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2014/2015ANNUAL REPORT

Januarie 2016

Annual Report for 2014/2015

CONTENTSCHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

1.1 MAYOR’S FOREWORD 11.2 EXECUTIVE SUMMARY 41.2.1 MUNICIPAL MANAGER’S OVERVIEW 41.2.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW 81.2.3 SERVICE DELIVERY OVERVIEW 101.2.4 FINANCIAL HEALTH OVERVIEW 101.2.5 ORGANISATIONAL DEVELOPMENT OVERVIEW 131.2.6 AUDITOR GENERAL REPORT 131.2.7 STATUTORY ANNUAL REPORT PROCESS 18

CHAPTER 2 – GOVERNANCE

2.1 INTRODUCTION 192.2 POLITICAL AND ADMINISTRATIVE GOVERNANCE 192.2.1 INTRODUCTION 192.2.2 POLITICAL GOVERNANCE 192.2.3 ADMINISTRATIVE GOVERNANCE 212.3 INTERGOVERNMENTAL RELATIONS 232.3.1 NATIONAL INTERGOVERNMENTAL STRUCTURES 232.3.2 PROVINCIAL INTERGOVERNMENTAL STRUCTURES 232.3.3 DISTRICT INTERGOVERNMENTAL STRUCTURES 232.4 PUBLIC ACCOUNTABILITY AND PARTICIPATION 232.4.1 PUBLIC MEETINGS 232.4.2 IDP PARTICIPATION AND ALIGNMENT 272.5 CORPORATE GOVERNANCE 272.5.1 OVERVIEW 272.5.2 INTERNAL AUDIT 272.5.3 RISK MANAGEMENT 282.5.4 ANTI-CORRUPTION AND FRAUD 282.5.5 PERFORMANCE-, RISK- AND FINANCIAL AUDIT COMMITTEE 292.5.6 SUPPLY CHAIN MANAGEMENT 292.5.7 BY-LAWS 30

Contents

2.5.8 MUNICIPAL WEBSITE- CURRENT YEAR 312.5.9 PUBLIC SATISFACTION ON MUNICIPAL SERVICES 31

CHAPTER 3 – SERVICE DELIVERY PERFORMANCE

3.1 KPI'S AND TARGETS FROM THE IDP FOR 2014/2015 333.2 BASIC SERVICES 423.2.1 WATER SERVICES 423.2.2 SEWERAGE SERVICES 473.2.3 ELECTRICITY DISTRIBUTION 513.2.4 REFUSE REMOVAL 613.2.5 HOUSING 653.2.6 FREE BASIC SERVICES AND INDIGENT SUPPORT 683.3 ROAD TRANSPORT 703.3.1 PROCLAIMED ROADS, STREETS AND STORM WATER 703.4 PLANNING AND DEVELOPMENT 753.4.1 INTRODUCTION 753.4.2 PLANNING, VALUATIONS AND BUILDING CONTROL 753.4.3 LOCAL ECONOMIC DEVELOPMENT 793.5 COMMUNITY AND SOCIAL SERVICES 823.5.1 COMMUNITY DEVELOPMENT AND THUSONG SERVICE CENTRES 823.5.2 LIBRARIES 873.5.3 CEMETERIES 893.6 ENVIRONMENTAL PROTECTION 913.6.1 OCCUPATIONAL HEALTH AND SAFETY (INCLUDING POLLUTION CONTROL) 913.7 SECURITY AND SAFETY 943.7.1 TRAFFIC AND LAW ENFORCEMENT SERVICES (INCLUDING LICENCING AND REGISTRATION SERVICES) 943.7.2 FIRE FIGHTING SERVICES 993.7.3 CIVIL PROTECTION (INCLUDING DISASTER MANAGEMENT) 1033.8 SPORT AND RECREATION 1043.8.1 SPORT, PARKS AND RECREATIONAL AREAS AND SWIMMING POOLS 1043.8.2 CARAVAN PARK YZERFONTEIN 1083.8.3 HARBOUR YZERFONTEIN 1103.9 CORPORATE POLICY AND OTHER SERVICES 1113.9.1 ADMINISTRATION CIVIL ENGINEERING SERVICES 111


3.9.2 ADMINISTRATION CORPORATE SERVICES 1163.9.3 ADMINISTRATION DEVELOPMENT SERVICES 1213.9.4 ADMINISTRATION ELECTRICAL ENGINEERING SERVICES 1263.9.5 ADMINISTRATION FINANCIAL SERVICES 1263.9.6 ADMINISTRATION OFFICE OF THE MUNICIPAL MANAGER 1363.9.7 ADMINISTRATION PROTECTION SERVICES 1393.9.8 SECRETARIAT AND ARCHIVES 1443.9.9 MARKETING AND TOURISM 1463.9.10 STRATEGIC MANAGEMENT 1483.9.11 INTERNAL AUDIT (INCLUDING RISK MANAGEMENT) 1493.9.12 HUMAN RESOURCES 1543.9.13 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES 1583.9.14 SUPPLY CHAIN MANAGEMENT 1613.9.15 MUNICIPAL PROPERTY MAINTENANCE 1643.9.16 TOWN AND COMMUNITY HALLS (INCLUDING PROPERTY AND LEGAL) 166

CHAPTER 4 –ORGANISATIONAL DEVELOPMENT PERFORMANCE

4.1 INTRODUCTION 1694.2 MUNICIPAL PERSONNEL 1694.3 MANAGING THE MUNICIPAL WORKFORCE 1724.3.1 HR POLICIES AND PLANS 1724.3.2 INJURIES, SICKNESS AND SUSPENSIONS 1734.3.3 PERFORMANCE REWARDS 1744.4 CAPACITATING THE MUNICIPAL WORKFORCE 1744.4.1 INTRODUCTION 1744.4.2 SKILLS DEVELOPMENT AND TRAINING 1754.5 MANAGING THE WORKFORCE EXPENDITURE 1784.5.1 INTRODUCTION 1784.5.2 EMPLOYEE EXPENDITURE 178

CHAPTER 5 – FINANCIAL PERFORMANCE

5.1 INTRODUCTION 1815.2 STATEMENTS OF FINANCIAL PERFORMANCE 1815.2.1 INTRODUCTION 181

Contents

5.2.2 STATEMENTS OF FINANCIAL PERFORMANCE 1815.2.3 GRANTS 1855.2.4 ASSET MANAGEMENT 1875.2.5 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS 1895.3 SPENDING AGAINST CAPITAL BUDGET 1895.3.1 INTRODUCTION 1895.3.2 CAPITAL EXPENDITURE 1895.3.3 SOURCES OF FINANCE 1905.3.4 CAPITAL SPENDING ON 5 LARGEST PROJECTS 1905.3.5 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS OVERVIEW 1915.4 CASH FLOW MANAGEMENT AND INVESTMENTS 1925.4.1 INTRODUCTION 1925.4.2 CASH FLOW 1925.4.3 BORROWING AND INVESTMENTS 1935.4.4 PUBLIC PRIVATE PARTNERSHIPS 194

CHAPTER 6 –AUDITOR GENERAL AUDIT FINDINGS

6.1 INTRODUCTION 1956.2 AUDITOR-GENERAL OPINION (PREVIOUS YEAR) 1956.2.1 AUDITOR GENERAL REPORTS 1956.3 AUDITOR-GENERAL OPINION (CURRENT YEAR) 1966.3.1 AUDITOR GENERAL REPORTS 196

GLOSSARY 198

APPENDICES 200


Financial sustainability index 2010 2011 2012 2013 2014Budget posi on 51 51 42 49 52Opera ng performance 10 9 16 19 27Liabili es management 67 76 46 51 58Liquidity management 97 98 99 98 98Financial stability 63 65 58 61 65Affordability 68 66 59 59 58Infrastructure development 49 60 64 68 70Sustainability index score 61 64 59 62 65

CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY1.1. MAYOR’S FOREWORD

It is my privilege to present the 2014/2015 Annual Report of Swartland Municipality – a municipality that has once again performed admirably despite the con nued difficulteconomic climate as well as the complex social environment in which local government has to operate at present.

Swartland Municipality has once again made good progress towards the fulfilment of its vision of being a frontline organisa on which promotes sustainable development anddelivers services effec vely and efficiently to all its people by building partnerships with all stakeholders.

It has not been an easy task, par cularly as the frustra ons of communi es regarding ma ers over which municipali es have no control, such as the con nuous increase inelectricity prices well above the consumer price index and grossly inadequate Na onal Government funding for human se lement projects, are directed at municipali es as thesphere of government closest and most accessible to the communi es. The Municipality experienced the second highest in migra on in the Western Cape, at an annual rate of4.7%. Popula on wise (±118 000) Swartland Municipality is now the sixth largest municipality in the Western Cape and the largest in the West Coast District.

According to the independent report on the state of local government finances and financial management issued by Ra ngs Africa in April 2015, Swartland achieved a sustainabilityindex score of 65% which indicates an improvement on a year to year basis. Swartland's index score is the fi h highest in the Western Cape with Stellenbosch (83%), Mosselbay(80%), Saldanha (71%) and George (69%) taking the first four places.

Swartland Municipal financial sustainability index by Ra ngs Africa. Last reviewed April 2015

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Chapter 1 – Mayor’s foreword and execu ve summary

The Municipality counts amongst a very small number of local municipali es that achieved five successive clean audits, namely for the 2010/2011, 2011/2012, 2012/2013,2013/2014 and 2014/2015 financial years. This achievement is the result of persistent hard work, good management and performance systems as well as healthy financialdiscipline. The Municipal Manager and his team must get full credit for this.

