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TRANSCRIPT
2016/17
DRAFT UNAUDITED ANNUAL REPORT
Amahlathi Local Municipality – Draft Unaudited Annual Report 2016/17
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1. VISION
Amahlathi Local Municipality as an integrated unit shall become the model for community
empowerment, decentralised, participative management, and a transformed and proactive
municipality.
2. MISSION
Amahlathi Municipality in partnership with its community shall:
Create sustainable and better services for all
Improve communications with stakeholders and community.
Emphasise better usage of resources
Provide infrastructure and
Build investor confidence through local economic strategy
3. VALUES
In implementing the above, the Amahlathi Municipality subscribes to the following values
Team work
Trust
Honesty
Responsibility
Dedication
Value and acknowledgement of the individual.
Integrity
Work Ethics
Transparent and Clean Government.
Tolerance
Understanding
Good Leadership
Accountability
Value for Money
Efficiency and Affordability; and
Developmental Local Government striving for effectiveness and Performance.
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Table of Contents ACRONYMS……………………………………………………………………………………………………………….……5
CHAPTER 1: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY …………………………………...8
A:MAYOR’S FOREWORD …………………………………………………………………………………….……….8
B:STATEMENT OF THE MUNICIPAL MANAGER ……………………………………………………….………..10
C: EXECUTIVE SUMMARY ………………………………………………………………………………………….12
1.1 Municipal Manager’s overview ……………………………………………………………………………12
1.2 Population & Household dynamics ………………………………………………………………………13
1.3 Household Income distribution ……………………………………………………………………………14
1.4 Access to basic services …………………………………………………………………………………..14
1.5 Financial Overview …………………………………………………………………………………………17
1.6 Auditor General Report 2015/16 Financial Year ………………………………………………………..17
1.7 Statutory Annual Report Process …………………………………………………………………………18
CHAPTER 2: GOVERNANCE …………………………………………………………………………….19
A. POLITICAL AND ADMINISTRATIVE GOVERNANCE …………………………………………………………19
2.1. Political Structure of Amahlathi Local Municipality……..…………………………………………...19
i. Mayoral / Executive Committee …………..…………………………………………………………………20
ii. Standing Committees…………………………………………………………………………………………21
iii. Section 79 Committees ………………………..…………………………………………………………...23
a) Municipal Public Accounts Committee (MPAC) ………………………………………………….…..23 b) Audit and Performance Committee ……………………………………………………………………23 c) Women Caucus ………………………………………………………………………………………….24
iv. OTHER COMMITTEES …………………………………………………………………………………..…24
a) Local Labour Forum …………………………………………………………………………………….24 b) Training Committee ……………………………………………………………………………………..24
2.2 Administrative Structure of Amahlathi Municipality ………………………….…………………………..26
B. INTERGOVERNMENTAL RELATIONS …………………………………………………………………………..30
2.3 INTERGOVERNMENTAL RELATIONS COMMITTEE …………………………………..…………..30
C. PUBLIC ACCOUNTABILITY AND PARTICIPATION ……………………………………………………………30
2.4 PUBLIC ACCOUNTABILITY …………..………………………………………….……………………30
2.5 IDP PARTICIPATION AND ALIGNMENT ………..……………………….…………………………..32
D. CORPORATE GOVERNANCE ……………………………………………………………………………… …..32 2.6 RISK MANAGEMENT …………………………………………………………………………………….…...32
2.7 ANTI- CORRUPTION AND FRAUD ………………..………………….……………………….…….33
2.8 SUPPLY CHAIN MANAGEMENT ……………………..………………………………………………33
2.9 WEBSITE ……………………………………………………………………………………….………..34
2.10 BY-LAWS …………………………………………………………………………………………………….....35 2.11 PUBLIC SATISFACTION ……………………………………………………………………………………..35
CHAPTER 3: SERVICE DELIVERY PERFORMANCE …………………………………………………….36
3.1 INTRODUCTION …………………………………………………………………………………………………..36
3.2 INSTITUTIONAL PERFORMANCE MANAGEMENT PROCESS OVERVIEW ………………………….….37
3.3 CHALLENGES FACED BY THE MUNICIPALITY ……………………………………………………………...39
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3.4 CHANGES TO PLANNED TARGETS ………………………………………………………………………...…40
3.5 PROGRESS REPORT ON AUDITOR GENERAL' FINDINGS…………………………………………….…..42
3.6 FINANCIAL PERFORMANCE INFORMATION - CAPITAL EXPENDITURE 2014/15 ….………………....43
3.7 SERVICE PROVIDER PERFORMANCE ………………………………………………….…………………....44
3.8 DETAILED 2016/17 PERFORMANCE PER KPA……………………………………….……………………....48
GOOD GOVERNANCE AND PUBLIC PARTICIPATION.. ……………………….…………………………48
LOCAL ECONOMIC DEVELOPMENT)….…………………………………….……………………………. .58
MUNICIPAL FINANCE VIABILITY………………………………… ………………………………………….63
SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT ………………………………….……70
MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT…………….….……………91
CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE ………………………………...101
4.1 INTRODUCTION ………………………………………………………………………………………….………101
4.2. MUNICIPAL WORKFORCE & LEVELS OF REPORTING ………………………………………….………101
4.3 MANAGING THE MUNICIPAL WORKFORCE ………………………………………………………..………103
4.4 CAPACITATING THE MUNIPAL WORKFORCE …………………………………………………….……….111
4.5 MANAGING THE WORKFORCE EXPENDITURE ……………………………………………………….…..115
CHAPTER 5: FINANCIAL PERFORMANCE ……………………………………………………….……...117
5.1 INTRODUCTION ………………………………………………………………………………………………….117
COMPONENT A: STATEMENT OF FINANCIAL PERFORMANCE……………………………………………..118
5.2. ASSET MANAGEMENT ……………………………………………………………………………….………..125
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET …………………………………………………..128
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS …………………………………….…131
5.3 SUPPLY CHAIN MANAGEMENT ………………………………………………………………………………134
5.4 GRAP COMPLIANCE ……………………………………………………………………………………………134
CHAPTER 6: AUDITOR GENERAL FINDINGS …………………………………………………………..134
6.1 INTRODUCTION …………………………………………………………………………………………………135
6.2 AUDITOR GENERAL OPINION 2015/16 ………………………………………………………………….….135
2015/16 AUDIT ACTION PLAN …………………………………………………………………………………….135
6.3 AUDIT REPORT OF THE AUDITOR GENERAL 2016/17 FINANCIAL YEAR …………………180
6.4 AUDIT COMMITTEE REPORT…………………………………………………………………………………185
CHAPTER 7 APPENDICES …………………………………………………………………………………186
APPENDIX A: Councillors, Committees Allocated and Council Attendance……………………..190
APPENDIX B: Committees (other than Mayoral / Executive Committee) ………………………....192
APPENDIX C: FUNCTIONS OF MUNICIPALITY……….. .…………………………………………….195
APPENDIX D: WARD REPORTING …………………………………………………………………….....196
APPENDIX E: MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS ……………………….…..200
APPENDIX F: Disclosures of Financial Interests …………………………………………………......205
APPENDIX G: Revenue Collection Performance by Vote ……………………………………………206
APPENDIX H: LONG TERM CONTRACTS ………………………………………………………….…..207
APPENDIX I Municipal Entity………………..………………..……………………………………………208
APPENDIX J: Revenue Collection Performance by Source ………………………………….……..209
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APPENDIX K: Conditional Grants excluding MIG ……………………………………………….…...210
APPENDIX L: Capital Expenditure - New Assets Programme ……………………………….…….212
APPENDIX M: CAPITAL PROGRAMME ………………………………………………………….……..220
APPENDIX N: Declaration of Loans and Grants made by the municipality ……………………..222
APPENDIX 0: COGTA KEY PERFORMANCE INDICATORS ……………………….…………….…...223
VOLUME II: AUDITED ANNUAL FINANCIAL STATEMENTS ………………………………………...232
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ACRONYMS
IDP- Integrated Development Plan
PGDP- Provincial Development Growth Plan
SCM- Supply Chain Management
MIG- Municipal Infrastructure Grant
SDBIP- Service Delivery & Budget Implementation Plan
MRM- Moral Regeneration Movement
MPAC -Municipal Public Accounts Committee
FMG- Finance Municipal Grant
MSIG- Municipal Systems Improvement Grant
LLF- Local Labour Forum
MM- Municipal Manager
CFO- Chief Finance Officer
MTREF- Medium Term Revenue Expenditure Framework
GRAP- General Recognised Accounting Practise
SANRAL- South African National Road Agency Limited
SALGA- South African Local Government Association
ADM- Amathole District Municipality
NER- National Electricity Regulations
SMMEs- Small Medium and Micro Enterprises
HR- Human Resource
OHS- Occupational Health and Safety
MFMA- Municipal Finance Management Act
CLLR- Councillor
PR CLLR- Proportional Representative Councillor
PMS- Performance Management System
IGR- Intergovernmental Relations
DCF- District Communicators Forum (DCF)
DEDEAT- Department of Economic Development Environmental Affairs and Tourism
DRDAR- Department of Rural Development and Agrarian Reform
NGO- Non- Governmental Organisations
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AFS- Annual Financial Statements
CIPC- Companies & Intellectual Property Commission
KPI- Key Performance Indicator
KPA- Key Performance Area
TCS- Traffic Contravention System
DPSA- Department of Public Services and Administration
VAT- Value Added Tax
AOPO- Audit of Predetermined Objectives
MTEF- Medium Term Expenditure Framework
SMART – Specific, Measurable, Achievable, Realistic and Timely
HODs- Head of Departments (HODs)
ICT- Information Communication Technology
PPE- Property Plant & Equipment
FAR- Fixed Asset Register
AC- Audit Committee
MPRA- Municipal Property Rates Acts
AG- Auditor General
FY- Financial Year
COGTA- Cooperative Governance and Tradition Affairs
KKH- Keiskammahoek
SLA- Service Level Agreement
DR- Disaster Recovery
IT- Information Technology
MEC- Member of Executive Council
Q1- Quarter 1
Q2- Quarter 2
Q3- Quarter 3
Q4- Quarter 4
AO- Accounting Officer
IA- Internal Audit
PPP- Private Public Partnership
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N/A- Not Applicable
ALM- Amahlathi Local Municipality
EPWP- Extended Public Work Programme
GSFPA- Greater Stutterheim Fire Protection Association
UIF- Unemployment Insurance Fund
CA- Chartered Accountant
SA- South Africa
SPU- Special Programs Unit
LTO- Local Tourism Organisation
CTO- Community Tourism Organisation
LED- Local Economic Development
SALGBC- South African local Government Bargaining Council
CWP- Community Works Programme
MCCP- Mlungisi Community Commercial Park
DSRAC- Department of Sport Recreation Arts and Culture
EAP- Employment Awareness Programme
HRD- Human Resource Development
YTD- Year to Date
EEP- Employment Equity Plan
WSP- Workplace Skills Plan
LGSETA- Local Government Sector Education Training Authority
NERSA- National Energy Regulation South Africa
BTO- Budget and Treasury Office
MVR- Motor Vehicle Registration
SDI- Service Delivery and Infrastructure Development
MFV- Municipal Financial Viability
MTI- Municipal Transformation and Institutional Development
GGP- Good Governance and Public Participation
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CHAPTER 1: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
MAYOR’S FOREWORD
It was sixteen years ago when the municipality was established through Amalgamation
in 2000 with a distinct set of fragmented very small rural towns making it unique in its
own right like other municipalities of Amathole District. The Amatola mountain range,
the Keiskammahoek water catchment, the Dohne sourveld, the annual rainfall of
600mm or more, the timber and its high agricultural potential makes Amahlathi unique.
It is this potential and its unique features that makes Amahlathi a rapid catch up with our
sister municipalities in the Amathole and eventual leadership in key areas such as small
towns regeneration, timber industry and agriculture.
The constitution of the republic establishes local government as the sphere of government
that should provide a democratic and accountable government for local communities. As
the sphere of government accountable to its people, Amahlathi Local Municipality will always be evaluated on its
ability to meet the growing needs of its people through rendering quality services, promoting economic
development, fiscal discipline, ensuring that it governs effectively and facilitating the growth of the municipality.
The Local Government: Municipal Finance Management Act, 56 of 2003 (MFMA) commands Amahlathi
Municipality to prepare an annual report for each financial year. Section 127(2) of the Act, requires that the Mayor,
within seven months after the end of a financial year, to table in the municipal council the annual report of the
municipality. It is against this legislative requirement that the Amahlathi Local Municipality has prepared this
document.
The Annual Report is an account of how the municipality has taken up the challenge to grow the Amahlathi area,
to effectively engage our community and develop partnerships with our business sector. Section 46(1) of the
Municipal Systems Act (MSA) requires municipalities to prepare a performance report for each financial year,
setting out the performance of the municipality and its external service providers. The report should measure
current performance against targets and performance in the previous financial year and outline measures to
improve performance in the year ahead. The annual performance report must form part of the annual financial
report.
It is therefore my pleasure to present this Annual Report of Amahlathi Local Municipality for the period of 2016/17
to Council, the Amahlathi community, the National and Provincial Treasury, the Local Government, Auditor General
and other stakeholders.
Whilst the role of the Office of the Mayor is established to provide political guidance and ensuring that governance
structures exist and are functional, it is also the legislative requirement enshrined in the Municipal Finance
Management Act that I present this report to all Amahlathi Local Municipality’s stakeholders.
The municipality has managed to render basic services to improve the lives of its communities even though
everything done was against the backdrop of limited financial resources to fund various projects. The municipality
appreciates the strides it has made to address the needs and aspirations of Amahlathi communities and recognises
that there is even more that still remains to be done.
Our role and responsibility as Amahlathi Local Council is to implement projects that have been budgeted for and
translated into a Service Delivery Implementation Plan. It is in this regard that the Office of the Mayor applauds the
dedication displayed to accomplish this good work.
Amahlathi Local Municipality is determined to achieve its strategic objectives through partnership with communities
in addressing the basic services as outlined in its Integrated Development Plan (IDP). It is also important to mention
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that the municipality has aligned its planning to the Provincial Growth and Development Plan (PGDP), through the
development of targets that focuses on addressing issues identified in the PGDP. This is done in order to improve
the quality of lives of its community.
The tabling of the annual report therefore is highly significant for a participatory democracy like South Africa in that
it is characterised by an open and transparent relationship between the government and the communities.
I would like to thank the community of Amahlathi for continuously believing in the municipality, participating in the
programmes, their willingness to be part of the collective and for taking care of their assets and investments. I
would also like to extent my gratitude to my fellow Councillors, the Audit Committee, Senior Management and staff
for their undivided commitment to collectively participate in Municipality’s developmental Agenda.
_____________________
Cllr. P. Qaba Her Worship, the Mayor Amahlathi Local Municipality
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B: STATEMENT OF THE MUNICIPAL MANAGER
In terms of Section 121 of the Local Government: Municipal Finance Management Act, 56 of 2003 and Section 46
of the Local Government: Municipal Systems Act No 32 of 2000, every municipality and municipal entity must
prepare an annual report for each financial year, also complied with the National Treasury Circular No. 63 that
outlines Annual Report Guidelines. Amahlathi has compiled this report in fulfilment of this legal obligation and it
entails Amahlathi Local Municipality’s strategic focus, provides an overview on its performance and sets out
Council’s financial position for the 2016/2017 financial year. The report also outlines the details of the various
programmes managed by the Directorates of Amahlathi Local Municipality and how the municipality has performed
towards meeting the set targets. The municipality firmly believes that it is on track towards meeting the growth and
set developmental targets although this year’s challenges impacted negatively on the overall performance of the
Municipality.
The overall performance has dropped by 9.07% from an 87% in 2015/16 to 77.93% now in 2016/17. One should
bear in mind that the year 2016/17 also marks the beginning of a new term of office for the council. This
performance is 14% better than 2011/2012 financial year which marks the beginning of the previous council’s term
of office. It is a trend that performance drops during such years.
During 2016/17 financial year, Amahlathi Local Municipality received an “unqualified audit opinion”, the basis for
the opinion is that the municipality had an unauthorised expenditure of R23m on overspending, irregular
expenditure of R36m due to flouting of SCM processes and regulations, material losses on distribution of electricity
amounting to R2, 8m and restatement of corresponding figures. The municipality has put measures in place in
order to improve through the development of an action plan to address the issues raised by Auditor General.
The municipality budgeted to collect R272m, this included an amount of R40m to be financed from accumulated surplus. The actual collected at year end is R213m. This is less than what was anticipated due to among other reasons; under collection in rates and service charges, late appointment of debt collector, slow registration of indigents and the processing of corresponding journals. Capital budgeted was R37m which included R21m for MIG Projects as well as R16m funded from internally.
The key priority areas of the institution during the year under review find their expression in the Integrated
Development Plan, Budget and Service Delivery and Budget Implementation Plan and include the following:
a) Performance management
b) Community Works Programme
c) Expanded Public Works Programme
d) Implementation of basic services to communities
e) Meeting of statutory timelines and reporting frameworks.
f) Development, review and approval of municipal policies.
g) Enhance public participation programme
h) Deal with administrative matters that will ensure the smooth induction of Council
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In the 2016/17 financial year, the following areas received priority
a) Institutionalisation of outcomes approach
b) Accelerating and improving access to basic services
c) Internal implementation of infrastructure projects using internal plants
d) Continuing to review and improving financial systems and procedures.
e) Address issues emanating from the Auditor-General’s report for 2015/16 financial year.
f) Improving reporting, monitoring and evaluation
g) Capacitation of councillors and municipal employees
As I present the annual report for the 2016/17 financial year, I confirm that the report is a true reflection of what
happened at Amahlathi during the year under review.
___________________________ ACTING MUNICIPAL MANAGER N.E MBENDE
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C: EXECUTIVE SUMMARY
1.1 Municipal Manager’s overview
Amahlathi Local Municipality is situated in the Northern part of the Amathole District Municipality and it is
4266.21km2 in extent, the municipality’s jurisdiction comprises of Stutterheim, Cathcart, Keiskammahoek and
Kei Road. Strategically placed both Stutterheim and Cathcart are located along the N6 road with access to the
rail and road network. Keiskammahoek is the agricultural hubs with a majority of the population active within the
agricultural sector. The main municipal offices are situated in Stutterheim, there are satellite offices in Cathcart,
Kei road and Keiskammahoek.
The Amahlathi Local Municipal area is comprised of 15 Wards and is characterised by a range of settlement
patterns and associated land uses, including formal urban areas, formal and informal rural settlement areas and
extensive, privately owned farmland. The Intsika Yethu Municipality lies to the north-west, the Lukhanji
Municipality lies to the north, the Mnquma and Great Kei Municipalities lie to the east, the Buffalo City Municipality
lies to the south, and the Nkonkobe Municipality lies to the west.
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1.2 Population & Household dynamics
The population of Amahlathi has decreased from 122 778 to 101 826 based on the new boundaries as per the
2016 Community survey done by Statistics SA, this came as a result of the number of wards that have been
reduced from 20 to 15 by the Demarcation board. About 13 villages have been moved to Buffalo City Metro
Municipality and 10 villages to Intsika Yethu Municipality. The 2016 Community Survey also shows a decrease
in the households from 34 159 to 29 994 households. The population is unevenly distributed among the 15
wards.
Age and Gender Distribution
i. The gender distribution analysis of Amahlathi population reflects a similar pattern to that of the country with
females accounting for 51.75% and males only 48.25%. Since females form the greater portion of the
economically active population age groups 15 to 64 years, it will be strategic for the municipality to increase
their participation in local governance issues.
ii. The population pyramids below provide a breakdown of the population estimates in the municipality by age,
group and gender for 2011 and makes a comparison with 2016 population estimates. The population of the
municipality shows a typical age structure of a very young population distribution. The economically active
population (15-64) who are willing and able to work account for 60%. Those in the age group 15-34 account
31% however by 2016, the structure changed and the population in those age cohorts grew to 60.6% and
those in the 15-34 age cohort declined to 29.1%. The decline in the youth category could indicate the out-
migration impact where the youth would typically seek better working and living conditions elsewhere in the
region.
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Population pyramid 2011 Population pyramid 2016
1.3 Household Income distribution
The ability to meet basic needs, such as for adequate food, clothing, shelter and basic amenities, is largely
determined by the level of income earned by the households.
61.4% of households in Amahlathi earn between R30,000 to R72,000 per annum. The households with the highest
income brackets falls between R30,000 – R42,000 and R18,000 – R30,000 accounting for about 18.9% and 17.0%
of households respectively. In 2016, there was a significant shift in the income breakdown where certain income
brackets grew while others declined. Households in the income categories of R0 to R4,200 experienced a
cumulative decline of about 18% while significant increases in the categories of R42,000 upwards were
experienced with those between R72,000 to R132,000.
1.4 Access to basic services
According to data below as presented by Statistics South Africa in their 2016 Community Survey, over 80% of
households in the past 15 years have access to water and electricity. However during the two periods, access to
water declined slightly although at high levels while significant increase in the provision of electricity was observed
as more than 90% of households in the municipality. Access to electricity is reliant on infrastructure above ground
with cables that are able to cover significant land area compared to services that are provided by infrastructure
underground.
Toilet facilities remain at low levels. Challenges in providing sanitation services in most municipalities include in-
ground factors and the soil type. The service is influenced also by the type of infrastructure the municipality should
provide taking into consideration the topography of the municipality in terms of identifying of landmark features and
vegetative land cover.
With regards to access to refuse removal much focus is required as levels are low and declining which is indication
of high backlog levels. This could likely be a result of the sparsely distributed households including the access to
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the various wards in the municipality for the collection of the refuse. The high levels of refuse removal to a
communal service indicates refuse being disposed in a central place by households as opposed to removal by the
municipality or a service provider.
Table: Access to service delivery
Source: Stats SA Community Survey 2016, own calculations
According to Community Survey 2016 about 89.7% of the households in Amahlathi area access water from
regional/ local water scheme operated by the municipality or other water service provider and only 10.3% that does
not have access to piped water.
Electricity – 2016 Community Survey as per the table above indicates that 92.7% of households at Amahlathi
uses electricity for lighting compared to 87.4% calculated in the Census 2011 meaning there is a great improvement
of about 5.3%.
Access to Basic Infrastructure
2011 2016
Households % of households with access
Households % of households with access
Main source of drinking water
Access to piped water 26 269 92.0% 22 041 89.7%
No access to piped water
2 278 8% 2 535 10.3%
Access to Sanitation
Flush toilets 7 640 27.5% 6 040 24.6%
Chemicals 415 1.5% 1512 6.2%
Pit Toilets 18 263 65.7% 15 235 62.0%
Buckets 67 0.2% 48 0.2%
None 1403 5.0% 1 460 5.9%
Energy for lightning
Electricity 24 919 87.4% 22 610 92.7%
Other 3 590 12.6% 1 781 7.3%
Energy for Cooking
Electricity 20 577 72.3% 20 840 85.9%
Other 7 880 27.7% 3 429 14.1%
Access to refuse removal
Removed by local authority at least once a week
7 113 24.9% 3 438 14.0%
Removed by local authority less often
96 0.3% 256 1.0%
Communal refuse dump 316 1.1% 2 637 10.7%
Own refuse damp 19 789 69.3% 17 323 70.5%
No rubbish disposal 1 150 4.0% 231 0.9%
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Refuse removal - The statistics above indicate that about 70.5% of Amahlathi households uses their own refuse
dump as compared to 69.32% in 2011 and only 14.0% that have access to refuse removal at least weekly. This
shows that there is still huge backlog on refuse removal.
Access to Sanitation
Source: Community Survey 2016
Sanitation - Community Survey 2016 indicates that 62 % of Amahlathi households still use pit toilets ventilation,
24.6 % use flush toilets with sewerage system, 5.9 % do not have any toilets, 6.2% uses chemical toilets and only
0.2% uses bucket system. The statistics merely indicates there’s a great need for flush toilets with sewerage
system in Amahlathi.
24.60%
6.20%
62%
0.20%5.90%
Access to Sanitation
Flush Toilets Chemicals Pit Toilets Buckets None
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1.5 Financial Overview
Financial Overview: Year 2016/17
R' 000
Details Original budget Adjustment Budget Actual
Income:
Grants (excluding MIG) 125 374 126 362 123 692
Taxes, Levies and tariffs 62 008 64 937 56 005
Other 57 272 59 892 56 690
Sub Total 244 654 251 191 236 386
Less: Expenditure 232 164 235 037 251 636
Net Total* 12 490 16 154 (15 249)
* Note: surplus/(deficit) T 1.4.2
1.6 AUDITOR GENERAL REPORT 2015/16 FINANCIAL YEAR
The municipality has received an unqualified audit opinion in 2015/16 financial year. The matters of emphasis was
that the municipality had an irregular expenditure of R36.5m, Unauthorised expenditure of R23.5m due to flouting
of SCM processes and regulations, material losses on distribution of electricity amounting R2,8 m and restatement
of corresponding figures.
An audit action plan was developed as a measure to monitor and address the findings raised by AG, there was a
regular monitoring of this plan by the Management, Executive Committee, Internal Audit and the Audit committee.
Operating Ratios
Detail %
Employee Cost 44%
Repairs & Maintenance 3%
Finance Charges & Impairment 2%
T 1.4.3
Total Capital Expenditure: Year -2014/15 to Year 2016/17 R'000
Detail Year 2014/15 Year 2015/16 Year 2016/17
Original Budget 43 995 264.00 60 221 664.00 41 129 650.00
Adjustment Budget 65 717 902.00 60 686 595.00 37 794 019.00
Actual 35 594 133.00 53 818 986.06 35 515 519.39
T 1.4.4
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1.7 Statutory Annual Report Process
Comment on The Annual Report Process:
Amahlathi followed the new format as prescribed in the MFMA Circular No.63 published in September 2012 in developing its 2016/17 Annual report .
By nature, Annual Reports are aligned with the planning documents and municipal budget for the year reported on. This means that the IDP, budget ,SDBIP, In year reports, annual performance report and Annual Report should have a similar and consistent information to facilitate understanding and to enable the linkage between plans and actual performance.
No. Activity Timeframe
1 Consideration of next financial year’s Budget and IDP process plan. Except for the
legislative content, the process plan should confirm in-year reporting formats to ensure
that reporting and monitoring feeds seamlessly into the Annual Report process at the end
of the Budget/IDP implementation period
July
2 Implementation and monitoring of approved Budget and IDP commences (In-year financial
reporting).
3 Finalise the 4th quarter Report for previous financial year
4 Submit draft year Annual Report to Internal Audit and Auditor-General
5 Municipal entities submit draft annual reports to MM
6 Audit/Performance committee considers draft Annual Report of municipality and entities
(where relevant)
August
8 Mayor tables the unaudited Annual Report
9 Municipality submits draft Annual Report including consolidated annual financial
statements and performance report to Auditor General
10 Annual Performance Report as submitted to Auditor General to be provided as input to
the IDP Analysis Phase
11 Auditor General audits Annual Report including consolidated Annual Financial Statements
and Performance data
September
October
-
12 Municipalities receive and start to address the Auditor General’s comments November
13 Mayor tables Annual Report and audited Financial Statements to Council complete with
the Auditor- General’s Report
14 Audited Annual Report is made public and representation is invited
15 Oversight Committee assesses Annual Report
16 Council adopts Oversight report December
17 Oversight report is made public
18 Oversight report is submitted to relevant provincial councils
19 Commencement of draft Budget/ IDP finalization for next financial year. Annual Report
and Oversight Reports to be used as input
January
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CHAPTER 2: GOVERNANCE
Introduction
One of the key principles of good governance is the establishment of ethical leadership within the institution.
In a municipal sphere this translate into:
The need to clearly define the roles and responsibilities of the leadership and individual leaders in a
municipality;
The entrenchment of the principle of holding leaders accountable for their actions.
COMPONENT A. POLITICAL AND ADMINISTRATIVE GOVERNANCE
Institutional Structure of Amahlathi Local Municipality
The institutional Structure of Amahlathi Local Municipality is divided into two levels, the Political and Administrative
Structures. The Administrative Structure is accountable to the Political Structure.
2.1. Political Structure of Amahlathi Local Municipality
The Principalship of Amahlathi Local Municipality lies with the Council under the chairperson of The Speaker and
it operates a number of controls that assist in the realisation of the council’s mandates.
Honourable Mayor Cllr P Qaba
Cllr N Mlahleki (Madam Speaker) Cllr X Mngxaso (Chief Whip)
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MAYORAL EXECUTIVE COMMITTEE
Cllr N. Busika: Cllr T Balindlela
Portfolio Head Cooperate Services and Community Portfolio Head Community Services
Strategic Services
Cllr X Mngxaso Cllr N Monti
Portfolio Head Development and Planning Portfolio Head Engineering Services
Cllr N Nongqayi
Portfolio Head Finance
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LISTED BELOW ARE THE COMMITTEES THAT ASSIST COUNCIL IN CARRYING OUT ITS
RESPONSIBILITIES;-
i. Mayoral / Executive Committee
The Mayor of Amahlathi Local Municipality, Honourable Cllr. P. Qaba, assisted by the Executive Committee,
heads the executive arm of the Municipality. The Mayor is at the centre of the system of governance, since powers
are vested in her to manage the day-to-day affairs. This means that she has an overarching strategic and political
responsibility.
The executive committee consists of the Council members (chairperson of each standing committee) listed below
and the heads of departments. Meetings are convened monthly but special meetings are convened when the need
arises.
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Hon. Cllr P. Qaba the Mayor – Chairperson
2. Cllr N. Busika
3. Cllr X. Mngxaso
4. Cllr N. Monti
5. Cllr N.C. Nongqayi
6. Cllr T. Balindlela
ii. Standing Committees
The Council has established a Committee system in line with the provisions of Section 80 (1) of the Municipal
Structures Act 117 of 1998 as amended. There are various Standing Committees that have been established and
have been aligned to the functions of the departments that exist within the municipality.
