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MAHIKENG

LOCAL MUNICIPALITY Diversity. Culture . Heritage.

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CONTENTS

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

CHAPTER 1 – MAYOR‟S FOREWORD AND EXECUTIVE SUMMARY .......................................................... 6

COMPONENT A: MAYOR‟S FOREWORD ............................................................................................................. 6

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

1.1. MUNICIPAL MANAGER‟S OVERVIEW ..................................................................................................... 8

1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW ..................10

1.3. SERVICE DELIVERY OVERVIEW ............................................................................................................15

1.4. FINANCIAL HEALTH OVERVIEW .............................................................................................................15

1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW ............................................................................21

1.6. AUDITOR GENERAL REPORT...................................................................................................................22

1.7. STATUTORY ANNUAL REPORT PROCESS ........................................................................................23

CHAPTER 2 – GOVERNANCE .....................................................................................................................................25

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

2.1 POLITICAL GOVERNANCE .........................................................................................................................25

2.2 ADMINISTRATIVE GOVERNANCE ..........................................................................................................30

COMPONENT B: INTERGOVERNMENTAL RELATIONS ...............................................................................33

2.3 INTERGOVERNMENTAL RELATIONS ....................................................................................................33

COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION .......................................................36

2.4 PUBLIC MEETINGS .......................................................................................................................................37

2.5 IDP PARTICIPATION AND ALIGNMENT .................................................................................................50

COMPONENT D: CORPORATE GOVERNANCE ..............................................................................................51

2.6 RISK MANAGEMENT.....................................................................................................................................51

2.7 ANTI-CORRUPTION AND FRAUD ............................................................................................................51

2.8 SUPPLY CHAIN MANAGEMENT ...............................................................................................................51

2.9 BY-LAWS ............................................................................................................................................................52

2.10 WEBSITES ..........................................................................................................................................................53

2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES ......................................................................53

CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) ............55

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COMPONENT A: BASIC SERVICES ......................................................................................................................56

3.1. WATER PROVISION ......................................................................................................................................56

3.2 WASTE WATER (SANITATION) PROVISION .......................................................................................60

3.3 ELECTRICITY ...................................................................................................................................................64

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

WASTE DISPOSAL, STREET CLEANING AND RECYCLING) .................................................................69

3.5 HOUSING ...........................................................................................................................................................74

3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT .......................................................................81

COMPONENT B: ROADs ............................................................................................................................................84

3.7 ROADS ................................................................................................................................................................84

3.8 VEHICLE LICENSING .....................................................................................................................................94

3.9 WASTE WATER (STORMWATER DRAINAGE) ....................................................................................98

COMPONENT C: PLANNING AND DEVELOPMENT.......................................................................................103

3.10 PLANNING ........................................................................................................................................................103

3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES)

……………………………………………………………………………………………………………………………………………………...108

COMPONENT D: COMMUNITY & SOCIAL SERVICES ............................................................................... 113

3.12 LIBRARIES and community facilities ..................................................................................................... 113

3.13 CEMETORIES AND CREMATORIUMS ............................................................................................... 117

3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES ................................................................. 120

COMPONENT E: ENVIRONMENTAL PROTECTION ................................................................................... .121

3.15 POLLUTION CONTROL ............................................................................................................................. 121

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

PROTECTION) ........................................................................................................................................................ .121

COMPONENT F: HEALTH....................................................................................................................................... .122

3.17 CLINICS ........................................................................................................................................................... 122

3.18 AMBULANCE SERVICES .......................................................................................................................... 122

3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC ... 122

COMPONENT G: SECURITY AND SAFETY ..................................................................................................... .123

3.20 LAW ENFORCEMENT .................................................................................................................................123

3.21 FIRE BRIGADE SERVICES ...................................................................................................................... 129

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

OF PUBLIC NUISANCES AND OTHER) ....................................................................................................... 133

COMPONENT H: SPORT AND RECREATION ................................................................................................ 138

3.23 SPORT AND RECREATION ..................................................................................................................... 138

COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES .................................... .142

3.24 EXECUTIVE AND COUNCIL .................................................................................................................... 142

3.25 FINANCIAL SERVICES .............................................................................................................................. 146

3.26 HUMAN RESOURCE SERVICES........................................................................................................... 152

3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES ........................ 160

3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES ............... .165

COMPONENT J: MISCELLANEOUS ................................................................................................................... 169

COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD .................................................. 170

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE .................................................... 265

(PERFORMANCE REPORT PART II) ...................................................................................................................... 265

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL .............................................. ..265

4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES ................................................................. .265

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE .............................................................. .269

4.2 POLICIES ........................................................................................................................................................ 270

4.3 INJURIES, SICKNESS AND SUSPENSIONS .................................................................................... 271

4.4 PERFORMANCE REWARDS .................................................................................................................. .274

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ..................................................... .275

4.5 SKILLS DEVELOPMENT AND TRAINING .......................................................................................... 276

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE ...................................................... .281

4.6 EMPLOYEE EXPENDITURE .................................................................................................................... .281

CHAPTER 5 – FINANCIAL PERFORMANCE ....................................................................................................... 284

CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS ................................................................................... 353

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS 2014/15 ...........353

6.1 AUDITOR GENERAL REPORTS 2014/15 ............................................................................................. .354

COMPONENT B: AUDITOR-GENERAL OPINION 2015/16 ..........................................................................356

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6.2 AUDITOR GENERAL REPORT 2015/16 ................................................................................................ 353

GLOSSARY ........................................................................................................................................................................ 480

APPENDICES ................................................................................................................................................................... 483

APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE .. ...483

APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES ................................................................ 487

APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE ................................................................. 488

APPENDIX D – FUNCTIONS OF MUNICIPALITy ........................................................................................... ..489

APPENDIX E – WARD REPORTING .................................................................................................................... 491

APPENDIX F – WARD INFORMATION ............................................................................................................... 501

APPENDIX G – RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE 2015/16....... .504

APPENDIX H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS ................. 510

APPENDIX I – MUNICIPAL ENTITY/ SERVICE PROVIDER PERF ORMANCE SCHEDULE ......... 511

APPENDIX J – DISCLOSURES OF FINANCIAL INTERESTS .................................................................... 518

APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE .............. 519

APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG .............................................. 522

APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES ..... .523

APPENDIX N – CAPITAL PROGRAMME BY PROJECT 2015/16 .............................................................. 524

APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD 2015/ 16........................................ 525

APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS ..................... .529

APPENDIX Q – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE

ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION ........... 530

APPENDIX R – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY ....... 531

APPENDIX S – NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT ............532

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CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

COMPONENT A: MAYOR’S FOREWORD

MAYOR’S FOREWORD

The community of Mahikeng Local Municipality gave us the mandate to improve the quality of their lives through their participation in the Integrated Development Plan programme. These ideals are captured in the IDP that we adopted at the beginning of the financial year. This 2015/16 Annual report of the Mahikeng Local Municipality, which in many ways reflect our service delivery and developmental achievements and challenges, is presented in recognition of our legislative obligation to be an accountable and transparent organisation. This annual report which also outlines the implementation and achievement of these objectives conform to the various pieces of legislation such as the 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.The Municipality progressed significantly in achieving objectives with regard to the five key performance areas applicable to local government and which is outlined in this Annual

Report:

1. Basic Service delivery and infrastructure development

2. Municipal transformation and development

3. Local Economic Development

4. Municipal Financial viability and management

5. Good Governance and Public Participation

It is an obligation to Mahikeng local municipality to prepare an Annual report which its main objective is to reflect on the performance of the Municipality for each financial year. This report is prepared in terms of the provisions of section 121(1) of the Municipal Finance Management Act as well as section 46(1) of the Municipal Systems Act of 2000.

Although we got a Disclaimer in the last financial year, we made a commitment that things will slowly change for the better. These changes are as a result of the appointment of the Audit Committee to assist in advising Council on audit matters. We have also developed an Action Plan which its objective is to detect and address any shortfall regarding the finances of our Municipality. This plan will enable us to identify all the risks so as to deal with them head-on and so that we are in a better position to improve and become a Municipality

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who is financially viable and to endeavor to achieve a clean audit. To a large extent work is

ongoing to address the finding of the AG with regard to the budget cash flow deficit, the

development of the financial turn-around strategy, the centralisation of the procurement

process, robust collection of revenue from current and over 90 days debtors and petrol

requisitions. These measures has seen the municipality collection rate improving from

conventional R18 million to 24million and sometimes R31million a month.

The municipality had a serious challenge of both white and yellow fleet. There were no

resources to provide the basic services that the community required. It is under this

administration that a bold decision was taken to buy this tools of trade just over R160 million

to address the problem of hiring of plants at high rates. The municipality after 3 years contract

will own the yellow fleet for a future period of 30 years.

We will continue to work closely with our communities so that they know exactly what is

happening within their elected Council. This will also provide us with an opportunity to know

their daily challenges and be in a position to make the necessary planning to overcome those

challenges timeously.

Service Delivery Budget Improvements Plan

The Mayor approved the Service Delivery Budget Implementation Plan (SDBIP) of the

Municipality which is the cornerstone to determine the key Service Delivery objectives and

targets of the Municipality based on the Integrated Development Plan (IDP) and budget that

was adopted by council. The SDBIP directly informs the Annual Budget of the

Municipality and the Performance Agreements and Performance Plans of the Municipal

Manager and Section 57 Managers. Quarterly Reporting has improved and enabled the

municipality to compile the annual Report.

Mahikeng local Municipality have an agreement with Sedibeng Water in order to provide for

the rendering of the water services in an efficient, equitable, cost effective and sustainable

manner. The municipality has on consistent basis paid Sedibeng its monthly bill for the water

and Eskom.

c�

Executive Mayor

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COMPONENT B: EXECUTIVE SUMMARY

1.1. MUNICIPAL MANAGER’S OVERVIEW

MESSAGE FROM THE MUNICIPAL MANAGER OF MAHIKENG LOCAL MUNICIPALITY

The area is known as the Mahikeng Local Municipality (NW383) and is situated in the North West Province 20 kilometers south of the Botswana Border. It is the Capital City of the North West Province and used to be known as the City Council of Mahikeng. The municipality is a

considerably big local municipality as compared to other four local municipalities. Those neighboring local municipalities which border the Ngaka Modiri-Molema District Municipality are: Ramotsere Moiloa Local Municipality, Tswaing Local Municipality, Ditsobotla Local

Municipality and Ratlou Local Municipality.

This Annual Report is presented to the community of the Mahikeng Local Municipality in

terms of Section Systems Act 32 of 2000. The annual report is an accountability tool of the political and administration of the council to the community on the mandate that was given in the revised Integrated Development Plan 2015-2016. We confess that the municipality in recent years has been confronted by serious challenges of services delivery resulting in the

community not been serviced as was expected. One of the contributory factors was the inconsistence in political and administrative leadership. The municipality has changed acting Municipal Managers three times in the same year, 2015-2016. The municipality senior

management positions are all in acting capacity except that of the Director Infrastructure. The situation of leadership change and vacuum left the staff insecure, confused and the moral low. The municipality did not have equipment both white and yellow fleet which resulted in uncontrolled outsourcing of services and the lack of services to the community.

However, since September 2015 we made great strides to change the situation and delivered on our mandate to improve the quality of life of our residents through

developmental local governance. Among the highlights of the 2015/16 financial year was improved financial systems, controls and procedures. The municipality after sometimes has managed to adopt a budget that has been approved by the National Treasury after the

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revenue enhancement strategy was tabled before the council and adopted. The municipality

has also purchased the white and yellow fleet to mitigate the challenge of lack of resources.

As a Municipality we derive our mandate from the Constitution of the Republic of South

Africa and national legislation which requires of Council to conduct thorough planning,

budgeting and monitoring processes, give priority to the basic needs of our community and

promote the social and economic development of the municipal area.

This report reflects the achievements and challenges of the Municipality and consists of:

• Governance;

• Service Delivery Pefformance;

• Organisational Development Performance;

• Financial Performance;

• Auditor General's Findings and Remedial Action Plan; and

• Volume II: Audited Financial Statements

I am pleased to report that despite the challenges we have seen an improvement in performance. I want to thank the Executive Mayor of Mahikeng and the entire council for their strategic direction and support. I also want to pay tribute to the dedicated staff members of the municipality who ensure the effective day-to-day running of our activities. Through our collective efforts we are steadily improving the quality of service delivery to the community of the Mahikeng Local Municipality

Mr Mokwena T I Acting Municipal Manager

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1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

INTRODUCTION TO BACKGROUND DATA

Mahikeng Local Municipality (NW383) is situated in the North West Province 20 kilometers south of the Botswana Border. It is the capital city of North West Province and used to be known as the City Council of Mahikeng. The municipality is a considerably big local municipality as compared to the other four local municipalities (Category B Municipalities). It is situated within Ngaka Modiri Molema District Municipality which was established in terms of the Municipal Demarcation Act (Act No. 27 of 1998).

The neighbouring local municipalities which border the Ngaka Modiri-Molema District Municipality are: Ramotsere Moiloa Local Municipality; Tswaing Local Municipality; Ditsobotla Local Municipality and Ratlou Local Municipality.

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The total area of the Mahikeng Local Municipality is approximately 3 703km². It is divided into 31 Wards consisting of 102 villages and suburbs. According to the recently released Census results Statistics South Africa (Stats SA 2011), the population of the municipality is estimated at 291 527 people. Approximately 75% of the area is rural. The rural areas are in the southern and western part of the municipality and are under tribal control.

The table below as per the 2011 official Census indicates that the population of Mahikeng Local municipality has grown to 291 527 since 1996. It also indicated that the municipality has a predominantly African population with fewer Coloureds, Whites and Indian groups:

Population Details Population '000

Age Year -2 Year -1 Year 0 Male Female Total Male Female Total Male Female Total

Age: 0 - 4 16690 16504 33194 16690 16504 33194 16690 16504 33194 Age: 5 - 14 28774 27741 56515 28774 27741 56515 28774 27741 56515 Age: 15 - 34 53544 53431 107075 53544 53431 107075 53544 53431 107075 Age: 35 - 64 37075 43591 80666 37075 43591 80666 37075 43591 80666 Age: 65+ 5559 8519 14078 5559 8519 14078 5559 8519 14078 Source: Statistics SA

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HOUSEHOLD INCOME (Socio Economic Status)

The municipality is a predominantly rural municipality and its rural economy is unable to provide individuals with remunerative jobs or self-employment opportunities. An estimated amount of about 13755 people in the municipality had no income in 2011. In general terms, the majority of households in the municipality earns less than the poverty line (about R1, 600 per household per month) and can be considered poor. Those classified as economically active are employed in the services sector. This sector is dominated by the services in terms of the various departments that render services such as health, justice, local government, education, SAPS, etc.

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The table below indicates the income categories within the municipality:

Annual household income by Geography for Household weighted

Annual Income North West DC38: Ngaka Modiri Molema

NW383: Mahikeng

No income 176 090 34 587 13 755

R 1 - R 4800 44 720 11 335 4 223

R 4801 - R 9600 76 068 21 338 7 525

R 9601 - R 19 600 200 531 51 572 16 506

R 19 601 - R 38 200 210 842 48 975 15 338

R 38 201 - R 76 400 162 965 24 052 9 368

R 76 401 - R 153 800 93 223 15 891 7 365

R 153 801 - R 307 600 56 610 11 416 5 827

R 307 601 - R 614 400 28 028 5 360 2 987

R 614 001 - R 1 228 800 8 266 1 506 854

R 1 228 801 - R 2 457 600 2 629 516 257

R 2 457 601 or more 2 025 450 231

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Overview of Neighborhoods within 'Mahikeng Local Municipality'

Ward # Settlement Type Households

Population

63803001 Lekoko,Modimola,Makhubung,Madibe-Makgabana,Magelelo

2 523 10 353

63803002 Unit15, Masutlhe1&2, Kabe, Lekung, Dibono, Phadima, Motsumorwana,Metsimaswana,Serotswana,Tontonyane, Mabudutshwana

2 338 8 054

63803003 Ikopeleng, Miga, Dimorogwane, Magokgwane & 600

2 693 8 581

63803004 Tsetse, Ottoshoop, Farms, 2 593 9 184

63803005 Lomanyaneng, Moonlight, Boitapoloso & Mofine Section.

895 3 493

63803006 Lokaleng, Tlapeng, Moshawana, Lokgalong, Military Village, Leopard Park, Unit 3 & 6.

3 253 10 792

63803007 Golfview, Borola-tuku, Mahikeng CBD, Top Village, Imperial Reserve, Ext 38

4 932 15 159

63803008 Montshioa, Unit 1-Montshioa, & flats, Bop, Kagiso, Wimpy & Part Unit 5, UNIWEST

3 781 6 914

63803009 Riviera Park, Danville, Part Lomanyaneng. 2 909 11 277

63803010 Units, 2, 7, 8, Kegomoditswe, Gatholo Heights 2 803 6 667

63803011 Seweding, Mocoseng 1 525 5 668

63803012 Unit 14 & 13 & Tontonyane. Moletsamongwe 3 170 9 579

63803013 Unit 9, Unit 10 & 12,Ext 39 5 450 14 986

63803014 Part Seweding, Part Magogoe Tar, Phatsima, Mocoseng(Ga Israel)

3 616 13 264

63803015 Montshioa Stadt, Bokone, Lorwana & Go-Nthua.

2 754 8 062

63803016 Part Ramosadi, Part Motlhabeng & Phola 3 649 10 624

63803017 Tloung, Part Magogoe Tar, Part Magogoe 2 183 7 878

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Makgetla and Magogoe Shebelakwano

63803018 Tlhabologo, Sehuba & Mapetla 2 627 9 654

63803019 Magogoe Koikoi, Magogoe Central. 1 447 5 422

63803020 Part Montshiwa & Ramosadi 2 114 5 802

63803021 Majemantsho & Lomanyaneng Dube, Setlopo Thutong

2 215 8 302

63803022 Setlopo Utlwanang & Koikoi 3 281 12 504

63803023 Lotlhakane Ditshilo, Dithakong East and West 2 150 8 038

63803024 Louisdal, Siberia, Mooipan, Lombaardslaagte, Weltevrede, Goedgevonden, Enselsrust, Uitkyk, Brooksby & Mooifontein

2 406 9 012

63803025 Nooitgedacht, Naauwpoort, Bapong, Bethel, Makouspan/Mandela Park, Driehoek, Kaalpan

2 081 8 107

63803026 Madibe a Tau & Ga Kubu,Letlhogoring, Morwatshetlha, Sebowana, Lekhubu la Seipone, Mantsa, Tsokwane, Ga Molema & Tshunyane,Pudungoe

2 066 9 473

63803027 Masephe, Matlhonyane,Rooigrond, Schoongesicht, Dihatshwane, Dithakong tsa ga Sehuba,Mothakga.

2 629 10 947

63803028 Signal Hill, Molelwane, New Stands, Setumo Park, Slurry & Buhrmansdrift.

2 901 11 361

63803029 Lonely Park. Libertas 3 184 11 100

63803030 Phola, Motlhabeng, Dibate 3 549 8 840

63803031 Setlopo, Part Dithakong 3 085 12 431

291 528

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Natural Resources

Major Natural Resource Relevance to Community

Water Water gives the community life Land Land helps the community with agriculture by

growing plants, housing, livestock Air/Wind The community inhales oxygen from plants

and exhales carbon dioxide which assists plant to grow

Energy The community received energy from the Sun which helps the plants and humans to grow

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COMMENT ON BACKGROUND DATA:

The latest Census statistics shows that the total population of Mahikeng Local Municipality stands at about 291 528 people which has steadily grown from 259 502 in Census 2001. In summary a rise in the population and households will have a negative impact on the delivery of services which are done per households. The municipality is already under pressure from existing basic service backlogs including housing, water and sanitation. Electricity provision remains on a steady rise. An increase in the number of people who are not economically active paints a bleak future; in addition to that key sectors of agriculture and government are in economic decline. A High unemployment rate continues to hinder economy growth. There is an abundance of the natural resource base where new opportunities for growth could be sought.

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1.3. SERVICE DELIVERY OVERVIEW SERVICE DELIVERY INTRODUCTION

Census 2011 have shown a markedly improvement in the provision of services such as electricity households 84.5 % have access to electricity for lighting. Great strides have been made in the provision of electricity from 72.1% in 2001 to 84.5% in 2011.

In terms of water sanitation, 29.2% of households have access to flushing toilets and 30.1% have access to 30.9% have tape water inside dwelling. And 59.8% of refuse is collected on a weekly base.

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1.4. FINANCIAL HEALTH OVERVIEW

FINANCIAL OVERVIEW

Mahikeng Local Municipality is committed to strategic financial planning and management in view of the long-term financial sustainability of the institution. This strategic financial planning for sustainability is directed by the management mandate for the Medium Term Expenditure Framework period.

In order to provide an overview of the key successes and outcomes for the 2015/16 financial year together with the challenges and solutions thereof, the overview is structured along budgetary results, financial ratios and interpretation. The financial health of the municipality will be elaborated more as per the financial ratios in Chapter 5.

The following focus areas will form the basis of the financial analysis based on ratio calculations and interpretation.

ASSET MANAGEMENT

1.Capital Expenditure to Total Expenditure

The Capital Expenditure to Total Expenditure percentage was 34% for the financial year, which is greater than the municipal norm of between 10-20% according to MFMA circular 71. The ratio computes the municipality’s commitment in future growth by investing incapital projects that have a lifespan of more than 12 months, thus, ensuring sustainablegrowth. A ratio of more than 20% reflects higher spending on infrastructure and accelerationin service delivery, but could also hold financial sustainability risks if the infrastructure donot include both economic (revenue generating) and social type infrastructure.

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2.Impairment of Property, Plant and Equipment, Investment Property and Intangible assets(Carrying Value)

The Impairment of Property, Plant and Equipment, Investment Property and Intangible assets ratio was 1.16%, which is marginally greater than the 0% norm according to MFMA circular 71. This is mainly because of investment property incorrectly valued in the prior financial year, which resulted in in an increase in fair value adjustment losses. The purpose of the Ratio is to indicate the percentage of Impairments compared to the Carrying Value of the Assets; a ratio above 0% reflects a risk in service delivery and therefore corrective measures should be implemented.

3.Repairs and Maintenance as a % of Property, Plant and Equipment and InvestmentProperty (Carrying Value)

The ratio of Repairs and Maintenance as a percentage of Property, Plant and Equipment and Investment Property (Carrying Value) was 1.83%, which is less than the prescribed norm of 8%. A ratio below the norm is a reflection that insufficient funds were spent on repairs and maintenance to the extent that it could increase impairment of useful assets.

DEBTORS MANAGEMENT

1.Collection rate

The collection rate was 69% for the year ended 30 June 2016. This is below the prescribed rate of 95% according to MFMA circular 71. The ratio is below the norm, which is an indication that revenue collection of the municipality requires urgent attention, and corrective measures should be implemented.

A municipality with outstanding debtors should aim at achieving a collection rate of more than 100%. Measures were implemented during in March 2016 to address debt collection and credit control.

2.Bad Debts Written-off as % of Provision for Bad Debt

The ratio is 22%, which is lower than the prescribed rate of 100%. The Ratio compares the value of Bad Debts Written-off on Consumer Debtors to Bad Debts Provided for Consumer Debtors to ensure that the Provision for Bad Debts is sufficient.

The Municipality should only write-off Bad Debts already provided for and, if the results are less than 100%, it should be ideally due to the recoverability of debtors.

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3.Net Debtors Days

This ratio reflects the debt collection period. The average number of net debtors’ days was 439 days, which is greater by a significant margin to the prescribed debt collection period of 30 days. The ratio is above the norm, which indicates that the Municipality is exposed to significant Cash Flow risk.

This is also an indication that the municipality is experiencing challenges in the collection of outstanding amounts due to it. In addition, this indicates that a significant amount of potential cash is tied up in consumer debtors and the municipality must improve its revenue and cash flow management.

LIQUIDITY MANAGEMENT

1.Cash / Cost Coverage Ratio (Excl. Unspent Conditional Grants)

The Ratio indicates the Municipality's ability to meet at least its monthly fixed operating commitments from cash and short-term investment without collecting any additional revenue, during that month. The number of days was 17 days, which is below the norm of 1 – 3 months. If a municipality has a ratio below the norm it would be vulnerable and at a higher risk in the event of financial “shocks/set-backs” and its ability to meet its obligations to provide basic services or its financial commitment is compromised.

2.Current ratio

The ratio was determined to be 0.65:1 for the financial year, which is below the norm of 1.5 – 2:1. The Ratio is used to assess the Municipality’s ability to pay back its Short-term Liabilities (Debt and Payables) with its Short-term Assets (Cash, Inventory, Receivables). A financial ratio under one suggests that the Municipality would be unable to pay all its current or short-term obligations if they fall due at any specific point.

If current liabilities exceed current assets, it highlights serious financial challenges and likely liquidity problems i.e. insufficient cash to meet short-term financial obligations. Current assets must therefore be increased to appropriately cover current liabilities otherwise there is a risk that non-current assets will need to be liquidated to settle current liabilities.

LIABILITY MANAGEMENT

1.Capital Cost(Interest Paid and Redemption) as a % of Total Operating Expenditure.

The Capital Cost as a % of Total Operating Expenditure was 2.26% for the financial year ended 30 June 2016 which is below the norm of 6% - 8%. The Ratio indicates the cost required to service the borrowing.

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It assesses the Borrowing or Payment obligation expressed as a percentage of Total Operating Expenditure. Operating below the Norm could indicate that the Municipality has the capacity to take on additional financing from borrowing to invest in infrastructure projects and could also relate to cash flow problems where it is unable to access borrowed funds or the funding decisions of the municipality impacts of these levels.

SUSTAINABILITY

1.Level of Cash Backed Reserves

The calculated percentage is 2.59%, which is significantly below the norm of 100%. If a Municipality has less than 100%, Cash Reserves it could negatively affect the Municipality’s ability to comply with the conditions for creating the Reserves and on its ability to fund current and future operations.

EFFICIENCY

1.Net Operating Surplus Margin

The net operating surplus margin is 25%, which is within the norm of +0%. A ratio greater than 0% enables the municipality to generate a surplus, which will assist to contribute towards its capital funding requirements. If the result is less than 0% it implies that the municipality is operating at a deficit and measures must be implemented to address this situation to ensure sustainable service delivery.

2.Net Surplus /Deficit Water

The net deficit water percentage was -24% for the year ended 30 June 2016. The norm is equal to or greater than 0%. A ratio below 0% depicts that water service is rendered at a loss and unsustainable. The results must not be below the norm so as to ensure that the Services are sustainable and that all costs associated with the delivery of Water Services are at least recovered with a margin for future growth and/ or capital funding for water assets.

The purpose of the Ratio is to determine the contribution made by the provision of water service being one of the major functions of a municipality.

3.Net Surplus /Deficit Refuse

The net deficit refuse percentage was -63% for the year ended 30 June 2016. The norm is equal to or greater than 0%. A ratio below 0% depicts that refuse service is rendered at a loss and unsustainable.

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The results must not be below the norm in-order to ensure that the Services are sustainable and that all costs associated with the delivery of Refuse Services are at least recovered with a margin for future growth and/ or capital funding for Refuse assets.

4.Net Surplus /Deficit Sanitation and Waste Water

The net deficit sanitation and wastewater percentage was -3% for the year ended 30 June 2016. The norm is equal to or greater than 0%. A ratio below 0% depicts that sanitation and wastewater is rendered at a loss and unsustainable.

The results must not be below the norm to ensure that the Services are sustainable and that all costs associated with the delivery of sanitation and wastewater are at least recovered with a margin for future growth and / or capital funding for assets.

REVENUE MANAGEMENT

1.Revenue Growth (%)

The revenue growth was 26%. The prescribed norm is the CPI, which averaged 6.5% during the financial year. This Ratio measures the overall revenue growth. In addition, this ratio will assist in determining if the increase in Expenditure will be funded by an increase in Revenue base or by some other means.

The increase is mainly attributed to the increase in revenue from rentals, interest, recoveries, grants and property rates.

2.Revenue Growth (%) - Excluding capital grants

The revenue growth was 21%. The prescribed norm is the CPI, which averaged 6.5% during the financial year. This Ratio measures the overall Revenue Growth adjusted for Capital Grants. In addition, this ratio will assist in determining if the increase in Expenditure will be funded by the increased Revenue Base or by some other means.

EXPENDITURE MANAGEMENT

1.Irregular, Fruitless and Wasteful and Unauthorised Expenditure / Total OperatingExpenditure

The percentage was 23% for the financial year ended 30 June 2016. The recommended norm is 0%. The ratio measures the extent to which the Municipality

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has incurred Irregular, Fruitless and Wasteful and Unauthorised Expenditure. A ratio that exceeds 0% should be investigated in accordance with MFMA requirements.

2.Remuneration as % of Total Operating Expenditure

The percentage was 37% for the financial year ended 30 June 2016. The norm ranges between 25% and 40%. If the ratio exceed the norm it could indicate inefficiencies, overstaffing or even the incorrect focus due to misdirected expenditure to non-essentials or non-service delivery related expenditure.

Various factors need to be considered when interpreting on this ratio, such as the powers and functions performed by the municipality, as this can create distortions in the outcomes, if the analysis ignores such factors.

3.Contracted Services % of Total Operating Expenditure

The percentage was 3% for the financial year ended 30 June 2016. The norm ranges between 2% and 5%. This ratio measures the extent to which the municipalities resources are committed towards contracted services to perform Municipal related functions. The municipality utilized more resources internally.

This also depends on the model of service delivery selected by the municipality. In addition, outsourcing decisions will have to be weighed against the ability to attract skills; however, increases in this ratio can further expose the municipality to other risks, such as its inability to build capacity and ongoing reliance on Contractors.

GRANT DEPENDENCY

1.Own Source Revenue to Total Operating Revenue (Including Agency Revenue)

The percentage was 59% for the financial year ended 30 June 2016. Currently there is no prescribed norm for this ratio. The municipal specific circumstances, including the powers and functions assigned to it are considered when assessing the level of own source revenue or its self-sufficiency.

The ratio measuring own source revenue should be increasing over time as it reflects municipal efforts towards self-sufficiency. The percentage was 64% in previous financial year, thus, own revenue generation decreased.

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1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW

ORGANISATIONAL DEVELOPMENT PERFORMANCE

The key Organisational Development Performance issues in Chapter 4 relate to the vacancy rate in the municipality; the turnover rate; Approved and reviewed HR Policies and plans; Sick Leave and Injuries on duty reported and the cost implications thereof; as well as Suspensions and Disciplinary cases pertaining to financial misconduct.

T 1.5.1

T 1.4.1

2.Service Charges and Property Rates Revenue Budget Implementation Indicator

The percentage was 117% for the financial year ended 30 June 2016. This ratio measures the extent of Actual Operating Revenue (Excl. Capital Grant Revenue) received in relation to Budgeted Operating Revenue during the financial year, under review. The norm range is between 95% and 100%.

A ratio below 95% indicates either a challenge in capacity to implement, ineffective billing and credit control, weakness in compilation of budgets or issues of financial controls and management of the Municipality.

In closing, we want to acknowledge that a review of the highlights of the financial statements of the municipality does not begin to tell the underlying real story of the municipality’s transforming impact on Mahikeng residents or its essential contributions to the local economy’s challenges and opportunities.

We want to thank our staff for making Mahikeng Municipality vital and alive every day.

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1.6. AUDITOR GENERAL REPORT

AUDITOR GENERAL REPORT: 2015/16

As required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) and section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004) (PAA), the responsibility of the Auditor General is to express an opinion on the municipality‟sfinancial statements based on conducting an audit in accordance with International Standards on Auditing.

In 2014/15 financial year the Mahikeng Local Municipality got a disclaimer opinion.

The 2015/16 financial year the Office of the Auditor General of South Africa on completion of their audit on 30 November 2016 issued Disclaimer audit opinion on Annual Financial statements.

2015/16 Audit Report is contained in Chapter 6 of this report.T 1.6.1

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1.7. STATUTORY ANNUAL REPORT PROCESS

No Activity Timeframe

1

Consideration of next financial year‟s Budget and IDP process plan. Except for the legislative content, the process plan should confirm in-year reporting formats to ensure that reporting and monitoring feeds seamlessly into the Annual Report process at the end of the Budget/IDP implementation period

July 2 Implementation and monitoring of approved Budget and IDP commences (In-year financial reporting).

3 Finalize the 4th quarter Report for previous financial year

4 Submit draft year 0 Annual Report to Internal Audit and Auditor-General

5 Municipal entities submit draft annual reports to MM

6 Audit/Performance committee considers draft Annual Report of municipality and entities (where relevant)

August 8 Mayor tables the unaudited Annual Report

9 Municipality submits draft Annual Report including consolidated annual financial statements and performance report to Auditor General

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

11 Auditor General audits Annual Report including consolidated Annual Financial Statements and Performance data

September - October

12 Municipalities receive and start to address the Auditor General‟scomments

November 13 Mayor tables Annual Report and audited Financial Statements to Council complete with the Auditor- General‟s Report

14 Audited Annual Report is made public and representation is invited 15 Oversight Committee assesses Annual Report 16 Council adopts Oversight report

December 17 Oversight report is made public

18 Oversight report is submitted to relevant provincial councils

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

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COMMENT ON THE ANNUAL REPORT PROCESS:

The Annual Report process flow has provided a framework for the municipality to follow in completing various reports within each financial year cycle. It is recommended that Municipal Manager Study this process flow and ensure that reports are submitted timeously.

The municipality has followed this process and is proud to have submitted an unaudited Annual Report with the Annual Financial Statements in August to the Office of the Auditor General of South Africa for audit. The unaudited Annual Report has been compiled in consistent with the MFMA.

This unaudited Annual Report will be used to influence the strategic objectives indicated in the IDP for the next financial year as well as the budgetary requirements related to each vote.

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CHAPTER 2 – GOVERNANCE

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE

INTRODUCTION TO POLITICAL AND ADMINISTRATIVE GOVERNANCE

The Constitution section 151 (3) states that the council of a municipality has the right to govern on its own initiative, the local government affairs of the local community. Municipal executive and legislative authorities are vested in the municipal council.

T 2.1.0

2.1 POLITICAL GOVERNANCE

INTRODUCTION TO POLITICAL GOVERNANCE

There are various decision making structures within Council which include the following: Municipal Council; Executive Mayor and Mayoral Committee; Portfolio Committees; including o Section 80 Committeeso Section 79 CommitteesOfficials with delegated powers

Committees established in terms of Section 79 of the Municipal Structures Act are referred to as council committees established for the effective and efficient performance of council functions or the exercise of any of the council powers. Section 80 committees are established if a Municipal Council has an Executive Mayor. In the case of Mahikeng Local Municipality, councillors are appointed to assist the Executive Mayor in execution of her duties.

The Municipality has nine (9) Portfolio Committees. Each Committee is chaired by a Member of the Mayoral Committee with an average of seven (7) deployed Councillors. Listed below are the nine Portfolio Committees of the Mahikeng Local Municipality:

Corporate Support Services; Planning and development; Finance; Infrastructure development; Community services;

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Public safety; Communications, Marketing and Public Relations Special projects, and Local Economic Development

Decisions within these structures are governed by various municipal by-laws, Council policies, legislation and the municipal IDP.

The municipality has also appointed the Municipal Public Accounts Committee (MPAC). A fulltime chairperson has been appointed and the committee is also established.

T 2.1.1

Table1: The functional competencies of the Executive Mayor, Speaker and Municipal Manager are as follows:

POLITICAL OFFICES FUNCTIONAL COMPETENCE

Office of the Executive Mayor

Special Projects

HIV/ AIDS

Integrated Development Planning

Council Performance Management

Communications

Office of the Speaker Coordinates council meetings

Support to Councilors and Ward Committees (Community participation)

OFFICE OF THE EXECUTIVE MAYOR

Research & Report Conducting continuous research to identify the needs of the

community and develop mechanisms and processes to meetthose needs

IDP and Performance Management Systems for

Does Political coordination, monitoring, evaluation, reviews andlobby for funding. Reports to council and community onprogress of IDP.

Defines and develops KPAs for the Council. Reviews the

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Council performance and manages the Municipal Managers performance contract. Ensures that resources are available for delivery.

Community Liaison & Media Relations

Oversee the Municipality‟s Communication and Marketingfunctions, with a special focus on community liaison, mediarelations, relations with other spheres of government andtraditional authorities, communication with the local, provincialand international communities

Special Projects Performs political coordination and decision-making and

develops broad project scopes and plans. Does political levelmonitoring and review of projects.

Develops partnership with both the public and private sectorsand traditional authorities and lobby for project funding toensure coordination in the economic development ofMahikeng.

Plays advocacy role for HIV/AIDS and develops policy andspecial programmes addressing all issues that are deemed tobe of national and community priority e.g. HIV, social welfare,gender, youth development, disabled people‟s interests etc.

Resources from other Directorates may be utilised inadvancing these special programmes and projects

Marketing & Communications

Accountable for all public relations, marketing of Mahikeng,communication (Internal and information management) and allstatutory and financial reporting to ensure that Mahikeng isappropriately represented to the external communities and thatthere is compliance to all statutory reporting requirements

OFFICE OF THE SPEAKER

Councilor Support and Ward Committee Support

Provide administrative support to all political and civicstructures to ensure that there is capacity and sufficientcommunity participation and involvement in line with theBatho Pele Principles

Does legislative education to ensure goodunderstanding of all pieces of legislation amongCouncilors. Also ensures compliance to the Code ofConduct

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POLITICAL STRUCTURE

MAYOR Cllr. Seatlholo G

SPEAKER Cllr. Diakanyo K B

CHIEF WHIP Cllr. Nebe T

MAYORAL COMMITTEE/ EXECUTIVE COMMITTEE Cllr Leepile M : MMC (Tourism &Enterprise Development) Cllr Makolemako M.C.: MMC (Community Services) Cllr Tabane P.M.: MMC (Corporate Services) Cllr Mafete E: MMC (Traditional Affairs & Stakeholders) Cllr Maloisana S: MMC (Planning & Development) Cllr Kgwadibane G.A.: MMC (Local Economic Development)

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Cllr Mathakathaka K.G.: MMC(Infrastructure) Cllr Mothupi H.R.: MMC (Finance) Cllr Dintoe M.M.: MMC (Special Projects) Cllr Mothupi H.R.: MMC: (Finance Media and Marketing) Cllr Moeti A :MMC (Public Safety)

T 2.1.1

COUNCILLORS

During the year under review the Council consisted of 62 Councilors made up of 32 ward councilors and 30 proportional councilors. The Traditional Leaders within municipal boundaries form the key stakeholders in the Council decision making processes.

T 2.1.2

POLITICAL DECISION-TAKING

Political decisions were taken in a form of council resolution during council meetings held.

T 2.1.3

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2.2 ADMINISTRATIVE GOVERNANCE

INTRODUCTION TO ADMINISTRATIVE GOVERNANCE

The administration of the municipality is led by the Municipal Manager as its Accounting Officer. As head of the administration the Municipal Manager is, subject to the policy directions of the Municipal Council, responsible and accountable for the formation and development of an economical, effective, efficient and accountable administration. As an Accounting Officer he is also responsible for the financial management of the Municipality including the administration of the municipal assets. The Municipal Manager is assisted by Directors who head the six directorates of the Municipality. The Municipal Manager has delegated certain functions to the Directors. Top Management meetings of the Municipal Manager and the Directors are regularly held to discuss administrative governance issues affecting the Municipality and to check that the resolutions of Council are implemented.

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TOP ADMINISTRATIVE STRUCTURE

Acting MUNICIPAL MANAGER Mr Mokwena T

Directors

Acting Chief Financial Officer Mr Mathe T

Infrastructure Director Mr Ruiters R

Acting Public Safety Director Mr Nko P

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Acting Community Services Director Mr Komane K

Acting Planning and Development Director Mr Phaedi T

T 2.2.2

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COMPONENT B: INTERGOVERNMENTAL RELATIONS

INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS

Public Participation through stakeholder involvement is promoted within the municipality and under this year of reporting the municipality had functional Ward Committees in all its wards. The municipality has a good leadership which is underpinned by the four values underpinning good governance namely responsibility, accountability, fairness and transparency.

T 2.3.0

2.3 INTERGOVERNMENTAL RELATIONS

NATIONAL INTERGOVERNMENTAL STRUCTURES

The Office of the Executive Mayor is responsible in Mahikeng local municipality to coordinate the intergovernmental Relations activities supported by the office of the Municipal Manager.

The Mahikeng local Municipality participates in Forums led by the National Department of Public Works on the Extended Public Works programme. The municipality has to date received grants for the recruitment of the EPWP`s. The Department of Environmental Affairs

has also funded the Mahikeng landfill site project and thus established a forum for participating municipalities.

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PROVINCIAL INTERGOVERNMENTAL STRUCTURE

The North West government has adopted the programme of Rebranding, Repositioning and Renewal to deal with the ills of the past. Mahikeng Local Municipality is the capital city of the North West Province and to that extent the North West Executive Council resolved that it also adopted customise the „‟RRR‟‟ to the capital city and became the Mahikeng Rebranding, Repositioning and Renewal Programme. This programme compels the provincial government departments to plan and budget for projects that will see Mahikeng as a capital city claiming its status. The Director General of the North West Province is the leader of the technocrat‟sforum that must advice the political forum (BBPCC). A task team has been established consisting of the heads of Departments and the Municipal Manager to make sure that all projects identified are put into practice. Mahikeng local municipality`s Executive Mayor and the Municipal Manager are members of Bokone Bophirima Premiers Coordinating Committee which coordinates business of government and Municipalities (serves as an intergovernmental forum). This forum discusses wide range of matters including how provincial government departments and municipalities are supposed to corporate in service rendition to communities.

This model will enable municipalities and provincial departments to use and share the expertise and minimise the cost on procurement of services.

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RELATIONSHIPS WITH MUNICIPAL ENTITIES

There were no functional municipal entities operating during the reporting year. T 2.3.3

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DISTRICT INTERGOVERNMENTAL STRUCTURES

The municipality has also a share service with the Ngaka Modiri Molema District Municipality.

There are a number of forums according to their areas of specialty at the district level and provincial. There are Municipal Managers forums where they are meeting to discuss matters

of common interest, Skills Development Facilitators Forum, Speakers Forum, local and district IDP forums are used to share information between the two municipalities as to how they intend provide services for the communities in terms of their powers and functions. These forums also include the provincial departments because are also providing service at

municipal level. Forums are important because they assist municipalities to share experiences and benchmark good practices. Mahikeng local municipality has adopted the share services model on the internal audit service which service level agreement is signed.

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COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION

OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION

Public participation is a cornerstone of the Office of the Speaker. A team was put together in a form of Cluster Co-coordinators to deal with among others, Public Participation. Communities participate in matters that affect them like the IDP formulation and review, MPAC public participation and any other public mandate, the Office of the Speaker would ensure that communities participate and their voice is heard.

Much was achieved under the period under review. We were able to put systems in place which unfortunately had collapsed due to the unknown reasons. Top most priority list was to ensure that the Ward Committee system was in order and functioning as it was supposed to. There were 31 ward committees and all its members were paid stipends on monthly basis on conditions that they submitted their monthly reports. We managed to put those systems in place and trained dedicated staff to deal with the challenge of the functionality of the ward committees that were prevalent before the Speaker came into office. All these efforts resulted in the reduction of the community uprisings because there was a better contact and dissemination of information to the community. The municipality through the working relationship between the ward councilors and ward committee members were able to report services needs in time.

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2.4 PUBLIC MEETINGS

COMMUNICATION, PARTICIPATION AND FORUMS

The Office of the Speaker has ensured that Ward Councillors submit both the Community and Ward Committee schedules for the year 2015/16. The Community meetings are meant for the Councillors to communicate with their communities as well as with Council. Ward Committees sit on monthly basis to discuss issues that are recent and challenges that may need urgent attention. Monthly reports are submitted to the Office of the Speaker where they are processed and feedback given on monthly basis. Loud hailing is done by the Officials in the Office of the Speaker whenever a Councillor is convening a community meeting to increase awareness.

The same process is followed when a Public is convened for matters like IDP consultation meetings with the communities. Fliers are developed and distributed to schools and public places for the same purpose. With regards to the Public Accountability, the Office of the Speaker in consultation with other internal partners is in the process of putting in place a process of improving oversight. It has been acknowledged that the institution is not doing well in that area and the matter is receiving attention.

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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

IDP Community consultation

22-Apr-16 7 5 315 Yes 22-Apr-16


21-Apr-16 7 5 137 Yes 21-Apr-16


19-Apr-16 7 5 136 Yes 19-Apr-16


20-Apr-16 13 7 358 Yes 20-Apr-16


18-Apr-16 11 4 354 Yes 18-Apr-16


03-Nov-15 23 7 458 Yes 03-Nov-15

MPAC Community consultation

16-May-16 11 5 327 Yes 16-May-16


17-May-16 10 4 302 Yes 17-May-16


18-May-16 7 4 376 Yes 18-May-16

Imbizo 30-Nov-15 14 5 223 Yes 30-Nov-15

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WARD COMMITTEES

Ward Committees are a body of the public representative that primarily assists the Ward Councilors to perform the community work. Ward Committees are elected by the community preferably one person per village to the maximum of ten per Ward. They are allocated portfolios in line with the municipal portfolios. They report community issues on monthly basis to the Office of the Speaker. The Office either refers or report matters directly to Council depending on the nature of the issue raised. The Office of the Speaker is trying by all means possible to improve participatory democracy though the support it gives to the Ward Committees. Refer to Appendix E which contains further details on ward committee governance and to Appendix F that contains performance data on a ward by ward basis.

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Functionality of Ward Committees Ward Name

Name of Ward Councillor and elected Ward committee members

Committee established (Yes / No)

Number of monthly Committee meetings held during the year

Number of monthly reports submitted to Speakers Office on time

Number of quarterly public ward meetings held during year

1 CLLR MAFABATHO YES 12 12 4 1 FUNANE 1 MOGOBE 1 KERNS 1 MOIRAPULA 1 MOTSAMAI 1 PHORA 1 MOGOROSI 1 MARUMO 1 NDABA 1 MOOROSI

2 CLLR MALOISANE YES 12 12 4 2 PULE 2 MOHETA 2 SEBE 2 MOTLAGODISA 2 KOLONTSI 2 MONYADIWA 2 MDUNGWANE 2 MADIKONG 2 LEEPILE 2 MORUTI

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3 CLLR MOSENOGI YES 12 12 4 3 MOGOSHANE 3 MOKOLOBATE 3 SENOKWANE 3 MOGOROSI 3 SEDIKETSO 3 LEBELE 3 MAJWE 3 MOKOLOBATE

4 CLLR DIBE YES 12 12 4 4 MATSAPOLA 4 TSHABALALA 4 MAUTLWA 4 DIETHANE 4 MOOKETSI 4 KMORAKE 4 MABE 4 PHATHO

5 CLLR NEBE YES 0 0 0 5 THEBE 5 MOEPENG 5 PENYU 5 MOSUTHU 5 GOMOLEMO 5 MOSUTHU 5 MODUTLWA 5 MOGOROSI 5 MENYATSWE 5 GWAYISA

6 CLLR BABEDI YES 12 12 4 6 MUSI 6 MOTHUPI 6 LESOGO 6 SEDUKU

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6 PULE 6 MOSIMANEMONGWE 6 RAMPITIKWANE 6 GERRICKE

7 CLLR LEEPILE YES 12 12 4 SENOKWANE

7 NKETSI 7 TSIRWE 7 MAIMELA 7 MATSOGE 7 THAMBE 7 TSHESEBE 7 SHEBI 7 MOLATOLE

8 CLLR NTSHABELA YES 12 12 4 8 DUBULA 8 MOHALE 8 TOGOE 8 MASHOTANA 8 GAOKGWATHE 8 SERAME 8 MOTAUNG 8 RAKGOTLA 8 MPOFU 8 TAU

9 CLLR NEBE YES 0 0 0 9 SCHOLTZ 9 MUSE 9 MOLEFAFAKGOTLA 9 NYINGWASHE 9 NYINGWASHE 9 MAGAPI 9 SWARTZ 9 TLHOMELANG 9 NCHUPETSANG

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9 VAN ROOYEN

10 CLLR DIAKANYO YES 12 12 4 10 SERAPELO 10 KOLOI 10 MASHISHI 10 NTSETSAO 10 NTSHWE 10 MEREEOTLHE 10 MAIMANE 10 KHUTSWANE 10 MOTLHAOLENG 10 MASHAO

11 CLLR MOAMOGWA YES 12 12 4 11 DIKGOLE 11 MOGAPI 11 MBHABHA 11 SETLHALEFO 11 MASUMPA 11 TOONS 11 MLAMBO 11 PHASHE 11 SEBUSHO 11 NAGENG

12 KGWADIBANE YES 12 12 4 12 TLHABI 12 MOETI 12 LEBURU 12 MAKGOKGOA 12 GAOLAOLWE 12 TSHIPO 12 MOSWEU 12 MOLOSIWA

13 CLLR SEHERI YES 12 12 4 13 MAPUTLE

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13 BOGATSU 13 KITCHIN 13 MOAGI 13 SENOKWANE 13 NQODINI 13 MOGOTSI 13 SEGOLE 13 SOMA 13 MUSE

14 CLLR MOTSAMAI YES 12 12 4 14 RABOTAPE 14 MOAPARIMAKHURA 14 TSHOLO 14 MONNANYANA 14 SELLO 14 MOETI 14 MOREMEDI 14 MOTSHWARI 14 MAKGOLO 14 BLES

15 CLLR MAKOLOMAKWA YES 12 12 4 15 SELETEDI 15 NDIKANDIKA 15 MONGOLOGA 15 TONG 15 PHOKOMOSI 15 MONNAPULA 15 SEBEKEDI 15 SEBOGODI 15 MALINGA 15 NQOBO

16 CLLR POONYANE YES 12 12 4 16 GARENAMOTSE 16 MOGAPI 16 MOTHUSI

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16 NKAELANG 16 MOTLHOIWA 16 MAANO 16 NCHUPETSANG 16 TSIMANE 16 MANYENENG 16 MAKOLOKA

17 CLLR MOLALE YES 12 12 4 17 TAU 17 DIRAPELO 17 SEABELO 17 BAIKEPI 17 MOOKI 17 NEGROS 17 MATSHIDISO 17 SELEKO 17 SETLHODI 17 LETEANE

18 CLLR NKOANE YES 12 12 4 18 PHOKOANE 18 MOTLHALA 18 PLAATJIE 18 SEKWENYUANA 18 MATEBELE 18 MATSIPE 18 MOSIANE 18 MOSIAPULA 18 MOLAMU 18 DIPHEKO

19 CLLR MAFETHE YES 12 12 4 19 MOKOTO 19 DINGOKO 19 SIBANDA 19 KELEPILE 19 RIET

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19 MOTHATA19 NCAPEDI19 JAMBATHA19 MAKHOBA19 TSHIPA

20 CLLR TABANE YES 12 12 420 MONTSHIOA 20 KGOSIEMANG20 GAANAKGOMO 20 MABE20 THWANE20 LESHOMO20 SEADIRA20 PULA20 MOFINTA20 MOLEFI

21 CLLR MOEPI YES 12 12 421 LEKONE21 PLAATJIE21 RENS21 MARUMAGAE21 JANTJIES21 SETABA 21 THABO21 LENTSELA

22 CLLR NGOBENI YES 12 12 422 MPHEHLO22 MATLHOKO22 PHAAKAMILE22 NTITANE22 MOSALA22 MOSIFA22 NKO22 MOTLHABANE22 MONGAKE

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22 MOGOBINYANA

23 CLLR JOHNSON YES 12 12 423 SEBULE23 MOSIEDI23 METHE23 MMEKWA23 BATSHEGI 23 TSHABADIRA23 MOROGONG 23 KWENENYANE23 MOTHIBI23 MODISE

24 CLLR NKOLISA YES 12 12 424 LENTSWETSHIPI24 LELOMBA24 MSINGANGA24 TAU24 JONGANE24 MOLEMA24 LETHOBA24 MOTHUSI24 SEDUMEDI

25 CLLR NOVOLO YES 12 12 425 MAKGALEDISA 25 TEFFO25 NOVOLO25 NGWENYA25 NKOSI25 PINELA25 MSIMANGO25 MALEBYE25 LENTSWETSIPI

26 CLLR JABANYANE YES 12 12 426 MOSEKI

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26 MOSIANE 26 KGWADIBANA 26 DIKOLA 26 MODIKO 26 MOLOSIWA 26 MATSI 26 MOKAILA 26 MAKGOBA 26 MOLEMA

27 CLLR MOETI YES 12 12 4 27 THAGA 27 MOKGELE 27 MBANA 27 SEITSHIRO 27 MASIBI 27 TSHABALALA 27 GAOBUSE 27 SETLHABI 27 BOKALA 27 MODIPANE

28 CLLR NKOSI YES 12 12 4 28 NTSHOLE 28 PHAKHATHI 28 TAAIBOSCH 28 KAJENI 28 KGOTLAETSILE 28 NOJILA 28 TELEKO 28 GAENYANE 28 MAZAKAZA 28 MAKGOBI

29 CLLR LOMO YES 12 12 4 29 KHATAZO 29 GASEITSEKGOSI 29 MOALUSI

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29 KGENGWE 29 TAWANA 29 MOSINKI 29 SIDZUMO 29 MMITSHANE 29 MODISE

30 CLLR MATHAKATHAKA YES 12 12 4 30 SEKETEMA 30 SONDAKE 30 MOGOROSI 30 MAGOGODI 30 KGOSITAU 30 JOHANNA 30 MOGOSETSO 30 APPOLUS 30 RADEBE 30 MTOTOBA

31 CLLR MAKOLOMAKO YES 12 12 4 31 MOLELEKWA 31 MOHETA 31 NDLOVU 31 SAMS 31 MOLELEKWA 31 SEMAUSHU 31 NOVOLO 31 BALOITSE 31 SNYMES 31 FUSI

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COMMENT ON THE EFFECTIVENESS OF THE PUBLIC MEETINGS HELD:

Primarily there are two types of Public meetings; those where the municipality gives feedback to the community e.g. (MUNICIPAL PUBLIC ACCOUNTS COMMITTEE) and those in which the input are taken from the public, e.g. IDP. In both instances, the communities are actively involved and assist to move the process forward. The huge advantage with the approach is that matters that are implemented by the municipality come directly from the people themselves.

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2.5 IDP PARTICIPATION AND ALIGNMENT

IDP Participation and Alignment Criteria* Yes/No Does the municipality have impact, outcome, input, output indicators? Yes Does the IDP have priorities, objectives, KPIs, development strategies? Yes Does the IDP have multi-year targets? Yes Are the above aligned and can they calculate into a score? Yes Does the budget align directly to the KPIs in the strategic plan? Yes Do the IDP KPIs align to the section 57 Managers Yes Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes Were the indicators communicated to the public? Yes Were the four quarter aligned reports submitted within stipulated time frames?

No

* Section 26 of Municipal Systems Act 2000 T 2.5.1

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COMPONENT D: CORPORATE GOVERNANCE

OVERVIEW OF CORPORATE GOVERNANCE

Cooperative governance is governed by King ii & iii Code of Practice applicable to Local Government Sphere.

T 2.6.0

2.6 RISK MANAGEMENT

RISK MANAGEMENT

No Risk management process in place. T 2.6.1

2.7 ANTI-CORRUPTION AND FRAUD

FRAUD AND ANTI-CORRUPTION STRATEGY

No Fraud and Anti-corruption strategy in place. T 2.7.1

2.8 SUPPLY CHAIN MANAGEMENT

OVERVIEW SUPPLY CHAIN MANAGEMENT

The municipality is faced with none compliance challenges in terms of implementing the SCM regulations, one of its major challenges is lack of paying creditors on time due to limited cash flow.

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2.9 BY-LAWS

By-laws Introduced during Year 0

Newly Developed Revised Public Participation Conducted

Prior to Adoption of

By-Laws (Yes/No)

Dates of Public Participation

By-Laws Gazetted* (Yes/No)

Date of

Publicatio

n

Waste Management by-law New Yes 30 April 2015 No N/A

Fire Brigade Service by-law New Yes 30 April 2015 No N/A

Animal Pound by-law New Yes 30 April 2015 No N/A

Parking Meter by-law New Yes 30 April 2015 No N/A

Unsightly and neglected Buildings by-law New Yes 30 April 2015 No N/A

Tariff by-law New Yes 30 April 2015 No N/A

Credit Control and Debt Collection by-law New Yes 30 April 2015 No N/A

T 2.9.1

COMMENT ON BY-LAWS

Public participation was conducted by way of advertisement in the local newspaper indicating where copies of the draft by-laws can be obtained. Copies were sending to libraries, main buildings, licencing and tribal offices.

The By-laws were presented to the community in the previous financial year.

T 2.9.1.1

52

2.10 WEBSITES

Municipal Website: Content and Currency of Material Documents published on the Municipality's Website Yes /

No Publishing Date

Current annual and adjustments budgets and all budget-related documents Yes 2015/07

All current budget-related policies Yes 2015/07

The previous annual report 2014/15 Yes 2016/02

The annual report 2015/16 to be published Yes 2017/02

All current performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act 2015/16 and resulting scorecards

Yes 2016/08

All service delivery agreements 2015/16 Yes 2016/06

All long-term borrowing contracts 2015/16 No

All supply chain management contracts above a prescribed value (give value) for 2015/16 No

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 2016/17

No

Contracts agreed in 2015/16 to which subsection (1) of section 33 apply, subject to subsection (3) of that section No

Public-private partnership agreements referred to in section 120 made in 2015/16 Yes 2016/06

All quarterly reports tabled in the council in terms of section 52 (d) during 2015/16 Yes 2016/06

T 2.10.1

53

COMMENT MUNICIPAL WEBSITE CONTENT AND ACCESS:

Every effort is made to keep the website running smoothly. However, the Mahikeng Local Municipality takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

The use of website by the public was 275 948 hits in June 2016 website monitoring report.

T 2.10.1.1

2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES

PUBLIC SATISFCATION LEVELS

No surveys on public satisfaction were conducted during the financial year under review.

T 2.11.1

54

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

COMPONENT A: BASIC SERVICES

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

INTRODUCTION TO BASIC SERVICES

Basic services; water & sanitation, roads & storm water and public lighting provision are the key operational service delivery needs for the community. The municipality is responsible for maintaining these services and also construction of the roads & storm water.

T 3.1.0

55

3.1. WATER PROVISION

INTRODUCTION TO WATER PROVISION

The municipality is responsible for distributing water in its jurisdiction as the water service provider. It has entered into a service level agreement with Ngaka Modiri Molema District Municipality (NMMDM) the water service authority. The municipality has come up with a project of installing Smart Meters to replace analogue meters in business areas. This project will address challenges in respect of lack of water or broken meters to meet the supply to 15305 households. This will ensure timeous & correct meter reading, billing andinvoicing of customers. The meters will allow the stipulated free 6kl water provision in the event of non-payment by the customer.

T 3.1.1

56

Water Service Policy Objectives Taken From IDP Service Objectives

Outline Service Targets

2014/15 2015/16 2016/17 2017/18

Target Actual Target Actual Target Service

Indicators *Previous

Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following

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

Service Objective: Provision of Water to Communities

Number of households provided with piped water on site (yard taps, tanks or house connections)

15 303 households provided with piped water on site (yard taps, tanks or house connections) by 30 June 2016


Achieved




Target exceeded15 305households provided with piped water on site (yard taps, tanks or house connections)

None None None

Number of New water connections done per request by residents, business

300 new water connection for residents, business and

New water connections done per request by residents, business and

Achieved

There were 12 new water connections requested

New water connections done per request by residents, business and

300 new water connection for residents, business and

Not Achieved

20 new water connections done per request by

None None None

57

and commercial new site

commercial new site by 30 June 2016

commercial by 30 June 2015

and done commercial by 30 June 2015

commercial new site by 30 June 2016

residents, business and commercial new site

Number of water meters replaced per request by residents, business and commercial

2550 water meters replaced per request by residents, business and commercial by 30 June 2016

Water meters replaced per request by residents, business and commercial by 30 June 2015

Achieved

There were 231 meters replaced as per request

Water meters replaced per request by residents, business and commercial by 30 June 2015

2550 water meters replaced per request by residents, business and commercial by 30 June 2016

Not Achieved

168 water meters replaced per request by residents, business and commercial

None None None

Number of zonal meters and valves installed

4 Zonal meters and valves installed per request by 30 June 2016

Zonal meters and valves installed per request by 30 June 2015

Achieved

No zonal meters and valves were installed

Zonal meters and valves installed per request by 30 June 2015


Not Achieved

No Zonal meters and valves installed per request

None None None

T 3.1.6

58

Employees: Water & Sanitation Services

Job Level

2014/15 2015/16 Employees Posts Employees Vacancies

(fulltime equivalents)

Vacancies (as a % of

total posts) No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 6 6 6 0 0%

7 - 9 9 9 9 0 0%

10 - 12 4 4 4 0 0%

13 - 15 - - - - -

16 - 18 47 47 47 0 0%

19 - 20 - - - - -

Total 67 67 67 0 0% T3.1.7

COMMENT ON WATER SERVICES PERFORMANCE OVERALL:

The capital projects are under Ngaka Modiri Molema District Municipality (NMMDM) infrastructure. The municipality ensures continuous operation. Maintenance of the water distribution network as per the IDP schedule can be attained within approved budget provision. Delays in procurement processes adversely affected performance, creating backlog in meter replacement and installation of zonal meters.

T 3.1.10

59

3.2 WASTE WATER (SANITATION) PROVISION

INTRODUCTION TO SANITATION PROVISION

The municipality is responsible for the operation and maintenance of the wastewater network, lift stations and the Mahikeng & Mmabatho Wastewater treatment plants. Ngaka Modiri Molema District Municipality (NMMDM) is responsible for the infrastructure. The NMMDM has an on-going rehabilitation of electro-mechanical projects in both the treatment plants. The project is meant to optimize the treatment process and disposal of good quality treated effluent. The NMMDM Green Drop Wastewater Quality status is unacceptable due to non-operation of disinfecting system.

