A





Output Indicators


Evidence (annexure)


ance

Corrective Measure

youth development

- Cross Over - Mayoral

Academic Awards

- Annual Career Expo

- Entrepreneur outreach Somapepha, Mhluzi, Hendrina,

- National Youth Service learner ship interviews

- NYDA office launch at HEDC

- Graduate seminar


_________________________________________ _________________

Acting Municipal Manager Date

KEY PERFORMANCE AREA TARGET TARGET ACHIEVED

TARGET NOT ACHIEVED

GOOD GOVENANCE & PUBLIC PARTICIPATION

16

16

100% 0 0%

MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT

10 7 70% 3 30%

FINANCIAL VIABILITY AND SUSTAINABILITY

23 16 69.56% 7 30.44%


6 5 83.33% 1 16.67%

SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT

28 21 75% 7 25%

SPATIAL PLANNING AND COMMUNITY DEVELOPMENT

18 16 88.88% 2 11.12%

TOTALS

100 63 63% 25 37%


APPENDIX V: AUDITOR-GENERAL’S REPORT 2015/2016

APPENDIX W: SENIOR OFFICIALS COMMENTS ON THE AUDITOR-GENERAL’S REPORT 2015/2016

VOLUME II: ANNUAL FINANCIAL STATEMENTS 2015/2016