The portfolio committee members together with their Chairpersons are listed below:
a. Infrastructure Service delivery Committee
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Cllr N. Monti - Chairperson
2. Cllr S.G. Venkile
3. Cllr G.D. Mxosa
4. Cllr N. Pose
5. Cllr M. Ngcofe
6. Traditional Leader Mr. A. T Daka
b. Corporate Services Committee
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Cllr N. Busika - Chairperson
2. Cllr X. Tokwe
3. Cllr X. Nqata
4. Cllr N. Mtati
5. Cllr T.C. Ngxingolo
6. Traditional Leader Ms. N. Sandile
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c. Community Services Committee
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Cllr T. Balindlela - Chairperson
2. Cllr G.P. Noxeke
3. Cllr M. Mjikelo
4. Cllr V.W. Tshaka
5. Cllr A. Hobo
6. Traditional Leader Mr S.N. Mdledle
d. Planning and Development Committee
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Cllr X. Mngxaso - Chairperson
2. Cllr M. Nqini
3. Cllr E.N. Brukwe
4. Cllr D. Mzili
5. Traditional Leader Mr z. Ngudle
e. Budget and Treasury Committee
f. Strategic Services Committee
These committees are constituted by the Portfolio Councillor who is full time and Part-time Councillors, chaired by the Portfolio Councillor and attended by the Heads of Departments. These committees have been given powers to consider and make recommendations to the Executive Committee on all issues falling within the ambit of their functional areas. Committees meet monthly in line with the Institutional calendar developed and adopted by the Council.
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Cllr N.C. Nongqayi - Chairperson
2. Cllr R.T. Desi
3. Cllr N.A. Manyika
4. Cllr R. Pickering
5. Traditional Leader K Sandile
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Cllr N. Busika - Chairperson
2. Cllr X. Tokwe
3. Cllr X. Nqata
4. Cllr N. Mtati
5. Cllr T.C. Ngxingolo
6. Traditional Leader Ms. N. Sandile
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iii. Section 79 Committees Section 79 (2) of the Municipal Structures Act of 1998 states that, the Municipal Council must determine the
functions of the Committees. During the year under review Amahlathi Council had the following Section 79
Committees.
a. The Municipal Public Accounts Committee (MPAC)
The Municipal Public Accounts Committee is established to assist Council to fulfil its mandate of overseeing the
Executive and the Administration. It is a multi-disciplinary Committee representative of all the parties in the Council.
The committee sits quarterly but special meetings are convened when the need arises. The main purpose of the
MPAC is to exercise oversight over the executive functionaries of council and to ensure good governance in the
municipality.
Below is the list of the members of the committee;
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Cllr S. Malawu – Chairperson
2. Cllr D.S. Gxekwa
3. Cllr N. Jikazayo
4. Cllr P. Ntwanambi
5. Traditional Leader Mekuto
b. Audit and Performance Committee
The function of the Audit and Performance Committee (hereinafter referred to as the Committee) is primarily to
assist the Amahlathi Municipality (hereinafter referred to as the Council) in discharging its duties relating to the
safeguarding of assets, the operation of adequate systems, control processes and the preparation of financial
reports and statements. The Audit and Performance Committee had 3 members listed hereunder and should meet
4 times per annum as per its approved terms of reference.
The Audit Committee had the following meetings during the year:
NUMBER SURNAME AND INITIAL
1. T Mnqeta- Chairperson
2. T Maqwati
3. M. Deliwe
Ordinary Meetings Special Meetings
11 July 2016 25 August 2016
07 November 2016 28 August 2016
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c. Women Caucus The Council established the Women Caucus under Section 79 of the Municipal Structures Act as a mechanism to ensure that the Council is gender sensitive in its policy development and implementation. This committee is made up of all the Women Councilors in Council. iv. OTHER COMMITTEES
a. Local Labour Forum Committee
The Local Labour Forum is a consultative structure that only takes decision within its powers and functions. The
main collective agreement confer to the L.L.F powers and functions of negotiating and or consulting amongst
other things;
On matters of mutual concern pertaining to the employer which do not form the subject matter of
negotiations at the Council or Division
On such matters as may from time to time be referred to such forum by the Council or its division.
Concluding of minimum service level agreement
The Local Labour Forum is established with equal representation from trade unions and the employer with the
trade union’s representation divided in proportion to their respective membership in that individual local. In the
case of Amahlathi, we do have an established Local Labour Forum and it sits on bi monthly basis and when
there is a need. Four meetings were convened on a quarterly basis during the year under review. The committee
representatives are as follows;
01 March 2017 20th January 2017
01 June 2017
AFTER 2016 LOCAL GOVERNMENT ELECTIONS
1. Cllr N. Busika
2. Cllr N Nongqayi
3. Cllr T. Desi
4. Cllr M. Mjikelo
5. Cllr G.D. Mxosa
6. Ms. N.E. Tom
7. Mr. V. Msindwana
8. Mr. T. Komna
9. Mr. Nkongo L – Samwu Rep
10. Mr R Mbi- SAMWU Rep
11. Ms T Magwangqana- SAMWU
12. Mr L. Mostert- Imatu Rep
13. Ms N. Damesi- SAMWU
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b. Training Committee
In terms of the regulations to the Skills Development Act, every organisation with more than 50 employees must
establish an institutional forum (Training Committee) for purposes of consultation with regards to skills
development. The Training Committee consists of the following people and it sits by monthly. Four meetings were
convened during the year under review.
• Skills Development Facilitator
• Municipal Manager
• Human Resources Manager
• Chief Financial Officer
• Chairperson Standing Committee- Corporate Services
• Chairperson Standing Committee – Finance
• Representatives of 2 Trade Unions represented in the Municipality
• Corporate Services Portfolio Councillor
• Occupational levels rep for – Professionally qualified (Officers)
• Skills Technical (Technicians)
• Semi Skilled (Clerks)
• Unskilled (General workers)
• Imatu Representative
• Samwu Representative
• Non Union member representative
14. Mr Dyosi- SAMWU
15. Ms A Matiwane- SAMWU
16. Mr. L. Bacu- SAMWU
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2.2 Administrative Structure of Amahlathi Municipality
The principalship of the Administrative structures lies with the Municipal Manager with a number of Departments
reporting directly to the Municipal Manager who is accountable to the Mayor. The Municipal Manager is charged
with specific responsibilities and is subject to the policy directions of the Municipal Council.
Chief Financial Officer left the Municipality in April 2017.
BALISA KING SOCIKWA MUNICIPAL MANAGER
NTABETHEMBA NOKWE TEMBELA BACELA SANDILE VARA ACTING CHIEF FINANCIAL OFFICER DIRECTOR STRATEGIC SERVICES DIRECTOR COMMUNITY SERVICES
BUNTU ONDALA MTHETHO QUMA
DIRECTOR DEVELOPMENT AND PLANNING SERVICES DIRECTOR CORPORATE SERVICES
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ROLES AND RESPONSIBILITIES OF DIRECTORATES
Role of the Chief Financial Officer:
• To continuously ensure an equitable, economical, transparent, fair and value – add supply chain
management system/function.
• To maintain an accurate and complete fixed asset register that is compliant with GRAP.
• To ensure spending of capital and operating budget by the end of the financial year.
• To ensure collection of all revenue due to the Municipality.
• To ensure unqualified audit opinion and credible financial reporting.
• To prepare a realistic budget in line with the objectives and strategies enshrined in the IDP based on
a three-year Medium Term Revenue and Expenditure Framework (MTREF).
• To ensure effective implementation of the Finance internship programme in line with government job
creation initiatives and career development.
• To continuously ensure accurate and complete recording and banking of cash received and
investments made.
• To ensure that Amahlathi Municipality has and maintains an adequate and effective process of risk
management.
Role of the Director Engineering Services
• We have a mechanical workshop in Stutterheim. All heavy duty road construction and maintenance
machinery fall under this Department. The goal of this unit is to see that Plant and Equipment are kept
in a good state of repair and responsible for the maintenance of all Municipal roads and storm water
with the limited funding and machinery that is available.
• This does not include roads that fall under the Department of Roads and Public Works and South
African National Road Agency Limited (SANRAL).
• The goal of the Building Control unit is to enable the Amahlathi Municipality to fulfil its role as a
controller of all Building activities & maintenance of all buildings, Engineering Planning aspects of
services provision of new settlement areas and ensure that municipal buildings are continuously and
adequately maintained.
• The goal of this unit is to see to the proper implementation and control of all projects in Amahlathi
Municipality funded by Municipal Infrastructure Grant. MIG programme is aimed at providing all South
Africans with at least a basic level of service.
• Electricity provided in Stutterheim, Cathcart & Amabele Station under Licenced NER/D/124EC Eskom
responsible to provides electricity supply and connections to villages not covered in terms of
NER/D/124EC terms and conditions.
• Reticulation & Distribution The goal is to maintain the systems in order to provide a safe, reliable and
efficient electricity supply.
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Role of the Director Development Planning
• Development of Local Economic Development
• Co-ordination of agricultural programmes
• Development of SMME’s and Co-operative’s
• Co-ordination of tourism within Amahlathi Local Municipality
• Promotion of Culture and Heritage within Amahlathi
• Promotion of Forestry sector within Amahlathi area
• Development of Local Economic Development Policies
• Promotion of businesses within service centres
• Co-ordination of Human Settlement programme within Amahlathi
• Implementation of town planning within Amahlathi Local Municipality
• Ensure effective use and management of Municipal land
• Promotion and maximise the use of Mlungisi Commercial Park
Role of the Director Corporate Services
• Plans, coordinates and manages activities of the Human Resources department to ensure the delivery
of HR services such as HR Planning, Personnel Provisioning, Administration of conditions of service,
Personnel utilisation, Industrial relations and skills development.
• To develop a departmental vision and strategy and ensure implementation to provide effective service
delivery.
• Manages performance of employees in the Department to ensure optimal work performance. Plans
and manages utilisation of resources in order to perform activities. Develops and monitor systems,
policies, procedures and processes to ensure correct working operations and practices.
• Manage the Human Resources department of the Amahlathi Council to ensure compliance with the
corporate services directorate strategic plan.
• Develop, Manage and administer the recruitment and selection policy to ensure compliance with
Recruitment and selection policy of the Municipality.
• Promote good and sound industrial relations environment to ensure labour stability in the municipality.
• Administer the implementation of the Employment Equity to ensure compliance with the Employment
Equity Plan.
• Manage the Training and Development Function to ensure effective training system in the
Municipality.
• Overall management of the Occupational Health and safety to ensure compliance with the OHS Act.
• Manage the use of Council resources to ensure economic, effective and efficient service delivery.
• Management of an administration system that is efficient and facilities decision making and service
delivery throughout the Amahlathi Municipality
• Manage the Municipality’s administration in accordance with the constitution, local government
municipal structures act and other applicable legislation.
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• The effective management of Human Resources in order to ensure that transaction and
implementation of skills development, employment equity, performance management and fleet
management.
Role of the Director Community Services
• To contribute towards a safe and secure environment
• To promote a clean and healthy environment
• To promote a culture of reading and learning
• To ensure that public amenities are improved and well managed
• To reduce number of road carnages on our Public Roads
• To increase Traffic visibility in our Municipal Roads
Role of the Director Strategic Services
To assist and co-ordinate the operations for the offices of the Speaker, Executive Mayor, the Chief Whip of
Council and the Chairperson of the Municipal Public Accounts Committee (MPAC) and coordinating the
programs, projects, activities and support for the following Units:
Planning and Public Participation.
• Monitoring and evaluation of municipal performance within Amahlathi Local Municipality.
• Information Communication Technology and support to the departments.
• Risk management as prescribed in the MFMA as a compliance issue.
• Communications.
• Special Programs (Youth, Women, Elderly, Children and the Disabled).
• To promote and implement the Integrated Development Planning with other spheres of Government
including intergovernmental Relations.
• To gather information and research on specific policies, strategies and programs relevant to Local
Government.
• To ensure explicit alignment between IDP and Budget during planning.
• To coordinate the implementation of the Performance Management System.
• To ensure public participation in decision making processes of the Municipality.
• Identify the Council’s Development priorities and Objectives and internal transformation needs
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B. INTERGOVERNMENTAL RELATIONS
2.3 INTERGOVERNMENTAL RELATIONS COMMITTEE
Chapter 3 of the Constitution Act 108 of 1996 provides for the principles that underlie the relations between the spheres
of government. IGR meetings will sit on a quarterly basis and are an information-sharing vehicle where government
departments and the municipality give light of their experiences and challenges with regards to service delivery. IGR
forum is regarded as a strategic planning body with emphasis and updates on current financial year programs and
projects. It therefore serves as a feeder to both the IDP & District Communicator's Forum (DCF).
Only heads of government departments sit on these meetings, failing which representatives sent by these heads, the
Municipal Manager, Strategic Planning Manager, ADM Communication/ Public Participation representative.
Amahlathi Local Municipality has developed and adopted an IGR Policy Framework in 2016/17.
C. PUBLIC ACCOUNTABILITY AND PARTICIPATION
2.4 PUBLIC ACCOUNTABILITY
The Municipality has developed a Public Participation Policy that was adopted by Council on 1 September 2015.
In accordance with Municipal systems Act 2000, the municipality should hold regular IDP/PMS/ Budget
Representative Forum meeting in drafting IDP and Budget. Forum meetings are convened 4 times per year or
quarterly in preparation of each phase. The following forms are used in calling the interested parties
Website to publish our notices
Community Radio Stations to reach those parts of our community that do not read newspaper
Daily Dispatch
Posters, pamphlets, ward councillors and announcements through community gatherings and community
based organizations.
Loud hailing
Other structures used to enhance public participation is through Ward Committee Meetings, LED Forums, SPU
Forums and a Communication strategy.
2.4.1 IDP/PMS & Budget Rep Forum
This forum is established in terms of Chapter of the Municipal Systems Act 32 of 2000 to participate in the matters
of the Municipality. The purposes of this structure is to ensure maximized participation of different interest groups
and sectors on IDP/PMS and Budget matters. The rationale behind the establishment of this committee is to
ensure that communication channels are kept smooth and efficiently. The meetings are convened quarterly and
this was done as per legislative requirements on all IDP/PMS and Budget phases. The ward committees and
stakeholders (interest group) in each ward are transported to attend the IDP/PMS and Budget Rep forum meetings
that are held at Stutterheim.
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2.4.2 Ward Committees
In line with Chapter 4 of the Municipal Structures Act 1998, the Amahlathi Local Municipality is committed to
enhance democratic, open, transparent and participatory system of local governance within its area of jurisdiction.
Amahlathi Local Municipality is bound by the Municipal Structures Act to elect Ward Committees within 90 days
after the local government elections.
The dates of the establishment of ward committees was advertised at a local community radio station the Forte
FM. On 30 September 2016 the Speaker had an interview tabling the plan followed by daily notices on the station.
Ward Committee induction was held at Mlungisi Commercial Park on the 28 November 2016 and on the 22 March
2017. During the induction the following areas were dealt with, the municipality structure, legislative framework
conducted by COGTA as well as the definition of Public Participation, Ward Operational Plan, Back to Basic Pillars
and Operation Masiphathisane (War Rooms). The department of Corporate Governance and Traditional Affairs
(COGTA) supported the municipality by training the ward committees in roles and responsibility of ward
committees.
In terms of White Paper on Local Government 1998, ward committees should be given stipend and that has been
implemented since November 2011.
The functionality of ward committees is indicated on Appendix E of this report.
2.4.3 Annual Report Public Hearings
The roadshows/public hearings are conducted in line with the prescripts of Chapter 4 of the Municipal Systems
Act which encourages the municipality to account to the public on all matters relating to finances and service
delivery performance. Annual Report Public hearings provide an opportunity for communities to comment on the
service delivery performance of the municipality. The Public hearings are done in collaboration between the Office
of the Mayor Strategic Services Department and the MPAC Office.
2.4.4 Civic Education
The municipality has developed and implemented civic education program as a mechanism to capacitate
communities for effective participation in Municipal Planning. During the year under review Amahlathi has
conducted the program in Stutterheim and Cathcart cluster on the 28 November 2016, at Keiskammahoek on the
28 March 2017 and at King Kei on the 29 May 2017. Civic education sessions are designed to empower
communities to better understand how government works especially on the powers and functions of the different
spheres of government. Gaps and challenges in service delivery are identified and channelled to the relevant
departments.
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2.5 IDP PARTICIPATION AND ALIGNMENT
D. CORPORATE GOVERNANCE
The implementation of the principles of good governance as promoted in the third and fourth King Report on
Governance for South Africa, 2009, and enshrined in the Code of Governance Principles for South Africa
(hereinafter referred to collectively as “King III and IV") have been accepted as a crucial element towards the
success of Government, including local government in meeting the needs of the people of South Africa.
The first step to achieving ethical leadership is for the leadership within a municipality, whether office bearers,
managers, political committees or any other structure promoting leadership within the municipality, to clearly
understand their roles and responsibilities, including the separation of duties as provisioned in the legislation.
A clear understanding of such roles and responsibilities will then allow for an ethical culture and the principle
of accountability can take root within the municipality.
2.6 Risk Management
The council recognises the wide range of risks to which Amahlathi Local Municipality is exposed.
Amahlathi Local Municipality is committed to the effective management of risk in order to achieve our goals
and objectives, as well as converting risk into opportunities that create value for our stakeholders.
It is therefore a strategic objective to adopt a process of integrated risk management that will assist
Amahlathi Local Municipality in meeting its key goals.
To achieve this risk policy statement, an integrated risk management programme must be implemented
and is continuously reviewed in order to improve its adequacy and efficiency.
The Council and Municipal Manager, being responsible for the total process of risk management,
produces a formal risk exposure analysis on an annual basis. This process is co-ordinated through the
activities of the Risk Management Committee and Internal Audit Unit.
IDP Participation and Alignment Criteria* Yes/No
Does the municipality have impact, outcome, input, output indicators? Yes
Does the IDP have priorities, objectives, KPIs, development strategies? Yes
Does the IDP have multi-year targets? Yes
Are the above aligned and can they calculate into a score? Yes
Does the budget align directly to the KPIs in the strategic plan? Yes
Do the IDP KPIs align to the Section 57 Managers Yes
Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes
Do the IDP KPIs align with the provincial KPIs on the 12 Outcomes Yes
Were the indicators communicated to the public? Yes
Were the four quarter aligned reports submitted within stipulated time frames? Yes
* Section 26 Municipal Systems Act 2000 T 2.5.1
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The Risk Management Committee is responsible for the analysis of the exposures to ensure that risk
control and management efforts are not duplicated, risk identification “gaps” are avoided and that
interdependencies at risk are identified and managed in a timely manner.
Top risks to the municipality
The municipality identified 40 risks for 2016/2017 financial year and all risks were prioritized. Action
plans were developed for all the risks and the risk action plans were discussed in the Risk Committee
Meetings.
Existence of the committee and functionality.
The municipality does have a Risk Committee which consists of all the section 57 managers and departmental risk
champions. The risk committee meetings were held on the following dates and the chairperson of the Audit
Committee attends as per invitation.
1. 14 October 2016
2. 16 January 2016
3. 28 March 2017
4. 15 June 2017
2.7 ANTI- CORRUPTION AND FRAUD
The municipality have Fraud Prevention Plan and Anti-Corruption Policy in place that were adopted by Council in
May 2015.
Strategies in place for prevention i.e. campaigns etc.
The municipality had the following fraud awareness campaigns during the financial year under review:
1. 08 September 2016
2. 20 December 2016
3. 30 March 2017
4. 28 June 2017
2.8 SUPPLY CHAIN MANAGEMENT
Section 3(1) (b) and (c) of the SCM regulations states that the accounting officer of a municipality must at least
annually review the implementation of SCM policy and when necessary submit proposal for the amendments of
the policy to council. The SCM policy was initially developed in 2005 and implemented to give effect to the SCM
regulations and it was last reviewed in May 2017. Amahlathi has established an SCM unit which comprises of
four officials. The code of conduct, oath of secrecy and declaration forms are signed by all officials involved in
supply chain management. The SCM manager has reached prescribed levels as required by the Minimum
Competency Regulations Guidelines and the other three officials are still in process. In line with Municipal Finance
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Management Act (MFMA), the accounting officer has also established various bid committees that are consistent
with the SCM regulations and any applicable legislation for competitive bidding i.e.
• Bid Specification Committee
• Bid Evaluation Committee
• Bid Adjudication Committee
Range of procurement processes
2.9 WEBSITES
STRUCTURE OF APPROVAL
GOODS/SERVICE VALUE PROCUREMENT METHOD MINIMUM APPROVAL AUTHORITY
R0 – R2 000 Petty Cash Head of Department or Delegated Authority
R2 001 – R5 000 Three Quotes Head of Department or Delegated Authority
R5 001 – R30 000 Three Quotations Head of Department or Delegated Official
R30 001-R200 000.00 1 Week Bulletin Notice and Advertisement via
Website: Three Quotations
Chief Financial Officer
R200 001 – R2 Million Competitive Bidding Process Bid Adjudication Committee
R2 Million – R10 Million Competitive Bidding Process Bid Adjudication Committee
Above R10 Million Competitive Bidding Process Accounting Officer
Documents published on the Municipality's / Entity's Website Yes / No
Current annual and adjustments budgets and all budget-related documents Yes
All current budget-related policies Yes
The previous annual report (Year -2015/16) Yes
The annual report (Year 2017/16) published/to be published Yes
All current performance agreements required in terms of section 57(1)(b) of the
Municipal Systems Act (Year 2015/16) and resulting scorecards
Yes
All service delivery agreements (Year 2016/17) Yes
All long-term borrowing contracts (Year 2016/17) Not Applicable
All supply chain management contracts above a prescribed value (give value)
for Year 2016/17
Yes
An information statement containing a list of assets over a prescribed value that
have been disposed of in terms of section 14 (2) or (4) during Year 2016/17
No
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2.10 BYLAWS
The institution has 19 bylaws, 17 are promulgated and the two are still in the process of being promulgated.
2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES
Comments from the public are received through the use of Complaints book, and suggestion boxes
which are placed in the main building and all satellite offices. The municipality also procured Customer
Care system that is used to logged complaints relating to faulty meters, Unavailability and poor
conditions of installed highmast lights etc. The logged called are assigned and forwarded to the
relevant department and closed on the system when resolved. Reports are submitted on a quarterly
basis by user departments.
Contracts agreed in Year 2016/17 to which subsection (1) of section
33 apply, subject to subsection (3) of that section
No
Public-private partnership agreements referred to in section 120 made
in Year 2016/17
Not Applicable
All quarterly reports tabled in the council in terms of section 52 (d)
during Year 2016/17
No
Note: MFMA s75 sets out the information that a municipality must include in its website as detailed above.
Municipalities are, of course encouraged to use their websites more extensively than this to keep their community
and stakeholders abreast of service delivery arrangements and municipal developments.
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CHAPTER 3: SERVICE DELIVERY PERFORMANCE
3.1 INTRODUCTION In 2016/17 financial year the performance of Amahlathi Local Municipality reflects a performance rate of 80.46% which is 6.54% decrease when compared to 87% achieved in 2015/16. The municipality still needs to focus on timeous submission of quarterly reports and collation of portfolio of evidence as well as filling of critical senior managerial positions. The table below reflects the performance of the municipality based on Key Performance Areas that the institution is reporting on.
COMPARISONS OF PERFORMANCE OVER 5 FINANCIAL YEARS
Graphical Presentation
KEY PERFOMANCE AREA 2012/13 2013/14 2014/15 2015/16 2016/17
OVERALL PERFOMANCE 58% 59% 84% 87% 80.46%
GOOD GOVERNANCE AND
PUBLIC PARTICIPATION
66% 60% 68% 82% 89.47%
LOCAL ECONOMIC
DEVELOPMENT
86% 67% 100% 100% 100%
MUNICIPAL FINANCIAL
VIABILITY
76% 83% 100% 95% 85.71%
SERVICE DELIVERY AND
INSTITUTIONAL DEVELOPMENT
58% 38% 73% 83% 78.13%
MUNICIPAL
TRANSFORMATION AND
INSTITUTIONAL DEVELOPMENT
29% 65% 81% 81% 50%
0
20
40
60
80
100
120
OVERALLPERFORMANCE
GGP LED MFV SDI MTI
COMPARISON OF PERFORMANCE OVER 5 YEARS
2012/13 2013/14 2014/15 2015/16 2016/17
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DEPARTMENTAL PERFORMANCE
The percentages depicted on the table below are only calculated according to the targets met and does not quantify any
allocation of performance bonuses. The Core Competency Requirements (CCR’s) are not included as the municipality is
reflecting departmental performance based on service delivery only.
Graphical Presentation
3.2 INSTITUTIONAL PERFORMANCE MANAGEMENT PROCESS OVERVIEW
In the 2016/2017 financial year, attempts were made to ensure that the municipality complies with legislation concerning the development, operation and maintenance of a performance management system that is commensurate to the institutional service delivery objectives enshrined in the IDP. The municipality has continued to maintain the effective operation of the following mechanisms:
The 2012-2017 IDP included strategic objectives, strategies and key performance indicators (KPIs) as
required by the Municipal Systems Act, 32 of 2000;
DEPARTMENT TOTAL TARGETS
TARGETS MET NOT MET TARGETS %ANNUAL PERFORMANCE 2016/17
Strategic Management Services 22 22 0 100%
Corporate Services 13 3 10 23.08%
Budget and Treasury Office 14 14 0 100%
Development and Planning 9 8 1 88.89%
Engineering Services 16 12 4 87.5%
Community Services 21 15 6 71.43%
100
23.08
10088.89
87.571.43
0
20
40
60
80
100
120
STRATEGICMANAGEMENT
CORPORTESERVICES
BUDGET ANDTREASURY
DEVELOPMENTAND PLANNING
ENGINEERINGSERVICES
COMMUNITYSERVICES
2016/17 ANNUAL PERFORMANCE
ANNUAL PERFORMANCE
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The 2016/2017 budget for implementation of the IDP was approved within the prescribed timelines prescribed
in the Municipal Finance Management Act, 56 of 2003;
After approval of the budget, the SDBIP was developed to integrate the IDP and the budget and to ensure
effective implementation of the institutional strategies. The development of the SDBIP was informed by below
planning and reporting cycle in the quest to create a balance between integrated planning, reporting and
accountability.
Figure 2: Planning & Reporting Cycle
Adoption of the 2016/2017 Organisational Performance Management System and score card for monitoring
and review of performance;
Performance agreements with performance plans were developed, signed and approved by the Honorable
Mayor as required by the Municipal Performance Regulations, 2006;
Quarterly performance reports with supporting evidence were prepared by managers directly reporting to the
Municipal Manager (MM); and
Quarterly performance reports were objectively and independently audited by the Internal Audit unit to verify and to
confirm performance information as reflected in the reports.
5 years plans aligned to the MTEF Budget and Election Cycle
periods. Updated annually. Covers critical areas of corporate
support ,business operations and service delivery.
Detailed focus on first year of strategic
plan. Includes output and service
delivery information, capital investment
plans, budget information.
3 year forward estimates (MTEF Budget).
3 year capital investment plan.
Annual Procurement Plan (G & S Budget).
Individual performance agreements & personal
development plans.
Linked to programme key objectives and outputs.
Highlights programme performance (financial &
non-financial) against set targets:
- In-Year Monitoring Reports
- Infrastructure Performance Reports
- SCM Performance Reports
Environmental
changes.
Strategic direction
changes.
Reprioritisation of
MTEF Budget.
Performance against
budget and Annual
Performance Plan.
Published Report.
Planning and Reporting Cycle – Public Sector Departments
Integrated
Development
Plan
Service Delivery
Budget
Implementation
Plan
Individual
Performance
Plans
Operational
Plan
Monthly /
Quarterly
Reports
Annual
Reports
Annual
Review
MAY
JULY
JUNE
JANUARY
AUGUST
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3.3 CHALLENGES FACED BY THE MUNICIPALITY
The following challenges were encountered in the period under review:
The departments are working in silos and monopolising their functions which result in middle management
not being clued up with the entire functions of the department and this pose a challenge when one is
appointed to act in senior positions as there is no synergy and proper coordination.
Departments that were headed by acting managers for more than 3months
Understanding Collation of evidence by departments;
Inconsistence in the format and content reports
Delays in submitting the reports and evidence files by departments
Lack of Human resources in the IDP/PMS unit
STRATEGY TO OVERCOME THE CHALLENGES AND AREAS OF UNDERPERFORMANCE
Quarterly meetings with the elected PMS champions to iron out issues relating to collation of evidence
To conduct workshop with departments in order to address gaps identified in the Portfolio of evidence files.
Continuous provision of reporting templates to all departments
Speed up the Appointment of HODs
To beef up the IDP and PMS unit.
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3.4 CHANGES TO PLANNED TARGETS
Section 72 (1)(a)(ii) of the MFMA states that an accounting officer of a municipality, must by 25 January of each year assess the municipality’s service delivery performance during the first half of the financial year, and the service delivery targets and performance indicators set in the SDBIP. In preparation for the mid-year review of performance, management prepared quarterly reports, measured and analysed performance of the first six months of 2016/17. During the review management reviewed performance for the first and second quarter and also anticipated the last six months of the 2016/17 financial year incognisance of the feasibility to implement certain programmes based on priority and budget availability. This process culminated to a mid-year performance report which highlighted achievements, non-achievements with reasons for non-achievement and corrective measures. The process also emerged with a number of KPIs that either needed to be removed or amended going into the last six months of the financial year, and these amendments were duly approved by all requisite authorities including council. The table below depicts the changes made during 2016/17 financial year as alluded above. REGISTER FOR KPIS REMOVED/AMENDED ON THE 2016/17 SCORECARD
KPI No Objective Strategy Indicator Proposed Change Justification Approved /Not Approved
Custodian
20
To continuously contribute towards job creation for the unemployed
Job creation
No. of jobs created through EPWP
250 jobs created to be changed to 120 jobs created. Q3 delivery target to be changed to 67 jobs created.