T 3.2.1

60

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


2014/15 2015/16 2016/17 2017/18

Target Actual Target Actual Target

Service Indicators

*Previous Year

*Previous Year

*CurrentYear

*CurrentYear

*CurrentYear

*FollowingYear

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

Service Objective: Provision of Sanitation to Communities

% of water and wastewater quality monitored in terms of Water Services Act 108 of 1997

100% water and wastewater quality monitored in terms of Water Services Act 108 of 1997 by 30 June 2016

None None None 100% water and wastewater quality monitored in terms of Water Services Act 108 of 1997 by 30 June 2016

Achieved

100% water and wastewater quality monitored in terms of Water Services Act 108 of 1997 by 30 June 2016

None None None

61

Number of Households provided with access to basic house sewer connections

15303 Households provided with access to basic house sewer connections by 30 June 2016


Target exceeded

16007 households were provided with access to basic house sewer connections



Target exceeded15305Households provided with access to basic house sewer connections

None None None

Number of Mega litres of waste discharged provided that meets waste discharge standard provided per day

10980 Mega litres of waste discharged provided that meets waste discharge standards provided per day by 30 June 2016


Not Achieved

28.2 Mega litres of waste discharged provided that meets waste discharge standards



Not Achieved

Mega litres of waste discharged provided does not meets waste discharge standards provided per day as required

None None None

T 3.2.6

62

Employees: Water & Sanitation Services

Job Level


(fulltime equivalent

s)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 6 6 6 0 0%

7 - 9 9 9 9 0 0%

10 - 12 4 4 4 0 0%

13 - 15 - - - - -

16 - 18 47 47 47 0 0%

19 - 20 - - - - -

Total 67 67 67 0 0% T3.1.7

COMMENT ON SANITATION SERVICES PERFORMANCE OVERALL:

The municipality has rapidly increased providing number of households with access to sanitation in the current year as compared to the previous years.

T 3.2.10

63

3.3 ELECTRICITY

INTRODUCTION TO ELECTRICITY

The Municipality is facilitating the provision of electricity as it does not have the electricity distribution license. To this end areas that require electricity are prioritized in the Integrated Development Plan (IDP) and then submitted to Eskom based on the priorities. The following are the Eskom Projects in relation to areas that needed electrification

Project name Households connection Goedgevoned Zone 1&2 79 Madibe a makgabane phase 3 39 Mahikeng Ext 39 130 Makhubung 312 Miga Ext 115 Mooifontein 105 Mooipan Ext 29 Signal Hill Phase 3 300 Tontonyane Ext 180 Tsetse 50

Eskom did the Project Management and commissioning of these projects and we are pleased to mention that the backlog has significantly reduced.

The Municipality focused on maintenance of highmast lights, street lights and traffic lights. The statistic report is as follows: - 626 high mast lights maintained- 7500 Street lights maintained- 28 traffic lights intersection were maintained

T 3.3.1

64

Electricity Service Policy Objectives Taken From IDP Service Objectives Outline Service

Targets 2014/15 2015/16 2016/1

7 2017/18


Service Indicators

*Previous Year

*Previous Year

*Current Year

*Current Year

*Current Year

*Following Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Service Objective: Provision of Electricity to Communities

Number of households with basic electricity connections from Eskom

2656 households with basic electricity connections from Eskom by 31 March 2016

213 Households provided with basic electricity at Madibe-Kgabana Ext and NW383 Mahikeng Infills by 30 June 2015

Achieve

213 Households provided with basic electricity at Madibe-Kgabana Ext and NW383 Mahikeng Infill

213 Households provided with basic electricity at Madibe-Kgabana Ext and NW383 Mahikeng Infills by 30 June 2015

2656 households with basic electricity connections from Eskom by 31 March 2016

Not Achieved

Only 1116households with basic electricity connections from Eskom

None None None

65

Number of indigents households with access to free basic electricity

5000 indigents households with access to free basic electricity by 30 June 2016

9000 Households provided with free basic electricity per month

Not Achieved

No household was provided with free basic electricity

9000 Households provided with free basic electricity per month

5000 indigents households with access to free basic electricity by 30 June 2016

Not Achieved

Indigents households have no access to free basic electricity

None None None

Number of street lights retrofitted

1407 street lights retrofitted by 30 June 2016

None None None 1407 street lights retrofitted by 30 June 2016

Achieved

1407 street lights retrofitted

None None None

Number of Street lights maintained

7500 Street lights maintained per need by 30 June 2016

3782 Street lights maintained per need by 30 June

Achieved

3782 Street lights were



Not Achieved

1104 Street

None None None

66

2015 maintained per need

2015 2016 lights maintained per need

Number of high mast lights maintained

796 high mast lights maintained per need by 30 June 2016


Achieved

554 high mast lights were maintained per need



Not Achieved

541high mast lights maintained per need

None None None

Number of traffic lights intersection maintained

28 traffic lights intersection maintained by 30 June 2016

26 traffic lights maintained by 30 June 2015

Achieved

26 traffic lights were maintained

26 traffic lights maintained by 30 June 2015

28 traffic lights intersection maintained by 30 June 2016

Achieved

28 traffic lights intersection maintained

None None None

T 3.3.5

67

Employees: Electricity Services

Job Level





0 - 3 1 1 1 0 0% 4 - 6 2 2 2 0 0%

7 - 9 - - - - -

10 - 12 4 4 2 2 50% 13 - 15 8 8 8 0 0%

16 - 18 - - - - -

19 - 20 - - - - - Total 15 15 13 2 13%

T 3.3.6

COMMENT ON ELECTRICITY SERVICES PERFORMANCE OVERALL:

As stated above electricity projects are done by Eskom and the role of the Municipality is to prioritize areas in need of electrification and submit the list to Eskom. The following are the capital projects that Eskom executed:

Project name Design Connection Actual Connection Status Update Mahikeng Infills 1200 573 627 Awaiting material

T 3.3.9

68

3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS, WASTE DISPOSAL, STREET CLEANING AND RECYCLING)

INTRODUCTION TO WASTE MANAGEMENT

HOUSEHOLD REFUSE COLLECTION

Mahikeng local municipality is responsible for household refuse collection in peri-urbanand urban areas within its jurisdiction.

In the peri-urban areas household collection was carried out by TEDCOR(July tillNovember) and newly appointed services provider GX, the collection id done on behalf ofthe municipality (presently residents do not pay for the services)

The municipal has a weekly household refuse collection schedule which is used toachieve this objective.

CHALLENGES

Frequent breakdown of refuse removal trucks.

REMEDIAL MEASURES

Acquisition of refuse removal trucks

WASTE DISPOSAL

The municipality has a licensed landfill site which it uses to dispose of all general wastecollected around Mahikeng.

The landfill site is managed by a private contractor appointed by the municipal.

CHALLENGES The contractor does not adhere to service level agreement and landfill site‟s permit

condition.

REMEDIAL MEASURES

Appointment of competent contractor

STREET CLEANING The municipality has deployed permanent staff around Mahikeng CBD for the purpose of

litter picking and street sweeping.

69

Over and above the permanent staff the municipality has EPWP contingent distributedaround Mahikeng and Mmabatho residential areas for litter picking and skip patrolling.

CHALLENGES

Supervision

REMEDIAL MEASURES

The municipality is yet to fill all vacant supervisory positions

RECYCLING

The municipality has a recycling forum that is responsible for recycling projects inMahikeng.

CHALLENGES

The recycling forum is not yet actively operational

T.3.4.1

70

Waste Management Service Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Service Objective: Coordinated and harmonious Environment

Number ofhouseholdprovidedwith refuseremovalservices inresidentialurban areas

15 303householdprovidedwith refuseremovalservices inresidentialurban areasby 30 June2016


Achieved

15000householdwereprovidedwith refuseremovalservices inresidentialurban areas



Targetexceeded15 305householdprovidedwith refuseremovalservices inresidentialurban areas

None None None

Number ofvillagesprovidedwith refuseremovalservices

18 villagesprovidedwith refuseremovalservices by30 June2016

None None None 18 villagesprovidedwith refuseremovalservices by30 June2016

Achieved

18 villagesprovidedwith refuseremovalservices

None None None

71

Number of trade premises provided with refuse removal services

832 trade premises provided with refuse removal services by 30 June 2016

None None None 832 trade premises provided with refuse removal services by 30 June 2016

Achieved

832 trade premises provided with refuse removal services

None None None

Number of anti-littering campaigns conducted

4 anti-littering campaigns conducted by 30 June 2016

4 anti-littering campaign conducted by 30 June 2015

Not Achieved



4 anti-littering campaigns conducted by 30 June 2016

Achieved

4 anti-littering campaign conducted

None None None

Number of reports on Facilitation of construction composting facility by DEA

4 reports on Facilitation of construction composting facility by DEA by 30 June 2016

100% Facilitation of construction composting facility by 30 June 2015

Not Achieved

The facilitation of construction composting facility did not take place

100% Facilitation of construction composting facility by 30 June 2015

4 reports on Facilitation of construction composting facility by DEA by 30 June 2016

Not Achieved

2 reports on Facilitation of construction composting facility by DEA

None None None

T 3.4.4

72

Employees: Solid Waste Management Services

Job Level



Vacancies (as a % of total

posts) No. No. No. No. %

0 - 3 2 2 2 0 0%

4 - 6 1 1 1 0 0%

7 - 9 - - - - -

10 - 12 17 20 17 3 15%

13 - 15 - - - - -

16 - 18 84 105 84 21 20%

19 - 20 - - - - -

Total 104 128 104 24 19%T3.4.5

COMMENT ON WASTE MANGEMENT SERVICE PERFORMANCE OVERALL:

All large environmental management projects are not financially funded by the Municipality,they are funded by other departments e.g. Department of Environmental Affairs.

T 3.4.10

73

3.5 HOUSING

INTRODUCTION TO HOUSING

Housing provision is facilitated by the Municipality as the second strategic objective of the Planning and Development Directorate managed by the housing unit. The municipality is currently not accredited to procure and build houses for the needy. That function is still managed by the department of Local Government and Human Settlements.

The housing section through the facilitation role ensures that the RDP houses are built properly according to approved building plans and that the correct beneficiaries are allocated their houses once completed in order to prevent vandalism and theft. Housing RDP/Low cost houses are provided in wards 1, 2, 3, 4, 5, 6, 9, 11, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30.

The municipality is faced with challenges with regard to build RDP houses such as a reported renting of houses at Danville, Ext 38; unoccupied RDP houses; handling of housing beneficiary lists; as well as communication of disapproval reasons by the department

The aim of the municipality is to obtain a level one and two accreditation to enable the municipality to be in control to procure registered building contractors and to be able to better manage their quality of workmanship and progress in terms of budgets and time frames.

The following are the top three priorities: 1. Land provisions and acquisition2. Building plan approvals.3. Construction compliance and quality control.

The function of provision of housing within the municipality is administered as follows and includes: * Land Use Management*Spatial Planning* Housing Provision* Building Control* Property Valuation & Management*Transportation Planning*Geographical Information System* Environmental Management

These services extend to include housing, but do not take account of housing which resides within the jurisdiction of Ngaka Modiri Molema District Municipality, North West Provincial government. The municipality has a mandate to:

74

Facilitate housing projects allocated from Housing Department, report on progress made on housing backlogs and project manage all their housing projects

The strategic objective of the housing function is to reduce the Housing backlog within the urban & rural areas.

75

Housing Service Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year *Current Year*Current Year

*Current Year

*Following Year


Service Objective: To Provide Adequate Housing

% Turn –aroundtime takento processapplications forbuildingplanswithin 30days fromdate ofsubmission

100% Turn –around time takento processapplications forbuilding planswithin 30 daysfrom date ofsubmission

100% Turn– aroundtime takento processapplications forbuildingplanswithin 30days fromdate ofsubmission

Achieved

Thebuildingplansapplicationforms were100%processedwithin 30days fromdate ofsubmission

100% Turn– aroundtime takento processapplications forbuildingplanswithin 30days fromdate ofsubmission

100% Turn –around time takento processapplications forbuilding planswithin 30 daysfrom date ofsubmission

NotAchieved

Turn –aroundtime takento processapplications forbuildingplans wasnot beenmet within30 daysfrom dateofsubmission

None None None

76

%Improvedturnaroundtime oninterimvaluation ofnewlyapprovedbuildingwithin 21days ofcompletionof structure

100% Improvedturnaround timeon interimvaluation of newlyapproved buildingwithin 21 days ofcompletion ofstructure

100%Improvedturnaroundtime oninterimvaluation ofnewlyapprovedbuildingwithin 21days ofcompletionof structure

Achieved



100% Improvedturnaround timeon interimvaluation of newlyapproved buildingwithin 21 days ofcompletion ofstructure

NotAchieved

Turnaround time oninterimvaluation ofnewlyapprovedbuildingwas notbeen metwithin 21days ofcompletionofstructure.

None None None

%Improvedturnaroundtime oninterimvaluation ofimproved(Extended)approvedbuildingwithin 21days of

100% Improvedturnaround timeon interimvaluation ofimproved(Extended) approvedbuilding within 21days ofcompletion ofstructure

None None None 100% Improvedturnaround timeon interimvaluation ofimproved(Extended) approvedbuilding within 21days ofcompletion ofstructure

NotAchieved

Turnaround time oninterimvaluation ofimproved(Extended)approvedbuildingwas notbeen met

None None None

77

completionof structure

within 21days ofcompletionofstructure.

HousingSectorPlanadopted bycouncil

Housing SectorPlan adopted bycouncil by 30June 2016

ReviewedandadoptedHousingSectorPlan bycouncil by31 March2015

NotAchieved

Thehousingsector planis in a draftformat andnot yetreviewed,hence noadoption

ReviewedandadoptedHousingSectorPlan bycouncil by31 March2015

Housing SectorPlan adopted bycouncil by 30June 2016

Achieved

HousingSectorPlanadopted bycouncil

None None None

Timeousadoptionof LevelOneHousingaccreditationapplicationby council

Timeous adoptionof Level OneHousingaccreditationapplication bycouncil by 31December 2015

Timeoussubmissionof LevelOneHousingaccreditationapplicationto councilforadoption

NotAchieved

The LevelOneHousingaccreditationapplicationis onlybeendrafted and

Timeoussubmissionof LevelOneHousingaccreditationapplicationto councilforadoption

Timeous adoptionof Level OneHousingaccreditationapplication bycouncil by 31December 2015

Achieved

Level OneHousingaccreditationapplicationadoptionby council

None None None

78

by 31December2014

not yetsubmittedto councilforadoption

by 31December2014

Number ofreportscompiledon lowcosthousesfacilitated

4 reportscompiled on lowcost housesfacilitated by 30June 2016

4 quarterlyreportscompiledmonitoredon low costhousesfacilitatedby 30 June2015

Achieved

4 quarterlyreportswerecompiledonmonitoredlow costhousesfacilitated

4 quarterlyreportscompiledmonitoredon low costhousesfacilitatedby 30 June2015

4 reportscompiled on lowcost housesfacilitated by 30June 2016

Achieved

4 reportswerecompiledonmonitoredlow costhousesfacilitated

None None None

T3.5.3

79

Employees: Housing Services

Job Level





0 - 3 2 2 2 0 0%

4 - 6 - - - - 0% 7 - 9 2 2 2 0 0%

10 - 12 - - - - 0%

13 - 15 - - - - 0%

16 - 18 - - - - 0%

19 - 20 - - - - 0% Total 4 4 4 0 0%

T 3.5.4

COMMENT ON THE PERFORMANCE OF THE HOUSING SERVICE OVERALL:

Housing delivery is low and there is more demand than supply which means that there is a huge shortage of rented housing as well as ownership of housing.

Housing projects are facilitated by the Municipality and procured and funded by the Department of Human Settlements.

T 3.5.7

80

3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT

INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT

The municipality free basic services are mainly water supplied to rural villages /wards and Indigents receiving 6,000 litres of potable water supplied per formal connection per month and any access above that its payable to the municipality.

The municipality still in progress of compiling the indigents register per 31 wards. T 3.6.1

STATISTICS SERVICES FOR FREE BASIC SERVICES AND INDIGENTS SUPPORT

Free basic water/refuse

Rural villages /wards 18 rural villages provided with Free refuse removal 28 rural wards provided with free basic water (Water tanks and boreholes

Indigents/ RDP households 2492 as 30 June 2016 Billing report

T 3.6.2

81

Free Basic Service Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Provision of free basic water to Communities

28 rural Wards provided with free basic water (Water tanks and boreholes)by 30 June 2016

None None None 28 rural Wards provided with free basic water (Water tanks and boreholes)by 30 June 2016

Achieved

28 rural Wards provided with free basic water (Water tanks and boreholes)

None None None

Number of rural Wards provided with free basic water (Water tanks and boreholes)

Number of boreholes and windmills maintained

170 boreholes and 290 windmills maintained by 30 June 2016

None None None 170 boreholes and 290 windmills maintained by 30 June 2016

Not Achieved

7 boreholes 0 windmills maintained

None None None

Provision of Electricity to Communities

5000 indigents households

9000 Households

Not Achieved

9000 Households

5000 indigents households

Not Achieved

None None None

82

with access to free basic electricity by 30 June 2016

provided with free basic electricity per month

No household was provided with free basic electricity

provided with free basic electricity per month

with access to free basic electricity by 30 June 2016

5000 indigents householdsnotwith access to free basic electricity

Number of indigents households with access to free basic electricity

Coordinated and harmonious Environment

18 villages provided with refuse removal services by 30 June 2016

None None None 18 villages provided with refuse removal services by 30 June 2016

Achieved

18 villages provided with refuse removal services

None None None

Number of villages provided with refuse removal services

T 3.6.5

83

COMMENT ON FREE BASIC SERVICES AND INDIGENT SUPPORT:

The municipality provided free basic services such as free refuse removal and free water to rural areas. The municipality is in the process of updating its indigent register in order to verify the indigents consuming the free basic services per wards.

T 3.6.6

COMPONENT B: ROADS

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

INTRODUCTION ROADS

Road Transport is primarily used in the Municipal‟s jurisdiction as a form of linkage. Most ofthe road transport is usage of various forms of the vehicles, donkey carts and the bicycles. It should however be noted that this form of transport is not sufficient as the road infrastructure at large needs to be improved on due to its ageing.

3.7 ROADS

INTRODUCTION TO ROADS

Roads within Mahikeng Local Municipality are classified in different types namely: - National Roads- Provincial Roads- District Roads- Local (internal) Roads

The municipality focuses on main roads and internal roads in both urban and rural areas. The total kilometer of roads within the municipality is estimated to be 274.8km surfaced roads infrastructure within the urban part of the municipality. Some roads require persistent pothole patching and resealing while some require total reconstruction. About 100kms of rural roads are gravel roads, which some have been upgraded to tar roads. Internal roads in all the rural wards need major constructions and constant maintenance.

T 3.7.1

84

Gravel Road Infrastructure Kilometers

Total gravel roads

New gravel roads constructed

Gravel roads upgraded to tar

Gravel roads graded/maintained

2013/14 553 0 4 13 2014/15 553 1 17 0 2015/16 553 0 0 0

T 3.7.2

Tarred Road Infrastructure Kilometers

Total tarred roads

New tar roads

Existing tar roads re-tarred

Existing tar roads re-sheeted

Tar roads maintained

2013/14 274 4 0 0 18 2014/15 274 17 0 16 30 2015/16 295 0 2.8 0 25

T 3.7.3

Cost of Construction/Maintenance R' 000

Gravel Tar New Gravel - Tar Maintained New Re-worked Maintained

2013/14 0 15000000 0 15000000 0 0 2014/15 1612142 61000000 0 61000000 42000000 8310751 2015/16 0 0 8 854 540.03 0 0 5 108 476.19

T 3.7.4

85

T 3.7.5

86

Road Service Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Service Objective: Provision of Roads and storm water to communities

KMs of new tar road constructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede Exit

3.2 KMs of new tar road constructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede Exit by 30 June 2016

3.2 Kms of new tar road constructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede Exit by 30 June 2015

Not Achieved

3.2 Kms of new tar road not constructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede Exit



Achieved

3.2 KMs of new tar road constructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede Exit

None None None

KMs of gravel road upgraded to tar at main road in Madibe Makgabane Phase 1

0.8 KMs gravel road upgraded to tar at main road in Madibe Makgabane Phase 1 by 31

2 Kms of Upgrading of main road in Madibe Makgabane Phase 2 by 30 June 2015

Not Achieved

1.2 Upgraded main road in Madibe Makgabane Phase 2


0.8 KMs gravel road upgraded to tar at main road in Madibe Makgabane Phase 1 by 31

Achieved

0.8 KMs gravel road upgraded to tar at main road in Madibe Makgabane

None None None

87

December 2015

December 2015

Phase 1

KMs of Upgrading of internal roads and by-pass to Sebonego and Matsheka Road

0.6 KMs of Upgrading of internal roads and by-pass to Sebonego and Matsheka Road by 30 June 2016

1.7 Kms of Upgrading of internal roads and by-pass to Sebonego and Matsheka Road by 30 June 2015

Not Achieved

1.1 Kms of Upgraded internal roads and by-pass to Sebonego and Matsheka Road 30 June 2015



Achieved

0.6 KMs of Upgrading of internal roads and by-pass to Sebonego and Matsheka Road

None None None

KMs of main road paved in Ext 39 Phase 2

0.5 KMs of main road paved in Ext 39 Phase 2 by 30 June 2016

1.6 km of paved main road in Ext 39 Phase 2 by 30 June 2015

Not Achieved

1.1 km of paved main road in Ext 39 Phase 2



Achieved

0.5 KMs of main road paved in Ext 39 Phase 2

None None None

88

KMs of tar road constructed from Mr-T to Seweding Phase 2

1.5 KMs of tar road constructed from Mr-T to Seweding Phase 2 by 30 June 2016

None None None 1.5 KMs of tar road constructed from Mr-T to Seweding Phase 2 by 30 June 2016

Not Achieved

1.5 KMs of tar road not constructed from Mr-T to Seweding Phase 2

None None None

Number of bridges constructed between Serotswana, Moraka and Masutlhe

1 Bridge constructed between Serotswana, Moraka and Masutlhe by 30 June 2016

1 Bridges constructed between Serotswana, Moraka and Masutlhe by 30 June 2015

Achieved

1 Bridge was constructed between Serotswana, Moraka and Masutlhe



Achieved

1 Bridge constructed between Serotswana, Moraka and Masutlhe

None None None

KMs of tar road constructed at Thembane Phase 1

1.3 KMs of tar road constructed in Thembane Phase 1 by 30 June 2016

2.2 KMs of Tar road constructed in Thembane Phase 1 by 30 June 2015

Not Achieved

0.9 KMs of Tar road constructed in Thembane Phase 1



Not Achieved

0.7KMs of tar road notconstructed in Thembane Phase 1

None None None

KMs of Tar road constructed at Ext 38 main road

0.2 KMs of tar road constructed at Ext 38 main road by 31 December 2015

1.2 KMs of Tar road constructed at Ext 38 main road by 30 June 2015

Not Achieved

1.0 KMs of Tar road constructed at Ext 38 main road



Achieved

0.2 KMs of tar road constructed at Ext 38 main road

None None None

89

Number of bridges constructed in Mahupe Section

1 Bridge constructed in Mahupe Section by 30 June 2016

1 Bridges constructed at Mahupe Section by 30 June 2015

Not Achieved No Bridges constructed at Mahupe Section



Achieved

1 Bridge constructed in Mahupe Section

None None None

Number of Bridges constructed in Dithakong Tsaga Sehuba

1 Bridge constructed in Dithakong Tsaga Sehuba

None None None 1 Bridge constructed in Dithakong Tsaga Sehuba by 30 June 2016

Not Achieved

Bridge not constructed in Dithakong Tsaga Sehuba

None None None

KMs of gravel road upgraded to tar at Setumo high school road

2,7 KMs gravel road upgraded to tar at Setumo high school road by 30 June 2016

None None None 2,7 KMs gravel road upgraded to tar at Setumo high school road by 30 June 2016

Not Achieved 2,7 KMs gravel road upgraded not to tar at Setumo high school road

None None None

KMs of tar road constructed at Mapetla taxi road in Phase I

4,5 KMs of tar road constructed at Mapetla taxi road in Phase I by June 2016

None None None 4,5 KMs of tar road constructed at Mapetla taxi road in Phase I by 30 June 2016

Not Achieved

4,5 KMs of tar road notconstructed at Mapetla taxi road in Phase I

None None None

90

KMs of tar road constructed from Seweding to Phatsima – Ward 14

1,8 KMs of tar road constructed from Seweding to Phatsima – Ward 14 by 30 June 2016

None None None 1,8 KMs of tar road constructed from Seweding to Phatsima – Ward 14 by 30 June 2016

Not Achieved

1,8 KMs of tar road not constructed from Seweding to Phatsima – Ward 14

None None None

KMs of tar road constructed in Ward 30

1,3 KMs of tar road constructed in Ward 30 by 30 June 2016

None None None 1,3 KMs of tar road constructed in Ward 30 by 30 June 2016

Not Achieved

1,3 KMs of tar road not constructed in Ward 30

None None None

KMs of gravel road upgraded to tar at main road in Madibe Makgabane – ward 1

3,5 KMs of gravel road upgraded to tar at main road in Madibe Makgabane – ward 1 by30 June2016

None None None 3,5 KMs of gravel road upgraded to tar at main road in Madibe Makgabane – ward 1 by30 June2016

Not Achieved 3,5 KMs of gravel roadnotupgraded to tar at main road in Madibe Makgabane – ward 1

None None None

KMs of gravel road upgraded to tar in Moipan – Phase II

3,5 KMs of upgrading of a road in Mooipan – Phase II by 30 June

None None None 3,5 KMs of upgrading of a road in Mooipan – Phase II by 30 June

Not Achieved 3,5 KMs ofroad notupgrading in

None None None

91

2016 2016 Mooipan –Phase II

KMs of roadpatched andresealed

35.5 KMs ofroadspatched andresealed by30 June2016

24 Kms ofroadspatched andresealed by30 June2015

Targetexceeded

30.092 Kmsof roadswerepatched andresealed by30 June2015

24 Kms ofroadspatched andresealed by30 June2015

35.5 KMs ofroadspatched andresealed by30 June2016

NotAchieved

Only 24.782KMs ofroads werepatched andresealed

None None None

Number ofSpeedHumpsConstructed

128 SpeedHumpsConstructedby 30 June2016

None None None 128 SpeedHumpsConstructedby 30 June2016

NotAchieved

1 SpeedHumpsConstructed

None None None

Number ofdamagedStreetNames andPlatesReplaced

96 DamagedStreetNames andPlatesReplaced by30 June2016

None None None 96 DamagedStreetNames andPlatesReplaced by30 June2016

NotAchieved

No DamagedStreetNames andPlatesReplaced

None None None

92

Employees: Road & Storm water Services

Job Level





0 - 3 2 2 2 0 0% 4 - 6 4 4 4 0 0% 7 - 9 1 1 1 0 0%

10 - 12 25 25 25 0 0%

13 - 15 - - - - - 16 - 18 38 38 38 0 0%

19 - 20 - - - - - Total 70 70 70 0 0%

T3.7.7

COMMENT ON THE PERFORMANCE OF ROADS OVERALL:

The roads started to be visible when the office of the Premier introduces the MRRRP. The main problem was shortage of resources and insufficient budget.

T 3.7.10

93

3.8 VEHICLE LICENSING

INTRODUCTION TO VEHICLE LICENSING

Despite shortage of personnel in the Testing and Licensing unit, all efforts were made toprovide effective and efficient testing and licensing services in accordance with legislation.The following activities were conducted:- Eye testing for PrDP‟s and Driving Licenses Renewals as well as for Learners and DrivingLicenses applicants- Testing Applicants for Learners and Driving Licenses- Testing of motor vehicles for road worthiness and for certificate of fitness- Authorisation and issuing of PrDP‟s- Issuing Driving Licence Cards.

T 3.8.1

SERVICE STATISTICS FOR VEHICLE LICENCING

92% of Driver‟s License Applicants tested

100% of Permits (PrDP) issued per month

98% of vehicles tested per month

94

Vehicle Licencing Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Service Objective: Provide efficient and effective law enforcement Services

% of learners and driver‟s license applicants tested

100% learners and driver‟s license applicants tested by 30 June 2016

100% of Driver‟s License Applicants tested by 30 June 2015

Achieved

100% of driver‟s license applicants were tested

100% of Driver‟s License Applicants tested by 30 June 2015

100% learners and driver‟s license applicants tested by 30 June 2016

Not Achieved

92% of learners and driver‟s license applicants tested

None None None

% of Permits requested (PrDP) issued per month

100% of Permits requested (PrDP) issued per month

100 % of Permits requested (PrDP) issued per month

Achieved

100 % of Permits (PrDP) requetsed issued per month

100 % of Permits requested (PrDP) issued per month

100% of Permits requested (PrDP) issued per month

Achieved

100 % of Permits (PrDP) requested issued per month

None None None

95

% of vehicles tested per month

100%of vehicles tested per month


Achieved

100 % of vehicles were tested per month


100%of vehicles tested per month

Not Achieved

98 % of vehicles were tested per month

None None None

T 3.8.3

96

Employees: Vehicle Licencing

Job Level


(fulltime equivalents

)


posts)

No. No. No. No. %

0 - 3 0 1 0 1 100%

4 - 6 - - - - -

7 - 9 19 20 18 2 10%

10 - 12 - - - - -

13 - 15 1 1 1 0 0%

16 - 18 - - - - -

19 - 20 - - - - -

Total 20 22 19 3 14% T3.8.4

COMMENT ON THE PERFORMANCE OF TRANSPORT OVERALL:

ACHIEVEMENTS: 92% of Driver‟s License Applicants tested 100% of Permits (PrDP) issued per month 98% of vehicles tested per month

CHALLENGES: - Shortage of staff- Poor Security Measures- Tools of trade i.e. Computers and Printers- Lack of skills and training- Not enough space for public parking- Poor toilet facilities- No motor cycle track.

T 3.8.7

97

3.9 WASTE WATER (STORMWATER DRAINAGE)

INTRODUCTION TO STORMWATER DRAINAGE

Storm water drainage system is a serious concern as it has been neglected for a long time. For the past years focus was only on roads repair not drainage system as a result the Storm water drainage system has silted or even blocked. We have two teams with averagely 10 members who are only able to do minor maintenance (i.e. to remove small shrubs and sand in shallow Storm water channels). For big channels and pipes there is still a challenge to maintain and the other factor is that the community that has turned those big channels into dumping areas. The total length of Storm water drainage system is 166 km which is still a challenge to cover the entirety.

T 3.9.1

Storm water Infrastructure Kilometers

Total Storm water measures

New storm water measures

Storm water measures upgraded

Storm water measures maintained

2013/14 166 0 0 27 2014/15 166 0 0 4 2015/16 166 0 0 17

T 3.9.2

Cost of Construction/Maintenance R' 000

Storm water Measures New Upgraded Maintained

2013/14 0 0 143 995 2014/15 0 0 140 875 2015/16 0 0 95 736

T 3.9.3

98

T 3.9.4

99

Road Service Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18


Service

Indicators

*Previous Year

*Previous Year

*Current Year *CurrentYear

*CurrentYear

*FollowingYear


Service Objective: Provision of Roads and storm water to communities

KMs of Storm Water Drainage System Maintained

31.2 KMs Storm Water Drainage System Maintained by 30 June 2016

None None None 31.2 KMs Storm Water Drainage System Maintained by 30 June 2016

Not Achieved

16.511KMsStorm Water Drainage System Maintained

None None None

100

Employees: Road & Storm water Services

Job Level





0 - 3 2 2 2 0 0% 4 - 6 4 4 4 0 0% 7 - 9 1 1 1 0 0%

10 - 12 25 25 25 0 0%

13 - 15 - - - - - 16 - 18 38 38 38 0 0%

19 - 20 - - - - - Total 70 70 70 0 0%

T3.7.7

COMMENT ON THE PERFORMANCE OF STORMWATER DRAINAGE OVERALL:

Storm-water is a very sensitive aspect as it requires more effects, if it is given the necessary attention it will reduce the backlog on potholes patching. Maintenance of storm-water drainage has been neglected for a long time therefore the performance is not satisfactory.

101

COMPONENT C: PLANNING AND DEVELOPMENT

This component includes: planning; and local economic development.

INTRODUCTION TO PLANNING AND DEVELOPMENT

Government is committed to economic growth, employment creation, sustainable service delivery, poverty alleviation programmes and the eradication of historic inequalities. In order to ensure that infrastructure investment and development programmes are channelled towards these objectives, the National Spatial Development Perspective (NSDP) was formulated. The principles enshrined in the NSDP are thus of great importance to local government investment, through the IDP and capital expenditure. The National Spatial Development Vision is as follows: South Africa will become a nation in which investment in infrastructure and development programmes support government‟s growth and development objectives: • By focusing economic growth and employment creation in areas where this is most effectiveand sustainable;• By supporting restructuring to ensure greater competitiveness;• By fostering development on the basis of local potential; and• By ensuring that development institutions are able to provide basic needs throughout thecountry.

T 3.10

102

3.10 PLANNING

INTRODUCTION TO PLANNING

Planning is an essential part of ensuring that a product is realised effectively and efficiently within prescribed time frames and budgets in compliance with legislative requirements. Basic planning responsibilities cut across the following sectors within the directorate: • Public Transportation Planning• Housing Provision• Tourism and Marketing of SMME productsNational Spatial Development Perspective

Government is committed to economic growth, employment creation, sustainable service delivery, poverty alleviation programmes and the eradication of historic inequalities. In order to ensure that infrastructure investment and development programmes are channelled towards these objectives, the National Spatial Development Perspective (NSDP) was formulated. The principles enshrined in the NSDP are thus of great importance to local government investment, through the IDP and capital expenditure.

The NSDP seeks to focus the bulk of fixed investment of government on those areas with the potential for sustainable economic development, as it is in these areas where government‟s objectives of promoting economic growth and alleviating poverty will best be achieved.

Planning is guided by the following legislative documents:

The Spatial Developmental Framework; The Constitution of SA Act 108 of 1996; The Town Planning Land Use Management Act of 1998; The Environmental Act; The new SPLUMA Spatial Land Use Management Act 16 of 2013 and developmental principles.

Top three priorities include: 1. Provide spatial and town planning services (land use management).2. Facilitate provisions of human settlement.3. Promote local Economic Development, Tourism and Rural Development.

Some of the achievements with regard to Local Economic Development include: 1. Emergency (temporary shelters) houses built;2. Low Cost Houses provided to destitute families;3. SMME‟s trained in establishing business enterprises, vegetable gardens; and4. School greening projects initiated. .

T 3.10.1

103

Applications for Land Use Development Detail Formalisation of

Townships Rezoning Built Environment 2014/15 2015/16 2014/15 2015/16 2014/15 2015/16

Planning application received 2 - 2 14 265 266 Determination made in year of receipt 2 - 2 5 - 147 Determination made in following year 2 - 2 - - 131 Applications withdrawn - - - 1 5 - Applications outstanding at year end - - - 8 37 -

T3.10.2

104

Planning Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Service Objective: Promote spatial planning

Mahikeng new Land use Scheme reviewed and adopted by council

Mahikeng new Land use Scheme reviewed and adopted by council by 30 June 2016

Adopted Mahikeng new Land use Scheme by council by 30 June 2015

Not Achieved

The Mahikeng new land use scheme was not adopted

Adopted Mahikeng new Land use Scheme by council by 30 June 2015

Mahikeng new Land use Scheme reviewed and adopted by council by 30 June 2016

Not Achieved

The Mahikeng new land use scheme was not adopted

None None None

Land (urban) audit report adopted by council

Land (urban) audit report adopted by council by 31 March 2016

Adopted Land (urban) Audit report by council by 30 June 2015

Not Achieved

The land (urban) audit was not performed

Adopted Land (urban) Audit report by council by 30 June 2015

Land (urban) audit report adopted by council by 31 March 2016

Not Achieved

The land (urban) audit was not performed

None None None

105

Number of reports on new township established submitted to council

4 reports on new townships established submitted to council by 30 June 2016


Not Achieved

There was no new townships established



Not Achieved

No reports on new townships established submitted to council

None None None

% Turn – around time taken to process rezoning applications within 90 days from date of submission

100% Turn – around time taken to process rezoning applications within 90 days from date of submission


Not Achieved

The rezoning applications were not processed



Not Achieved

Turn – around time taken to process rezoning applications was not been met within 90 days from date of submission.

None None None

T 3.10.3

106

Employees: Planning Services

Job Level





0 - 3 - 8 6 2 0

4 - 6 - 5 5 0 0

7 - 9 - 14 9 5 0

10 - 12 - - - - -

13 - 15 - - - - -

16 - 18 - - - - -

19 - 20 - - - - -

Total - 27 20 7 0 T 3.10.4

COMMENT ON THE PERFORMANCE OF PHYSICAL PLANNING OVERALL:

The municipality will appoint the members for the municipal planning tribunal to implement the Spatial Planning and Land Use Management Act, 2013(SPLUMA) in the next financial year and expedite the processing of applications for building plans

T 3.10.7

107

3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES)

INTRODUCTION TO ECONOMIC DEVLOPMENT

Mahikeng Local Municipality is faced by development problem in that a mix of urban and rural economies characterizes the municipal area of jurisdiction, thus ranging from a relatively strong economic performance to relatively isolated rural settlements with high levels of poverty. As a municipality, it has a specific coordination and facilitation responsibilities, which need to be addressed in an innovative manner to initiate and promote integrated and sustainable LED as well as to attract investments.

The municipality‟s LED Strategy was reviewed in 2012. The purpose of the MLM LED Strategy is to collate all economic information and investigate the coordinated and integrated options and opportunities available to broaden the economic base of the study area, packaged as a strategic implementation framework in order to address the creation of employment opportunities, investment and business development and the resultant positive spin-off effects throughout the district economy.

Some of the critical relevant economic activities within the main economic sectors are Agriculture, Mining, Manufacturing, Trade and Tourism. The Standard Industrial Classification does not define Tourism as an economic sector, but because it is such an important industry in terms of potential job creation. Local Economic Development aims to address and reduce Poverty alleviation through introducing sustainable projects and job creation in wards.

There is a growing need for LED projects especially within our rural communities. Almost 50% of the wards have prioritized the provision of LED projects, especially in the area of small scale commercial farming with the potential for income-generation and the reduction of unemployment.

“The NDP contains proposals for tackling the problems of poverty, inequality and unemployment. It is a roadmap to a South Africa where all will have water, electricity, sanitation, jobs, housing, public transport, adequate nutrition, education, social protection, quality healthcare, recreation and a clean environment.”

Youth in particular came strong on matters relating to projects implementation; as a result the Municipality decided that it will develop plans to help sustain youth development and empowerment.

LED includes provincial and local context and will result in detailed opportunities and constraints from sectorial opportunities and constraints which will serve as the basis for possible future Local Economic Development projects.

108

T 3.11.1

COMMENT ON LOCAL JOB OPPORTUNITIES:

Local Economic Development aims to address and reduce Poverty alleviation throughintroducing sustainable projects and job creation in wards. The 26 job created were ongreening project and 500 jobs were created through EPWP projects.

T 3.11.4

Job creation through EPWP* projects

Details

EPWP Projects

Jobs created through EPWP projects

No. No. 2013/14 7 5002014/15 7 5002015/16 7 500* - Extended Public Works Programme T 3.11.6

109

Local Economic Development Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Service Objective: Create a conducive environment for business investment and growth for job creation

LED Strategy reviewed and adopted by council

LED Strategy reviewed and adopted by council by 31 March 2016

Reviewed and adopted LED Strategy by council by 31 March 2015

Not Achieved

The LED strategy was not reviewed, hence not adopted

Reviewed and adopted LED Strategy by council by 31 March 2015

LED Strategy reviewed and adopted by council by 31 March 2016

Not Achieved

The LED strategy was not reviewed, hence not adopted

None None None

Number of Agricultural enterprises supported

16 Agricultural enterprises supported by 30 June 2016


Target exceeded

16 Agricultural enterprises were supported



Target Exceeded

26 Agricultural enterprises were supporte

None None None

110

d by 30 June 2015

Number of SMMEs trained

70 SMMEs trained by 30 June 2016


Target Exceeded

81 SMMEs were trained



Not Achieved

11 SMMEs were trained

None None None

T 3.11.7

111

Employees: Local Economic Development Services

Job Level

2014/15 2015/16 Employees Posts Employees Vacancies (fulltime

equivalents) Vacancies (as a %

of total posts) No. No. No. No. %

0 - 3 2 2 2 0 0% 4 - 6 4 4 4 0 0% Total 6 6 6 0 0%

T 3.11.8

COMMENT ON LOCAL ECONOMIC DEVELOPMENT PERFORMANCE OVERALL:

Local Economic Development includes all activities associated with economic development initiatives. Subsistence agriculture is practiced widely by rural communities while commercial agriculture contributed almost R146m (3.5%) to the total GDP for 2004. Between 2001 and 2004, strong growth (6.6% p.a.) was reported for the local agricultural sector.

The function of economic planning / development within the municipality is administered as follows and includes: 1. Marketing & Tourism Management2. Project Management in Agriculture

These services extend to include economic development, but do not take account of economic development which resides within the jurisdiction of District Municipality and North West Provincial Government. The municipality has a mandate to capacitate and support SMME‟s.

The Strategic objective of this function is to train SMMEs on tendering, business management and marketing.

The key issues for 2015/2016 were as follows:

Number of SMME products marketed Agricultural Support Initiatives

T 3.11.11

112

COMPONENT D: COMMUNITY & SOCIAL SERVICES

This component includes: libraries and archives; museums arts and galleries; community halls; cemeteries and crematoria; child care; aged care; social programmes, theatres.

3.12 LIBRARIES AND COMMUNITY FACILIT IES

INTRODUCTION TO LIBRARIES AND COMMUNITY FACILITIES

The Library function offers information services that meet the educational, recreational, development and cultural needs of the people of Mahikeng.

We presently have 6 Functional libraries and they are situated as follows: - Mmabatho Library- Mahikeng Library- Barolong Boo Ratshidi Library- Danville Library- Miga Library- Ottoshoop Library- Lomanyaneng Library

All the libraries cater for the area they are in and the surrounding villages. Support is given to the poor communities by helping the children with home-works, school projects and promoting the culture of learning as part of promoting literacy.

T3.12.1

SERVICE STATISTICS FOR LIBRARIES Library Statistics

Memberships No of users

1st Quarter 50 Memberships 2nd Quarter 32 Memberships 3rd Quarter 81 Memberships 4th Quarter 77 MembershipsTotal 240

T 3.12.2

113

Libraries and Community Facilities Other Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current Year

*Current Year

*Following Year


Service Objective: Provide public amenities for various communities

Number of new Library membership received

200 New library memberships received per demand by 30 June 2016

New library memberships received per demand by 30 June 2015

Achieved

228 new Library memberships were received per demand by 30 June 2015

New library memberships received per demand by 30 June 2015

200 New library memberships received per demand by 30 June 2016

Target Exceeded

240 New library memberships received per demand

None None None

Number of Library Services Awareness campaigns conducted

2 Library services awareness campaigns conducted by 30 June 2016


Target exceeded

3 Library Services Awareness campaigns were conducted by



Achieved

2 Library services awareness campaigns not conducted

None None None

114

30 June 2015

Number of reports submitted on Civic Centre bookings

12 reports submitted on Civic Centre bookings by 30 June 2016


Achieved

12 reports were submitted on Civic Centre bookings



Achieved

12 reports were submitted on Civic Centre bookings

None None None

T 3.12.3

115

Employees: Libraries and Community Facilities

Job Level





0 - 3 - - - - -

4 - 6 - - - - -

7 - 9 8 09 8 1 11%

10 - 12 - - - - -

13 - 15 8 10 8 2 20%

16 - 18 - - - - -

19 - 20 - - - - -

Total 16 19 16 3 16% T 3.12.4

COMMENT ON THE PERFORMANCE OF LIBRARIES AND COMMUNITY FACILITIES

The library is there to ensure access for all communities: to initiate library awareness campaigns and promote awareness of reading. The measures that were taken to improve performance was that of partnering with NPO`s, government departments and schools.

The library week was celebrated on the 18th March 2016 at the Ottoshoop Library. Ottoshoop was identified in line with the VTSD approach. This awareness raising event was held in partnership with the local Phakisang Primary School, Aobakwe Early Learning Centre, the Local SAPS and the community. The theme was “Libraries Transform” and we 299attendees.

On the 13th May 2016 we celebrated World Play Day together with Ultrapex NPO (as the principal host), Early Learning Centers, Department of Health and the Department of Education and Sports Development. The theme was “Play for all ages”. World Play day iscelebrated over 40 countries to encourage outdoor playing for both children and adults. The activities that took place on the day are Egg race, Sack race, rope challenge games , hoola hoops and more.

116

On the 24th June 2016 the Department of Culture Arts and Traditional Affairs sponsored the libraries for the celebration of Youth Month. The event was held at Barolong Boo- Ratshidi Tribal hall where various schools attended. The youth were addressed by presenters from the Department of Social Services, Department of Health, the National Youth Development Agency and a Motivational Speaker motivated the youth to dream big. The event had 280 attendees.

T 3.12.7

3.13 CEMETORIES AND CREMATORIUMS

INTRODUCTION TO CEMETORIES & CREMATORIUMS

Cemetry means a land within the area of jurisdiction of Mahikeng Local Municipality which Council has said aside as Cemetry.

The Mahikeng Cemetry contains certain specific section dedication for the use of particular minory ethnic groups.

The top 3 service priorities is:

1. The burial of ashes, indigents and unclaimed bodies;

2. Recording of burials;3. Assisting with exumation and claiming of graves and ablusion blocks.

T 3.13.1

SERVICE STATISTICS FOR CEMETORIES & CREMATORIUMS

Burials done for 2014/15 Number of cemeteries 5

T 3.13.2

117

Cemeteries and Crematoriums Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18


Indicators

*Previous Year

*Previous Year

*CurrentYear

*CurrentYear

*CurrentYear

*FollowingYear


Service Objective: Provide public amenities for various communities

Number of Cemeteries regularly Maintained

5 Cemeteries were regularly maintained by 30 June 2016

5 Cemeteries were regularly maintained per quarter

Achieved



5 Cemeteries were regularly maintained by 30 June 2016

Achieved

5 Cemeteries were regularly maintained

None None None

T 3.13.3

118

Employees: Cemeteries and Crematoriums

Job Level

2014/15 2015/16` Employees Posts Employees Vacancies




0 - 3 - - - - -

4 - 6 - - - - -

7 - 9 - - - - - 10 - 12 1 1 1 0 0% 13 - 15 10 10 10 0 0%

16 - 18 - - - - -

19 - 20 - - - - - Total 11 11 11 0 0%

3.13.4

COMMENT ON THE PERFORMANCE OF CEMETORIES & CREMATORIUMS OVERALL:

The Municipality was giving support to communities that are living in poverty. According to the Health Act, Act 63 of 1977 the local authority takes the responsibility for the removal and burial of the body of a destitute person or any dead body unclaimed or which no competent person undertake to bury and thus bury. The objective of the Mahikeng Local Municipality is to assist in the indigent families in the burial of the deceased.

. T 3.13.7

119

3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES

INTRODUCTION TO CHILD CARE; AGED CARE; SOCIAL PROGRAMMES

The Municipality did not have objectives set to support initiatives in respect of childcare, aged care and social programmes

T 3.14.1

120

COMPONENT E: ENVIRONMENTAL PROTECTION

This component includes: pollution control; biodiversity and landscape; and costal protection.

INTRODUCTION TO ENVIRONMENTAL PROTECTION

The Municipality did not have objectives set on environmental protection T 3.14

3.15 POLLUTION CONTROL

INTRODUCTION TO POLLUTION CONTROL

The Municipality did not have objectives set on pollution control T 3.15.1

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

INTRODUCTION BIO-DIVERSITY AND LANDSCAPE

The Municipality did not have objectives set on bio-diversity and landscape T 3.16.1

121

COMPONENT F: HEALTH

This component includes: clinics; ambulance services; and health inspections.

INTRODUCTION TO HEALTH

The Municipality did not have objectives set to support health initiatives

T 3.17

3.17 CLINICS

INTRODUCTION TO CLINICS

The Municipality did not have objectives set to support clinics. T 3.17.1

3.18 AMBULANCE SERVICES

INTRODUCTION TO AMBULANCE SERVICES

The Municipality did not have objectives set to support ambulance services. T 3.18.1

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

INTRODUCTION TO HEALTH INSPECTIONS; FOOD AND ABATTOIR LICENCING AND INSPECTIONS, ETC

The Municipality did not have objectives set on health inspections, food and abattoir licencing inspections

T 3.19.1

122

COMPONENT G: SECURITY AND SAFETY

This component includes: police; fire; disaster management, licensing and control of animals, and control of public nuisances, etc.

INTRODUCTION TO SECURITY & SAFETY

The directorate of the Public Safety render a sustainable and effective service to the public. The Department consists of four units Law Enforcement, Fire, Rescue & Disaster Management, Testing &Licensing as well as Security & Fleet Management

T 3.20

3.20 LAW ENFORCEMENT

INTRODUCTION TO LAW ENFORCEMENT

Despite the shortage of personnel in the Law Enforcement unit; all efforts were made to ensure road safety and orderly traffic flow. Law Enforcement activities were conducted and the 3 main priorities of the service were: - To conduct regular roadblocks in order to promote road safety, visibility and to trace

outstanding payments.- Focus was also placed on training of scholar patrollers and educators in order to teach

them on the aspects of safe road usage.- Speed enforcements were also increased as there was an obvious need to inculcate the

spirit of voluntary compliance by motorists to set speed limits and traffic regulations ingeneral.

T 3.20.1

123

Law Enforcement Details 2014/15 2015/16 2016/17

Actual No.

Estimate No.

Actual No.

Estimate No.

1Number of road traffic accidentsduring the year 1948 0 1984 0

2Number of by-law infringementsattended 0 0 0 0

3Number of police officers in the fieldon an average day 16 32 19 29

4Number of police officers on duty onan average day 26 43 23 33

T 3.20.2

124

Law Enforcement Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17

2017/18


Service Indicators

*Previous Year *Previous

Year*Current

Year

*Current

Year

*Current

Year

*Following Year


Service Objective: Provide efficient and effective law enforcement and Services

Number ofroad blocksconducted

32 Roadblocksconducted by30 June 2016


Achieved

14 Roving& 18 Staticroad blocksconductedby 30 June2015



NotAchieved

27 Roadblocksconducted

None None None

Number ofschools wherescholar patrolactivities havebeenconducted

10 schoolswhere scholarpatrolactivities havebeenconducted by31 March2016

12 schoolswhere scholarpatrolactivities havebeenconducted byJune 2014

NotAchieved

There were9 schoolswherescholarpatrolactivitieswere

12 schoolswhere scholarpatrolactivities havebeenconducted byJune 2014

10 schoolswhere scholarpatrolactivities havebeenconducted by31 March2016

Achieved

10 schoolswhere scholarpatrolactivities havebeenconducted

None None None

125

conducted

Number of speed enforcement conducted

200 speed enforcement conducted by 30 June 2016


Not Achieved

151 speed enforcements were conducted



Not Achieved

83 speed enforcement conducted b

None None None

% of the identified damaged road signs repaired/replaced

100 % identified damaged road signs repaired/replaced by 30 June 2016

Damaged road signs repaired/replaced timeously within 7 days after reporting them

Achieved

The damaged road signs were repaired and replaced timeously within 7 days after reporting them

Damaged road signs repaired/replaced timeously within 7 days after reporting them

100 % identified damaged road signs repaired/replaced by 30 June 2016

Achieved

100 % identified damaged road signs repaired/replaced

None None None

Number of inspections conducted at the Municipal Pound

24 inspections conducted at the Municipal Pound by 30 June 2016


Target exceeded

43 inspections were conducted



Target exceeded

50 inspections conducted at the Municipal

None None None

126

at the Municipal Pound

Pound

% of identified faded road markings painted

100% identified faded road markings painted by 30 June 2016

None None None 100% identified faded road markings painted by 30 June 2016

Achieved

100% identified faded road markings painted

None None None

% of Establishment of By-Law enforcement Unit

100% Establishment of By-Law enforcement Unit by 30 June 2016

100% Establishment of By-Law enforcement Unit (Pilot Phase) by 30 June 2015

Achieved

100% Establishment of By-Law enforcement Unit (Pilot Phase)

100% Establishment of By-Law enforcement Unit (Pilot Phase) by 30 June 2015

100% Establishment of By-Law enforcement Unit by 30 June 2016

Not Achieved

No Establishment of By-Law enforcement Unit

None None None

T 3.20.3

127

Employees: Traffic Officers Job Level 2014/15 2015/16 Police – Traffic Law enforcement

Employees

Posts

Employees

Vacancies (fulltime

equivalents)

Vacancies (as a % of total posts)

Administrators No. No. No. No. % 0 - 3 2 2 2 0 0% 4 - 6 1 3 3 0 0% 7 - 9 8 5 5 0 0%

10 - 12 9 17 16 1 6% 13 - 15 4 5 0 5 100% Total 24 32 26 6 19%

T 3.20.4

COMMENT ON THE PERFORMANCE OF POLICE OVERALL:

ACHIEVEMENTS

Overtime threshold of Assistant Superintendent was waived.

Car allowance of Traffic Officers has been adjusted.

CHALLENGES

By-Laws enforcement unit not yet appointed and vacant position of traffic wardens (Traffic wardens play an integral part in Law Enforcement, especially on parking and stopping offences in the C.B.D)

Car allowance of Traffic Officers

Working tools i.e. blue lights, Decals and sirens

Position of Data Capture has been vacant since 2013. The incumbent captures accidents reports and summonses.

T 3.20.7

128

3.21 FIRE BRIGADE SERVICES

INTRODUCTION TO FIRE BRIGADE SERVICES

The Fire Service of the Municipality is currently understaffed. Much reliance is placed on theassistance by other authorities during fire emergency situations. The Fire Service wasassisted by the Provincial Government to purchase some much needed vehicles.

The following were some of the set priorities for the Fire Service:- The service increased the fire safety compliance inspections in order to ensure that most

businesses and other Institutions complied with the Legislature prescripts.- Fire hydrants were regularly inspected and more fire safety awareness programmes were

conducted.Additional vehicles were purchased in order to increase the service standard of the fireservice..

T 3.21.1

Fire Brigade Service Data Details 2014/15 2015/16 2016/17

Actual No.

Estimate No.

Actual No.

Estimate No.

1 Total fires attended in the year 233 117 279 2002 Total of other incidents attended

in the year 91 46 32 203 Average turnout time - urban

areas 8min 8min 8min 8min4 Average turnout time - rural areas 13min 13min 15min 15min5 Fire fighters in post at year end 16 84 17 176 Total fire appliances at year end 13 14 13 147 Average number of appliance off

the road during the year 6 3 4 4T 3.21.2

129

Fire Brigade Service Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Service Objective: Provide Fire and Disaster Management services

Number ofFire Safetycomplianceinspectionsconducted

240 FireSafetycomplianceinspectionsconducted by30 June2016


Targetexceeded

251 FireSafetycomplianceinspectionswereconducted



NotAchieved

238 FireSafetycomplianceinspectionsconducted

None None None

Number ofFire SafetyAwarenessprogramsconducted

40 FireSafetyAwarenessprogramsconducted by30 June2016


Targetexceeded

67 FireSafetyAwarenessprogramswereconducted



TargetExceeded

71 FireSafetyAwarenessprogramsconducted

None None None

130

Number offire hydrantsinspected

300 firehydrantsinspected by30 June2016

Fire hydrantsinspectedper requestby 30 June2015

Achieved

377 firehydrantswereinspectedper requestby 30 June2015

Fire hydrantsinspectedper requestby 30 June2015

300 firehydrantsinspected by30 June2016

TargetExceeded

332 Firehydrantsinspected

None None None

T 3.21.3

131

Employees: Fire Brigade Services Job Level 2014/15 2015/16 Fire Fighters Employees Posts Employees Vacancies



posts) Administrators No. No. No. No. %

0 - 3 2 2 2 0 0%4 - 6 7 9 9 0 0%7 - 9 3 3 3 0 0%

10 - 12 17 19 17 2 11%Total 29 33 31 2 12%

T 3.21.4

COMMENT ON THE PERFORMANCE OF FIRE SERVICES OVERALL:

ACHIEVEMENTS

Major fire fighting vehicle was purchasedChief Fire Officer and Divisional Officer: Fire Prevention were appointedService Level Agreement was signed with the Department of Rural Development to assisttheir eight (8) beneficiaries with experiential exposure in firefighting.

CHALLENGES

Shortage of staffLack of training of fire personnel in line with their field of expertiseLack of routine maintenance of Municipal buildings, this is due to centralization ofmaintenance.Tools of trade i.e. Computers, Printers and Cameras

REMEDIALS TO BE TAKEN

To appoint more staff;To allocate sufficient funds to train all fire personnel; andTo request directorates be allocated funds for maintenance and not centralized.

T 3.21.7

132

3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL OF PUBLIC NUISANCES AND OTHER)

INTRODUCTION TO DISASTER MANAGEMENTA, SECURITY AND FLEETMANAGEMENT

The Disaster Management Service is provided as one of the functions under the Fire, Rescueand Disaster Management unit. The Disaster Management section is currently functioningwith only one staff member who is responsible to service all 31 wards of the Municipality.

The Disaster Management service did not make any significant impact in the community dueto shortage of staff and resources. The following key priority issues were achieved:

- Disaster Community awareness programme was conducted and communities that areliving in poverty were the beneficiaries.

The Municipality also acquired fire and disaster management equipment through the“Business Adopt a Municipality Programme (BAAM)” and these resources are used to benefitthe community in terms of service delivery.

The Security section ensures access control security; safe work environment andimplementation of miss documents with regards to internal security policy

The Fleet Section ensure that all drivers comply with fleet management policy with regards torendering basic services to the community.

T 3.22.1

133

Disaster Management, Security and Fleet Management Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Service Objective: Provide safety and security

% Installationof Accesscontrolsystem andCCTVcamera atMunicipalFire stationand Traffic &Licensingpremises

100%Installation ofAccesscontrolsystem andCCTVcamera atMunicipalFire stationand Traffic &Licensingpremises by31 December2015

None None None 100%Installation ofAccesscontrolsystem andCCTVcamera atMunicipalFire stationand Traffic &Licensingpremises by31 December2015

NotAchieved

NoInstallationof Accesscontrolsystem andCCTVcamera atMunicipalFire stationand Traffic &Licensingpremises

None None None

134

Number ofSecurity risksand threatsauditconducted

2 Securityrisk andthreats auditconducted by30 June2016

1 Securityrisk andthreatsassessmentconductedby 30 June2015

NotAchieved

The securityrisk andthreatassessmentwere notconducted

1 Securityrisk andthreatsassessmentconductedby 30 June2015

2 Securityrisk andthreats auditconducted by30 June2016

Achieved

2 Securityrisk andthreats auditconducted

None None None

T 3.22.3

135

Employees: Disaster Management, Security and Fleet Management.

Job Level



Vacancies (as a % of total posts)

No. No. No. No. %

0 - 3 2 3 2 1 33%

4 - 6 1 1 1 0 0%

7 - 9 1 1 1 0 0%

10 - 12 - - - - -

13 - 15 19 19 19 0 0%

16 - 18 - - - - 0%

19 - 20 - - - - 0%

Total 23 24 23 1 33%T 3.22.4

COMMENT ON THE PERFORMANCE OF DISASTER MANAGEMENT, SECURITY ANDFLEET MANAGEMENT OVERALL:

Disaster Management: Challenges Shortage of resources i.e. blankets, mattressesTools of trade i.e. Computers, Printers and Cameras

Security Section: Achievements Threats and Risks Assessment report submitted by State Security AgencyVetting workshop held for senior officialsDraft Review of Internal Security Policy was donePalisade fence partially installed12x CCTV cameras installed at Head Office as phase one of the projectMonthly meetings held with Physical Security Service ProviderReduced cases of Security breaches with financial implications reportedSecurity Committee meetings held regularly

Challenges

136

None submission of Z204 forms by officialsDelay in appointing Head Security & Fleet Management

Fleet Management: Achievement Grouped most of the light motor vehicle to renew their licenses at onceHad monthly meetings with the Service ProviderManaged to compile a Draft Fleet Management Policy which was submitted to Public SafetyPortfolio Committee MeetingMaintained better control of fleet at traffic Premises.Submitted monthly reports to DirectoratesRegular inspection of Fleet were done and feedback given

Fleet Management: Challenges Fleet Management policy not yet approved by Council though it was presented to councilDelay in payments of vehicle licenseHeavy duty trucks driven without Prdp licenseLog books not completed properly and not submitted in timeNo appointments on Fleet officeOnly one person responsible for daily activities of FleetNo central parking of Fleet for purpose of controlUsing old and outdated computer systemsNo copy of lease agreement to facilitate the repair & maintenanceNo access to tracking monitoring systemDelay in renewal of heavy duty trucks due to repairsNo control over multiple drivers especially refuses removal trucks.

137

COMPONENT H: SPORT AND RECREATION

This component includes: community parks; sports fields; sports halls; stadiums; swimmingpools; and camp sites.

INTRODUCTION TO SPORT AND RECREATION

Mahikeng Local Municipality acknowledges that sports and recreation touches virtually everyaspect of nation ethos.

Our priorities are to provide clean and safe environmental Sports field, stadiums and beautifulparks.

The major challenge is Lack of proper facilities and Absence of skilled personnel such asumpires; technical officials and professional coaches mostly in rural areas.

T 3.23

3.23 SPORT AND RECREATION

SERVICE STATISTICS FOR SPORT AND RECREATIONTarget Achieved

Number Sport filed maintained 20 11Number of bookings in Parks 48 29Number of bookings Stadiums 48 11

T 3.23.1

138

Sport and Recreation Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current Year *Following Year


Service Objective: Provide a Safe and healthy environment to communities

Number ofsportingfieldmaintained

20 sportingfieldmaintainedby 30 June2016


Achieved

88 sportingfields weremaintained



NotAchieved

11 sportingfields weremaintained

None None None

Number ofparksbooked

48 Parksbooked percustomerrequest by30 June2016

Parksbooked percustomerrequest by30 June2015

Achieved

23 parkbookingswererequesterbycustomers

Parksbooked percustomerrequest by30 June2015

48 Parksbooked percustomerrequest by30 June2016

NotAchieved

29 parkswerebooked percustomerrequest

None None None

139

Number ofstadiumsbooked

48Stadiumsbooked percustomerrequest by30 June2016

Stadiumsbooked percustomerrequest by30 June2015

Achieved

10stadiumsbookingwererequesterbycustomers

Stadiumsbooked percustomerrequest by30 June2015

48Stadiumsbooked percustomerrequest by30 June2016

NotAchieved

11stadiumsbookingwererequesterbycustomers

None None None

T 3.23.2

140

Employees: Sport & Recreation

Job Level

2014/15 2015/16

Employees Posts Employees Vacancies (fulltime

equivalents)



0 - 3 1 1 1 0 0%4 - 6 2 2 2 0 0%7 - 9 3 4 2 2 25%

10 - 12 13 18 10 8 26%13 - 15 41 80 46 34 43%

16 - 18 - - - - -

19 - 20 - - - - -Total 71 105 61 45 39%

T 3.13.4

COMMENT ON THE PERFORMANCE OF SPORT AND RECREATION OVERALL:

Top 3 service delivery priorities:

a. To contribute towards rural development, healthy life style and social cohesion.b. Continue regular maintenance of the rural sport fields by mowing and cutting tall grasses tomake the pitch playable.c. To ensure that a solid foundation is laid for development and recreational facilities.

