ANNUAL PERFOMANCE REPORT 2012 / 2013 KPA2 : SERVICE DELIVERY … · 2016. 3. 28. · Annual Target June 2013 Actual Ensuring appropriate organizational design that conforms /fits

P a g e | 301

ANNUAL PERFOMANCE REPORT 2012 / 2013

KPA2 : SERVICE DELIVERY

Strategic Objective (IDP)

Indicator of Performance

Annual Target

Measurement Source

Baseline Targets Snapshot

Analysis

Reasons for

Variance

General Comments / Corrective

Action Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Working to improve levels of provision of community facilities by Facilitating services in relation Parks and recreation services

Revival of Parks in DXX & Indwe /Evaluation /assessment report / Revival programme of DXX & Indwe Parks (R 73 000) Ward 14, 16

Evaluation & assessment / Revive existing parks (DXX & Indwe)

Evaluation /assessment report / Revival programme of DXX & Indwe Parks /progress reporting

Parks in DXX & Indwe are in bad state/limited funding

Evaluation & assessment / Revive existing parks (DXX & Indwe)

Revival of Parks in DXX & Indwe /Evaluation /assessment report / Revival programme of DXX & Indwe Parks

Partially Achieved

Not done due to budget constraints/ project budget for in 12/13 FY.

The park was built, but damaged but the community who were not happy with the material used.

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KPA 3: Municipal Transformation and institutional development

Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance


Action Annual Target June 2012

Actual Annual Target

June 2013 Actual

Ensuring appropriate organizational design that conforms /fits in with roles, powers and functions assigned to municipalities by annual review and Design of the organizational structure

Organizational Structure reworked & reviewed

ELM

Organizational Structure developed (1)

Approved organizational structure

Existing structure reviewed annually in line

with IDP

Inputs and consultation/progress reports

Draft prepared by June 2012 ELM were still awaiting analysis and evaluation of the institutions organisational requirements from DPLG and SALGA follow up letter has written & forwarded requesting a progress report

Development of an Organizational Structure.

Achieved

A complete

analysis and evaluation of the institutions organisational requirements will be done by DPLG and SALGA in conjunction with ELM

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance



June 2012 Actual

Annual Target

June 2013 Actual

Job Descriptions / TASK Benchmarking

Analysis of existing job descriptions / Review/update/ develop new job descriptions & review job specifications / Job Descriptions (in line with reviewed organogram /benchmark post on TASK

ELM

Analysis of existing job descriptions / Review/update/ develop new Job Descriptions (in line with reviewed organogram /benchmark post on TASK

Job specifications List of Job descriptions aligned to organogram

All JD`s (specs /

descriptions current TASK

evaluation results

implemented/ outdated JD`s /new post will

have to be identified

Provision of list of JD specs identified outdated /Plan to commence with development of JD`s outstanding

Continuation & target

achievement is dependent

on completion of

the organogram still awaiting analysis &

evaluation of the

institutions organisationa

l requirements from DPLG and SALGA

so as to continue with

Analysis of existing job descriptions / Review/update/ develop new Job Descriptions (in line with reviewed organogram /benchmark post on TASK

Continuation & target

achievement is dependent

on completion of

the organogram still awaiting analysis &

evaluation of the

institutions organisationa

l requirements from DPLG and SALGA

so as to continue with

New Target /suggested

that the target

milestones may be

amended as there is

dependence on SALGA & DPLG

/No dedicated funding

allocated

Was not a target during the 2012/2013. Provision made for 2013/2014 FY

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance



June 2012 Actual

Annual Target

June 2013 Actual

Focusing on skill development / HR Staff development/ Capacitated staff within identified areas

Adopted WSP & 80% of training budget spent on implementation of WSP (R 497 277.00)

ELM

Approved WSP and Implementation Reports & 80% of training budget spent on WSP implementation (80% R 397 821 .60)

Approved WSP and Implementation Reports Skills Monitoring Reports

Compliance /

Developed annually

Implementation Reports (training received ) &report on % percentage of budget expenditure on training implementation

Expenditure of WSP budget amounts to R

764 580 – 80% of Training

budget spent on WSP

Implementation .

Approved WSP and Implementation Reports & 80% of training budget spent on WSP implementation (80% R 397 821 .60)

Achieved

Percentage % of WSP budget expenditure to be determined and monitored

R750K spent on trainning during 2012/2013

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis Reasons for

Variance




June 2013 Actual

Developing & implementing an appropriate & Effective Performance Management system (Institutional PMS)

Reviewed and updated PMS Policy Performance Management institutionally applied as per PMS policy and roll-out plan

ELM

Plan & report on progress with review of PMS Policy & framework /progress with PMS to be roll out to levels below s57 managers

Approved Annual Performance Report Performance Reviews: SDBIP's Annual report Reviewed PMS Policy

No progress with PMS to be roll

out to levels

below s57 managers

Report on progress with roll out to Levels below s57

In planning phase PMS

Framework still to be reviewed with other policies

Review of PMS Policy & framework /progress with PMS to be roll out to levels below s57 managers

Partially Achieved.

PMS framework

was reviewed, but has not yet been cascaded down to levels below s57 managers

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Strategic Objective

(IDP)


Annual Target

Measurement Source



Variance

General Comments /

Corrective Action Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Effective administration through application Document Management System

Documents effectively maintained

ELM

100% reports on implementation

Quarterly systems report (manual document management system functional)

Reporting Quarterly

Quarterly reports on implementation

Not fully Achieved – in progress

Service provider (African

Networks) to be

implementing training of Electronic Document

Management System

Quarterly reports on implementation

Partially Achieved.

Manual document management system functional / electronic system not functional - New server in place /no access to Driver

Software on electronic DMS was installed and the relevant officials were trained.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance



June 2012 Actual

Annual Target

June 2013 Actual

Improving communication : Local Labour Forum

LLF functioning and reporting as per revised ToR

ELM

100% Quarterly LLF Meetings /reports

Revised TOR Quarterly Reports to Standing Committee

Established LLF

Quarterly LLF Meetings /reports

Only 2 of the 4 meetings achieved 1 on Q1 and 1 in Q 2 meeting sat on 12-1-12 Q 3 no meetings sat Q4 no meeting

100% Quarterly LLF Meetings /reports

Two meetings were held under the year under review.

Ongoing

process

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Strategic Objective

(IDP)


Annual Target

Measurement Source



Variance



June 2012 Actual

Annual Target

June 2013 Actual

Working towards employment equity : Employment Equity - ensuring the implementation of moral regeneration programmes

Management and oversight of Employment Equity and application of plan and achievement of targets. 70% achievement of EE in first 3 levels of management (Top Management /Senior Management & Professionally qualified & experienced specialist & mid management) ELM

70% Achievement of EE target in the first three levels (Top Management /Senior Management & Professionally qualified & experienced specialist & mid management)

EE Plan / EE Quarterly information reports/appointment statistics

Updated annually

Scarcity of skills

challenges Equity

achieved in top 3

structures

Achievement of EE target ; (Top Management /Senior Management & Professionally qualified & experienced specialist & mid management)

Compliance with first 3 levels ;Top Management: - 1 BM : Senior Management: 2 BF's 1 WF 3 BM's : Professionally qualified and experienced specialists and mid management: 1 WM, 3 BM's and 4 BF's

Achievement of EE target;(Top Management /Senior Management & Professionally qualified & experienced specialist & mid management)

Compliance with first 3 levels achieved Statistics updated as and when staff movements occur Top Management 1 BM Senior Management3 BM ,2 BF /1 WM and 1 CM Professional qualified & experienced specialist & mid management 10 BM , 7 BF, 1 WF,2 WM

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments / Corrective Action Annual

Target June 2012


June 2013 Actual

To improve organisational development

Coordinate the review of municipal policies & bylaws

Coordinate review of policies and by-laws

Evaluate the work done and compile a report

Notify all departments

to submit their policies for review; Arrange a

workshop for all

councillors, management and unions

for review of policies;

Consult with the LLF on

the reviewed policies

Review 51 policies

Progress slow progress / assistance sought from DLG&TA in a MISA meeting and no response has been received. Follow up letter sent to SALGA & DLG & TA

Coordinate review of policies and by-laws

14 policies have been reviewed and was done with the assistance of the Chris Hani District Municipality.

The following policies were

reviewed and adopted by Council in May 2013: Recruitment &

Selection Policy. Subsistence & Travelling policy. Leave Policy.

Acting Allowance policy. Another workshop took place from the 19th

to 21st June 2013 and the following policies were reviewed:

Cellphone allowance policy. Travelling allowance policy.

Occupational Health & Safety Policy. Overtime Policy.

Promotion, Demotion & Transfer Policy. Records Management

Policy. Rates Policy. Credit Control Policy.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance General Comments / Corrective Action

Annual Target

June 2012

Actual

Annual Target

June 2013 Actual

Focusing on skills development

Develop a Workplace Skills Plan Appointment of interns

Development of Workplace Skills Plan

Monitor the implementation of training in terms of the approved WSP Appointment of interns

Training of councillors and officials

Recruit interns

across all departments where there

is a need

Approved Workplace Skills Plan 8 interns appointed

Achieved

· Eleven Clerks and one officer

attended Technical Report Writing and Minute taking with Motontech from 06th to 08th of February 2013 and others from 13th to 15th March 2013. · Roads and Storm water Technician attended a course on Fundamentals of Procurement and Tendering for Construction Contracts with Joshua West from 06th to 07th of February 2013. IT Technician is doing a one year programme in MCITP: Enterprise Administrator. (MCSE 2008) with CCS IT Training. • Personnel Clerk and OHS Coordinator are doing One Year Programme for OHS Training with UNISA • Two Councillors and One Official (HIV/AIDS Coordinator) are attending Advanced Certificate in Local Governance Law and Administration with University of Fort Hare • Three Councillors without Grade 12 without Grade 12 are attending a Certificate in Public Administration for Community Services • Three Councillors and six officials are attending Certificate in Local Government Law and Administration with University of Fort Hare • Two Finance Officials (BTO and Accountant Expenditure) are attending CPMD/MFMP with NMMU funded by LGSETA. • One Section 57 Manager (Community Services Manager) is attending CPMD/MFMP with University of Fort Hare which is funded by LGSETA. • Two Finance Officials (Asset Management Officer and Senior

P a g e | 311

Expenditure Officer) are attending CPMD University of Fort Hare. • Communications Officer is doing Honours Degree with the University of South Africa • The Housing and Estate Officer is doing a Degree in Development Studies with University of South Africa 8 interns were appointed: 4 – Finance Dept 2 – Corporate Services 1 – Internal Audit 1 – LED Trainee No new Interns were appointed during this period. The contract of the LED trainee seconded by the Dept of Local Government was renewed and a new business plan was signed.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance


Target June 2012


June 2013 Actual

Compliance with Occupational Health & Safety regulations

Ensure a functional Health & Safety Committee

Monitor compliance with Occupational Health and Safety

legislation

Submit reports on compliance with Occupational Health & Safety regulations

Appoint Safety reps

in all departments; Train safety reps; Safety

reps to report to the

OHS Committee;

OHS Committee

to make inspections

on a monthly basis and compile a

report;

4 reports of the Occupational Health & Safety Committee

4 reports of the Occupational Health & Safety Committee

Not Achieved

Difficulty is

experienced in

coordinating the

members.

OHS inspections by the OHS Committee are scheduled to take place in all workstations on the 6, 7 & 8 August 2013 and the inspection report will be tabled to the Standing Committee.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance



June 2012 Actual

Annual Target

June 2013 Actual

Improve communication with internal stakeholders

Improvement of communication with the Local Labour Forum

4 reports on functioning of the LLF

Submit all relevant items for discussion by LLF; Obtain items for discussion from unions; Ensure compliance with collective agreements; Nomination of LLF chairperson.

No Local Labour Forum meeting has been held during this period. A meeting which was scheduled to take place on

the 9th July 2013 could not take place due to the unavailability of members.

Report on the LLF meeting held

Partially Achieved

Meetings cannot take place due to unavailability of the LLF members

2 Local Labour Forum meetings were held

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance


Target June 2012


June 2013 Actual

Ensure appropriate organisational design

Review the organisational structure and align it to IDP and Budget

Organogram approved by June 2013

Submissions made by departments on proposed organogram; Consult the proposal with LLF; Submit to Council for approval

1 Reviewed organisational structure

Achieved

The organogram for

2013/2014 has been reviewed, work shopped with the LLF members and adopted by Council on 30 May 2013

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Strategic Objective

(IDP)


Annual Target

Measurement Source



Variance General Comments / Corrective Action Annual

Target June 2012


June 2013 Actual

Good governance and effective administration

Fill funded vacant positions

Filling of funded vacant positions

Complete the appointments and compile a report

Advertise vacant budgeted positions and fill them.