The funding is unable to reach this annual target due to the fact that the Council Policy states that EPWP workers must be employed for six months
Approved 28/02/2017
Director Community services
22 To continuously contribute towards job creation for the unemployed
Allocation of payments to historically disadvantaged individuals to the value of R12ml
No. of Reports indicating payments allocated to HDI's
Annual target be revised to “ 4 Quarterly reports indicating R8 m payments allocated to HDIs” Quarterly targets: Q3 & Q4 to be changed to R1m
Environmental changes affect the set target because the big portion of payments allocated to HDI was for a yellow plant that its payment has been stopped due to an ongoing investigation.
Approved 28/02/2017
Chief Financial Officer
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68
Provide access to Community Services and sporting facilities
Installation of High Mast Lights
8 High Mast Lights installed in clusters
No. of High Mast Lights installed in clusters
The target was written on the column of indicator hence request for removal
Approved 28/02/2017
Director Engineering Services
69 To ensure that municipal buildings are continuously and adequately maintained and kept in a usable condition
Respond to faults in municipal buildings.
% identified faults in Municipal buildings
Financial targets from Q1 to Q4 The working budget approved was R50 000. From Q1 delivery target is R0. Q2 to Q4 delivery target to be changed to R16 670.00 expenditure.
The budget reflecting on SDBIP was not approved
Approved
28/02/2017
Director
Engineering
Services
70
To ensure that municipal buildings are continuously and adequately maintained and kept in a usable condition
Respond to faults in municipal buildings.
No. of Inspected buildings to be renovated
Budget and financial targets to be changed .Approved budget is R500 000.00, Therefore delivery targets for Q1 met.Q2 to Q4 delivery targets to be R166 670.00 per quarter on expenditure
Financial target stated on SDBIP not in line with the approved annual target
Approved
28/02/2017
Director
Engineering
Services
80 To ensure coordination of implementation, monitoring and evaluation of IDP by 2017
Coordinate development and alignment of IDP, SDBIP and budget integration
No. of Quarterly Individual Performance Assessment report
Q3= Q2 2015/16 Performance assessment report submitted to Council to be changed to Q2 2016/17. Q4= Q3 2015/16 Performance assessment report submitted to Council to be changed to Q3 2016/17
The financial year reflected is not the current year of reporting
Approved
28/02/2017
Director
Corporate
Services
90 To create a healthy working environment within the Amahlathi Council.
Implementation of Occupational Health and Safety Plan
20% reduction of occupational incidences recorded
% reduction of occupational incidences recorded
The target was written on the column of indicator hence request for removal
Approved
28/02/2017
Director
Corporate
Services
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3.5 PROGRESS REPORT AUDITOR GENERAL’S FINDINGS: PREDETERMINED
OBJECTIVES
Refer to attached AG Action Plan in Chapter 6
3.6 FINANCIAL PERFORMANCE INFORMATION - CAPITAL EXPENDITURE 2016/17
Vote number Description Budget YTD Movement %
010-102-4-01-0020 FURNITURE AND EQUIPMENT 42 432.00 42 431.42 100.00
010-104-4-01-0020 FURNITURE AND EQUIPMENT 20 000.00 19 918.16 99.59
010-104-4-01-3044 VEHICLES 868 024.00 868 023.15 100.00
020-108-4-01-0020 FURNITURE AND EQUIPMENT 22 115.00 23 981.76 108.44
025-106-4-01-0020 FURNITURE AND EQUIPMENT 19 180.00 19 180.00 100.00
025-106-4-01-3099 ELECTRICAL EQUIPMENT 100 000.00 93 123.00 93.12
025-114-4-01-0020 FURNITURE AND EQUIPMENT 9 974.00 9 973.91 100.00
025-114-4-01-0170 UPGRADE NETWORK & COMPUTERS 500 000.00 397 335.25 79.47
030-116-4-01-0020 FURNITURE AND EQUIPMENT 7 535.00 7 535.00 100.00
030-116-4-01-3040 FENCING MLUNGISI MALL 385 880.00 385 880.00 100.00
030-118-4-01-1019 FRESHWATER INTERNAL ROADS 2 000 000.00 2 000 000.00 100.00
030-118-4-01-1021 WHITE CITY INTERNAL ROADS 2 000 000.00 2 000 000.00 100.00
030-118-4-01-1024 MADUBULA INTERNAL ROADS 1 086 978.00 1 086 978.00 100.00
030-118-4-01-3018 HAWKER STALLS KKH & CATH 120 000.00 120 000.00 100.00
030-118-4-01-3025 CHRIS HANI INTERNAL ROADS 2 100 000.00 2 100 000.00 100.00
030-118-4-01-3036 AMAHLATHI HIGH MAST LIGHTS 250 000.00 250 000.00 100.00
030-118-4-01-3037 KKH PAVING 4 326 672.00 4 326 672.00 100.00
030-118-4-01-3042 LOWER KOLOGHA SURFACING 4 093 300.00 4 093 300.00 100.00
030-118-4-01-3046 JERSEYVALE INTERNAL ROADS 2 412 999.00 2 412 999.00 100.00
030-118-4-01-3047 KEISKAMMAHOEK FIRESTATION 497 646.00 497 646.00 100.00
030-118-4-01-3048 MLUNGISI SPORTSFIELD 152 055.00 152 055.00 100.00
030-118-4-01-3049 PHUMLANI INTERNAL ROADS 2 600 000.00 2 600 000.00 100.00
050-128-4-01-0075 TOOLS & EQUIPMENT 1 000.00 - -
050-130-4-01-0075 TOOLS & EQUIPMENT 1 000.00 - -
060-132-4-01-2505 COMPUTER SOFTWARE 183 852.00 17 478.95 9.51
080-136-4-01-0075 TOOLS & EQUIPMENT 5 000.00 4 557.89 91.16
101-138-4-01-0075 TOOLS & EQUIPMENT 1 000.00 - -
101-138-4-01-3041 LANDFILL COMPACTOR 5 244 000.00 4 600 000.00 87.72
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110-144-4-01-0125
VEHICLE POUND,WEIGHBRIDGE&PARKING METERS 1 731 488.00 1 376 346.09 79.49
130-148-4-01-0020 FURNITURE AND EQUIPMENT 3 256.00 3 255.61 99.99
130-148-4-01-0075 TOOLS & EQUIPMENT 150 000.00 45 006.02 30.00
130-148-4-01-0150 UPGARDE 11KV CABLE 5 000 000.00 4 692 911.23 93.86
130-148-4-01-2545 ELECTRICITY TRAILER 507 637.00 507 636.67 100.00
130-148-4-01-3043 NEW CONNECTIONS ELECTRICITY 1 350 000.00 52 501.06 3.89
140-150-4-01-0075 TOOLS & EQUIPMENT 1 000.00
306.66 30.67
37 794 023.00 34 807 031.83
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3.7 SERVICE PROVIDER PERFORMANCE
Project Managers were requested to rate the performance of the Service Providers appointed by Council on the various projects. Service Providers and Contractors are rated in terms of the following:
Below Standard - The Contractor/Service Provider did not meet the basic requirements as spelt out in the
tender or contract. This may result in the contract being cancelled and/or the retention fee being withheld from
the contractor. The Contractor may be asked to rectify the problem or the contract may be cancelled and
another Contractor/Service Provider may be appointed to complete the contract/ project.
Acceptable - The Contractor/Service Provider completed the project and met the basic requirements of the
tender/contract. The standard of work was good enough, passable or adequate in terms of the requirements
by the ALM.
Excellent - The Contractor/Service Provider completed the work above the standard required. The
requirements of the tender were achieved above the expectation of the municipality. There is a high quality of
work and outstanding results were achieved.
Below is the performance rating of the municipality’s service providers;
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PERFOMANCE OF SERVICE PROVIDERS FOR THE YEAR ENDING 30 JUNE 2017
BID NUMBER NAME OF SERVICE PROVIDER SERVICES RENDERED RATING
SCM/38/2015-16 Khuladuna Trading Supply and Delivery of Air Compresor Acceptable
SCM/04/2016-17 Enzokuhle Enterprise Provision for Landfillsite Rehabilitation Acceptable
SCM/03/2016-17 Lunika Consulting Review of 2015-16 Draft Annual Financial Statements, 2015/16 Draft Annual Perfomance Report and 2015/16 Annual Report Acceptable
SCM/55/2015-16 SMS ICT Choice Supply, Delivery and Installation of ICT Cabling Infrastructure Acceptable
SCM/58/2015-16 Masiyabu Trading & General Civils Supply and Delivery of 1 X 12m Secondhand steel container Acceptable
SCM/60/2015-16 Masiyabu Trading & General Civils Construction of Keiskammahoek Sidewalk Paving N/A
SCM/22/2015-16 Seventh Avenue Trading 612 cc Supply & Delivery of Trailer Mounted Hydraulic Access Platform Acceptable
SCM/14/2015-16 PricewaterhouseCoopers Preparation of Grap Compliant Annual Financial Statements for the 2015/2016 and 2016/2017 Financial Years Acceptable
SCM/02/2016-17 AVX Investment & Trading (Pty) Ltd Supply, Delivery and Fitment of Trailer Tyres Acceptable
SCM/54/2015-16 HTB Consulting Implemenataion of Perfomance management system Acceptable
SCM/05/2015-16 PK Containers and Projects Supply, Delivery and Installation of Palisade Fencing at Mlungisi Community Commercial Park Acceptable
SCM/48/2015-16 XL Aloe Travel Provision of Travel agency services for a period of 36 months Acceptable
SCM/13/2015-16 PricewaterhouseCoopers Preparation of Grap Compliant Asset Register for 2015/2016 and 2016/2017 Financial Years Acceptable
SCM/59/2015-16 Thandokazi Solutions Fencing of Mlungisi Community Hall Acceptable
SCM/21/2015-16 Enroute Traders Upgrading of Lower Kologha Road Surfacing Acceptable
SCM/61/2015-16 AVX Investment & Trading (Pty) Ltd Renovations to Keiskamahoek Hawker Stalls Acceptable
SCM/06/2016-17 Supply and Delivery of Protective Clothing and Safety boots Sithasethu Trading N/A
SCM/22/2015-16 Seventh Avenue Trading (Pty) Ltd Supply & Delivery of Trailer Mounted Hydraulic Access Platform Acceptable
SCM/03/2016-17 Lunika Consulting Review of 2015-16 Draft Annual Financial Statements, 2015/16 Draft Annual Perfomance Report and 2015/16 Annual Report Acceptable
SCM/02/2016-17 AVX Investments Supply, Delivery & Fitment of Trailer Tyres Acceptable
SCM/06/2016-17 Sithasethu Trading Supply and Delivery of Protective Clothing and Safety Boots Acceptable
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BID NUMBER NAME OF SERVICE PROVIDER SERVICES RENDERED RATING
SCM/17/2016-17 Regroup Electrical and Air-con Contractors Supply and Installation of New 3 Phase Electrical Equipment Acceptable
SCM/13/2016-17 Imivuyo Construction (Pty) Ltd Supply and Delivery of 250 Bags (25 Kg) of Yellow Maize seed Acceptable
SCM/48/2015-16 XL Aloe Travel Provision of Travelling agency Services for a Period of 36 Months Acceptable
SCM/08/2015-16 Mabija Building and Construction Construction of a Vehicle Pound Excellent
SCM/53/2015-16 Lateral Unison Insurance Brokers Provision of Short term Insurance Acceptable
SCM/17/2015-16 Bell Equipment Sales SA (Ltd) Supply and Delivery of a New Landfill Compactor Acceptable
SCM/49/2015-16 C-Track Mzansi Procurement of a Fleet Management System, Monitoring and Vehicle Recovery for a Period of 36 Months Acceptable
SCM/10/2016-17 SMS ICT Choice (Pty) Ltd Renewal of Cibecs Endpoint Data Protection Licenses Acceptable
SCM/16/2016-17 Southern Ambition 1547 Supply, Delivery & Fitment of Grader Tyres Acceptable
SCM/17/2016-17 Executive Insight Development of SPU Strategy Acceptable
SCM/49/2015-16 C-Track Mzansi Procurement of a Fleet Management System, Monitoring and Vehicle Recovery for a Period of 36 Months Acceptable
SCM/08/2015-16 Mabhija Building and Construction Construction of a Vehicle Pound Acceptable
SCM/37/2016-17 HTB Consulting Facilitation of Municipal Strategic session Acceptable
SCM/53/2015-16 Lateral Unison Insurance Brokers Provision of Short term Insurance for a period of 36 Months Acceptable
SCM/49/2015-16 C-Track Mzansi Procurement of a Fleet Management System, Monitoring and Vehicle Recovery for a Period of 36 Months Acceptable
SCM/16/2016-17 Southern Ambition 1547 Supply, Delivery & Fitment of Grader Tyres Below Standard
SCM/30/2015-16 SNR Electrical JV Turnkey Design, Supply and Erection of Highmast Lights Acceptable
SCM/10/2016-17 SMS ICT Choice Renewal of Cibecs Endpoint Data Protection Licenses Acceptable
SCM/05/2016-17 Sky High Consulting Engineers Provision of Proffessional services for Mlungisi Sportsfield Acceptable
SCM/21/2016-17 Telkom SA Ltd Provision of Cellphones, Tablets, Laptops & 3G Data Cards on a 24 Month Contract Acceptable
SCM/42/2016-17 Ayabona Construction & Projects Supply & Delivery of Stable Mix 60 Drums Acceptable
SCM/44/2016-17
South African Foundation for Empowerment Training & Innovation Training on Roads Works Construction for 5 Contractors Acceptable
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BID NUMBER NAME OF SERVICE PROVIDER SERVICES RENDERED RATING
SCM/31/2016-17 Shido Logistix cc Manufacturing & Supply of Concrete Protection Slabs until 30 June 2017 Acceptable
SCM/32/2016-17 Fab Manufacturing Manufacturing & Supply of Concrete Fiber Reinforced Trench Cover Acceptable
SCM/27/2016-17 Tshani Consulting cc Provision of Town Planning Services Keiskammahoek Fire Station Acceptable
SCM/30/2016-17 SNR Electrical Turnkey Design, Supply and Erection of Highmast Lights Acceptable
SCM/23/2016-17 Alomna Construction and Plant Hire Provision of Machine Hire Services for a period of 12 Months Acceptable
SCM/23/2016-17 Trailways Transport Provision of Machine Hire Services for a period of 12 Months Acceptable
SCM/01/2016-17 Vodacom (Pty) Ltd Voice over Internet Protocol Telephone System for a period of 3 years Acceptable
SCM/28/2016-17 AGES Omega (Pty) Ltd Provision of Geotechnical Investigation for Keiskammahoek Firestation Acceptable
SCM/29/2016-17 MNT Geomatics Provision of Tachy Survey in Keiskammahoek Acceptable
SCM/33/2016-17 Uluto Active Blue Trading Enterprise Fencing of Cemetery in Cathcart Acceptable
SCM/31/2016-17 Shido Logistix cc Manufacturing & Supply of Concrete Protection Slabs until 30 June 2017 Acceptable
SCM/31/2016-17 Fab Manufacturing Manufacturing & Supply of Concrete Fiber Reinforced Trench Cover Acceptable
SCM/42/2016-17 Ayabona Construction & Projects Supply & Delivery of Stable Mix 60 Drums Excellent
SCM/44/2016-17 South African Foundation for Empowerment Training Innovation Training on Road works Construction for 5 contractors Acceptable
SCM/12/2016-17 T.H Paul Kruger Renovations to Strategic Offices Acceptable
SCM/43/2016-17 Ebusha General Trading (Pty) Ltd Supply and Delivery of Concrete Slabs Acceptable
SCM/20/2016-17 Uluto Active Blue Trading Enterprise Renovations to Isihoboti Community Hall Acceptable
SCM/40/2016-17 Thandokazi Solutions Supply and Delivery of Mechanical Wool Press Machines Acceptable
SCM/46/2016-17 Abangane Trading (Pty) Ltd Supply, Delivery & Installation of 2 X Hawker Stalls in Cathcart Acceptable
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3.8 ORGANISATIONAL PERFORMANCE FOR 2016/17 PRESENTED PER KEY PERFROMANCE AREA (KPA)
3.8.1 GOOD GOVERNANCE AND PUBLIC PARTICIPATION DETAILED PERFORMANCE
IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
1,1 Output 5: Deepen democracy through a refined ward committee model.
To promote and improve internal and external communication and continuously ensure community participation in the Amahlathi Municipality’s programmes and activities by 2017
Review of the Communication Strategy
Reviewed Communication Action Plan submitted to Council for approval
Reviewed Communication Action Plan submitted to Council for approval
Target met. Reviewed Communication Action Plan submitted to Strategic Services Management Standing Committee 9 May 2016
Target Met Reviewed Communication Action Plan submitted to Council. Council Agenda attached Date: 30 March 2017
N/A Director; Strategic Management Services
1
1,2 Implementation of Public Participation and Petition Framework Policy
Review and implementation of Public Participation and Petition Framework Policy
No. of quarterly reports on status of Petition Management submitted to Council
4 Quarterly reports on status of petitions received and submitted to Council
Target not met. 4 Quarterly reports on status of petitions received are attached but the Petitions were not submitted to the Petitions Committee
Target Met All petitions received in all quarters were submitted to Council.
N/A Director; Strategic Management Services
2
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
1,3 Turn-around-time to acknowledge Petitions received
2days Turn-around-time to acknowledge Petitions received
N/A Target Met Petitions are acknowledged with two working days from the day received
N/A 3
1,4 No. of awareness programmes conducted on Civic Education for local communities (clusters)
3 awareness programmes conducted on Civic Education for local communities (clusters)
Target met, 4 awareness programs conducted in local communities (clusters) on the 29/09/15, 23/11/15, 19/02/16
Target Met 3 awareness campaigns conducted as follows Mlungisi (MCCP)- 28 November 2016, Keiskammahoek- 28 March 2017 and Ndakana 29/05/2017
N/A Director; Strategic Management Services
4
1,5 No. of public participation programmes conducted
6 public participation programmes conducted
Target not met. 3 programs implemented as per Public Participation and Petitions Framework Policy
Target Met 7 Public participation programmes conducted on the IDP roadshows in 4 clusters as 08/11/2016 09/11/2016 10/11/2016 11/11/2016, Civic education campaign at
N/A 5
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
Keiskammahoek. 28 March 2017, at Ndakana 29/05/2017 and IDP and Budget Roadshows conducted in all clusters from 13/04/2017-08/05/2017
1,6
No. of reports on functionality of Ward committees
4 reports on functionality of Ward committees
N/A Target Met 4 reports on functionality of ward committees received and Induction workshop was conducted on the 28th -11-2016 and 5th-12-2016
N/A 6
1,7 Output 6: Administrative and Financial Capacity
Ensure Integrated and Responsive ICT Function
Provide support to ALM Computer and System Users
Turn around time taken to acknowledge logged fault
2 hrs turn around time taken to acknowledge logged fault
Target met. An average of 20mins turnaround time taken to acknowledge faults logged by users by email
Target met Time taken to acknowledge logged faults is average of 30 minutes. Emails received
N/A 7
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
1,8 Turn around time taken to resolve logged fault
48hrs turn around time taken to resolve logged fault
N/A Target Met Average of 3H10 minutes is taken to resolve logged fault. Emails and logbook received
N/A 8
1,9 Provide on-going support to users on system related queries
% of resolved system related queries
90% of resolved system related queries
Target met. Four (4) quarterly reports indicating progress on queries raised resolved are prepared on monthly basis
Target met 100% system related queries resolved. Emails logging and response from users logged fault attached
N/A Chief Financial Officer
9
1,10 Implementation and monitoring of controls to ensure security of information and business continuity
Daily backups done on Venus and Pay day systems
Daily backups done on Venus and Pay day systems
Target met. . quarterly reports on backups performed and stored are prepared
Target Met 4 Quarterly reports indicating daily backups received.
N/A Chief Financial Officer
10
1,11 To ensure continues collaboration and cooperation between The
Continuous collaboration between the municipality and other
No. of Amahlath IGR forum meetings conducted
4 Amahlathi & IGR forum meetings conducted
Target not met only 3 Amahlathi IDP rep & IGR forum meeting held , IGR –
Target met 4 IGR forum meetings conducted at Amahlathi on the
N/A Director; Strategic Management Services
11
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
Municipality and other service delivery organs of state
service delivery organs of state to discuss planned and rendered service in Amahlathi through quarterly forums
18/11/15, 9/09/15 and 23/05/16 Rep Forum – 22/09/15, 29/03/16 and 24/11/15
following dates 20-09-2016 24 -11-2016 16-03-2017, 10-05-2017
1,12 To ensure that Amahlathi municipality has and maintains an adequate and effective processes of risk management and internal audit
Implementation of the risk action plans
No. of risk management report regarding implementation of the risk action plans submitted to the Risk Committee
4 quarterly risk management report regarding implementation of the risk action plans submitted to the Risk Committee
Target met. Quarterly reports on implementation of risk action plans are submitted
Target not met 3 quarterlyrisk management reports submitted to risk committee held on the following dates 14/10/2016, 16/01/2017 15/06/2016
The meeting was not convened due to unavailability of risk committee members that were committed on the proposed dates. The meeting was then held on the 14th of October 2016.
Director; Strategic Management Services
12
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
1,13 Development and implementation of the annual risk-based internal audit plan
% implementation of the 2016/2017 risk-based internal audit plan (all scheduled audits implemented)
100% implementation of the 2016/2017 risk-based internal audit plan (all scheduled audits implemented)
Target not met as only 78% implementation of internal audit assignments scheduled for this quarter has been achieved
Target met 100% of risk based internal audit plan implemented during the year. Internal Audit Plan with status and reports received.
N/A Director; Strategic Management Services
13
1,14 Development and Implementation of Action Plan on AG findings
% implementation of 2015/16 AG Action Plan
80% implementation of 2015/16 AG Action Plan
Target met, an action plan together with the report reflecting 80.5% implementation of AG findings is submitted
Target not met 65% of AG Action Plan implemented. Report and action plan recieved
Director; Strategic Management Services
14
1,15 To ensure that Amahlathi municipality has and maintains an adequate and effective process of Fraud management and internal audit
Conducting Fraud awareness workshops for all the satellite offices and the main office.
No. of fraud awareness workshops conducted
4 fraud awareness workshops conducted
Target met. 4 Fraud Awareness Workshop conducted by 30 June 2016
Target Met 4 fraud awareness workshop conducted on the 08th September 2016, 20th December 2016, 30 March 2017, And 28/06/17 to Amahlathi offcials
N/A Director; Strategic Management Services
15
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
1,16 To ensure mainstreaming of special programmed into Amahlathi Municipality programmes
Development, review and implementation of the Special Programs Unit Action Plan
No of special programs on designated groups conducted
9 special programs on designated groups conducted
Target met. There are 24 Programs as per the action plan to be implemented in 2015/16, all the programs were implemented, and the attendance registers together with reports signed by HOD are submitted
Target met 10 Special programs on designated groups conducted on the 1. 27-10-2016 (16 days of Activism) 2. 25-11-2016 (World Aids Day) 3. 11-11-2016 (Elderly Programme) 4. 22-11-2016 (Disabled Programme) 5. 20-10-2016 (Women Celebration 6. Children’s Health Awareness Programme held on the 30-03-2017 at Amatholaville Primary School. 7. 2017 Top 8 Rugby Union held at Keiskammahoek on the 26-02-2017. 8. Revival of Youth Council and
N/A Director; Strategic Management Services
16
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
launch of youth month- Mlungisi- 09-06-2017 9. Football Top 8 event at Izidenge- 16-06-2017 10. Child Protection week Mlungisi Commercial Park- 30-05-2017
1,17 Provide legal support and ensure representation in all legal matters
Update compliance register
Updated Compliance register
Updated Compliance register
Target met. Development and Updating of Compliance register for 2015/16 financial year by 30 June 2016
Target met Updated compliance register received in all quarters
N/A Director; Strategic Management Services
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
1,18 Provide sufficient secretariat service to all Council Structures
Implementation of the approved calendar of meetings for Council and Executive Committee for the year
No. of ordinary Council and Executive Committee meetings held
4 ordinary Council and 10 Executive Committee meetings held
Target met. 6 ordinary Council meetings held and 8 Executive Committee meetings are held
Target not met 11 Ordinary and special Council Meetings held on the following dates; 14/072016, 27/07/2016, 17/08/2016, 30/08/2016, 28/10/2016 08/12/2016. 25/01/2017, 28/02/2017, 19/04/2017, 31/05/2017, 29/06/2017 7 EXCO meetings were held on the following dates; 10/10/2016, 03/11/2016, 16/02/2017, 23/02/2017, 10/05/2017, 25/05/2017 29/06/2017
Some meetings could not sit because there was no quorum, however a workshop will be conducted on the importance of attending EXCO and Council meetings
Director: Corporate Services
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
1,19 Implementation of Council resolutions
50% of council resolutions implemented
50% implementable council resolutions implemented
Target not met, as there is no proof of implementation of the resolutions, submitted in the file is the copy of resolution only.
Target not met, 50% implemented in 2nd quarter, 13% in third quarter not enough information submitted on 4th quarter
Recommended that the secretary to remind the Manager so that Action Minutes are implemented accordingly
Director: Corporate Services
19
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3.8.2 LOCAL ECONOMIC DEVELOPMENT (LED)
IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
2,1 Output No 3: Implementation of Community Work Programmes
To continuously contribute towards job creation for the unemployed
Job creation No. of jobs created through EPWP
60(LED) jobs created 120 jobs (CS) 150 ES
Target met. 74 people recruited instead of 60 people.
Target met 506 jobs created in 2016/17 financial year. 92 (LED) 172 CS 242 (ES)
N/A Director; Development and Planning, Engineering Services and Community Services
20
2,2 No. of jobs created through other government initiatives
5 jobs created through other government initiatives
N/A Target met 42 Jobs were created through other government initiatives
N/A Director; Community Services
21
2,3 Allocation of payments to historically disadvantaged individuals to the value of R12ml
No. of Reports indicating payments allocated to HDI's
4 Quarterly reports indicating R 8m Payments allocated to HDI's
N/A Target met R27 820 133.80 payments allocated to HDIs. Reports attached.
N/A Chief Financial Officer
22
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
2,4 To promote Tourism within Amahlathi municipal area in order to position the municipality as a tourist destination
Marketing of craft projects from Amahlathi in tourism annual events
No. of tourism events attended by Amahlathi Crafters
4 tourism events attended by Amahlathi Crafters
Target met, crafters supported during ADM tourism events during 3/07/15, 20/12/15,15-16/03/16 and 15/06/16 events
Target met 4 Events attended by Amahlathi crafters Grahamstown Arts festival from 30-11 July 2016, Craft Mania at Stutterheim on 01-04th Dec 2016, Heritage and tourism Indaba at Mpekweni 22-23rd February 2017,Craft development exhibition at Ngqushwa on the 15th June 2017. Signed Quarterly reports and pictures attached.
N/A Director; Development and Planning
23
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
2,5 Implementation of one craft mania project
No. of Craft mania Projects Implemented
1 Craft mania project implemented
Target met, 1 Craft mania project is implemented by the 27-29 November 2015
Target met Craft Mania held at Stutterheim on 01-04th Dec 2016. Report and pictures attached.
N/A Director; Development and Planning
24
2,6 Preservation of culture/history and promotion of cultural diversity for nation building whilst uncovering hidden talents through crafts
Hosting of Heritage Festivals
No. of Heritage Festivals hosted
3 Heritage Festivals hosted
Target met, 6 Heritage Festivals hosted in King Kei, Cathcart, Heroes Day festivals hosted by 30 June 2016
Target Met 3 heritage festivals conducted 1. Heritage event Cathcart 30-09-2016, 2. Heroes day event Keiskammhaoek26-12-2016 and 3. Film makers event at Frankfort on the 14-06-2017. Signed Reports, attendance registers and pictures attached
N/A Director; Development and Planning
25
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
2,7 To encourage farmers to produce and assist in massive food programme
Implementation of Massive food Agricultural Project in the Amahlathi area.
No. of farmers provided with maize seeds
200 farmers provided with maize seeds
Target met. 300 bags of maize seeds and herbicide distributed to emerging farmers by 30 June 2016.
Target met 204 farmers were provided with maize seeds. Register of beneficiaries attached
N/A Director; Development and Planning
26
2,8 Capacitation of SMME's and Co-operatives for sustainable businesses
Training of Contractors (SMME's)
No. of contractors (SMME's) trained
Training of Contractors (SMME's)
Target met. 5 contractors trained on 15-18 February 2016
Target met Road Construction Training conducted for 5 contractors on the 17-05-2017 at Stutterheim, Engineering Department
N/A Director; Development and Planning
27
2,9 Identifying and training of Co-operatives based on their commodities.
No. of cooperatives trained
Identifying and training of Co-operatives based on their commodities.
Target met. 10 cooperatives trained on 09-11 February 2016.
Target met
Training of 10 cooperatives in computer (Basic Introduction) on the 27-31 March 2017 at Stutterheim (MCCP)
Signed Report and Attendance
N/A Director; Development and Planning
28
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
registers submitted.
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3.8.3 MUNICIPAL FINANCE VIABILITY (MFV)
IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
3,1 Output 6: Administrative and Financial Capacity
To continuously ensure an equitable, economical, transparent, fair and value - add supply chain management system/function
Monitoring and reporting on the performance of service providers
No. of quarterly Service Provider performance reports submitted to the Mayor
"4 Quarterly Reports on Service Provider performance compiled and submitted to Mayor
Target met, 4 quarterly reports on Service Provider performance prepared and submitted to standing committee
Target met 4 Quarterly Service Provider performance reports attached submitted to Mayor Acknowledgement letter from the office of the Mayor
N/A Chief Financial Officer
29
3,2 Compile Reports on SCM to ensure compliance with the SCM Regulations
No. of quarterly reports on (tenders awarded, deviations report, contract management report ) submitted to the Mayor
"4 Quarterly reports on (Tenders awarded Report ;
Target met. 4 SCM reports compiled and awarded to standing committee on 20 October 2015, 21 January, 20 April 2016
Target met 4 Quarterly reports attached and signed Proof of submission to Mayor dated attached.