The Municipality con nued to set an example of good and responsible financial management and again performed well in 2014/2015. It maintained the good liquidity levels of theprevious year and ended the year with a cash surplus of R19.1 million a er the exclusion of non-cash transac ons.

One of the most important contributors to a municipality’s financial health is how well its ratepayers and customers pay their municipal accounts. Without adequate revenue, noteven the most basic services can be rendered properly, nor can infrastructure such as roads and electricity, water and sewerage networks be maintained or upgraded.

It is a tribute to the integrity and sense of responsibility of Swartland’s ratepayers and users of municipal services that a revenue collec on rate of 97.23% of budget could beachieved in 2014/2015 despite the difficult economic condi ons. The average collec on rate for the previous five years is 97.88%.

These results are the outcome of good financial management and indica ve of a good culture of payment. I would like to thank our Ward Councillors for helping to ins l this cultureof payment in our communi es.

The Municipality has done well in terms of basic service delivery. 100% of urban households have access to minimum service delivery levels or above. The only excep ons arebackyard dwellers that in some cases do not have formal access to services as well as the 320 erven in Silvertown Chatsworth that are subject to an evic on order from the HighCourt. In 2012 the average Blue Drop score (water quality) was 95.24% and the average Green Drop score (waste water quality) 72.7%.

The Municipality con nued to support registered indigent and poor households in the form of a monthly subsidy on their household accounts to cover the basic fees with regard tosewerage, refuse removal, water and electricity. Indigent households received 50 kWh of free electricity, 10 kl of water per month, free refuse removal per month, free access tosanita on and free rates if the value of the property is less than R100 000.

Vandalism and the is unfortunately also a growing problem in parts of the municipal area and is cos ng the Municipality hundreds of thousands of rands annually. The me hascome for a major educa onal drive to address this problem and to convince communi es that vandalism is to their own detriment. The assistance and co-opera on of WardCouncillors and ward commi ee members can be invaluable in this regard.

An extensive range of programmes and projects were carried out in the field of social development in 2014/2015. Programmes were implemented according to the five focus areasof the Swartland Social Development Policy and Strategy of 2013, focussing on child facili es/development, youth development, co-ordina on and collabora on, access toeconomy and vulnerable groups (disabled, aged, children, farm workers, women).

Highlights of the year were the Early Childhood Development Forum, who is now empowered to organise their own capacity building sessions. The Thusong Outreach programmebrought integra ve government services (SASSA, Home Affairs, Labour, Department of Social Development, Department of Agriculture, Health, Department of Local Government,SAPS etc) to all areas in Swartland. As part of the Swartland Social Development Forum, Swartland Municipality reached out to communi es in five towns to discuss social problemsin depth and devise solu ons together with communi es. Swartland Municipality was one of the first municipali es to establish a vibrant and ac ve Local Drug Ac on Commi ee(LDAC). Some of the successes of the LDAC were an awareness programme on substance abuse suppliers in Darling, a support group in Moorreesburg, preven on programmes inChatsworth Primary School, regular ar cles in the local newspaper and a Substance Abuse helpline. To alleviate poverty, 82 people were trained in food gardens in five towns. Interms of youth development 2196 were assisted to access the economy and 206 were placed in various training and job opportuni es. Over the June holidays SwartlandMunicipality funded school holiday programmes in 10 towns and two rural areas for the fi h consecu ve year, reaching 6434 children. 427 youth assisted as volunteers.

In respect of job crea on, 128 job opportuni es were created through the Municipality’s registered Expanded Public Works Programme (EPWP) projects in the 2014/2015 financialyear. 158 jobs were also created through the Municipality’s own capital projects (contracts greater than R200 000).

A verifica on process carried out in conjunc on with the Provincial Human Se lement Department showed that at the end of June 2015 there were 16 000 families wai ng for

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houses.

The target of 368 prac cally complete structures for the Abbotsdale project was reached at 30 June 2015 while the construc on of 300 serviced sites (phase 1) has commenced inFebruary 2015 for Phola Park and an addi onal of 300 serviced sites will be developed.

The Municipality updated its Integrated Human Se lement Plan and Strategy early in 2014. However, the execu on of the plan con nues to be hampered severely by the failure ofthe Na onal Government to meet its obliga on in terms of the Cons tu on to finance municipal housing projects. Communi es are o en unaware of the Na onal Government’sresponsibility in this regard and direct their anger about the slow rate at which houses are built at the municipali es.

There is a con nuous stream of new arrivals at informal se lements in Swartland and it is o en they who are the most militant in their demands for housing.

I would like to conclude by thanking my fellow-Councillors as well as the management for keeping Swartland Municipality at the forefront of service delivery, managementexcellence and dedica on. Thank you also for your loyal support and for remaining posi ve. ALDERMAN Tijmen van EssenEXECUTIVE MAYOR

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1.2. EXECUTIVE SUMMARY

1.2.1 MUNICIPAL MANAGER’S OVERVIEW

The opera ng environment for municipali es has been difficult for several years now and the 2014/2015 financial year was no less challenging than the preceding years. However, Ibelieve that we can once again look back on another good year with some notable achievements. The Municipality performed well overall and detailed informa on can beobtained elsewhere in this annual report. I would, however, like to highlight the following:

▀ AUDIT:

The Municipality has achieved a fi h successive clean audit, which confirms its reputa on as one the healthiest municipali es financially in South Africa. It is also proof of thehard work of management and personnel to meet and maintain high standards at all mes. The support of Council to “do the right thing” is indica ve.

The Auditor-General’s management report issued for the 2013/2014 financial year contains twelve (12) audit findings with recommenda ons for management to implementac on plans for improvement. Two findings related to IT ma ers, three to the audit of pre-determined objec ves, six to the financial audit and one to the IDP. None of the 12findings had an impact on the audit report. By the end of the financial year, all these findings had been resolved and there were no repeat findings carried over to the2014/2015 audit. As an illustra on of the improvement in audit outcomes, it can be men oned that the Auditor-General (AG) raised 15 audit findings in 2011 which have beenreduced to 12 in 2014 and 3 in 2015.

▀ FINANCIAL HEALTH:

The Municipality has completed another year in good financial health, a prerequisite for effec ve and sustained service delivery. It ended the 2014/2015 financial year with acash surplus of R19.1 million, a er the deduc on of non-cash transac ons had been taken into account.

A good current ra o of 3.42:1 was achieved (2014 was 3.87:1), which shows that the Municipality ended the year under review in a very liquid posi on. The ra o for turnover toaccounts receivable also came to 6:4, which shows that current assets were double the current liabili es and that the Municipality generated eight mes more revenue thanwhat the total amount of its outstanding accounts were.

The 2014/2015 revenue collec on rate amounted to 97.23% compared to an average of 97.9% for the previous four years. It once again exceeded the target of 95% and thebenchmark of 80% for financial sustainability for South African municipali es. It is proof of a good culture of payment amongst the ratepayers of Swartland, as well as theMunicipality’s excellent and diligent revenue management system.

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The Capital Replacement Reserve, the cash-backed reserve established to enable the Municipality to finance future capital expenditure, amounted to R100 million at 30 June2015, compared to R87 million at 30 June 2014.

Outstanding external loans amounted to R137.5 million at the end of the 2015 financial year, compared to R141.1 million at 30 June 2014.

Personnel costs as a percentage of total expenditure amounted to 27.78% in 2014/2015, compared to 28.5% in 2013/2014. This is in line with the na onal norm of 30% andshows that personnel costs were well under control in the year under review.

Opera ng income increased by 7.20% from R499.4 million in 2013/2014 to R535.3 million at 30 June 2015. Opera ng expenditure increased by 7.89% to R516.2 million over thesame period.

Opera ng expenditure versus budget for the year under review amounted to 94.43%, while 85% of the capital budget was spent. The la er is below standard for Swartlandmunicipality, as the average for the previous four years was 100.5%. The below standard spending of the capital budget was a challenge as external funding is o en receivedvery late in the financial year. Some of the housing grants were only received in April, which meant that the funds could not be spent by end of June, but the housing projectswill be completed by the end of the March 2016 to coincide with the end of the financial year of the Provincial Department of Human Se lements.

▀ LOCAL ECONOMIC DEVELOPMENT:

Swartland Municipality received an excellent result on its 2015 Local Economic Development Maturity Assessment as can be seen in the graph below.

In line with Council’s strategy to promote local economic development, it adopted a LED strategy in February 2014. This strategy is currently being refined and will be submi edto Council in November 2015. Part of this ini a ve will be to compile a marke ng strategy and implementa on plan.

▀ SERVICES:

Good progress was made towards the goal of eradica ng bucket toilets. However, the target of 100% eradica on in the 2015 financial year could not be achieved due to theerec on of new informal houses which are situated too far away from the sewer network to be connected. In this regard men on was made of the illegal occupa on of 281structures on privately owned land nearby Chatsworth. The case is sub judice and is presently at the Appeal court.

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Electricity losses were reduced to 5.66% in 2014/2015, compared to 5.71% in 2013/2014 and 5.85% in 2012/2013.

During the 2014/2015 financial year 1 km of gravel roads was upgraded to tar and 9 km of tar roads was resealed. Pothole repairs for 2014/2015 amount to 5713m² of roadsrepaired. A survey of tarred roads under the jurisdic on of the Municipality indicated that 49% of the roads were in a "fair to good" condi on.

