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JOHANNESBURG CITY PARKS NPC
ASSOCIATION INCORPORATED UNDER SECTION 21 OF
THE COMPANIES ACT 1973 as amended
2000/028782/08
AANNNNUUAALL RREEPPOORRTT 22001111//1122
(In terms of Section 121 of the Municipal Finance Management Act, 2003 and
Section 46 of the Municipal Systems Act, 2000)
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JOHANNESBURG CITY PARKS NPC
ASSOCIATION INCORPORATED UNDER SECTION 21 OF
THE COMPANIES ACT 1973 as amended
2000/028782/08
COMPANY INFORMATION:
Registration number : 2000/028782/08
Registered Address : Johannesburg City Parks
City Parks House
40 De Korte Street
Braamfontein
2017
Postal Address : P O Box 2824
Johannesburg
2000
Telephone number : (011) 712-6600
Fax number : (011) 712-6796
Website : www.jhbcityparks.com
Bankers : ABSA Bank of SA Limited
Auditors : Auditor-General
Vision
To be a World Class African green environment and cemetery management company.
Mission
To develop, maintain and conserve the green environment and cemeteries for present and
future generations.
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Johannesburg CityParks’ Values
Value
What it means
Service Excellence
We will at all times render the quickest,
responsive and best service to our customers. We
will do so in a competent, timely, cost-effective,
efficient and professional manner.
Caring
We will do our work with care, empathy, respect
and consideration for the well being of our staff,
our customers and stakeholders while
maintaining a safe and healthy work environment.
Accountability
We will at all times take responsibility for our
actions. We will act with integrity in a transparent,
ethical and honest manner.
Ownership
We will take ownership of our work and act with
enthusiasm, enjoyment, passion, pride and
commitment to our work.
Innovation We seek to listen and create new approaches to
what we do.
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TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION AND CORPORATE PROFILE ............................................................................... 7
Section 1: Corporate Profile and Overview of the entity ........................................................................................ 7
Section 2: Strategic Objectives .......................................................................................................................... 10
Section 3: Foreword by the Member of the Mayoral Committee for Community Development Portfolio, MMC C. Vondo12
Section 4: Chairperson’s Foreword ................................................................................................................... 14
Section 5: Managing Director’s Report ............................................................................................................... 16
Section 6: Chief Financial Officer’s Report .......................................................................................................... 22
CHAPTER TWO: PERFOMANCE HIGHLIGHTS .................................................................................................... 30
Section 1: Highlights and Achievements ............................................................................................................ 30
Section 2: Company four-year review ................................................................................................................ 30
Section 3: Capital Projects ................................................................................................................................ 32
Section 4: Performance against IDP Scorecard ................................................................................................... 33
Section 5: Assessment of Arrears on municipal taxes and service charges ............................................................ 42
Section 6: Statement on amounts owed by Government Departments and public entities ..................................... 45
Section 7: Recommendations and Plans for the next financial year. ..................................................................... 46
CHAPTER THREE: DIRECTOR’S REPORT AND GOVERNANCE ............................................................................. 48
Section 1: Corporate Governance Statement ...................................................................................................... 48
Section 2: Board of Directors ............................................................................................................................ 48
Section 3: Board Committees ............................................................................................................................ 58
Section 4: Directors’ Remuneration ................................................................................................................... 61
Section 5: Company Secretarial Function ........................................................................................................... 62
Section 6: Risk Management and Internal controls ............................................................................................. 63
Section 6: Risk Management and Internal controls ............................................................................................. 71
Section 7: Internal Audit Function ..................................................................................................................... 77
Section 8: Response to the Auditor-General Report ............................................................................................ 79
Section 9: Corporate Ethics and Organisational Integrity .................................................................................... 85
Section 10: Sustainability Report ...................................................................................................................... 85
Section 11: Corporate Social Responsibility Report ............................................................................................ 86
CHAPTER FOUR: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT .................................................. 89
Section 1: Human Resource Management .......................................................................................................... 89
Section 2: Building a Diverse Workforce (Employment Equity) .......................................................................... 91
Section 3: Skills Development and Training ....................................................................................................... 92
Section 4: Organisational Development and Performance Management ............................................................... 97
Section 5: Quality of Work life Strategy.............................................................................................................. 98
Section 5.1: HIV and AIDS in the Workplace ....................................................................................................... 98
Section 5.2: Health and Productivity Management.............................................................................................. 99
Section 5.3: Wellness management ................................................................................................................... 99
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Section 6: Employee Benefits .......................................................................................................................... 100
Section 7: Supply Chain Management and Black Economic Empowerment ......................................................... 102
CHAPTER FIVE: AUDITED FINANCIAL STATEMENTS AND RELATED INFORMATION ......................................... 103
CHAPTER SIX: FUNCTIONAL AREA SERVICE DELIVERY REPORT ...................................................................... 106
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CHAPTER ONE: INTRODUCTION AND CORPORATE PROFILE
“Johannesburg City Parks mandate is to continue to address disparities by making the biggest
impact, for the most number of people, within its limited budget. My brief to the Chairperson
and the Acting MD of Johannesburg City Parks is to interrogate innovative and sustainable
solutions to resolve environmental imbalances. ”
Councillor Mpho Parks Tau, Executive Mayor of the City of Johannesburg
Section 1: Corporate Profile and Overview of the entity
Johannesburg City Parks (JCP) is Section 21 Company, incorporated under the seal of the Registrar of
Companies on 15 November 2000 and is credited for changing the landscape of the City for the better.
The greening entity acts as the custodians of the environment on behalf of the City of Joburg and
oversees designated open spaces including park development and maintenance; greening;
conservation and cemetery management.
Accordingly Johannesburg City Parks manages the following assets:
Area of Management Quantity
Number of parks and arterials 2 343
Area of developed parks 4 239.5 hectares
Area of undeveloped parks 2 080.6 hectares
Selected sidewalks 3 593.2 hectares
Nature reserves 1 202,6 hectares
Street trees 1,4 – 1,7 million
Number of cemeteries 36
Area of cemeteries 1 254 hectares
Number of crematoria 2
Number of nurseries 4
Water surfaces 174 hectares
Bird sanctuaries 366,4 hectares
Trails and river trails 107km = 1 587 hectares
Environmental & education centres 6
Size of fleet 312 Vehicles; 131 Trailers
Total number of employees as at 30 June 2012 is 1 579
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Scope of Annual Report
This report summarises the performance and operations for the 2011/12 financial year and is detailed
in the body of the following report:
JCP is committed to the principles of the Joburg 2040 Vision as encapsulated in the strategy of the City
of Johannesburg. The Company has aligned its Business Plan with the Integrated Development Plan
and Environmental Sector Plan of the CoJ via its programmes and projects. This process has led to the
restructuring of its operations which has resulted in the realignment of the regions.
Regionalisation to enhance Service Delivery
The shift to a ward-based service delivery approach as of 1 March 2011, in line with the City of
Johannesburg’s (CoJ) regional boundaries which is based on the current 7 regions and 130 wards
within the CoJ. Ward-based service delivery entailed the development of a customer-centred service
delivery approach in line with the unique requirements of each ward. This has resulted in ward-
specific maintenance and capital development strategies and the equitable distribution of scarce
resources. The war- based approach continues to assist JCP in being more responsive in addressing
customer needs speedily as communities will have direct access to regional offices. These regional
offices are capacitated with the necessary infrastructure and technical skills.
The Rationale: The creation of a flatter organisational structure to speed up response times and management
To make management more accessible to our customers;
To align to the regional boundaries of the CoJ in order to improve overall delivery.
In a nutshell, the aim is to “connect parks and communities” and to improve the quality of life of the
citizens of the City as each ward should have at least one flagship park. The outcome is the equitable
provision of services across the City which is uniquely developed per ward.
The regional offices have been established headed up by a Regional Manager. The Regional Manager is
responsible for all activities within the region, including parks, trees, beautification and cemeteries
maintenance.
The highly effective ‘Regionalisation Plan’ is headed by the Executive Director of Operations and is the
roadmap to service delivery and service excellence in the organisation.
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Functional areas:
Parks and designated public open spaces
Cemeteries management
Environmental conservation
Infrastructure Management
Company Secretariat
Marketing and Communications
Human Resources
Finance
Assurance services
Special projects
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Section 2: Strategic Objectives
JOHANNESBURG CITY PARKS IDENTIFIED THE FOLLOWING AS STRATEGIC GOALS:
FINANCIAL: To Strengthen, Grow and Protect the JCP Financial Resource Base.
Obtain an unqualified audit opinion for both financial and performance information.
Achieve increased levels of financial independence.
Enhance expenditure management.
Facilitate broad based BEE & SMME participation.
CUSTOMER: To Provide Pro-Active and Innovative Solutions to Create and Enhance Value to
all Stakeholders.
Enhance brand equity / loyalty.
Enhance stakeholder relations satisfaction.
Comply with IDP and Sector Plans.
Improve quality and service offering.
INTERAL PROCESS: To Optimise Service Quality and Operational Effectiveness.
Obtain ISO 14001 certification.
Establish nurseries to meet internal requirements.
Establish time and attendance processes and systems.
Achieve world class processes and maintenance standards for flagship facilities.
Improve and establish productivity, costing and service delivery processes and systems.
Establish knowledge and performance information processes and systems.
Monitor and report on open space service quality.
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INNOVATION, LEARNING & GROWTH: To Build Capabilities and Ensure a Conducive Working
Environment.
Establish an efficient and effective organisational structure.
Ensure effective service delivery.
Develop a race, gender, disability and diversity balanced organisation.
Develop high performance teams.
Become an employer of choice.
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Section 3: Foreword by the Member of the Mayoral Committee for Community Development Portfolio, MMC C. Vondo
The City of Johannesburg has experienced several highlights during the 2011/12 financial year.
A significant milestone in the 2011/12 financial year was the enactment of the Growth and
Development Strategy (GDS). The GDS, a 30-year strategic plan towards the Joburg we aspire to
live in, in 2040 - was developed following an outreach process to build a collective and shared
vision for the future of Johannesburg. The Joburg 2040 vision is a culmination of extensive
engagements with thousands of the city’s citizens that have helped shape our shared goal of a
Joburg that offers:
An improved quality of life and development-driven resilience to benefit all its citizens;
To provide a resilient, liveable and sustainable urban environment;
An inclusive, job-intensive, resilient and competitive economy; and
A high performing metropolitan government that proactively contributes to and builds a
sustainable socially inclusive and locally integrated, globally competitive Gauteng City
Region.
Central to the GDS were the following fundamental principles:-
Eradicate poverty;
Build and grow an inclusive economy;
Develop sustainable human settlements;
Ensure resource security and environmental sustainability
Achieve social inclusion through support and enablement, and
Promote good governance.
As a member of the Mayoral Committee for Community Development, I regard the GDS as the
blueprint to which all decisions made in my portfolio will be aligned to.
Johannesburg City Parks has aligned its projects in the 2012/13 Business Plan to the sub-
programmes of the Human and Social Development Cluster which in turn is aligned to the
master programmes of the GDS. The 2012/13 financial year Business Plan forms part of the
beginning of a new mayoral term, which commenced in the 2011/12 financial year and ends in
2015/16.
City Parks has started to focus its activities towards achieving the outcomes in the GDS. These
include food gardens at Kanana Primary School in Midrand, the extension and re-naming of the
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Petros Molefe Eco-Park, the installation of Green Outdoor Gyms in various parks in the city, and
the development of the Rose Street Stimulation Park in Lenasia.
The commitment of City Parks to serve the community is illustrated in the acceleration of
service delivery through their blitz programmes in the various regions. In the new 2012/13
financial year, City Parks will continue to fast track the execution of the GDS mandate to
positively impact on the quality of life of residents.
The projects will include:
Development of Food Gardens and planting of fruit trees;
Environmental Education to contain bylaw contraventions and build civic ownership;
Rollout of additional free-to-use Outdoor Gyms; and the
Development of Public Open Spaces.
City Parks and the Johannesburg Zoo are currently engaged in a merger to combine resources as
part of the Institutional Review Process. This process is aimed at streamlining services,
reducing duplication and enhancing service outputs to reduce operational costs. More
importantly, City Parks and the Zoo will strive to provide residents with the best possible
outdoor experience on offer, in the City of Joburg.
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Section 4: Chairperson’s Foreword
The 2011/12 financial year will be a year that will be remembered by the Board of Directors and the
staff of Johannesburg City Parks (JCP) as a turbulent yet progressive year. The year proved turbulent
as a Hawks investigation into maladministration and corruption commenced shortly after the start of
the financial year on the 1 September 2011 and was not concluded by the close of the financial year.
This resulted in a series of events that had an effect on service delivery and hampered normal
business activities. Mr Bryne Maduka was appointed as the Acting Managing Director.
The following initiatives and strategic imperatives demonstrate that the financial year under review
was a progressive year. The 2011/2012 financial year kicked-off with a 90-day Accelerated Service
Delivery Plan. JCP was able to make a positive impact to this intensive city-wide programme through
initiatives on backlog reduction, litter-free parks, tree planting, safety and security in parks, provision
of burials, cemeteries maintenance, city-wide clean-up campaigns and other greening and
environmental imperatives.
One of the highlights of the 2011/2012 financial year was the introduction of Blitz Wednesdays to
improve service delivery, where each Region identified hotspot areas in consultation with the Ward
Councillors and concentrated the resources for the region to resolve maintenance backlogs.
Another highlight of the 2011/2012 financial year that demonstrated the resilience and service
delivery focus of JCP, was the Mayoral Launch of the outdoor gyms at the Petros Molefe Park in
Soweto. This initiative was a welcome innovation by the Pimville community which is funded as part
of a private public partnership that is in line with the Joburg Growth and Development Strategy (GDS)
2040 aimed at building healthy lifestyles. Food security also took precedence in the organisation with
the development of another two BMW-sponsored vegetable gardens at Kanana Primary and the
Midrand Orphanage. This initiative also talks to the GDS as urban agriculture is a key focus area in
future community developments.
The Board also established a Special Projects Unit, under the leadership of an Executive the unit is
mandated to oversee EPWP, Urban Forestry and Nurseries, Technical Support and Institutional
Memory, Special Projects and the JCP Academy. One of the key strategic imperatives and a key
strategic project that was assigned to the Special Projects Unit was to ensure that there is a
sustainable supply of plantable trees through JCPs internal resources. To this end, tree seedlings
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propagation is already advanced in the period under review and a target of 90 000 tree seedlings
production per annum was set.
Other highlights in the financial year under review that are worth noting are the Jukskei River clean-
up in partnership with the National Department of Environmental Affairs and also the Installation of
solar bees in partnership with the CoJs Environment Management Department in Bruma Lake.
The Board established a project team and a Steering Committee in conjunction with the Board of
Directors of Joburg Zoo to oversee the merger between the entities. A project plan was put together
by the project Committee and presented to the Steering Committee for approval. There has been
considerable progress that has been made during the financial year to advance the merger. Certain
departments in both entities have started working together. Due diligence has been conducted and
the legal requirements for the merger have been met to a large extent.
The most notable event in terms of the Board and Corporate Governance was the Annual General
Meeting, which took place in April 2012. The Board Chairperson, Mr Maropeng Bahula was retired
from the Board and a new Chairperson, Advocate Brenda Madumise was appointed. Also, new non-
executive board members were appointed to the Board and some of the Board members were
appointed on both the Joburg Zoo and the Johannesburg City Parks boards to ensure that the merger
between both entities is concluded seamlessly and expeditiously. The Board, under the capable
leadership of Advocate Madumise, will continue to oversee the merger of both entities and the
strategic imperatives of the merged entity.
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Section 5: Managing Director’s Report
Overview
“What defines a character of a city is its public space, not its private space. What defines the value
of the private assets of the space are not the assets by themselves but the common assets. The value
of the public good affects the value of the private good. We need to show every day that public
spaces are an asset to a city.” -- UN-HABITAT Executive Director Joan Clos i Matheu
Overview
Johannesburg City Parks continues to act as springboard to revitalize communities and
jumpstart environmental activities in the City of Joburg. The mandate to deliver quality services
to as many people as possible, while being cognizant of the need to bridge the green divide and
to work within limited resources as defined in the Growth and Development Strategy,
Integrated Development Plan and the Business Plan, sets the tone and path for which JCP
operates and executes service delivery.