Measures taken to improve performance:

- To carry out assessments on facilities;- To conduct Inter departmental and directorates meeting;

T 3.23.6

141

COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES

This component includes: corporate policy offices, financial services, human resourceservices, ICT services, property services.

3.24 EXECUTIVE AND COUNCIL

This component includes: Executive office (mayor; councilors; and municipal manager).

INTRODUCTION TO EXECUTIVE AND COUNCIL

During the financial year under review the Council consisted of 62 councillors; made up of 32ward councillors and 30 proportional councillors. Political decisions were taken in a form ofcouncil resolution.

T 3.24.1

SERVICE STATISTICS FOR THE EXECUTIVE AND COUNCIL

2 IDP/Budget Steering Committee meetings held1 training program was attendant by councilors1 Imbizo was held

T 3.69.2

142

The Executive and Council Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18



Year*Previous

Year*Current

Year*Current

Year*Current

Year*Following


Service Objective: To Provide democratic and accountable government for local communities

Number ofIDP/BudgetSteeringCommitteemeetingsheld

4IDP/BudgetSteeringCommitteemeetingsheld by 30June 2016

4 IDP/BudgetSteeringCommitteemeetingscoordinatedheld by 30June 2015

Achieved

4IDP/BudgetSteeringCommitteemeetingswere held

4 IDP/BudgetSteeringCommitteemeetingscoordinatedheld by 30June 2015

4IDP/BudgetSteeringCommitteemeetingsheld by 30June 2016

NotAchieved

2IDP/BudgetSteeringCommitteemeetingswere held

None None None

Number ofIDP RepForummeetingsheld

4 IDP RepForummeetingsheld by 30June 2016


NotAchieved

The IDPRep Forummeetingswere notheld



NotAchieved

1 IDP RepForummeetingheld

None None None

143

Number ofImbizos held

2 Imbizosheld by 30June 2016

2 Imbizosheld by 31December2014 and 30June 2015

NotAchieved

1 Imbizowas held by30 June2015

2 Imbizosheld by 31December2014 and 30June 2015

2 Imbizosheld by 30June 2016

NotAchieved

1 Imbizowas held by30 June2016

None None None

T 3.24.3

144

Employees: The Executive and Council

Job Level





0 - 3 64 64 64 0 0%4 - 6 4 5 3 2 40%7 - 9 24 30 24 6 20%

10 - 12 - - - - -

13 - 15 - - - - -

16 - 18 - - - - -

19 - 20 - - - - -Total 92 99 91 8 8%

T 3.24.4

COMMENT ON THE PERFORMANCE OF THE EXECUTIVE AND COUNCIL:

The challenges occurred during the year are such as municipality executive members beenexpelled from their duties and the municipality not having the Risk management unit, internalaudit and audit committee. The municipality is working to appoint Risk management unit,internal audit and audit committee in the next financial year. The IDP and Annual reportsubmission will be on time as per required MFMA and MSA legislation.

T 3.24.7

145

3.25 FINANCIAL SERVICES

INTRODUCTION FINANCIAL SERVICES

Section 71 and 72 of the MFMA compels the Accounting Officer of a municipality to assessand table the municipal budget performance on a monthly basis and during the mid-yearassessment respectively. There is an urgent need to focus on the governance, decisionmaking and financial management to deal with budgeting, tariff setting, revenue collection,customer services, operations and maintenance of infrastructure asset management. Therelationship between financial management and financial viability remain a challenging factorand the focus on the next financial year will be on maintaining a balance between financialmanagement and viability. The focus on financial viability will be on revenue enhancementincluding debt management

The Finance unit is broadly comprised of Revenue section, Expenditure section, Budgetsection Salaries section, and Data Processing and Supply Chain Management section,leaded by the Chief Financial Officer.

The highest most priority was to provide sound financial viability and sustainability.

- The Annual Financial Statement was timeously submitted to the Office of the AuditorGeneral of South Africa.- 4 Section 52 (Quarterly) Reports submitted to Council

The challenge faced was that the Revenue Enhancement strategy was not developed andthe unit could not measure revenue growth.

T 3.25.1

146

Financial Service Policy Objectives Taken From IDP Service Objectives Outline Service

Targets 2014/15 2015/16 2016/

17 2017/18


Service Indicators

*Previous Year *Previous

Year*Current

Year

*Current

Year

*Current

Year

*Following

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

Service Objective: Promote accountability & transparency

Timeous Submissions ofAnnual FinancialStatement to Office of theAuditor General

TimeousSubmissions ofAnnual FinancialStatement to Officeof the AuditorGeneral by 31August 2015

TimeousSubmissions ofAnnual FinancialStatement toOffice of theAuditor Generalby 31 August2014

Achieved

AnnualFinancialStatementweretimeouslysubmittedto theOffice ofthe AuditorGeneral by31 August2014

TimeousSubmissionsofAnnualFinancialStatement toOfficeof theAuditorGeneral by31August2014

TimeousSubmissions ofAnnualFinancialStatementto Officeof theAuditorGeneralby 31August2015

Achieved

AnnualFinancialStatementsubmitted toOffice oftheAuditorGeneralby 31August2015

None None None

147

2016/2017 Budget approved by Council

2016/2017 Budget approved by Council by 31 May 2016

2015/2016 Budget

Approval by Council by 31 May 2015

Achieved

2015/2016 Budget was

approved by Council by 31 May 2015

2015/2016 Budget

Approval by Council by 31 May 2015


Not Achieved

2016/2017 Budget was not approved by Council on 31 May 2016

None None None

2016/2017 Budget Policies and Tariffs Approved by Council

2016/2017 Budget Policies and Tariffs Approved by Council by 31 May 2016


Achieved

2015/2016 Budget Policies and Tariffs approved by Council by

31 May 2015

2015/2016 Budget Policies and Tariffs Approved by Council by

31 May 2015


Not Achieved

2016/2017 Budget Policies and Tariffs not Approved by Council on 31 May 2016

None None None

2015/2016 Adjustment Budget approved by Council

2015/2016 Adjustment Budget approved by

2014/2015 Adjustment Budget

Achieved

2014/2015

2014/2015 Adjust

2015/2016 Adjustme

Not Achieved

None None None

148

Council by 31 January 2016

approved by Council

by 31 January 2015

Adjustment Budget approved by Council by 31 January 2015

ment Budget approved by Council by 31 January 2015

nt Budget approved by Council by 31 January 2016

2015/2016 Adjustment Budget not approved by Council on 31 January 2016

Number of Section 71 Reports submitted to the Mayor and Provincial treasury within 10 working days after the end of the month (Income and expenditure reports)

12 Section 71 Reports submitted to the Mayor and Provincial treasury within 10 working days after the end of the month (Income and expenditure reports) by 30 June 2016

12 Section 71 Reports submitted to the Mayor and Provincial treasury within 10 working days after the end of the month (Income and expenditure reports)

Achieved

12 Section 71 Reports submitted to the Mayor and Provincial treasury within 10 working days after the end of the month (Income and expenditure reports)

12 Section 71 Reports submitted to the Mayor and Provincial treasury within 10 working days after the end of

12 Section 71 Reports submitted to the Mayor and Provincial treasury within 10 working days after the end of the month (Income and expenditure reports) by 30 June 2016

Achieved

12 Section 71 Reports submitted to the Mayor and Provincial treasury within 10 working days after the end of the month

None None None

149

the month (Income and expenditure reports)

T 3.25.3

150

Employees: Financial Services

Job Level





0 - 3 4 4 4 0 0% 4 - 6 8 8 8 0 0% 7 - 9 59 65 59 6 9%

10 - 12 - - - - -

13 - 15 - - - - -

16 - 18 - - - - -

19 - 20 - - - - - Total 71 77 71 6 8%

T 3.25.4

COMMENT ON THE PERFORMANCE OF FINANCIAL SERVICES OVERALL:

The municipal revenue collection improved to 76% during the year, even though the municipality did not develop the Revenue Enhancement strategy by 30 September 2015 the unit drafted and presented the Revenue Enhancement Strategy by June 2016.

T 3.25.7

151

3.26 HUMAN RESOURCE SERVICES

INTRODUCTION TO HUMAN RESOURCE SERVICES

Human Resource Services is a support service within the municipality and it focuses on the following functional areas: Staff Acquisition (Recruitment, Selection, and appointment); Benefits Administration (Leave, Medical Aid, and Pension Funds); Staff Training and Skills Development; Employee Wellness; Labour/Employee Relations; as well as Occupational Health and Safety.

T 3.26.1

SERVICE STATISTICS FOR HUMAN RESOURCE SERVICES

2015/16 Workplace Skills Plan was 100% implemented

T 3.26.2

152

Human Resource Services Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17

2017/18


Indicators

*PreviousYear

*PreviousYear

*CurrentYear

*Current Year

*Current Year

*Following Year


Service Objective: Implementation of sound human resources development

Timeous submission of the HRMD Draft Strategy to Council for approval

Timeous submission of the HRMD Draft Strategy to Council for approval by 31 December 2015


Not Achieved

No submission of the HRMD Draft Strategy to Council for approval



Not Achieved

No submission of the HRMD Draft Strategy to Council for approval

None None None

Number of HR policies Developed and approved by Council

10 HR policies developed and approved by Council by 30 June


Not Achieved

No HR policies were developed and approved by



Not Achieved

No HR policies were developed and approved by

None None None

153

2016 2015 Council 2015 2016 Council

Timeous submission of the Organizational Structure for, review adoption and implementation by Council

Timeous submission of the Organizational Structure for, review adoption and implementation by Council by 31 December 2015


Achieved

Timeous submission of the Organizational Structure for review, adoption and implementation by Council by February 2015



Not Achieved

Organizational Structure not submitted to Council

None None None

% completion of Job evaluation of filled positions

100% completion of Job evaluation of filled positions by 30 June 2016

None None None 100% completion of Job evaluation of filled positions by 30 June 2016

Not Achieved None None None

Timeous submission of the reviewed Employment

Timeous submission of the reviewed Employment Equity by 31


Not Achieved

The reviewed Employment Equity was



Achieved

Reviewed Employment Equity submitted by

None None None

No completion ofJobevaluation offilledpositions

154

Equity Plan January 2016

December 2014

submitted on 12 January 2015 and not on the initial planned date (31 December 2014)

December 2014

January 2016

27 January 2016

Established and Functional

Employment Equity Forum

Established and Functional Employment Equity Forum by 31 August 2015


Not Achieved

Employment Equity Forum was not established and therefore not functional



Not Achieved

No established and Functional Employment Equity Forum

None None None

% Implementation of 2015/16 Workplace Skills Plan

100% Implementation of 2015/16 Workplace Skills Plan by 30 June 2016


Achieved




Achieved


None None None

155

2016/17 Workplace Skills Plan Developed and Submitted to LGSETA

2016/17 Workplace Skills Plan Developed and Submitted to LGSETA by 30 April 2016


Achieved




Achieved

2016/17 Workplace Skills Plan Developed and Submitted to LGSETA on 29 April 2016

None None None

% Vacant and critical positions filled within 3 months of the posts being vacant

100% Vacant and critical positions filled within 3 months of the posts being vacant


Achieved

100% Vacant and critical positions were filled within 3 months of the posts being vacant



Not Achieved

No vacant and critical positions were filled within 3 months of the posts being vacant.

None None None

Number of Labor cases received and resolved

4 Report on Labor cases received and resolved by 30 June 2016

4 Report on Labour cases received and resolved by 30 June 2015

Not Achieved

There were no reports on labour cases received

4 Report on Labour cases received and resolved by 30 June 2015

4 Report on Labor cases received and resolved by 30 June 2016

Not Achieved

1 labor case has been received and resolved

None None None

156

% Developed Employee Health & Wellness plan

100% Developed Employee Health & Wellness plan by 30 June 2016


Not Achieved

Employee Health & Wellness plan was not developed



Not Achieved

Employee Health & Wellness plan was not developed

None None None

Number of Local Labour forums meetings held

4 Local Labour Forums meetings held by 30 June 2016


Not achieved

Only 2 Local labour Forums meetings were held by 30 June 2015



Achieved

4 Local Labor Forums meetings held

None None None

Number of Reports compiled on compliance with Occupational Health and Safety

4 Reports compiled on compliance with Occupational Health and Safety by 30 June 2016


Not Achieved

1 report was compiled with occupational health and safety



Not Achieved

1 report was compiled with occupational health and safety

None None None

Number of appointed t

Appointment of safety


Not Achieved Appointment of safety


Achieved None None None

157

of safetyrepresentative and safetycommittee

representative and safetycommittee by30 June2016


NoAppointmentof safetyrepresentative and safetycommittee by30 June2015



Appointedsafetyrepresentative and safetycommittee

T 3.25.3

158

Employees: Human Resource Services

Job Level





0 - 3 1 3 0 3 100%4 - 6 9 9 2 7 78%7 - 9 16 20 16 4 20%

10 - 12 - - - - -

13 - 15 - - - - -16 - 18 44 50 44 6 12%

19 - 20 - - - - -Total 70 82 62 20 24%

T3.26.4

COMMENT ON THE PERFORMANCE OF HUMAN RESOURCE SERVICES OVERALL:

The Human resource unit had many challenges as a result there was minimal performanceachieved for the 2015/16 financial year.

The challenges were as follows:- Limited budget on the training schedules- Moratorium to appoint staff to fill the critical positions

T 3.26.7

159

3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES

This component includes: Information and Communication Technology (ICT) services.

INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES

The municipality does not have the Information and Communication Technology (ICT) services section.

The Municipality instead it has a Data section which deals with Data processing and updating of data into the system. The data section is the sub-unit of finance unit.

It also has Communication Section, where they deal with revamping of the website and updating documents for publishing.

The municipality is in use of Venus and MUNSOFT financial systems T 3.27.1

160

ICT Services Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17

2017/18


Indicators

*Previous Year

*Previous Year

*CurrentYear

*Current Year

*Current Year

*Following Year


To ensure

effective and

efficient Communication and Technology

100% Revamping the municipal website 30 September 2015

100% Revamping and continuous updating of the municipal website within 24hrs of receiving content

Achieved

The municipal website was 100% revamped and continuously updated within 24hrs of receiving content

100% Revamping and continuous updating of the municipal website within 24hrs of receiving content

100% Revamping the municipal website 30 September 2015

Not Achieved

Revamping the municipal website

None None None

% of Revamping the municipal website

Number of reports on the municipal website updates

12 reports on the municipal website updates by 30 June 2016

None None None 12 reports on the municipal website updates by 30 June 2016

Not Achieved

There were no reports compiled on the website

None None None

161

updates

Communication Policy and strategy developed and implemented

Communication Policy and strategy developed and implemented by 31 August 2015

Developed and Implemented Communication Policy and strategy by 31 August 2014

Not Achieved

Communication policy and strategy was not developed and as a result not implemented

Developed and Implemented Communication Policy and strategy by 31 August 2014

Communication Policy and strategy developed and implemented by 31 August 2015

Not Achieved

Communication policy and strategy was not developed and as a result not implemented

None None None

Promote accountability & transparency

100% Utilization of the system by staff and management daily


Achieved

100% Utilization of the financial management system by staff and management daily



Achieved


None None None

% Utilization of the system by staff and management daily

162

% Monitoring of the back up

100% monitoring of the backup monthly

None None None 100% monitoring of the backup monthly

Achieved

100% monitoring of the backup

None None None

% monitoring the functionality of document management system

100% monitoring the functionality of document management system by 30 June 2016

100% Monitoring the functional of Document management system by 30 September 2014

Not Achieved

No developed of Recovery plan for the IT section by 30 September 2014

100% Monitoring the functional of Document management system by 30 September 2014

100% monitoring the functionality of document management system by 30 June 2016

Achieved

100% monitoring the functionality of document management system

None None None

T 3.27.3

163

Employees: Data and Communication Section

Job Level





0 - 3 2 2 2 0 0%

4 - 6 - - - - - 7 - 9 3 3 3 0 0% 10 - 12 - - - - -

13 - 15 - - - - -

16 - 18 - - - - -

19 - 20 - - - - -

Total 3 3 3 0 0% T3.27.4

COMMENT ON THE PERFORMANCE OF ICT SERVICES OVERALL:

The challenge that is faced by the Municipality is that it does not have the ICT unit. T3.27.7

164

3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES

This component includes: property; legal; risk management and procurement services.

INTRODUCTION TO PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES

The Legal services unit is integrated in office of the Municipal Manager and its function areas are drafting of by-laws; providing legal advice and opinion; and handle all litigations matters for and against council.

Procurement services are done by each directorate, the municipality still in development processes to centralise the Procurement services unit

T3.28.1

SERVICE STATISTICS FOR PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES

Eight (07) By-laws published List of bidding awards during the year

T 3.28.2

165

Property; Legal; Risk Management; and Procurement Services Policy Objectives Taken From IDP Service Objectives


2014/15 2015/16 2016/17 2017/18

Target Actual Target Actual Target Service Indicators

*Previous Year

*Previous Year

*CurrentYear

*Current Year

*Current Year

*Following Year


To ensure effective Sound Administrative and

Legal Support Services

100% legal opinions issued within a reasonable time ( All requests attended within a minimum of 2 days and 7 days maximum) by 30 June 2016


Achieved

100% Turnaround time on legal opinions issued within a reasonable time ( All requests attended with in a minimum of 2 days and 7 days maximum) by 30 June 2015



Achieved

100% Turnaround time on legal opinions issued within a reasonable time ( All requests attended with in a minimum of 2 days and 7 days maximum) by 30 June 2016

None None None

% legal opinions issued within a reasonable time ( All requests attended within a minimum of 2 days and 7 days maximum)

166

Number of By-laws promulgated (published)

12 By-laws promulgated (published) by 30 June 2016


Not Achieved

08 By-laws were promulgated (published) by 30 June 2015



Not Achieved

07 By-laws were not promulgated (published) by 30 June 2016

None None None

Promote accountability & transparency

4 reports on Centralization of Supply Chain Management Section by 30 June 2016

100% Centralization of Supply Chain Management Section by 30 June 2015

Not Achieved

No Centralization of Supply Chain Management Section by 30 June 2015

100% Centralization of Supply Chain Management Section by 30 June 2015


Not Achieved

No Centralization of Supply Chain Management Section

None None None

Number of reports on Centralization of Supply Chain Management Section

T 3.28.3

167

Employees: Property; Legal and Procurement Services

Job Level





0 - 3 1 2 1 1 50% 4 - 6 1 1 1 0 0%

7 - 9 - - - - -

10 - 12 - - - - -

13 - 15 - - - - -

16 - 18 - - - - -

19 - 20 - - - - - Total 2 3 2 1 33%

T 3.28.4

COMMENT ON THE PERFORMANCE OF PROPERTY SERVICES OVERALL:

The Supply chain management is not centralized, resulting in every Directorate performing their own procurement services.

The legal section‟s intention for the next financial year is to develop record keeping for all contracts worked on.

T 3.28.7

168

COMPONENT J: MISCELLANEOUS

This component includes: the provision of Airports, Abattoirs, Municipal Courts and Forestry as municipal enterprises.

INTRODUCTION TO MISCELLANEOUS

The Municipality is not responsible for the airport and it does not have abattoirs, municipal courts and forestry as well as municipal enterprises

T 3.29.0

169

COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD

This component includes: Annual Performance Scorecard Report for the current year.

KPA: BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT

No Strategic Objective

Measurable Objective

Key Performance Indicator

Baseline Annual Performance Target

Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual Actual Performance

Reason for under/over Performance

Remedial Action

Portfolio of

Evidence

Annexure

INFRASTRUCTRE

1 Provision of Water to Communities

To provide access to sustainable w ater to existing and new communities

Number of households provided w ith piped w ater on site (yard taps, tanks or house connections)

Households w ere provided w ith piped w ater on site (yard taps, tanks or house connections)

15 303 households provided w ith piped w ater on site (yard taps, tanks or house connections) by 30June 2016

R84 000 000

Financial and

Personnel Resources

Households w ith piped w ater on site (yard taps, tanks or house connections

Improved living

Standards

Target exceeded15 305households provided w ith piped w ater on site (yard taps, tanks or house connections)

Numberincreasedis due to new waterconnectionfor newbuildings.

To update the number of househol-ds withnew wate-r connecti-ons fornewbuildings

RCN EXTRACT Report(Residential)

A

170





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

2 To provide access to sustainable w ater to existing and new communities

Number of New w ater connections done per request by residents, business and commercial new site

12 New w ater connections

300 new w ater connection for residents, business and commercial new site by 30 June 2016

Opex Financial and

Personnel Resources

New w ater connections

Improved living

standards

Not Achieved

20 new w ater connections done per request by residents, business and commercial new site

New connections dependent on customer requests

To connect new connections as per customer requests

Water connections application forms

Updated Water register

Daily report

B


Number of w ater meters replaced per request by residents, business and commercial

231 meters replaced as per request

2550 w ater meters replaced per request by residents, business and commercial by 30 June 2016

R1 800 000

Financial and

Personnel Resources

Meters replaced

Improved service delivery

Not Achieved

168 w ater meters replaced per request by residents, business and commercial

Meters replacements dependent on customer requests and priority is given to pipe bursts & leaking

To replace meters as per customer requests

Replacement of w ater meter/s maintenance forms

Daily reports

C

171





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

meters


Number of zonal meters and valves installed

No zonal meters and valves w ere installed


R1 500 000

Financial and

Personnel Resources

Zonal meters and valves installed

Improved living

standards

Not Achieved

No Zonal meters and valves installed per request

There w as no request to install zonal meters and valves

To install zonal meters and valves on request

Memo D

5 Provision of free basic w ater to Communities

To ensure effective free basic w ater

Number of village/rural Wards provided w ith free basic w ater (Water tanks and boreholes)

New KPI 28 rural Wards provided w ith free basic w ater (Water tanks and boreholes)by 30 June 2016

R7 500 000

Financial

And Personnel Resources

Households Provided w ith free basic w ater

Improved living

Standards

Achieved

28 rural Wards provided w ith free basic w ater (Water tanks and boreholes)

N/A N/A List of w ater tanks

Monthly w ater tanks distributed

List of w ater

E

172





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

pump boreholes

6 To ensure effective free basic w ater

Number of boreholes and w indmills maintained

New KPI 170 boreholes and 290 w indmills maintained by 30 June 2016

Opex Financial and

Personnel Resources

Households Provided w ith free basic w ater

Improved living

Standards

Not Achieved

7 boreholes 0 w indmills maintained

Delay w as due to Truck breakdow n and insuff icient material

To ensure that the truck is available and to buy suff icient material for boreholes and w indmill maintenance in the next quarter

Daily reports

F

7 Provision of Sanita

To provide access

% of w ater and w astewater

New KPI 100% w ater and w astewater

Opex Financial and

Access to purif ied

Improved living

Achieved

100%

N/A N/A Laboratory Reports

G

173





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

tion to Communities

to sustainable w ater to existing and new communities

quality monitored in terms of Water Services Act 108 of 1997

quality monitored in terms of Water Services Act 108 of 1997 by 30 June 2016

Personnel Resources

w ater standards

w ater and w astewater quality monitored in terms of Water Services Act 108 of 1997 by 30 June 2016

8 To provide access to sanitation services to existing and new communities.

Number of Households provided w ith access to basic house sew er connections

Households w ere provided w ith access to basic house sew er connections

15303 Households provided w ith access to basic house sew er connections by 30 June 2016

Opex Financial and

Personnel Resources

Households provided w ith access to basic house sew er connections

Improved living

standards

Target Eexceeded15305Households provided w ith access to basic house sew er connections

Numberincreasedis due to new waterconnectionfor newbuildings.

RCN EXTRACT Report(Residential)

A

9 To provide access to

Number of Mega litres of w aste discharged

28.2 Mega litres of w aste discharged

10980 Mega litres of w aste discharged

Opex Financial and

Person

Mega litres of w aste discharg

Improved living

standar

Not Achieved

Mega litres

Poor Phosphate removal

Install the Chlorination

Laboratory Reports

H

To update the number of households with new water connections for new buildings

174





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

sanitation services to existing and new communities

provided that meets w aste discharge standard provided per day

provided that meets w aste discharge standards

provided that meets w aste discharge standards provided per day by 30 June 2016

nel Resources

ed provided that meets w aste discharge standards provided

ds of w aste discharged provided does not meets w aste discharge standards provided per day as required

detected on eff luents from both WWTW plants

system for regular Chlorine according to the general discharge standard.

10 Provision of Roads and storm w ater to Communities

To ensure provision of new roads and storm w ater infrastructure w hile upgrading existing infrastru


The new tar road w as not constructed

3.2 KMs of new tar road constructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede Exit by 31 March 2016

R12 000 000

Financial Funding,

Personnel and

Contractors Resources

Constructed KMs of new tar road

Useable road for the community

Not Achieved

3.2 KMs of new tar road notconstructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede

N/A N/A Practical Completion Certificate

I

175





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

cture. Exit

11 To ensure provision of new roads and storm w ater infrastructure w hile upgrading existing infrastructure.


1.2 KMs upgraded to tar at main road in Madibe Makgabane Phase 1

0.8 KMs gravel road upgraded to tar at main road in Madibe Makgabane Phase 1 by 31 December 2015

R2 000 000

Financial funding,

Personnel and


Upgraded main road

Useable Road for the community

Achieved

0.8 KMs gravel road upgraded to tar at main road in Madibe Makgabane Phase 1

N/A N/A Practical Completion

Certif icate

J


To ensure provision of new roads and storm w ater

KMs of Upgrading of internal roads and by-pass to Sebonego and Matsheka

1.1 Kms of internal roads and by-pass to Sebonego and Matsheka Road w ere

0.6 KMs of Upgrading of internal roads and by-pass to Sebonego and Matsheka Road by 31

R6 000 000

Financial funding,

Personnel and

Contra

Upgraded internal roads and by-pass to Sebonego and Matshek


Achieved

0.6 KMs of Upgrading of internal roads and by-pass to Sebonego and

N/A N/A Practical Completion Certif icate

K

176





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

infrastructure w hile upgrading existing infrastructure.

Road upgraded December 2015

ctors Resources

a Road Matsheka Road

13 To ensure provision of new roads and storm w ater infrastructure w hile upgrading existing infrastructure.


1.1 KMs of main road w as paved in Ext 39 Phase 2

0.5 KMs of main road paved in Ext 39 Phase 2 by 31 December 2015

R6 000 000

Financial Funding,

Personnel and


Paved main road


Achieved



L

14 To ensure

KMs of tar road

1.8 KMs of tar road

1.5 KMs of tar road

R12 00 Financial

Constructed tar

Useable Road

Not Delay is due to

The road to

Minutes of the site

M

177





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

provision of new roads and storm w ater infrastructure w hile upgrading existing infrastructure.

constructed from Mr-T to Sew eding

Phase 2

w as constructed from Mr-T to Sew eding Phase 2

constructed from Mr-T to Sew eding Phase 2 by 31 March 2016

0 000 Funding,

Personnel and


road for the community

Achieved

1.5 KMs of tar road not constructed from Mr-T to Sew eding Phase 2

the contractor still busy w ith SNAG listing

be completed after the contractor f inalizes SNAG listing.

meeting

15 Provision of Roads and storm w ater to communities

To ensure provision of new roads and storm w ater infrastructure w hile upgrading

Number of bridges constructed betw een Serotsw ana, Moraka and Masutlhe

1 Bridge w as constructed betw een Serotsw ana, Moraka and Masutlhe

1 Bridge constructed betw een Serotsw ana, Moraka and Masutlhe by 30 June 2016

R7 500 000

Financial Funding,

Personnel and


Constructed bridge

Safe passing by the community

Achieved

1 Bridge constructed betw een Serotsw ana, Moraka and Masutlhe


N

178





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

existing infrastructure.


To ensure provision of new roads and storm w ater infrastructure w hile upgrading existing infrastructure.


0.9 KMs of tar road w as constructed in Thembane Phase 1

1.3 KMs of tar road constructed in Thembane Phase 1 by 31 March 2016

R8 000 000

Financial funding,

Personnel and


Constructed tar road


Not Achieved

0.7KMs of tar road notconstructed in Thembane Phase 1

Delay w as due to community demands from the contractor

Construction to be completed next f inancial year

Minutes of the meetings

O

17 Provision of Roads and storm w ater to comm

To ensure provision of new roads and

KMs of Tar road constructed at Ext 38 main road

1.0 KMs of tar road w as constructed at Ext 38

0.2 KMs of tar road constructed at Ext 38 main road by 31 December

R4 000 000

Financial Funding,

Person



Achieved

0.2 KMs of tar road constructed at Ext 38


Close out

P

179





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

unities storm w ater infrastructure w hile upgrading existing infrastructure.

2015 nel and


main road report




The bridge w as not constructed in Mahupe section


R7 500 000

Financial funding,

Personnel and


Bridges constructed


Achieved



Q

180





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure



Number of Bridges constructed in Dithakong Tsaga Sehuba

New KPI 1 Bridge constructed in Dithakong Tsaga Sehuba by 30 June 2016

R4 500 000

Financial funding,

Personnel and


Bridges constructed


Not Achieved


The delay w as due to late appointment of contractor

To construct Bridge in Dithakong Tsaga Sehuba in the next f inancial year

Appointment letter

R


To ensure provision of new roads and storm w ater infrastructure


New KPI 2,7 KMs gravel road upgraded to tar at Setumo high school road by 30 June 2016

R4 000 000

Financial funding,

Personnel and

Contractors Resour

Re-graved gravel road


Not Achieved 2,7 KMs gravel road upgradednotto tar at Setumo high school road

Delay in appointing the contractor and delay in SCM processes

The project is ongoing and 2, 7 KMs gravel road to be upgraded to tar

Appointment Letter

S

181





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

w hile upgrading existing infrastructure.

ces at Setumo high school road in the next f inancial year.




New KPI 4,5 KMs of tar road constructed at Mapetla taxi road in Phase I by 30 June 2016

R5 000 000

Financial funding,

Personnel and




Not Achieved

4,5 KMs of tar road notconstructed at Mapetla taxi road in Phase I


The project is ongoing and 4, 5 KMs of tar road to be constructed at Mapetla taxi road in Phase I in the next f inancial year

Appointment letter

T

182





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

22 Provision of community centre

To ensure provision of community centre constructed

Number of a community centre constructed in Mantsa Ward 26

New KPIs 1 community centre constructed in Mantsa Ward 26 by 30 June 2016

R3 000 000

Financial funding,

Personnel and


Constructed Community centre

Access to useful community center

Not Achieved

1 community centre notconstructed in Mantsa Ward 26


The project is ongoing and 1 community centre to be constructed in Mantsa Ward 26 in next f inancial year

Appointment letter

U

23 Provision of community centre

To ensure provision of community centre constru

Number of multipurpose centre constructed in Ward 29

New KPIs 1 multipurpose centre constructed in Ward 29 by 30 June 2016

R3 000 000

Financial funding,

Personnel and

Constructed Community centre

Access to useful community center

Not Achieved

1 multipurpose centrenotconstructed in Ward

Delay in appointing the contractor and delay in SCM process

The project is ongoing and 1 multipurpose centre to

Appointment letter

V

183





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

cted Contractors Resources

29 es be constructed in Ward 29 in next f inancial year



KMs of tar road constructed from Sew eding to Phatsima – Ward 14

New KPIs 1,8 KMs of tar road constructed from Sew eding to Phatsima – Ward 14 by 30 June 2016

R4 000 000

Financial funding,

Personnel and




Not Achieved

1,8 KMs of tar road not constructed from Sew eding to Phatsima – Ward 14


The project is ongoing and 1, 8 KMs of tar road to be constructed from Sew eding to Phatsima – Ward 14 in next f inancial year

Appointment letter

W

184





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

25 Provision ofRoadsandstormw atertocommunities

Toensureprovision ofnewroadsandstormw aterinfrastructurew hileupgradingexistinginfrastructure.

KMs of tarroadconstructed in Ward30

New KPIs 1,3 KMs oftar roadconstructed in Ward30 by 30June 2016

R2 500000

Financialfunding,

Personnel and

ContractorsResources

Constructed tarroad

UseableRoadfor thecommunity

NotAchieved

1,3 KMs oftar road notconstructed in Ward30 by 30June 2016

Delay inappointing thecontractor anddelay inSCMprocesses

Theprojectisongoingand 1,3KMs oftar roadconstructed inWard 30in nextf inancialyear

Appointment letter

X


Toensureprovision ofnewroadsandstormw ater

KMs ofgravel roadupgradedto tar atmain roadin MadibeMakgabane – w ard 1

New KPIs 3,5 KMs ofgravel roadupgradedto tar atmain roadin MadibeMakgabane – w ard 1by 30 June

R10 500 000

Financialfunding,

Personnel and

Contra

Re-gravedgravelroad


NotAchieved3,5 KMs ofgravel roadnotupgradedto tar atmain roadin Madibe

Delay inappointing thecontractor anddelay inSCMprocess

Theprojectisongoingand 3,5KMs ofgravelroad tobe

Appointment letter

Y

185





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

infrastructurew hileupgradingexistinginfrastructure.

2016 ctors Resources

Makgabane – w ard 1

es upgraded to tarat mainroad inMadibeMakgabane –w ard 1in nextf inancialyear


Toensureprovision ofnewroadsandstormw aterinfrastructurew hileupgradingexistinginfrastru

KMs ofgravel roadupgradedto tar inMooipan –Phase II

New KPIs 3,5 KMs ofupgradingof a road inMooipan –Phase II by30 June2016

R5 000000

Financialfunding,

Personnel and


Re-gravedgravelroad


NotAchieved

3,5 KMs ofroad notupgrading

inMooipan –

Phase II

Delay inappointing thecontractor anddelay inSCMprocesses

Theprojectisongoing3,5 KMsto beupgraded of aroad inMooipan– PhaseII innextf inancialyear

Appointment letter

Z

186





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

cture.

28 Provision of Electricity to Communities

To ensure community areas visibility

Number of high mast lights constructed in Wards – 9, 10,14, 15

New KPIs 30 high mast lights constructed in Wards – 9, 10, 14and 15 by30 June2016

R3 000 000

Financial Funding and

Personnel Resource

Constructed high mast lights

Safety of community member and road users

Not Achieved

30 high mast lightsnotconstructed in Wards – 9, 10, 14and 15


The project is ongoing 30 high mast lights to be constructed in Wards – 9, 10, 14 and 15 in next f inancial year

Appointment letter

AA



Number of high mast lights constructed in Wards – 21, 24,25, 28 & 31

New KPIs 50 high mast lights constructed in Wards – 21, 24,25, 28 & 31by 30 June

R3 000 000

Financial Funding and

Personnel Resour

Constructed high mast lights

Safety of community member and road

Not Achieved 50 high mast lightsnotconstructed in Wards – 21, 24,

Delay in appointing the contractor and delay in SCM process

The project is ongoing 50 high mast lights to be

Appointment letter

AB

187





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

2016 ce users 25, 28 & 31 es constructed in Wards – 21, 24, 25, 28 & 31 in next f inancial year



KMs of road patched and resealed

30.092 KMs of roads w ere patched and resealed

35.5 KMs of roads patched and resealed by 30 June 2016

R4 000 000

Financial Funding,

Personnel and


Patched and resealed roads


Not Achieved

Only 24.782KMs of roads w ere patched and resealed

There w as a breakdow n of small machines w hich w ere still under guarantee w hereby the service provider appointed to supply

To use reputable & credible service providers and signing service level agreement that w ill compel the service providers to

Monthly reports

Roads and Storm w ater Daily Reports

AC

188





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

the small machinesdelayedto attendto thebreakdow n as aresultstheyw ere notw orkingfor amonth

adhered to.


Toensureprovision ofnewroadsandstormw aterinfrastructurew hileupgradingexisting

Number ofSpeedHumpsConstructed

New KPI 128 SpeedHumpsConstructed by 30June 2016

Opex FinancialFunding,

Personnel and


SpeedHumpsconstructed


NotAchieved

1 SpeedHumpsConstructed

Therew as ashortageof hotasphaltmaterialforspeedhumps

To usethe Pre-mixplant inreplacing hotasphalt

Memo AD

189





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

infrastructure.



KMs of Storm Water Drainage System Maintained

New KPI 31.2 KMs Storm Water Drainage System Maintained by 30 June 2016

R95 736

Financial Funding,

Personnel and


Storm Water Drainage System Maintained


Not Achieved

16.511KMs Storm Water Drainage System Maintained

No machinery for large construction of Storm Water Drainage

To purchase required machinery for major maintenance

Monthly reports

Roads and Storm w ater Daily Reports

AE

33 Provision of Roads and storm w ater to comm

To ensure provision of new roads and storm

Number of damaged Street Names and Plates Replaced

New KPI 96 Damaged Street Names and Plates Replaced by 30 June

R4 599 Financial Funding,

Personnel and

Street Names and Plates Replaced


Not Achieved

Damaged Street Names and Plates

There w ere no damaged Street Names and Plates reported

To replaced damaged Street Names and Plates

Memo AF

190





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

unities w ater infrastructure w hile upgrading existing infrastructure.

2016 Contractors Resources

Replaced to be replaced

reported



Number of households w ith basic electricity connections from Eskom

213 Households

2656 households w ith basic electricity connections from Eskom by 31 March 2016

Opex Personnel

Basic electricity connected

Improved standard of leaving

Not Achieved

Only 1116households w ith basic electricity connections from Eskom

Eskom hiccups delayed for connection of the basic electricity.

Eskom to speed up w ith the progress for the connection of the basic electricity

Eskom Progress Report

AG


To ensure an effective free basic

Number of indigents households w ith access to free basic

No household w as provided w ith free basic

5000 indigents households w ith access to free basic

Opex Financial Funding,

Person

Free basic electricity provided

Improved indigents standard of

Not Achieved

Indigents households have no

The municipality still in progress of compilin

On completion the register the municip

Indigent Register Programme

AH

191





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

electricity service.

electricity electricity electricity by 30 June 2016

nel and

Register

leaving access to free basic electricity

g the indigents register per 31 w ards

ality w ill communicate w ith Eskom for qualif ied registered indigents households to be provided w ith free basic electricity



Number of street lights retrofitted

New KPI 1407 street lights retrofitted by 30 June 2016

Opex Financial Funding and

Personnel Resource

Retrofitted street lights

Safety of community member and road users

Achieved

1407 street lights retrofitted

N/A N/A Close Out Report

AI

192





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

37 Provision ofElectricity toCommunities

Toensurecommunityareasvisibility

Number ofStreetlightsmaintained

3782 Streetlights w eremaintained

7500Streetlightsmaintainedper needby 30 June2016

R4 000000

FinancialFunding and

PersonnelResource

Maintained streetlights

Safetyofcommunitymemberandroadusers

NotAchieved

1104 Streetlightsmaintainedper need

Thematerialw as notin thestoresandtherew as adelay todeliverinstallationmaterialby thesupplier.

To buysuff icientmaterialto keepin storesanddisposew henrequested.

Infrastructure dailyreports

AJ



Number ofhigh mastlightsmaintained

554 highmast lightsmaintained

796 highmast lightsmaintainedper needby 30 June2016


PersonnelResour

Maintained highmastlights


NotAchieved

541 highmast lightsmaintainedper need

Thematerialw as notin thestoresandtherew as adelay to

To buysuff icientmaterialto keepin storesanddisposew hen

Infrastructure dailyreports

AK

193





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

ce deliver installationmaterialby thesupplier.

requested.



Number oftraff ic lightsintersectionmaintained

26 traff iclights w eremaintained

28 traff iclightsintersectionmaintainedby 30 June2016

Opex FinancialFunding and

PersonnelResource

Maintained trafficlights


Achieved

28 traff iclightsintersectionmaintained

N/A N/A Infrastructure dailyreports

AL

COMMUNITY SERVICES

40 CoordinatedandharmoniousEnviro

Toensurea

clean

Number ofhouseholdprovidedw ithrefuse

15000householdw ereprovidedw ith refuse

15 303householdprovidedw ithrefuse

R32 200 000

FinancialFunding

Providedrefuseremovalservicesto

Cleanand

healthy

Target exceeded

15 305

To

update the number of househ

RCNEXTRACTReport(R

ANumber increase is duenew buildings

194





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

nment and

healthy

environment

throughthe

provision of

regularrefuse

removal

services

removal services inresidentialurbanareas

removal services inresidentialurban areas

removal services inresidentialurbanareas by30 June2016

and

EPWPPersonnelresources

residential urbanareas

environment for

thew ellbeing of

citizens

household providedw ithrefuseremovalservices inresidentialurbanareas

esidential)

41 CoordinatedandharmoniousEnvironment

To ensurea

cleanand

healthy

environ

Number of villagesprovidedw ith refuseremovalservices

New KPI 18 villages providedw ith refuseremovalservicesby 30 June2016

R6 788000

FinancialFunding

and

EPWPPersonnel

Provided refuseremovalservicestorural/peri-urban

Clean and

healthy

environment for

thew ellbein

Achieved

18 villagesprovidedw ith refuseremovalservices

N/A N/A Refuse RemovalServiceReports(Rural/Peri-urbanareas)

AM

olds with new buildings

195





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

ment

throughthe

provision of

regularrefuse

removal

services

resources

g of

citizens

42 To ensurea

cleanand

healthy

environment

throughthe

provisio

Number of tradepremisesprovidedw ith refuseremovalservices

New KPI 832 trade premisesprovidedw ith refuseremovalservices by30 June2016

Opex FinancialFunding

and


Provided refuseremovalservicesto tradepremises

Clean and

healthy

environment for

thew ellbeing of

citizens

Achieved

832 tradepremisesprovidedw ith refuseremovalservices

N/A N/A RCN EXTRACTReport(Business &Industrial)

AN

196





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

n of

regularrefuse

removal

services

43 To ensurea

cleanand

healthy

environment

throughthe

provision of

regularrefuse

Number of anti-litteringcampaignsconducted

2 anti-litteringcampaignsconducted

4 anti-litteringcampaignsconductedby 30 June2016

R76 000

FinancialFunding

and


Conducted anti-litteringcampaign

Clean and

healthy

environment for

thew ellbeing of

citizens

Achieved

4 anti-litteringcampaignconducted

N/A N/A Anti-litteringcampaignreports

Attendance register

AO

197





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

removal

services

44 Toensurea

cleanand

healthy

environment

throughthe

provision of

regularrefuse

removal

services

Number ofreports onFacilitationofconstructioncompostingfacility byDEA

Nofacilitationofconstructioncompostingfacility

4 reportsonFacilitationofconstructioncompostingfacility byDEA by 30June 2016

Opex FinancialFunding

and


Facilitatedconstructioncompostingfacility

Cleanand

healthy

environment for

thew ellbeing of

citizens

NotAchieved

2 reportsonFacilitationofconstructioncompostingfacility byDEA

Thedelayw as duetoapplication ofw astelicensethatpermitsconstruction ofcompostingfacilityformREAD

Toobtainofw astelicensethatpermitsconstruction ofcompostingfacilityformREAD

Progressreport onDEAComposting facility

AP

198





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure


Toupgradetheparksandopenspaceforhealthyandsafeenvironment

Number ofreports onFacilitationof greeningprojects byDEA

New KPI 12 reportsonFacilitationof greeningprojects byDEA by 30June 2016

Opex FinancialFunding,

Personnel andcontractorsresources

Greeningprojectsfacilitated

Improved tow nimage

Achieved

12 reportsonFacilitationof greeningprojects byDEA

N/A NA ParksSectionMonthlyreports

AQ

46 Providepublicamenities forvariouscommunities


Number ofparksupgraded

New KPI 2 parksupgradedby 30 June2016

Opex FinancialFunding,personnel andcontractorsresource

Parksupgraded

Provision ofrecreationalplace

NotAchieved

2 parks notupgraded

Delaydue tocableinstallation

Tospeedup theinfrastructuresectionto installelectrical cables.

ParksWeeklyreports

AR

199





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure


ToupgradetheCemeteries forhealthyandsafeenvironment

Number ofCemeteriesregularlymaintained

5cemeteriesw eremaintained

5Cemeteriesw ereregularlymaintainedby 30 June2016


PersonnelResources

Maintainedcemeteries

Cleanandsafeenvironment

Achieved

5Cemeteriesw ereregularlymaintained

N/A N/A CemeteriesRegister

CemeteriesWeeklyreports

AS

48 Provide aSafeandhealthyenvironmenttocommunities

Toupgradethesportingfield forhealthyandsafeenvironment

Number ofsportingfieldmaintained

88 sportingfields



PersonnelResources

Sportingfieldmaintained


NotAchieved

11 sportingfieldmaintained

Thegraderandcherrypickerw ere notavailability forgrasscuttingandtreestrimmedat thesportf iled

Toacquirethegraderandcherrypicker

Schedulereport forcleaningruralsportsfields

AT

200





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

49 Provide aSafeandhealthyenvironmenttocommunities


Numbersof areasw ere grassis cut andtrees aretrimmed

Grass cut inMahikeng,Danville,Mmabatho,Montshiw aand Units

4 areasw ere grassis cut andtrees aretrimmed by30 June2016


PersonnelResources

Cleanedopenspaceandgrasscut


Achieved

4 areasw ere grassis cut andtrees aretrimmed

N/A N/A Parksregister

Parksw eeklyreport

AU


Toensureaccessto theuse ofParks

Number ofParkbookingspercustomerrequest

23 parkbookings

48 Parkbookingspercustomerrequest by30 June2016

Opex PersonnelResources

Bookedparks

Increasedrevenuethroughbookedparks

NotAchieved

29 Parkbookingspercustomerrequest

Thebookingaremade aspercustomerrequests

Toadhereto theplannedtarget ofbookings

ParkBookingsregister

Memoreports

AV

51 Toensureaccess

Number ofStadiumsbookings

10 stadiumsbookings

48Stadiumsbookings

Opex PersonnelResour

Bookedstadium

Increasedrevenue

NotAchieved

Thebookingare

Toadhereto the

StadiumBookings

AW

201





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

to the use ofstadiums

per customerrequest

per customerrequest by30 June2016

ce through bookedstadium

11Stadiumsbookingspercustomerrequest

made as percustomerrequests

planned target ofbookings

register

Memoreports

52 Toensureeffectiveuse of

Libraryfacilities.

Number ofnew librarymembership received

228 newLibrarymemberships w erereceived

200 Newlibrarymemberships receivedperdemand by30 June2016


PersonnelResource

Newlibrarymemberships

Educated and

w ellinformed

community

TargetExceeded

240 Newlibrarymemberships receivedperdemand

Newlibrarymembershipdepended on thecustomerdemand

Toadhereto theplannedtargetfor newmembership

Librarymembershipapplications

AX

53 Toensureeffectiveuse of

Libraryfacilities.

Number ofLibraryServicesAw arenesscampaignsconducted

3 LibraryServicesAw arenesscampaigns

2 Libraryservicesaw arenesscampaignsconductedby 30June 2016


PersonnelResource

Conductedlibraryaw areness

Educated and

w ellinformed

community

Achieved

2 Libraryservicesaw arenesscampaignsconducted

N/A N/A LibraryServicesAw arenesscampaigns reports

Attendance register

AY

202





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure


Toensureaccessto theuse ofmunicipal civiccenter

Number ofreportssubmittedon CivicCentrebookings

12 reportssubmittedon CivicCentrebookings

12 reportssubmittedon CivicCentrebookingsby 30 June2016

Opex PersonnelResource

Bookedciviccentre

Increasedrevenuethroughbookedciviccentre

Achieved

12 reportssubmittedon CivicCentrebookings

N/A N/A MonthlyCivicCentrebookingsreports

AZ

PUBLIC SAFETY

55 Provideeff icient andeffective lawenforcementservices

Toprovideprofessional lawenforcementManagementservices

Number ofroad blocksconducted

14 Roving& 18 Staticroad blocks

32 Roadblocksconductedby 30 June2016


Conducted roadblocks

Effective and

efficientlaw

enforcement

NotAchieved

27 Roadblocksconducted

Unplannedeventshostedthatneededtheoff icersto attendto

Toconductplannedroadblocks inthe nextf inancialyear

RoadblocksReports

BA

56 Toprovideprofessional law

Number ofschoolsw herescholar

Scholarpatrolactivitiesw ere

10 schoolsw herescholarpatrol

Opex FinancialFundin

Conductedscholarpatrol

Effective and

efficient

Achieved

10 schoolsw here

N/A N/A LawEnforcementScholar

BB

203





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

enforcementManagementservices

patrol activitieshave beenconducted

conducted in 09schools

activities have beenconductedby 31March2016

g and

PersonnelResources

activities law

enforcement

scholar patrolactivitieshave beenconducted

Patrol schoolregister

ScholarPatrolAttendance register

57 Toprovideprofessional lawenforcementManagementservices

Number ofspeedenforcementconducted

151 speedenforcements

200 speedenforcementconductedby 30 June2016


Speedenforcementconducted

Effective and

efficientlaw

enforcement

NotAchieved

83 speedenforcementconductedb

Servicesprovidedid notreport onthespeedimagedow nloads

ToObtainreportonspeedimagedow nloads fromtheservicesby thenextf inancialyear

LawEnforcement Speedenforcementreports

BC

58 Toprovideprofessional lawenforce

% of theidentif ieddamagedroad signsrepaired/re

Repaired/replaceddamagedroad signs

100 %identif ieddamagedroad signsrepaired/re


Repaired /replaceddamaged road

Effective and

efficient

Achieved

100 %identif ieddamaged

N/A N/A LawEnforcementLogistics

BD

204





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

ment Managementservices

placed placed by 30 June2016

PersonnelResources

signs law

enforcement

road signs repaired/replaced

reports

59 Provideeff icient andeffective lawenforcementServices


Number ofinspectionsconductedat theMunicipalPound

43MunicipalPoundinspections

24inspectionsconductedat theMunicipalPound by30 June2016


Inspectionsconducted

Creating aSaveenvironment foranimals

Targetexceeded

50inspectionsconductedat theMunicipalPound

Theneed toprotectand safemoreanimal inthecommunity

MunicipalPoundinspections tobeconducted asplannedin thenextf inancialyear

Inspectioncheck listreports

BE

60 Toprovideprofessional lawenforcementmanagement

% ofidentif iedfaded roadmarkingspainted

New KPI 100%identif iedfaded roadmarkingspainted by30 June2016

Opex Financialresource

Roadmarkingsmachinepurchased

Effective and

efficientlaw

enforce

Achieved

100%identif iedfaded roadmarkingspainted

N/A N/A LawEnforcementLogisticsreports

BF

205





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

services ment


% ofEstablishment of By-Lawenforcement Unit

By-Lawenforcement Unit (PilotPhase)

100%Establishment of By-Lawenforcement Unit by30 June2016


PersonnelResources

Established By-LawenforcementUnit

Effective and

efficientlaw

enforcement

NotAchieved

NoEstablishment of By-Lawenforcement Unit

The By-LawenforcementUnit isstill in apilotphasethere stilla needtoappointpilotteamofficially

Torequestappointof theBy-LawenforcementUnit pilotteamfrom theMunicipalcouncil

Memo BG

62 Provideeff icient andeffective lawenforcementServic


% oflearnersanddriver‟s licenseapplicantstested

Learnersand Driver‟s Licenseapplicantscan betested

100%learnersanddriver‟s licenseapplicantstested by30 June2016


PersonnelResources

Testeddriver‟s LicenseandLearnersapplicants

Effective and

efficientlaw

enforcement

NotAchieved

92% oflearnersanddriver‟slicenseapplicantstested

Due toabsentees andstudentsgiventest datein thenextquarter

To testthelearnersanddriversapplicant in thenextquarter

ApplicantperExaminerreports

Licensingstatisticsreports

BH

206





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

es


% ofPermitsrequested(PrDP)issued permonth

Permits(PrDP)requestedw ere 100%issued

100% ofPermitsrequested(PrDP)issued permonth


PersonnelResources

Permits(PrDP)issued

Effective and

efficientlaw

enforcement

Achieved

100 % ofPermits(PrDP)requestedissued permonth

N/A N/A LicensingMonthlyReport

BI


% ofvehiclestested permonth

Vehiclesw ere tested100% permonth

100%ofvehiclestested permonth


PersonnelResources

Vehiclestested

Effective and

efficientlaw

enforcement

NotAchieved

98 % ofvehiclesw eretested permonth

Due toapplicants notbring thevehiclefortesting

To testvehiclebroughtfortestingin thenextquarter

Testedvehiclesreports

BJ

65 Provide FireandDisasterManag

ToprovideprofessionalFire,Rescue

Number ofFire Safetycomplianceinspectionsconducted

251 FireSafetycomplianceinspectionsw ere

240 FireSafetycomplianceinspectionsconductedby 30 June


FireSafetycomplianceinspections

FireSafetyenvironment inmunicip

NotAchieved

238 FireSafetycompliance

The firesafetycomplianceinspections are

FireSafetycomplianceinspections to

Firesafetyreports

BK

207





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

ement services

andDisasterManagementServices

conducted 2016 conducted

al area inspections conducted

done on call,therew eremore f iresafetycomplianceinspection callsmade bybusinessreps

beconducted asper callsmade inthe nextf inancialyear

66 ToprovideprofessionalFire,RescueandDisasterManagementServices

Number ofFire SafetyAw arenessprogramsconducted

67 FireSafetyAw arenessprogramsw ereconducted

40 FireSafetyAw arenessprogramsconductedby 30 June2016


PersonnelResource

FireSafetyAw arenessprogramsconducted

FireSafetyenvironment inmunicipal area

TargetExceeded

71 FireSafetyAw arenessprogramsconducted

Duringthew interseasonthe f ireincidentsincreases,thereforethe unitconducted manyfireaw arenessprogram

Toconductf iresafetyaw arenessprogramasplannedin thenextf inancialyear

FireEmergency servicesandDisastermanagementmonthlyreport

BL

208





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

to alert thecommunities

67

ToprovideprofessionalFire,RescueandDisasterManagementServices

Number off irehydrantsinspected

377 firehydrantsw ereinspected

300 Firehydrantsinspectedby 30 June2016


PersonnelResources

Firehydrantsinspected

FireSafetyenvironment inmunicipal area

TargetExceeded

332 Firehydrantsinspected

Increasew as dueto morefirehydrantinspection aredone astheinspection aredone asperrequest.

Toinspectthe f irehydrantas perrequested

HydrantsReports

BM

68 ProvideSecuritymanagementservices

Toensureaccesscontrolsecurityandsafew orkenviron

Number ofSecurityrisks andthreatsauditconducted

Thesecurity riskand threatAudit w erenotconducted

2 Securityrisk andthreatsauditconductedby 30 June2016

Opex Financialfundingand

PersonnelResour

Securityrisksandthreatsassessmentconducted

Improvedsecurity

Achieved

2 Securityrisk andthreatsauditconducted

N/A N/A SecurityAssessmentreports

BN

209





Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

ment ce

69 Toensureaccesscontrolsecurityandsafew orkenvironment

%Installationof Accesscontrolsystem andCCTVcamera atMunicipalFire stationand Traff ic&Licensingpremises

New KPI 100%Installationof Accesscontrolsystem andCCTVcamera atMunicipalFire stationand Traff ic&Licensingpremisesby 31December2015

Opex Financialfunding,

Personnel and

Contractsresources

Installation ofAccesscontrolsystemandCCTVcamera

Improvedsecurity

NotAchieved

NoInstallationof Accesscontrolsystem andCCTVcamera atMunicipalFire stationand Traff ic&Licensingpremisesby 31December2015

Delay torequestSecurityandThreatauditfromSAPS

AccesscontrolsystemandCCTVcameraatMunicipal w ill beInstalledafterSAPShasconducted aSecurityandThreataudit.

Letter toDivisionCommissioner

BO

210

KPA: LOCAL ECONOMIC DEVELOPMENT AND SPATIAL DEVELOPMENT





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action

Portfolio of Evidence

Annexure

70 Promotespatialplanning

Toensureorderlyspatialplanningandsustainabledevelopmentw ithin themunicipalarea

Mahikeng newLand useSchemereview edandadoptedbycouncil

TheMahikengnew land usescheme notadopted

Mahikengnew Landuse Schemereview ed andadopted bycouncil by 30June 2016

Opex


PersonnelResource

AdoptedMahikeng newLand useScheme

Improvestandardof livingand safelivingenvironment.

NotAchieved

TheMahikeng newland useschemew as notadopted

Themunicipality stillneeds toimplementtheSpatialPlanningand LandUseManagement Act,2013(SPLUMA)before theadoptionof the newLand usescheme.

Toappointthemembersfor themunicipalplanningtribunal toimplementtheSpatialPlanningand LandUseManagement Act,2013(SPLUMA) inthe nextf inancialyear.

Advert

Councilresolution

A

71 Toensure

Land(urban)audit

The land(urban) audit

Land (urban)audit reportadopted by

Opex

FinancialFundin

AdoptedLand(urban)

Improvestandardof living

NotAchieved

Therew as adelay in

Toappointthe

Letter toDepartment of Rural

B

211





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

orderly spatial

planningand

sustainable

development

w ithin the

municipalarea

report adoptedbycouncil

not adopted council by 31 March 2016

g and

Personnel

Resource

Audit report

and safe livingenvironment.

The land (urban)auditw as notperformed

appointing theserviceproviderto performthe land(urban)audit dueto latedevelopment oftenderadvert

services providerto performthe Land(urban)audit inthe nextf inancialyear.

Development andLandReform


Toensureorderlyspatialplanningandsustainabledevelopmentw ithin themunicipal

Numberof reportson newtow nshipestablishedsubmitted tocouncil

No report onnewtow nshipestablished

4 reports onnewtow nshipsestablishedsubmitted tocouncil by 30June 2016

Opex


PersonnelResources

Submitted reportson newtow nshipestablished


NotAchieved

Noreportson newtow nshipsestablishedsubmitted to

Noapplication fortow nshipestablishment w asreceived.

To reporton thetow nshipestablishmentw henapplications arereceivedin the nextf inancialyear

Tow nshipestablishmentReports

C

212





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

area council


Toensureorderlyspatialplanningandsustainabledevelopmentw ithin themunicipalarea

% Turn –aroundtimetaken toprocessrezoningapplicationsw ithin 90daysfrom dateofsubmission

The rezoningapplicationsw ere notprocessedw ithin 90days fromdate ofsubmission

100% Turn –around timetaken toprocessrezoningapplicationsw ithin 90days fromdate ofsubmission

Opex

PersonnelResources

Processedrezoningapplications


NotAchieved

Turn –aroundtimetaken toprocessrezoningapplications w asnot beenmetw ithin 90daysfromdate ofsubmission.

Themunicipality stillneeds toimplementtheSpatialPlanningand LandUseManagement Act,2013(SPLUMA) andestablishmunicipalplanningtribunal.

Toappointthemembersfor themunicipalplanningtribunal toimplementtheSpatialPlanningand LandUseManagement Act,2013(SPLUMA) inthe nextf inancialyear

Reports

Application letter forRezoning

D

74 ToProvideAdequate

To createadditional facilitiesandupgradin

% Turn –aroundtimetaken toprocess

The buildingplansapplicationw ere 100%processed

100% Turn –around timetaken toprocessapplications

Opex

PersonnelResources

Processedbuildingplansapplicati


NotAchieved

Turn –around

Delay wasmade bydisputesandcouncil

Toexpeditetheprocessing of

Buildingplansregisters

Building

E

213





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

Housing

g existing buildings

applications forbuildingplansw ithin 30daysfrom dateofsubmission

w ithin 30 days fromdate ofsubmission

for building plans w ithin30 days fromdate ofsubmission

ons time taken toprocessapplications forbuildingplansw as notbeenmetw ithin 30daysfromdate ofsubmission

investigations.

applications forbuildingplans

plans (AvailableatPlanningdevelopmentstoreroom/off ice onrequest)

75 ToProvideAdequateHousing

To createadditional facilitiesandupgrading existingbuildings

%Improvedturnaround timeoninterimvaluationof new lyapprovedbuildingw ithin 21days ofcompleti

100%Improvedturnaroundtime oninterimvaluation ofnew lyapprovedbuildingw ithin 21days ofcompletion of

100%Improvedturnaroundtime oninterimvaluation ofnew lyapprovedbuildingw ithin 21days ofcompletion of

Opex

PersonnelResources

Valuednew lyapprovedbuildings


NotAchieved

Turnaround timeoninterimvaluationof new lyapprovedbuildingw as not

Insuff icientsupportingdocuments forvaluationof buildingby theclient

To advicethe clientto submitsuff icientsupportingdocuments forvaluationof buildingin the nextf inancial

Interimvaluationreports

F

214





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

on of structure

structure structure been metw ithin 21days ofcompletion ofstructure

year.



%Improvedturnaround timeoninterimvaluationofimproved(Extended)approvedbuildingw ithin 21days ofcompletion ofstructure

100%Improvedturnaroundtime oninterimvaluation ofimproved(Extended)approvedbuildingw ithin 21days ofcompletion ofstructure

100%Improvedturnaroundtime oninterimvaluation ofimproved(Extended)approvedbuildingw ithin 21days ofcompletion ofstructure

Opex

PersonnelResources

Valuednew lyapprovedbuildings


NotAchieved

Turnaround timeoninterimvaluationofimproved(Extended)approvedbuildingw as notbeenmetw ithin 21days ofcompletion of

Insuff icientsupportingdocuments forvaluationof building

To advicethe clientto submitsuff icientsupportingdocuments forvaluationof buildingin the nextf inancialyear

Interimvaluationreports

F

215





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

structure

77 To createadditional facilitiesandupgrading existingbuildings

HousingSectorPlanadoptedbycouncil

HousingSector Planreview ed butnot yetadopted

HousingSector Planadopted bycouncil by 30June 2016

Opex

PersonnelResource

AdoptedHousingSectorPlan


Achieved

HousingSectorPlanadoptedbycouncil

N/A N/A HousingSectorPlan

Councilresolution

G



Timeousadoptionof LevelOneHousingaccreditationapplication bycouncil

Level OneHousingaccreditationapplicationnot adopted

Timeousadoption ofLevel OneHousingaccreditationapplicationby council by31December2015

Opex


Personnel

Accreditation onlevel onehousing

Improvedhousingstructure

Achieved

LevelOneHousingaccreditationapplicationadoptionbycouncil

N/A N/A Councilresolution

H

79 ToProvideAdeq

To createadditional facilitiesand

Numberofreportscompiled

4 reportscompiled onlow costhouses

4 reportscompiled onlow costhouses

Opex

PersonnelResou

Reportscompiledon lowcost

Provision onbasic

Achieved

4reports

N/A N/A Low costhousingReports

I

216





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

uate Housing

upgrading existingbuildings

on low costhousesfacilitated

facilitated facilitated by 30 June2016

rces houses living w ere compiledonmonitored lowcosthousesfacilitated

80 Provide aSafeandhealthyenvironment tocommunities

PromoteEnvironmentalAw areness

NumberofEnvironmentalaw arenesscampaignsconducted

2Environmental aw arenesscampaignsw ereconducted

2Environmental aw arenesscampaignsconducted by30 June2016

R45000


PersonnelResources

Conductedenvironmentalaw arenesscampaigns

Toensuresafelivingenvironment.