N/A Chief Financial Officer
30
3,3 To maintain an accurate and complete fixed asset register that is compliant with GRAP.
Maintain a fixed asset register that comply with GRAP
Updated asset register for the 2016/2017 financial year
Update asset register for the 2016/2017 financial year
Target met, a list of additions on assets procured is attached , and an asset register provided
Target met 4 Quarterly schedule indicating changes to the fixed asset register attached and signed
N/A Chief Financial Officer
31
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
reflects all those assets
3,4 Ensure 80% expenditure of capital budget
Monitoring and reporting on the spending of the municipal capital budget by user departments including BTO
% expenditure of capital budget
80% expenditure of capital budget
Target met, Quarterly expenditure report indicating 80% spending on capital budget prepared
Target met 88.79% capital expenditure incurred by 30 June 2017. Expenditure reports attached
N/A Director: Engineering Services, Community Services
32
3,5 No. of Quarterly reports on capital expenditure
4 Quarterly reports on capital expenditure
Target met, Quarterly expenditure report indicating 80% spending on capital budget prepared
Target met 4 Quarterly reports on capital expenditure indicating 88.79% expenditure incurred by 30 June 2017
N/A Chief Financial Officer
33
3,6 Ensure 70% collection of income due from consumer debtors by 2017
Collect 60% of billed income
% of billed income collected
60% of billed income collected
Target met, 65% of YTD income is billed and collected
Target met 74.88% billed income has been collected during 2016/17 financial year.
N/A Chief Financial Officer
34
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
3,7 To ensure unqualified audit opinion and financial reporting
Compile in-year reports and submit to the standing committee
No. of Monthly Financial reports( Sec 71 reports) Sec 52 Reports Mid-Year Report compiled and submitted to Treasury by legislated dates
8 Monthly Financial reports( Sec 71 reports) 4 Sec 52 Reports submitted Mid-Year Report compiled and submitted to Treasury by the legislated dates
Target met, 3 Monthly Financial reports (Sec 71 reports) is submitted 1Sec 52 Report is submitted to Treasury
Target met 1st quarter 2 monthly section 71 submitted on the (20/08/2016, 12/09/2016) and section 52 12/10/2016, 2nd quarter 2 monthly reports (section 71) submitted on the (14/10/2016, 13/12/2016) and section 52 11/01/2017, 3rd quarter 2 Monthly (section 71) reports submitted on the 14th February and 13th March, Section 52 report on the 10th April 2017, 4th quarter 2 monthly (section 71) reports submitted on the 14 June17 12 May 17
N/A Chief Financial Officer
35
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
(Section 71) and 14/07/2017 section 52 Reports and proof of submission to Treasury attached
3,8 Preparation and submission of credible and GRAP compliant annual financial statements
GRAP compliant annual financial statements prepared and submitted to the Auditor-General
GRAP compliant annual financial statements prepared and submitted to the Auditor-General
Target met, credible and GRAP compliant and/A/financial statements prepared and submitted to the Auditor-General on the 31st August 15
Target met GRAP compliant annual financial statements were submitted to AG on the 31st August 2016. Proof of submission attached
N/A Chief Financial Officer
36
3,9 To prepare a realistic budget in line with the objectives and strategies enshrined in the IDP based
Coordinate and develop Amahlathi municipality's budget for the 2017/2018 financial year
2017/2018 budget prepared and submitted to council for approval
2017/2018 budget prepared and submitted to council for approval
Target met, council minutes dated 31/05/16, together with reflecting the 2016/17 budget are submitted
Target met Final 2017/18 budget Submitted to Council on the 31 May 2017, evidence attached.
N/A Chief Financial Officer
37
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
3,10 on a three-year Medium-Term Revenue and Expenditure Framework (MTREF)
Review revenue related policies
No. of Reviewed policies (Tariff policy, Rates policy, Credit control policy, indigent policy, SCM, Budget Policy, Asset Management) policies submitted to council for approval
7 of Reviewed policies (Tariff policy, Rates policy, Credit control policy, indigent policy, SCM, Budget Policy, Asset Management) policies submitted to council for approval
Target met, minutes of the council meeting where the policy was submitted are submitted
Target met 14 Reviewed Policies (Tariff policy, Rates policy, Credit control policy, indigent policy, SCM, Budget Policy, Asset Management, Virement, System Administration, Petty Cash, Irregular Expenditure, Fruitless and Wasteful Expenditure, Customer Care and Cash Management and Investment Policy) submitted to council for approval On the 31 May 2017. Evidence attached
N/A Chief Financial Officer
38
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
3,11 Ensure effective implementation of the Finance internship programme in line with government job creation initiatives and career development
Monitoring of the implementation of the Finance internship programme
No. of reports on the 2 year internship programme Prepared
4 Quarterly Reports on the 2 year Internship Programme Prepared
Target not met, the reports on the programme are submitted, but the reports were sent on the 19 July 2016 to the standing committee which is outside the period under review not by the 30 June 2016
Target met 4 Quarterly Reports on the 2 year Internship Programme attached.
N/A Chief Financial Officer
39
3,12 Continuously ensure accurate and complete recording and banking of cash received and Investments made
Monitor compliance to receipting, recording and banking of cash procedures, and proper recording of investments
Preparing monthly Bank reconciliation, and monthly Investment register updated
1 Updated Annual Bank Reconciliation an Investment Register
Target met, 12 monthly bank reconciliations prepared Investment register is updated monthly
Target met 12 monthly bank reconciliations prepared Investment register is updated monthly
N/A Chief Financial Officer
40
3,13 To Generate Revenue for the Municipality through Hiring of Municipal halls
Generate Revenue through Hiring of Municipal Halls
% income generated through Hiring of Municipal Halls submitted to standing committee
100% income generated through Hiring of Municipal Halls submitted to standing committee
Target met, Evidence has been submitted and the receipts submitted do reflect and also talks to the
Target not met Reports and receipts were only in 1st and 2nd and 4th quarter, not enough information
No variance report provided
Manager: Community Services
41
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
report granted on application forms. The submission to the standing committee was done on the following dates: 14/10/15;11/11/15;10/02/16;14/04/16
submitted in third quarter to prove 100% income generated
3,14 To Generate revenue for the Municipality through Law Enforcement service, learners, drivers, vehicle testing and MVR.
Generate Revenue through conducting Law Enforcement service, learners, drivers, vehicle testing
No of reports indicating revenue contributions through Law Enforcement service, learners, drivers, vehicle testing
4 Quarterly reports indicating revenue contributions through Law Enforcement service, learners, drivers, vehicle testing
Target met. 4 Quarterly reports indicating revenue contributions through Law Enforcement service, learners, drivers, vehicle testing by end June 2016
Target not met 3 quarterly reports and system printouts submitted in 1st,2nd and 3rd quarter. No information submitted on fourth quarter on revenue generation
There was a technical problem with TCS system which is a mechanism used to achieve goals. The problem has been sorted and there are no other anticipated problems
Manager: Community Services
42
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3.8.4 SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT (SDI)
IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
4,1 Output 2: Improving access to Basic Services
To have a Waste By-Law that meets our requirements and conforms to the NEMA: Waste Act 59 of 2008
Review and implement the Amahlathi Municipal Waste By-Law.
No of reports on by law enforcement
4 reports on by law enforcement
Target met. 4 reports are submitted and the content in the document has been corrected to talk to the work that have been done throughout the year
Target met 4 quarterly reports on waste bylaw enforcement attached
N/A Manager: Community Services
43
4,2 Ensure that Solid Waste is Managed in an integrated, environmentally friendly and sustainable Manner
Implementation of the Integrated Waste Management Plan
No. of households and businesses with basic waste collection
6534 Number of Households and businesses with basic waste collection
N/A Target not met an average of 6518 number of households and businesses collected throughout the year.
During the year the municipality received communication from owners who no longer occupy the land and that cause d a variance of 16 household that waste could not be collected.
Manager: Community Services
44
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
4,3
Host awareness campaigns to ensure reduction of waste going to solid Waste Sites
No. of waste management awareness Campaigns conducted
4 waste management awareness Campaigns conducted
Target met. 4 Awareness Campaigns (Stutterheim, Cathcart, King Kei, Keiskammahoek) conducted by 30 June 2016. Recycling Campaigns (Stutterheim, Cathcart, King Kei, Keiskammahoek) conducted by 30 June 2016
Target met 8 awareness campaigns conducted in 1. Keiskammahoek 09/09/2016, 2. Mlungisi Primary school (19/10/2016), 3. Sikhulule primary school (28/10/2016), 4. Cenyu Primary school (04/11/2016), 5. Nomathemba Primary school (04/11/2016), 6. Kei road combined school 23/02/2017, 7. Daliwe primary school 16/03/2017 and 8. Sophumele H/P school 21/06/2017
N/A Manager: Community Services
45
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
4,4 To ensure effective, efficient and economical management of cemeteries
Implementation of Cemetry Management Plan
No. of cemeteries to be fenced
2 cemeteries fenced
Target met. The report stating the progress was submitted. The schedule of payment provided for two service providers is an evidence enough in saying that the project was executed in due time. Completion certificate for Uluto Active Blue Trading provided and dated 30/03/16
Target not met Only 1 cemetery fenced ad is in Cathcart, during the financial year
The second cemetery could not be fenced due to insufficient budget and it will be prioritized in 2017/18 financial year.
Manager: Community Services
46
4,5 No. of cemeteries maintained
4 cemeteries maintained
Target met. 4 Quarterly reports on Cemetery Management submitted to the standing committee by 30 June 2016
Target met 13 cemeteries maintained (3 first quarter, 4 Second quarter 3 third and 3 fourth quarter.
N/A Manager: Community Services
47
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
Reports attached
4,6 Promote the Culture of Reading and effective use of Library Resources
Conduct Library Activities that promote the Culture of reading and effective use of Library Resources.
No. of library awareness campaigns conducted
4 library awareness campaigns conducted
Target met, 4 Library Activities conducted held on the 23/09/15, 19/11/15, 9/03/16 and on the 14/05/16
Target met 8 library awareness campaigns on the 1. 22/09/2016 Cathcart and 2. 16/11/2016 at Zidenge, 3. Library Orientation Stutterheim Correctional Services on the 07/03/2017, 4. Library for blinds outreach at Ethembeni 20/03/2017, 5. Career exhibition MCCP 16/03/2017, 6. library (book club establishment workshop conducted on
N/A Manager: Community Services
48
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
the 19/05/2017 Stutterheim, 7. Library orientation and book education 15/05/2017 8. Stutterheim library for St Thomas and 24/05/2017 Stutterheim library for Jack and Jill
4,7 To ensure that all existing Community Halls are maintained in all Wards
Facilitate the maintenance of community halls and submit upgrade needs to the relevant department.
No. of community halls maintained
4 community halls maintained
Target met. Four quarterly reports indicating the submission of upgrade and maintenance needs of all Community Halls submitted to standing committee 2016.
Target not met 3 community halls maintained in Mlungisi, Cathcart and Kei road
Request for hall mantainace was submitted late and could not be attended on the same year. Request to prioritized in 2017/18 financial year
Manager: Community Services
49
4,8 To upgrade and maintain the existing sports
Facilitate the maintenance and repairs of sports and
No. of sport and recreational facilities maintened
4 sport and 1 recreational facilities maintened
Target met. Four quarterly reports on the Maintenance of
Target met Report indicating 5 sport filed in
N/A Manager: Community Services
50
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
and recreation facilities
recreation facilities.
Sports and Recreational facilities submitted to standing committee by 30 June 2016.
Kei road, boarder post, Nonkululeko, (Ndakana) Carthcart town and Stutterheim town in first quarter, Report indicating 5 sport field in ward 13 Newtown extension 4 ,ward 6 Amatolaville, and ward 8 Ndakana primary school, Newtown extension 4 and Cathcart town and 1 recreational facility in Cathcart maintained in second quarter,
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
4,9 Ensure effective Management of Commonage/Environmental Management Plan
Implementation of the Commonage/Environmental Management Plan
No. of Commonages mantained
3 Commonages mantained
Target met.4 Quarterly reports on commonage have been attached and submitted to the standing committee on the following dates:14/10/15;11/11/15;10/02/16;14/04/16;
Target met 7 commonages maintained (Mantainance of Rands timber commonage, Keiskammahoek, Cathcart commonage, and bird sanctuary camp in first quarter, mantainance of Afforestation camp, Kesikammahoek pound in second quarter and Fixing of fence in Cathcart (N6 boundries) durig third quarter)
N/A Manager: Community Services
51
4,10 Facilitate sustainable co-ordination of Community Safety Activities
Facilitate the implementation of the Amahlathi Community Safety Plan
No. of community safety awareness campaign
4 community safety awareness campaign (Stutterheim,
Target met. 4 meetings to held (Stutterheim, Cath cart, Keiskammahoek
Target met 13 awareness campaign conducted at 1.Ndumangeni
N/A Manager: Community Services
52
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
(Stutterheim, Cathcart,Keiskammahoek, King Kei)
Cathcart,Keiskammahoek, King Kei)
, King Kei) on the implementation of the Amahlathi Community Safety Plan by 30 June 2016.
(11/08/2016), 2. Isihoboti high school 11/08/2016, 3. Lower Mnyameni Community hall 14/09/2016, 4. Goshen Primary School 27/10/2016, 5.Sonwabile 02/11/2016, 6. Goshen Community hall 23/11/2016 7.Ndumangeni 29/11/2016, 8. Toise primary school, 24/03/2017, 9.Ndakana primary school 31/01/2017, 10. Daliwe primary school 17/02/2017, 11. Matthew
Amahlathi Local Municipality –Draft Unaudited Annual Report 2016/17
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
Goniwe H/P School ward 7 on the 04/05/2017. 12. Tshoxa community hall (ward1) 09/05/2017 and 13. DG Cossie SPS (ward 4) 10/05/2017. Report, registers attached
4,11 To continue protecting human life, property, land and assets from deleterious consequences of fire
Enhance Fire Safety Compliance by ensuring appropriate responses to fire outbreaks
No. of reports indicating responses to fire outbreaks submitted to the standing committee
4 quarterly reports indicating responses to fire outbreaks submitted to the standing committee
Target met. 4 quarterly reports indicating responses to fire outbreaks submitted to the standing committee by 30 June 2016
Target met reports indicating fire outbreaks submitted to standing committee
N/A Manager: Community Services
53
4,12 Create Awareness and Education in Fire Prevention
No. of Fire Awareness Campaigns conducted
4 Fire Awareness Campaigns conducted
Target met 4 fire awareness campaigns conducted (Stutterheim, Cathcart, Keiskammahoek
Target met 9 fire awareness campaign conducted 1. Mgwali 09/09/2017, 2. Goshen
N/A Manager: Community Services
54
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
, King Kei) by 30 June 20167
community hall 23/11/2016, 3.Ndumangeni Community hall 29/11/2016, 4. Goshen primary 27/10/2016, 5. Ngxamngxa primary school 28/03/2017, 6. Border post community hall 30/03/2017, 7. Mathew Goniwe HP school 4/05/2017, 8. Tshoxa community hall 09/05/2017, 9. DG Cossies SPS 10/05/2017 Attached registers and reports
Amahlathi Local Municipality –Draft Unaudited Annual Report 2016/17
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
4,13 To minimize the number of crime incidents (level of crime)
Conduct Community Safety Awareness Campaigns and capacity building initiatives for ward committees and ward Councillors
No. of Community Safety Awareness Campaigns and capacity buildings initiatives conducted
4 Community Safety Awareness Campaigns and capacity buildings initiatives conducted
N/A Target met 13 awareness campaign conducted at 1.Ndumangeni (11/08/2016), 2. Isihoboti high school 11/08/2016, 3.Lower Mnyameni Community hall 14/09/2016, 4. Goshen Primary School 27/10/2016, 5.Sonwabile 02/11/2016, 6.Goshen Community hall 23/11/2016 7.Ndumangeni 29/11/2016, 8. Toise primary school, 24/03/2017, 9.Ndakana primary school
N/A Manager: Community Services
55
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
31/01/2017, 10.Daliwe primary school 17/02/2017, 11. Matthew Goniwe H/P School ward 7 on the 04/05/2017. 12. Tshoxa community hall (ward1) 09/05/2017 and 13. DG Cossie SPS (ward 4) 10/05/2017. Report, registers attached
4,14 To promote road safety on public roads
Attend Road Safety Awareness Campaigns and capacity building initiatives
No. of Road blocks conducted
12 Road blocks conducted
Target met, Attended Road Safety Awareness Campaigns and capacity building initiatives conducted by 30 June 2016.
Target met 22 road blocks conducted in Amahlathi clusters 09/09/2016 Cathcart, 16/09/2016 Keiskammahoek, 23/09/2016 Kei road, 30/09/2016
N/A Manager: Community Services
56
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
Stutterheinm 02/12/2016 Cathcart, 09/12/2016 Keiskammahoek, 16/12/2016 Kei road, 23/12/2016 Stutterheim and 30/12/2016 Stutterheim 10/02/17Stutterheim 24/02/17 Stutterheim 25/02/17 Stutterheim 18/02/17Stutterheim 21/02/17 Stutterheim 17/02/17 Stutterheim 15/02/17 Keiskammahoek 15/02/17 Stutterheim 16/02/17 Keiskammahoek
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
16/02/17 Stutterheim 31/03/17 Kei Road 05/05/2017 Cathcart 07/04/2017, Stutterheim Report, pictures, law enforcement plan and occurrence book attached
4,15 Extension of law enforcement to include all clusters
Extend Law Enforcement Services to include all clusters.
No. of reports indicating that law enforcement is conducted in all clusters
Four quarterly reports indicating that law enforcement is conducted in all clusters
Target met. 4 quarterly reports/ schedules indicating that law enforcement is conducted iN/All clusters by 30 June 2016.
Target not met 3 quarterly reports on law enforcement provided in quarter 1, 2 and 3. Not enough evidence in quarter 4
Shortage of staff during fourth quarter, there number will be improved in 2017/18 to adequately attend the target.
Manager: Community Services
57
4,16 To contribute towards the reduction of road carnages
Provision of proper road markings and signage's
% of damaged road signs mantained
75% of damaged road signs mantained
Target met. 4 Quarterly reports indicating inspections and work done to ensure proper road markings
Target met 89.46% of damaged road signs repaired. Reports submitted
N/A Manager: Community Services
58
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
and signage's submitted to the standing committee by 30 June 2016
4,17 Facilitate for the development of Human Settlement Projects within Amahlathi Local Municipality
Submission of reports received on emergency housing applications to the standing committee
No. of reports on progress of housing projects implemented
4 reports on progress of housing projects implemented
Target met Minutes of the standing committee meetings held on the 18/07/15, 13/11/15,10/03/16 and 10/06/16 are submitted with reports on the housing applications
Target met 4 quarterly reports on housing projects implemented attached
N/A Director; Development and Planning
59
4,18 Ensure effective and efficient land administration within Amahlathi Municipality
Review and update of the municipal land register
No. of reports on the review and update of Municipal Land Register for 2016/17 when necessary
4 quarterly submissions of the reviewed and updated Municipal Land Register of 2015/16 submitted to the standing committee
Target not met only 3 reports were submitted to the standing committee on municipal land register of 2015/16
Target not met Land register was submitted to standing committee only in first and 4th quarter.
To ensure that any site that comes along must be registered and report submitted to standing committee
Director; Development and Planning
60
4,19 Provide continuous access road maintenance on municipal road
Implementation of the Roads Blading Plan as well as
No of Kilometres of gravel roads maintained (dry blading and wet blading
200 km gravel access and internal roads bladed ( 100
Target met. Evidence that proves the number of km’s claimed to be
Target met 491 km gravel access and internal roads bladed
N/A Manager: Engineering Department
61
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
(gravel and tarred)
maintenance of tarred roads
blading and 100 wet blading)
achieved by the department has been attached. Q1=154,63km Q2=133,08km Q3=124,96km Q4=129,94km Total=542,61km achieved for annual performance. The attached weekly reports for quarter 4 proves the 129, 94 km reported as the achievement.
Quarterly report attached and signed Expenditure reports on capital budget attached. Pictures attached
4,20 No. of KMs of municipal roads regravelled
4KMs of municipal roads regravelled
N/A Target met 41.85 km of municipal roads regravelled Signed progress report attached Pictures attached
N/A Manager: Engineering Department
62
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
Expenditure report attached.
4,21 % of Potholes repaired as per departmental inspections
80% Potholes repaired as per departmental inspections
Target met, inspection reports prepared by supervisors are submitted
Target met 89.25% inspected potholes repaired
N/A Manager: Engineering Department
63
4,22 No of km of Inspected storm water drains unblocked
1km of Inspected storm water drains unblocked
Target met, complaints books attached to prove that they have unblocked the drains that were reported
Target met 24930.8 m of inspected storm water drains unblocked. Quarterly reports and inspection reports attached
N/A Manager: Engineering Department
64
4,23 Provide access to roads and continuous road maintenance in Amahlati Local Municipality
Regravelling of existing roads
No. of km of roads graveled
16km of roads graveled
Target met, site progress reports signed by project manager and HOD are submitted reflecting 24km’s done for the year made of Madubela= 4.5 km, Freshwater =
Target Met 26.63km of municipal roads graveled (Freshwater, Madubela, White City, Phumlani, Jerseyville and Chris Hani internal roads)
N/A Manager: Engineering Department
65
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
4.5km, Isidenge = 8km and Kubusi = 7
Reports attached and completion certifcates
4,24 No. of M of roads surfaced
600m of roads surfaced
Target met, completion certificate dated 3019/05/16 for cenyu to kalimashe, progress report and minutes for the site meetings are submitted, as well as the completion certificate for Xhologha roads
Target met 1494m of roads surfaced at Xhologha.
N/A Manager: Engineering Department
66
4,25 Provide access to Community Services and sporting facilities
Construction of Pedestrian Walkways and Small Town's Beatification
No. of square meterage of pedestrian walkways constructed
700m² of pedestrian walkways constructed
N/A Target met 2400 square meters of pedestrian walkways constructed at Keiskammahoek.
N/A Manager: Engineering Department
67
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
4,26 Installation of High Mast Lights
No.of High Mast Lights installed in clusters
Quarterly progress report
Target met, completion of high mast lights at Ngcamngeni is submitted, as well as for KKH.
Target met Highmast lights installed at Masincedane, Ethembeni, Cathcart and Toise,
N/A Manager: Engineering Department
68
4,27 To ensure that municipal buildings are continuously and adequately maintained and kept in a usable condition
Respond to faults in municipal buildings.
% identified faults in Municipal buildings
80% of Inspected minor faults repaired
Target met. 100% identified faults in municipal buildings repaired (minor repairs) per the activity register for Jan/Arya, February and March 2016.
Target met 100% inspected minor faults repaired
N/A Manager: Engineering Department
69
4,28 No. of Inspected buildings to be renovated
2 Inspected building renovated
N/A Target met 2 major inspected building repaired (Strategic Services/ Development and Planning Offices and Isihobothi Centre
N/A Manager: Engineering Department
70
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
Community Hall.) Quarterly report attached with pictures
4,29 To facilitate the connection of electricity to all households within the Amahlathi municipal area
Facilitate and monitor the electricity connections done by Eskom
Electrification in North East King extensions and Mgwali /Heckle to be done by 30 June 2016
Facilitate electrification of North East King and Mgwali/heckel area by 30 June 2016
Target met. Progress report from Eskom and minutes of the meetings held with Eskom reporting on the progress made.
Target not met 2 quarterly reports submitted on third and fourth quarter on electrification status
The municipality is going to develop Service Level Agreement with Eskom to enhance smooth operations with regards to report on electrification projects by Eskom.
Manager: Engineering Department
71
4,30 Ensure on-going functioning of street lights and mast lights in the Amahlathi municipality area
Repair and maintenance of street and high-mast lights
% of reported faulty street and high- mast lights repaired
90% of reported faulty street and high- mast lights repaired
Target met. 100% identified faults in municipal buildings repaired (minor repairs) by 30 June 2016.
Target met 100% of reported street and high mast lights from June to July 2017 repaired and a system printout submitted to
Delays due to old equipment, new equipment has been ordered also not closing off the resolved queries on the system
Manager: Engineering Department
72
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
support the percentage
caused a challenge.
4,31 Ensure on-going functioning and accurate reading of electricity consumption in the Amahlathi municipal supply area
Optimal functioning of electric meters and accurate reading
% of reported faulty meters repaired
95% of reported faulty meters repaired
Target met All Faulty meters were repaired
Target met 100% of reported faulty meters from June 2016 to July 2017 repaired and a system printout submitted to support the percentage
Challenge of closing off the resolved queries on the system and it will be emphasized during 2017/18 financial to the system users.
Manager: Engineering Department
73
4,32 To improve continuity of efficient electricity supply within Amahlathi municipal supply area in line with NERSA
Upgrading and installation of 11KV cable
No of M (KVA) installation
2 400M installation
Target not met, the upgrade has not been finalized still work in progress
Target met 2400m of 11kv cables installed
N/A Manager: Engineering Department
74
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3.8.5 MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT (MTI)
IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
5,1 Output 1: Implement and differentiate approach to Municipal Finance, Planning and support
To ensure compliance with applicable legislation, regulations, policies and procedures on an on-going basis
Compliance with Recruitment Plan.
% of new posts filled as per the approved staff establishment
100% of new posts filled as per the approved staff establishment
Target met. 12 Workshopped Municipal Policies by 30 June 2016.
Target not met 86.67% of new posts filled as per approved staff establishment plan
Post was filled during the year as it was discovered that it was unfunded. To ensure all the posts on the recruitment plan are funded
Director: Corporate Services
75
5,2 Turnaround time taken to fill vacant position
4 months Turnaround time taken to fill vacant position
Target met. All vacant positions filled within 4 months after the post becomes vacant
Target not met None of the vacant positions that were filled within 4 months, they are between 5 to 6 months or more.
None of the vacant positions that were filled within 4 months, they are between 5 to 6 months or more. Variance report attached stating that the 2 senior positions that were supposed to be filled
Director: Corporate Services
76
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
undergone all the necessary process but not yet filled. To prioritise the appointment of senior managers.
5,3 To ensure coordination of implementation, monitoring and evaluation of IDP by 2017
Coordinate development and alignment of IDP, SDBIP and budget integration Implement and monitor an effective PMS system across the institution
2017/18 IDP submitted to Council for approval approved by Council
2017/18 IDP submitted to Council for approval approved by Council
Target met. 2016/17 IDP submitted to Council for approval approved by Council by 31 May 2016
Target met Final IDP submitted to Council for approval on the 31 May 17. Council Resolution attached
N/A Director; Strategic Management Services
77
5,4 Approved 2017/18 SDBIP and Signed Performance Agreements by section 56/57 Managers submitted to The Mayor
Approved 2017/18 SDBIP and Signed Performance Agreements by section 56/57 Managers submitted to The Mayor
Target met. Approved 2015/16 SDBIP and Signed Performance Agreements by section 56/57 Managers submitted to the Mayor for approval 24 June 2016
Target met Copy of Final 2017/18 SDBIP attached 2. Proof of Approval by Mayor on the 23 of June 2017 attached
N/A Director; Strategic Management Services
78
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
5,5 No. of Quarterly Organisational Performance Assessment report
4 Quarterly Organisational Performance Assessment reports
Target met. 4 Organisational Performance Assessment reports prepared and submitted
Target met 4 quarterly organizational Performance assessment report attached and signed 2. Council Minutes attached Date: July 2016, 28th October 2016, 25 January, 31 May 2017
N/A Director; Strategic Management Services
79
5,6 No. of Quarterly Individual Performance Assessment report
4 Quarterly individual Performance Assessment reports
Target not met, the reports are attached in the files but they have not been submitted to the standing committee
Target not met No individual performance reviews conducted by departments even though request was sent reminding them.
The department will continue coordinating the process of individual performance reviews with HODs
Director: Corporate Services
80
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
5,7 Annual Report submitted to Council
2015/16 Annual report submitted to Council
Target met. 2014/15 Annual report submitted to Council on 10 December 2015
Target met 2015/16 Annual Report was submitted to Council on the 08th of December 2016
N/A Director; Strategic Management Services
81
5,8 Reviewed 2016/17 Performance Policy submitted to Council for Approval
Reviewed 2016/17 Performance Policy submitted to Council for approval
Target met. Final PMS policy submitted to Council on the 29 April 2016
Target met Final PMS policy submitted to Council on the 31st of May 2017 PMS Policy and Proof of submission to Council attached.
N/A Director; Strategic Management Services
82
5,9 Established and maintained credible records management system for the municipality
Implementation and monitoring of Records Management Policy
No. of quarterly reports on the implementation and monitoring of Records Management Policy
4 quarterly reports on the implementation and monitoring of Records Management Policy
Target met. 4 quarterly reports attached stating the progress
Target met 4 quarterly report on the implementation and monitoring of records management policy attached
N/A Director: Corporate Services
83
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
5,10 To ensure a stable institutional environment
Implementation of WSP
No. of Quarterly reports on trainings in line with WSP indicating 100% budget spent
4 Quarterly reports on trainings in line with WSP indicating 100% budget spent
Target met, system printout reflecting that the budget has been fully utilized, attendance registers of trainings attended during the year are submitted
Target not met 79.58% expenditure of total budget in third quarter, no expenditure report submitted in fourth quarter
The institution should centralize all the budget meant for trainings to the HRD Section, so that all trainings could be conducted through HRD to avoid wasteful expenditure
Director: Corporate Services
84
5,11 Implementation of EEP
No. of reports on the implementation of Employment Equity Plan to be submitted to the standing committee
4 quarterly reports on the implementation of Employment Equity Plan to be submitted to the standing committee
Target met. 4 quarterly reports on the implementation of Employment Equity Plan prepared and submitted to the standing committee on the
Target not met 3 quarterly report on the implementation of EEP and standing committee minutes attached
The report was not submitted to Standing committee during the first quarter, the department will ensure reporting is done quarterly to standing committees
Director: Corporate Services
85
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
5,12 To ensure cost efficient use of Amahlathi Council Resources
Implementation of Telephone Management Policy
% Reduction in maintenance costs
20% Reduction in maintenance costs
Target met. The reports with supporting evidence has been attached
Target not met Reports indicating reduction by 10.13% compared to Q3 and increase of 15.77% to annual budget
Vodacom has been appointed to implement the new telephone system which will assist the institution to reduce the costs.