The five largest capital projects for 2014/2015 were:- New waste water treatment works for the Riebeek Valley (R40.7 million)- Energy efficiency and demand side management (R10 million)- Housing Phola Park / Ilinge Lethu – UISP streets and storm water (R8.1 million)- Resealing and upgrading of roads and sidewalks (R5.9 million)- Housing Phola Park / Ilinge Lethu – UISP electricity (R4 million)

Upon applica on, R10 million was allocated in 2014/15 by the Department of Energy to improve energy efficiency and demand side management of municipal opera ons (R5million in 2013/14). For 2014/15 the grant was u lized to retrofit 3203 exis ng obsolete streetlights with energy efficient LED technology units. The project was completedwithin the financial year and the actual energy saving was evaluated by an independent measurement and verifica on specialist. The projected saving achieved based on theindependent assessment exceeds the projec ons to the extent that 1699 000 kWh per annum saving is expected, resul ng in approximately R1.06 million saving in electricitypurchases annually, in addi on to the R0.46 million annual saving already realised as from 2013/14.

▀ PLANNING AND DEVELOPMENT

A total of 889 building plan applica ons to the value of R498 million were approved in 2015, compared to 681 building plans plus 392 RDP house plans applica ons to the valueof R340 million in 2014. The average building plan approval meframe was reduced from more than 70 days in 2009 to 9 days in 2015 on average.

An extensive range of programmes and projects were carried out in the field of socio-economic development in 2014/2015. The focus in 2014-2015 was to reach out tocommuni es together with other government partners in order work hand in hand with communi es to solve socio-economic problems. This manifested via the road shows ofthe Swartland Social Development Forums, the community projects of the Local Drug Ac on Commi ee, the community structures established and ac vated as part of theRural Socio Economic Programme and lastly the Thusong Outreach programme which brought integrated government services to all towns in the Swartland municipal area. Youth apathy was tackled with job readiness and me management workshops as well as a youth camp to improve communica on channels between the municipality’s youthoffice and unemployed youth. The Early Childhood Development Forum started to arrange their own func ons and capacity building sessions and engaged in Early ChildhoodDevelopment structures on a provincial and na onal level. Entrepreneurship training was provided in collabora on with government and private sector partners.

Through an established Internal Social Development Commi ee, the municipality approved a recruitment policy, which requires police checks from applicants who apply forposi ons where they will work directly with children (aged 0-18) and will have access to children. This shows the seriousness of the municipality to ensure the safety of childrenby adhering to the Children’s Amendment Act 42 of 2007. Furthermore with assistance of the IT division, the youth office got access to Facebook in order to improvecommunica on with youth through this social media pla orm. An assessment was competed to determine accessibility of municipal buildings for wheel chair users and gavesugges ons for future improvements to facili es.

The Municipality con nued with its strategy to assist and support fes vals to market the municipal area and s mulate the local economy. These fes vals included (but were notlimited to) the Kyknet Outdoor Expo, Riebeek Valley Olive Fes val and Darling Voorkamer Fest. The Municipality also hosted the level 1 swimming championship. Thepar cipa on in and a endance of these fes vals were good and can be regarded as very successful in mee ng their objec ves.

▀ IMPROVING ORGANISATIONAL MANAGEMENT AND PERFORMANCE

The Municipality once again performed well in terms of its Performance Management System and Service Delivery and Budget Implementa on Plan (SDBIP), showing that it is aresults-oriented organisa on. 224 indicators were measured during the year of which 13 were General KPI's in terms of the Municipal Planning and Performance Management

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Regula ons of 2001, 46 were indicators from the IDP and 165 were generic indicators of the Municipal Manager and Directors. Out of the 224 indicators 15 (6.7%) were ratedhigher than 3 on a 5 point scale, 179 (79.9%) were rated 3 and 30 (13.4%) were rated lower than 3. These results are reported on in Chapter 3 of this Report and reasons aregiven for the indicators that were rated lower than 3.

The following top five risks of the municipality have been iden fied for which management ac on plans are indicated in the Risk Register and IDP:- Insufficient revenue to meet the demand for services- Expensive and unaffordable services resul ng in increase in debt- Ageing and poorly maintained infrastructure which can result in a collapse in services- Lack of appropriately skilled and produc ve staff- Failure to implement mSCOA – Municipal Standard Chart of Accounts by July 2017 (to be added to the next revision of the IDP).

In July 2015 Council adopted the Policy on Unauthorised, Irregular, Fruitless and Wasteful and Unforeseen and Unavoidable Expenditure. The basic principle of this policy is toplace the responsibility for all expenditure rela ng to a specific vote on a Senior Manager, as the vote holder, within the various Directorates.

A Disciplinary Commi ee has been established to inves gate allega ons of financial misconduct in the municipality and to monitor the ins tu on of disciplinary proceedingsagainst an alleged transgressor in terms of the Municipal Regula ons and Financial Misconduct Procedures and Criminal Proceedings which became effec ve from 1 July 2014.

A conserva ve approach is followed for the a endance of congresses, training and mee ngs outside the Western Cape. Subjects should be municipal specific or related to themunicipal environment and func ons. Travelling outside the Swartland area needs prior approval.

The Council con nued with phase 2 of its ‘ra onalisa on of by-laws’ project during 2014/15 and promulgated either new or revised by-laws (and in some instances applicablepolicies) in respect of the following ma ers: Credit Control and Debt Collec on; Electricity Supply; Fire Safety; Property Rates; Public Ameni es; Roads and Streets; Storm WaterManagement; Tariffs; Water Supply, Sanita on Services and Industrial Effluent; Air Quality; Transfer of Municipal Capital Assets; Submission of Building Plans; Control ofUndertakings that sell Liquor to the Public; Outdoor Adver sing and Signage; Pounds.

Financial policies regarding the following specific ma ers were also adopted by Council in May 2015: Long Term Financial Planning; Funding and Reserve; Debt and Borrowing.

▀ CHALLENGES FOR THE 2015/2016 FINANCIAL YEAR:

The most important is to maintain the high levels of service delivery which have become a hallmark of this Municipality while at the same me keeping it affordable for ourratepayers and users of services in the con nued difficult economic climate.

The presence of informal se lements con nues to impact on the percentages of households that could not be provided with minimum levels of service, o en because theywere inaccessible or situated too far from bulk infrastructure services to be connected.

In the near future the West Coast District Municipality may have to transfer its water infrastructure to Swartland Municipality and the other two B municipali es (Bergrivier andSaldanha Bay). The two main concerns that arise with the concurrence of the banking ins tu ons is the transfer of an external loan amoun ng to ±R70 million from WCDM toSwartland as well as future implica ons of maintaining the transferred assets (infrastructure). A major concern is that the scenario above might weaken Swartland’s ability totake up future loans to finance future capital projects. Swartland budgeted R42 million in external loans for water service capital projects in the 2015/16 MTREF period.

There appears to be a growing unhappiness with regard to housing ma ers especially with the implementa on of the new age limita on of 40 years. The challenge will be toimprove the community’s understanding of the responsibili es of the various spheres of Government with regard to the provision of housing as well as certain basic services. Ward Councillors as well as Ward Commi ee members have an important role to play in this regard.

▀ IN CONCLUSION:

I am pleased to report that the management team of the Municipality is well se led and that my team and I could rely on a loyal and hard-working personnel corps in the year

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Age Category Male Female TotalAge: 00 - 04 5 257 5 105 10 362Age: 05 - 09 4 562 4 581 9 143Age: 10 - 19 9 026 9 354 18 380Age: 20 - 29 11 273 10 967 22 240Age: 30 - 39 8 613 8 268 16 881Age: 40 - 49 7 956 7 877 15 833Age: 50 - 59 5 095 5 364 10 459Age: 60 - 69 2 994 3 306 6 300Age: 70 + 1 696 2 468 4 164

Total Number Of Households Housholds Earning Less than 2X State Pension Grant +10%19 086 8 173

Year Housing backlog aspropor on of current

demand

Unemployment Rate Propor on of householdswith no income

Propor on of popula on inlow-skilled employment

HIV/Aidsprevalence

Illiterate peopleolder than 14 years

2011 (Census) 0.00% 12.73% 10.45% 36.40% 1039 22.00%

under review. I would therefore like to thank all for having helped to make 2014/2015 another success.

I would again like to thank Council, and in par cular the Execu ve Mayor, the Execu ve Deputy Mayor, the Speaker, the Mayoral Commi ee and Council members for theirsupport and posi ve leadership. This has helped to create an environment in which my team and I could stay focused on service delivery and overcoming difficult challengesthat came our way.