NotAchieved

Noenvironmentalaw arenesscampaigns w ereconducted

Delay tocoordinate 31w ards tocaterenvironmentalaw arenesscampaignIthateMahikeng

Tocoordinate 31w ards tocaterenvironmentalaw arenesscampaignIthateMahikengin the nextf inancialyear.

Invitation

Minutes ofthemeetings

J

81 Coordinatedandharm

Tomonitorillegal

Audit onoutdooradvertisi

Audit onoutdooradvertising

Audit onoutdooradvertising

Opex

FinancialFundin

Auditedoutdooradvertisi

Promotion of

Achieved

Audit on

N/A N/A OutdoorAdvertisin

K

217





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

oniousEnvironment

outdoor advertising

ngconducted

w as not conducted

conducted by 30 June2016

g and

PersonnelResource

ng and reviewedoutdooradvertising policy

legal landuses inregardsto theOutdooradvertising Policy

outdoor advertisingconducted

g Report

Offer letter


Tomonitorillegaloutdooradvertising

Outdooradvertising policyreview edandadoptedbycouncil

Policy onoutdooradvertisingw as notreview ed andadopted

Outdooradvertisingpolicyreview ed andadopted bycouncil by31 March2016

Opex


PersonnelResource

Auditedoutdooradvertising andreviewedoutdooradvertising policy

Promotion of

legallanduses inregardsto theOutdooradvertising Policy

NotAchieved

Outdooradvertising policynotreviewedandadoptedbycouncil

Delay isdue tow aiting forthecompletion of theoutdooradvertingauditreport toalign it tothe Policy.

Thecouncil toreviewand adopttheOutdooradvertising policyoncompletion of theOutdooradvertising audit.

Offer letter K

83 Create aconduciveenvir

ToreviewanddevelopPolicy

LEDStrategyreview edandadopted

The LEDstrategy w asnot review edand adopted

LED Strategyreview ed andadopted bycouncil by 31

R1 024283

FinancialFunding andPerso

Review ed andadoptedLED

SustainableEconomic Grow thand

NotAchieved

The LEDstrategy

Delay wasdue tow aiting forthedistrict

Toobtainedthe districtLEDstrategy

Memo L

218





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

onment forbusinessinvestmentandgrow th forjobcreation

andStrategy

by council

March 2016 nnel Resources

Strategy Development;and Jobcreation

w as not review ed, hencenotadopted

LED strategy

and draft the Localmunicipality LEDstrategy

84 Create aconduciveenvironment forbusinessinvestmentandgrow th forjobcreati

To createaconduciveenvironment forbusinessInvestment andgrow thfor jobcreation

NumberofAgriculturalenterprisessupported

16Agriculturalenterprisessupported

16Agriculturalenterprisessupported by30 June2016

FinancialFunding andPersonnelResources

Supportedagriculturalenterprises

PovertyAlleviation andagricultural jobcreation

Exceeded Target

26Agriculturalenterprises w eresupported

Thedemandw as morethanexpectedonAgriculturalenterprises support.

Tosupporttherequirednumber ofagriculturalenterprise

Confirmation Letter

List ofEnterprisesupported

PurchaseOrder

M

219





Budget

Input Indicators

Output Indicators

Outcome

Indicators

Annual

Actual Performance


Remedial Action


Annexure

on

85 Create aconduciveenvironment forbusinessinvestmentandgrow th forjobcreation

To createaconduciveenvironment forbusinessinvestment andgrow thfor jobcreation

NumberofSMMEstrainedthroughmunicipalLED

81 SMMEstrainedthroughmunicipalLED

70 SMMEstrainedthroughmunicipalLED by 30June 2016

R55592

FinancialFunding andPersonnelResource

SMMEstrained

SkilledSMMEs

TargetnotAchieved

11SMMEstrainedthroughmunicipal LED

Thedemandw as lessthanexpectedto trainingSMMEs.

To trainSMMEsas perdemand

Attendance register

N

220

KPA: GOOD GOVERNANCE, PUBLIC PARTICIPATION AND WARD COMMITTEE SYSTEM




Baseline

Annual Performance Target

Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

86 ToProvidedemocraticandaccountablegovernmentforlocalcommunities

Tocoordinate w ardcommitteemeetings

Numberof w ardcommunity andstakeholderconsultationmeetingsheld onthe draftIDPcoordinated

21 w ardscommunity andstakeholderconsultationmeetingsw ereheld onthe draftIDPcoordinated (1meetingperw ard) in30 April2015

31 w ardscommunity andstakeholderconsultationmeetingsheld onthe draftIDPcoordinated (1meetingperw ard) by30 April2016

Opex Financial andPersonnelResources

ConvenedmeetingsonCommunity andstakeholderconsultation

A w ell

informedand

participating

community

in local

government matters

Achieved

31 w ardsCommunity andstakeholderconsultationmeetingson thedraft IDPcoordinate perw ard

N/A N/A Minutes ofthe IDPcommunityconsultations

Attendance register

A

87 Toensure

regular

consultation

ToconductSpeakersConsultations

NumberofSpeakersoutreachprogramconducted

31speakersoutreachprograms w ereconducted

31Speakersoutreachprogramsconducted (1

Opex Financial and

PersonnelResource

Speakersoutreachprogramsconducted

A w ellinformedandparticipatingcommunity in localgovernme

Achieved

31Speakersoutreachprogramsconducted (1

N/A N/A WardCommunityMeetingsSchedules

B

221




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

betw eenCouncil

and the

community

meetingperw ard) by30 June2016

ntmatters.

meetingper w ard)by 30June2016

Minutes ofthe IDPcommunityconsultations

Attendance register

88 Toensure

regular

consultation

betw eenCouncil

and the

community

Preparation for theadoptionof the IDP

NumberofIDP/BudgetSteeringCommitteemeetingsheld

4IDP/BudgetSteeringCommitteemeetingsw ereheld

4IDP/BudgetSteeringCommitteemeetingsheld by30 June2016

Opex Financial and

PersonnelResources

IDP/BudgetSteeringCommitteemeetingsheld

A w ellInformedandparticipatingcommunity in localgovernmentmatters.

NotAchieved

2IDP/BudgetSteeringCommitteemeetingsw ere held

The IDPmanagerpost w asvacant andthe IDPresponsibilities arescattered,IDP/Budget SteeringCommitteemeetingsnot held

DP/BudgetSteeringCommitteemeetingto beheld asplannedin thenextf inancialyear

IDP/BudgetSteeringCommitteemeetingsattendance registersand

Minutes oftheIDP/BudgetSteeringCommitteemeetings

C

222




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

89 Toensure

regular

consultation

betw eenCouncil

and the

community

Numberof IDPRepForummeetingsheld

The IDPRepForummeetingsw ere notheld

4 IDPRepForummeetingsheld by30 June2016

Opex Financial and

PersonnelResource

Convened IDPRepForummeetings

A w ellinformedandparticipatingcommunity in localgovernmentmatters.

NotAchieved

1 IDPRepForummeetingheld

The IDPmanagerpost w asvacant andthe IDPresponsibilities arescattered,w hichresulted inthe IDPRepresentativeForum notestablished

The IDPRepForummeetingsto beheld asplannedin thenextf inancialyear

Minutes ofthe IDPrepresentativeforummeeting

Attendance register

D

90 ToProvidedemocraticandaccountablegovernmentforlocalcommu

To ensure

regular

consultation

betw eenCouncil

and the

communit

Numberof IDPservicedeliveryreportssubmittedto council

TheServicedeliveryreportsw ere notcompiled, hencenosubmission tocouncil

4 IDPServicedeliveryreportssubmitted tocouncilby 30June2016


SubmittedServicedeliveryreports


NotAchieved

IDPServicedeliveryreport notsubmittedto council

The IDPmanagerpost w asvacant andthe IDPresponsibilities arescatteredw hichresulted inthe IDPServicedelivery

IDPServicedeliveryreport tobesubmitted tocouncilin thenextf inancialyear

IDPServicedeliveryreport

E

223




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

nities y report notsubmittedto council

91 To ensure

regular

consultation

betw eenCouncil

and the

community

Numberof reportscompiledon thefunctionality ofw ardcommittee

2Reportsw ere notcompiledon thefunctionality ofw ardcommittees

4Reportscompiledon thefunctionality ofw ardcommittees by 30June2016


Reportsonfunctionality ofw ardcommittees


NotAchieved

Only 1Reportcompiledon thefunctionality ofw ardcommittees

Delay dueto w ardcommittees notsubmittingtheir WardCommunityMeetingsSchedules

Tocompiledreport onthefunctionality ofw ardcommittees oncethe w ardcommitteessubmitstheirWardCommunityMeetingsSchedules

Reportson thefunctionality of w ardcommittees

F

92 ToProvidedemocr

To ensure NumberofCouncilor

New KPI 2Councilors

Opex Financial and

Councilorstraining

Skilledcouncilors

NotAchieved

Thecouncilorstrainings

TofacilitateCouncilo

Attendance register

G

224




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

aticandaccountablegovernmentforlocalcommunities

regular

consultation

betw eenCouncil

and the

community

s trainingprogramsfacilitated

trainingprogramsfacilitated by 30June2016

PersonnelResources

program facilitated

1Councilors trainingprogramsfacilitated

aredependentoninvitationfromSALGAandSALGAbecause ofthe year ofelectionthey didnot invitecouncilorsfor training

rstrainingprogramsdepending oninvitationfromSALGA

93 ToProvidedemocraticandaccountablegovernmentforlocalcommunities

To ensure

regular

consultation

betw eenCouncil

and the

community

Numberof trainingprogramsfacilitatedforcommitteemembers

New KPI 2 trainingprogramsfacilitated forcommitteemembers by 30June2016

Opex Financial and

PersonnelResources

Committeemembers trainingprogramsfacilitated

Skilledw ardcommitteemembers

NotAchieve

The w ardcommitteemembersw ere nottrained

Thetraining aredependedon specialfundingfromSALGA

Torequestspecialfundingtoensurethatw ardcommitteemembers aretrainedasplanned

Memo H

225




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

in thenextf inancialyear

94 Numberof Imbizosheld byExecutiveMayor

1 imbizow as held

2Imbizosheld byExecutive Mayorby 30June2016

Opex Financial and

PersonnelResources

Imbizosheld


NotAchieved

1 Imbizow as heldby 30June2016

Budgetconstrained due tothe off iceof themayorhostedunplannedeventsinitiated bypremiersoff ice

Toensurethat allplannedimbizosare heldin thenextf inancialyear

Agenda

Minutes ofthemeeting

Attendance register

I

95 CommunityParticipation Policyreview edandadopted

Thecommunityparticipationpolicyhas notbeenreviewedandadopted

CommunityParticipationPolicyreviewedandadoptedby 30June2016


Review ed andAdoptedCommunityParticipationPolicy


NotAchieved

Thecommunityparticipation policyhas notbeenreview edand

Delay toconduct apolicyw orkshop

Thecommunityparticipationpolicyw ill beadoptedafterreview inthe nextf inancial

DraftCommunityParticipation Policy

J

226




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

adopted year

96 DevelopmentandReviewof thePerformanceManagementSystem

Auditqueriesattendedto w ithinthetimeframe

2015/2016 Risk-basedoperational Auditplanapprovedby council

The riskbasedoperational planw ascompiledbut notapproved

2015/2016 Risk-basedoperational Auditplanapproved bycouncilby 30September 2015.


Approved Risk-basedoperational Auditplan

Effectiveandefficientinternalauditservices

Achieved

2015/2016 Risk-basedoperational Auditplanapprovedby council

N/A N/A AuditActionPlan2015-16report

K

97 DevelopmentandReviewof thePerformanceManagementSystem

Auditqueriesattendedto w ithinthetimeframe

Internalaudit andauditcommittee charterApprovedby council

Therew as nointernalauditandauditcommittee charter

Internalaudit andauditcommittee charterApproved bycouncilbycouncilby 30Septemb


ApprovedInternalaudit andauditcommittee charterr

Effectiveandefficientinternalauditservices

NotAchieved

Therew as nointernalaudit andauditcommittee charter

The delayw as due tochange inmanagement, and thenew lyappointment countingoff icer hadto reviewthe contentof the draftinternal

Theauditcommittee andthecountingoff icer tomeet forreview oftheinternalauditand

Internalauditcommitteecharter

L

227




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

er 2015 audit andauditcommitteecharter idtogetherw ith theauditcommittee

auditcommittee charterandsubmit tothecouncilforapprovalin thenextf inancialyear

98 DevelopmentandReviewof thePerformanceManagementSystem(PMS)

Development ofMid-termreport

Timeoussubmission ofSection72 (Mid-term)Report toCouncil

TheSection72 (Mid-term )Reportw astimeouslysubmitted toCouncilby 31January2015

Timeoussubmission ofSection72 (Mid-term)ReporttoCouncilby 31January2016


SubmittedSection72 (Mid-term)Report

Effectiveadministration toensureachievement ofMunicipalobjectives

Achieved

TheSection72 (Mid-term )Reportw astimeouslysubmittedto Councilby 31January2016

N/A N/A CouncilresolutionandMidtermreport

M

228




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action

Portfolio of

Evidence

Annexure

99 Tabling ofDraftAnnualReport

Timeoustabling of2014/2015 draftAnnualReport tocouncil

The2013/2014 draftAnnualReportw astabledon timetocouncilby 31January2015

Timeoustabling of2014/2015 draftAnnualReport tocouncilby 31January2016


TableddraftAnnualReport

Reliableandtransparent draftannualreportsubmittedtimeously

Achieved

The2014/2015 draftAnnualReportw astabled ontime tocouncil by31January2016

N/A N/A Councilresolutionand tablesdraftannualreport

N

229

KPA: MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

100 Development ofandimplement ofsoundHumanresourcesManagementandPolicies

To DevelopandimplementSoundHumanResourceManagementPractices

Timeoussubmission of theHRMDDraftStrategyto Councilforapproval

Nosubmission of theHRMDDraftStrategytoCouncilforapproval

Timeoussubmission of theHRMDDraftStrategyto Councilforapprovalby 31December2015

Opex HumanResources

Review edHRMDDraftStrategy

SoundHRadministration

NotAchieved

Nosubmission of theHRMDDraftStrategyto Councilforapproval

TheHRMDDraftStrategyhas beendeveloped, but notyetapprovedby councilas it hasnot yetbeenreview edbyDirectorCorporateServices,as sheresigned.

The HRMDDraftStrategy tobe review edby theDirectorCorporateServicesonceappointedand thensubmitted tocouncil forapproval inthe nextf inancialyear.

InternalMemo

HRMD DraftStrategy

A

101 Number ofHRpoliciesDeveloped andapproved

No HRpoliciesw eredeveloped andapprove

10 HRpoliciesdevelopedandapprovedby Council

Opex HumanResources

Developed policies

SoundHRadministration

NotAchieved

No HRpoliciesw ere

Delay toconduct apolicyw orkshop

Thedirectorateto secure adate forw orkshop ofcouncilors in

InternalMemo

List of HRPolicies

B

230




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

by Council d by Council

by 30 June 2016

developed andapprovedby Council

order for the councilors tobe trainedand for themto provideinput on thepoliciesbeforeapproval thenextf inancialyear

Draft policies

102 Implementationof soundhumanresourcesdevelopment

To maintaina properorganizationalstructurethat is inline w iththemunicipalobjectives

Timeoussubmission of theOrganizationalStructurefor, reviewadoptionandimplementation byCouncil

OrganizationalStructurereview ed,adoptedbyFebruary 2015

Timeoussubmission of theOrganizationalStructurefor, reviewadoptionandimplementation byCouncil by31December2015

Opex HumanResources

SubmittedOrganizationalStructure

FunctionalOrganizationalStructure

NotAchieved

OrganizationalStructurenotsubmittedto Council

The delayw as dueto re-visitationof theorganizationalstructurew ithrelevantstakeholders.

TheOrganizational Structureto besubmitted toCouncil intime after re-visitation oftheorganizational structurew ith relevantstakeholders

InternalMemo

OrganizationalStructure

C

231




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure


To conductjobdescriptions

%completion of Jobevaluationof f illedpositions

New KPI 100%completion of Jobevaluationof f illedpositionsby 30June 2016

Opex HumanResources

EvaluatedJobdescriptions

Motivatedemployee

NotAchieved

Nocompletion of Jobevaluationof f illed

1. Pendingtheapprovalof NationalJobevaluationpolicy byCouncil

2. Nonavailabilityof theDirectorCorporate

3. Portfoliocommitteedelay to sit

Appointmentof DirectorCorporate ,schedulesitting of thePortfoliocommitteeand submitJobevaluationpolicy toCouncil

InternalMemo

D

104 Promotion ofw orkplacetransformation

Toestablishanddevelop asoundEmployment EquityPlan

Timeoussubmission of thereview edEmployment EquityPlan

Thereview edEmploymentEquityw assubmitted on 12January

Timeoussubmission of thereview edEmployment Equityby 31January2016

Opex HumanResources

SubmittedEmployment Equityplan

Addressinginequalities

Achieved

Review edEmployment Equitysubmittedby 27January2016

N/A N/A Acknowledgement ofsuccessfulcompletionofEmploymentEquityReportEmploymentEquity

E

232




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

2015 Report

105 Established andFunctional

Employment EquityForum

EmploymentEquityForumw as notestablished

Established andFunctionalEmployment EquityForum by31 August2015

Opex HumanResources

EstablishedFunctionalEmployment Equityforum

Addressinginequalities

NotAchieved

Noestablished andFunctionalEmployment EquityForum

There hasnot been aseating/meeting fornominations ofmembersand nonamesw eresubmittedby partiesto serveon thecommittee

Themembers forthe EEForum to beestablishedw hen thereisseating/meeting fornominationsof membersor namessubmitted byparties toserve on thecommittee.

InternalMemos

F


To developcapacityand retainskilled staffin themunicipality

%Implementation of2015/16WorkplaceSkills Plan

100%Implementationof2014/15Workplace SkillsPlan

100%Implementation of2015/16WorkplaceSkills Planby 30June 2016

Opex HumanResources

ImplementedWorkplaceSkills Plan

Transformed andproductive w orkforce

Achieved

100%Implementation of2015/16WorkplaceSkills Planby 30

N/A N/A Reports onimplementation of2015/16WorkplaceSkills Plan

G

233




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

June 2016

107 2016/17WorkplaceSkills PlanDeveloped andSubmittedtoLGSETA

2014/15Workplace SkillsPlanDeveloped andSubmitted toLGSETA

2016/17WorkplaceSkills PlanDeveloped andSubmittedtoLGSETAby 30 April2016

Opex HumanResources

Developed andSubmittedWorkplaceSkills Plan

CredibleWorkplace SkillsPlan

Achieved

2016/17WorkplaceSkills PlanDeveloped andSubmittedtoLGSETAon 29April 2016

N/A N/A 2016/17WorkplaceSkills Plan

H

108 Recruitmentandselection

Filling ofVacantPost

% Vacantandcriticalpositionsfilledw ithin 3months ofthe postsbeingvacant

100%Vacantandcriticalpositionsw erefilledw ithin 3monthsof thepostsbeingvacant

100%Vacantandcriticalpositionsfilledw ithin 3months ofthe postsbeingvacant

Opex Financial and

Personnel

Filledvacantandcriticalpositions

Improveservicedelivery

NotAchieved

No vacantandcriticalpositionsw ere f illedw ithin 3months ofthe postsbeingvacant.

The ActingMEC ofDepartment of LocalGovernment andHumanSettlements issued adirectivetoExecutiveMayorsand

Aw aiting forthe of ActingMEC ofDepartmentof LocalGovernmentand HumanSettlementsto report onthe openingof the postsfor themunicipalities to f ill all

InternalMemo

CouncilResolution

Office of theMEC notice

I

234




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

Mayors of municipalities inBokoneBophirimaprovinceto ceasesw ithimmediateeffect theappointments onvacantand criticalpositions.

vacant and criticalpositionsw ithin 3months ofthe postsbeingvacant.

109 PromoteandmaintainsoundLaborrelations

To maintainsound laborrelation

Number ofLaborcasesreceivedandresolved

Therew ere noreportsonlabourcasesreceived

4 Reporton Laborcasesreceivedandresolvedby 30June 2016

Opex Financial and

PersonnelResources

Reportson Laborcasesreceivedandresolved

Improved

Laborrelations

NotAchieved

1 laborcase hasbeenreceivedandresolved

The laborcases arehandledby thecourts andthere is nodate thathas beenset bylaborcourt.

Themunicipalityto requestslabor casesfrom thecourts

InternalMemo

Labor courtcases list,SettlementAgreements

J

235




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

110 Create asafe andhealthyw orkingenvironment forstaff,councilors andcommunity

To promoteEmployeeWellness

%DevelopedEmployeeHealth &Wellnessplan

Employee Health&Wellness planw as notdeveloped

100%DevelopedEmployeeHealth &Wellnessplan by 30June 2016


DevelopedEmployeeHealth &Wellnessplan

Productiveemployees as aresult ofhealthyliving

NotAchieved

EmployeeHealth &Wellnessplan w asnotdeveloped

TheEmployeeHealth &Wellnessplan is thecompetency of theDirector,and thereis noDirectorforCorporatesupportServicesto developtheEmployeeHealth &Wellnessplan

TheEmployeeHealth &Wellnessplan to bedevelopedonce theDirector forCorporatesupportServices hasbeenappointed.

OrganizationalStructure

C

111 PromoteandmaintainsoundLabourrelations

To maintainsoundlabourrelation

Number ofLocalLabourforumsmeetingsheld

Only 2LocallabourForumsmeetings w ereheld

4 LocalLabourForumsmeetingsheld by 30June 2016


ConvenedLocalLabourForumsmeetings

Improved

Labourrelations

Achieved

4 LocalLaborForumsmeetings

N/A N/A Minutes ofthemeetingsandattendanceregister

K

236




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

held

112 Ensuringsubmission ofPMSReportsandConductedreview s

To ensurethat PMSReports aresubmittedon time andreview sconducted

%performanceassessment ofHeadsandManagers

HeadsandManagers w erenotassessed

100%performanceassessment ofHeadsandManagersby 30September 2015


Assessedperformance ofHeadsandManagers

Monitoredperformance ofMunicipaloff icials

NotAchieved

Noperformanceassessment ofHeadsandManagers

NofunctionalPMS unitto performperformanceassessment forHeadsandManagers

To appointPMS staff inthe nextf inancialyear.

InternalMemo

L

113 Promotecustomerfeedback

To ensuresatisfactiononconsultations andapproachdeliverance

Number ofreports onBathoPelePrinciplesdeveloped

Noreportsw eredeveloped onBathoPelePrinciples

4 reportson BathoPelePrinciplesdevelopedby 30June 2016


Reportson BathoPelePrinciples

Customercare

NotAchieved

No reportsw eredevelopedon BathoPelePrinciples

The BathoPelePrinciplesnotdevelopedand notoperational hence noreportsdeveloped

Reports tobedevelopedonce theBatho PelePrinciples isdeveloped inthe nextf inancialyear

Internalmemo

M

237




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

114 ToensureeffectiveSoundAdministrativeand

LegalSupportServices

ProvideSoundAdministrative andlegalSupportServices

% legalopinionsissuedw ithin areasonable time ( Allrequestsattendedw ithin aminimumof 2 daysand 7daysmaximum)

100%Turnaround timeon legalopinionsissued

100%legalopinionsissuedw ithin areasonable time ( Allrequestsattendedw ithin aminimumof 2 daysand 7daysmaximum)by 30June 2016


Legalopinionsissued

Compliance w ithSALGAcollectiveagreements

Achieved

100%Turnaround time onlegalopinionsissuedw ithin areasonable time ( Allrequestsattendedw ith in aminimumof 2 daysand 7daysmaximum)by 30June 2016

N/A N/A Report onlegalopinionsissued

Internalmemo

Letter toAttorneys

N

115 EffectiveandSoundadministration

To ensureeffectiveSoundAdministrative andLegalSupport

Number ofBy-law spromulgated(published)

08 By-law sw erepromulgated(published

12 By-law spromulgated(published) by 30

Opex Financial and

PersonnelResour

PublishedBy-law s

Improvedadministration

NotAchieved

07 By-law s werenotpromulgat

Legalteamprocessing thestagesthatshould be

Theremainingby-law s tobepromulgatedin the nextf inancial

List of ByLaw s

N

238




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

Services June 2016 ces ed(published) by 30June 2016

follow ed beforepromulgating theremainingby-law s

year

116 To ensureeffectiveSoundAdministrative andlegalSupportServices

%Updatedcontractmanagementregister

Thecontractmanagementregisteris notmaintained.

100%Updatedcontractmanagementregister30 June2016


Updatedcontractmanagementregister

Effectivemonitoring ofmunicipalprojects”

NotAchieved

Thecontractmanagementregister isnotmaintained.

The Legalsectiondoes notkeep thecontractw ith them;they onlypreparecontractsand sendto thesectionalhead thatrequesteddrafting ofcontract.

The legalsection w illprepare aregister andkeep copiesof thecontracts inthe nextf inancialyear

List ofContracts/Biddingaw ards

N

117 Provision ofeffectiveCorporate

To provideeffectiveCorporateAdministration and

%Timeousdistribution ofagenda

Theagendadocumentsw ere

100%Timeousdistribution ofagenda


Distributed CouncilNotice/Agenda

Effective

secretariat

Achieved

Theagendadocument

N/A N/A CouncilNotice/Agenda

and Council

O

239




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

Administrationandsupport

support documents tocouncilandcommittees.(Ordinarymeetingw ithin 7daysbefore themeetingandSpecialmeetingw ithin 48hoursbefore themeeting)

100% distributedtimeously

documents tocouncilandcommittees(Ordinarymeetingw ithin 7daysbefore themeetingandSpecialmeetingw ithin 48hoursbefore themeeting

andCouncilAttendance register

services s w ere 100%distributedtimeouslyto councilandcommittees(Ordinarymeetingw ithin 7daysbefore themeetingandSpecialmeetingw ithin 48hoursbefore themeeting

Attendance register

118 Provision ofeffectiveCorporateAdminist

To provideeffectiveCorporateAdministration and

% ofminutesandattendance registercompiledfor

New KPI 100 %minutesandattendance registercompiledfor


Compiledminutesandattendance registerfor

Effective

secretariat

Achieved

100 %minutesandattendanc

N/A N/A Minutes ofthemeetings

Attendance

P

240




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

ration andsupport

support Council andcommitteesmeetings.

Council andcommitteesmeetingsby 30June 2016

Council andcommitteesmeetings

services e register compiledforCouncilandcommitteesmeetings

register

119 Improverecordmanagement

To complyw ith theNationalArchivesAct andRegulations

Number ofreportscompiledonimprovedRecordsManagementSystem

1 reportsw erecompiled onimprovedRecordsManagementSystem

4 ReportscompiledonimprovedRecordsManagementSystem by30 June2016


Compiledreports onRecordsManagementSystem

Improvedrecordsmanagement

NotAchieved

1 reportsw erecompiledonimprovedRecordsManagementSystem

The lackofmonitoringrecordmanagement bymanagement.

Reports onimprovedRecordsManagement to be donein the nextf inancialyear

Internalmemo

Q

120 EffectiveandSoundadminist

To ensureeffectiveoperationalCall Centre

Number ofReportscompiledon CallCentre

4 reportsw erecompiled on CallCentre

12Reportsoncompiledon Call


CallCentremanagement

Functional CallCentre

Achieved

4 reportsw erecompiled

N/A N/A Reports onCall Centremanagement

R

241




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

ration management

management

Centre management by 30June 2016

reports on Call Centremanagement

121 Toensurecompliance w ithoccupationalhealthandsafety

EnsureOccupational Health &SafetyEnvironment

Number ofReportscompiledoncompliance w ithOccupational HealthandSafety

1 reportw ascompiled w ithoccupationalhealthandsafety

4 Reportscompiledoncompliance w ithOccupational HealthandSafety by30 June2016


Compiledreports oncompliance w ithOccupational HealthandSafety

ImprovedOccupational HealthandSafety

NotAchieved

1 reportw ascompiledw ithoccupational healthand safety

Nocapacitated staff tocompileThe reportoncompliance ofoccupational healthand safety

All thetargetedreports oncompliancew ithoccupationalhealth andsafety to becompiled inthe nextf inancialyear.

Reports onthecompliancew ithoccupational health andsafety

Internalmemorandum

S

122 Toensuresafetyw orkenvironment

Number ofappointedt of safetyrepresentative andsafetycommittee

NoAppointment ofsafetyrepresentativeandsafetycommittee

Appointment ofsafetyrepresentative andsafetycommitteeby 30June 2016

Opex Financial and

Personnel

AppointedSafetyrepresentative andSafetycommittee

Toimprovesafety

Achieved

Appointedsafetyrepresentative andsafetycommittee

N/A N/A List ofnames ofsafetyrepresentative andminutes ofthemeetings ofthe safety

T

242




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

committee

123 Toensure

effectiveand

efficient

Communication

andTechnology

To ProvideInformationTechnology,Communications,marketingand PRservices

Number ofexternalnew slettersproducedanddelivered

2externalnew sletterproduced anddelivered

4 externalnew sletterproducedanddeliveredby 30June 2016

Opex Financial and

PersonnelResources

Externalnew slettersproducedanddelivered

Improvedcommunication

NotAchieved

2 externalnew sletterproducedanddeliveredby 30June 2016

There wasamoratorium onappointment ofservicesprovidershence theothernew sletters w ere notproducedanddelivered

Waiting forthe councilto w ithdrawmoratoriumonappointmentof servicesproviders.

Moratorium U

124 Toensure

effectiveand

efficient

Communicationand

% ofRevamping themunicipalw ebsite

Themunicipalw ebsitew as100%revamped andcontinuouslyupdated

100%Revamping themunicipalw ebsite30September 2015

Opex Personnel

Resource

Functionalmunicipalw ebsite

Improvedcommunication

NotAchieved

NoRevamping themunicipalw ebsite

There wasamoratorium onappointment ofservicesprovidershence theothernew sletter

Waiting forthe councilto w ithdrawmoratoriumonappointmentof servicesproviders.

WebsiteSnap shot

V

243




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

Technology

w ithin 24hrs of receiving content

s w ere not produced and delivered

125 To ensure

effective and

eff icient

Communication and Technology

To Provide Information Technology, Communications, marketing and PR services

Number of reports on the municipal w ebsite updates

New KPI 12 reports on the municipal w ebsite updates by 30 June 2016

Opex Personnel

Resource

Functional municipal w ebsite

Improved communication

Not Achieved

There w ere no reports compiled on the w ebsite updates

There was a moratorium on appointment of services providers hence the municipality‟s w ebsite Was not revamped

Waiting for the council to w ithdraw moratorium on appointment of services providers.

Internal Memo

W

126 To ensure

effective and

eff icient

Commu

Development of the Communication Strategy

Communication Policy and strategy developed and implemented

Communication policy and strategy w as not developed

Communication Policy and strategy developed and implemented by 31 August

Opex Personnel

Resource

Developed and Implemented Communication policy and strategy


Not Achieved

Communication policy and strategy w as not developed

There was no staff capacity to draft the communication policy and to develop the

To appoint the communication manager to draft the communication policy and to develop the

Internal Memo

X

244




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

nication and Technology.

2015 and as a result not implemented

strategy. strategy in the next f inancial year.

127 To ensure

effective and

eff icient

Communication and Technology.

Facilitation of media day events

Number of media day events facilitated

New KPI 2 media day events facilitated by December 2015

Opex Personnel

Finance

Facilitated media day events


Not Achieved

No media day events facilitated

There was a moratorium on appointment of services providers

Waiting for the council to w ithdraw moratorium on appointment of services providers.

Internal memo

Y

128 To ensure updated effective and realistic

To Provide Municipal Strategic Planning Support

Timeous submission of the f inancial year 2016/17

IDP Process Plan of 2015/16 f inancial year

Timeous submission of the f inancial year 2016/17

Opex Personnel Resource

Review ed and adopted 2016/17 IDP Process

Timeous planning of the Municipal projects to ensure

Not Achieved

IDP Process Plan of

The IDP Manager post w as vacant hence all the IDP

The appointment of the IDP Manager during the

IDP Process Plan and Council resolution

Z

245




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

Strategic Planning

IDP Process Plan to Council for review and adoption

w as review ed and adopted

IDP Process Plan to Council for review and adoption by 31 August 2015

Plan achievement of long term objectives in the 2016/16 f inancial year

2015/16 f inancial year w as not review ed and adopted by Council on time

functions due w ere not monitored properly.

year

129 To ensure updated effective and realistic Strategic Planning

Preparation for the adoption of the IDP

Timeous tabling of the 2016/2017 Draft IDP to Council

The Draft 2015/2016 IDP w as timeously tabled to Council

Timeous tabling of the 2016/2017 Draft IDP to Council by 31 March 2016

Opex Personnel

Tabling of the 2016/2017 Draft IDP

Effective administration to ensure achievement of Municipal objectives

Achieved

The Draft 2016/2017 IDP w as timeously tabled to Council by 31 March 2016

N/A N/A Draft IDP Council Resolution

AA

130 To ensure updated

Preparation for the adoption of

Timeous submission of the

The 2015/16 IDP w as

Timeous submission of the

Opex Personnel Resour

Adopted 2016/2017

Effective administration to

Not Achieved

The IDP Manager post w as

The appointment of the IDP

IDP Process Plan and Council

BB

246




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

effective and realistic Strategic Planning

the IDP 2016/2017 IDP to Council for adoption

timeously submitted

2016/2017 IDP to Council for adoption by 31 May 2016

ce IDP ensure achievement of Municipal objectives

The 2016/17 IDP w as timeously submitted by 31 May 2016 to Council for adoption

vacant hence all the IDP functions due w ere not monitored properly.

Manager during the year

resolution

131 To ensure

monitoring and

reporting on PMS

To promote a culture of performance and accountability

Number Directors w ith signed Performance agreements of the 2015/16 f inancial year

5 Directors have signed Performance agreements

7 Directors w ith signed Performance agreements of the 2015/16 f inancial year by 30 September 2015

Opex Personnel Resources

Signed performance agreement

Functioning Performance management

Not Achieved

5 Directors have signed Performance agreements

There has been change in management and The director for Planning position is vacant.

To appoint permanent or acting director for planning and for other directors (acting/permanent) to sign their performance agreement in the next f inancial year.

5 Performance Agreements

CC

132 To Review ed PMS

The PMS

Review ed PMS

Opex Person Review ed PMS

Functioning

Not No PMS To appoint staff in PMS

PMS Policy Organizatio

DD

247




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

ensure

monitoring and

reporting on PMS

Policy adopted

Policy w as not review ed and adopted

Policy adopted by 30 November 2015

nel

Resource

Policy Performance management

Achieved

The PMS Policy was not review ed and adopted

unit staff. unit to update the drafted PMS policy and send the PMS policy for review and adoption to the council in the next f inancial year

nal structure

Internal Memo

133 To ensure implementation of Strategic Planning

Development of SDBIP 2016/2017 document

2016/2017 SDBIP approved

2015/2016 SDBIP w as approved

2016/2017 SDBIP approved by 31 May 2016


Approved 2016/2017 SDBIP

Effective administration to ensure achievement of Municipal objectives

Achieved

2016/2017 SDBIP w as approved by 31 May 2016

N/A N/A 2016/2017 SDBIP and Council resolution

EE

134 To ensure

monitori

Monitoring and

reporting

Number of performance assessme

Performance assessments

4 performance assessme

Opex Personnel Resour

Assessed Senior Managers‟ performan

Functioning Performance

Not Achieved

performan

No functional PMS unit to perform

To appoint staff in PMS unit to perform

Organizational structure

Annexure C

248




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

ng and

reporting on PMS

on PMS nts held w ith senior managers

w ere not held w ith senior manager

nts to be held w ith senior manager by 30 June 2016

ce ce management

ce assessments w ere not held w ith senior manager

performance assessment for senior managers

performance assessment for senior managers in the next f inancial year

KPA: MUNICIPAL FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY




Baseline


Budget

Input Indicators

Output Indicators

Outcome

Indicators



Remedial Action


Annexure

135 Promote accountability & transparency

To promote accountability & transparency

Timeous Submissions of Annual Financial Statement to Office of the Auditor General

Annual Financial Statement submitted to the Office of the

Timeous Submissions of Annual Financial Statement to Office of the Auditor General

Opex Financial and Personnel Resource

Submitted Annual Financial Statement

Financial Transparent and viable municipality

Achieved

Annual Financial Statement submitted to Office of the Auditor General by 31 August

N/A N/A Annual Financial Statements

A

249

Auditor General by 31 August 2014

by 31 August 2015

2015

136 2016/2017 Budget approved by Council

2015/2016 Budget approved



Approved budget


Not Achieved

2016/2017 Budget w as not approved by Council on 31 May 2016

National Treasury advised the municipality to redraft the budget due to the deficit that occurred as per the 2014/15 Municipality's Statement of Financial Performance and hence there w as a delay for budget to be approved by council.

The Budget to be submitted to council for approval on time in the next f inancial Period

Council Resolution and budget statement

B

250

137 2016/2017 Budget Policies and Tariffs Approved by Council

2015/2016 Budget Policies and Tariffs approved



Approved Budget Policies and Tariffs


Not Achieved

2016/2017 Budget Policies and Tariffs not Approved by Council on 31 May 2016

National Treasury advised the municipality to redraft the budget due to the deficit that occurred as per the 2014/15 Municipality‟s Statement of Financial Performance and hence there w as a delay for the Budget Policies and Tariffs to be approved by council.

The Budget Related Policies and tariffs to be submitted to council for approval on time in the next f inancial Period

Council Resolution

B

138 2015/2016 Adjustment Budget approved by Council

2014/2015 Adjustment Budget approved

2015/2016 Adjustment Budget approved by Council by 31 January 2016


Approved Adjustment Budget


Not Achieved

2015/2016 Adjustment Budget not approved by Council on 31 January

National Treasury advised the municipality to redraft the budget due to the deficit that occurred as per the 2014/15 Municipality‟s

The Budget to be submitted to council for approval on time in the next f inancial Period

2015/2016 Adjustment Budget and council resolution

C

251

Statement of Financial Performance and hence there w as a delay of the Budget Policies and Tariffs to be approved by council.

139 Number of Section 71 Reports submitted to the Mayor and Provincial treasury w ithin 10 w orking days after the end of the month (Income and expenditure reports)

12 Section 71 Reports submitted

12 Section 71 Reports submitted to the Mayor and Provincial treasury w ithin 10 w orking days after the end of the month (Income and expenditure reports) by 30 June 2016


Submitted Section 71 Reports

Sound financial viability and f inancial management

Achieved

12 Section 71 Reports submitted to the Mayor and Provincial treasury w ithin 10 w orking days after the end of the month

N/A N/A Section 71 Reports and received acknow ledgement emails to North West Provincial Treasury

D

252

Number of Section 52 (Quarterly) Reports submitted to Municipal Manager

4 Section 52 (Quarterly) Reports submitted

4 Section 52 (Quarterly) Reports submitted to Municipal Manager by 30 June 2016


Submitted Section 52 (Quarterly) Reports


Not Achieved

4 Section 52 (Quarterly) Reports not submitted to Municipal Manager

Due to the instability in the occupancy of the positions of the Municipal Manager and the Chief Financial Off icer there w as no proper monitoring on compliance w ith Section 52

All the targeted reports on compliance w ith Section 52 to be compiled in the next reporting period

Copies of the reports and proof of submission to Municipal council (Council resolution)

E

140 Number of MFMA Sec 11,4(a) Consolidated quarterly reports submitted to Municipal Manager w ithin 30 days after the end of each Quarter

No 4 MFMA Sec 11,4(a) Consolidated quarterly reports

4 MFMA Sec 11,4(a) Consolidated quarterly reports submitted to Municipal Manager w ithin 30 days after the end of each Quarter


Submitted MFMA Sec 11,4(a) Consolidated quarterly reports


Not Achieved

1 MFMA Sec 11,4(a) Consolidated quarterly reports not submitted to Municipal Manager

No capacitated staff to compile the report as per the requirement of Section 11

All the targeted reports on compliance w ith Section 11 to be compiled in the next f inancial year

Internal Memo

F

253

141 % of Grants Spending on revenue received

100% of Grants Spent on revenue received

100% of Grants Spending on revenue received by 30 June 2016


Revenue Grants Spend


Target Exceeded

106% of Grants Spending on revenue received

Due to the instability in the occupancy of the positions of the Municipal Manager and the Chief Financial Off icer in the First and Second quarters there w as no proper monitoring on spending of the grants and hence the third quarter w as also affected.

Targeted expenditure to be reached in the next reporting period

Monthly Grants reports Submitted to National Treasury

G

142 Review and adoption of Revenue Enhancement strategy by Council

Revenue Enhancement strategy w as not developed

Review and adoption of Revenue Enhancement strategy by Council by 30 September 2015


Revenue Enhancement strategy review ed and adopted.


Not Achieved

Revenue Enhancement strategy not review and adoption of by Council on 30

The preparation of Revenue Enhancement strategy w as delayed due to late submission of inputs required

Draft Revenue Enhancement Strategy to be prepared in the next quarter

Revenue Enhancement Strategy

H

254

September 2015

by Official Heads from different municipality's directorates.

Number Monthly Billing reports issued by 19th of each month

12 Monthly Billing reports issued

12 Monthly Billing reports issued by 19th of each month


Issued monthly billing reports


Achieved

12 Monthly Billing reports issued

N/A N/A Monthly Billing reports

I

143 Number of Debtors Analysis Management Report submitted to council

12 Debtors Analysis Management Report submitted

12 Debtors Analysis Management Report submitted to council by 30 June 2016


Submitted Debtors Analysis Management Report


Achieved

12 Debtors Analysis Management Report submitted to council

N/A N/A Debtors Analysis Management Report

J

255

144 % Improvement on revenue collection

Revenue collection w as at 79%

80% Improvement on revenue collection by 30 June 2016


Revenue Enhancement strategy review ed and adopted.


Achieved

68% Improvement on revenue collection

Due to the instability in the occupancy of the positions of the Municipal Manager and the Chief Financial Off icer there w as no proper guidance on how to Improvement on revenue collection

To improve on revenue collection by the next f inancial year.

Monthly Income Analysis reports

K

Number of Report on Bad Debt Written-off submitted to council

No 2 Report on Bad Debt Written-offsubmitted

2 Report on Bad Debt Written-off submitted to council by 30 June 2016


Bad Debt Written-off report submitted


Not Achieved

No report on Bad Debt Written-off submitted to council

Due to the instability in the occupancy of the positions of the Municipal Manager and the Chief Financial Off icer there w as no proper guidance on how the process of bad debts w rite-offs

The bad debts w rite-off procedures to be carried out in the next f inancial period

Internal Memo

L

256

should be executed.

145 Number Indigents households receiving Free Basic Services

No 5000 Indigents households receiving Free Basic Services

5593 Indigents households receiving Free Basic Services by 30 June 2016


Indigents households register

Free basic services

Not Achieved

No Indigents households receiving Free Basic Services

The municipality still in progress of compiling the indigents register per 31 w ards

On completion of the indigents register the municipality w ill provide Indigents households w ith Free Basic Services

Schedule for visitation to w ards

Internal Memo

M

146 Number of MFMA Sec 64.2(h) Revenue reconciliation report submitted to the Accounting off icer

12 MFMA Sec 64.2(h) Revenue reconciliation reports submitted

12 MFMA Sec 64.2(h) Revenue reconciliation report submitted to the Accounting off icer by 30 June 2016


Submitted MFMA Sec 64.2(h) Revenue reconciliation report


Achieved

12 MFMA Sec 64.2(h) Revenue reconciliation reports submitted to the Accounting off icer

N/A N/A MFMA Sec 64.2(h) Revenue reconciliation reports

N

257

147 Expenditure management and controls

Number of MFMA Sec 65(2)(F) reports that Comply w ith statutory commitments submitted to the Accounting off icer (tax, levies, duties, pension, medical aid audit and SALGA Fees

12 MFMA Sec 65(2)(F) reports that Comply w ith statutory commitments submitted

12 MFMA Sec 65(2)(F) reports that Comply w ith statutory commitments submitted to the Accounting off icer (tax, levies, duties, pension, medical aid audit and SALGA Fees by 30 June 2016


Submitted MFMA Sec 65(2)(F) reports that Comply w ith statutory commitments


Achieved

12 MFMA Sec 65(2)(F) reports submitted to the accounting off icer

N/A N/A MFMA Sec 65(2)(F) reports

O

148 Number of reports submitted to Council % of operational budget spent on repairs and maintenance

4 reports submitted on repairs and maintenance

4 reports submitted to Council on the % of operational budget spent on repairs and maintenance submitte


Submitted repairs and maintenance report


Achieved

4 Reports submitted to Council on the % of operational budget spent on repairs and maintenance

N/A N/A MFMA 71 Reports - Repairs and maintenance

P

258

d to the council by 30 June 2016

Number of MFMA Sec 65(2)h Positive monthly w orking capital (cash f low ) report submitted to council

12 MFMA Sec 65(2)h Positive monthly w orking capital (cash f low ) report submitted

12 MFMA Sec 65(2)h Positive monthly w orking capital (cash f low ) report submitted to council by 30 June 2016


Submitted cash f low report


Achieved

12 MFMA Sec 65(2)h Positive monthly w orking capital (cash flow) report submitted to council

N/A N/A MFMA 71 Reports - Cash Flow Analysis

Q

149 Number of 2014/2015 Audit remedial plan presented to council

New KPI

1 2014/2015 Audit remedial plan presented to council by 30 June 2016


Presented Audit remedial plan

Improved audit opinion and improved f inancial and non-financial performance of the municipality

Achieved

Tabling of 2014/2015 Audit remedial plan presented to council

N/A N/A Audit remedial Plan

R

150 Number of reports on implementation

1 report on implementatio

4 reports on implementation of the 2014/20


Compiled reports on implementation of the

Improved audit opinion and improved f inancial

Not achieved

No report prepared on the

Due to the instability in the occupancy of the positions

Reports to be prepared in the next quarter

Internal Memo

S

259

of the 2014/2015 Audit remedial plan

n of the 2013/14 Audit recovery report

15 Audit remedial plan by 30 June 2016

2014/2015 Audit remedial plan

and non-financial performance of the municipality

implementation of the 2014/2015 Audit remedial plan

of the Municipal Manager and the Chief Financial Off icer there w as no proper monitoring of the implementation of the Audit remedial plan

151 Number of Asset Committee meetings held

New KPI

4 of Asset Committee meetings held by 30 June 2016


Held Asset Committee meetings

Municipal assets managed

Not Achieved

Asset committee meeting w as never held

Due to the instability in the occupancy of the positions of the Municipal Manager and the Chief Financial Off icer there w as no proper monitoring on spending of the grants

The meeting to be held in the next quarter

Internal Memo

T

260

152 % completion of Immovable Fixed Asset Register

Immovable asset register is 100% completed

100% completion of Immovable Fixed Asset Register by 30 June 2016


Completed Immovable Fixed Asset Register

Municipal assets managed

Achieved

100% completion of Immovable Fixed Asset Register by 30 June 2016

N/A N/A Immovable Fixed Asset Register

U

153 Achieve clean audit

Number of Financial management trainings for directors; heads and managers

No financial management training w as scheduled for Directors and Managers

4 Financial management trainings for directors; heads and managers by 30 June 2016


Trained directors; heads and managers

Skilled Directors and Managers

Not Achieved

No Financial management trainings for directors; heads and managers

Due to instability in the occupancy of the positions of the Municipal Manager and the Chief Financial Off icer there w as no monitoring of the trainings to be held

Targeted Trainings to be held in the next f inancial period

Training reports

Attendance register

V

154 Timeous submission of 2015/16 procurement plans for all departments

The departments did not submit 2014/15 procure

Timeous submission of 2015/16 procurement plans for all departments by


Submitted departmental procurement plans

Effective and fair procurement of goods and services

Not Achieved

2015/16 procurement plans for all departments not submitted

The Supply chain management is not centralised and there is a shortage of staff in

To appoint staff in Supply Chain Management Section in the next f inancial year

Internal Memo

W

261

ment plans.

30 August 2015

Supply Chain Management Section

155 Supply Chain Management

Number of reports on Centralization of Supply Chain Management Section




Supply Chain Management Section Centralized

Effective Supply Chain Management

Not Achieved


The Supply chain management is not centralised and there is a shortage of staff in Supply Chain Management Section

To appoint staff in Supply Chain Management Section in the next f inancial year

Internal Memo

X

156 Number of MFMA Sec 32 Reports on Deviation, Fruitless and Irregular expenditure submitted to council

No 4 MFMA Sec 32 Reports

4 MFMA Sec 32 Reports on Deviation, Fruitless and Irregular expenditure submitted to council by 30 June 2016


Submitted Reports on Deviation, Fruitless and Irregular expenditure

Sound financial viability and sustainability

Not Achieved

No MFMA Sec 32 Reports on Deviation, Fruitless and Irregular expenditure submitted to council

No capacitated staff to perform the Fruitless and Irregular expenditure reports

The municipality appointed consultants to prepare the Irregular expenditure Schedules .The reports w ill be compiled in the next reporting period

Internal Memo

Y

262

157 Number of MSA Sec 21 Monthly reports on aw arded bids advertised on municipal w ebsite and National Treasury

No 12 MSA Sec 21 Monthly reports

12 MSA Sec 21 Monthly reports on aw arded bids advertised on municipal w ebsite and National Treasury by 30 June 2016


Monthly reports on aw arded bids advertised on municipal w ebsite

Functional Supply Chain Management

Achieved

MSA Sec 21 Monthly reports on aw arded bids advertised on municipal w ebsite and National Treasury

N/A N/A MSA Sec 21 Monthly reports

Z

158 Financial Management System Managed

% Utilization of the system by staff and management daily

100% Utilization of the f inancial management system by staff and management daily



System used


Achieved


N/A N/A Munsoft system logins audit report

AA

160 % Monitoring of the backup monthly

New KPI

100% monitoring of the back up


Back-ups monitored


Achieved

100% monitoring of the backup monthly

N/A N/A Munsoft DR Report

BB

263

161 % monitoring the functionality of document management system by 30 June 2016

New KPI



System monitored


Achieved


N/A N/A Orbit Munsoft system logins report

CC

264

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

INTRODUCTION

The municipality had a total of 689 employees and 62 councilors for 2015/16 financial year they also appointed 1 new employee and lost 42 due to terminations.

T 4.0.1

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL

4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES

Description

Year 2014/15 Year 2015/16

Employees

Approved Posts

Employees

Vacancies

Vacancies

No. No. No. No. %

Water & Sanitation 66 103 60 43 42%

Electricity 10 20 8 12 60%

Waste Management 83 173 77 96 55%

Roads & Storm water Drainage 59 91 57 34 37%

Transport 1 1 1 0 0%

Planning (LED & Town Planning) 16 18 15 3 17%

Councilors (Strategic & Regulatory) 62 62 59 3 4%

Community & Social Services (Parks, Libraries & Cemeteries) 190 195 183 12 6%

265

Security and Safety 101 115 97 18 %

Corporate Services 78 84 73 11 %

Finance 65 71 59 12 %

Totals 731 933 689 244 0

Vacancy Rate: Year 2015/16

Designations *TotalApprovedPosts

*Vacancies(Total timethatvacanciesexist usingfulltimeequivalents)

*Vacancies(as aproportionof totalposts ineachcategory)

No. No. %

Municipal Manager 1 0 0,00

CFO 1 0 0,00

Other S57 Managers (excluding Finance Posts)

5 4 80,00

Traffic officers 57 12 21.05

Fire fighters 58 5 8,62

Senior management: Levels 0-3 (excluding Finance Posts) Professionals & Managers 15 15 100,00

Senior management: Levels 0-3 (Finance posts) 5 1 20,00

Highly skilled supervision: levels 4-8 (excluding Finance posts) 136 2 1,47

Highly skilled supervision: levels 4-8 Finance 71 5 7,04

Highly skilled supervision: levels 9-12 (excluding Finance posts) 22 4 18,18

266

Other staff member 562 196 34,88

Total 933 244 26,15

T 4.1.2

Turn-over Rate Details Total Appointments

as of beginning of Financial Year

Terminations during the Financial Year

Turn-over Rate*

No. No.

2013/14 8 8 100% 2014/15 9 22 244% 2015/16 1 44 4400%

T 4.1.3

267

COMMENT ON VACANCIES AND TURNOVER:

The Acting MEC of Department of Local Government and Human Settlements issued a directive to Executive Mayors and Mayors of all municipalities in Bokone Bophirima province to ceases with immediate effect the appointments on vacant and critical positions. The municipality only appointed 1 permanent position before the Moratorium was stated.

T 4.1.4

268

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT

Workforce decisions are taken at management forums which compose of Department‟sDirectors, LLF members and council.

T 4.2.0

269

4.2 POLICIES

HR Policies and Plans Name of Policy Completed Reviewed Date adopted by

council or comment on failure to adopt

% % 1 Code of Conduct for employees N/A N/A Delay to conduct a policy

workshop 2 Delegations, Authorisation & Responsibility

3 HIV/Aids 4 Human Resource and

Development 5 Job Evaluation 6 Leave 7 Occupational Health and Safety 8 Official Housing 9 Bereavement 10 Overtime 11 Organisational Rights 12 Performance Management and

Development 13 Recruitment, Selection and

Appointments 14 Remuneration 15 Sexual Harassment 16 Smoking 17 Training and Development 18 Incapacity due to ill Health 19 Attendance and Punctuality 20 Employment Equity 21 Relocation 22 Employees under the influence

of Intoxicating substances 23 Placement 24 Private Work and Declaration of

Interest 25 Placement 26 Appointment to Acting Positions 27 Engagement of Temporary

Staff 28 Internship 29 Other:

T 4.2.1

270

COMMENT ON WORKFORCE POLICY DEVELOPMENT:

The above mention workforce policies were not reviewed by council during the 2015/16 financial years.

T 4.2.1.1

4.3 INJURIES, SICKNESS AND SUSPENSIONS

Number and Cost of Injuries on Duty Type of injury Injury

Leave Taken

Employees using injury leave

Proportion employees using sick leave

Average Injury Leave per employee

Total Estimated Cost

Days No. % Days R'000 Required basic medical attention only

None None None None None

Temporary total disablement Permanent disablement Fatal Total

T 4.3.1

Number of days and Cost of Sick Leave (excluding injuries on duty) Salary band

Total sick leave

Proportion of sick leave without medical certification

Employees using sick leave

Total employees in post*

*Averagesickleave perEmployees

Estimated cost

Days % No. No. Days R' 000 MM & Other S57 Managers 2 - 1 3 0,00 0

Senior management: Levels 0-3

58 2 10 13 0,08 0

271

Highly skilled supervision: levels 4-8

373 7 33 250 0,54 0

Highly skilled supervision (levels 9-12)

241 1 26 20 0,35 0

Other staff member

1 501 32 120 403 2,18 0

Total 2175 840% 190 689 3,16 0 * - Number of employees in post at the beginning of the year

T 4.3.2 *Average is calculated by taking sick leave in column 2 divided by totalemployees in column 5

T 4.3.3

272

COMMENT ON INJURY AND SICK LEAVE:

The municipality had no report for leave taken under injury on duty; however a total number of 190 were reported under sick leave taken by the municipal officials.

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

Head of Supply Chain Management Gross Misconduct 25/11/2015 Matter on-going

Scheduled for 13-15 July2016

T 4.3.5

273

Disciplinary Action Taken on Cases of Financial Misconduct Position Nature of Alleged

Misconduct and Rand value of any loss to the municipality

Disciplinary action taken Date Finalised

None None None None T 4.3.6

COMMENT ON SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT:

The incumbent is on suspension (paid) for more than 4 months pending finalisation of the disciplinary matter.

T 4.3.7

4.4 PERFORMANCE REWARDS

COMMENT ON PERFORMANCE REWARDS:

No performance assessment were conducted hence there are no performance awards during the year under review.

T 4.4.1.1

274

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT

The municipality develops a workplace skill plan on a yearly basis which highlights the type of trainings that needs to be conducted or offered by the municipality as per the WSP report. Those trainings help the employees to implement and develop their level of competency and to improve service delivery.

T 4.5.0

275

4.5 SKILLS DEVELOPMENT AND TRAINING

Skills Matrix

Management level

Gender

Employees in post as at 30

June 2015

Number of skilled employees required and actual as at 30 June 2016

Learnerships Skills programmes & other short courses Other forms of training Total

No.

Actual: End

of 2014/1

5

Actual: End

of 2015/1

6

2015/16

Target

Actual: End

of 2014/1

5

Actual: End

of 2015/1

6

2015/16

Target

Actual: End

of 2014/1

5

Actual: End

of 2015/1

6

2015/16

Target

Actual: End

of 2014/1

5

Actual: End

of 2015/1

6

2015/16

Target

MM and s57 Female - - - - - - - - - - - - -

Male 1 2 1 1 - - - - - - 2 1 1 Councilors, senior officials and managers

Female 31 1 1 3 3 1 1 - - - 4 2 3

Male 44 3 - - 15 2 42 - - - 18 2 42

Technicians and Professionals

Female 12 - - - 5 4 5 - - - 5 4 5

Male 96 - - - 37 15 50 - - - 37 15 50

Other Female 188 - - - 2 17 95 - - - 2 17 95

Male 346 1 - - 1 57 153 - 1 1 2 57 153

Sub total Female 231 - - - - - - - - - - -

Male 487 - - - - - - - - - - -

Total 718 7 2 4 63 96 346 1 1 70 98 349

*Registered with professional Associate Body e.g. CA (SA) T 4.5.1

276

Financial Competency Development: Progress Report* Description A.

Total number of officials employed by municipality (Regulation 14(4)(a) and (c))

B. Total number of officials employed by municipal entities (Regulation 14(4)(a) and (c)

Consolidated: Total of A and B

Consolidated: Competency assessments completed for A and B (Regulation 14(4)(b) and (d))

Consolidated: Total number of officials whose performance agreements comply with Regulation 16 (Regulation 14(4)(f))

Consolidated: Total number of officials that meet prescribed competency levels (Regulation 14(4)(e))

Financial Officials

Accounting officer 5 5 5 5 - -

Chief financial officer

- - - - - -

Senior managers 3 3 3 2 - -

Any other financial officials

41 41 4 - - -

Supply Chain Management Officials

Heads of supply chain management units

1 1 1 - - -

Supply chain management senior managers

- - - - - -

TOTAL 50 50 13 7 - - * This is a statutory report under the National Treasury: Local Government: MFMA CompetencyRegulations (June 2007) T 4.5.2

277

Skills Development Expenditure

Management level Gender

Employees as at the

beginning of the

financial year

Original Budget and Actual Expenditure on skills deve lopment Learnerships Skills programmes

& other short courses

Other forms of training

Total

No. Original Budget

(R)

Actual (R)

Original Budget

(R)

Actual (R)

Original Budget

(R)

Actual (R)

Original Budget (R)

Actual (R)

MM and S57 Female - - - - - - - - - Male 1 30000 28500 - - - - 30000 28500

Legislators, senior

officials and managers

Female 31 30000 28500 50000 46523 - - 80000 75023

Male 44 - - 30000 29900 - - 30000 29900 Technicians

and associate

professionals

Female 10 - - - - - - - -

Male 28 - - 30000 29850 - - 30000 29850 Other

professionals Female 7 - - 30000 18750 - - 30000 18750 Male 8 - - - - - - - -

Clerks Female 56 - - 150000 101800 - - 150000 101800 Male 34 - - - - - - - -

Service and sales workers

Female 5 - - - - - - - - Male 88 - - 50000 44000 - - 50000 44000

Plant and machine operators

and assemblers

Female 0 - - - - - - - -

Male 38 - - 60000 59850 - - 60000 59850

Elementary Female 122 - - - - - - - -

278

occupations Male 246 - - - - 20000 15050 20000 15050 Sub total

Female 231 30000 28500 230000 167073 - - 260000 195573 Male 487 30000 28500 110000 103750 20000 15050 140000 132250

Total 718 60000 57000 340000 270823 20000 15050 420000 342873

279

COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL COMPETENCY REGULATIONS:

All senior managers in finance have met the prescribed competency level regulation 14(4) (e). Other senior managers in other directorates have also met the competency level as prescribed.

T 4.5.4

280

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE

INTRODUCTION TO WORKFORCE EXPENDITURE

Workforce Expenditure within the Mahikeng Local Municipality is compliant with all legislative requirements governing the workplace together with collective agreement and policies. This is done through management of the recruitment process, overtime worked and capacitation of employee.

