Breede Valley Municipality Annual Report 2012/13 Web viewDuring this period the ward committees improved on community participation, ... This is where a 19th-century . trekboer

Contents

Contents

LIST OF TABLES.................................................................................................................................................................................................... 3

LIST OF FIGURES.................................................................................................................................................................................................. 6

LIST OF GRAPHS................................................................................................................................................................................................... 6

CHAPTER 1: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY.................................................................................................................. 8

COMPONENT A: MAYOR’S FOREWORD............................................................................................................................................................. 8

COMPONENT B: EXECUTIVE SUMMARY.......................................................................................................................................................... 10

1.1 Municipal Manager’s Overview............................................................................................................................................................... 10

1.2 Municipal Functions, Population and Environmental Overview............................................................................................................... 12

1.3 Service Delivery Overview...................................................................................................................................................................... 22

1.4 Financial Health Overview...................................................................................................................................................................... 24

1.5 Organisational Development Overview................................................................................................................................................... 26

1.6 Auditor-General Report........................................................................................................................................................................... 27

1.7 Statutory Annual Report Process........................................................................................................................................................... 28

CHAPTER 2: GOVERNANCE..................................................................................................................... ERROR! BOOKMARK NOT DEFINED.

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE...........................................ERROR! BOOKMARK NOT DEFINED.

2.1 Political Governance Structure.................................................................................................................. Error! Bookmark not defined.

2.2 Administrative Governance Structure........................................................................................................ Error! Bookmark not defined.

COMPONENT B: INTERGOVERNMENTAL RELATIONS..........................................................................ERROR! BOOKMARK NOT DEFINED.

2.3 Inter-governmental Relations (IGR).......................................................................................................... Error! Bookmark not defined.

COMPONENT C: PUBLIC ACCOUNTABILITY..........................................................................................ERROR! BOOKMARK NOT DEFINED.

2.4 Public Meetings......................................................................................................................................... Error! Bookmark not defined.

COMPONENT D: CORPORATE GOVERNANCE.......................................................................................ERROR! BOOKMARK NOT DEFINED.

2.5 Risk Management..................................................................................................................................... Error! Bookmark not defined.

2.6 Anti-Corruption and Anti-fraud.................................................................................................................. Error! Bookmark not defined.

2.7 Audit Committee/s..................................................................................................................................... Error! Bookmark not defined.

2.8 Performance Audit Committee.................................................................................................................. Error! Bookmark not defined.

2.9 Internal Auditing........................................................................................................................................ Error! Bookmark not defined.

2.10 Supply Chain Management....................................................................................................................... Error! Bookmark not defined.

2.11 By-Laws and Policies................................................................................................................................ Error! Bookmark not defined.

Contents

2.12 Website..................................................................................................................................................... Error! Bookmark not defined.

2.13 Communication......................................................................................................................................... Error! Bookmark not defined.

CHAPTER 3: SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)....................ERROR! BOOKMARK NOT DEFINED.

3.1 Performance Management........................................................................................................................ Error! Bookmark not defined.

3.2 The IDP and the budget............................................................................................................................ Error! Bookmark not defined.

3.3 Strategic Service Delivery Budget Implementation Plan...........................................................................Error! Bookmark not defined.

3.4 Service Providers Strategic Performance.................................................................................................Error! Bookmark not defined.

3.5 Municipal Functions................................................................................................................................. Error! Bookmark not defined.

3.6 Overview of performance per ward........................................................................................................... Error! Bookmark not defined.

COMPONENT A: BASIC SERVICES.......................................................................................................... ERROR! BOOKMARK NOT DEFINED.

3.7 Water Provision......................................................................................................................................... Error! Bookmark not defined.

3.8 Sanitation Services................................................................................................................................... Error! Bookmark not defined.

3.9 Electricity................................................................................................................................................... Error! Bookmark not defined.

3.10 Waste management (Refuse collections, waste disposal, street cleaning and recycling).........................Error! Bookmark not defined.

3.11 Housing..................................................................................................................................................... Error! Bookmark not defined.

3.12 Free Basic Services And Indigent Support................................................................................................Error! Bookmark not defined.

COMPONENT B: ROAD TRANSPORT.......................................................................................................ERROR! BOOKMARK NOT DEFINED.

3.13 Roads........................................................................................................................................................ Error! Bookmark not defined.

3.14 Stormwater................................................................................................................................................ Error! Bookmark not defined.

COMPONENT C: PLANNING AND DEVELOPMENT.................................................................................ERROR! BOOKMARK NOT DEFINED.

3.15 Planning.................................................................................................................................................... Error! Bookmark not defined.

3.16 Local Economic Development................................................................................................................... Error! Bookmark not defined.

COMPONENT D: COMMUNITY AND SOCIAL SERVICES........................................................................ERROR! BOOKMARK NOT DEFINED.

3.17 Libraries.................................................................................................................................................... Error! Bookmark not defined.

3.18 Cemeteries................................................................................................................................................ Error! Bookmark not defined.

3.19 Social Programmes................................................................................................................................... Error! Bookmark not defined.

COMPONENT E: ENVIRONMENTAL PROTECTION.................................................................................ERROR! BOOKMARK NOT DEFINED.

3.20 Pollution Control........................................................................................................................................ Error! Bookmark not defined.

3.21 Bio-Diversity, Landscape and Open Spaces.............................................................................................Error! Bookmark not defined.

COMPONENT F: SECURITY AND SAFETY...............................................................................................ERROR! BOOKMARK NOT DEFINED.

Contents

3.22 Traffic, security and licensing.................................................................................................................... Error! Bookmark not defined.

3.23 Aerodrome (Airfield).................................................................................................................................. Error! Bookmark not defined.

COMPONENT G: SPORT AND RECREATION...........................................................................................ERROR! BOOKMARK NOT DEFINED.

3.24 Community halls........................................................................................................................................ Error! Bookmark not defined.

3.25 Swimming pools........................................................................................................................................ Error! Bookmark not defined.

3.26 Caravan park............................................................................................................................................ Error! Bookmark not defined.

3.27 Nature reserves........................................................................................................................................ Error! Bookmark not defined.

3.28 Sport grounds........................................................................................................................................... Error! Bookmark not defined.

COMPONENT H: CORPORATE POLICY, OFFICES AND OTHER SERVICES.........................................ERROR! BOOKMARK NOT DEFINED.

3.29 Executive and Council............................................................................................................................... Error! Bookmark not defined.

3.30 Financial Services..................................................................................................................................... Error! Bookmark not defined.

3.31 Human Resources.................................................................................................................................... Error! Bookmark not defined.

3.32 Corporate Services................................................................................................................................... Error! Bookmark not defined.

COMPONENT I: ORGANISATIONAL PERFORMANCE SCORECARD.....................................................ERROR! BOOKMARK NOT DEFINED.

3.33 Development and Service Delivery Priorities for 2016/17.........................................................................Error! Bookmark not defined.

CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE REPORT PART I)...........ERROR! BOOKMARK NOT

DEFINED.

4.1 Introduction to the Municipal Workforce....................................................................................................Error! Bookmark not defined.

4.2 Managing the Municipal Workforce........................................................................................................... Error! Bookmark not defined.

4.3 Capacitating the Municipal Workforce.......................................................................................................Error! Bookmark not defined.

4.4 Managing the Municipal Workforce Expenditure.......................................................................................Error! Bookmark not defined.

CHAPTER 5: FINANCIAL PERFORMANCE...............................................................................................ERROR! BOOKMARK NOT DEFINED.