The City is “changing course” and JCPs operations in the period under review has focused on
getting the basics right in providing service delivery through the maintenance of all our
facilities- particularly in townships, changing our focus to connecting with customers by
responding rapidly to their complaints and providing timeous feedback. JCP has further
demonstrated that service delivery is vital on our list of priorities and to this end has
maintained facilities that are outside of the entity’s core mandate such as informal settlements,
provincial roads and national roads. This resulted in positive media coverage and an increase in
staff morale. However, it has placed added pressures on JCPs allocated resources.
Strategic interventions were implemented to narrow the gap between the planned and actual
maintenance, in particular the implementation of Mega and Mini Blitz activities. Each of the 7
Regions identified hot spot areas in consultation with the Ward Councillors, where resources
were redeployed to address the maintenance of backlogs and customer complaints. The Mega
Blitz programme was a major success stemming from the participation of other MEs, the
community, ward councillors and the media.
Customer complaints teams addressed all customer complaints received. Aptly named as “swat
teams”- the focus of these teams was solely to address all customer complaints backlogs.
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These interventions gained popularity through social networks such as, twitter and facebook,
where customers posted positive remarks. The intention was to get back to basics, connect with
the community through visible service delivery at ward-base level, and to change any negative
perceptions which may have been created about the organisation. This resulted in a major
reduction of customer complaints logged resulting in a 88.7% customer complaints resolution,
as opposed to 82% in the comparative period in the 2010/11 financial year. In line with the IDP
targets, maintenance of all our flagship facilities were maintained at 100%.
The Annual General Meeting held on 24 April 2012 resulted in the Chairperson of the Board, Mr
Bahula being retired together with two Board members namely Mr V Ramsingh and
Ms T Johnson. JCP has a new chairperson of the Board, Advocate B Madumise who is supported
with two new Board members namely Mr M Simelane and Dr M Diaho. JCP is confident that the
newly appointed board directors with their professional skills set, will add value to the
organization and drive the organisation to enhance service expecations.
JCP has developed a sound financial status and maintained its high level of financial governance
in order to be compliant with the MFMA. As proof of this the Auditor General has done an
assessment of our key controls for the third quarter with no findings, which shows commitment
to sound financial management and good governance.
A healthy community lifestyle is about both physical and mental wellbeing. JCP offers a unique
experience within its parks with the innovative Outdoor Green Gyms launched in Diepsloot Park
Region A, and Petrus Molefe Park in Region D. JCP plans to roll out at least twenty Outdoor
Green Gyms throughout the City of Joburg in line with the Growth and Development vision of
creating healthy communities.
The Food Garden Programme is another focus area in support of the Growth and Development
Flagship Programme, “A City where none Go Hungry”. JCP has partnered with Engen, Total SA,
BMW, 94.7 Radio Station and the St Johns High School to develop food gardens at the Kanana
Primary School in Alexandra, Abram Kriel Orphanage in Emndeni Soweto, Realogile High School
in Alexandra and various other schools in impoverished areas. In the next financial year, JCP
plans to roll out two food gardens as part of the Capex programme- one in Orange Farm and one
in Diepsloot. These food gardens will have an initial estimated food production to feed fifty
households.
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Job creation and poverty alleviation remain a core focus area. A capacitated and dedicated
Expanded Public Works Programme Unit has ensured the utilisation of local labour on all
Capital projects together with contracted service providers. Emphasis has been placed on
partnering with SMME’s with a view to developing their managerial skills and business acumen.
Job creation through the development of small and micro businesses continues to be a topic of
much debate. However, very few sustainable initiatives have been developed and implemented.
In support of the COJs initiative with regards to job creation, JCP hopes to secure a partnership
with the Gauteng Enterprise Propeller to develop skills, implement an incubator hub and
related monitoring mechanisms in order to ensure the sustainability of SMMEs.
In line with the COJ’s institutional review process, JCP together with the Joburg Zoo will merge
and become one entity. To this end, both entities have made significant progress in preparation
for the merger, including, but not limited to establishing a single Business Plan and Budget for
the combined entities which will be effective in the next financial year.
In closing, JCP is a healthy vibrant company that is focused on executing its services par
excellence. Despite all the challenges, the goal is to undertake our mandate with diligence and to
positively change the lives of the communities we serve.
Key Performance Areas
Customer Perspective:
Provide proactive and innovative solutions to create customer value
The Mayoral priority and Environmental Sector Plan imperative of a Clean Green City was
further augmented by the planting of 30 242 trees planted for the year versus a target of 30 000.
Proudly, the capital development programme for the 2010/11 financial year was concluded in
the fourth quarter with over 13 projects developed.
A total of 2 307 new job opportunities were achieved YTD against a target of 2 000
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Financial Perspective:
The Strategic objective of this perspective is to proactively manage and maximise the
Johannesburg City Parks capital base and revenue streams.
The following table reflects the audited results for the year. Refer to applicable sections of this
report for detailed explanations:
Performance area – R 000’s Actual Budget Variance
Revenue 541 002 591 579 (50 577)
Expenditure 563 800 591 579 27 779
Surplus/(Deficit) (22 798) 0 (22 798)
Cash position 210 251 208 460 1 791
Capital and project expenditure 55 796 54 200 (1 596)
An operating deficit of R22.8 million was incurred primarily due to external services debt
impairment of R22.4m and gross profit shortfall of R18.6. The impact of these was reduced by
R3.4million bad debts and R0.9 million transfer costs recovered, and savings under water,
electricity and fleet cost making the bulk of the favourable variance of R13.4million under
general expenses.
Total company revenue for the period was R541.0million, which was R50.6million less than
budget. Revenue generation from External Services has decreased in this year, with
R39.2million invoiced during the year, and contributing R44.3million to the adverse revenue
variance of R50.577 million above. The gross profit generated by External Services amounted to
R4.2million (10% of sales).
The COJ subsidy for the year amounted to R457.2million.The COJ subsidy for the previous year
was R469.6 million. The COJ subsidy for the next year will be R487.6million – an increase of
R30.4million.
Revenue from burials generated R19.0million for the year, which is less than budget by
R3.5million. The marketing department generated income from events to the value of R1.7
million compared to a budget of R2.1million.
Total company expenditure for the period was R563.8million.This was R27.8million less than
budget, of which, cost of sales was underspent by R25.3million, and as expected, was due to
lower than budgeted external sales revenue.
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Capital expenditure was R1.596million over budget due to leasehold improvements to buildings
occupied by the company.
The company has a healthy cash balance of R210.251million.
Accumulated surpluses at the end of June 2012 amount to R96.332 million.
Internal Business Process Perspective:
This perspective’s strategic objective is to strengthen the operational efficiencies of JCP so as to
deliver an environmentally sustainable development content and impact
At the end of the 2011/12 financial year, JCP had no complaints outstanding for 90 days or
longer. This can be attributed to JCP’ commitment to service delivery.
Through our supply chain management processes, we achieved 91% for procurement spent on
BEE (Opex) and 63% for procurement spent on BEE (Capex).
In accordance with the plan, thirty seven (37) audits were scheduled to be conducted. Thirty
four (34) audits were completed and reported on representing 89% implementation of the total
annual plan by 30 June 2012. The remaining three were deferred due to the on-going
institutional review.
The risk containment measures in place are regularly monitored to ensure that they are within
the acceptable residual risk rating. Significant movements noted are reported to management
and appropriate committees of the board on a quarterly basis.
Innovation and Learning:
This strategic objective is to create the environment and build capabilities within JCP to deliver
sustainable and measurable development outcomes.
JCP shifted its focus on HIV/AIDS to a more holistic approach in management of employee
wellness. Three areas of operation namely, Health and Wellness, Psychosocial factors and
Mental Health and Work life Balance were identified to achieve this strategy. These enable the
Company to implement sustainable wellness programmes and further de-stigmatize the
function of management of HIV/AIDS within the workplace.
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As part of this approach, a number of programmes were undertaken under the banner of
Quality of Worklife Balance during this period under review. Topics relevant to worklife balance
are presented monthly via the internal news medium.
Conclusion
As we close the 2011/2012 financial year, it is critical to note that the year has not been without
its own challenges such as budget re-prioritization, the Hawks investigation and the integration
process with the Zoo. Despite all these, JCP has endeavored to excel in its service delivery with
a view to change the lives of the communities we operate within. Good health to the people
through green gyms and food gardens are exciting concepts that JCP is going to drive
aggressively to take the service delivery agenda to a higher level.
Appreciation
I would like to thank our Member of the Mayoral Committee, Mr C. Vondo for his political
guidance and support, the board for its vision and all JCP’ staff for JCP’ excellent performance.
During the 2011/12 financial year, JCP experienced various challenges including the
investigations and the effects of it. JCP responded in a positive way by keeping focused, working
harder towards service delivery and remain positive to keep the JCP brand alive.
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SECTION 6: Chief Financial Officer’s Report
The Company posted a deficit of R 22.8million for the period under review, against a nil budgeted
surplus. This deficit is largely attributable to adverse external services gross profit, low level of grave
bookings and a low interest on the sweeping account.
6.1.1 Revenue
The Company posted revenue of R 525.3million (excluding interest) for the year, a decrease of 11.3 %
from the previous year. The subsidy from the shareholder, the City of Johannesburg Metropolitan
Municipality, which amounted to R457.2 million, made up 87% of the total revenue received.
Revenue from cemeteries amounted to R 19.0 million decreased by 2.7 %, and external services
revenue decreased by 54.9% to R 39.2 million.
6.1.2 Results of Operations
Operational costs decreased by 3.9 % from the previous year to R 563.8, million during this period.
The key operational costs that contributed to the decrease were mainly repairs and maintenance and
general expenses. Repairs and maintenance expenditure amounting to R16.7million decreased by
15.2%, due to deferral of to be done on buildings, playground equipment, roads and pathways.
General expenses amounting to R172.8million was R40.2million lower than last year mainly due to
the decrease in cost of sales for external services. This was in line with the decrease in related revenue
above.
6.1.3 Cash Flow Statement:
The COJ subsidy to the value of R 457.2million was received during this period which contributed
81.1 % towards the operational costs. Interest earned amounting to R 15.7million (2011: R 15.4
million) contributed 2.8% towards the operational costs. The remainder was from cemetery fees, bad
debts recovered and external services. The Company ended the year in a favourable cash position
with cash on hand being R 0.08 million.
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6.1.4 Statement of Financial Position
Non-current assets decreased by a net value of R 3.6million to R 110.3million. This decrease was due
to the depreciation, amortization and disposals of property, plant and equipment and intangible
assets in excess of additions. The decrease in employee benefit investment results from payments
made against the investment accounts in excess of interest received thereon. Property, plant and
equipment decreased by R1.5million while intangible assets and employee benefit investment
decreased by R 1.2million and R 0.9million respectively.
The ability of the Company to meet its financial obligations increased slightly with liquidity ratio at 1.
42: 1 (2011 = 1.48: 1).
The decrease of R27.3million in the receivables from exchange transactions at year-end was mainly as
a result of better management and collection of receivables.
The decrease of R12.5million in payables over the previous year was mainly due to better
management and payment of payables.
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Executive Team:
Acting Managing Director
Bryne Maduka. Age 37.
Qualifications: LLB, LLM (Wits University).
Bryne holds a Masters degree in law and specialized in company law. He has been with the City
of Johannesburg for 8 years before joining City Parks in May 2010. Having been involved since
inception of most of the Municipal Owned Entities, he brings rich experience in the operations
of the City and expertise in corporate governance and legal matters at large.
Geoffrey Cooke. Operations Executive Age 48
Qualifications: MBA (FSAIM) Dip. Co. (GMIT)
Geoffrey has a Masters Degree in Business Administration and Diploma in Company Direction
with the Graduate Institute of Management & Technology (GMIT). He also has more than 17
years’ experience in various senior management positions. He joined JCP from the private sector
as a General Manager. He is currently the Operations Executive and acted in the position of the
Managing Director from July 2010 to March 2012. He has extensive knowledge and skills in
leadership, contract management, strategic management, Business Management, Operations
Management, Facilities Management, financial management as well as people management. He
is innovative, strategic and a team player.
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Fouch Fouché. Marketing and Communications Executive. Age 58.
Qualifications: Masters in Marketing & Communication Degree - University of North West,
Higher National Diploma in Quantity Surveying –Technikon Wits, Advanced Business
Management Programme – University of Johannesburg.
Fouch has experience in: marketing, communication, income generation, media and stakeholder
liaison, transformation, loss control, restructuring, building construction, project and contract
management; over and above that he also have more than 20 years’ experience on a senior
managerial level in local government.
Fouch was also instrumental in various awards and achievements such as the first gold award
for a local authority in the country from the National Productivity Institute for productivity and
service, the establishment of a 24 hour one-stop building plan approval system and various
awards at the International Liveable Communities awards
Rees Clements. Chief Financial Officer. Age 59.
Qualifications: Chartered Accountant the Rhodesian Society of Chartered Accountants.
Over 35 years business exposure in financial, IT, knowledge and strategic management in the
following industry sectors: Packaging and printing, Gaming, Supply chain/FMCG Auditing and
Public Finance
26
Kgomotso Molale. Assurance Services Executive. Age 38.
Qualifications: B. Com Accounting. University of North West.
Kgomotso has experience in Municipal Finance Management Act, King Code on Corporate
Governance, Public Finance Management Act and Professional Standards for the Practice of
Internal Auditing and GAAP.
Bukelwa Njingolo. Acting Executive: Conservation and Infrastructure. Age 43.
Qualifications: BA Social Sciences –University Fort Hare
Higher Diploma in Education –University Fort Hare
Diploma in Project Management – Damelin
CAPM (Certified Associate in Project Management) - PM Ideas
Masters in Business Leadership – UNISA SBL (Current)
27
Ms Brenda Dlakavu. Acting Human Resources Executive. Age 38.
Qualifications: Bachelor of Arts – University of Fort Hare – 2000. Post Graduate Diploma in
Human Resources Management – University of Johannesburg – 2004. Brenda has vast
experience in organisational development which includes organisational design, job definition,
performance management and job evaluation.
Mr Marks Sethaelo. Acting Executive: Special Projects
Qualifications: Matriculated in 1977 at the famous Barolong High School in Mafikeng, holds
Masters in Business Administration (Mancosa), Diploma in Advanced Management Program,
National Diploma in Forestry, Certificate in Community Risk, Certificate in Project Management,
Certificate in Municipal Law and Labour Relations.
Marks brings on board Johannesburg City Parks’ Executive panel diverse amounts of
experience, knowledge and skills. He has been with JCP since inception as General Manager in
Operations. Prior to commencement of services to Johannesburg City Parks, Marks acted as
Executive Manager: Environment and Recreation Management in the then Midrand
Metropolitan Local Authority and has also worked in a senior position in the City of Mafikeng.
With exceptional planning, servant leadership approach, control and transformation skills he
plays a pivotal role not only in the operations of the company but community development as
well.
28
He is the former chairperson of the Institute of Environment and Recreation Management –
(IERM) for Gauteng Region (2004 -2006), currently, serving as the chairperson for the Greater
Midrand Development Centre (GMDC) that focuses mainly on pro poor programmes and SMME
development.
29
30
CHAPTER TWO: PERFOMANCE HIGHLIGHTS
Section 1: Highlights and Achievements
Launch of two Outdoor Green Gyms in Petrus Molefe Eco Park and Sarafina Park,
Diepsloot.
A total of 2 307 new job opportunities were achieved YTD against a target of 2 000.
Planting of 30 242 trees planted for the year versus a target of 30 000.
Gold AgriSeta award of excellence for a project that employed more than 50% of learners
trained- this is recognition for the work being done at JCP’s training academy.
Green-Collar Training Award at the “BHP Billiton Achiever Awards 2011”. This is a
national competition to reward companies “for setting the standard in skills
development”.
Youth Going Green project in partnership with St John’s College at Realogile High School.