Equal or proper distribution of work to avoid overtime abuse and attending to the factors that impact negatively on staff morale and ensuring that the municipality have good productivity/performance through training and development (Value for money) and filling budgeted position

T 4.6.0

4.6 EMPLOYEE EXPENDITURE

COMMENT ON WORKFORCE EXPENDITURE:

Refer to implications for workforce ratio in Chapter 5. T 4.6.1.1

Number Of Employees Whose Salaries Were Increased Due To Their Positions Being Upgraded - None

Beneficiaries Gender Total Lower skilled (Levels 1-2) Female None

Male Skilled (Levels 3-5) Female

Male Highly skilled production (Levels 6-8)

Female Male

Highly skilled supervision (Levels9-12) Female Male

Senior management (Levels13-16) Female Male

MM and S 57 Female Male

Total 0 T 4.6.2

281

Employees Whose Salary Levels Exceed The Grade Determined By Job Evaluation

Occupation Number of employees

Job evaluation level

Remuneration level

Reason for deviation


T 4.6.3

Employees appointed to posts not approved

Department Level Date of appointment

No. appointed

Reason for appointment when no established post exist


T 4.6.4

DISCLOSURES OF FINANCIAL INTERESTS

Refer to note 37. Related Parties on the audited Annual Financial Statements (Chapter 5) below

T 4.6.6

282

CHAPTER 5 – FINANCIAL PERFORMANCE

T 5.0.1

INTRODUCTION

The Audited Annual Financial statement

283

Mahikeng Local MunicipalityFinancial statements

for the year ended 30 June 2016

284

Mahikeng Local MunicipalityFinancial Statements for the year ended 30 June 2016

General Information

Nature of business and principal activities Provision of municipal services in terms of the Municipal FinanceManagement Act No. 56 of 2003 and the Municipal System Act No. 32of 2000

Mayoral committee

Executive Mayor Cllr Seatlholo GA

Cllr Makolemako MC: MMC (Community Services)

Cllr Tabane PM: MMC (Corporate Support Services)

Cllr Mothupi HR : MMC (Finance)

Cllr Mathakathaka KG: MMC (Infrastructure)

Cllr Kgwadibane GA: MMC (Local Econimic Development)

Cllr Maloisane SSN: MMC (Planning and Development)

Cllr Moeti ME: MMC (Public Safety)

Cllr Leepile M: MMC (Tourism and Enterprise Development)

Cllr Mafete ME: MMC (Traditional Affairs and Stakeholder Relations)

Cllr Dintoe MM: MMC (Special Projects)

Cllr Diakanyo KB (Speaker)

Cllr Nebe T (Single Chief Whip)

Cllr Jabanyane MD: Chairperson (MPAC)

Accounting Officer Mr T Mokwena (Acting)

Chief Finance Officer (CFO) Mr T Mathe (Acting)

Registered office Cnr University Drive & Hector Peterson Road

Mmabatho

2735

Business address Cnr University Drive & Hector Peterson Road

Mmabatho

2735

Postal address Private Bag X63

Mmabatho

2735

Bankers Standard Bank of South Africa

Business Centre, Nelson Mandela Drive, Mahikeng, 2745

Auditors Auditor-General South Africa

285


Index

The reports and statements set out below comprise the financial statements presented to the provincial legislature:

Index Page

Accounting Officer's Responsibilities and Approval 287

Statement of Financial Position 288

Statement of Financial Performance for the year ended 30 June 2016 289

Statement of Changes in Net Assets for the year ended 30 June 2016 290

Cash Flow Statement for the year ended 30 June 2016 291

Statement of Comparison of Budget and Actual Amounts 292 - 293

Accounting Policies 294 - 316

Notes to the Financial Statements for the year ended 30 June 2016 317 - 352

Abbreviations

COID Compensation for Occupational Injuries and Diseases

CRR Capital Replacement Reserve

DBSA Development Bank of South Africa

SA GAAP South African Statements of Generally Accepted Accounting Practice

GRAP Generally Recognised Accounting Practice

GAMAP Generally Accepted Municipal Accounting Practice

HDF Housing Development Fund

IAS International Accounting Standards

IMFO Institute of Municipal Finance Officers

IPSAS International Public Sector Accounting Standards

ME's Municipal Entities

MEC Member of the Executive Council

MFMA Municipal Finance Management Act

MIG Municipal Infrastructure Grant (Previously CMIP)

286

Mahikeng Local Municipality Financial Statements for the year ended 30 June 2016

Accounting Officer's Responsibilities and Approval

The accounting officer is required by the Municipal Finance Management Act (Act 56 of 2003), to maintain adequate accounting records and is responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of the accounting officer to ensure that the financial statements fairly present the state of affairs of the municipality as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independent opinion on the financial statements and was given unrestricted access to all financial records and related data.

The financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

The financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The accounting officer acknowledges that he is ultimately responsible for the system of internal financial control established by the municipality and place considerable importance on maintaining a strong control environment. To enable the accounting officer to meet these responsibilities, the accounting officer sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the municipality and all employees are required to maintain the highest ethical standards in ensuring the municipality's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the municipality is on identifying, assessing, managing and monitoring all known forms of risk across the municipality. While operating risk cannot be fully eliminated, the municipality endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The accounting officer is of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit.

The accounting officer has reviewed the municipality's cash flow forecast for the year to 30 June 2017 and, in the light of this review and the current financial position, he is satisfied that the municipality has or has access to adequate resources to continue in operational existence for the foreseeable future.

The accounting officer certifies that the salaries, allowances and benefits of councillors as disclosed in Note 24 of these financial statements are within the upper limits of the framework envisaged in section 219 of the Constitution, read with the Renumeration of Public Office Bearers Act (Act 20 of 1998) and the Minister of Provincial and Local Government's determination in accordance with this Act.

Although the accounting officer is primarily responsible for the financial affairs of the municipality, they are supported by the municipality's external auditors.

The external auditors are responsible for independently auditing and reporting on the municipality's financial statements. The financial statements have been examined by the municipality's external auditors.

Mr Tl Mokwena Acting Municipal Manager

287


Statement of Financial Position as at 30 June 2016Figures in Rand Note(s) 2016 2015

Restated*

Assets

Current AssetsInventories 7 67,896,742 67,649,683Receivables from exchange transactions 8 24,135,036 36,195,416Receivables from non-exchange transactions 9 76,485,828 71,935,043Consumer Debtors 10 98,599,061 120,893,296Cash and cash equivalents 11 22,308,555 8,312,867

289,425,222 304,986,305

Non-Current AssetsInvestment property 4 240,961,420 224,705,000Property, plant and equipment 5 1,243,602,926 1,151,495,798Intangible assets 3 1,835,246 2,399,989

1,486,399,592 1,378,600,787

Total Assets 1,775,824,814 1,683,587,092

Liabilities

Current LiabilitiesOther financial liabilities 13 5,562,614 5,202,713Finance lease obligation 46 40,829,033 -Payables from exchange transactions 15 293,988,841 358,960,039VAT Payable 16 35,102,734 29,444,060Consumer deposits 17 8,134,948 6,972,548Unspent conditional grants and receipts 12 2,368,238 3,804,972Bank overdraft 11 13,886,394 4,007,613

399,872,802 408,391,945

Non-Current LiabilitiesOther financial liabilities 13 17,135,783 20,765,539Finance lease obligation 46 65,759,251 -Employee benefit obligation 6 265,017,000 248,910,000Provisions 14 99,325,207 99,181,869

447,237,241 368,857,408

Total Liabilities 847,110,043 777,249,353

Net Assets 928,714,771 906,337,739

Accumulated surplus 928,714,771 906,337,739

* See Note 38

288


Statement of Financial Performance for the year ended 30 June 2016Figures in Rand Note(s) 2016 2015

Restated*

Revenue

Revenue from exchange transactionsService Charges 20 158,382,015 133,277,015Rental of Facilities and Equipment 31 5,148,595 1,059,230Interest Received - Trading 52,228,304 41,624,123Licences and Permits 4,238,545 4,537,076Fees Earned 2,064,563 2,533,291Commissions Received 491,507 413,997Recoveries 1,545,922 177,068Other Income 958,818 1,167,087Interest Received - Investment 26 1,671,383 1,782,517

Total revenue from exchange transactions 226,729,652 186,571,404

Revenue from non-exchange transactions

Taxation revenueProperty Rates 19 171,125,804 142,189,789

Transfer revenueGovernment Grants & Subsidies 21 289,947,333 194,137,298Fines, Penalties and Forfeits 7,157,603 22,997,387

Total revenue from non-exchange transactions 468,230,740 359,324,474

Total revenue 18 694,960,392 545,895,878

ExpenditurePersonnel Costs 23 (243,444,061) (200,299,037)Remuneration of Councillors 24 (22,155,663) (19,339,890)Depreciation and Amortisation 27 (89,169,831) (88,582,079)Impairment loss/ Reversal of impairments (10,726,665) (74,692,480)Finance Costs 29 (8,575,184) (6,764,159)Lease rentals on operating lease (7,684,798) (1,333,082)Debt Impairment 25 (156,156,756) (158,099,697)Collection Costs (1,692,893) (965,207)Repairs and Maintenance 28 (27,220,533) (17,348,241)Bulk Purchases 33 (65,682,335) (78,557,399)Contracted Services 32 (24,947,016) (23,724,205)General Expenses 22 (83,588,617) (110,396,055)

Total expenditure (741,044,352) (780,101,531)

Operating deficit (46,083,960) (234,205,653)Loss on disposal of assets and liabilities (314,185) (592,550)Fair value adjustment 16,256,420 47,575,597

15,942,235 46,983,047

Deficit for the year (30,141,725) (187,222,606)

* See Note 38

289


Statement of Changes in Net Assets for the year ended 30 June 2016

Figures in RandAccumulated

surplusTotal netassets

Opening balance as previously reported 819,827,614 819,827,614AdjustmentsCorrection of errors 267,886,652 267,886,652

Balance at 01 July 2014 as restated* 1,087,714,266 1,087,714,266Changes in net assetsCorrection of error 5,846,079 5,846,079

Net income (losses) recognised directly in net assets 5,846,079 5,846,079Previously reported deficit for the year (221,741,834) (221,741,834)

Total recognised income and expenses for the year (215,895,755) (215,895,755)Correction of error 34,519,228 34,519,228

Total changes (181,376,527) (181,376,527)

Restated* Balance at 01 July 2015 958,856,496 958,856,496Changes in net assetsDeficit for the year (30,141,725) (30,141,725)

Total changes (30,141,725) (30,141,725)

Balance at 30 June 2016 928,714,771 928,714,771

Note(s)

* See Note 38

290


Cash Flow Statement for the year ended 30 June 2016Figures in Rand Note(s) 2016 2015

Restated*

Cash flows from operating activities

Receipts

Sale of goods and services 371,419,056 301,903,929Grants 290,044,842 194,228,001Interest income 53,899,687 43,406,640Other receipts 5,060,812 9,059,033

720,424,397 548,597,603

Payments

Employee costs (249,492,724) (180,265,039)Suppliers (369,804,945) (312,043,335)Finance costs (8,575,184) (6,584,335)

(627,872,853) (498,892,709)

Net cash flows from operating activities 34 92,551,544 49,704,894

Cash flows from investing activities

Purchase of property, plant and equipment 5 (84,850,597) (62,210,475)Proceeds from sale of property, plant and equipment 5 (314,185) 2,558,360Purchase of other intangible assets 3 - (2,136,603)

Net cash flows from investing activities (85,164,782) (61,788,718)

Cash flows from financing activities

Repayment of other financial liabilities (3,269,855) (14,454,140)

Net cash flows from financing activities (3,269,855) (14,454,140)

Net increase/(decrease) in cash and cash equivalents 4,116,907 (26,537,964)Cash and cash equivalents at the beginning of the year 4,305,254 30,843,218

Cash and cash equivalents at the end of the year 11 8,422,161 4,305,254

* See Note 38

291


Statement of Comparison of Budget and Actual AmountsBudget on Cash Basis

Figures in Rand

Approvedbudget

Adjustments Final Budget Actual amountson comparable

basis

Differencebetween finalbudget and

actual

Reference

Statement of Financial Performance

Revenue

Revenue from exchangetransactionsService charges 129,820,796 9,974,411 139,795,207 158,382,015 18,586,808 49Rental of facilities and equipment 1,604,280 4,222,638 5,826,918 5,148,595 (678,323) 49Interest earned - outstandingdebtors

35,627,244 14,300,871 49,928,115 52,228,304 2,300,189 49

Licences and permits 2,943,160 41,000 2,984,160 4,238,545 1,254,385 49Fees earned 332,838 (76,178) 256,660 2,064,563 1,807,903

Commissions received 127,200 - 127,200 491,507 364,307

Recoveries - - - 1,545,922 1,545,922

Other income 3,550,995 2,676,016 6,227,011 958,818 (5,268,193)

Interest received - investment 2,120,000 380,000 2,500,000 1,671,383 (828,617)

Gains on disposal of assets 3,558,360 - 3,558,360 - (3,558,360)

Total revenue from exchangetransactions

179,684,873 31,518,758 211,203,631 226,729,652 15,526,021

Revenue from non-exchangetransactions

Taxation revenueProperty rates 148,009,741 (5,819,952) 142,189,789 171,125,804 28,936,015

Transfer revenueGovernment grants & subsidies 256,970,000 1,130,000 258,100,000 289,947,333 31,847,333

Fines, Penalties and Forfeits 635,137 37,072 672,209 7,157,603 6,485,394

Total revenue from non-exchange transactions

405,614,878 (4,652,880) 400,961,998 468,230,740 67,268,742

Total revenue 585,299,751 26,865,878 612,165,629 694,960,392 82,794,763

ExpenditurePersonnel (217,399,872) (708,609) (218,108,481) (243,444,061) (25,335,580) 49Remuneration of councillors (22,068,900) (1,052,870) (23,121,770) (22,155,663) 966,107

Depreciation and amortisation (57,423,873) (35,365,000) (92,788,873) (89,169,831) 3,619,042

Impairment loss/ Reversal ofimpairments

- - - (10,726,665) (10,726,665) 49

Finance costs (3,242,100) - (3,242,100) (8,575,184) (5,333,084) 49Lease rentals on operating lease (561,811) (4,198,998) (4,760,809) (7,684,798) (2,923,989) 49Debt impairment (68,996,994) - (68,996,994) (156,156,756) (87,159,762) 49Collection costs (1,000,000) (214,299) (1,214,299) (1,692,893) (478,594)

Repairs and maintenance (25,733,000) - (25,733,000) (27,220,533) (1,487,533) 49Bulk purchases (80,340,000) - (80,340,000) (65,682,335) 14,657,665 49Contracted Services (17,692,480) (22,172,301) (39,864,781) (24,947,016) 14,917,765 49General Expenses (118,174,651) (31,092,485) (149,267,136) (83,588,617) 65,678,519 49

Total expenditure (612,633,681) (94,804,562) (707,438,243) (741,044,352) (33,606,109)

Operating deficit (27,333,930) (67,938,684) (95,272,614) (46,083,960) 49,188,654Loss on disposal of assets andliabilities

- - - (314,185) (314,185)

292


Statement of Comparison of Budget and Actual AmountsBudget on Cash Basis

Figures in Rand

Approvedbudget

Adjustments Final Budget Actual amountson comparable

basis

Differencebetween finalbudget and

actual

Reference

Gain on non-current assets heldfor sale or disposal groups

- - - 16,256,420 16,256,420

- - - 15,942,235 15,942,235

Deficit for the year (27,333,930) (67,938,684) (95,272,614) (30,141,725) 65,130,889

Actual Amount on ComparableBasis as Presented in theBudget and ActualComparative Statement

(27,333,930) (67,938,684) (95,272,614) (30,141,725) 65,130,889

293


Accounting Policies

1. Presentation of Financial Statements

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice(GRAP), issued by the Accounting Standards Board in accordance with Section 122(3) of the Municipal Finance ManagementAct (Act 56 of 2003).

These financial statements have been prepared on an accrual basis of accounting and are in accordance with historical costconvention as the basis of measurement, unless specified otherwise. They are presented in South African Rand.

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted by a Standardof GRAP.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these financialstatements, are disclosed below.

1.1 Presentation currency

These financial statements are presented in South African Rand, which is the functional currency of the municipality.

1.2 Going concern assumption

These financial statements have been prepared based on the expectation that the municipality will continue to operate as agoing concern for at least the next 12 months.

1.3 Significant judgements and sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions that affect the amountsrepresented in the financial statements and related disclosures. Use of available information and the application of judgementis inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material tothe financial statements. Significant judgements include:

Allowance for slow moving, damaged and obsolete stock

An allowance / provision to write down stock to the lower of cost or net realisable value is made. Management have madeestimates of the selling price and direct cost to sell on certain inventory items. The write down is included in the statement offinancial performance.

Impairment testing

The recoverable amounts of cash-generating units and individual assets have been determined based on the higher of value-in-use calculations and fair values less costs to sell. These calculations require the use of estimates and assumptions. It isreasonably possible that the [name a key assumption] assumption may change which may then impact our estimations andmay then require a material adjustment to the carrying value of goodwill and tangible assets.

The municipality reviews and tests the carrying value of assets when events or changes in circumstances suggest that thecarrying amount may not be recoverable. In addition, goodwill is tested on an annual basis for impairment. Assets are groupedat the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If thereare indications that impairment may have occurred, estimates are prepared of expected future cash flows for each group ofassets. Expected future cash flows used to determine the value in use of goodwill and tangible assets are inherently uncertainand could materially change over time. They are significantly affected by a number of factors, together with economic factorssuch as inflation interest.

Provisions

Provisions were raised and management determined an estimate based on the information available. Additional disclosure ofthese estimates of provisions are included in note 14 - Provisions.

294


Accounting Policies

1.3 Significant judgements and sources of estimation uncertainty (continued)

Useful lives

The useful lives of assets are based on management's estimation. Management considers the impact of technology, availabilityof capital funding, service requirements and required return on assets to determine the optimum useful life expectation whereappropriate. The estimation of residual values of assets is also based on management's judgement whether the assets will besold or used to the end of their useful lives, and what their conditions will be at that time. It is a subjective estimate based onmanagement's experience.

Post retirement benefits

The present value of the post retirement obligation depends on a number of factors that are determined on an actuarial basisusing a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Anychanges in these assumptions will impact on the carrying amount of post retirement obligations.

The municipality determines the appropriate discount rate at the end of each year. This is the interest rate that should be usedto determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. Indetermining the appropriate discount rate, the municipality considers the interest rates of high-quality corporate bonds that aredenominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of therelated pension liability.

Other key assumptions for pension obligations are based on current market conditions. Additional information is disclosed inNote 6.

Allowance for doubtful debts

The municipality assesses its trade receivables for impairment at the end of each reporting period. In determining whether animpairment loss should be recorded in surplus or deficit, the surplus makes judgements as to whether there is observable dataindicating a measurable decrease in the estimated future cash flows from a financial asset.

The impairment for trade receivables is calculated based on an assessment of the extent to which trade receivables havedefaulted on payments already due, and an assessment of their ability to make payments based on the history of paymentsmade for municipal services over the last twelve months. This was performed per significant trade receivables first and then forall classes of trade receivables

1.4 Investment property

Investment property is property (land or a building - or part of a building - or both) held to earn rentals or for capital appreciationor both, rather than for:

use in the production or supply of goods or services or for administrative purposes, or sale in the ordinary course of operations.

Investment property is held at fair value.

Investment property is recognised as an asset when, it is probable that the future economic benefits or service potential thatare associated with the investment property will flow to the municipality, and the cost or fair value of the investment propertycan be measured reliably.

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

Where investment property is acquired through a non-exchange transaction, its cost is its fair value as at the date ofacquisition.

Costs include costs incurred initially and costs incurred subsequently to add to, or to replace a part of, or service a property. If areplacement part is recognised in the carrying amount of the investment property, the carrying amount of the replaced part isderecognised.

295


Accounting Policies

1.4 Investment property (continued)

Fair value

Subsequent to initial measurement investment property is measured at fair value.

The fair value of investment property reflects market conditions at the reporting date whilst provisional amounts reflect theamounts determined using a reasonable basis such as the valuation roll.

The fair value of investment property reflects market conditions at the reporting date.

A gain or loss arising from a change in fair value is included in net surplus or deficit for the period in which it arises.

The fair value of investment property under construction is not determinable, it is measured at cost until the earlier of the date itbecomes determinable or construction is complete.

1.5 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in theproduction or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used duringmore than one period.

The cost of an item of property, plant and equipment is recognised as an asset when: it is probable that future economic benefits or service potential associated with the item will flow to the

municipality; and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to thelocation and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts andrebates are deducted in arriving at the cost.

Major spare parts and stand by equipment which are expected to be used for more than one period are included in property,plant and equipment. In addition, spare parts and stand by equipment which can only be used in connection with an item ofproperty, plant and equipment are accounted for as property, plant and equipment.

Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet therecognition criteria above are included as a replacement in the cost of the item of property, plant and equipment. Any remaininginspection costs from the previous inspection are derecognised.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses or fair value whereassets have been acquired by grant or donation. Similarly, land is not depreciated as it is deemed to have an indefinite life.

Where items of Property, plant and equipment have been impaired, the carrying value is adjusted by the impairment loss,which is recognised as an expense in the Statement of Financial Performance in the period that the impairment is identified.

Subsequent expenditure relating to Property, plant and equipment is capitalised if it is probable that future economic benefits orpotential service delivery capabilities of the assets are enhanced in excess of the originally assessed standard of performance.If the expenditure only restores the originally assessed standard of performance, it is regarded as repairs and maintenance,and is expensed.

The municipality maintains and acquires assets to provide a social service to the community, with no intention of disposing ofthe assets for any economic gain, and thus no residua values are determined other than for motor vehicles.

The gain or loss arising from the disposal or retirement of an item of Property, plant and equipment is determined as thedifference between the sales proceeds and the carrying value, and is recognised in the Statement of Financial Performance.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimatedresidual value.

Assets held under finance leases are depreciated over their useful lives on the same basis as owned assets or, whereappropriate, the terms of the relevant lease, and the depreciation are recognised in the Statement of Financial Performance.

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1.5 Property, plant and equipment (continued)

Assets under construction are carried at cost. Depreciation of an asset commences when the asset is ready for its intendeduse.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life

Buildings Straight line 5 - 100Furniture and fixtures Straight line 7Motor vehicles Straight line 7Office equipment Straight line 7IT equipment Straight line 5

Property,plant and equipment are reviewed at each reporting date for any indication of impairment. If any such indication exists,the asset's recoverable amount is estimated. The impairment charged to the Statement of Financial Performance is the excessof the carrying value over the recoverable amount.

An impairment is reversed only to the extent that the asset's carrying value does not exceed the carrying value that would havebeen determined had no impairment been recognised. A reversal of impairment is recognised in the Statement of FinancialPerformance.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item isdepreciated separately.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount ofanother asset.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economicbenefits or service potential expected from the use or disposal of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit whenthe item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment isdetermined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

1.6 Site restoration and dismantling cost

Where the municipality has an obligation to dismantle, remove and restore items of property, plant and equipment, suchobligations are referred to as ‘decommissioning, restoration and similar liabilities’. These costs include the initial estimate ofthe costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which anmunicipality incurs either when the item is acquired or as a consequence of having used the item during a particular periodfor purposes other than to produce inventories during that period. The costs are capitalised to the cost of the relevantassets.

If the related asset is measured using the cost model:(a) subject to (b), changes in the liability are added to, or deducted from, the cost of the related asset in the current

period;(b) if a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised immediately in

surplus or deficit; and(c) if the adjustment results in an addition to the cost of an asset, the municipality considers whether this is an

indication that the new carrying amount of the asset may not be fully recoverable. If it is such an indication, theasset is tested for impairment by estimating its recoverable amount or recoverable service amount, and anyimpairment loss is recognised in accordance with the accounting policy on impairment of cash-generating assetsand/or impairment of non-cash-generating assets.

1.7 Intangible assets

An intangible asset is an identifiable non-monetary asset without physical substance.

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1.7 Intangible assets (continued)

An asset is identifiable if it either: is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or

exchanged, either individually or together with a related contract, identifiable assets or liability, regardless ofwhether the entity intends to do so; or

arises from binding arrangements (including rights from contracts), regardless of whether those rights aretransferable or separable from the municipality or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were inthe form of a contract.

An intangible asset is recognised when: it is probable that the expected future economic benefits or service potential that are attributable to the asset will

flow to the municipality; and the cost or fair value of the asset can be measured reliably.

The municipality assesses the probability of expected future economic benefits or service potential using reasonable andsupportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over theuseful life of the asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measuredat its fair value as at that date.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeablelimit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is notprovided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that theasset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator thatthe asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised overits useful life.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful lifeLicenses and franchises 5 yearsComputer software, other 5 years

Intangible assets are derecognised: on disposal; or when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising from the derecognition of an intangible assets is included in surplus or deficit when the asset isderecognised (unless the Standard of GRAP on leases requires otherwise on a sale and leaseback).

1.8 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residualinterest of another entity.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability ismeasured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effectiveinterest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly orthrough the use of an allowance account) for impairment or uncollectibility.

A concessionary loan is a loan granted to or received by an entity on terms that are not market related.

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1.8 Financial instruments (continued)

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to dischargean obligation.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inforeign exchange rates.

Derecognition is the removal of a previously recognised financial asset or financial liability from an entity’s statement offinancial position.

The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or group offinancial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period. Theeffective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life ofthe financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financialliability. When calculating the effective interest rate, an entity shall estimate cash flows considering all contractual terms of thefinancial instrument (for example, prepayment, call and similar options) but shall not consider future credit losses. Thecalculation includes all fees and points paid or received between parties to the contract that are an integral part of the effectiveinterest rate (see the Standard of GRAP on Revenue from Exchange Transactions), transaction costs, and all other premiumsor discounts. There is a presumption that the cash flows and the expected life of a group of similar financial instruments can beestimated reliably. However, in those rare cases when it is not possible to reliably estimate the cash flows or the expected lifeof a financial instrument (or group of financial instruments), the entity shall use the contractual cash flows over the fullcontractual term of the financial instrument (or group of financial instruments).

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties inan arm’s length transaction.

A financial asset is: cash; a residual interest of another entity; or a contractual right to:

- receive cash or another financial asset from another entity; or- exchange financial assets or financial liabilities with another entity under conditions that are potentiallyfavourable to the entity.

A financial liability is any liability that is a contractual obligation to: deliver cash or another financial asset to another entity; or exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket interest rates.

Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financialliabilities that are settled by delivering cash or another financial asset.

Loans payable are financial liabilities, other than short-term payables on normal credit terms.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factorsspecific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in themarket.

A financial asset is past due when a counterparty has failed to make a payment when contractually due.

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset orfinancial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued ordisposed of the financial instrument.

Financial instruments at amortised cost are non-derivative financial assets or non-derivative financial liabilities that have fixedor determinable payments, excluding those instruments that:

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1.8 Financial instruments (continued) the entity designates at fair value at initial recognition; or are held for trading.

Financial instruments at fair value comprise financial assets or financial liabilities that are: derivatives; combined instruments that are designated at fair value; instruments held for trading. A financial instrument is held for trading if:

- it is acquired or incurred principally for the purpose of selling or repurchasing it in the near-term; or- on initial recognition it is part of a portfolio of identified financial instruments that are managed together and forwhich there is evidence of a recent actual pattern of short term profit-taking;- non-derivative financial assets or financial liabilities with fixed or determinable payments that are designated atfair value at initial recognition; andfinancial instruments that do not meet the definition of financial instruments at amortised cost or financialinstruments at cost.

Classification

The entity has the following types of financial assets (classes and category) as reflected on the face of the statement offinancial position or in the notes thereto:

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Class CategoryReceivables from Exchange Transactions Financial asset measured at amortised costReceivables from Non-Exchange Transactions Financial asset measured at amortised costConsumer Debtors Financial asset measured at amortised costMoney Market Investments Financial asset measured at amortised costCash and Cash Equivalents Financial asset measured at amortised cost

The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement offinancial position or in the notes thereto:

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Class CategoryOther Financial Liabilities Financial liability measured at amortised costTrade and Other Payables Financial liability measured at amortised costVAT Payable Financial liability measured at amortised costConsumer Deposits Financial liability measured at amortised costRetirement Benefit Obligation Financial liability measured at amortised cost

Initial recognition

The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes aparty to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are directlyattributable to the acquisition or issue of the financial asset or financial liability.

The entity measures a financial asset and financial liability initially at its fair value [if subsequently measured at fair value].

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Subsequent measurement of financial assets and financial liabilities

The entity measures all financial assets and financial liabilities after initial recognition using the following categories: Financial instruments at fair value. Financial instruments at amortised cost. Financial instruments at cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Fair value measurement considerations

The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, theentity establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish what thetransaction price would have been on the measurement date in an arm’s length exchange motivated by normal operatingconsiderations. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willingparties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flowanalysis and option pricing models. If there is a valuation technique commonly used by market participants to price theinstrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual markettransactions, the entity uses that technique. The chosen valuation technique makes maximum use of market inputs and reliesas little as possible on entity-specific inputs. It incorporates all factors that market participants would consider in setting a priceand is consistent with accepted economic methodologies for pricing financial instruments. Periodically, an municipalitycalibrates the valuation technique and tests it for validity using prices from any observable current market transactions in thesame instrument (i.e. without modification or repackaging) or based on any available observable market data.

Reclassification

The entity does not reclassify a financial instrument while it is issued or held unless it is: combined instrument that is required to be measured at fair value; or an investment in a residual interest that meets the requirements for reclassification.

Gains and losses

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value isrecognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficitwhen the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assets

The entity assess at the end of each reporting period whether there is any objective evidence that a financial asset or group offinancial assets is impaired.

Financial assets measured at cost:

If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is notmeasured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is measured asthe difference between the carrying amount of the financial asset and the present value of estimated future cash flowsdiscounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed.

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Derecognition

Financial assets

The entity derecognises financial assets using trade date accounting.

The entity derecognises a financial asset only when: the contractual rights to the cash flows from the financial asset expire, are settled or waived; the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has

transferred control of the asset to another party and the other party has the practical ability to sell the asset in itsentirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to imposeadditional restrictions on the transfer. In this case, the entity :- derecognise the asset; and- recognise separately any rights and obligations created or retained in the transfer.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of theconsideration received is recognised in surplus or deficit.

Financial liabilities

The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when it isextinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred toanother party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised insurplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transactionare accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes andTransfers).

Presentation

Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense insurplus or deficit.

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial positionwhen the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a netbasis, or to realise the asset and settle the liability simultaneously.

1.9 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease isclassified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair valueof the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor isincluded in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The financecharge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balanceof the liability.

Any contingent rents are expensed in the period in which they are incurred.

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1.9 Leases (continued)

Operating leases - lessor

Operating lease revenue is recognised as revenue on a straight-line basis over the lease term.

Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased assetand recognised as an expense over the lease term on the same basis as the lease revenue.

The aggregate cost of incentives is recognised as a reduction of rental revenue over the lease term on a straight-line basis.

Income for leases is disclosed under revenue in statement of financial performance.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference betweenthe amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

1.10 Inventories

Inventories consist of raw materials, work in progress, consumables, finished goods and unsold properties.

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then theircosts are their fair value as at the date of acquisition.

Subsequently inventories are measured at the lower of cost and net realisable value.

Inventories are measured at the lower of cost and current replacement cost where they are held for; distribution at no charge or for a nominal charge; or consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Net realisable value is the estimated selling price in the ordinary course of operations less the estimated costs of completionand the estimated costs necessary to make the sale, exchange or distribution.

The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing theinventories to their present location and condition. Where inventories are acquired at no cost, or for nominal consideration, thecost is deemed to be the fair value as at date of acquisition. Cost is generally using the first-in-first-out principle except wherestated otherwise.

Unsold properties are measured at the lower of cost and net realisable value. Cost is primarily determined by reference to thevaluation roll values as at the date of initial recognition or total cost of servicing the land. Net realisable values are based on thelatest valuation roll values less estimated cost to sell.

The cost of inventories is assigned using the first-in, first-out (FIFO) formula. The same cost formula is used for all inventorieshaving a similar nature and use to the municipality.

When inventories are sold, the carrying amounts of those inventories are recognised as an expense in the period in which therelated revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are distributed, orrelated services are rendered. The amount of any write-down of inventories to net realisable value or current replacement costand all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of anyreversal of any write-down of inventories, arising from an increase in net realisable value or current replacement cost, arerecognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1.11 Impairment of cash-generating assets

Cash-generating assets are assets managed with the objective of generating a commercial return. An asset generates acommercial return when it is deployed in a manner consistent with that adopted by a profit-oriented entity.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognitionof the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting anyaccumulated depreciation and accumulated impairment losses thereon.

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1.11 Impairment of cash-generating assets (continued)

A cash-generating unit is the smallest identifiable group of assets managed with the objective of generating a commercialreturn that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets orgroups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income taxexpense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction betweenknowledgeable, willing parties, less the costs of disposal.

Recoverable amount of an asset or a cash-generating unit is the higher its fair value less costs to sell and its value in use.

Useful life is either:(a) the period of time over which an asset is expected to be used by the municipality; or(b) the number of production or similar units expected to be obtained from the asset by the municipality.

Identification

When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.

The municipality assesses at each reporting date whether there is any indication that a cash-generating asset may beimpaired. If any such indication exists, the municipality estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the municipality also test a cash-generating intangible asset withan indefinite useful life or a cash-generating intangible asset not yet available for use for impairment annually by comparing itscarrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangibleasset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the endof the current reporting period.

Value in use

Value in use of a cash-generating asset is the present value of the estimated future cash flows expected to be derived from thecontinuing use of an asset and from its disposal at the end of its useful life.

When estimating the value in use of an asset, the municipality estimates the future cash inflows and outflows to be derivedfrom continuing use of the asset and from its ultimate disposal and the municipality applies the appropriate discount rate tothose future cash flows.

Basis for estimates of future cash flows

In measuring value in use the municipality: base cash flow projections on reasonable and supportable assumptions that represent management's best estimate

of the range of economic conditions that will exist over the remaining useful life of the asset. Greater weight is givento external evidence;

base cash flow projections on the most recent approved financial budgets/forecasts, but excludes any estimatedfuture cash inflows or outflows expected to arise from future restructuring's or from improving or enhancing theasset's performance. Projections based on these budgets/forecasts covers a maximum period of five years, unless alonger period can be justified; and

estimate cash flow projections beyond the period covered by the most recent budgets/forecasts by extrapolating theprojections based on the budgets/forecasts using a steady or declining growth rate for subsequent years, unless anincreasing rate can be justified. This growth rate does not exceed the long-term average growth rate for theproducts, industries, or country or countries in which the entity operates, or for the market in which the asset is used,unless a higher rate can be justified.

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Composition of estimates of future cash flows

Estimates of future cash flows include: projections of cash inflows from the continuing use of the asset; projections of cash outflows that are necessarily incurred to generate the cash inflows from continuing use of the

asset (including cash outflows to prepare the asset for use) and can be directly attributed, or allocated on areasonable and consistent basis, to the asset; and

net cash flows, if any, to be received (or paid) for the disposal of the asset at the end of its useful life.

Estimates of future cash flows exclude: cash inflows or outflows from financing activities; and income tax receipts or payments.

The estimate of net cash flows to be received (or paid) for the disposal of an asset at the end of its useful life is the amount thatthe municipality expects to obtain from the disposal of the asset in an arm's length transaction between knowledgeable, willingparties, after deducting the estimated costs of disposal.

Discount rate

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money, represented by thecurrent risk-free rate of interest and the risks specific to the asset for which the future cash flow estimates have not beenadjusted.

Cash-generating units

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is notpossible to estimate the recoverable amount of the individual asset, the municipality determines the recoverable amount of thecash-generating unit to which the asset belongs (the asset's cash-generating unit).

If an active market exists for the output produced by an asset or group of assets, that asset or group of assets is identified as acash-generating unit, even if some or all of the output is used internally. If the cash inflows generated by any asset or cash-generating unit are affected by internal transfer pricing, the municipality use management's best estimate of future price(s) thatcould be achieved in arm's length transactions in estimating:

the future cash inflows used to determine the asset's or cash-generating unit's value in use; and the future cash outflows used to determine the value in use of any other assets or cash-generating units that are

affected by the internal transfer pricing.

Cash-generating units are identified consistently from period to period for the same asset or types of assets, unless a changeis justified.

The carrying amount of a cash-generating unit is determined on a basis consistent with the way the recoverable amount of thecash-generating unit is determined.

An impairment loss is recognised for a cash-generating unit if the recoverable amount of the unit is less than the carryingamount of the unit. The impairment is allocated to reduce the carrying amount of the cash-generating assets of the unit on apro rata basis, based on the carrying amount of each asset in the unit. These reductions in carrying amounts are treated asimpairment losses on individual assets.

In allocating an impairment loss, the entity does not reduce the carrying amount of an asset below the highest of: its fair value less costs to sell (if determinable); its value in use (if determinable); and zero.

The amount of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the othercash-generating assets of the unit.

Where a non-cash-generating asset contributes to a cash-generating unit, a proportion of the carrying amount of that non-cash-generating asset is allocated to the carrying amount of the cash-generating unit prior to estimation of the recoverableamount of the cash-generating unit.

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Reversal of impairment loss

The municipality assess at each reporting date whether there is any indication that an impairment loss recognised in priorperiods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entityestimates the recoverable amount of that asset.

An impairment loss recognised in prior periods for a cash-generating asset is reversed if there has been a change in theestimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carryingamount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss. The increasedcarrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that wouldhave been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in priorperiods.

A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit.

Any reversal of an impairment loss of a revalued cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the cash-generating asset isadjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on asystematic basis over its remaining useful life.

Redesignation

The redesignation of assets from a cash-generating asset to a non-cash-generating asset or from a non-cash-generating assetto a cash-generating asset only occur when there is clear evidence that such a redesignation is appropriate.

1.12 Employee benefits

Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees.

A qualifying insurance policy is an insurance policy issued by an insurer that is not a related party (as defined in the Standardof GRAP on Related Party Disclosures) of the reporting entity, if the proceeds of the policy can be used only to pay or fundemployee benefits under a defined benefit plan and are not available to the reporting entity’s own creditors (even in liquidation)and cannot be paid to the reporting entity, unless either:

the proceeds represent surplus assets that are not needed for the policy to meet all the related employee benefitobligations; or

the proceeds are returned to the reporting entity to reimburse it for employee benefits already paid.

Termination benefits are employee benefits payable as a result of either: an entity’s decision to terminate an employee’s employment before the normal retirement date; or an employee’s decision to accept voluntary redundancy in exchange for those benefits.

Other long-term employee benefits are employee benefits (other than post-employment benefits and termination benefits) thatare not due to be settled within twelve months after the end of the period in which the employees render the related service.

Vested employee benefits are employee benefits that are not conditional on future employment.

Composite social security programmes are established by legislation and operate as multi-employer plans to provide post-employment benefits as well as to provide benefits that are not consideration in exchange for service rendered by employees.

A constructive obligation is an obligation that derives from an entity’s actions where by an established pattern of past practice,published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certainresponsibilities and as a result, the entity has created a valid expectation on the part of those other parties that it will dischargethose responsibilities.

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1.12 Employee benefits (continued)

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelvemonths after the end of the period in which the employees render the related service.

Short-term employee benefits include items such as: wages, salaries and social security contributions; short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the

absences is due to be settled within twelve months after the end of the reporting period in which the employeesrender the related employee service;

bonus, incentive and performance related payments payable within twelve months after the end of the reportingperiod in which the employees render the related service; and

non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, carsand cellphones) for current employees.

When an employee has rendered service to the entity during a reporting period, the entity recognise the undiscounted amountof short-term employee benefits expected to be paid in exchange for that service:

as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds theundiscounted amount of the benefits, the entity recognise that excess as an asset (prepaid expense) to the extentthat the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

The expected cost of compensated absences is recognised as an expense as the employees render services that increasetheir entitlement or, in the case of non-accumulating absences, when the absence occurs. The entity measure the expectedcost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unusedentitlement that has accumulated at the reporting date.

The entity recognise the expected cost of bonus, incentive and performance related payments when the entity has a presentlegal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation canbe made. A present obligation exists when the entity has no realistic alternative but to make the payments.

Post-employment benefits

Post-employment benefits are employee benefits (other than termination benefits) which are payable after the completion ofemployment.

Post-employment benefit plans are formal or informal arrangements under which an entity provides post-employment benefitsfor one or more employees.

Multi-employer plans are defined contribution plans (other than state plans and composite social security programmes) ordefined benefit plans (other than state plans) that pool the assets contributed by various entities that are not under commoncontrol and use those assets to provide benefits to employees of more than one entity, on the basis that contribution andbenefit levels are determined without regard to the identity of the entity that employs the employees concerned.

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Post-employment benefits: Defined benefit plans

Defined benefit plans are post-employment benefit plans other than defined contribution plans.

Actuarial gains and losses comprise experience adjustments (the effects of differences between the previous actuarialassumptions and what has actually occurred) and the effects of changes in actuarial assumptions. In measuring its definedbenefit liability the entity recognise actuarial gains and losses in surplus or deficit in the reporting period in which they occur.

Assets held by a long-term employee benefit fund are assets (other than non-transferable financial instruments issued by thereporting entity) that are held by an entity (a fund) that is legally separate from the reporting entity and exists solely to pay orfund employee benefits and are available to be used only to pay or fund employee benefits, are not available to the reportingentity’s own creditors (even in liquidation), and cannot be returned to the reporting entity, unless either:

the remaining assets of the fund are sufficient to meet all the related employee benefit obligations of the plan or thereporting entity; or

the assets are returned to the reporting entity to reimburse it for employee benefits already paid.

Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in thecurrent period.

Interest cost is the increase during a period in the present value of a defined benefit obligation which arises because thebenefits are one period closer to settlement.

Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods,resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-term employeebenefits. Past service cost may be either positive (when benefits are introduced or changed so that the present value of thedefined benefit obligation increases) or negative (when existing benefits are changed so that the present value of the definedbenefit obligation decreases). In measuring its defined benefit liability the entity recognise past service cost as an expense inthe reporting period in which the plan is amended.

Plan assets comprise assets held by a long-term employee benefit fund and qualifying insurance policies.

The present value of a defined benefit obligation is the present value, without deducting any plan assets, of expected futurepayments required to settle the obligation resulting from employee service in the current and prior periods.

The return on plan assets is interest, dividends or similar distributions and other revenue derived from the plan assets, togetherwith realised and unrealised gains or losses on the plan assets, less any costs of administering the plan (other than thoseincluded in the actuarial assumptions used to measure the defined benefit obligation) and less any tax payable by the planitself.

The entity account not only for its legal obligation under the formal terms of a defined benefit plan, but also for any constructiveobligation that arises from the entity’s informal practices. Informal practices give rise to a constructive obligation where theentity has no realistic alternative but to pay employee benefits. An example of a constructive obligation is where a change inthe entity’s informal practices would cause unacceptable damage to its relationship with employees.

The amount recognised as a defined benefit liability is the net total of the following amounts: the present value of the defined benefit obligation at the reporting date; minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled directly; plus any liability that may arise as a result of a minimum funding requirement

The amount determined as a defined benefit liability may be negative (an asset). The entity measure the resulting asset at thelower of:

the amount determined above; and the present value of any economic benefits available in the form of refunds from the plan or reductions in future

contributions to the plan. The present value of these economic benefits is determined using a discount rate whichreflects the time value of money.

Any adjustments arising from the limit above is recognised in surplus or deficit.

The entity determine the present value of defined benefit obligations and the fair value of any plan assets with sufficientregularity such that the amounts recognised in the financial statements do not differ materially from the amounts that would bedetermined at the reporting date.

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Accounting Policies


The entity recognises the net total of the following amounts in surplus or deficit, except to the extent that another Standardrequires or permits their inclusion in the cost of an asset:

current service cost; interest cost; the expected return on any plan assets and on any reimbursement rights; actuarial gains and losses; past service cost; the effect of any curtailments or settlements; and the effect of applying the limit on a defined benefit asset (negative defined benefit liability).

Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan. The results of thevaluation are updated for any material transactions and other material changes in circumstances (including changes in marketprices and interest rates) up to the reporting date.

The entity offsets an asset relating to one plan against a liability relating to another plan when the entity has a legallyenforceable right to use a surplus in one plan to settle obligations under the other plan and intends either to settle theobligations on a net basis, or to realise the surplus in one plan and settle its obligation under the other plan simultaneously.

Actuarial assumptions

Actuarial assumptions are unbiased and mutually compatible.

Financial assumptions are based on market expectations, at the reporting date, for the period over which the obligations are tobe settled.

The rate used to discount post-employment benefit obligations (both funded and unfunded) reflect the time value of money.The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currencyand estimated term of the post-employment benefit obligations.

Post-employment benefit obligations are measured on a basis that reflects: estimated future salary increases; the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes beyond those

terms) at the reporting date; and estimated future changes in the level of any state benefits that affect the benefits payable under a defined benefit

plan, if, and only if, either: those changes were enacted before the reporting date; or past history, or other reliable evidence, indicates that those state benefits will change in some predictable manner,

for example, in line with future changes in general price levels or general salary levels.

Assumptions about medical costs take account of estimated future changes in the cost of medical services, resulting from bothinflation and specific changes in medical costs.

1.13 Provisions and contingencies

Provisions are recognised when: the municipality has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits or service potential will be required to

settle the obligation; and a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at thereporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expendituresexpected to be required to settle the obligation. The discount rate is a pre-tax rate that reflects current market assessments ofthe time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it isno longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle theobligation.

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Accounting Policies

1.13 Provisions and contingencies (continued)

Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. Thisincrease is recognised as an interest expense.

Provisions are not recognised for future operating deficits.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 36.

Site Restoration, Onerous contracts, Reimbursements, Restructuring, Long Service Award

Site Restoration

In accordance with applicable legal requirements, a provision for site restoration in respect of landfill sites is recognised whenthe land is contaminated. The related expense is capitalised against the cost of the landfill sites.

Onerous contracts

A provision for onerous contracts is recognised when the expected benefits to be derived by the municipality from a contractare lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the presentvalue of the lower of the expected cost of terminating the contract and the expected net cost of fulfilling the contract.

Reimbursements

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, thereimbursement is recognised when it is virtually certain that reimbursement will be received if the municipality settles theobligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceedthe amount of the provision.

Restructuring

A provision for restructuring is recognised when the municipality has approved a detailed and formal restructuring plan and therestructuring either has commenced or has been announced as publicly.

Long Service Award

In terms of the Collective Bargaining Agreement, employees who achieve a certain predetermined milestone of service withinthe municipality are entitled to leave days or cash equivalent. A provision is made at the end of each balance sheet date basedon the estimated number of employees who are likely to achieve the milestones in the future .The provision is discounted usinga reasonable discounting rate.

1.14 Commitments

Items are classified as commitments when an entity has committed itself to future transactions that will normally result in theoutflow of cash.

Disclosures are required in respect of unrecognised contractual commitments.

Commitments for which disclosure is necessary to achieve a fair presentation should be disclosed in a note to the financialstatements, if both the following criteria are met:

Contracts should be non-cancellable or only cancellable at significant cost (for example, contracts for computer orbuilding maintenance services); and

Contracts should relate to something other than the routine, steady, state business of the entity – therefore salarycommitments relating to employment contracts or social security benefit commitments are excluded.

1.15 Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in anincrease in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the municipality receives assets or services, or has liabilities extinguished, and directlygives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

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Accounting Policies

1.15 Revenue from exchange transactions (continued)

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties inan arm’s length transaction.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Sale of goods

Revenue from the sale of goods is recognised when all the following conditions have been satisfied: the municipality has transferred to the purchaser the significant risks and rewards of ownership of the goods; the municipality retains neither continuing managerial involvement to the degree usually associated with

ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits or service potential associated with the transaction will flow to the

municipality; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated withthe transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcomeof a transaction can be estimated reliably when all the following conditions are satisfied:

the amount of revenue can be measured reliably; it is probable that the economic benefits or service potential associated with the transaction will flow to the

municipality; the stage of completion of the transaction at the reporting date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Service Charges

Service charges relating to distribution of water are based on consumption. Meters are read on a regular basis consumption isrecognised as revenue when invoiced. Provisional estimates of consumption, based on the consumption history, are made ona monthly basis when meter readings have not been performed. The provisional estimates of consumption are recognised asrevenue when invoiced, except at year-end when estimates of consumption up to year-end are recorded as revenue without itbeing invoiced. In respect of estimates of consumption between the last reading date and the reporting date, an accrual israised based on the average monthly consumption. Adjustments to provisional estimates of consumption are made in theinvoicing period in which meters are read. These adjustments are recognised as revenue in the invoicing period.

Service charges relating to refuse removal are recognised on a monthly basis by applying the approved tariff to each propertyreceiving services. Tariffs are determined per category of property and are levied monthly based on the type of property nottaking into consideration the number of refuse containers.

Service charges from sewerage and sanitation services are based on the type of service not taking into consideration thenumber of sewer connections on all developed property, using the tariffs approved by Council. Revenue is recognised on amonthly basis.

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Accounting Policies

1.15 Revenue from exchange transactions (continued)

Interest, royalties and dividends

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions isrecognised when:

It is probable that the economic benefits or service potential associated with the transaction will flow to themunicipality, and

The amount of the revenue can be measured reliably.

Interest earned and rentals received

Interest income is recognised in surplus or deficit as it accrues, using the effective interest method. Interest earned onunutilised conditional grants is recognised as an unspent conditional grants liability if the grant conditions indicate that interestis payable to the grantor.

Rental income from operating leases is recognised on a straight line basis over the lease term.

Tariff charges

Revenue arising from the application of the approved tariff of charges is recognised when the relevant service is rendered byapplying the relevant authorised tariff. This includes the issuing of licences and permits.

Housing rental and installments

Finance income from the sale of housing by way of installment sales agreements or finance leases is recognised as it accruesin surplus or deficit using the effective interest method.

1.16 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an municipality, whichrepresents an increase in net assets, other than increases relating to contributions from owners.

Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied inthe asset is required to be consumed by the recipient as specified or future economic benefits or service potential must bereturned to the transferor.

Control of an asset arise when the municipality can use or otherwise benefit from the asset in pursuit of its objectives and canexclude or otherwise regulate the access of others to that benefit.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, anddirectly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity inexchange.

Fines are economic benefits or service potential received or receivable by entities, as determined by a court or other lawenforcement body, as a consequence of the breach of laws or regulations.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, anmunicipality either receives value from another municipality without directly giving approximately equal value in exchange, orgives value to another municipality without directly receiving approximately equal value in exchange.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Recognition

An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extentthat a liability is also recognised in respect of the same inflow.

As the municipality satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises anamount of revenue equal to that reduction.

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Accounting Policies

1.16 Revenue from non-exchange transactions (continued)

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by themunicipality.

When, as a result of a non-exchange transaction, the municipality recognises an asset, it also recognises revenue equivalentto the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise aliability. Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settlethe obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When aliability is subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in theliability is recognised as revenue.

Transfers

Apart from Services in kind, which are not recognised, the municipality recognises an asset in respect of transfers when thetransferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.

The municipality recognises an asset in respect of transfers when the transferred resources meet the definition of an asset andsatisfy the criteria for recognition as an asset.

Transferred assets are measured at their fair value as at the date of acquisition.

Fines

Fines are recognised as revenue when the receivable meets the definition of an asset and satisfies the criteria for recognitionas an asset.

Assets arising from fines are measured at the best estimate of the inflow of resources to the municipality.

Where the municipality collects fines in the capacity of an agent, the fine will not be revenue of the collecting entity.

Gifts and donations, including goods in-kind

Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the futureeconomic benefits or service potential will flow to the municipality and the fair value of the assets can be measured reliably.

1.17 Investment income and expenses

Investment income is recognised on a time-proportion basis using the effective interest method.

Finance income comprises interest income on funds invested (including available-for-sale financial assets), dividend income,gains on the disposal of available-for-sale financial assets and changes in the fair value of financial assets at fair value throughprofit or loss. Interest income is recognised as it accrues in surplus or deficit, using the effective interest method. Dividendincome is recognised in surplus or deficit on the date that the municipality’s right to receive payment is established, which inthe case of quoted securities is the ex-dividend date.

Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the fair valueof financial assets through profit or loss and impairment losses recognised on financial assets.

Borrowing costs are recognised in surplus or deficit using the effective interest method.

1.18 Borrowing costs

Borrowing costs are interest and other expenses incurred by an entity in connection with the borrowing of funds.

Borrowing costs are recognised as an expense in the period in which they are incurred.

1.19 Comparative figures

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.

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Accounting Policies

1.19 Comparative figures (continued)

When the presentation or classification of items in the annual financial statements are amended, comparative amounts arereclassified. The nature and amounts of reclassifications as well as the reasons are disclosed in the notes to the financialstatements.

1.20 Unauthorised expenditure

Unauthorised expenditure means: overspending of a vote or a main division within a vote; and expenditure not in accordance with the purpose of a vote or, in the case of a main division, not in accordance with

the purpose of the main division.

Unauthorised expenditure is expenditure that has not been budgeted for, expenditure that is not in terms of the conditions of anallocation received from another sphere of government, municipality or organ of state and expenditure in the form of a grantthat is not permitted in terms of the Municipal Finance Management Act (Act No 56 of 2003). Unauthorised expenditure isaccounted for as an expense and where recovered, it is subsequently accounted for as revenue in the statement of financialperformance.

All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performance inthe year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, andwhere recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.21 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had reasonable carebeen exercised. Fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance inthe year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, andwhere recovered, it is subsequently accounted for as revenue in the statement of financial performance.

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care beenexercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financialperformance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of theexpense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.22 Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred incontravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) this Act; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or(c) any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMA requiresthe following (effective from 1 April 2008):

Irregular expenditure that was incurred and identified during the current financial and which was condoned before year endand/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditure register. Insuch an instance, no further action is also required with the exception of updating the note to the financial statements.

Irregular expenditure that was incurred and identified during the current financial year and for which condonement is beingawaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception ofupdating the note to the financial statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, theregister and the disclosure note to the financial statements must be updated with the amount condoned.

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Accounting Policies

1.22 Irregular expenditure (continued)

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by theNational Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for theirregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediatesteps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accountingofficer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to thefinancial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has notbeen condoned and no person is liable in law, the expenditure related thereto must remain against the relevantprogramme/expenditure item, be disclosed as such in the note to the financial statements and updated accordingly in theirregular expenditure register.

Irregular expenditure is expenditure that is contrary to the Municipal Finance Management Act (Act No.56 of 2003), theMunicipal Systems Act (Act No.32 of 2000), and the Public Office Bearers Act (Act No. 20 of 1998) or is in contravention of theeconomic entity’s supply chain management policy. Irregular expenditure excludes unauthorised expenditure. Irregularexpenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered, it is subsequentlyaccounted for as revenue in the Statement of Financial Performance.

1.23 Housing development fund

The Housing Development Fund was established in terms of the Housing Act, (Act No. 107 of 1997). Loans from national andprovincial government used to finance housing selling schemes undertaken by the municipality were extinguished on 1 April1998 and transferred to a Housing Development Fund. Housing selling schemes, both complete and in progress as at 1 April1998, were also transferred to the Housing Development Fund. In terms of the Housing Act, all proceeds from housingdevelopments, which include rental income and sales of houses, must be paid into the Housing Development Fund. Moniesstanding to the credit of the Housing Development Fund can be used only to finance housing developments within themunicipal area subject to the approval of the Provincial MEC responsible for housing.

1.24 Net reserves

Net reserves are a residual interest in the assets of an municipality after deducting all of its liabilities from the total municipalassets.

1.25 Tax

Value Added Tax (VAT)

The municipality accounts for VAT on the cash basis. The municipality is liable to account for VAT at the standard rate (14%) interms of section 7 (1) (a) of the VAT Act in respect of the supply of goods or services, except where the supplies arespecifically zero-rated in terms of section 11, exempted in terms of section 12 of the VAT Act or are scoped out for VATpurposes. The municipality accounts for VAT on a monthly basis.

The annual financial statements have been prepared on the assumption that the municipality will continue to operate on agoing concern basis for at least the next twelve months.

1.26 Budget information

The Municipality is subject to budgetary limits in the form of appropriations or budget authorisations (or equivalent), which isgiven effect through authorising legislation, appropriation or similar.

General purpose financial reporting by the municipality shall provide information on whether resources were obtained and usedin accordance with the legally adopted budget.

The approved budget is prepared on a accrual basis and presented by economic classification linked to performance outcomeobjectives.

The approved budget covers the fiscal period from 01/07/2015 to 30/06/2016.

The financial statements and the budget are on the same basis of accounting therefore a comparison with the budgetedamounts for the reporting period have been included in the Statement of comparison of budget and actual amounts.

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Accounting Policies

1.26 Budget information (continued)

The Statement of comparative and actual information has been included in the financial statements as the recommendeddisclosure when the financial statements and the budget are on the same basis of accounting as determined by NationalTreasury.

Comparative information is not required.

1.27 Related parties

The municipality operates in an economic sector currently dominated by entities directly or indirectly owned by the SouthAfrican Government. As a consequence of the constitutional independence of the three spheres of government in South Africa,only entities within the local sphere of government are considered to be related parties.

Management are those persons responsible for planning, directing and controlling the activities of the municipality, includingthose charged with the governance of the municipality in accordance with legislation, in instances where they are required toperform such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, or beinfluenced by, that management in their dealings with the municipality.

Only transactions with related parties not at arm’s length or not in the ordinary course of business are disclosed.

1.28 Events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and thedate when the financial statements are authorised for issue. Two types of events can be identified:

those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date);and

those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reportingdate).

The municipality will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting dateonce the event occurred.

The municipality will disclose the nature of the event and an estimate of its financial effect or a statement that such estimatecannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisionsof users taken on the basis of the financial statements.

1.29 Consumer Deposits

Consumer deposits are charged when new water and/or electricity accounts are opened except for owner occupiedproportions. The amounts vary per type of consumer and are approved by Council as part of the tariff structure.

1.30 Capital Commitments

Capital commitments disclosed in the financial statements represents the balance committed to capital projects on reportingdate that will be incurred in the period subsequent to the specific reporting date.

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Notes to the Financial Statements for the year ended 30 June 2016Figures in Rand 2016 2015

2. New standards and interpretations

2.1 Standards and interpretations issued, but not yet effective

The municipality has not applied the following standards and interpretations, which have been published and are mandatoryfor the municipality’s accounting periods beginning on or after 01 July 2016 or later periods:

Standard/ Interpretation: Effective date:Years beginning on orafter

Expected impact:

GRAP 20: Related parties 01 April 2016 The impact of theamendment is not material

GRAP 32: Service Concession Arrangements: Grantor 01 April 2016 The impact of theamendment is not material

GRAP 108: Statutory Receivables 01 April 2016 The impact of theamendment is not material

IGRAP 17: Service Conession Arrangements where a GrantorControls a Significant Residual Interest in an Asset

01 April 2016 The impact of theamendment is not material

DIRECTIVE 11: Change in measurement bases following theinitial adoption of Standards of GRAP

01 April 2016 The impact of theamendment is not material

3. Intangible assets

2016 2015

Cost /Valuation

Accumulatedamortisation

andaccumulatedimpairment

Carrying value Cost /Valuation

Accumulatedamortisation


Carrying value

Computer software, other 3,625,329 (1,790,083) 1,835,246 3,625,329 (1,225,340) 2,399,989

Reconciliation of intangible assets - 2016

Openingbalance

Amortisation Total

Computer software, other 2,399,989 (564,743) 1,835,246

Reconciliation of intangible assets - 2015

Openingbalance

Additions Amortisation Impairmentloss

Total

Computer software, other 1,483,376 2,136,603 (423,727) (796,263) 2,399,989

4. Investment property

2016 2015

Cost /Valuation

Accumulateddepreciation





Carrying value

Investment property 240,961,420 - 240,961,420 224,705,000 - 224,705,000

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4. Investment property (continued)

Reconciliation of investment property - 2016

Openingbalance

Fair valueadjustments

Total

Investment property 224,705,000 16,256,420 240,961,420

Reconciliation of investment property - 2015

Openingbalance

Transfersreceived

Fair valueadjustments

Total

Investment property 155,636,530 21,492,873 47,575,597 224,705,000

A register containing the information required by section 63 of the Municipal Finance Management Act is available forinspection at the registered office of the municipality.

Valuations are performed as at statement of financial position date by professional valuers who hold recognised and relevantqualifications. These valuations form the basis of the carrying amounts in the financial statements. Investment property that isbeing redeveloped for continuing use as investment property for which the market has become less active continues to bemeasured at fair value.

5. Property, plant and equipment

2016 2015

Cost /Valuation






Carrying value

Land 27,694,650 - 27,694,650 27,694,650 - 27,694,650Buildings 123,664,034 (84,543,373) 39,120,661 123,664,034 (77,697,250) 45,966,784Plant and machinery 50,856 - 50,856 59,332 - 59,332Furniture and fixtures 8,396,355 (7,336,679) 1,059,676 8,372,385 (6,194,128) 2,178,257Motor vehicles 30,431,383 (19,733,332) 10,698,051 30,431,383 (16,280,177) 14,151,206Office equipment 546,854 (458,565) 88,289 546,854 (371,780) 175,074IT equipment 3,458,797 (2,428,884) 1,029,913 2,908,806 (1,978,922) 929,884Bridges 5,733,856 (2,605,003) 3,128,853 5,144,810 (2,255,285) 2,889,525Community Buildings 93,400,342 (64,940,099) 28,460,243 81,588,299 (59,740,373) 21,847,926Other Assets 668,471 (668,471) - 668,471 (610,193) 58,278Roads, Storm Drains &Pavements

1,559,153,556 (725,363,825) 833,789,731 1,508,690,329 (652,801,153) 855,889,176

Capital Spares 2,809,006 (1,304,627) 1,504,379 2,809,006 (1,242,205) 1,566,801Capital work in progress 63,532,137 - 63,532,137 70,570,794 - 70,570,794Emergency Equipment 1,719,656 (1,621,937) 97,719 1,719,656 (1,321,324) 398,332Finance Leased Assets 128,378,465 (4,155,827) 124,222,638 - - -High Mast Lights 110,890,593 (36,507,076) 74,383,517 104,229,799 (34,048,117) 70,181,682Recreational Facilities 21,612,122 (13,277,388) 8,334,734 21,612,122 (12,281,683) 9,330,439Landfill Site 30,773,702 (4,366,823) 26,406,879 30,773,702 (3,166,044) 27,607,658

Total 2,212,914,835 (969,311,909) 1,243,602,926 2,021,484,432 (869,988,634) 1,151,495,798

318


Notes to the Financial Statements for the year ended 30 June 2016Figures in Rand

5. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 2016

Openingbalance

Additions Transfers Depreciation Impairmentloss

Total

Land 27,694,650 - - - - 27,694,650Buildings 45,966,784 - - (6,846,123) - 39,120,661Plant and machinery 59,332 - - (8,476) - 50,856Furniture and fixtures 2,178,257 23,970 - (1,142,551) - 1,059,676Motor vehicles 14,151,206 - - (3,453,155) - 10,698,051Office equipment 175,074 - - (86,785) - 88,289IT equipment 929,884 549,991 - (449,962) - 1,029,913Bridges 2,889,525 589,046 - (114,100) (235,618) 3,128,853Community Buildings 21,847,926 11,812,044 - (5,199,133) (594) 28,460,243Roads, Storm Drains & Pavements 855,889,176 50,463,227 - (62,072,219) (10,490,453) 833,789,731Capital Spares 1,566,801 - - (62,422) - 1,504,379Emergency equipment 398,332 - - (300,613) - 97,719High Mast and Street Lights 70,181,682 6,660,795 - (2,458,960) - 74,383,517Finance Leased Assets - 128,378,465 - (4,155,827) - 124,222,638Recreational Facilities 9,330,439 - - (995,705) - 8,334,734Landfill Site 27,607,658 - - (1,200,779) - 26,406,879Capital work in progress 70,570,794 62,486,454 (69,525,111) - - 63,532,137Other Assets 58,278 - - (58,278) - -

1,151,495,798 260,963,992 (69,525,111) (88,605,088) (10,726,665) 1,243,602,926

319



5. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 2015

Openingbalance

Additions Disposals Transfers Depreciation Total

Land 30,247,360 - - (2,552,710) - 27,694,650Buildings 56,485,792 - - (3,523,487) (6,995,521) 45,966,784Plant and machinery - 59,332 - - - 59,332Furniture and fixtures 3,273,256 47,553 - - (1,142,552) 2,178,257Motor vehicles 20,736,401 - (3,132,039) - (3,453,156) 14,151,206Office equipment 155,384 106,474 - - (86,784) 175,074IT equipment 829,854 549,991 - - (449,961) 929,884Bridges 2,983,990 - - - (94,465) 2,889,525Community Buildings 43,004,415 - - (15,416,676) (5,739,813) 21,847,926Roads, Storm Drains & Pavements 890,606,763 - - 29,640,251 (64,357,838) 855,889,176Capital Spares 1,629,223 - - - (62,422) 1,566,801Emergency equipment 701,334 1,053 (3,441) - (300,614) 398,332High Mast and Street Lights 50,068,966 1,103,991 - 20,997,391 (1,988,666) 70,181,682Recreational Facilities 10,328,251 - - - (997,812) 9,330,439Landfill Site 1,077,439 28,942,057 - - (2,411,838) 27,607,658Capital work in progress 68,315,539 57,039,241 - (54,783,986) - 70,570,794Other Assets 150,618 - (15,430) - (76,910) 58,278

1,180,594,585 87,849,692 (3,150,910) (25,639,217) (88,158,352) 1,151,495,798

A register containing the information required by section 63 of the Municipal Finance Management Act is available forinspection at the registered office of the municipality.