COMPONENT A: STATEMENT OF FINANCIAL PERFORMANCE...........................................................ERROR! BOOKMARK NOT DEFINED.

5.1 Financial Summary................................................................................................................................... Error! Bookmark not defined.

5.2 Financial Performance per Municipal Function.........................................................................................Error! Bookmark not defined.

5.3 Grants....................................................................................................................................................... Error! Bookmark not defined.

5.4 Financial Ratios Based on Key Performance Indicators...........................................................................Error! Bookmark not defined.

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET....................................................................ERROR! BOOKMARK NOT DEFINED.

5.5 Capital Expenditure................................................................................................................................... Error! Bookmark not defined.

5.6 Sources of Finance................................................................................................................................... Error! Bookmark not defined.

5.7 Capital Spending on 5 Largest Projects....................................................................................................Error! Bookmark not defined.

Contents

5.8 Municipal Infrastructure Grant (MIG)......................................................................................................... Error! Bookmark not defined.

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS.....................................................ERROR! BOOKMARK NOT DEFINED.

5.9 Cash Flow................................................................................................................................................. Error! Bookmark not defined.

5.10 Gross Outstanding Debtors per Service....................................................................................................Error! Bookmark not defined.

5.11 Total Debtors Age Analysis....................................................................................................................... Error! Bookmark not defined.

5.12 Borrowing and Investments....................................................................................................................... Error! Bookmark not defined.

COMPONENT D: OTHER FINANCIAL MATTERS.....................................................................................ERROR! BOOKMARK NOT DEFINED.

5.13 Supply Chain Management....................................................................................................................... Error! Bookmark not defined.

5.14 GRAP Compliance.................................................................................................................................... Error! Bookmark not defined.

CHAPTER 6: AUDITOR GENERAL AUDIT FINDINGS..............................................................................ERROR! BOOKMARK NOT DEFINED.

COMPONENT A: AUDITOR-GENERAL OPINION 2014/15........................................................................ERROR! BOOKMARK NOT DEFINED.

6.1 Auditor General Reports 2012/13.............................................................................................................. Error! Bookmark not defined.

COMPONENT B: AUDITOR-GENERAL OPINION 2015/16........................................................................ERROR! BOOKMARK NOT DEFINED.

6.2 Auditor General Report 2015/16............................................................................................................... Error! Bookmark not defined.

ANNEXURE A: FINANCIAL STATEMENTS...............................................................................................ERROR! BOOKMARK NOT DEFINED.

ANNEXURE B: REPORT OF THE AUDITOR-GENERAL...........................................................................ERROR! BOOKMARK NOT DEFINED.

ANNEXURE C: REPORT OF THE AUDIT COMMITTEE............................................................................ERROR! BOOKMARK NOT DEFINED.

Contents

LIST OF TABLES

Table 1: Municipal wards................................................................14

Table 2: Population of HM..............................................................16

Table 3: Population by race............................................................16

Table 4: Population by race per area..............................................17

Table 5: Population by age and gender..........................................17

Table 6: Total number of households (April 2015)..........................18

Table 7: Total number of indigent households................................18

Table 8: Employment for those aged 15-64....................................18

Table 9: GDP Contribution of Hantam............................................19

Table 10: Socio economic profile......................................................21

Table 11: Municipal challenges.........................................................21

Table 12: Basic service delivery performance..................................22

Table 13: Basic services delivery highlights.....................................22

Table 14: Basic services delivery challenges...................................23

Table 15: Households with minimum level of basic services............23

Table 16: Financial viability highlights...............................................24

Table 17: Financial viability challenges.............................................25

Table 18: Financial overview............................................................25

Table 19: Operating ratios................................................................25

Table 20: Total capital expenditure...................................................25

Table 21: Municipal transformation and organisational development highlights 26

Table 22: Municipal transformation and organisational development challenges 26

Table 23: Financial competency development: Progress report.......27

Table 24: Audit outcomes.................................................................28

Table 25: Statutory Annual Report process......................................30

Table 26: Good governance and public participation performance highlights Error! Bookmark not defined.

Table 27: Good governance and public participation challengesError! Bookmark not defined.

Table 28: Council 2015/16..................Error! Bookmark not defined.

Table 29: Council meetings................Error! Bookmark not defined.

Contents

Table 30: Council committees.............Error! Bookmark not defined.

Table 31: Council resolutions taken and implemented during 2015/16Error! Bookmark not defined.

Table 32: Administrative governance structureError! Bookmark not defined.

Table 33: Inter-governmental structuresError! Bookmark not defined.

Table 34: Public Meetings...................Error! Bookmark not defined.

Table 35: Ward committee meetings. .Error! Bookmark not defined.

Table 36: Functioning of ward committeesError! Bookmark not defined.

Table 37: IDP participation and alignment criteriaError! Bookmark not defined.

Table 38: Action Plan to address the top five risksError! Bookmark not defined.

Table 39: Approved risk policies and strategiesError! Bookmark not defined.

Table 40: Strategies............................Error! Bookmark not defined.

Table 41: Members of the Audit CommitteeError! Bookmark not defined.

Table 42: Policies................................Error! Bookmark not defined.

Table 43: By-laws...............................Error! Bookmark not defined.

Table 44: Website checklist................Error! Bookmark not defined.

Table 45: Communication activities....Error! Bookmark not defined.

Table 46: Communication unit............Error! Bookmark not defined.

Table 47: Functional areas.................Error! Bookmark not defined.

Table 48: Capital projects of all WardsError! Bookmark not defined.

Table 49: Basic service provision for all WardsError! Bookmark not defined.

Table 50: Household Services............Error! Bookmark not defined.

Table 51: Sources of Water (Census 2011)Error! Bookmark not defined.

Table 52: Key performance indicators: Water servicesError! Bookmark not defined.

Table 53: Distribution of households by access to piped water and municipality (Census 2011)Error! Bookmark not defined.

Table 54: Water service delivery levels for 2015/16Error! Bookmark not defined.

Table 55: Water service delivery levels below the minimum: HouseholdsError! Bookmark not defined.

Table 56: Employees: Water ServicesError! Bookmark not defined.

Table 57: Capital expenditure 2015/16: Water servicesError! Bookmark not defined.

Table 58: Distribution of households by type of toilet facility and municipality (Census 2011) Error! Bookmark not defined.

Table 59: Employees: Sanitation ServicesError! Bookmark not defined.

Contents

Table 60: Capital Expenditure 2015/16: Sanitation servicesError! Bookmark not defined.

Table 61: Service Delivery Indicators: Electricity ServicesError! Bookmark not defined.

Table 62: Electricity service delivery levelsError! Bookmark not defined.

Table 63: Employees: Electricity ServicesError! Bookmark not defined.

Table 64: Capital expenditure 2015/16: Electricity servicesError! Bookmark not defined.

Table 65: Service delivery indicators: Waste management (Refuse collections, waste disposal, street cleaning and recycling) Error! Bookmark not defined.

Table 66: Refuse removal service delivery levelsError! Bookmark not defined.

Table 67: Employees: Waste management (Refuse collections, waste disposal, street cleaning and recycling) Error! Bookmark not defined.

Table 68: Housing demand list...........Error! Bookmark not defined.

Table 69: Employees: Housing...........Error! Bookmark not defined.

Table 70: Access to free basic servicesError! Bookmark not defined.

Table 71: Asphalt roads......................Error! Bookmark not defined.

Table 72: Gravel roads.......................Error! Bookmark not defined.

Table 73: Service Delivery Indicators: RoadsError! Bookmark not defined.

Table 74: Employees: Roads..............Error! Bookmark not defined.