Section 2: Company four-year review
Units
2012
2011
2010
2009
2008
Key financial figures
Total assets Rm 407.4 436.1 393.4 349.9 354.3
Total equity Rm 124.4 147.2 125.8 112.3 109.7
Total equity and liabilities Rm 407.4 436.1 393.4 349.9 354.3
Bank balance Rk 77 54 50 42 32
Capital expenditure Rm 10.1 10.3 8.7 11.9 23.5
MIG Rm 37.0 19.8 12.4 15.0 9.6
Revenue Rm 541 607.8 527.6 491.1 425.6
Grant and Subsidies Rm 457.2 469.6 425.0 423.7 364.1
Employee costs Rm 330.8 338.4 297.2 289.1 271.0
Finance income Rm 15.7 15.4 18.6 23.6 26.4
Finance costs Rm 6.2 7.3 7.1 8.2 7.1
31
Units
2012
2011
2010
2009
2008
Surplus before tax Rm (22.8) 20.8 11.8 2.7 (3.4)
Surplus for the year Rm (22.8) 20.8 11.8 2.7 (3.4)
Net cash from operating
activities
Rm 9.7 (20.3) 59.1 18.1 8.9
Net cash (used)/generated by
in investing activities
Rm (10.4) 18.3 (55.8) (10.7) (22.5)
Net cash from/(used in)
financing activities
Rm 0.7 (2.1) (3.3) (7.4) 13.6
Financial ratios
Liquidity % 142 148 148 151 151
Solvency % 144 151 147 147 145
Total operating
expenditure/revenue
% 166 99 98 103 105
Interest coverage Ratio (2.69) 3.86 2.65 1.32 0.52
Other
Employees number 1 579 1 626 1 568 1 660 1 799
Employment equity % 97.65% 98% 97.51 97.65 97.38
Gender equity % 18.93% 17% 13.58 14.65 11.45
People with disabilities % 1.13% 1.04% 0.65% 0.36% 0.34%
Training cost Rm 1.4 1.2 1.2 1.8 0.9
Black economic
empowerment
Rm 196 267 227 280 272
32
Section 3: Capital Projects
CAPITAL DEVELOPMENT
Summary of key areas of expenditure
Details Budget
R’000
Actual Exp.
R’000
%
Expenditure
CoJ Funding 8 700 8 700 100%
MIG Funding 37 000 36 962 99.9%
Bulk Contributions 1 500 1 476 98.4%
Operational Capex 7 000 8 658 123.7%
TOTAL PROJECTS 54 200 55 796 102.9%
Project Summary: Capex 2010/11
Project Name Project Description Budget R’000
Actual Exp. R’000
Cosmo City Park New park development 2 000 1 993
Malatsi Park Park Upgrade 2 000 2 000
Dlamini Park New park development (extension)
6 000 6 000
Mandela Park 4 000 4 000
Avalon Cemetery Cemetery Upgrade (Extension)
4 700 4 700
Olifantsvlei Cemetery New Cemetery Development 15 000 15 000
Braamfontein Cemetery Crematorium Upgrade 1 410 2 199
Lenasia Crematorium Crematorium Upgrade 5 590 4 800
Road Island Beautification Road Island Beautification 3 000 2 976
Horticultural Ambiance Horticultural Ambiance 3 500 3 470
Operational Capex Plant, Equipment, Furniture, Office Equipment, IT and Buildings
7 000 8 658
In as much as budget cuts have been experienced over the past few years, JCP’ focus and vision has not
deterred in ensuring provision of qualitative open spaces to communities.
33
Section 4: Performance against IDP Scorecard
JCP had a successful year in terms of performance and achievement. Set out below, is an analysis of
JCP’ performance against its KPI’s for the 2011/12 financial year as set out in the Corporate scorecard.
The report analyses the performance of JCP in terms of the corporate scorecard, measuring
performance in terms of both JCP’ impact and its financial and resource management.
Variance Report
KPINr Key
Performance
Objective
Target Actual Variance Comments
F1 Unqualified
audit
opinion attained
Unqualified
audit
Opinion
attained
Unqualified
audit
Opinion
attained
0% Target
Achieved
F2 Rand Value of
income
generated from
external sources
R80.m R39.1m Variance:
R40.9m
Target not
achieved
F3 Actual Capex
spend vs. budget
95% 103% Variance: 8% Target
Exceeded
F4 % Overspend on
Capex Budget
0% 3% 3% Target Partially
achieved
F5 % Adverse
variance on
Opex Budget
5% or better 4.69%
Favorable
Variance: 0.31% Target Partially
achieved
F6 % Surplus on
Budget
1% or more (3.8)% Variance: 3.8% Target Partially
achieved
F7 % Opex spend
on BEE and
SMME
enterprises
76% 91%
Variance: 15% Target
Exceeded
F8 % Capex spend
on BEE and
SMME
enterprises
62%
63% Variance: 1%
Target
Exceeded
C1 % Customer
satisfaction
rating
>70% 78% Variance: 8% Target
Exceeded
C2 Number of
developed parks
as per the IDP
4 parks 9 Parks Variance: 5 Target
Exceeded
34
KPINr Key
Performance
Objective
Target Actual Variance Comments
C3 Number of
direct
beneficiaries
reached on
environmental
awareness
22 000 20 757 Variance:
1 243
Target Partially
achieved. This
is a stretched
target. The
target in the
Sector Plan is
18 000
beneficiaries.
C4 Stages of
development of
Oilifantsvlei
Cemetery
Phase 1
completed
Phase 1
completed
Variance: 0
Target
Achieved
C5 % Stakeholder
satisfaction
Establish
baseline
39% Variance: 0
Target
Achieved
C6 % Compliance to
Environmental
sector plan (As
per Business
Plan)
95% 95% Variance: 0
Target
Achieved
C7 % Compliance to
applicable
legislation
90% 100% Variance: 10%
Target
Exceeded
P1 Bi-annual ISO
14001
Certification
Bi-annual ISO
14001
Certification
Bi-annual
ISO 14001
Certification
Variance: 0
Target
Achieved
P2 Number of
operational
nurseries
2 2 Variance: 0
Target
Achieved
P3 % Risk
containment
measures
addressed as per
Risk Register
95% 95% Variance: 0
Target
Achieved
P4 % Of
maintenance
activities
controlled by
Asset Care
Centre
95% 95% Variance: 0
Target
Achieved
P5 % Monthly staff
attendance
90% 72.5% Variance 17.5% Target partially
achieved
P6 % Utilisation of
knowledge
72% 84% Variance: 6%
Target
Exceeded
35
KPINr Key
Performance
Objective
Target Actual Variance Comments
management
system
P7 % Service
quality rating
68% 62% Variance:6% Target Partially
achieved
LG1 Annually
approved
organisational
structure
implemented
Annually
approved
organisational
structure
implemented
N/A N/A Not fully
implemented
due to
institutional
review process
LG2 % Training and
development
initiatives
undertaken as
per Training and
Development
Plan
85% 79% Variance:6% Target Partially
achieved
LG3 Number of
people trained at
JCP Academy
124 124 Variance: 0
Target
Achieved
LG4 % Compliance
with
Employment
Equity Plan
90% N/A N/A Not fully
implemented
due to
institutional
review process
LG5 % Corporate
achievement of
scorecards
94% 100% Variance: 0
Target
Achieved
LG6 Lost Time Injury
Frequency Rate
(LTIFR)
<1 1 Variance: 0
Target
Achieved
LG7 % Compliance
with OHS Act
Checklist
75% 90% Variance:15% Target
Exceeded
LG8 Annually
approved
Employee
Wellness
Programme
implemented
Annually
approved
Employee
Wellness
Programme
implemented
Annually
approved
Employee
Wellness
Programme
implemented
Variance: 0
Target
Achieved
36
JOHANNESBURG CITY PARKS CORPORATE SCORECARD 2011-12
KPA KPI NO.
KPI
TARGET 2011/12
YTD 2011/12
Q1 TARGET
Q1 ACTUAL
Q2 TARGET
Q2 ACTUAL
Q3 TARGET
Q3 ACTUAL
Q4 TARGET
Q4 ACTUAL
COMMENTS
Strategic Financial Objective - Strengthen, Grow and Protect the JCP Financial Resource Base
Sustain management control and performance
F1 Unqualified audit
opinion attained
Unqualified audit opinion attained
N/a N/a N/a Unqualified audit opinion attained
Unqualified audit opinion attained for 2010-
11
N/a N/a N/a Unqualified audit opinion attained
Improve and maximise return on investment
F2 Rand Value of income generated from external sources
R80m R39.1 R 5.2m R 6.3m R 10m R 10.6m R 42m R7.3m R 22.8m R14.9m
Maximise cost
efficiencies [Opex & Capex]
F3 Actual Capex spend vs. budget
95% 103% 2% 1.7% 20% 32% 50% 47% 95% 103%
F4 % Overspend on Capex Budget
0% 3% 0% 0% 0% 0% 0% 0% 0% 3%
F5 % Adverse variance on Opex Budget
5% or Better
4.69% Favourab
le
5% or Better
8% Favourabl
e
5% or Better
8.7% Favourabl
e
5% or Better
14.5% Favourab
le
5% or Better
4.5% Favourabl
e
F6 % Surplus on Budget
1% or More
(3.8)% 1% or More
18.7% 1% or More
6.3% 1% or More
(4.2)% 1% or More
(2.8)%
37
KPA KPI NO.
KPI
TARGET 2011/12
YTD 2011/12
Q1 TARGET
Q1 ACTUAL
Q2 TARGET
Q2 ACTUAL
Q3 TARGET
Q3 ACTUAL
Q4 TARGET
Q4 ACTUAL
COMMENTS
Optimise BEE and SMME spend
F7 % Opex spend on BEE and SMME enterprises
76% 91% 76% 89% 76% 92% 76% 92% 76% 91%
F8 % Capex spend on BEE and SMME enterprises
62% 63% 62% 54% 62% 40% 62% 83% 62% 61%
Strategic Customer Objective - To Create and Enhance Value to all Stakeholders
Innovate and improve quality and service offering
C1 % Customer satisfaction rating
>70% 78% N/a N/a N/a N/a N/a N/a >70% 78%
C2 Number of developed parks as per the IDP
4 Parks 9 Parks N/a N/a N/a N/a N/a N/a 4 Parks 9 Parks
C3 Number of direct beneficiaries reached on environmental awareness
22 000 20 757 5 500 4 920 5 500 5 059 5 500 5 584 5 500 5 194
C4 Stages of development of Olifantsvlei Cemetery
Phase 1 Phase 1 complete
d
N/a N/a N/a N/a N/a N/a Completion of Phase One
Phase 1 completed
38
KPA KPI NO.
KPI
TARGET 2011/12
YTD 2011/12
Q1 TARGET
Q1 ACTUAL
Q2 TARGET
Q2 ACTUAL
Q3 TARGET
Q3 ACTUAL
Q4 TARGET
Q4 ACTUAL
COMMENTS
Improve Internal and External JCP Stakeholder Relations
C5 % Stakeholder satisfaction
Establish baseline
39% N/a N\a N\a N\a N/a N/a Establish
baseline
39%
Comply with core delivery mandate
and enhance service
delivery to all
stakeholders.
C6 % Compliance to Environmental sector plan (As per Business Plan)
95% 95% 95% 95.3% 95% 95% 95% 89%. 95% 95%
C7 % Compliance to applicable legislation
90% 100% 90% 100% 90% 100% 90% 100% 90% 100%
Strategic Process Objective – 25%: To optimise Internal business systems, processes to enhance operational effectiveness
Optimise internal systems and processes
P1 Bi-annual ISO 14001 Certification
Bi-annual ISO 14001 Certification
Bi-annual ISO
14001 Certificati
on
N\a N/a N/a N/a N\a N\a Bi-annual
ISO 14001
Certification
Bi-annual ISO 14001 Certificati
on
P2 Number of operational nurseries
2 2 N\a 2 N\a 2 N\a 2 2 2
39
KPA KPI NO.
KPI
TARGET 2011/12
YTD 2011/12
Q1 TARGET
Q1 ACTUAL
Q2 TARGET
Q2 ACTUAL
Q3 TARGET
Q3 ACTUAL
Q4 TARGET
Q4 ACTUAL
COMMENTS
P3 % Risk containment measures addressed as per Risk Register
95% 95% 95% 95% 95% 95% 95% 95% 95% 95%
P4 % Of maintenance activities controlled by Asset Care Centre
95% 95% 95% 95% 95% 95% 95% 95% 95% 95%
P5 % Monthly staff attendance
90% 72.5% 90% 75% 90% 84% 90% 79.46 90% 69.58%
Optimise performance information and knowledge management
P6 % Utilisation of knowledge management system
72% 84% 60% 67% 64% 67% 68% 84% 72% 84%
Monitor and evaluate service quality
P7 % Service quality rating
68% 62% Average
68% 66% 68% 62% 68% 62% 68% 57%
Strategic Learning and Growth Objective - To Build HR Capabilities and Ensure a Conducive Working Environment
40
KPA KPI NO.
KPI
TARGET 2011/12
YTD 2011/12
Q1 TARGET
Q1 ACTUAL
Q2 TARGET
Q2 ACTUAL
Q3 TARGET
Q3 ACTUAL
Q4 TARGET
Q4 ACTUAL
COMMENTS
Optimise organisation structure to support the JCP delivery strategy.
LG1 Annually approved organisational structure implemented
Annually approved structure implemented
Not fully implemented due to institutio
nal review
process
N\a N\a N\a N/a N\a N\a Annually
approved
structure
implemented
Not fully implemented due to
institutional review process
Identify, develop and enhance JCP HR core capabilities and capacity.
LG2 % Training and development initiatives undertaken as per Training and Development Plan
85% 79% 25% 28% 50% 48% 75% 57% 85% 79%
LG3 Number of people trained at JCP Academy
124 124 N\a N\a N\a N\a N\a N\a 124 124
Value diversity and improve employment equity
LG4 % Compliance with Employment Equity Plan
90% Not fully implemented due to institutio
nal review
process
90% 90% 90% 90% 90% N\a 90% Not fully implemented due to
institutional review process
Performance Manage Human Capital
LG5 % Corporate achievement of
94% 100% N\a N\a 94% 100% N\a N\a 94% 100%
41
KPA KPI NO.
KPI
TARGET 2011/12
YTD 2011/12
Q1 TARGET
Q1 ACTUAL
Q2 TARGET
Q2 ACTUAL
Q3 TARGET
Q3 ACTUAL
Q4 TARGET
Q4 ACTUAL
COMMENTS
scorecards
Create and promote a safe and conducive working environment.
LG6 Lost Time Injury Frequency Rate (LTIFR)
<1 1 <1 1,87 <1 1,87 <1 0.02% <1 1
LG7 % Compliance with OHS Act Checklist
75% 90% 75% 75% 75% 75% 75% 87% 75% 90%
LG8 Annually approved Employee Wellness Programme implemented
Annually approved Employee Wellness Programme implemented
Annually approved Employee Wellness Program
me implemen
ted
N\a N\a N\a N\a N\a N\a Annually
approved
Employee
Wellness
Programme
implemented
Annually approved Employee Wellness
Programme
implemented
42
Section 5: Assessment of Arrears on municipal taxes and service charges
5.1 Assessment of Municipal Taxes and Service Charges owed by Johannesburg City Parks
Name of Entity Amount Owed
R’000
Status Comments
City of Johannesburg Metropolitan Municipality
78 602 Provided for in Johannesburg City Parks’ books
Current
City Power Johannesburg
188 Provided for in Johannesburg City Parks’ books
Current
Johannesburg Road Agency
1 383 Provided for in Johannesburg City Parks’ books
Current
The Johannesburg Civic Theatre
63 Provided for in Johannesburg City Parks’ books
Current
The Johannesburg Zoo
30 Provided for in Johannesburg City Parks’ books
Current
43
5.2 Amounts owed to Johannesburg City parks for service charges
Name of Entity Amount Owed
R’000
Status Comments
City of Johannesburg Metropolitan Municipality
78 602 Provided for in CJMM’s books
Current
City Power Johannesburg
6 438 Provided for in City Power Johannesburg’s books
Current
Johannesburg Road Agency
121 Provided for in Johannesburg Road agency’s books
Current
City of Johannesburg Property Company
111 Provided for in City of Johannesburg Property Company’s books.
Current
Johannesburg Water
404 Provided for in Johannesburg Water’s Books
Current
Pikitup Johannesburg
67 Provided for in Pikitup’s books
Current
5.2: Assessment of Director’s and senior managers’ municipal accounts
Name of
Director/
Senior
Manager
Designation Name of
Municipality
Municipal
Account Name
& Account
Number
Account
Status
Comments
M Madumise
Appointed
Chairperson of the
Board
Johannesburg Account holder
in dispute with
CoJ.