320



6. Employee benefit obligations

Defined benefit plan

Post retirement medical aid plan

The municipality provides certain post-retirement health care benefits by funding the medical aid contributions of qualifyingretired members of the municipality. According to the rules of the Medical Aid Funds, with which the municipality is associated,a member (who is on the current Conditions of Service) is entitled to remain a continued member of such medical aid fund onretirement, in which case the municipality is liable for a certain portion of the medical aid membership fee. The municipalityoperates an unfunded defined benefit plan for these qualifying employees. No other post-retirement benefits are provided tothese employees.

The most recent actuarial valuations of the present value of the defined benefit obligation were carried out at 30 June 2016 byM Sithole, Fellow of the Actuarial Society of South Africa. The present value of the defined benefit obligation, and the relatedcurrent service cost and past service cost, were measured using the Projected Unit Credit Method

Defined Benefit Pension Fund

The Mafikeng City Council Pension Fund (“the Fund”) is a defined benefit pension fund that commenced on 1 March 1983. Itprovides, amongst other benefits, a pension that is defined as a percentage of pensionable salary at the retirement date

The most recent actuarial valuations of the present value of the defined benefit obligation were carried out at 30 June 2016 byM Sithole, Fellow of the Actuarial Society of South Africa. The present value of the defined benefit obligation, and the relatedcurrent service cost and past service cost, were measured using the Projected Unit Method

The amounts recognised in the statement of financial position are as follows:

Carrying valuePresent value of the defined benefit obligation unfunded (24,669,000) (22,003,000)Present value of the defined benefit obligation funded (240,348,000) (226,907,000)

(265,017,000) (248,910,000)

Net expense recognised in the statement of financial performance

Current service cost 1,128,000 1,097,000Interest cost 2,185,000 1,851,000Actuarial (gains) losses (571,000) (931,000)Benefit payment (76,000) (58,000)

2,666,000 1,959,000

Key Financial Assumptions

The principal assumptions used for the purposes of the actuarial valuation on 30 June 2016:

Assumptions used at the reporting date:

Discount rates used %9.47 %9.46Medical Inflation %9.02 %8.89Salary inflation %8.52 %8.39

321



6. Employee benefit obligations (continued)

Other assumptions

The following are the key demographic assumptions used: Age difference are the key demographic assumptions used Husbands 4 years older than wivesPre-retirement mortality foe all medical aid members PA(90) - 2 UltimateValuation interest rate Withdrawal/ III-health retirementProportion of active medical aid members who remain married90% at retirement

Effect on the aggregate of the service cost and interest cost

Proportion of members who continue on medical aid once they40% retired

Effect on the aggregate of the service cost and interest cost

Allowance has been made for withdrawal and ill-health pre-retirement decrements in the valuation, whereas in the prior year,these decrements were applied only in the valuation of the long service awards.

7. Inventories

Land 63,393,491 63,884,551Consumable stores 3,996,614 2,550,012Other 172,409 133,144Fuel (Diesel, Petrol) 334,228 1,081,976

67,896,742 67,649,683

Inventory pledged as security

There were no security pledges made against inventory during the current and prior financial period.

8. Receivables from exchange transactions

Lease prepayments 1,272,369 -Expenditure credits 3,086,490 (1)Salary error suspense 8,865,893 20,336,922Councilors salary overpayment 2,932,783 1,962,458Other debtors 7,977,501 7,882,173Staff Contra - 3,432,245Sundry debtors 5,560,262 7,856,068Provision for bad debts (5,560,262) (5,274,449)

24,135,036 36,195,416

9. Receivables from non-exchange transactions

Receivables - Fines 18,520,806 21,783,404Provision for bad debts - Fines (5,464,095) (8,448,765)Property rates 280,938,303 244,236,161Provision for bad debts (217,509,186) (185,635,757)

76,485,828 71,935,043

322



9. Receivables from non-exchange transactions (continued)

Receivables from non-exchange transactions by category

Gross DebtorsAgriculture 3,347,439 -Business 42,477,334 -Government 158,609,204 -Residential 76,504,326 -

280,938,303 -

Gross ImpairmentAgriculture (3,325,926) -Business (36,047,159) -Government (102,371,336) -Residential (75,764,766) -

(217,509,187) -

Net debtorsAgriculture 21,513 -Business 6,430,175 -Government 56,237,869 -Residential 739,560 -

63,429,117 -

Receivables from non-exchange transactions past due but not impaired

Other receivables from non-exchange transactions which are less than 3 months past due are not considered to be impaired.At 30 June 2016, and 30 June 2014 there were no amounts impaired in respect of debts less than 3 months overdue.

The ageing of amounts past due but not impaired is as follows:

3 months past due 58,729,150 22,135,050

323



10. Consumer debtors

Gross balancesWater 219,909,428 164,674,574Sewerage 61,842,304 64,231,914Refuse 65,676,426 65,041,651Other charges 244,757,280 203,555,598

592,185,438 497,503,737

Less: Allowance for impairmentWater (186,983,864) (120,564,666)Sewerage (53,192,241) (46,934,596)Refuse (57,039,797) (47,234,545)Other charges (196,370,475) (161,876,634)

(493,586,377) (376,610,441)

Net balanceWater 32,925,564 44,109,908Sewerage 8,650,063 17,297,318Refuse 8,636,629 17,807,106Other charges 48,386,805 41,678,964

98,599,061 120,893,296

WaterCurrent (0 -30 days) 11,281,463 12,966,83331 - 60 days 9,194,909 6,434,89661 - 90 days 8,074,565 5,831,059> 91 days 191,358,489 139,441,786Impairment (186,983,862) (120,564,666)

32,925,564 44,109,908

SewerageCurrent (0 -30 days) 2,228,863 2,131,98831 - 60 days 1,656,838 1,651,89361 - 90 days 1,483,110 1,451,496> 91 days 56,473,494 58,996,538Impairment (53,192,242) (46,934,597)

8,650,063 17,297,318

RefuseCurrent (0 -30 days) 2,629,054 2,577,84931 - 60 days 2,072,472 2,165,99861 - 90 days 1,910,237 1,976,936> 91 days 59,064,662 58,320,868Impairment (57,039,796) (47,234,545)

8,636,629 17,807,106

Other chargesCurrent (0 -30 days) 5,946,319 3,905,81631 - 60 days 5,655,438 3,776,01961 - 90 days 5,210,901 3,837,144> 91 days 227,944,622 192,036,619Impairment (196,370,475) (161,876,634)

48,386,805 41,678,964

324



10. Consumer debtors (continued)

Summary of debtors by customer classification

ResidentialCurrent (0 -30 days) 11,864,512 10,800,32031 - 60 days 9,950,639 8,627,02461 - 90 days 8,405,175 6,536,739> 91 days 263,813,470 325,011,885

294,033,796 350,975,968Less: Allowance for impairment (292,364,173) (209,589,602)

1,669,623 141,386,366

BusinessCurrent (0 -30 days) 5,146,949 10,997,39931 - 60 days 3,542,576 4,408,53161 - 90 days 3,408,127 3,041,759> 91 days 116,389,489 79,073,333


18,990,350 39,285,148

AgricultureCurrent (0 -30 days) 66,952 142,35731 - 60 days 67,753 138,27961 - 90 days 48,515 211,505> 91 days 3,473,324 3,575,919


19,744 1,638,769

GovernmentCurrent (0 -30 days) 5,007,289 4,646,07331 - 60 days 5,018,689 3,443,18361 - 90 days 4,816,997 4,012,864> 91 days 151,164,984 165,999,680


77,919,346 71,746,127

Consumer debtors past due but not impaired

The ageing of amounts past due but not impaired is as follows:

2 month past due 3,304,533 8,984,1933 months past due 3,118,182 8,107,476

11. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand 17,596 15,196Short-term deposits 22,290,959 8,297,671Bank overdraft (13,886,394) (4,007,613)

8,422,161 4,305,254

325



11. Cash and cash equivalents (continued)

Current assets 22,308,555 8,312,867Current liabilities (13,886,394) (4,007,613)

8,422,161 4,305,254

The municipality had the following bank accounts

`

Account number / description Bank statement balances Cash book balances30 June 2016 30 June 2015 30 June 2014 30 June 2016 30 June 2015 30 June 2014

Standard Bank - CurrentAccount - Account number30852595

1,069,686 5,483,316 1,315,335 (13,886,394) (4,007,613) (1,274,159)

Petty Cash - - - 17,596 15,196 7,794Nedbank - Call Account -03/7881034459/0000020

369,850 1,121,850 2,041,850 369,850 111,850 2,041,850

Standard Bank - Call Account -238650863/014

136,300 995,392 20,760,471 136,300 995,392 20,760,471


281,578 253,284 240,626 281,578 253,284 240,626


39,065 5,006,005 4,957,189 39,065 5,006,005 4,957,189


- - 3,347,942 - - 3,347,942


26,587 95,170 - 26,587 95,170 -

Nedbank - Call account -03/78811208351

108,376 - - 108,376 - -


365,588 - - 365,588 - -

ABSA Bank - Call Account -4071943748

774 - - 774 - -

Total 2,397,804 12,955,017 32,663,413 (12,540,680) 2,469,284 30,081,713

12. Unspent conditional grants and receipts

Unspent conditional grants and receipts comprises of:

Unspent conditional grants and receiptsMunicipal Infrastructure Grant (MIG) (1) (1)Finance Management Grant (FMG) - -Municipal System Improvement Grant (MSIG) - -Library Grant 145,069 -Expended Public Works Grant (EPWP) - -National Lottery Grant 251,509 251,509Electricity Demand Management - 132,305Satelite: Fire Ottoshoop 1,971,661 3,421,159

2,368,238 3,804,972

See note 21 for reconciliation of grants from National/Provincial Government.

326



13. Other financial liabilities

At amortised costDBSA LoansThe loans carry interest at 5% per annum. Loan account number 61000715 and61000717 are repayable over a period of 10 years. These loans were used to fund themunicipality's infrastructure assets. The loans are secured over the rental income fromone of the municipality's investment property.

7,931,125 11,564,792

INCA LoansLoan, Acc No: MAFI-00-0001/ Deal no. 118115, carry interest at 12.78% per annumrapayble over a period of 20 years. This loan was used to fund the municipality'sinfrastructure assets. The loan is secured by the municipality's income fromassessment rates.

14,767,272 14,403,460

22,698,397 25,968,252

Total other financial liabilities 22,698,397 25,968,252

Non-current liabilitiesAt amortised cost 17,135,783 20,765,539

Current liabilitiesAt amortised cost 5,562,614 5,202,713

327



14. Provisions

Reconciliation of provisions - 2016

OpeningBalance

Additions Utilisedduring the

year

Reversedduring the

year

Change indiscount

factor

Total

Environmental rehabilitation -Landfil Site

84,949,041 - - - (1,483,981) 83,465,060

Training Fund Reserve 620,681 - - (620,681) - -Long Service Award 13,612,147 3,693,000 (1,445,000) - - 15,860,147

99,181,869 3,693,000 (1,445,000) (620,681) (1,483,981) 99,325,207

Reconciliation of provisions - 2015

OpeningBalance

Additions Utilisedduring the

year

Reversedduring the

year

Change indiscount

factor

Total

Environmental rehabilitation-Landfill Site

51,854,063 - 4,152,921 - 28,942,057 84,949,041

Training Fund Reserve 604,010 16,671 - - - 620,681Long Service Award 12,184,147 3,010,000 - (1,582,000) - 13,612,147

64,642,220 3,026,671 4,152,921 (1,582,000) 28,942,057 99,181,869

Environmental rehabilitation - Landfill Site

This provision was raised in order to determine the closure and rehabilitation costs for the waste disposal site in accordancewith the Minimum Requirements (Second Edition, 1998) from the Department of Water Affairs and Forestry (DWAF)

The following assumptions were made to provide an estimation of the rehabilitation site:

The remaining site life as at 30 June 2016 is 25 years.

328



14. Provisions (continued)

Long Service Awards

The municipal employees, excluding those with fixed term contract, who have been with the employer for a certain period oftime are entitled to additional leave days (in accordance with normal leave) as recognition for service at the same employer.The additional leave (long service awards) is paid out when the employee has reached the required continued period ofservice.

The number of leave days payable for each milestone (number of years served) are detailed in the table below:

• After 10 years of service - 10 working days• After 15 years of service - 20 working days• After 20 years of service - 30 working days• After 25 years of service - 30 working days• After 30 years of service - 30 working days• After 35 years of service - 30 working days• After 40 years of service - 30 working days• After 45 years of service - 30 working days

The following key assumptions were used in the valuation.

Discount rate (%) 9,47 9.46Salary inflation (%) 8.52 8.39

Movements in the present value of the DefinedBenefit Obligation were as follows:Balance at the beginning of the year 13,612,000 12,184,000Current service cost 979,000 827,000Interest cost 1,314,000 1,054,000Benefit payments (1,445,000) (1,582,000)Actuarial losses / (gains) 1,400,000 1,129,000

Present Value of Fund Obligation at the end of the year 15,860,000 13,612,000

The amount recognised in the Statement of Financial Position are as follows:Present value of unfunded obligations 15,860,000 13,612,000

The amount recognised in the Statement of Financial Performance are asfollows:Current service cost 979,000 827,000Interest cost 1,314,000 1,054,000Actuarial losses / (gains) 1,400,000 1,129,000

Total Post-retirement Benefit included in Employee Related Costs 3,693,000 3,010,000

15. Payables from exchange transactions

Trade payables 211,750,660 275,053,990Accrued leave pay 14,629,700 15,781,637Debtors with credit balances 28,856,438 28,593,456Thirteenth Cheque Accrual 5,771,077 5,541,944Retention 5,061,744 6,893,615Unallocated deposits 5,007,721 4,796,501Sundry creditors 22,911,501 22,298,896

293,988,841 358,960,039

329



16. VAT payable

Balance due 35,102,734 29,444,060

VAT 201 is submitted on a monthly on a cash basis

17. Consumer deposits

Other deposits 5,640,270 4,984,212Water 2,494,678 1,988,336

8,134,948 6,972,548

Other deposits include bulding deposits and rental of facilities.

18. Revenue

Service charges 158,382,015 133,277,015Rental of facilities and equipment 5,148,595 1,059,230Interest received (trading) 52,228,304 41,624,123Licences and permits 4,238,545 4,537,076Fees earned 2,064,563 2,533,291Commissions received 491,507 413,997Recoveries 1,545,922 177,068Other income 958,818 1,167,087Interest received - investment 1,671,383 1,782,517Property rates 171,125,804 142,189,789Government grants & subsidies 289,947,333 194,137,298Fines, Penalties and Forfeits 7,157,603 22,997,387

694,960,392 545,895,878

The amount included in revenue arising from exchanges of goods or servicesare as follows:Service charges 158,382,015 133,277,015Rental of facilities and equipment 5,148,595 1,059,230Interest received (trading) 52,228,304 41,624,123Licences and permits 4,238,545 4,537,076Fees earned 2,064,563 2,533,291Commissions received 491,507 413,997Recoveries 1,545,922 177,068Other income 958,818 1,167,087Interest received - investment 1,671,383 1,782,517

226,729,652 186,571,404

The amount included in revenue arising from non-exchange transactions is asfollows:Taxation revenueProperty rates 171,125,804 142,189,789Transfer revenueGovernment grants & subsidies 289,947,333 194,137,298Fines, Penalties and Forfeits 7,157,603 22,997,387

468,230,740 359,324,474

330



19. Property rates

Rates received

General Assessment Rates 227,326,961 188,176,785Less: Income forgone (56,201,157) (45,986,996)

171,125,804 142,189,789

The following general rates have been approved by Council:

Differentiated rate were applied as follows.Impermissable rate for residential was first R40 000 for all residential properties

Description Rate Discount % Rebate(1) Residential 0,006413 R15 000(2) RDP 0,006413 100% R15 000(3) Pensioners 0,006413 80% R15 000(4) Agricultural Residential 0,001604 - -(5) Farms 0,001604 - -(6) Government (Parks) 0,046000 100% -(7) Church 0,022956 100% -(8) Business 0,022956 - -(9) Creche 0,022956 - -(10) Industrial 0,022956 40% -(11) Guesthouse 1 0,022956 40% -(12) Guesthouse 2 0,022956 25% -(13) Guesthouse 3 0,022956 - -(14) Municipal 0,046000 100% -.

20. Service charges

Sale of water 99,729,000 80,028,973Sewerage and sanitation charges 26,652,479 24,011,922Refuse removal 32,000,536 29,236,120

158,382,015 133,277,015

21. Government grants and subsidies

Operating grantsEquitable share 208,645,000 127,332,000Expended Public Works Grant (EPWP) 2,646,000 2,291,000Library Grant 1,654,931 670,000Municipal System Improvement Grant (MSIG) 940,000 934,000Finance Management Grant (FMG) 1,675,000 1,600,000

215,560,931 132,827,000

Capital grantsMunicipal Infrastructure Grant (MIG) 59,184,000 46,801,000Firestation Grant 1,449,498 -Electricity Demand Management 3,132,305 2,909,298Provincial Infrastructure Grant 10,620,599 11,600,000

74,386,402 61,310,298

289,947,333 194,137,298

331



21. Government grants and subsidies (continued)

Equitable Share

In terms of the Constitution, this grant is used to subsidise the provision of basic services to indigent communitymembers and for the running of the municipality's operations.

All registered indigent consumers receive a subsidy of 6 kilolitres of water per month which is funded from the grant.

Municipal Infrastructure Grant (MIG)

Balance unspent at beginning of year (1) (1)Current-year receipts 59,184,000 56,801,000Conditions met - transferred to revenue (59,184,000) (10,000,000)

- (46,801,000)

(1) (1)

The grant was used to fund infrastructure related projects (mainly as part of the service delivery). Capitalised projects fundedby this grant are included in property,plant and equipment whilst the unspent portion of the grant is included in current liabilities(see note 12)

Expanded Public Works Program (EPWP)

Current-year receipts 2,646,000 2,291,000Conditions met - transferred to revenue (2,646,000) (2,291,000)

- -

Conditions still to be met - remain liabilities (see note 12).

The grant is used to incentivise municipalities to expand work creation efforts through the use of labour intensive deliverymethods in the following identified focus areas, in compliance with the Expanded Public Works Programme guidelines: roadmaintenance and the maintenance of buildings; low traffic volume roads and rural roads; basic services infrastructure, includingwater and sewer reticulation,sanitation, pipelines (excluding bulk infrastructure); other economic and social infrastructure;tourism and cultural industries; waste management; parks and beautification; sustainable land-based livelihoods; socialservices programmes; health service programmes; and community safetyprogrammes.

Library grant

Current-year receipts 1,800,000 670,000Conditions met - transferred to revenue (1,654,931) (670,000)

145,069 -


The grant is used to transform urban and rural community library infrastructure, facilities and services(primarily targetingpreviously disadvantaged communities).

Finance Management Grant (FMG)

Current-year receipts 1,675,000 1,600,000Conditions met - transferred to revenue (1,675,000) (1,600,000)

- -

The grant is mainly used for promoting and supporting reforms in financial management by building capacity in the municipalityto implement the Municipal Finance Management Act and progressive financial reporting..


332



21. Government grants and subsidies (continued)

Municipal System Improvement Grant (MSIG)

Current-year receipts 940,000 934,000Conditions met - transferred to revenue (940,000) (934,000)

- -

The grant is meant to assist the municipality in the improvement of system related transactions.


National Lottery Grant

Balance unspent at beginning of year 251,509 251,509

This grant is mainly used in assisting the municipality in delivering sports development projects.


Electricity Demand Management Grant

Balance unspent at beginning of year 132,305 41,602Current-year receipts 3,000,000 3,000,000Conditions met - transferred to revenue (3,132,305) (2,909,297)

- 132,305

This fund has been granted by the Department of Energy to the municipality to be used in electricity efficiency usage program.


Firestation Grant

Balance unspent at beginning of year 3,421,159 3,421,159Conditions met - transferred to revenue (1,449,498) -

1,971,661 3,421,159


This is mainly used to provide satelite fire station at Ottoshoop.

Provincial Infrastructure Grant

Current-year receipts - 11,600,000Conditions met - transferred to revenue - (11,600,000)

- -


The grant is a susbidy for implementation of the specific projects identified by the Premier for road rehabilitation.

333



22. General expenses

Advertising 670,950 1,617,598Auditors remuneration 3,570,016 6,742,802Bank charges 505,306 334,194Cleaning 172,290 851,600Consulting and professional fees 12,794,182 13,874,768Discount allowed - 8,283,015Donations 49,625 55,811Entertainment 1,573,482 1,318,699Insurance 698,711 656,162Local economic development expenses 1,125,305 229,276System improvement 682,118 1,192,996Magazines, books and periodicals 81,505 47,146Medical expenses 168,009 36,882Disposal site expenditure 2,657,872 2,550,179Laboratory related costs 46,050 20,317Fuel and oil 2,968,195 2,535,218Postage and courier 601,866 175,208Printing and stationery 1,290,236 2,185,874Provisions 797,162 56,419Protective clothing 406,016 1,004,925Project maintenance costs 2,195,368 3,170,268Royalties and license fees 233,812 358,594Library grant 1,255,938 884,900Staff welfare - 51,864Subscriptions and membership fees 4,059,870 3,202,407Telephone and fax 1,622,526 2,340,100Training 266,782 524,113Travel - local 1,558,870 3,055,366Land inventory write-off 491,060 1,016,738Finance Management Grant 2,274,530 1,993,674Tourism development 134,776 -Valuation roll 8,070 1,171,271Disaster management 564,689 207,336Electricity Efficiency Demand Management - 2,552,016Extended public works programme 12,390,860 14,543,647Licence vehicles 432,832 253,666Premier: Mahikeng Road Rehabilitation 4,950,895 1,793,581Public participation 1,307,218 1,928,670Electricity & Water 1,789,287 7,413,907Refuse Bin Buckets 1,744,490 1,762,338Ward committee expenses 3,409,189 2,287,314Chemicals 209,356 556,294Meter reading 506,942 315,178Free Basic Water & Electricity 9,725,583 4,952,015Other expenses 1,206,404 9,887,856Materials 390,374 403,853

83,588,617 110,396,055

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23. Personnel Costs

Basic 164,651,838 150,274,026Bonus 7,139,255 7,742,327Medical aid - company contributions 7,060,979 7,084,483UIF 645,317 637,209Leave pay provision charge (1,445,000) 4,135,991Post retirement benefit - Actuarial loss/(gain) 829,000 198,000Post retirement benefit - Interest 3,499,000 2,905,000Post retirement benefit - Current service cost 17,107,000 3,621,168Overtime payments 6,063,602 6,239,096Allowances locomotion 6,859,883 5,475,107Housing benefits and allowances 1,221,568 929,505Pension funds 29,019,972 11,057,125Other 791,647 -

243,444,061 200,299,037

Remuneration of Municipal Manager

Annual Remuneration 617,101 822,801Car Allowance 204,297 274,271

821,398 1,097,072

Remuneration of Corporate Service Director

Annual Remuneration 548,920 603,933Car Allowance 197,699 219,568Other 181,423 15,072

928,042 838,573

Remuneration of Planning and Development Service Director


598,995 767,588

Remuneration of Infrastructure Service Director


986,635 986,635

Remuneration of Community Services Director


369,748 833,870

Remuneration of Public Safety Director

Annual Remuneration 368,604 353,022Car Allowance 121,958 110,089

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23. Personnel Costs (continued)Other - 349,988

490,562 813,099

24. Remuneration of councillors

Executive Mayor 861,166 808,989Mayoral Committee Members 6,124,268 4,692,483Speaker 693,853 637,448Councillors 13,892,386 12,682,225Chief Whip 583,990 518,745

22,155,663 19,339,890

In-kind benefits

The Executive Mayor, Speaker,Chief Whip of Council and Mayoral Committee Members are full-time and are provided officespace at the cost of the council. In addition, they are paid travelling allowances for trips outside Mahikeng. The ExecutiveMayor, Speaker, Chief Whip and Single Whip of Council are also provided with secretarial support at the cost of the Council.

The Executive Mayor has use of a Council owned vehicle for official duties. The Mayor's driver also acts as bodyguard.

25. Debt impairment

Contributions to debt impairment provision 156,134,709 158,099,697Bad debts written off 22,047 -

156,156,756 158,099,697

Debtors written off during the year amounted to R22 047.

26. Interest received - investment

Interest revenueInterest earned (bank and investment accounts) 1,671,383 1,782,517

27. Depreciation and amortisation

Property, plant and equipment 88,605,088 88,158,352Intangible assets 564,743 423,727

89,169,831 88,582,079

28. Repairs and maintenance

Vehicles 1,193,961 1,870,636ICT Maintenance rental 1,701,173 1,178,557Buildings and land 1,705,592 3,505,079Roads and bridges 6,235,965 (3,314,940)Street lighting 13,136,368 7,800,441Other 3,247,473 6,308,468

27,220,532 17,348,241

29. Finance costs

Fair value adjustments on payables - 4,332,745Interest paid 8,575,184 2,431,414

8,575,184 6,764,159

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30. Auditors' remuneration

Auditors' Fees 3,570,016 6,742,802

31. Rental of facilities and equipment

PremisesHall 205,357 682,961Offices 200,777 196,877Sports grounds - 2,632Other 4,742,461 176,760

5,148,595 1,059,230

32. Contracted services

Call centre management 3,535,321 2,132,816Security services 12,848,267 5,007,814Other Contractors 8,563,428 16,583,575

24,947,016 23,724,205

33. Bulk purchases

Water 65,682,335 78,557,399

34. Cash generated from operations

Deficit (30,141,725) (187,222,606)Adjustments for:Depreciation and amortisation 88,615,243 88,582,079Loss on sale of assets and liabilities 314,185 592,550Fair value adjustment (16,256,420) (47,575,597)Impairment of assets 10,726,665 796,263Impairment of debtors 156,156,756 166,382,712Movements in retirement benefit assets and liabilities 16,107,000 1,959,000Movements in bonus provisions 143,338 34,539,649Amortisation 564,743 423,727Leave accrual (1,151,937) 56,419Bonus provision 229,133 229,133Other movements 57,059,390 (176,522)Changes in working capital:Inventories (247,059) 73,045,734Receivables from exchange transactions - (40,868,910)Consumer debtors (126,352,929) (141,978,696)Other receivables from non-exchange transactions (4,550,785) -Payables from exchange transactions (64,048,394) 107,978,696VAT 5,658,674 (8,123,319)Unspent conditional grants and receipts (1,436,734) 90,703Consumer deposits 1,162,400 973,879

92,551,544 49,704,894

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35. Commitments

Capital Commitments

Approved and Contracted Roads 79,443,332 68,095,671 Recreational facilities 11,025,967 10,533,339 High Mast 17,597,497 4,101,510 Community Buildings 2,004,651 -

110,071,447 82,730,520

Total capital commitmentsApproved and Contracted 110,071,447 82,730,520

This committed expenditure relates to property and will be financed by externally generated funds being the MunicipalInfrastructure Grant and the Electricity Demand Management Grant as per DORA allocations

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36. Contingencies

CasesService provider cases 10,427,876 8,146,141Department of Human Settlements unspent tranche payments - 7,263,734Property Loss/Damage Cases 3,510,652 3,550,796Malicious Proceedings 100,000 100,000

14,038,528 19,060,671

Service provider cases

Famate brought a claim for damages to the amount of R1 725 000 00 in that they were awarded a tender for provision ofincentive scheme.

Cancelation of or breach of contract claim brought against the municipality by Sizanane Consulting for R7 500 000.

This is a civil claim against the Municipality for an outstanding amount arising from a tender. The amount claimed is R360 000.The Municipality’s defense is that Africanism Building & Civils have not completed their work.

Britelec was appointed to service the street lights as per tender no SCM/MLM/14/10/2009. The applicant brought a claim ofR842 876.16 that the municipality had not paid all for services rendered. Municipality brought a counter claim for over paymentof R1 592 266.40.

Property Loss/Damage cases

This is a civil litigation matter wherein Mr Pestana’s claim is that the Municipality was negligent in preventing fire to damage hisproperty by failing to attend to emergency call in time, his damages is to the amount of R1 486 033.20.

This is a civil litigation matter wherein Mr Gutta claim is that the Municipality was negligent in preventing fire to damage hisproperty by failing to attend to emergency call in time and he alleges that the fire was caused by the Municipality’s cleaningcampaign which took place next to his property. His damages is to the amount of R2 000 000.

Malicious proceedings

This is a civil claim of R100 000 against the municipality and three of its employees for an unlawful arrest and detention of acommunity member; Contravention of Council By-Laws by Mr T Smith; Lawsuit by Pule Morobi; Dispute over the municipalityhouse rented to the family of Newson and possible eviction of property; Application to compel MM to give true copies andproper statements of account together with substantial documents/ list of imposed issues, rates and taxes; Standing Rules &Orders.

Department of Human Settlements unspent tranche payments

The dispute to the value of R7 263 734 arose from Human Settlement tranche payment, this payment was reduced by anamount of R3 470 046 which was disclosed as Housing Development Fund in the prior years. The remaining amount of R 3793 688 remains under dispute because the money was spent to build RDP houses.

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37. Related parties

The municipality has various processes in place to identify and note any related party transactions with regards to this matter.These range from disclosure by bidders on the bid documents (MB4) to maintenance of a conflict of interest register. Forcouncillors, this is kept in the Office of the Speaker whilst for the other senior managers it is kept by the Corporate ServicesDirectorate.

Related party transactions

Grants and Subsidies received from State OrgansNational Treasury: Equitable Share Grant 191,184,000 127,332,000North West Department of Public Works: EPWP 2,646,000 2,291,000Department of Culture, Arts and Traditional Affairs: Library Grant 1,654,931 670,000COGTA: MIG 59,184,000 46,801,000

Remuneration of management

Refer to Employee Related Costs Note above, Note 23, for full disclosure of remuneration of management

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38. Prior period errors

The correction of the error(s) results in adjustments as follows:

341



38. Prior period errors (continued)2015 2014

R R Prior year correction note:1. Inventory - -During the financial year, land inventory which did not belong the municipality waswritten of in the prior period, 2014. These properties are not registered in the name ofthe municipality and/or has not legal right and control over these assets

- -

Decrease of inventory (16,142,032) -Decrease of accumulate surplus in the prior periods 15,980,712 15,980,712Increase in general expenses 161,320 -2. Receivables from exchange transactions - -Councilor overpayment was raised for amounts that exceeded the upper limits ofremuneration as well as over provision of fines in 2015

- -

Increase of receivables from exchange transactions for councilor overpayments 1,962,458 -Decrease of receivables form exchange transactions for fines over provision 13,454,300 -Decrease of councilor remuneration from councilor overpayment 1,962,458 -Increase in Fines Income due to overprovision in 2015 year 13,454,300 -Decrease in receivables due to clearing of expenditure credit account (30,646,626) -Increase in various expenditure items 30,646,626 -Other change in classification (refer to Note 39) - -3. Investment Property - -Changes to investment property relates to investment property written off and fair valueadjustment for investment property, while properties was reclassified to property plantand equipment as well as correction of balances for PPE

- -

Increase in investment property not previously recognised - 1,274,000Decrease in investment property due to write-off of property not owned by themunicipality

- (12,979,615)

Decrease in accumulated surplus in the prior year - 11,705,615Increase in investment property due to transfer of assets from PPE 21,492,873 -Increase in investment property due to fair value adjustment 47,575,597 -Increase in fair value adjustment (47,575,597) -4. Property, plant and equipment - -Increase in PPE due to recognition of assets previously omitted - 15,932,493Increase in accumulated surplus - (15,932,493)Decrease in PPE due to transfer of property to Investment property (21,492,873) -Increase in PPE due prior year corrections on WIP and capitalised assets 9,917,242 -Increase in PPE due to decrease in depreciation 461,347 -5. Employee benefits not previously recognised and disclosed - -Pension fund for municipal staff was never recognised in the financial statements - -Decrease in Accumulated surplus - 221,590,000Increase in employee benefits 5,317,000 221,590,000Increase in employee cost 5,317,000 -6. Unspent conditional grant - -In the prior year, provincial infrastructure grant (PIG) was fully spent howevermanagement omitted to recognise revenue for conditions already met.

- -

Increase in revenue, government grant and subsidies, for conditions met on PIG grant (11,600,000) -Decrease in Unspent Conditional Grant 11,600,000 -7. Trade payables and Receivables (Expenditure Credits) - -Prior period balance of payables was understated by invoices which were not accruedat year-end

- -

Increase in payables due to invoices which were not accrued at year-end (47,593,886) -Decrease in receivables (expenditure credits) (30,646,626) -Increase in finance costs 179,824 -Increase in lease rentals 135,965 -Increase in collection costs 78,052 -Increase in bulk purchases 11,100,606 -Increase in collection costs 10,527,408 -Increase in general expenses 38,005,635 -Decrease in license and permits 543,859 -

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38. Prior period errors (continued)7. Irregular expenditure - -Irregular expenditure has been assessed from 2010/11 resulting in the increase ofirregular expenditure in 2013/14 and 2014/15 financial years

37,685,398 132,715,509

39. Comparative figures

Certain comparative figures have been reclassified.

The effects of the reclassification are as follows:

Reclassification of balances

Comparativefigures

previouslyreported

Reclassification

Afterreclassificatio

n

1. Reclassification of money market investment to cash and bank - - -Money market investment was re-classified as cash and cashequivalents for the 2016 and 2015 as the nature of the money marketas short-term and form part of cash and cash equivalent reserves. Theeffect of the movement is as follows

- - -

Decrease of Money Market Investment 825,972 (825,972) -Increase of cash and cash equivalents - 825,972 825,9722. Reclassification of non-material income items to other income - - -Block drain charges, building plans fees have been re-classified toother income as these income items are not material and classifiedwith other income

- - -

Decrease in License and permits 466,919 (466,919) -Decrease in Blick drains charge 44,177 (44,177) -Decrease in building plans fees 458,651 (458,651) -Increase in other income - 969,747 969,7473. Reclassification of traffic fines from exchange receivables to non-exchange receivables

- - -

Decrease in exchange receivables 13,334,639 (13,334,639) -Increase in non-exchange receivables - 13,334,639 13,334,6394. Reclassification of discount allowed from Debt Impairment - - -Settlement discount offerred to consumers in the prior year wasincorrectly classified under Debt Impairment

- - -

Decrease in Debt impairment 166,382,712 (8,283,015) 158,099,697Increase in General expenses - 8,283,015 8,283,015

Total 181,513,070 - 181,513,070

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40. Risk management

Financial risk management

The municipality’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

Financial Risk Management Objectives

The Accounting Officer has overall responsibility for the establishment and oversight of he municipality's risk managementframework. The municipality's risk management policies are established to identify and analyse the risks faced by themunicipality, to set appropriate risk limits and controls and to monitor risks and adherence to limits.

The municipality's Finance department provides services to the business, co-ordinates access to domestic and internationalfinancial markets, monitors and manages the financial risks relating to the operations of the municipality through internal riskreports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk,fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.

Due to the largely non-trading nature of activities and the way in which they are financed, municipalities are not exposed to thedegree of financial risk faced by business entities. Financial Instruments play a much more limited role in creating or changingrisks that would be typical of listed companies to which the IAS's mainly apply. Generally, Financial Assets and Liabilities aregenerated by day-to-day operational activities and are not held to manage the risks facing the municipality in undertaking itsactivities

The Department of Finance monitors and manages the financial risks relating to the operations through internal policies andprocedures. These risks include interest rate risk, credit risk and liquidity risk. Risk management policies and systems arereviewed regularly to reflect changes to market conditions and the municipality's activities, and compliance with policies andprocedures is reviewed by the internal auditors on a continuous basis, and annually by external auditors. The municipality doesnot enter into or trade financial instruments for speculative purposes.

Internal audit, responsible for initiating a control framework and monitoring and responding to potential risk, reports periodicallyto the municipality’s audit committee, an independent body that monitors the effectiveness of the internal audit function

Significant Risks

It is the policy of the municipality to disclose information that enables the user of its Annual Financial Statements to evaluatethe nature and extent of risks arising from Financial Instruments to which the municipality is exposed on the reporting date.

The municipality has exposure to the following risks from its operations in Financial Instruments: Credit Risk; Liquidity Risk; and Market Risk

Risks and exposures are disclosed as follows:

Market Risk

The municipality’s activities expose it primarily to the financial risks of changes in interest rates. No formal policy exists tohedge volatilities in the interest rate market.

Credit Risk

Credit Risk is the risk of financial loss to the municipality if a customer or counterparty to a Financial Instrument fails to meet itscontractual obligations and arises principally from the municipality’s receivables from customers and investment securities.

Liquidity

Liquidity Risk is the risk that the municipality will encounter difficulty in meeting the obligations associated with its FinancialLiabilities that are settled by delivering cash or another financial asset. The municipality’s approach to managing liquidity is toensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal andstressed conditions, without incurring unacceptable losses or risking damage to the municipality’s reputation.

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40. Risk management (continued)

Liquidity Risk is managed by ensuring that all assets are reinvested at maturity at competitive interest rates in relation to cashflow requirements. Liabilities are managed by ensuring that all contractual payments are met on a timeous basis and, ifrequired, additional new arrangements are established at competitive rates to ensure that cash flow requirements are met.

Liquidity risk

The municipality’s risk to liquidity is a result of the funds available to cover future commitments. The municipality managesliquidity risk through an ongoing review of future commitments and credit facilities.

Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored.

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Credit risk

Credit risk consists mainly of cash deposits, cash equivalents and trade debtors. The municipality only deposits cash withmajor banks with high quality credit standing and limits exposure to any one counter-party.

Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to themunicipality. The municipality has a sound credit control and debt collection policy. The municipality uses its own tradingrecords to assess its major customers. The municipality’s exposure of its counterparties are monitored regularly.

Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on anongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, riskcontrol assesses the credit quality of the customer, taking into account its financial position, past experience and other factors.Individual risk limits are set based on internal or external ratings in accordance with limits set by the management

Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. Themunicipality only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party

Investments/Bank, Cash and Cash Equivalents

Refer to http://www.fidfund.co.za/banking-options/bank-credit-ratings/ for the most updated ratings

The municipality limits its counterparty exposures from its short-term investments (financial assets that are neither past due norimpaired) by only dealing with well-established financial institutions short term credit rating of BBB and long-term credit rating ofAA- and higher at an International accredited credit rating agency. The municipality's exposure is continuously monitored andthe aggregate value of transactions concluded is spread amongst different types of approved investments and institutions, inaccordance with it's investment policy. Consequently, the municipality is not exposure to any significant credit risk.

The municipality limits its counterparty exposures from its money market investment operations (financial assets that areneither past due nor impaired) by only dealing with well-established financial institutions of high credit standing. The creditexposure to any single counterparty is managed by setting transaction / exposure limits, which are included in the municipality'sInvestment Policy. These limits are reviewed annually by the Chief Financial Officer and authorised by the Council

The municipality limits its counterparty exposures from its money market investment operations (financial assets that areneither past due nor impaired) by only dealing with Absa Bank, First National Bank, Nedbank and Standard Bank. Noinvestments with a tenure exceeding twelve months are made.

Trade and Other Receivables

Trade and Other Receivables are amounts owed by consumers and are presented net of impairment losses. The municipalityhas a credit risk policy in place and the exposure to credit risk is monitored on an on-going basis. The municipality is compelledin terms of its constitutional mandate to provide all its residents with basic minimum services without recourse to anassessment of creditworthiness. Subsequently, the municipality has no control over the approval of new customers whoacquire properties in the designated municipal area and consequently incur debt for rates, water services rendered to them.

Trade Receivables consist of a large number of customers. Periodic credit evaluation is performed on the financial condition ofaccounts receivable. Consumer debtors are presented net of a provision for impairment.

In the case of debtors whose accounts become in arrears, it is endeavoured to collect such accounts by "demand for payment","restriction of services" and, as a last resort, "handed over for collection", whichever procedure is applicable in terms ofCouncil's Credit Control and Debt Collection Policy. At this stage the municipality only partially implement its credit controlpolicy as there is no hand over of debtors.

There were no material changes in the exposure to credit risk and its objectives, policies and processes for managing andmeasuring the risk during the year under review. The municipality’s maximum exposure to credit risk is represented by thecarrying value of each financial asset in the Statement of Financial Position, without taking into account the value of anycollateral obtained.

The municipality establishes an allowance for impairment that represents its estimate of anticipated losses in respect of tradeand other receivables.

346




The municipality does not have any significant credit risk exposure to any single counterparty or any group of counterpartieshaving similar characteristics. The municipality defines counterparties as having similar characteristics if they are relatedentities. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks withhigh credit-ratings assigned by international credit-rating agencies.

Financial assets exposed to credit risk at year end were as follows:Receivables from exchange transactions 24,135,036 36,195,416Receivables from non-exchange transactions 76,485,828 71,935,043Consumer Debtors 98,599,061 120,893,296Cash and cash equivalents 22,308,555 8,312,867

Market risk

Interest rate risk

Interest Rate Risk is defined as the risk that the fair value or future cash flows associated with a financial instrument willfluctuate in amount as a result of market interest charges.

Financial Assets and Liabilities that are sensitive to interest risk are cash and cash equivalents, investments, and loanpayables. The municipality is not exposed to interest rate risk on these financial instruments as the rates applicable are fixedinterest rate.

Potential concentration of interest rate risk consist mainly of variable rate deposit investments, long-term receivables, otherdebtors, bank and cash balances.

The municipality limits its counterparty exposures from its money market investment operations by only dealing with wellestablished financial institutions of high credit standing. No investment with a tenure exceeding twelve months are made

The municipality limits its counterparty exposures from its money market investment operations by only dealing with ABSABank, First National Bank, Nedbank and Standard Bank. No investments with a tenure exceeding twelve months are made

Receivables comprise a widespread customer base. Consumer debtors are presented net of a provision for impairment.

In the case of debtors whose accounts become in arrears, it is endeavoured to collect such accounts by "demand for payment","restriction of services", and, as a last resort, "handed over for collection", whichever procedure is applicable in terms ofCouncil's Credit Control and Debt Collection Policy at this stage the municipality only partially implement its credit control policyas there is no hand over of debtors

Long-term Receivables and Other Debtors are individually evaluated annually at Balance Sheet date for impairment ordiscounting. A report on the various categories of debtors is drafted to substantiate such evaluation and subsequentimpairment / discounting, where applicable.

The municipality is not exposed to interest rate risk as the municipality borrows funds at fixed interest rates.

Price risk

The municipality is not exposed to equity price risks arising from equity investments as the municipality does not trade theseinvestments.

41. Events after the reporting date

There were no events after reporting date identified in the current financial period.

42. Unauthorised expenditure

Opening balance 443,769,042 217,384,305Current year 133,445,207 226,384,737

577,214,249 443,769,042

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42. Unauthorised expenditure (continued)

Unauthorised expenditure for the current year/prior year relates to the followingexpenditure votesOver-expenditure of votes 133,445,207 217,776,820

43. Fruitless and wasteful expenditure

Opening balance 7,161,435 6,186,710Current year 370,769 974,725

7,532,204 7,161,435

Details of incidents occurredInterest charged on overdue accounts 173,375 722,838Penalties charged on late submission to SARS and Department of Safety 197,394 974,725

370,769 1,697,563

Expenditure incurred during the year resulted from interest paid on overdue accounts and penalties charged for noncompliancewith statutory requirements. The matters are currently under investigation, no disciplinary steps taken to date

44. Irregular expenditure

Opening balance 350,877,704 145,507,910Prior year correction - restating opening balance - 132,715,509Add: Irregular Expenditure - current year 133,584,146 72,654,285

484,461,850 350,877,704

Details of irregular expenditure – current yearDisciplinary steps taken/criminal proceedings

Tax and SCM Regulations Currently being investigated - No action taken 123,018,876Procurement process not followed Currently being investigated - No action taken 10,294,778Limitation SCM compliance Currently being investigated - No action taken 270,492

133,584,146

Details of irregular expenditure - prior yearDisciplinary steps taken/criminal proceedings

Tax and SCM Regulations Currently being investigated - No action taken 66,348,877Procurement process not followed Currently being investigated - No action taken 5,923,200Limitation SCM compliance Currently being investigated - No action taken 382,209

72,654,286

Management has reviewed all transactions from 2010/11 to 2015/16 financial year that relates to transactions where aprocurement process should have been under taken. Procurement contracts, originating from the prior year, which wasclassified as irregular, resulted in increase of irregular expenditure in the current year as these payments will be deemedirregular for the entire contract period until the contract is approved as not irregular or written-off. The current year balance ofR133,584,146 consist therefore of contracts for the current and prior periods.

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45. Additional disclosure in terms of Municipal Finance Management Act

Water Losses

Kl bought 10,302,064 11,039,036Kl sold (8,064,822) (7,512,467)

Units lost in distribution revenue 2,237,242 3,526,569

Unit loss in distribution 2,237,242 3,526,569Average cost per Kl Sold 6 6

Monetary Loss in distribution 14,184,114 21,159,414

The municipality purchases water from local water service authority and sells to its residents. During the current year themunicipality bought 10 302 064 kilolitres (2015: 11 039 036), sold 8 064 822 kilolitres (2015: 7 512 467) and this resulted inwater losses of 2 237 242 kilolitres. The losses are attributable to unmetered consumptions especially in low cost housingdevelopment, illegal connections and burst pipes not timeously attended to.

Audit fees

Opening balance 3,618,200 2,285,807Current year subscription / fee 3,779,895 3,721,715Amount paid - current year (3,570,016) (2,389,322)

3,828,079 3,618,200

PAYE and UIF

Opening balance 2,367,078 1,886,887Current year subscription / fee 34,067,609 28,371,161Amount paid - current year (34,067,609) (27,890,970)

2,367,078 2,367,078

Pension and Medical Aid Deductions

Opening balance 2,194,157 -Current year subscription / fee 57,142,451 36,700,632Amount paid - current year (57,142,472) (34,506,475)

2,194,136 2,194,157

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45. Additional disclosure in terms of Municipal Finance Management Act (continued)

Councillors' arrear consumer accounts

The following Councillors had arrear accounts outstanding for more than 90 days at 30 June 2016:

30 June 2016 Outstandingless than 90

daysR

Outstandingmore than 90

daysR

TotalR

Councillor Ngqobe M 6,370 70,069 76,439Councillor Tabane PM 1,717 8,449 10,166

8,087 78,518 86,605

30 June 2015 Outstandingless than 90

daysR

Outstandingmore than 90

daysR

TotalR

Councillor Mmono CD 480 657 1,137Councillor Mtunzi D 823 657 1,480Councillor Ngqobe M 4,077 70,941 75,018

5,380 72,255 77,635

46. Finance lease obligation

Minimum lease payments due- within one year 40,829,033 -- in second to fifth year inclusive 65,759,251 -

Present value of minimum lease payments 106,588,284 -

Non-current liabilities 65,759,251 -Current liabilities 40,829,033 -

106,588,284 -

It is municipality policy to lease certain property, plant and equipment under finance leases.

The finance lease is secured over yellow fleet to the value of R128 378 464 included in property, plant and equipment. Thefinance lease is over 36 month, with a minimum lease payments of R4 142 411 at an effective interest rate of 10%.

47. Financial instruments disclosure

Categories of financial instruments

2016

Financial assets

At amortisedcost

Total

Trade and other receivables from exchange transactions 24,135,036 24,135,036Other receivables from non-exchange transactions 76,485,828 76,485,828Consumer debtors 98,599,061 98,599,061Cash and cash equivalents 22,308,555 22,308,555

221,528,480 221,528,480


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. Financial instruments disclosure (continued)

At amortisedcost

Total

Other financial liabilities 5,562,614 5,562,614Trade and other payables from exchange transactions 293,988,841 293,988,841Financial lease obligation 40,829,033 40,829,033Bank overdraft 13,886,394 13,886,394

354,266,882 354,266,882

2015

Financial assets

At amortisedcost

Total

Trade and other receivables from exchange transactions 36,195,416 36,195,416Other receivables from non-exchange transactions 71,935,043 71,935,043Consumer debtors 120,893,296 120,893,296Cash and cash equivalents 8,312,867 8,312,867

237,336,622 237,336,622


At amortisedcost

Total

Other financial liabilities 5,202,713 5,202,713Trade and other payables from exchange transactions 358,960,039 358,960,039Bank overdraft 4,007,613 4,007,613

368,170,365 368,170,365

48. Going concern

We draw attention to the fact that at 30 June 2016, the municipality had accumulated surplus of R 928,714,771 and that themunicipality's total assets exceed its liabilities by R 928,714,771.

The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basispresumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities,contingent obligations and commitments will occur in the ordinary course of business.

The ability of the municipality to continue as a going concern is dependent on a number of factors. The most significant ofthese are government grants allocation through DoRA and payment of municipal services by consumers.

49. Budget differences

Material differences between budget and actual amounts

49.1 Service charges - Service charges increase relates to increase consumption by consumers which was not anticipatedduring the budget process

49.2 Other income - Other income budget was estimated on past performance which did not materialise in the currrent year.These activities are difficult to accurately estimate as such items are adhoc income and not driven by a spesific revenue driver

49.3 Property rates - Property rates increase results from additionial interim valuation performed during the year, whichreuslted in additional property rates being levied to rate payers

49.4 Government grants and subsidies - Project were completed earlier than budget estimated resulting in an increaseproject grants revenue being recognised

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49. Budget differences (continued)

49.5 Fines, Penalities and Forfeits - The basis of fines are not inline with the iGRAP requirement, which results in the overreporting on the budget amount

49.6 Personel costs - Employee costs increase due to the recognition of employee benefits not included in the prior year.Additional two senior officials contracts were terminated earlier that had to be settled in full as part of an agreement

49.7 Impairment loss - No impairment loss were budgeted for as the municpality was not estimating that such matters willarise during the financial year. During the verificatoins, it was later required to make such impairment for these assets

49.8 Debt impairment - The debt impairment increased due to the increased consumption. These consumers did not meettheir obligations for payment of services, which resulted in the increase of impairment. Furthuremore, certain governmentdebtors was also impair due to the foreseable situation that it might never bee recovered in the next 12 months

49.9 Bulk purchases - Bulk purchases basis for budget was the average consumption over the last few years. The estimatebudget was over estimated resulting in a saving

49.10 Contract services - During the adjusted budget, it was estimated that the newly fleet maangement programme would betreated as a opearting lease. However, the yellow fleet was later treated as a finance lease instead of an operating lease. Thisresulted that a saving was reliased on the contract services

49.11 General expenditure - The implement of cost containment measures resulted in the realisation of a saving on thegeneral expenditure budget vote

Changes from the approved budget to the final budget

The changes between the approved and final budget are as a consequence of the following reasons:

1. Service charges - due to the installation of the new bulk water meters

2. Rental of facilities and equipment – due to changes to the rental contracts held by municipality

3. Interest earned – due to the increase in the debtors book

4. Licence and permits – based on the half yearly actual outcome

5. Fees earned – decrease is due to the assessment of the half yearly actuals results

6. Other income – other sources of revenue identified such as disposal of assets

7. Interest received – investment - increase is due to the assessment of the half yearly actuals results

8. Government grants & subsidies – received more allocation from provincial department

9. Personnel – increase is based on half yearly assessment such as filling vacant position

10. Remuneration of councillors - increase is based on half yearly assessment such as result councillors were overpaid

11. Depreciation – based on the audited actuals of 2015 AFS

12. Lease rentals – rising of the lease during the year for white fleet

13. Contracted services – increase of the contracted services such as security contract

14. General expenses - increase is based on half yearly assessment such as employing EPWP

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INTRODUCTION

The Constitution S188 (1) (b) states that the functions of the Auditor-General includes the auditing and reporting on the accounts, financial statements and financial management of all municipalities. MSA section 45 states that the results of performance measurement must be audited annually by the Auditor-General.

T6.0.1

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS! 2014/15

j 6.1 AUDITOR GENERAL REPORTS 2014/15

The Mahikeng Local Municipality received a disclaimer of opinion for 2014/15 financial year.

COMPONENT B: AUDITOR-GENERAL OPINION 2015/16

j 6.2 AUDITOR GENERAL REPORT 2015/16

AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS: 2015/16

The Mahikeng Local Municipality achieved an unqualified audit opinion on Audit of Predetermine Objectives and disclaimer audit opinion on Annual Financial statement for 2015/16 financial year.

The 2015/16 Audit Report is attached below.

COMMENTS ON MFMA SECTION 71 RESPONSIBILITIES:

Section 71 of the MFMA requires mupicipalities to return a series of financial performance data to the National Treasury at spe tied ii ervals t r ughout the year. The Chief FinancialOfficer states that these data s s ha been turned according to the reporting requirements. Signed (Chief Financial Officer) ...... ... . .......................................... ........ ..

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Report of the auditor-general to the North West

provincial legislature and the council on the Mahikeng

Local Municipality

Report on the financial statements

Introduction

1. I was engaged to audit the financial statements of the Mahikeng Local Municipality set out onpages 284 to 352, which comprise the statement of financial position as at 30 June 2016, thestatement of financial performance, statement of changes in net assets, cash flowstatementand the statement of comparison of budget and actual amounts for the year thenended, as well as the notes, comprising a summary of significant accounting policies and otherexplanatory information.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financialstatements in accordance with the South African Standards of Generally RecognisedAccounting Practice (SA standards of GRAP) and the requirements of the Municipal FinanceManagement Act of South Africa, 2003 (Act No. 56 of 2003) (MFMA) and the Division ofRevenue Act of South Africa, 2015 (Act No. 1 of 2015) (DoRA) and for such internal control asthe accounting officer determines is necessary to enable the preparation of financialstatements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on the financial statements based on conducting theaudit in accordance with International Standards on Auditing. Because of the mattersdescribed in the basis for disclaimer of opinion paragraphs, however, I was unable to obtainsufficient appropriate audit evidence to provide a basis for an audit opinion.

Basis for disclaimer of opinion

Receivables from exchange transactions

4. I was unable to obtain sufficient appropriate audit evidence for expenditure credits ofR3 086 489, salary error suspense of R8 865 893 (2015: R20 336 922), other debtors ofR7 977 501 (2015: R7 882 173) and the provision for bad debtsof R5 560 262(2015:R5 274 449) included in receivables from exchange transactions, as the municipality didnot have an adequate system of internal control and did not keep adequate records. I wasunable to confirm these receivables by alternative means. Consequently, I was unable todetermine whether any adjustments relating to receivables from exchange transactions ofR24 135 036 (2015: R36 195 416) as disclosed note 8 and in the statement of financial

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position were necessary.

Receivables from non-exchange transactions

5. The municipality did not correctly account for the provision for bad debtsin accordance withGRAP 104 Financial Instruments as the calculation was based on information where variouspayments received was not allocated to the correct debtors. I was unable to determine the fullextent of thismisstatement as it was impracticable to do so. Consequently, I was unable todetermine whether any adjustments relating to the provision for bad debts of R217 509 186(2015: R185 635 757) included in receivables from non-exchange transactions as disclosed innote 9 to the financial statements and the related debt impairment expense in the statement offinancial performance were necessary.

Consumer debtors

6. The municipality did not correctly account for the allowance for impairment in accordance withGRAP 104 Financial Instruments as the calculation was based on information where variouspayments received was not allocated to the correct debtors. I was unable to determine the fullextent of this misstatement as it was impracticable to do so. Consequently, I was unable todetermine whether any adjustments relating to the allowance for impairment of R493 586 377(2015: R376 610 441) included in consumer debtors as disclosed in note 10 to the financialstatements and the related debt impairment expense in the statement of financial performancewere necessary.

Cash and cash equivalents

7. I was unable to obtain sufficient appropriate audit evidence for cash and cash equivalents asthe municipality could not provide adequate substantiating records for differences between thetrial balance, the cash book balance, the amount as per bank reconciliation and the amount asdisclosed in the statement of financial position. I was unable to confirm cash and cashequivalents by alternative means. Consequently, I was unable to determine whether anyadjustments relating to cash and cash equivalents of R22 290 959 (2015: R8 297 671) or bankoverdraft of R13 886 394 (2015: R4 007 613) disclosed in the statement of financial positionand note 11 to the financial statements or any other accounts affected were necessary.

Payables from exchange transactions

8. I was unable to obtain sufficient appropriate audit evidence for payables from exchangetransactions due to the status of the accounting records. I was unable to confirm thesepayables by alternative means. Consequently, I was unable to determine whether anyadjustments relating to payables from exchange transactions of R293 988 841 (2015:R358 960 039) as disclosed in the statement of financial position were necessary.

Accumulated surplus

9. I was unable to obtain sufficient appropriate audit evidence for adjustments to the accumulatedsurplus for the current and prior year due to the lack of proper substantiating accountingrecords. I was unable to confirm these adjustments by alternative means. Consequently, I wasunable to determine whether any adjustments relating to accumulated surplus ofR928 714 771 (2015: R958 856 496) in the financial statements were necessary.

Revenue from exchange transactions

10. The municipality did not account for all revenue from water sales in the current and priorperiod in accordance with GRAP 9 Revenue from exchange transactions, as the municipality

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did not maintain adequate records of water consumption and did not account for all water to RDP houses. I was unable to determine the full extent of this misstatement of revenue from the sale of water of R99 729 000 (2015: R80 028 973) included in services charges disclosed in note 20 and the related water debtors of R32 925 564 (2015: R44 109 908) included in consumer debtors as disclosed in note 10 to the financial statements.

Revenue from non-exchange transactions

11. During 2015, the municipality did not properly levy and account for property rates inaccordance with GRAP 23 Revenue from non-exchange transactions due to the lack of anupdated valuation roll, an inadequate billing process and a lack of accurate classification ofindigent debtors. I was unable to determine the full extent of the understatement of propertyrates of R142 189 789 in the statement of financial performance and disclosed in note 19, andthe property rates receivable of R58 600 404 included in receivables from non-exchangetransactions as disclosed in note 9 to the financial statements.

Expenditure

12. The municipality did not have adequate systems to maintain records of expenditure for goodsand services paid for. This resulted in payables from exchange transactions being understatedby R38 948 598, finance cost understated by R2 580 174, contracted services understated byR31 069 421, repairs and maintenance overstated by R20 462 681, property, plant andequipment understated by R19 131 872 and VAT payable understated by R4 466 297. Inaddition, I was unable to obtain sufficient appropriate audit evidence for certain amountsdisclosed as expenditure due to unexplained differences between the underlying accountingrecords and the annual financial statements. I could not confirm these expenses by alternativemeans. Consequently, I was unable to determine whether any further adjustment toexpenditure stated at R741 044 352 in the financial statements was necessary. Additionally,there was a resultant impact on the surplus for the period and the accumulated surplus.

Disclaimer of opinion

13. Because of the significance of the matters described in the basis for disclaimer of opinionparagraphs, I have not been able to obtain sufficient appropriate audit evidence to provide abasis for an audit opinion. Accordingly, I do not express an opinion on the financial statements.

Emphasis of matters

14. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Restatement of corresponding figures

15. As disclosed in notes 38 and 39 to the financial statements, the corresponding figures for 2015have been restated as a result of errors discovered during 2016 in the financial statements ofthe Mahikeng Local Municipality at, and for the year ended 30 June 2015.

Unauthorised, irregular and fruitless and wastefulexpenditure

16. As disclosed in note 42 to the financial statements, unauthorised expenditure of R133 445 207was incurred in the current year and the unauthorised expenditure in respect of prior years ofR443 769 042 had not yet been dealt with in accordance with section 32 of the MFMA.

17. As disclosed in note 43 to the financial statements, fruitless and wasteful expenditure ofR370 769 was incurred in the current year and fruitless and wasteful expenditure from prioryears of R7 161 435 had not yet been dealt with in accordance with section 32 of the MFMA.

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18. As disclosed in note 44 to the financial statements, irregular expenditure of R133 584 146 wasincurred in the current year and irregular expenditure from prior years of R350 877 704 hadnot yet been dealt with in accordance with section 32 of the MFMA.

Material losses

19. As disclosed in note 45 to the financial statements, material water losses to the amount ofR14 184 114 (2015: R21 159 414) were incurred.

Going concern

20. Note 48 to the financial statements indicates that the municipality has experienced difficultiesin settling its current liabilities. These conditions, along with other matters as set forth in note48, indicate the existence of a material uncertainty that may cast significant doubt on themunicipality’s ability to operate as a going concern.

Additional matters

21. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Unaudited disclosure notes

22. In terms of section 125(2)(e) of the MFMA the municipality is required to disclose particulars ofnon-compliance with the MFMA. This disclosure requirement did not form part of the audit ofthe financial statements and accordingly I do not express an opinion thereon.

Report on other legal and regulatory requirements

23. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) andthe general notice issued in terms thereof, I have a responsibility to report findings on thereported performance information against predetermined objectives for selected keyperformance areas presented in the annual performance report, compliance with legislationand internal control. The objective of my tests was to identify reportable findings as describedunder each subheading but not to gather evidence to express assurance on these matters.Accordingly, I do not express an opinion or conclusion on these matters.

Predetermined objectives

24. I performed procedures to obtain evidence about the usefulness and reliability of the reportedperformance information for the following selected key performance area presented in theannual performance report of the municipality for the year ended 30 June 2016:

KPA 1: Service delivery and infrastructure development on pages 170 to 21025. I evaluated the usefulness of the reported performance information to determine whether it

was consistent with the planned key performance areas. I further performed tests to determinewhether indicators and targets were well defined, verifiable, specific, measurable, time boundand relevant, as required by the National Treasury’s Framework for managing programmeperformance information (FMPPI).

26. I assessed the reliability of the reported performance information to determine whether it wasvalid, accurate and complete.

27. I did not identify any material findings on the usefulness and reliability of the reportedperformance information on any of the selected key performance areas of the municipality.

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Additional matters

28. Although I identified no material findings on the usefulness and reliability of the reportedperformance information for the selected KPA, I draw attention to the following matters:

Achievement of planned targets

29. Refer to the annual performance report on page 170 to 264 for information on the achievementof the planned targets for the year.