Table 75: Capital expenditure 2015/16: Road servicesError! Bookmark not defined.

Table 76: Stormwater infrastructure....Error! Bookmark not defined.

Table 77: Cost of construction/maintenance of stormwater systemsError! Bookmark not defined.

Table 78: Employees: Stormwater......Error! Bookmark not defined.

Table 79: Planning challenges............Error! Bookmark not defined.

Table 80: Applications for land use developmentError! Bookmark not defined.

Table 81: Town planning and building control service delivery statistics Error! Bookmark not defined.

Table 82: Employees: Planning..........Error! Bookmark not defined.

Table 83: Service delivery indicators: LEDError! Bookmark not defined.

Table 84: LED Highlights....................Error! Bookmark not defined.

Table 85: LED challenges...................Error! Bookmark not defined.

Table 86: Job creation through grant projectsError! Bookmark not defined.

Table 87: Job creation through EPWP projectsError! Bookmark not defined.

Table 88: Tourism awareness/events. Error! Bookmark not defined.

Table 89: Employees: LED.................Error! Bookmark not defined.

Contents

Table 90: Libraries highlights..............Error! Bookmark not defined.

Table 91: Libraries challenges............Error! Bookmark not defined.

Table 92: Service statistics –Libraries Error! Bookmark not defined.

Table 93: Service delivery indicators: LibrariesError! Bookmark not defined.

Table 94: Employees: Libraries..........Error! Bookmark not defined.

Table 95: Service delivery indicators: CemeteriesError! Bookmark not defined.

Table 96: Employees: Cemeteries......Error! Bookmark not defined.

Table 97: Special programmes executed during 2015/16Error! Bookmark not defined.

Table 98: Employees: Social programmesError! Bookmark not defined.

Table 99: Service data for Traffic, security and licensingError! Bookmark not defined.

Table 100: Employees: Traffic, security and licensingError! Bookmark not defined.

Table 101: Aerodrome (Airfield) challengesError! Bookmark not defined.

Table 102: Community halls highlights. Error! Bookmark not defined.

Table 103: Community halls challengesError! Bookmark not defined.

Table 104: Employees: Community hallsError! Bookmark not defined.

Table 105: Swimming pools challengesError! Bookmark not defined.

Table 106: Caravan park highlights......Error! Bookmark not defined.

Table 107: Caravan park challenges....Error! Bookmark not defined.

Table 108: Nature reserves highlights. .Error! Bookmark not defined.

Table 109: Nature reserves challenges Error! Bookmark not defined.

Table 110: Sport grounds challenges.. .Error! Bookmark not defined.

Table 111: Employees: Sport grounds..Error! Bookmark not defined.

Table 112: Executive and Council highlightsError! Bookmark not defined.

Table 113: Executive and Council challengesError! Bookmark not defined.

Table 114: Service delivery indicators: Executive and CouncilError! Bookmark not defined.

Table 115: Employees: Executive and CouncilError! Bookmark not defined.

Table 116: Service standards for Financial ServicesError! Bookmark not defined.

Table 117: Financial Services highlightsError! Bookmark not defined.

Table 118: Financial Services challengesError! Bookmark not defined.

Table 119: Service delivery indicators: Financial ServicesError! Bookmark not defined.

Contents

Table 120: Employees: Financial ServicesError! Bookmark not defined.

Table 121: Human Resources highlightsError! Bookmark not defined.

Table 122: Human Resources challengesError! Bookmark not defined.

Table 123: Service delivery indicators: Human ResourcesError! Bookmark not defined.

Table 124: Employees: Human ResourcesError! Bookmark not defined.

Table 125: Corporate Services highlightsError! Bookmark not defined.

Table 126: Corporate Services challengesError! Bookmark not defined.

Table 127: Service delivery indicators: Corporate ServicesError! Bookmark not defined.

Table 128: Employees: Corporate ServicesError! Bookmark not defined.

Table 129: Capital expenditure 2015/16: Corporate ServicesError! Bookmark not defined.

Table 130: Service delivery priorities for 2016/17: Development and transformation of the institution to capacitate Hantam Municipality Error! Bookmark not defined.

Table 131: Service delivery priorities for 2016/17: Facilitate Economic Development in the Hantam Municipal Area Error! Bookmark not defined.

Table 132: Service delivery priorities for 2016/17: Maintain a financially sustainable and viable municipalityError! Bookmark not defined.

Table 133: Service delivery priorities for 2016/17: Promote good governance and public participation Error! Bookmark not defined.

Table 134: Service delivery priorities for 2016/17: Sustainable Infrastructure Development and Basic Service Delivery Error! Bookmark not defined.

Table 1: National KPIs: Municipal transformation and organisational development Error! Bookmark not defined.

Table 2: Highlights: Municipal Transformation and Organisational Development Error! Bookmark not defined.

Table 3: Challenges: Municipal Transformation and Organisational Development Error! Bookmark not defined.

Table 4: EE population 2015/16........Error! Bookmark not defined.

Table 5: Occupational levels.............Error! Bookmark not defined.

Table 6: Staff turnover rate as at 30 June 2015Error! Bookmark not defined.

Table 7: Termination Categories.......Error! Bookmark not defined.

Table 8: Injuries................................Error! Bookmark not defined.

Table 9: Sick leave............................Error! Bookmark not defined.

Table 10: Disciplinary cases of financial misconductError! Bookmark not defined.

Table 11: HR policies reviewed..........Error! Bookmark not defined.

Table 12: Skills matrix.........................Error! Bookmark not defined.

Table 13: Details of training implementedError! Bookmark not defined.

Table 14: Skills Development.............Error! Bookmark not defined.

Table 15: Budget allocated and spent for skills developmentError! Bookmark not defined.

Contents

Table 16: Personnel expenditure........Error! Bookmark not defined.

Table 17: Personnel expenditure........Error! Bookmark not defined.

Table 18: Financial performance 2015/16Error! Bookmark not defined.

Table 19: Performance against budgetsError! Bookmark not defined.

Table 20: Revenue by vote.................Error! Bookmark not defined.

Table 21: Revenue by source.............Error! Bookmark not defined.

Table 22: Operational services performanceError! Bookmark not defined.

Table 23: Financial performance: Office of the Municipal ManagerError! Bookmark not defined.

Table 24: Financial performance: FinanceError! Bookmark not defined.

Table 25: Financial performance: AdministrationError! Bookmark not defined.

Table 26: Financial performance: Human ResourcesError! Bookmark not defined.

Table 27: Financial performance: Holiday resorts and campsitesError! Bookmark not defined.

Table 28: Financial performance: Swimming pools and sport groundsError! Bookmark not defined.

Table 29: Financial performance: Community facilities and Thusong centres Error! Bookmark not defined.

Table 30: Financial performance: Traffic Services and Law EnforcementError! Bookmark not defined.

Table 31: Financial performance: Fire Services and Disaster Management Error! Bookmark not defined.

Table 32: Financial performance: LibrariesError! Bookmark not defined.

Table 33: Financial performance: LEDError! Bookmark not defined.

Table 34: Financial performance: Road transportError! Bookmark not defined.

Table 35: Financial performance: Environmental protectionError! Bookmark not defined.

Table 36: Financial performance: ElectricityError! Bookmark not defined.

Table 37: Financial performance: WaterError! Bookmark not defined.

Table 38: Financial performance: Waste water managementError! Bookmark not defined.

Table 39: Financial performance: Waste managementError! Bookmark not defined.

Table 40: Grant performance for 2015/16Error! Bookmark not defined.

Table 41: Conditional grant (excl. MIG)Error! Bookmark not defined.