Joggie ScholtzMUNICIPAL MANAGER

1.2.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

(a) Popula on Details (2011 Census)

(b) Households and poor households (Current Year)

(c) Socio Economic Status

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Town Households Popula onAbbotsdale 924 3 762Chatsworth 679 2 326Darling 2 800 10 420Gro o Bay 94 220Kalbaskraal 659 2 411Koringberg 317 1 214Malmesbury (Ilinge Lethu) 4 161 13 671Malmesbury (Wesbank) 2 536 11 861Malmesbury (Rest) 2 776 10 365Moorreesburg 2 578 7 760Rosenhof 1 120 5 117Riebeek-Kasteel 1 345 4 760Riebeek West 1 143 4 605Riverlands 427 1 726Yzerfontein 490 1 140Swartland Non-Urban 7 275 32 404TOTAL 29 324 113 762

Major Natural Resource Relevance to communityWater ResourceAgriculture 19.2% contribu on to GDPMining 0.3% contribu on to GDPHeritage 14.7%Conserva on Areas

(d) Overview of Neighbourhoods within Swartland (2011 Census)

(e) Natural Resources

(f) Comment on background data

None

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Service Access To Free Services Free Access PercentageElectricity Distribu on 8 173 100.00%Rates Services 8 173 100.00%Refuse Removal 8 173 100.00%Sewerage Services 8 173 100.00%Water Services 8 173 100.00%

1.2.3 SERVICE DELIVERY OVERVIEW

(a) Introduc on

Basic Services were delivered to a total of 19 086 households as at 30 June 2015, which were delivered as follows:▀ Water - 19 086 households▀ Electricity - 15 055 households + 1 875 Eskom area households = 16 930 households▀ Sanita on - 17 970 households▀ Refuse removal - 18 713 households

Out of these 19 086 households, free basic services were delivered to a total of 8 173 indigent household in the following manner:▀ Electricity - 50 kWh free▀ Water - 10 kl free to▀ Sanita on - per month levy

▀ Refuse removal - per month levy for one removal per week

(b) Propor on of poor households with access to basic services (current year)

1.2.4 FINANCIAL HEALTH OVERVIEW

(a) Introduc on

The municipality is currently s ll in a healthy financial posi on but good financial management prac ces and the effect of cost pressures on financial resources requires acon nuous evalua on of the financial posi on of the municipality. These cost pressures include the maintenance of the ageing infrastructure, as well as items beyond the control ofthe municipality, such as the effect of the Eskom increases (8.06%) and the increase of the purchase price of water (13.16%) as well as the collec ve agreements on employeerelated costs (6.79%). Total revenue for the year amounts to R535.3m while opera ng expenditure amounts to R516.2m, with the budgeted surplus being R19.1m.

The Municipal Finance Management Act 2003, together with the implementa on of Generally Recognised Accoun ng Prac ces (GRAP) in local government, shi ed the focus fromthe tradi onal “short-term balanced Income and Expenditure budgets” to sustainability over at least the medium term with emphasis on cash-funding. The municipality closed thefinancial year with more cash than the previous financial year and must s ll put controls in place to ensure that cash recourses do not deplete. The demand for infrastructureinvestment, and especially the replacement of ageing infrastructure, requires a significant amount of cash, and the municipality iden fied the preserva on of its cash resources

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Viability Informa on Average for Western Cape Indica ve BenchmarkResults for Swartland Municipality

Current Year Previous YearAcid Test Ra o 1.52 : 1 2 : 1 3.71 : 1 4.43:1Payment Level (Excluding write-off of bad debts) 93.47% >95% 96.69% 96.64%Cash Generated from Opera ons 20% 20% 24% 19%Purchase of PPE as % of Cash Generated 91% 100 83% 119%Cost Coverage (months) 1.92 >4 7.43 8.4Debtors Turnover (days) (Before impairment) 138.64


Expenditure Type Ra o1 Employees 27.78%2 Repairs and Maintenance 3.81%3 Other 68.41%

(d) Opera ng Ra os

(e) Comment on opera ng ra os

Total expenditure is 5.57% under budget, mainly as a result of expenditure that realised lower than an cipated due to several line – items that have been under spent of which thefollowing are examples: Housing Abbotsdale: Topstructure,Housing Phola Park,Housing Phola Park,Planning: Municipal Flats,Social and Economic Facili es and Traffic Fines: Syntel.Impairment was also less than expected. Revenue realised 0.33% less than the budget, due to opera ng and capital grant transfers that was linked to the delayed housing projectthat did not fully realised as planned.

Employee costs (including Councillors Remunera on) represent 27.78% of total opera ng expenditure, which is in line with expected norms set by the Na onal Treasury. Shoulddeprecia on, bulk purchases for electricity and water be excluded from expenses, the employee cost as a percentage of opera ng expenditure is 51.31%, which are well below thebenchmark.

Repairs and Maintenance costs represents 3.81% of total opera ng expenditure. This is well below Na onal Treasury’s expected norm of 8%, however there is a totally differentapproach to cost alloca ons between the Na onal Treasury’s methods and the municipality’s methods. It must, however, be noted that repair costs are also included in the capitalbudget which must also be taken into account.

Should deprecia on and bulk purchases for electricity be excluded from expenses, the repairs and maintenance as a percentage of opera ng expenditure is 7.03% which is s lllower than the norm. The increased spending on new infrastructure, mostly funded from grants, as well as the age of the exis ng infrastructure requires significant spending onrepairs and maintenance, but a lack of funding puts a damper to this requirement. The municipality is looking at strategies to ensure proper maintenance of all municipal assets.

Deprecia on charges are well above the average as a result of the deemed cost approach as described in the financial overview above. Various discussions were held in this regardand it was decided to stay on the current method of calcula ng for only that por on that is affordable by the community to contribute to the CRRF in cash.

Cash flow management and forecas ng is a cri cal step in determining if the budget is funded over the medium-term. It also improves understandability for councillors andmanagement. Some specific features include:

Clear separa on of receipts and payments within each cash flow category; Clear separa on of capital and opera ng receipts from government, which also enables cash from “Ratepayers and other" to be provide for as cash inflow based on actual

performance. In other words the actual collec on rate of billed revenue, and Separa on of borrowing and loan repayments (no set-off), to assist with MFMA compliance assessment regarding the use of long term borrowing (debt). Swartland’s risk factor is six months against a benchmark of four months, keeping in mind the exclusion of bulk water purchases and only Equitable Share that gets recognised asgrants received.

- 12 -


Original Budget Adjustment Budget Actual ExpenditureR81 532 545 R113 474 708 R96 134 326

(f) Total Capital Expenditure

(g) Comment on capital expenditure

Expenditure on the capital budget was underspent by 15%. This was due to the delay in the Phola Park/ Ilinge Lethu UISP Services project as well as the purchase of land fromTransnet not realising as planned. The commencement of the Phola Park/ Ilinge Lethu UISP Services project is subject to mi ga on as a result of comments and objec ons receivedduring the public par cipa on process. The remaining funds will be transferred to the new financial year.

1.2.5 ORGANISATIONAL DEVELOPMENT OVERVIEW

Swartland Municipality aims to ensure service delivery of the best possible quality for all the inhabitants of the Municipality. To achieve this, a prime goal of the Municipality’sHuman Resource Strategy is: To create a flexible organisa on that enables op mal performance by developing and retaining a properly skilled and representa ve workforce. Swartland Municipality considers its human resources as one of its most cri cal assets.

1.2.6 AUDITOR GENERAL REPORT

Follows on the next page

- 13 -

1

Report of the auditor-g

eneral to the Weste

rn Cape

Provincial Parlia

ment and the council on Swartla

nd

Municipality

Report o

n the fin

ancial sta

tements

Introduction

1.

I have a

udite

d th

e fin

ancia

l sta

tem

ents

of th

e S

wartla

nd M

unic

ipa

lity set o

ut o

n p

ages 4

to

93, w

hic

h c

om

pris

e th

e s

tate

ment o

f financia

l positio

n a

s a

t 30 J

une 2

015, th

e s

tate

ment o

f fin

ancia

l perfo

rmance,

sta

tem

ent

of

changes

in

net

assets

, cash

flow

sta

tem

ent

and

sta

tem

ent

of

com

paris

on of

budget

info

rmatio

n w

ith actu

al

info

rmatio

n fo

r th

e ye

ar

then

ended, a

s w

ell a

s th

e n

ote

s, c

om

pris

ing a

sum

mary

of s

ignific

ant a

ccountin

g p

olic

ies a

nd

oth

er e

xpla

nato

ry info

rmatio

n.

Accounting offic

er’s re

sponsib

ility for th

e fin

ancial sta

tements

2.

The

accountin

g

offic

er

is

responsib

le fo

r th

e pre

para

tion

and fa

ir pre

senta

tion

of

these

financia

l sta

tem

ents

in a

ccord

ance w

ith S

outh

Afric

an S

tandard

s o

f Genera

lly Recogn

ised

Accountin

g P

ractic

e (S

A S

tandard

s o

f GR

AP

) and th

e re

quire

ments

of th

e M

unic

ipal F

inance

Managem

ent A

ct o

f South

Afric

a, 2

003 (A

ct N

o. 5

6 o

f 2003) (M

FM

A) a

nd th

e D

ivis

ion o

f R

evenue A

ct o

f South

Afric

a, 2

014 (A

ct N

o.1

0 o

f 2014) (D

oR

A), a

nd fo

r such in

tern

al c

ontro

l as th

e accountin

g offic

er

dete

rmin

es is

necessary

to

enable

th

e pre

para

tion of

financia

l sta

tem

ents

that a

re fre

e fro

m m

ate

rial m

issta

tem

ent, w

heth

er d

ue to

fraud o

r erro

r. Auditor-g

eneral’s re

sponsib

ility

3.

My re

sponsib

ility is

to e

xpre

ss a

n o

pin

ion o

n th

ese fin

ancia

l sta

tem

ents

based o

n m

y audit. I

conducte

d m

y audit in

accord

ance w

ith In

tern

atio

nal S

tandard

s o

n A

uditin

g. T

hose s

tandard

s

require

that I c

om

ply

with

eth

ical re

quire

ments

, and p

lan a

nd p

erfo

rm th

e a

udit to

obta

in

reasonable

assura

nce

about

wheth

er

the

financia

l sta

tem

ents

are

fre

e

from

m

ate

rial

mis

sta

tem

ent.

4.