29 funded vacancies filled

Partially Achieved

The following positions

have been filled; Committee Clerk PMU Administrator Refuse tractor Driver Livestock Branding Assistants x 2 Driver for Technical Services. Posts were advertised.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance


Target June 2012


June 2013 Actual

Effective administration of document management

Ensure proper records management

Develop a records management policy and procedure manual; Develop a file plan with reference numbers to be used by all departments; Establish a safe records and archives unit, including registry; Train all officials on the installed electronic document management system.

Report on the implementation of records management system

There are challenges

with the implementation

of the electronic Records

Management system.

4 reports on the functionality of records management

Achieved

A Records Management

Policy has been adopted by Council. A procedure manual has been developed for implementation. Challenges are still experienced with the implementation of the electronic Records Management system. The provincial Dept of Sport, Recreation, Arts & Culture has initiated a programme to assist the municipality with the Electronic Records Management System.

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Strategic Objective

(IDP)


Annual Target

Measurement Source



Variance



June 2012

Actual

Annual Target

June 2013 Actual

Working towards employment equity

Ensure implementation of Employment Equity

Consider the targets in the EE Plan in the recruitment processes

Report on the implementation of the Employment Equity Plan

The EE plan in place. Next

step is implementation.

7 people from designated groups appointed in management posts in terms of the Employment Equity Plan

Achieved

The EE Plan for 2012/13 was not signed by the relevant parties and therefore not submitted to the EE Registry, this has resulted to non-compliance with EE legislation. A new EE Plan for 2013-2017 has been drafted and will be consulted with the LLF on 2nd May 2013

The Employment Equity Plan for the period 2013- 2017 has been adopted by Council for implementation. The targets set in the Plan will be considered in the recruitment processes

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance


Target June 2012


June 2013 Actual

Institutional meetings held in terms of legislative compliance

Ensure legislative compliance

Attendance of 11 departmental meetings, 12 management meetings, 11 EXCO meetings; 11 standing committee meetings and 4 Council meetings

Report on meetings held

Attendance of 11 departmental meetings, 12 management meetings, 11 EXCO meetings; 11 standing committee meetings and 4 Council meetings

Achieved

The municipality

complied with legislative requirements and met as per target. Council meets regularly as and when a need arise.

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KPA 4: Financial Management and Viability

Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance



June 2012 Actual

Annual Target

June 2013 Actual

Effective and efficient financial management

Ensure effective financial management

12 Reconciled Cashbooks

Monthly reconciliation of the cash book.

The cash book is reconciled monthly

12 Reconciled Cashbooks

Could close of the cash books correctly for the whole year

12 Reconciled Cashbooks.

Cashbooks have been close off

The cashbooks have been closed off.



12 Sets of monthly S71 reports reported to PT and NT

Monthly S71 reports prepared , presented and uploaded.

Old format Monthly S71 prepared.

Did not performed

S71 reports were not prepared timeously and in correct format

12 Sets of monthly S71 reports reported to PT and NT

The section 71 reports have been performed and upload to PT and NT

Section 71

reports have been prepared.

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Annual Target Measurement Source

Baseline

Targets Snapshot Analysis

Reasons for Variance


Target June 2012


June 2013 Actual



1 MFMA S72

Report

Section 72 Report

None Section 72 Report

Could not developed a section 72 report

1 MFMA S72

Report

Section 72 Report has been developed and tabled to council

Effective financial management and budgeting

Ensure financial management and budgeting

Council approved Budget schedule of key deadlines

Approve budget deadlines - by Council.

None Council approved Budget schedule of key deadlines

Council approve Budget schedule of key deadline late

Council approved Budget schedule of key deadlines

Council has approve schedule of key deadlines by 31 August 2012



1Council approved draft 2014 Budget by 31 March 2013

1 Draft budget approved by Council

Draft budget Draft budget Draft budget 1Council approved draft 2014 Budget by 31 March 2013

Council has approved the 2014 Draft budget

Council has approved

the 2014 Draft budget at Council meeting of March 2013



1Council approved final 2014 Budget by 31 May 2013

1 Final Budget for 2014

Budget of 2013


1Council approved final 2012Budget by 31 May 2011, but it was not credible.


Council has approved the 2014 budget

Council has approved the 2014budget at Council meeting of May 2013

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments / Corrective Action

Annual Target June 2012


June 2013 Actual



6 Meetings of Budget steering Committee

The no. of Budget Steering Committee meetings held.

The Budget process

taking place as planned.

To establish a budget steering committee

Established a budget steering

committee,, but it was

not functional

6 Meetings of Budget steering Committee

IDP and Budget steering committee met

IDP and Budget

steering committee sat before the draft and final budgets have been approved by council

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Strategic Objective

(IDP)


Annual Target

Measurement Source

Baseline


Reasons for

Variance


Target June 2012


June 2013 Actual


Ensure financial

management and budgeting

To review at least the SCM and Asset MNG policy

Reviewed SCM and Asset Mng

policy


policy

Reviewed all Finance policies

Could not be achieved


policy

SCM and Asset Mng policies have been reviewed and taken to council for approval

Effective and efficient asset management

Ensure effective and efficient asset management

processes and systems

Provide training to asset management staff

Asset Management

Officer to attend training

To provide training to Asset Management Officer by training institution

To provide training to finance staff

Could not provide

training as planned due

to budget constrains

Provide training to asset management staff

The Asset Management officer is attending training to meet competency level requirements

The Asset Management

Officer is attending training.



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Strategic Objective

(IDP)


Annual Target

Measurement Source

Baseline


Reasons for

Variance


Target June 2012


June 2013 Actual




To perform half year asset count of loose and movable assets

Count sheets None To count loose and movable assets

Could not performed it due to staff

skill limitation

Half year asset count of loose and movable assets

The asset count and verification of assets have been performed.

The asset count and

verification of assets have been performed.




Updated GRAP compliant register with AFS of 2013

GRAP compliant asset register

Asset Register

To developed a GRAP compliant Asset Register

Could not developed a fully GRAP compliant

asset register due

to skills shortage

An updated GRAP compliant register with AFS of 2013

GRAP compliant asset register has been developed and presented for auditing




A new additions assets register

The new additions register is

maintained and updated

None A new additions assets register

The new additions register is maintained with all new assets purchase during 2013.

The new additions

register is maintained with all new assets purchase during 2013.

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Strategic Objective

(IDP)


Annual Target

Measurement Source

Baseline

Targets

Snapshot Analysis

Reasons for

Variance



June 2012

Actual

Annual Target

June 2013 Actual

Effective and efficient expenditure management

Ensure effective and

efficient expenditure

management

Salary control reconciliation with ledger vote

Reviewed and signed of salary

reconciliation

None Salary control reconciliation with ledger vote

The salary reconciliations has been performed.

The salary

reconciliations has been performed.




management

12 Monthly PV02 reports to balance with creditors control vote

Reconciling outstanding creditors list

(PV02 Reports) to creditors

control ledger vote

None 12 Monthly PV02 reports to balance with creditors control vote

Everything possible is done to pay all creditors within 30 days.

Everything

possible is done to pay all creditors within 30 days.




management

Monthly Reviewed and Signed off of complete monthly payment files

Ensure that all payment

vouchers are in payment files

None Monthly Reviewed and Signed off of complete monthly payment files

All payment voucher files were reviewed to ensure completeness of files.

All payment

voucher files were reviewed to ensure completeness of files.

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Strategic Objective

(IDP)


Annual Target

Measurement Source

Baseline


Reasons for

Variance



June 2012 Actual

Annual Target

June 2013 Actual

Effective and efficient ICT management

Ensure effective and efficient ICT management

To have a council resolution for MOU with USASSA - ICT Strategy.

Having an council adopted ICT Strategy.

Effective ICT management system not in place.

N/A N/A To have a council resolution for MOU with USASSA - ICT Strategy.

MOU with USASSA was approved by Council

Partially

achieved as only a draft ICT strategy was developed

Effective and efficient revenue management


efficient revenue collection

Improve revenue collection rate to 20 %.

Ensure that all consumers on the financial system are

billed.

15 % Revenue Collection

An annual target of 80%

A 15% collection rate has

been achieved

Improve revenue collection rate to 20 %

All consumers are billed. No progress on street naming to ensure proper addresses system to deliver accounts.

A revenue

collection rate of 22% has been achieved

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Strategic Objective

(IDP)


Annual Target

Measurement Source

Baseline


Reasons for

Variance



June 2012 Actual

Annual Target

June 2013 Actual




Debtors data cleansing

Having a reliable, up to date Debtor's System - showing all current deptors accounts and related information.

Working with the available debtor's information as a base.

N/A N/A Debtors data cleansing

Debtors data cleansing project has ceased due to alleged claims of a service provider. Will be undertaken in 13/14.

Could not

performed data cleansing project due to a service provider claimed to have performed the task.




A hall deposits register that reconcile to general ledger vote.

Maintain hall deposit register

None N/A N/A A hall deposits register that reconcile to general ledger vote.

The hall deposit registers are developed and maintained

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Strategic Objective

(IDP)


Annual Target

Measurement Source

Baseline


Reasons for

Variance




June 2013 Actual




12 Monthly reconciliation of billing system to general ledger votes

Billing system reconciling to general ledger

votes

3 Reconciliation reports


12 Billings have been

performed but it did not

reconciled to GL votes


The Billing system is reconciling to general ledger votes have been performed

Compliance to legislation

To ensure adherence to

legislation

1 Set of audited annual

financial statements

Having a complete set of audited Financial Statements by the end of the financial year.

AFS be prepared according to and in adherence to all relevant legislation.

1 Set of audited annual financial

statements

The 2012 AFS has been

submitted to AG on 25

September 20132

1 Set of audited annual

financial statements

The 2013 AFS has been submitted to AG on 31 Auguster 2013.

The 2013 AFS

has been submitted to AG within the correct legislative time frame.

Compliance to legislation

To ensure adherence to

legislation

Audit action plan for 2012 audit report

Reported progress on audit action

plan implementation

Report on progress Action plan implementation

To implement 100 % of audit action plan implementation.

56% progress on audit action

plan implementation

has been achieved

Audit action plan for 2012 audit report

56% progress on audit action

plan implementation

has been achieved

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KPA 5: Good Governance and Public Participation

Strategic Objective

(IDP)

Indicator of Performanc

e Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comment

s / Corrective

Action

Annual Target

June 2012 Actual


Actual

Stakeholder Consultation and community participation

Ensuring that the community participation programmes are planned, budgeted for, implemented, monitored and reported as per Community Participation Programme Public Participation Plan (R 1,5 Mil ) All Wards

16 Public Participation outreaches /develop schedule/programme/ outreaches in all 17 wards /report on Imbizo’s

Community Participation Programme

Community Participatio

n to be increased

Implementation (outreach /Imbizo’s) & reporting

Achieved. Participation outreachesin 17 wards x 2 visits – consultation budget and IDP. Public Participation Forum in ward 17. One public participation forum for all wards held in ward 6 – dealt with IDP projects – goals and implementation of IDP

16 Public Participation outreaches /develop schedule/programme/ outreaches in all 17 wards /report on Imbizo’s

Partially Achieved

All s57 managers are expected to attend outreach / Imbizo’s meetings

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual


Maintenance of sound relationships with organized business and civil society All Wards

Mayoral business forum established /6 business forum meetings

Quarterly meetings / Reporting

business forum

established / meetings did

not take place

(6 business forum meetings meeting)/ reporting to council

Target not fully

Achieved 3 x Business

Forum meetings

held in :Lady Frere Dordrecht and Indwe- Mayor and EXCO met

with business

community. Ratepayers meeting with Mayor MM and EXCO

for Lady Frere

Mayoral business forum established /6 business forum meetings

6 business

forum meetings (3 in Q1 & 1 in Q2;1in Q3;1

in Q4)

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance



June 2012 Actual Annual Target June 2013

Actual


Ward Committee Structures functional & operating as

scheduled/All Wards

Ward Committee Structures functional & operating

Ward Committee participation in council : Support provision / Items from WC to be tabled at SC meetings / Reporting

Operating Ward Committee structures/Items from WC to be tabled at SC Meetings

Ward participation /Items from ward committee tabled at SC Meetings

Achieved. Ward Committee Induction and Training held – September 2011 – Monthly meetings and submission of reports by Ward Committees. Quarterly meeting in 2012 held with all ward committee members and CDW’s and ward councillors – co ordinate by Office of the Speaker.