Table 42: Reliance on grants..............Error! Bookmark not defined.

Table 43: Liquidity financial ratio.........Error! Bookmark not defined.

Table 44: Borrowing management......Error! Bookmark not defined.

Table 45: Employee costs...................Error! Bookmark not defined.

Contents

Table 46: Repairs and maintenance...Error! Bookmark not defined.

Table 47: Capital expenditure: New assets programmeError! Bookmark not defined.

Table 48: Capital expenditure by funding sourceError! Bookmark not defined.

Table 49: Capital expenditure on the 5 largest projectsError! Bookmark not defined.

Table 50: Municipal Infrastructure Grant (MIG)Error! Bookmark not defined.

Table 51: Cash flow............................Error! Bookmark not defined.

Table 52: Gross outstanding debtors per serviceError! Bookmark not defined.

Table 53: Service debtor age analysisError! Bookmark not defined.

Table 54: Actual borrowings...............Error! Bookmark not defined.

Table 55: Municipal investments.........Error! Bookmark not defined.

Table 56: Declaration of loans and grantsError! Bookmark not defined.

Table 57: AG report on financial performance 2014/15Error! Bookmark not defined.

Table 58: AG report on service delivery performance 2014/15Error! Bookmark not defined.

Table 59: AG report on financial performance 2015/16Error! Bookmark not defined.

Table 60: AG report on service delivery performance 2015/16Error! Bookmark not defined.

LIST OF FIGURES

Figure 1: Map of Hantam Municipality..............................................13

Figure 2: Map of Hantam road infrastructure...................................14

LIST OF GRAPHS

Graph 1: Households with access to basic services........................24

Graph 2: Distribution of households by access to piped water and municipality (Census 2011)Error! Bookmark not defined.

Graph 3: Distribution of households by type of toilet facility and municipality (Census 2011) Error! Bookmark not defined.

Graph 4: Electricity service delivery levelsError! Bookmark not defined.

Graph 5: Refuse removal service delivery levelsError! Bookmark not defined.

Graph 6: Revenue..............................Error! Bookmark not defined.

Graph 7: Operating expenditure........Error! Bookmark not defined.

Graph 8: Reliance on grants..............Error! Bookmark not defined.

Graph 9: Liquidity ratio.......................Error! Bookmark not defined.

Contents

Graph 10: Capital charges to operating expenditure ratioError! Bookmark not defined.

Graph 11: Employee costs ratio...........Error! Bookmark not defined.

Graph 12: Repairs and maintenance ratioError! Bookmark not defined.

Graph 13: Actual borrowings...............Error! Bookmark not defined.

Chapter 1: Mayor’s Foreword and Executive Summary

CHAPTER 1: MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

COMPONENT A: MAYOR’S FOREWORD

As Mayor of Hantam Municipality, I would like to present the Annual Report for the 2015/16 financial year. Since the commencement of our term

of office, we have endured both successes and challenges. As Council of Hantam Municipality, we are standing tall to support our administration

to ensure rendering of improved services to our community and building better lives for our people.

A highly credible Integrated Development Plan (IDP) was developed and approved by Council on the 28 th of May 2015. This ensure more

effective planning for the new financial year and full alignment of the Service Delivery and Budget Implementation Plan (SDBIP).

Local economic development is the major driving force for long term sustainable service delivery and job creation and also lessen the burden on

governmental resources. The following projects are currently in progress:

Mainstream renewable energy windfarm at Loeriesfontein.

Solar capital (Solar panels) which will commence in 2016 in Loeriesfontein.

Dwarsrug solar power

Rooibostee extract Niewoudtville – extended project

Ramskop Abattoir Casp Project – which focus on cleaning of offal of the two abattoirs

Once again 98% of our MIG allocations was spent. The main infrastructure upgrades for the 2015/16 year included the:

Construction of a new waste water read bed for Calvinia

Upgrading of Nieuwoudtville Waste Water Treatment

Completion of the RBIG RIS Study for Loeriesfontein

Paving of roads in the Hantam Municipality

Completion of a new reservoir for Nieuwoudtville

Our key focus is on service delivery and we continuously strive to improve on the quality and level of services. The implementation of the Back-

to-Basics programme also enhanced improvements in service delivery. The overall political and administrative stability in Hantam Municipality

allows for effective service delivery and administrative efficiency. Commitment and sterling performances of our Municipal Manager, his

administrative staff and council officials further contribute to our successes.

Three (3) wards in Calvinia and Loeriesfontein were re-established which enables better communication between ward councillors and

communities in these specific wards. During this period the ward committees improved on community participation, however, there is still room

for improvement in harnessing closer co-operation and collaboration between communities and the municipality.

Although we are immensely proud of our achievements, we still face challenges which we are addressing on an on-going basis. Some of these

challenges include:


The increase of housing needs in Calvinia due to funding allocations not received

The water crisis in Loeriesfontein and Brandvlei due to boreholes that have dried up

The ageing of infrastructure

I would like to express my appreciation and thanks to all councillors, the Municipal Manager and his senior management team, as well as all

officials of the Hantam Municipality for their hard work. I would also like to thank our ward committee members and the community for their

support and participation in the affairs of our municipality during the year under review.

CLR. A.N. CLAASSEN

MAYOR


COMPONENT B: EXECUTIVE SUMMARY

1.1 MUNICIPAL MANAGER’S OVERVIEW

During the 2015/16 financial year, Hantam Municipality once again experienced a stable management environment and therefore manage to

deliver quality basic services to its community.

At year end the municipal manager, director finance, director corporate services were acting, which contribute to a stable environment and it

also strengthen our call to improve on the quality of services to our community.

Our complaints management system also ensures complaints, which affects basic service delivery, being addressed more effectively and

timeously. The dedication of our administration to the Back-to-Basics programme really add value to our successes, especially our focus on

service delivery and good governance. Regular management meetings also ensured that service delivery issues were addressed more

vigorously and ensured that council resolutions were implemented successfully.

The adoption of a new and more streamlined and fully aligned Integrated Development Plan (IDP) on the 28 th of May 2015, will definitely

improves on more effective planning and legislative compliance for the new financial year. The municipality continuous to support local

economic development opportunities which create more employment opportunities and also added to the upliftment of our communities. Current

local economic developments in the municipal area are the Renewal Energy Windfarm Project in Loeriesfontein, solar energy projects in

Loeriesfontein and Dwarsrug, the Rooibos Extract Extended Project in Nieuwoudtville and the Ramskop Abattoir Casp Project.

We managed to spend 98% of our MIG. Given the current reality around poverty in our municipal area, the indigent grant was utilized in a

sustainable manner for those who qualified. Numerous policies were updated, reviewed and developed in order to strengthen our capacity and

service standards.

We are thankful looking back on a very successful year with many highlights, but we are also aware of our challenges. These challenges

includes:-

Strengthening our revenue based;

Water shortages especially in Loeriesfontein and Brandvlei;

Ageing of our infrastructure;

Inadequate maintenance budget which attributed to our limited income base;

Insufficient funding allocation;

Decrease in our equitable shares;

Updating of our asset register with reference to old assets; and

Strengthening of our public participation processes

I would like to thank all councillors, staff, our community and stakeholders for their unwavering support. This has been appreciated and highly

cherished.


J.R. VAN WYK

ACTING MUNICIPAL MANAGER


1.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

This report addresses the performance of the Hantam Municipality (HM) in the Northern Cape in respect of its core legislative obligations. Local

government must create the participatory framework that defines and enhances the relationship between elected leaders and their communities.