D Westgate Non-Executive
Director
Johannesburg
D Westgate
202282069
In-order
Adv R Rawat Non-Executive
Director
Johannesburg
403339798 In-order
M Dolamo
Non-Executive
Director
Johannesburg Dolamo A M
403193013
In order
Dr G Karim Non-Executive Johannesburg Karim G H In order
44
Name of
Director/
Senior
Manager
Designation Name of
Municipality
Municipal
Account Name
& Account
Number
Account
Status
Comments
Director 402859579
S Bogatsu Non-Executive
Director
Johannesburg Setshego R B
303442142
In order
DR Mokhobo Non-Executive
Director
Johannesburg Mokhobo DR &
BR
400847673
In order
M Diaho
Non-Executive
Director
M Simelane
Non-Executive
Director
Tshwane Simelane M.J.
3307693793
In order
Directors that have since retired
P Johnson
Sparrow
Non-Executive
Director
Johannesburg Sparrow PL
202222312
In order
V Ramsingh Non-Executive
Director
Midvaal VB & GH
Ramsingh
40000786
In order
M Bahula
Chairperson of the
Board
Johannesburg M Bahula
505507674
In order
Executive Management
B Maduka Acting Managing
Director/Company
Secretary
Johannesburg B Maduka
900879881
In order
G Cooke Operations
Executive
Johannesburg Cooke G &VW
206747903
In order
R Clements Chief Financial
Officer
Ekurhuleni R Clements
26008339665
In order
H H Fouche Marketing &
Communications
Johannesburg Fouche BN
502487003
In order
45
Section6: Statement on amounts owed by Government Departments and public entities
Name of entity Amount Owed
R’000
Status Comments
Gauteng Provincial
Government
30 780 Previous Effort is made to
collect the money
46
Section 7: Recommendations and Plans for the next financial year.
Recommendations and plans for 2012/13
Merger of Johannesburg City Parks and Johannesburg Zoo
Development of open space through capital development projects - 10 Developments
Tree planting in deprived areas - 10 000 Trees
Environmental education programme - 9 000 Learners
Education on food production programme -9 000 Learners
Development of two food gardens in deprived areas
The primarily focus for the entity is on tree production as opposed to the procurement of trees
from external providers.
A key focus area for 2012-13, will be the roll out of at least twenty Green Outdoor Gyms
throughout the City of Johannesburg.
All future park developments will be designed to incorporate the history, heritage and theme
that resonate with the geographic environment. Noteworthy is that the future designs of the
parks will include walking trails and cycling trails aimed at creating networks that link
communities, business centres, schools and other recreational facilities for ease of access by
the communities.
47
48
CHAPTER THREE: DIRECTOR’S REPORT AND GOVERNANCE
Section 1: Corporate Governance Statement
The directors are committed to business integrity, transparency and professionalism in all activities.
As part of this commitment, the Directors support the highest standards of corporate governance and
the ongoing development of best practices.
Johannesburg City Parks confirms and acknowledges its responsibility to total compliance with the
Code of Corporate Practices and Conduct laid out in the King III Report on Corporate Governance for
South Africa.
The Directors discuss the responsibilities of management in this respect at the Board Meetings and
monitor the entity’s compliance with the code on a quarterly basis.
The roles of the Chairperson and managing Director are separate, with responsibilities divided
between them so that no individual has unfettered powers of discretion.
The disclosure of Interest registers were kept updated and signed accordingly by those who were in
attendance at all Board and Committee Meetings as well as Management Committees.
Of significance in April 2012 was the seating of the Annual General Meeting (AGM) which brought
about changes to the composition of the Board.
Section 2: Board of Directors
At the AGM it was resolved and subsequently ratified and confirmed appointments, resignations and
retirements of directors of JCP as follows:
The retirement of Mr V Ramsingh was noted, accepted and confirmed.
The retirement of Ms P Johnson Sparrow was noted, accepted and confirmed.
The retirement of Mr M Bahula was noted, accepted and confirmed.
The appointment Adv. M Madumise as a Director and as the Chairperson of the Board was
noted, accepted confirmed.
The appointment of Ms M Diaho as a Director of the Company was noted, accepted and
confirmed.
49
The appointment of Mr M Simelane as a Director of the Company was noted, accepted and
confirmed.
The retirement of Mr G Cooke as a Director of the Company was noted, accepted and
confirmed.
The following Directors were confirmed as members of the Board of Directors for JCP:
1. Advocate M Madumise
2. Mr K Mokhobo
3. Advocate R Rawat
4. Mr D Westgate
5. Dr G Karim
6. Ms M Dolamo
7. Ms S Bogatsu
8. Dr M Diaho
9. Mr M Simelane
The following independent committee members were confirmed as members of the Audit Committee:
Mr. A. Kanana
Mr. G. Dunnington
Mr. K. Govender
The induction of Directors was conducted through a formal process. The orientation programme
included an introduction programme regarding Johannesburg City Parks and its operations. The
Sharemember also provided an induction for the newly appointed directors regarding its operations
The non-executive directors as a collective provide a wide range of experience and professional skills
to the board. The non-executive directors further contribute an independent view to matters under
consideration. The roles of the Chairperson and Acting Managing Director are separate, with
responsibilities divided between them. Board meetings are held quarterly. Additional meetings are
convened when necessary to address specific issues.
50
Members of the Board
Advocate M Madumise, Chairperson of the Board (Appointed 24 April 2012)
Advocate Motsehoa Brenda Madumise is a business woman, running a woman led investment
company and is also a legal consultant with over 25 years’ experience in strategic planning,
commercialisation, restructuring, transformation and capacity and resource building in both public
and private organizations. She has gained valuable business and financial acumen from the Hospitality
Industry, ICT, Mining, Health, Public Transport, Financial Services, Agriculture and PPP projects.
Brenda has served as a member of the Minerals and Petroleum’s Development Board and has written
numerous legal opinions on behalf of the Board in as far as the interpretation and implementation of
the Act were concerned. She has also presented papers on the mining charter in various fora abroad
regarding the implications of BEE to the mining industry. Her experience with governance issues also
extend to serving on the Appeals board for Medical Schemes where she was appointed chair for two
terms, chairing the Johannesburg Hospital Board and as a member of the audit committee at ESETA.
She is an admitted and non- practising advocate, who holds a B.Proc; LLB and Graduate Diploma in
International Trade law from the University of the Witwatersrand and an MBA from Bond University.
Her career began at the University of the Witwatersrand as an assistant on the street law project,
where she gained extensive experience in teaching law, stakeholder relations and policy formulation.
Brenda has edited two books, namely, the situation analysis of South African women, and sexual
harassment in the work place. She was a visiting fellow at the United Nation Human Rights
Commission. She was chosen to undergo a study tour of the UK, researching their administration of
justice framework and Canada’s telecommunications’ Industry.
Currently, she is the chairman of the CATHSSETA board and also serves on the boards of Hospitality
Fund (JSE Listed), Transaction Capital, Railway Safety Regulator and SALT Employee Benefits, Heart
51
and Igagasi FM and Iziko Museums, She is the Vice President of Business Unity South Africa (BUSA).
She is an avid reader, a patriot and driven individual.
Mr Maropeng Stephens Bahula Former Chairperson of the Board (Retired 24 April 2012)
Qualifications: BSc Chemistry (Wits), MBL (Unisa)
Maropeng is a results oriented executive with an extensive background in building and managing end-
to-end integrated value chain operations; incorporating planning, sourcing/procurement,
manufacturing, SHEQ, inventory management, capital projects, budgeting, P&L management,
logistics/distribution and customer services with direct supplier and customer interfaces and labour
relations in highly unionised environments. He mentors and motivates large, diverse groups in
national and global environments. He has a successful track record in operations strategy, execution
delivery and developing and leveraging human assets in multiple settings and a variety of industries.
He is a change agent that has transformed operations through coaching, recruiting, hiring and process
implementation, as well as creating strategies and solutions with solid leadership. He has solid board
and corporate governance skills with particular focus on strategy formulation and execution.
Mr Ramakhathela David Mokhobo, Audit Committee Chairperson
Qualifications: BCom (Unibo), BAcc (Wits), CA (SA), ACMA (UK)
Ramakhathela has skills and experience in business development, management consulting, and
forensic accounting and is a Chartered accountant.
52
Areas of expertise: Acquisition of business, company startups, hotel and casino industry and
implementation of strategic decisions.
Mr Victor Barry Ramsingh, Human Resources Committee Member (Retired 24 April 2012)
Qualifications: MBA, Executive Development Programme, SLC Diploma in Strategy, Leadership and
change management, LLB and BA.
Victor is a Human Resources Practitioner by profession.
Mr David Andrew Westgate, Operations Committee
Qualifications: Microsoft Certified Systems Engineer (MCSE), Cisco Certified Network Administration
(CCNA), Cisco Certified Professional and Creston Essentials & Intermediate Training.
David is an entrepreneur at heart and has experience in business management, strategy development
and is results driven. He has leadership abilities, and enjoys getting involved in all aspects of business.
53
Adv Rehana Rawat. Social and Ethics Committee Chairperson and Human Resources Committee
Member
Qualifications: BA (LLB)
Rehana is an Advocate & Labour Law Specialist of 25 years standing, who has a proliferate number of
reported decisions, which emanates from high level ground rating matters which she has adjudicated.
Dr. Gulam Karim. Operations Committee Chairperson
Qualifications: L.R.C. P. L.R.C.S. M.Dip. Ireland - Royal College of Surgeons and Physicians
Public &Development Management - Wits Business School, Oliver Tambo Fellowship in Health
Management & Economics - University of Cape Town.
Dr. Karim has experience in organisational and change management, financial and human resource
management, health management & health economics, procurement and supply management.
He has held the following positions: Private Medical Practitioner from 1974 to 1994, Head of
Department of Health in the Provincial Government of Mpumalanga 1994 to 2001, Head of
Department of Safety & Security in the Provincial Government of Mpumalanga 2001-2004, KPMG S.A.
2005-2007, and currently Independent Health Consultant for KPMG, Director at Pholela Health
54
Logistics and GHK Management Services. Board Member of the Gauteng Provincial Community Police
Forum Board since 2005 to date.
Ms Modi Dolamo. Audit Committee Member and Social & Ethics Committee Member
Qualifications: B.Compt (Honours); CA (SA)
Ms Dolamo is a qualified Chartered Accountant presently employed by University of Johannesburg as
a Senior Lecture in the Finance and Investments Department. Ms Dolamo has spent most of her career
life working in Financial Institution and majority of these years was spent in Development Finance
Institutions such the Development Bank of South Africa (DBSA) as well as National Empowerment
Fund.
Ms Patricia Johnson. Age: 57, Operations Committee Member (Retired 24 April 2012)
Qualifications: Prof. post-grad Corporate Governance.3rd yr. MBA.
Patricia has experience in strategy and risk management, treasury and finance.
55
Ms Setshego Bogatsu. Human Resources Chairperson
Qualifications: B Com, MBA.
Setshego has experience in finance, procurement and business management.
Mr Musa Joshua Simelane. Operations Committee Member
Qualifications: BSc. Prod Eng.; MSc. in Ind. Tech. (Western Carolina University); FTC (Mech. Eng.)
Work experience:
1981-1987 : Lecturer (Thermodynamics) @ Swaziland College of Technology.
1987-1989 : Vice Principal @ Swaziland College of Technology
1989-1998 : Director @ Skillshare International (a British Development Agency) for the
Swaziland office.
1994-1997 : Part Time Lecturer (in Operations Management) @ University of Swaziland
1998-2001 : Regional Projects Manager @ Skillshare International
2009-2012 :NED @ Johannesburg Roads Agency
2001-todate :Director/owner @ Qualipros Management Development Systems.
56
Dr Mothomang Diaho. Operations Committee member
Founder and Managing Director: Diaho Social Technologies
Mothomang is a qualified medical doctor and has worked as a public Heath practitioner for more than
25 years. She developed this interest soon after qualifying at the University of Adelaide, Australia.
The daily challenges faced by communities to access good healthcare are what drives Mothomang. She
initially practiced as a medical officer in various clinics and hospitals in Lesotho, Swaziland and South
Africa.
She subsequently augmented her medical training with postgraduate programmes in public Health
and a Masters programme in Business administration at the University of the Witwatersrand, WITS
and a programme in Management development at the Harvard Business School.
Three years ago, Mothomang took a decision to support the work she does in Public Health training
and development with a post graduate qualification from the Gestalt Institute of Cleveland.
She has worked over these years on issues of HIV/AIDS, Leadership and broader developmental and
social justice issues and is a strong advocate for health and wellness.
This interest developed during her leadership roles that include; senior consultant at Health and
Development Africa, Abt Associates Inc.; Head of the Accelerated Leadership Programme at SASOL;
head of an HIV/AIDS programme at the UNDP and recently, as Head of the Dialogue Programme at the
Nelson Mandela Foundation, a position she held since 2006.
She is a guest Lecturer at the Wits School of Public Health for the Masters in Public Health Programme.
She has edited and published numerous booklets and papers on matters of leadership, dialogue, and
health. Her work in health and wellness reasserts the believe that we have an inherent capacity within
ourselves to take charge of our lives.
57
Mothomang is CEO and co-founder of TEACH South Africa and serves on the boards and committees of
various business, Education, health and development-related organisations, including a stint as the
first female chair of the St Stithian’s Boys College PTA, board member at JHPIEGO, HRDI and
Tshikululu.
58
Section 3: Board Committees
These committees assist the board in carrying out its responsibilities. The committees provide the
board with recommendations and reports which ensure transparency and full disclosure of committee
activities. An independent non- executive director serves as a chairperson in each committee.
The following committees existed during the period under review:
Audit Committee
The Audit Committee is chaired by Mr D R Mokhobo who is the independent non-executive
director of the Company. The Committee met held several meetings during the financial year to
review matters necessary to fulfill its role.
The Audit Committee which meets regularly comprises of three Independent Members, A Kanana,
G Dunnington and K Govender appointed by the Shareholder in addition to the two non-executive
directors who sit on the Board. The non–executive directors continue to emphasize the balance of
the portfolio. In addition, specific attention was drawn to performance as envisaged in the MFMA.
The Committee has been established, in line with the King Reports recommendations on
Corporate Governance, with the goal of deliberating and taking decisions on matters relating to
the Company’s Finances, Strategy and policies.
Human Resources Committee
The Human Resources Committee is chaired by Ms S Bogatsu who is an independent non-
executive director of the Company. The Committee has been established with the goal of
considering matters relating to the conditions of service and the employer-employee relationship.
59
Operations Committee
The Operations Committee is chaired by Dr Karim who is an independent non-executive director
of the Company. The Committee has been established to develop and manage the company’s
reputation and exposure through service delivery strategy, policy development, SHEQ matters and
marketing initiatives. The Committee is also tasked with the role of considering and
recommending to the Board on matters relating to Information Technology and Supply Chain
Management matters.
Social and Ethics Committee
The Companies Act 71 of 2008 became effective on the 1st May 2011. The Act requires companies
with a public interest score of more than 500 points to establish a Social and Ethics Committee by
30 April 2012.
The Shareholder Unit did an assessment of the NPCs of the City of Johannesburg and it was
apparent that Johannesburg City Parks had to appoint a Social and Ethics Committee.
In line with the above the Board of Directors took a decision at its meeting held on the 11th April
2012 to establish Johannesburg City Parks’ Social and Ethics Committee which comprises of both
directors and prescribed officers.
The Social and Ethics Committee is Chaired by Adv Rawat who is an independent non-executive
director of the Company.
Name Board Meeting
Audit Committee Meeting
Operations Committee Meeting
Human Resources Committee Meeting
Social and Ethics Committee Meeting
Total number of meetings held.