An a

udit in

volv

es p

erfo

rmin

g p

rocedure

s to

obta

in a

udit e

vid

ence a

bout th

e a

mounts

and

dis

clo

sure

s in

the fin

ancia

l sta

tem

ents

. The p

rocedure

s s

ele

cte

d d

epend o

n th

e a

udito

r’s

judgem

ent, in

clu

din

g th

e a

ssessm

ent o

f the ris

ks o

f mate

rial m

issta

tem

ent o

f the fin

ancia

l sta

tem

ents

, wheth

er d

ue to

fraud o

r erro

r. In m

akin

g th

ose ris

k a

ssessm

ents

, the a

udito

r consid

ers

inte

rnal c

ontro

l rele

vant to

the m

unic

ipality

’s p

repara

tion a

nd fa

ir pre

senta

tion o

f th

e fin

ancia

l sta

tem

ents

in

ord

er

to desig

n audit

pro

cedure

s th

at

are

appro

pria

te in

th

e

circ

um

sta

nces, b

ut n

ot fo

r the p

urp

ose o

f expre

ssin

g a

n o

pin

ion o

n th

e e

ffectiv

eness o

f the

munic

ipality’s

in

tern

al

contro

l. A

n

audit

als

o

inclu

des

evalu

atin

g

the

appro

pria

teness

of

accountin

g

polic

ies

used

and

the

reasonable

ness

of

accountin

g

estim

ate

s

made

by

managem

ent, a

s w

ell a

s e

valu

atin

g th

e o

vera

ll pre

senta

tion o

f the fin

ancia

l sta

tem

ents

. 5.

I belie

ve th

at th

e a

udit e

vid

ence I h

ave o

bta

ined is

suffic

ient a

nd a

ppro

pria

te to

pro

vid

e a

basis

for m

y audit o

pin

ion.

- 14 -

2

Opinion

6.

In m

y opin

ion, th

e fin

ancia

l sta

tem

ents

pre

sent fa

irly, in

all m

ate

rial re

spects

, the fin

ancia

l positio

n o

f the S

wartla

nd M

unic

ipality a

s a

t 30 J

une 2

015 a

nd its

financia

l perfo

rmance a

nd

cash flo

ws fo

r the ye

ar th

en e

nded, in

accord

ance w

ith S

A S

tandard

s o

f GR

AP

and th

e

require

ments

of th

e M

FM

A a

nd D

oR

A.

Emphasis o

f matter

7.

I dra

w a

ttentio

n to

the m

atte

r belo

w. M

y opin

ion is

not m

odifie

d in

respect o

f this

matte

r. Material underspending of th

e budget

8.

As d

isclo

sed in

the sta

tem

ent

of c

om

paris

on o

f budget

and a

ctu

al

am

ounts

for th

e year

ended 3

0 J

une 2

015 th

e m

unic

ipality h

as u

nders

pent o

n its

final a

ppro

ved c

apita

l budget to

th

e a

mount o

f R17,4

millio

n (2

013-1

4: R

6,1

millio

n).

Additio

nal m

atters

9.

I dra

w a

ttentio

n to

the m

atte

rs b

elo

w. M

y o

pin

ion is

not m

odifie

d in

respect o

f these m

atte

rs.

Unaudited supplementary schedules

10.

The s

upple

menta

ry info

rmatio

n s

et o

ut o

n p

ages 9

4 to

104 d

oes n

ot fo

rm p

art o

f the fin

ancia

l sta

tem

ents

and is

pre

sente

d a

s a

dditio

nal in

form

atio

n. I h

ave n

ot a

udite

d th

ese s

chedule

s

and a

ccord

ingly I d

o n

ot e

xpre

ss a

n o

pin

ion th

ere

on.

Unaudited disclosure notes

11.

In te

rms o

f sectio

n 1

25(2

)(e) o

f the M

FM

A th

e m

unic

ipality

is re

quire

d to

dis

clo

se p

artic

ula

rs

of n

on-c

om

plia

nce w

ith th

e M

FM

A. T

his

dis

clo

sure

require

ment d

id n

ot fo

rm p

art o

f the a

udit

of th

e fin

ancia

l sta

tem

ents

and a

ccord

ingly

I do n

ot e

xpre

ss a

n o

pin

ion th

ere

on.

Report o

n other le

gal and regulatory requirements

12.

In a

ccord

ance w

ith th

e P

ublic

Audit A

ct o

f South

Afric

a, 2

004 (A

ct N

o. 2

5 o

f 2004) a

nd th

e

genera

l notic

e is

sued in

te

rms th

ere

of,

I have a re

sponsib

ility to

re

port

findin

gs on th

e

reporte

d p

erfo

rmance in

form

atio

n a

gain

st p

redete

rmin

ed o

bje

ctiv

es fo

r sele

cte

d o

bje

ctiv

es

pre

sente

d in

the a

nnual p

erfo

rmance re

port, c

om

plia

nce w

ith le

gis

latio

n a

nd in

tern

al c

ontro

l. T

he

obje

ctiv

e

of

my

tests

w

as

to

identify

re

porta

ble

fin

din

gs

as

describ

ed

under

each

subheadin

g b

ut n

ot to

gath

er e

vid

ence to

expre

ss a

ssura

nce o

n th

ese m

atte

rs. A

ccord

ingly, I

do n

ot e

xpre

ss a

n o

pin

ion o

r conclu

sio

n o

n th

ese m

atte

rs.

Predetermined objectives

13.

I perfo

rmed p

rocedure

s to

obta

in e

vid

ence a

bout th

e u

sefu

lness a

nd re

liability o

f the re

porte

d

perfo

rmance

info

rmatio

n

for

the

follo

win

g

sele

cte

d

obje

ctiv

e

pre

sente

d

in

the

annual

perfo

rmance re

port o

f the m

unic

ipality fo

r the ye

ar e

nded 3

0 J

une 2

015:

• S

trate

gic

outc

om

e 4

: Access to

affo

rdable

and re

liable

munic

ipal in

frastru

ctu

re a

ssets

on

pages 3

6 to

39.

14.

I evalu

ate

d th

e re

porte

d p

erfo

rmance in

form

atio

n a

gain

st th

e o

vera

ll crite

ria o

f usefu

lness

and re

liability.

- 15 -

3

15.

I evalu

ate

d th

e u

sefu

lness o

f the re

porte

d p

erfo

rmance in

form

atio

n to

dete

rmin

e w

heth

er it

was p

resente

d in

accord

ance w

ith th

e N

atio

nal T

reasury

’s a

nnua

l repo

rting p

rincip

les a

nd

wheth

er

the re

porte

d perfo

rmance w

as consis

tent

with

th

e p

lanned o

bje

ctiv

es.

I fu

rther

perfo

rmed te

sts

to d

ete

rmin

e w

heth

er in

dic

ato

rs a

nd ta

rgets

were

well d

efin

ed, v

erifia

ble

, specific

, m

easura

ble

, tim

e

bound

and

rele

vant,

as

require

d

by

the

Natio

nal

Tre

asury

’s

Fra

mew

ork

for m

anagin

g p

rogra

mm

e p

erfo

rmance in

form

atio

n.

16.

I assessed th

e re

liability o

f the re

porte

d p

erfo

rmance in

form

atio

n to

dete

rmin

e w

heth

er it w

as

valid

, accura

te a

nd c

om

ple

te.

17.

I did

not

identify

any

mate

rial

findin

gs on th

e usefu

lness and re

liability

of

the re

porte

d

perfo

rmance in

form

atio

n fo

r the s

ele

cte

d o

bje

ctiv

e.

Additio

nal m

atters

18.

Alth

ough I id

entifie

d n

o m

ate

rial fin

din

gs o

n th

e u

sefu

lness a

nd re

liability o

f the re

porte

d

perfo

rmance in

form

atio

n fo

r the s

ele

cte

d o

bje

ctiv

e, I d

raw

atte

ntio

n to

the fo

llow

ing m

atte

rs:

Achievement of planned targets

19.

Refe

r to

th

e

annual

perfo

rmance

report

on

pages

33

to

168

for

info

rmatio

n

on

the

achie

vem

ent o

f the p

lanned ta

rgets

for th

e ye

ar.

Unaudited supplementary information

20.

The s

upp

lem

enta

ry info

rmatio

n s

et o

ut o

n p

ages 3

3 to

36 a

nd 3

9 to

168 d

oes n

ot fo

rm p

art

of

the annual

perfo

rmance re

port

and is

pre

sente

d as additio

nal

info

rmatio

n.

I have not

audite

d th

ese s

chedule

s a

nd, a

ccord

ingly

, I do n

ot re

port th

ere

on.

Compliance with legisla

tion

21.

I perfo

rmed p

rocedure

s to

obta

in e

vid

ence th

at th

e m

unic

ipality h

ad c

om

plie

d w

ith a

pplic

able

le

gis

latio

n re

gard

ing fin

ancia

l matte

rs, fin

ancia

l managem

ent a

nd o

ther re

late

d m

atte

rs. I d

id

not id

entify

an

y insta

nces o

f mate

rial n

on-c

om

plia

nce w

ith s

pecific

matte

rs in

key le

gis

latio

n,

as s

et o

ut in

the g

enera

l notic

e is

sued in

term

s o

f the P

AA

. Internal control

22.

I consid

ere

d

inte

rnal

contro

l re

levant

to

my

audit

of

the

financia

l sta

tem

ents

, annual

perfo

rmance

report

and

com

plia

nce

with

le

gis

latio

n.

I did

not

identify

an

y sig

nific

ant

defic

iencie

s in

inte

rnal c

ontro

l.

- 16 -

4

Other re

ports

Investig

ations

23.

The

inte

rnal

audit

unit

of

the

munic

ipality

perfo

rmed

an

investig

atio

n

on

behalf

of

the

munic

ipality, w

hic

h c

ove

red th

e p

erio

d 1

July

2014 to

30 J

une 2

015. T

he in

vestig

atio

n w

as

initia

ted

based

on

an

alle

gatio

n

of

possib

le

mis

appro

pria

tion

of

munic

ipal

assets

. T

he

investig

atio

n w

as c

onclu

ded o

n 3

0 S

epte

mber 2

015. N

o c

rimin

al p

roceedin

gs w

ere

institu

ted

as th

e e

mplo

yees in

volv

ed h

ave re

sig

ned a

nd th

ere

fore

no o

utc

om

e c

ould

be d

ete

rmin

ed.