This requires that the council of the municipality provides regular and predictable reporting on programme performance and the general state of

affairs in their locality.

The 2015/16 annual report reflects on the performance of the HM for the period 1 July 2015 to 30 June 2016. The annual report is prepared in

accordance with Section 121(1) of the Municipal Finance Management Act (MFMA), in terms of which the municipality must prepare an annual

report for each financial year.

1.2.1 Vision and Mission

a) Vision

“To create a tourism and investment friendly environment in which growth and cost-effective service can take place and where people can realize their full potential”

b) Mission

“In partnership with the community we create homes for all”

1.2.2 Demographic Information

a) Municipal Geographical Information

The HM covers approximately 30 000 square kilometres and includes Calvinia (the centre), as well as Brandvlei, Loeriesfontein, Middelpos,

Nieuwoudtville and Swartkop. The Hantam Municipality is one of six local municipalities that form part of the Namakwa District Municipality.


Figure 1: Map of Hantam Municipality

Calvinia is approximately 400 km from Cape Town, Springbok, Upington and Beaufort West and links to the surrounding towns via the following

roads:

R27 to Nieuwoudtville in the west and to Brandvlei in the north-east

R63 to Williston in the east

R354 to Middelpos which lies to the south-east

R355 to Loeriesfontein which is situated to the north-west of Calvinia

Low accessibility is a restriction to economic development in the area. A 1 250 meter tarred landing strip, which is situated close to Calvinia, is currently being used by many tourists who wish to visit this beautiful part of the Northern Cape and by the Red Cross for emergency.


Figure 2: Map of Hantam road infrastructure

Seventy per cent of the population of approximately 20 000 people live and work in the towns. Farming is the main contributor to the economy,

namely sheep, wool, lucerne as well as rooibos tea. Numerous government departments are also situated in Calvinia. The Hantam is well

known for its wide open spaces, stunning mountain ranges and nature reserves filled with an incredible array of plants and bulbs which are

indigenous to the area.

The municipality delivers basic services to the communities of Calvinia, Brandvlei, Loeriesfontein, Nieuwoudtville, Middelpos and Swartkop.

The Municipality is currently structured into the following wards:

Ward Areas

1 Calvinia

2 Calvinia

3 Brandvlei and Swartkop

4 Nieuwoudtville and Middelpos

5 Loeriesfontein

Table 1: Municipal wards

The major towns of HM

Calvinia

Calvinia is named after the French religious reformer Jean Calvin. The town is just

south of the Hantam mountains on the banks of the Oorlogskloof (meaning "War


Ravine") River. Calvinia enjoys 80% starlight and is renowned for its kaleidoscope of spring wildflowers coinciding with the Namaqualand

wildflower spectacle.

The name Hantam is derived from the Khoisan word Han-ami, which refers to a plant with edible roots (Pelargoniumbifolium, in Afrikaans

"uintjies"). Han-ami means "where the red bulbs grow".

The first reverend, N.J. Hofmeyr, proposed that the church be named after John Calvin. On 30 October 1851 the town was officially named

Calvinia. It became a municipality in 1904.

The Calvinia Museum is housed in the former art deco styled Jewish synagogue built in 1920. The museum portrays the lives of the early

European settlers. It displays a cedar woodhorse mill and mounted Cape fat-tailed, Merino and Dorper sheep. Unusual specimens, such as a 4-

legged ostrich, can also be viewed here.

The Akkerendam Nature Reserve is located three kilometres north of Calvinia. The reserve offers unique flowers and two hiking trails across the

Hantam mountain range. The indigenous and rare sterboom (literally translated "star tree") (Cliffortiaarboreais) can be seen here.

The Hantam Meat Festival, an agricultural show and great barbecue (Afrikaans

"braai"), takes place every year in late August.

Brandvlei

Brandvlei is a small town in the Karoo region of the Northern Cape. This is

where a 19th-century trekboer called ‘Ou Brand’ settled. Brand camped at

this spot at the Sakrivier, a dry riverbed, which only occasionally had water

after good rains and which typically resulted in flash floods. The settlement

was divided into two by such a flood in 1961. After it was recovered, a

municipality was formed in 1962.

Brandvlei is located in the Bushmanland, also known as the Thirst Land

(“Dorsland” in Afrikaans). This area was once sub-tropical during the Miocene period and many fossils have been found which date to this

period. Today, however, this region contains very scares vegetation, primarily consisting of low shrubs and yellow grass among a rocky desert

kind of landscape.

Loeriesfontein

The town of Loeriesfontein lies within a basin surrounded by mountains and is accessed via the N7 highway (north out of Cape Town).

Loeriesfontein became a municipality in 1958, but it has since lost that status in

a re-organization of municipal responsibilities that incorporated it into HM.

The town formed around a general store established in 1894 by a British

travelling bible salesman named Fredrick Turner, the son of the sister of

Charles Spurgeon. The store around which Loeriesfontein formed still

exists today and is currently owned by Victor Haupt, the grandson of

Fredrick Turner. The shop is called Turner &Haupt SPAR, and has been in

the family for 113 years.

South-western Loeriesfontein forms part of the wider region known as

Namaqualand, an area well known for its spring flowers (August and September) and its large variety of diverse vegetation - some 4,000


varieties are said to be evident in this region. During ‘blom seisoen’ or ‘flower season’, the flowers attract many visitors to the region, while at

other times activities centre on agriculture (sheep) and mining (salt).

Nieuwoudtville

Nieuwoudtville lies on the Bokkeveld Escarpment and was established

in 1897. It is a unique International Biodiversity Hotspot and lies on the

Bokkeveld Plateau, where the Cape fynbos meets the Hantam Karoo,

Bushmanland and the Knersvlakte. It is a place where the silence,

space and stars contribute to a tranquil way of life.

Middelpos

The small village of Middelpos lies in the southern parts of the Roggeveld.

This privately owned village is a place where the experience of silence, space

and stars contribute to a tranquil way of life. Middelpos is half way between

Sutherland and Calvinia on the R354 and there is also a direct access road from

Ceres.

Apart from the school and police station, the town also has a hotel, shop, garage

and post office, as well as more than 50 residences with a population of ±300

people

b) Population

According to Census 2011, HM has a total population of 21 578. The population of

HM is remaining stable with little or no growth. There is also a high percentage (%) of

backyard housing dwellings and illegal land occupants within the municipal area due to the non-availability of formal housing or serviced sights.

The table below illustrates the population in the municipal area since 2001:

Population 2001 2009 2011

Number of people residing in the Hantam municipal area 19 942 20 351 21 578

Table 2: Population of HM

HM’s population of 21 578 are 82.2% coloured, 12.1% white, 4.4% black African and 0.7% Indian/Asian. The remainder of the population (0.6%)

is made up by other groups.

Year Black African Coloured Indian or Asian White Other Grand Total

2011 949 17 737 151 2 611 130 21 578

Table 3: Population by race

The Census 2011 population figures per ward are indicated in the table below (Hantam is per definition the non-urban area and includes inter

alia Middelpos, Swartkop, Klipwerf, Diepdrif and Elandsvlei, unless otherwise stated):

Area Black African Coloured Indian or Asian White

Brandvlei 18 2 088 3 199


Area Black African Coloured Indian or Asian White

Calvinia 144 6 937 24 1 355

Hantam 48 4 147 0 1 010

Loeriesfontein 15 2 057 3 331

Nieuwoudtville 39 1 172 6 220

Table 4: Population by race per area

The table below includes data regarding the composition of the population per age and gender category. The population pyramid indicates that

a significant portion of the population is younger than 20 years, which is not uncommon for a rural community. It is, however, a concern that so

few people (the ‘employable’) between the ages of 20 and 40, resides in the area.