10 7 5 5 1
M Madumise (Chairperson)
n/a n/a n/a 1 n/a
MS Bahula (Former Chairperson)
10 n/a n/a n/a n/a
DR Mokhobo
4 7 n/a n/a n/a
60
V Ramsingh
1 n/a n/a 1 n/a
D Westgate
8 n/a 5 n/a n/a
R Rawat
9 n/a n/a 5 1
G Karim
9 n/a 5 n/a n/a
M Dolamo
9 6 n/a n/a 1
P Johnson Sparrow
5 n/a 2 n/a n/a
AM Diaho
n/a n/a - n/a n/a
M Simelane
n/a n/a 1 n/a n/a
S Bogatsu
10 n/a n/a 5 n/a
G Cooke (Acting Managing Director)
3 n/a 1 2 n/a
61
Section 4: Directors’ Remuneration
The remuneration of Directors is determined by the controlling entity.
INDEPENDENT AUDIT COMMITTEE MEMBERS REMUNERATION
Name Designation Amount
1 A Kanana Independent Member 158 720.00
2 G Dunnington Independent Member 37 720.00
3 K Govender Independent Member 29 760.00
1 Name Amount
M Bahula R367 034.50
2 D R Mokhobo R104 160.00
3 V Ramsingh R13 890.00
4 D Westgate R84 330.00
5 S Bogatsu R151 798.00
6 M Dolamo R139 890.00
7 T Johnson Sparrow R37 700.00
8 K Karim R341 318.00
9 R Rawat R159.750.00
10 M Madumise R39 798.00
11 M Simelane R14 880.00
12. M Diaho R14 880.00
62
Executive Directors
R’000
2011/2012 R’000
2011/2012 R’000
2011/2012 R’000
2011/2012 R’000
2010/11 R’000
Name Salary/Acting allowance
Travel & Other
Bonus Total Total
LL Williamson - - - - 1 230 G Cooke 507 33 - 540 1508 Total 507 33 - 540 2 738
Senior Management 2011/2012
Position 2011/12
Salary R’000
2011/12 Travel & Other
2011/12 Bonus R’000
2011/12 Total R’000
2010/11 Total R’000
R Clements Chief Financial Officer 1 184 48 161 1 393 1 299 A Buzo-Gqoboka
Human Resources Executive 1 186
G Cooke Operations Executive: 705 47 170 922 - HH Fouche
Marketing and Communications Executive
916 91 133 1 140 1 073
P Meyer Operations Executive: Infrastructure
758 16 153 927 1 237
K Molale Executive Assurance Services 773 45 108 926 871 B Njingolo Acting Conservation &
Infrastructure Executive 749 110 96 955 856
B Maduka Company Secretary 878 156 126 1 160 953 B Dlakavu Acting Human Resources
Executive 643 42 82 767 -
Total 6 606 555 1029 8190 7 475
Section 5: Company Secretarial Function
The Company Secretary is responsible for the following areas of JCP’ business:
Corporate Governance
Legislative and Statutory Compliance,
Secretarial,
Legal Advice,
Business Planning,
Contract Management and
Service Monitoring
63
All directors have access to the advice and services of the Company Secretary who is responsible for
ensuring that the Board complies with all applicable procedures, statutes and regulations. The
Company Secretary provides support to the non–executive directors, independent audit members as
well as the executives.
As a large organisation, the City of Johannesburg continually assesses its performance against pre-
determined objectives. Accordingly, the City has decided to re-organise the way it is structured to meet
and achieve its strategy and service delivery mandate.
The Mayoral Committee at its meeting held on the 11th November 2011 tasked the City Manager to
initiate a process to evaluate the institutional design of the City. As a result of the institutional review
process of the COJ, JCP together with the Johannesburg Zoo report into the Community Development
sub-cluster, which is part of the Human and Social Development cluster.Board discussions are
underway to develop and integrate JCP and Zoo Strategies
A Hawks investigation was conducted during the year under review and a report was presented to the
Board in December 2011. This resulted in the formation of a Special Board Committee which was
mandated by the Board to interrogate the allegations contained in the report as well as to gather
additional information to substantiate the allegations where necessary and give recommendations to
the Board. The Hawks has referred the matter to the Special Unit and the final report has not been
received in this regard.
Section 6: Risk Management and Internal controls
JCP regards risk management as an essential element of good corporate governance. The Audit
Committee, a subcommittee of the Board, is delegated to oversee the risk management process in the
company. The committee assists the Board in reviewing the quality, integrity and reliability of the risk
management process and reviewing the significant risks facing the company.
The Risk Management Framework provides for the continual review and monitoring of the company‘s
key risks. Key risks and uncertainties identified as part of the risk management process undertaken
during the year, together with some of the mitigating actions undertaken, are set out herein below:
64
1. Financial sustainability and funding to meet desired service delivery levels
The management of the risk has ensured JCP remains a going concern despite obvious consequences as
a result of financial constraints facing the company. Stringent financial measures followed, combined
with a range of cost cutting measures implemented by Departments across the company have ensured
that the risk remains inherently, green from the initial residual rating that was the case at the
beginning of the financial year.
The merger with the JHB Zoo comes with an additional portfolio and accompanying operational
challenges. As a response mechanism, management will still pursue innovative financial solutions to
ensure it carries out its service delivery mandate.
2. Environmental degradation and impairment
External influences arising from a range of causal factors such as littering, vagrancy, illegal dumping in
designated open spaces and broadly, environmental conditions such as challenges posed by the reality
of acid mine drainage remains realistic challenges facing both JCP as an entity as well as the CoJ as the
parent municipality. JCP is also faced with a challenge on the interdependency on other role players
such the JMPD; JRA etc. in terms of by-law enforcement.
Internally, JCP has implemented a range of risk mitigation measures such waste management schemes
to ensure separation at source, limitations on paper usage amongst all departments, and the creation of
department that would specifically focus at the issues of urban forestry and greening with the
municipality of Johannesburg. Though not totally eliminating the environmental challenges, the
programmes implemented and others as carried out by the company, ensures that the risk remains
within the acceptable residual amber rating.
3. Safety and security of JCP facilities.
This risk remains key and high in terms of the company’s risk profile. The vast nature and geographic
spread of the company‘s portfolio, comprising of designated open spaces, pavements, cemeteries,
nature reserves, koppies and other conservation areas presents the company with a huge challenge of
ensuring that the community feels safe and secure within these facilities. As already mentioned,
contributing factors such as financial constraints, institutional model of the company and resources
availability are real issues that the company is faced with in managing the risk.
65
Initiatives in place include joint operations with JMPD, the SAPS and in some cases, community based
groupings. The abovementioned measures implemented have helped to ensure that the risk remains
within the acceptable residual amber rating. This is a quantum leap from the initial red rating that was
accorded during the risk assessment at the beginning of the financial year.
66
4. Inadequate Contracts Management
Measures implemented in response to the risk included:
The appointment of the appropriate official to manage this portfolio.
A due diligence exercise that was completed to determine the status of all current and existing
contracts of the company and implement proposals to ensure such key processes are managed
effectively, thereby eliminating gaps that were identified previously.
The development of a Contract Management Policy Framework is in progress and this
measure will go a long way in terms of ensuring that internal processes and procedures are
effectively aligned to best practice
The abovementioned implemented actions and the accompanying review of the procedures have
brought much progress anticipated at the time of the risk assessment. The steps undertaken has
ensured that the risk rating is reviewed and set at the residual green rating, considering all of the
achievements made in addressing the causal factors cited at the time of the risk assessment.
5. Levels of Employee engagement and satisfaction
The engagement of employees on key organizational processes such as the institutional review,
employment conditions and general dissemination of information of information is an on-going
process. Relevant platforms such as the Local Labour Forum and internal media such as news letters
are used by management to remain in touch and also ensure that there is constant communication with
the work force. These current controls have even become more relevant during this institutional
change and review period that is happening throughout the city. The risk remains with a residual green
rating.
6. Possible institutional changes
As envisaged at the beginning of the financial year, this risk has materialized and it is gratifying there
has not been adverse impact on the company itself. The current merger with the Joburg Zoo is
currently underway and there has been no drastic interruptions to the running and normal operations
of both companies. There is constant engagement with employees led internally, from the Managing
Director’ office and institutionally from the City Manager’s office. As already mentioned above, the
67
engagement processes in the form of circulars, meetings and ad hoc briefings throughout has helped to
management challenges that often accompany such organizational changes.
The risk ratings remain green and no landscape causal factors are expected that would take this
company into the red. As part of the continuous risk monitoring and reporting on the identified risks,
any changes will be noted henceforth.
7. IT's environment failure to meet organizational demands and needs
The implementation of the IT Road map strategy is continuing to deal with challenges facing the
company. General improvements with regard to hardware equipment, software and key systems have
been implemented. The imminent merger with the Joburg Zoo presents new challenges and
appropriate steps are undertaken, to ensure transition and alignment is smooth. Improved turn-
around times in resolving customer queries have also contributed in terms of quality of service
received from the unit.
Challenges still remain with regard to connectivity on some areas. Current controls are still maintained
and coupled with improvements from new action plans implemented, has helped to maintain the
residual amber rating of the risk.
8. Fraud and corruption
Current controls have been maintained. Several improvements around bidding committees have been
implemented to enhance accountability and requisite objectivity in the adjudication process. Key
personnel and management have undertaken relevant training and such training will be carried to the
rest of company to ensure skills gaps are addressed.
The Anonymous Tip off line is still maintained though the number of calls has reduced considerably. As
reported in the previous periods, investigation in allegations of corruption and maladministration are
still in progress. The process is duly managed from the Managing Director’ office with a view to manage
any adverse risk implications that may arise from the due process. The reduced number of incidents
and generally, effective financial management controls have assisted to manage causal factors
identified initially, and to maintain within the residual amber rating.
68
9. Employee wellness (influence on service delivery mandate and performance of the
company)
Various wellness programmes, such as the Biggest Looser, Wellness day, Flu vaccinations, etc. have
been implemented and are carried out as annual programmes within the company. These programmes
have been well received by the employees and this is visible from the numbers utilizing the services.
The risk remains with a residual green rating.
10. Compliance to Legislation, policies and procedures
Current controls in the form of a checklist, the legal register, internal self- audits, continuous risk
assessments etc. undertaken by management helps to maintain the risk within the residual green
rating. No new causes have been noted and all the risk will duly be reviewed during the coming risk
assessment in the 2012/13 financial year. The risk remains within the residual green rating.
11. Operational Risks
Key operational risks have been identified across all departments, to identify and assess key issues that
could impede them from operating optimally, in achieving annual operational objectives. Tracking and
monitoring occurs within the risk management framework and procedures, as an overall company
strategy and vision, of embedding risk management as part and parcel of daily routine and
management of the company business. There have been no major incidents or occurrences during the
period under review that have adversely impacted on the operations of the departments.
12. Emergency Preparedness and Contingency Planning
The JCP Disaster management plan has been reviewed and updated following last year’s gap analysis
exercise. Emergency drills have been undertaken and this will be carried into the following financial
year to embed emergency readiness and awareness amongst the workforce of the company. This is a
critical component of the company’s SHE Policy and demonstrates management commitment in
walking the talk in terms of customer and employee safety within our work places.
With the pending merger of JCP with Joburg Zoo, we will ascertain that the plan responds to the
institutional changes and update it accordingly.
69
13. Risk Financing
Johannesburg City Parks has experienced improved statistics on losses, both in terms of frequency and
severity compared to prior years (Refer to Table 1 below)
The majority of claims still emanate from damage to boundary fences surrounding public facilities
managed by the company. Second major perils are related to theft of the palisade fence. These are
directly connected to the issue of safe guarding and security of our facilities. As highlighted in terms of
our risk control activities, adequate security resources in safe guarding and securing of our facilities
remains a daunting challenge for the company. The company is however, undertaking several
initiatives involving community based formations and other law enforcement agencies such as the
JMPD and SAPS in addressing the abovementioned problems.
The premium paid during the financial year 2011/12 is R2 848 599. This is a slight increase compared
to the premium paid in the 2010/11 financial year which amounted to R1, 423 319.37 but far lower
than R3, 277, 864 paid in 2009/10.
Table 1: claims experience for the past three years
Class
Description
1st July 2009 – 30June
2010
1st July 2010 – 30 June
2011
1st July 2011 – 30 June
2012
No
Gross Loss
No
Gross Loss
No
Gross Loss
Assets
105
R3 814 619.00
104
R2 103 995.00
93
R573 012.00
Commercial
Crime
9
R50 709.00
0
0.00
0
R0.00
Group Personal
Accident
3
R0.00
0
0.00
0
R0.00
Liability
96
R362005.00
154
R333 779.00
106
R53 086.00
EPL*
5
R0.00
1
0.00
1
R0.00
70
DOL
0
R0.00
0
0.00
0
R0.00
Totals
218
R4 227 333.00
259
R2 437 774.00
200
R626 774.00
Grand Totals
218
R4 227 333.00
259
R2 437 774.00
200
R626 774.00
Note
1. E.PL. Employment Practices Liability Cover
2. D & O Directors and Officers Liability Cover
3. G.P.A. Group Personal Accident Cover
Fraud Risk Management
The anonymous tip-off line independently managed by Deloitte is still operational and has experienced
a huge reduction in terms of calls received in the past year. The company continues to pay attention to
the risk of fraud and/or any incidents reported or suspected by ensuring that these are investigated
and reported accordingly. The Fraud prevention strategy is reviewed annually to ensure that it remains
relevant to changes affecting the company.
Compliance Risk Management
In alignment to the company’s risk management philosophy and framework, the company undertook a
risk assessment in respect of the Consumer Protection Act. The purpose of the exercise was to identify
any potential legal risks that the Act could pose for JCP and ensure that reasonable mitigation measures
are put in place to avoid any adverse impacts.
71
Section 6: Risk Management and Internal controls
JCP regards risk management as an essential element of good corporate governance. The Audit
Committee, a subcommittee of the Board, is delegated to oversee the risk management process in the
company. The committee assists the Board in reviewing the quality, integrity and reliability of the risk
management process and reviewing the significant risks facing the company.
The Risk Management Framework provides for the continual review and monitoring of the company‘s
key risks. Key risks and uncertainties identified as part of the risk management process undertaken
during the year, together with some of the mitigating actions undertaken, are set out herein below:
14. Financial sustainability and funding to meet desired service delivery levels
The management of the risk has ensured JCP remains a going concern despite obvious consequences as
a result of financial constraints facing the company. Stringent financial measures followed, combined
with a range of cost cutting measures implemented by Departments across the company have ensured
that the risk remains inherently, green from the initial residual rating that was the case at the
beginning of the financial year.
The merger with the JHB Zoo comes with an additional portfolio and accompanying operational
challenges. As a response mechanism, management will still pursue innovative financial solutions to
ensure it carries out its service delivery mandate.
15. Environmental degradation and impairment
External influences arising from a range of causal factors such as littering, vagrancy, illegal dumping in
designated open spaces and broadly, environmental conditions such as challenges posed by the reality
of acid mine drainage remains realistic challenges facing both JCP as an entity as well as the CoJ as the
parent municipality. JCP is also faced with a challenge on the interdependency on other role players
such the JMPD; JRA etc. in terms of by-law enforcement.
Internally, JCP has implemented a range of risk mitigation measures such waste management schemes
to ensure separation at source, limitations on paper usage amongst all departments, and the creation of
department that would specifically focus at the issues of urban forestry and greening with the
municipality of Johannesburg. Though not totally eliminating the environmental challenges, the
programmes implemented and others as carried out by the company, ensures that the risk remains
within the acceptable residual amber rating.
72
16. Safety and security of JCP facilities.
This risk remains key and high in terms of the company’s risk profile. The vast nature and geographic
spread of the company‘s portfolio, comprising of designated open spaces, pavements, cemeteries,
nature reserves, koppies and other conservation areas presents the company with a huge challenge of
ensuring that the community feels safe and secure within these facilities. As already mentioned,
contributing factors such as financial constraints, institutional model of the company and resources
availability are real issues that the company is faced with in managing the risk.
Initiatives in place include joint operations with JMPD, the SAPS and in some cases, community based
groupings. The abovementioned measures implemented have helped to ensure that the risk remains
within the acceptable residual amber rating. This is a quantum leap from the initial red rating that was
accorded during the risk assessment at the beginning of the financial year.