Cape T

ow

n

30 N

ovem

ber 2

015

- 17 -


No. Ac vity Timeframe1 Considera on of next financial year’s Budget and IDP process plan. Except for the legisla ve content, the process plan should confirm in-year

repor ng formats to ensure that repor ng and monitoring feeds seamlessly into the Annual Report process at the end of the Budget/IDPimplementa on period July

2 Implementa on and monitoring of approved Budget and IDP commences (In-year financial repor ng).3 Finalise the 4th quarter Report for previous financial year4 Municipality submits dra Annual Performance Report including consolidated annual financial statements to Auditor General August5 Annual Performance Report as submi ed to Auditor General to be provided as input to the IDP Analysis Phase6 Auditor General audits Annual Report including consolidated Annual Financial Statements and Performance data September -

October7 Municipali es receive and start to address the Auditor General’s comments

January - February8 Mayor tables Annual Report and audited Financial Statements to Council complete with the Auditor- General’s Report9 Audited Annual Report is made public and representa on is invited10 Oversight Commi ee assesses Annual Report11 Council adopts Oversight report

March12 Oversight report is made public13 Oversight report is submi ed to relevant provincial councils14 Commencement of dra Budget/ IDP finalisa on for next financial year. Annual Report and Oversight Reports to be used as input

1.2.7 STATUTORY ANNUAL REPORT PROCESS

- 18 -

Chapter 2 - Governance

CHAPTER 2 – GOVERNANCE

2.1 INTRODUCTION

Governance is seen by Swartland Municipality as the exercise of economic, poli cal and administra ve authority to manage the municipality’s affairs at all levels. It comprises themechanisms, processes and ins tu ons through which ci zens and groups ar culate their interests, exercise their legal rights, meet their obliga ons and mediate their differences.To ensure good governance, which is – among other things – par cipatory, transparent and accountable – the Municipality views the four components dealt with in this Chapter asinterrelated and mutually reinforcing.

2.2 POLITICAL AND ADMINISTRATIVE GOVERNANCE

2.2.1 INTRODUCTION

Sec on 151(3) of the Cons tu on states that the council of a municipality has the right to govern, on its own ini a ve, the local government affairs of the local community.Poli cal governance is the process of decision-making to formulate policy, whereas administra ve governance is the system of policy implementa on.

Swartland Municipality strives towards achieving the following characteris cs of efficient government in both the above legs of governance: •Par cipa on; •Rule of law;•Transparency; •Responsiveness; •Consensus orienta on; •Equity; •Effec veness and efficiency; •Accountability; and •Strategic vision.

2.2.2 POLITICAL GOVERNANCE

(a) Introduc on

Swartland Municipality has a mayoral execu ve system combined with a ward par cipatory system, whereby execu ve leadership vests in the execu ve mayor who is assisted by amayoral commi ee. In terms of delega on, all legisla ve powers vest in the execu ve mayor, except for those listed by law for exclusive decision-making by the full council.

Recommenda ons on their respec ve por olios are made for considera on to the execu ve mayor by three commi ees, appointed in terms of sec on 80 of the Structures Act,1998, i.e. commi ees dealing with ma ers rela ng to (1) Administra on and Finance, (2) Technical (Civil and Electrical) Services and (3) Development and Protec on Services. Wardcommi ees for each of the twelve wards within the municipal area contribute by advising the municipality on ma ers affec ng the respec ve wards.

The Audit Commi ee provides opinions and recommenda ons on the overall control environment, financial processes and performance to Council, and also provides comments tothe Municipal Public Accounts Commi ee (MPAC) on the Annual Report.

Swartland Municipality has established a Municipal Public Accounts Commi ee (MPAC) as an oversight commi ee, comprised of non-execu ve councillors, with the specificpurpose of providing the Council with comments and recommenda ons on the Annual Report. The Municipal Public Accounts Commi ee’s (MPAC) report will be publishedseparately in accordance with MFMA guidance.

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MAYOR

Ald T van Essen

DEPUTY MAYOR SPEAKER

Ald MSI Goliath Ald NJA Rust

MAYORAL COMMITTEE MEMBERS

Clr M Rangasamy Clr R vd Westhuizen Clr M van Zyl Clr W Wilskut

(b) Poli cal structure

(c) Councillors

The Municipal Council of the Municipality has twenty three councillors, as determined by the Provincial Minister, of which twelve are ward councillors and eleven are propor onallyelected councillors. Refer to Appendix A where a full list of councillors can be found. Also refer to Appendix B which sets out commi ees and commi ee purposes.

(d) Poli cal decision-taking

Sec on 53 of the Municipal Systems Act (Act 32 of 2000) s pulates inter alia that the respec ve roles and areas of responsibility of each poli cal structure and poli cal office bearerof the Municipality and of the municipal manager must be defined. The sec on below is based on the Sec on 53 role clarifica on that was approved at the council mee ng of May2011.

Municipal Council governs by making and administra ng laws, raising taxes and taking decisions that affect people’s rights; is a tax authority that may raise property taxes and service levies;

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is the primary decision maker and takes all the decisions of the Municipality except those that are delegated to poli cal structures, poli cal office bearers, individualcouncillors or officials;

can delegate responsibili es and du es for the purposes of fast and effec ve decision making; must strive towards the cons tu onal objects of local government; must consult the community with respect to local government ma ers; and is the only decision maker on non-delegated ma ers such as the approval of the IDP and budget.

Execu ve Mayor is the execu ve and poli cal leader of the Municipality and is in this capacity supported by the mayoral commi ee; is the social and ceremonial head of the Municipality; must iden fy the needs of the Municipality and must evaluate progress against key performance indicators; is the defender of the public’s right to be heard; has many responsibili es with respect to the annual budget, the budget process, budget control and various other financial ma ers; and performs the du es and exercise the responsibili es that were delegated to him by the council.

Mayoral Commi ee its members are elected by the Execu ve Mayor from the ranks of councillors, with the excep on of the Deputy Execu ve Mayor who is elected by the council and is an ex

officio member of the mayoral commi ee; its func onal responsibility area is linked to that of the Execu ve Mayor to the extent that he must operate together with the members of the mayoral commi ee; its primary task is to assist the Execu ve Mayor in the execu on of his powers - it is in fact an “extension of the office of Execu ve Mayor”; and the commi ee has no powers of its own – decision making remains that of the Execu ve Mayor.

2.2.3 ADMINISTRATIVE GOVERNANCE

(a) Introduc on

By law, the Municipal Manager automa cally is the head of administra on as well as the accoun ng officer. The Municipal Manager has extensive statutory and delegated powersand du es, as well as powers and du es that can be inferred from such statutory and delegated powers and du es.The Municipal Manager is, amongst others, responsible – for the forma on and development of an economical, effec ve, efficient and accountable administra on; to ensure that the municipal “machine” operates efficiently, that the organiza onal structure is able to perform the various tasks and exercise the necessary controls; to fulfil a leadership role in the administra on; this is of utmost importance to influence the ac ons of staff and to inspire and persuade them to work together to realize the

municipality’s goals; for the implementa on of the municipality’s integrated development plan, and the monitoring of progress with implementa on of the plan; for the financial responsibili es as accoun ng officer as determined by the MFMA.

The Municipal Manager is the chief adviser of the municipality and must advise the poli cal structures and poli cal office-bearers of the municipality. The Municipal Manager mustsee to the carrying out of the decisions of the poli cal structures and poli cal office-bearers of the municipality.The Municipal Manager must facilitate par cipa on by the local community in the affairs of the municipality and must also develop and maintain a system whereby communitysa sfac on with municipal services is assessed.The Swartland Municipality adopted an “outcomes” approach to ensure that the management of the Municipality is pursuing the effec ve, efficient and economical func oning of

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MUNICIPAL MANAGER

Mr JJ Scholtz

DIRECTORS

FINANCIALSERVICES

CORPORATESERVICES

CIVIL ENGINEERINGSERVICES

ELECTRICAL ENGINEERINGSERVICES

DEVELOPMENTSERVICES

PROTECTIONSERVICES

Mr KC Cooper Ms MS Terblanche Mr AJ Botha Mr R du Toit Mr JT Steenkamp Mr PAC Humphreys

the organisa on. Outcomes are the quality and/or impact of the outputs on achieving the overall objec ve. It shows the broader consequences of programmes and projects. Sevenstrategic outcomes were iden fied, namely – a financially sustainable municipality with well-maintained assets; sa sfied, involved and well-informed clients; an effec ve, efficient, mo vated and appropriately skilled workforce; access to affordable and reliable municipal infrastructure; sustainable development of the municipal area; an agile, integrated, stable and corrup on free organisa on; and increased community safety through traffic/by-law enforcement and disaster management.

The IDP strategic outcomes, key performance indicators and annual targets are clearly linked with the annual budget and the Municipality’s performance system. These linkagesmade it possible for the management team to work towards achieving the objec ves and outcomes of the Municipality.The Municipal Manager of a municipality is the accoun ng officer of the municipality and must provide guidance to poli cal structures; poli cal office bearers, and officials of themunicipality.