Age Group % Males % Females0-4 4.8 4.25-9 4.7 4.3

10-14 4.8 4.515-19 4.6 4.2 20-24 3.9 3.725-29 3.7 3.530-34 2.9 2.835-39 3.2 3.340-44 3.4 3.545-49 3.3 3.350-54 2.9 3.155-59 2.4 2.560-64 1.9 2.065-69 1.4 1.670-74 1.0 1.275-79 0.6 0.880-84 0.3 0.685+ 0.2 0.5

Grand Total 50.1 49.9

Table 5: Population by age and gender

c) Households

More than 35% of the households in the municipal area are indigent, which have an impact on own revenue generated by the municipality. The

highest number of indigents stays in Calvinia.

Area Households 2015/16 IndigentsCalvinia 2 130 964Brandvlei 800 442Loeriesfontein 1 058 668Nieuwoudtville 644 276


Area Households 2015/16 IndigentsMiddelpos 48 30Swartkop 46 37Farms 2 200 65

Total 6 951 2 482

Table 6: Total number of households (April 2015)

Households 2008/09 2009/10 2011/12 2012/13 2014/15 2015/16

Number of indigent households

1 741 1 885 1 905 1 938 2 211 2 482

Table 7: Total number of indigent households

The following table includes statistics regarding individual monthly income.

Employment Status Number

Employed 6 247

Unemployed 838

Discouraged Work Seeker 446

Not economically active 6 335

Table 8: Employment for those aged 15-64

Unemployment and poverty affects a large number of people within the municipal area. The unemployment rate for the youth is 15.3%

according to the 2011 Census. Of the 7 085 economically active people in the municipal area, 11.8% are unemployed.

d) Key economic sectors and employment by industry

Agriculture forms the backbone of the economy in the municipal area and this sector has the most employment opportunities. Despite the harsh

climate and poor carrying capacity of the veld, it still offers opportunities for growth and employment creation. The municipal area is dependent

upon the following main economic activities:

Industry Northern Cape Namakwa DM HantamAgriculture, forestry & fishing 6.2% 4.5% 11.0%Mining and quarrying 23.4% 34.9% 1.2%Manufacturing 3.6% 2.2% 4.5%Electricity, gas & water 2.1% 1.1% 3.4%Construction 1.7% 2.4% 3.0%Wholesale & retail trade, catering & accommodation 11.7% 9.5% 9.9%

Transport, storage and communication 10.2% 10.7% 10.8%

Finance, insurance, real estate and business services 15.3% 11.0% 23.1%

Community, social & personal services 10.7% 11.9% 11.4%

General Government 15.1 % 11.8% 18.4%TOTAL 100% 100% 100%

Table 9: GDP Contribution of Hantam


The sectors that contributed the most to HM are:

Finance, insurance, real estate and business services,

General government,

Community, social and personal services,

Agriculture, forestry and fishing,

Transport, storage & communication.

In terms of the GDP, the HM has a comparative advantage within the Namakwa District Municipality in the following sectors:

Electricity, gas and water,

Agriculture, forestry and fishing,

Finance, insurance, real estate and business services.

At present, economic development opportunities in the Hantam municipal area is based on the following four main growth factors:

a) Agriculture produce, practices and infrastructure

The Hantam area consists largely of non-arable, low potential grazing land and is therefore ideally suited to sheep farming. Other than the

flowers in spring and the pristine Karoo desert environment, there has been minor growth in most of the towns. Calvinia forms the heart of one

of South Africa’s largest wool-producing districts, but the other towns have not developed further than the existing resources could take them.

Other recently economic activities include flower, bulbs and rooibos tea industries. Agriculture activities that can therefore take place in the

Hantam, include:

Sheep farming for meat and wool,

Beneficiation plants of sheep farming (sheep skin and offal),

Goat farming,

Game farming,

Farming of flower bulbs,

Rooibos tea production,

Seed potato production,

Lucerne and wheat production in Calvinia along riverbank.

b) Mining

There are some mining activities in the Hantam, which include salt and gypsum mining, but are not a labour intensive opportunity. Some

potential mining activities can include:

Salt (around Brandvlei and Loeriesfontein),

Gypsum (Around Brandvlei and Loeriesfontein),

Ceramic clay (Calvinia),

Quartzite, sandstone, silt and shale (Nieuwoudtville).

However, there are a number of limiting (structural) issues that could impact on the extent of growth in the area, i.e.

The different towns in the area are small and lack the potential for strong local development momentum,

The tourism attractions do not draw large numbers of visitors,

There are no significant (new) development projects in the area attracting (new) investors or supply-chain additions,

Water supply limitations,


Climate change that will affect South Western Africa quite significantly, implying lower rainfall and some dampening of the current

pattern of agricultural production,

Most of the Hantam’s population are living in small, dispersed settlements and have limited transport capacity to travel the often-

significant distances between urban centres.

c) Tourism related opportunities

A significant economic factor is “flower” tourism that is based on Namaqualand’s fantastic annual wildflower displays that cover regions in a

kaleidoscope of colour each spring. Although it is distinctly seasonal, there are indications that in recent years the regional ecotourism industry

is diversifying with greater number of tourists arriving throughout the year. The potential is therefore in:

Eco-tourism,

Adventure tourism,

Historical and cultural tourism (rich heritage of the Khoi San/Nama people),

Agri-tourism (Rooibos tea route).

Tourism should be viewed as the main growth point for the region as it is the main driver behind boosting the money supply of marginalized

towns.

1.2.3 Socio Economic Information

a) Socio economic profile

Total population 21 578

Young (0-14) 27.5%

Working age (15-64) 64.3%

Elderly (65+) 8.3%

Dependency ratio 55.6

Sex ratio 100.4

Growth rate 0.59% (2001-2011)

Population density 1 persons/km2

Unemployment rate 11.8%

Youth unemployment rate 15.3%

No schooling aged 20+ 14.4%

Higher education aged 20+ 8.1%

Matric aged 20+ 18.8%

Number of households 6 340

Number of agricultural households 1 256

Average household size 3.2

Female-headed households 33.6%

Formal dwellings 96.9%

Housing owned/paying off 54%

Flush toilet connected to sewerage 53.7%

Weekly refuse removal 72.5%

Piped water inside dwelling 59.8%


Electricity for lighting 76.9%

Table 10: Socio economic profile

1.2.4 Municipal Challenges

The following general challenges are experienced by the municipality:

Challenges Actions to address

Liquidity Credit Control Policy implementation

Scarce water resources RBIG and MIG funding

High electricity and water losses Maintenance plans

Skilled staff Attracting and retaining skilled staff

Table 11: Municipal challenges


1.3 SERVICE DELIVERY OVERVIEW

1.3.1 Introduction

The HM delivers the following basic services to its community:-

● Water

● Sanitation

● Electricity

● Refuse removal

Basic services Actual performance

Water 100%

Sanitation 100%

Electricity 100% for all towns except Middelpos

Refuse removal 100% once per week

Roads 1 000 m2 road paved

Table 12: Basic service delivery performance

Water: The municipality has been experiencing an extreme water crisis in Loeriesfontein where all the water in the boreholes (wells), which

provide the town with water, dried up. The municipality had to deliver water to the residence by truck on a daily basis. This had a tremendous

financial impact on the municipality with a monthly expense of R270 000 per month. Alternative short-, medium- and long-term plans were

implemented to try to manage the crises.