Director: Corporate Services
86
5,13 Monitoring the use of municipal vehicles (Fleet Management)
% Reduction on vehicle maintenance costs
20% Reduction on vehicle maintenance costs
Target met. Quarterly reports on the monitoring of municipal vehicles were submitted to the standing committee and the minutes attached .Dates are as follows: 19/08/15;21/07/15;16/09/15;14/10/15;11/11/15;20/01/16;10/02/16;09/03/16;14/04/16;12/05/16;15/06/16
Target not met Vehicle maintenance costs increased from R965 375.68 to R1 018 239.58 which is 5.47% (R52863.90) increase in fourth quarter.
To urgently auction all old municipal vehicles and be replaced by new ones. These vehicles are costing the municipality. Centralization of Fleet budget and additional staff will assist the unit
Director: Corporate Services
87
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
5,14 To provide efficient and effective customer service
Rollout of the Local Government Service Charter and Batho Pele Principles to all workplaces
No. of workshops conducted
4 workshops conducted
Target met. 4 workshops conducted by 30 June 2016
Target met 4 Workshops conducted on the 1. Cathcart 29- 09-2016 2. 08/12/2016 Keiskammahoek, Springbok hall, 3. Keiskammahoek 23/03/2017, 4. 19/06/2017 (MCCP). Agenda, Report, minutes and attendance registers attached.
N/A Director: Corporate Services
88
5,15 To create a healthy working environment within the Amahlathi Council.
functionality of the EAP Unit
No. of EAP programs conducted
4 EAP programs conducted
Target met, reports on the activities performed by EAP unit however there is no proof of submission to the standing committee
Target met 13 EAP programs were conducted on the following dates; 1.18/08/2016 Kei road
N/A Director: Corporate Services
89
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
.Dates are as follows: 19/08/15;21/07/15;16/09/15;14/10/15;11/11/15;20/01/16;10/02/16;09/03/16;14/04/16;12/05/16;15/06/16
HEPB vaccination, 2. 23/08/2016 Stutterheim Library Cancer awareness, 3. 04/10/2016 Engineering department Resubstance abuse problem report, 4. 01/12/2016 Lutheran Hall World Aids day Celebration 5. 21/02/2017 STI and TB awareness (Kei road, 6. 21/02/2017 STI and TB awareness (Cathcart), 7. 23/02/2017 (Stutterheim) and 8.24/02/2017 medical and surveillance
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
vaccination 9.23/03/2017 HR sharing session and sexual health awareness (Keiskammahoek, Flu vaccination Dates 10.20/04/2017 KKH 11. 12/04/2017 Main office 12. 19/04/2017 Cathcart 18/04/2017 Kei road and 13. 30/05/2017 Candle light awareness in Cathcart
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2016/17
Annual Actual 2015/16
Annual Actual 2016/17
Reason/Comment and Corrective Action
Custodian KPI NO
5,16 Implementation of Occupational Health and Safety Plan
% reduction of occupational incidences recorded
20% reduction of occupational incidences recorded
Target met. 4 Quarterly reports on the implementation of the OHS Plan prepared and submitted to the standing committee
Target not met Submitted reports only reflected incidences occurred and did not indicate the incidences before as a result we were unable to see the reduction. There were no incidences reported in third and fourth quarter as per the reports submitted
Health education will be rendered to prevent unnecessary incidents as some of them are just mere negligence by employees.
Director: Corporate Services
90
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CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE
4.1 INTRODUCTION
2016/2017 has been a challenging year with regard to the working relations between the employer and employees.
Number of industrial actions occurred as a result ± 37 employees were suspended from the workplace. The
relations between the employer and employees became unsound, however there is an ongoing process which is
well planned to change attitudes, beliefs of employees and to create and enforce appropriate behaviours. The
fundamental objective is to enable the municipality to efficiently adapt to the fast changing internal and external
environment.
To achieve some the afore-stated objectives, a number of job descriptions have been subjected to job evaluation
and re-grading.
4.2. MUNICIPAL WORKFORCE & LEVELS OF REPORTING
There are 6 section 56 managers as per the approved Organisational Structure of the municipality, 5 managers
have been employed and 1 manager has not been appointed and the post has been vacant in the year under
review. The managers have signed performance agreements together with the acting manager which all have
been submitted to the Department of Local Government and Traditional Affairs within the required time frames.
One of the directors left the municipality during the year. The positions have been advertised to fill in the vacant
position through recruitment processes.
The 6 section 56 managers lead the following departments
Engineering Services
• Community Services
• Development and Planning
• Budget and Treasury Office
• Corporate Services
• Strategic Management Services
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4.1 Full time staff complement per functional area
Employees
Description
Year -1 Year 2015/16
Employees Approved Posts previous
year Total No
No. 2015/16 2016/17 Employees
Corporate Services 24 2 26
Development and Planning 20 2 7 29
Engineering Department 131 7 2 140
Community Services 82 5
11 98
Executive Services 8 – 4 12
Strategic Management Services 15 2 1 18
BTO
33
5 1 39
Totals 313 '23 ‘25 361
Headings follow the order of services as set out in chapter 3. Service totals should equate to those included in the Chapter 3
employee schedules. Employee and Approved Posts numbers are as at 30 June, as per the approved organogram.
Vacancy Rate: Year 2016/17
Designations
*Total
Approved
Posts
*Vacancies (Total time
that vacancies exist using
fulltime equivalents)
*Vacancies
(as a proportion of total posts
in each category)
No. No. %
Municipal Manager 1 0 100.00
CFO 1 1 0
Other S57 Managers (excluding
Finance Posts)
6 1
20.00
Senior Manager Levels 13-15 21 5 24.00
Highly skilled supervision levels 9-12 59 11 13.55
Total 88 32 18.52
Note: *For posts which are established and funded in the approved budget or adjustments budget (where changes in employee
provision have been made). Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends
and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior
management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days.
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4.3 MANAGING THE MUNICIPAL WORKFORCE
Turn-over Rate
Details
Total Appointments as of beginning of
Financial Year
Terminations during the
Financial Year
Turn-over Rate*
No. No.
Year (2016 / 2017) 24 Resignations - 6
Retirement - 4
Death – 1
Ill health - 1
Total 18 Promotions - 6
* Divide the number of employees who have left the organisation within a year, by total number of
employees who occupied posts at the beginning of the year T 4.1.3
HR Policies and Plans
Name of Policy Completed Reviewed Date adopted by
council or
comment on
failure to
% . adopt
1 Upper limits for councillors 100% 20-21 Sept 2016 31 May 2017
2 Code of conduct for councillors 100 20-21 Sept 2016 31 May 2017
3 Rules of order 100 20-21 Sept
2016 31 May 2017
4 Intergovernmental Policy
framework 100 20-21 Sept 2016 31 May 2017
5 Code of conduct for ward
committees 100 20-21 Sept 2016 31 May 2017
6 Career Management policy 100 23-24 May 2017 31 May 2017
7 Experiential training policy 100 23-24 May 2017 31 may 2017
8 Scarce Skills Policy 100 23-24 May 2017 31 may 2017
9 Employee study assistance policy 100 23-24 May 2017 31 may 2017
10 Training and development policy 100 23-24 May 2017 31 May 2017
11 Acting allowance policy 100 02-04 May-2017 31 May 2017
12 Bereavement Policy 100 02-04 May 2017 31 May 2017
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13 Civic Funeral 50 02-04 May 2017 31 May 2017
14 Leave Policy 100 02-04 May 2016 31 May 2017
15 Policy on policy development 100 02-04 May 2017 31 May 2017
16 Fleet management Policy 100 02-04 May 2017 31 May 2017
17 Subsistence and Travelling Policy 100 02-04 May 2017 31 may 2017
18 Official transport to attend
Funerals (Bereavement Policy) 100 02-04 May 2017 31 May 2017
19 Job Evaluation review policy 100 02-04 May 2017 31 May 2017
20 Occupational health and safety
policy 100 02-04 May 2017 31 may 2017
21 Overtime and shift allowance
policy 100 02-04 May 2017 31 May 2017
22 Performance Management and
Development 100 02-04 May 2017 31 May 2017
23 Recruitment, Selection policy 100 02-04 May 2017 31 May 2017
24 Code of conduct for staff members 100 02-04 May 2017 31 May 2017
25 Long Service Allowance Policy 100 02-04 May 2017 31 May 2017
26 Grievance procedure SALGBC
27 Skills Development policy 100 02-04 May 2017 31 May 2017
28 Staff retention policy 100 02-04 May 2017 31 May 2017
29 Telephone usage and cellular
allowance phone 100 02-04 May 2017 31 May 2017
30 Records Management Policy 100 02-04 May 2017 31 May 2017
31 Uniforms and Protective Clothing
(Health and Safety Policy) 100 02-04 May 2017 31 May 2017
32 Remuneration scales and
allowances 100 SALGBC 11-Dec-14
Use name of local policies if different from above and at any other HR policies not listed. T 4.2.1
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4.3.2 SICK LEAVE
Number and Cost of Injuries on Duty
Type of injury
Injury Leave Taken
Employees using injury leave Proportion employees
using sick leave Average Injury Leave per
employee
Total Estimated Cost
Days No. % Days R'000
Required basic medical attention only
57 1 2% 57 0
Temporary total disablement 0 0 0% 0
Permanent disablement 0 0 0% 0 0
Fatal 0 0 0% 0
Total 57 1 2% 57 0
T 4.3.1
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Number of days and Cost of Sick Leave (excluding injuries on duty)
Salary band
Total sick
leave
Proportion of sick leave
without
medical certification
Employees using sick
leave
Total employees in post* *Average sick leave
per
Employees
Estimated cost
Days % No. No. Days R' 000
Lower skilled (Levels 2-5) 486
5.55% 67 116 4.18
Skilled (Levels 6-11) 499 8.21% 79 115 4.33
Highly skilled production
(levels 12-17)
541
11.82% 68 84 6.44
Interns 6 83.33% 2 4 1.5
Other (task grade pending) 2
100% 1 4 0.5
MM and S57 24 16.66% 4 5 4.8
Total 1558 9.17% 221 328 4.75
* - Number of employees in post at the beginning of the year T 4.3.2
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Number and Period of Suspensions
Position Nature of Alleged Misconduct Date of
Suspension
Details of Disciplinary Action taken or Status of Case and
Reasons why not Finalised
Date Finalised
P.M.U Manager Gross Insubordination and Deliration of
Duties.
23/03/2017 Pending, the Disciplinary Hearing that as scheduled for the 14th of July was
postponed due to unforeseen circumstances.
Open
Unit Manager Gross Insubordination 06/04/2017 Pending, Disciplinary Hearing was scheduled for the 25th of July 2017. Open
General Worker Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Security Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Secretary to the
Municipal Manager
Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Supervisor Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
General Worker
Development and
Planning
Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Receptionist Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Heavy Duty Operator Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Security Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
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General Worker: Refuse
Section
Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
T.C.S Operator Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Security Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Superintendent Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Cleaner/ Messenger Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
General Worker Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Secretary to the Director
Community Services
Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Security Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
General Worker: Refuse
Section
Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Cleaner/ Messenger Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Cleaner/ Messenger Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
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General Worker Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Internal Audit Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Traffic Warden Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Expenditure Accountant Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Bank Recon. Officer Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Tourism Officer Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Creditors Clerk Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Payroll Officer Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Executive Administrator
Office of the Municipal
Manager
Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Superintendent Gross Misconduct 12 April 2017 Pending, In a disciplinary Hearing that was held on the 21st of June the matter was
postponed for the 27th of July 2017.
Open
Senior T.C.S Operator Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee
Representative to schedule a date for a Disciplinary Hearing.
Open
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Supervisor: Road
Maintenance
Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee
Representative to schedule a date for a Disciplinary Hearing.
Open
Administrator:
Community Services
Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee
Representative to schedule a date for a Disciplinary Hearing.
Open
General Worker Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee
Representative to schedule a date for a Disciplinary Hearing.
Open
General Worker Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee
Representative to schedule a date for a Disciplinary Hearing.
Open
General Worker Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee
Representative to schedule a date for a Disciplinary Hearing.
Open
General Worker Gross Misconduct 12 April 2017 Pending, Waiting for the Presiding Officer, Employer Representative and Employee
Representative to schedule a date for a Disciplinary Hearing.
Open
General Worker Continuous Absenteeism 09/06/2017 Dismissed 27 June 2017
Director Community
Services Department
Corruption On Progress Open
Director Corporate
Services Department
Gross Negligence Pending, A disciplinary hearing that was scheduled for the 29th and 30th of March
2017 but was postponed till further notice
Open
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Disciplinary Action Taken on Cases of Financial Misconduct
Position Nature of Alleged Misconduct and Rand value of any loss to the
municipality
Disciplinary action taken Date Finalised
Cashier Gross Insubordination, Gross Dereliction of Duties, Theft Dismissed 03 May 2017
Cashier Gross Insubordination, Gross Dereliction of Duties, Theft Suspended Open, Pending the results
of the Disciplinary hearing.
T 4.3.6
4.4 CAPACITATING THE MUNIPAL WORKFORCE - SKILLS DEVELOPMENT AND TRAINING
SKILLS DEVELOPMENT MATRIX
Skills Matrix
Management
Level
Gender Employees in post
as
at 30 June
Year 2017
Number of Skilled employees required and actual as at 30 June Year 2017
Learnerships Skills programmes & other short
courses
Other forms of training Total
No. Actual: End
of Year 2016
Actual: End
of Year 2017
Year
2017
Target
Actual: End
of Year 2016
Actual: End
of Year 2017
Year: 2017
Target
Actual: End
Of Year 1
Actual: End
Of Year 0
Year 0
Target
Actual: End
Of Year -2016
Actual: End
of year 2017
Year : 2017
Target
MM and s57 Female 0 0 2 0 0 2 0 0 4
Male 0 0 1 0 0 2 0 0 3
Councillors,
senior
officials and
managers
Female 0 0 1 0 0 21 0 0 22
Male 0 0 0 0 0 25 0 0 25
Female 0 0 0 0 0 1 0 0 1
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Technicians and
associate
professionals*
Male 0 0 0 0 0 1 0 0 1
Professionals Female 0 0 3 0 0 10 0 0 13
Male 0 0 1 0 0 9 0 0 10
Semi-Skilled
and Unskilled
Female 0 0 0 0 0 23 0 0 23
Male 0 0 0 0 0 19 0 0 19
Sub total Female 0 0 6 0 0 57 0 0 63
Male 0 0 2 0 0 56 0 0 58
Total 0 0 0 8 0 0 113 0 0 121
*Registered with professional Associate Body e.g CA (SA) T 4.5.1
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Financial Competency Development: Progress Report*
Description
A.
Total number of
officials employed
by municipality
(Regulation 14(4)(a)
and (c))
B.
Total number of
officials employed
by municipal
entities (Regulation
14(4)(a) and (c)
Consolidated: Total
of A and B
Consolidated:
Competency
assessments
completed for A
and B (Regulation
14(4)(b) and (d))
Consolidated: Total
number of officials
whose performance
agreements comply
with Regulation 16
(Regulation 14(4)(f))
Consolidated: Total number of
officials that meet prescribed
competency levels (Regulation
14(4)(e))
Financial Officials
Accounting officer 1 0 1 0 1 0
Chief financial officer 1 0 1 1 1 1
Senior managers 3 0 3 0 0 0
Any other financial officials 30 0 30 0 0 0
Supply Chain
Management Officials
Heads of supply chain management
units
0 0 0 0 0 0
Supply chain management senior
managers
1 0 1 1 0 0
TOTAL 36 0 36 2 2 1
* This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007) T 4.5.2
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SKILLS DEVELOPMENT MATRIX
Skills Matrix
Management
Level
Gender Employees in post
as
at 30 June
Year 2017
Number of Skilled employees required and actual as at 30 June Year 2017
Learnerships Skills programmes & other short
courses
Other forms of training Total
No. Actual: End
of Year 2016
Actual: End
of Year 2017
Year
2017
Target
Actual: End
of Year 2016
Actual: End
of Year 2017
Year: 2017
Target
Actual: End
Of Year 1
Actual: End
Of Year 0
Year 0
Target
Actual: End
Of Year -2016
Actual: End
of year 2017
Year : 2017
Target
MM and s57 Female 0 0 2 0 0 2 0 0 4
Male 0 0 1 0 0 2 0 0 3
Councillors,
senior
officials and
managers
Female 0 0 1 0 0 21 0 0 22
Male 0 0 0 0 0 25 0 0 25
Technicians and
associate
professionals*
Female 0 0 0 0 0 1 0 0 1
Male 0 0 0 0 0 1 0 0 1
Professionals Female 0 0 3 0 0 10 0 0 13
Male 0 0 1 0 0 9 0 0 10
Semi-Skilled and
Unskilled
Female 0 0 0 0 0 23 0 0 23
Male 0 0 0 0 0 19 0 0 19
Sub total Female 0 0 6 0 0 57 0 0 63
Male 0 0 2 0 0 56 0 0 58
Total 0 0 0 8 0 0 113 0 0 121
*Registered with professional Associate Body e.g CA (SA) T 4.5.1
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4.5 MANAGING THE WORKFORCE EXPENDITURE
Designation Wages and benefits
2015/16
Wages and benefits 2016/17
Municipal Manager R 1 231 013 R 1 340 628
Corporate Services Manager R 1 084 174 R 1 178 730
Planning and Development Manager R 1 084 174 R 1 178 730
Engineering Services Manager R 801 927 R 0
Community Services Manager R 1 084 174 R 1 178 730
Finance Manager (CFO) R 1 084 174 R 1 045 376
Strategic Manager R 958 313 R 1 111 542
EMPLOYEE RELATED COSTS 2015/16 2016/17
Basic R 57 172 695 R 72 033 962
Bonus R 4 904 839 R 5 133 362
Medical aid contributions R 2 830 683 R 3 674 493
UIF R 487 156 R 569 543
Travel, motor car, accommodation, subsistence and other
allowances
R 1 151 600 R 1 676 340
Overtime payments R 1 801 323 R 2 865 096
Acting allowance R 272 875 R 389 568
Travel allowance R 3 283 364 R 5 012 161
Housing benefit and allowances R 3 198 850 R 3 248 782
Industrial Council Levy R 80 181 R 31 111
Pension fund contributions by Council 9 224 588 R 12 011 405
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REMUNERATION OF COUNCILLORS 2015/16 2016/17
Mayor 782 480 671 050
Speaker 630 878 563 320
Council Salaries 7 813 276 7 976 254
Contribution to medical aid, Pension funds and UIF 3 644 927 1 367 057
Councillor allowances 977 784 873 865
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CHAPTER 5: FINANCIAL PERFORMANCE
5.1 INTRODUCTION
This chapter contains information regarding financial performance and highlights specific accomplishments. The
chapter comprises of three components:
• Component A: Statement of Financial Performance
• Component B: Spending Against Capital Budget
• Component C: Other Financial Matters
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RECONCILIATION OF TABLE A1 BUDGET SUMARY- STATEMENT OF FINANCIAL PERFORMANCE
Description Year 2016/17 Year -2015/16
R thousands
Original Budget
Budget Adjustments (i.t.o. s28 and s31 of the MFMA)
Final adjustments budget
Shifting of funds (i.t.o. s31 of the MFMA)
Virement (i.t.o. Council approved policy)
Final Budget
Actual Outcome
Unauthorised expenditure
Variance Actual Outcome as % of Final Budget
Actual Outcome as % of Original Budget
Reported unauthorised expenditure
Expenditure authorised in terms of section 32 of MFMA
Balance to be recovered
Restated Audited Outcome
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Financial Performance
Property rates 17 600 (1 718) 15 882 15 882 14 013 0 88 80 15 841
Service charges 44 408 4 647 49 055 49 055 41 991 0 86 95 42 272
Investment revenue 8 000 300 8 300 8 300 7 294 0 88 91 9 422 Transfers
recognised - operational 125 374 988 126 362 126 362 123 692 0 98 99 131 522
Other own revenue 49 272 2 321 51 592 51 592 661 -77 1 1 7 851
Total Revenue (excluding capital transfers and contributions)
244 654 6 538 251 191 – –
251 191 187 652
206 907
Employee costs 95 316 8 436 103 752 103 752 113 675 0 110 119 – 75 493
Remuneration of councillors 13 605 (1 158) 12 447 12 447 11 563 0 93 85
– 13 849
Debt impairment 5 000 – 5 000 5 000 – #DIV/0! 0 0 –
–
Depreciation & asset impairment 30 000 – 30 000 30 000 26 306 0 88 88
– 32 720
Finance charges 15 000 (10 000) 5 000 5 000 1 774 -2 35 12 – 16 370
Materials and bulk purchases 25 000 3 000 28 000 28 000 26 165 0 93 105
– 24 313
Transfers and grants – – –
– – #DIV/0! #DIV/0! #DIV/0!
–
–
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Other expenditure 48 242 2 595 50 838 50 838 68 150 0 134 141 – 76 272
Total Expenditure 232 164 2 873 235 037 – – 235 037 247 631
– 239 017
Surplus/(Deficit) 12 490 3 664 16 154 16 154 (59 980) Transfers
recognised - capital 28 640 (7 000) 21 640 21 640 21 640 - 100
76 34 611
Contributions recognised - capital & contributed assets –
–
Surplus/(Deficit) after capital transfers & contributions
41 130 (3 336) 37 794 – –
37 794 (38 340) - - 100
76
–
– –
34 611
Share of surplus/ (deficit) of associate –
–
Surplus/(Deficit) for the year
Capital expenditure & funds sources
Capital expenditure Transfers
recognised - capital 28 640 (7 000) 21 640 21 640 21 640 0 100 76 34 611 Public contributions
& donations – – – – 0 0 0
Borrowing – – – – 0 0 0
Internally generated funds 12 490 3 664 16 154 16 154 13 303 0 82 107 19 208 Total sources of capital funds 41 130 (3 336) 37 794
– 37 794 34 942 – 0 182 182
– –
– 53 819
Cash flows Net cash from
(used) operating 41 130 (3 451) 37 794 37 794
(2 866) 14 -8 -7
44 430
Net cash from (used) investing
(41 130) 3 336
(37 794)
(37 794)
(34 942) 0 92 85
(36 025)
Net cash from (used) financing – – –
– – #DIV/0! #DIV/0! #DIV/0!
(31 608)
Cash/cash equivalents at the year end 147 381 (115) 147 266
147 266
(37 809) 5 -26 -26
129 029
T 5.1.1
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Notes 3 = sum of colum 1 and 2 2 represents movements in original budget to get to final adjustmenst budget (including shifting of funds) Virements must offset each other so that virements in Total Expenditure equals zero 6 = sum of column 3, 4 and 5 8 does not necessarily equal the difference between 9 and 8 because overspending is not the only reason for unauthroised expenditure
9 = 7 - 6
10 = (7/6)*100
11 = (9/1)*100
14 = 13 - 12 15 in revenue equals Audited Outcome plus funds actually recovered 15 in expenditure equals Audited Outcome less funds actually recovered 15 in Cash Flow equals Audited Outcome plus funds recovered
This schedule must be part of the financial statements of the municipality (all other schedules, A2 - A7, should form part of the annexures to the financial statements. These schedules do not directly form part of the audit opinion)
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Financial Performance of Operational Services
R '000
Description
Year -2015/16 Year 2016/17 Year 2016/17Variance
Actual Original Budget Adjustments Budget Actual Original Budget Adjustments Budget
Operating Cost
Water – – – –
Waste Water (Sanitation) – – – –
Electricity 7 226 8 852 10 771 4 423 -100.15% -143.54%
Waste Management 475 1 503 1 944 (101) 1592.56% 2030.11%
Housing (2 638) (2 158) (2 502) (2 595) 16.86% 3.58%
Component A: sub-total 5 064 8 197 10 212 1 727
-374.77% -491.49%
Waste Water (Stormwater Drainage) – – – –
Roads (24 034) 8 695 10 450 (57) 15408.23% 18498.07%
Transport – – – –
Component B: sub-total (24 034) 8 695 10 450 (57) 15408.23% 18498.07%
Planning (7 222) (9 390) (10 193) (10 409) 9.79% 2.08%
Local Economic Development – – – –
Component B: sub-total (7 222) (9 390) (10 193) (10 409) 9.79% 2.08%
Planning (Strategic & Regulatory) – – – –
Local Economic Development – – – –
Component C: sub-total – – – –
Community & Social Services (12 125) (9 264) (11 014) (8 115) -14.16% -35.73%
Environmental Protection (621) (657) (748) (748)
12.12% -0.07%
Health – – – –
Security and Safety (1 944) (1 785) (2 605) (2 770)
Sport and Recreation (3 362) (3 402) (3 630) (3 808) 10.67% 4.67%
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Corporate Policy Offices and Other (11 564) (13 221) (14 337) (14 140) 6.50% -1.39%
Component D: sub-total (29 617) (28 329) (32 334) (29 580) 4.23% -9.31%
Total Expenditure (55 810) (20 826) (21 864) (38 319) 45.65% 42.94%
In this table operational income is offset against operational expenditure leaving a net operational expenditure total for each service as shown in the individual net service expenditure tables in chapter 3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.1.2
Grant Performance
R' 000
Description
Year -2015/16 Year 2016/17 Year 2016/17 Variance
Actual Budget Adjustments Budget
Actual Original Budget (%)
Adjustments Budget (%)
Operating Transfers and Grants
National Government: 129 236 122 974 122 974 121 667
Equitable share 124 034 113 780 113 780 113 780 0% 0%
Municipal Systems Improvement – – – – #DIV/0! #DIV/0!
Department of Water Affairs
Levy replacement
Other transfers/grants 4 146 8 132 8 132 6 825 -19% -19%
Other transfers/grants [EPWP] 1 056 1 062 1 062 1 062 0% 0%
Provincial Government: 1 105 1 200 1 200 1 200
Health subsidy
Housing
Ambulance subsidy
Sports and Recreation 1 105 1 200 1 200 1 200 0% 0%
District Municipality: – – – – – –
[insert description]
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Other grant providers: 1 181 1 200 2 188 825
Waste Grant 830 1 200 2 188 825 0% 100%
Economic Survey Grant 350 – – – 0% 100%
Capacity of Municipality – – – –
Staff Training – – – –
Recycling Centre – – – –
Vuna Awards – – – –
Total Operating Transfers and Grants 131 522 125 374 126 362 123 692
Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Full list of provincial and national grants available from published gazettes. T 5.2.1
Grants Received From Sources Other Than Division of Revenue Act (DoRA) Details of Donor Actual Grant
Year -2015/16
Actual Grant Year
2016/17
Year 2016/17 Municipal
Contribution
Date Grant terminates
Date Municipal contribution terminates
Nature and benefit from the grant received, include description of
any contributions in kind
Parastatals
A - "Project 1" - - - N/A N/A N/A
A - "Project 2" - - - N/A N/A N/A
B - "Project 1" - - - N/A N/A N/A
B - "Project 2" - - - N/A N/A N/A
Foreign Governments/Development Aid Agencies
A - "Project 1" - - - N/A N/A N/A
A - "Project 2" - - - N/A N/A N/A
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B - "Project 1" - - - N/A N/A N/A
B - "Project 2" - - - N/A N/A N/A
Private Sector / Organisations
A - "Project 1" - - - N/A N/A N/A
A - "Project 2" - - - N/A N/A N/A
B - "Project 1" - - - N/A N/A N/A
B - "Project 2" - - - N/A N/A N/A
Provide a comprehensive response to this schedule T 5.2.3
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5.2. ASSET MANAGEMENT The Amahlathi Local Municipality believes that an Asset Management Policy is essential to ensure effective and efficient utilization of public monies and accountability thereof
is heavily dependent on accurate recoding and accounting with the compilation of the Asset Register that is GRAP compliant. The policy is deemed necessary in order to
facilitate the effective management, control and maintenance of the assets. The prime objectives of the policy is to ensure that the assets of Amahlathi Municipality are properly
managed and accounted for by:-
Ensuring the accurate recording of asset information
The accurate recording of asset movements
Exercising strict control over all assets
Providing correct and meaningful management information
Affecting adequate insurance of all assets
Maintenance of Council’s Assets
The policy is reviewed and amended by council annually during IDP and Budget process. The last review was done in May 2017.
An asset tracking system using bar-coded discs and scanners is implemented. The system allows for regular audits of all assets to be completed in a shorter time frame and
therefore allowing for more regular updates of the register.
TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED YEAR 2015/16
Asset 1
Name Cenyu to Kalimashe Roads
Description Construction of Cenyu to Kalimashe
Asset Type Roads Infrastructure
Key Staff Involved 2
Staff Responsibilities Monitoring, Managing & Reporting on the implementation of the Project
Asset Value Year -18/19 Year -17/18
Year -16/17 Year 15/16
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5 893 800.00
Capital Implications 5 893 800.00
Future Purpose of Asset To provide the community with at least a basic level of service
Describe Key Issues
Policies in Place to Manage Asset Asset Management Policy, Roads Maintenance Policy
Asset 2
Name Isidenge Internal Roads
Description Construction of Isidenge Internal Roads
Asset Type Roads Infrastructure
Key Staff Involved 2
Staff Responsibilities Monitoring, Managing & Reporting on the implementation of the Project
Asset Value
Year -18/19 Year -17/18
Year -16/17 Year 15/16
4 550 000.00
Capital Implications 4 550 000.00
Future Purpose of Asset To provide the community with at least a basic level of service
Describe Key Issues
Policies in Place to Manage Asset Asset Management Policy, Roads Maintenance Policy
Asset 3
Name Kubusi Internal Roads
Description Construction of Kubusi Internal Roads
Asset Type Roads Infrastructure
Key Staff Involved 2
Staff Responsibilities Operation and maintenance of the machinery
Asset Value
Year -18/19 Year -17/18
Year -16/17 Year 15/16
4 000 000.00
Capital Implications 4 000 000.00
Future Purpose of Asset To provide the community with at least a basic level of service
Describe Key Issues
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Policies in Place to Manage Asset Asset Management Policy, Roads Maintenance Policy
T 5.3.2
Repair and Maintenance Expenditure: Year 2016/17
R' 000
Original Budget
Adjustment Budget
Actual Budget
variance
Repairs and Maintenance Expenditure
7 587
7 566
6 754 11%
T 5.3.4
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COMPONENT B: SPENDING AGAINST CAPITAL BUDGET
Capital Expenditure - Funding Sources: Year -2015/16 to Year 2016/17
R' 000
Details
Year -2015/16 Year 2016/17
Actual Original Budget (OB)
Adjustment Budget
Actual Adjustment to OB Variance (%)
Actual to OB Variance (%)
Source of finance
External loans
Public contributions and donations
Grants and subsidies 34 611 28 640 21 640 21 640 -24% -24%
Other 19 208 12 490 16 154 13 876 29% 11%
Total 53 819 41 130 37 794 35 516 5% -13%
Percentage of finance
External loans 0.0% 0.0% 0.0% 0.0% 0% 0%
Public contributions and donations 0.0% 0.0% 0.0% 0.0% 0% 0%
Grants and subsidies 180.2% 229.3% 134.0% 156.0% -83% -220%
Other 100.0% 100.0% 100.0% 100.0% 100% 100%
Capital expenditure
Water and sanitation
Electricity 5 228 8 500 6 350 4 800 -25% -44%
Housing – – – –
Roads and storm water 42 932 18 520 20 620 18 777 11% 1%
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Other 5 659 14 110 10 824 11 938 -23% -15%
Total 53 819 41 130 37 794 35 516 -37% -58%
Percentage of expenditure
Water and sanitation 0.0% 0.0% 0.0% 0.0% 0% 0%
Electricity 92.4% 60.2% 58.7% 40.2% 109% 283%
Housing 0.0% 0.0% 0.0% 0.0% 0% 0%
Roads and storm water 758.6% 131.3% 190.5% 157.3% -49% -9%
Other 100.0% 100.0% 100.0% 100.0% 100% 100%
T 5.6.1
Municipal Infrastructure Grant (MIG)* Expenditure Year 2016/17 on Service backlogs
R' 000
Details
Budget Adjustments Budget
Actual Variance Major conditions applied by donor (continue below if
necessary) Budget Adjust-ments
Budget
Infrastructure - Road transport 18 520 20 620 18 777 0% 0%
Roads, Pavements & Bridges 18 520 20 620 18 777 0% 0%
Storm water – –
Infrastructure - Electricity 2 000 250 2 432 0% 0%
Generation – – –
Transmission & Reticulation – – –
Street Lighting 2 000 250 2 432 0% 0%
Infrastructure - Water – – –
Dams & Reservoirs
Water purification
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Reticulation
Infrastructure - Sanitation – – –
Reticulation
Sewerage purification
Infrastructure - Other – – –
Waste Management
Transportation
Gas
Other Specify: 8 120 770 912 -77% %
Sportsfields 4 522 152 693 0% %
Fire, Safety & Emergency 3 598 498 219 0% 0%
Hawker Stalls – 120 – 0% 0%
Other – – – 0% 0%
Total 28 640 21 640 22 121 0% 0%
* MIG is a government grant program designed to fund a reduction in service backlogs, mainly: Water; Sanitation; Roads; Electricity. Expenditure on new, upgraded and renewed infrastructure is set out at Appendix M; note also the calculation of the variation. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.8.3
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COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS
Cash Flow Outcomes
R'000
#NAME?
Year -2015/16 Current: Year 2016/17
Audited Outcome
Original Budget
Adjusted Budget
Actual
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepayers and other 51 413 108 481 114 029 103 100
Government - operating 131 522 125 374 126 362 123 692
Government - capital 34 611 28 640 21 640 21 640
Interest 11 597 10 799 10 800 9 595
Dividends –
–
–
–
Payments
Suppliers and employees (184 713) (217 164) (230 152) (249 967)
Finance charges – (15 000) (5 000) (1 774)
Transfers and Grants –
–
–
–
NET CASH FROM/(USED) OPERATING ACTIVITIES 44 430 41 130 37 679 6 285
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE 359
Decrease (Increase) in non-current debtors (351)
Decrease (increase) other non-current receivables
Decrease (increase) in non-current investments 205
Payments
Capital assets (36 237) (41 130) (37 794) (34 942)
NET CASH FROM/(USED) INVESTING ACTIVITIES (36 025) (41 130) (37 794) (34 942)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrowing long term/refinancing
Increase (decrease) in consumer deposits
Payments
Repayment of borrowing (31 608) –
– (5 460)
NET CASH FROM/(USED) FINANCING ACTIVITIES (31 608) –
– (5 460)
NET INCREASE/ (DECREASE) IN CASH HELD (23 203) –
(115) (34 117)
Cash/cash equivalents at the year begin: 129 028 147 381 147 381 105 825
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Cash/cash equivalents at the year end: 105 825 147 381 147 266 71 708
Source: MBRR A7 T 5.9.1
Actual Borrowings: Year -2014/15 to Year 2016/17
R' 000
Instrument Year 2014/15 Year 2015/16 Year 2016/17
Municipality
Long-Term Loans (annuity/reducing balance)
Long-Term Loans (non-annuity)
Local registered stock
Instalment Credit - - -
Financial Leases - - -
PPP liabilities
Finance Granted By Cap Equipment Supplier
Marketable Bonds
Non-Marketable Bonds
Bankers Acceptances
Financial derivatives
Other Securities
Municipality Total - - -
Municipal Entities
Long-Term Loans (annuity/reducing balance)
Long-Term Loans (non-annuity)
Local registered stock
Instalment Credit
Financial Leases
PPP liabilities
Finance Granted By Cap Equipment Supplier
Marketable Bonds
Non-Marketable Bonds
Bankers Acceptances
Financial derivatives
Other Securities
Entities Total - - -
T 5.10.2
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Municipal and Entity Investments
R' 000
Investment* type Year 2014/15 Year 2015/16 Year 2016/17
Actual Actual Actual
Municipality
Securities - National Government
Listed Corporate Bonds
Deposits - Bank 465 8 907 26 453
Deposits - Public Investment Commissioners
Deposits - Corporation for Public Deposits
Bankers Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endowment Policies (sinking)
Repurchase Agreements - Banks
Municipal Bonds
Other
Municipality sub-total 465 8 907 26 453
Municipal Entities
Securities - National Government
Listed Corporate Bonds
Deposits - Bank
Deposits - Public Investment Commissioners
Deposits - Corporation for Public Deposits
Bankers Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endowment Policies (sinking)
Repurchase Agreements - Banks
Other
Entities sub-total -
- -
Consolidated total: 465 8 907 26 453
T 5.10.4
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5.3 SUPPLY CHAIN MANAGEMENT
Section 3(1) (b) and (c) of the SCM regulations states that the accounting officer of a municipality must at least
annually review the implementation of SCM policy and when necessary submit proposal for the amendments of
the policy to council. The SCM policy was initially developed in 2005 and implemented to give effect to the SCM
regulations and it was last reviewed in May 2017. Amahlathi has established an SCM unit which comprises of
four officials. The code of conduct, oath of secrecy and declaration forms are signed by all officials involved in
supply chain management. The SCM manager has reached prescribed levels as required by the Minimum
Competency Regulations Guidelines and the other three officials are still in process. In line with Municipal Finance
Management Act (MFMA), the accounting officer has also established various bid committees that are consistent
with the SCM regulations and any applicable legislation for competitive bidding i.e.
• Bid Specification Committee
• Bid Evaluation Committee
• Bid Adjudication Committee
5.4 GRAP COMPLIANCE
The municipality is required by legislation to report on its financial affairs using GRAP Reporting Framework. The
Annual Financial Statements and Fixed Asset Register have been prepared and submitted using applicable
GRAP standards. Standards which were not effective were also complied and early adopted in an effort to
ensure continued compliance with the reporting framework. The municipality also became aware that it had to
comply with the requirements of GRAP 27 (Biological Assets) due to the identification of plantations under its
control. The Asset Register and the Annual Financial Statements have been updated through restatements.
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CHAPTER 6: AUDITOR GENERAL FINDINGS
6.1 Introduction
The accounting officer of the municipality is responsible for the preparation of the annual financial statements in
accordance with the South African Standards of Generally Recognised Accounting Practise (GRAP) and the
requirements of the Municipal Finance Management Act No. 56 of 2003 (MFMA) and for internal controls that the
management determines necessary to enable the annual financial statement to be prepared free from material
misstatement whether due to fraud or error.
The Constitution S188 (1) (b) and section 4 of the Public Audit Act of South Africa No. 25 of 2004 states that the
functions of the Auditor General includes the auditing and reporting on the accounts, financial statements and
financial management of all municipalities. MSA S45 requires that the results of performance measurement be
audited annually by the Auditor General.
6.2 AUDITOR GENERAL OPINION 2015/16
The Municipality received an unqualified audit opinion in 2015/2016 audit and the following issues were raised;
• Unauthorised expenditure of R23.5 million incurred
• Irregular expenditure R36.5 million incurred
• Material losses of R2.8 million incurred
• Restatement of corresponding figures
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2016/17 AUDIT ACTION PLAN
UNIT NAME
CATEGORY FINDING
Numbers of times
reported in
previous 3
years
SOURCE
RATINGS
MANAGEMENT
RESPONSE
AG RECOMMEN
DATION
AUDITORS CONCLUSI
ON/ RESPONSE
PROGRESS RECORDED
TO DATE
PROGRESS 2
ANNUAL PROGRES
S
RESPONSIBLE
PERSON(S)
SCM Irregular Expenditure
1. Irregular, Unauthorised and Fruitless and wasteful: Section 32 reports not submitted (Ex.16) - COAF 15 Through enquiry with the CFO it was identified that management did not submit any report relating to unauthorised, irregular or fruitless and wasteful expenditure incurred by the municipality to the mayor, the MEC for local government and the Auditor general. Internal Control Deficiency
3 MR, page 47
Annexure A
Management notes the finding; the reports are submitted to the Mayor and Council through the standing committee.
Management should inform the MEC for local government in the province and the Auditor-General, in writing, of any unauthorised, irregular or fruitless and wasteful expenditure incurred by the municipality as required by section 32 of the MFMA.
Management response noted. This will be reported in the management report as non-compliance.
All reports will be submitted to the MEC and AG by 30 June 2017
All reports have been submitted to AG on the 08 August 2017. This finding has been addressed.
Municipal Manager
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Leadership Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.
SCM Unauthorised , Fruitless and Wasteful Expenditure
2. Consequence Management: Compliance - No investigations performed on all instances of UFW (Ex 76) - COAF 19 It was noted that the municipality has not investigated all instances of unauthorized and fruitless and wasteful expenditure to determine if any person is liable for the expenditure for 2015/16 financial year. Internal Control Deficiency Leadership Exercise oversight responsibility regarding financial and performance
3 MR, page 48
Annexure A
Management has noted the recommendations of the auditor.
Management should investigate and take action to recover any Unauthorised and Fruitless & wasteful expenditure incurred.
Management have noted the finding and the matter will be reported in the audit report.
A committee has been established by the municipality and the next meeting will sit on the 29th June 2017, to look at all expenditure reports
A Committee has been established and terms of reference have been developed. The next meeting will sit by 31 August 2017 to look at all expenditure reports.
Municipal Manager
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reporting and compliance and related internal controls
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SCM Procurement and Contract Management
3. Procurement and Contract Management: False declarations made by suppliers not followed up (Ex 50) COAF 12 During an audit of CAATS data for Suppliers in which persons in service of other state institutions have an interest, we noted that there are suppliers who have either spouses/relatives/partners who are in service of the state, but failed to declare these interest and the municipality did business with these suppliers without any sort of follow-up to confirm the correctness of these declarations. Management's has agreed to adjust the financial statements therefore these will be assessed when adjustment has been made. Inspected the Adjusted Financial statements note no.37 Related parties and confirmed that the
3 MR, page 49
Annexure A
Management has noted the recommendations of the Auditor however the municipality is using Central Supplier Database as from 01 July 2016 which will be able to detect state employees as advised by Treasury.
Management should establish alternative ways of detecting false declarations by suppliers besides relying on occasional involvement of Treasury as this still gives them discrepancies, a way that will allow the municipality to do verification of declaration when suppliers apply to be on the municipality database.
Management comment is acknowledged. After assessment of additional corroborating evidence it was noted that interest identified for the following employees was not valid. The following issues will therefore be removed as finding and be marked as resolved.
A register is developed for the identified suppliers who have found not to declare their interest
This finding has been addressed.
Mr. N. Nokwe
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following have been disclosed and therefore the part relating to non-disclosure is resolved The following will be reported in the management report as non-compliance issues where awards were made to Close family members of officials and/or councillors that have an interest. No. Supplier name Employee name State institution where employed Amount 9 L. M. Velebesi Trading Velebesi Zenzile Amahlathi municipality 46 500.00 17 Zizamele Thahla general Trading Mqoqi Nokuzola Amahlathi municipality 11 500.00 18 Sabamdela Trading Dilika Faniswa Amahlathi municipality 42 300.00 100 300.00
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Internal Control Deficiency Financial and Performance Management Review and monitor compliance with applicable laws and regulations
SCM Procurement and Contract Management
4. Award made to a person in service of state (Ex.51) - COAF 12
3 MR, page 53
Annexure A
Management has noted the
Management should establish
Management's comment is noted and
A register is developed for the
Mr. N. Nokwe
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The audit included the identification of awards made to persons or to entities owned/ managed by officials who are in service of any other state institution. The findings were as follows: Finding Number of awards made Number of officials Number of provider Total Amount Awards to officials of other state institutions 8 8 8 1 382 760.99 Leadership: Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes, and responsibilities
recommendations of the Auditor however the municipality is using Central Supplier Database as from 01 July 2016 which will be able to detect state employees as advised by Treasury. Fort Hare Trading Solution is 100% owned by the University of Fort Hare and should not be included in the finding. Also BCX was addressed and should not be included in the audit
alternative ways of detecting false declarations by suppliers besides relying on occasional involvement of Treasury as this still gives them discrepancies, a way that will allow the municipality to do verification of declaration when suppliers apply to be on the municipality database. Management should also take action when the auditors have identified findings in prior audits.
therefore Fort Hare trading solutions (Pty), Business connexions and Total client services will be removed from the list of suppliers in service of state . The following proof have been received and inspected: 1. Resignation of the board member: Alex Boama Darko for Business connexion group limited 2. Proof that Dr Vuyo Tom and Dr Sibongile Muthwa do not receive
identified suppliers who have found not to declare their interest
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finding. See attached documentation.
remuneration from Fort Hare trading solutions (Pty) Ltd and therefore do not have interest The following awards will be reported in the management report. No Supplier name Employee name State institution where employed 1 CEMENTILE PRODUCTS SHAWN KEITH WITEFIELD Amatola Water Board 119 604.24 2
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BUBUNCWANE TRADING BAXOLISE THABILE BRIANT MHLAKOTSHANA Amatole District Municipalit 3 PERFECT TIMES TRADING SINDISWA VUTU EC: SOCIAL DEV&SPECIAL PROGRAMMS 4 BADZ TOWING AND REMOVALS BANDILE MACINGWANE Great Kei Local Municipality
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SCM Procurement and Contract Management
5. Interest not declared by the employees (Ex 57) COAF 12 Some employees and councillors who were found to have partners/associates/close family members who obtained awards from the municipality through procurement processes did not disclose the interest in their declaration of interest. Leadership: Provide effective leadership based on a culture of honesty, ethical business practices and good governance, protecting and enhancing the best interests of the entity.
3 MR, page 56
Annexure A
Management notes the audit finding and the AFS will be adjusted.
Management must implement prior year recommendation on interests not declared by the employees, as 2 of the employees noted above were also noted on the prior year exception.
Management's response is noted however this is non-compliance, therefore the finding still stands.
A memo/circular to Cllrs and Officials requesting them to declare interest
This finding has been addressed.
Mr. N. Nokwe /Ms. N. Tom
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SCM Procurement and Contract Management
6. Contracts not evaluated on a monthly basis (Ex 59) COAF 15 1. During testing of contract management it was noted that there is no documentation in the project files to confirm that monthly performance evaluations of the following projects were conducted during the year. No. Tender number Project description Provider 1. SCM/22/2015 Professional services to manage in-house design MBSA consultants 2. SCM/35/2014 Installation, testing and commissioning of high mast lighting in Ngcamngeni. Siyavuya power projects 3. SCM/37/2015 Heckel stormwater Mpinga Engineers 4. SCM/45/2015 Construction of Cenyu to Khalimashe access road Faku Mphumzi Civils 5. SCM/35/2015
3 MR, page 59
Annexure A
Management disagrees with the finding
Management should ensure the following: 1) All the construction projects are monitored monthly and this should be documented to ensure that follow-ups are conducted timeously if applicable. 2) The project files contain all necessary documentation relating to the progress of the project and any modifications made should be documented. 3) Proper uniform record keeping of the construction project files which must be regularly
Management response noted, however the performance reports of soe projects has not been received and will be reported. Through inspection of the performance evaluation submitted it was noted that performance evaluation for the following projects was not done monthly, therefore the finding is partially resolved and the following items will be reported.
All projects will be monitored by 30 June 2017 as per the Template that has been developed
This finding has been addressed.
Mr. N. Nokwe/ Mr. S. Yoko
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Implementation of performance management system. Morah Incorporated 6. SCM/44/2012 Provisioning of Cash in transit Protea Coin security 7. SCM/106/2014 Cathcart transfer station GS Civils 8. SCM/34/2014 Installation, testing and commissioning of high mast lighting in Ngcamngeni. Siyavuya power projects 9. SCM/19/2015 Internal audit services for PPE. Delloitte & Touche Leadership: Develop and monitor the implementation of action plans to address internal control deficiencies
updated with the changes happening in the project.
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SCM Procurement and Contract Management
7. Insufficient submission of information (Ex 75) - COAF 18 The following information was requested as detailed below and it was not submitted for audit. Furthermore after discussion and formally communicating what is outstanding with management, the information still has not been submitted and reasons for submission were not provided. Details as per Annexure No. Tender number Information not submitted 1 SCM/35/2014 Performance evaluation report 2 SCM/37/2015 Performance evaluation report 3 N/A Isidenge internal roads In-house Performance evaluation report 4 SCM/34/2014 Performance evaluation
3 MR, page 61
Annexure A
The finding is noted. The performance evaluation reports will be prepared, filed and submitted to the auditor when requested.
Management should ensure that information that is requested by the Auditor General, South Africa is made available within the agreed time frames per the request for information.
Subsequent to Communication of audit findings information related to Mpinga engineers was received and therefore Mpinga engineers will be removed. Management response acknowledged. This will be reported as non-compliance.
All projects will be monitored by 30 June 2017 as per the Template that has been developed
This finding has been addressed.
Mr. N. Nokwe/ Mr. S. Yoko
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report 5 SCM/22/2015 Performance evaluation report 6 SCM/45/2015 Performance evaluation report Financial and performance management: Implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting
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IDP/ Strategic
KPI 8. AOPO: The KPIs set by the municipality does not include indicators on the percentage of households with access to basic level of solid (Ex 15) – COAF 03 The municipality did not set KPIs that include a percentage of households with access to basic level of solid waste removal. The municipality does not comply with the requirements of legislation and regulations. Leadership Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.
3 MR, page 63
Annexure A
Management notes the finding the indicator on percentage households with access to waste removal will be included in the next SDBIP.
Municipality must include indicators on percentage of households with access to basic level of solid waste removal as required by section 43(2) of the MSA and the Municipal planning and performance management regulation 10(a).
Management agrees with finding as the result the finding remains.
Addressed in 2017/18
This finding has been addressed.
Ms T. Bacela
FINANCE
Trade Receivables
9. Trade receivables: Long outstanding debts are not handed over (Ex. 42) - COAF 11 During the audit we noted that the municipality did not
3 MR, page 64
Annexure A
Management notes find.
Management are to apply the credit policy in place to all debtors and strengthen
Management response noted and the finding stands
Addressed This finding has been addressed.
Mr. N. Nokwe
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take reasonable steps to ensure that the long outstanding debtors have not been handed over to the lawyers for debt collection and it was also noted that is no legal recourse taken for long outstanding debtors as the entity has no legal consultants available to them. This has resulted in an impairment loss and more debtors being irrecoverable as not all debtors are followed up on by implementing the policy in place. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls
internal controls over the collectability of debtors and they should ensure that the outstanding debtors are handed over for collection.
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Human Resources
Overtime 10. HR management: No prior approval for overtime worked (Ex 21) - COAF 09 During audit of overtime worked it was noted that some of the overtime worked did not have any prior authorisation as required by the overtime policy. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls
3 MR, page 66
Annexure B
Agree with the finding
Management should ensure that all overtime worked is approved prior to the day of the work being done. A copy of the agreement for overtime should be kept and attached to all the overtime claims for each employee who worked overtime.
Management agrees with the finding. The finding therefore remains and will be reported as non-compliance in the management report.
Addressed, Internal Audit will make a follow up
This finding has been addressed.
Ms. N. Tom
Human Resources
Overtime 11. HR management: Hours worked for overtime exceeded the limit by policy (Ex 22) - COAF 09 Some employees worked overtime that exceeds the limit of 3 hours per day and 10 hours per week, without any prior approval of these excess hours as per the policy.
3 MR, page 68
Annexure B
Management notes the finding. The attached memo to all HOD’s demonstrates Corporate Services commitment to monitor and control overtime.
Management should ensure that only limited hours of overtime are worked by the employees and that on instances where more hours need to be put in, prior approval is obtained for
Management agrees with the finding. The finding therefore remains and will be reported as non-compliance in the management report.
From the 1st July 2017 all employees will not be paid if they exceed the threshold
This finding has been addressed.
Ms. N. Tom
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Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls
the employees.
Human Resources
Overtime 12. Employee Costs: Differences on amounts paid for overtime worked (Ex 23) - COAF 09 During the audit of overtime worked, differences on the amounts paid for overtime and the amount recalculated based on the worksheet and employees rate were noted Financial and Performance Management: Implement controls over daily and monthly processing and reconciling of transactions
3 MR, page 70
Annexure B
Management does not agree with the finding as the formula used assumes 22 hours
Management should review transactions to ensure that the overtime worked is accurately calculated and paid for.
Management's comment is noted, however when using 22 hours more differences were noted and therefore the finding stands.
The finding was never agreed upon even though The system is present and checked on a continuous basis
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Human Resources
Leave 13. Employee cost: Non-Compliance - Employees took leave less than 16 days (Ex 30) - COAF 08 During the audit it was noted that the following employees took leave days that are less than 16 days Financial and Performance Management: Review and monitor compliance with applicable laws and regulations
3 MR, page 71
Annexure B
Management notes the finding. Letters were written to the HOD’s and affected employees informing them to take leave or forfeit leave days; copies are attached.
Management should ensure that employees at least take the minimum leave days in a leave cycle as required by the SALBC Main Collective Agreement.
Management response noted, finding stands
Letters were sent to all officials who are affected and they have since taken leave
This finding has been addressed
Ms. N. Tom
Human Resources
Recruitment 14. Employee costs: Internal control - post not advertised and no interviews took place (Ex 83) - COAF 22 During employee costs testing it was noted that the following position was not advertised and the respective employee was not interviewed for the position: Position Employee name Salary paid
1 MR, page 73
Annexure B
Management notes the finding; the employee was previously working as a casual worker and later absorbed permanently. Proper consultation with labour was followed and agreed
Management should follow proper procedures when filling a vacancy by advertising the position and appoint a suitable candidate through interviews.
Management response is noted however finding will be reported as other matters.
There are plans to rectify and addressed the Finding going forward
This finding has been addressed
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Cleaner V.T. Sigingqi 6 117 Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls
to absorb the employee.
IT SLA 15. IT: Service level agreements not monitored and insufficient IT staff (Ex 74) - COAF 17 There was no evidence submitted to ensure that services delivered by the service providers were monitored against the services agreed in the service level agreement (SLA) to ensure optimal service delivery. The lack of monitoring of the services rendered to the entity by external service providers might result in sub-standard services being provided to the entity.
3 MR, page 74
Annexure B
The finding is noted, however the institution has established an IT Steering Committee where all IT related SLA’s will be reported and monitored.
Service performance reviews should regularly be conducted for all external service providers and timeous corrective action should be taken to remedy any deficiencies identified. Management is encouraged to implement a service level management process to ensure that
Management comment has been noted however the finding still stands
All contracts are monitored at contract management and Project steering committee meetings are sitting
This finding has been addressed.
Ms. T. Bacela
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There are insufficient IT staff as there are only two permanent staff. Leadership - Policies and procedures The responsibility for the monitoring of services provided was not delegated to a specific individual due to the lack of capacity and expertise to perform IT-related functions
the levels of service rendered by external service providers are continually identified, monitored and reviewed against those specified in the SLAs.
HR Policies 16. Internal control deficiencies: Policies and procedures not regularly reviewed and approved (Ex 4) - COAF 02 Per inspection of the Municipality’s policies and procedures together with the minutes to Council meetings, it was identified that: 1. The following Municipal policies had not been reviewed for the current financial year: Title
3 MR, page 75
Annexure B
No management comment.
Management must ensure that policies are reviewed and updated regularly to ensure that the municipality has and maintains and effective control system.
No management comment received however during interactions management agreed that the following policies have financial impact and should be updated regularly. These following items will still remain and
Addressed This finding has been addressed.
Ms. N. Tom
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Date approved Code of conduct for Staff Members/Councillors 18 December 2013 Induction Training and Staff Orientation 24 June 2004 Employment Equity 24 June 2004 Amahlathi Finance Procedure Manual July 2013 Legal Aid Policy for Councillors and Employees 24 June 2004
the following will be reported in the management report as lack of internal control.
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HR Policies Furthermore it was noted that the following policies had not yet been approved: Title 1. Succession Planning and Career Pathing 2. Performance Management System for Staff Members 3. Training and development policy 4. Staff Productivity and outstanding Performance Award System 5. Community Participation Policy 6. Amahlathi Finance Procedure Manual Leadership Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities
3 MR, page 75
Annexure B
No management comment.
Management must ensure that policies are reviewed and updated regularly to ensure that the municipality has and maintains and effective control system.
No management comment received however during interactions management agreed that the following policies have financial impact and should be updated regularly. These following items will still remain and the following will be reported in the management report as lack of internal control.
Addressed This finding has been addressed.
Ms. N. Tom
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Finance
Expenditure 17. Invoices not signed (Ex 69) - COAF 16 During the audit of Irregular expenditure it was noted that some invoices paid during the year were not signed by the municipal officials to acknowledge receipt of goods and services. Financial and Performance Management Implement controls over daily and monthly processing and reconciling of transactions.
3 MR, page 78
Annexure B
Management has noted the finding.
Management should validate invoices by signing them before they are paid to ensure that payments are made only for invoices which goods and services have been received by the municipality.
Management response is acknowledged and this finding will be reported accordingly.
Addressed This finding has been addressed.
Mr. N. Nokwe
Finance
Expenditures 18. Record reviews: Issues identified (Ex. 3) - COAF 01 1. The municipality has not reported any unauthorised irregular, fruitless and wasteful expenditure to the AGSA and COGTA. 2. The annual budget of the municipality has not been reconciled to the strategic objectives of the municipality. 3. The debtors balances
3 MR, page 79
Annexure B
1. The municipality has not reported any unauthorised irregular, fruitless and wasteful expenditure to the AGSA and COGTA. Irregular and fruitless expenditure
1. Management should ensure they fully comply with the requirements of section 32 should an irregularity be identified. 2. The budget should be reconciled to the SDBIP and
1. Auditors response: Management comment is acknowledged however management has not provided evidence to support their comment. This finding will still stand and can only
All reports will be submitted to the MEC and AG by 30 June 2017
This finding has been addressed
Municipal Manager
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per the age analysis are not reconciled to the debtors control account in the general ledger on a monthly basis. Leadership: Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes, and responsibilities
relating to 2014/15 and quarter 1 for 2015/16 has been tabled to council for decision. Unauthorised expenditure is in a process of being tabled to council. The council will then resolve on the tabled expenditures. 2. The annual budget of the municipality has not been reconciled to the strategic objectives of the municipality. The finding is noted and will be
strategic objectives and indicators. 3. A debtor’s reconciliation should be prepared on a monthly basis and reviewed by the CFO.
be resolved when management has provided supporting evidence. 2. Auditors response: Management agrees and has committed into addressing the finding. This finding will be therefore still remain and will only be resolved when the necessary amendments have been made and the annual budget is aligned to the strategic objectives. 3. Auditors response:
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addressed. 3. The debtor’s balances per the age analysis are not reconciled to the debtors control account in the general ledger on a monthly basis. Management disagrees with the finding, debtor’s age analysis is reconciled to general ledger on a monthly basis Refer to comments above.
Management comment is acknowledged however management has not provided evidence to support their comment. This finding will still be open and will be looked at during execution at year end.
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Internal Audit
Audit Charter
19. Internal control deficiencies: Non compliance with Audit Committee Charter (Ex.6) - COAF 02 The following issues were identified: 1. The audit committee charter was not reviewed for the period 2015/16.Note 2. The report submitted to council by the audit committee was not signed Financial and performance management: Review and monitor compliance with applicable laws and regulations.
1 MR, page 81
Annexure B
The finding is noted
Management should ensure that the audit committee procedures are followed.
Management has noted the finding therefore agrees with the finding. This will therefore be reported in the management report.