Ward Committee Structures functional & operating

Partially Achieved

New Target

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual


Ward Committee Structures functional & operating as scheduled/Induction & Training of councillors R 600 000& attendance of ward meetings R 2,040 000 (out of pocket expenses for ward councillors)

All Wards

100% Ward Committee Structures functional & operating / (4) Reports

Quarterly Reports on Ward Committee Structures & training implemented (programmes / expenditure reports)

Operating Ward Committee structures

1 Quarterly Reports on Ward Committee Structures & training implemented (programmes / expenditure reports)

Achieved 100% Ward Committee Structures functional & operating / (4) Reports

Partially Achieved

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

IDP : Compliance with Municipal legislation / Improving IDP processes & strengthening public participation

IDP reviewed and updated and inclusive of community participation outcomes. IDP Process Plan adopted

All Wards

Establish initial planning for the development of new 5 year IDP / Process Plan 100%

Reviewed and adopted IDP Process Plan (new 5 year Plan)

IDP reviewed annually

Implementation / Community and Department meetings as scheduled

Achieved Establish initial planning for the development of new 5 year IDP / Process Plan 100%

Achieved

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective


June 2012 Actual

Annual Target

June 2013 Actual

Organizational Strategic Plan review & aligned to reviewed IDP (new strategic plan /aligned to new IDP (new council )

Strategic Plan reviewed and updated & aligned to reviewed IDP by June 2012

All Wards

reviewed and update Strategic Plan by June 2012

Reviewed and adopted Strategic Plan aligned to reviewed IDP

Strategic Plan to be reviewed

Consult stakeholders/Strategic Planning sessions held /Strategic Plan developed

Achieved. Strategic Planning per department done. Strategic plan developed Strategic sessions per department held in Indwe

Reviewed and update Strategic Plan as per the IDP objectives.

Achieved

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Strategic Objective

(IDP)


Annual Target

Measurement Source



Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Functioning Audit Unit to ensure a fully audited and legislatively compliant organization

Strategic management of audit unit to achieve clean audits received Audit reports Investor confidence improved Development of Risk Management Report

ELM

Report / Audit committee, Internal audit Programme, 2 meetings per quarter / Risk based Audit Plan & Audit Reports in place

Audit Report as scheduled Risk Management Report

Internal Auditor appointed and Audit Committee established (shared function)

Audit Reports & meetings & external auditor liaison (All managers to attend 2 meetings per quarter)

Achieved 2 months after target date Audit Committee functioning – new members interviewed and appointments made effective 30 August 2012.

Report / Audit committee, Internal audit Programme, 2 meetings per quarter / Risk based Audit Plan & Audit Reports in place

Achieved

Audit Chair attended quarterly meetings and presented Audit Committee report to Council IA – amendment to Organogram to allow for IA Manager post. MPAC committee appointed as sec 79 committee and training done in house – by SALGA and by DHLGTA – Terms of reference amended and adopted Oversight report done. Meeting a schedule monthly meetings adopted by Council.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Compliance with MFMA : S46 Performance Report (Financial component ) included co - ordinated service providers report (progress per service provider per tender awarded plus service providers progress and project payment progress

Submission of s46 Report to Council and National Treasury by 31 August Report to form part of Annual Report All departmental inputs

ELM

100% / 1st draft of s46 performance report to be completed /approved by MM & presented to the office of the AG by 31 August

Timeously submitted report Council resolution

Annually - Ongoing

s46 report /1st draft 31 August 2012 for AG Office / Process amendments as required by AG & Finalize by inclusion of 1st draft of the Annual report to be available to AG by 31 October 2012

Not required to be achieved by 30 June 2012 target set for 31 August 2012 nothwitstanding Not Achieved by 31 August / extension provided by AG to 20 Sept 2012

100% / 1st draft of s46 performance report to be completed /approved by MM & presented to the office of the AG by 31 August

Achieved

Draft Report was submitted to the AG.

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Strategic Objective

(IDP)


Annual Target

Measurement Source



Variance



June 2012 Actual

Annual Target

June 2013 Actual

Compliance with Municipal legislation /MFMA : Annual report ; Establishment of MPAC Committee / Workshop MPAC Committee / deliberate on Audit findings & AR/ Adoption of Oversight Report

Establishment of a Functional MPAC /workshop committee (if deemed necessary ) oversight committee established / Deliberation on AG outcomes & AR by MPAC / Oversight Committee/table & adoption of Oversight report

ELM

Oversight & final Annual Report Tabled to council for adoption/ 100%/ compliance reporting /submission

MPAC committee meetings /Adopted Oversight Report and Annual Report

AR adopted / Oversight /MPAC Committee established /report completed annually/ adopted

MPAC Committee workshopped if deemed necessary / MPAC Committee to deliberate on Audit findings 2 meetings

MPAC Committee established and workshopped Oversight assessment done by MPAC – 4 x meetings held – Lady Frere – Dordrecht – Indwe – Lady frère – Council workshopped and MPAC presented Oversight report and adopted 30 March 2012

Oversight & final Annual Report Tabled to council for adoption/ 100%/ compliance reporting /submission

Partially Achieved

MPAC AR implementation plan submitted to management for adoption.

Draft Report has been

submitted.

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Strategic Objective

(IDP)


Annual Target Measurement

Source Baseline



General Comments

/ Corrective

Action

Annual Target

June 2012 Actual Annual Target June 2013

Actual

Institutional meetings held in manner required in terms of legislative compliance

Council Meetings held according to schedule

ELM

Provision of Agendas within 7 working days of Council Meeting / 4 council meetings held per quarter as scheduled/report on special council meetings held

Agendas provided to councillors within 7 working days of Council Meeting / 4 council meetings held per quarter as scheduled / Meeting Agenda and Minutes

Updated meeting schedules annually, and lack of cooperation from municipal officials re - implementation of resolutions timeously

1 council meeting held per quarter /Meeting Agenda delivered within 7 working days to councillors / Minutes of council meetings

Achieved Exco 5-12-11 & 4-11-11 Council calendar adopted for standing committee and council 7 meetings held (27/11/2011, 23/1/2012, 31/1/2012, 30/3/2012, 13/4/2012, 28/5/2012, 22/6/2012) Council agendas still not prepared 7 days before but progress made in planning and amending rules of order to achieve this.

Provision of Agendas within 7 working days of Council Meeting / 4 council meetings held per quarter as scheduled/report on special council meetings held

? Meetings over achieved. Variance of agenda items not delivered within 7 days -Beyond control CSM - Speaker and Mayor not available for agenda items - therefore timeframes affected. Focus not be on number of meetings but on implementation of resolutions


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Annual Target

Measurement Source

Baseline

Targets

Snapshot Analysis

Reasons for

Variance

General

Comment

s / Corrective Actio

n

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual


Departmental Standing Committee Meetings held according to schedule

ELM

100% - attendance at Standing committee meetings held per quarter as scheduled

Attendance of Standing Committee meetings /schedule/minutes agendas

Standing Committee meetings attended to as scheduled

100% - attendance at Standing committee meetings held per quarter as scheduled

(Bi monthly ) 1 meetings held per quarter /Meeting Agenda and Minutes

Bi monthly standing SC meetings held Governance S/C 6-12-11 & 12-10-11 Infrastructure S/C 9-11-11 Finance S/C 19-10-11 Community Services S/C 25-10-11 & 6-12-11 & 40=-10-11 IPED S/C 11-10-11. Calendar of meetings adopted by council and implemented – each committee functioning and agendas and minutes kept and submitted to EXCO - Exco 5-12-11 & 4-11-11. Meetings are postponed due to Standing Committee Councillors not being available - no quorum/s.

?

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Strategic Objective

(IDP)


Annual Target

Measurement Source



Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual


Management Meetings attended (x11 meetings) (s57 Management meetings)

ELM

100% - 11 Management Meetings attended (s57 Management meetings)

Meeting Agenda and Minutes

Monthly management occur

X 11 Management Meetings attended as scheduled

Management meetings held each Monday of the week/ Management 7-12-11, 13-12-11 (dates as provided)

100% - 11 Management Meetings attended (s57 Management meetings)

? Management attempt to meet once weekly to ensure continuity and briefing /note evidence of dates will be required to validate evidence

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Updating and development of Municipal By-Laws

Strategic oversight to ensure By-Laws Analysis Report Implementation Strategy and plan to update By-laws

ELM

100% as per planned scheduled & by laws identified

Adopted By-Laws as per plan

By-Laws exist but require updating/ formulation

Develop /review By laws identified

By Laws submitted to SALGA and DPLGTA and assistance requested – matter still pended awaiting feedback

100% as per planned scheduled & by laws identified

? s57 Managers will be responsible with the assistance from DPLG & SALGA to Develop /review By laws identified in their respective Departments once DPLG & SALGA have completed the assessment

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Strategic Objective

(IDP)


Annual Target Measurement

Source Baseline





June 2012 Actual


Actual

Effective Communication

Launch of Local Communication Forum

ELM

4 meetings of Local Communication Forum

Minutes of Forum Launch /attendance registers / minutes meetings

No Communication forum

1 Quarterly forum meetings

No communication forum launched

4 meetings of Local Communication Forum

Not Achieved

Generally there is a problem to get all departments to attend when asked to.

Going forward, CDW’s and ward committee secretaries will be involved. We intend to also involve IGR forum.

Effective Communication

Review of Communication Strategy.

Communications Strategy Framework Reviewed

Communication strategy Approved

Communication strategy required to be reviewed

Consultation Achieved Communications Strategy Framework Reviewed

Partially Achieved

During 2013/2014 Communication strategy will be reviewed and presented for adoption.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Enhancing Public Participation

No of Mayoral Outreach programmes held

Full implementation of the Public Participation Framework by 30 June 2013

4 To ensure maximum participation of stakeholders in the planning and service delivery implementation processes

Full implementation of the Public Participation Framework by 30 June 2013

Mayoral outreach convened

Achieved. Road shows were conducted for the presentation of the draft IDP and Budget 2013/2014

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Use of media as a

tool to inform local communities

about the municipal programs

and actives.

Number Talk Shows held

Organise Talk Show programmes on service delivery matters by 30 June 2013

Talk Show programmes for all municipal activities.

Radio talk show

Talk Show programmes for all municipal activities.

Talk Show programmes are conducted. Impact assessment of the programmes is conducted

Achieved.

Mayor presented the annual report for 11/12. Talk shows on IDP, Water, Mayoral Cup were done through Vukani Community Radio.

Training for Political office bearers and ward committees

Completed training for Political Office Bearers and Ward Committees

Number of training being conducted

Improve Public Participation

Number of training being conducted

Close programme and compile report

Achieved.

Training of councillor is on-going.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance



June 2012 Actual

Annual Target

June 2013 Actual

Capacity building for

ward committees

Budget provision for out of pocket expenses.

4 quarterly meetings of Ward Committees convened by 30 June 2013

Number of Ward Committee Meetings attended

Provision for Ward Committee Out-of Pocket expenses

4 quarterly meetings of Ward Committees convened by 30 June 2013

4 meetings held

Achieved.

Meetings held at ward level. Reports were submitted.

Training Ward Committees

Capacitating of Ward Committees by 30 June 2013

Number of training conducted

Ward Committee

Capacitating of Ward Committees by 30 June 2013

Assess and compile report of training done

Achieved.

Secretaries of Ward Committees were trained on Report writing.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Implementation of the special programs

Number of wards profiled and submitted to the office of the SPU. Revived structure of people living with disabilities.

1 socio-economic profile for people with disabilities document submitted to council by June 2013. Revived and functional structure.

17 wards profiled. General meeting convened.

Revival of disabled structure and compilation of their database

1 socio-economic profile for people with disabilities document submitted to council by June 2013. Revived and functional structure.

Final document tabled to council by 30 June 2013. Program for the disabled tabled to council.

Achieved.

Report not submitted to Council

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Implementation of special programs

Field band project has been piloted at Indwe and Dordrecht

4 progress reports

Quarterly Progress reports on the implementation of programs.

Support of youth development programs

4 progress reports

4 progress report

Achieved.

Annual plan submitted. 4 progress report submitted.

Mayoral Cup Tournament

1 Mayoral Cup Tournament played by June 2013

Mayoral Cup Concept document.