Sanitation: The bucket system has been eradicated within the municipal area. There are no sanitation backlogs in HM. The Green Drop score

is 52.44% which indicates an improvement on previous assessments. However, Middelpos is still a major risk as it indicates that the disposal of

waste may detrimentally impact on a water resource (groundwater).

Refuse removal: The municipality has 4 landfill sites of which Calvinia, Brandvlei and Loeriesfontein have permit licenses and Nieuwoudtville is

in the process of obtaining a permit license. Although these sites are fully functional, illegal dumping of waste in the municipal area remains a

major challenge.

Roads: One of the major challenges experienced by the municipality is the ongoing maintenance of potholes due to insufficient funds.

1.3.2 Basic Service Delivery Highlights

The following highlights were achieved by the municipality with regards to basic service delivery:

Highlight Description

Sanitation Waste Water Treatment Works in Calvinia commenced in February 2014 and rolled over in the new financial year

Sanitation Waste Water Treatment Works in Nieuwoudtville was upgraded from MIG funds

Table 13: Basic services delivery highlights

1.3.3 Basic Service Delivery Challenges

The following general challenges are experienced by the municipality with regards to basic service delivery:


Service Challenges

Lack of Infrastructure

InfrastructureReplacement of existing infrastructure

Sufficient funding for new infrastructure

Reduction of losses

Reduction of electricity losses Installation of new equipment to monitor electricity losses

ESKOM national electricity crisis Lack of generators during power failure

Reduction of water losses Installation of new equipment to monitor water losses

Loeriesfontein water crisis Speed up RBIG programme

Roads

Roads

All existing roads in the municipality require improvement

Consistency in maintenance by training programmes

Shortage of plant and equipment

Shortage of skilled people in civil and general building industry

Housing

Lack of land for housing developmentLack of land for housing development without erection of bulk water and sewer.Funding: Commitment from COGHSTA

Town planning Update of SDF to align with SPLUMA

Sanitation & Solid waste

Solid wasteShortage of equipment and plant for land fill sites

Illegal dumping

Table 14: Basic services delivery challenges

1.3.3 Proportion of Households with access to Minimum Level of Basic Services

The table below shows the total of households that do have access to the minimum levels of basic services

Level of Services2014/15 2015/16

No of households % No of

households %

Electricity service connections 4 492 98.5 4 597 98.5

Water - available within 200 m from dwelling 4 742 100 4 597 100

Sanitation - Households with at least VIP service 4 742 100 4 597 100

Waste collection - kerbside collection once a week 4 742 100 4 597 100

Table 15: Households with minimum level of basic services

1.4 FINANCIAL HEALTH OVERVIEW

1.4.1 Introduction

The last financial years were years of growth in the financial accountability of the municipality and a qualified audit was achieved for the 2015/16

financial year.


Some aspects are matters of concerns regarding the financial viability of the municipality, of which liquidity is the most important. The debtor’s

book is growing at an alarming rate and the indigent households in the municipality have grown as well. The liquidity puts the service delivery at

risk and result in low maintenance levels. The spending on maintenance on assets is below the norm set by National Treasury which is

currently on 4.9% (Norm is 8%).

The municipality is reliant on grants to finance expenditure due to our limited revenue raising capacity. The equitable share stayed constant

over the past 3 years. This creates pressure on the municipality due to inflation increases annually and the increase in the indigent population.

1.4.2 Financial Viability Highlights

The following highlights were achieved by the municipality:


Minimum competency 52% of staff have minimum competency in finance

Audit opinion The municipality achieved an qualified audit opinion in the 2015/16 financial year (qualified 2014/2015)

Table 16: Financial viability highlights

1.4.3 Financial Viability Challenges

The following general challenges are experienced by the municipality:

Section Challenges

Non-Payment

Poor payment

Non-payment of service accounts by economic active consumers lead to cash flow challenges

Correct register of indigent households to ensure correct equitable share allocation

SCOA & GRAP

mSCOA Implementation of mSCOA as a whole

GRAP Capacity of staff to implement and apply GRAP standards

Table 17: Financial viability challenges

1.4.4 Financial Overview

The table below shows the financial overview of the municipality:

DetailsOriginal budget Adjustment budget Actual

R’000

Income 112 303 113 522 94 562

Grants 52 341 52 341 42 524

Taxes, Levies and tariffs 43 227 43 876 38 714

Other 16 735 17 305 13 324

Less: Expenditure 85 857 87 029 87 508

Net surplus/(deficit) 26 446 26 493 7 054

Table 18: Financial overview

1.4.5 Operating Ratios


The following table contains the operating ratios for the 2015/16 financial year:

DetailExpected norm Actual % Variance

(%)

Employee cost 35 37 2

Repairs & maintenance 8 4.9 (3.6)

Finance charges & depreciation 18 10.4 (7.6)

Table 19: Operating ratios

1.4.6 Total Capital Expenditure

The table below shows the total capital expenditure for the last two financial years:

Detail2014/15 2015/16

(R’000)

Original budget 23 544 26 473

Adjustment budget 28 138 26 823

Actual 25 188 15 892

Table 20: Total capital expenditure

1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW

1.5.1 Municipal Transformation and Organisational Development Highlights

The following highlights were achieved by the municipality regarding municipal transformation and organisational development:


Employment Equity Appointments in middle management in terms of Employment Equity

Workplace Skills Plan 100% expenditure on training budget

Client focus 98% of complaints successfully addressed

Council meetings 88% of council resolutions implemented

Table 21: Municipal transformation and organisational development highlights

1.5.2 Municipal Transformation and Organisational Development Challenges

The following general challenges are experienced by the municipality regarding municipal transformation and organisational development:

Section Challenges

Human Resource Management

Commonage Selling of commonage land and addressing objections from public

Policies Adoption of policies developed and review

By-Laws Review of by-laws

Record Management

Record Management Sufficient office space

Administration: Town Planning

Interim valuation roll Adoption of interim valuation roll by Council

Council Secretarial Services


Section Challenges

Council committee meetings Regular committee meetings

Housing

Ward waiting list Increase in housing backlog for Calvinia

Service of 247 (260) plots for Calvinia Funding from provincial government

Switchboard/Customer Care

Customer complaints system No IT Officer to assist with the implementation of an sms and email system for complaints

Table 22: Municipal transformation and organisational development challenges

1.5.3 MFMA Competencies

In terms of Section 83 (1) of the MFMA, the acting accounting officer, senior managers,acting chief financial officer, non-financial managers and

other financial officials of a municipality must meet the prescribed financial management competency levels that are key to the successful

implementation of the Municipal Finance Management Act. National Treasury has prescribed such financial management competencies in

Government Notice 493 dated 15 June 2007.

In order to assist the above-mentioned officials to acquire the prescribed financial competencies, National Treasury, with the collaboration of

various stakeholders and role players in the local government sphere, developed an outcomes-based NQF level 6 qualification in municipal

finance management. In terms of the Government Notice 493 of 15 June 2007, “(1) No municipality or municipal entity may, with effect 1

January 2013 (exempted to 30 September 2015 in terms of Government Notice 179 of 14 March 2014) , employ a person as a financial official if

that person does not meet the competency levels prescribed for the relevant position in terms of these Regulations.”

A total of 10 Employees were identified to obtain the above-mentioned qualification and prescribed competencies. By the end of June 2013, a

total of 10 officials (financial and non-financial) were identified and commenced with the minimum competency training. A total of 1 official were

competent at the end of the financial year and the remaining officials are currently in the process of completing their unit standards in terms of

the regulations.