(b) Top administra ve structure

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2.3 INTERGOVERNMENTAL RELATIONS

2.3.1 NATIONAL INTERGOVERNMENTAL STRUCTURES

The Municipality a ends the following mee ngs on Na onal level: SALGA mee ngs

2.3.2 PROVINCIAL INTERGOVERNMENTAL STRUCTURES

The Municipality a ends the following mee ngs on Provincial level: SALGA mee ngs MinMayTech MinMay Premiers Coordina ng Forum Municipal Managers Forum

2.3.3 DISTRICT INTERGOVERNMENTAL STRUCTURES

The Municipality a ends the following mee ngs on District level: DCFTech DCF

2.4 PUBLIC ACCOUNTABILITY AND PARTICIPATION

2.4.1 PUBLIC MEETINGS

(a) Communica on, par cipa on and forums

Public par cipa on in Swartland is done in a structured way. The direc ve from na onal government on how community par cipa on should be structured is the ward commi eesystem. Most of the liaison with communi es is done through ward commi ee mee ngs.Although ward commi ees provide for representa on of communi es on a geographical basis, there are also a number of sector interests not covered by ward commi ees that playa major role within the municipal area, such as educa on, business and agriculture. Liaison with and involvement of such sector groups is therefore also crucial in order to get a fullpicture of the current reality in our area. Liaison with sector groups is done mainly through the Swartland Municipal Advisory Forum (SMAF).The Municipality also communicates through a well-structured website www.swartland.gov.za.

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Public Mee ngs

Nature and purpose of mee ng Date ofmee ng

Number ofpar cipa ng

municipalcouncillors

Number ofpar cipa ng

municipaladministrators

Number ofcommunitymembersa ending

Dates and manner of feedbackgiven to the community

Thusong outreach service: Riebeek Valley 2014-08-21 1 5 629 2015-09-23

Thusong outreach: Moorreesburg & Koringberg 2014-09-04 3 6 709 2015-09-23

Thusong outreach: Darling 2014-09-15 2 5 894 2015-09-23

Thusong outreach: Abbotsdale, Chatsworth & Riverlands 2014-09-23 1 6 208 2015-09-23

Thusong outreach: Wesbank 2014-10-21 3 6 894 2015-09-23

West Coast College ICDL course registra on: Ilinge Lethu 2015-01-08 0 1 17

Rural Socio Economic Programme (RSEP): Elec on of Council ofStakeholders 2015-01-22 3 4 25 2015-02-20

Job preparedness and democracy educa on: Abbotsdale 2015-01-28 0 2 34 2015-05-04

Local Drug Ac on Commi ee 2015-01-28 1 2 14 2015-02-11

Job preparedness and democracy educa on: Riebeek Kasteel 2015-01-29 0 2 36 2015-06-10

West Coast College DEDAT registra on: Ilinge Lethu 2015-02-05 0 2 12 2015-10-15


Swartland Social Development Forum (SSDF) 2015-02-12 4 2 26 2015-03-12

Follow-up mee ng with Malmesbury Emerging Farmers 2015-02-16 4 7 11 2015-03-18

Early Childhood Development Forum mee ng 2015-02-16 0 2 30 2015-02-26

Youth Career Guidance: Ruststasie 2015-02-23 0 2 14 2015-03-21

Swartland Social Development Forum mee ng 2015-03-12 4 0 24 2015-05-28

Thusong outreach: Chatsworth 2015-03-13 1 5 337 2015-09-23

Fatherhood Training: Moorreesburg 2015-03-13 1 2 23 2015-06-01


Job preparedness and democracy educa on: Chatsworth 2015-03-19 1 2 37 2015-05-07

Darling Road Show 2015-03-20 0 2 63 2015-04-16

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Ruststasie Human Rights Day Workshop 2015-03-21 2 0 15 2015-11-15

Ilinge Lethu Online Marke ng Workshop 2015-03-21 2 0 7 2015-10-15

Teenage Mothers' Workshop 2015-03-21 0 3 24 2015-11-15

Moorreesburg Road Show 2015-03-27 4 3 50 2015-06-24

Informa on mee ng rela ng to municipal ma ers: Wards 1 & 2 2015-04-09 4 4 23 Not Applicable

Informa on mee ng rela ng to municipal ma ers: Ward 6 2015-04-13 3 4 29 Not Applicable

Career Exhibi on 2015-04-13 1 10 717 Not Applicable




Informa on mee ng rela ng to municipal ma ers: Ward 8, 10 & 11 2015-04-16 4 4 55 Not Applicable

Swartland Social Development Forum: Roadshow, Riverlands 2015-04-16 4 0 56 2015-06-24

"Know your rights" Workshop 2015-04-17 5 1 55 2015-07-22

Fatherhood training: Riebeek Kasteel 2015-04-18 2 0 22 2015-11-01

Fatherhood training: Darling 2015-04-19 1 0 23 2015-11-01

Informa ng mee ng rela ng to municipal ma ers: Ward 4 2015-04-20 3 5 53 Not Applicable

Rural Social Economic Programme (RSEP): mee ng 2015-04-21 5 5 24 2015-05-11


Swartland Social Development Forum Roadshow: Chatsworth 2015-04-23 0 7 56 2015-05-28

Informa on mee ng rela ng to municipal ma ers: Wards 3 & 12 2015-04-28 4 4 74 Not Applicable

NYDA Coopera ve Workshop: Malmesbury 2015-04-29 2 0 26 Not Applicable

Rural Socio Economic Programme: mee ng 2015-05-11 0 3 7 2015-05-25

Swartland Social Development Forum Roadshow: Malmesbury 2015-05-15 1 0 37 2015-06-24

Governance training to NGO's and ECD's 2015-05-20 0 1 17 2015-06-20

Local Drug Ac on Commi ee mee ng 2015-05-20 0 2 20 2015-06-17

Using social media through fundraising 2015-05-20 1 0 17 2015-06-20

Thusong Mobile: Koringberg & surrounding farms 2015-05-22 0 4 155 2015-09-23

Food garden training: Riebeek Valley, Riverlands, Chatsworth,Kalbaskraal & Abbotsdale 2015-05-22 0 2 61 2015-10-21

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Rural Socio Economic Programme mee ng 2015-05-25 3 5 14 2015-06-16

Substance abuse support group training 2015-05-26 1 1 30 2015-03-01

AHI business training: Malmesbury (3 days) 2015-05-26 0 1 11 Not Applicable

Youth Camp (2 days) 2015-06-01 0 2 25 2015-09-19


Disabled Employment Workshop 2015-06-04 3 7 70 2015-10-14


NYDA Life Skills: Job preparedness workshop: Roadshow, Ilinge Lethu 2015-06-08 2 0 26 2015-12-01


NYDA Life Skills: Job preparedness workshop: Roadshow,Malmesbury 2015-06-09 2 0 12 2015-12-01


NYDA Life Skills: Job preparedness workshop: Roadshow, RiebeekValley 2015-06-10 1 0 35 2015-12-01

NYDA Life Skills: Job preparedness workshop: Roadshow, Koringberg 2015-06-11 1 0 21 2015-12-01

Food garden training: Darling & Malmesbury 2015-06-15 0 2 21 2015-10-21

Tree plan ng event 2015-06-16 5 9 185 2015-08-13

Local Drug Ac on Commi ee mee ng 2015-06-17 0 3 12 2015-07-15

Financial and Project Management training 2015-06-20 0 1 35 2015-08-29

Thusong outreach: Riebeek Valley 2015-06-22 1 6 674 2015-09-23

AHI business training: Riebeek Valley (3 days) 2015-06-23 0 1 10 2015-07-15&16

Play group training 2015-06-24 0 1 20 2015-08-29

(b) Ward commi ees

Sec on 152(1)(e) of the Cons tu on of the Republic of South Africa, read with sec ons 72 to 78 of the Structures Act, gives a direct mandate to municipali es to encourage theinvolvement of communi es and community organisa ons in ma ers of local government and to establish community par cipatory systems.Sec ons 8 (g and h), 9(f) and 72 of the Structures Act, authorise municipali es to establish ward par cipatory systems as mechanisms to enhance par cipatory democracy in localgovernment.A ward commi ee is an advisory body of the community. A ward commi ee serves as the official public par cipatory structure of the Municipality and must as such –(a) assist the ward councillor in iden fying challenges and needs of residents;

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IDP Par cipa on and Alignment Criteria Yes/NoDoes the municipality have impact, outcome, input, output indicators? YesDoes the IDP have priori es, objec ves, KPIs, development strategies? YesDoes the IDP have mul -year targets? YesAre the above aligned and can they calculate into a score? YesDoes the budget align directly to the KPIs in the strategic plan? YesDo the IDP KPIs align to the Sec on 57 Managers YesDo the IDP KPIs lead to func onal area KPIs as per the SDBIP? YesWere the indicators communicated to the public? YesWere the four quarter aligned reports submi ed within s pulated me frames? Yes

(b) disseminate informa on in the ward concerning municipal affairs such as the budget, the integrated development plan (IDP) and service delivery op ons;(c) obtain inputs from residents regarding municipal affairs such as the budget, the integrated development planning and service delivery op ons;(d) receive queries and complaints from residents concerning municipal service delivery; and(e) interact with other forums and organisa ons on ma ers affec ng the ward.It was important to establish a ward commi ee for each of the twelve wards as soon as possible a er the May 2011 elec ons. Therea er much me was spent on induc on,specifically on the Rules and Procedures for ward commi ees, the IDP and budget process. Ward commi ee members had the opportunity to par cipate in the development ofArea Plans for each ward, containing, amongst others, the five most important service delivery priori es for each ward.