Adjustment of material misstatements

30. I identified material misstatements in the annual performance report submitted for auditing onthe reported performance information for KPA 1: Service delivery and infrastructuredevelopment. As management subsequently corrected the misstatements, we did not raiseany material findings on the reliability of the reported performance information.

Compliance with legislation

31. I performed procedures to obtain evidence that the municipality had complied with applicablelegislation regarding financial matters, financial management and other related matters. Myfindings on material compliance with specific matters in key legislation, as set out in thegeneral notice issued in terms of the PAA, are as follows:

Strategic planning and performance management

32. The municipality did not establish mechanisms to monitor and review its performancemanagement system, as required by section 40 of the Municipal Systems Act, 2000 (Act No.32 of 2000) (MSA).

33. The performance management system and related controls were inadequate as the describedprocesses of performance review and reporting and how it is conducted, organised andmanaged were not implemented, as required by section 38 of the MSA and regulation 7 of theMunicipal planning and performance management regulations.

Financial statements

34. The financial statements submitted for auditing were not prepared in all material respects inaccordance with the requirements of section 122 of the MFMA. Material misstatements of non-current and current assets, non-current and current liabilities, revenue, expenses anddisclosure items identified by the auditors in the submitted financial statements were notadequately corrected and the supporting records could not be provided subsequently, whichresulted in the financial statements receiving a disclaimer audit opinion.

Procurement and contract management

35. I could not obtain sufficient appropriate audit evidence that all quotations and contracts wereawarded in accordance with the legislative requirements and a procurement process which isfair, equitable, transparent and competitive, as an adequate document management systemwas not in place.

36. Goods and services with a transaction value of below R200 000 were procured withoutobtaining the required price quotations as required by supply chain management (SCM)regulations 17(a) and (c).

37. Goods and services of a transaction value above R200 000 were procured without inviting

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competitive bids, as required by SCM regulation 19(a). 38. Thresholds for local content on designated sectors’ procurement were not properly applied in

accordance with the requirements of preferential procurement regulation 9.39. The preference point system was not applied in all procurement of goods and services above

R30 000, as required by section 2(a) of the Preferential Procurement Policy Framework Act(PPPFA) and SCM regulation 28(1)(a).

40. Contracts were awarded to bidders who did not submit a declaration on whether they areemployed by the state or connected to any person employed by the state, as required by SCMregulation 13(c).

41. The performance of contractors or providers was not monitored on a monthly basis, asrequired by section 116(2)(b) of the MFMA.

42. The contract performance and monitoring measures and methods were insufficient to ensureeffective contract management, in contravention of section 116(2)(c) of the MFMA.

43. Contracts were awarded to providers whose tax matters had not been declared by the SouthAfrican Revenue Service to be in order, in contravention of SCM regulation 43.

Human resource management

44. The municipality did not develop and adopt appropriate systems (policies) and procedures tomonitor, measure and evaluate performance of staff in contravention of section 67(d) of theMSA.

Expenditure management

45. Money owed by the municipality was not always paid within 30 days, as required by section65(2)(e) of the MFMA.

46. An adequate management, accounting and information system was not in place whichrecognised expenditure and account for creditors when it was incurred, as required by section65(2)(b) of the MFMA.

47. Reasonable steps were not taken to prevent unauthorised, irregular and fruitless and wastefulexpenditure as required by section 62(1)(d) of the MFMA.

Revenue management

48. An adequate management, accounting and information system which accounts for revenueand debtors was not in place, as required by section 64(2)(e) of the MFMA.

49. An effective system of internal control for debtors and revenue was not in place, as required bysection 64(2)(f) of the MFMA.

50. Revenue due to the municipality was not calculated on a monthly basis, as required by section64(2)(b) of the MFMA.

Asset management

51. An adequate management and accounting and information system which accounts for assetswas not in place, as required by section 63(2)(a) of the MFMA.

52. An effective system of internal control for assets was not in place, as required by section63(2)(c) of the MFMA.

Liability management

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53. An adequate management, accounting and information system which accounts for liabilitieswas not in place, as required by section 63(2)(a) of the MFMA.

54. An effective system of internal control for liabilities was not in place, as required by section63(2)(c) of the MFMA.

Consequence management

55. Unauthorised, irregular and fruitless and wasteful expenditure incurred by the municipalitywere not investigated to determine if any person is liable for the expenditure as required bysection 32(2)(a) and (b) of the MFMA.

Environmental management

56. The municipality did not exercise its legislative and executive authority of managing,monitoring and enforcing environmental related bylaws to promote a safe and healthyenvironment as required by section 11(3)(l) and (m) of the MSA by.

57. The municipality operated its wastewater treatment facilities without a license in contraventionof section 24(2)(a) of the National Environmental Management Act, 1998 (Act No. 107 of1998) (NEMA) and section 22(1)(b) of the National Water Act, 1998 (Act No. 36 of 1998)(NWA).

58. The municipality’s operational activities at its waste disposal site contravened or failed tocomply with the requirement of a waste management license or the norms and standards asprescribed by sections 67(1)(f) and (h) of the National Environmental Management Waste Act,2008 (Act No. 59 of 2008) (NEMWA).

59. The municipality’s waste management and disposal activities contravened or failed to complywith the requirements of section 28(1) of the NEMA, section 19 of the NWA and sections16(1)(c) and (d) and 26(1)(b) of the NEMWA.

Internal control

60. I considered internal control relevant to my audit of the financial statements, the annualperformance report and compliance with legislation. The matters reported below are limited tothe significant internal control deficiencies that resulted in the basis for disclaimer opinion andthe findings on compliance with legislation included in this report.

Leadership

61. The leadership did not adequately exercise appropriate oversight over financial andperformance reporting, compliance with laws and regulations and related internal controls.This has led to material misstatements and control deficiencies identified in financial andperformance reports. Policies and procedures did not adequately guide financial andperformance reporting activities and inadequately address the shortcomings in the internalcontrols that resulted in the above findings reported. Furthermore the IT structure was notapproved by leadership.

Financial and performance management

62. The accounting officer did not ensure that adequate monitoring controls were implemented toensure that reliable financial and performance reports were collated throughout the year aspart of his periodic reporting responsibilities. Regular, accurate and complete financial reportsthat are supported and evidenced by reliable information were not properly prepared.

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Furthermore, management did not adequately review and monitor compliance with applicable laws and regulations. The municipality did not have the requisite skills and capacity required to design and develop the necessary policies and procedures and also had no IT department.

Governance

63. Appropriate risk management activities to ensure that regular risk assessments, includingconsideration of all risks and fraud prevention, are conducted and that a risk strategy toaddress these risks is developed and monitored regularly, was not implemented. The internalaudit function was only operational for three months of the year. The audit committee did noteffectively monitor action plans to address prior year audit findings.

Other reports

64. I draw attention to the following engagement that could potentially impact on the municipality’sfinancial, performance and compliance related matters. My opinion is not modified in respectof this engagement that is in progress.

Investigation

65. An investigation was prompted by the previous municipal manager, undertaken by the Hawkson the alleged irregular sale of property to an external party without following the correctdisposal processes. The investigation was still on-going at the reporting date.

Rustenburg 30 November 2016

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Audit Action Plan

Introduction

Mahikeng Local Municipality has been audited for the past financial years by the Auditor General (South Africa). In the prior financial years, the municipality obtained disclaimer of audit opinions on the audit reports prepared by the AGSA mainly as a result of insufficient and inappropriate audit evidence as a result of ineffective internal control systems pertaining to the various business processes which resulted in the external auditors failing to obtain sufficient appropriate evidence to express an opinion on the fair presentation of the annual financial statements, hence, a disclaimer of audit opinion.

The internal control systems pertaining to compliance with laws and regulations were also identified to have deficiencies and deviations resulting in material audit findings being raised under supply chain management (procurement and contract management), audit of predetermined objectives, waste management and infrastructure as well as the annual financial statements line items for instance expenditure and revenue management.

The objective of the audit recovery plan (audit action plan) is to address the above challenges in detail by formulating practical solutions to address the audit findings raised by the Auditor General (SA) as reported in the final management report 2015‐16. In essence, the audit recovery plan will be used for implementing the solutions identified and also as a monitoring tool for progress report purposes and implementation of corrective action were necessary. The audit action plan is a live document and will be updated on all relevant fields in light with new challenges or mere additions to the roles and responsibilities or remedial actions to the findings raised by the AGSA.

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Audit Action Plan Details

No. Annual financial statements component

Summarised details of the audit finding

Root cause Department Action Plan Activities

2 Cash and cash equivalents Differences noted when casting the bank reconciliation prepared as at 30 June 2016 and differences noted between the cash book balance as per reconciliation to the actual cash book.

1. The initial summary of the bankreconciliation statement submittedto the AGSA did not reflectamounts above one billion due to asystem set up.

2. Lack of regular monitoring andreview of bank reconciliationstatements by a senior official.

Expenditure and Asset Management

Current Period Activities

1. Perform a detailed review of thebank reconciliation statement andagree all figures to supportingevidence and to the figuresdisclosed in the annual financialstatements. Investigate anydifferences identified and makeadjusting entries were required.File separately the supportingdocumentation for the workperformed for submission to AGSA.

Prior Period Activities

1. Investigate the residualdifference that wasn’t resiolved inthe prior year. Determine whichbalance is the correct balance andmake adjusting entries wererequired. File separately thesupporting documentation for thework performed for submission toAGSA.

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6 Cash and cash equivalents Bank accounts not disclosed in the notes to the annual financial statements.

1. List of all municipal bankaccounts not reconciled to the cashand cash equivalents disclosurenote in the annual financialstatements for completeness.



1. Obtain a full list of all municipalbank accounts and reconcile thelisting to the cash and cashequivalents disclosure note in theannual financial statements forcompleteness. Account for anybank account ommitted from thedisclosure note.


1. No corrective measuresrequired. The audit finding wasresolved during the regularityaudit.

7 Cash and cash equivalents The balance disclosed on the financial statements for cash and cash equivalents does not agree to the bank statements, bank confirmation and bank reconciliations.

1. No review/reconciliationperformed between the balancesdisclosed on the financialstatements for cash and cashequivalents to the bankstatements, bank confirmation andbank reconciliations.

2. Inadequate high level review ofthe annual financial statementsbefore the regularity audit.



1. Perform a detailed review of thebank reconciliation statement andagree all figures to supportingevidence and to the figuresdisclosed in the annual financialstatements. Investigate anydifferences identified and makeadjusting entries were required.File separately the supportingdocumentation for the workperformed for submission to AGSA.


1. Investigate the residualdifference that wasn’t resiolved inthe prior year. Determine whichbalance is the correct balance andmake adjusting entries wererequired. File separately thesupporting documentation for thework performed for submission toAGSA.

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Procurement and Contract Management

3 written price quotations were not obtained during the bidding process.

1. Inadequate controls forprocessing of awards mainly thefinal approval process for awardingtenders.

Supply Chain Management Current Period Activities

1. An SCM compliance checklist tobe prepared, maintained andreviewed for all awards made bythe municipality to ensure all theminimum documents prescribed bySCM policies and regulations arefiled together for effective retrievalduring audits.

2. The tender register to bereviewed against the tenderdocuments weekly by the SCMdepartmental head to ensure allprescribed SCM minimuminformation has been attched tofile. Follow ups should beperformed without delay on allnon‐ compliance cases.


Investigate the finding to ensure that no deviation was approved by

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12 Procurement and Contract Management

1. Declarations of interest notobtained for employees employedby state.

2. Declarations of interest notobtained from suppliers.


2. No documented award selectionchecklist attached to tenderdocumentation which clearlystated the preparer, reviewer andapprover.

3. Inadequately trained and under‐ staffed supply chain managmentunit.


1. A control task to beimplemented to ensure that allSCM prescribed documents areattached to tender documentationbefore filing. Incomplete tenderdocuments per tender to becaptured on a separate list andfollowed up on immediately.

2. Background checks to beperformed using various datasources i.e. CIPRO and othergovernment resources available toidentify all related partytransactions. Upon identifying anyof such relationships, the SCMHead to treat the submitted tenderas per the SCM policy.


1. Locate and retrieve all theoutstanding requested declarations

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1. Limitation of scope:

Suppliers in which persons in service of other state institutions have an interest.

2. Limitation of scope ‐ Supportingevidence for payments notsubmitted for awards between R30 000 and R 200 000.

3. Limitation of scope ‐ Supportingevidence for payments notsubmitted for awards between R10 000 and R 30 000.

1. Inadequate recordsmanagement system were theinternal control activities related tothe system are either notimplemented correctly or are notpresent at all.

2. Lack of senior managementinvolvement in monitoring andreviewing the records managementsystem activities.

3. No risk management activities inplace.

Supply Chain Management Current Period Acitivities

1. The records management systemof the municipality will be reviewedin detail and appropriate internalcontrol and monitoring activitiesformulated and implemented toensure that sufficient appropriaterecords are availed for bothmunicipal internal processes andfinancial statement audit purposes.


1. Locate and retrieve all theoutstanding information andsubmit to the AGSA for audit. If theinformation cannot not beobtained, evaluate other possiblealternative documents orinformation that is appropriate andsuffcient for AGSA purposes.

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Deviation motivation letter not prepared for awards between R 10 000 ‐ R 30 000 and R 30 000 ‐ R 200 000.

1. lack of understanding ofthe treatment of Value AddedTax when determining thelowest suppier quotation.

2. Lack of management followups on final auditor's conclusions.


1. An SCM compliance checklist tobe prepared, maintained andreviewed for all awards made bythe municipality to providedetailed guidance to SCM officialsinvolved in the bidding process.

2. The processes followed by SCMofficials to be fully documentedand such supportingdocumentation to be reviewed byinternal audit or any experiancesdelegated official to ensure allapplicable SCM regulations werecomplied with. This processesshould be performed prior to theaward or contract being signed bythe accounted officer.


1. Management to investigate allinstances were VAT was incorrectly

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No declaration of interest obtained from a person in the service of the state for awards between R 10 000 and R 30 000.









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Bidders did not submit an original/certified B‐BBEE certificate for awards between R 30 000 and R 200 000.








20 Prior Financial Year Audit Report Matters

Uncorrected prior year material misstatements:

1. Cash and Cash Equivalents.2. Revenue from exchangetransactions.3. Revenue from non‐exchangetransactions.4. Consumer debtors5. Trade and Other Payables.6. Receivables from ExchangeTransactions.7. Receivables from Non‐ExchangeTransactions. 8. Expenditure

The audit action plan 2015‐16 was not effectively implemented and the progress of implementing the action plan activities was not adequately monitored.

All Current Period Activities

The corrective measures to resolve the findings have been fully disclosed under the relevant annual financial statement component. Refer to the relevant section for the detailed action plan activities.


The corrective measures to resolve the findings have been fully disclosed under the relevant annual financial statement component. Refer to the relevant section for the detailed action plan

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21 Financial Statement Preparation Indication of a going concern risk as the municipality will not be able to settle its short term financial obligations.

Lack of sound financial management activities resulting in a negative financial position.

Budgeting and Reporting Currect Period Activities

1. Implementation of a municipalfinancial management programthat incorporates sound financialanalysis and interpretationactivities to ensure sound financialmanagement, thus, improving themunicipality's liquidity andsolvency status.

2. An annual assessment of thegoing concern status of themunicipality should be performedand clearly documented withsufficient appropriate resons andevidence why the municipality willcontinue to function as a goingconcern for the forseeable future.


No corrective measures will be performed for the prior period as the audit finding can only be

371

22 Unauthorised, Irregular and fruitless and wasteful expenditure

Limitation of scope

Reports on unauthorised, irregular and fruitless and wasteful expenditure submitted by the accounting officer to council, MEC for local government and the Auditor‐General for the year under review i.e. MFMA S32 (4) reports.

1. Lack of a detailed compliancechecklist which is fullyimplemented and monitored on aregular basis.

2. lack of management oversightover compliance matters.

Supply Chain Management Current year

1. The compliance checklist to beprepared to ensure full compliancewith prescribed laws andregulations should have a columnfield for "start" and "end" dates toensure that follow ups oncompliance matters are performedwithin the prescribed timeframesand deadlines.

2. An automated calendar relatingto all compliance matters (with adate attached to it) to be preparedand emailed to all relevant officialsto ensure that the officials areconstantantly reminded of theircompliance duties.

Prior year

No action required. The compliance finding will not automatically be carried over to the next financial

372


Council did not investigate the Unauthorised, irregular, fruitless and wasteful expenditure for recovery and liability determination purposes.

1. Lack of senior management oversight over the recoverability of Unauthorised, irregular and fruitless and wasteful expenditure.

Supply Chain Management Current Period Acitivities 1. Council to approve the investigation of unauthorised, irregular and fruitless and wasteful expenditure. The task should be delegated to a council committee preferably the Municipal Public Accounts Committee (MPAC). The investigation is primarily conducted to determine the recoverability of the aforementioned incurred expenditure. The investigation and the accounting treatment thereafter should be performed as prescribed by MFMA circular 68. 2. Internal audit or an experienced delegated official to review the adequacy of the investigation performed above unless otherwise MPAC delegated the performance of the investigation to internal audit or any other delegated official.

373

28 Compliance 1. Illegal waste dumping hotspotsnot effectively managed andserviced regularly.

2. All the measures to treat,process and dispose of waste asprovided in the NEMWA notaddressed and implementedthrough local waste managementplans and aligned by‐laws thatshould be enforced by dedicatedlaw enforcement officials.

3. Waste minimization strategiesnot developed, implemented,managed and enforced to curb thecontinuous trend of illegal dumpingand improper disposal practices.

4. A designated WasteManagement Officer not appointedto assist and manage therequirements of NEMWA (andother waste legislativerequirements).

1. Lack of operationalmachinery and equipment toeffectively collect waste aroundMahikeng.

2. Lack of aligned by‐laws,policies, plans and reports to aidin waste management activities.

3. Inadequate implementation andmonitoring of by‐laws to minimiseillegal dumping.

4. No waste management officer tomonitor waste managementactivities.

5. lack of management oversightover compliance matters.

Water and Waste Management Current Period Activities

1. Illegal waste dumping hotspotsbe effectively managed andserviced regularly to preventnuisances emanating.

2. All the measures to treat,process and dispose of waste asprovided in the NEMWA beaddressed and implementedthrough local waste managementplans and aligned by‐laws thatshould be enforced by dedicatedlaw enforcement officials.

3. Waste minimization strategiesbe developed, implemented,managed and enforced to curb thecontinuous trend of illegal dumpingand improper disposal practices.

4. A designated WasteManagement Officer is appointedto assist and manage the

44 Compliance Operational activities on the Danville waste landfill site still contravene or fail to comply with the norms and standards stipulated in section 67 (1) (f) and (h) of the NEMWA and section 29 (4) of the ECA. The site is located within 500 m from the Mafikeng Hospital, with serious nuisances and health risks emanating from the site and operational activities.

1. Appointed contractor notperforming according to contractterms.

2. lack of adequate operationalmachinery and equipment formaintenance of the landfill site.

3. Insufficient budgetallocated towards the landfillsite.


Re‐apppoint a new service provider to ensure that the landfill site complies with the permit requirements and other relevant legislation. The environmental manager through the supervision of the relevant departmental director to ensure that the service provider performed their services to ensure compliance with the permit and other legislative requirements.


No action required. The non compliance finding will not automatically be carried over to the next financial period.

374

49 Compliance The Waste Management By‐law is still in draft format with only a draft strategy in place (October 2009) to implement the Nuisance By‐law.

1. Lack of management oversight over compliance matters.

Budgeting and Reporting Currect Period Activities 1. A by‐laws annual review session should be scheduled and attended by all municipal management. All municipal by‐laws should be reviewed in detail for adequacy and relevance. Thereafter, the final reviewed by‐laws should be submitted to the mayoral committee and finally to council for final approval. All b‐laws should then be made available on the municipal website. The aforementioned process should be evidenced by agendas, minutes of meeting and the final by‐laws for purposes of the AGSA regularity audit. Prior Period Activities No corrective measures will be performed for the prior period as the audit finding can only be

375

56 Compliance Internal control deficiencies identified over the management and reporting of environmental matters.

1. Lack of management oversightover environmental matters underthe the following categories:

− Control environment.

− Risk assessments.

− Control activities.

− Information communication & Monitoring.


1. Management should develop apolicy or strategy to identify,address and monitor all general‐ and control weaknesses relating toactivities that may impact on theenvironment and AFS.

2. The budget should beadequately funded to address theenvironmental resource constraintsand priorities listed in the IDP,SDBIP and other environmentalrelated plans at provincial‐, district‐, and local authority level.

Prior year

No action required. The internal control finding will not automatically be carried over to the next financial period.

376

57 Compliance Wastewater Treatment Plants

Not licensed – defective infrastructure, no chlorination system, no flow‐meters (inflow‐ and outflow), maintenance needs, non‐compliance to wastewater effluent standards discharged into the natural water source shortage of certified staff

1. Lack of management oversightover compliance matters relatingto wastewater treatment.

2. Lack of a maintance plan forwastewater machinery andequipment.

3. Insufficient budget allocatedtowards wastewater managementactivities.

4. Lack of sufficiently qualifiedpersonnel in the wastwatertreatment department.


1. The relevant director shouldensure that the wastewaterfacicilities are fully licensedaccording to the relevant legislativerequirements.

2. Control activities should beformulated, implemented andreviewed on a regular basis toensure compliance with legistaliverequirements regarding pollution.The relevant departmental directorshould formulate and implementmonitoring activities in this regardand implement corrective actionswere necessary.

3. The accounting officer and therelevant director should engagewith the district municipality toclarify the requirements of theWSP service level agreementspecifically with regard to the

377

69 Compliance The Municipality to date has not implemented an effective revenue collection management system to enforce fines on the non‐ compliance of the current municipal by‐laws and other legislative requirements, with specific reference to environmental transgressions.

1. Lack of management oversight over by‐laws implementation and monitoring. 2. Absence of an effective revenue management system.

Water and Waste Management Current Period Activities 1. Prepare an environmental checklist to be completed by the relevant head and reviewed by the relevant departmental director. 2. Prepare a financial proposal to the municipal manager and the chief financial officer to address the shortfall in funding the implementation of the aforementioned municipal by‐laws. Follow up on a regular basis by conducting meetings to determine the progress on the funding proposal. Prior Period Activities No action required. The non compliance finding will not automatically be carried over to the next financial period.

378

70 Expenditure Limitation of scope ‐ Invoices not submitted for audit purposes.





Current Period Acitivities




73 Expenditure Suppliers were not paid within 30 days as per MFMA Act 65(2) and 99(2)(b).

1. Iadequate financial managementactivities in place to manage theliquidity of the municipality.





1. No corrective measures to beimplemented for the prior period.The compliance finding does notautomatically get carried over tothe next financial period.

379

75 Expenditure Transactions were recorded in the prior year (2014/15) and also in the current year (2015/16), thus, the 2015/16 accounting records are misstated with the transactions incorrectly recorded.

1. Invoices for incurred expenditureare not captured on the financialsystem when received fromsuppliers to account for theincurred expenditure.

2. The cash basis instead of theaccrual basis of accounting isapplied.

3. The municipal recordsmanagement system has significantinternal control deficiencies.



1. Perform a duplication test for allinvoices for the 2015‐16 and 2016‐17 financial years using thedocument number or transactionnumber as the searching reference.Adjust the accounting records torectify the duplicated transactionsand account for the transaction inthe correct financial year.


1. Re‐visit the entire population ofduplicated transaction in the 2015‐16 and 2014‐15 financial year byperforming a duplication test for allinvoices for the 2015‐16 and 2014‐15 financial years using thedocument number or transactionnumber as the searching reference.Adjust the accounting records torectify the duplicated transactionsand account for the transaction in

380

76 Expenditure Expenditure transactions were recorded inclusive of VAT on expenses not vatable.

1. Incorrect supplier and services VAT parameters set on the financial system. 2. Lack of periodic VAT reviews on transactions and suppliers.


Current Period Activities Review the entire population of vendors that the municipality entered into cash transactions with during the financial year to determine the correct VAT vendor status by using either the name or VAT number of the vendor to determine their VAT vendor status using the on‐line VAT vendor search portal. For all discrepancies identified during the aforementioned exercise, correct the VAT parameters on the finacial system and adjust the VAT control account accordingly together with the susbsequent VAT reconciliations and VAT 201 forms. Prior Period Activities Review the entire population of vendors that the municipality entered into cash transactions with

381

77 Expenditure Transactions were not recorded in the correct accounting period. Transactions relating to the financial year ended 30 June 2016 were recorded in the 2016/17 financial year.

1. Invoices for incurred expenditure are not captured on the financial system when received from suppliers to account for the incurred expenditure. 2. The cash basis instead of the accrual basis of accounting is applied. 3. The municipal records management system has significant internal control deficiencies.


Current Period Activities 1. Centralise the document management system for invoices and record all invoices immediately after approval whether or not a payment has been made or not. Ensure at year end that all accruals are accounted for in the accounting records. Follow up on all payments made after year end to ensure that either the transactions are for the next financial period or if they are for the period under audit, there were all recorded on the accruals or creditors' listing and reported in the annual financial statements. Prior Period Activities 1. Re‐visit the entire population of incurred expenditure for the 2015‐ 16, 2014‐15 and 2016‐17 financial years on a document level and compare the dates on the actual

382


For quotations between R 30 000 and R 200 000 it was noted that no evaluation reports were attached with the payment vouchers. The municipality prior to awarding of bids to suppliers, do not evaluate bids in accordance with preference point system to determine the bidder that scored the highest total number of points:








Suppliers did not provide an original tax clearance certificate/certified for awards between R 30 000 and R 200 000.


2. No procurement checklists withdetails of segregation of duties forpreparer, reviewer and approverper each award for documentssubmitted by suppliers.

3. Inadequately staffed supplychain management unit and lack ofknoledge of SCM regulations andpolicies.





383

81 Expenditure Finance costs incorrectly classified as repairs and maintenance expenses.

1. Lack of periodic (weekly) review by departmental heads of transactions recorded on the general ledger to ensure correctness thereof. 2. Lack of accounting skills and knowledge by finance staff.


Current Period Activities 1. As a preventetive measure, all transactions should be reviewed by the relevant departmental head to ensure correct classification (correct vote utilised). 2. As a corrective measure, review the entire repairs and maintenance vote (per transaction) under the column heading "transaction description" and identify transaction descriptions that indicate possible incorrect classification of transactions as repairs and maintenance (guidance prescribed by GRAP 17). For all such transactions identified, follow up to the supporting evidence and evaluate the nature of the transaction. For all incorrectly classified transactions, reclassify to the correct vote and amend the annual financial statements

384


Awards for supply of goods and services made without following the competitive bidding process and SCM regulations.

1. Lack of management oversight over procurement of goods and services. 2. Inadequately staffed supply chain management unit and lack of knoledge of SCM regulations and policies.

Supply Chain Management Current Period Acitivities 1. The compliance checklist to be prepared to ensure full compliance with prescribed laws and regulations should have a column field for "start" and "end" dates to ensure that follow ups on compliance matters are performed within the prescribed timeframes and deadlines. 2. An automated calendar relating to all compliance matters (with a date attached to it) to be prepared and emailed to all relevant officials to ensure that the officials are constantantly reminded of their compliance duties. Prior Period Activities No corrective measures to be implemented for the previous financial year. The finding is a

385


Winning (award made) suppliers did not submit a valid tax clearance from SARS certifying their tax affairs were in order for the tax year.








386


Suppliers who had awards made through the deviation approach did not submit declarations of interest.









387


No deviation motivation letter prepared by the respective municipal official.








1. Locate and retrieve all the

388


Supporting evidence for awards made through the deviation process not submitted for audit purposes.

1. The municipal records management system has significant internal control deficiencies. 2. No procurement checklists with details of segregation of duties for preparer, reviewer and approver per each award for documents submitted by suppliers. 3. Inadequately staffed supply chain management unit and lack of knoledge of SCM regulations and policies.

Supply Chain Management Current Period Acitivities 1. The records management system of the municipality will be reviewed in detail and appropriate internal control and monitoring activities formulated and implemented to ensure that sufficient appropriate records are availed for both municipal internal processes and financial statement audit purposes. Prior Period Activities 1. Locate and retrieve all the outstanding information and submit to the AGSA for audit. If the information cannot not be obtained, evaluate other possible alternative documents or information that is appropriate and suffcient for AGSA purposes.

389


1. No confirmation wascommunicated to the municipalityfrom the other organ of state thatthe tender secured by the otherorgan of state went through thecompetitive bidding process, thecontract was validly procured ,theprices paid are the same as theoriginal contract and the contractwas valid/ active at the time themunicipality opted to participate.

2. The municipality did notdemonstrate the benefits anddiscounts from securing theservices of a supplier engaged intoby another organ of state.

1. Lack of management oversightover supply chain managementprocesses.



1. An SCM compliance checklist tobe prepared, maintained andreviewed for all awards made bythe municipality to ensure fullcompliance and that all theminimum documents prescribed bySCM policies and regulations arefiled together for effective retrievalduring audits.

2. The tender register to bereviewed against the tenderdocuments weekly by the SCMdepartmental head to ensure allprescribed SCM minimuminformation has been attched tofile. Follow ups should beperformed without delay on all non‐ compliance cases.


Investigate the finding further to

390

88 Expenditure No substantiating evidence to support the difference between the supplier invoice and the amount recorded in the accounting records.

Insufficient detail on the general ledger to provide explanations for unusual transactions or for any other adjustments made to the accounting records.


Current Period Activities Review the entire population of vendors that the municipality entered into cash transactions with during the financial year to determine the correct VAT vendor status by using either the name or VAT number of the vendor to determine their VAT vendor status using the on‐line VAT vendor search portal. For all discrepancies identified during the aforementioned exercise, correct the VAT parameters on the finacial system and adjust the VAT control account accordingly together with the susbsequent VAT reconciliations and VAT 201 forms. Prior Period Activities No corrective measures will be implemented for the prior year.

391


Supplier did not provide an original tax clearance certificate/certified for award purposes.




Supplier did not submit an original/certified B‐BBEE certificate for award purposes.



392


1. Tender awarded withoutfollwing the competitive biddingprocesses.

2. Tender documentation for anaward made not submitted foraudit purposes.







2. An automated calendar relatingto all compliance matters (with adate attached to it) to be prepared

393


Supplier did not furnish the municipality with the declaration on local production and content upon the award of the tender.


Supply Chain Management Current Period Acitivities 1. The records management system of the municipality will be reviewed in detail and appropriate internal control and monitoring activities formulated and implemented to ensure that sufficient appropriate records are availed for both municipal internal processes and financial statement audit purposes. 1. The compliance checklist to be prepared to ensure full compliance with prescribed laws and regulations should have a column field for "start" and "end" dates to ensure that follow ups on compliance matters are performed within the prescribed timeframes and deadlines. 2. An automated calendar relating to all compliance matters (with a date attached to it) to be prepared

394

93 Payables Limitation of scope:

Supporting schedules and other documentation for sundry crditors' balances not submitted for audit purposes.









395

96 Payables Invoices relating the 2015/16 financial year were paid in the 2016/17 financial year but never acrued at year end (2015/16).

1. Invoices for incurred expenditure are not captured on the financial system when received from suppliers to account for the incurred expenditure. 2. The cash basis instead of the accrual basis of accounting is applied. 3. The municipal records management system has significant internal control deficiencies.


Current Period Activities 1. Centralise the document management system for invoices and record all invoices immediately after approval whether or not a payment has been made or not. Ensure at year end that all accruals are accounted for in the accounting records. Follow up on all payments made after year end to ensure that either the transactions are for the next financial period or if they are for the period under audit, there were all recorded on the accruals or creditors' listing and reported in the annual financial statements. Prior Period Activities 1. Re‐visit the entire population of incurred expenditure for the 2015‐ 16 and 2016‐17 financial years on a document level and compare the dates on the actual invoices to the

396

100 Payables Limitation of scope: No supporting evidence for the salary suspense and unallocated deposits account.

1. Inadequate records management system were the internal control activities related to the system are either not implemented correctly or are not present at all. 2. Lack of senior management involvement in monitoring and reviewing the records management system activities. 3. No risk management activities in place.


Current Period Acitivities 1. The records management system of the municipality will be reviewed in detail and appropriate internal control and monitoring activities formulated and implemented to ensure that sufficient appropriate records are availed for both municipal internal processes and financial statement audit purposes. Prior Period Activities 1. Locate and retrieve all the outstanding information and submit to the AGSA for audit. If the information cannot not be obtained, evaluate other possible alternative documents or information that is appropriate and suffcient for AGSA purposes.

397

101 Receivables Incorrect account allocation of debtor payments resulting in incorrect provision for doubtful debt calculations and misstated debtors with credit balances and trade receivables account balances.

1. Lack of effective communicationbetween the Planning andDevelopment, Infrastructure andFinance directorates.

Revenue and Debtors Management Current Period Activities

1. Follow up and reclassify alldebtors payments incorrectlyclassified during the financial yearbased on customer complaints.Only use the correct final debtorsbalance at year end to calculate theprovision for doubtful debt for the2016‐17 financial year.

2. Obtain all the necessarydocumentation from otherdirectorates (Planning &Development and Infrastructure)that relate to new propertydevelopments (any events that willresult in a change in the billingrequirements for a property) andreconcile the information to thedetails on the financial system toensure correct billing.


398

102 Receivables Limitation of scope ‐ Supporting schedules and other documentation for receivables' (other) balances not submitted for audit purposes.





1. Initiate the investigation of ""balances as approved by Council inNovember 2016 and write offbalances were sufficient evidencesupports the decision as instructedby council. MPAC's involvement iscompulsory.


1. Based on the outcome of theinvestigation performed above, thebalances will either be written offor the account balance will remainseparately accounted for in theaccounting records. If the balancesare not written off, alternativesupporting evidence need to beidentified for submission to theAGSA for appropriateness andsufficiency evaluation.

399

103 Receivables Expenditure payments to suppliers incorrectly classified as a receivable (expenditure credits) instead of being correctly classified as a suspense account transaction as a result of the initial incorrect allocation to supplier accounts.

1. Lack of adequate accountingknowledge and skill by financedepartment staff.

2. Lack of periodic (weekly) reviewby departmental heads oftransactions recorded on thegeneral ledger to ensurecorrectness thereof.

3. Suspense account transactionsare not investigated and cleared ontime.


1. A memo to be prepared andcirculated to applicable financestaff detailing how all suppliertransactions should be classifiedaccording to the correct accountingpolicies and principles. Examples oftransactions should be providedincluding the correct votes towhich they should be processed.

2. All suspense accounttransactions should be investigatedand cleared or written off to thecorrect accounts or votes.


1. All the transactions classifiedunder expenditure credits whichshould have been disclosed in asuspense account should beinvestigated and clearedaccordingly.

400

104 Accumulated Surplus Differences identified between the general ledger (Munsoft) and the annual financial statements ‐ accumulated surplus.

1. Adequate reviews were notperformed on adjusting entriesmade in the accounting records.

2. No high level review of theannual financial statements wasperformed.


1. Differences between amountson supporting schedules andamounts disclosed on the annualfinancial statements will be sorelyaddressed by performing a detailedreview of the amounts presentedand disclosed on the annualfinancial statements by comparingsuch amounts to the supportingschedules and investigating anydifferences identitied as mentionedbelow (prior period activities).


1. Perform a detailed reconciliationbetween the accumulated surplustrial balance's and annual financialstatements balance and identify alldifferences. Investigate the reasonfor the difference and substantiatethe difference with sufficientappropriate evidence. Evaluate

401

105 Revenue Differences identified between the supporting evidence (levy report) and the figure disclosed in the annual financial statements.

1. No reconciliation was performedbetween the levy reports and thegeneral dedger.



1. A reconciliation to be performedbetween the levy reports and thegeneral dedger. All the differencesidentified to be investigated indetail and the correct balances tobe determined. Sufficientappropriate information to supportthe differences identified should beprepared and filed separately forsubmission to the AGSA.

2. The Head: Revenue shouldreview in detail the reconciliationstatement and supportinginformation and sign thereconciliation statement as proofof review and isolation ofresponsibility.


1. A reconciliation to be performedbetween the levy reports and the

402

106 Revenue Differences identified between the supporting evidence (investments register) and the figure disclosed in the annual financial statements.

1. No reconciliation was performedbetween the lnvestments registerand the general dedger.



1. A reconciliation to be performedbetween the lnvestment registerand the general ledger figures. Anexternal investment statement tobe obtained and used to verify thefigures on the investment register.All the differences identified to beinvestigated in detail and thecorrect balances to be determined.Sufficient appropriate informationto support the differencesidentified should be prepared andfiled separately for submission tothe AGSA.

2. The Head: Revenue shouldreview in detail the reconciliationstatement and supportinginformation and sign thereconciliation statement as proofof review and isolation ofresponsibility.

403

107 Revenue 1. Residential stands not billed forwater services.

2. Residential stands not billed forrefuse services.

1. No periodic (yearly) customerinformation reviews/auditperformed to ensure the customerinformation and billing are correct.

2. Lack of effective comunicationbetween the Planning andDevelopment, Infrastructure andFinance Directorates regardingchanges or new developments onproperties.

3. Faulty water meters not repairedor replaced.

4. Incorrect basis used forestimating water consumptionwhen actual meter readings arenot available.


1. A full customer informationaudit to be performed. Specificdebtor categories to be prioritisedwould be business and governmentproperties.


3. Increase the projectmanagement monitoring andcorrective measuresimplementation activities to ensurethe current faulty water meter

108 Revenue Residential property charged for water services using the incorrect water tariff.

1. No periodic (yearly) customerinformation reviews/auditperformed to ensure the customerinformation and billing are correct.




The action plan activities will be based on the outcome of the aforementioned procedures (current period activities)

404

109 Revenue The margin percentage of the water distribution loss was not disclosed in the notes to the annual financial statements.

1. A high level review of the annual financial statements was not performed.

Revenue and Debtors Management Current Period Activities 1. Obtain all invoices and related supplier water quantity reconciliation statements (twelve) and the actual water quantity sales (directly from the financial system). Comprehend and apply the formula for calculating water distribution losses as prescibed in MFMA circular 71 (Financial Ratios and Norms) calculate and disclose the water distribution losses for the year. The disclosure note should include the marginal percentage of the water distribution loss. Prior Period Activities 1. Calculate and disclose as a comparative figure the marginal percentage of the water distribution loss.

110 Revenue Residential stand over‐billed on property rates charge.

1. Lack of effective comunication between the Planning and Development, Infrastructure and Finance Directorates regarding changes or new developments on properties.

Revenue and Debtors Management Current Period Activities 1. Obtain all the necessary documentation from other directorates (Planning & Development and Infrastructure) that relate to new property developments (any events that will result in a change in the billing requirements for a property) and reconcile the information to the details on the financial system to ensure correct billing. Prior Period Activities The action plan activities will be based on the outcome of the aforementioned procedures (current period activities).

405

111 Revenue Estimates for water consumption not based on a reasonable basis.

1. Lack of accounting knowledgeand skills regarding accounting forrevenue transactions.

2. Faulty water meters notrepaired or replaced.


1. Increase the projectmanagement monitoring andcorrective measuresimplementation activities to ensurethe current faulty water meterreplacement project is efficientlyand effectively completed.

2. Comprehend and apply thewater consumption estimationbasis prescribed in the debt andcredit control policy. The basis ofestimation to be appliedconsistently for all debtors and forthe entire financial year.


The action plan activities will be based on the outcome of the aforementioned procedures (current period activities).

406

112 Revenue Differences identified between the interest amount on the supporting evidence (bank confirmation) to the interest amount recorded on the investments register.

1. No adequate reviews performedbetween the investment registerand external documentation fromfinancial institutions.

2. Lack of management oversightover standard internal controlactivities.


1. Obtain monthly investmentstatements from the respectivebanks and reconcile the investmentfigures on the investments registerand general ledger to theinvestment statements. Investigateany differences identified andeffect the corrective measures.Prepare and file the supportingevidence separately for the AGSA.


1. Investigate the difference andevaluate which of the figures(Investment register or bankconfirmation) is correct. If anyadjustments are required performthem retrospectively. Prepare andfile the supporting evidenceseparately for the AGSA.

407

113 Revenue Consolidated properties levied separately for municipal services resulting in an overstatement of service charges.

1. Lack of effective comunication between the Planning and Development, Infrastructure and Finance Directorates regarding changes or new developments on properties.

Revenue and Debtors Management Current Period Activities 1. Obtain all the necessary documentation from other directorates (Planning & Development and Infrastructure) that relate to new property developments (any events that will result in a change in the billing requirements for a property) and reconcile the information to the details on the financial system to ensure correct billing. Prior Period Activities The corrective measures will only be implemented for the current financial year as the misstatement identified in the prior year is immaterial to warrant a full reconciliation as prescribed above.

408


Declaration of interest not provided for bids above R 200 000.








No corrective measures will be implemented for the prior period.

116 Payables Differences were identified on the calculation of the short term portion for long term liabilities.

1. Human error during compilationof the annual financial statements.

2. Inadequate detailed review ofannual financial statementspreparation calculations.



1. Detailed reviews to beperformed on all complexcalculations relating to line items ordisclosure notes on the annualfinancial statements. Re‐ calculations should be performedfor all computations before theannual financial statements aresubmitted to AGSA.


1. No corrective measures to beimplemented for the prior period.The audit finding was resolvedduring the regularity audit.

409

118 Payables Differences noted between disclosed amounts on the annual financial statements and the external loan confirmation.

1. Human error during compilationof the annual financial statements.

2. Inadequate detailed review ofannual financial statementspreparation calculations.



1. For all annual financialstatement figures were reliance isplaced on external sources i.e.external attorney or bankconfirmations, perform a detailedreconciliation between the figuresreported in the draft annualfinancial statements and theexternal confirmation. Investigateany differences identified andinstitute corrective measures. Fileseparately all supporting evidencefor AGSA puposes.



119 Payables Insufficient funds to secure ('back‐ up') the unspent portion of grants disclosed on the annual financial statements.

1. No separate bank accounts aremaintained for conditional grantsto ensure that unspent portions ofsuch grants are equally cash backedat year end.

2. Lack of management oversightover compliance matters.



1. Open or account for allconditional grants in a separatebank account for accountabilitypurposes.



1. No corrective measures to beimplemented for the prior period.The compliance finding does notautomatically carry over to thenext financial year.

410

120 Cash and cash equivalents Municipal bank accounts not fully disclosed in the annual financial statements.

1. No reconciliation performedbetween the list of municipal bankaccounts and the disclosure noteon cash and cash equivalents.



1. Obtain a full list of all municipalbank accounts and reconcile thelisting to the cash and cashequivalents disclosure note in theannual financial statements forcompleteness. Account for anybank account ommitted from thedisclosure note.



121 Cash and cash equivalents Accounting policy not disclosed under note 1 of the annual financial statements.

1. No high level review of theannual financial statements wasperformed to ensure fulldisclosure.


Currect Period Activities

1. All matters relating toincomplete presentation anddiscosure notes will be addressedby performing a high level reviewof the annual financial statementsupon preparation completion.

2. The GRAP disclosure checklistand MFMA annual financialstatements disclosurerequirements to be used to aid indetermining the completeness ofdisclosure notes in the annualfinancial statements.



411

122 Commitments Capital Projects not included in the contract register.

1. No central contract/commitmentregister was prepared detailingboth operational and capitalcommitments.

2. Lack of project and contractmanagement knowledge and skills.


1. Prepare a consolidated contractregister that includes bothoperational and capitalcommitments. The register shouldbe updated monthly to ensure alldetails are correct especially themonetary figures and completionstages. The monetary details onthe register should be consistentwith the figures reported in theannual financial statements underthe commitments' disclosure note.


No corrective measures to be implemented for the previous financial year. The finding is an internal control deviation matter and will not automatically be carried over to the next financial year.

412

126 Employee Benefits Incorrect salary scales used to calculate councillors remuneration.

1. Inadequate reviews wereperformed before and after thecouncillors' benefits werecalculated and implemented.

2. Lack of oversight regardingcorrectness of political officebearers remuneration.



1. Use the relevant governmentgazzette to determine the correctmunicipal grading. Ensure that therevenue and population figures areas per the prescribed guidance andthe figures are accurate. Select thecorrect municipal grading and usethe council remuneration limitsthat are applicable to thedetermined municipal grading. Theinternal audit unit or a qualifieddelegated official to review theupper limits selected forcorrectness before and afterimplementation.



413

127 Employee Benefits Several key vacant posts have not been addressed , i.e., by recruiting and selecting individuals to fill up the posts.

1. High turnover of middle andsenior management.

2. Lack of a management continuityplan.

3. Municipal budget notfully funded (cash backed).



1. Initiate the recruitment and selection process for all key vacant positions. Ensure that all such positions are on the approved staff establishment. Engage the National Treasury during the recruitment and selection process as directed by NT during 2016.

2. Ensure that there is a budget for the appointment of the aforementioned staff members.

3. Prepare and implement a staff continuity plan to ensure that the Mahikeng Local Municipality continues to effectively function during periods of high turnover.


1. No corrective measures to beimplemented for the prior period.

414

128 Employee Benefits Timeous monitoring of overtime worked for each month.

1. Lack of management oversightover the overtime systemprocesses.



2. Standard operating proceduresfor overtime approval processesshould be revised and approved bythe accounting officer and chiefaccounting officer. The SOPs shouldinclude review and monitoringactivities. Implementation of theSOPs should be monitored bydepartmental heads/managers.The payroll system to beprogrammed to "cap" excessovertime that can be captured perweek/month with the CFO havingoverride authority for exceptionalcircumstances involving excessiveovertime hours.


No action required. The internal control deviation and compliance matter will not automatically be carried over to the next financial

415

129 Employee Benefits Information on the leave forms, leave register and pay‐day system not reconciled to ensure correctness.

1. Lack of management oversightover the leave system processes.

2. Significant internal controldeficiencies over the leaveapplication and approval processes.

3. No periodic reconciliationsprepared between leave forms,leave registers and the pay‐daypersonnel system.



1. A reconciliation should beperformed between the leaveforms, leave register and the leavereports from the human resoursessystem to ensure accuracy andcompleteness of leave captured.The reconciliation should beperformed monthly to ensuretimely corrective measures to beimplemented and to reduceworkload at the end of thereporting period.


No action required. The internal control deviation and compliance matter will not automatically be carried over to the next financial year.

416

130 Employee Benefits Leave graduity paid to an employee was incorrectly calculated.

1. leave graduity calculationsnot reviewed for correctness bya senior official in the payrolldepartment.

2. No segregation of duties wheninitialising and finalising leavegraduity calculations andpayments.



1. A senior official to review all theleave graduity payments for thefinancial year and re‐calculate thepayments to ensure correctnessthereof. The senior official shouldperform the aforementionedprocedures before the leavegraduity payments are made toemployees. The senior officialshould isolate his or herresponsibility by signing therelevant documentation in thatregard.


1. Review all the leave graduitypayments for the financial year andre‐calculate the payments toensure correctness thereof. For allerrors identified, perform adjustingentries in the accounting recordsand file separately the supporting

417

131 Employee Benefits The Skills Development Levy (SDL) was not disclosed in the annual fnancial statements.



Currect Period Activities




1. The figure for the skillsdevelopment levy to bedetermined and disclosed as acomparative figure in the annualfinancial statements.

418

132 Employee Benefits 1. Leave days not capturedtimeously on pay‐day system.

2. Leave taken before approval.

1. Lack of management oversightover the leave system processes.

2. Significant internal controldeficiencies over the leaveapplication and approval processes.

3. No periodic reconciliationsprepared between leave forms,leave registers and the pay‐daypersonnel system.



1. A reconciliation should beperformed between the leaveforms, leave register and the leavereports from the human resoursessystem to ensure accuracy andcompleteness of leave captured.The reconciliation should beperformed monthly to ensuretimely corrective measures to beimplemented and to reduceworkload at the end of thereporting period.


No action required. The internal control deviation and compliance matter will not automatically be carried over to the next financial year.

419

136 Employee Benefits Pay‐As‐You‐Earn (PAYE) for an individual was incorrectly calculated.

1. PAYE calculations (automated)not reviewed for correctness by asenior official in the payrolldepartment by performingrecalculations and performingreasonability assessments.

2. Employees' lack of attention todetail when receiving monthly pay‐ slips for unusually high taxes.



1. A detailed review to beperformed by a tax specialist toidentify all possible cases ofincorrect PAYE calculations anddeductions after every payroll run(monthly). All instances to berectified in the accounting recordsand all affected employees to benotified of the errors and possiblecorrective measures i.e. annual taxreturn process.


1. A detailed review to beperformed by a tax specialist and aprogrammer to identify all possiblecases of incorrect PAYE calculationsand deductions. All instances to berectified in the accounting recordsand all affected employees to benotified of the errors and possiblecorrective measures if that has not

420

137 Payables Limitation of scope and compliance:

1. A risk assessment was not performed for the Mahikeng Local Municipality.

2. Creditors' reconciliationsnot performed.

3. Declaration of interest by all section 57 employees, SCM officials and all councillors not prepared and signed.

1. No risk assessment unit appointed to perform risk management activities.

2. Suppliers are not instructed to submit monthly statements to the Mahikeng Local Municipality to enable the finance department to prepare creditors' reconciliations.

3. Lack of oversight from the governing structures of the Mahikeng Local Municipality.



1. Recruit and appoint a riskmanagement unit team. Detailedguidance of such a unit should beobtained from IRMSA. The riskmanagement should should thenformulate and implement a riskmanagement system. Alternatively,the accounting officer can eitherdelegate the responsibility of therisk management system to theinternal audit unit or to a qualifiedexperienced official.

2. For all major suppliers orservice providers (contracts aboveR 200 000), request monthly (wereapplicable) statements andperform reconciliation statementsbetween the accounting recordsand the supplier statement. Thereconciliation statements shouldmeet the requirements prescribedin the document/records

421


1. A risk assessment was not performed for SCM processes.

2. Register of bids received and bid results are not published on the municipal website.

3. The Mahikeng Local Municipality did not inform bidders of their right to object a decision regarding a bid within 14 days of such decision having been made.

1. No risk assessment unitappointed to perform riskmanagement activities.

2. Lack of a compliance checklistwhich is implemented, monitoredand signed off at the end of thefinancial year by the accountingofficer.

3. Lack of an SCM compliancechecklist hich is implemented,monitored and signed off at theend of the financial year by thechief procurement officer andaccounting officer.


1. Accounting officer and chieffinancial officer to assign internalaudit or any other qualified officialsto design an internal controlsystem that addresses compliance,financial and performancereporting. The delegated officialsafter approval from both theaccounting officer and chieffinancial officer should implementthe internal control system.

2. Internal audit should evaluatethe efficiency and effectiveness ofthe internal control system andreport identified findings to theaccounting officer and chieffinancial officer for correctiveaction implementation.

3. An SCM compliance checklist tobe prepared to ensure fullcompliance with prescribed laws

422


1. The SCM policy does not statethe fact that the accounting officermust make the register of bidsavailable for public inspection.

2. 1. SCM policy does not state to2. Publish the entries in the register and bid results on the website of the Mahikeng Local Municipality as required by SCM regulation 23.

1. The SCM policy is notperiodically reviewed (annually)and reconciled to the SCMregulations to ensure consistencyand full compliance.


1. Review the municipal SCM policyand align it to the latest SCMregulations as issued by NationalTreasury. Submit the revised SCMpolicy to council for approval. Allthe prescribed SCM regulationsshould be incorporated into themunicipal SCM policy. Internalaudit unit or a delegatedexperienced official to perform aline by line review of the SCMpolicy for consistency andcompleteness.


1. No corrective measures requiredfor the prior year. The internalcontrol and compliance finding willnot automatically be carried overto the next financial period.

423


1. The amount on the irregularexpenditure register differs to theamount on the related invoivceand other supportingdocumentation.

The amount on the invoice was erroneously duplicated on the irregular expenditure register.


1. Detailed reviews to beperformed by experiencedpersonnel on the irregularexpenditure registers against allsupporting evidence to ensureaccuracy and completeness of thereported irregular expenditure forthe financial year. Detailed controlactivities should be formulated thatincorporate accuracy andcompleteness of irregularexpenditure incurred.


1. Review the irregular expenditureregister to identify all instanceswere amounts were incorrectlyrecorded. Adjust the annualfinancial statements to include thecorrect irregular expenditure figurefor the year. File separately thesupporting documents for AGSA

424


Limitation of scope:

Supporting evidence for irregular expenditure disclosed not submitted for audit.





1. The records management systemof the Mahikeng Local Municipalitywill be reviewed in detail andappropriate internal control andmonitoring activities formulatedand implemented to ensure thatsufficient appropriate records areavailed for both municipal internalprocesses and financial statementaudit purposes.



425


An award between R 10 000 and R 30 000 was made using an amount exclusive of VAT.

1. Lack of applicationknowledge and skill of SCMregulations.

2. lack of management oversightover the SCM processes ‐ awardingof tenders.


1. The compliance checklists to beprepared to ensure full compliancewith prescribed laws andregulations should have a columnfield for "start" and "end" dates toensure that follow ups oncompliance matters are performedwithin the prescribed timeframesand deadlines. The checklistsshould provide sufficient guidanceto enable officials to makeinformed decisions whenevaluating bids.


No action required. The compliance finding will not automatically be carried over to the next financial period. Though there are indications that the same compliance matters are recurring in the current financial year.

426


No declaration of interest obtained from a person in the service of the state for awards between R 10 000 and R 30 000.




Supply Chain Management Currect Period Activities



3. A separate disclosure note tomade in the annua financialstatements regarding all instancesof non‐compliance with the MFMA.


1. Identify and disclose all instances

427


Deviations for awards between R 10 000‐R30 000 and R 30 000‐R200 000 not reported to council.


2. lack of management oversightover the SCM processes ‐ Reportingrequirements.


1. The compliance checklists to beprepared to ensure full compliancewith prescribed laws andregulations should have a columnfield for "start" and "end" dates toensure that follow ups oncompliance matters are performedwithin the prescribed timeframesand deadlines. The checklistsshould provide sufficient guidanceto enable officials to report to therelevant officials accurately and infull.


No action required. The compliance finding will not automatically be carried over to the next financial period.


No evidence that requests for quotations were advertised on the municipal boards for at least 7 days:


2. lack of management oversightover the SCM processes ‐Publications.


1. The compliance checklists to beprepared to ensure full compliancewith prescribed laws andregulations should have a columnfield for "start" and "end" dates toensure that follow ups oncompliance matters are performedwithin the prescribed timeframesand deadlines. The checklistsshould provide sufficient guidanceto enable officials to publicise infull all information as prescribed byMFMA.



428


Expenditure not qualifying as irregular was erroneously recorded on the irregular expenditure register.

1. Inadequate detailed review ofthe irregular expenditure workingpapers.


1. Detailed reviews to beperformed by experiencedpersonnel on the irregularexpenditure registers against allsupporting evidence to ensureaccuracy and completeness of thereported irregular expenditure forthe financial year. Detailed controlactivities should be formulated thatincorporate accuracy andcompleteness of irregularexpenditure incurred.


1. Review the irregular expenditureregister to identify all instanceswere amounts were incorrectlyrecorded. Adjust the annualfinancial statements to include thecorrect irregular expenditure figurefor the year. File separately thesupporting documents for AGSA

154 Budget Budgeted and actual figures for gains on disposal of PPE not included in the Statement of Budget and Actuals comparison.





No corrective measures will be performed as the finding was resolved during the regularity audit.

429

163 Financial Statement Preparation Limitation of scope and AFS preparation:

1. Supporting evidence for prioryear irregular expenditureadjustment not submitted for auditpurposes.

2. Supporting evidence for prioryear trade receivables adjustmentnot submitted for audit purposes.




Budgeting and Reporting Current Period Activities

A records management policy and manual to be prepared that includes all municipal documentation processes. The policy should be approved by council and immediately implemented. Standard Operating Procedures regarding document preparation, approval, processing and filing (including custodianship) to be prepared and implemented in line with the records management policy. Internal audit or a delegated official to review and monitor the implementation of the records management policy.


Information requested by the Auditor General to be located and retrieved. The documentation should be submitted to the Auditor

164 Compliance The internal audit unit was not functional for the entire financial year.

1. The internal audit unit was discontinued in‐order to opt for the shared services model with the District Mahikeng Local Municipality.


The Mahikeng Local Municipality to enter into a shared services agreement for internal audit services with the district municipality. The terms and conditions of the agreement should be in line with the requirements of MFMA circular 65 and IIA regulations.


No corrective measures will be performed for the prior period as the audit finding can only be addressed prospectively

430

165 Internal Controls 1. The entity has not established a formal code and other policies communicating appropriate ethical and moral behavioural standards and addressing acceptable operational practices and conflicts of interest.2. High reliance on the consultants for financial reporting requirements3. Mahikeng local municipality has codes in place however, these are not acknowledged by signature from all employees. Codes of conducts are freely displayed fro staff to view and read.4. The Mahikeng Local Municipality does not have an approved recruitment policy for the year.5. No evidence that employees are provided with constructive job performance counselling.6. There is no a policy on skills retention and monitoring of the competency of staff in place to

1. Lack of management oversightover compliance matters, financialreporting and performancemanagement.


1. Accounting officer and chieffinancial officer to assign internalaudit or any other qualified officialsto design an internal controlsystem that addresses compliance,financial and performancereporting. The delegated officialsafter approval from both theaccounting officer and chieffinancial officer should implementthe internal control system.

2. To aid in the monitoring of thecontrol activities implemented, aninternal control checklist to beprepared and implemented as amonitoring tool.

3. Internal audit should evaluatethe efficiency and effectiveness ofthe internal control system andreport identified findings to theaccounting officer and chief

168 Financial Statement Preparation Disclosure notes in the annual financial statements not prepared according to the GRAP disclosure checklist.




2. The GRAP disclosure checklist tobe used to aid in determining thecompleteness of disclosure notes inthe annual financial statements.



431

170 Financial Statement Preparation Final totals and balances on caseware annual financial statements preparation application software differ from the totals and balances on Munsoft financial system.

Adjustments performed on the professional caseware application software not effected on the municipal financial system (Munsoft) resulting in differences.


1. Differences between amountson supporting schedules (generalledger and listings etc.) andamounts disclosed on the annualfinancial statements will be sorelyaddressed by performing a detailedreview of the amounts presentedand disclosed on the annualfinancial statements by comparingsuch amounts to the supportingschedules (general ledger andlistings etc.) and investigating anydifferences identitied as mentionedbelow (prior period activities).


1. Perform a detailed reconciliationbetween the Caseware balancesand the Munsoft balances andidentify all differences. Investigatethe reason for the difference andsubstantiate the difference with

171 Financial Statement Preparation The disclosure note relating to financial instruments did not include further details relating to credit risk, liquidity risk and interest rate risk.







432

172 Compliance The accounting officer did not report to the mayor, Council, the MEC for local government and the Auditor General in writing on the cases of unauthorized, irregular and fruitless expenditure incurred

1. Lack of management oversightover compliance with laws andregulations.

2. No compliance checklistprepared, implemented andmonitored on a periodic basis bysenior management.

3. No compliance officer appointedto oversee all compliance relatedmatters.


1. The non‐compliance matter tobe included in the laws andregulations compliance checklist.

2. Monthly extracts of the irregular,unuthorised and fruitless andwasteful expenditure register tobe reviewed by chief financialofficer and accounting officerbefore the details of suchexpenditure are reported to themayor, MEC and the AuditorGeneral (SA).

Prior year

1. No action required as the non‐ complince audit finding will only beapplicable to the financial yearunder audit i.e. the audit findingwill not accumulate orautomatically be applicable in thenext financial year.

433

174 Compliance The Mahikeng Local Municipality incurred expenditure in excess of its budget without following the correct approval process.

The figures used to determine the budget variances were according to the initial 2015‐16 budget and not the adjusted budget.


1. By way of review of thestatement of budget and actualscomparison presented in theannual financial statements, ensurethat the adjusted budget figuresare used as the final budget figureswhen comparing the budgetedfigures to the actuals.



No corrective measures required as the matter was resolved during the regularity audit.

175 Payables Limitation of scope:

Supporting evidence (external confirmation from The National Lottery Board) for the National Lottery Grant not submitted for audit.






1. The records management systemof the Mahikeng Local Municipalitywill be reviewed in detail andappropriate internal control andmonitoring activities formulatedand implemented to ensure thatsufficient appropriate records areavailed for both municipal internalprocesses and financial statementaudit purposes.



434

178 Financial Statement Preparation A discosure note for all non‐ compliance matters with the MFMA was not reported on the annual financial statements.







182 Compliance Quarterly performance reports are not submitted to council by the Executive Mayor.


2. No appointed compliance officerto monitor all compliance mattersand implement correctivemeasures were necessary.



2. Internal audit to review thecompleted checklist and report anyidentified findings to theaccounting officer for correctiveaction implementation.



435

184 Compliance Council did not approve the terms and reference for investigations performed on employees.


2. No appointed complianceofficer/official to monitor allcompliance matters and implementcorrective measures werenecessary.






187 Compliance No contract management in place for professional consultants.

1. No contract manager/officialappointed to oversee contractmanagement.

2. Inadequate performancemanagemen system/projectmanagement to monitorconsultants and implementcorrective action when required.


1. A separate "Use of Consultants"compliance checklist to beprepared and implemented. Thechecklist should be detailed andinclude all legislative requirementsregarding the "use of consultants"i.e. MFMA circular 81 CostContainment Measures.

2. Internal audit to review thecompleted checklist and report anyidentified findings to the chieffinancial officer for correctiveaction implementation.



436

188 Property, Plant and Equipment The asset register is not regularly updated with the latest asset information.

1. Lack of knowledge and skill bythe finance staff in the assetmanagement department.

2. Lack of management oversightover internal control activities andstandard operating procedures.

3. The asset management systemhas significant internal controldeviations and deficiencies.



1. The movable asset registershould be reconstructed in itsentirety. A detailed program shouldbe prepared and implemented inthat regard. All GRAP 17requirements regarding movableassets should be applied wererelevant.


1. No action required. The internalcontrol deviation and compliancematter will not automatically becarried over to the next financialyear.

191 Property, Plant and Equipment Difference between the capital expenditure from the MIG grant (DORA) and the grant register for expenditure.

1. Multi year capital projectsexpenditure for the financial yearexceeding the budgeted MIGallocation for the financial year.



1. Perform a reconciliationbetween the grant register and theallocation on the DORA schedulesto determine and investigate thecauses for under and overspending. Determine if anyadjustments should be made to theaccounting records. File separatelyall documentation for AGSApurposes.


1. Investigate the differencesidentitied between theexpenditure on the grant registerand the allocation on the DORAschedules. Determine if anyadjustments should be made to theaccounting records. File separatelyall documentation for AGSApurposes.

437

192 Property, Plant and Equipment Projects were recogised as Property, Plant and Equipment without a completion certificate in place to substantiate that the projects were completed.