The table below provides details of the financial competency attainment levels amongst financial and supply chain management officials as

required by the regulation:

Description

Total number of officials employed by

municipality (Regulation 14(4)(a) and

(c))

Competency assessments

completed (Regulation 14(4)(b) and (d))

Total number of officials whose performance

agreements comply with Regulation 16

(Regulation 14(4)(f))

Total number of officials that meet

prescribed competency levels (Regulation 14(4)

(e))

Financial officials

Accounting Officer 0 0 0 0

Chief Financial Officer 0 0 0 0

Senior managers 3 3 0 3

Any other financial officials 16 4 0 4

Supply chain management officials

Heads of supply chain management units 1 0 0 1

Supply chain management senior managers N/A N/A N/A N/A

TOTAL 22 4 4 4


Table 23: Financial competency development: Progress report

1.6 AUDITOR-GENERAL REPORT

The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, exists to

strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building

public confidence. In short, the Auditor-General checks the spending of public money by looking at whether it has been used ideally and for the

purposes intended. This is done by annually checking all government spending.

The Auditor-General’s annual audit examines 3 areas:

● Fair presentation and absence of significant misstatements in financial statements

● Reliable and credible performance information for predetermined objectives

● Compliance with all laws and regulations governing financial matters.

There can be 5 different outcomes to an audit, once the municipality has submitted their financial statements to the Auditor-General, which can

be simply defined as follows:

● A clean audit: The financial statements are free from material misstatements and there are no material findings on reporting on

predetermined objectives or non-compliance with legislation.

● Unqualified audit with findings: The financial statements contain material misstatements. Unless a clean audit outcome is

expressed, findings will be raised on either reporting on predetermined objectives or non-compliance with legislation, or both these

aspects.

● Qualified audit opinion: The financial statements contain material misstatements in specific amounts, or there is insufficient evidence

to conclude that specific amounts included in the financial statements are not materially misstated.

● Adverse audit opinion: The financial statements contain material misstatements that are not confined to specific amounts, or the

misstatements represent a substantial portion of the financial statements.

● Disclaimer of audit opinion: Insufficient evidence was provided in the form of documentation on which to base an audit opinion. The

lack of sufficient evidence is not confined to specific amounts, or represents a substantial portion of the information contained in the

financial statements.

1.6.1 Audited Outcomes

The table below illustrates the audit outcomes for the past two years for HM:

Year 2014/15 2015/16

Status Qualified Qualified

Table 24: Audit outcomes

1.7 STATUTORY ANNUAL REPORT PROCESS

Below are a summary of key activities that took place in terms of the IDP, Budget and PMS for the 2015/16 IDP Process:

No. Activity Timeframe



1 June 2015 Assess the 2015/16 IDP & Budget process to address deficiencies, improvements and ensure integration and alignment of processes for 2015/16 - 2017/18

2

July 2015

Attend District IDP Managers Forum Meeting discuss outcomes of IDP and Budget Assessments, challenges and District Interventions i.t.o. IDP and budget planning for the review process

3 Signing of 2015/16 performance contracts for section 56 Managers

4 Prepare and finalise Departmental Plans

5 Final Section 56 Managers 2015/16 performance assessments.

6

August 2015

Draft 2016/17 IDP and Budget process time schedule outlining the steps and timeframes for compilation of the 2016/17 IDP, Budget and two outer year's Budget and SDBIP.

7 Consult Sector Departments to establish programme/projects for 5 years - Inter- Governmental engagements on IDP and Budget

8 Tabling of and briefing Council in Draft 2016/17 IDP/Budget Process Plan for approval, including time schedule for IDP/Budget Public participation meetings

9

September 2015

Advertise the budget process and dates of IDP/Budget Public meetings on municipal website, local newspaper.

10Attend District IDP Managers Forum Meeting.

Develop uniform guidelines for IDP/Budget review

11 Ward Committee meetings - Quarter One

12

October 2015

Submit Quarterly (July - September) on implementation of budget and financial state of affairs to Council

13 Submit MFMA Implementation plan to National and Provincial Treasury

14 Submit bulk resource documentation, electricity to NERSA for consultation on municipal tariffs for 2015/16 and two outer years (D-forms)

15

November 2015

Based on financial statements of 2015/16 determine municipality's financial position & assess its financial capacity & available funding for the next three years

16 Review Municipal Strategies, objectives, KPA's, KPI's and targets - Identification of priority IDP KPI's incorporate in IDP and link to budget.

17 Management articulates outcomes, objectives, priorities and outputs desired for next three years and submit capital budget project proposal for draft IDP Review document to Budget Office

18

December 2015

Finalise preliminary projections on operating and expenditure budget for 2015/16

19 Conclusion of Sector Plans and integration into the IDP Document

20 Ward Committee meetings - Quarter Two

21 January 2016 Management finalise draft IDP & Capital Budget for referral to IDP & Budget Steering Committees.



22 Tabling of 2015/16 Mid-Year Assessment

23 Submit Quarterly report (Oct 2016 - Dec 2016) on implementation of budget and financial state of affairs to Council. (Combining with Sec.72 Report)

24 Tabling of 2015/16 Revised Budget and submitting to National and Provincial Treasury

25 Tabling of Draft Annual Report of 2015/16 year to Council and submit to National Treasury and COGHSTA

26 Reviewing of municipal strategies, KPA's, KPI's and targets (SDBIP)

27 Publication of Revised Budget on municipal website

28February 2016

Municipal receive inputs from National and Provincial Government on factors influencing the budget, e.g. Grant Allocations

29 Attend District IDP Managers Forum meeting to discuss the alignment of IDP Strategic development goals with the District Municipality Draft IDP presentations

30

March 2016

Present Draft IDP and Budget to Steering Committee for quality check

31 Workshop draft IDP and Budget and proposed tariffs and SDBIP with Council

32 Tabling of Draft IDP and Budget and proposed tariffs and SDBIP in Council for approval

33 Ward Committee meetings - Quarter Three. Discuss draft IDP and Budget

34 Council adopt oversight report of the Annual Report of the 2015/16 Year

35

April 2016

Advertise and inviting public comments on Draft Budget, proposed Tariffs and IDP. Place copies of the Draft Budget and IDP at all municipal offices

36 Forward copies of preliminary approved Budget, IDP, SDBIP and related documents to National and Provincial Treasury within 10 working days after tabling

37 Public consultation meetings with communities

38 Engagement with Provincial Treasury on draft budget benchmark

39 CFO and Corporate Services analyse public and ward committee comments and inputs on draft IDP and Budget and prepare recommendations for Council's perusal.

40 Council considers public and Government Dept comments and inputs and revised IDP, Budget and SDBIP if necessary

41May 2016

Present final IDP, Budget and SDBIP for quality check (Including all recommendations made by stakeholders)

42 Table final IDP, Budget and SDBIP and related documents to Council for approval.

43

June 2016

Inform local community on approved IDP and Budget detail by publishing in the local newspaper

44 Send copies of approved Budget, IDP and related documents to National and Provincial Treasury and other stakeholders. Ensure signing the quality certificate. (within 10 working days)

45 Publication of approved IDP and Budget on the municipality's website

46 Submit draft SDBIP to Mayor within 14 days after approval of budget

47 Mayor approves the municipality's SDBIP within 28 days after the approval of the budget and submit hard and electronic copies to National Treasury

48 Municipal Manager to sign certificate that the approved budget is captured correctly in the financial system of the municipality

Table 25: Statutory Annual Report process


Documents

Breede Valley Municipality Annual Report 2012/13 Web viewDuring this period the ward committees improved on community participation, ... This is where a 19th-century . trekboer