Support of development in sport

1 Mayoral Cup Tournament played by June 2013

Cup finals played. Evaluation meeting held. Compilation of the report.

Achieved. Games were played and awards made.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual


Actual

Implementation of special programs

A developed strategic plan

Strategic Plan to have been developed and tabled to council by June 2013

1 Support ELM Women’s Forum

Strategic Plan to have been developed and tabled to council by June 2013

Table the strategy to council for adoption.

A decision was made to start with training and induction.

Not achieved.

A revised youth development strategy

revised Youth Development strategy adopted by council by June 2013

1 Support of Youth Development Programs

revised Youth Development strategy adopted by council by June 2013

Table the reviewed strategy to council for adoption

Still to be discussed during the AGM.

Not achieved.

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Strategic Objective

(IDP)


Annual Target

Measurement Source


Analysis

Reasons for

Variance

General Comments

/ Corrective

Action

Annual Target

June 2012 Actual

Annual Target

June 2013 Actual

Branding of the Municipality and marketing

Communication and Marketing Strategy implemented

Full implementation of the Communication and Marketing Strategy by June 2013

Branding material procured. Functional municipal website.

Revision of the communication strategy such that it includes the marketing of the municipality

Full implementation of the Communication and Marketing Strategy by June 2013

Not Achieved.

Institutional bouorocracy impedes the plans and programs.

Not achieved.

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KPA5 : GOOD GOVERNANCE AND PUBLIC PARTICIPATION

Strategic Objective

(IDP)

Indicator of Performanc

e

Annual Target

Measurement Source

Baseline


Reasons for

Variance

General Comments /

Corrective Action Annual Target June 2012


June 2013

Actual

Mainstreaming of Special programmes into the municipal environment (Effective participation of designated groups in municipal development programmes )

Management, monitoring & oversight on implementation of projects for special programmes as per IDP/ SDBIP (related to women, elderly,youth & disabled) /youth development R300 000, Band project R 400 000, Mayoral Cup R 320 000, Women’s Forum revival R 150 000 ,Elderly R 60 000 , Wellness R 50 000 All Wards

Oversight on implementation of SPU Plans & Projects / monitoring effective participation of designated groups in municipal development programmes /Progress identified and implementation in terms of plan for SPU programmes (Mainstreaming )of HIV/Aids , Women, elderly and Youth

Special Programme Development Plans and Related Project Progress Reports Functioning Local Aids Committee Minutes of meetings, ELM Mainstreaming Strategy

No policy/strategy identified SPU programmes and implementation plans for SPU Programmes

Quarterly Progress reports participation of designated groups in municipal development programmes/Progress identified and implementation in terms of plan for SPU programmes (youth development plan)

Achieved. Meeting & updating Mayor/ Concept documents in place 16 days of Activism / Mayoral Cup - Plan Committee in place - presentations prepared to SC / Preparing Mayoral Indaba /The Field Band Experience

Oversight on implementation of SPU Plans & Projects / monitoring effective participation of designated groups in municipal development programmes

Achieved.

The municipality

run various training programmes for women, elderly, youth and disabled people. Many events for SPU’s were run and a lot of expenditure incurred on these programs. The municipality forged a partnership with Discovery Health for hosting wellness program for councillors, officials and community members.

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KPA5 : GOOD GOVERNANCE AND PUBLIC PARTICIPATION

Strategic Objective

(IDP)


Annual Target

Measurement Source

Baseline Targets

Snapshot Analysis

Reasons for

Variance


Target June 2012


June 2013 Actual

Curb and reduce the spread of HIV/Aids by 2014 & to mainstream & implement internal Special programmes related to HIV /AIDS into the municipal environment with effective participation of designated groups in municipal programmes )

Management ,monitoring & oversight on implementation of projects for special programmes as per IDP/ SDBIP (related to HIV/AIDS )To curb and reduce the spread of HIV/Aids by

2014 :All Wards

Oversight on implementation of systems /structures to formally manage mainstreaming of HIV /AIDS programmes / monitoring effective participation of designated groups in municipal programmes /Report on Progress of Mainstreaming of HIV/Aids

TOR for Interdepartmental forum /nominated forum (IDF) representatives /literature reviews , Consultation with IDF & stakeholders/Meeting attendance & minutes / progress reports

HIV prevalence % unknown/ no established structures to drive HIV/AIDS

Develop TOR & Training of IDF

IDF established /IDF meetings: peer educators trained

Establish structures to formally manage mainstreaming of HIV /AIDS programmes

Achieved

Peer Educators

Committee was established during the year in review. Local HIV and Aids council is up and running. It is to be noted that funding of these programs needs to be addressed through proper budgeting.

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CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE

(PERFORMANCE REPORT PART II)

INTRODUCTION

The Organizational Development Section is a key transformation agent dealing with the

structure of the Municipality to ensure that it remains aligned to its strategy, job evaluation

process and change management philosophy. Organisational Development is placed as a

separate section in the Human Resources Department.

T 4.0.1

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL

4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES

Employees (T4.1.1)

Description

Year -1 2012/2013

Employees No.

Approved Posts No.

Employees No.

Vacancies No.

Vacancies

Amenities 1 1 1 0 0%

Arts and Culcure 1 1 1 0 0%

Electricity 1 1 1 0 0%

Environmental Services 1 1 1 0 0%

Health 1 1 1 0 0%

Housing 1 1 1 0 0%

Local Economic Development 1 1 1 0 0%

Public Safety 1 1 1 0 0%

Roads 1 1 1 0 0% Solid Waste Management Services 1 1 1 0 0%

Transport 1 1 1 0 0%

Waste Water (Sanitation) 1 1 1 0 0%

Water 1 1 1 0 0%

Other 1 1 1 0 0%

Total 14 14 14 0 0%

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Vacancy Rate : Year 2012-2013 (T 4.1.2)

Description Total Approved

Posts No.

Vacancies (Total Time vacancies exist using fulltime equivalents)

No.

Vacancies (as a proportion of total

posts in each category) %

Municipal Manager 1 1 100%

CFO 1 1 100%

Other S57 Managers (excl Finance Posts) 1 1 100%

Other S57 Managers (Finance Posts) 1 1 100%

Law Enforcement 1 1 100%

Fire Fighters 1 1 100%

Senior Management Level (excl Finanace Posts) 1 1 100%

Senior Management Level (Finanace Posts) 1 1 100%

Highly Skilled Supervisors (excluding Finanace Posts) 1 1 100%

Highly Skilled Supervisors (Finanace Posts) 1 1 100%

Other 1 1 100%

Other 1 1 100%

Total 12 12 100%

Turn-over Rate

Details

Total Appointments as of beginning of Financial

Year

Terminations during the Financial Year

Turn-over Rate*

No. No.

2010/2011 1 1 1%

2011/2012 1 1 1%

2012/2013 1 1 1%

* 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

COMMENT ON VACANCIES AND TURNOVER:

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ELM is undergoing an overview of municipal programs, roles and responsibilities, linking them

to departmental mandates and function. This is done in order to allocate appropriate human

resources so as to achieve service delivery targets.

The Human Resource Department has advertised a number of funded vacancies and these

will be filled as per the requirement of the municipality.

T 4.1.4

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT

Note: MSA 2000 S67 requires municipalities to develop and adopt appropriate systems and

procedures to ensure fair; efficient; effective; and transparent personnel administration in

accordance with the Employment Equity Act 1998.

Workforce management is a core function of each line manager in ELM. In order to ensure

reasonable standardisation and consistency in the handling of the workforce, staff policies;

procedures; and conditions of service are developed at a central level and are then

implemented by line management.

Conditions of service of senior managers are based up on the regulations promulgated by the

Minister of Cooperative Governance and approved by Council.

Conditions of service of staff below senior management level are negotiated at a central level

by the National and Provincial divisions of the South African Local Government Bargaining

Council (SALGBC) and, where relevant, at a local level between management and the

representative unions SAMWU and IMATU.

In addition to the above, a wide range of policies, procedures and directives are approved by

relevant approval authorities after due consultation with stakeholders such as Council, the

Municipal Manager and Senior Management. Such policies, procedures and directives are then

circulated to all staff for implementation and compliance.

Policies, procedures and directives are revised as the need arises.

T 4.2.0

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4.2 POLICIES

HR Policies and Plans

Name of Policy Completed Reviewed % %

1 Affirmative Action 100.00 In review process

2 Attraction and Retention 100.00 In review process

3 Code of Conduct for employees 100.00 In review process

4 Delegations, Authorisation & Responsibility 100.00 In review process

5 Disciplinary Code and Procedures 100.00 In review process

6 Essential Services 0.00 In review process

7 Employee Assistance / Wellness 100.00 In review process

8 Employment Equity 100.00 In review process

9 Exit Management 100.00 In review process

10 Grievance Procedures 100.00 In review process

11 HIV/Aids 100.00 In review process

12 Human Resource and Development 80.00 In review process

13 Information Technology 100.00 In review process

14 Job Evaluation 100.00 In review process

15 Leave 100.00 In review process

16 Occupational Health and Safety 100.00 In review process

17 Official Housing 100.00 In review process

18 Travelling and Subsistence Allowance 100.00 In review process

19 Official transport to attend Funerals 100.00 In review process

20 Official Working Hours and Overtime 100.00 In review process

21 Organisational Rights 100.00 In review process

22 Payroll Deductions 100.00 In review process

23 Performance Management & Development 100.00 In review process

24 Recruitment, Selection and Appointments 100.00 In review process

25 Remuneration Scales and Allowances 100.00 In review process

26 Resettlement 0.00 In review process

27 Sexual Harassment 100.00 In review process

28 Skills Development 100.00 In review process

29 Smoking 100.00 In review process

30 Scarce Skills 100.00 In review process

31 Work Organisation 100.00 In review process

32 Uniforms and Protective Clothing 100.00 In review process

33 Other: 0.00

Use name of local policies if different from above and at any other HR policies not listed.

COMMENT ON WORKFORCE POLICY DEVELOPMENT:

ELM has a well-developed staff policy framework. The finalisation of the Human Resource

Development Policy will close a major gap which currently exists in the organisation. This policy

has been drafted and is under consultation with the stakeholders.

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On a broad level, ELM is undergoing a process of reviewing all policies to ensure that they are

relevant and up to date.

T 4.2.1.1

4.3 INJURIES, SICKNESS AND SUSPENSIONS

Number and Cost of Injuries on Duty

Type of Injury

Injury Leave Taken Days

Employees using injury leave No.

Proportion of employees using sick

leave %

Average Injury Leave per employee

Days

Total Estimated

Costs R'000

Required basic medical attention only 1 1 1 1 1

Temporary total disablement 1 1 1 1 1

Permanent disablement 1 1 1 1 1

Fatal 1 1 1 1 1

Total 4 4 4 4 4

During the year under review, there were no permanent disablements or fatalities.

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 %[1] No. No. Days R' 000

Lower skilled (Levels 1-2) 1 1 1 1 1 1

Skilled (Levels 3-5) 1 1 1 1 1 1

Highly skilled production (levels 6-8)

1 1 1 1 1 1

Highly skilled supervision (levels 9-12)

1 1 1 1 1 1

Senior management (Levels 13-15)

1 1 1 1 1 1

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MM and S57 1 1 1 1 1 1

Total 6 6 6 6 6 6

* - Number of employees in post at the beginning of the year

T 4.3.2 *Average is calculated by taking sick leave in column 2 divided by total employees in column 5

T 4.3.3

COMMENT ON INJURY AND SICK LEAVE:

ELM has an approved Employee Relations Policy which contains, inter alia, an absenteeism

policy aimed at controlling and reducing sick leave.

In order to better manage absenteeism in the workplace, ELM has initiated an absenteeism

reduction project in cooperation with relevant stakeholders, such as the unions. This will result

in further strategies being developed and implemented to curb absenteeism.

Injuries on duty have also proven to be a challenge: ELM has an injury rate which is slightly

above the norm. As a result, a safety plan needs to be implemented and its impact monitored.

Further steps to increase safety across the organisation are required to be taken via the

monthly safety committee under the stewardship of Corporate Services.

T 4.3.4

NUMBER AND PERIOD OF SUSPENTION: Table or Graph (based on available information.

DISCIPLINARY ACTION TAKEN ON CASES OF FINANCIAL MISCONDUCT: Table or Graph

(based on available information.

COMMENT ON SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT

T 4.3.7

ELM has set strict standards for disciplinary action to be taken in all cases of serious

misconduct. Where such serious misconduct is identified, accused staff members are

suspended on a precautionary basis.