17. Inadequate Contracts Management
Measures implemented in response to the risk included:
The appointment of the appropriate official to manage this portfolio.
A due diligence exercise that was completed to determine the status of all current and existing
contracts of the company and implement proposals to ensure such key processes are managed
effectively, thereby eliminating gaps that were identified previously.
The development of a Contract Management Policy Framework is in progress and this
measure will go a long way in terms of ensuring that internal processes and procedures are
effectively aligned to best practice
The abovementioned implemented actions and the accompanying review of the procedures have
brought much progress anticipated at the time of the risk assessment. The steps undertaken has
ensured that the risk rating is reviewed and set at the residual green rating, considering all of the
achievements made in addressing the causal factors cited at the time of the risk assessment.
73
18. Levels of Employee engagement and satisfaction
The engagement of employees on key organizational processes such as the institutional review,
employment conditions and general dissemination of information of information is an on-going
process. Relevant platforms such as the Local Labour Forum and internal media such as news letters
are used by management to remain in touch and also ensure that there is constant communication with
the work force. These current controls have even become more relevant during this institutional
change and review period that is happening throughout the city. The risk remains with a residual green
rating.
19. Possible institutional changes
As envisaged at the beginning of the financial year, this risk has materialized and it is gratifying there
has not been adverse impact on the company itself. The current merger with the Joburg Zoo is
currently underway and there has been no drastic interruptions to the running and normal operations
of both companies. There is constant engagement with employees led internally, from the Managing
Director’ office and institutionally from the City Manager’s office. As already mentioned above, the
engagement processes in the form of circulars, meetings and ad hoc briefings throughout has helped to
management challenges that often accompany such organizational changes.
The risk ratings remain green and no landscape causal factors are expected that would take this
company into the red. As part of the continuous risk monitoring and reporting on the identified risks,
any changes will be noted henceforth.
20. IT's environment failure to meet organizational demands and needs
The implementation of the IT Road map strategy is continuing to deal with challenges facing the
company. General improvements with regard to hardware equipment, software and key systems have
been implemented. The imminent merger with the Joburg Zoo presents new challenges and
appropriate steps are undertaken, to ensure transition and alignment is smooth. Improved turn-
around times in resolving customer queries have also contributed in terms of quality of service
received from the unit.
74
Challenges still remain with regard to connectivity on some areas. Current controls are still maintained
and coupled with improvements from new action plans implemented, has helped to maintain the
residual amber rating of the risk.
21. Fraud and corruption
Current controls have been maintained. Several improvements around bidding committees have been
implemented to enhance accountability and requisite objectivity in the adjudication process. Key
personnel and management have undertaken relevant training and such training will be carried to the
rest of company to ensure skills gaps are addressed.
The Anonymous Tip off line is still maintained though the number of calls has reduced considerably. As
reported in the previous periods, investigation in allegations of corruption and maladministration are
still in progress. The process is duly managed from the Managing Director’ office with a view to manage
any adverse risk implications that may arise from the due process. The reduced number of incidents
and generally, effective financial management controls have assisted to manage causal factors
identified initially, and to maintain within the residual amber rating.
22. Employee wellness (influence on service delivery mandate and performance of the
company)
Various wellness programmes, such as the Biggest Looser, Wellness day, Flu vaccinations, etc. have
been implemented and are carried out as annual programmes within the company. These programmes
have been well received by the employees and this is visible from the numbers utilizing the services.
The risk remains with a residual green rating.
23. Compliance to Legislation, policies and procedures
Current controls in the form of a checklist, the legal register, internal self- audits, continuous risk
assessments etc. undertaken by management helps to maintain the risk within the residual green
rating. No new causes have been noted and all the risk will duly be reviewed during the coming risk
assessment in the 2012/13 financial year. The risk remains within the residual green rating.
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24. Operational Risks
Key operational risks have been identified across all departments, to identify and assess key issues that
could impede them from operating optimally, in achieving annual operational objectives. Tracking and
monitoring occurs within the risk management framework and procedures, as an overall company
strategy and vision, of embedding risk management as part and parcel of daily routine and
management of the company business. There have been no major incidents or occurrences during the
period under review that have adversely impacted on the operations of the departments.
25. Emergency Preparedness and Contingency Planning
The JCP Disaster management plan has been reviewed and updated following last year’s gap analysis
exercise. Emergency drills have been undertaken and this will be carried into the following financial
year to embed emergency readiness and awareness amongst the workforce of the company. This is a
critical component of the company’s SHE Policy and demonstrates management commitment in
walking the talk in terms of customer and employee safety within our work places.
With the pending merger of JCP with Joburg Zoo, we will ascertain that the plan responds to the
institutional changes and update it accordingly.
26. Risk Financing
Johannesburg City Parks has experienced improved statistics on losses, both in terms of frequency and
severity compared to prior years (Refer to Table 1 below)
The majority of claims still emanate from damage to boundary fences surrounding public facilities
managed by the company. Second major perils are related to theft of the palisade fence. These are
directly connected to the issue of safe guarding and security of our facilities. As highlighted in terms of
our risk control activities, adequate security resources in safe guarding and securing of our facilities
remains a daunting challenge for the company. The company is however, undertaking several
initiatives involving community based formations and other law enforcement agencies such as the
JMPD and SAPS in addressing the abovementioned problems.
The premium paid during the financial year 2011/12 is R2 848 599. This is a slight increase compared
to the premium paid in the 2010/11 financial year which amounted to R1, 423 319.37 but far lower
than R3, 277, 864 paid in 2009/10.
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Table 1: claims experience for the past three years
Class
Description
1st July 2009 – 30June
2010
1st July 2010 – 30 June
2011
1st July 2011 – 30 June
2012
No
Gross Loss
No
Gross Loss
No
Gross Loss
Assets
105
R3 814 619.00
104
R2 103 995.00
93
R573 012.00
Commercial
Crime
9
R50 709.00
0
0.00
0
R0.00
Group Personal
Accident
3
R0.00
0
0.00
0
R0.00
Liability
96
R362005.00
154
R333 779.00
106
R53 086.00
EPL*
5
R0.00
1
0.00
1
R0.00
DOL
0
R0.00
0
0.00
0
R0.00
Totals
218
R4 227 333.00
259
R2 437 774.00
200
R626 774.00
Grand Totals
218
R4 227 333.00
259
R2 437 774.00
200
R626 774.00
Note
1. E.PL. Employment Practices Liability Cover
2. D & O Directors and Officers Liability Cover
3. G.P.A. Group Personal Accident Cover
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Fraud Risk Management
The anonymous tip-off line independently managed by Deloitte is still operational and has experienced
a huge reduction in terms of calls received in the past year. The company continues to pay attention to
the risk of fraud and/or any incidents reported or suspected by ensuring that these are investigated
and reported accordingly. The Fraud prevention strategy is reviewed annually to ensure that it remains
relevant to changes affecting the company.
Compliance Risk Management
In alignment to the company’s risk management philosophy and framework, the company undertook a
risk assessment in respect of the Consumer Protection Act. The purpose of the exercise was to identify
any potential legal risks that the Act could pose for JCP and ensure that reasonable mitigation measures
are put in place to avoid any adverse impacts.
Risk Control
During the period under review, over 50 percent of the company’s flagship facilities were surveyed.
During the inspections, HIRA approach was adopted which constitutes hazard identification and risks
assessment. The common inherent hazards and associated risks included, environmental, disaster,
security and occupational health hazards.
Section 7: Internal Audit Function
The role, purpose and responsibility of the internal audit function are stipulated in the Internal Audit
Charter which is in line with the requirements of the Institute of Internal Auditors. The function has a
dual reporting line, that is, administratively to the Managing Director and functionally to the Audit
Committee, thus giving independence to the function.
A risk based internal audit plan was developed, deriving from a formal enterprise – wide risk
assessment. The plan was duly approved by the Audit Committee as is required by Section 165 (2) (a)
of the Local Government Municipal Finance Management Act, No 56 of 2003. The main purpose of the
Plan was to ensure that Internal Audit assisted the company in meeting its objectives by reviewing the
high risk areas, systems and processes.
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In accordance with the plan, thirty seven (37) audits were scheduled to be conducted. Thirty four (34)
audits were completed and reported on representing 89% implementation of the total annual plan by
30 June 2012. The remaining three were deferred due to the on-going institutional review.
In addition to the implementation of the operational plan, internal audit closely monitored the
implementation of management action plans addressing the findings raised in the previous financial
year’ Management letter by the Auditor General including internal audit findings. Management has
satisfactorily closed the majority of the findings, thus ensuring a sound internal control environment.
Audit Opinion on Internal Control Environment
The overall opinion, based upon, and limited to the work performed during the year, is that an
adequate level of assurance can be given that there is a fairly sound system of internal control,
designed to meet the Company’s objectives. We therefore consider that reliance can continue to be
placed on the internal controls within the company.
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Section 8: Response to the Auditor-General Report
Johannesburg City Parks – Summary of AG Management Letter - Year Ended 30 June 2012 Finding No. Description AG Recommendation Management response 1. Non compliance with supply chain regulations Management should enhance the controls in
place to ensure that all policies and regulations are complied with regards to supply chain management regulations
In all cases referred to, reasons for deviating from the competitive bidding process were recorded and the deviation were tabled at Exco and the JCP Board of directors and has also been reflected in the notes to the AFS of JCP in terms of compliance with section 36 (2) of the JCP SCM policy.
2. Non-compliance with SCM regulation 36 for deviations
Management should ensure that deviations are guided by the framework that was approved by council for the CJMM group is implemented to guide the decisions of the accounting officer when applying regulation 36 of the supply chain regulations
In all cases referred to, reasons for deviating from the competitive bidding process were recorded and the deviation were tabled at Exco and the JCP Board of directors and has also been reflected in the notes to the AFS of JCP in terms of compliance with section 36 (2) of the JCP SCM policy.
3. The winning provider in service of the state Management should comply with MFMA
Supply chain regulation in evaluating tender submissions from suppliers.
We agree with the finding. With respect to Ntuma Civil and Solutions cc, management and were under the impression that the exemption in terms of regulation 44, which allowed the award of tenders to employees in the service of the State provided they made a declaration to this effect, was still in force. We hereby advise that all the accredited suppliers listed above have been made inactive on our financial system and no awards to state employees, will be made in future. Management will endeavour to use alternative means to identify possible transgressors.
4. Incorrect calculation of leave Management should apply the current
approved annual leave policy to manage leave and record all leave due to its employees at the end of the financial year in accordance with the policy.
It has always been JCP’s practice to encourage employees to take their annual leave and there are 561 employees out of a total number of 1546 employees whose accrued leave balance is currently greater than the policy aspiration. In line with the Institutional Review, JCP reviewed its policy with effect from 01 July 2012 to align it with that of the City of Johannesburg which allows an accrual of 48 annual leave days.
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5. No impairment for long outstanding receivables Management should perform an assessment of
the recoverability of its accounts receivable and impair amounts that have any indicators of impairment in line with its policy. The evidence of this assessment should be recorded and filed for record and evidence purposes
Management agrees with the finding and has made an adjustment to the provision for doubtful debts in respect of the DRT debt owing. The City of Johannesburg as the parent municipality has been notified of the default and efforts are still underway to recover the monies owing.
6. Assets recognized at Zero cost during their acquisition Management should perform adequate
monitoring and supervision to ensure that staff involved in financial information preparation adheres to all applicable laws and regulations and ensure compliance with GRAP in preparation of such information. Management should record all assets acquired at no cost at their fair value as at the date of acquisition as required by GRAP 17.
The assets referred to were assets that were acquired in 2001 when the institutional review / re-structuring of the CJMM took place at zero cost. These assets have been consistently and consecutively reflected and disclosed as such since inception. These assets are still listed, reflected and monitored on the fixed asset register as such for control purposes even though they are appearing as zero balances. The fixed asset controller is fully aware of these assets. We hereby advise that all these assets are included and assessed for their residual values annually i.t.o the GRAP standards and are adjusted to reflect as such accordingly. The above clearly indicates that management has fulfilled its responsibilities relative to monitoring and supervision.
7. Depreciation and accumulated depreciation amounts incorrectly calculated Management should investigate the extent of
the error, make the necessary adjustments and ensure that this system error is corrected. The system used to maintain the fixed asset register should support compliance with the standards of GRAP.
We agree with the finding above. We wish to advise that the monthly depreciation calculation is automatically calculated by the Great Plains financial system and is correct. The functionality of the Great Plains financial system does not allow us the option to select and calculate depreciation from the date that the asset is placed in service. The “full month” option in terms of the GP manual is used for the basis of the depreciation calculation, which means that all assets that are placed in service at any time during the month will begin depreciating on the first day of the following month. This is consistent with our application in terms of depreciation calculations in the past and is applicable to all assets that are appearing on the asset register. Based on the above, we confirm that there is no miscalculation / error of the depreciation calculations and depreciation as reflected in the books of account is correct. This is further supported by the assessment that is conducted on all assets in
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terms of compliance with GRAP for residual values and impairment adjustments. Management are comfortable that the method of calculating depreciation as per the above does not materially affect the value of assets as shown in the annual financial statements and are reluctant to change the standard non - customised software modules currently in use at JCP. Management will keep track of the possible errors on additions outside of the fixed asset register and make the necessary adjustments to the general ledger.
8. Overspending of the approved capital budget Management should ensure that controls in
place are strengthened to identify any possible or imminent overspending on the approved budget. Any spending that exceeds the approved budget should be approved by the relevant official at the City of Johannesburg which is the parent municipality. This will ensure compliance with the applicable laws and regulations.
Management reviews capital and operational expenditure reports on a monthly basis. There was a favourable balance of R3 637 206.62 of the capex budget available at the end of May 2012 and a copy of the May 2012 capex report has been attached for ease of reference. The favourable balance at the end of May 2012 was nullified due to journal entries that were passed in the month of June 2012. Upon review of the June 2012 general ledger by the Finance department, certain invoices were journalised from repairs and maintenance to capital expenditure leasehold improvements. These adjustments were as a result of a misinterpretation by the facilities department between what constitutes capital expenditure versus repairs and maintenance in respect of leasehold improvements. We have stringent controls in place to monitor, review and control the operational and capital expenditure budget limits through the Workplace / Commitment / Order system. No over expenditure is permitted in terms of the controls that are activated within the system. However, the over expenditure that is currently reflected in the books of account was the result of the reallocation journals mentioned above. A report of the over expenditure will be tabled at the mayoral committee in line with SHU timelines.
9. Assets incorrectly classified as repairs and maintenance Management should review all invoices and
goods received, apply its policies and the standards of GRAP to ensure that they are classified correctly in the financial records.
Bins The steel lockable diamond mesh swivel bins are installed in the various parks that JCP have been mandated by the CoJ to maintain. The parks do not belong to JCP and are the property of
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CoJ. Bins are subject to continuous vandalism and abuse of the bins takes place in various forms. The life cycle of a bin is directly linked to its location and usually does not exceed 12 months. Various pictures have been attached to highlight the above for ease of reference. Management is of the opinion that expensing the bins above is appropriate given the nature of the business.
10. No evidence of review of the fixed asset policy by the entity Management should ensure that the entity’s
fixed asset policy is reviewed and updated for its appropriateness and effectiveness and alignment with the standards of GRAP.
Tools Due to the nature of JCP’s business, the tools referred to above are used daily and in most cases their life expectancy is limited to a period of twelve months or less. It is also not cost effective to repair these tools. We would also like to point out that certain tools are assessed by management to be capitalized, are accounted for accordingly. Management is of the opinion that expensing the tools above is appropriate given the nature of the business. Various management controls are in place whereby these jacks, and other tools that are not capitalized, are monitored and controlled in order to reduce the risk of theft / abuse associated thereto. We further wish to advise that assets are continuously monitored and verified by the fixed asset monitoring department, whose primary duties is to verify and account for the entity’s fixed assets. The plant manager performs an independent verification of plant equipment to assess the residual value in terms of the expected useful life of plant equipment. The fixed asset controller and the IT manager conduct a similar exercise for the remaining fixed assets. This includes the assessment of all assets in terms of GRAP 21-Impairments of assets and all other necessary GRAP standards and the necessary accounting and financial adjustments. Generally speaking, JCP policies are updated on a need to change basis. The above accounting treatment in respect of jacks and loose tools is in line with GRAP and the JCP policy. However, to avoid any confusion, the fixed asset policy will be updated to
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highlight the appropriate treatment of tools and jacks.