1. Ensure through detailed reviewsper projects that only projects withcertified completion certificates arecapitalised as property, plant andequipment in the accountingrecords. Were completioncertificates are not available,identify alternative documentationto substantiate the completion ofthe project for AGSA purposes.


1. No corrective measures to beimplemented. The audit findingwas resolved during the regularityaudit.

193 Property, Plant and Equipment Additional assets capitalised were incorrectly disclosed under the transfers section instead of the additions section.

1. No high level review of theannual financial statements wasperformed to ensure correctpresentation and disclosure.

2. Inadeaute detailed review ofworking papers relating PPEcalculations for annual financialstatement preparation purposes.



1. As part of the high level annualfinancial statements review, add aprocedure to obtain assurance thatall additions under PPE arecorrectly classified as "additions"and all transfers from WIP arecorrectly disclosed as "transfers"on the PPE disclosure note.



438

194 Property, Plant and Equipment A pior period error correction for Property, Plant and Equipment was incorrectly disclosed as part of investment property.

1. Inadeaute detailed review ofworking papers relating Property,Plant and Equipment andInvestment Property calculationsfor annual financial statementpreparation purposes.



1. Perfom detailed reviews andreconciliations between the finalAFS preparation working papersand and the figures reported in theannual financial statements foraccuracy and completeness. Thereview and reconciliation processshould be part of the AFSpreparation work‐plan.



195 Property, Plant and Equipment Capital Projects not regularly monitored resulting in under‐ performance.

1. No contract manager/officialappointed to oversee contractmanagement.

2. Inadequate performancemanagemen system/projectmanagement to monitorconsultants and implementcorrective action when required.



1. A contract managementframework and system should beestablished to efficiently andeffectively manage contracts andrelated projects. A related internalcontrol system should also beestablished and reviewed foradequacy and effectivenessregularly by the internal audit unitor a qualified delegated official.


1. No action required. The internalcontrol deficiency finding will notautomatically be carried over tothe next financial year.

439

196 Property, Plant and Equipment The depreciation charge for the landfill site was not calculated and accounted for resulting in an overstatement of assets and understatement of expenditure (depreciation).


2. No detailed review of theworking papers for property, plantand equipment was performed.

3. Inadequate annual financialstatements preparation plan.



1. The annual financial statementspreparation plan should includethe procedure to calculate theannual depreciation for the landfillsite asset.



197 Inventory No financial assessment was performed of obsolete, slow moving and damaged inventory resulting in the overstatement of inventory as no write off were performed.

1. Lack of knowledge and skill bythe finance staff in the assetmanagement department.

2. Lack of management oversightover internal control activities andstandard operating procedures.

3. The asset management systemhas significant internal control



1. The annual financial statementplan under should include theprocedure to identify all obsolete,damaged or slow moving inventoryand write them off/down to thelower of cost or net realisablevalue.


1. The audit finding will only beresolved prospectively.

440

198 Payables The finance lease portion was incorrectly disclosed as trade payables instead of separate disclosure as prescribed by GRAP 1 and GRAP 13.





1. Detailed reviews to beperformed on all complexcalculations relating to line items ordisclosure notes on the annualfinancial statements. Re‐ calculations should be performedfor all computations before theannual financial statements aresubmitted to AGSA.

2. The audit finding to form part ofthe high risk areas to be addressedduring the high level review of theannual financial statements.



441

199 Payables Interest due was not recorded/acrued resulting in the understatement of the interest expense.


2. Human error during preparationof the annual financial statements.



1. Detailed reviews to beperformed on all calculationsrelating to line items or disclosurenotes on the annual financialstatements. Re‐calculations shouldbe performed for all computationsbefore the annual financialstatements are submitted to AGSA.




442

3 Payables Leased assets not fully accounted for in the accounting records. Twenty eight instead of thirty leased assets were accounted for in the accounting records.









443

4 Property, Plant and Equipment Differences identified between asset supporting schedules and the annual financial statements.

1. . Human error duringpreparation of the annual financialstatements.

2. Adequate reviews were notperformed on adjusting entriesmade in the accounting records.




2. For all amounts presented in theannual financial statements,perform a comparison between thefinal TB amounts and the finalamounts on the supportingevidence (listings, calculations etc.).This should form part of the annualfinancial statement preparationplan.


1. Investigate the differences andascertain the correct balance thatought to have beeen presentedand disclosed in the annualfinancial statements. Make the

5 Property, Plant and Equipment No financial assessment was performed at year end to determine if the residual value and the useful life of assets was still relevant (requiring revision) for the financial year.

1. Inadequate annual financialstatement preparation plan.

2. Inadequate asset managementsystem with significant internalcontrol deficiencies.

3. Lack of skills and knowledgeregarding asset accounting bypersonnel in the assetmanagement department.



1. The annual financial statementspreparation plan should includethe procedure to re‐assess theresidual value and useful life of allassets based on the phycialverification exercise.



444

9 Property, Plant and Equipment 1. No purchase dates for assets onthe asset register.

2. The funding source per asset wasnot recorded on the asset register.

3. The condition of the assets wasnot recorded on the asset register

1. Lack of management oversightover asset management activities.

2. Lack of knowledge and skill bypersonnel in the assetmanagement department.

3. No documented andimplemented asset managementstandard operating procedures toguide personnel on assetmanagement activities.






10 Property, Plant and Equipment No regular reconciliations performed between the financial system records and the 'external' asset register.






1. A procedure to be added to theasset management system SOPs toregularly (monthly) performreconciliation statements betweenthe general ledger PPE votes andthe asset register. Thereconciliation statements to beprepared based on thedocument/records managementpolicy and filed separately for AGSApurposes.



445

11 Property, Plant and Equipment Finance lease assets not depreciated thereby overstating assets and understating expenditure (depreciation).


2. No detailed review of thefinance lease working papers wasperformed.

3. Inadequate annual financialstatement preparation plan.







14 Property, Plant and Equipment Assets could not be physically verified due to insufficient information on the asset register to enable positive identification of all the assets.









446


Interest charged on overdue accounts not recorded on the fruitless and wasteful expenditure register.

1. No detailed review of theworking papers for fruitless andwasteful expenditure.

2. Human error during preparationof the fruitless and wastefulexpenditure register.


1. Detailed reviews to beperformed by experiencedpersonnel on incurred fruitless andwasteful expenditure against allsupporting evidence to ensureaccuracy and completeness of thereported fruitless and wastefulexpenditure for the financial year.Detailed control activities shouldbe formulated that incorporateaccuracy and completeness offruitless and wasteful expenditureincurred.


1. Review the fruitless and wastefulexpenditure register to identify allinstances were amounts wereincorrectly recorded. Adjust theannual financial statements toinclude the correct fruitless andwasteful expenditure figure for the

447


Deviations for awards between R 10 000‐R30 000 and R 30 000‐R200 000 not disclosed in the annual financial statements.


2. Lack of application knowledge ofMFMA reporting requirements.




3. A separate disclosure note tomade in the annual financialstatements regarding all instancesof non‐compliance with the MFMA.



448


Reasons fpr deviations for awards between R 10 000‐R30 000 and R 30 000‐R200 000 not reported to council.


2. No compliance officer/personnelappointed to manage allcompliance related matters.



1. The compliance checklists to beprepared to ensure full compliancewith prescribed laws andregulations should have a columnfield for "start" and "end" dates toensure that follow ups oncompliance matters are performedwithin the prescribed timeframesand deadlines. The checklistsshould provide sufficient guidanceto enable officials to report to therelevant officials accurately and infull.



449


Deviations for awards between R 30 000‐R200 000 not disclosed in the annual financial statements.






3. A separate disclosure note tomade in the annual financialstatements regarding all instancesof non‐compliance with the MFMA.



450


1. A contract secured throughanother organ of the state in termsof section 32 of the supply chainmanagement regulation was notincluded in the municipal contractregister.

2. Quotations between R 30 000and R 200 000 were not included inthe contract register.

3. Awarded tenders did not havethe names of the contractor andcontract amount.

1. Lack of management oversight ofthe supply chain managementprocesses.

2. Lack of application knowledgeand skill by personnel in the supplychain management department.

3. No documented standardoperating procedures for SCMprocesses.

4. Awards not reconciled to thecontract register on a regular basisfor completeness and accuracypurposes.

5. Contract register not reviewedby senior personnel for accuracyand completeness.


1. Prepare a consolidated contractregister that includes bothoperational and capitalcommitments (including awardsbetween R 30 000 ‐R 200 000). The register should beupdated monthly to ensure alldetails are correct especially themonetary figures and completionstages. The monetary details onthe register should be consistentwith the figures reported in theannual financial statements underthe commitments' disclosure note.All the key contract details shouldbe recorded (summarised) on theregister to enhance the usefulnessof the register for reportingpurposes.


1. Evaluate the financial impact of

451


Limiation of scope

Bid evaluation committee meeting minutes not included in the tender file and subsequently not submitted for audit purposes.









Limiation of scope

Competitive bidding supporting evidence not submitted for audit purposes.








452

30 Procurement and Contract Contracts do not adequately 1. Inadequate contract Supply Chain Management Current Period Acitivities Management stipulate terms and conditions for management system.

underperformance and dispute 1. Formulate and implement aresolution. 2. No delegated official to perform comporehensive contract

contract management activities on management system thata daily basis. addresses all fundamental contract

management issues. The system3. Contracts not reviewed should be evaluated by the internalperiodically to address any audit unit, legal department and orlooholes and for corrective action any other qualified delegatedpurposes. official.

4. No documented performance 2. Internal audit or any othermanagement tool to monitor and qualified delegated official toevaluate the outcomes of perform a periodic audit or reviewengagements/assignments tasked of the contract managementto suppliers. system to ensure that the

objectives of the system aresatisified in addition to correctivemeasures being implementedwhen required.


453

31 Payables 1. A difference identified betweenconsumer deposits register andgeneral ledger.

2. The reconciliation statementbetween the consumer registerand the general ledger is notreviewed by a senior official.

1. The reconciliation statementbetween the consumer registerand the general ledger is notreviewed by a senior official.








454

32 Payables A difference was identified between the creditors' listing and the trial balance/General Ledger.

1. No detailed reconciliationstatement is prepared monthly forcreditors.


3. Lack of knowledge and skill oncredit management systems.







455

33 Payables A difference was identified between the retentions listing and the annual financial statements.


2. There was a duplication ofjournals during the adjustment ofthe retenlion money accountbalance.







456

34 Payables Differences were identified between supporting schedules and the prior period error correction note for the following.

1. Inadeaute detailed review ofworking papers relating priorperiod error corrections andadjustments.

2. Inadequate annual financialstatement prepapration plan.

3. Human error during thepreparation of the annual financialstatements.






1. Investigate all the residualdifferences identified anddetermine the correct accountbalances. Adjust the accountingrecords if required and fileseparately all supporting evidencefor AGSA purposes.

457

35 Performance Reporting The adjustment budget did not include information detailing how the adjusted figures would affect the Service Delivery and Budget Implementation Plan (SDBIP).




Office of the Municipal Manager Current Period Activities

1. Prepare a detailed compliancechecklist based on therequirements of the MunicipalSystems Act and MunicipalPlanning and PerformanceRegulations. The checklist shouldinclude a column field for "start"and "end" dates to ensure thatfollow ups are performed to meetthe legislative deadlines.Automated calendars to beprepared using microsoft excel andemailed to respective officials toserve as a constant reminder tocomply with specified laws andregulations.

2. The accounting officer and chieffinancial officer to assign either theinternal audit unit or any otherhighly qualified official to design,implement and monitor an internalcontrol system related to

458

36 Performance Reporting 1. The performance managementpolicy was not adopted by councilbefore the implementation of theIntergrated Development Plan(IDP).

2. The performance managementsystem was not regularlymonitored and reviewed.

1. Lack of management oversightover compliance matters andperformance managementsystems.

2. No compliance officer/personnelappointed to manage allcompliance related matters andthe performance managementsystem.


4. Significant internal controldeficienies related to theperformance management system.


1. The accounting officer and chieffinancial officer to assign either theinternal audit unit or any otherhighly qualified official to design,implement and monitor an internalcontrol system related toperformance reporting and relatedcompliance matters.

2. As part of the above actionactivity, standard operatingprocedures should be prepared perkey performance indicator. Theseries of SOPs prepared perindicator to form the blue print ofthe municipal performancemanagement system.

3. The PMS policy should bereviewed and updated in line withthe latest legislative requirements.The Policy should be tabled incouncil for approval.

459

37 Performance Reporting There were no explanations for the material budget variances (budget vs actual) reported in the monthly budget statements.

1. Lack of management oversightover budgetary controlmechanisms.

2. Significant internal controldeviations and deficiencies relatedto the budgetay system.

3. Lack of application knowledge ofMFMA budgetary reportingrequirements.

4. Lack of adequate review ofmonthly budgetary statements bysenior finance personnel.




460

38 Performance Reporting The mid year budget and performance assessment report did not include information from the mayor's report detailing how the municipality was implementing the budget in accordance with the SDBIP.

1. Lack of management oversightover budgetary controlmechanisms.

2. Lack of application knowledge ofMFMA budgetary reportingrequirements.

3. No dedicated staff member toimplement compliance monitoringactivities guided by a completeMFMA compliance checklist.




461

39 Performance Reporting No documented standard operating procedures for all processes relating to key performance indicators.

1. Lack of senior managementoversight over the entireperformance management system.

2. Lack of application knowledgeand skill of the framework formanaging programme performanceinformation.

3. No appointed performancemanagement unit manager tomanage all apects of theperformance management systemon a daily basis.


1. The accounting officer and chieffinancial officer to assign either theinternal audit unit or any otherhighly qualified official to design,implement and monitor an internalcontrol system related toperformance reporting and relatedcompliance matters.

2. As part of the above actionactivity, standard operatingprocedures should be prepared perkey performance indicator. Theseries of SOPs prepared perindicator to form the blue print ofthe municipal performancemanagement system.

3. The PMS policy should bereviewed and updated in line withthe latest legislative requirements.The Policy should be tabled incouncil for approval.

462

40 Performance Reporting No documented evidence that the accounting officer publicised the approval of the adjusted budget within 10 days after its approval thereof.



3. Lack of application knowledge ofMFMA publication requirements.

4. Significant deficiencies in theinternal control system related tothe records management system.




463

41 Performance Reporting There are no technical data definitions for key performance indicators in the SDBIP.







464

42 Performance Reporting There are no technical data definitions for key performance indicators in the SDBIP.







465

43 Performance Reporting Inconsistencies between reported performance information and the supporting evidence/calculations contained in the portfolio of evidence.

1. Inadequate review per keyperformance indicator to theannual performance report wasperformed.

2. Human error (computations)during the preparation of theannual performance report.


1. Prepare and implement arecords management policy andrecords management systemspecifically for performancereporting. The polices relating toperformance reporting can beincluded in the proposed generalrecords management policy.

2. Internal audit or any qualifieddelegated official to performreviews on the effectiveimplementation of the recordsmanagement policy and relatedrecords management system.

3. As part of the above action planactivities, a portfolio of evidenceshould be prepared per KPI and thePOE should be relevant to the keyperformance indicator and relatedtarget being reported on.

466

45 Performance Reporting Inconsistencies between reported performance information and the supporting evidence/calculations contained in the portfolio of evidence.


2. Human error (computations)during the preparation of theannual performance report.


1. Prepare and implement arecords management policy andrecords management systemspecifically for performancereporting. The polices relating toperformance reporting can beincluded in the proposed generalrecords management policy.


3. As part of the above action planactivities, a portfolio of evidenceshould be prepared per KPI and thePOE should be relevant to the keyperformance indicator and relatedtarget being reported on.

467

46 Performance Reporting Monthly reports for performance information were not signed as proof of review.



1. Prepare and implement arecords management policy andrecords management systemspecifically for performancereporting. The polices relating toperformance reporting can beincluded in the proposed generalrecords management policy. Thepolicy should include a detailedinternal control framework forrecords management.


3. All internal control deviations tobe reported to the accountingofficer and chief financial officerfor corrective action

468

47 Payables Differences identified between the number of emplyees on the actuary's valuation report and the municipal employee listing used to calculate the employee benefits obligation.

1. No detailed review of theworking papers for the employeebenefit obligation to the finalvaluation report prepared by theactuaries.

2. Human error (by the actuaries)during preparation of the valuationreport.






1. Investigate all the residualdifferences identified anddetermine the correct accountbalances and number ofemployees. Adjust the accountingrecords if required and fileseparately all supporting evidence

48 Receivables The disclosure note on Receivables from exchange and non‐exchange transactions was not presented in accordance with GRAP standards which is by municipal service and debtor category.


2. Failure to apply the disclosurerequirements prescribed by theGRAP standards.


1. Upon finalisation of the annualfinancial statements, use the GRAPdisclosure checklist to review thedisclosures in the annual financialstatements for accuracy andcompleteness.


No corrective measures will be implmented as the finding was fully addressed during the regularity audit.

469

50 Receivables Settlement Discounts offered to customers incorrectly classified as bad debts.

1. Human error during thepreparation of the annual financialstatements.

2. lnadequate detailed review ofthe working papers relating tosettlement discount and bad debtswritten off.


1. Review the debtors generalledger, settlement discount voteand bad debts vote on a monthlybasis to identify transactions thatare incorrectly classified. Performthe correcting journals. Prepareand file separately the supportingdocumentation for AGSA purposes.


No corrective measures will be implmented as the finding was fully addressed during the regularity audit.

51 Receivables Limitation of scope:

Application documentation for an indigent debtor was not submitted for audit.





1. A records management policy tobe prepared that includes allmunicipal activities that requiredocument processing. The policyshould be approved by council andimmediately implementedthereafter.

2. Standard Operating Proceduresregarding document filing to beprepared and implemented in linewith the records managementpolicy. Internal audit or a delegatedofficial to review and monitor theimplementation of the recordsmanagement policy.

3. The details of the recordsmanagement policy and relatedstandard operating procedures tobe fully communicated on a regularbasis to all municipal personnelwith documentation related tasks.

470

52 Receivables A difference was noted between the expenditure credits listing and the annual financial statements.

1. Lack of detailed review betweenthe expenditure credits workingpapers and the annual financialstatements to ensure accuracy andcompleteness.


1. Obtain the expenditure creditslisting (including the supportingdocumentation ‐ supplier invoicesetc.) and reconcile the transactionson the expenditure credits listingto the general ledger. Investigateany differences identified andeffect the corrective measures.Prepare and file the supportingevidence separately for the AGSA.


1. Investigate the difference andevaluate which of the figures(expenditure credits listing orgeneral ledger) is correct. If anyadjustments are required performthem retrospectively. Prepare andfile the supporting evidenceseparately for the AGSA.

471

53 Revenue Limitation of scope:

Rateable valuation reconciliation not submittted for audit purposes.

1. The rateable valuationreconciliation was not prepared.

2. Lack of oversight bymanagement on standard internalcontrol activities.


NB: The procedures below will be performed on the supplementary valuation rolls prepared during the 2016‐17 financial year. The general valuation roll is still being compiled and will be effective for the 2017‐ 18 financial year.

1. Obtain all the supplementaryvaluation rolls prepared for the2016‐17 financial year. Generatethe valuation roll from Munsoft(incuding all properties).

2. On a line to line basis (includingall details as recorded on thevaluation roll), reconcile the newvalues on the supplementaryvaluation roll to the values on thesystem generated valuation roll.Follow up on any differences andimplement the corrective actions.This procedure should be

472

54 Revenue No documented monthly rental reconciliation performed between the rental agreements, financial system and bank statements.


2. No standard operatingprocedures established for revenuefrom rental of facilities andequipment.

3. lack of application knowledgeand skill by personnel in therevenue management department.


1. Obtain the rental agreements,rental register and general ledger(including the cashbook).Reconcile (on a monthly basis) thetransactions on the erental registerand general ledger (including thecashbook) to the rentalagreements. Investigate anydifferences identified and effectthe corrective measures. Prepareand file the supporting evidenceseparately for the AGSA.


No corrective measures to be implemented for the prior year as the finding is an internal control deficiency.

55 Compliance The municipal valuation roll is not available on the municipal official website.

1. Lack of management oversightover compliance related matters.

2. No appointed complianceofficial/staff member to implementa compliance checklist andmonutor the outcomes whilstinitialising corrective measures.






473

58 Revenue The municipality hasn’t prepared an up to date general valuation roll as prescribed by the Property Rates Act.

1. Lack of management oversightover compliance related matters.

2. No appointed complianceofficial/staff member to implementa compliance checklist andmonutor the outcomes whilstinitialising corrective measures.

3. Previously appointed municipalvaluer's contract terminated as aresult of under‐performance andirregularities.


1. Follow up on a regular basis(monthly) on the progress of thepreparation of the generalvaluation roll to ensure that theGVR will be ready forimplementation on the 1st of July2017.


No corrective measures to be implemented for the prior financial year as the municipal valuer (for the purpose of preparing a general valuation roll) appointmemt process was still underway and the general valuation roll will not be implemented retrospectively.

59 Revenue A government property was levied a business property rate instead of a government rate.

1. No customer information auditperformed on a periodic basis toensure the correctness ofinformation captured on thecustomer masterfiles.




The action plan activities will be based on the outcome of the aforementioned activities for the 2016‐17 financial year

474

60 Revenue A property that was consolidated into another property was still being levied separately for municipal services.


2. lack of effective communicationbetween the Planning andDevelopment, Infrastructure andFinance Directorates with regard toproperty developments andchanges.





The action plan activities will be based on the outcome of the aforementioned activities for the

475

61 Revenue A difference was noted between the licensing and permiting monthly reports and the total figure reported in the annual financial statements for revenue relating to licensing and permitting.

1. Lack of detailed review betweenthe licensing and permittingreports and the annual financialstatements to ensure accuracy andcompleteness.

2. A monthly licensing andpermitting report was ommitedfrom the final figure reported inthe annual finacial statements.


1. Obtain the licensing andpermiting monthly reports andreconcile the transactions on thereports to the licensing andpermiting general ledger vote.Investigate any differencesidentified and effect the correctivemeasures. Prepare and file thesupporting evidence separately forthe AGSA.


1. Investigate the difference andevaluate which of the figures(licensing and permiting monthlyreports or general ledger) iscorrect. If any adjustments arerequired perform themretrospectively. Prepare and filethe supporting evidence separatelyfor the AGSA.

62 Revenue Incorrect debtor category descriptions on the financial system for property rates on customer accounts though the correct property rates were applied.





No corrective measures to be implemented for the prior year as the finding is an internal control deficiency

476

63 Revenue The banking and capturing of cash is not done as per the cash management policy and supervision of Ottoshoop municipal office is not done timeously.

1. Lack of management oversightover satellite offices.

2. Amount of cash receipted dailyis insuffient to warrant dailybanking.


1. Senior management toformulate and implementmeasures to account for sateliteooffices. The measures shouldprimarily be aimed at ensuring thatall municipal satelite offices abideto all municipal policies. The extentof the involvement in the sateliteoffices should be evaluated on acost‐vs‐benefits analysis.


No corrective measures to be implemented for the prior year as the finding is an internal control deficiency.

64 Revenue Revenue for June 2016 for water services was not fully accounted for in the 2015‐16 financial year. The billing for June 2016 was perfomed on the 23rd of June, hence, the period between 24 June to 30 June was not accounted for.

1. The monthly billing is performedbefore the actual month end dueto administrative matters.


1. Estimate the revenue from waterservices that was incorrectlyaccounted for in the 2016‐17financial year. The figure should becategorised in two: (1) Revenuefrom 2015‐16 (June) that wasincorrectly accounted for in 2016‐17 (July) and (2) Revenue from2016‐17 (June) that was incorrectlyaccounted for in 2017‐18 (July).The aforementioned figures shouldbe set off against each other as theformer is an overstatement in 2016‐ 17 and the latter is anunderstatement in 2016‐17.Determine the net effect of the set‐ off and adjust the annual financialstatements accordingly. Thecalculations should be documentedin detail and filed separately forAGSA purposes.

NB: The estimate should be

477

65 Employee Benefits Overtime payments incorrectly calculated.

1. No detailed review performed bya senior personnel in the payrolldepartment.

2. Human error during thecalculation of the overtime pay‐ out.



1. A senior official to review all theovertime hours for the financialyear and re‐calculate the paymentsto ensure correctness thereof. Thesenior official should perform theaforementioned procedures beforeovertime payments are made toemployees. The senior officialshould isolate his or herresponsibility by signing therelevant documentation in thatregard.


1. Review all the overtime for thefinancial year and re‐calculate thepayments to ensure correctnessthereof. For all errors identified,perform adjusting entries in theaccounting records and fileseparately the supportingdocumentation for AGSA purposes.

478

66 Compliance Employees do not meet the minimum competencies as prescribed by the Municipal Systems Act.


2. Lack of adequate humanresources selection processes.


1. A separate "minimumcompetencies" compliancechecklist to be prepared andimplemented. The checklist shouldbe detailed and include alllegislative requirements prescribedby the Municipal Systems Actregarding minimum competenciesfor municipal staff positions.

2. Internal audit to review thecompleted checklist and report anyidentified findings to the chieffinancial officer for correctiveaction implementation.



210

479

GLOSSARY

Accessibility indicators

Explore whether the intended beneficiaries are able to access services or outputs.

Accountability documents

Documents used by executive authorities to give “full and regular” reports on the matters under their control to Parliament and provincial legislatures as prescribed by the Constitution. This includes plans, budgets, in-year and Annual Reports.

Activities The processes or actions that use a range of inputs to produce the desired outputs and ultimately outcomes. In essence, activities describe "what we do".

Adequacy indicators

The quantity of input or output relative to the need or demand.

Annual Report A report to be prepared and submitted annually based on the regulations set out in Section 121 of the Municipal Finance Management Act. Such a report must include annual financial statements as submitted to and approved by the Auditor-General.

Approved Budget The annual financial statements of a municipality as audited by the Auditor General and approved by council or a provincial or national executive.

Baseline Current level of performance that a municipality aims to improve when setting performance targets. The baseline relates to the level of performance recorded in a year prior to the planning period.

Basic municipal service

A municipal service that is necessary to ensure an acceptable and reasonable quality of life to citizens within that particular area. If not provided it may endanger the public health and safety or the environment.

Budget year The financial year for which an annual budget is to be approved – means a year ending on 30 June.

Cost indicators The overall cost or expenditure of producing a specified quantity of outputs.

Distribution indicators

The distribution of capacity to deliver services.

Financial Statements

Includes at least a statement of financial position, statement of financial performance, cash-flow statement, notes to these statements and any other statements that may be prescribed.

General Key performance indicators

After consultation with MECs for local government, the Minister may prescribe general key performance indicators that are appropriate and applicable to local government generally.

480

Impact The results of achieving specific outcomes, such as reducing poverty and creating jobs.

Inputs All the resources that contribute to the production and delivery of outputs. Inputs are "what we use to do the work". They include finances, personnel, equipment and buildings.

Integrated Development Plan (IDP)

Set out municipal goals and development plans.

National Key performance areas

• Service delivery & infrastructure• Economic development• Municipal transformation and institutional development• Financial viability and management• Good governance and community participation

Outcomes The medium-term results for specific beneficiaries that are the consequence of achieving specific outputs. Outcomes should relate clearly to an institution's strategic goals and objectives set out in its plans. Outcomes are "what we wish to achieve".

Outputs The final products, or goods and services produced for delivery. Outputs may be defined as "what we produce or deliver". An output is a concrete achievement (i.e. a product such as a passport, an action such as a presentation or immunization, or a service such as processing an application) that contributes to the achievement of a Key Result Area.

Performance Indicator

Indicators should be specified to measure performance in relation to input, activities, outputs, outcomes and impacts. An indicator is a type of information used to gauge the extent to which an output has been achieved (policy developed, presentation delivered, service rendered)

Performance Information

Generic term for non-financial information about municipal services and activities. Can also be used interchangeably with performance measure.

Performance Standards:

The minimum acceptable level of performance or the level of performance that is generally accepted. Standards are informed by legislative requirements and service-level agreements. Performance standards are mutually agreed criteria to describe how well work must be done in terms of quantity and/or quality and timeliness, to clarify the outputs and related activities of a job by describing what the required result should be. In this EPMDS performance standards are divided into indicators and the time factor.

481

Performance Targets:

The level of performance that municipalities and its employees strive to achieve. Performance Targets relate to current baselines and express a specific level of performance that a municipality aims to achieve within a given time period.

Service Delivery Budget Implementation Plan

Detailed plan approved by the mayor for implementing the municipality‟s delivery of services; including projections of the revenue collected and operational and capital expenditure by vote for each month. Service delivery targets and performance indicators must also be included.

Vote: One of the main segments into which a budget of a municipality is divided for appropriation of money for the different departments or functional areas of the municipality. The Vote specifies the total amount that is appropriated for the purpose of a specific department or functional area. Section 1 of the MFMA defines a “vote” as: a) one of the main segments into which a budget of a municipality isdivided for the appropriation of money for the different departments orfunctional areas of the municipality; andb) which specifies the total amount that is appropriated for thepurposes of the department or functional area concerned

482

APPENDICES

APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE

Councillors, Committees Allocated and Council Attendance

Council Members

Full Time / Part Time Committees

Allocated *Ward and/ or

Party Represented

Percentage Council

Meetings Attendance

Percentage

Apologies for non-attendan

ce FT/PT % %

Seatlholo G.A. FT The Executive

Mayor PR 91% 9%

Mokgoetsi KKM PT MPAC member PR 55% 45%

Ngqobe N.R. PT Finance / Special Projects PR 55% 45%

Makolomakwa T.J. PT The Executive

Mayor NMMDM PR 55% 45%

Dintoe M.M. FT MMC : Special Projects PR 45% 55%

Jabanyane M.D. FT Chairperson :

MPAC PR 55% 45%

Magogodi M.P. PT Tourism &

Enterprise / LED PR 91% 9%

Mothupi H.R. FT MMC : Finance PR 64% 36% Legalatladi G.U. PT Public Safety PR 91% 9%

Matlhako S.M. PT MPAC member PR 36% 64%

Seepamore K.L. PT Finance /

Infrastructure PR 64% 36%

Mafabatho A.P. PT Traditional Affairs

/ Infrastructure Ward 1 64% 36%

Maloisane S.S.N. FT MMC : Human

Settlement Ward 2 64% 36%

Mosenogi I.S. PT

Corporate Support Services / Special Projects

Ward 3 73% 27%

Thomas G. PT Special Projects Ward 5 45% 55%

483

Babedi P. PT Infrastructure / Human Settlement

Ward 6 0% 0%

Leepile M.M. FT MMC : Tourism & Enterprise Dev. Ward 7 55% 45%

Ntshabele E.T. PT MPAC member Ward 8 73% 27%

Mpengezi N. PT Traditional Affairs / Community Services

Ward 9 0% 0%

Diakanyo K.B. FT The Speaker Ward 10 91% 9%

Moamogwe N. PT

Corporate Support Services / LED

Ward 11 91% 9%

Motsamai I.S PT Finance / Public Safety Ward 14 82% 18%

Poenyane K.A. PT Finance Ward 16 64% 36%

Molale P.P. PT Public Safety Ward 17 73% 27%

Nkoane G.J. PT Community Services Ward 18 73% 27%

Mafete M.E. FT MMC : Traditional Affairs & Stakeholder

Ward 19 82% 18%

Tabane P.M. FT MMC : Corporate Support Services Ward 20 64% 36%

Moepi D.P. PT Tourism Enterprise & Development

Ward 21 55% 45%

Ngobeni B.S. FT Chairperson : Rules Ward 22 91% 9%

Johson O.J. PT Corporate Support Services / Rules

Ward 23 55% 45%

Nkolisa B.G. PT MPAC Ward 24 55% 45%

Novolo G.S. PT Human Settlement / LLF Ward 25 64% 36%

Lolwane A.N PT LED Ward 26 55% 45%

Moeti M.E. FT MMC : Public Safety Ward 27 82% 18%

Nkosi P PT Public Safety / Human Settlement

Ward 28 55% 45%

Lomo F.L. PT Traditional Affairs Ward 29 45% 55%

484

Mathakathaka K.G. FT MMC :

Infrastructure Ward 30 82% 18%

Makolemako M.C. FT

MMC : Community Services

Ward 31 64% 36%

Kgwadibane G.A. FT MMC : LED Ward 12 82% 18%

Makolomakwa T.B. PT MPAC Ward 15 73% 27%

Seheri K.C. PT Human Settlement / Community Services

Ward 13 73% 27%

Miga N.L. PT Tourism & Enterprise / Community Services

PR 36% 64%

Nebe T. FT The Whip PR 82% 18% Chanda M.M PT MPAC member PR 64% 36%

Africa A.J. PT Finance / Public Safety PR 82% 18%

Selepe T.L. PT Corporate Support Services / Rules

PR 82% 18%

Mtunzi D.T. PT LED / Human Settlement PR 82% 18%

Motshegoa T. PT MPAC member PR 73% 27%

Schickerling L. PT Human

Settlement / LLF PR 82% 18%

Bohmer W.N. PT

Tourism & Enterprise / Corporate Support Services

PR 64% 36%

Ngqobe M. PT Traditional Affairs / Human Settlement

PR 82% 18%

Molete G.M. PT MPAC member PR 64% 36%

Lekhobe M.E. PT

Tourism & Enterprise / Public Safety

PR 64% 36%

Matlholwa M.R. PT Finance /

Infrastructure PR 64% 36%

Dingile M.E. PT Public Safety PR 45% 55%

Dibe R.M.A. PT Special Projects / LED Ward 4 73% 27%

485

Mahura S.M. PT Traditional Affairs / Infrastructure PR 64% 36%

Mhatlhe K.K. PT MPAC member PR 36% 64% Mmono C.D. PT MPAC member PR 45% 55% Sephoti M.W. PT Finance PR 55% 45%

Lebelela T.W. PT Traditional Affairs PR 73% 27%

Kgaje G.K. PT Special Projects PR 82% 18% Kgosi Shole G.G. PT None Traditional

Leader 73% 27%

Note: * Councillors appointed on a proportional basis do not have wards allocated to them T A

486

APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES

Committees (other than Mayoral / Executive Committee) and Purposes of Committees

Municipal Committees Purpose of Committee

Rules Making sure that Councilors adhere to rules and regulations as set out

MPAC Playing internal oversight role on municipal administration

LLF Bargaining Forum between employer and labour component regarding matters affecting employees

T B

487

APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE

Third Tier Structure Directorate Director/Manager

Municipal Manager Office Acting Municipal Manager: Mr Mokwena IT Acting Head Legal: Mr Molamu M Head of Office of the Municipal Manager: Mr Malongwa S

Chief Financial Officer Acting Chief Financial Officer: Mr Mathe T Head Budget : Mr Tswaile T Head Income: Mrs Gaepe R Acting Head Expenditure: Mrs Modisa T Head Data: Mrs Hill M Acting Head Supply Chain Management: Mr Modikwane B

Infrastructure Acting Infrastructure Director: Mr Ruiters R Head Roads: Mr Kembo P Head Water and Sanitation: Mrs Moloitsae M

Public Safety Acting Public Safety Director: Mr Nko P Acting Head Law Enforcement: Mr Marumo TJ Head Fire Brigade services: Mr Ramaoka MJ Acting Head Testing and Licencing: Mr Matshe H

Community Service Acting Community Services Director: Mr Komane K Head Parks : Mr Pitso F Acting Head Libraries and Community Facilities: Mrs Nyembe K Acting Head Health Services: Mr Malefo L

Planning and Development Acting Planning and Development Director: Mr Phaedi T Acting Head Local Economic Development: Mr Qelesile M Head Housing: Mr Groenewaldt R

Corporate Acting Head Human Resource management: Ms Lekoma K Acting Head Administration : Mrs Moola M

488

APPENDIX D – FUNCTIONS OF MUNICIPALITY

Municipal / Entity Functions MUNICIPAL FUNCTIONS Function

Applicable to

Municipality (Yes / No)*

Function Applicable to Entity

(Yes / No)

Constitution Schedule 4, Part B functions: Air pollution No N/A Building regulations No N/A Child care facilities No N/A Electricity and gas reticulation No N/A Fire fighting services Yes N/A Local tourism No N/A Municipal airports No N/A Municipal planning Yes N/A Municipal health services No N/A Municipal public transport No N/A Municipal public works only in respect of the needs of

municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under this Constitution or any other law

No

N/A Pontoons, ferries, jetties, piers and harbours, excluding the

regulation of international and national shipping and matters related thereto

No

N/A Storm water management systems in built-up areas Yes N/A Trading regulations No N/A Water and sanitation services limited to potable water supply

systems and domestic waste-water and sewage disposal systems

Yes

N/A Beaches and amusement facilities No N/A Billboards and the display of advertisements in public places Yes N/A Cemeteries, funeral parlours and crematoria Yes N/A Cleansing Yes N/A Control of public nuisances Yes N/A Control of undertakings that sell liquor to the public Yes N/A Facilities for the accommodation, care and burial of animals No N/A Fencing and fences Yes N/A Licensing of dogs No N/A Licensing and control of undertakings that sell food to the

public Yes

N/A Local amenities Yes N/A Local sport facilities Yes N/A Markets No N/A Municipal abattoirs No N/A

489

Municipal parks and recreation Yes N/A Municipal roads Yes N/A Noise pollution No N/A Pounds Yes N/A Public places No N/A Refuse removal, refuse dumps and solid waste disposal No N/A Street trading Yes N/A Street lighting Yes N/A Traffic and parking Yes N/A

490

APPENDIX E – WARD REPORTING

Refer to Chapter 2-Ward Committees which contains details on ward committee governance

491

APPENDIX F – WARD INFORMATION

Mahikeng Municipal MIG

PROJECT DESCRIPTION WARD DELIVERABLE BUDGET

Construction of a Bridge at Dithakong Tsaga Sehuba

Ward 27 Bridge R4,5m

Upgrading of Setumo high school road

Ward 21 2,7km R9,5m

Tarring of Mapetla taxi road – Phase I

Ward 18 4,5km R 14,5m

Provision of a community centre at Mantsa Ward 26

Ward 26 Multipurpose centre R7,0m

Provision of a multipurpose centre in Ward 29

Ward 29 Multipurpose centre R7,0m

Tarring of a road from Seweding to Phatsima – Ward 14

Ward 14 1,8km R7,0m

Tarring of a road in Ward 30 Ward 30 1,3km R4,5

Upgrading of main road in Madibe Makgabane – Ward 1

Ward 1 3,5km R12,5m

Upgrading of a road in Moipan – Phase II

Ward 24 3,5km R12,5m

Provision of high mast lights in various Wards – 9, 10, 14, 15

Ward 9 10 R8,0m

Ward 10 5

Ward 14 10

Ward 15 5

Total = 30

Provision of high mast lights in various Wards – 21, 24, 25, 28 & 31

Ward 21 10 R13,0m

Ward 24 10

Ward 25 10

Ward 28 10

492

Ward 31 10

Total = 50

Ngaka Modiri Molema District Municipality

Project Ward/s areas

Village/Town/ Settlement Budget

Water Supply Ward 3 Magokgwane R 13m

Mmabatho water purification works (Phase 2) Civil and Structural

Ward 12 Tontonyane R 8m

Mmabatho water purification (Phase 3) M & R

Ward 12 Tontonyane R 40.080m

Mahikeng bulk water supply (Phase 4)

Ward 6 Lokaleng Reservoir R 36.653m

Mahikeng bulk water supply (Phase 4)

Ward 6 Lokaleng Trunk mains R 2.741m

Water supply Ward 23 Dithakong East & West and Ditshilo

R 2 m

Water Supply Ward 26,22,17, & 9

Madibe-A-Tau, Letlhogori, Morwatshetlha, Sebowana and Manja

R 2m

Water Supply Ward 11,30 & 14

Magogoe Koikoi and Magogoe Central (Seweding, Phola and Phatshima)

R 3m

Water Supply Ward 2 Manawana and Dibono R 1.5m

Water Supply Ward 27 Dithakong tsa ga Sehuba and Dihatshwana

R 2m

Mahikeng Mmabatho WWTW (Phase 2)

Ward 9 & 12

R 2.5m

493

Eskom

Electrification of 85 Houses Ward 1 Madibe Makgabane R 187.324K

Electrification of 300 Houses ( Phase 2)

Ward 28 Signal Hill R 234 155K

Electrification of 150 Houses Ward 29 Lonely Park Ext To be covered Signal Hill (Phase 2)

Electrification of 250 Houses Ward 27 Dihatshwana Ext

Electrification of 45 Houses Ward 24 Goedgevonden Ext

Electrification of 175 Houses Ward 2 Masutlhe 1 Ext R 4.207m

Electrification of 150 Houses Ward 1 Modimola Ext R 14455K

Electrification of 200 Houses Ward 12 Tontonyane R 156 103K

Electrification of 130 Houses Ward 6 Lokaleng R 3.125m

Electrification of 45 Houses Ward 2 Dibono R 1. 082m

Electrification of Houses All Wards Mahikeng DoE infill‟s various villages

R 855 000k

Electrification of Houses Ward 2 Dibono R68 400k

Electrification of 50 Houses Ward 3 Ikopeleng - Phatshima R 1.202m

Electrification of 40 Houses Ward 3 Ikopeleng – Sihlala – nje Section

R 961 704m

Electrification of 160 Houses Ward 2 Madibe ga Tau R 3847.m

Electrification of Houses Ward 9 Mahikeng FDH (Feeder Line)

R 78 660K

Electrification of 70 Houses Ward 14 Mocoseng Ext R 1.683m

Electrification of 90 Houses Ward 3 Ramatlabama 600 R 2.164m

Electrification of 70 Houses Ward 2 Serotswana R 1.683m

Electrification of 15 Houses Ward 6 Tlapeng R 360 639k

T F.3

494

APPENDIX G – RECOMMENDATIONS OF T HE MUNICIPAL AUDIT COMMITTEE 2015/16

Municipal Audit Committee Recommendations

Date of Committee

Committee recommendations during 2015/16

Recommendations adopted (enter Yes) If not adopted (provide explanation)

30 September 2015 1. FINANCIAL REPORTRecommendations:• Management should invest more time indebtor‟s follow-up and enforcement ofcredit collection policy.• Council notes the second quarter financereport.• Management should develop and adhereto Demand management plans at all times• Monthly monitoring should be directors ofspending patterns.

2. PERFORMANCE MANAGEMENT1) Critical position should be filled.2) Council notes the third quarterperformance report.3) Management to implement remedialaction as proposed in the third quarterreport.4) Council take note of the reason for non-achievement of some of target.5) That performance be analyzed on amonthly basis and that progress made onthe set targets be discussed atmanagement level at least on a monthlybasis so that the risk of not achieving theset targets can be properly managed.6) External service providers should beassessed on monthly report and the saidreports must serve before AC.

3. CORPORATE SERVICES REPORT(i) That there be constant monitoring ofcompliance issues using various tools thatwill assist to quickly identify violations likelyto occur, detect those that have occurredand prevent a recurrence where non-compliance has been identified.Compliance monitoring should be done ona daily basis first from the level of

Yes

495

units/divisions, then departmental level and the results be subsequently reported at management level at least on a monthly basis. (ii) Directors are expected to provide ACwith their divisions‟ compliance withapplicable legislation on the quarterlybasis.

4. AUDIT ACTION PLAN• All findings from prior year audit shouldbe resolved by May 2016.• Internal audit should review the actionplan and mitigation action taken to dateand provide AC with the feedback.• Management must address findings androot causes as well as all internal controldeficiencies.• A properly constituted Audit SteeringCommittee to hold meetings throughoutthe year and constant feedback to beprovided to the relevant portfoliocommittee chairpersons.• Mayor to be briefed on progress onresolving AG audit findings

5. IRREGULAR EXPENDITURE• Reasonable steps should be taken toprevent irregular expenditure, as requiredby section 95(d) of the MFMA.• Irregular expenditure incurred by themunicipal entity should be investigated todetermine if any person is liable for theexpenditure, as required by section 102(1)of the MFMA.• Management should invest more time indebtors follow-up and enforcement ofcredit collection policy.

496

31-Dec-15 1. RISK MANAGEMENT• Management and the AC must conductthe risk maturity assessment and riskculture survey.• The AC further recommends the use ofenvironmental scanning. The purpose ofthis exercise is to identify emerging risks.• Use of pre-mortem to identify projectrisks.• Management should implementappropriate risk management activities toensure that regular risk assessments,including consideration of IT risks andfraud prevention, are conducted and that arisk strategy to address the risks isdeveloped and monitored

2. FINANCIAL REPORT• Council notes the second quarter financereport.• Management should develop and adhereto Demand management plans at all times• Monthly monitoring should be directors ofspending patterns.

3. PERFORMANCE MANAGEMENT• Management should develop an actionplan to address the under-achievements.• SDBIP should be adjusted toaccommodate the underperformance ashighlighted above.• Council notes the mid-term performancereport.• Management should ensure fullyimplementation of the performancemanagement system.• That work plans be developed clearlyindicating what must be done and how itmust be done for the mission andobjectives to be attained.• That performance be analysed on amonthly basis and that progress made onthe set targets be discussed atmanagement level at least on a monthlybasis so that the risk of not achieving theset targets can be properly managed.• Where there are indications ofnon/poor/under performance, causalfactors must be analysed and wherenecessary, the various options given in the

Yes

497

PMS policy must be explored.• Root-causes for not meeting the targetsshould be addressed.• Council notes the report.• Management should carry-forwardunderachieved targets to next quarter.• Management should implement theremedial action as promised• Internal audit should be afforded anopportunity to review the reports.• the original SDBIP must be revised in linewith the following:- To Comply with MFMA circular 13 on thedevelopment of the SDBIP- 2014/15 Audit Findings by AuditorGeneral of South Africa on audit ofpredetermined objectives- Adjust Budget.

4. FRUITLESS AND WASTEFULEXPENDITURE• Reasonable steps should be taken toprevent fruitless expenditure, as requiredby section 95(d) of the MFMA.• Fruitless expenditure incurred by themunicipal entity should be investigated todetermine if any person is liable for theexpenditure, as required by section 102(1)of the MFMA.

31-Mar-16 1. AGSA ACTION PLAN 2015-16• Council should note the progress madeto date

2. PERFORMANCE REPORT• Critical position be filled.• Council notes the third quarterperformance report.• Management to implement remedialaction as proposed in the third quarterreport.• Council take note of the reason for non-achievement of some of target.• That performance be analysed on amonthly basis and that progress made onthe set targets be discussed atmanagement level at least on a monthly

Yes

498

basis so that the risk of not achieving theset targets can be properly managed.• External service providers should beassessed on monthly report and the saidreports must serve before AC.

3. RISK MANAGEMENT• Management should establish the riskmanagement unit.• Management should continue toimplement mitigation measures asproposed during the development of riskregisters.

4. FINANCIAL REPORT• Management should implement morecoherent revenue and debt managementstrategy.• Council notes the third quarter financereport.• CFO must remind the departments oftheir spending patterns.• Management should adhere to Demandmanagement plans at all times• Monthly monitoring should be directors ofspending patterns.• Quarterly financial statements besubmitted to the Audit Committee withsubstantiating working paper files.• Annual Financial Statements be preparedand submitted to the Audit Committee forreview timeously with substantiatingworking papers.

5. CONSEQUENCE MANAGEMENTFRAMEWORK• The AC recommends development andimplementation of consequencemanagement framework.

6. COMPLIANCE MANAGEMENTSYSTEM• The AC recommends the developmentand implementation of integratedcompliance management system (coveringall policies and legislation).

499

30-Jun-16 1. FOURTH QUARTER PERFORMANCEREPORT• Council should note the fourth quarterperformance report.

2. RISK MANAGEMENT• Management should establish the riskmanagement unit.• Management should continue toimplement mitigation measures asproposed during the development of riskregisters.

3. FINANCIAL REPORT• Management should implement morecoherent revenue and debt managementstrategy fully.• Council notes the fourth quarter financereport.

Yes

T G

500

APPENDIX H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS

Refer to Chapter 5 – Financial Performance (Audited Annual Financial statements as at 30 June 2014) above.

501

APPENDIX I – MUNICIPAL ENTITY/ SERVICE PROVIDER PERFORMANCE SCHEDULE

Municipal Service Provider Performance Schedule Name of Entity & Purpose (a)

Service Indicators

2014/15 2015/16 2016/17

2017/18

(b) Service Targets


*Previous Year

*Previous Year

*CurrentYear

*Current Year

*Current Year

*Following Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) AES Consultation cc Shwings



Not Achieved

3.2 Kms of new tar road not constructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede Exit



Achieved

3.2 KMs of new tar road constructed in Mooipan – entrance from Kopela road via Mooipan to Weltevrede Exit

None None None

502

Black Jills Engineers(PTY)LTD Shwings



Not Achieved

1.2 Upgraded main road in Madibe Makgabane Phase 2


0.8 KMs gravel road upgraded to tar at main road in Madibe Makgabane Phase 1 by 31 December 2015

Achieved

0.8 KMs gravel road upgraded to tar at main road in Madibe Makgabane Phase 1

None None None

Maruapula Engineers CC Shwings

KMs of Upgrading of internal roads and by-pass to Sebonego and Matsheka Road


Not Achieved

1.1 Kms of Upgraded internal roads and by-pass to Sebonego and Matsheka Road 30 June 2015



Achieved

0.6 KMs of Upgrading of internal roads and by-pass to Sebonego and Matsheka Road

None None None

Rendeals For Consulting Eng



Not Achieved

1.1 km of paved main road in Ext 39 Phase 2



Achieved


None None None

503

Dikgato Engineering Consultants

KMs of tar road constructed from Mr-T to Seweding Phase 2

None None None 1.5 KMs of tar road constructed from Mr-T to Seweding Phase 2 by 30 June 2016

Not Achieved

1.5 KMs of tar road not constructed from Mr-T to Seweding Phase 2

None None None

Majantsipe Project Managers CC

Number of bridges constructed between Serotswana, Moraka and Masutlhe


Achieved

1 Bridge was constructed between Serotswana, Moraka and Masutlhe



Achieved

1 Bridge constructed between Serotswana, Moraka and Masutlhe

None None None

Pule Ramasimong Development



Not Achieved

0.9 KMs of Tar road constructed in Thembane Phase 1



Not Achieved

0.7KMs of tar road constructed in Thembane Phase 1

None None None

504

PH Bagale (PTY)LTD KMs of Tar road constructed at Ext 38 main road


Not Achieved

1.0 KMs of Tar road constructed at Ext 38 main road



Achieved

0.2 KMs of tar road constructed at Ext 38 main road

None None None

Majantsipe Project Managers CC



Not Achieved No Bridges constructed at Mahupe Section



Achieved


None None None

Maruapula Engineers CC Number of Bridges constructed in Dithakong Tsaga Sehuba

None None None 1 Bridge constructed in Dithakong Tsaga Sehuba by 30 June 2016

Not Achieved


None None None

Aobakwe Consultaing Engineers


None None None 2,7 KMs gravel road upgraded to tar at Setumo high school road by 30 June

Not Achieved

2,7 KMs gravel road upgraded to tar at Setumo high

None None None

505

2016 school road

Rendeals For Consulting Engineers


None None None 4,5 KMs of tar road constructed at Mapetla taxi road in Phase I by June 2016

Not Achieved

4,5 KMs of tar road constructed at Mapetla taxi road in Phase I

None None None

GMD Projects Number of a community centre constructed in Mantsa Ward 26

None None None 1 community centre constructed in Mantsa Ward 26 by 30 June 2016

Not Achieved

1 community centre constructed in Mantsa Ward 26

None None None

Balegorositse Transport Solutions

Number of multipurpose centre constructed in Ward 29

None None None 1 multipurpose centre constructed in Ward 29 by 30 June 2016

Not Achieved

1 multipurpose centre constructed in Ward 29

None None None

506

Bornfree Investment 271(PTY)Ltd

KMs of tar road constructed from Seweding to Phatsima – Ward 14

None None None 1,8 KMs of tar road constructed from Seweding to Phatsima – Ward 14by 30 June2016

Not Achieved

1,8 KMs of tar road not constructed from Seweding to Phatsima – Ward 14

None None None

Vision Construction KMs of tar road constructed in Ward 30

None None None 1,3 KMs of tar road constructed in Ward 30 by 30 June 2016

Not Achieved

1,3 KMs of tar road not constructed in Ward 30

None None None

Glowing Sunset Trading 38 CC

KMs of gravel road upgraded to tar at main road in Madibe Makgabane – ward 1

None None None 3,5 KMs of gravel road upgraded to tar at main road in Madibe Makgabane – ward 1 by 30 June 2016

Not Achieved

3,5 KMs of gravel road upgraded to tar at main road in Madibe Makgabane – ward 1

None None None

507

Dikgato Engineering Consultants

KMs of gravel road upgraded to tar in Mooipan – Phase II

None None None 3,5 KMs of upgrading of a road in Mooipan – Phase IIby 30 June2016

Not Achieved

3,5 KMs of upgrading of a road in Mooipan – Phase II

None None None

Rebaone Electrical & Construction

Number of high mast lights constructed in Wards – 9, 10, 14, 15

None None None 30 high mast lights constructed in Wards – 9, 10, 14 and 15 by 30 June 2016

Not Achieved

30 high mast lights constructed in Wards – 9, 10, 14 and 15

None None None

Msanuse Ingebese Number of high mast lights constructed in Wards – 21, 24, 25, 28 & 31

None None None 50 high mast lights constructed in Wards – 21, 24, 25, 28 & 31 by 30 June 2016

Not Achieved

50 high mast lights constructed in Wards – 21, 24, 25, 28 & 31

None None None

508

APPENDIX J – DISCLOSURES OF FINANCIAL INTEREST S

Refer to note 37. Related Parties on the audited Annual Financial Statements (Chapter 5) above.

509

APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE

Refer to tables below

510

REVENUE BY SOURCE

Description Budget Year 2015/16 Medium Term Revenue and Expenditure Framework

R thousand July August Sept. October November December January February March April May June Budget Year

2015/16 Budget Year +1


2017/18

Property rates 11 259 11 259 11 259 11 259 11 259 11 259 11 259 11 259 11 259 11 259 11 259 11 265 135 114 143 221 151 814

Property rates - penalties & collection charges – – – – – – – – – – – 14 087 14 087 14 932 15 828

Service charges - water revenue 6 327 6 327 6 327 6 327 6 327 6 327 6 327 6 327 6 327 6 327 6 327 6 326 75 923 80 478 85 307

Service charges - sanitation revenue 2 246 2 246 2 246 2 246 2 246 2 246 2 246 2 246 2 246 2 246 2 246 2 254 26 960 28 578 30 292

Service charges - refuse revenue 1 981 1 981 1 981 1 981 1 981 1 981 1 981 1 981 1 981 1 981 1 981 1 986 23 777 25 204 26 716

Service charges - other 320 320 320 320 320 320 320 320 320 320 320 316 3 836 4 066 4 310

Rental of facilities and equipment 133 133 133 133 133 133 133 133 133 133 133 141 1 604 1 701 1 803

Interest earned - external investments 176 176 176 176 176 176 176 176 176 176 176 184 2 120 2 247 2 382

Interest earned - outstanding debtors 2 481 2 481 2 481 2 481 2 481 2 481 2 481 2 481 2 481 2 481 2 481 2 481 29 772 31 559 33 452

Dividends received – – – – – – – – – – – – – – –

Fines 53 53 53 53 53 53 53 53 53 53 53 52 635 673 714

Licences and permits 245 245 245 245 245 245 245 245 245 245 245 248 2 943 3 120 3 307

Agency services – – – –

Transfers recognised - operational 63 581 – – – 63 582 – – – 63 582 – – 0 190 745 193 980 196 206

Other revenue 154 154 154 154 154 154 154 154 154 154 154 159 1 853 1 965 2 082

Municipality | APPENDICES

511

Gains on disposal of PPE - - - - - - - - - - - – – – –

Total Revenue (excluding capital transfers and contributions) 88 956 25 375 25 375 25 375 88 957 25 375 25 375 25 375 88 957 25 375 25 375 39 500 509 370 531 722 554 213

REVENUE BY VOTE

Description

Budget Year 2015/16 Medium Term Revenue and Expenditure Framework

July August Sept. October November December January February March April May June Budget Year



2017/18

Vote 1 - COUNCIL GENERAL 100 100 100 100 100 100 100 100 100 100 100 100 1 197 1 249 1 303

Vote 2 - CORPORATE SUPPORT SERVICES – – – – – – – – – – – – – – –

Vote 3 - FINANCE SERVICES 93 368 8 594 8 594 8 594 93 369 8 594 8 594 8 594 93 369 8 594 8 594 8 594 357 450 373 008 389 353

Vote 4 - INFRASTRUCTURE 14 422 14 422 14 422 14 422 14 422 14 422 14 422 14 422 14 422 14 422 14 422 14 422 173 063 180 549 188 461

Vote 5 - PUBLIC SAFETY 561 561 561 561 561 561 561 561 561 561 561 561 6 729 7 020 7 328

Vote 6 - COMMUNITY SERVICES 2 356 2 356 2 356 2 356 2 356 2 356 2 356 2 356 2 356 2 356 2 356 2 356 28 272 29 495 30 788

Vote 7 - PLANNING AND DEVELOPMENT 154 154 154 154 154 154 154 154 154 154 154 154 1 844 1 923 2 008

Total Revenue by Vote 110 961 26 186 26 186 26 186 110 962 26 186 26 186 26 186 110 962 26 186 26 186 26 186 568 554 593 244 619 240

512

APPENDIX L: CONDITIONAL GRANT S RECEIVED: EXCLUDING MIG

Refer to note 21. Government grants and subsidies on the audited Annual Financial Statements (Chapter 5) above.

513

APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES

Refer to table below;

514

APPENDIX N – CAPITAL PROGRAMME BY PROJECT 2015/16

Refer to appendix O – Capital programme by project by ward 2015/16

515

APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD 2015/16

Refer to table below

516

Ward Information

Mahikeng Municipal MIG PROJECT DESCRIPTION WARD DELIVERABLE BUDGET

Construction of a Bridge at Dithakong Tsaga Sehuba Ward 27 Bridge R4,5m Upgrading of Setumo high school road Ward 21 2,7km R9,5m Tarring of Mapetla taxi road – Phase I Ward 18 4,5km R 14,5m Provision of a community centre at Mantsa Ward 26 Ward 26 Multipurpose centre R7,0m Provision of a multipurpose centre in Ward 29 Ward 29 Multipurpose centre R7,0m Tarring of a road from Seweding to Phatsima – Ward 14 Ward 14 1,8km R7,0m Tarring of a road in Ward 30 Ward 30 1,3km R4,5 Upgrading of main road in Madibe Makgabane – Ward 1 Ward 1 3,5km R12,5m Upgrading of a road in Moipan – Phase II Ward 24 3,5km R12,5m Provision of high mast lights in various Wards – 9, 10, 14, 15 Ward 9 10 R8,0m

Ward 10 5 Ward 14 10 Ward 15 5

Total = 30 Provision of high mast lights in various Wards – 21, 24, 25, 28 & 31

Ward 21 10 R13,0m Ward 24 10 Ward 25 10 Ward 28 10 Ward 31 10

Total = 50

Ngaka Modiri Molema District Municipality

Project Ward/s areas Village/Town/ Settlement Budget Water Supply Ward 3 Magokgwane R 13m

517

Mmabatho water purification works (Phase 2) Civil and Structural

Ward 12 Tontonyane R 8m

Mmabatho water purification (Phase 3) M & R Ward 12 Tontonyane R 40.080m Mahikeng bulk water supply (Phase 4) Ward 6 Lokaleng Reservoir R 36.653m Mahikeng bulk water supply (Phase 4) Ward 6 Lokaleng Trunk mains R 2.741m

Water supply Ward 23 Dithakong East & West and Ditshilo R 2 m

Water Supply Ward 26,22,17, & 9

Madibe-A-Tau, Letlhogori, Morwatshetlha, Sebowana and Manja R 2m

Water Supply Ward 11,30 & 14

Magogoe Koikoi and Magogoe Central (Seweding, Phola and Phatshima)

R 3m

Water Supply Ward 2 Manawana and Dibono R 1.5m

Water Supply Ward 27 Dithakong tsa ga Sehuba and Dihatshwana R 2m

Mahikeng Mmabatho WWTW (Phase 2) Ward 9 & 12 R 2.5m

Eskom

Electrification of 85 Houses Ward 1 Madibe Makgabane R 187.324K

Electrification of 300 Houses ( Phase 2) Ward 28 Signal Hill R 234 155K

518

Electrification of 150 Houses Ward 29 Lonely Park Ext To be covered Signal Hill (Phase 2)

Electrification of 250 Houses Ward 27 Dihatshwana Ext Electrification of 45 Houses Ward 24 Goedgevonden Ext Electrification of 175 Houses Ward 2 Masutlhe 1 Ext R 4.207m Electrification of 150 Houses Ward 1 Modimola Ext R 14455K Electrification of 200 Houses Ward 12 Tontonyane R 156 103K Electrification of 130 Houses Ward 6 Lokaleng R 3.125m Electrification of 45 Houses Ward 2 Dibono R 1. 082m Electrification of Houses All Wards Mahikeng DoE infill’s various villages R 855 000k

Electrification of Houses Ward 2 Dibono R68 400k Electrification of 50 Houses Ward 3 Ikopeleng - Phatshima R 1.202m

Electrification of 40 Houses Ward 3 Ikopeleng – Sihlala – nje Section R 961 704m

Electrification of 160 Houses Ward 2 Madibe ga Tau R 3847.m Electrification of Houses Ward 9 Mahikeng FDH (Feeder Line) R 78 660K

Electrification of 70 Houses Ward 14 Mocoseng Ext R 1.683m Electrification of 90 Houses Ward 3 Ramatlabama 600 R 2.164m Electrification of 70 Houses Ward 2 Serotswana R 1.683m Electrification of 15 Houses Ward 6 Tlapeng R 360 639k

519

APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS

Schools and clinics are not functions of the Mahikeng Local Municipality

520

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

Housing delivery is low as there is still a backlog of 35 000 houses

521

APPENDIX R – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY

Current financial Year 2015/16 Mahikeng Local Municipality did not have loans and grants made by the municipality.

522

APPENDIX S – NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT

National and Provincial outcomes of Local Government

Outcome/output Progress to date Number or percentage achieved

Output: improving access tobasic services

Water

Sanitation

Electricity

Refuse removal

Output: implementation ofCommunity WorksProgramme

Community Works Programmeis implemented in all wards inthe municipality with anemployment of 500 jobs

Output: DeepeningDemocracy through refinedward committee model

Municipality through WardCommittees consult withcommunity. Planning andprioritisation is alsocommunicated through wardCommittees

100%

Output: administrative &financial capabilities

The administrative wing of themunicipality is stable, as wellas the financial muscleshowever it is not enough toprovide more service to thecommunity

90%

100%

100%

523