However, ELM faces challenges in effecting speedy resolution of such cases. As a result,

extended suspensions periods – beyond the 3 month limit which has been set – are

experienced. The reasons for the challenges are summarised as follows:

In certain instances, the time-limits set in the disciplinary code are unreasonable.

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The disciplinary code contains complex procedures and stipulations, which

unnecessarily complicate and delay disciplinary actions.

In many cases continuous delays are caused by the affected parties’ non-availability,

slow response to requests for disclosure of information and doctors certificates not

being presented when required.

There is also a general non- adherence by parties to the established time limits.

Notwithstanding the above, steps have been taken to address these challenges. An employee

relations improvement project is to be implemented in the 2013/2014 financial year to support

Labour Relations capacity and address the challenges.

T 4.3.7

4.4 PERFORMANCE REWARDS

Expenditure on

rewards Year 1

Proportion of

beneficiaries within

group

R' 000 %

Female 0 0 0 0%

Male 0 0 0 0%

Female 0 0 0 0%

Male 0 0 0 0%

Female 0 0 0 0%

Male 0 0 0 0%

Female 0 0 0 0%

Male 0 0 0 0%

Female 0 0 0 0%

Male 0 0 0 0%

Female

Male

Yes/No

T 4.4.1

Note: MSA 2000 S51(d) requires that … ‘performance plans, on which rewards are based should be aligned with

the IDP’… (IDP objectives and targets are set out in Chapter 3) and that Service Delivery and Budget

Implementation Plans (developed under MFMA S69 and Circular 13) should be consistent with the higher level

IDP targets and must be incorporated appropriately in personal performance agreements as the basis of

performance rewards. Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as

well as in the numbers at the right hand side of the column (as illustrated above).

Highly skilled production (levels 6-8)

Performance Rewards By Gender

Lower skilled (Levels 1-2)

Skilled (Levels 3-5)

Beneficiary profile

Gender

Designations

Total number

of employees

in group

Number of

beneficiaries

Highly skilled supervision (levels 9-12)

Senior management (Levels 13-15)

MM and S57

Total

Has the statutory municipal calculator been used as part of the evaluation process ?

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COMMENT ON PERFORMANCE REWARDS:

The Employee Performance Management and Development System is due to be rolled out in

2013/2014.

An Employee Performance Management System (EPMS) is in place for Senior Managers

(Municipal Manager and S57 Managers). No performance rewards have been issued to any

staff for the past financial year.

T 4.4.1.1

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COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT

Note: MSA 2000 S68 (1) requires municipalities to develop their human resource capacity to a

level that enables them to perform their functions and exercise their powers in an economical,

effective, efficient and accountable way.

ELM develops and implements a workplace skills plan (WSP) on an annual basis. This is based

on the capacity-building and development needs identified by staff and managers, and is then

effected via a training plan.

Although the above needs are identified by line managers and staff, the alignment of such

needs with formal capacity development needs, identified in terms of the performance

management system, is lacking. This challenge is being addressed by the implementation of

an EMPS and alignment with identified capacity gaps and interventions which are then

contained in individual staff members’ personal development plans (pdp’s).

T 4.5.0

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4.5 SKILLS DEVELOPMENT AND TRAINING

Skills Matrix Management level Gender Employees

in post as at 30 June

2013

Number of skilled employees required and actual as at 30 June 2013

Learnerships Skills programmes & other short courses

Other forms of training Total

No.

Actual: End of 2011/12


2012/13 Target



2012/13 Target



2012/13 Target



2012/13 Target

MM and s57 Female 2 0 0 1 0 0 1 1

Male 6 0 0 2 0 0 2 2

Councillors, senior officials and managers

Female 18 0 0 4 0 0 4 4

Male 24 0 0 8 0 0 8 8

Technicians and associate professionals*

Female 14 0 0 6 0 0 6 6

Male 18 0 0 7 0 0 7 7

Professionals Female 40 0 0 11 0 0 11 11

Male 105 0 0 6 0 0 6 6

Sub total Female 74 0 0 22 0 0 22 22

Male 153 0 0 23 0 0 23 23

Total 227 0 0 0 0 0 0 0 45 0 0 45 45

*Registered with professional Associate Body T 4.5.1

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COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE

FINANCIAL COMPETENCY REGULATIONS:

Although the implementation of training at ELM is adequate, it requires a more focused

approach, as previously set out. For the year under review, funding provided for capacity

building was R520,000 is set to increase between R750,000 and R850,000 in 2013/2014 FY.

The MFMA competency regulation requires that steps are taken to ensure that Senior

Managers meet competency requirements. The Municipal Manager and all S57 managers

have to achieve the necessary competencies. All other targeted staff are also required to meet

the qualification standards.

T 4.5.4

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE

INTRODUCTION TO WORKFORCE EXPENDITURE

Employee expenditure is closely monitored and controlled each month by the respective line

managers. The Budget office submits monthly reports on any over- or under-expenditure and

line managers are required to take the necessary corrective actions in order to comply with the

amounts that are on the budget.

The Municipality seeks to obtain value for money from its workforce expenditure through

various initiatives, such as: the Absenteeism Reduction Policy. Line managers are required to

ensure that employees are productive. The implementation of the Employee Performance

Management System will assist with this. In addition to the above procedures, when a vacancy

arises, line managers are required to motivate the reasons for the post to again be filled.

T 4.6.0

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4.6 EMPLOYEE EXPENDITURE

Actual exp R x,xxx,xxx R 7,066,183 R 8,026,348

2010/11 2011/12 2012/13

Source: MBRR SA22 T 4.6

COMMENT ON WORKFORCE EXPENDITURE:

From the above expenditure trends, one notes that workforce expenditure increased annually,

as follows:

2010/11: 13.6%

2011/12: 6.61% - General Salary Inflation

2012/13: X.XX%

The increase in expenditure for the 2010/11 financial year was due to the annual salary

increase and the implementation of Job Evaluation Grading Scheme. The SALGBC agreed

back pay to employees.

The 2012/13 financial year experienced a 13.6% increase in total employee expenditure due

to the annual salary increase of 7.07% and the payments of back pay relating to labour dispute

with the union.

IMATU won a court case against SALGA for not implementing the TASK evaluation results on the correct salary scales. SALGA is currently reviewing the court case outcome. The financial exposure is estimated at 2% additional salary increases to all permanent staff members. These salary increases were paid to all the relevant employees in the 2012/2013 financial year.

The 2011/12 financial year did not increase substantially despite a general salary increase of

6.61% with effect from 1 July 2011.

T 4.6.1.1

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CHAPTER 5 – FINANCIAL PERFORMANCE

INTRODUCTION

Chapter 5 contains information regarding financial performance and highlights specific

accomplishments. The chapter comprises of three components:

Component A: Statement of Financial Performance

Component B: Spending Against Capital Budget

Component C: Other Financial Matters

The Annual Financial Statements reflect the continued progress being made by the Municipality

to ensure a financially viable institution, which can withstand a certain degree of financial

volatility and continue to operate for the benefit of its inhabitants. Revenue year-on-year

continues to show improvement, the main contributor being the ??? revenue which increased

by XX%.

Government grants and subsidies have also contributed to the significant increase in revenue,

resulting from improved capital spend occurring within the Municipality. This is particularly

important as it has a direct impact on the lives ELM’s constituent community.

ELM is exposed to continued inflationary pressures and continues to attempt to manage these

pressures through cost containment initiatives. These on-going initiatives attempt to alleviate

any undue pressure being placed on the community through excessive general expenditure.

An area of particular concern is the need to increase spending on the maintenance of ageing

infrastructure and other assets so as to enable them to achieve their full estimated useful lives.

The Municipality has recognised that it is imperative for additional funding to be provided within

the repairs and maintenance budget to address this need.

T 5.0.1

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE

INTRODUCTION TO FINANCIAL STATEMENTS

FINANCIAL INFORMATION NOT AVAILABLE YET

The surplus (deficit) for the year is RXXXm, before transfers arising from capital, which is a

(un)favourable variance of RXXm in comparison to the budgeted (deficit) of RXXm. This

variance comprises of xxxxxxxx.

P a g e | 365

Total revenue did (not) achieve the expected budget expectations and there was a shortfall in

collection of RXXm. This shortfall was as a result of: Or overachievement in collection – as per

S46 report.

Reduced release of funding associated with operational projects expenditure to the

extent of RXXm

Rates revenue totalled RXXm, which was below the budgeted amount by RXxm.

Electricity sales income totalled RXXm, which was RXXm (X%) below the budgeted

revenue.

The above was compensated by a favourable collection of water revenue totalling

RXXm, which was RXXm above the budget.

Total expenditure totalled RXXXm in comparison to a budget of RXXXm, thus resulting in a

favourable variance of RXXm. The largest contributors to this variance were the savings

achieved within other expenditure of RXXm (XX% of the budget), and savings in employee

related costs totalling RXXm (X% of the budget).

T 5.1.0

P a g e | 366

5.1 STATEMENTS OF FINANCIAL PERFORMANCE

Description 2012/2013 2011/2012

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

Unauthorized expenditure

Variance Actual Outcome as % of

Final Budget

Actual Outcome as % of Original Budget

Reported unauthorized expenditure

Expenditure authorized in terms of section 32 of MFMA

1 2 3 4 5 6 7 8 9 10 11 12 13

Financial Performance

Property rates 0 0 0 0 0 0 0 100% 100%

Service charges 0 0 0 0 0 0 0 100% 100%

Investment revenue 0 0 0 0 0 0 0 100% 100%

Transfers recognized - operational 0 0 0 0 0 0 0 100% 100%

Other own revenue 0 0 0 0 0 0 0 100% 100% Total Revenue (excluding capital transfers and contributions) 0 0 0 0 0 0 0 100% 100%

Employee costs 0 0 0 0 0 0 0 100% 100%

Remuneration of councillors 0 0 0 0 0 0 0 100% 100%

P a g e | 367

Debt impairment 0 0 0 0 0 0 100% 100%

Depreciation & asset impairment 0 0 0 0 0 0 100% 100%

Finance charges 0 0 0 0 0 0 0 100% 100%

Materials and bulk purchases 0 0 0 0 0 0 0 100% 100%

Transfers and grants 0 0 0 0 0 0 0 100% 100%

Other expenditure 0 0 0 0 0 0 0 100% 100%

Total Expenditure 0 0 0 0 0 0 0 0 0 100% 100% – –

Surplus/(Deficit) 0 0 0 0 0 0

0 100% 100%

Transfers recognized - capital 0 0 0 0 0 0 0 100% 100%

Contributions recognized - capital & contributed assets 0 0 0 0 0 0 0

100% 100%

Surplus/(Deficit) after capital transfers & contributions 0 0 0 0 0 0 0 100% 100%

Share of surplus/ (deficit) of associate 0 0 0 0 0 0 100 100

P a g e | 368

Surplus/(Deficit) for the year 0 0 0 0 0 0 100% 100%

Capital expenditure & funds sources 0 0 0 0 0 0 100 100

Capital expenditure 0 0 0 0 0 0 100% 100%

Transfers recognized - capital

0 0 0 0 0 0 100% 100%

Public contributions & donations 0 0 0 0 0 0 100% 100%

Borrowing 0 0 0 0 0 0 100% 100%

Internally generated funds 0 0 0 0 0 0 100% 100%

Total sources of capital funds 0 0 0 0 0 0 100% 100%

Cash flows

Net cash from (used) operating 0 0 0 0 0 0 100% 100%

Net cash from (used) investing 0 0 0 0 0 0 0 100% 100%

Net cash from (used) financing 0 0 0 0 0 0 0 100% 100%

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Cash/cash equivalents at the year end 0 0 0 0 0 0 0 100% 100%

T 5.1.1

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Financial Performance of Operational Services

R '000

Description

2011/2012 2012/2013 2012/2013 Variance

Actual Original Budget

Adjustments Budget


Adjustments Budget

Operating Cost

Water 0 0 0 0 % %

Waste Water (Sanitation)

0 0 0 0 % %

Electricity 0 0 0 0 % %

Waste Management 0 0 0 0 % %

Housing 0 0 0 0 % %

Component A: sub-total

0 0 0 0 % %

Waste Water (Stormwater Drainage)

0 0 0 0 % %

Roads 0 0 0 0 % %

Transport 0 0 0 0 % %

Component B: sub-total

0 0 0 0 % %

Planning 0 0 0 0 % %

Local Economic Development

0 0 0 0 % %

Component B: sub-total

0 0 0 0 % %

Planning (Strategic & Regulatory)

0 0 0 0 % %

Local Economic Development

0 0 0 0 % %

Component C: sub-total

0 0 0 0 % %

Community & Social Services

0 0 0 0 % %

Environmental Protection

0 0 0 0 % %

Health 0 0 0 0 % %

Security and Safety 0 0 0 0 % %

Sport and Recreation

0 0 0 0 % %

Corporate Policy Offices and Other

0 0 0 0 % %

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Component D: sub-total

0 0 0 0 % %

Total Expenditure 0 0 0 0 % %

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

COMMENT ON FINANCIAL PERFORMANCE:

REVENUE BY SOURCE

Property Rates – penalties & collection charges

A R1m positive variance was experienced, as the budget was understated on penalties and

collection charges for vacant and undeveloped land and or developed properties. This is 38%

more than budgeted.