Will be submitted to the Council in 30th June 2017
Municipal Manager
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SCM Procurement 20. Procurement: Compliance - Inconsistencies with SCM regulations (Ex 11) - COAF 12 The following inconsistencies were identified in the SCM policy: Paragraph 22 of the SCM policy indicates that the minimum procurement method for goods and services with a value between R2 001 to R5 000 is one quote. This is in contradiction with the requirements of the SCM regulations which requires 3 quotes for this threshold to be obtained Leadership: Establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.
2 MR, page 82
Annexure B
The policy has been revised and implemented accordingly.
Management should revise the SCM policy and amend paragraph 22 of the SCM policy on the R2 001 to R5 000 as to be consistent with paragraphs 26 and 27 which comply with the SCM regulations.
Management response is noted, however the finding still stands.
Addressed Mr. N. Nokwe
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SCM Procurement 21. Procurement: points allocated to losing bidders while BEE certificate not certified or original & incorrect points allocated. (Ex 53) – COAF 12 During the testing of SCM the following was identified: Losing bidders were allocated points while their BEE certificates are not original or certified copies: 1 Alomna construction 3 16 2 KNND Constructors 3 16 Incorrect points were allocated to the following losing bidder: 1 Sizwe Ntsaluba SCM/13/20915-16 70.95 58.28 Financial and Performance Management: Implement controls over daily and monthly
2 MR, page 84
Annexure B
Management agrees with the finding and recommendations will be implemented.
Management need to ensure the following that: 1. B-BBEE status level certificates of bidders are original and if not, to ensure that the copies thereof are certified. 2. Allocate points to bidders using the formula provided in preferential procurement regulation 5 & 6.
Management's response is noted, therefore the finding still stands.
Addressed Mr. N. Nokwe
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processing and reconciling of transactions
SCM Procurement 22. Procurement (Above R200 000) Tender not registered on the CIDB website (Ex 58) - COAF 12 The tenders below relating to construction projects could not be verified that the invite to tender was advertised on the CIDB website:
3 MR, page 86
Annexure B
There was a technical problem with the CIDB website settings and bandwidth in general of which now it is resolved and tenders are being
Management should ensure that they: • escalate the challenge with the relevant authority and the management of CIDB and source a resolution to
Management's comment is noted; however the non-compliance stands and management should follow up with treasury and CIDB.
Addressed Mr. N. Nokwe
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No. SCM No. Details Amount 1. SCM/21/2015-16 Upgrading of Lower Kologha Road Surfacing 5 893 800.00 2. SCM/60/2015-16 Construction of Keiskammahoek side walk Paving 3 718 764.36 3. SCM/26/2015 Rehabilitation of Xholorha stormwater 521 262.72 10 133 827.08 Financial and performance management: Review and monitor compliance with applicable laws and regulations.
advertised. The above mentioned project was loaded in the site but it could not be authorized due to the system failure. Proof will be submitted to the auditor for scrutiny.
the problem • keep print screens of the tenders register in order to have evidence of having registered the tender.
SCM Procurement 23. Procurement: Invitation of tenders through e-Tender portal not yet started (Ex 64) - COAF 16 During SCM testing it was noted that Invitation of tenders through e-Tender portal has not yet started
0 MR, page 23
Annexure B
Management notes the finding; the consultation process to amend the policy has started.
Management should update the SCM policy to provide for invitation of competitive bids through the e-Tender portal, apply
Management response is acknowledged however this will be reported as non-compliance.
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per the MFMA requirements. Financial and performance management: Review and monitor compliance with applicable laws and regulations.
for access to the e-Tender portal and start inviting tenders using the portal.
SCM Procurement 24. Procurement (Above R200 000) Tender not registered on the CIDB website (Ex 8) - COAF 02 The tenders below could not be verified with regards to the construction projects: 1. that the invitation to tender was advertised in the CIDB website. 1. SCM/15/2015-16 Eluphondweni community hall renovation 2. SCM/21/2015-16 Upgrading of Lower Kologha Road Surfacing 3. SCM/60/2015-16 Construction of Keiskammahoek side walk Paving 5. SCM/26/2015 Rehabilitation of Xholorha
3 MR, page 24
Annexure B
There was a technical problem with the CIDB website settings and bandwidth in general of which now it is resolved and tenders are being advertised. The above mentioned project was loaded in the site but it could not be authorized due to the system failure. Proof will be submitted to
Management should escalate the challenge with the relevant authority and the management of CIDB and source a resolution to the problem. Management should keep print screens of the tenders register in order to have evidence of having registered the tender.
Management comment and submission acknowledged. After consideration of the submission however it was concluded that information submitted does not give sufficient evidence for non-registering the tender on the CIDB website. This finding
Addressed This finding has been addressed
Mr. N. Nokwe
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stormwater 2. That the project was registered in the register of construction contracts with the CIDB within 21 working days: 1. SCM/15/2015-16 Eluphondweni community hall renovation Financial and performance management: Review and monitor compliance with applicable laws and regulations.
the auditor for scrutiny
will therefore stand and will be recorded in the management report.
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FiNANCE/Engeneering
Material Losses
25. Material losses: Disagreement – Incorrect amount of material losses disclosed (Ex 46) - COAF 15 In terms MFMA circular 71 the acceptable ranges for losses of electricity should be within the financial ratios of: Electricity distribution losses 7% - 10% It was noted that the percentage of electricity distribution losses as reflected on the electricity monthly losses schedule is 17% This percentage is above the acceptable range for electricity losses. The electricity distribution losses percentage above the norm will be reported as an emphasis of matter paragraph on the audit report as material losses disclosed. Financial and performance management:
3 MR, page 91
Annexure B
Management has noted the finding.
Management should monitor the losses on monthly basis and follow up.
Management response noted. This will be reported as an emphasis of matter paragraph on the audit report
Still in a process of addressing electricity losses as a report reflecting areas to address has been developed
Mr. S.Yoko
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Prepare regular, accurate and complete financial and performance reports that are supported and evidenced by reliable information
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LED Economic Development
26. Value add: Support for SMME's (Ex 79) - COAF 19 As per government expectation, government institutions should link the following priority in their strategic planning "Speeding up economic growth & transforming economy to create decent work and sustainable livelihoods" During analyses of municipal support for SMME's it was noted that the municipality has linked the above priority to one of its programs in their strategic documents however it was noted that the implementation of the objective has not taken place during the period under review. The following was deficiencies were noted 1. There is no direct financial support for SMME's. 2. Management has not identified areas on which
0 MR, page 92
Annexure B
Management has noted the finding.
Management should ensure that there are proper controls to compile and record information for SMME's is filled.
Management has noted the finding and this will be reported in the management report.
Flag it until the SDBIP session
Mr. B. Ondala
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areas on which SMME's will be allocated to the municipality's scope of work. This could lead to inability of growth for small companies due to insufficient support by local municipality. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls.
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Roads Road Maintenance
27. Compliance - Infrastructure: Service delivery - Roads maintenance and renewal deficiencies (EX.19) - COAF 15 Per audit work performed on infrastructure road maintenance and renewal, the following deficiencies were identified: 1. The municipality does not have an approved policy in place for the planning, management and reporting of roads infrastructure. 2. The approved RMP/priority list does not provide for renewal and routine maintenance of all roads infrastructure allocated to the municipality. 3. The list of projects on which current year expenditure on re-gravelling of roads was incurred on per vote number 1101421095115 was requested from management, and could
2 MR, page 93
Annexure B
1. Management notes the finding; the road maintenance policy has been developed and is yet to be approved by council. Attached is the copy. 2. Management has noted the finding. 3. Management has noted the finding. 4. The finding is noted; however the municipality did not overspend on the overall MIG allocation. 5. Management does not
1. The municipality should send to council the draft road maintenance policy for council approval. 2. The approved priority list for renewal and routine maintenance of roads infrastructure should include all planned projects. 3. Management should have a list of all projects processed under vote number 1101421095115 so as to monitor expenditure incurred for each planned project.
Management comments noted, Finding is partially resolved and therefore still stands
Road Maintenance policies and plan have been developed and RAMS system is being utilised for our roads
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not be provided as the expenditure incurred was not monitored per project. 4. The municipality overspent their 2015-16 PPE renewal budget by 14% for the projects. 5. 4 renewal projects planned for 2015-16 did not take place during 2015-16. 6. The municipality had repetitive findings since 2014-15 on items 1 - 5 listed above. No progress was made on the remedial actions identified to address the finding because the municipality deems the procedures as impractical for implementation especially for the size of the municipality. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance
agree with the finding; priorities change and adjustment budget allows municipality to adjust if priorities change. The projects were subsequently revised during the adjustment budget period to fund other urgent projects.
4. Management should monitor expenditure on all projects planned for renewal to ensure that they are completed within budget. 5. Management should ensure that all projects planned for renewal are carried out as planned.
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and related internal controls.
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Finance
Expenditure 28. General expenditure: Payment not made with 30 of receipt of the invoice (Ex 33) - COAF 06 During the audit it was noted that the following invoice did not have a stamp with a date of receipt as a result it was not possible to determine if the payment was made within 30 days as per section 62(2)(e) of the MFMA Financial and performance management: Review and monitor compliance with applicable laws and regulations
3 MR, page 96
Annexure B
Management notes the finding; this will be closely monitored going forward
Management should ensure proper monitoring of the payments of creditors, means of receiving the invoices on time (Invoices to be received via email) should be in place. All management should stamp all the invoices when received to make it easier to determine if the invoice was paid in 30 days or not.
Management response noted, finding stands
Addressed Mr. N. Nokwe
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IDP/PMS
Performance Management
29. AOPO: Indicators not well defined (Ex 18) - COAF 03 There is no definition for the indicators listed below as a result we are unable to conclude that the indicators have a clear definition and that the indicators are defined so that data will be collected consistently. Therefore, A total of 8% (<20%) of the indicators were not well defined. Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls.
3 MR, page 97
Annexure B
Management notes the finding; this will be corrected going forward.
Management should follow the MPPI requirements so that: Performance indicators have clear, unambiguous definition so that data will be collected consistently, and be easy to understand and use.
Management comment is noted and management agrees with the finding. This will therefore be reported in the management report.
Addressed Ms. T. Bacela
Finance
Revenue 30. Revenue: Compliance Pre-paid electricity cash not received timeously (Ex 20) - COAF 05 The following receipts relating to prepaid electricity were not received by the municipality by the end of
3 MR, page 99
Annexure B
The finding is noted, Delays are caused by the Post Office as Conlog only makes payment on receipt of
Management should ensure that amounts due to the municipality are collected timeously to ensure that compliance with the Act.
Management comment is noted and management agrees with the finding. This will therefore be reported as non-
Addressed Mr. N. Nokwe
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the month. Item Description Billing Month Revenue Collected by Conlog Date received Receipt Number Prepaid electricity November R 569 193.40 05/01/2016 42355 Prepaid electricity December R 608 873.10 11/02/2016 7072 Prepaid electricity April R 559 035.70 09/06/2016 9345 Financial and Performance Management: Review and monitor compliance with applicable laws and regulations
original invoice. The municipality will make use of a courier to address the matter.
Furthermore revenue due to the municipality from collecting agents should be reconciled at least on a weekly basis and at most on a monthly basis. The municipality should ensure that timeous deposits of the monies due from the collecting agents are included on the terms of reference with the collecting agents.
compliance in the management report.
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PMU PMU 31. Unspent conditional grants -Performance reports not submitted to treasury (Ex 80) - COAF 20 No supporting evidence was provided to indicate that quarterly non-financial performance reports had been submitted to National Treasury at the end of each quarter for MIG Grants. Internal control deficiency Leadership: Exercise oversight responsibility regarding financial and performance reporting and compliance and related internal controls.
1 MR, page 101
Annexure B
Management has noted the finding and this will be addressed going forward.
Management should ensure that applicable regulations to the municipality are complied with.
Management has noted the finding and this will be reported accordingly.
Will be submitted by 30 June 2017
Mr. N. Nokwe
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6.3 AUDIT REPORT OF THE AUDITOR GENERAL 2015/16 FINANCIAL YEAR (Previous Year)
2.
4.
l i
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Additional matters
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East London
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6.4 AUDIT COMMITTEE REPORT
DRAFT REPORT OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 30 JUNE 2017
We are pleased to present our report for the financial year ended 30 June 2017.
1. Purpose
The function of the Audit Committee (hereinafter referred to as the Committee) is primarily to assist the Amahlathi
Municipality (hereinafter referred to as the Council) in discharging its duties relating to the safeguarding of assets,
the operation of adequate systems, control processes and the preparation of financial reports and statements.
2. Legal / Statutory Requirements
The Committee operates in terms of Section 166 of the Municipal Finance Management Act (MFMA), Act No. 56
of 2003 and has endeavoured to comply with its responsibilities arising from those requirements. Other pieces of
legislation that regulates function of the Committee are:-
- Municipal Structures Act
- Municipal Systems Act 32 of 2000
3. BACKGROUND
a. The Audit Committee sits on a quarterly basis to review Internal Audit reports as well as advise the Municipal
Council, the Political office-bearers, the Accounting Officer and the management staff of the municipality on
matters relating to:
internal financial control and internal audits;
risk management;
accounting policies;
the adequacy, reliability and accuracy of financial reporting and information;
performance management;
effective governance;
compliance with this Act, the annual Division of Revenue Act and any other applicable legislation;
performance evaluation; and
any other issues referred to it by the municipality that are within the ambit and scope of the AC
b. Furthermore the Audit Committee has to review the annual financial statements and respond to the Council on
any issues raised by the Auditor-General in the audit report.
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4. Role and Responsibility of the Audit Committee
The function of the Audit Committee (hereinafter referred to as the Committee) is primarily to assist the Amahlathi
Municipality (hereinafter referred to as the Council) in discharging its duties relating to the safeguarding of assets,
the operation of adequate systems, control processes and the preparation of financial reports and statements.
The Committee operates in terms of section 166 of the Municipal Finance Management Act (MFMA), Act No. 56 of
2003 and has endeavoured to comply with its responsibilities arising from those requirements.
The Committee has performed its duties according to its terms of reference in the form of an approved Audit
Committee Charter which stipulates amongst other issues the primary purpose of the Committee, which is:
To monitor the integrity of the Council’s financial statements and announcements relating to its financial
performance, reviewing significant financial reporting judgements.
To review the effectiveness of the Council’s internal controls and risk management systems.
To monitor the effectiveness of the internal audit function and review its material findings.
To oversee the relationship with the internal and external auditors, including agreeing the latter’s audit
fees and terms of engagement, monitoring their independence, objectivity and effectiveness.
All the processes preceding the audited Annual Report presented to the Council are being adhered to.
Namely:
Submission of the Section 71 reports to Treasury;
Submission of the Annual Performance Report;
Submission of the Annual Financial Statements, and
Auditing of the Annual Financial Statement and Annual Performance Report.
The Committee has no executive function and its primary objective is to review, advise and give support rather
than assume responsibility for any matters within its remit.
5. Audit Committee Members and Attendance
The audit committee consists of the members listed hereunder and should meet 4 times per annum as per its
approved terms of reference. In terms of the Audit Committee Charter, the committee should consist of a minimum
of 3 members. Ms Mnqeta was appointed as the Chairperson of the Audit Committee. The audit committee held 4
ordinary meetings and 4 special meetings during the year under review.
Name of Member No of special meeting
attended
No of ordinary meetings
attended
Ms. T. Mnqeta (Chairperson) 3 4
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Ms. T. Maqwati 4 4
Dr. M. Deliwe 4 4
6. Dates of Audit Committee Meetings
The ordinary audit committee meetings are also attended by the Municipal Manager, Section 56 Managers, internal
and external auditors and other relevant stakeholders.
7. The effectiveness of internal controls
The system of internal control was not entirely effective for the period under review, however it must be noted that
there is slight improvement that was identified. The following reports have been reviewed for the year:
Annual Financial Statements;
Annual Performance Report;
Annual Report;
Follow-up on whether recommendations have been implemented for 2016/2017 Internal Audit reports;
Follow-up on whether recommendations have been implemented for the NERSA report;
Review of In-House Projects;
1st, 2nd, 3rd and 4th quarter Performance Reports;
Review Mid-Year Report;
Revenue Management;
Follow-Up on AG report; and
Review of the SDBIP 2017/2018
Ordinary Meetings Special Meetings
11 July 2016 25 August 2016
07 November 2016 28 August 2016
01 March 2017 20th January 2017
01 June 2017 25 May 2017
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8. Challenges
Though it is indicated above that there is an improvement, but there are still challenges that can lead
Municipality not attaining clean audit as required, thereby impacting on performance of Internal Audit as
well as Audit Committee. Namely
8.1 Regression in terms of performance management in some of the departments;
8.2 Delay in appointing of Senior Managers;
8.3 Standardisation and impact it has made in terms of budget and sustainability of Municipality;
8.4 Suspension of Senior employees without Succession planning nor strategic planning of how the
department would function in the absence of the Head of Department;
8.5 37 employees that were suspended without succession planning;
8.6 Resistance by management to take Audit Committee recommendations;
8.7 Slow progress in the finalisation of the disciplinary cases; and
8.8 Role on politicians in Administration.
9. The quality of In-year management and monthly/quarterly reports
The Municipal Manager submitted reports during the year under review with regard to performance management
and it was noted that the quality of the report has improved. It must be noted that the Section 71 and section 72
reports are submitted timeously and required by the legislation.
10. Internal Audit
The Audit Committee is satisfied that the internal audit function is operating effectively and that it has addressed
the risks pertinent to the municipality in its audit. Focus by the audit committee on internal audit is to ensure that
management implement the recommendations from the internal audit reports. However it must be noted that the
recommendations of Internal Audit are not always implemented by management timeously.
11. Auditor General South Africa
There is a sound and professional relationship between the Audit Committee and the Office of the Auditor General
so as to ensure compliance.
SIGNED BY:
________________________________________
Ms. T. Mnqeta
Chairperson of the Audit Committee
30th June 2017
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CHAPTER 7 APPENDICES
APPENDIX A: COUNCILLORS, COMMITTEES ALLOCATED AND COUNCIL ATTENDANCE
Councillors, Committees Allocated and Council Attendance
Council Members Full Time /
Part Time
Committees
Allocated
*Ward and/ or Party
Represented
Percentage
Council
Meetings
Attendance
Percentage
Apologies for
nonattendance
Percentage
Absentism
1. Cllr. P. Qaba Full Time Mayor of the Council PR Councillor 100% 0% 0%
2. Cllr. N. P. Mlahleki Full Time. Speaker of the Council PR Councillor 100% 0% 0%
3. Cllr. X. Mngxaso Full Time Whippery PR Councillor 100% 0% 0%
4. Cllr. N.C. Nongqayi Full Time BTO Portfolio Head PR Councillor 90% 0% 10%
5. Cllr. X. Mngxaso Full Time Development and
Planning Portfolio
Head
PR Councillor 100% 0% 0%
6. Cllr. N. Busika Full Time Corporate Services
Portfolio Head
PR Councillor 90% 10% 0%
7. Cllr. N. Monti Full Time Service Delivery
Portfolio Head
PR Councillor 90% 10% 0%
8. Cllr. T. Balindlela Full Time Community Service
Portfolio Head
PR Councillor 100% 0% 0%
9. Cllr. S. Malawu Full Time MPAC Ward 13 70% 30% 0%
10. Cllr. E. N. Brukwe Part Time Development and
Planning
Ward 5 90% 10% 0%
11. Cllr. R.T. Desi Part Time Budget and Treasury Ward 12 100% 0% 0%
12. Cllr. D. Gxekwa Part Time MPAC Ward 2 80% 20% 0%
13. Cllr. A. Hobo Part Time Community Services PR. Councillor 70% 30% 0%
14. Cllr. N. Jikazayo Part Time MPAC Ward 7 100% 0% 0%
15. Cllr. N. A. Kato-Manyika Part Time Budget and Treasury PR Councillor 70% 20% 10%
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16. Cllr. M. Mjikelo Part Time Community Services Ward 4 100% 0% 0%
17. Cllr. N. Mtati Part Time Corporate Services/
Strategic Services
Ward 15 90 % 10% 0%
18. Cllr. G. D. Mxosa Part Time Service Delivery and
Infrastructure
PR Councillor 60% 30% 10%
19. Cllr. D. Mzili Part Time Development and
Planning
Ward 1 90% 10% 0%
20. Cllr. M. Ngcofe Part Time Service Delivery and
Infrastructure
Ward 3 80% 20% 0%
21. Cllr. N. Ngxakangxaka Part Time Development and
Planning
PR Councillor 100% 0%
0%
22. Cllr. T.C. Ngxingolo Part Time Corporate
Services/Strategic
Services
PR Councillor 80% 20% 0%
23. Cllr. G. P. Noxeke Part Time Community Services Ward 14 90% 10% 0%
24. Cllr. P. Ntwanambi Part Time MPAC PR Councillor 60% 30% 10%
25. Cllr. X. Nqata Part Time Corporate Services/
Strategic Services
Ward 8 100% 0% 0%
26. Cllr. M. Nqini Part Time Development and
Planning
Ward 9 100% 0% 0%
27. Cllr. R. Pickering Part Time Budget and Treasury PR Councillor 90% 10% 0%
28. Cllr. X. Tokwe Part Time Corporate
Services/Strategic
Services
Ward 6 100% 0% 0%
29. Cllr. V.W. Tshaka Part Time Community Services Ward 10 100% 0% 0%
30. Cllr. S.G. Venkile Part Time Service Delivery Ward 11 70% 30% 0%
31. Cllr. N. Pose Part Time Service Delivery/
MPAC
PR Councillor 90% 10% 0%
31. Traditional Leader: Mr. A.T.
Daka
Part Time Service Delivery Traditional Leader 100% 0% 0%
32. Traditional Leader: Ms. N.
Sandile
Part Time Corporate
Services/Strategic
Services
Traditional Leader 100% 0% 0%
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33. Traditional Leader: Mr. K.
Sandile
Part Time Budget and Treasury Traditional Leader 100% 0% 0%
34. Traditional Leader: Mr. Z.
Ngudle
Part Time Development and
Planning
Traditional Leader 100% 0% 0%
35. Traditional Leader: Mr. Mdledle Part Time Community
Services/Strategic
Services
Traditional Leader 100% 0% 0%
36. Traditional Leader: Mrs. N.G.
Mekuto
Part Time MPAC Traditional Leader 100% 0% 0%
Note: * Councillors appointed on a proportional basis do not have wards allocated to them T A
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APPENDIX B: COUNCIL COMMITTEES (Other than Mayoral/ Executive Committee) and Purposes of the Committees
Municipal Committees Purpose of Committee
Budget and Treasury The purpose of the Budget and Treasury Standing Committee as a Section 79 Committee of Council is to:-
Provide Political Leadership by being responsible for Policy outcomes, oversight and holds the Chief Financial Officer accountable for
Performance by regular and consistent reporting to Council through the Committee.
Service Delivery Report on Progress and Challenges on Capital Projects.
Report on work done as per the Maintenance programme of Roads, also alerting the committee of the repairs done on Machinery
That might have caused delays in the Programme.
Challenges in the Department in General.
Amount of Jobs created.
The response time in repairing any complaints from the Community.
Report on Budget Expenditure.
Development and Planning To create a conducive environment for business to invest at Amahlathi area.
To encourage business to create jobs in order to reduce unemployment.
To promote SMME's and co-operatives within Amahlathi.
To promote tourism as a vehicle for Job creation within Amahlathi.
To support emerging farmers that are within Amahlathi and link them with business in order to sell their products.
Strategic Services Empowerment is meant to create a conducive Environment for designated groups to be allowed equal opportunities
To ensure that everyone has free access to government benefits irrespective of any kind of disability.
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Municipal Committees Purpose of Committee
To ensure that Gender is taken care to all workplaces.
To restore Human dignity to previously disadvantage groups
To capacitate and empower the community to all matters of government
To conduct awareness campaigns for designated groups about their rights.
Community Services To provide accessible, affordable, equitable and sustainable service as well as a healthy environment to residents and business operating in the Amahlathi Local Municipality.
To contribute towards a safe and secure environment.
To promote a clean and healthy environment.
To promote a culture of reading and learning.
To ensure that Public Amenities are improved and well managed.
Corporate Services To oversee the proper, efficient and effective operations of Human Resources and Administration Department.
To ensure that Policy Formulation and recommendation from both Sections are in line with vision and mission of the municipality as well as
Compliant with National and Provincial Legislation.
To represent employer component in Provincial Institution Cluster of SALGA, Amathole District Municipality
To champion good working relations between the employer and employee component of the municipality.
To ensure that Departmental goals and Departmental Budget are aligned.
To devise programs for imparting of skills to Stakeholders within the municipal area.
To oversee that proper employment procedures are undertaken without disadvantaging anyone.
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APPENDIX C: FUNCTIONS OF MUNICIPALITY
MUNICIPAL FUNCTIONS Function Applicable to Municipality (Yes / No)*
Constitution Schedule 4, Part B functions:
Air pollution Yes
Building regulations Yes
Child care facilities Yes
Electricity and gas reticulation Yes
Firefighting services Yes
Local tourism Yes
Municipal airports No
Municipal planning Yes
Municipal health services No
Municipal public transport No
Municipal public works only in respect of the needs of municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under this Constitution or any other law
Yes
Pontoons, ferries, jetties, piers and harbours, excluding the regulation of international and national shipping and matters related thereto
No
Storm water management systems in built-up areas Yes
Trading regulations Yes
Water and sanitation services limited to potable water supply systems and domestic waste-water and sewage disposal systems
No
Beaches and amusement facilities Yes
Billboards and the display of advertisements in public places Yes
Cemeteries, funeral parlours and crematoria Yes
Cleansing Yes
Control of public nuisances Yes
Control of undertakings that sell liquor to the public Yes
Facilities for the accommodation, care and burial of animals Yes
Fencing and fences Yes
Licensing of dogs Yes
Licensing and control of undertakings that sell food to the public Yes
Local amenities Yes
Local sport facilities Yes
Markets Yes
Municipal abattoirs Yes
Municipal parks and recreation Yes
Municipal roads Yes
Noise pollution Yes
Pounds Yes
Public places Yes
Refuse removal, refuse dumps and solid waste disposal Yes
Street trading Yes
Street lighting Yes
Traffic and parking Yes
* If municipality: indicate (yes or No); * If entity: Provide name of entity
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APPENDIX D: WARD REPORTING
Ward Name (Number)
Name of Ward Councillor and elected Ward Committees
Committee established (Yes /NO)
Number of Committee meetings held during the year
Number of quarterly reports submitted to the Speaker on time
Number of quarterly public meeting held during year
WARD 1 Cllr D.Mzili 1.Lindela Manyakanya 2.Nokrisimesi Mbande 3.Nozolile Mfuleni 4.Lulama Kwankwa 5.Cynthia Vane 6.Phumla Bobo 7.Nokuthula Madlokazi 8.Thulani Mlarsheni 9.Vuyokazi Bikitsha 10.Masixole Tebe
YES 12 3 4
WARD 2 Cllr D.S.Gxekwa 1.Veliswa Mhluzi 2.Vuyelwa Nkovu 3.Siyabulela Mpayipheli 4.Siseko Cawa 5.Milia Molteno 6.Cebo Madlokazi 7.Kungeka Sixholo 8.Ndodomzi Manyakanyak 9.Mongameli Rode 10.Nomataru Mhlauli
YES 12 2 4
WARD 3 Cllr M.Ngcofe 1.Ntombikayise Mbane 2.Alfred Veto 3.Phiweka Socishe 4.T.Madlokazi 5.Zimasa Mthi 6.Akhona Tweni 7.Mfuyo Jumba 8.Nomathemba Ngoyi 9.Fundiswa Luthuli 10.Makhi Manentsa
YES 12 2 4
WARD 4 Cllr M Mjikelo 1.Nocwaka Nonyongo 2.Portia Mbesi Nancy Cofa 4.Phumelele Malamgeni
YES 12 4 4
WARD 5 Cllr Brukhwe 1.Sakhumzi Lubengu
YES 12 2 4
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2.Ntombizanele Nono 3.Nomakorinte Ngcaku 4.Thobigunya Kolobile 5.Vukaphi Mpumelelo 6.Neliswa Nyathi 7.Vivian Sajini 8.Phindiwe Blom
WARD 6 Cllr Tokhwe 1.Olwethu Booi 2.Nosango Manoni 3.Luyanda Sindi 4.Naomi Webster 5.Nontekelelelo Xiniwe 6.Siphokazi Funani 7.Gudiswa Matomela 8.Nosiphiwo Nogqala 9.Zukile Malima
YES 12 3 4
WARD 7 Cllr Jikazayo 1.Sihlalo Magibizela 2.Phatheka Nojoko 3.Nontuthuzelo Damane 4.Nozukile Felem 5.Nosithile Momeni 6.Nwabisa Mbelwana 7.Nokona Bacela 8.Norah Toyiya 9.Kholiwe Sindaphi
YES 12 0 4
WARD 8 Cllr X.Nqatha 1.Lulama Kama 2.Thembeka Noqholi 3.Lee Fletcher 4.X.Mbiko 5.Mthuthuzeli Mkefu 6.Bulelwa Pinana 7.Busisa Xongwana 8.Nombuzo Bhanethi 9.Wonke Ntlombe 10.Nosiphiwo
YES 12 1 4
WARD 9 Cllr M.Nqini 1.Vuyo Mdutywa 2.Athini Somana 3.Xoliswa Xayiya 4.Khanya Sotyantsi 5.Msa Madliwa 6.Siyabonga Ntende 7.Thandeka Ntsasa 8.Zoleka Mbekeni 9.Zameka Sotyantsi 10.Nobekaphi Wawa
YES 12 4 4
WARD 10 Cllr V.Tshaka YES 12 4 4
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1.N.Maseti 2.D.R.Nonkewuse 3.Ntombizakhe Jaza 4.Bukelwa Soyi 5.Buntu Mpondo 6.Unathi Potose 7.Ndileka Magwaxaza 8.Nomfanelo Fikilane 9.Ntombizanele Sodzeme
WARD 11 Cllr S.Venkile 1.Sizeka Mqwebedu 2.Sebenzile Barney 3.Nokwanda Sinina 4.Lusanda Habule 5.Nyameka Mankabane 6.Nomsebenzi Lantu 7.Nontyantyambo Charles 8.Mthuthuzeli Apleni 9.Sindiswa Lunge 10.Sithembile Zondani
YES 12 3 4
WARD 12 Cllr R.Desi 1.Thandeka Blom 2.Thumeka Nobavu 3.Nomvuyo Ntsudushe 4.Cebo Kotsobe 5.Phelisa Zipindile 6.Fanelwa Ngese 7.Luvuyo Mtila 8.Nosicelo Tishala 9.Lote Nosipiwo 10.Zukiswa Komani
YES 12 0 4
WARD 13 Cllr S.Malawu 1.Nomandithini Sotyantsi 2.Phumza Moloze 3.Khayalethu Selani 4.Tshona Caswell 5.Bulelani Bloro 6.Nikelwa Mancam 7.Vuyelwa Nyamakazi 8.Vuyo Jakuja
YES 12 0 4
WARD 14 Cllr D.Noxeke 1.Neliswa Mbulawa 2.Lina Busika 3.Victoria Poni 4.Zukile Jaqula 5.Yoliswa Mapukatha 6.Nozuko Mbiko
YES 12 2 4
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7.Mlingiseleli Cetywayo 8.Mziyanda Mtsewu 9.Mzayifani Nongqayi 10.Nomsa Jeremiah
WARD 15 CLLR Mtati 1.Vulindlela Mvandaba 2.Zoliswa Kweleta 3.Mlandeli Mbende 4.Themba Mdedetyana 5.Mbulelo Ndinisa 6.Vusumzi Foslara 7.Siziwe Mcoyama 8.Mzikayise Dyosi 9.Thembisa Nkabgala 10.Nombulelo Thomose
YES 12 2 4
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APPENDIX E: MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS
# ITEM RESPONSIBLE
IMPLEMENTED/ NOT
IMPLEMENTED
REASON FOR NONE
IMPLEMENTATION
1.