11. Poor safeguard of the entity’s assets Management should ensure that existing
controls regarding the safeguarding of assets are implemented and enforced to ensure that they operate effectively throughout the period. In instances where there is evidence of employee negligence in loss of assets, management should take steps to recover monies lost from the employee concerned.
Management would like to advise that fixed assets are monitored and verified on a continuous basis by two officials in the fixed asset monitoring department, whose sole purpose is to safeguard JCP’s fixed assets. Management is satisfied with the current level of stringent control and oversight measures that have been implemented and are functional in terms of the safeguarding of the entity’s assets. The stewardship of all 11 000 fixed assets at JCP are signed for by the relevant asset custodians as evidenced by asset custody forms. Every asset is bar-coded. Furthermore, there are security guards present at each depot that are employed to safeguard the assets of that depot. However, there are isolated instances where assets are lost or stolen and these instances are rigorously investigated. In these cases the depot manager is responsible to determine, after an initial report, whether there was negligence or not. Where assets are stolen, they are reported to the South African Police and affidavits provided to them. In total there were 77 insurance claims for lost assets during the year, of which a total of 8 (6 referred to above) were repudiated by the insurance company. A re-review of the 8 repudiated claims will be undertaken.
12. Annual leave taken before approval Management should put controls in place to
ensure that leave is approved before it is taken. JCP leave policy requires that the senior personnel responsible for approving leave at the relevant department must approve the leave before such leave is taken and controls are in place to ensure compliance with this policy. Five of the leave cases listed above occurred due to personal/domestic/emergency / unforeseen circumstances experienced by the employee, resulting in the employee not being in a position to complete the leave form in advance. Management controls over time and attendance resulted in the identification and rectification instances where the relevant leave did not meet the requirements of the JCP HR policy, as highlighted in 2 of the instances detailed below with the subsequent
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amendment and approval of the leave form by management. In line with the recommendation above, the leave form will be amended to accommodate the reasons for the post approval of leave taken.
13. Supplier did not meet the minimum specification criteria Management should ensure compliance with
supply chain management regulations when evaluating tenders.
The above two suppliers did meet the minimum specification requirements and did provide proof of municipal rates payments and the COID registration as per bid invitation documents as reflected in the attached Bid Evaluation Committee report. Management is retrieving the relevant documentation from Metrofile.
14. Non compliance with Grap 13-Leases Management should ensure that the financial
statements are prepared in accordance with applicable GRAP standards to the entity and review to ensure that there is compliance to the standards during the preparation of the financial statements
We agree with the finding. The difference is not significantly material and does not materially affect or distort the presentation and disclosure of the finance leases as reflected in the annual financial statements of JCP.
15. Overstatement of bad debts written off Management should enhance controls
surrounding the recognition and reversal of revenue to ensure that it is accurately recorded.
We agree with the finding and the correcting adjustments have been processed in the AFS. The set up parameters in the financial system automatically posted the transaction to bad debts written off instead of the sales account.
16. Employee contracts no submitted Management should ensure that all new
employees sign a contract of employment that sets out the terms and conditions of employment as required by the policy and the BCEA.
The majority of employees on this audit list belong to a category of transferred employees. JCP inherited the employees transferred from the City of Johannesburg via section 197 of the Labour Relations Act and in this instance an agreement of sale and the original sign-on document signed between the employee and employer were regarded as a binding employment contract. A copy of the original sign-on document has been attached for ease of reference.
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Section 9: Corporate Ethics and Organisational Integrity
JCP places a high premium on sound ethical behaviour and integrity, which should be beyond reproach.
To achieve this, the Board adopted a Code of Conduct and a Charter encapsulating sound governance
and an ethical approach to the way its directors, officers and employees conduct business internally
and externally. This Charter subscribes to the principles set out in the King III Report.
In addition to the above, the organisation is structured in a manner that sees clear and material
observance of the Municipal Structures Act, Municipal Systems Act and Municipal Financial
Management Act, as well as other pertinent legislation including the Companies Act, Labour Relations
Act, Occupational Health and Safety Act and financial/tax legislation.
From the outset of the Company’s existence, there has been a system of delegated authority in place,
which has a set framework for the organisational structure and executive implementation supported
by the appropriate committee structures.
All the above support the regular assessments of governance and legislative compliance reflecting a
positive status in relation to ethics and organisational integrity.
Section 10: Sustainability Report
JCP trades in a solvent position and it is not anticipated that this will change. As is required by the
MFMA, JCP has an approved budget and receives regular subsidy payments from the CoJ. The Board of
Directors, and specifically the Audit and Risk Committee, consider on a regular basis the aspects of
trading as a going concern and subject to the regular receipt of the C.O.J subsidy do not foresee any
risks to the continued sustainability of the organisation.
Human development is a high priority within the organisation and developmental training is focussed
at not only enhancing productivity and service delivery, but also the empowerment and skilling of
employees and community members through the EPWP programmes. The employees of JCP are
regarded as an extremely valuable asset and are treated in a caring manner.
By its very nature, JCP is focused on the social and environmental issues, which are paramount for the
development of a large metropolis and the approval of its inhabitants’ wellbeing. The development of
parks and nature areas, especially in the previously disadvantaged areas, receives specific priority. It is
acknowledged that taking care of ancestors and ensuring a suitable final resting place for them, is
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especially important to many of the cultures represented in the community and JCP is ensuring that
sufficient burial space is provided both in the immediate and long term.
Stakeholder Liaison
The Stakeholder Liaison unit had 386 engagements with Councillors for the 2011/12 financial year is
an increase on the 278 of the previous year. The internal and external stakeholders include
engagements/meetings with Community Based Organisations, Regional Service Delivery Meetings,
Section 79 meetings and JCP departments.
Information Technology
The Knowledge Management department continues to make progress along with the IT Department in
terms of implementing the IT Strategy approved by the Board in 2008. IT users at JCP continue to
experience a high level of service from the IT department. The Knowledge Management department’
focus during the last quarter under review was to assist management to populate their scorecards
including capex projects so that the scorecard review process can once again be done electronically.
Two successful IT audits were completed during the year. The Board approved strategy is almost fully
implemented and an updated strategy incorporating the Zoo will be developed.
Section 11: Corporate Social Responsibility Report
The following key initiatives were effected through the use of sponsors and donors in an effort to
optimise the potential of our facilities and our involvement in providing benefits to other needy
organisations.
Launch of Nelson Mandela Day
African Rainbow Minerals (ARM) generously donated 250 trees. ARM partnered with
Johannesburg City Parks planting the first 100 trees to launch the Nelson Mandela Day
Programme at River Park in Alexandra. Learners, teachers and the community of Alexandra
joined hands in planting the 100 trees to celebrate Nelson Mandela's birthday.
Siyakhona Clean-up Campaign in Marlboro, Alexandra
Johannesburg City Parks (Region E) partnered with Corporative Governance and Traditional
Affairs to clean-up all zoned public open spaces which comprised of the following parks: River
Park, Juskei Phase 1, 2 & 3, Vasco Park and also to assist with the clean-up of litter/debris along
the Juskei River. The initial clean-up campaign integrated a pest control model, which was also
introduced regarding rodent eradication within Alexandra.
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Ithuthe Primary School Food Garden Project with 94.7 Stereo
City Parks was approached by Bongani Nxumalo from the Rude awakening Show (94.7 Stereo) to
assist with trees and the development of a food garden at the Ithute Primary school in Alexandra.
Old Mutual contributed R10 thousand in kind towards the initiative.
Engen Food Garden launch at Cosmos City Primary School
JCP developed 15 food gardens in various schools throughout the City. This was sponsored by
Engen. JCP hosted a launch event at the Cosmos City Primary School to highlight the importance of
caring for the environment and the importance of good eating habits.
Inkwenkwezi Food Garden sponsored by Coca-Cola and Total
City Parks partnered with Total and Coca-Cola in unveiling a food garden at Inkwenkwezi Primary
School in Pimville Soweto to develop a food garden. The food gardens will be used to supplement
the food programme in the school and also assist in reinforcing environmental education at the
school.
BMW Financial services launches Food gardens in Rabie Ridge Midrand
BMW Group in partnership with JCP donates R150 thousand for the development of food gardens
at Kanana Primary School and the Kanana Community Centre which forms part of the Midrand
Child Welfare
Youth Going Green: St John’s College & Realogile High School
Johannesburg City Parks in partnership with St John’s College in launching the newly revamped
Alexandra Childcare Centre and the fruit, vegetable and herb garden makeover in Realogile High
School, Alexandra. The project was supported by the Church of Jesus Christ of Latter Day Saints,
Vincent Tshabalala Education Trust and JCP Mavimbela Foundation. The aim is to engage learners
in highlighting the importance of addressing greening disparities and promoting a clean, safe
environment in areas of Johannesburg.
94.7 Highveld Stereo Launches a Food Garden at the Abraham Kriel Orphanage Home
Project initiated by Bongani Nxumalo from 94.7 Highveld Stereo to educate communities on
growing their own vegetables. City Parks provided a lawnmower, brush-cutter, promotional
material, compost, fruit trees and seedlings for the vegetable garden. The costs for the greening
was funded from donations by BMW Finance.
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89
CHAPTER FOUR: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT
Every company's unique culture, values, work practices and processes are what transform visions and
ideas into reality. And the space in which a company resides is integral to fostering a creative and
dynamic culture, and in turn, to attracting talented and committed employees to drive the employer
brand. The Human Resources department supported the company in its effort to establish the values,
culture and practices in order to make it A world class African green environment and cemetery
management company.
Section 1: Human Resource Management
Trends on Personnel Expenditure for the Period 2009 to 2012
The following tables indicate these trends.
Expenditure on salaries over the last 3 years
2011/12 2010/11 2009/10
R’ m R’ m R’ m
Total expenditure 556.1 587.5 515.8
Total payroll expenditure 342.6 327.2 297.2
Total payroll expenditure over the last 3 years as a % of the total budget
2011/12 2010/11 2009/10
Payroll expenditure as a % of total
budget
62% 56% 58%
Employee Age Analysis
The majority of the Company’s workforce falls in the age categories 51-60 and 41–50. These two
categories represent approximately 70% of the Company’s workforce. The Company is cognisant of the
possible implications of the age profile on productivity and service delivery challenges, and continues
to monitor the impact on the organisation. The following table illustrates the age composition of JCP’
employees.
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Age analysis of the total workforce
AGE
NO OF
OPERATIONS
EMPLOYEES
OPERATIONS
PERCENTAGE
NO OF
SUPPORT SERV
EMPLOYEES
SUPPORT
SERV
PERCENTAGE
COMPANY
TOTALS
COMPANY
PERCENTAGE
61-70 87 6.21 8 4.52 95 6.02
51-60 592 42.23 31 17.51 623 39.46
41-50 433 30.88 47 26.55 480 30.40
31-40 150 10.70 56 31.64 206 13.05
21-30 137 9.77 35 19.77 172 10.89
15-20 3 0.00 0 0.00 3 0.19
TOTAL 1 378 100 170 100 1 579 100
Staff Breakdown
Number of staff per function as at 30 June 2012
DEPARTMENT DEPOT TOTAL
Ops: Parks & Cemeteries
Parks Executive
Parks Regions A-G
2
857
Cemeteries 128
Special Projects
Special Projects Head Office
Technical Training & JCP Academy
Urban Forestry & Nurseries
7
96
46
Ops:Environ & Infrastructure Ops Executive: Environment and
Infrastructure
3
Facilities Management 124
SHEQ & OSIM 11
Project Management & Beautification 39
Environmental Conservation 78
Marketing & Communication Marketing & Communication 74
Human Resources Human Resources 26
Finance Finance (including Cemeteries) 56
Assurance Services Audit & Risk 9
MD Office MD 2
New Business Development External Services 12
Company Secretary Company Secretary 9
TOTAL 1 579
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Section 2: Building a Diverse Workforce (Employment Equity)
In line with JCP’ drive to create a diverse workforce which is truly representative of the demographics of
Gauteng and one which continues to empower marginal groups in the workplace. The following table
reflects the company’ workforce profile as at 30 June 2012:
JCP Workforce Profile
Male African
Male Coloured
Male Indian
Male White
Female African
Female Coloured
Female Indian
Female White
TOTAL
Top Mgmt 0 0 0 0 0 0 0 0 0 Snr Mgmt 2 0 0 2 1 0 0 0 5 Professional 17 6 2 8 9 1 2 4 49 Skilled/Technical
68 6 4 20 60 8 7 7 180
Semi Skilled 510 13 2 6 93 5 1 5 635 Unskilled 536 3 1 0 36 1 0 0 577 Permanent 1 183 28 9 36 199 15 10 16 1 446 Non Permanent (interns & Apprentices)
63 8 2 1 56 3 0 0 133
TOTAL 1 196 36 11 37 255 18 10 16 1 579
Employment of People with Disabilities
The organisation prioritized the employment of differently abled persons during this financial year. The
percentage of differently abled persons as a percentage of the total workforce has increased from 1.04% to
1.13%.
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Section 3: Skills Development and Training
Training planned and delivered during the period under review was aligned to the company’s overall
objectives of improved service delivery and stakeholder satisfaction. Training needs were identified
through the departmental training needs analysis exercise and implemented according to the Workplace
Skills Plan submitted to the Agriculture Sector Education and Training Authority (AgriSETA).
The focus for the period under review was on various training programmes which included Adult Basic
Education and Training (ABET), Powerspeaking, Electrical Phase Installation, AARTO Traffic Fine and
Financial Literacy Awareness Training. Other training initiatives included training interventions which
were not covered during the implementation of 2010/11 Workplace Skills Plan, which were aimed at
improving skills such as financial literacy, confidence speaking, electrical and traffic legislative management
skills.
Human Resources Development Projects
In contributing towards the reduction of the skills shortage in South Africa, Johannesburg City Parks has
introduced the Apprenticeship and Internship Programmes as indicated below.
Apprenticeship Programme
An apprentice plumber had successfully completed his trade test on 11th November 2011 and had been
declared and bestowed as an Artisan. This brings the total to three qualified Artisans.
All ten (10) apprentices have successfully completed the institutional training on phase two (2) and phase
three (3).
The following table shows successful beneficiaries of the Apprenticeship Programme in various
trades and equity categories.
Trade Black Coloured Indian White Total Total
M F M F M F M F M F
Craft & Related
Trade
Plumbing 1 0 0 0 1 0 0 0 2 0 2
Carpentry 1 0 0 0 0 0 0 0 1 0 1
Non-Permanent 2 0 0 0 1 0 0 0 3 0 3
Total 2 0 0 0 1 0 0 0 3 0 3
The following table shows the beneficiaries of the Apprenticeship Programme in various trades and equity categories who are awaiting for the Trade Test.
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Internship Programme
JCP Interns
AgriSETA had once again assisted with funding by means of discretionary grants to implement the
Internship Programme in the organisation. This is a unique programme that focuses mainly on
imparting the Information, Communication and Technology (ICT) knowledge and skills to the
unemployed youth graduates. Five interns completed this programme during the financial year under
review.
Compliance to the implementation of the programme was adhered to and among others was site visit
meetings conducted by the Learning and Development officials to the user departments, particularly
beneficiaries and mentors. The implementation of this programme has had a positive impact by means
of efficient and effective services rendered by the Information Technology (IT) unit. The programme
served as a good learning platform where knowledge and skills were imparted and most of the Interns
were able to work on their own with less or no supervision.
City Of Johannesburg Internship Programme
The City of Johannesburg had mandated various Municipal Owned Entities (MOE’s) and its
departments through the Youth Directorate Unit to participate in the Internship Programme in various
disciplines for nine months which started on 09 August 2011 to 30 April 2012. As a result, five interns
were allocated to JCP from 10th August 2011 to be exposed in various departments namely, Human
Resources, Finance, IT and SHERQ. This programme assisted inexperienced and unemployed graduates
with the opportunity to gain workplace exposure and experience which will enhance their employment
opportunities elsewhere.