Interest earned - external investments

Investment revenue yielded R0.3m more than anticipated, due to interest earned on unspent

grants invested. This is 14% more than budgeted.

Transfers recognised - operational

A R7m negative variance was experienced, due to over spending on operating projects, as

revenue is recognised when funds are spent or when conditions of the grants are met.

Other revenue

Other revenue received was R19.7m more than expected, due to subsidy received from the

District Municipality which were budgeted under “Grants” and not “Other Income”. The other

contributing factor was numerous miscellaneous revenue items, including town planning fees,

market income, vehicle registration fees, cemetery fees, grave space sales, tender receipts,

etc., realising more revenue than expected.

EXPENDITURE BY TYPE

Debt impairment

The debt impairment figure is calculated using the approved methodology on the debt book as

at 30 June 2013. This figure allows ELM to make a realistic provision taking into account the

ageing of the outstanding debtors at year end. The budget for debt impairment is based on the

12 months’ average collection rate. Debt impairment as at 30 June 2013 was R5.9m more than

the budget. This was due to significant increase in outstanding debtors.

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Finance charges

Finance charges were 42% more than budgeted. This budget item only relates to interest on

loans and excludes finance charges on leases.

Transfers and grants

The transfers and grants budget shows a negative R5.2m variance, due to less utilisation of

grants and subsidies. This represents -26% of grants and subsidies paid than budgeted.

Other expenditure

Other expenditure was R9.2m less than budgeted, largely due to under spending on operating

projects. This represents -19% of under spending on various other projects.

T5.1.3

5.2 GRANTS

Grant Performance R' 000

Description

Year -1 Year 0 Year 0 Variance

Actual Budget Adjustments Budget


(%)

Adjustments Budget

(%)

Operating Transfers and Grants

National Government: 0 105,766 105,766 105,766 0% 0%

Equitable share Local Government Financial Management Grant (FMG) Municipal Infrastructure Grant (MIG) Municipal Systems Improvement Grant (MSIG)

61,056

1,500

19,217

790

69,797

1,500

23,311

800

69,797

1,500

23, 311

800

69,797

1,500

23,311

800

0%

0%

0%

0%

0%

0%

0%

0%

Department of Water Affairs (DWAF) Integrated National Electrification Grant (INEP)

0

5,134

0

9,000

0

9,000

0

9,000

0%

0%

0%

0%

Neighbourhood Development Program Grant (NDPG) Extended Public Works Program (EPWP)

0 0

0

1,358

0

1,358

0

1,358

0%

0%

0%

0%

Town Revitalisation 0 0 0 0 0% 0%

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Provincial Government: 0 891 891 891 0% 0%

Housing Grant 0 0 0 0 0% 0%

IDP 0 0 0 0 0% 0%

LED 0 88 88 88 0% 0%

Library 0 803 803 803 0% 0% Integrated National Electrification Grant (INEP) 0 0 0 0 0% 0%

Local Govt & Traditional Affairs (FMG) 0 0 0 0 0% 0% Neighbourhood Development Program Grant (NDPG) 0 0 0 0 0% 0% Extended Public Works Program (EPWP) 0 0 0 0 0% 0%

Town Revitalisation 0 0 0 0 0% 0%

District Municipality: 0 3,101 3,101 3,101 0% 0%

Health Subsidy-Environmental Health Food Program Sorghum & Processing Planning & Development Cleaning program Revenue Enhancement Other

0 0 0 0 0 0

0 0

2,200 40 396 465 0

0 0

2,200 40 396 465 0

0 0

2,200 40 396 465

0

0% 0% 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% 0% 0%

Other grant providers: 0 106 106 106 0% 0%

SETA-Skills Development 0 106 106 106 0% 0%

SETA-Councillor Training 0 0 0 0 n/a n/a

Other Funding 0 0 0 0 n/a 0%

Other Funding 0 0 0 0 n/a 0%

Other Funding 0 0 0 0 n/a n/a

European Commission 0 0 0 0 n/a n/a

Total Operating Transfers and Grants 0 109,864

109,864

109,864 0% -9%

Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Full list of provincial and national grants available from published gazettes. T 5.2.1

COMMENT ON OPERATING TRANSFERS AND GRANTS:

Note: These relate to Municipal Infrastructure Grant (MIG). For other conditional transfers

including Neighbourhood Development Partnership Grant (NDPG); Public Transport

Infrastructure and Systems Grant (PITS) – information still to be completed.

.

T 5.2.2

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Grants Received From Sources Other Than Division of Revenue Act (DoRA)

Details of Donor Actual Grant

2011/2012

Actual Grant 2012/2013

2012/2013 Municipal

Contribution

Date Grant terminates

Date Municipal

contribution terminates

Nature and benefit from the grant received, include

description of any contributions in kind

Parastatals

Health Subsidy (ATTIC) 0 0 0 0 Prevent the spread of TB & HIV infection and provide support to HIV positive survivors.

Health Subsidy (Environmental Health)

0 0 0 0

Dept of Human Settlement

0 0 0 0 Provide funding for the creation of sustainable human settlements. Fixing poorly built houses

Dept of Environmental Affairs & Tourism

0 0 0 0 Tourism initiatives for SMME’s

Roads Subsidy 0 0 0 0

Dept Water Affairs 0 0 0 0 Provide water supply services to consumers currently without, services particularly those in rural areas.

Local Govt & Traditional Affairs

0 0 0 0 For remuneration of local traditional councils

Library Subsidy 0 0 0 0

Dept of Land Affairs 0 0 0 0

Health Subsidy (Primary Health Care)

0 0 0 0

SETA 0 R105 863 0 0 Provide employees with the opportunities to acquire new skills.

Disaster Relief Fund 0 0 0 0 Immediate consequences of disasters are a mitigated

Dept of Sports, Recreation, Arts & Culture

0 0 0 0 Increasing citizens’ access to sport and recreation activities

Public Funding 0 0 0 0 Development levies.

0 0 0 0

Foreign Governments/Development Aid Agencies

XXX 0 0 0 0 0

XXX 0 0 0 0 0 An inter-governmental agreement aimed at poverty alleviation & sustained development.

T 5.2.3

COMMENT ON CONDITIONAL GRANTS AND GRANT RECEIVED FROM OTHER

SOURCES:

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Infrastructure Skills Development

ELM is experiencing challenges with regards to attracting suitably technical skilled personnel,

which has resulted in the budget not being fully utilized. The Infrastructure Skills Development

Grant aims to address this issue and thus enhance service delivery.

Expanded Public Works Programme

The EPWP programme is a provincial government initiative to address the high rates of

unemployment across the country. Due to the recruitment process having started later in the

financial year than normal, ELM has requested funding to be rolled over into 2013/14.

Urban Settlement Development

xxx

Housing - Human Settlement Development Grant

Housing provision is the competency of the Provincial Department of Human Settlement. ELM

assist in managing the process of beneficiary compilation and land acquisition …. …. …..

Roads Subsidy-Provincial Roads

Department of Land Affairs

ELM acts as an agent for the Department of Land Affairs with regards to land claims. Any

payment from this grant needs to be requested by the Department of Land Affairs

T 5.2.4

5.3 ASSET MANAGEMENT

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INTRODUCTION TO ASSET MANAGEMENT

ELM’s Management Team has continued to ensure that a strong asset management function

is implemented. The following initiatives and principles were in place during the year under

review:

Management recognised the importance of optimal investment into the municipality’s

asset base and of ensuring that the investment maintained in working capital is kept to

a minimum.

The credit control policy was actively implemented, so as to encourage consumers to

settle amounts owing to the Institution in a timely manner.

T 5.3.1

TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED 2012/2013

Asset 1

Name Property, Plant, Equipment

Description XXXXX

Asset Type e.g. Municipality Offices, Road Structures, Waste Sites, etc.

Asset Value

2009/10 2010/11 2011/12 2012/13

R X,XXX,XXX R X,XXX,XXX R X,XXX,XXX R X,XXX,XXX

Asset 2


Description XXXXX


Asset Value

2009/10 2010/11 2011/12 2012/13


Asset 3


Description XXXXX


Asset Value

2009/10 2010/11 2011/12 2012/13


T 5.3.2

COMMENT ON ASSET MANAGEMENT:

P a g e | 377

Improving asset management continues to be a focus for ELM, as it is the area from which

services are delivered to the inhabitants of the Municipality and subsequently the primary area

of revenue generation.

In deciding which projects to implement, the relevant ELM departments undertake needs

analyses to establish the communities’ priority needs. This information is then fed into the IDP

and used to make informed decisions with regards to which assets require prioritisation.

T 5.3.3

Repair and Maintenance Expenditure: 2012/2013

R' 000

Original Budget Adjustment Budget Actual Budget variance

Repairs and Maintenance Expenditure 0 0 0 0%

COMMENT ON REPAIR AND MAINTENANCE EXPENDITURE:

ELM spent XX% of its repairs and maintenance budget during the year under review. This was

spent primarily on infrastructure maintenance, which reflects an improvement compared to

previous years. The under-spending of XX% is on the allocation for furniture, equipment and

building maintenance which is spent as and when required.

The Municipality is budgeting, on average, XX% of its service revenue for repairs and

maintenance. The allocation has increased by XX% from 2011/12 as the Municipality’s

objective is to invest more into infrastructure maintenance and upgrading.

T 5.3.4.1

5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS

P a g e | 378

T 5.4.1

T 5.4.2

Liquidity Ratio - Info not available yet

Liquidity Ratio – Measures the municipality’s ability to pay its bills and is calculated by dividing the monetary assets (due within one year ) by the municipality’s current liabilities. A higher ratio is better.

Data used from MBRR SA8

Cost Coverage - Info not available yet

Year -3

Year -2

Year -1

Current: Year 0

Cost Coverage– It explains how many months expenditure can be covered by the cash and other liquid assets available to the Municipality excluding utilisation of grants and is calculated


P a g e | 379

T 5.4.3

T 5.4.4

Total Outstanding Service Debtors

Year -3

Year -2

Year -1

Current: Year 0

Total Outstanding Service Debtors – Measures how much money is still owed by the community for water, electricity, waste removal and sanitation compared to how much money has been paid for these services. It is calculated by dividing the total outstanding debtors by the total annual revenue. A lower score is better.

Debt Coverage

Year -3

Year -2

Year -1

Current: Year 0

Debt Coverage– The number of times debt payments can be accomodated within Operating revenue (excluding grants) . This in turn represents the ease with which debt payments can be accomodated by the municipality


P a g e | 380

T 5.4.5

T 5.4.6

Creditors System Efficiency

Year -3

Year -2

Year -1

Current: Year 0

Creditor System Efficiency – The proportion of creditors paid within terms (i.e. 30 days). This ratio is calculated by outstanding trade creditors divided by credit purchases


Capital Charges to Operating Expenditure

Year -3

Year -2

Year -1

Current: Year 0

Capital Charges to Operating Expenditure ratio is calculated by dividing the sum of capital interest and principle paid by the total operating expenditure.


P a g e | 381

T 5.4.7

T 5.4.8

COMMENT ON FINANCIAL RATIOS:

Employee Costs

Year -3

Year -2

Year -1

Current: Year 0

Employee cost – Measures what portion of the revenue was spent on paying employee costs. It is calculated by dividing the total employee cost by the difference between total revenue and capital revenue.


Repairs & Maintenance

Year -3

Year -2

Year -1

Current: Year 0

Repairs and Maintenance – This represents the propotion of operating expenditure spent and is calculated by dividing the total repairs and maintenace.