FORENSIC REPORT
It was indicated that no progress has been made with regards to
the matter. The Chairperson suggested that the matters should
be discussed at the in committee meeting with the Municipal
Manager.
Municipal Manager
Implemented
n/a
2. REGISTER OF FRUITLESS AND WASTEFUL EXPENDITURE
It was agreed that actions to be taken against individuals
incurring fruitless and wasteful expenditure should be presented
on the next Audit Committee meeting.
Municipal Manager
Not Implemented
The municipality took a resolution
to form a committee that will be
responsible for investigating
fruitless, wasteful and irregular
expenditure.
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3. RISK REGISTER – ENGINEERING SERVICES
It was indicated that the Engineering HOD should sit with
Management in order to present the risk register and to include
actions on those risks identified on the register.
ES Director
Implemented
n/a
4. MUNICIPAL MANAGER’S REPORT
It was indicated that the draft Governance Framework will be
taken to Council on the 08 December 2016.
Municipal Manager
Not Implemented
The framework still needs to be
workshopped to the Council before
being adopted.
5. DASHBOARD REPORT
It was indicated that with regards to the accountability
agreements that were not signed by the PMU officials, the
Engineering Director should provide feedback on the next Audit
Committee meeting on the progress of signing the agreements.
ES Director
Implemented
n/a
6.
7.
DEVIATIONS
It was indicated that with regards to the deviations that are made
by Engineering Department that there should be one service
provider who will be dealing with the repairs.
It was indicated that Mr Gxaba – Technician is busy preparing
the specification for the bid advertisement.
ES Director
Implemented
n/a
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8.
Register of Internal Audit Findings and Follow-Up on
Internal Audit Reports
It was indicated that the Internal Audit section should sit with the
Corporate Services Department regarding the updates on the
Fleet Management report as many of the findings on the report
have been resolved.
Internal Audit
Implemented
n/a
9.
Progress on the Implementation of the MSCOA
It was indicated that due to the weaknesses identified to the
current Venus System, the municipality is considering changing
the system for the MSCOA implementation.
CFO
Implemented
n/a
10
11
REGISTER OF FRUITLESS AND WASTEFUL
EXPENDITURE
It was indicated that with regards to actions that should
be implemented by the Municipal Manager to individuals
incurring fruitless and wasteful expenditure that a
separate committee will be formed which will investigate
fruitless and wasteful expenditure.
It was indicated that the fruitless and wasteful
expenditure committee will be effective starting from 01
Municipal
Manager
Implemented
Implemented
n/a
n/a
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March 2017 and on the next Audit Committee meeting,
a report will be presented under Municipal Manager’s
report.
Municipal
Manager
12. REPAIRS AND MAINTANANCE
It was indicated that the matter with SPCA is being
resolved by the Community Services HOD. It was
indicated that on the next Audit Committee meeting a
presentation will be performed.
CMS
Director
Not Implemented
A SLA has been developed and
comments on the document are
being received from other
stakeholders.
13. RISK REGISTER – ENGINEERING SERVICES
It was suggested that the risks identified should be
packed until a resolution is taken regarding the yellow
plant.
ES
Director
Implemented
n/a
14.
15.
Progress on the Implementation of the MSCOA
It was indicated that a service provider is in the process
of being appointed for the installation of a new system
which will be MSCOA compliant.
CFO
CFO
Implemented
Implemented
n/a
n/a
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16.
It was indicated that a request for MSCOA training for
junior staff should be sent to National Treasury
timeously.
It was indicated that the Councillors need to be
familiarised with MSCOA by means of conducting a
workshop, so that they can get a clear understanding of
the purpose of MSCOA.
CFO Implemented n/a
17.
INTERNAL AUDIT PROGRESS – RBIA PLAN
It was indicated that with regards to the project of
assessment of readiness of the ICT Systems for
MSCOA, that the Internal Audit Manager should seat
with Mr Nokwe to discuss a way forward for the project
as the system is in the procurement stage.
IA
Manager
Implemented
n/a
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APPENDIX F: DISCLOSURES OF FINANCIAL INTERESTS
Disclosures of Financial Interests
Period 1 July 2016 to 30 June of Year 2017
Position Name Description of Financial interests* (Nil / Or details)
(Executive) Mayor Cllr P. Qaba Nil
Member of EXCO Cllr. Nongqayi Nil
Cllr. Busika Nil
Cllr. Mgxaso Nil
Cllr. Monti Nil
Cllr. Mlahleki Nil
Cllr. Balindlela Nil
Councillor
Municipal Manager B K Socikwa Nil
Chief Financial Officer J Ntshinga Nil
Deputy MM and (Executive) Directors S Vara Nil
B Ondala Nil
T Bacela Nil
M Quma Nil
S Yoko (Acting) Nil
Other S57 Officials
* Financial interests to be disclosed even if they incurred for only part of the year. See MBRR SA34A T J
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APPENDIX G: REVENUE COLLECTION PERFORMANCE BY VOTE
Revenue Collection Performance by Vote
R' 000
Vote Description
Year 2015/16 Current: Year 2016/17 Year 2016/17 Variance
Actual Original Budget
Adjusted Budget
Actual Original Budget Adjustments Budget
Vote 1 - Executive & Council 137 234
142 565
140 656
137 475 -4% -2%
Vote 2 - Budget & Treasury 17 696 1
876 1
958 1
818 -3% -8% Vote 3 - Corporate
Services 399
–
–
– 0% 0% Vote 4 - Planning &
Development 2 415 2
807 1
608 1
564 -79% -3%
Vote 5 - Health –
–
–
– 0% 0% Vote 6 - Community &
Social Services 1 858 2
127 1
893 1
719 -24% -10%
Vote 7 - Housing 221
464
409
245 -90% -67%
Vote 8 - Public Safety –
11
11
– #DIV/0! #DIV/0! Vote 9 - Sport &
Recreation –
1
–
– 0% 0% Vote 10 - Waste
Management 8 589 10
001 11
688 9
199 -9% -27%
Vote 11 - Road Transport 39 170 73
630 66
651 60
562 -22% -10%
Vote 12 - Electricity 33 707 39
407 44
555 36
380 -8% -22% Vote 13 - Environmental
Protection 231
405 3
403 3
140 87% -8%
Example 14 - Vote 14 – 0% 0%
Example 15 - Vote 15 - 0% 0%
Total Revenue by Vote 241 519 273 293 272 831 252 101 #DIV/0! #DIV/0!
Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A3 T K.1
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APPENDIX H: LONG TERM CONTRACTS
Long Term Contracts (20 Largest Contracts Entered into during Year 2016/17)
R' 000
Name of Service Provider (Entity or Municipal
Department)
Description of Services Rendered by the Service Provider
Start Date of Contract
Expiry date of Contract
Project manager Contract Value
None
T H.1
Public Private Partnerships Entered into during Year 2016/17
R' 000
Name and Description of Project
Name of Partner(s) Initiation Date Expiry date Project manager Value 2008/09
None
T H.2
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APPENDIX I: MUNICIPAL ENTITY
Municipal Entity/Service Provider Performance Schedule Name of Entity & Purpose
(a) Service Indicators
Year 0 Year 1 Year 2 Year 3
(b) Service Targets
Target Actual Target Actual Target
*Previous
Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
N/A
Note: This statement should include no more than the top four priority indicators. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets must be fundable within approved budget provision. In column (ii) set out the Service Indicator (In bold italics) then the Service Target underneath (not in bold - standard type face) to denote the difference. T I
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APPENDIX J: REVENUE COLLECTION PERFORMANCE BY SOURCE
Revenue Collection Performance by Source
R '000
Description
Year 2015/16 Year 2016/17 Year 2016/17 Variance
Actual Original Budget
Adjustments Budget
Actual Original Budget
Adjustments Budget
Property rates 15 841 17 600 15 882 14 013 -26% -13%
Property rates - penalties & collection charges
–
–
0% 0%
Service Charges - electricity revenue 33 683 34 407 39 435 32 852 -5% -20%
Service Charges - water revenue –
–
–
–
0% 0%
Service Charges - sanitation revenue –
–
–
–
0% 0%
Service Charges - refuse revenue 8 589 10 001 9 500 9 133 -10% -4%
Service Charges - other –
–
120
6
0% 0%
Rentals of facilities and equipment 1 002 1 159 951
621
-87% -53%
Interest earned - external investments 9 422 8 000 8 300 7 294 -10% -14%
Interest earned - outstanding debtors 2 175 2 799 2 500 2 301 -22% -9%
Dividends received –
–
–
–
0% 0%
Fines 239
82
51
53
-54% 5%
Licences and permits –
–
–
–
0% 0%
Agency services 3 219 3 769 3 850 2 832 -33% -36%
Transfers recognised - operational 131 522 125 374 126 362 123 692 -1% -2%
Other revenue 1 217 41 463 44 241 43 589 5% -1%
Gains on disposal of PPE –
–
–
0% 0%
Environmental Protection –
–
–
0% 0%
Total Revenue (excluding capital transfers and contributions)
206 907 244 654 251 191 236 386 -3.50% -6.26%
Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A4. T K.2
APPENDIX K: CONDITIONAL GRANTS EXCLUDING MIG
Conditional Grants: excluding MIG
R' 000
Details
Budget Adjustments Budget
Actual Variance Major conditions applied by donor (continue below if
necessary) Budget Adjustments
Budget
Neighbourhood Development Partnership Grant
Public Transport Infrastructure and Systems Grant
Other Specify:
FMG Grant 1 625 1 625 1 625 0% 0%
MSIG Grant – – – 0% 0%
EPWP Grant 1 062 1 062 1 062 0% 0%
Equitable Share 113 780 113 780 113 780 0% 0%
Other 6 507 6 507 5 200
Provincial
Library Grant 1 200 1 200 1 200 0% 0%
Waste Grant 1 200 2 188 825 0% -165%
Economic Survey – – – 0% 0%
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Capacity of Municipality – – – 100% #DIV/0!
Staff Training – – – 100% #DIV/0!
Recycling Centre – – – 100% #DIV/0!
Vuna Awards - - - 100% #DIV/0!
Total 125 374 350.00 126 362 304.00 123 691 789.00
* This includes Neighbourhood Development Partnership Grant, Public Transport Infrastructure and Systems Grant and any other grant excluding Municipal Infrastructure Grant (MIG) which is dealt with in the main report, see T 5.8.3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Obtain a list of grants from national and provincial government.
T L
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APPENDIX L: CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME
Capital Expenditure - New Assets Programme*
R '000
Description Year 2016/17 Planned Capital expenditure
Original Budget Adjustment
Budget Actual
Expenditure FY + 2017/18 FY + 2018/19 FY + 2019/20
Capital expenditure by Asset Class
Infrastructure - Total 6 500 6 350 4 800 – – –
Infrastructure: Road transport - Total – – – – – –
Roads, Pavements & Bridges
Storm water
Infrastructure: Electricity - Total 6 500 6 350 4 800 – – –
Generation
Transmission & Reticulation 6 500 6 350 4 800
Street Lighting
Infrastructure: Water - Total – – – – – –
Dams & Reservoirs
Water purification
Reticulation
Infrastructure: Sanitation - Total – – – – –
Reticulation
Sewerage purification
Infrastructure: Other - Total – – – – –
Waste Management
Transportation
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Gas
Other
Community - Total – – – – – –
Parks & gardens
Sportsfields & stadia
Swimming pools
Community halls
Libraries
Recreational facilities
Fire, safety & emergency
Security and policing
Buses
Clinics
Museums & Art Galleries
Cemeteries
Social rental housing
Other
Table continued next page
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Table continued from previous page
Capital Expenditure - New Assets Programme*
R '000
Description Year 2016/17 Planned Capital expenditure
Original Budget Adjustment
Budget Actual
Expenditure FY + 2017/18 FY + 2018/19 FY + 2019/20
Capital expenditure by Asset Class
Heritage assets - Total – – – – –
Buildings
Other
Investment properties - Total – – – – –
Housing development
Other
Other assets 5 790 9 621 8 549 – – –
General vehicles 2 500 6 112 5 468
Specialised vehicles – –
Plant & equipment
Computers - hardware/equipment
Furniture and other office equipment 335 124 139
Abattoirs
Markets
Civic Land and Buildings
Other Buildings
Other Land 2 000 1 731 1 518 Surplus Assets - (Investment or
Inventory)
Other 955 1 653 1 424
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– –
Agricultural assets – – – – –
List sub-class
Biological assets – – – – –
List sub-class
Intangibles 200 184 48 – – –
Computers - software & programming 200 184 48
Other (list sub-class)
Total Capital Expenditure on new assets 12 490 16 154 13 397 – – –
Specialised vehicles 2 500 5 244 4 600 – – –
Refuse 2 500 5 244 4 600 – – –
Fire
Conservancy
Ambulances
* Note: Information for this table may be sourced from MBRR (2009: Table SA34a) T M.1
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Capital Expenditure - Upgrade/Renewal Programme*
R '000
Description
Year 2016/17 Planned Capital expenditure
Original Budget Adjustment
Budget Actual
Expenditure FY + 2017/18 FY + 2018/19 FY + 2019/20
Capital expenditure by Asset Class
Infrastructure - Total 28 640 21 640 22 121 32 145 31 534 39 999
Infrastructure: Road transport -Total 18 520 20 620 18 777 15 645 28 534 29 999
Roads, Pavements & Bridges 18 520 20 620 18 777 15 645 28 534 29 999
Storm water
Infrastructure: Electricity - Total 2 000 250 2 432 9 200 3 000 10 000
Generation – – – – –
Transmission & Reticulation – – 9 200 3 000 10 000
Street Lighting 2 000 250 2 432 – – –
Infrastructure: Water - Total – – – – – –
Dams & Reservoirs
Water purification
Reticulation
Infrastructure: Sanitation - Total – – – – –
Reticulation
Sewerage purification
Infrastructure: Other - Total – – – – – –
Waste Management
Transportation
Gas
Other
Community 8 120 770 912 7 300 – –
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Parks & gardens
Sportsfields & stadia – – – – – –
Swimming pools – – – – – –
Community halls – – – – – –
Libraries – – – – – –
Recreational facilities 4 522 152 693 4 800 – –
Fire, safety & emergency 3 598 498 219 2 500 – –
Security and policing – – – – – –
Buses – – – – – –
Clinics – – – – – –
Museums & Art Galleries – – – – – –
Cemeteries – – – – – –
Social rental housing – – – – – –
Other – – – – – –
– 120 –
Heritage assets – – – – – –
Buildings
Other
Table continued next page
Table continued from previous page
Capital Expenditure - Upgrade/Renewal Programme*
R '000
Description
Year 2016/17 Planned Capital expenditure
Original Budget Adjustment
Budget Actual
Expenditure FY + 2017/18 FY + 2018/19 FY + 2019/20
Capital expenditure by Asset Class
Investment properties – – – – – –
Housing development
Other
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Other assets – – – – – –
General vehicles
Specialised vehicles
Plant & equipment
Computers - hardware/equipment
Furniture and other office equipment
Abattoirs
Markets
Civic Land and Buildings
Other Buildings
Other Land Surplus Assets - (Investment or
Inventory)
Other – – –
Agricultural assets – – – – – –
List sub-class
Biological assets – – – – – –
List sub-class
Intangibles – – – – – –
Computers - software & programming
Other (list sub-class)
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Total Capital Expenditure on renewal of existing assets 36 759 22 409 23 033 39 445 31 534 39 999
Specialised vehicles – – – – –
Refuse
Fire
Conservancy
Ambulances
* Note: Information for this table may be sourced from MBRR (2009: Table SA34b) T M.2
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APPENDIX M: CAPITAL PROGRAMME
Capital Programme by Project: Year 2016/17
R' 000
Capital Project Original Budget Adjustment Budget Actual Variance (Act - Adj) %
Variance (Act - OB) %
Executive & Council
Furniture & Equipment 80 62 62 0% -28%
Other Assets 1 000 868 868
"Project C"
Budget & Treasury
Furniture & Equipment 90 22 23 3% -294%
Other Assets 350 – – #DIV/0! #DIV/0!
Corporate Services
Furniture & Equipment 80 29 29 0% -174%
Other Assets 500 600 477 0% 100%
Planning & Development
Other Assets 105 393 407 3% 74%
MIG Projects 28 640 21 640 22 121 2% -29%
Community & Social Services
Other Assets 42 2 – #DIV/0! #DIV/0!
Housing
Furniture & Equipment 10 – – #DIV/0! #DIV/0!
Other Assets 200 184 48 -282% -316%
Public Safety
Furniture & Equipment – – – #DIV/0! #DIV/0!
Sports & Recreation - Parks & Gardens
Other Assets 5 5 5 -10% -10%
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Refuse
Other Assets 2 501 5 245 4 600 -0.14 46%
Road Transport
Other Assets 1 020 1 731 1 518 -14% 33%
Electricity
H/V Line Replacement – – #DIV/0! #DIV/0!
New Connections - Electricity 1 500 1 350 29 -4536% -5052%
Upgrade 11KV Cable 5 000 5 000 4 771 -5% -5%
Eskom Bulk Supply – – #DIV/0! #DIV/0!
Other Assets 6 661 556 -19% 99%
Environmental Protection
Other Assets 1 1 0 -226% -226%
41 130 37 794 35 516
V
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APPENDIX N: DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY
Declaration of Loans and Grants made by the municipality: Year 2016/17
All Organisation or Person in receipt of Loans */Grants* provided by the municipality
Nature of project
Conditions attached to funding
Value Year 0 R' 000
Total Amount committed over previous and future years
None
* Loans/Grants - whether in cash or in kind T R
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ANNEXURE O: COGTA KEY PERFORMANCE INDICATORS
RE: REQUEST FOR THE CONSIDERATION OF KEY PERFORMANCE INDICATORS
IN THE ANNUAL REPORT FOR 2015/16 FINANCIAL YEAR
SECTION 46 Report Indicators
The following is the list of indicators that were agreed upon and on how the performance information should be
populated:-
CHAPTER: ORGANISATIONAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT –KPA 1
Annual performance as per key performance indicators in municipal transformation and organizational
development
Indicator name Total
number of
people
(planned
for) during
the year
under
review
Achievement
level during
the year
under review
Achievement
percentage
during the year
Comments on
the gap
1 Vacancy rate for all
approved and budgeted
posts;
51 33 The position was
advertised and
we waited for the
go ahead from
the office of the
speaker
2 Percentage of appointment
in strategic positions
(Municipal Manager and
Section 57 Managers)
2 2
3 Percentage of Section 57
Managers including
Municipal Managers who
attended at least 1 skill
development training
course within the FY
1 1
4 Percentage of Managers in
Technical Services with a
professional qualification
1 1
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Indicator name Total
number of
people
(planned
for) during
the year
under
review
Achievement
level during
the year
under review
Achievement
percentage
during the year
Comments on
the gap
5 Level of PMS
effectiveness in the DM –
(DM to report)
THE INFORMATION SHOULD BE REFLECTED IN A NARRATIVE
FORM
6 Level of effectiveness of
PMS in the LM – (LM to
report)
7 Percentage of staff that
have undergone a skills
audit (including
competency profiles)
within the current 5 year
term
64 46
8 Percentage of councillors
who attended a skill
development training
within the current 5 year
term
22 22
9 Percentage of staff
complement with disability
1 1
10 Percentage of female
employees
109 109
11 Percentage of employees
that are
aged 35 or younger
141 141
12 Adoption and
implementation of a
District Wide/ Local
Performance Management
System
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CHAPTER: BASIC SERVICE DELIVERY PERFORMANCE HIGHLIGHTS (KPA 2)
Annual performance as per key performance indicators in Electricity services
Indicator
name
Total number of
household/customer
expected to benefit
Total House
Holds=34159
Estimated
backlogs
(actual
numbers)
Target
set for
the f.
year
under
review
(actual
numbers)
Number of
HH/customer
reached
during the
FY
Percentage
of
achievement
during the
year
1 Percentage
of
households
with access
to electricity
services
33425 2%=684 8%=3416 0 0
2 Percentage
of indigent
households
with access
to basic
electricity
services
8034 34%=11381 - 0 0
3 Percentage
of indigent
households
with access
to free
alternative
energy
sources
0 0 0 n/a n/a
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Annual performance as per key performance indicators in road maintenance services
Indicator
name
Total number of
household/customer
expected to benefit
Estimated
backlogs
(actual
numbers)
Target
set for
the f. year
under
review
(Actual
numbers)
Number of
HH/customer
reached
during the
FY
Percentage
of
achievement
during the
year
1 Percentage of
households
without access
to gravel or
graded roads
14000 1265 275 260 95
2 Percentage of
road
infrastructure
requiring
upgrade
13000 12400 650 600 92
3 Percentage of
planned new
road
infrastructure
actually
constructed
250 2540 220 200 91
4 Percentage of
capital budget
reserved for
road upgrading
and
maintenance
effectively
used.
800 450 500 400 80
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Annual performance as per key performance indicators in waste management services
Indicator
name
Total number of
household/custome
r expected to
benefit
Estimate
d
backlogs
(actual
numbers)
Targe
t set
for
the f.
year
under
revie
w
Number of
HH/custome
r reached
Percentage
of
achievemen
t during the
year
Percentag
e of
household
s with
access to
refuse
removal
services
34 000
households
27 475 House Holds 7000
House
Holds
Targeted
6525
House
Holds
93,21% in
the
Amahlathi
Municipality
Percentage
of
households
with access
to refuse
removal
services
2 Existence of
waste
managemen
t plan
Integrated Waste Management Plan has been adopted by Council and it is
operational at the Amahlathi Municipality.
Annual performance as per key performance indicators in housing and town planning services
Indicator
name
Total number of
household/customer
expected to benefit
Estimated
backlogs
(Actual
numbers)
Target
set for
the f.
year
under
review
Number of
HH/customer
reached
Percentage
of
achievement
during the
year
1 Percentage of
households
living in
informal
settlements
4,4% 1527 N/A N/A 0%
2 Percentage of
informal
settlements
that have been
provided with
basic services
N/A N/A N/A N/A N/A
3 Percentage of
households in
57% 19950 N/A N/A N/A
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formal housing
that conforms
to the minimum
building
standards for
residential
houses
4 Existence of an
effective
indigent policy
There is Indigent policy that has been adopted and it is reviewed annually.
5 Existence of an
approved SDF
There is an approved Amahlathi Municipality Spatial Development Framework
(2012) which is valid up until 2015/2016 FY. It is planned that the SDF must be
reviewed the following financial year (2017/18).
6 Existence of
Land Use
Management
System
(LUMS)
A Land Use Survey (determination of land uses within Amahlathi Local
Municipality), informed by Land Use Ordinance of 15 1985 was conducted in
August 2012 and Zoning Maps were created. However a completed Zoning
Scheme to regulate land development/ to control land use rights was not
finalised, due to the fact that the Municipality was awaiting on the
Implementation of Spatial Planning and Land Use Management Act No 13 of
2013. It is suggested that an Integrated Zoning Scheme for all towns (in line with
SPLUMA) must be developed in the year 2017/18.
CHAPTER: MUNICIPAL LOCAL ECONOMIC DEVELOPMENT FRAMEWORK- (KPA 3)
Annual performance as per key performance indicators in LED
Indicator name Target set
for the year
Achievement
level during
the year
(absolute
figure)
Achievement
percentage
during the
year
1 Existence of LED unit None
- No new
recruitments
0%
2 Percentage of LED
Budget spent on LED
related activities.
100% 100% 100%
3 Existence of LED strategy LED strategy was adopted by Council in 2012
4 Number of LED
stakeholder forum
meetings held
-4
Community
Tourism
Organisation
and Local
Tourism
Organisation
meetings
-11 Community
Tourism
Organisation
and Local
Tourism
Organisation
meetings held.
100%
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Indicator name Target set
for the year
Achievement
level during
the year
(absolute
figure)
Achievement
percentage
during the
year
-4 LED
Forum
Meeting
-4
Agricultural
Forum
Meeting
-8 LED related
Forum meetings
held.
-9 Agricultural
Forum meetings
held.
5 Plans to stimulate second
economy
n/a n/a n/a
6 Percentage of SMME that
have benefited from a
SMME support program
-Training of 5
Contractors
-Training of
10
Cooperatives
Registration of
Timber
Cooperatives
-Training of 8
Contractors
-Training of 12
Cooperatives
100%
7 Number of job
opportunities created
through EPWP
60 people to
be employed
by 30 June
2016
506 people
were employed
under EPWP
Programme
100%
8 Number of job
opportunities created
through PPP
n/a n/a n/a
CHAPTER: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT (KPA 4)
Annual performance as per key performance indicators in financial viability
Indicator name Target set for the
year R(000)
Achievement
level during
the year R(000)
Achievement
percentage during the
year
1 Percentage expenditure of
capital budget
R 37 794 023 R 34 942
606
92%
2 Target set for
the year (35%)
R(000)
Achievement
level during
the year
R(000)
Achievement
percentage during the
year vs the operational
budget
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3 Salary budget as a
percentage of the total
operational budget
(Including Councillor
Allowances)
R103 752 357 R 111 505
314
107%
4 Target set for
the year (20%
or less) R(000)
Achievement
level during
the year
R(000)
Achievement
percentage during the
year vs the actual
revenue
5 Trade creditors as a
percentage of total actual
revenue
5.1
6.6
129%
6 Target set for
the year (80%
and more)
R(000)
Achievement
level during
the year
R(000)
Achievement
percentage during the
year
7 Total municipal own
revenue as a percentage
of the total actual budget
R272 831 139
R213 841
323
78%
8 Target set for
the year
R(000)
Achievement
level during
the year
R(000)
Achievement
percentage during the
year
9 Rate of municipal
consumer debt reduction
5 000 000 7 797 839 156%
10 Percentage of MIG budget
appropriately spent
R21 639 650 R21 639 650 100%
11 Percentage of MSIG
budget appropriately spent
R 0 R 0 0%
12 AG Audit opinion
Unqualified Pending
13 Functionality of the Audit
Committee
4 meetings 4 meetings 100%
14 Submission of AFS after
the end of financial year
31 August 31 August 100%
CHAPTER: GOOD GOVERNANCE AND PUBLIC PARTICIPATION- (KPA 5)
No Indicator name
Target set for the
year
Achievement level
during the year
(absolute figure)
Achievement percentage
during the year
1 % war room 12 meetings 12 100%
3 Existence of an effective system to monitor CDWs
Currently there is no tool to motor CDWs. Only assisting them administratively (i.e. venue and communicating their meetings to relevant stakeholders)
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No Indicator name
Target set for the
year
Achievement level
during the year
(absolute figure)
Achievement percentage
during the year
5 Effective of IGR structural meetings
Amahlathi Political IGR forum meetings sit on a quarterly basis and are led by the Honourable Mayor. All the Executive Committee members of the Council also form part of the forum as required by the terms of reference of the committee. The IGR is currently coordinated in the Office of the MM and is attached to the Office Administrator.
6 Existence of an effective communication strategy
Communication Strategy adopted by council February 2015, and it is reviewed on an annually basis by reviewing the Communication Action Plan
6 Existence of an effective communication strategy
Communication Strategy adopted by council February 2015, and it is reviewed on an annually basis by reviewing the Communication Action Plan
7 Number of mayoral imbizos conducted
2 2 100%
8 Existence of a fraud prevention mechanism
The Internal Audit Unit is conducting Fraud Awareness Campaigns within the municipality on quarterly basis and those awareness programs are included on the Approved Risk Based Internal Audit Plan for 2015/16 financial year. Employees are workshopped on what constitutes Fraud and what they should do when they suspect that fraud is happening within the municipality. The Internal Audit Unit has also developed Fraud Prevention Plan and Whistle-blowing policy for protection of the Whistle blowers. Policy was submitted to the Council and was adopted in April 2015.
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VOLUME II: UNAUDITED ANNUAL FINANCIAL STATEMENT