2.4.2 IDP PARTICIPATION AND ALIGNMENT

2.5 CORPORATE GOVERNANCE

2.5.1 OVERVIEW

The King-report listed discipline, transparency, independence, accountability, responsibility, fairness and social responsibility as the seven primary characteris cs of goodgovernance. These traits have to be evident in municipal opera ons from the municipal council at the top to departmental staff at the bo om.Corporate governance is the system by which municipali es/companies are directed and controlled and is essen ally for effec ve leadership. Leaders need to define strategy,provide direc on and establish the ethics and values that will influence and guide prac ces and behaviour with regard to sustainability performance. The framework of rules andprac ces ensures accountability, fairness, and transparency in a municipality’s rela onship with its stakeholders (financiers, customers, suppliers, management, employees,government, and the community).

2.5.2 INTERNAL AUDIT

An Internal Audit Ac vity (IAA) exists within Swartland Municipality under the control and direc on of the Performance-, Risk and Financial Audit Commi ee. The purpose ofinternal audit is to provide an independent, objec ve assurance and consul ng services designed to add value and improve the municipality’s opera ons. Furthermore, the IAAreports on ma ers rela ng to:

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Safeguarding of assets Internal Control Compliance with laws, regula ons, policies, accoun ng prac ces and contractual obliga ons Reliability and integrity of informa on Risk and risk management Performance Management

The Manager, Internal Audit follows a risk based audit approach whereby an annual audit plan is compiled and approved by the Performance-, Risk and Financial Audit Commi ee.Included in the plan are special tasks or projects requested by Management and the Audit Commi ee. Repor ng to the Municipal Manager regarding the ac vi es of the unit suchas audits and inves ga ons performed, audit findings not yet implemented and any other concerns is done on a monthly basis. Quarterly Audit Commi ee mee ngs are held whererisk management, performance management, audit reports issued and performance against the audit plan are discussed.

2.5.3 RISK MANAGEMENT

Risk Management is one of management’s core responsibili es according to sec on 62 of the Municipal Finance Management Act (MFMA) and is an integral part of the internalprocesses of a municipality. It is a systema c and formalised process to iden fy, assess, manage, monitor, report and address risks on a con nuous basis before such risks can impactnega vely on the service delivery capacity of the Swartland Municipality. When properly executed risk management provides reasonable assurance that the ins tu on will besuccessful in achieving its goals and objec ves.

A Risk Assessment is quarterly conducted by Risk Management Shared Services; through facilita ng the process of iden fying and assessing risk per Directorate to determine themagnitude of risk exposure by assessing the likelihood of the risk materialising and the impact that it would have on the achievement of objec ves. The iden fied risks arepriori sed which enables Management to focus more me, effort and resources on higher risk areas.

To mi gate the risks it is confronted with, Management implements control ac vi es by establishing policies and appropriate procedures such as approvals, authorisa ons,segrega on of du es, reconcilia ons and physical safeguards.

In addi on, the Risk Management Shared Services reports quarterly to the Performance-, Risk and Financial Audit Commi ee on work performed and other opera ng measures thatare of interest to the Audit Commi ee.

The following top five risks of the municipality have been iden fied for which management ac on plans are indicated in the IDP: Insufficient revenue to meet the demand for services Expensive and unaffordable services Ageing and poorly maintained infrastructure which can result in a collapse in services Lack of appropriately skilled and produc ve staff Unsafe and unhealthy working environment

2.5.4 ANTI-CORRUPTION AND FRAUD

Swartland Municipality subscribes to the principles of good corporate governance, which requires the conduc ng of business in an honest and transparent fashion. ConsequentlySwartland Municipality is commi ed to fight fraudulent behaviour at all levels within the organisa on.

The Strategy is premised on the organisa ons core ethical values driving the business of Swartland, the development of its systems, policies and procedures, interac ons with

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ratepayers, the public and other stakeholders, and even decision-making by individual managers represen ng the organisa on. This means that in prac ce all departments andbusiness units of Swartland and even external stakeholders must be guided by the Strategy as the point of reference for their conduct in rela on to Swartland.

The policy of Swartland is zero tolerance to fraud and corrup on. In addi on, all fraud and corrup on will be inves gated and followed up by the applica on of all remediesavailable within the full extent of the law and the implementa on of appropriate preven on and detec on controls. These preven on controls include the exis ng financial andother controls and checking mechanisms as prescribed in the systems, policies and procedures of Swartland.

It is the responsibility of all employees to immediately report all allega ons or incidents of fraud and corrup on to their immediate manager. All managers are responsible for thedetec on, preven on and inves ga on of fraud and corrup on and must report all incidents and allega ons of fraud and corrup on to the Municipal Manager. The MunicipalManager will ini ate an inves ga on into the ma er. Should employees or any member of the public wish to report allega ons of fraud and corrup on anonymously, they cancontact the Municipal Manager and/ or the Internal Audit Department directly or the Public Service Corrup on Hotline on 0800 701 701.

Any fraud and corrup on commi ed by an employee or any other person will be pursued by thorough inves ga on and to the full extent of the law, including (where appropriate)considera on of: In case of employees, taking disciplinary ac on within a reasonable period of me a er the incident; ins tu ng civil ac on to recover losses; ini a ng criminal prosecu on by repor ng the ma er to the SAPS or any other relevant law enforcement agency; and any other appropriate and legal remedy available.

Managers are required to ensure that losses or damages suffered by Swartland as a result of all reported acts commi ed or omi ed by an employee, ratepayer or any other personare recovered from such an employee, ratepayer or other person if he or she is found to be liable for such losses.

Fraudulent and corrup on awareness are done annually by means of newsle ers, informa on no ces with pay sheets and presenta ons by guest/ specialist speakers. Policies,processes and systems are implemented by which the Municipality is directed, controlled and held to account with the trend towards greater corporate responsibility and theconduct of business within acceptable ethical standards. Transparency, accountability and openness are embedded in repor ng and disclosure of informa on, both opera onal andfinancial to all stakeholders. Councillors’ and Employees’ work are governed by the municipality’s rules, regula ons and procedures and the Codes of Conduct for employees andCouncillors to which they are expected to abide by, which includes guidelines on gi s, professional and personal behaviour and conflicts of interest. Segrega on of du es existswithin the procurement func on and poli cians are excluded from procurement and tender processes.

2.5.5 PERFORMANCE -, RISK- AND FINANCIAL AUDIT COMMITTEE

A combined Performance-, Risk and Financial Audit Commi ee has been established and is func onal. The overall responsibility of the commi ee is to assist Council members ofSwartland Municipality in discharging their responsibili es rela ng to the safeguarding of assets, the opera on of adequate and effec ve systems and control processes, theprepara on of fairly presented financial statements in compliance with all applicable legal and regulatory requirements and accoun ng standards, and the oversight of the externaland internal audit func ons, as well as Performance- and Risk Management. The Audit Commi ee operates in accordance with their Charter which is approved by Council and is anindependent func on that excludes poli cians and excludes officials as vo ng members.

2.5.6 SUPPLY CHAIN MANAGEMENT

The Supply Chain Policy of Swartland Municipality complies with the prescribed framework as set out in sec on 110-119 of the Municipal Finance Management Act, 2003. Noshor alls were iden fied regarding long term contracts.

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Newly Developed Revised Public Par cipa on ConductedPrior to Adop on of By-law?

Public Par cipa on Date By-law Gaze ed? Date Of Publica on

Yes No 2013-12-10 Yes 2014-07-11

Yes No 2013-12-01 Yes 2014-07-11

Yes No 2013-12-10 Yes 2014-07-11

Yes No 2014-12-02 Yes 2015-05-22

Yes No 2014-04-01 Yes 2014-07-11

Yes No 2013-12-10 Yes 2014-07-11

Yes No 2014-12-02 Yes 2015-05-22

Yes No 2014-12-02 Yes 2015-05-22

Yes No 2014-12-02 Yes 2015-05-22

Yes No 2014-12-02 Yes 2015-05-22

Yes No 2014-12-02 Yes 2015-05-22

Yes No 2014-04-22 Yes 2014-07-11

Yes No 2013-12-10 Yes 2014-07-11

Yes No 2014-04-01 Yes 2014-07-11

Yes No 2014-04-01 Yes 2014-07-11

2.5.7 BY-LAWS

(a) By-laws Introduced during financial year

(b) Comment on by-laws

By-laws are passed by the Council to regulate the affairs and the services it provides within its area of jurisdic on. A municipality derives the powers to pass a by-law from theCons tu on of the Republic of South Africa, which gives certain specified powers and competencies to local government as set out in Part B of Schedule 4 and Part B of Schedule 5to the Cons tu on.

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Documents published on the Municipality's / En ty's Website Yes / No Publishing DateCurrent annual and adjustments budgets and all budget-related documents Yes All current budget-related policies YesThe previous year's annual report YesThe annual report published/to be published YesAll current performance agreements required in terms of sec on 57(1)(b) of the Municipal Systems Act and resul ng scorecards Yes All service delivery agreements Yes All long-term borrowing contracts Yes All supply chain management contracts above a prescribed value (R100 000) Yes Various dates during

year

An informa on statement containing a list of assets over a prescribed value that have been disposed of in terms of sec on 14 (2) or (4) duringfin year

N/a N/a: Not prescribed bylegisla on

Contracts agreed in to which subsec on (1) of sec on 33 apply, subject to subsec on (3) of that sec on N/a N/a

Public-private partnership agreements referred to in sec on 120 N/a N/aAll quarterly reports tabled in the council in terms of sec on 52 (d) Yes -

Client Sa sfac on Survey - November 2014

Subject Ma er Result

01. Speed with which new electricity connec ons are done, meters are replaced 3.60 (71.92%)

02. Speed with which electricityoutages are repaired, no ces regarding power outages are given, etc 3.67 (73.39%)

03. Maintenance / repair of street lights 3.54 (70.78%)