P a g e | 382

Liquidity Ratio: The rate of 3.37:1 is regarded as good and indicates the municipality’s ability

to pay Current Liabilities with available Current Liquid Assets. The norm is set at 1.1 : 1, so

the municipality’s Liquidity Ratio is better than the Municipal Industry norm.

Cost Coverage: This rate has fluctuated over the past 2 years and currently is at 6.66 months,

representing how many months expenditure can be covered by cash and other liquid assets

available to the Municipality.

Total Outstanding Service Debtors: The rate of outstanding debt is steadily increasing. It is

currently XX.X%, which is a marked increase since 2011/2012, when it was XX.X%.

Outstanding debtors continue to be a focus for the Municipality which is continuously

implementing methods to decrease this rate to within a manageable range.

Debt Coverage: This rate is steadily improving, due primarily to no additional loans having

been taken on. Currently the Municipality’s rate is 40% when compared with XX.X in the

previous financial year.

Creditors System Efficiency: The Municipality maintains its policy to pay its top 20 creditors

within 30 days. The constant 100% payment levels to creditors highlights this achievement.

Capital Charges to Operating Expenditure: This rate is steadily improving and is considered

to be low at X.X% when compared with X.X% at 2011/12. Contributing factors include no new

loans having been taken up combined with an increase in Operating Expenditure year-on-year.

Employee Costs as a percentage of Operating Revenue: The rate of 28% is lower than the

expected norm of 30%.

Repairs and maintenance as a percentage of Total Revenue (excl. Capital Transfers and

Contributions): The rate remains stable at around 5% for the past 2 years.

T 5.4.9

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET

INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET

Capital expenditure relates mainly to construction projects that will have value lasting over

many years. Capital expenditure is funded from grants, borrowings and operating expenditures

and surpluses. Component B deals with capital spending indicating where the funding comes

from and whether Municipalities are able to spend the available funding as planned. In this

component it is important to indicate the different sources of funding as well as how these funds

are spend.

T 5.5.0

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5.5 CAPITAL EXPENDITURE

CAPITAL EXPENDITURE vs OPERATING EXPENDITURE BAR GRAPH IN YEAR 0

T 5.5.1

CAPITAL AND OPERATION BUDGETS

CAPITAL BUDGET

2010/ 2011 2011/ 2012

BUDGET ‘000 ACTUAL/AUDITED ‘000 % SPENT

BUDGET ‘000

ACTUAL /AUDITED‘000 % SPENT

26 548 21 973 82.8% 2 544 3 952 155.3%

OPERATING BUDGET (INCOME AND EXPENDITURE)

2010/ 2011 2011/ 2012

BUDGET ‘000

ACTUAL/

AUDITED ‘000 % SPENT BUDGET ‘000

ACTUAL/AUDITED ‘000

% SPENT

Income 110 638 101 382 91.6% 143 180 126 721 88.5%

Expenditure 98 982 76 681 77.4% 112 566 180 255 160.1%

Extent of reliance on grants (Capital)

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2012/ 2013 2013/ 2014

‘000 ‘000

Own Fund 3 940 13 295

Grant Fund 23 299 25 917

%age of grant to total 85.5%

%age of grant to

total 66.1%

5.6 SOURCES OF FINANCE

Capital Expenditure - Funding Sources: 2011/2012 to 2012/2013

R' 000

Details

2011/2012 2012/2013


(OB)

Adjustment Budget

Actual Adjustment to OB

Variance (%)

Actual to OB

Variance (%)

Source of finance

External loans 0 0 0 0 0.00% 0%

Public contributions and donations

0 0 0 0 0.00% 0%

Grants and subsidies 0 0 0 0 0% 0%

Other 0 0 0 0 0% 0%

Total 0 0 0 0 0% 0%

Percentage of finance

External loans 0.00% 0% 0.00% 0% 0.00% 0%

Public contributions and donations

0.00% 0% 0.00% 0% 0.00% 0%

Grants and subsidies 0% 0% 0% 0% 0% 0%

Other 0% 0% 0% 0% 0% 0%

Capital expenditure

Water and sanitation 0 0 0 0 0% 0%

Electricity 0 0 0 0 0.00% 0%

Housing 0 0 0 0 0.00% 0%

Roads & storm water 0 0 0 0 0% 0%

P a g e | 385

Capital Expenditure - Funding Sources: 2011/2012 to 2012/2013

R' 000

Details

2011/2012 2012/2013


(OB)

Adjustment Budget

Actual Adjustment to OB

Variance (%)

Actual to OB

Variance (%)

Other 0 0 0 0 0% 0%

Total 278,888 749,097 978,103 675,941 118.66% -34.94%

Percentage of expenditure

Water and sanitation 0.00% 0% 0.00% 0% 0.00% 0%

Electricity 0.00% 0% 0.00% 0% 0.00% 0%

Housing 0% 0% 0% 0% 0% 0%

Roads & storm water 0% 0% 0% 0% 0% 0%

Other 0% 0% 0% 0% 0% 0%

T 5.6.1

COMMENT ON SOURCES OF FUNDING:

Grants and subsidies continue to comprise the most significant portion of the funding utilised

for capital expenditure. The largest being the ???, which is focused on developing new urban

areas for habitation. This Grant is utilised to ensure service infrastructure is installed in new

areas so as to allow for housing developments in these strategic areas.

T 5.6.1.1

5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS

Capital Expenditure of 5 largest projects* R' 000

Name of Project

Current: 2012/2013 Variance: Current 2012/2013

Original Budget

Adjustment Budget

Actual Expenditure

Original Variance (%)

Adjustment variance (%)

Electrification 0 0 0 0% 0%

Roads 0 0 0 0% 0%

Treatment Works 0 0 0 0% 0%

Solid Waste Management 0 0 0 0% 0%

Main Road 0 0 0 0% 0%

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* Projects with the highest capital expenditure in 2012/2013

Name of Project - A Electrification - Installation of a bulk tertiary Substation

Objective of Project

Delays

Future Challenges

Anticipated citizen benefits

Name of Project - B Roads



Name of Project - C

Objective of Project Treatment Works

Delays

Future Challenges


Name of Project - D Solid Waste Management



Name of Project - E Main Road


Delays

Future Challenges


T 5.7.1

5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW

INTRODUCTION TO BASIC SERVICE AND INFRASTRUCTURE BACKLOGS

The primary role of a municipality is to provide and facilitate the delivery of services to its communities. It is therefore imperative for the municipality to understand the extent to which households in its areas of jurisdiction have access to the various services that are essential for their livelihood. A COMPREHENSIVE INFRASTRUCTURES PLAN (CIP) was developed with assistance with the province. However, a review of the existing CIP requires a thorough review that will be informed by the current statistical data.

The CIP is used to influenced for baseline data and informing the projects to be implemented. Furthermore ELM has made a decision to develop an inclusive Infrastructure Investment Plan. ELM currently utilizes various sector plans to plan for infrastructure planning and investment. These plans are; Housing Sector Plan, Water Service Delivery Plan, Infrastructure Asset Maintenance Plan, Electricity Master Plan.

T 5.8.1

Service Backlogs as at 30 June 2012/2013

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Households (HHs)

*Service level above minimum standard **Service level below minimum standard

No. HHs % HHs No. HHs % HHs

Water 0 0% 0 0%

Sanitation 0 0% 0 0% Electricity 0 0% 0 0%

Waste management 0 0% 0 0%

Housing 0 0% 0 0%

% HHs are the service above/below minimum standard as a proportion of total HHs. 'Housing' refers to * formal and ** informal settlements. T 5.8.2

COMMENT ON BACKLOGS:

The current reality analysis has shown that the municipality is faced with a daunting challenge marked by huge backlogs in service delivery, socio-economic problems of high unemployment and poverty levels. Solutions to these challenges can potentially be in conflict with or complement each other. For this reason, it is necessary for the municipality to have a macro strategy that will guide decision making when there are conflicting strategic options and also provide a basis for the allocation of scarce resources.

T 5.8.4

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS

INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS

Managing the cash resources of ELM remains a key requirement to ensure the liquidity of the

Municipality in order to meet its financial obligations, both currently and into a sustainable

future.

Cash flow is actively monitored by ELM, with daily cash flows being prepared and reported on

in order to provide a clear indication of the current cash position. This enables the Municipality

to meet its obligations as they become due. Both major revenue (grants, equitable share and

high revenue inflow periods, etc.) and expenditure (bulk purchases and loan repayments, etc.)

categories have been identified and accounted for appropriately to ensure that repayments are

made on time and that surplus funds are invested in order to earn a favourable return on

investment.

ELM’s cash generating ability remains stable. While own funds invested have increased, there

is an increase in both current and long-term debtors. The effects of the global economic crisis

are also a cause of real concern to the Municipality. Operations have settled and tight cash

P a g e | 388

controls have ensured that cash optimization in spending occurs, rather than a focus on cash

generation. The area of revenue collection requires close attention so that it can be improved.

This is critical to the financial sustainability of the Municipality.

ELM makes payments to creditors within the terms specified by suppliers, ensuring that

investments remain in place in order to maximize the interest-earning potential of any surplus

funds. Investment diversification is in practice at ELM, in an attempt to minimize risk and

maximize interest earning potential.

Operating activities have not changed significantly over the past financial year.

The cash flow summary clearly indicates the increase/decrease in Cash and Cash Equivalent

at the year-end: from R XXX.XX million in 2011/12 to R XXX.XX million in 2012/13. As

mentioned above, some of the key factors that have resulted in the increase include new grants

being allocated to the Municipality and under spending.

Unspent conditional grants have increased/decreased significantly to R XXX million, from R

XXX million in 2011/2012, this is largely attributable to ???.

T 5.9

P a g e | 389

5.9 CASH FLOW

Cash Flow Outcomes R'000

Description

Year -1 Current: Year 0

Audited Outcome

Original Budget

Adjusted Budget

Actual

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Ratepayers and other 3 077 23 415 0 0

Government - operating 72 148 85 415 0 0

Government - capital 17 084 23 095 0 0

Interest 7 861 9 333 0 0

Dividends 0 0 0 0

Payments

Suppliers and employees (98 818) (116 588) 0 0

Finance charges (89) (219) 0 0

Transfers and Grants 0 0 0 0

NET CASH FROM/(USED) OPERATING ACTIVITIES 1 262 24 450 0 0

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds from sale of property, plant and equipment (2 998) (16 737) 0 0

Purchase of other intangible assets 0 (126) 0 0

Purchase/Write on/Donated heritage assets 0 0 0 0

Net movement in financial assets 0 0 0 0

Movement in non-current investments 0 0 0 0

Payments

Capital assets 0 0 0 0

NET CASH FROM/(USED) INVESTING ACTIVITIES (2 998) (16 863) 0 0

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Increase in unspent conditional grants 0 0 0 0

Increase (decrease) in consumer deposits 0 0 0 0

Payments

Repayment of borrowing 785 (536) 0 0

NET CASH FROM/(USED) FINANCING ACTIVITIES 951 7 051 0 0

NET INCREASE/ (DECREASE) IN CASH HELD (951) 7 051 0 0

Cash/cash equivalents at the year begin: 47 015 46 064 0 0

Cash/cash equivalents at the year -end: 46 064 53 115 0 0

Source: MBRR A7 T 5.9.1

COMMENT ON CASH FLOW OUTCOMES:

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Interest earned

Finance Charges

Current and Non-Current Borrowings

Cash and Cash Equivalents

T 5.9.1.1

5.10 BORROWING AND INVESTMENTS

INTRODUCTION TO BORROWING AND INVESTMENTS

The Municipality’s current loans balance, including finance lease items, totalled R32.91 million

as outstanding when compared with R27.32 million for 2011/12. No additional borrowings were

taken up during the current year . The Municipality is currently servicing its debt

monthly/quarterly with 2/3/4 financial institutions, being XXX Bank, XXX Bank and The

Development Bank of Southern Africa.

The Municipality’s investments held with financial institutions have increased/decrease to

RXXX million, from RXXX million in 2011/12. Factors that have resulted in this

increase/decrease relate to the XXX, thus receiving additional/less.