Occupational Category
Trade Black Coloured Indian White Total Total M F M F M F M F M F
Craft & Related Trade
Electrical Engineer
1 1 0 0 0 0 0 0 1 1 2
Welding 1 2 1 0 0 0 0 0 2 2 4
Fitter & Turner 2 2 0 0 0 0 0 0 2 2 4
Non-Permanent 4 5 1 0 0 0 0 0 5 5 10
Total 4 5 1 0 0 0 0 0 5 5 10
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Learnership Programme
Employed (18.1)
The programme is competency based and learners attended lectures once a week and learners had to
compile a portfolio of evidence in order to demonstrate an understanding of each learning outcomes or
unit standards. On successful completion of the programme, learners will be issued with a nationally
recognised competency certificate.
Below is a breakdown of Horticulture NQF Level 4 beneficiaries in terms of the occupational level,
gender and race.
Occupation Level Black Coloured Indian White Total Total
M F M F M F M F M F
Middle Management 3 1 1 1 0 0 0 0 4 2 6
Junior Management 0 2 0 0 0 1 0 0 0 3 3
Semiskilled 1 0 0 0 0 0 0 0 1 0 1
Unskilled 1 0 0 0 0 0 0 0 1 0 1
Permanent 5
3
1
1
0
1
0
0
6
5
11
Total 5 3 1 1 0 1 0 0 6 5 11
Unemployed (18.2)
We are very proud to report that JCP served as the host employer, lead employer and accredited
service provider for the implementation of this non-SETA sponsored Learnership Programme in
General Education & Training Certificate: Horticulture, NQF Level 1. Thirty learners completed this
programme.
Workplace Experience Learning Programme
Another learning programme known as Workplace Experience was officially introduced for the first
time at JCP. This programme is co-funded by JCP and AgriSETA which is aimed at capacitating
inexperienced and unemployed graduates with the necessary knowledge and skills. The beneficiaries
of this programme have been placed in the Facilities Management department based at the Springfield
depot. The implementation of this programme will contribute to the Sector Skills Plan (SSP). Two
learners completed this programme.
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Adult Basic Education and Training (ABET)
A total of twenty four learners continued from the group that started with ABET classes in the previous
financial year.
The following table shows the beneficiaries of the ABET Programme in various equity categories for
the current quarter under review.
Examinations took place in November 2012 on various dates and an average pass rate of 56% was
achieved in all levels. ABET classes for the 2012 academic year resumed on 06 February 2012 with new
and existing learners. A total of forty (40) learners were registered for different levels. This intake was
informed by the Workplace Skills Plan 2011/12.
The following table shows the beneficiaries of the ABET Programme in various occupational levels,
race, gender and age categories.
The following table shows the beneficiaries of the ABET Programme in various occupational levels, race,
gender and age categories.
Occupational
Level
Black Coloured Indian White Total Age Category
M F M F M F M F M F <35 35-55 55>
Craft & Related 1 0 0 0 0 0 0 0 1 0 0 1 0
Semi-skilled 8 7 0 0 0 0 0 0 8 7 0 11 4
Unskilled 17 7 0 0 0 0 0 0 17 7 0 13 11
Permanent 26 14 0 0 0 0 0 0 26 14 0 25 15
Non-
Permanent
0 0 0 0 0 0 0 0 0 0 0 0 0
Total 26 14 0 0 0 0 0 0 26 14 0 25 15
ABET Level Four (4): Communication in English
For the first time Johannesburg City Parks had external examinations for ABET Level 4 learners who
wrote in March 2012. ABET Level Four (4) is equivalent to NQF Level 1 (National Qualifications
Framework) and is an exit level of ABET Programmes. The ABET Level 4 examinations was assessed,
moderated and verified by Independence Examination Board (IEB).
History was made for the first time when 87, 5% pass rate was achieved for the first intake of ABET
Level 4: NQF Level 1 (Communication in English Level 4). The examination took place in March 2012
and the official results have been released and confirmed by the Independent Examination Body (IEB).
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ABET classes for level one 1 to three 3 as well as new level four (4) intakes continue and will start the
final examinations when they are deemed to be ready for the examination. The examination takes place
in June /July and November of each year.
Grants
Mandatory grants
The company received a total amount of R1, 038,314.28 in respect of a mandatory grant for the annual
training report 2010/11 and implementation of WSP 2011/12.
Discretionary Grants
The consultation process with user departments took place to identify critical training needs for
organisational capabilities. This process enabled the Human Resource department to apply for
discretionary grants during the current AgriSETA discretionary grants window period. The training
needs were received, consolidated and application forms were submitted to the SETA by the end of
February 2012. During the discretionary grant window period applications were submitted to
AgriSETA and the following applications were approved.
Below is a breakdown of applications made and the approval status quo.
Learning
Programme
N0. Of
Beneficiaries
applied
Status N0. of
beneficiaries
approved
Total grant
approved
Adult Basic Education
and Training (ABET)
Sixty (60) Approved Twelve (12) R46,320.00
Bursaries Eight (8) Approved Three (3) R99,000.00
Apprenticeship
Programme
Twelve (12) Approved Six (6) R112,860.00
Total of applications Twenty One
(21)
R258,180.00
Legal contracts of all approved learning programmes have been signed by the Legal Department and
submitted to AgriSETA for implementation.
Learning Programme N0. Of Beneficiaries approved Total grant approved
Apprenticeship Programme Seven (7) R 263,340.00
Learnership Programme Fifteen (15) R 247,500.00
Bursar 1 R 33,000.00
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AgriSETA Ministerial Excellence Awards
During the AgriSETA annual general meeting and conference held on 14-15 September 2011,
Johannesburg City Parks scooped a gold award and prize money worth R20, 000.00 in the category of a
Project that trained and employed 50% and more learners.
National Treasury Minimum Competence Levels
In compliance with the National Treasury Minimum Competence Regulations, seven (7) unit standards
were presented to the designated officials as shown below.
Unit Standard
No.
Unit Standards Description N0.of
officials
attended
116353 Participate in the design and implementation of municipal supply
chain management
6
119353 Plan and implement public private partnerships for municipal
service delivery
6
116348 Conduct stakeholder consultation around municipality Financial
Programmes.
1
116339 Apply Risk Management in South African Municipalities 4
116343 Apply the principles of ethics in a Municipality Environment. 2
116361 Interpret SA legislation and policy affecting municipal financial
management
1
119334 Discuss selected legislative regulatory framework governing the
public sector management and administrative environment.
3
Section 4: Organisational Development and Performance Management
Organisational Design
Due to the institutional review process which is currently underway the organizational design and job
definition project has been put on hold.
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Performance Management
The focus is on performance from the individual employee‘s perspective, both in terms of the individual
having their performance managed and also from the perspective of line managers managing the
performance of their reportees. JCP monitors organizational performance on a quarterly basis using a
balanced scorecard as a measurement tool. This is done in line with the requirements of auditing of
performance management information.
Section 5: Quality of Work life Strategy
The Quality of work life programme is a standardised framework to strategically position health and
wellness in JCP as a management responsibility with an underlying undertone for every employee to take
self-responsibility and ownership for their health and wellness. Very pertinent to note is that employee
wellness and health is not managed in isolation of the business but as an integral part of defined
organisational and business drivers such as good corporate governance, labour productivity, sick
absenteeism and cost-effectiveness of health and related services.
The mounting costs of maintaining unhealthy employees, coupled with the expense and disruption
associated with staff turnover, has lead JCP to consider implementing a workplace quality of work life
promotion strategy as it believes it to be crucial to its investment in the organization’s long-term success. It
is well documented that the workplace environment has a powerful effect on the health of employees and
that this directly impacts their level of job satisfaction and the way in which they engage with the company
and their job. The Quality of work life programme consists of the following pillars or sub-programmes:
HIV/AIDS management
Health & productivity management
Wellness management
Section 5.1: HIV and AIDS in the Workplace
The objective of the HIV and AIDS as a sub programme under Quality of work life programmme at JCP is to
ensure that the following interventions are maintained:
Prevention
Treatment, care and support
Human rights and access to justice
Research and monitoring
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Section 5.2: Health and Productivity Management
The Health and Productivity Management focus area is an area of converged efforts to promote the general
health of employees through awareness campaigns, education, and the provision of support services for
managers and employees in order to mitigate the impact of and effect of communicable and non-
communicable diseases on the productivity and quality of life of members of staff.
The focus area integrates the data from the disability programme of the Department and the human
resource management data available on organisational dynamics such as, increased absenteeism and sick
leave utilisation, diminished performance and/or productivity due to physical incapability, increased
medical costs for hospitalization, medicine and other healthcare costs.
Health and Productivity Management will comprise the following areas of intervention:
Disease management and chronic illness
Occupational health education and promotion and absenteeism management
Disability management
Health risk assessment and management.
Section 5.3: Wellness management
Wellness Management covers the spectrum of psychosocial stressors in the workplace in order to enhance
individual and organizational wellness and ultimately productivity. Wellness management recognizes that
the health, safety and wellness of employees directly impact on the productivity of the company. There are
personal and workplace factors that influence wellness and employee performance. The aim of this focus
area is to assist employees to produce at their optimal level. There are four strategic areas of focus:
Employee Assistance Programme (which addresses the psycho-social aspects of Individual
Wellness)
Individual physical health and wellness
Organisational wellness
Work life balance
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Section 6: Employee Benefits
The company currently employs two different types of contract employees, namely, Permanent “cost to
company” contracts and permanent employment contracts. Those employed in the latter category are
offered the following, structured as “add on” benefits to their base salary:
Medical Aid, where the company contributes 60% or R3280.50, whichever is the lesser, of the
total contribution cost
Membership of one of the Pension Funds outlined below where the employer contributes
between 15-22% of base salary per month per member, depending on the Fund of which the
employee is a member
13th cheque equal to 1 month’s salary
Employees on this type of contract tend to belong in the Patterson A and B bands. Those employed on fixed
term, cost to company contracts are required to fund non salary benefits. In addition, these employees may
be paid an annual bonus of up to 14% of their annual cost to company remuneration. Employees on this
type of contract tend to fall in the Patterson C to E bands. JCP currently operates six pension funds and five
medical aid schemes for employees. Employees on cost to company packages exercise their choices in
medical aid membership and retirement funding.
PENSION FUNDS NUMBER OF
EMPLOYEES
Municipal Employee Pension Fund 40
Municipal Gratuity Pension Fund 171
City of Johannesburg Pension Fund 447
eJoburg 705
Joint Municipal Pension Fund 7
MEDICAL AID NUMBER OF
EMPLOYEES
Bonitas 174
Keyhealth 39
L A Health 36
SAMWUMed 55
Hosmed 101
Day One Health 843
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The Day One Health insurance scheme was introduced for all employees without medical aid. This scheme
provides basic benefits and, most importantly, HIV cover with full hospitalisation benefits. The subscription
cost is borne by the company and covers the principal member only. Employees may enrol family members
at a small additional cost which is for their own account.
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Section 7: Supply Chain Management and Black Economic Empowerment
The Procurement Policy for the Company was reviewed, approved and implemented in October 2010. Its
pillars are the various pieces of legislation, such as the Preferential Procurement Policy Framework Act of
2000, the Preferential Procurement Regulations of 2001, the Broad-Based Black Economic Empowerment
Act of 2003 and the accompanying Strategy and Draft Codes of Practice, and the Municipal Finance and
Management Act (MFMA). A Board Supply Chain Management Framework has been approved by the
Executive Committee which incorporates the provisions of Section 111 of the MFMA, the National Treasury:
Municipal Supply Chain Management Regulations of 2005, and the Construction Industry Development Act.
The Company has set a BEE procurement target of 76% for opex and 62% for capex for the financial
year.
The following table is a summary of the BEE spend for the year.
Item Description BEE
R’000
Traditional
R’000
Total
BEE
R’000
BEE %
Opex Committed Expenditure 149 152 16 043 165 195 90
Capex Committed Expenditure 47 331 25 205 72 536 65
Total 196 483 41 248 237 731 83
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CHAPTER FIVE: AUDITED FINANCIAL STATEMENTS AND RELATED INFORMATION
See A.F.S.
105
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CHAPTER SIX: FUNCTIONAL AREA SERVICE DELIVERY REPORT
The table below provides information on the functional area provided by Johannesburg City Parks
incorporated as a section 21 Company to maintain and develop parks, cemeteries and conservation
areas.
Function: Community and Social Services
Sub Function: Johannesburg City Parks
Reporting Level Detail Total
Overview: Johannesburg City Parks (JCP) is the greening, conservation and cemetery management agency for the City of Johannesburg (CoJ).)
Description of the Activity:
JCP is a Section 21 (non-profit) Company that manages and maintains the parks, open spaces, environmental services and cemeteries for and on behalf of the CoJ.
These services extend to include Municipal parks, - environmental, conservation and cemetery services and exclude similar services on Provincial and National government levels.
The strategic objectives of this function are: Service delivery; Customer satisfaction and responsiveness; Occupational Health, Safety and Security; Economic development and Job creation; HIV and AIDS; Safe Clean and Green City; Effective Financial Management
Analysis of the Function:
Statistical information of JCP Nature and extent of facilities provided:
Number of facilities: Number of users:
Parks, cemeteries, nature conservation areas, public open space
Parks and arterials: 2 343 Area of developed parks and arterials: 4 239.5 hectares Area of undeveloped parks: 2 080.6 hectares Nature Reserves: 1 202,6 hectares Selected sidewalks:
The communities and residents within the boundaries of the City of Johannesburg
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Function: Community and Social Services
Sub Function: Johannesburg City Parks
3 593.2 hectares Area of cemeteries: 1 254 hectares Water Surfaces: 174 hectares Street Trees: 1,4 to 1,7million Cemeteries: 36 Crematoria: 2 Nurseries: 4 Bird Sanctuaries: 366,4 hectares Trails and River Trails: 107 km = 1 587 ha Environmental and Educational Centres: 6 Size of fleet: Vehicles: 312 Trailers: 131
Note: the facilities figure should agree with the assets register
Number and cost to employer of personnel associated with JCP:
1 579 employees R 340 521 000
Total operating cost of community and social services function
R 554 156 000 (the assumption is that all expenditure is community and social)
Key Performance Area
Service Delivery
Maintenance cycles:
Number of maintenance cycles (days) undertaken in Parks per category:
Performance During the Year, Performance Targets Against Actual Achieved and Plans to
Actual Target
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Function: Community and Social Services
Sub Function: Johannesburg City Parks
Improve Performance
14 Flagship Parks’ (main parks) Maintenance
Target achieved 7 Days Average 7 Days Average
Developed Parks’ maintenance
Target achieved 21Days Average
21Days Average
Undeveloped Parks’ maintenance
Target achieved 60 Days Average 60 Days Average
Sidewalks’ maintenance
Target achieved 120 Days Average
120 Days Average
Road Road Islands’ maintenance
Target achieved 60 Days Average
60 Days Average
Selected main arterials
Target achieved 14 Days Average
14 Days Average
Number of new developments in Parks
Target achieved 9 developments 4 developments
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Function: Community and Social Services
Sub Function: Johannesburg City Parks Actual Target
Number of mature indigenous trees planted
Target achieved 49 573 trees 30 000 trees
Customer satisfaction
% Increase in customer satisfaction index
Target achieved 78% 70%
Key programmes planned for the 2012/13:
Merger of Johannesburg City
Parks and Johannesburg Zoo
Development of open space
through capital development
projects - 10 Developments
Tree planting in deprived areas
- 10 000 Trees
Environmental education
programme - 9 000 Learners
Education on food production
programme -9 000 Learners
Development of two food
gardens in deprived areas
The primarily focus for the
entity is on tree production as
opposed to the procurement of
trees from external providers.
A key focus area for 2012-13,
will be the roll out of at least
twenty Green Outdoor Gyms in
the City of Johannesburg.
All future park developments
and will be designed to
incorporate the history,
heritage and theme that
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Function: Community and Social Services
Sub Function: Johannesburg City Parks Actual Target
resonate with the geographic
environment, noteworthy is
that the future designs of the
parks will include walking
trails and cycling trails aimed
at creating networks that link
communities, business centres,
schools and other recreational
facilities for ease of access by
the communities.
Chairperson: Advocate M Madumise
Signature: …………………………………………
Date: …………………………………………………