T 5.10.1

Actual Borrowings: 2010 to 2013

R' 000

Instrument 2010/2011 2011/2012 2012/2013

Municipality Long-Term Loans (annuity/reducing balance) 0 0 0

Municipality Total 0 0 0

T 5.10.2

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T 5.10.3

Municipal and Entity Investments

R' 000

Investment* type

2010/2011 2011/2012 2012/2013

Actual Actual Actual

Deposits - Bank 0 0 0

Entities - Other 0 0 0

Consolidated total 0 0 0

T 5.10.4

COMPONENT D: OTHER FINANCIAL MATTERS

5.12 SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

According to Section 115 of the MFMA the accounting officer of a municipality must implement the SCM policy of the municipality and take all reasonable steps to ensure that the proper mechanisms and segregation of duties in the SCM system are in place to minimise the likelihood of fraud, corruption, favouritism and unfair and irregular practices.

The Act also stipulates that monthly and quarterly reports should be submitted to the authorities to show the progress on the implementation of the Supply Chain management regulations.

Section 114

SCM REPORTS

0

0,2

0,4

0,6

0,8

1

1,2

Year -2 Year -1 Year 0

R m

illio

nActual Borrowings

Munici…

P a g e | 392

a) Formal quotes above R100 000 (Various Departments) b) Deviations c) Fruitless and wasteful expenditure d) Report on tenders awarded e) Contract Management

REPORT ON TENDERS AWARDED: FORMAL AND INFROMAL

Bid Number

Project Name Bid awarded to Amount Date of awarded

ELM/3/1/2013

CONSTRUCTION OF NTSHINGA TO NJOMBELA ACCESS ROAD

CNN DEVELOPMENT ENGINEERS

R 732 467.83 24/05/2013

ELM/3/3

/2013

CONSTRUCTION OF

R392 TO FANI VILLAGE

ACCESS ROAD

CNN DEVELOPMENT

ENGINEERS

R 447 276.26 24/05/2013

ELM/02/

02/2013

ESTABLISHMENT OF

TRAFFIC

DEPARTMENT

(FENCING)

MVUBA TRADING R 618 805.00 22/06/2013

ELM/1/3

/2013

PROCUREMENT OF

PRIVATE PROPERTY

VALUERS

PENNY LINDSTROM

PROPERTY VALUATIONS

CC

R1 050 000.

00

22/06/2013

ELM

3/5/2013

FLEET VEHICLES

QUEENSTOWN NISSAN R297200.24 22 June

2013

QUOTATIONS ABOVE R100 000

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Project Name Amount C/O Name Dept

Audit R 219 259.35 Auditor General The Municipality

R 140 532.44 Ezibeleni Sheriff

Chemicals R 140 000.00 Hanalulu Water Services

R 114 000.00 Ramatini Services Agents

Server room upgrade and fire protection

R 198 397.62 TKS projects (pty)ltd Finance

Sewer connections at Indwe

R 189 411.00 African Compass 375 CC Water services

DEVIATIONS

CO NAME DESCRIPTION AMOUNT NORMAL PROCESSES

COMMENTS

NDCW ENGINEERING

Manufacturing of hawker stalls

R 1 325 973.90

3 QUOTES

NPM GEOMATICS

Land audit project R 397 974.00 3 QUOTES

TENDERS NOT YET AWARDED

Tender number Description Closing date

ELM/3/7/2013 DELIVERY OF PLANT EQUIPMENT

15/05/2013

SECTION 116: CONTRACT MANAGEMENT

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THE FOLLOWING EXPENDITURE/PAYMENTS AGAINST EXISTING CONTRACTS WERE MADE DURING THE MONTH

DEPARTMENT/ SECTION

NAME OF SUPPLIER

ITEM DESCRIPTION

DATE

TENDER NO

ORDER/TENDER AMOUNT

PAID TO DATE

Community Services

Masabisa Management Consultant

Cemetry expand

08/08/2012

ELM/2/1/2012

700 918.40

R 560 400.00

Technical Services Malk iAfrica

Rwantsana access road

ELM/9/2012

R 6 074 233.67

R 4 280 014.21

Technical Services

Amadwala Construction

Construction of water reticulation and pipeline extension

12/11/2012

ELM/6/3/2012

R 6 119.64 rates

R 1 417 054

Town planning/

ULUBUTHO DEVELOPMENT

SPATIAL DEVELOPMENT FRAMEWORK

22/11/2012

ELM/2/2/2012

R 293 688.09 R 44

053.21

Town planning/

NPM PLANNING TOWNSHIP ESTABLISHMENT

22/11/2012

ELM/2/3/2012

R 68 940.00 R 55 152

Technical Services

RJN PROJECTS Maintenance,repairs

22/11/2012

ELM/6/1/2012

R 434 351.64 rates

R 1 086 138.05

Technical Services Malk iAfrica

Dlamini access road

variation order

1 126 324.00

R 1 796 213.95

Technical Services RPS ILANGABI

Electrification

ORDER

R 5 075 156.68

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Recommendations

It is RECOMMENDED THAT

(a) Council notes the report on supply chain management which relates to the awarding

of tenders for the 2012/2013 financial year.

(b) The Chief Financial Officer provides details on the motivation for deviations that have been approved during the period under review.

T 5.12.1

5.13 GRAP COMPLIANCE

GRAP COMPLIANCE

GRAP is the acronym for Generally Recognized Accounting Practice and it provides the rules

by which municipalities are required to maintain their financial accounts. Successful GRAP

compliance will ensure that municipal accounts are comparable and more informative for the

municipality. It will also ensure that the municipality is more accountable to its citizens and

other stakeholders. Information on GRAP compliance is needed to enable National Treasury

to assess the pace of progress and consider the implications.

ELM is aware of the new accounting standards that have been published for implementation

during the 2012/2013 financial year. These standards have been complied with in the

preparation of the 2012/2013 Annual Financial Statements in all material respects. This

compliance is required to improve transparency surrounding the financial information which

has been prepared. The guidance provided in the new accounting statements, namely GRAP

21, 24, 26 and 103 have been utilised in the preparation of the 2012/13 Annual Financial

Statements. GRAP 21 and 26 were adopted early in the 2011/12 Annual Financial Statement

preparation. The budget note disclosure, as required in GRAP 24, has been included and

heritage assets have been identified and disclosed in these Annual Financial Statements.

.T 5.13.1

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CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS

INTRODUCTION

Note: The Constitution S188 (1) (b) states that the functions of the Auditor-General includes

the auditing and reporting on the accounts, financial statements and financial management of

all municipalities. MSA section 45 states that the results of performance measurement… must

be audited annually by the Auditor-General.

The Auditor General has historically given the municipality a number of disclaimers. This has

largely been on areas weak internal controls, non-compliance with laws and regulations,

misstatements in Annual Financial Statements.

During the 2012/2013 financial year, ELM has made an effort to correct and improve on a

number of areas where an adverse audit opinion was given. In 2012/2013, ELM prepared and

implemented an audit improvement plan, in an effort to obtain an improved audit opinion.

This plan contains all the matters highlighted by the Auditor General and the impact that each

matter has is clearly defined. Furthermore, the names of those responsible for each of the

matters are highlighted on the plan together with the due or target date on which each of the

matters should be resolved.

Progress is monitored on continuous bases and the progress report is presented regularly to

management meeting. It is envisaged that this assistance would yield significant benefits in

relation to the opinion expressed by the Auditor General in the previous year.

T 6.0.1

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS

2011/2012

6.1 AUDITOR GENERAL REPORTS 2011/2012 (PREVIOUS YEAR)

Auditor-General Report on Financial Performance: 2011/2012

Audit Report Status*: Qualified

Non-Compliance Issues Remedial Action Taken

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Note:*The report status is supplied by the Auditor General and ranges from unqualified (at best); to unqualified with other matters specified; qualified; adverse; and disclaimed (at worse)

T 6.1.1

COMPONENT B: AUDITOR-GENERAL OPINION 2012/2013 (CURRENT YEAR)

6.2 AUDITOR GENERAL REPORT 2012/2013

AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS: 2012/2013

Delete Directive note once comment is completed - Attach report.

T 6.2.3

Audit Report Status:


T 6.1.2

Auditor-General Report on Service Delivery Performance: Year -1

Status of audit report:


T 6.2.1

Auditor-General Report on Financial Performance Year 0*

Note:* The report's status is supplied by the Auditor General and ranges from unqualified (at best); to unqualified with

other matters specified; qualified; adverse; and disclaimed (at worse). This table will be completed prior to the publication

of the Annual report but following the receipt of the Auditor- General Report on Financial Performance Year 0.

Status of audit report**:


T 6.2.2

Auditor-General Report on Service Delivery Performance: Year 0*

* This table will be completed prior to the publication of the Annual report but following the receipt of the Auditor- General Report

on Service Delivery Performance Year 0

** Inclusion of "Status" depends on nature of AG's remarks on Performance Data.

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COMMENTS ON AUDITOR-GENERAL’S OPINION 2012/2013:

Delete Directive note once comment is completed - Provide comments from the Municipal

Manager / CFO on the Auditor-General’s opinion. Include comments on 2012/2013 if it provides

useful context.

T 6.2.4

COMMENTS ON MFMA SECTION 71 RESPONSIBILITIES:

Section 71 of the MFMA requires municipalities to return a series of financial performance data

to the National Treasury at specified intervals throughout the year. The Chief Financial Officer

states that these data sets have been returned according to the reporting requirements.

Signed (Chief Financial Officer)………………………………………………………..... Dated

T 6.2.5

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GLOSSARY

Accessibility

indicators

Explore whether the intended beneficiaries are able to access

services or outputs.

Accountability

documents

Documents used by executive authorities to give “full and regular”

reports on the matters under their control to Parliament and provincial

legislatures as prescribed by the Constitution. This includes plans,

budgets, in-year and Annual Reports.

Activities The processes or actions that use a range of inputs to produce the

desired outputs and ultimately outcomes. In essence, activities

describe "what we do".

Adequacy

indicators

The quantity of input or output relative to the need or demand.

Annual Report A report to be prepared and submitted annually based on the

regulations set out in Section 121 of the Municipal Finance

Management Act. Such a report must include annual financial

statements as submitted to and approved by the Auditor-General.

Approved Budget The annual financial statements of a municipality as audited by the

Auditor General and approved by council or a provincial or national

executive.

Baseline Current level of performance that a municipality aims to improve when

setting performance targets. The baseline relates to the level of

performance recorded in a year prior to the planning period.

Basic municipal

service

A municipal service that is necessary to ensure an acceptable and

reasonable quality of life to citizens within that particular area. If not

provided it may endanger the public health and safety or the

environment.

Budget year The financial year for which an annual budget is to be approved –

means a year ending on 30 June.

Cost indicators The overall cost or expenditure of producing a specified quantity of

outputs.

Distribution

indicators

The distribution of capacity to deliver services.

Financial

Statements

Includes at least a statement of financial position, statement of

financial performance, cash-flow statement, notes to these

statements and any other statements that may be prescribed.

General Key

performance

indicators

After consultation with MECs for local government, the Minister may

prescribe general key performance indicators that are appropriate

and applicable to local government generally.

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Impact The results of achieving specific outcomes, such as reducing poverty

and creating jobs.

Inputs All the resources that contribute to the production and delivery of

outputs. Inputs are "what we use to do the work". They include

finances, personnel, equipment and buildings.

Integrated

Development Plan

(IDP)

Set out municipal goals and development plans.

National Key

performance areas

• Service delivery & infrastructure

• Economic development

• Municipal transformation and institutional development

• Financial viability and management

• Good governance and community participation

Outcomes The medium-term results for specific beneficiaries that are the

consequence of achieving specific outputs. Outcomes should relate

clearly to an institution's strategic goals and objectives set out in its

plans. Outcomes are "what we wish to achieve".

Outputs The final products, or goods and services produced for delivery.

Outputs may be defined as "what we produce or deliver". An output is

a concrete achievement (i.e. a product such as a passport, an action

such as a presentation or immunization, or a service such as

processing an application) that contributes to the achievement of a

Key Result Area.

Performance

Indicator

Indicators should be specified to measure performance in relation to

input, activities, outputs, outcomes and impacts. An indicator is a type

of information used to gauge the extent to

which an output has been achieved (policy developed, presentation

delivered, service rendered)

Performance

Information

Generic term for non-financial information about municipal services

and activities. Can also be used interchangeably with performance

measure.

Performance

Standards:

The minimum acceptable level of performance or the level of

performance that is generally accepted. Standards are informed by

legislative requirements and service-level agreements. Performance

standards are mutually agreed criteria to describe how well work must

be done in terms of quantity and/or quality and timeliness, to clarify

the outputs and related activities of a job by describing what the

required result should be. In this EPMDS performance standards are

divided into indicators and the time factor.

Performance

Targets:

The level of performance that municipalities and its employees strive

to achieve. Performance Targets relate to current baselines and